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10 May 2013
Prattville Man Defrauds Air ForceRead the Press Release
Montgomery, Alabama - James Robert Whitaker, 60, of Prattville, Alabama was sentenced today to 5 years’ probation, $5,000 fine; and $90,356.00 restitution, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Whitaker was a retired Air Force Officer and a civil service employee, of Prattville, Alabama.
On October 16, 2012, Whitaker pled guilty to one count of participating in an act which affected a personal financial interest. Whitaker, while working at the Air Force Legal Operating Agency, directed Air Force JAG officers to stay at local hotels at a higher monetary rate, when housing was available on Maxwell Air Force Base at a much lower rate. As a result, Whitaker received a total of 587,282 Marriott reward points. Whitaker also received an additional 100,000 reward points for other room arrangements. The U.S. Air Force suffered a loss of $90,356.00.
According to U.S. Attorney Beck, “The law is in place to ensure proper handling of government funds and prevent government employees from making transactions based on benefitting themselves instead of the government. My office will prosecute those who use their position with the government to profit illegally.”
This case was investigated by the Air Force Office of Special Investigations at Maxwell Air Force Base, Alabama and prosecuted by Assistant U.S. Attorney Don Valeska.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Phoenix Man Sentenced to 15 Years Jail for Sex-traffickingRead the Press Release
PHOENIX – On May 9, 2013, George Calvin Windley, 33, of Phoenix, Ariz., was sentenced by U.S. District Judge David G. Campbell to15 years imprisonment. Windley pleaded guilty on July 11, 2012, to conspiracy to engage in sex trafficking, in violation of 18 U.S.C. §§1594(c) and 1591(a).
“The United States Attorney’s Office is committed to prosecuting those who prey upon the most vulnerable in our society for personal profit” said U.S. Attorney John S. Leonardo. “Our thanks to the collaborative efforts of the Federal Bureau of Investigation, the Phoenix Police Department and the Scottsdale Police Department that made this successful prosecution possible.”
“The sentencing of George Windley signifies the end of a sex trafficking group that preyed on young women in order to place them into sexual servitude for financial gain” stated FBI Special Agent in Charge Douglas G. Price, Phoenix Field Office. “The actions by Windley and others were humiliating and violent towards the trafficked females. The FBI and our law enforcement partners are committed to holding those accountable who choose to participate in the practice of modern day slavery for the purpose of prostitution.”
Evidence uncovered during the government’s investigation showed that Windley ran a commercial sex prostitution business from 2001 through at least 2009. He “befriended” multiple young women, and lured them into the business by offering drugs, cash, clothing, jewelry, material goods, and the promise of an extravagant lifestyle. Windley targeted those who were the most vulnerable, including victims who had been previously abused as children, came from broken families or were “running away” from home. Some of the victims simply did not have enough money to provide for their children.
Once recruited, Windley used physical force, violence, coercive acts and threatened the use of violence against family members to prevent the women from leaving the business. The victims described how defendant repeatedly struck, punched, kicked, pushed, raped, and used other physical acts and intimidation to scare and bully them. Windley also engaged in various forms of psychological manipulation and emotional coercion against the victims by using their sense of shame or feelings of guilt and existing family issues to control the victims. One victim was confined to a hotel room for a period of several months, during which time he physically and sexually abused her, and forced her to work as a prostitute.All revenues generated by the business were to be given to Windley. The women were forbidden from socializing with other women, and they were never permitted to leave the business or have contact with other black males.
Windley used the Internet to advertise the sexual services of the young women, and also used stolen credit card numbers to manufacture forged credit cards that were then used to supplement the operating expenses of the business.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Phoenix Police Department and the Scottsdale Police Department. The prosecution is was conducted by Josh Parecki, former Assistant U.S. Attorney, and Walter Perkel, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-10-660-002-DGC
RELEASE NUMBER: 2013-039_WindleyFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Pembrook Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
On May 11, 2013, Percy C. Jefferson, 34, of Pembrook, IL, pled guilty in United States District Court in Benton to a one-count indictment charging conspiracy to distribute crack cocaine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The offense occurred between February 2003, and April 27, 2006, in Jackson and Jefferson Counties, Illinois. Jefferson had been a fugitive until September 12, 2012, when he was arrested by members of the Great Lakes Regional Fugitive Task Force. Evidence at the plea hearing established that Jefferson was involved with others in the distribution of crack cocaine in the Murphysboro area. Jefferson admitted that he was responsible for the distribution of more than 840 grams of crack cocaine.
Jefferson is currently being held without bond pending an August 29, 2013, sentencing hearing. At that time, Jefferson faces a term of imprisonment from 20 years to life, 10 years’ supervised release, and a fine of up to $20,000,000. Eight co-defendants have previously been sentenced to prison terms ranging from 120 months - 288 months for their role in the crack cocaine conspiracy.
The investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation and is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Drug Enforcement Administration, United States Marshals Service, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Office Manager of Northern Kentucky Company Sentenced to 51 Months for Mail Fraud and Aggravated Identity TheftRead the Press Release
COVINGTON, KY - Pamela Brown, 43, of Independence, Ky., was sentenced today to 51 months in federal prison by U.S. District Judge David L. Bunning for mail fraud and aggravated identity theft. Judge Bunning also ordered Brown to pay $261,182.45 in restitution.
Brown previously admitted that over a seven year period she embezzled more than $261,000 from her employer, Northern Kentucky Title, Inc. Brown, who worked as the company’s office manager and bookkeeper, also acknowledged that she wrote checks issued from the business’ accounts to pay her personal expenses. She executed this by unlawfully accessing a signature stamp in the business owner’s name.
Brown pleaded guilty to the charges in January of 2013.
Under federal law, Brown must serve 85 percent of her prison sentence, and, upon release, will be under the supervision of the U.S. Probation Office for three years.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge of the Federal Bureau of Investigation, Louisville Division, jointly made the announcement today.
The investigation was conducted by the FBI and local law enforcement. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Christopher L. Nasson.
Northern Kentucky Tax Examiner Accused of Destroying Tax FormsRead the Press Release
COVINGTON, KY - An employee at the IRS Service Center in Kenton County, KY., is accused of destroying hundreds of tax forms.
A federal grand jury returned an indictment Thursday charging Brady James, 30, of Burlington, KY., with one count of destruction of records with intent to impede proper administration of a matter within an agency of the United States.
According to the indictment, in April of this year, James destroyed at least 800 1041 federal income tax return forms that had been submitted to the IRS. These forms are used for individuals earning income from estates and trusts. James worked as a tax examining technician.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Special Agent in Charge Dwaine Brinson, Treasury Inspector General Tax Administration, Chicago Field Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by agents with the Treasury Inspector General for Tax Administration. The indictment was presented to the grand jury by Assistant U.S. Attorney Laura Voorhees.
A date for James to appear in federal court has not yet been set. If convicted he faces a minimum of probation and a maximum of 20 years in prison. However, any sentence following a conviction would come after the court considers the U.S. Sentencing Guidelines and the federal statutes.
The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
Northern Kentucky Bank Employee Accused of Embezzling More Than $130,000Read the Press Release
COVINGTON, KY - A federal grand jury returned an indictment Thursday charging 34-year-old Rebecca Hatfield with bank embezzlement, 46 counts of false entries in bank records, and making a false statement.
According to the indictment, from December 2007 through August 2011, Hatfield embezzled approximately $135,700 from the Bank of Kentucky in Florence, KY.
The indictment further alleges that Hatfield intentionally made false entries into the accounting records and falsely told an FBI agent that she had not embezzled the money and suspected that another bank employee may have done so.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation (FBI), jointly made the announcement today.
The investigation preceding the indictment was conducted by the FBI. The indictment was presented to the grand jury by Assistant United States Attorney Christopher L. Nasson.
Hatfield’s appearance before the United States District Court has not yet been set. If convicted, Hatfield faces a minimum of probation and a maximum prison sentence of thirty years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
Niagara Falls Man Pleads to Weapons Possession and Witness Tampering ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Rodriguez Brown, 35, of Niagara Falls, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny, to being a felon in possession of a firearm and witness tampering. The charges carry a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that between 2009 and 2010, Brown sold crack cocaine in the City of Niagara Falls. In May 2010, Niagara Falls Police officers executed a search at the defendant’s residence on 77th Street and recovered a loaded shotgun and ammunition. Brown was indicted on charges of being a felon in possession of a firearm and related drug offenses in August of 2010. In April 2012, with federal charges pending, Brown attempted to bribe a witness in the case and was charged additionally with witness tampering.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 27, 2013 at 9:00 a.m. before Judge Skretny.
Niagara Falls Man Pleads to Weapons Possession and Witness Tampering ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Rodriguez Brown, 35, of Niagara Falls, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny, to being a felon in possession of a firearm and witness tampering. The charges carry a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that between 2009 and 2010, Brown sold crack cocaine in the City of Niagara Falls. In May 2010, Niagara Falls Police officers executed a search at the defendant’s residence on 77th Street and recovered a loaded shotgun and ammunition. Brown was indicted on charges of being a felon in possession of a firearm and related drug offenses in August of 2010. In April 2012, with federal charges pending, Brown attempted to bribe a witness in the case and was charged additionally with witness tampering.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 27, 2013 at 9:00 a.m. before Judge Skretny.
New Port Richey Man Sentenced to 15 Years in Prison for Transportation of Child PornographyRead the Press Release
Tampa, Florida - U.S. District Judge Mary S. Scriven sentenced Christopher Brian Mott (52, New Port Richey) to 15 years in federal prison for transportation of child pornography. The court also ordered Mott to forfeit a computer involved in the offense. Mott pleaded guilty on January 30, 2013.
According to court documents, an undercover agent downloaded multiple video files depicting child pornography from Mott in September 2012. On November 7, 2012, federal agents executed a search warrant at Mott's residence. Mott agreed to an interview and confessed to using his computer to access the internet to obtain child pornography and to those files then being available for others to download from him. During the search, agents seized Mott's computer. Subsequent forensics review found that it contained images of child pornography.
In addition, during the sentencing hearing, the Court found that Mott had previously engaged in a pattern of activity involving the sexual abuse or exploitation of a minor. The Court heard testimony from two witnesses who recounted instances of sexual abuse or exploitation perpetrated by Mott while they were minors.
This case was investigated by the Federal Bureau of Investigation and the Largo Police Department, as part of the FBI's Violent Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Neosho Man Sentenced to 14 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Neosho, Mo., man with nearly 1,000 videos and images of child pornography on his computer has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Dustin William Merriman, 26, of Neosho, was sentenced by U.S. District Judge Gary A. Fenner on Thursday, May 9, 2013 to 14 years in federal prison without parole.
