Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 21 March 2013
Chicopee Man Charged for Sexually Exploiting A ChildRead the Press Release
BOSTON – A Chicopee man and soccer coach was arrested this morning on sexual exploitation of children charges.
Michael DuPont, 36 formerly of Westfield and most recently from Chicopee, was charged by criminal complaint following a search at his residence early this morning. According to the criminal complaint affidavit, on Dec. 26, 2012, Vermont State Police were contacted by a “Minor A” victim’s mother, who reported that on Dec. 19, 2012, she inadvertently discovered inappropriate email correspondence between her minor child and another individual. According to the affidavit, agents met with Minor A who told them that in October 2012, she was contacted by an individual named “Mike” in a chatroom who indicated that he was a 37-year-old soccer coach in Massachusetts. Minor A told “Mike” that she was 14-years-old. It is alleged that Minor A also communicated at times with “Mike” via webcam when she was asked to “put on a show” over the webcam for him. It was later determined by authorities that “Mike” was identified as Dupont.
According to the complaint affidavit, after being advised of his Miranda rights, Mr. Dupont admitted that he has received explicit photos of at least five different girls over the Internet including Minor A and that he had asked Minor A to display herself nude over the webcam. He also admitted that he knew that Minor A was 14 or 15 years old.
If convicted, Dupont faces a mandatory minimum of 15 years and maximum of 30 years in prison, to be followed by a mandatory minimum of five years and maximum life term of supervised release.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Chief John R. Ferraro, Jr. of the Chicopee Police Department made the announcement today. The case is being prosecuted by Assistant United States Attorney Steven Breslow of Ortiz’s Springfield Branch Office.
The charges contained in the complaint are accusations, and the defendant is presumed innocent unless and until proven guilty.
Chemung county man sentenced for possessing child pornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Thomas Mehegan, 62, of Elmira, N.Y., who was convicted of possession of child pornography, was sentenced to 72 months in and 12 years supervised release by U.S. District Judge David G. Larimer. Mehegan will also have to register as a sexual offender.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Mehegan was identified during a New York State Police online child exploitation investigation. Troopers executed a search warrant at the defendant's Elmira address in 2010 and seized several digital computers and hard drives which contained child pornography. Police then contacted the Elmira Office of the Federal Bureau of Investigation which continued the investigation.
During the investigation, law enforcement learned that, in addition to searching for and downloading images of child pornography, Mehegan also secreted a hidden camera in his home with the intent to surreptitiously record his adult step-daughter breast feeding her infant child. The defendant was convicted of unlawful surveillance in Chemung County for this conduct in 2010 and was recently released from state prison before being taken into federal custody. A forensic examination of his computers located over 13,000 images of child pornography. Some of the child pornography depicted violence against children as young as three years old.
The sentencing was the culmination of an investigation on the part of Special Agents of Federal Bureau of Investigation, Elmira Resident Office, under the direction of Special Agent in Charge Christopher M. Piehota, and Troopers from the New York State Police under the command of Superintendent, Joseph A. D'Amico.
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.Chambersburg Area School District Teacher Arrested on Alleged Sexual Exploitation of Minors ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeffrey Schmutzler, of Fayettesville, Pennsylvania, was arrested today on charges of distribution and receipt of material involving the sexual exploitation of minors alleged in a Criminal Complaint filed in federal court today.
Chambersburg school officials were notified of the arrest.
Schmutzler is scheduled to appear before Chief Magistrate Judge Martin C. Carlson at 4:00pm today in the federal courthouse in Harrisburg.
U.S. Attorney Smith requests that anyone with information related to this matter please contact United States Postal Inspector Michael Corricelli at 717-257-5581.
The case is being investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s(ICE) Homeland Security Investigations(HSI) and the Pennsylvania State Police. The prosecutor assigned to the case is Assistant United States Attorney Daryl F. Bloom.
****
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.Calexico Resident Sentenced to 216 Months in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Laura E. Duffy announced that Alejandro Avilla-Soto was sentenced on Monday, March 11, 2013 before the Honorable Judge Roger T. Benitez, United States District Court Judge to serve 216 months in federal prison based on his guilty plea to conspiracy to distribute 50 grams of methamphetamine, a Schedule II Controlled Substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
In his guilty plea, Avilla-Soto admitted to engaging in a conspiracy to distribute methamphetamine from his residence in Calexico, CA. According to court documents, the defendant’s source of supply fronted the methamphetamine and allowed the defendant to pay for a portion of the drugs and the rest after it was sold.
The defendant entered his guilty plea on July 2, 2012, and has been in custody since his arrest by FBI agents on January 20, 2012.
This case is the result of an investigation conducted by the FBI Imperial County Safe Streets Task Force, a group of federal, state, and local law enforcement agents led by the FBI, investigating narcotics distribution and gang investigations.
DEFENDANT Case Number: 12CR0542BEN Alejandro Avila-Soto SUMMARY OF CHARGESTitle 21, United States Code, Sections 841(a)(1) and 846 – Conspiracy to distribute a controlled substance (Methamphetamine)
INVESTIGATING AGENCIESFederal Bureau of Investigation
United States Border Patrol
Immigrations and Customs Enforcement’s Homeland Security InvestigationsBuffalo Man Convicted at Trial of a Gun ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jason Gladden, 26, of Buffalo, N.Y., was convicted of unlawfully possessing a firearm following a jury trial before U.S. District Judge Thomas J. McAvoy. The charge carries a maximum sentence of 10 years in prison and a $250,000 fine.
According to Assistant U.S. Attorneys Michael L. McCabe and John M. Alsup, who handled the prosecution of the case, during the trial the government presented testimony that on October 6, 2010, a Buffalo Police Department Detective along with New York State Parole officers and United States Marshals located the defendant at 102 Freund Avenue in Buffalo. Gladden was on state parole at the time, and had absconded to this address. In the house, officers located a 12 gauge shotgun which the defendant claimed he possessed for home protection. Gladden was prohibited under federal law from possessing the firearm due to his prior felony conviction.
The conviction is the culmination of an investigation on the part of the New York State Parole Division, under the direction of Commissioner Brian Fischer, United States Marshal Service Violent Felon Fugitive Task Force, under the direction of Marshal Charles Salina, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.Sentencing is scheduled for July 8, 2013 at 9:00 a.m. before Judge McAvoy.
Brazilian Husband and Wife Sentenced in Florida for Alien SmugglingRead the Press Release
Brazilian nationals Juliana Rose Tome-Froes and her husband, Fabio Rodrigues Froes, were sentenced today in Miami to 60 months and 46 months in prison, respectively, for smuggling undocumented migrants to the United States for profit, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Tome-Froes, 36, and Froes, 49, were sentenced by U.S. District Court Judge Federico A. Moreno in the Southern District of Florida. In addition to the prison sentences, Judge Moreno ordered each defendant to forfeit $150,000 in illegal proceeds.
On Jan. 16, 2013, Tome-Froes and Froes pleaded guilty to charges arising from their involvement in human smuggling. According to court documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States. According to court documents, the defendants knew the undocumented migrants did not have authorization to enter the United States.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida. The investigation was conducted by ICE Homeland Security Investigations in Miami.
Brazilian Husband and Wife Sentenced in Florida for Alien SmugglingRead the Press Release
Brazilian nationals Juliana Rose Tome-Froes and her husband, Fabio Rodrigues Froes, were sentenced today in Miami to 60 months and 46 months in prison, respectively, for smuggling undocumented migrants to the United States for profit, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Tome-Froes, 36, and Froes, 49, were sentenced by U.S. District Court Judge Federico A. Moreno in the Southern District of Florida. In addition to the prison sentences, Judge Moreno ordered each defendant to forfeit $150,000 in illegal proceeds.
On Jan. 16, 2013, Tome-Froes and Froes pleaded guilty to charges arising from their involvement in human smuggling. According to court documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States. According to court documents, the defendants knew the undocumented migrants did not have authorization to enter the United States.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida. The investigation was conducted by ICE Homeland Security Investigations in Miami.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bloomington Man Sentenced to 6 ½ Years in Prison for Failure to Register as Sex OffenderRead the Press Release
Defendant Repeatedly Failed to Register Despite Prior Convictions for Four Brutal Rapes
Peoria, Ill. – A Bloomington, Ill., man, convicted of four rapes in Cook County, Ill., who failed to register as a sex offender in Illinois, was sentenced this week to a sentence above the guideline range. Senior U.S. District Judge Michael M. Mihm sentenced Roy Anthony Baker, 51, on Monday, Mar. 18, 2013, to a term of 77 months (six years, five months) in federal prison for violation of the Sex Offender Registration and Notification Act (SORNA.) Baker was also ordered to remain on federal supervised release for the remainder of his life following completion of his prison sentence.
Baker pled guilty to the offense on May 31, 2012. While on bond in McLean County, Ill., from November 2011 to Feb. 13, 2012, Baker traveled from Illinois to Michigan to live with a single mother he met on the Internet. At the time, Baker was on bond pending sentencing for his second violation in McLean County for violation of the Sex Offender Registration requirement.
According to court documents, Baker was released from the Illinois Department of Corrections in November 2000, after serving two concurrent sentences of 28 years in prison for rapes committed in January and February 1987, less than three months after his release from prison for two rape convictions in 1983.
The government, represented by Assistant U.S. Attorney Kirk D. Schoenbein, sought and was granted a sentence greater than the guideline range of 33-41 months as determined by the U.S. Sentencing Commission, for the offense. Assistant U.S. Attorney Schoenbein argued that the sentencing guidelines used to determine Baker’s case criminal history calculation under-represented the seriousness of his criminal history and the likelihood of his continued criminal conduct.
The charge against Baker was investigated by the U.S. Marshals Service in the Central District of Illinois and the Bloomington Police Department.
The cases were 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 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.
Baltimore Felon Exiled to over 19 Years in Prison in Murder-For-Hire SchemeRead the Press Release
Three-Time Felon Caught in FBI StingBaltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Antonio McKiver, age 47, of Baltimore, today to 235 months in prison followed by five years of supervised release for use of interstate commerce facilities in the commission of murder-for-hire, possession with the intent to distribute heroin and possession of a firearm by a convicted felon. Judge Blake enhanced McKiver’s sentence upon determining that McKiver is an armed career criminal based on three prior convictions for violent felonies and drug offenses.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
“There are other hit men like Antonio McKiver who commit drug-related murders in Baltimore,” said U.S. Attorney Rod J. Rosenstein. “Our challenge is to catch them before the next murder so we don't need to chase them afterwards.”
