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Thursday 21 March 2013
Owner of Bluegrass Women’s Healthcare in Elizabethtown Charged with Health Care Fraud, Mail Fraud, Misbranding and SmugglingRead the Press Release
LOUISVILLE, Ky. – The owner of Bluegrass Women’s Healthcare, located in Elizabethtown, Kentucky was charged, in a 13 count federal grand jury indictment this week, with health care fraud, mail fraud, misbranding and smuggling announced David J. Hale, United States Attorney for the Western District of Kentucky.
Canh Jeff Vo, age 45, of Elizabethtown, Kentucky was the owner, supervising physician, and president at Bluegrass Women’s Healthcare between March 2008 and September 2009 when the alleged violations occurred. Vo offered gynecological and obstetric services to women at Bluegrass Women’s Healthcare, including providing forms of birth control. According to the federal indictment, between March 2008 and September 2009, Vo, with the intent to defraud or mislead, purchased and inserted into patients, foreign, non-FDA approved Mirenas (levonorgesteral-releasing intrauterine device). These Mirena intrauterine devices or IUDs, were misbranded in that their labeling was not in the English language; and their labeling did not bear adequate directions for use.
Further defendant Vo is charged with health care fraud for submitting false claims for reimbursement from the Medicaid Program. Specifically, Vo is alleged to have billed the Kentucky Medicaid Program and other insurers as if he was administering the FDA-approved version of Mirena, at a greater cost, when he was actually administering a non-FDA approved version of Mirena.
Additionally, Vo is charged with ten counts of mail fraud for utilizing the United States Mail, by receiving payment from the Kentucky Medicaid Program and private insurance companies for Mirena IUDs which were not approved for sale in the United States.
It is also alleged, in the federal indictment, that between March 2008 and September 2009, Vo received, brought, and imported into the United States, Mirena IUDs, knowing that these were misbranded and unlawfully introduced into interstate commerce from various countries, including from Canada.
If convicted at trial, Vo faces a maximum of 233 years in prison, a maximum fine of $3,010,000 and up to 3 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and is being investigated by the United States Food and Drug Administration (FDA) Office of Criminal Investigations, the Federal Bureau of Investigation (FBI), and Kentucky Office of the Attorney General Office of Medicaid Fraud and Abuse Control.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Operator of $8.9 Million Ponzi Scheme Receives 65-month SentenceRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Jerry Smith, 50, of Brookville, Indiana, was sentenced to 65 months in prison, ordered to pay $5,406,950.65 in restitution to victims and $72,412.70 in restitution to the IRS for his role in an investment scheme that ensnared approximately 72 investors in Ohio, Indiana and Kentucky.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Dugan Wong, Inspector in Charge, U.S. Postal Inspection Service, and Denise Rocawich, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the sentence imposed yesterday by Senior U.S. District Judge Herman J. Weber.
On June 12, 2012, Smith pleaded guilty to three counts of a four-count bill of information charging him and his co-conspirator, Jason Snelling, 48, Cincinnati, with crimes arising out of their operation of a multi-million dollar Ponzi scheme. Smith admitted that he engaged in a mail and wire fraud conspiracy in connection with a scheme to defraud investors in CityFund and Dunhill, two bogus “day trading” entities which were nothing more than bank accounts where investors’ funds were deposited and then spent by Snelling and Smith.
Smith also admitted that he engaged in obstruction by creating fictitious trading statements and providing them to federal agents to impede the investigation and cover up the fraud. Finally, Smith admitted that he committed tax evasion by failing to report the embezzled investor funds as income on his tax returns for the tax year 2008 and additional tax years.
“Consistent with a classic Ponzi scheme, early investors were paid interest or return of capital payments, which were not generated by investment earnings, but rather by monies solicited from later investors,” Stewart said. “These payments served to lull the victims into a false sense of security and to prevent or delay the discovery of the fraudulent investment scheme.”
During the course of this fraudulent scheme, Smith used investors’ money to pay for his expensive rural Indiana home, to buy a boat and jet skis, and to operate his insurance business.
Smith issued himself a monthly payment from CityFund Advisory, LLC. He made checks payable to his corporation, Smith’s Realty and Insurance. All of the monthly checks were, in fact, income to Smith and were not reported on his personal federal income tax returns. For the 2006 through 2009 income tax years, Smith willfully and knowingly omitted a total of $345,735.62 in income on his personal income tax returns, resulting in a total tax loss to the IRS of $72,412.70.
On October 23, 2012 Snelling was sentenced to 131 months in prison, ordered to pay $5,336,177.78 in restitution to the victims and $596,928.69 in restitution to the IRS. Smith was also ordered to pay $5,000,000 in a forfeiture money judgment.
“The Postal Inspection Service is committed to investigating investment schemes like the one run by Smith and Snelling that target Postal customers every day,” Inspector in Charge Wong said. “Postal Inspectors have a long history of investigating mail fraud dating back to Charles Ponzi himself. It is part of our mission to protect the customers of the Postal Service.”
“Investment fraud is like a 'house of cards.' Because Ponzi schemes have no legitimate business purpose, they can collapse when the money runs out, leaving many investors in financial ruin," said IRS Acting Special Agent in Charge Rocawich. “Investors should watch for red flags, such as guaranteed above-market interest earnings. Investors should thoroughly investigate the nature of any investment before investing their retirement savings.”
This case was prosecuted by Senior Litigation Counsel Anne L. Porter and was investigated by U.S. Postal Inspectors and special agents of IRS-Criminal Investigation.
One of five co-defendants convicted of embezzling from Trident Seafoods sentenced to 16 months prisonRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Washington woman was sentenced for her role in embezzling $289,000 from Trident Seafoods.
Anne Wilson, 31 of Kent, Washington, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to 16 months in prison.
According to Assistant U.S. Attorney Aunnie Steward, from January 2008, and continuing until August 2010, the lead defendant Isairis Wolfe, used her position as the book keeper for Trident Seafoods in Kodiak, to write Trident Seafoods checks to four of her personal associates Anne Wilson, Jeremy Smith, Valerie Olivares, and Jamie Fathke. Wolfe, using her check writing authority at Trident Seafoods, drafted approximately 52 checks on a Trident Seafoods account for approximately $500,000, and made them payable to her personal associates Wilson, Smith, Olivares, and Fathke, as well as to Wilson's minor son L.E. The checks were negotiated by Wolfe and her associates and they shared the proceeds. Wolfe concealed the fraud by creating fraudulent accounting records so that the payments appeared to be legitimate.
Wilson and Wolfe met while working together at Trident Seafoods. Wilson was fired from Trident Seafoods but stayed in touch with Wolfe. Wilson approached Wolfe for a loan of a few hundred dollars and instead of granting a loan, Wolfe asked Wilson to join the scheme to defraud Trident Seafoods which she agreed to. Over a two and a half year period, Wilson negotiated 28 fraudulent checks that were made out to both her and her minor son that totaled $289,660. Wilson kept half of the money from the fraudulent checks and provided the remaining half to Wolfe. Wilson admitted that she wired some of the money from the fraudulent scheme to the father of her children who was in Mexico, knowing that he was a fugitive for a murder charge in Texas.
Wilson said that she knew that what she was doing was wrong but that did not stop her participation in the scheme. The scheme only stopped when Wolfe was fired from Trident Seafoods for performance related reasons and was no longer in a position to write the fraudulent checks. The scheme was discovered when an audit of the books and records was conducted by Trident Seafoods. Wilson admitted in court that she obtained United States citizenship while the scheme was ongoing but before it was discovered by Trident Seafoods.
Wolfe is scheduled for sentencing on May 22, 2013. Olivares and Smith are scheduled for sentencing on June 4, 2013. Fathke was sentenced on January 9, 2013, to 4 months jail for her role in embezzling $30,000 from Trident Seafoods.
Ms. Loeffler commends the FBI for the investigation of this case.
Northford Man Sentenced to 18 Months in Prison for Failing to Pay Taxes on More Than $640,000 in IncomeRead the Press Release
March 21, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that PHILIP NEY, 62, of Northford, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 18 months of imprisonment, followed by one year of supervised release, for failing to pay taxes on more than $640,000 in income.
According to court documents and statements made in court, NEY owns and operates Empire Restoration Company in Northford, which provides residential and commercial roofing services, as well as snow plowing services. From 2004 through 2008, part of the income derived from those services was deposited into NEY’s business checking account and part was deposited into his passbook savings accounts. When preparing his federal tax returns for the 2004 to 2008 tax years, NEY’s tax return preparers asked him to report all of his business income. However, NEY did not provide his tax preparers with information related to business income that he had deposited into three savings accounts. For the 2004 through 2008 tax years, NEY failed to report on his tax returns a total of $640,581 in income that had been deposited into his savings accounts.
On November 26, 2012, NEY waived his right to indictment and pleaded guilty to one count of filing a false federal income tax return. In pleading guilty, NEY admitted that on April 15, 2009, he signed and filed his 2008 U.S. Individual Income Tax Return, Form 1040, which falsely reported Schedule C gross business receipts of $529,934 and the amount of tax due of $28,544. In fact, NEY’s actual gross business receipts for 2008 were $771,615 and he should have paid $107,377 in federal income tax.
As part of the resolution of this case, NEY has agreed to pay $192,671 in back taxes, plus penalties and interest, for the 2004 through 2008 tax years.
NEY was ordered to report to prison on June 3, 2013.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and was prosecuted by Assistant United States Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Norman Toups, Jr. Sentenced for Defrauding the Social Security AdministrationRead the Press Release
NORMAN TOUPS, JR., 63, a resident of Jefferson Parish, was sentenced in federal court yesterday to two years probation by U.S. District Judge Stanwood R. Duval, Jr., announced U.S. Attorney Dana J. Boente. TOUPS paid full restitution to the Social Security Administration prior to sentencing.
According to court documents, TOUPS pled guilty on November 28, 2012 , to making false statements in an application to the Social Security Administration for disability benefits claiming that he could no longer work as a security guard due to sever leg pain. In his application, TOUPS also claimed that he was financially destitute when, in truth and fact, he owned several valuable pieces of real estate in the New Orleans area. As a result of his false statements to Social Security, TOUPS received $53,632,79 in disability benefits to which he was not entitled.
The case was investigated by the Office of Inspector General for the Social Security Administration. The case was being prosecuted by Assistant United States Attorney Spiro Latsis.
Norman and Jami Ducre Plead Guilty to Filing False Tax ReturnsRead the Press Release
NORMAN DUCRE, 41 and JAMI DUCRE, 44, residents of Slidell, Louisiana, each pleaded guilty in federal court yesterday before the Honorable Susie Morgan to two counts of willfully making and subscribing a false tax return, announced U.S. Attorney Dana J. Boente.