Merriman, who pleaded guilty on Dec. 19, 2012, was identified in two separate and unrelated investigations into the distribution of child pornography over the Internet conducted by the FBI in El Paso, Texas and the New Zealand National Police.
Law enforcement officers confronted Merriman at his place of employment. He admitted that he had hundreds of videos and images of child pornography on his laptop, which was kept in a locker at work. A Joplin police detective searched the laptop and located more than 1,000 video files; he viewed over 50 of these video files, which all depicted child pornography. The average age of the children depicted in the videos was between five and seven years old.
Merriman was arrested and officers seized his cell phone, which also contained child pornography.
Investigators conducted a full forensics examination of Merriman’s laptop computer and discovered 386 movies of child pornography and 560 images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI, the Joplin, Mo., Police Department and the New Zealand National Police.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Mt. Pleasant Area Man Sentenced to 100 Months Imprisonment for Drug OffensesRead the Press Release
DAVENPORT, IA – On May 9, 2013, Ferlin Patrick Edgington, age 55, of New London, Iowa, was sentenced to 100 months imprisonment for distribution of methamphetamine and for possession with intent to distribute methamphetamine and marijuana, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Judge James E. Gritzner also sentenced Edgington to four years supervised release, and Edgington forfeited $9370.00 in drug proceeds.
Beginning in 2007 Edgington bought methamphetamine and marijuana from his source in Chicago, Carlos Alvarado. On June 8, 2012, Edgington consented to a search of his residence and agents seized 130 grams of methamphetamine, seven pounds of marijuana, and $9,370 in cash. Alvarado has pled guilty on related charges and his sentencing date is to be determined.
This case was investigated by the Drug Enforcement Administration, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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More Defendants Sentenced in Major Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Today, another four defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced by U.S. District Judge Reed C. O’Connor in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The following defendants were sentenced today:
- Dock Buckaloo, 39, sentenced to 100 months
- Clinton Dois Clark, 34, sentenced to 100 months
- Andrew Spears, 25, sentenced to 60 months
- Marty Danelle Thomas, 27, sentenced to 46 months
Buckaloo, Clark and Spears each pleaded guilty to one count of conspiracy with intent to distribute and to distribute methamphetamine; Thomas pleaded guilty to one count of being a felon in possession of a firearm.
Buckaloo admitted that on multiple occasions between February and August 2012, he acquired pound and multi-pound quantities of methamphetamine from supply sources, including co-defendant Sergio Arias, and delivered pound and multi-pound quantities of methamphetamine to customers, including co-defendant Steve Ysasaga.
Clark admitted that on multiple occasions between May and July 2012, he received quantities of methamphetamine from Ysasaga. Specifically, during this period, Clark purchased half-ounce quantities of methamphetamine for $600 every day, for three weeks, from Ysasaga. Clark, however, fell behind in paying Ysasaga, and by mid July 2012, he owed Ysasaga approximately $1600. In late July, Clark burglarized a house in Throckmorton County and stole three firearms, which he gave to Ysasaga to try to pay off the $1600 drug debt.
Spears admitted that he received methamphetamine from Ysasaga, which he delivered to customers in the Wichita Falls area. When a state search warrant was executed as his residence in November 2011, officers recovered digital scales and methamphetamine.
In August 2012, when the manager for a hotel in Wichita Falls was inspecting unoccupied rooms, he found Thomas in one of the rooms which was supposed to be vacant. The manager called the police, who discovered that Thomas, a twice-convicted felon, had a .45 caliber semi-automatic pistol in her possession.
Last Friday, May 3, 2013, the following five defendants, who pleaded guilty to their respective roles in the conspiracy, were sentenced by Judge O’Connor as follows:
- Franklin D. Hubbard, 49, sentenced to 60 months
- Tommy James Vasquez, 39, sentenced to 70 months
- Brandi Kay Jennings, 38, sentenced to 96 months
- James Allen Stafford, 44, sentenced to 120 months
- Jesse Carl Langford, 36, sentenced to 137 months
To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 15 defendants have been sentenced. The cases against two of the defendants have not been resolved.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Medina Chiropractor Sentenced to 2 1/2 Years in Prison for Health Care FraudRead the Press Release
A Medina chiropractor was sentenced to 30 months in prison for overbilling Medicare and insurance companies more than $1.8 million for medical equipment and treatment that were not medically necessary, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Dr. John N. Heary, 39, previously pleaded guilty to seven counts of health care fraud.
“This doctor took advantage of programs designed to provide care and support for the old and the sick,” Dettelbach said. “Our office and the Justice Department are committed to rooting out health care fraud in all its forms.”
“Most medical professionals endeavor to provide quality health care services and submit proper claims for payment to the Medicare program” said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “This doctor chose to exploit Medicare and other insurers for illegal personal gain and paid the price for his criminal acts. The OIG will continue to work with our law enforcement partners to combat fraud in the health care system and protect vital taxpayer dollars.”
Heary did business under his name and two corporate entities. HealthSource of Medina was the operating name of Heary’s chiropractic practice until October 2009. Medina Health & Wellness Center, Inc. was the corporate name under which Heary sold durable medical equipment, according to court documents.
Both entities were located at 433 West Liberty Street, Medina, Ohio, 44256, according to court documents.Heary provided custom-molded ankle-foot orthotics, or “boots”, to patients who did not need them and wrote false diagnoses to justify the billing. He billed Medicare and insurance anywhere from $2,770 to $4,300 for each pair of boots, according to court documents.
He also routinely provided the most expensive back braces without any demonstration of medical necessity or any pursuit of a less costly alternative. He billed Medicare and insurance anywhere from $995 to $1,250 for each back brace, according to court documents.
When patients questioned the necessity of this medical equipment, Heary told them tha they were part of a “free package deal” and would be covered by their insurance, according to court documents.
Hearly also billed for supervised physical therapy often when the patients were not supervised. He also billed for an hour’s worth of physical therapy when, at most, patients did a half hour, according to court documents.
Heary submitted more than $1.8 million in fraudulent claims to Medicare, Anthem Blue Cross and Blue Shield, Medical Mutual of Ohio and the Ohio Bureau of Worker’s Compensation, according to court documents.
The insurance programs reimbursed Heary for more than $812,000. He will repay that amount in restitution, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Michael L. Collyer and Adam Hollingsworth following an investigation by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, the Federal Bureau of Investigation, the Ohio Bureau of Worker's Compensation and the Ohio Chiropractic Board.
If you suspect health care fraud, waste or abuse, please report it by calling HHS Office of Inspector General at 800-447-8477, the Centers for Medicare & Medicaid Services at 800-633-4227, or the FBI Cleveland Field Office at (216) 522-1400. To learn more about health care fraud prevention and enforcement go to www.medicare.gov.
McLaughlin Woman Sentenced on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota woman appeared before U.S. Magistrate Judge William D. Gerdes on May 9, 2013 and pled guilty to a Superseding Information charging Assault by Striking, Beating and Wounding and Simple Assault.
Thomasine Long Feather, age 21, was sentenced to 30 days in custody on each count to run concurrent, and a $20 special assessment to the Federal Crime Victims Fund.
Long Feather was indicted by a federal grand jury in December of 2012. The conviction stems from an incident during the early morning hours of September 19, 2012 when the Defendant unlawfully entered a home in McLaughlin with the intention of confronting the victim about a prior argument between them. Upon entering the home, the Defendant threw the victim to the ground and began to repeatedly strike the victim on the head and face.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Long Feather is to self-surrender on May 28, 2013 to begin serving her sentence.
McLaughlin Man Pleads Guilty to Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeffrey Volk, age 42, of McLaughlin, South Dakota appeared before U.S. District Judge Charles B. Kornmann on May 9, 2013 and pled guilty to Count III of the Information that charged him with Lacey Act Violations.
The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release and an additional year of supervised release upon revocation. Restitution and a $25 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident in November 2008 wherein Volk illegally shot and killed one 8x6 mule deer in North Dakota. At the time Volk killed the deer, he did not have a North Dakota state deer hunting license or a Standing Rock Sioux Tribe deer hunting license. After illegally killing the deer, Volk transported it to South Dakota in violation of state and federal laws. Volk also admitted to killing one other deer in North Dakota and transporting it to South Dakota.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Volk was released on bond pending sentencing which has been set for August 12, 2013.
Masterminds of Tax Fraud Scheme Exploiting the Homeless and Drug Addicts Sent to PrisonRead the Press Release
United States Attorney Laura E. Duffy announced that two San Diego men were sentenced today for their roles in a long-running tax fraud that exploited both homeless and drug-addicted “customers” to defraud the United States out of hundreds of thousands of dollars.
In today’s court hearing, United States District Judge Anthony J. Battaglia sentenced Isaiah Konkus to serve 10 months in prison and his codefendant Justin Petersen to serve 10 months in prison. Judge Battaglia also ordered both defendants to pay $268,832 in restitution to the Internal Revenue Service.
According to court records, between 2008 and 2011, Konkus and Petersen masterminded a scheme to defraud the IRS by exploiting its “Earned Income Credit” program, also known as the “EIC.” The EIC is designed to help working families by offsetting social security taxes and by providing an incentive for individuals to find and keep work. As part of their fraud, Konkus and Petersen sought out low-income “customers,” including the homeless, single mothers and addicts by soliciting them at trolley stations, homeless shelters and other places in downtown San Diego.
Purporting to act on behalf of their business—variously named “Street Angels” or “SoCal Tax Consultants”—Konkus and Peterson approached potential “customers” and asked whether they wanted “free money from the government.” They then instructed eligible candidates who gave a positive response to sign a blank tax return. Konkus and Petersen then filled in largely false information about income, occupation and dependents on these signed returns in an attempt to qualify their “customers” for the highest possible EIC payment. They then filed these false returns with the IRS, seeking as much as $8,000 in fraudulent payments at a time.
Court filings further show that despite the fact that their work consisted entirely of faking and filing a simple (and false) tax return, Konkus and Petersen charged exorbitant rates to their mostly unsophisticated customers by skimming up to $2,500 of their tax credit. Konkus and Petersen filed more than 1,000 tax returns, spending their ill-gotten gains on luxuries including illegal drugs, a Humvee, a sport fishing trip and a stay in the most expensive suite at a luxury hotel in the Gaslamp District of San Diego on New Year’s Eve.
Konkus and Petersen were charged on October 11, 2012, and pled guilty the same day. As part of their plea agreements, Konkus and Petersen both admitted to violating one count of conspiracy to defraud the United States with respect to false claims and one count each of filing a false tax return. Also as part of their plea agreements, Konkus and Petersen admitted to falsifying their own tax returns, evading more than $35,000 each in internal revenue taxes.