According to his plea agreement, on June 7, 2012 McKiver told a confidential informant that he was willing to be paid in cash and by drugs to carry out a murder. The next week McKiver met with an undercover FBI agent and agreed to commit a murder of a drug “associate” of the undercover agent for $15,000 and a kilogram of drugs. McKiver asked the undercover agent to provide the gun.
Thereafter, a cell phone used to arrange the murder and $600 were mailed to McKiver. On July 23, 2012, the undercover agent met McKiver in the parking lot of a hotel in Baltimore County, gave McKiver $5,000, a kilogram of heroin and a .9mm semi-automatic pistol. The undercover agent described the intended victim in detail to McKiver and pointed out the vehicle that the intended victim was using. After the undercover agent left and while McKiver waited in the parking lot for the victim, McKiver was arrested.
Agents executed a search warrant at McKiver’s house and seized a .40 caliber semi-automatic pistol and a 20 gauge shotgun. McKiver had previously been convicted of a felony and was prohibited from possessing the guns.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and James Wallner, who prosecuted the case.
Arden Hills Man Indicted for Distributing 12 Pounds of MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 35-year-old Arden Hills man was indicted for distributing approximately 12 pounds of methamphetamine. Marcelino Garcia was charged with one count of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine.
The indictment alleges that on March 15, 2013, Garcia, also known as Moreno Marcelino Garcia and Marcelino Garcia-Moreno, conspired with others to distribute 500 or more grams of methamphetamine, and that Garcia knowingly possessed with intent to distribute 500 or more grams of methamphetamine. According to a law enforcement affidavit filed in the case, authorities learned about Garcia during routine narcotics’ investigations in the Twin Cities. On March 15, police arranged a controlled purchase at a store parking lot in Shoreview. Following the transaction, Garcia was arrested, and officers seized six bags containing approximately 5,100 grams of methamphetamine, along with packaging materials.
If convicted, Garcia faces a potential maximum penalty of life in prison on each count. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case is being prosecuted by Assistant United States Attorney Julie E. Allyn.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/concern/meth.html.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Alleged Fraud Scheme Racked up $243k in Gift Cards & MerchandiseRead the Press Release
PHILADELPHIA - Diane Williams, 51, of New York, NY, was charged today by indictment with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft in connection with a scheme to use stolen bank cards to buy department store gift cards, announced United States Attorney Zane David Memeger.
According to the indictment, between January 2011 and February 2012, a co-conspirator, unknown to the grand jury, obtained stolen bank cards that had been issued by Bank of America and recruited Williams as a “shopper.” The role of the shopper was to use the victims’ identification information and stolen bank cards to buy gift cards and other merchandise. Williams, working with the co-conspirator, allegedly obtained the dates of birth, addresses, Social Security numbers, bank account numbers, and other means of identification of unknowing victims. She allegedly used this information and the stolen bank cards to fraudulently buy at least $243,029.78 worth of store gift cards and merchandise from Target, Walgreens, Walmart, and other stores in Pennsylvania, New York, and New Jersey. It is further alleged that Williams and the co-conspirator obtained and possessed bank cards that had been stolen from a Pitney-Bowes distribution center in Reading, Pennsylvania. The co-conspirator allegedly paid Williams for her work by giving her cash equal to a portion of the value of the gift cards or other merchandise she purchased in each store.
If convicted, Williams faces a total statutory maximum of 47 years in prison, five years of supervised release, a fine of $2.75 million, and a $700 special assessment.
The case was investigated by the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Laurie Magid.
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, 215-861-8525Alfred Coleman and Tyist Decquir Coleman Sentenced for Conspiring to Steal Money from Federal Housing ProgramsRead the Press Release
ALFRED COLEMAN, age 54, and his wife TYIST DECQUIR COLEMAN, age 42, residents of Harvey, Louisiana, were sentenced today in federal court by U.S. Court Judge Eldon E. Fallon for conspiracy to steal government funds, announced U. S. Attorney Dana J. Boente.
According to court documents, on or about November 30, 2007, TYIST DECQUIR COLEMAN began receiving rental assistance from the Disaster Housing Assistance Program (DHAP), a program funded through the United States Department of Housing and Urban Development (HUD) to assist persons renting housing following Hurricanes Katrina and Rita. DHAP provided federal funds to pay for rental properties for persons for at least 18 months. However, in order to be eligible persons must have been renting their residence. TYIST DECQUIR COLEMAN was not renting housing at that time. Prior to November 30, 2007, TYIST DECQUIR COLEMAN had married ALFRED COLEMAN and they resided in a home in Harvey, Louisiana which was owned by ALFRED COLEMAN. From on or about January 1, 2008 until on or about March 1, 2009, TYIST DECQUIR COLEMAN, continued to fraudulently receive monthly rental assistance from DHAP through the Jefferson Parish Housing Authority for rental assistance at the Harvey, Louisiana home, failing to disclose that she was not renting her residence, but that she and ALFRED COLEMAN were living at the residence which was owned by ALFRED COLEMAN.
Following the termination of DHAP assistance benefits, TYIST DECQUIR COLEMAN, representing herself as Tyist Dequir, signed a Request for Tenancy Approval for the Housing Choice Voucher Program, a HUD funded program for low-income citizens renting their housing. The COLEMANs claimed that TYIST DECQUIR COLEMAN was renting the home ALFRED COLEMAN owned and that ALFRED COLEMAN was her landlord. The COLEMANs fraudulently received rental payments from the federal program for the home they owned until January 1, 2012.
ALFRED COLEMAN was sentenced to three years probation. TYIST DECQUIR COLEMAN was sentenced to three years probation with an additional condition of intermittent confinement to prison for 12 weekends. The defendants are responsible for restitution in the amount of $44,013.
The case was investigated by the United States Department of Housing and Urban Development–OIG and prosecuted by Assistant United States Attorney Emily K. Greenfield.
Agreement Reached with the Unified Government of Wyandotte County and Kansas City, Kansas, to Improve Sewer and Stormwater SystemsRead the Press Release
The Unified Government of Wyandotte Co. and Kansas City, Kan., has agreed to a settlement to address unauthorized overflows of untreated raw sewage and to reduce pollution levels in urban stormwater, the Department of Justice and Environmental Protection Agency (EPA) announced today.
The settlement, lodged today in federal court in Kansas City, Kan., requires the Unified Government to implement improved operation and maintenance programs for its sewer system, perform initial work to address sewer overflows, and implement an improved Storm Water Management Plan. The Unified Government will also develop a proposed overflow control plan for the sewer system by September 2016 for approval by EPA. Unified Government’s implementation of that plan, once approved, will be embodied in a subsequent judicial settlement.
“Today’s agreement will put the Unified Government of Wyandotte County on a clear path toward compliance with the Clean Water Act,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The settlement will address deficiencies and require improvements to Wyandotte County’s sewer and stormwater systems that will reduce risks and bring cleaner water for the benefit of the county resident’s health and the environment.”
“EPA is working with cities to find effective, affordable solutions to control raw sewage and stormwater overflows,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement allows the Unified Government to tackle their most important water quality problems first, while preparing a long-term approach to keep local waterways protected in the future.”
“This settlement is good news for Kansas,” said Barry Grissom, U.S. Attorney for the District of Kansas. “By protecting our rivers, we are ensuring clean drinking water supplies, protecting public health, improving recreation and leaving a legacy of healthy rivers for future Kansans.”
“We are pleased that this settlement will result in the vigorous efforts by the Unified Government to improve its wastewater and stormwater programs,” said Karl Brooks, EPA regional administrator. “These programs will provide significant health and environmental benefits to the citizens of Kansas City, Kansas and Wyandotte County. Of special note are the immediate actions by the Unified Government to address sewer overflows in the northeast area of the city where there is a high proportion of low income and minority residents.”
The Unified Government’s sewer system collects and receives domestic, commercial and industrial wastewater from approximately 110,000 area residents. The system includes five wastewater treatment plants and more than 800 miles of sewer lines. The system is served by about one-third combined sewers, which carry both stormwater and wastewater, and the remainder by separated sewers.
Since 2004, the Unified Government has reported more than 450 illegal sewer overflows from its sewer system. These overflows resulted in the discharge of raw sewage into the Missouri River, the Kansas River and their tributaries. Untreated sewage from overflows can cause serious water quality problems and health issues from pollutants including harmful bacteria, oxygen-depleting substances, suspended solids, toxic metals and chemicals, and nutrients. The overflows are in violation of the federal Clean Water Act (CWA) and the terms of the city’s National Pollutant Discharge Elimination System (NPDES) permits for operation of its sewer system.
Under the agreement, the Unified Government is required to perform initial work primarily in the combined sewer portion of the system, located in the oldest developed area of the city, which is expected to provide relief to residences and other properties in the urban core that are often impacted by overflows.
The settlement also requires the Unified Government to implement an improved Storm water management plan, designed to reduce pollutants in stormwater. Municipal stormwater sewers carry significant amounts of pollution into urban rivers, lakes and streams. Pollutants such as lead, copper, oxygen-depleting materials and sediment in municipal stormwater can clog streams, harm or kill aquatic life, and result in human exposure to harmful substances. The existing stormwater management program at issue in this settlement was drafted by the Unified Government and made part of the stormwater discharge permit issued by the state of Kansas in 2001 and reissued in 2007.
Keeping raw sewage and contaminated stormwater out of the waters of the United States is one of the EPA’s highest priorities. Reductions in sewer and stormwater overflows are accomplished by obtaining cities’ commitments to implement timely, affordable solutions to these problems, which may also include the use of integrated municipal stormwater and wastewater plans. Integrated plans are intended to be an option to help municipalities meet their CWA obligations by optimizing the benefits of their infrastructure improvement investments through the appropriate sequencing of work. This approach can also lead to more sustainable and comprehensive solutions, such as green infrastructure, that improve water quality and enhance community vitality.
The partial settlement, lodged today in the U.S. District Court for the District of Kansas, is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.More information about EPA’s national enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
More information about integrated municipal stormwater and wastewater plans: http://cfpub.epa.gov/npdes/integratedplans.cfm
62 Individuals Indicted for Drug Trafficking in the Municipality of AreciboRead the Press Release
Defendants facing two narcotics forfeiture allegations of ten and five million dollars in two separate indictments
SAN JUAN, PR – Yesterday, a federal grand jury indicted 62 individuals in four separate indictments as the result of investigations led by the Drug Enforcement Administration (DEA) and the Puerto Rico Police Department (PRPD), announced today United States Attorney Rosa Emilia Rodríguez-Vélez. The United States Postal Inspectors and the Alcohol, Tobacco, Firearms and Explosives Bureau also participated during the investigation and the arrests.