According to the factual basis, during the charged years, the DUCREs owned and operated J & J Auto Brokers, LLC, a used car dealership located in Slidell, Louisiana. NORMAN DUCRE was primarily responsible for sales and inventory acquisition and management, while JAMI DUCRE was primarily responsible for the business' bookkeeping. As part of her plea, JAMI DUCRE admitted to providing false and fraudulent monthly income and expense statements to the firm's tax preparer, knowing full well that the reports did not contain all of the business's cash sales. Likewise, NORMAN DUCRE admitted as part of his guilty plea that, on a routine basis, he would fail to report cash sales made by J & J Auto Brokers, and would further pocket the cash made from the illicit sales, instead of reporting said cash on the businesses books and records.
The fraudulent income reports that both NORMAN and JAMI DUCRE provided or caused to be provided to their tax preparer were then used to prepare income tax returns for the business and for the DUCREs individually. At their plea hearing yesterday, the DUCREs admitted to signing and filing with the IRS a false Form 1040 for tax year 2005 that substantially understated their income from J & J Auto Brokers and a false Form 1040 for tax year 2006 that substantially overstated their loss from the business. The total tax loss from the charged conduct is $69,451.
Sentencing for both defendants is set for June 19, 2013. As to each count, the DUCREs face a maximum term of three years imprisonment, a fine of $100,000, a $100 special assessment, and a one year supervised release following any term of imprisonment.
The case was investigated by the Internal Revenue Service, Criminal Investigation. The case is being prosecuted by Assistant U. S. Attorney Carter Guice and Trial Attorney Hayden Brockett of the U. S. Department of Justice, Tax Division.
(Download Factual Basis )
Netzahualcoyotl Guinto-ascenscio Pleads Guilty to Unlawfully Transferring A Fraudulent Identification DocumentRead the Press Release
NETZAHUALCOYOTL GUINTO-ASCENSCIO, age 36, a citizen of Mexico, pled guilty in federal court today before U.S. District Judge Jay C. Zainey, announced U.S. Attorney Dana Boente. GUINTO pled guilty to a count one of a three-count indictment charging him with unlawful transfer of a fraudulent identification document.
According to court documents, on or about October 16, 2012, GUINTO sold a counterfeit Social Security card, knowing that the identification document was produced without lawful authority, and the false identification document appeared to have been issued by or under the authority of the United States.
GUINTO faces a maximum term of fifteen years imprisonment, a fine of $250,000, and a three years of supervised release following any term of imprisonment. Sentencing is scheduled for June 18, 2013 at 10:00 A.M.
The case was investigated the U.S. Department of Homeland Security, Homeland Security Investigations. The case is being prosecuted by Special Assistant U.S. Attorney Robert Weir.
(Download Factual Basis )
Nedra Bell Pleads Guilty to Katrina Related Fraud and to Making False Statements to Housing Authority of New OrleansRead the Press Release
NEDRA BELL, age 40, a resident of New Orleans, Louisiana, pled guilty in federal court today before U.S. District Court Judge Lance M. Africk, to theft of government funds and to making false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente.
According to court documents, BELL applied for a Louisiana Road Home grant for property she was renting from her brother at the time of Hurricane Katrina. BELL applied for the grant on behalf of her brother, falsely stating that he was residing in the property at the time of Hurricane Katrina. As a result of her false statements in her application, BELL fraudulently received approximately $54,372 from the United States Department of Housing and Urban Development (“HUD”), an agency and department of the United States.
BELL is also charged with one count of making false statements to a federal agency on a re-certification application and HUD Income Questionnaire to the Housing Authority of New Orleans (“HANO”) for HUD rental subsidized housing under its Section 8 program. BELL denied that she received self-employment income or owned property, when in truth and in fact, she received income from her business as a hair stylist and owned property.
Upon sentencing, set for June 20, 2013, BELL faces a maximum term of imprisonment of fifteen years years, a $250,0000 fine, restitution to the HUD, three years of supervised release following any term of imprisonment, and a $200 special assessment.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. The case was prosecuted by Assistant U. S. Attorney Julia K. Evans.(Download Factual Basis )
Montana Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Belgrade, Montana man convicted of Possession of Child Pornography was sentenced on March 15, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Blackburn, age 63, was sentenced to 36 months’ imprisonment, 10 years’ supervised release and ordered to pay $100 to the Victim Assistance Fund.
In April 2012, Blackburn knowingly possessed computer files that contained images of child pornography. He pled guilty on October 29, 2012.
This case was investigated by the South Dakota Division of Criminal Investigation, and Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Monroeville Man Sentenced in Aggravated Assault CaseRead the Press Release
Montgomery, Alabama - A federal judge sentenced Marcus Dupree Hurry, 22, of Monroeville, to seven years in prison for his assault on a Deputy United States Marshal in February, 2012, announced George L. Beck, United States Attorney for the Middle District of Alabama.
On February 28, 2012, the United States Marshals Service Gulf Coast Regional Fugitive Task Force received information that Leslie McMillian, who was wanted for murder was residing in Prattville, Alabama. McMillan was supposed to be at the Sweet Water Apartment complex in Prattville, Alabama. Law enforcement set up surveillance at the apartment complex and saw McMillian and an unknown black male, later discovered to be Marcus Dupree Hurry, get into a Chevy Impala, with Hurry driving. Investigators began following the vehicle East on Highway 14. Approximately one to one and a half miles later, officers began to suspect that McMillian and Hurry realized they were being followed.
Shortly thereafter, Hurry did an abrupt U-turn and began speeding away, crossing under Interstate 65. After officers activated the lights and sirens on their vehicles, Hurry ran through a red light and collided with another vehicle. Hurry then drove away from the collision, into the grass and up an embankment toward I-65. When Hurry could not get the vehicle up the embankment, he shifted it into reverse and sped towards the federal officers who had exited their vehicles. One U.S. Deputy Marshal was in the direct path of the vehicle. The Deputy Marshal was standing outside of his vehicle in clothing that clearly identified him as a law enforcement officer. As the vehicle came toward the Deputy, he shot Hurry in the arm in an attempt to prevent injury or death to himself and other officers. Hurry and McMillian were then removed from the car, arrested, and searched.
“Law enforcement officers valiantly risk their lives every day to protect our citizens,” stated U.S. Attorney Beck. “We must do all we can to keep them safe from those criminals that try to do them harm. This case should serve as a warning to those who attempt to harm law enforcement officers in order to further their criminal activity. Those criminals will be vigorously prosecuted to the full extent of the law.”
“This is prime example of the dangerous work Deputy United States Marshals perform every day,” stated Arthur D. Baylor, United States Marshal for the Middle District of Alabama. “The United States Marshals Service will remain vigilant in our efforts to track down federal and state fugitives that flee from justice.”
United States District Court Judge Mark E. Fuller sentenced Hurry to seven years in the Bureau of Prisons, followed by two years of supervised release and a $100 court assessment fee. A hearing to determine restitution owed to the victim who was injured when Hurry collided with his/her vehicle while fleeing from law enforcement will be held within the next 90 days.
The case was investigated by the Alabama Bureau of Investigation, and the United States Marshal’s Service, with the aid of the Monroe County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Susan R. Redmond and Jared Morris.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Monmouth County, N.J., Man Admits to Filing False Personal Income Tax Returns Omitting Swiss Bank AccountsRead the Press Release
TRENTON, N.J. - A Monmouth County, N.J., man today admitted filing false personal federal income tax returns, U.S. Attorney Paul J. Fishman announced.
Rakesh Chitkara, 60, of Marlboro, N.J., pleaded guilty today before U.S. District Judge Mary L. Cooper to Count Four of a five-count Information, charging him with making and subscribing to a 2007 federal income tax return to the IRS that he did not believe to be true.
According to documents filed in this case and statements made in court:
Chitkara admitted that he had a financial interest in at least two financial accounts at UBS AG in Zurich, Switzerland, and that he knowingly failed to disclose these accounts, and income from these accounts, on his personal tax returns for five years.
Citizens and residents of the United States who have an interest in, or signature or other authority over, a financial account in a foreign country at any time during the relevant tax year are required to so indicate on a U.S. Individual Income Tax Return, Form 1040, by checking “Yes” or “No” in the appropriate box on Schedule B, Part III - Foreign Accounts and Trusts. Citizens and residents of the United States are also required to report any interest and dividend income, as well as capital gain income, earned from such accounts.
On April 20, 1989, Chitkara caused to be opened an account in his own name at UBS AG in Zurich, Switzerland. On Jan. 13, 2000, Chitkara opened an account at UBS (Bahamas) Ltd. in the name of GMX. GMX Industries Inc. was a corporation formed under the laws of the Commonwealth of the Bahamas that was utilized to conceal Chitkara’s beneficial ownership in one of his two UBS accounts. On Oct. 10, 2002, Chitkara caused to be opened an account at UBS AG in Zurich, Switzerland, in the name of GMX, which was intended to be the successor account of the GMX account opened at UBS (Bahamas) Ltd. Chitkara was the sole beneficial owner of the GMX accounts at UBS (Bahamas) Ltd. and at UBS AG in Zurich.
Chitkara admitted that for tax years 2004 through 2008, he failed to report income received by him in one or more accounts at UBS and failed to report that he had an interest in, or a signature or other authority over, the financial accounts in Switzerland when he knew he had received income in one or more of the Swiss bank accounts.
As part of his plea agreement, Chitkara must repay back taxes – which the government contends total approximately $27,000, in addition to a civil penalty of $839,885, for willfully failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) to the IRS.
The charge to which Chitkara pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is currently scheduled for June 26, 2013.
U.S. Attorney Fishman credited special agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation that resulted in today’s sentencing.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton and Trial Attorney Tino Lisella of the Justice Department’s Tax Division.
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Defense counsel: Ian M. Comisky and Matthew D. Lee Esqs., Philadelphia
Chitkara, Rakesh Information
Mission Woman Pleads Guilty to Theft of Government FundsRead the Press Release
United States Attorney Brendan V. Johnson announced that Donna Peterson, age 48, of Mission, South Dakota appeared before U.S. District Court Judge Roberto A. Lange on March 18, 2013 and pled guilty to one count of Theft of Government Funds. The maximum penalty upon conviction is ten years in custody, a $250,000 fine, and 3 years of supervised release.
From 1996 to 2008, Donna Peterson was an employee of Costello Company Property Management. During that time she served as manager of the Sunrise Village Apartment Complex which was managed by Costello Company Property Management and located in Mission, South Dakota. The United States Department of Agriculture Rural Development Agency provided rent subsidy payments to Costello Property Management for tenants who met certain income requirements. Between January 1, 2007 and December 31, 2007, Peterson received cash from tenants in an amount $32,723.36 which she did not deposit in the Sunrise Village bank account, but instead embezzled and misapplied.