United States Attorney Duffy noted that, “Not only did these defendants cheat the IRS out of hundreds of thousands of dollars, they also exploited some of our community’s most vulnerable— including the homeless and the working poor—for their illegal gain. The IRS’s tireless efforts in this case show that tax fraud is neither a victimless crime nor a crime that our office will tolerate.”
“Isaiah Konkus and Justin Peterson conspired to defraud the US Government by preying on the vulnerable in our society and utilizing their identities to file false tax returns and claiming an Earned Income Tax Credit,” said Jose A. Gonzalez, Special Agent in Charge for IRS Criminal Investigation (CI) Los Angeles Field Office. “The Earned Income Tax Credit Program was created to help the low income working citizens and those who fraudulently abuse the program will be investigated and prosecuted.”
DEFENDANTS Case Number: 12CR4070-AJB Isaiah Konkus
Justin Petersen SUMMARY OF CHARGES AND MAXIMUM PENALTIESCount 1 (both defendants): Conspiracy to Defraud the United States with Respect to Claims – Title 18, United States Code, Section 286. Maximum penalties: 10 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessment
Count 2 (Konkus only): False Tax Return – Title 26, United States Code, Section 7206(1). Maximum penalties: 3 years in prison, 1 year of supervised release, $250,000 fine and a $100 special assessment.
Count 3 (Petersen only): False Tax Return – Title 26, United States Code, Section 7206(1). Maximum penalties: 3 years in prison, 1 year of supervised release, $250,000 fine and a $100 special assessment.
INVESTIGATING AGENCYInternal Revenue Service – Criminal Investigation
Maryland Woman Sentenced to 132 Months in Prison for Recruiting Pregnant Teen into Sex Trafficking RingRead the Press Release
ALEXANDRIA, Va. – Yanira del Carmen Guerrero Andrade, also known as “Yadira” or “Litsy,” 28, an illegal alien from El Salvador who had been residing in Adelphi, Md., was sentenced today to 132 months in prison, followed by five years of supervised release, for recruiting a 15-year-old, pregnant runaway to engage in commercial sex acts for a trafficking ring with ties to the notorious street gang Mara Salvatrucha Thirteen (“MS-13”).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Ken Cuccinelli, Attorney General of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after sentencing was pronounced by United States District Judge Liam O’Grady.
“Defendant Guerrero Andrade was in a position to aid the victim of this unconscionable act, but instead of helping her, she helped perpetuate her exploitation,” said U.S. Attorney Neil H. MacBride. “She now has 11 years in federal prison to think about her decision. This prosecution is another example of our commitment to prosecuting anyone who participates in this vile crime.”
“Andrade took advantage of a vulnerable, scared teenage runaway, and instead of helping her, she prostituted her through a gang,” said Cuccinelli. “What is even more sinister is that she took advantage of a young pregnant mother, creating two victims of her crime. The attorney general’s office is committed to fighting human trafficking and protecting Virginia’s most vulnerable citizens from predatory monsters like Guerrero Andrade.”Special Agent in Charge John P. Torres stated, “Guerrero Andrade knew the victim was a minor and exploited that vulnerability by luring her into a life of prostitution with the violent street gang, MS-13. Child sex trafficking is a heinous crime, and HSI is committed to protecting victims and to dismantling human trafficking organizations globally.”
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
According to documents filed with the court, Guerrero Andrade first met the juvenile victim in 2008 at a nightclub in Hyattsville, Md. At the time, the victim had run away from home. Guerrero Andrade placed the juvenile victim with an MS-13 associate, and later, recruited her to work as a prostitute for an organization run by Guerrero Andrade’s boyfriend, Julio Revolorio-Ramos. Guerrero Andrade and Revolorio-Ramos then transported the victim from Maryland to northern Virginia for purposes of prostitution.
On the first day the victim was trafficked, she was trafficked to approximately 15 customers, and on the third day she was trafficked to 25 customers. Guerrero Andrade knew that the victim was less than 18 years old and instructed her to use an alias and say that she was 20 years old. Several customers requested the victim specifically because she appeared underage. Guerrero Andrade and her boyfriend kept a portion of the proceeds the victim earned. Guerrero Andrade also referred the victim to other traffickers besides her boyfriend so that those “pimps” could also traffic the victim.
Revolorio-Ramos previously pleaded guilty to Sex Trafficking of a Child, and was sentenced to 188 months of incarceration and five years of supervised release.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., with assistance from the Northern Virginia Human Trafficking Task Force. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Michael J. Frank are prosecuting the case on behalf of the United States.
Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes.Maryland Woman Pleads Guilty in Scheme That Used Stolen Identifying Information to Seek More Than $20 Million in Fraudulent Tax Refunds-She Allowed Her Bank Account to Be Used for Deposits of Fraudulent Refunds-Read the Press Release
WASHINGTON – April Arnold, 31, of Waldorf, Md. pled guilty today to a federal conspiracy charge stemming from her role in an identity theft and tax fraud scheme involving the filing of returns seeking more than $20 million in fraudulent refunds.
The plea, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr.; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Eric M. Thorson, Inspector General, U.S. Department of Treasury; and David Beach, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Arnold pled guilty before the Honorable Magistrate Judge Alan Kay to a charge of conspiracy to defraud the United States with respect to claims. She will be sentenced at a later date by the Honorable Ellen S. Huvelle. The charge carries a statutory maximum of 10 years in prison, a fine of up to $250,000, restitution, and other penalties. Under federal sentencing guidelines, Arnold likely faces 18 to 24 months in prison and a fine of up to $40,000.
The case represents one of the largest prosecutions to date involving the use of stolen identifying information. Eight other defendants have pled guilty to charges in the case. They include Kevin Brown, 42, of Capitol Heights, Md., a key organizer and leader of the scheme.
According to evidence presented to the Court by Assistant U.S. Attorney Sherri L. Schornstein, Arnold was among participants in a massive identity theft and false tax refund scheme involving an extensive network of more than 100 people, many of whom were receiving public assistance. It also involves bank tellers and postal carriers. From 2006 to date, they allegedly caused the filing of at least 7,000 fraudulent federal income tax returns seeking more than $20 million in refunds. The case remains under investigation.
According to the government’s evidence in this case, the refunds were sought in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. At one nursing home alone, at least 14 identities were stolen, including five from people who were deceased at the time tax returns were filed in their names. Some people sold their identifying information. Some victims unwittingly turned over their identifying information after being told that they were due an income tax refund or were entitled to some “Obama Stimulus Money.”
The government’s evidence showed that participants in the schemes had various roles: some stole the identifying information; some permitted their personal identifying information to be used; some created and mailed the fraudulent federal tax returns; some permitted their addresses to be used for receipt of the refund checks; some helped cash the checks; some provided bank accounts for negotiation of checks, and some forged endorsements of identity theft victims on the refund checks.
The false returns typically claimed that the “taxpayer” operated a sole proprietorship, as a barber or day care provider, claimed phony dependents, and then reported income that was sufficient to generate tax refunds based on the Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes.
From January 2009 through November 2009, Arnold allowed her bank accounts to be used for the deposit and negotiation of 66 fraudulent U.S. Treasury tax refund checks, totaling about $145,351. All but one of these checks had been mailed to various residential addresses in the District of Columbia. Arnold did not know the individuals whose names were listed on the checks that were deposited into her bank accounts.
In announcing the guilty plea, U.S. Attorney Machen, Special Agent in Charge Kelly, Inspector in Charge Barksdale, Inspector General Thorson, and Special Agent in Charge Beach commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Sherri L. Schornstein, who is prosecuting the case.
13-167Manhattan U.S. Attorney Announces Recovery of Additional Dinosaur Fossils for Repatriation to MongoliaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today the recovery of additional dinosaur fossils for return to the Government of Mongolia. In addition to a Tyrannosaurus bataar skeleton previously forfeited to the United States and successfully repatriated to the Mongolian government on May 6, 2013, U.S. District Judge P. Kevin Castel signed a judgment yesterday forfeiting another Tyrannosaurus bataar skeleton (the “Second Bataar”), one Saurolophus Angustirostris skeleton (the “Hadrosaur”), one Oviraptor matrix containing at least five Oviraptor skeletons (the “Raptor Matrix”), and an additional Oviraptor skeleton (the “Raptor”). Also, on May 1, 2013, U.S. District Judge Harold Baer signed a stipulation arranging for the return of fossils including an additional Tyrannosaurus bataar skeleton (the “Third Bataar”); a rock slab containing two Gallimimus skeletons (the “Gallimimus slab”), two additional Gallimimus skeletons, an Ankylosaurus skeleton and skull, a Protoceratops skeleton, and one restored composite egg nest display piece made of composite dinosaur egg fossils provided to the United States Attorney’s Office by Christopher Moore, a British citizen (together, the “Moore dinosaurs”).
Manhattan U.S. Attorney Preet Bharara said: “The recovery of this treasure trove of dinosaur fossils is the latest significant step in returning missing pieces of the Mongolian people’s history that were literally dug out from under them. One cannot put a price tag on cultural artifacts or overstate the importance of their role in a country’s history, and we are delighted to be moving the process of returning these fossils to Mongolia forward.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Through this investigation, HSI special agents around the country have seized numerous dinosaur skeletons that are pending repatriation to the government of Mongolia. We simply cannot allow the greed of a few looters and schemers to trump the cultural interests of an entire nation. HSI remains a committed partner in the effort to ensure that we investigate individuals involved in stolen foreign art, antiquities, relics and the illicit fossil trade. We look forward to returning these fossils to their rightful owner – the government of Mongolia.”
According to the civil forfeiture and criminal Complaints, the Information, plea agreement, stipulations, and other court documents filed in Manhattan federal court:
The Tyrannosaurus bataar, indigenous to what is now Mongolia, was a dinosaur that lived during the late Cretaceous period, approximately 70 million years ago. It was first discovered in 1946 during a joint Soviet-Mongolian expedition to the Gobi Desert in the Mongolian Ömnögovi Province. Since 1924, Mongolia has enacted laws declaring dinosaur fossils to be the property of the Government of Mongolia, and criminalizing their export from the country.
Between 2010 and 2012, the Bataar skeleton and several other dinosaur fossils from Mongolia were imported into the United States. The customs importation documents contained several false statements. First, the country of origin of the fossils was erroneously listed. In addition, the value of the fossils was substantially understated on the importation documents. Finally, the fossils were incorrectly described.
Texas-based Heritage Auctions, Inc., offered the Bataar for sale at an auction conducted in New York City. Prior to the sale, the Government of Mongolia sought, and a Texas judge granted, a Temporary Restraining Order prohibiting the auctioning, sale, release, or transfer of the Bataar. Notwithstanding the order, Heritage Auctions completed the auction and the Bataar skeleton sold for over $1 million. The United States Attorney’s Office seized the Bataar and initiated a forfeiture action. On February 14, 2013, Judge Castel entered a judgment forfeiting the Bataar skeleton to the United States for its return to Mongolia.