The first indictment charges 44 individuals in a six-count indictment with conspiracy to possess with intent to distribute controlled substances within 1,000 feet of the real property comprising the Trina Padilla de Sanz, Bella Vista, Ramón Marín Solà and Manuel Zeno Gandía Public Housing Projects (collectively referred to as “El Cotto”) in the municipality of Arecibo. The object of the conspiracy was to distribute “crack” (cocaine base), cocaine, marihuana and Alprazolam (commonly known as Xanax) at “El Cotto” and in other areas nearby within the municipality of Arecibo, Puerto Rico, for significant financial gain and profit.
According to the indictment, from on or about the year 2004, the defendants conspired to purchase wholesale quantities of cocaine, heroin, marihuana and Xanax in order to distribute the same in street quantity amounts at the different drug points in “El Cotto” and in other areas of Arecibo. The main leader of the organization was Héctor Miranda-Rivera, aka “Ufo.” The other leaders were: Miguel Villanueva Lorenzo, aka “Tatito;” Fabian López-Mercado, aka “Fabi;” Eduardo Serrano-Rodríguez, aka “Eduard Dientu;” José Romàn-Rodríguez, aka “Chonono;” Esteban León-Mundo, aka “Steven;” Reynaldo Martínez-Gonzàlez, aka “Reysito;” Luis Pérez-Orta, aka “Gemi;” Edwin Olmo-Rodríguez, aka “Poco Pello;” Yamil Ocasio-Gonzàlez; and Harry Reyes-Estremera, aka “Grilli.”According to the indictment, the 44 co-conspirators had many roles, in order to further the goals of the conspiracy. These were: 11 leaders; drug owners; three suppliers; four runners; six enforcers; 19 sellers and one facilitator. The defendants are facing a narcotics forfeiture allegation of 10 million dollars.
Count six of the indictment charges López-Mercado and Alejandro Pérez-Gonzàlez with knowingly and intentionally using a communication facility, that is the United States Postal Service, to facilitate the commission of acts constituting a felony - trafficking marihuana.
The second indictment charges 16 individuals in a four-count indictment with conspiracy to possess with intent to distribute controlled substances within 1,000 feet of the real property comprising the Antonio Màrquez Arbona Public Housing Project, a housing facility owned by a public housing authority and other areas nearby and within the municipality of Arecibo. According to the indictment, from on or about the year 2004, the defendants conspired to possess with intent to distribute crack, cocaine, marihuana and Xanax at the Housing Project for significant financial gain and profit.The indictment alleges that, as part of the manner and means of the conspiracy, the co-conspirators would routinely possess, carry, brandish and use firearms to protect themselves and their drug trafficking organization. The 16 co-conspirators had many roles, in order to further the goals of the conspiracy. These were: four leaders-Luis Díaz-Natal, aka “Chencho;” Jesús Acosta-Millet, aka “Lalo;” Juan Pérez-Morales, aka “Charry,” “Joker;” and Jorge Sànchez-Pérez, aka “Joey;” drug owners; two runners; enforcers; 10 sellers and facilitators. The defendants are facing a narcotics forfeiture allegation of five million dollars.
Defendants Jorge Cintrón-Cordero, aka “Ogy” and Edwin De León-Ithier, aka “Edwin Trabuco” are charged in two separate indictments for knowingly and intentionally possess with intent to distribute crack.
“These arrests confirm the Justice Department’s commitment to hold ruthless drug traffickers responsible for selling narcotics and promoting the violence we are seeing in our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue with our efforts of investigating and prosecuting drug trafficking organizations, until we have covered every municipality in Puerto Rico.”
“These arrests stand as a warning to those individuals whose greed drives them to pollute our communities and schools with poisonous drugs. Our message to drug vendors and those responsible for the loss of innocent by standards – deal at your own risk. We are going to continue investigating those who have no respect for life and maintain our communities captives.” said Pedro Janer, DEA Acting Special Agent in Charge for the Caribbean Division.
“The United States Postal Inspection Service is committed to protect the US Mail from criminal misuse. We remain vigilant and continue to work to ensure those who utilize the US Mail as a means to transport contraband are brought before justice,” said Delany De León, Team Leader Postal Inspector, USPIS Newark Division/ San Juan Field Office. “Today we can see the results of our vigilance, our efforts, and our law enforcement partnerships. We have successfully identified, disrupted, and dismantled another dangerous Drug Trafficking Organization.”
These cases are being prosecuted by Assistant United States Attorney and Chief of the Narcotics Unit Timothy Henwood.
If convicted, the defendants face a minimum of ten (10) years imprisonment and a maximum of life imprisonment, with fines of up to $10 million. Criminal indictments are only charges and not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Wednesday 20 March 2013
Wolcott Man Admits Role in Illegal Campaign Contribution SchemeRead the Press Release
March 20, 2013David B. Fein, United States Attorney for the District of Connecticut announced that DANIEL MONTEIRO, 33, of Wolcott, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to a federal conspiracy charge stemming from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives.
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, Paul Rogers, who owned a RYO smoke shop with two locations in Waterbury, Harry Raymond “Ray” Soucy, David Moffa and others engaged in a scheme to direct conduit campaign contributions into the campaign of a candidate for the U.S. House of Representatives. The candidate was also a member of the Connecticut General Assembly. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and Rogers and other conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
In November and December 2011, the conspirators made four $2,500 conduit contributions to the Campaign. MONTEIRO, a Waterbury business owner, was aware of the purpose of the contributions and that the contributions were being made in the names of others.
On approximately January 31, 2012, the Campaign Committee submitted to the Federal Election Commission (“FEC”) a report of the Campaign Committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the Campaign Committee during that time period.
In the spring of 2012, the conspirators made additional illegal campaign contributions totaling $17,500. MONTEIRO provided one check in exchange for $2,500 in cash, and two of MONTEIRO’s employees provided $2,500 checks in exchange for reimbursement.
MONTEIRO pleaded guilty to one count of conspiracy to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws. Judge Arterton has scheduled sentencing for June 12, 2013, at which time MONTEIRO faces a maximum term of imprisonment of five years and a fine of up to $250,000.
Rogers, Soucy and Moffa have also pleaded guilty to charges related to this scheme and await sentencing.
As to the four other individuals who have been charged as a result of this investigation, U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Moses Lake Drug Traffickers Sentenced to Lengthy Federal Prison TermsRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington announced that Isidro Madrigal-Galvan, age 20, and Renee Gomez, age 24, both of Moses Lake, Washington, were sentenced after being convicted by a jury of conspiracy to distribute methamphetamine and other offenses relating to the operation of a methamphetamine trafficking organization during May, 2010 through July, 2011. Senior United States District Judge Edward Shea sentenced Madrigal-Galvan to more than a 19 year term of imprisonment, to be followed by 8 years of court supervision upon release from Federal prison. As a condition of that supervision, Madrigal-Galvan is prohibited from returning to the United States – he is not a United States citizen and faces deportation to Mexico as a result the convictions in this case. Judge Shea sentenced Gomez to a 10 year term of imprisonment, to be followed by 6 years of court supervision upon release from Federal prison.
In April, 2012, Madrigal-Galvan and Gomez were charged by way of a multi-count Indictment with offenses relating to the distribution and possession of methamphetamine, including the possession with intent to distribute methamphetamine within 1,000 feet of a school, possession with intent to distribute methamphetamine on premisses in which an individual under the age of 18 was present or resided, maintaining a drug involved premises within 1,000 feet of a school, and using and carrying a firearm during and in relation to a drug trafficking crime. Following a trial, on October 10, 2012 the jury returned guilty verdicts against Madrigal-Galvan and Gomez on multiple counts.
At the sentencing hearing, Judge Shea noted a number of factors considered"aggravating" under federal Sentencing Guidelines, including that the drug trafficking conspiracy involved a premises that bordered a primary grade school. The Judge also noted that by Federal statute the sentence for using and carrying a firearm during and in relation to a drug trafficking crime must be served consecutive to the sentence imposed for any of the other crimes. These factors, in combination with others, resulted in Madrigal-Galvan's sentence of more than 19 years. With respect to Gomez, Judge Shea found that her role in the offenses was relatively minor by comparison to other participants, noting that in February, 2013, a third
member of the conspiracy, Martin Murillo-Barriga, was sentenced to over 16 ½ years. Based on the totality of the circumstances Judge Shea sentenced Gomez to a 10 year term of imprisonment, which was the minimum allowed by statute.Michael C. Ormsby stated that, "These sentences reflect the serious consequences associated with trafficking in methamphetamine, particularly when it is conducted so close to a grade school. The law enforcement agencies involved in this investigation should be commended for their efforts in investigating this, and other drug trafficking organizations. This case is yet one more example of the strong partnership among law enforcement professional here in the Eastern District of Washington."
The investigation of this case, which was related to a larger investigation conducted by the Drug Enforcement Administration that led to the service of several search warrants and the arrest of numerous individuals, was conducted by the Spokane Regional Drug Task Force in cooperation with the Moses Lake Police Department, the Grant County Sheriffs Office, the Grant County Interagency Narcotics Enforcement Team, the Douglas County Sheriff's Office, the Oregon State Police, the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, and Firearms; Immigrations and Customs Enforcement; and the United States Marshall's Service.
This case was prosecuted by Timothy J. Ohms and Caitlin A. Baunsgard, Assistant United States Attorneys for the Eastern District of Washington.
CR-12-0108-EFS
Two Members of Violent Robbery Crew Found Guilty in Manhattan Federal Court of Murder, Nine Robberies, and Firearms ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Joseph Anarumo, the Special-Agent-in-Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Raymond W. Kelly, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that JERMAINE DORE and DWAYNE BARRETT, two members of a violent robbery crew operating in the Bronx and Westchester County, New York, were found guilty yesterday in Manhattan federal court of murder, nine robberies, and firearms charges. DORE and BARRETT were convicted after a two-week jury trial before U.S. District Judge Richard J. Sullivan.