The investigation was conducted by the United States Department of Agriculture, Office of Inspector General-Investigations . The case is being prosecuted by Assistant U.S. Attorney Dennis R. Holmes.
A presentence investigation was ordered and a sentencing date was set for June 3, 2013. The defendant was released on bond pending sentencing.
Mission Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Johnny Lunderman, a/k/a Johnny Iron Horse, age 30, of Mission, South Dakota appeared before U.S. District Judge Roberto A. Lange on March 19, 2013 and pled guilty to Failure to Register as a Sex Offender. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; life of supervised release; and a $100 special assessment.
The Defendant was convicted of Sexual Abuse of a Minor on September 8, 2009. The Court sentenced Lunderman to 40 months’ imprisonment, 5 years of supervised release and also ordered that he must register as a sex offender. On January 9, 2012, Lunderman began his term of supervised release. It was determined on December 12, 2012 that Lunderman was not living at the home in which he had registered in Rapid City. On February 3, 2013 Lunderman was arrested near the Rosebud Sioux Indian Reservation.
The investigation was conducted by the U.S. Marshal Service. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for June 3, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Michael Page Pleads Guilty to Federal Drug ViolationRead the Press Release
MICHAEL PAGE, 36, a resident of Slidell, Louisiana, pleaded guilty today in federal court before U.S. District Court Judge Lance M. Africk to one count of conspiracy to distribute and possess with intent to distribute cocaine base (“crack”), announced U.S. Attorney Dana J. Boente.
According to court documents, PAGE conspired with others, known and unknown from February of 2010 until September of 2010 to distribute and possess with intent to distribute at least twenty-eight (28) grams of crack cocaine. The statutory penalties provided for the violation calls for not less than five (5) years and not more than forty (40) years of incarceration, a maximum fine of $5,000,000, and not less than four (4) years of supervised release. Sentencing is scheduled for June 20, 2013.
This investigation was initiated based upon a request for assistance by St. Tammany Parish Sheriff Jack Strain. Deputies with the Narcotics Unit of the St. Tammany Parish Sheriff’s Office have assisted Special Agents of the Federal Bureau of Investigation with this matter over the course of several months. This case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
(Download Factual Basis )
Mexican National Sentenced for Aggravated Identity Theft and PerjuryRead the Press Release
BOISE – Mauricio Becerril, 40, a Mexican national formerly living in Ontario, Oregon, was sentenced today in United States District Court in Boise to 36 months in prison and a $200 special assessment for aggravated identity theft and perjury, U.S. Attorney Wendy J. Olson announced. Becerill appeared today before Senior U.S. District Judge William B. Shubb of the Eastern District of California. He pleaded guilty to the charge on December 20, 2012.
According to the plea agreement, on September 3, 2010, Becerril, using the name “E.Z.R.,” filed an application to obtain a permanent United States resident card. In the application, Becerril used the name, date of birth, and social security number of the individual, aware that he was using another person’s identity. At the time that he filed the application, Becerril knew that E.Z.R. was a real person, based upon the fact that he requested a replacement permanent resident card, and had obtained permanent resident cards in E.Z.R.'s name in the past. On January 3, 2011, the U.S. Citizenship and Immigration Services (USCIS) approved the application, and subsequently provided Becerril with a permanent resident card bearing the name of E.Z.R., but with Becerril’s photograph.
On June 11, 2012, Becerril met with a special agent of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The agent was investigating whether Becerril obtained a visa by fraud using another individual's identity. When questioned under oath, Becerril swore his true identity was E.Z.R., knowing this statement was false.
“Identity thieves don’t just steal names, they steal peoples’ lives,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Idaho investigations. “This is a crime that wreaks havoc on a victim’s finances and reputations. It can take years, if not decades, to undo the damage.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Enforcement Removal Operations.
Memphis Man Sentenced to 10 Years for Child Sex Trafficking ConspiracyRead the Press Release
Memphis, TN – Vincent Jones, 26, of Memphis, was sentenced to 120 months in prison today for conspiracy to engage in child sex trafficking and sex trafficking by force, fraud, and coercion by United States District Judge Samuel H. Mays, Jr., announced United States Attorney Edward L. Stanton III and Special Agent in Charge of the Memphis Federal Bureau of Investigation Field Office Aaron T. Ford.
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According to the indictment, in the summer of 2011 Jones and his co-defendant, Kala Bray, lured two Memphis-area juveniles to Houston, TX with promises of a trip to a water park. Bray and Jones plied the teens with drugs including Oxycontin and Xanax and made the juveniles engage in commercial sex acts both in Memphis and Houston. Jones pled guilty to the sex trafficking conspiracy on July 7, 2012.
U.S. District Judge Samuel H. Mays also ordered Jones to serve five years of supervised release following his release from prison. Kala Bray, Jones=s co-defendant, pled guilty to the same conspiracy charge on November 4, 2011, and was sentenced to 14 years in prison on October 11, 2012. Parole is not a possibility in the federal system.
“This office will utilize every available resource to ensure that our children are protected from those who seek to exploit them through the unspeakable act of sex trafficking,” said U.S. Attorney Stanton. “Today’s sentence should send a clear message that we have zero tolerance for any form of sex trafficking, and those who engage in such activity will be aggressively prosecuted and ultimately brought to justice.
“Sex trafficking is not just an international or a national problem, it is also a local problem, and we need to remain alert to this issue and address it vigilantly,” said Aaron T. Ford, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “This sentencing, the result of the coordinated and aggressive efforts from the FBI and our law enforcement partners, demonstrates our intent to put an end to this type of predatory operation and free the victims.”
The case was investigated by the Federal Bureau of Investigation working in conjunction with the Memphis Police Department, the Bartlett Police Department, and the Houston Police Department. FBI Special Agent Michael Saltsman was the lead investigator on the case. Assistant United States Attorney Jonathan Skrmetti from the Civil Rights Unit of the U.S. Attorney=s Office and Trial Attorney Mike Grant from the U.S. Department of Justice Criminal Division=s Child Exploitation and Obscenity Section prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Member of National Drug Organization SentencedRead the Press Release
NEWPORT NEWS, Va. – Kevin Gerald Forde, aka “Miami Kev,” 38, of Newport News, Va., was sentenced today to 300 months in prison, followed by 10 years of supervised release, for his participation in a complex drug trafficking organization operating between New York, California, and the Virginia Peninsula.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Mythili Raman, Acting Assistant Attorney General for the Criminal Division, made the announcement after sentencing by United States District Judge Mark S. Davis.
Forde was found guilty by a federal jury on Nov. 7, 2012, and convicted of drug conspiracy, distribution of cocaine, and illegal use of a communication device.
Forde was charged, along with several co-defendants, in a superseding indictment returned on Aug. 15, 2012. According to court documents and evidence presented in court, suppliers of multi-kilogram quantities of illegal drugs in New York, California, Georgia, North Carolina and Texas distributed cocaine and marijuana to leaders of the long-running organization for further distribution on the Virginia Peninsula. Forde was part of a sophisticated drug network that supplied the Thug Relations street gang, which was located primarily in the Aqueduct Apartments and Warwick Lawn Apartments in the Denbigh area of Newport News. Beginning in 1999 until his arrest in 2011, Forde was a buyer and seller of cocaine and crack cocaine who participated in hundreds of transactions with numerous individuals that involved a wide range of quantities.
This case was investigated by the FBI Safe Streets Task Force, the Virginia State Police, the Newport News Police Department, the Peninsula Narcotics Enforcement Task Force, and Homeland Security. Assistant United States Attorney Eric Hurt and Trial Attorney Louis Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division 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.Martin Woman Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Belinda Dubray, age 44, of Martin, South Dakota appeared before Chief Judge Jeffrey L. Viken, U.S. District Court, on March 7, 2013 and pled guilty to distribution of a controlled substance. The maximum penalty upon conviction is 10 years of imprisonment and/or a $500,000 fine.
On September 7, 2012 at Martin, Dubray distributed hydrocodone with acetaminophen. The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Northern Plains Safe Trails Drug Enforcement Task Force, the Martin Police Department, and the South Dakota Division of Criminal Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for July 12, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Manhattan U.S. Attorney Announces Charges Against Bronx Pharmacy Owner for Participating in Medicaid Fraud Scheme Involving the Diversion of Prescription DrugsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York and
George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of charges against DAVID CORREA, a Bronx pharmacy owner, for his participation in a Medicaid fraud scheme involving the unlawful diversion of prescription drugs that had previously been dispensed to Medicaid recipients in the New York City area (“second-hand” drugs). Today’s charges are a result of the continuing investigation which led to the arrests on July 17, 2012 of dozens of people in connection with a $500 million Medicaid fraud scheme. CORREA was arrested this morning, and will be presented and arraigned in Manhattan federal court before U.S. Magistrate Judge Michael H. Dolinger later this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “With today’s charges, we continue to target alleged black marketeers of second-hand drugs for prosecution. The alleged scheme enabled David Correa to defraud Medicaid and other insurance providers out of hundreds of thousands of dollars, while potentially compromising the health of very sick people in need of life-saving drugs. Our investigation remains very much ongoing.”
FBI Assistant Director-in-Charge George Venizelos said: “Today’s arrest is part of our ongoing investigation that previously uncovered a massive, multi-state drug diversion conspiracy. This scheme – including the defendant’s alleged conduct – defrauded Medicaid and, indirectly, U.S. taxpayers. It also threatened the health of the patients whose prescriptions were filled with diverted and repackaged medications. Health care fraud is a multibillion-dollar industry it is our mission to put out of business.”
The following allegations are based on the Complaint unsealed today in Manhattan federal court:
From at least 2010 through July 2012, CORREA conspired to purchase various second-hand prescription pills at heavily discounted prices from two individuals, who are now cooperating with the Government, in order to resell the pills at his pharmacy. The prescription drugs were designed to treat various illnesses, including HIV, schizophrenia, and asthma, and were originally dispensed to Medicaid recipients and private insurance beneficiaries in the New York City area, who then sold them into collection and distribution channels that ultimately ended at pharmacies, including the pharmacy CORREA owned. CORREA regularly purchased approximately 50 to 100 bottles of prescription drugs per month for $5,000 to $10,000 from the cooperators. He purchased the pills with cash in transactions outside of his pharmacy or in the parking lot of a nearby department store, where the drugs were delivered to him in plastic bags and beer boxes. By re-selling second-hand prescription pills as “new” to unsuspecting patients, and fraudulently seeking reimbursement from health care benefit programs, including Medicaid, CORREA could potentially reap hundreds of thousands of dollars in unlawful profits. For example, CORREA purchased HIV medication from the cooperators for $200 per bottle, and would have been reimbursed by Medicaid for more than $1,100 per bottle. So he stood to make more than $900 on each bottle of second-hand prescription medication he sold.