A concurrent criminal investigation revealed that several additional Mongolian dinosaur fossils had been illegally taken from Mongolia, including the Second Bataar and the Raptor. During the investigation, Christopher Moore, a British fossil dealer, contacted the United States Attorney’s Office and informed the Office of his possession of the Moore dinosaurs. Upon being advised that the Moore dinosaurs had been stolen from Mongolia, he agreed to send them to the United States Attorney’s Office for their return to Mongolia.
Meanwhile, two additional dinosaur fossils, the Hadrosaur and the Raptor Matrix, were at one point in the possession of an auction house in California. The auction house agreed to assist in facilitating their return to Mongolia, consenting to the forfeiture of both items.
All of these fossils will now be returned to Mongolia as part of the Office’s efforts to facilitate the repatriation of fossils involved in this case.
Mr. Bharara praised the investigative work of ICE HSI.
The forfeiture action was handled by the Asset Forfeiture Unit of the U.S. Attorney's Office. Assistant U.S. Attorneys Sharon Cohen Levin and Martin S. Bell were in charge of the litigation. The criminal case was handled by the Complex Frauds Unit. Martin S. Bell was in charge of the prosecution.
Hadrosaur Forfeiture Complaint
Lorain County Pair Charged with Human Trafficking OffensesRead the Press Release
A man and woman from Lorain County were charged with human trafficking crimes after forcing a 16-year-old girl and 19-year-old woman to have sex for money, said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office, and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jeremy Mack, 37, of Elyria, and Ashley Onysko, 23, of Avon Lake, were charged with two counts of sex trafficking (one involving a minor) in a criminal complaint unsealed today in U.S. District Court.
“Human trafficking often happens in plain sight,” Anthony said. “The FBI, our law enforcement partners, along with the assistance of vigilant citizens will continue efforts to tackle this problem.”
“These defendants are accused of preying on teens in our community,” Dettelbach said. “We will work to get help for the victims and bring the accused to justice.”
Mack and Onysko were arrested April 9, 2013 at 8 Tattersal Court in Elyria. Onysko told investigators that she worked for Mack facilitating meetings for sex between girls and men. She posted advertisements on backpage.com and craigslist.com, according to an affidavit filed in the case.
One victim, identified as “Jane Doe #1” was 19 and was forced to have sex for money in order to pay off a drug debt to Mack. Jane Doe #1 said several girls lived at 8 Tattersal Court and were forced by Mack to prostitute themselves in order to pay off their drug debts to him, according to the affidavit.
Jane Doe #1 began seeing several men a day charged to engage in sexual acts with them. Mack or Onysko drove Jane Doe #1 to the appointments but she had to turn all the money over directly to Mack, according to the affidavit.
Jane Doe #1 stated that if she kept any money, she believed Mack would “beat the living crap out of me.” She witnessed him push, hit and choke other girls and said Mack often carried a handgun and stun gun, according to the affidavit.
Another victim, identified as Jane Doe #2, met Mack through Mack’s son in March 2013. Jane Doe #2 noticed that the other girls were afraid of Mack and didn’t seem allowed to leave the house except to meet clients, according to the affidavit.
On March 29, 2013, Mack instructed Jane Doe #2 to get fixed up and instructed other girls to take photos of her for backpage.com. Jane Doe #2 said she didn’t want to be a prostitute but did so because Mack was “a guy with a gun who knew where I lived,” according to the affidavit.
Onysko soon received a call for an appointment with Jane Doe #2. Onysko arranged the meeting and provided Jane Doe #2 with condoms. She gave all the money to Mack. Jane Doe #2 left the house on Tattersal after her parents discovered her photographs on backpage.com, according to the affidavit.
This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and Carole Skutnik following an investigation by the FBI and Elyria Police Department.
A criminal complaint is merely an accusation. All defendants are presumed innocent of the charges until proven guilty beyond a reasonable doubt in court.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on May 10, 2013, Rene Antonio Ramos Rodriguez, Sr., age 41 of Lincoln, was sentenced to 11 years and three months (135 months) in prison for conspiracy to distribute methamphetamine between February of 2011 and December of 2011. Following the prison term, Rodriguez will serve five years on supervised release. Rodriguez will also forfeit $7,644 in cash to the United States.
Information provided to law enforcement indicated that between February and December of 2011, Rodriguez was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine. In June of 2011, a search warrant was executed at Rodriguez’s Lincoln residence. During the search, officers found approximately ½ ounce of methamphetamine, three firearms, and a total of $7,644 in cash. In July of 2011, an undercover Nebraska State Patrol investigator and a confidential informant working with the State Patrol purchased approximately 1/8 ounce of methamphetamine from Rodriguez in Lincoln.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department, and by the Nebraska State Patrol.
Leader of Cape Cod Cocaine and Heroin Ring Sentenced to 25 Years in PrisonRead the Press Release
BOSTON – One of the leaders of a drug-trafficking organization operating on Cape Cod was sentenced today to serve 25 years in federal prison.
Kelvin Frye, a/k/a Kelvin Andrews, a/k/a Brian Wright, a/k/a Cool Kel, a/k/a Cool Cal, 29, of East Wareham, was sentenced to 25 years in prison by U.S. District Judge Nathaniel M. Gorton. Frye, along with Russell Rose, a/k/a Double R, a/k/a Baby Russell, 31, of Randolph, was convicted in December by a jury of participating in a longstanding, entrenched conspiracy to distribute cocaine and heroin in Falmouth, Mashpee, Bourne, and the surrounding areas on Cape Cod. Fifteen members of the conspiracy were convicted in federal court; a sixteenth member of the conspiracy died while awaiting trial.
From 2008 through 2010, Frye and Rose were the leaders of an organization responsible for distributing large quantities of cocaine and heroin on Cape Cod. In March 2008, agents began investigating members of the organization and intercepted telephone calls to and from seven cellular telephones used by members of the organization. Agents determined that Frye and Rose were the leaders of the organization, that they had various sources of supply for cocaine and heroin, and that they directed others to distribute the drugs for them. During the investigation, agents seized approximately two kilograms of cocaine and more than 300 grams of heroin. Additionally, the organization had been provided access to empty units at a vacation resort in Falmouth, where they stored and processed drugs and firearms.
Frye was responsible for the distribution of at least 14 kilograms of cocaine, along with nearly a kilogram of heroin. Furthermore, Frye, with assistance from other members of the conspiracy, had attempted to smuggle heroin to Anthony Vaughn, a member of the organization who was serving a federal prison sentence in Pollack, LA for a prior federal drug-trafficking conviction. Frye had previously been sentenced to seven months in federal prison for conspiring to smuggle marijuana to Vaughn while Vaughn was incarcerated. Frye was also previously sentenced to 15 months in prison for a state conviction for assault and battery with a dangerous weapon relating to the shooting of a Cape Cod man.
To date, six other members of the conspiracy have been sentenced: 1) Russell Rose, a/k/a Double R, a/k/a Baby Russell, of Randolph was sentenced to 300 months in prison; 2) Omay Ford, a/k/a Papa Doc, 42, of Boston was sentenced to 180 months in prison; 3) Michael Andrews, 25, of Falmouth was sentenced to 135 months in prison; 4) Adalberto Graciani, a/k/a Berto, 39, of Marstons Mills was sentenced to 120 months in prison; 5) Kyle Hicks, a/k/a Sleepy, a/k/a Sleep, 31, of Marstons Mills was sentenced to 120 months in prison; and
6) Jeremy Wobecky, 38, of Falmouth was sentenced to 44 months in prison.United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; John J. Arvantis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Cape and Islands District Attorney Michael O’Keefe; Chief Edward Dunne of the Falmouth Police Department; Chief Rodney Collins of the Mashpee Police Department; Chief Dennis R. Woodside of the Bourne Police Department; Chief Brian E. Stewart of the Scituate Police Department; Chief Russell Jenkins of the Braintree Police Department; Chief Paul MacDonald of the Barnstable Police Department; Sheriff James M. Cummings of Barnstable County; and Sheriff Joseph D. McDonald, Jr. of Plymouth County made the announcement today.
The case is being prosecuted by Assistant United States Attorneys David J. D’Addio and James E. Arnold of Ortiz’s Organized Crime and Drug Enforcement Task Force.
Laredo Bailbonds Manager Sent to Prison for Money LaunderingRead the Press Release
LAREDO, Texas - Elizabeth Nevarez, 44, of Laredo, has been ordered to prison for nearly five years following her conviction of one count of money laundering, United States Attorney Kenneth Magidson announced today. Nevarez entered into a written plea agreement on Monday, Nov, 5, 2012.
Today, U.S. District Judge Diana Saldaña, who accepted the guilty plea, handed Nevarez a sentence of 57 months in prison for her role in laundering drug proceeds. At a lengthy sentencing hearing today, arguments from the defense and prosecution were presented. After careful consideration of the presentence report and arguments of counsel, Judge Saldaña noted that Nevarez “benefited to a great extent from these drug proceeds.” Judge Saldaña ordered the forfeiture of Nevarez’s interest in a residence located on the 6300 block of Springtime Drive in San Antonio and ordered a money judgment in the amount of $98,630.45. Nevarez was also ordered to pay a $3,000 fine and be required to serve a term of three years of supervised release following completion of the prison term.
In the guilty plea, Nevarez admitted to assisting the Ibarra Drug Trafficking Organization in May of 2010 after the arrest of Juan Ramon Ibarra Sr. and two other co-conspirators for cocaine distribution. The Ibarra family approached Nevarez in her capacity as regional manager at AA Best Bail Bonds to obtain bond for Ibarra Sr. During these discussions, Nevarez suggested the Ibarras transfer three valuable Laredo properties into her name in order to avoid seizure by the federal government. Nevarez forged the dates on the warranty deeds of the three properties to make it appear as though they were transferred prior to Ibarra Sr.’s arrest.
Shortly after this transfer, Nevarez sold the properties for substantially less than their market value. She then transferred the proceeds into her personal bank accounts and purchased a house in San Antonio. Specifically, Nevarez admitted to these activities as they related to a residence located on the 400 block of Blue Lake Drive, a property located in the upscale Lakeside community of Laredo. The residence was constructed by Ibarra Sr. with drug proceeds in 2005.
Nevarez was allowed to remain on bond and voluntarily surrender at a later date.
The case is the result of a two-year investigation led by the Drug Enforcement Administration with the assistance of Organized Crime Drug Enforcement Task Force - Financial Investigation and Homeland Security Investigations. Assistant United States Attorneys James Hepburn, Elizabeth Rabe, and Mary Ellen Smyth are prosecuting the case.