According to the Superseding Indictment and the evidence presented at trial:
Between August 2011 and January 2012, DORE and BARRETT participated in nine separate robberies. They carried out those robberies, using weapons – including firearms and knives – to injure, terrorize, and in one case murder, one of their victims. The nine robberies were:
- A robbery that took place on August 22, 2011, in Matamoras, Pennsylvania, during which an individual who owns a gas station and store was assaulted and robbed of approximately $45,000 in business proceeds;
- A robbery that took place on October 5, 2011, in the Bronx, New York, during which two individuals who sell telephone calling cards to bodegas, grocery stores, and other commercial locations, were robbed of approximately $700;
- A robbery at knifepoint that took place on October 10, 2011, in the Bronx, New York, during which the employee of a bodega was robbed of a cellphone and laptop computer;
- A robbery at knifepoint that took place on October 11, 2011, in New Rochelle, New York, during which an individual who sold telephone calling cards was beaten and robbed of more than $6,000 and telephone calling cards valued at approximately $6,000;
- A robbery at gunpoint that took place on October 29, 2011, of an individual who owns a poultry market in the Bronx, New York, during which approximately $15,000 in business proceeds were taken;
- A robbery at gunpoint on December 12, 2011, in Mount Vernon, New York, during which the defendants attempted to rob three victims engaged in the business of selling cigarettes to other individuals and commercial establishments, and shot and killed one of the victims;
- A robbery that took place on December 12, 2011, in the Bronx, New York, during which an individual employed by a company that sells tobacco products to commercial establishments was threatened with a gun and a knife and robbed of more than $15,000;
- A robbery that took place on December 31, 2011, in the Bronx, New York, during which an individual who sold telephone calling cards was beaten and robbed of approximately $3,000 and 100 telephone calling cards; and
- A robbery at knifepoint that took place on January 7, 2012, in the Bronx, New York, during which an individual who owns a business that supplies merchandise to bodegas was assaulted and robbed of approximately $1000.
BARRETT also acted as the driver in connection with many of the robberies.
DORE, 26, of the Bronx, New York, and BARRETT, 35, of Yonkers, New York, were convicted of the following seven counts: (1) participating in a conspiracy to commit robberies from 2010 through January 2012; (2) using, carrying, or possessing firearms in connection with the robbery conspiracy; (3) committing a robbery on October 29, 2011, at an apartment on Radcliff Avenue in the Bronx, New York; (4) using, carrying, or possessing firearms in connection with the October 29 robbery; (5) committing a robbery on December 12, 2011, in the vicinity of 267 South Fourth Avenue, Mount Vernon, New York; (6) using, carrying, or possessing firearms in connection with the December 12 robbery; and (7) causing the death of Gamar Dafalla, one of the victims of the December 12, 2011, robbery. They both face a maximum penalty of life in prison. DORE and BARRETT are scheduled to be sentenced by Judge Sullivan on July 26, 2013.
Three other defendants pled guilty to related charges prior to trial: Fahd Hussain, Taijay Todd, and Tameshwar Singh. Hussain was the operator of One M Stationery Store, located on White Plains Road in the Bronx, New York, who exploited his relationships with other business owners, including individuals who supplied Hussain’s store with telephone calling cards and other merchandise, personal friends, and family members in targeting the robbery victims. Many of the victims, were business owners and members of the Yemeni community in New York City, as was Hussain. Todd participated in several of the robberies with DORE and BARRETT. Singh was a business associate of HUSSAIN who engaged in the transportation of untaxed cigarettes. Hussain, Todd, and Singh are scheduled to be sentenced by Judge Sullivan on June 21, July 10, and June 19, 2013, respectively.
Mr. Bharara praised the ATF and the NYPD for their work in this investigation.
The prosecution of this case is being overseen by the Office’s Violent Crimes Unit. Assistant United States Attorneys Amy Lester and Jessica Masella are in charge of the prosecution.
U.S. v. Fahd Hussain, et al. S2 Indictment
Two Defendants sentenced in credit card schemeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that David Pierleoni, 26, of Rochester, N.Y. and Cassandra N. Dehn, 27, of Willard, MO, who were convicted of offenses related to a wire fraud conspiracy were sentenced by U.S. District Judge David G. Larimer. Pierleoni, who was convicted of conspiracy to commit wire fraud and aggravated identity theft, was sentenced to 42 months in prison. Dehn, who was convicted of conspiracy to commit wire fraud, was sentenced to three years probation. Both defendants were ordered to pay restitution in the amount of $22,808.71.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendants, along with a third co-defendant, Victor Ortiz, conspired to obtain credit card information, including numbers, access codes and expiration dates, which were then used to make fraudulent purchases in Rochester. Defendant Dehn, an employee of a Comfort Inn and Suites hotel in Willard, Missouri, obtained personal credit card information of guests from the hotel's computer system, which she then transmitted to co-defendant Pierleoni, in exchange for $100. Pierleoni and Ortiz then used the information from Dehn to make unlawful purchases of high end liquor and food at Rochester businesses. The defendants knew that the credit card numbers had been assigned to other people and that they were not authorized to make purchases with the numbers. As a result of the fraudulent purchases, the local businesses incurred losses in excess of $20,000.
Defendant Ortiz was sentenced by Judge Larimer in January to 60 months in prison and he was also ordered to pay $22,808.71 in restitution.
The sentencings are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent In Charge Christopher M. Piehota and members of the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn.
Two Ashland Men in Stolen Motorcycle Ring ConvictedRead the Press Release
LONDON, KY - A federal jury in London, KY., found two Ashland, Ky., men guilty for their roles in a motorcycle theft ring.
Richard Meade, 65, and Mark Justice, 53, were convicted of a conspiracy to engage in money laundering by illegally transferring the ownership of stolen motorcycles and one count each of possession of motorcycles with altered vehicle identification (VIN) numbers. Justice was also convicted of one count of illegally transferring ownership titles of stolen motorcycles while Meade was convicted on one count and acquitted on another count of the same charge. A third defendant, George Ferguson, 64, on trial for the conspiracy charge, was acquitted.
The jury reached the verdict Tuesday night after approximately 3 hours of deliberation following more than three weeks of trial.
According to trial testimony, the two defendants sold approximately 30 motorcycles out of car lots in Ashland. They sold the motorcycles for between $13,000 and $15,000 apiece.
Justice and Meade participated in a conspiracy in which co-defendant Robert Jason Chapman of Cincinnati coordinated trips with others to motorcycle rallies in South Carolina, South Dakota and Florida. At these events, Chapman and others stole motorcycles and brought them to Kentucky to sell.
Chapman previously admitted that he and a co-defendant removed parts of the stolen motorcycles and replaced them with aftermarket parts bearing different vehicle identification numbers (VIN). He registered the stolen motorcycles with the new VIN numbers in Kentucky. Meade and Justice took some of the newly registered motorcycles and sold them.
Six other defendants previously pleaded guilty to their roles in the case.
The FBI and Kentucky State Police identified nearly 200 victims in this case, which include the original motorcycle owners and insurance companies.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, and Rodney Brewer, Kentucky State Police Commissioner jointly announced the plea.
The investigation preceding the indictment was conducted by the FBI, Kentucky State Police, the Boyd County Sheriff’s Office, Ohio Bureau of Investigations, Ohio Attorney General’s Office, and Ohio State Patrol. The U.S. Attorney’s Office was represented in the case by Assistant United States Attorneys Kenneth R. Taylor and Erin J. Roth.
The defendants are scheduled for sentencing on July 24, 2013. They face up to 20 years in prison on the illegal transfer of ownership titles charge and the conspiracy charge. Possessing motorcycles with altered VIN numbers carries a maximum 10 year penalty.
Toledo Man Charged with Wire Fraud and Identity TheftRead the Press Release
A criminal information was filed charging Jermain R. Stevenson, age 22, of Toledo, Ohio, with wire fraud and aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Stevenson is accused of fraudulently obtaining the personal identification information of credit-card holders and using that information to have purchase goods and services that he then had delivered to various locations in Toledo, according to the information.
Stevenson did this between October 2010 and January 2012, fraudulently purchasing at least $62,000 worth of goods and services, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Cleveland. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tallahassee Man Sentenced to Thirty Months for ConversionRead the Press Release
PANAMA CITY, FLORIDA –Charles R. Hood, 59, of Tallahassee, Florida was sentenced to thirty months in federal prison today for conversion of property listed as collateral on a mortgage loan.
On October 18, 2012, Hood pled guilty to a one-count information charging him with conversion of property pledged as collateral on a mortgage loan, in violation of Title 18, United States Code, Section 658. Facts presented during the plea hearing revealed that Hood, owner of Fidelity Foods, LLC, was working as a peanut broker. On January 7, 2008, Hood signed a loan agreement with Farm Credit of Northwest Florida (hereinafter “Farm Credit”) allowing him to receive a revolving line of credit of up to $5 million. As collateral on the loan, Hood pledged, among other things, peanuts that he or his company held at warehouses and/or shelling plants. After receiving a line of credit from Farm Credit throughout 2008, Hood subsequently defaulted on the loan. Afterwards, Farm Credit attempted to recover their losses by claiming the peanuts pledged as collateral on the loan. However, Farm Credit subsequently learned that between on or about January 7, 2008, and on or about January 23, 2009, Hood had used peanuts which were listed as collateral on Hood’s loan agreement with Farm Credit to settle an outstanding $2,100,838.83 business debt that he owed to another company.
As part of his sentence, United States District Judge Richard Smoak also imposed three years’ supervised release. In addition, Hood agreed to pay $2,456,720.97 in restitution to the victim, Farm Credit, which represented the outstanding balance owed on his loan.The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida. Ms. Marsh praised the work of the Federal Bureau of Investigation in this matter. The case was prosecuted by Assistant U.S. Attorney J. Ryan Love.
Solomons Man Sentenced to 12 Years in Prison for Producing Child PornographyRead the Press Release
Typical of the Predators Children Routinely Encounter on the InternetGreenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Joshua P. Blakenship, age 25, of Solomons, Maryland, today to 12 years in prison followed by a lifetime of supervised release for producing child pornography. Judge Titus ordered that upon his release from prison, Blakenship must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Calvert County Sheriff Mike Evans; and the Rapid City South Dakota Police Department.
“Joshua Blankenship is typical of the predators children routinely encounter on the internet,” said U.S. Attorney Rod J. Rosenstein.
“Individuals that sexually exploit children think they can hide behind their computers and not be discovered by law enforcement,” said Special Agent in Charge of HSI Baltimore William Winter. “Think again. HSI special agents along with our domestic and international law enforcement partners have joined forces to aggressively investigate and apprehend these predators and ensure that they are prosecuted to the full extent of the law.”