CORREA, 43, of Yonkers, New York, is charged with one count of conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and one count of conspiracy to commit various violations of the Food, Drug and Cosmetic Act relating to the misbranding and adulteration of prescription drugs, which carries a maximum penalty of five years in prison.
Mr. Bharara praised the efforts of the FBI's Health Care Fraud Task Force and thanked the FBI for its work on the case.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Jason A. Masimore, Russell Capone, and Edward B. Diskant are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. David Correa Complaint
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Insider Trading Charges Against Former Galleon Portfolio Manager Rengan RajaratnamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced conspiracy and securities fraud charges against RAJARENGAN RAJARATNAM (“RENGAN RAJARATNAM”), a former portfolio manager at the hedge fund management firm Galleon Group, for his alleged involvement in an insider trading scheme. RENGAN RAJARATNAM allegedly conspired with his brother, Galleon founder Raj Rajaratnam, to trade on the basis of material, non-public information (“Inside Information”) concerning Clearwire Corp. (“Clearwire”) and Advanced Micro Devices, Inc. (“AMD”) in 2008, earning nearly $1.2 million in profits in the aggregate. RENGAN RAJARATNAM has not yet been arrested on these charges.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Rengan Rajaratnam and his brother shared more than DNA, they also shared a penchant for insider trading. Along with his brother Raj, Rengan Rajaratnam was allegedly at the heart of an insider trading scheme that swept up an unprecedented number of people in its web of corruption, and with his indictment, we are one step closer to closing that chapter.”
FBI Assistant Director-in-Charge George Venizelos said: “Rengan Rajaratnam’s career arc paralleled his brother’s. He followed in Raj’s footsteps by obtaining an MBA from a top-flight business school. He went to work for Raj at Galleon. As alleged in the indictment, Rengan also engaged in the same illegal conduct as Raj. He reaped the benefit of insider information obtained by Raj, and he planned to reciprocate by cultivating his own source of inside information. Now Rengan’s career arc has descended to the same place his brother’s did less than four years ago: defendant.”
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against RENGAN RAJARATNAM.
The following allegations are based on the Indictment filed yesterday and unsealed today in Manhattan federal court, and other court documents:
The Inside Information concerning Clearwire originated from Rajiv Goel, an employee of Intel Corp. (“Intel”). In March 2008, Goel provided Inside Information to his friend Raj Rajaratnam concerning a significant transaction in which Intel would invest approximately $1 billion in Clearwire in exchange for a 10 percent equity position. Raj Rajaratnam, in turn, shared the Inside Information with his brother, RENGAN RAJARATNAM. RENGAN RAJARATNAM and Raj Rajaratnam used this Inside Information to buy Clearwire stock on March 24 and 25, 2008.
After the U.S. stock markets closed on March 25, 2008, a major news organization published an article describing, in part, the proposed Clearwire transaction. Shortly afterward, RAJARATNAM called his brother to alert him to the news report. In that call, RAJARATNAM said, “We’re f***ed man” because the “Clearwire stuff … just hit” the newspaper. RENGAN RAJARATNAM explained that the news article was “short on details . . . they don’t have any of the equity split. But they named . . . Comcast, they named Time Warner, Clearwire, Sprint.” Raj Rajaratnam replied, “O.K., sh*t.” RAJARATNAM then said, “So, I don’t know how much you got in today,” referring to Raj Rajaratnam’s purchases of Clearwire stock that day, “but I think [Clearwire’s share price] is gonna rip [rise sharply] tomorrow.” In fact, Clearwire’s share price did rise sharply the following day in response to the news article, after which RENGAN RAJARATNAM and Raj Rajaratnam made nearly $1.2 million in profits from the Inside Information concerning Clearwire.
The Inside Information concerning AMD originated from Anil Kumar, who was, at the time, a partner of McKinsey & Co. (“McKinsey”), the global management consulting firm. In 2008, AMD hired McKinsey to advise it in relation to a strategic transaction in which AMD would spin off its manufacturing business into a new entity, and the investment authority of Abu Dhabi would invest in the new entity and in AMD itself. On August 15, 2008, Kumar advised Raj Rajaratnam that AMD and the Abu Dhabi investment authority had “shaken hands and said that they’re going ahead with the deal.” Three hours later, Raj Rajaratnam told RENGAN RAJARATNAM, “I just heard that . . . AMD had a handshake with the . . . Arabs. . . . The Arabs to put [in] six billion dollars.” He also told his brother that he had bought AMD shares based on Kumar’s Inside Information about AMD, and that he was “buying two fifty” – meaning, 250,000 shares of AMD – “for you, OK?” RENGAN RAJARATNAM replied, “Alright, thanks a lot man, I appreciate it.” On August 15, 2008, Raj Rajaratnam bought 3 million shares of AMD for a Galleon hedge fund that he managed, and 250,000 shares of AMD for a Galleon hedge fund that RAJARATNAM managed.
Later that day, RENGAN RAJARATNAM and Raj Rajaratnam spoke again about the AMD Inside Information and also about the affirmative efforts that RAJARATNAM was making to cultivate another McKinsey partner (“McKinsey Partner A”) as a source of Inside Information. Specifically, RENGAN RAJARATNAM advised Raj Rajaratnam that he had just finished a meeting with McKinsey Partner A in which McKinsey Partner A “spilled his beans” and “volunteered the information about the investments” in AMD. Raj Rajaratnam said, “[W]hat we wanna do is . . . get him and then have access to, you know, be able to chat with him” about other Inside Information. Raj Rajaratnam said to RENGAN RAJARATNAM, “[H]e is a little dirty, right?” RAJARATNAM responded, “[H]e’s a little dirty.” RAJARATNAM said that when he had asked McKinsey Partner A what other stocks McKinsey Partner A liked, McKinsey Partner A said, “‘You know, the problem is all my best ideas . . . are inside information.’”
RAJARATNAM, 42, of New York, New York, has been charged with one count of conspiracy to commit securities fraud and six counts of securities fraud. Count One, the conspiracy charge, carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Counts Two through Seven, the securities fraud charges, each carry a maximum potential penalty of 20 years in prison and a maximum fine of $5 million.
Raj Rajaratnam was found guilty of conspiracy and securities fraud charges in 2011 and is currently serving an 11-year prison sentence. Rajiv Goel and Anil Kumar both pled guilty pursuant to cooperation agreements and were sentenced to two years of probation in 2012.
Mr. Bharara praised the investigative work of the FBI. He also thanked the SEC. Mr. Bharara noted that the investigation is continuing.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney David B. Massey is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Rajarengan Rajaratnam Indictment
Manhattan Man Sentenced to 90 Months in Prison for Distributing and Possessing Child Pornography Involving Children as Young as TwoRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MARK HEALEY was sentenced today in Manhattan federal court to 90 months in prison for transporting, distributing, and possessing child pornography. HEALEY was convicted of two counts of transporting and distributing child pornography, and two counts of possessing child pornography, after a one-week trial in September 2011. He was sentenced by U.S. District Judge Shira A. Scheindlin.
Manhattan U.S. Attorney Preet Bharara stated: “The exploitation of children through pornography is a vile and disturbing crime. We take our responsibility to protect children very seriously as the prosecution and sentencing of this defendant once again demonstrates.”
According to the Complaint, the Superseding Indictment, evidence presented at trial, and statements made in court:
Between February 2009 and June 2010, HEALEY used a peer-to-peer file-sharing program called GigaTribe to download child pornography from the Internet and to distribute it to others, including multiple videos of the abuse of children as young as approximately two years old. In the course of the investigation, the Federal Bureau of Investigation (“FBI”) seized a computer belonging to HEALEY, which contained numerous videos and images of child pornography. The computer also contained chats that HEALEY had engaged in over the file-sharing program, in which he sought out videos and images of the most violent abuse of the youngest children, or as he wrote online, “the yngr and more abusive the better.” HEALEY also suggested in chats that he had previously abused unidentified children.
In addition to his prison term, HEALEY, 39, was also sentenced to 10 years of supervised release and ordered to pay a $400 special assessment.
Mr. Bharara praised the FBI for its outstanding work in the investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Daniel C. Richenthal is in charge of the prosecution.
The FBI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (212) 384-1000. It is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at (800) 843-5678 or http://www.cybertipline.com.
Manderson Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota man convicted of Assault With a Dangerous Weapon was sentenced on March 15, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Eric Kills Enemy at Night, a/k/a Eric Kills Enemy, age 19, was sentenced to 33 months’ imprisonment and 3 years of supervised release and ordered to pay $100 to the Victim Assistance Fund.
In September 2012, at Manderson, Kills Enemy at Night struck a man in the arm and face with a wooden mop handle, breaking the man’s arm. He pled guilty on December 5, 2012.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Manderson Man Pleads Guilty to Interstate Transportation of Stolen Motor VehicleRead the Press Release
United States Attorney Brendan V. Johnson announced that Clayton J. Fire Thunder, age 38, of Manderson, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 13, 2013 and pled guilty to Interstate Transportation of Stolen Motor Vehicle. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
On January 13, 2012 at White Clay, Nebraska, Fire Thunder stole a pickup truck and led police units on a chase around the Pine Ridge Indian Reservation in South Dakota before being cornered by police. The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Lincoln Man Sentenced for Conspiracy to Distribute and Distribution of Cocaine BaseRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 21, 2013, Timothy M. Felton, age 37 of Lincoln, was sentenced to 12 ½ years, (150 months), in prison for conspiracy to distribute cocaine base, also known as crack cocaine, and two counts of distribution of cocaine base between February of 2007 and April of 2010. Following the prison term, Felton will serve five years on supervised release.
Felton was held responsible for the distribution of approximately 5 ⅔ ounces of cocaine base. In March of 2010, a confidential informant working with the Lincoln/Lancaster County Narcotics Task Force made two purchases of small amounts of cocaine base from Felton.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriffs Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Lancaster Man Charged with Enticing A MinorRead the Press Release
Richard Haines, Jr., 59, of Lancaster, PA, was charged today by indictment with enticing a minor to engage in sexually explicit conduct so that he could take pictures of the conduct and with
possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 130 years with a 15 year mandatory minimum; 5 years up to a lifetime of supervised release; $1,250,000 fine; restitution; forfeiture and $500 special assessment.The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Michael L. Levy and Michelle Rotella.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525KC Real Estate Agent Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., real estate agent was sentenced in federal court today for tax evasion.