Justice Department to Monitor Elections in TexasRead the Press Release
The Justice Department announced today that it will monitor municipal elections on May 11, 2013, in the cities of Corrigan, Farmers Branch, Irving and Orange, Texas, to ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Under the Voting Rights Act, the Justice Department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the attorney general or by a federal court order. Federal observers will be assigned to monitor polling place activities in Farmers Branch and Irving based on the attorney general’s certification. The observers will watch and record activities during voting hours at polling locations, and a Civil Rights Division attorney will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor polling place activities in the cities of Corrigan and Orange. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Jury Returns $39 Million Verdict Against Hospital for Violating Stark Law & False Claims ActRead the Press Release
WASHINGTON, DC - United States Attorney for the Eastern District of North Carolina Thomas G. Walker announced that in federal court on May 8, 2013, a jury returned a $39 million verdict against Tuomey Healthcare System (Tuomey Hospital), located in Sumter, South Carolina for violations of the Stark Law and False Claims Act.
United States Attorney Thomas G. Walker stated, “This case sends a clear message to hospitals that Stark Law and False Claims Act violations will be taken seriously.”
“This verdict sends a message to those who violate the Stark Law by inappropriately profiting from referrals,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region. “The OIG will continue to work aggressively to eliminate this type of behavior which drives referrals to a particular provider, thereby increasing healthcare costs and eliminating fair competition.” “If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].”
Testimony and documents showed that the hospital entered into unlawful contracts that paid physicians in compensation amounts far exceeding market value for their services for the hospital. The Stark Law prohibits hospitals from submitting claims to Medicare for payment based on patient referrals from physicians who have a prohibited financial relationship with the hospital. Because the jury also found that the hospital violated the False Claims Act, the United States is entitled to seek treble damages plus certain other penalties, as provided for in the False Claims Act. Both the government and Tuomey are expected to file post-trial motions in the coming weeks, asking for appropriate relief from the Court.
This case was investigated by the Department of Health and Human Service’s Office of Inspector General. The case was prosecuted by Assistant United States Attorney Norman Acker with the Eastern District of North Carolina and by Tracy Hilmer, Assistant Director, Commercial Litigation Branch of the Justice Department’s Civil Division.
Jose Marco Aguilar Indicted for Illegal ReentryRead the Press Release
JOSE MARCO AGUILAR, age 42, a citizen of Mexico, was charged in a one-count indictment by a Federal Grand Jury today with illegal reentry by an alien previously removed, announced U. S. Attorney Dana J. Boente.
According to the indictment, on or about April 30, 2013, AGUILAR, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, AGUILAR, who was convicted of an aggravated felony prior to his previous removal, faces a maximum term of imprisonment of twenty years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE) and the Jefferson Parish Sheriff’s Office. The pprosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Indictment )
Jason Charles Shouse Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 10, 2013, before U.S. District Judge Sam E. Haddon, JASON CHARLES SHOUSE, a 36-year-old resident of Cascade County, appeared for sentencing. SHOUSE was sentenced to a term of:
Prison: 600 months
Special Assessment: $200
Supervised Release: life
SHOUSE was sentenced in connection with his guilty plea to sexual exploitation of children and production of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
In 1997, in the Eighth Judicial District Court of Montana, SHOUSE pled to sexual intercourse without consent. In June of 1998, he was sentenced to 20 years imprisonment with 18 years suspended. Due to that offense, SHOUSE was required to register as a sex offender.
In July 2012, the Cascade County Sheriff's Office received a report that photos which depicted child pornography were located on one of SHOUSE's old cell phones. The SD card from the old cell phone was seized and searched. Investigators located videos on the SD card which depicted SHOUSE performing sexual acts on an approximately 2-year-old child. SHOUSE was identified on the videos and appeared to have filmed the videos himself in 2008.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SHOUSE will likely serve all of the time imposed by the court. In the federal system, SHOUSE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Internet Crimes Against Children (ICAC) Task Force, the Cascade County Sheriff's Office, and the Montana Division of Criminal Investigation.
Iowa Man Pleads Guilty to Kidnapping and Firearm OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that Marco Uribe, age 25, of Sioux City, Iowa appeared before U.S. District Judge Charles B. Kornmann on May 9, 2013 and pled guilty to the Superseding Indictment that charged him with Kidnapping and Brandishing a Firearm During, in Relation to, or in Furthermore of a Crime of Violence.
The maximum penalty upon conviction is any term of years, up to life, of imprisonment, a $250,000 fine, or both; 5 years of supervised release and an additional 5 years of supervised release upon revocation. Restitution and a $100 special assessment on each count to the Federal Crime Victims Fund may also be ordered.
The charges stem from an incident in late December 2011, wherein a trailer in Mobridge was burglarized and a large quantity of cocaine and methamphetamine and several thousand dollars in cash was stolen. Marco Uribe and others kidnapped several “suspects” and took them to another location. Once there, the victims were assaulted with shod feet and hit with firearms. Uribe stuck his gun in one victim’s mouth while questioning him about the stolen drugs and cash. The victims denied knowing anything about the thefts. The real burglars were later apprehended.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Uribe was remanded to the custody of the U.S. Marshal Service pending sentencing which has been set for August 12, 2013.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in
Great Falls, on May 9, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
KEITH CLIFFORD CUNNINGHAM, a 69-year-old resident of Arizona and Montana, appeared on a charge of sexual exploitation of children. He is currently detained. If convicted of this charge, CUNNINGHAM faces possible penalties of a mandatory minimum of 15 years and could be sentenced to 30 years, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations and the Montana Division of Criminal Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Illegal Alien, Moises Chicaj-imul, IndictedRead the Press Release
MOISES CHICAJ-IMUL, age 26, a citizen of Guatemala, was charged in a two-count indictment by a Federal Grand Jury today with fraud and misuse of a Permanent Resident Card and illegal use of a Social Security Number, announced U.S. Attorney Dana J. Boente.
According to the indictment, on August 12, 2008, CHICAJ, knowingly possessed, used, and attempted to use a Permanent Resident Card, prescribed by law as evidence of authorized stay and employment in the United States, which CHICAJ knew was counterfeited. CHICAJ was also charged with falsely representing that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive for the purpose of completing an Employment Eligibility Verification Form.
If convicted of both counts, GONZALEZ faces a maximum term of imprisonment of fifteen years, a fine of $500,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Homeland Security Investigations (ICE). The pprosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Indictment )
Herrin Man Indicted for Bank FraudRead the Press Release
Mark P. Troehler, 38, of Herrin Illinois, was indicted by a federal grand jury sitting in Benton, Illinois, on May 9, 2013, and charged with Bank Fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offense carries a maximum sentence of up to 30 years’ imprisonment, a fine of up to $1,000,000, and mandatory restitution.
The indictment alleges that Mark P. Troehler, from January 2010, and continuing to until August of 2010, engaged in a scheme to defraud the Bank of Marion, in Marion, Illinois, of $71,000. According to the indictment, Mark P. Troehler, who was at the time a contractor, took out a loan from the bank to build a home in Herrin, Illinois, and then utilized the funds for personal and unrelated business expenses, while supplying false documents to the bank indicating the funds were being used to build the home. Troehler ultimately defaulted on the loan.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian.
Four Members of “Show Out” Crew Sentenced to Prison Terms for Series of Assaults-Group Targeted Victims in Chinatown and Other Areas-Read the Press Release
WASHINGTON – Four men, all from Washington, D.C., were sentenced today to prison terms on charges stemming from various gang-related crimes, including beatings, attempted robberies, and obstructing justice, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The defendants were among six men who pled guilty in February 2013, in the Superior Court of the District of Columbia, to actively participating in a crew called “Show Out” that committed crimes in areas including Chinatown, Metro Center, NoMa, Bloomingdale, and Woodley Park. Since at least Jan. 1, 2012, the crew’s members canvassed the areas looking for targets of opportunity and teamed up to assault their victims, rob them of items of value, or both. They pursued people they thought were vulnerable to their surprise attacks, including people traveling alone to or from work, homeless people, and people distracted by their cellphones.
The crew also was accused of engaging in “flash mob” style robberies at drug stores, convenience stores, and gas stations, in which multiple members flooded in to the business at the same time, overwhelming and intimidating the staff, and stealing items.
The Honorable Lynn Leibovitz sentenced the defendants this morning. They included Quayshawn L. Leggett, 20, who allegedly had a senior position in the group; James D. Matheny, 19; Ricardo J. Williams, 20, and Travis L. Morris, 21.
Leggett was sentenced to nine years in prison on one count each of aggravated assault, attempted robbery, and committing a crime while affiliated with a criminal street gang. Matheny also was sentenced to a nine-year prison term, on one count each of aggravated assault, obstructing justice, threats to do bodily harm, and committing a crime while affiliated with a criminal street gang. Williams was sentenced to an 8 ½-year prison term on one count each of aggravated assault, attempted robbery, and committing a crime while affiliated with a criminal street gang. Morris was sentenced to six years and eight months in prison one count each of aggravated assault and committing a crime while affiliated with a criminal street gang.
Upon completion of their prison terms, all four of the defendants will be placed on three years of supervised release.
Two other leaders of the “Show Out” crew, both of Washington, D.C., are scheduled to be sentenced May 24, 2013. They include Bernard Trowell, also known as “McLovin,” 19, described in an indictment as “the self-styled president” of the group, and Deandre M. Williams, 19. Both pled guilty in February 2013 to charges stemming from their roles in the crimes.
“The Show Out crew ambushed vulnerable victims in some of our city’s most vibrant neighborhoods,” said U.S. Attorney Machen. “Today’s sentences hold four members of the crew accountable for their roles in a series of beatings, robberies, and flash mobs. These prison terms are just punishment for the lawless behavior of these young people.”
“This pack of thugs roamed around the city and preyed upon people whom they perceived to be vulnerable,” said Police Chief Lanier. “The level of violence was unjustifiable. I commend the officers and detectives from the First District, the members of the Intelligence Division and our partners at the U.S. Attorney’s Office for their efforts in bringing these criminals to justice.”
As part of their plea agreements, the defendants, along with Trowell and Deandre Williams, admitted participating in various crimes, including these incidents:
-June 5, 2012: Beating in the 600 block of H Street NW
All six defendants who pled guilty in February admitted taking part in the beating of a man near a bus stop in the 600 block of H Street NW. As the victim approached the bus stop, at about 3:20 a.m., he was surrounded and assaulted. Deandre Williams and a juvenile member of Show Out knocked the man to the ground, and then multiple members punched, kicked and stomped him. Deandre Williams and others stole items from the victim while he was on the ground, including his cellphone and bank card. The victim was knocked unconscious for several minutes. He eventually found a police officer and received medical attention. He was treated later for a concussion, broken nose, and bruises to the head, face and torso.