According to his plea agreement, Blakenship “friended” a teenage girl on Facebook in January 2011. They exchanged text messages and by March 2011, Blankenship asked the girl for a nude photo of herself. The girl sent Blakenship a nude photo she took on her cell phone.
On July 4, 2011, Blankenship sent a text message to the girl demanding 10 nude pictures and said that if she did not produce and send the photos, she would go to jail because she had sent an illegal image on her cell phone. Between July 5 and 7, 2011, Blakenship sent numerous texts describing the images he wanted her to produce and threatening to call the police if she refused. The victim produced several dozen pictures and sent them to Blakenship.
Blakenship was identified and his residence searched on August 5, 2011. Blakenship admitted to forcing individuals to send him pictures, and to creating a fake profile on the Internet to gain access to pictures and videos of girls.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Calvert County Sheriff’s Office and Rapid City, South Dakota Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, and Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Skidmore Man Charged with Illegal Firearm Following PursuitRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Skidmore, Mo., man was charged in federal court today with illegally possessing a firearm after he attempted to flee from law enforcement officers.
Eric Maupin, 51, of Skidmore, was charged with being a felon in possession of a firearm in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo.
According to an affidavit filed in support of today’s criminal complaint, law enforcement officers responded to a report of a domestic disturbance at Maupin’s residence on March 12, 2013. When officers entered the residence through the open front door, there was nobody in the house; however, they saw long guns positioned at the windows and exterior doors of the residence. As they were leaving the residence, Maupin’s wife told them that she and her husband had been involved in an altercation and he was still on the property.
As the officers walked from the residence, the affidavit says, a Cadillac Escalade pulled out of one of the sheds on the property and drove at a high rate of speed in the direction of the officers. They pointed their weapons in the direction of the Escalade and the vehicle stopped. Maupin, whom the affidavit says was driving, was ordered to exit the vehicle. Instead, he again drove in the direction of the officers. The officers did not fire their weapons due to the presence of children in the vehicle. Maupin backed the vehicle up and drove out another exit from the property, the affidavit says, due to the driveway being blocked.
Maupin crashed the Escalade at the intersection of Highway PP and Highway 46. The vehicle was able to back out and continued east on Highway 46 for approximately 100 yards before the vehicle became disabled. Maupin exited the vehicle and was taken into custody by the sheriff and a state trooper after a brief struggle, the affidavit says.
According to the affidavit, officers searched the vehicle and found a loaded Beretta .40-caliber semi-automatic pistol between the front seat and the armrest of the vehicle. They also found 11 additional firearms and ammunition in Maupin’s residence.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Maupin has prior felony convictions for conspiracy to manufacture methamphetamine, possession of methamphetamine, carrying a concealed weapon and possession of a controlled substance.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Nodaway County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sheboygan Man Indicted in Federal Court with Sex Trafficking and Distribution of HeroinRead the Press Release
United States Attorney James L. Santelle announced that a federal grand jury has indicted Jason B. Guidry, (age: 31) of Sheboygan on multiple counts of drug and sex trafficking crimes. Guidry was initially indicted on January 18, 2013 and charged with a number of drug offenses including: Conspiracy to Distribute Heroin, Distribution of Heroin, and Possession with Intent to Distribute Controlled Substances.
On March 19, 2013, in a superseding indictment, Guidry was again charged with the original drug crimes and the following sex trafficking crimes: Counts 2, 3, 4 and 9 of indictment charge Guidry with Sex Trafficking through Use of Force, Fraud or Coercion, involving four separate victims, and Counts 5, 6, 7, 8, 10, and 12 of the indictment charge Guidry with Interstate Transportation for the Purpose of Prostitution. The superseding indictment also charges Guidry with Distribution of Heroin Causing Serious Bodily Harm, a crime that carries a mandatory sentence of life imprisonment. If convicted of the below charges Guidry will face the following penalties.
Count Charge Penalty1
Conspiracy to Distribute more than 100 grams of heroin and 28 grams of crack in violation of 21 U.S.C. § 846
5 - 40 years imprisonment; $4,000,000 fine.
Sex Trafficking Through Use of Force, Fraud, or Coercion in violation of 18 U.S.C. § 1591
15 years to life imprisonment; $250,000 fine.
5-8, 10, & 12
Interstate Travel for the Purpose of Prostitution in violation of 18 U.S.C. § 2421
10 years imprisonment; $250,000 fine.
11Distribution of Heroin Causing Serious Bodily Harm in violation of 21 U.S.C. § 841(a)(1) & (b)(1)(C)
Life imprisonment; $2,000,000 fine.
13
Distribution of Heroin in violation of 21 U.S.C. § 841(a)(1) & (b)(1)(C)
30 years imprisonment; $1,000,000 fine.
14-16
Possession with intent to Distribute Heroin, Cocaine, Crack Cocaine, and Marijuana in violation of 21 U.S.C. § 841
30 years imprisonment; $1,000,000 fine.
The indictment alleges that beginning in March 2012, Guidry conspired with others to distribute and did distribute controlled substances, including heroin, crack cocaine, and powder cocaine. The indictment also alleges that Guidry recruited four women into the sex trade and, on multiple occasions, transported several of them to Illinois and other cities in Wisconsin to engage in commercial sex acts.
Public information filed in Sheboygan Circuit Court alleges that once Guidry hooked female customers on his heroin, he made the drug available to them so as to induce them into prostituting for him. Once they were addicted to his heroin, Guidry was able to coerce these women to continuing prostituting for him under threat that he would no longer provide them with heroin.
This case was the result of an investigation by the Sheboygan Police Department. The case has been assigned to Assistant United States Attorneys Melvin K. Washington and Joseph R. Wall.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Ronald Zajac, General Counsel of Detroit's Pension Funds, and Paul Stewart, Former Pension Fund Trustee, Indicted for Bribery ConspiracyRead the Press Release
Ronald Zajac, of Northville, Michigan, the General Counsel of Detroit's two pension funds, and Paul Stewart, of Detroit, Michigan, a former Trustee of Detroit's Police and Fire Retirement System were both charged today in a superseding indictment with participating in a bribery and kickback conspiracy involving over $200 million in investments before the two City of Detroit pension funds United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by FBI Special Agent in Charge Robert D. Foley, III.
Zajac and Stewart were added as defendants in a superseding indictment that had already charged former city Treasurer Jeffrey Beasley and investment sponsor Roy Dixon with the bribery and kickback conspiracy. The charges were set forth in a Fifth Superseding Indictment issued by a Detroit federal Grand Jury today.
United States Attorney McQuade said, "Public officials entrusted with billions of dollars in employees’ pension money cannot take bribes and kickbacks to influence their investment decisions.”
Robert Foley, Special Agent in Charge, Federal Bureau of Investigation said, "Those who are fortunate enough to serve in positions of public trust are expected to act with honesty and integrity at all times. The FBI is committed to holding these individuals accountable for abuses including acts of bribery, kickbacks and other serious crimes."
Zajac served as the General Counsel of Detroit's two pension funds, the General Retirement System and the Police and Fire Retirement System, from 1982 through 2012. In November 2012, the Board of Trustees of the Police and Fire Retirement System terminated Zajac as General Counsel. Zajac still serves as the General Counsel of the General Retirement System. Stewart was a City of Detroit police officer for more than 30 years and served as a Trustee of the Police and Fire Retirement System from 2004 to 2011. Stewart also served as the Vice President of the Detroit Police Officers Association, the union that represents most of Detroit's police force.
According to the 13-count superseding indictment, between January 2006 and April 2009, defendants Zajac and Stewart conspired with Beasley, Dixon, and other individuals to defraud current and retired employees of the City of Detroit of their right to the honest services of former Mayor Kwame Kilpatrick, Beasley, Stewart, and other Trustees free from bribery and corruption. During the the conspiracy, Stewart accepted thousands of dollars in cash, trips, entertainment, and other things of value from people seeking investments from the Police and Fire Retirement System. Stewart accepted a $5,000 casino chip, a Christmas basket that included an envelope with thousands of dollars in cash, a cash payment of $2,500 during a trip to New York City, a cash payment of $2,500 during a trip to Florida, an excursion to the Bahamas for Stewart and his mistress, and a trip to Naples, Florida for Stewart and his mistress. In addition, Stewart accepted a "birthday present" of $5,000 in cash at a party at the Atheneum Hotel. Zajac organized the party, and Zajac solicited and collected the cash from people having business before the Boards of Trustees of the pension funds. Zajac also collected and delivered an additional $5,000 in cash for a second pension fund trustee at the same party. At a party in January 2007, Zajac collected and delivered thousands of dollars in cash for former Treasurer and Trustee Beasley.
Also during the conspiracy, Zajac sought to curry favor with Beasley and former Mayor Kilpatrick by raising more than $70,000 for the Kilpatrick Civic Fund. Zajac directed and forced people having business before the pension funds to spend thousands of dollars to entertain trustees of both pension funds. Zajac forced one trustee to pay more than $10,000 for limousines for trustees during a trip to New York City.
Soon after giving Beasley, Stewart, and a third trustee thousands of dollars in cash at their "birthday parties," the trustees voted to give Zajac a substantial raise as General Counsel of the two pension funds. As a result of the raise, Zajac was receiving over $400,000 in compensation per year from the pension funds.
Upon conviction, both Zajac and Stewart face a maximum of twenty years in prison and a fine of up to $250,000 on the charge of conspiracy to commit honest services mail and wire fraud. The superseding indictment seeks forfeiture of the proceeds of the conspiracy received by Zajac, Stewart, and their co-conspirators.
The case was investigated by agents of the FBI, the Department of Labor, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorneys Robert Cares and David A. Gardey.
Rochester man sentenced for his role in mark and hudson streets drug conspiracyRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Keith “Kiki” Ruther, 34, of Rochester, who was convicted of conspiring to distribute cocaine, was sentenced to 151 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that Ruther sold cocaine and supplied cocaine to several associates of a street crew that controlled the drug trade in the area of Mark Street and Hudson Avenue in the city of Rochester for several years. Ruther also possessed a firearm in connection with the drug trafficking offense.
Much of the street level drug activity occurred in plain view on the sidewalk in front of the Hello Hudson Mini Mart at 519 Hudson Avenue, as well as surrounding street corners and parking lots. The group also utilized rental apartments and abandoned houses from which they stored and sold cocaine and crack cocaine on a daily basis. Law enforcement responded to repeated citizen calls for service to combat open the air drug sales and shootings in the general area of Mark and Hudson Streets.