Joseph R. Fulgenzi, 54, of Kansas City, was sentenced by U.S. District Judge Greg Kays to three years and 10 months in federal prison without parole. The court also ordered Fulgenzi to pay over $400,000 in restitution.
On Aug. 1, 2012 Fulgenzi pleaded guilty to tax evasion. Fulgenzi admitted that he owed substantial income tax that he avoided reporting. Between 1992 and 2007, according to the plea agreement, Fulgenzi had $672,447 in unreported income. The total criminal computation including taxes, penalties, and interest, totals $402,223.
According to his plea agreement, Fulgenzi has been embroiled in non-filing and non-payment issues dating back to the 1980s. Since that time, IRS civil collections has been involved with Fulgenzi. According to court documents, Fulgenzi repeatedly failed to cooperate and comply with court orders during civil collection efforts. Fulgenzi last voluntarily filed a tax return in 1991 for tax year 1990. Although he filed returns from 1982-1990, he has paid no taxes due and owing since 1982.
Fulgenzi admitted that he used his business and domestic partner to impede the IRS’s collection efforts and conceal his assets. For example, in order to conceal his income and assets, Fulgenzi diverted his real estate commissions and other income (such as proceeds from the sale of a rental property) to his partner, through whose bank account all of Fulgenzi’s personal expenses were funneled. Fulgenzi appears to have spent his money on their party lifestyle and trips, according to the plea agreement. The bulk of Fulgenzi’s income appears to have been spent on their home improvements and car payments.
This case was prosecuted by Assistant U.S. Attorney Roseann Ketchmark. It was investigated by IRS-Criminal Investigation.KC Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing a Raytown, Mo., bank last summer.
Carlos D. Davis, 19, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to six years and six months in federal prison without parole. The court also ordered Davis to pay $1,231 in restitution.
On Oct. 30, 2012, Davis pleaded guilty to robbing US Bank, 9063 E. Gregory in Raytown. Co-defendant Deonte L. Robertson, 22, of Kansas City, Mo., pleaded guilty on Nov. 7, 2012 and awaits sentencing.
Davis and Robertson entered the bank on June 29, 2012, and sat together at chairs in the teller lobby. Davis approached a teller while Robertson, acting as the lookout, remained seated in the lobby. Davis handed the teller three paper bags and a note, directing her to put large bills in a bag. The teller put money in the bag and gave it to Davis, who demanded she also fill another bag. When she told Davis that she didn’t have any more money, he and Robertson fled from the bank.
A police officer who responded to the alarm saw Davis and Robertson a few blocks from the bank, walking down the middle of the street. As the officer approached, the men split and began running in different directions. The officer caught Robertson and later found approximately half of the robbery proceeds, about $990, hidden nearby. Davis was arrested later.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Raytown, Mo., Police Department.Juvenile Justice Probation Officer Arrested for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of a criminal complaint charging Corey A. Coley, Sr. and Albert E. Moore, Jr. with conspiracy to defraud the government with respect to claims. Coley is a Probation Officer for the Florida Department of Juvenile Justice. If convicted on all counts, Coley and Moore each face a maximum penalty of 10 years in federal prison.
According to the criminal complaint, Coley and Moore engaged in a scheme to defraud the government by submitting fraudulent tax returns and using the resulting tax refunds for their own benefit and the benefit of others. Coley allegedly obtained the identities used in the scheme from Florida Department of Juvenile Justice records.
“I am outraged by the allegations of this blatant betrayal of trust, and I want to send a clear message that this type of behavior absolutely will not be tolerated; by close of business today, the employee in question will be terminated,” said Florida Department of Juvenile Justice Secretary Wansley Walters. “There are a number of policies in place regarding access to sensitive youth information, and I hold DJJ employees to standards of excellence. Taking advantage of those who’ve entered the juvenile justice system is shameful. I want to assure the victims, their families and public that we are reevaluating current policies and procedures related to youth information and we are committed to promptly addressing any vulnerabilities discovered through that process. As always, we will work with federal, state and local authorities to ensure that anyone that betrays the public trust will be prosecuted to the fullest extent of the law.”
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Hillsborough County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Sara C. Sweeney.
Justice Department Seeks to Shut Down Alabama Tax PreparerRead the Press Release
The United States has asked a federal court in Montgomery, Ala., to bar Kenya Hendrix Adams from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Adams has repeatedly prepared federal tax returns that understate her clients’ federal tax liabilities. The suit alleges that Adams did so by falsely claiming or inflating tax credits or fabricating deductions.
The suit alleges that the IRS has completed examinations of 315 returns prepared by Adams and that 88 percent of those returns understated the filing taxpayer’s liability. Because Adams prepared almost 2,000 returns over a five year period between 2007 and 2012, the suit alleges that the harm to the U.S. Treasury as a result of her conduct could be in the millions of dollars.
Claiming bogus tax refunds is one of the Internal Revenue Service’s “Dirty Dozen” tax scams . The Justice Department has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters in the past decade. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Kenya Hendrix Adams
Complaint for Permanent Injunction (PDF)
Justice Department Reaches Settlement with Two Colorado Law Enforcement Agencies to Improve Communication with People Who Are Deaf or Hard of HearingRead the Press Release
The Justice Department announced today that it has reached a cooperative settlement agreement with the Arapahoe, Colo., County Sheriff’s Office under the Americans with Disabilities Act (ADA). This agreement is a companion to one reached on March 8, 2013, with the city of Englewood, Colo.
The Justice Department received complaints by individuals who are deaf, the Colorado Association of the Deaf and the Colorado Cross-Disability Coalition that officers for the city of Englewood and the Arapahoe Sheriff’s Office were not providing qualified sign language interpreters and other auxiliary aids and services when needed for effective communication with people who are deaf, including arrestees, victims and witnesses. The department’s complainants had also filed a lawsuit based on the same allegations in federal district court, Lawrence et al. v. City of Englewood, et al. While the department initiated investigations into the allegations against Englewood’s police department and the Arapahoe County Sheriff’s Office, and considered intervening in the private lawsuit, it also reached out to the parties to see if there were grounds for a cooperative resolution. All parties, including city of Englewood’s Police Chief John Collins and Arapahoe County Sheriff Grayson Robinson, expressed a commitment to ensure full compliance with the ADA.
The resulting settlement agreements include some model ways to ensure people who are deaf or hard of hearing are able to communicate effectively with law enforcement. For instance, officers for Englewood and Arapahoe County will use this pictogram to ask whether a deaf or hard of hearing person requests a sign language interpreter: www.justice.gov/opa/images/sign-lang-small.gif.
Once the person expresses a need for a sign language interpreter, Englewood and Arapahoe have agreed to provide one under most circumstances, often within an hour of the request.
“People who are deaf or hard of hearing need to be able to communicate clearly with police and sheriff officers, whether they are crime victims, witnesses, arrestees, detainees, or just members of the public,” said Eve Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “Citizens of the City of Englewood and Arapahoe County should be proud of their leaders. I also have to express gratitude to the Colorado Cross-Disability Coalition and the Colorado Association of the Deaf for their important work – and creative problem-solving-- in this area.”
“Englewood Police Chief John Collins and Arapahoe County Sheriff J. Grayson Robinson deserve our thanks and appreciation for their effort to provide effective models for Colorado’s – and the nation’s – law enforcement communities to work with deaf and hard of hearing citizens,” said U.S. Attorney for the District of Colorado John Walsh. “I strongly encourage law enforcement agencies throughout Colorado to follow their lead and adopt these tried-and-true measures. Doing so is simple, cost-effective, and will enhance law enforcement agencies’ protection of public safety while complying with the Americans with Disabilities Act.”
Under the settlements, the city of Englewood and Arapahoe County will each pay $35,000 to the private plaintiffs. In addition, they will enter into contracts with qualified sign language interpreters to ensure ready availability, train their staff on the ADA, appoint ADA coordinators, post signs indicating the availability of sign language interpreters and other auxiliary aids and services for people who are deaf or hard of hearing, provide text telephones and volume control telephones, modify their handcuffing policies for people who use sign language or hand writing to communicate, stock and provide hearing aid and cochlear implant processor batteries in the detention facility, and adopt policies consistent with the ADA. The private plaintiffs also signed these agreements, which resolved the Department of Justice’s investigations as well as the private lawsuit.
For more information on the ADA and law enforcement, visit www.ada.gov. Those interested in finding out more about these settlements or the obligations of law enforcement under the ADA may also call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may be filed by email to [email protected] .
Related Materials:
American Sign Language sign to indicate whether a sign language interpreter is necessary
Arapahoe Settlement AgreementJoplin Man Sentenced for Bank Fraud Scheme; Targeted Tornado VictimRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for a bank fraud scheme that targeted a woman whose home was destroyed by the May 22, 2011, tornado.
Teddy Lane Lawson, 53, of Joplin, was sentenced by U.S. District Judge Richard E. Dorr to three years and two months in federal prison without parole. The court also ordered Lawson to pay $2,960 in restitution to First State Bank.
On April 18, 2012 Lawson pleaded guilty to 10 counts of bank fraud and one count of aggravated identity theft.
Lawson received permission in June 2011 to enter the property of a woman whose home had been destroyed in the tornado, who is identified as "L.L.," in order to remove scrap metal. While he was on the property, Lawson stole a checkbook belonging to L.L., which contained blank checks.
Between July 5 and 9, 2011, Lawson used checks from the stolen checkbook to purchase merchandise from stores in Missouri, Oklahoma and Kansas. Lawson specifically pleaded guilty to 10 counts that charged him with writing checks in Joplin, Springfield, Mo., and Webb City, Mo. Lawson admitted that he signed L.L.'s name (or a similar name) to 20 checks totaling $2,960.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Secret Service and the Joplin, Mo., Police Department.
Jefferson County Man Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 34-year-old Port Neches, Texas, man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jeremiah Paul Selman pleaded guilty to possession of child pornography today before U.S. District Judge Marcia Crone.According to information presented in court, on Oct. 26, 2011, federal officials executed a search warrant at Selman’s residence in Port Neches, Texas. A computer was seized during the search and found to contain more than 600 images of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct. Selman was indicted by a federal grand jury on Jan. 10, 2013 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Selman faces up to 10 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.Jamestown Nurse arrested, charged with distributing oxycodoneRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury returned a 17 count indictment charging Samilyn Olson, 46, of Jamestown, N.Y., with unlawfully distributing oxycodone, obtaining oxycodone through fraud, forgery and subterfuge and conspiring to do so. The conspiracy and distribution counts each carry a maximum sentence of 20 years in prison and a $1,000,000 fine. The remaining counts each carry a maximum sentence of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that Olson is a former nurse at the Veterans Affairs Community Based Outpatient Clinic, in Jamestown provides medical services to VA patients in the area. On eight occasions between May and September 2010, the defendant stole prescription forms from a nurse practitioner at the clinic, forged the nurse practitioner’s name and wrote prescriptions for oxycodone. The prescriptions were then filled by Olson or others at a local pharmacy in Jamestown, New York.