--June 5, 2012: Beating near 2d and K Streets NW
Crew members targeted a second victim at about 3:45 a.m. The victim was walking to work near 2d and K Streets NW when Deandre Williams approached him and struck him repeatedly about the face and head with his fists. During this attack, Deandre Williams shouted racial slurs at the victim. The victim received medical treatment on the scene and later was given stitches to close a bleeding laceration to the side of his face. Deandre Williams pled guilty to assault with significant bodily injury for his role in this attack.
-June 7, 2012: “Flash Mob” near North Capitol Street and Florida Avenue
Ricardo Williams and several others approached a gas station and convenience store at about 4:20 a.m., in the area of North Capitol Street and Florida Avenue. After the station attendant opened the locked door, Williams and the others overwhelmed and intimidated him. They grabbed food or beverage items and fled without paying. Ricardo Williams pled guilty to attempted robbery for his participation in this attack.
-June 19, 2012: Obstruction of Justice
During the evening hours, Deandre Williams and others approached a former associate at a bus stop in Chinatown and threatened to kill him if he talked to police. Deandre Williams pled guilty to obstruction of justice for this incident.
-June 21, 2012: Attack at Metro Center
Leggett and others were on the lower platform at the Metro Center Metro station when they confronted a man at about 5:20 a.m. Leggett demanded money and threatened the victim. The victim did not give him any money, and one of the individuals punched him in the face, knocking him down. Leggett pled guilty to attempted robbery for his role in this attack.
-July 31-Aug. 1, 2012: Threats to Do Bodily Harm, Obstruction of Justice
Matheny posted audio recordings to his Facebook page, in which he is rapping. In three of them, he accused a Show Out member of “snitching.” The songs carried a threat that this member would be shot “on sight.” Matheny pled guilty to threats to do bodily harm and obstruction of justice for these threats.
As part of the plea agreement, the government dismissed charges against the defendants involving four other violent crimes that were charged in the indictment. The indictment covered a total of 10 violent crimes, nine of which occurred during a three-week period in June 2012.
Two other defendants in the case earlier pled guilty to charges, and a third adult member of the crew is still being sought. The investigation into other members of the crew is ongoing.
In announcing the sentences, U.S. Attorney Machen and Chief Lanier commended the work of the officers, detectives and crime scene technicians who worked on the case for the MPD. They also expressed appreciation for the efforts of the Metro Transit Police Department, which assisted in the investigation. Additionally, they thanked local businesses for their assistance in the investigation, including Transwestern, a property management company, and employees of Securitas, a private security firm. Finally, they praised the work of those who are handling the case for the U.S. Attorney’s Office, including Assistant U.S. Attorneys Thomas Bednar and Clare Pozos, who are prosecuting the matter.
13-168Former U.S. Patent & Trademark Office Employee Sentenced to 10 Years in Prison for Enticing A Minor to Engage in Criminal Sexual ActivityRead the Press Release
ALEXANDRIA, Va. — James Raymond Schimmel, 53, of Alexandria, Virginia, was sentenced today to 10 years in prison, followed by 5 years of supervised release, for enticing a minor to engage in criminal sexual activity. At the time of his arrest on October 24, 2012, Schimmel was an employee of the U.S. Patent & Trademark Office.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Washington, D.C., made the announcement after sentencing by United States District Judge Liam O’Grady.
According to court records, Schimmel met the minor victim through the Internet and convinced the victim to meet in person for the purpose of engaging in criminal sexual activity. Schimmel then video recorded the sexual encounter without the victim’s knowledge. Further investigation revealed that Schimmel had been engaging in similar communications with other minors in the mid-Atlantic area.The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Northern Virginia Internet Crimes Against Children Task Force, and the Virginia State Police.
Assistant United States Attorneys Alexander T.H. Nguyen and Ryan K. Dickey are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former School Principal Pleads Guilty to Possession of Child PornRead the Press Release
PHILADELPHIA - Troy Czukoski, 42, of Exton, PA, pleaded guilty today to possessing more than 150, but less than 300, images of children engaging in sexually explicit conduct. At the time of the investigation, Czukoski was serving as Principal of the Springton Lake Middle School in the Rose Tree Media School District in Delaware County. U.S. District Court Judge Legrome D. Davis scheduled a sentencing hearing for August 12, 2013.
Czukoski was identified through a website that sells child porn. Records from that website showed the Czukoski had made purchases from 2008 through 2011. A warrant was then executed on the defendant’s home, during which the defendant confessed that he had purchased the pornographic content over the internet. Agents with the U.S. Postal Inspection Service found numerous CDs and DVDs, as well as two flash drives that contained images and video of child porn.
Czukoski faces a maximum possible sentence of 10 years in prison, a mandatory five years of supervised release up to a lifetime of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Michelle Rotella.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former School Business Official, and Treasurer of the Carterville School District, Charged with Embezzling FundsRead the Press Release
Todd Ryan Frazier, 30, of Grand Rapids, Michigan, was indicted by a grand jury and charged in a sixteen count Indictment with: Counts 1 - 3, Embezzlement and Theft from the Carterville School District - a unit of local government that received federal funds; Counts 4 - 13, Wire Fraud in furtherance of a scheme to defraud the Carterville School District; Count 14, False Statements to the Federal Bureau of Investigation; Count 15, Attempting to Access a Computer of a Financial Institution Without Authorization; and Count 16, Uttering a Forged Check of the Carterville School District, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses each carry a total statutory maximum sentence of up to 250 years in prison, a fine of up to $3.400,000 and mandatory restitution.
The Indictment alleges that Todd Ryan Frazier, from August of 2008, and continuing through February of 2012, engaged in a scheme to defraud the Carterville School District, Unit 5, in Williamson County, Illinois, while he was the School Business Official which included the duties and responsibilities to act as the treasurer and payroll officer for the district. The Indictment further alleges that Todd Ryan Frazier lied to the Federal Bureau of Investigation during its investigation when he stated that he had not stolen money from the Carterville School District nor did he make any false entries into Carterville School District’s payroll system.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The Indictment is the result of an investigation conducted by the Federal Bureau of Investigation. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
Former Nigerian Fugitive Heads to Prison in Multi-Million Dollar Fraud SchemeRead the Press Release
HOUSTON – Godwin Chiedo Nzeocha, 56, a naturalized United States citizen originally from the Federal Republic of Nigeria, has been sentenced to 109 months in federal prison for his role in the multi-million dollar City Nursing health care fraud scheme, United States Attorney Kenneth Magidson announced today.
Nzeocha entered a guilty plea on Oct. 19, 2012 to one count of conspiracy to commit health care fraud and one count of money laundering. Nzeocha is the 8th person to be convicted in the $45 million Medicare and Medicaid health care fraud conspiracy.
Today, U.S. District Judge Melinda Harmon, who accepted the guilty plea, handed Nzeocha the more than nine-year sentence after giving him credit for 12 months in custody in the Federal Republic of Nigeria. Judge Harmon cited the huge financial loss to the Medicare program as a significant factor in her sentencing decision, along with the use of mass-marketing and the defendant’s role as a manager and supervisor at the fraudulent physical therapy clinic. Nzeocha was further ordered to pay more than $26 million in restitution to Medicare and Medicaid, jointly and severally with his convicted co-conspirators. As part of his October plea, Nzeocha agreed to forfeit $1,098,320 given to him by the owner of City Nursing, to the United States.
According to the plea agreement, Nzeocha left the United States in 2009 to avoid arrest after receiving a telephone call from a City Nursing co-conspirator the day Umawa Imo, owner of City Nursing Services of Texas Inc., was arrested. Nzeocha admitted he had an agreement with Imo to sign his name on City Nursing patient documents as the provider of physical therapy services that he knew he was not qualified nor did provide to Medicare beneficiaries. The documents included blank treatment data forms, progress notes and daily physical therapy records. Nzeocha further admitted to knowing Imo was buying Medicare beneficiary information from recruiters and paying Medicare beneficiaries cash in order to bill for physical therapy services that were not provided. Nzeocha received approximately $1,098,320 from City Nursing.
Between Dec. 3, 2007, and June 26, 2009, when Nzeocha worked at City Nursing, the company billed Medicare and Medicaid for approximately $35,819,508 worth of physical therapy services that were not provided and received approximately $26,233,122 as payment for those services from Medicare and Medicaid.
Nzeocha is the 8th person to be convicted in relation to the City Nursing health care fraud scheme, including Imo, who was sentenced to 327 months in federal prison.
Nzeocha will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case has been investigated by the FBI, Internal Revenue Service-Criminal Investigation, the Department of Health and Human Services-Office of Inspector General and the Texas Attorney General's Office-Medicare Fraud Control Unit. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Former Niagara Falls Building Commissioner Sentenced for CorruptionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Guy A. Bax, 66, of Niagara Falls, N.Y., who was convicted of corruptly accepting gratuities in connection with his role as the Building Commissioner for the City of Niagara Falls, was sentenced to two years probation by U.S. District Judge Richard J. Arcara.
First Assistant U.S. Attorney James P. Kennedy, Jr., who handled the case, stated that between 2007 and early 2009, the defendant, in his capacity as Acting Building Commissioner for the City of Niagara Falls, routinely recommended and promoted John Gross and his company, David Gross Contracting, to individuals and entities seeking permits and approvals from the city. Bax also created a perception that it would be in the best interest of those seeking permits from the City to use Gross and his company and if they did so, they would have an easier time obtaining the approvals they sought. In exchange for, and as a reward for Bax's practice of steering business to John Gross and David Gross Contracting, the defendant received, at no cost, various items of value from John Gross and David Gross Contracting. The items included home repairs and maintenance services at Bax's personal residence, such as the remodeling of his bathroom and plowing of his driveway, an expense paid trip, free golf outings, and other benefits.
John Gross was sentenced to 33 months in prison in January 2012 for mail fraud and filing a false tax return.The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent-in-Charge, Buffalo Division, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni Weinrauch, Special Agent-in-Charge.
Former Maryland Loan Officer Sentenced to 42 Months in Prison for Mortgage Fraud and Identity TheftRead the Press Release
ALEXANDRIA, Va. – Kenneth H. DiPasquale, 38, of Morgantown, W. Va., was sentenced today to 42 months in prison, followed by three years of supervised release, for his role in a series of fraudulent mortgage loan transactions, including one in which he stole an individual’s identity and “sold” that individual his home for a nearly $320,000 profit. DiPasquale was also ordered to pay a total of $3,354,773 in restitution to his victims and to forfeit $529,098 in proceeds from his crimes.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gary R. Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service made the announcement after sentencing by United States District Judge Anthony J. Trenga. DiPasquale previously pleaded guilty to conspiracy and aggravated identity theft charges on January 25, 2013.