“This case is yet another example of our Office’s commitment to ridding the streets of our community of those who would harm it,” said U.S. Attorney Hochul. “We stand ready, willing and able to assist our local partners in bringing the full weight of federal law enforcement against the most dangerous and violent criminals.”
The sentencing is the culmination of an investigation on the part of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Scott Heagney and the Rochester Police Department, under the direction of Chief James Sheppard.Randallstown Man Convicted of Bankruptcy Fraud and Filing False Tax ReturnsRead the Press Release
Failed to Report Income and Assets Totaling Over $740,000 and Attempted to Fraudulently Discharge Debts of Over $1.1 million through BankruptcyBaltimore, Maryland - A federal jury today convicted Ricardo O. Curry II, age 42, of Randallstown, Maryland, on two counts of assisting in the filing of a false tax return, four counts of bankruptcy fraud, four counts of falsifying bankruptcy records and one count of false testimony under oath at a bankruptcy proceeding. After the jury returned its verdict, U.S. District Judge William D. Quarles, Jr. ordered that Curry be detained pending sentencing and he was taken into custody
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and the Baltimore Office of the United States Trustee Program, the Department of Justice agency that supervises bankruptcy cases and trustees.
According to evidence presented at his three day trial, Curry worked for Peerless Real Estate Services, Inc., a North Carolina corporation that oversaw the sale of property in North Carolina, including the Village of Penland development, which contained more than 2000 lots. Curry recruited at least 12 investors to purchase at least 23 lots in the Village of Penland and he received referral fees based on these sales. In 2005, 2006, and 2007, respectively, Curry earned referral fees of $41,455, $43,200, and $330,546. Although Curry reported the income he received as a sales representative for a pharmaceutical company on his 2005, 2006, and 2007 tax returns, he failed to report these referral fees, totaling $415,201.
On March 12, 2009, Curry filed for Chapter 13 bankruptcy in the United States Bankruptcy Court for the District of Maryland. On April 21, 2009, Curry filed a Statement of Financial Affairs with the bankruptcy court, which reported the income he earned as a pharmaceutical sales representative for tax years 2005, 2006, and 2007, but failed to report the $415,201 he earned in referral fees from Peerless. Curry also failed to disclose his ownership interest in a home worth approximately $325,000. On July 28, 2009, Curry filed an Amended Statement of Financial Affairs, which again failed to disclose the $415,201 in referral fees, and his ownership interest in the home. On October 20, 2009, Curry testified under oath at meeting of the creditors, falsely stating that all of his assets were listed in his bankruptcy filing, when in fact, Curry knew that he had not reported the referral fees, nor his home ownership. Ultimately, Curry never provided documents to the trustee overseeing his bankruptcy case regarding either the referral fee income or the home, and as a result, on April 12, 2010, Curry’s attempt to discharge his debts through bankruptcy was denied
Curry faces a maximum sentence of 20 years in prison on each count of falsifying bankruptcy records; five years in prison on each count of bankruptcy fraud and for false testimony; and three years in prison for each of the tax counts. Judge Quarles has scheduled sentencing for June 4, 2013, at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI and U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I Sharfstein, who are prosecuting the case.
Queens Doctor Arrested for Illegal Distribution of OxycodoneRead the Press Release
A Queens doctor was arrested this morning pursuant to a complaint charging him in federal court in Long Island with distribution of oxycodone, a highly-addictive prescription medicine used to treat severe pain.1 Dr. Gracia L. Mayard is scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown at the U.S. Courthouse, Central Islip, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration, New York and Thomas V. Dale, Commissioner, Nassau County Police Department.
This morning, as part of a federal and state prescription drug abuse initiative within the Eastern District of New York, Mayard was arrested by members of a DEA Tactical Diversion Squad, comprised of DEA agents and Nassau County Police Department detectives, on charges of illegally distributing oxycodone between January 1, 2012 and March 15, 2013. According to the complaint, during the first nine months of 2012, Mayard issued 2,953 oxycodone prescriptions – 376,469 pills – to numerous individuals, without performing any meaningful medical examination and in exchange for cash. In some cases, Mayard issued the prescriptions without even meeting the purported patients. On February 6, 2013, when members of the DEA Tactical Diversion Squad contacted Mayard, he voluntarily surrendered his DEA registration authorizing him to prescribe controlled substances. However, the complaint alleges that three weeks later, on February 28, 2013, Mayard nevertheless issued a prescription for oxycodone. On March 13, 2013, a pharmacist, in the presence of DEA agents, called Mayard about the prescription. During the call, Mayard confirmed that he had issued the prescription and provided his surrendered DEA registration number, all in an effort to persuade the pharmacist to fill the oxycodone prescription.
“Instead of abiding by the charge to ‘do no harm,’ Mayard allegedly operated under the credo ‘where’s the money,’ placing profits above patient safety,” stated United States Attorney Lynch. “When doctors participate in the diversion of addictive prescription drugs from their intended use they fuel drug abuse and addiction. We are committed to vigorous prosecution of this growing problem.” Ms. Lynch expressed her grateful appreciation to the Drug Enforcement Administration, the Nassau County Police Department and the New York State Police for their assistance in this investigation.
DEA Special Agent-in-Charge Brian R. Crowell stated, “Illegal prescribing is the white collar money making crime of the decade. We allege Dr. Mayard, with no regard to public safety, abused his position as a licensed doctor by prescribing pain medications to people with no legitimate medical need in exchange for cash. It is estimated that Dr. Mayard wrote prescriptions for over 9,000 pills of oxycodone per week affecting the availability of diverted medications in our community and on our streets. Over 26% of first time drug users began with non-medical use of prescription drugs and it is law enforcement’s concerted efforts to thwart both the supply and the demand.”
Nassau County Police Commissioner Dale stated, “Addiction to prescription opiates is a burgeoning problem here on Long Island. In Nassau County, overdoses from these types of medications almost doubles that of overdoses from heroin. Our partnership in the DEA Tactical Diversion Squad and with the United States Attorney for the Eastern District of New York ensures that law enforcement is doing their part to keep these illegally prescribed drugs out of our communities.”
If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment and a $1 million fine.
In January 2012, the United States Attorney’s Office for the Eastern District of New York and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department and New York State Police, along with other key federal, state and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement action against a pharmacy, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorney Allen L. Bode.
The Defendant:
Name: GRACIA L. MAYARD
Age: 61_____________________________
1 The charges are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Police Officer Pleads Guilty to Federal Child Pornography OffensesRead the Press Release
FORT WORTH, Texas — Philip Woolery, a former officer with the Grapevine, Texas, Police Department, appeared in federal court in Fort Worth today and pleaded guilty to an Information charging one count of production, and one count of possession, of child pornography. Woolery has been in custody since his arrest in October 2012 at his residence in Crowley, Texas, by U.S. Postal Inspectors during the execution of a federal search warrant. He faces a total maximum statutory penalty of not less than 15 or more than 40 years in federal prison, a $500,000 fine and a lifetime of supervised release. Sentencing is set for September 17, 2013, before U.S. District Judge Terry R. Means. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Woolery admitted that in August 2011 he used his digital camera to record a minor male engaging in sexually explicit conduct in a swimming pool. In addition, Woolery admitted that in October 2012, he possessed a laptop computer that contained a sexually explicit image of a nude minor male and that he used that computer and the Internet to search for websites containing child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Participant in Multi-Million Dollar Fraudulent Credit Repair Scheme Sentenced in Manhattan Federal Court to 51 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDWIN MANSOUR, JR. was sentenced today in Manhattan federal court to 51 months in prison for his role in what is believed to be the largest known credit repair fraud scheme ever charged. His co-defendant, Denise Hudson was sentenced earlier this month to 30 months in prison. MANSOUR and Hudson were ordered to pay more than $9.3 million in restitution for the losses caused by the scheme. In October 2012, MANSOUR and Hudson each pled guilty to one count of conspiracy to commit bank fraud and Hudson also pled guilty to one count of conspiracy to cause damage to a protected computer. Their sentences were imposed by U.S. District Judge Naomi Reice Buchwald. Edwin Jacquet (“Jacquet”), the leader of the scheme, was sentenced by Judge Buchwald to 63 months in prison in December 2012.
Manhattan U.S. Attorney Preet Bharara said: “A credit score is a critical data point relied upon by banks and other lenders in deciding whether to extend loans, and a good one takes years to develop and must be carefully maintained. As a result, the integrity of credit reporting is crucial for the proper functioning of the financial system. Mansour will now pay a steep price for attempting to corrupt that system for his own benefit.”
According to the Indictment to which MANSOUR and Hudson pled guilty, statements made during their guilty pleas and sentencing proceedings, and other court documents:
Consumer reporting agencies, commonly known as “credit bureaus,” are businesses that provide reports to third parties about the credit-worthiness of consumers. Credit bureaus gather information used to generate credit reports from many sources, including “furnishers.” Furnishers include entities that provide consumers with credit, such as credit card companies, mortgage lenders, automobile lenders, and department stores.
In September and October 2007, Highway Furniture, Inc. (“Highway Furniture”), a Brooklyn-based business that Jacquet managed, became a furnisher. In July 2008, New York Funding Group Inc. (“New York Funding”), a Long Island-based business which Jacquet created, also became a furnisher. These businesses became furnishers by entering into various agreements with at least two credit bureaus that allowed Highway Furniture and New York Funding to furnish their customers’ data to the credit bureaus with which they had agreements.
From 2007 through 2009, through Highway Furniture and after that through New York Funding, MANSOUR, Hudson, and others including Jacquet, engaged in a scheme to fraudulently improve the credit histories and credit scores of thousands of individuals who were purported customers of the two entities (the “Purported Customers”). New York Funding and Highway Furniture obtained these customers principally by working through a network of brokers who promised the customers that the brokers could have their credit “repaired.” In exchange for thousands of dollars in fees, MANSOUR, Hudson, and their co-conspirators provided credit bureaus with fictitious information showing that Highway Furniture and New York Funding had extended credit to the Purported Customers and that the loans had been, or were being, repaid. In fact, the individuals had never been extended credit by Highway Furniture or New York Funding. The purpose of providing the fraudulent information to the credit bureaus was to generate fake positive credit history and, in so doing, improve the credit scores of the Purported Customers.