The defendant made an initial appearance this afternoon before Magistrate Judge J. Jeremiah McCarthy and was released.
The Indictment is the result of an investigation on the part of the Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes, Northeast Field Office, the Veterans Affairs Police Department, under the direction of Chief Michael Messina, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Jacksonville Man Convicted of Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Ocala, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury today found Michael A. Collier (48, Jacksonville) guilty of attempting to entice a child to engage in sexual activity. Collier faces a mandatory minimum penalty of 10 years in federal prison, up to a maximum penalty of life in federal prison. His sentencing hearing has not yet been set. Collier was indicted on October 31, 2012.
According to testimony and evidence presented at trial, Collier replied to an Internet posting that he thought was posted by a 13-year-old girl. After exchanging e-mails, text messages, and having cell phone conversations with the "13-year-old girl," Collier traveled more than an hour, from Orlando to Lake County, in order to have sex with her. Testimony revealed that Collier stopped at a convenience store and purchased condoms, beer, and cigarettes while on the way to meet the child. Unbeknownst to Collier, the individuals that he communicated with were undercover law enforcement officers. When Collier arrived at the home to have sex with the child he was arrested by deputies from the Lake County Sheriff's Office.
This case was investigated by the Lake County Sheriff's Office and the FBI as part of the Central Florida Internet Crimes Against Children Task Force. In addition, this specific operation included members of the Osceola County Sheriff's Office and Citrus County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
It is another case 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 (CEOS), 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Jackson County Woman Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Whisper Montileaux, age 30, of Potato Creek, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 13, 2013 and pled guilty to conspiracy to distribute a controlled substance. The penalty upon conviction is a minimum of 5 up to 40 years’ imprisonment and/or a $5,000,000 fine.
The charge relates to Montileaux conspiring with others to distribute at least 100 kilograms or more of marijuana in South Dakota between 2008 and 2012. The investigation was conducted by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and Bureau of Indian Affairs Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ [email protected]
Hammond, Indiana—The United States Attorney’s Office announced that the following Indictments were returned on March 21, 2013:
Miguel Angel Herrera, 32, address unknown, was charged in an Indictment with distribution of cocaine.These charges were filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Special Assistant United States Attorney Armando Salinas, Jr.
Tareq Al-Hindi, 31, of Orland Park, Illinois, Azzam Al-Hindi, 55, of Blue, Island, Illinois and Hosam Abul-Husn, 67, of Whiting, Indiana were charged in an Indictment with conspiracy to commit mail fraud and mail fraud.These charges were filed as the result of an investigation by the United States Secret Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Randall Stewart.
Tambra Ducker, 24, of Indianapolis, Indiana, was charged in an Indictment with possession with the intent to distribute heroin.These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Indian National Pleads Guilty to Obtaining False Worker Visas and Related OffensesRead the Press Release
CHARLOTTE, N.C. – An Indian national pleaded guilty in U.S. District Court on Wednesday, March 20, 2013, for his role in a conspiracy to violate U.S. laws by filing fraudulent immigration documents and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas and Richard L. Walker, Special Agent in Charge for the Atlanta, Georgia Region of the U.S. Department of Labor’s Office of Inspector General (DOL-OIG), Office of Racketeering and Fraud Investigations join U.S. Attorney Tompkins in making today’s announcement.
Phani Raju Bhima Raju, 41, of Charlotte, pleaded guilty to five federal charges ranging from conspiracy to violate U.S. laws to money laundering conspiracy for his participation in a fraudulent scheme to obtain false H-1B immigration visas for foreign workers. The H-1B visa program allows U.S. employers to temporarily employ foreign workers in designated specialty occupations.
According to filed court documents and yesterday’s plea hearing, beginning in 2006 and through November 2012, Raju executed a fraudulent scheme to defraud the United States by submitting materially false documents to obtain H-1B immigration visas for foreign nationals seeking employment in the U.S. According to filed documents and statements made in court, Raju was the president of iFuturistics, a Delaware company with headquarters in Pineville, N.C. Court records show that Raju and others falsely represented to the U.S. Department of Labor (“DOL”) and the Department of Homeland Security’s U.S. Citizenship and Immigration Services (“USCIS”) that iFuturistics was hiring H-1B visa holders to work directly for the company. Contrary to the statements made on DOL and USCIS forms submitted by iFuturistics, when the applicants were granted H-1B visas they were placed in work locations with various companies throughout the U.S. In fact, as court records show, iFuturistics had entered into lucrative contracts with staffing agencies prior to submitting the fraudulent forms claiming the skilled IT workers would be employed at iFuturistics’ headquarters in Pineville. Court documents show that as a result of Raju’s illegal visa scheme iFuturistics received $13.2 million as payment from staffing companies in the U.S.
As part of his plea agreement, Raju has admitted that he submitted false documentation to DOL and USCIS and that he made materially false statements on the relevant forms in order to obtain approval of the H-1B immigration visas. In addition to filing fraudulent paperwork, Raju and others engaged in an illegal scheme to recruit, solicit, entice and hire individuals outside the U.S. to apply for H-1B visas and to obtain work in the U.S. Court records show that Raju gave the H-1B visa applicants a “cheat sheet” of questions and answers to assist them during their interview process to obtain the H-1B visas.
Court records indicate that Raju and his co-conspirators at times failed to find employment for the H-1B visa workers the company had recruited to work in the U.S. On those occasions, court records indicate, these workers were “benched” in the U.S. while waiting for another job assignment. While they were benched, and contrary to the salary claims made in the application forms, these workers received little or no pay from iFuturistics. On one occasion, court documents show, a foreign national H-1B visa holder had paid $2,500 to iFuturistics as a security deposit for processing her H-1B visa. According to the contract between iFuturistics and the employee, the employee was promised an annual salary of $60,000 and had agreed to the company’s request to market her services for employment throughout the U.S. In the end, iFuturistics never provided the worker with any work assignments and failed to pay her any wages, court records show.
Filed documents also indicate that in November 2009, Raju and others attempted to hide their fraudulent activities from law enforcement and immigration agents during a scheduled inspection visit of the company’s Pineville offices. In anticipation of the visit, court documents show that Raju and others had set up work stations, moved in furniture and recruited several persons to pretend to be iFuturistics workers for the duration of the inspection visit, when, in fact, the office space prior to the site visit had been empty and unoccupied. When law enforcement and immigration agents returned to the company’s offices a month after the site visit, the office space was dark and unoccupied, as it had been prior to the planned inspection.
Raju was charged with and pleaded guilty to one count of conspiracy to violate United States laws, which carries a maximum prison term of five years and a $250,000 fine; one count of presenting fraudulent immigration documents, which carries a maximum prison term of 10 years and a $250,000 fine; one count of hiring at least 10 unauthorized aliens within a one year period, which carries a maximum prison term of five years and a $250,000 fine; one count of hiring recruiting, and referring for a fee for employment an unauthorized alien, which carries a maximum prison term of six months and a $100,000 fine; and one count of money laundering conspiracy, which carries a maximum term of 20 years in prison and a fine not to exceed the value of the funds involved. In addition, Raju has agreed to pay restitution to any victims harmed by his fraudulent conduct. The final restitution amount will be determined by the Court.
Raju has been in local federal custody since December 2012. A sentencing date has not been set.
The investigation was handled by ICE-HIS and DOL. The prosecution is being handled by Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte.
Gretna Brothers Sentenced to Five Years for Their Role in Convenience Store ArsonRead the Press Release
WAEL HAMMAD, aged 38, and ALAA HAMMAD, age 31, both residents of Gretna, Louisiana, were sentenced today by U. S. District Judge Eldon E. Fallon for their involvement in the December 2011 arson of Fat City Discount, their convenience store located in Metairie, Louisiana, announced U. S. Attorney Dana Boente. Both men plead guilty on October 4, 2012, to conspiring to and destroying by fire their convenience store. Judge Fallon sentenced both defendants to five years imprisonment, one year of supervised release following imprisonment, and ordered $94,333.52 in restitution to their insurance company.
According to court records, the HAMMADs, faked an accidental fire in the kitchen area of their store and then filed an insurance claim for damages to their merchandise.
This case was investigated jointly by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Jefferson Parish Fire Department and the Jefferson Parish Sherriff’s Office. The case was prosecuted by Tony Gordon Sanders of the Violent Crimes Unit.
Four Individuals Indicted for Health Care FraudRead the Press Release
SAN JUAN, P.R. – On March 14, 2013, a Federal grand jury returned a fourteen count-indictment against four individuals for conspiracy to commit health care fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI).
According to the indictment, from on or about January 2007, until on or about March 2010, Olympic Medical Equipment (OME), a Durable Medical Equipment (DME) company authorized to do business in Arecibo, Puerto Rico, submitted and/or caused to be submitted at least one thousand one hundred and forty nine (1,149) false and fraudulent claims to Medicare totaling approximately one million three hundred thirty seven-thousand twenty eight dollars and ninety eight cents ($1,337,028.98) for DME that was not medically necessary, causing Medicare to disburse approximately seven hundred forty seven thousand four hundred sixty one dollars and 31 cents ($747,461.31) for such claims.
Defendant Jaime Sepúlveda-Concepción was the president of Olympic Medical Equipment. He owned and managed OME controlling the business activities to include submitting DME claims to Medicare on behalf of OME. He controlled Medicare payments received by OME and paid kickbacks to defendant Mario Reyes-Cruz based on the type of equipment ordered in the prescriptions and/or medical orders. Defendant Reyes-Cruz was an independent sales coordinator that brought to Sepúlveda-Concepción DME orders for Medicare beneficiaries. Defendant Edgar Cancel-Zapata was a physician licensed to practice medicine in Puerto Rico. Cancel-Zapata signed and completed for OME false: progress notes, prescriptions and/or medical orders, CMNs, and/or Statements of Ordering Physician, for Medicare beneficiaries that were billed by OME. Cancel-Zapata was paid kickbacks by Reyes-Cruz on behalf of OME, in exchange for signing and completing the false: progress notes, prescriptions and/or medical orders, CMNs, and/or Statements of Ordering Physician for OME.