According to court records, DiPasquale was employed in 2007 as a loan officer at Landover, Md., mortgage lender Citywide Mortgage. DiPasquale used that position to process loans based on false and fraudulent information, including for borrowers who had not applied for loans and who had no idea their names and identities had been used as borrowers in the transactions. In particular, DiPasquale processed fraudulent loans in exchange for kickbacks from a co-conspirator. When he had trouble selling his own home in Bowie, Md., in October 2007, he stole the identity of an individual living in Arlington, Va., and “sold” this victim his house at a nearly $320,000 profit. He also engineered a series of transactions involving a homeowner in Hyattsville, Md., whom he swindled out of over $193,000.
Co-conspirator Nadin Samnang, a former Virginia realtor and title company owner, was convicted of mortgage fraud-related charges following a trial in April 2012 and was sentenced to 84 months in prison. Co-defendant Lyle C. Williams pleaded guilty to conspiracy and identity theft charges in November 2012 and was sentenced to 18 months in prison.
This case was investigated by the FBI’s Washington Field Office and the U.S. Postal Inspection Service. Assistant United States Attorney Paul J. Nathanson prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Local Businessman Sentenced to Serve 12 Months and One Day in Prison for Defrauding Victims Who Provided His Business with FinancingRead the Press Release
Vincent Carlos, a self-employed business owner who purchases discount food and other products at wholesale prices and sells them for a profit to discount stores, such as Big Lots, was sentenced today in U.S. District Court in San Diego by United States District Judge Anthony J. Battaglia to serve two concurrent sentences of 12 months' and one day in prison and a three-year term of supervised release, announced United States Attorney Laura E. Duffy. The sentence was based upon his December 6, 2012 guilty plea to two felony counts of wire fraud. In addition, Judge Battaglia ordered Mr. Carlos to pay restitution to the victims in the total amount of $335,106.80.
According to court records, Mr. Carlos, the owner and operator of L.J. Trading, LLC, obtained financing for the purchase of wholesale products from one victim in Illinois and another victim in California. In exchange for their financing, Mr. Carlos paid them a return on their investment. As part of the fraud, Mr. Carlos fabricated a series of deals, emailed and faxed the bogus contracts to the two victims, and promised a return on their investments. Mr. Carlos received more than $335,000 from the two victims in order to finance the fabricated deals. In reality, Mr. Carlos simply used the money to repay both victims for prior deals for which he owed them investment returns. Mr. Carlos used one victim's money to repay the other victim, and vice versa. Eventually, the scheme collapsed when Mr. Carlos was unable to pay the victims the returns he owed them. Before Mr. Carlos could defraud these victims out of more money, the U.S. Secret Service uncovered the fraud and swiftly put an end to it.
Judge Battaglia ordered Mr. Carlos to self-surrender to his designated penal institution not later than June 28, 2013, in order to begin serving his sentence of 12 months and one day.
DEFENDANT Criminal Case No. 12CR3559-AJB Vincent Carlos SUMMARY OF CHARGESTitle 18, United States Code, Section 1343 - Wire Fraud
AGENCYUnited States Secret Service
Foreign National Sentenced on Convictions Related to Trafficking in Cocaine and MethamphetamineRead the Press Release
A citizen of Mexico, who was named, along with nine others in an indictment returned in August 2012, was sentenced on May 10, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Gonzalo Nunez-Camacho, 38, a citizen of Mexico who most recently resided in West Valley City, Utah, had previously entered pleas of guilty to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine; Conspiracy to Distribute and Possess with the Intent to Distribute Methamphetamine; and Interstate Travel in Support of Racketeering on January 23, 2013. Nunez-Camacho was sentenced to 168 months imprisonment, followed by five years of supervised release. Nunez-Camacho was also ordered to pay a $300 special assessment and to forfeit to the United States the amount of $532,000, in addition to the $35,738 in United States currency which was seized from him by law enforcement on June 23, 2012. In addition, the Court issued a Judicial Order of Removal, which will require that he be deported from the United States following the service of his sentence.
Five of the ten conspirators charged in the indictment have entered pleas of guilty. Three are awaiting trial, and two remain fugitives. An indictment is a formal charge against a defendant. Under the law, those defendants who have not yet been convicted are presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff's Department, and the Nebraska State Patrol. This case was assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Foreign National Sentenced on Cocaine ConspiracyRead the Press Release
A citizen of Mexico, who was named, along with nine others in an indictment returned in August 2012, was sentenced to prison on May 10, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Vincente Lopez, 38, a citizen of Mexico, who most recently resided in Madison, Illinois, had previously entered a plea of guilty to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine on January 23, 2013. Lopez was sentenced to 46 months imprisonment, followed by two years of supervised release. Lopez was ordered to pay a $100 special assessment and to forfeit $27, 104 to the United States. In addition, the Court entered a Judicial Order of Removal, which will requires that he be deported from the United States following the service of his sentence.
Five of the ten conspirators charged in the indictment have entered pleas of guilty. Three are awaiting trial, and two remain fugitives. An indictment is a formal charge against a defendant. Under the law, those defendants who have not yet been convicted are presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff=s Department, and the Nebraska State Patrol. This case was assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Florida Man Pleads Guilty to Fraud Scheme Against M&T BankRead the Press Release
Buffalo, N.Y.-- The United States Attorney's Office for the Western District of New York announced today that Frank Garcia, 51, of Florida, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to fraud affecting a financial institution. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant is the former owner of Federal Guaranty Mortgage Company in the State of Florida. Garcia recruited “straw buyers” to obtain mortgages from M&T Bank and other financial institutions then misrepresented their assets and liabilities, failed to record the liens on the properties in the county clerk’s office and failed to pay off pre-existing liens on the properties when they were transferred from one owner to another.
Furthermore, the defendant directed employees of Federal Guaranty Mortgage Company to prepare loan packages for borrowers. The employees were then directed to sign the documents acting as the loan officer. The loan documents were then sent to the investor financial institutions, including M&T Bank. The loan proceeds for the fraudulent loans were subsequently wired into the account of a company associated with Federal Guaranty Mortgage Company. As a result of the defendant's actions, M&T Bank suffered a loss of $4,407,515.48 and the total loss to all financial institutions affected by the fraudulent scheme was approximately $24,000,000.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.The plea is the culmination of an investigation on the part of Special Agents of the Agency Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
Sentencing is scheduled for August 15, 2013, at 1:00 p.m. before Judge Arcara.
Fenton Man Charged with Federal Child Sexual Exploitation OffensesRead the Press Release
Timothy Koenck, age 53, of Fenton, Iowa, has been indicted on federal child sexual exploitation charges. The charges are contained in an Indictment unsealed April 22, 2013, in United States District Court in Sioux City.
The Indictment alleges that, between 2010 and 2012, Koenck enticed a minor to engage in sexual activity, traveled across a state line to engage in illicit sexual conduct, received child pornography, and possessed child pornography, after having been convicted of enticement of a minor and possession of child pornography in 2001-2002.
If convicted on all charges, Koenck faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, $1,750,000 in fines, $700 in special assessments, and at least 5 years and up to life on supervised release following any imprisonment.
Koenck appeared on April 22, 2013, in federal court in Sioux City and was held without bond. Koenck’s next appearance for trial is set for July 1, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, the Kossuth County Sheriff’s Office, and the Mower County, Minnesota, Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3016.
Federal Jury Finds Logan Man Guilty of ArsonRead the Press Release
Michael White conspired with couple to set fire to Boone rental duplex for insurance payout
CHARLESTON, W.Va. –A federal jury sitting in Charleston today found a Logan County man guilty in connection with an October 2009 arson that was organized in an effort to collect more than $80,000 in insurance claims, announced U.S. Attorney Booth Goodwin. A federal jury found Michael L. White, 58, of Chapmanville, Logan County guilty on all three counts: conspiracy to commit arson, arson and accessory after the fact. Evidence at trial determined that White conspired with acquaintance, Kimberly Dawn Kinder, and her now deceased husband to set fire to a residential rental unit owned by White that was located in Van, Boone County, W.Va.
Kimberly Dawn Kinder, 46, of Chapmanville, Logan County, W.Va., previously pleaded guilty to her role in the conspiracy in June 2012. White and the Kinders conspired together to set fire to the duplex in order to collect insurance claims.
Late in the evening on October 15, 2009, the Kinders arrived at the Van Duplex. After entering through one of the rental units, Mr. Kinder poured gasoline on a pile of clothes in the living area of one of the units. Mr. Kinder lit the pile of clothes on fire and Mrs. Kinder drove the getaway vehicle.
The Van Volunteer Fire Department later responded to the incident and extinguished the fire, but the property suffered widespread damage. Afterward, White filed an insurance claim with Nationwide Insurance Company (“Nationwide”) as a result of the fire. Nationwide in turn paid White $80,716.51. Evidence at trial determined that White subsequently paid the Kinders a total of approximately $2,000 in small increments as payment for their role in the conspiracy.
White faces up to five years in prison on Count One (conspiracy); five to 20 years on Count Two (arson); and up to two and a half years on Count Three (accessory after the fact) when he is sentenced in August by United States District Judge Thomas E. Johnston.
Kinder faces up to five years in prison and a $250,000 fine when she is sentenced.
The investigation was conducted by the West Virginia State Police. Assistant United States Attorney Thomas Ryan and Larry Ellis handled the prosecution.
Federal Criminal Complaint Filed Against West, Texas Man Charging Him with Possession of A Destructive DeviceRead the Press Release
In Waco this morning, federal authorities filed a criminal complaint (Case #: W13-127M) charging 31-year-old Bryce Ashley Reed with unlawfully possessing an unregistered destructive device announced United States Attorney Robert Pitman and ATF Special Agent in Charge Robert Champion.
According to the complaint, on May 7, 2013, deputies from the McLennan County Sheriff’s Office were dispatched to a residence in Abbott, Texas, where they discovered an assortment of bomb making components. The complaint alleges that Reed had given the components to the resident on April 26, 2013.
ATF agents arrested Reed late yesterday afternoon in West. Reed had his initial appearance in federal court this morning in Waco. He remains in federal custody pending a detention hearing on May 15, 2013, in Waco before United States Magistrate Judge Jeffrey C. Manske.
Upon conviction, Reed faces up to ten years in federal prison and a maximum $250,000 fine.