Over the course of the scheme, MANSOUR, Hudson, and their co-conspirators added nearly 3,000 fake lines of credit to the credit history of hundreds of Purported Customers of New York Funding and Highway Furniture. After having their credit fraudulently improved, the Purported Customers obtained more than $47.8 million in loans, including mortgages, car loans, student loans, and credit card loans. The losses sustained by the lenders who extended credit to the purported customers and who could not repay the loans, totaled more than $9.3 million.
MANSOUR, Hudson, and their co-conspirators also fraudulently improved the credit histories and credit scores of some of the Purported Customers by deleting accurate, but negative, credit information maintained by one or more credit bureaus. They did so by exploiting loopholes in a software tool called e-OSCAR that the credit bureaus made available to Highway Furniture, the purpose of which was to help resolve disputes about individuals’ credit histories. Instead, MANSOUR, Hudson, and their co-conspirators used their access to e-OSCAR as part of the fraudulent credit repair scheme. Over the course of the scheme, MANSOUR, Hudson, and their co-conspirators fraudulently deleted or modified over 4,400 legitimate debts from the credit files of hundreds of people.
In addition to the prison terms and restitution, Judge Buchwald sentenced MANSOUR, 45, of Staten Island, New York, and Hudson, 49, of Brooklyn, New York, to two years of supervised release.
Mr. Bharara praised the outstanding efforts of United States Secret Service in the investigation. He also thanked Experian Information Solutions, Inc., and TransUnion LLC for their assistance in the investigation.
In sentencing MANSOUR, Judge Buchwald commented on MANSOUR’s submission of a fraudulent claim for disaster assistance after Hurricane Sandy, and said: “What is ultimately so staggering is that he has been absolutely disrespectful of the legal system since his arrest.”
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Daniel W. Levy and Zachary A. Feingold are in charge of the prosecution.
Oklahoma City Man Pleads Guilty to Making Threat to Commit Violence in WyomingRead the Press Release
Oklahoma City, Oklahoma – Today, GLENN ALLEN KIRKHAM, 34, of Oklahoma City, Oklahoma, pled guilty to making a threat to commit violence in Casper, Wyoming, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On January 14, 2013, public officials in and around Casper, Wyoming, received numerous reports from various sources of a threatened attack in Casper using multiple types of weapons. The threat had been posted from Oklahoma City on 4chan.org, an internet-based bulletin board service. The posting was quickly distributed throughout the social media and caused significant concern in the community. The threat came not long after Casper had experienced a homicide/suicide at a local college. As a result of the threat, officials immediately took precautions that included placing 40 schools on lockdown, notifying hospitals and nursing homes, and placing police officers at potential locations of an attack.
At the plea hearing today, Kirkham admitted that he made the threat. A sentencing hearing is set for June 19, 2013, where Kirkham faces up to five years in prison and a $250,000 fine, plus mandatory restitution for the cost of emergency responders.
This case is the result of an investigation by the Federal Bureau of Investigation and the Casper Police Department in Wyoming. The case is being prosecuted by Assistant U.S. Attorneys Mark A. Yancey and Scott E. Williams.
Oklahoma City Man Pleads Guilty to Making Threat to Commit Violence in WyomingRead the Press Release
GLENN ALLEN KIRKHAM, 34, of Oklahoma City, Oklahoma, pled guilty to making a threat to commit violence in Casper, Wyoming, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On January 14, 2013, public officials in and around Casper, Wyoming, received numerous reports from various sources of a threatened attack in Casper using multiple types of weapons. The threat had been posted from Oklahoma City on 4chan.org, an internet-based bulletin board service. The posting was quickly distributed throughout the through social media and caused significant concern in the community. The threat came not long after Casper had experienced a homicide/suicide at a local college. As a result of the threat, officials immediately took precautions that included placing 40 schools on lockdown, notifying hospitals and nursing homes, and placing police officers at potential locations of an attack.
At the plea hearing today, Kirkham admitted that he made the threat. A sentencing hearing is set for June 19, 2013, where Kirkham faces up to five years in prison and a $250,000 fine, plus mandatory restitution for the cost of emergency responders.
This case is the result of an investigation by the Federal Bureau of Investigation and the Casper Police Department in Wyoming. The case is being prosecuted by Assistant U.S. Attorneys Mark A. Yancey and Scott E. Williams.
New York Man Sentenced to 11 Years in Prison for Mail Fraud and Attempting to Corruptly Influence a U.S. AttorneyRead the Press Release
A New York man was sentenced today in Buffalo to serve 11 years in prison for committing mail fraud and attempting to escape the charges by exerting pressure on a U.S. Attorney’s spouse and candidate for office, the Justice Department announced.
James F. Lagona, 52, of Snyder, N.Y., was sentenced by Chief U.S. District Judge William M. Skretny in the Western District of New York. Lagona was sentenced to serve nine years in prison on 27 mail fraud charges, one year in prison on one obstruction of justice charge and one year in prison for committing obstruction while on release in the fraud case. In addition to Lagona’s prison term, he was sentenced to serve three years of supervised release and ordered to pay restitution of $6,396,359 for the fraud charges.
On Feb. 23, 2011, in a case prosecuted by the U.S. Attorney’s Office for the Western District of New York, a federal jury found Lagona guilty of committing 27 counts of felony mail fraud related offenses for his role in the Watermark M-One Financial Services Ponzi scheme. According to evidence presented at trial, Lagona and his co-conspirators operated a scheme that solicited investors for waterfront real estate and promised a 10 percent return on investment after one year. In truth, no investments were made, and new investors were recruited to pay off the earlier investors. A total of 94 victims suffered a loss of over $6 million as a result of the scheme.
On Dec. 18, 2012, in a case prosecuted by the Justice Department’s Criminal Division, Lagona pleaded guilty to a one-count information charging him with endeavoring to influence, obstruct and impede the due administration of justice. Lagona has been detained since Nov. 15, 2012, pursuant to a criminal complaint.
During his plea proceeding in December, Lagona admitted to obtaining a private meeting with a campaign staffer working for U.S. Representative Kathy Hochul of New York, who was then involved in a close race for reelection against her opponent. Lagona also admitted that during the Nov. 2, 2012, meeting – four days before the election – he identified himself as a clergyman, claimed that he had been involved in discussions with the political party of Rep. Hochul’s election opponent, and falsely claimed that the opponent’s party was interested in featuring him in an advertisement or rally to claim wrongful prosecution and religious persecution. He told the campaign staffer that he would instead publicly support Rep. Hochul, if her spouse, Western District of New York U.S. Attorney William J. Hochul Jr., dismissed the criminal case against him. The campaign staffer subsequently reported the meeting to the FBI.
Lagona admitted to meeting with the campaign staffer a second time on Nov. 3, 2012. During the meeting, which was covertly recorded by the campaign staffer under the FBI’s supervision, Lagona admitted to specifying that he sought a “quid pro quo” in exchange for refusing to campaign with the party of Rep. Hochul’s opponent and for publicly supporting her instead. Lagona admitted he told the staffer that in exchange he wanted his case dismissed and for no further charges to be brought against him. Following the meeting, Lagona made efforts to follow up with the staffer by phone.
The criminal complaint in which Lagona was originally charged with obstruction, unsealed on Nov. 15, 2012, notes that the criminal investigation revealed no evidence that the campaign staffer, Rep. Hochul or her campaign ever intended to accept or considered accepting Lagona’s proposal, nor that the proposal was ever communicated to or considered by U.S. Attorney Hochul. The investigation has revealed no evidence that any member of the opposing party ever considered using Lagona during the campaign.
The fraud case was prosecuted by Assistant U.S. Attorney Gretchen L. Wylegala of the U.S. Attorney’s Office for the Western District of New York and investigated by the U.S. Postal Inspection Service Boston Division and the Internal Revenue Service-Criminal Investigation New York Field Office. The obstruction case was prosecuted by Trial Attorney J.P. Cooney of the Criminal Division’s Public Integrity Section and investigated by the FBI Buffalo Division.
New Haven Man Sentenced to 57 Months in Prison for Distributing CrackRead the Press Release
March 20, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that DERRICK BROCK, also known as “Easy,” 26, of New Haven, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 57 months of imprisonment, followed by three years of supervised release. On November 6, 2012, BROCK pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. During the investigation, BROCK, who was identified as a member of the Grape Street Crips, was intercepted over a court-authorized wiretap discussing the acquisition and distribution of crack cocaine with co-defendants in New Haven and Rhode Island.
BROCK was ordered not to associate with any of his co-defendants during his term of supervised release.
On April 9, 2012, a grand jury returned an indictment charging 18 individuals, including BROCK, with narcotics distribution offenses stemming from this investigation. To date, nine of the defendants have pleaded guilty. The other nine defendants are detained while awaiting trial.
With respect to the defendants awaiting trial, U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was being investigated by the FBI’s New Haven Safe Streets Task Force, which includes officers from the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The investigation was significantly assisted by the Connecticut State Police, the United States Marshals Service and the Westerly (R.I.) Police Department.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nelson County, Kentucky Drug Store Owner Guilty of Health Care Fraud and Wire FraudRead the Press Release
– Crume Drug Store owner billed private insurance companies and Medicare Part D for fraudulent prescriptions causing a combined loss of $250,188.72
LOUISVILLE, Ky. – The owner of Crume Drug Store, located in Nelson County, Kentucky, pleaded guilty in federal court today, before Magistrate Judge James D. Moyer, to a two count federal information, charging Timothy Sizemore with health care fraud and wire fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
“Sizemore’s submission of fictitious claims for prescription drugs was simple, direct, outright theft from Medicare and private health insurers,” stated U.S. Attorney Hale. “This sort of fraud hurts every person in this country by contributing to the escalating costs of health care. My office is committed to prosecuting those who commit health care fraud and recovering restitution whenever possible.”
According to the plea agreement, Sizemore, age 37, of Bardstown, Kentucky, purchased Crume Drug Store in March 2010, then, between April 2010 and February 2012, knowingly devised and executed a scheme, to defraud Anthem and other private health insurance providers and Medicare Part D. Specifically, Sizemore created false names and placed them under his own Anthem policy number, created fraudulent prescriptions under those names, and billed Anthem for those fraudulent prescriptions, even though they were never actually filled. Also, Sizemore created fraudulent prescriptions using the names of Crume customers and local doctors, and billed the customers’ private insurance companies for those prescriptions even though they were never filled. This caused a loss of $154,112.33 to Anthem and private health care insurers. Further, during the same time period, Sizemore admits that he used the names of Crume customers and local doctors to create fraudulent prescriptions and billed Medicare Part D for those fraudulent prescriptions, which were never filled, causing the loss of $96,076.39 to Medicare Part D.