Defendant Sonia Guzmàn-Silvagnoli was a physician licensed to practice medicine in Puerto Rico. Guzmàn-Silvagnoli signed and completed for OME false: progress notes, prescriptions and/or medical orders, CMNs, and/or Statements of Ordering Physician, for Medicare beneficiaries that were billed by OME. She was paid kickbacks by Reyes-Cruz on behalf of OME, in exchange for signing and completing the false: progress notes, prescriptions and/or medical orders, CMNs, and/or Statements of Ordering Physician for OME.
The object of the unlawful conspiracy was that defendants Jaime Sepúlveda-Concepción, Mario Reyes-Cruz, and Edgar Cancel-Zapata unlawfully enriched themselves submitting and/or causing to be submitted false and fraudulent claims to Medicare and/or by falsely and fraudulently representing that the medical conditions of the Medicare beneficiaries were such that DME, including spinal orthosis: TLSO and LSO; wheelchair options/accessories; therapeutic shoes for persons with diabetes; hospital beds and accessories; pressure reducing support surfaces-group 1; wheelchair seating; knee orthosis; power mobility devices; heating pads and heat lamps; powered pressure-reducing air mattress; separate seat lift mechanism; and elbow orthosis, were medically necessary when in fact the defendants well knew the beneficiaries were never examined and did not suffer from such medical conditions and did not qualify to receive the DME.
“As part of the nation’s health care system, Medicare serves vulnerable populations,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds which are destined for our elderly population, in order to enrich themselves.”“We are proud to be a part of the federal team that brought these defendants to justice for defrauding the Medicare program and exploiting the elderly," said Thomas O'Donnell, Special Agent in Charge of the Office of Inspector General's New York Regional Office which also covers Puerto Rico. "Arresting owners and providers, freezing their assets and prosecuting them to the fullest extent possible, are some of the tools that the federal government has available, and will be utilized to remove these individuals from participating in the Medicare program.”
“Health Care fraud is a priority for the FBI and we will continue to attack it vigorously, in partnership with the Office of Inspector General (OIG) U.S. Department of Health and Human Services (HHS), and the United States Attorney's Office (USAO), District of Puerto Rico. Consequences of Health Care Fraud include higher health insurance costs paid for by the taxpayers,” stated Carlos Cases, Special Agent in Charge of the Federal Bureau of Investigation, San Juan Field Office.
The case is being prosecuted by Assistant U.S. Attorney Héctor Ramírez-Carbó, Health Care Fraud Coordinator and Special Assistant U.S. Attorney Wallace A. Bustelo. If found guilty, the defendants could face a possible sentence of (10) years in prison for the Health Care Fraud offense and a fine of up to $250,000. A criminal indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Former Shipping Executive Indicted for Role in Price-Fixing <br /> Conspiracy Involving Coastal Freight Services Between the <br /> Continental United States and Puerto RicoRead the Press Release
A federal grand jury in San Juan, Puerto Rico, has returned an indictment against Thomas Farmer, a former executive of Jacksonville, Fla.-based Crowley Liner Services, for participating in a conspiracy to fix rates and surcharges for freight transported by water between the continental United States and Puerto Rico, the Department of Justice announced today.The indictment, filed today in the U.S. District Court in San Juan, charges Farmer, the former vice president of price and yield management of Crowley, with conspiring with co-conspirators to suppress and eliminate competition by agreeing to fix rates and surcharges for Puerto Rico freight services from at least as early as mid-2005 until at least April 2008.
Crowley transports a variety of cargo shipments, such as heavy equipment, perishable food items, medicines and consumer goods, on scheduled ocean voyages between the continental United States and Puerto Rico.
The indictment alleges, among other things, that Farmer and co-conspirators carried out the conspiracy by attending meetings and engaging in conversations and communications in the continental United States and Puerto Rico to fix, stabilize and maintain rates and surcharges for Puerto Rico freight services; to allocate customers of Puerto Rico freight services between and among the conspirators; and to rig bids submitted to customers of Puerto Rico freight services.
“Today’s indictment charges this executive with participating in a price-fixing conspiracy that affected the cost of shipping many consumer goods to Puerto Rico,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division will continue to vigorously pursue individuals who engage in anticompetitive behavior.”
Farmer is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.As a result of this ongoing investigation, three companies, including Crowley, and six individuals have pleaded guilty or been convicted at trial. Five of the individuals and the three companies have been ordered to serve sentences ranging from seven months to four years in prison and to pay more than $46 million in criminal fines. The sixth individual, Frank Peake, was convicted at trial in January 2013 and is currently scheduled to be sentenced on May 31, 2013.
This case is part of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the coastal water freight transportation industry, which is being conducted by the Antitrust Division’s National Criminal Enforcement Section; the Baltimore Resident Agency of the Department of Defense’s Office of the Inspector General, Defense Criminal Investigative Service (DCIS); the Miami Field Office of the Department of Transportation’s Office of Inspector General; and the Jacksonville Field Office of the FBI. Anyone with information concerning anticompetitive conduct in the coastal water freight transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.htm or contact DCIS’s Baltimore Resident Agency at 410-347-1620.Former Orleans Parish Deputy, Gerard J. Hoffman, Jr., Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
GERARD J. HOFFMAN, JR., 59, a resident of Mandeville, Louisiana, pled guilty today before U.S. District Judge Jane Triche Milazzo to conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente.
According to the factual basis, HOFFMAN, the former head of the maintenance department at the Orleans Parish Sheriff’s Office (“OPSO”), began receiving things of value from a contractor, identified as Businessman B, in exchange for a rigged bidding system employed to steer OPSO work to Businessman B. In particular, from 2007 through 2011, Businessman B would submit bids for OPSO work in the name of his respective company but, with the knowledge and participation of, among others, HOFFMAN, would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from Businessman B and, consequently, the OPSO work would be awarded, with HOFFMAN’s participation and knowledge, to Businessman B.
In exchange for this rigged bidding process, according to court documents, HOFFMAN received several things of value from Businessman B. For example, from 2007 through 2011, HOFFMAN received a trailer, a storage container, and free maintenance and construction work at a house owned by HOFFMAN, all at no cost to him. In total, HOFFMAN received at least $5,000, but less than $10,000 in things of value from Businessman B in exchange for HOFFMAN’s official acts at the OPSO.
HOFFMAN faces a maximum penalty of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment. Sentencing has been scheduled for June 20, 2013.
(Download Factual Basis )
Former Marine Sentenced to Ten Years for Child Exploitation CrimeRead the Press Release
TALLAHASSEE, FLORIDA – Today, Kevin Lee Butler, 23, of Quincy, Florida, was sentenced to ten years in federal prison for using the internet in an attempt to entice a minor to engage in sexual activity. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
In October 2011, Butler replied to an internet ad posted as part of an undercover investigation conducted by the North Florida Internet Crimes Against Children (“ICAC”) Task Force. The ad purported to be from a “single mom” of a 12 year-old girl. Butler exchanged a series of emails with the undercover agent who was posing as the child’s mother. During the course of the exchanges, Butler made arrangements to travel to Tallahassee for the purpose of having sex with the 12 year old. When he arrived at the meeting place, he was arrested.
Butler pled guilty to this offense in January. As part of Butler’s sentence, United States District Judge Robert L. Hinkle also imposed a life time term of supervised release, with the conditions that Butler attend sex offender treatment, that he register as a sex offender, and that his computers, and other electronic devices be subject to search by his probation officer and by law enforcement.
United States Attorney Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida ICAC, particularly Homeland Security Investigations, the Florida Department of Law Enforcement, the United States Marshals Service, and the Tallahassee Police Department. Ms. Marsh said, “The protection of the children in our community remains a priority of the Department of Justice, and great praise is deserved by all of our law enforcement partners who contributed to the success of this investigation.”
The case was prosecuted by Assistant United States Attorney Herbert Lindsey.
Former Highland Park Police Officer Pleads Guilty to Extortion Conspiracy to Protect A Cocaine ShipmentRead the Press Release
A Highland Park Police officer pleaded guilty today to conspiring with three other police officers to commit extortion and protect a shipment of cocaine, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by FBI Special Agent in Charge Robert D. Foley, III.
During a hearing before U.S. District Judge Avern Cohn, Craig Clayton, 55, of Highland Park, Michigan, admitted that in late 2012 and early 2013, he agreed with three other Highland Park police officers to take money in exchange for protecting a four-kilogram shipment of cocaine. Clayton admitted that on January 23, 2013, he drove a car containing what he believed to be two kilograms of cocaine. Clayton brought his police badge and gun to protect the shipment. Another Highland Park police officer drove a separate car containing what he believed were two additional kilograms of cocaine. Later, Clayton accepted $1,500 in cash from an FBI informant for his work in delivering and protecting the drug shipment.
United States Attorney McQuade said, "Police officers who take bribes have no place in law enforcement. They will be prosecuted for violating their duties to serve the public.”
FBI Special Agent in Charge Foley stated, “Police officers who swear an oath to serve and protect are held to the highest standards of ethics and integrity. The FBI is committed to ensuring those standards are maintained, and in cases of abuse, will pursue and prosecute those responsible."Based on his guilty plea and felony conviction for conspiring to commit extortion, Clayton is facing a maximum of twenty years in prison and a fine of up to $250,000.
The case was investigated by agents of the FBI. It is being prosecuted by Assistant United States Attorney David A. Gardey.Former Bookkeeper of East Bay Real Estate Investment Company Sentenced to Prison for Embezzlement and Tax Evasion SchemeRead the Press Release
OAKLAND - Kristie Gale Meyer was sentenced yesterday to 41 months in prison and ordered to pay $1,332,329.35 in restitution to the victims and $584,092 to the IRS, arising from a multi-year scheme to embezzle funds from her employer, United States Attorney Melinda Haag and IRS-CI Special Agent in Charge Jose M. Martinez announced.
Meyer pleaded guilty on November 21, 2012, to mail fraud and tax evasion. According to the plea agreement, Meyer admitted to engaging in a multi-year scheme to defraud her employer, Ansil Realty & Investment Co. and its partner, KLP Properties, Inc. Meyer worked as Ansil’s secretary, office manager, and bookkeeper. She stole money by several means, including paying her credit card bills with checks drawn on the companies’ bank accounts and using those funds for her personal benefit, by taking cash advances, and by making payments to online gambling websites. Meyer also wrote checks drawn on the companies’ bank accounts and made deposits directly into her personal bank account. Meyer took steps to conceal her fraud by making false accounting entries in the companies’ accounting system to make her fraudulent transactions appear to be legitimate business expenditures, and by destroying copies of the fraudulent checks.
For the tax years 2006, 2007, and 2008, Meyer also willfully attempted to evade a large part of the income tax due and owing by filing false returns. Meyer knew that her taxable income for those years was substantially in excess of the amounts stated on her returns.