At this time authorities will not speculate whether the possession of the unregistered destructive device has any connection to the West fertilizer plant explosion on April 17, 2013. This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives together with the McLennan County Sheriff’s Office, McLennan County District Attorney’s Office, West Police Department, Texas State Fire Marshal’s Office and Texas Department of Insurance Fraud Unit. Assistant United States Attorneys Mark Frazier and Greg Gloff are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Father and Son Linked to Separate Fraud Schemes Arrested at LAX as They Prepared to Leave U.S. with One-Way Plane Tickets to RussiaRead the Press Release
LOS ANGELES – A father and son were arrested yesterday afternoon as they were about to board a plane to Moscow on federal fraud charges that include allegations that the older man sent tens of thousands of bogus “invoices” to small business owners in California in a shakedown scheme that caused at least 5,000 victims to send $225 to a fake company that purported to be a state agency.
The men – Viktor Ryzhkin, 45, of the Little Armenia section of Los Angeles; and his son, Evgenii Ryzhkin, 22, who lived with his father – were arrested late yesterday afternoon at Los Angeles International Airport by federal agents as they prepared to board a Transaero Airlines flight to Russia. The Ryzhkins, both of whom are Russian nationals, and two other family members, all had one-way tickets to Moscow that had been purchased on Monday.
According to a criminal complaint filed Thursday afternoon in United States District Court, Viktor Ryzhkin targeted more than 170,000 California small business owners in a mail fraud scheme that would have brought in nearly $40 million had all of the potential victims complied with demands to send payments to “Corporate Business Filings,” a Beverly Hills company set up and controlled by Viktor Ryzhkin.
The small business owners targeted in this scheme received invoices that appeared to be from the State of California, notifying them that they each owed $225 to the state and directing them to fill out certain forms related to their businesses. The letters sent to the victims – all of which were sent over the course of several days at the end of March and beginning of April – each listed the correct, publicly available California Small Business Administration entity number assigned to the particular small business. The business owners were told in the letters that they would face $250 penalties if they did not remit payment by April 15, 2013, and did not fill out the forms as directed. The letters and invoices that appeared to be from the State of California were completely bogus.
Investigators believe that Viktor Ryzhkin became aware of the investigation into his scheme in late last month. Viktor and Evgenii Ryzhkin, accompanied by the two family members, were about to board a plane at 4:00 p.m. yesterday, when they were arrested by United States Postal Inspectors.
Evgenii Ryzhkin was charged in a separate criminal complaint filed yesterday in United States District Court. Evgenii Ryzhkin is charged with participating in a conspiracy to take over home equity lines of credit in a scheme that caused at least $1.2 million in losses. According to the affidavit in support of the criminal complaint against Eygenii Ryzhkin, he was caught on surveillance video depositing a stolen check linked to a hijacked HELOC account.
Both Ryzhkins are expected to make their initial court appearances this afternoon in United States District Court.
Viktor Ryzhkin is charged in a criminal complaint with mail fraud, which carries a statutory maximum sentence of 20 years in federal prison.
Evgenii Ryzhkin is charged in a separate criminal complaint with bank fraud and conspiracy to commit bank fraud, each of which carries a statutory maximum sentence of sentence of 30 years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This two cases against the Ryzhkins are being investigated by the United States Postal Inspection Service. The Federal Bureau of Investigations and U.S. Customs and Border Protection assisted during yesterday’s arrests.
Release No. 13-067
Executive Director of Bronx Not-For-Profit Sentenced to Five Months in Prison for Fraud and Obstruction of JusticeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID GRIFFITHS, the Executive Director of the Neighborhood Enhancement for Training Services, Inc. (“NETS”), was sentenced today to five months in prison for mail fraud and for making false statements to the government and obstruction of justice. GRIFFITHS was convicted on May 30, 2012, following a month-long jury trial. U.S. District Judge Alvin K. Hellerstein presided over the trial, and also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “David Griffiths told lie upon lie to cover up his misuse of government grants intended to benefit an important neighborhood enhancement program. And for those crimes, he will now be punished.”
According to the evidence introduced at trial and statements made in court:
Since November 2003, GRIFFITHS served as the Executive Director of NETS, which is a not-for-profit corporation located in the Bronx that received almost all of its funding from government grants. In 2008, the Federal Bureau of Investigation (“FBI”) began investigating the not-for-profit and its use of the government funds it received.
In June 2009, GRIFFITHS knowingly provided the FBI with documents that contained materially false statements and representations in response to a subpoena issued by a grand jury sitting in the Southern District of New York. The materially false statements and representations were made by GRIFFITHS in purported minutes of meetings of the NETS Board of Directors, and related to alleged authorizations he had obtained from the NETS Board to take certain payments as purported salary from NETS. GRIFFITHS provided those purported minutes to the FBI in an attempt to mislead the FBI and to obstruct its investigation. Specifically, he attempted to cover-up tens of thousands of dollars he had taken from NETS with no authorization and his scheme to take almost $200,000 more.
In September 2010, GRIFFITHS attempted to obtain additional grant money from the Dormitory Authority of the State of New York on behalf of NETS under false and fraudulent pretenses. Specifically, in an application he mailed to the Authority’s office in Albany, GRIFFITHS falsely stated that neither he nor NETS and its officers and directors had been the subject of a criminal investigation, a civil investigation, or unsatisfied tax liens and judgments for the past five years. In fact, when GRIFFITHS made these misrepresentations, he knew that he and NETS were under investigation by the FBI as well as by the New York State Attorney General’s Office, and that NETS had unsatisfied tax liens and judgments against it.
In addition to the prison term, GRIFFITHS, 67, of White Plains, New York, was sentenced to two years of supervised release, and ordered to pay a $10,000 fine and a mandatory special assessment of $300.
Mr. Bharara thanked the FBI for its assistance on this case.
This case is being handled by the Office's Public Corruption Unit. Assistant United States Attorneys Carrie H. Cohen and Justin Anderson are in charge of the prosecution.
Essex, Iowa, Resident Sentenced to 6 Months in Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On May 9, 2013, Danny Joel Hummel, a 59 year-old resident of Essex, Iowa, was sentenced by United States Senior District Court Judge Robert Pratt to six months in prison followed by ten years of supervised release for possession of child pornography, announced Nicholas A. Klinefeldt. Hummel pled guilty to the charge of possession of child pornography on February 15, 2013.
The charge was the result of an investigation conducted by law enforcement agencies who were advised by the National Center for Missing and Exploited Children that an Essex, Iowa, resident was in possession of child pornography. Based on the information provided by the National Center for Missing and Exploited Children, law enforcement located several computers in Hummel’s residence upon which numerous images and videos containing child pornography were found.
While on supervised release, Hummel’s activities will be monitored by officers of the United States Probation Office for the Southern District of Iowa.
The investigation was conducted by the Iowa Division of Criminal Investigation, Cyber Crimes Unit, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Erie-area Woman Sentenced to 51 Months in Prison for Stealing $1.1 MillionRead the Press Release
ERIE, Pa. - A resident of St. Marys, Pennsylvania, has been sentenced in federal court to 51 months in jail on her conviction of mail fraud and tax evasion and ordered to pay $1,106,403.78 in restitution to Abbott Furnace Company and $428,595.84 to the Internal Revenue Service, United States Attorney David J. Hickton announced today.
Chief United States District Judge Sean J. McLaughlin imposed the sentence on Sandra Ann Prechtel, 51.
According to information presented to the court, Prechtel was an employee of the Abbott Furnace Company who from the period between 2002 and April 2007, engaged in a scheme and artifice to defraud the company and embezzled and spent more than $1,106,403.78 of company money. The Court was further advised that Prechtel engaged in the fraud and stole the money from the company by engaging in a variety of schemes. Prechtel prepared bi-weekly payroll reports reflecting the deductions and pay of employees of the company, but direct deposited or wrote thousands of dollars in additional payroll checks to herself that were not reflected on the company payroll reports; she managed the payroll deductions that would be credited to employee credit union savings accounts and inflated the amount of company funds to be deposited into her own credit union account without regularly deducting those amounts from her pay; she utilized company funds to pay off more than $570,000.00 in personal credit card balances for her personal expenditures; she prepared false W-2 wage forms for herself, understating her income from the company; she manipulated the company's bank and checking account records; and finally, Prechtel concealed these transactions by not properly documenting, or by altering, the company's books, records and accounting system. Also in connection with the guilty plea, the court was further advised Prechtel willfully evaded the payment of income taxes by failing to report as income the money she stole from Abbott Furnace for calendar years 2004, 2005 and 2006. According to information presented at the sentencing hearing, examples of Prechtel's spending of the company money included a $15,500.00 purchase a 2004 Cherokee recreational vehicle, a Harley Davidson motorcycle with custom paint job, a vacuum cleaner for approximately $1,400.00, and multiple trips to Disney World.
Prior to imposing sentence, Judge McLaughlin commented on the impact Prechtel's crime had on Abbott Furnace and its employees, and stated that the sentence imposed reflected the seriousness of her stealing from a company that trusted her and treated her as a friend and member of the Abbott Furnace family. Judge McLaughlin commented further that Prechtel's deception and commission of the offense over so many years became her method of operation and means of livelihood. Judge McLaughlin rejected Prechtel's claim that her health and family responsibilities warranted a sentence reduction. Further, Judge McLaughlin commented that Prechtel's claim that she supposedly used some of the money to buy things for her family rather than for herself was also not a basis for a reduced sentence.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Prechtel.
District Man Sentenced to Five Years in Prison for Sexually Assaulting Woman in Southeast Washington-Victim Rejected Advances and Then Was Attacked-Read the Press Release
WASHINGTON – A 41-year-old man was sentenced today to five years in prison on a charge stemming from a sexual assault earlier this year against a woman with whom he had a child, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, of Washington, D.C., is not identified here to protect the privacy of the victim and her family. He pled guilty in March 2013 in the Superior Court of the District of Columbia to attempted first-degree sexual abuse. The Honorable Ronna L. Beck sentenced him. Upon completion of his prison term, the man will be placed on five years of supervised release.
According to the government’s evidence, the defendant and the victim once had a romantic relationship and she is the mother of his teenage child. On or about Jan. 10, 2013, he learned that the victim was involved in a romantic relationship with another man, which upset him. That day, he spoke to the victim on the telephone, demanding sex. When she rejected his advances, he showed up at her house in Southeast Washington, sent their child to the store to buy food, and propositioned her again. When the victim rejected his advances and told him that she was seeing someone, the defendant forced her to the bed and sexually assaulted her. During the assault, the defendant told the victim, among other things, that, “you will always be mine.”
In announcing the sentence plea, U.S. Attorney Machen commended the officers and detectives of the Metropolitan Police Department’s Sexual Assault Unit, who investigated the case. He also expressed appreciation to Paralegal Specialists D’Yvonne Key and Kristy Penny, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
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