Meyer, 56, of Woodland Hills, CA, was indicted by a federal grand jury on August 2, 2010, on ten counts of wire fraud and three counts of tax evasion.
The sentence was handed down by U.S. District Court Judge Phyllis J. Hamilton following a guilty plea on one count of mail fraud in violation of 18 U.S.C. § 1341 and one count of tax evasion in violation of 26 U.S.C. § 7201. Judge Hamilton also sentenced the defendant to a three year period of supervised release, along with an order forfeiting $2,013,149.09.
Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of a year-long investigation by the Internal Revenue Service, Criminal Investigation.
Florida Man Sentenced for Role in $30 Million Telemarketing Scam That Victimized over 22,000 PeopleRead the Press Release
Christopher J. Gilkey, 31, formerly of Syracuse, NY, was sentenced to 27 months in prison, 3 years of supervised release, and was ordered to pay $17,976 in restitution, a $500 fine, and a $100 special assessment, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Gilkey had previously plead guilty to a charge of conspiracy to commit mail and wire fraud for his role in a telemarketing scam operating under the names Universal Marketing Solutions and Creative Vacation Solutions. Gilkey also pleaded guilty to an Information charging conspiracy to commit mail fraud for his role in a similar telemarketing scam that operated under the name International Resort Solutions.
Gilkey admitted that he, along with many others, were involved in a telemarketing scam that operated under the names Universal Marketing Solutions and Creative Vacation Solutions. The scam companies, which operated in Florida and bilked over 22,000 victims of $30 million dollars, victimized consumers in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in twenty eight (28) of the thirty eight (38) counties comprising the Southern District of Illinois. Gilkey admitted that he was employed by a Universal Marketing Solutions and Creative Vacation Solutions franchise office as a telemarketer.
Beginning in October 2007 and continuing through at least January 2010, telemarketers for Universal Marketing Solutions and Creative Vacation Solutions placed cold calls to timeshare owners. During the calls, the telemarketers falsely represented that their company had actual buyers for the owners’ timeshare property. Gilkey and others solicited advanced fees of up to several thousand dollars from each victim in purported closing costs – fees they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within the next 60 to 90 days. Despite collecting fees from 22,000 victims, not a single timeshare unit was ever sold. Gilkey and his co-conspirators simply pocketed the closing costs.
Approximately twenty-nine others have been charged in connection with the Creative Vacation Solutions telemarketing scam. The company’s former chief executive, Jennifer Kirk, pleaded guilty to a criminal Information on June 30, 2011. She was sentenced on January 9, 2012, to over 16 years in prison and five years’ supervised release. Approximately twenty others have also been sentenced, receiving prison terms that range from 1 to 14 years.
Gilkey also admitted that after leaving Creative Vacation Solutions he went to work for a company called International Resort Solutions, LLC, another fraudulent timeshare resale operation with offices in Lake Worth and West Palm Beach, Florida. International Resort Solutions used the same fraudulent business model as Universal Marketing Solutions and Creative Vacation Solutions, and Gilkey was recruited to work for the company by Jeffrey Fields, another former employee of Universal Marketing Solutions and Creative Vacation Solutions. In July 2012, Fields was sentenced to 101 months in prison for his role in fraudulent timeshare resale operations.
These prosecutions follow an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The prosecution of the case was handled by Special Assistant U.S. Attorney Katherine Lewis, and Assistant U.S. Attorneys Nathan Stump and Bruce Reppert.
Fifteen Arrested Today on Federal and State Drug and Firearm ChargesRead the Press Release
BOSTON – Fifteen men from the North Shore, primarily Lynn and Revere, were charged today in federal and state court with various drug trafficking and firearm offenses.
A total of 15 individuals were arrested early this morning. Nine have been charged in federal indictments on drug trafficking and firearm offenses. Five have been charged by the Suffolk District Attorney’s Office and one individual has been charged by the Essex District Attorney’s Office. The charges are a result of a coordinated, joint federal and state investigation into drug trafficking and firearm possession in the North Shore.
The following individuals were arrested on federal charges today:
- Michael Johnson, a/k/a Juni, a/k/a Junebug, 28, of Revere, conspiracy and possession with intent to distribute and distribution of cocaine base;
- Kenny Bailey, a/k/a Bless, 22, of New Bedford, conspiracy and possession with intent to distribute and distribution of cocaine base;
- Freddy Dunbar, a/k/a Fox, 26, of Revere, conspiracy and possession with intent to distribute and distribution of cocaine base;
- Winford McRae, a/k/a E, 38, of Revere, possession with intent to distribute and distribution of cocaine base;
- David Batista, 37, of Lynn, conspiracy and possession with intent to distribute and distribution of heroin;
- Henry Mercado, a/k/a Chapo, 35, of Lynn, conspiracy and possession with intent to distribute and distribution of cocaine base;
- Manuel Rivera, 29, of Lynn, felon in possession of a firearm and ammunition;
- Gilberto Echevarria, a/k/a/ Roberto Echevarria, a/k/a Alberto Echevarria, 40, of Lynn, felon in possession of a firearm and ammunition and distribution of heroin; and
- Jermaine Rucker, 29, of Lynn, charged via complaint with conspiring to distribute crack cocaine.
The following individuals were arrested on state charges in Suffolk County today:
- Quinnelle Wheeler (charges in Suffolk and Essex Counties)
- Kevin Sanchez
- Sigfredo Sanchez
- Sulayman Abdul-Shafi
- Damien Hutchinson
The following individual was arrested on state charges in Essex County:
- Javier Santiago-Rosado
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division; Eugenia A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Commissioner Luis S. Spencer of the Massachusetts Department of Corrections; Sherriff Frank G. Cousins, Jr. of the Essex Sherriff’s Office; Middlesex District Attorney Gerard T. Leone; Essex District Attorney Jonathan Blodgett; Chief Kevin F. Coppinger of the Lynn Police Department; and Chief Joseph Cafarelli of the Revere Police Department, made the announcement today.
The case was investigated by the Federal Bureau of Investigation’s North Shore Gang Task Force and the Bureau of Alcohol, Tobacco, Firearms & Explosives Boston Field Division. The federal cases are being prosecuted by Assistant United States Attorneys in Ortiz=s Organized Crime and Gang Unit. The state defendants will be prosecuted by District Attorney Leone and Blodgett’s Office.
The charges contained in the indictments and complaints are accusations, the defendants are presumed innocent unless and until proven guilty.
For inquiries related to the state defendants, please contact Stephanie Chelf Guyotte, Communications Director, Middlesex District Attorney’s Office at (781) 897-8325 or the Essex District Attorney’s Office at (978) 745-6610 ext. 5079.
Eagle Butte Man Sentenced for Sexual Assault and Sexual Abuse ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of one count of Sexual Assault of a Minor and one count of Sexual Abuse of a Person Incapable of Consenting, was sentenced on March 18, 2013 by U.S. District Judge Roberto A. Lange.
Patrick Brown Thunder, age 31, was sentenced to 240 months in custody, 5 years of supervised release, and a $200 Special Assessment that goes to the Victim Assistance Fund.
The convictions were the result of two different incidents—one that occurred in April 2006 and the other in March of 2008—near Dupree, South Dakota. Both incidents involved Brown Thunder sexually assaulting young females under the age of 16.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Brown Thunder was remanded to the custody of the U.S. Marshal to begin serving his sentence.
Disbarred Lawyer Sentenced for Corrupt Real Estate TransactionsRead the Press Release
Defendant Stole Money From Escrow Account
ATLANTA – Neal Landers, 46, of Duluth, Georgia, was sentenced today to two years, three months in prison, for using funds taken from real estate transactions he oversaw for his personal use.
“Landers violated the law and the trust of his clients when he used his firm’s escrow account as his own personal piggy bank,” said United States Attorney Sally Quillian Yates.
“The FBI worked diligently in building a solid criminal investigation in this matter and hopes that those victimized by Mr. Landers’ egregious breach of trust can take some solace in today’s sentencing,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.
According to United States Attorney Yates, the charges, and other information presented in court, beginning in 2007, Landers exploited his position as a real estate closing attorney by misappropriating the funds from real estate closings. Specifically, Landers received money transfers into his escrow account from several real estate closings but did not distribute them as required. He deliberately delayed paying out the funds for weeks and sometimes months rather than promptly disbursing the funds for the recently closed properties. Instead, Landers would use those funds to pay out the parties from previously completed transactions. He also transferred funds, in amounts that far exceeded any closing fees and/or costs, from his escrow account to his business checking account. He then used that money to pay various personal expenses.
United States District Judge Thomas W. Thrash, Jr. sentenced Landers to two years, three months in prison, to be followed by three years of supervised release. He was also ordered to pay more than $850,000 in restitution.
The Georgia Bar disbarred Landers in 2008.
This case was investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Crow Creek Man Sentenced for Conspiracy and Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Crow Creek, South Dakota man convicted of Conspiracy and Distribution of a Controlled Substance was sentenced on March 19, 2013 by U.S. District Judge Roberto A. Lange.
Royce Kirkie, age 35, was sentenced, on each count, to 37 months of imprisonment and 2 years of supervised release, with the sentences to run concurrently. Kirkie is to also pay $200 to the Victim Assistance Fund.
Kirkie was indicted for the above charges by a federal grand jury on July 18, 2012. The conspiracy charge stems from incidents occurring between February 13, 2011 and April 20, 2011 in Buffalo County, South Dakota in which Kirkie combined and conspired with another Defendant to distribute and possess with intent to distribute marijuana. The Distribution of a Controlled Substance charge stems from an incident on April 13, 2011 when Kirkie distributed marijuana.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Kirkie was immediately turned over to the custody of the U.S. Marshal.
Crawford County Man Sentenced to Nearly Ten Years in Prison on Methamphetamine ConspiracyRead the Press Release
On March 21, 2013, Michael G. Yankey, 49, of Annapolis, IL, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Yankey, who had previously pled guilty to the methamphetamine charge, was sentenced to 115 months in prison, followed by 4 years of supervised release, and fined $300. The offense occurred between May 2011 and April 2012, in Williamson, Randolph, Jackson, and Crawford Counties. Evidence at the plea and sentencing hearings established that Yankey was involved with others in the manufacture of methamphetamine. During the conspiracy, Yankey participated in numerous methamphetamine “cooks” at residences located in Randolph, Williamson, and Crawford Counties. Yankey also traveled with others to various towns in order to obtain pseudoephedrine and matches for the purpose of manufacturing methamphetamine.
The investigation was conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Crawford County Sheriff’s Office, Murphysboro Police Department, Robinson Police Department and Drug Enforcement Administration. The Montgomery County Sheriff’s Office also assisted in the investigation.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.