At sentencing, Sizemore could face no more than 30 years in prison, a fine of $500,000 and three years of supervised release. The plea agreement requires Sizemore to pay full restitution on or before May 3, 2013. Sentencing is scheduled before Chief District Judge Joseph H. McKinley, Jr. on July 1, 2013, at 11am in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and U.S. Department of Health and Human Services Office of Inspector General.
Miami Beach Community Health Center CEO Pleads Guilty in $6 Million Embezzlement ScamRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Michael A. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), announced that defendant Kathryn Abbate, 64, of Hollywood, FL, pled guilty today to theft of money from programs receiving federal funds, in violation of Title 18, United States Code, Section 666. Sentencing is scheduled for May 29, 2013 at 11:30 AM before U.S. District Judge Marcia G. Cooke. At sentencing, the defendant faces a maximum statutory sentence of up to10 years in prison.
According to the factual proffer field with the court, the defendant served as Chief Executive Officer of the Miami Beach Community Health Center (MBCHC) from 2002 to mid-2012. During this time, MBCHC was a Federally Qualified Health Center (FQHC) that provided medical care to persons regardless of ability to pay or insurance status. As an FQHC, MBCHC received millions of dollars of federal funding each year from 2008 to 2012 through cash grants and Medicaid reimbursements.
According to the factual proffer, beginning around 2008 and continuing through around May 2012, Abbate embezzled money from MBCHC. First, Abbate caused MBCHC to pay her non-accrued vacation pay and other forms of compensation that totaled over $3 million from 2008 to 2012. Second, Abbate embezzled money from MBCHC by causing non-payroll checks to be issued from MBCHC payable to her. Specifically, from 2007 to 2012, Abbate caused MBCHC to disburse approximately 837 checks made payable to her totaling approximately $3 million (the Abbate Checks) for “community development.” No backup documentation (such as an invoice or receipt) was provided for any of these checks and money from these funds was misappropriated by Abbate, including for personal use.
According to the factual proffer, in May 2012, auditors requested backup documentation for the Abbate checks disbursed by MBCHC in 2011, totaling approximately $1 million. In response, Abbate caused false backup documentation to be provided to the auditors, falsely indicating that the $1 million had been paid to five doctors at a medical facility. In fact, however, the money had not been paid to these doctors, but had been misappropriated by Abbate.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. The case is being prosecuted by AUSAs Michael N. Berger and Patrick Sullivan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mercer County, N.J. Woman Admits Involvement in Trenton, N.J. Oxycodone RingRead the Press Release
TRENTON, N.J. – A Mercer County, N.J., woman today admitted her role in conspiring with Joseph “JoJo” Giorgianni, Charles Hall III and others to illegally distribute oxycodone pain pills, U.S. Attorney Paul J. Fishman announced.
Carol M. Kounitz, 57, of Hamilton, N.J., pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an Information charging her with one count of conspiracy to distribute and possess with intent to distribute oxycodone.
According to documents filed in this case and statements made in court:
Between August 2011 and September 2011, Carol M. Kounitz agreed with Charles Hall III, Stephanie Lima and Joseph A. Giorgianni to obtain oxycodone from a doctor in exchange for payment. In coordination with Hall, on Aug. 17, 2011, Kounitz went to a Nutley, N.J., doctor and obtained a prescription for 120 15-milligram oxycodone pills for resale. Kounitz and Lima later filled that prescription and gave the pills to Hall in exchange for payment. Kounitz, Hall and Lima made a second trip to the doctor on Sept. 14, 2011, during which she obtained a prescription for 120 30-milligram oxycodone pills, and Lima obtained a prescription for 120 15-milligram oxycodone pills. Kounitz and Lima later filled those prescriptions and provided the pills to Hall in exchange for payment. Kounitz understood Giorgianni to be overseeing the sale of the oxycodone that she and Lima provided to Hall.The drug conspiracy count to which Kounitz pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for June 26, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge David Velazquez, for the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
13-133
Defense counsel: Paul W. Norris Esq., Lawrenceville, N.J.
Kounitz Information
Members, associates of the bailey boys and LRGP gangs face murder and attempted murder charges in superseding indictmentsRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned two superseding indictments in the ongoing investigations into the Bailey Boys and LRGP, violent criminal gangs operating on Buffalo's East Side.
According to Assistant U.S. Attorney Anthony M. Bruce, who is handling the Bailey Boys case, a third superseding indictment charges Bailey Boys member Tyriq Brown, 20, of Buffalo, with the shooting and wounding of a rival gang member on July 29, 2011 on Kensington Avenue. It also charges Bailey Boys members Rayshod Washington and Raymel Weeder with the February 9, 2012 murder of Fred Rozier. According to the indictment, the murder involved a drug ripoff that went bad. Washington is also charged with racketeering for the January, 27 2012 robbery of an individual.
Based on this latest superseding indictment, members and associates of the Bailey Boys, who operate in an area of the City bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street, now stand accused of three murders, six shootings, including four drive-by shootings, a robbery that involved the shooting of a victim who survived and a shooting that occurred during a neighborhood party with numerous children present. To date, two defendants have been convicted.
A superseding indictment involving the LRGP Gang charges three additional members and associates with racketeering stemming from their participation in the illegal activities of the street gang on Buffalo's East Side. The illegal activities included cocaine trafficking and conspiracy to murder of rival gang members. Furthermore, 10 previously charged defendants are facing additional charges.
Defendants Gregory Scott, Fred Keys and Ranole Goodwin are each charged with racketeering. Previously charged with cocaine trafficking in July 2012, Dewayne Gray, John Evans, Alexis Mills, Philip Brown, John Hayward, Demario Devon Nance, Kiara McNamee, Erika Gray, Timothy Finch and Dayshawn Brazier are also charged with racketeering. The racketeering charge carries a maximum sentence of life in prison, a $10,000,000 fine or both. According to Assistant U.S. Attorney Michael McCabe, who is handling the case, LRGP is named after Lombard, Rother, Gibson and Playter Streets. Defendant Dewayne Gray was the leader of the LRG-P organization from 2009 until early 2012 and oversaw the sale of crack cocaine by various LRG-P members from gang-controlled residences on Memorial Drive, Sobieski Street and Meyers Street in Buffalo. In April 2011, LRG-P members also conspired to kill a rival gang member, Amir Chambers, who was shot and killed on April 21, 2011 on Mills Street in Buffalo. To date, three defendants have been convicted.
"This is yet another example of the Office's commitment to prosecuting the most violent and dangerous criminals operating in Buffalo," said U.S. Attorney Hochul. "Today's developments add to the over 140 gang members we've charged to date, individuals responsible for numerous murders, attempted murders and other acts of violence in our neighborhoods. And the community should know that these efforts will only continue."
"Our gang investigations continue to clear cold case homicides that may not have been solved otherwise," said Christopher M. Piehota, Special Agent in Charge of the Buffalo FBI Office. "Not only do we arrest gang members, but we can provide the victims' family members with some amount of closure. The FBI recognizes the need to stay involved with our community partners after we remove gang members from their neighborhoods."
The superseding indictments are the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney Frank A. Sedita, III, the Homicide Bureau of the Buffalo Police Department, under the command of Captain Michael McCarthy and Police Commissioner Daniel Derenda, the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent in Charge Christopher M. Piehota, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard, the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, and the New York State Police, under the direction of Major Christopher Cummings.
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.
Longmont Man and Business Charged with Illegally Discharging Sewage into the UnionRead the Press Release
DENVER – John Albert Paquette, age 52, of Longmont, Colorado, and his company, East Point, LLC, have been charged by Information with knowingly discharging a pollutant without a permit from a point source into waters of the United States, the U.S. Attorney’s Office and the Environmental Protection Agency (EPA) Criminal Investigation Division announced. Paquette and an attorney representing the company appeared in U.S. District Court yesterday afternoon, where they were advised of their rights and the charges pending against them.
According to the Information, on June 20, 2012, Paquette and East Point, LLC, knowingly discharged 1,000 gallons of raw sewage from a hose into the Oligarchy Ditch, which flowed into the Union Reservoir, located in Longmont, Colorado.
“Protecting our environment, including the water we rely on, is a top priority of this U.S. Attorney’s Office,” said U.S. Attorney John Walsh. “Thanks to the investigative work of the EPA, we’ve been able to bring charges against a person and a company who intentionally dirtied water in the city of Longmont.”
“The defendant has been charged with dumping untreated sewage directly into a tributary of Union Reservoir, a popular recreational lake,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Colorado. “Illegally discharged sewage can sicken people, fish and wildlife. This case shows that those who try to save a buck by cutting corners will be vigorously prosecuted.”
If convicted, the company faces not more than 5 years probation, a fine of at least $5,000 and not more than $50,000 per day of violation. Paquette, if convicted, faces up to 1 year in prison and a fine of at least $2,500 and not more than $25,000 per day of violation.
This case is being investigated by the Environmental Protection Agency Criminal Investigation Division.
The defendants are being prosecuted by Assistant U.S. Attorney Suneeta Hazra.
The charges contained in the Information are allegations, and the defendants are presumed innocent unless and until proven guilty.
####
Logan County, Kentucky Businessman Charged with Failing to Pay Income Taxes for 15 Year PeriodRead the Press Release
– Diverted income to “shell” companies to hide assets and employees from the Internal Revenue Service
BOWLING GREEN, Ky – The Owner and operator of a construction business that performed work on commercial poultry houses was indicted by a federal grand jury meeting in Bowling Green, Kentucky, on February 13, 2013, and was unsealed today, charging him with one count of personal income tax evasion, ten counts of employment tax evasion, and four counts of failure to report income tax announced David J. Hale, Untied States Attorney for the Western District of Kentucky.
According to the indictment, Norman Hostetler, age 41, of Russellville, Kentucky beginning on or about January 1, 1996, and continuing up and until at least June 6, 2011, in Logan County, Kentucky, and elsewhere, did willfully attempt to evade and defeat the payment of a large part of the income taxes owed by him to the United States of America. Hostetler concealed his income by, among other things, failing to file individual income tax returns with the Internal Revenue Service (IRS) for the calendar years 1996 through 2011.
Between 1998 through 2009, it is alleged by the indictment that Hostetler created and operated Stanley and Sons (S&S) Trust, in Orange County, California, to create and reinforce the false impression that it was a valid trust to be used for estate planning purposes. Hostetler also created and used a bank account for S&S as a “formal trust” designed to conceal and mislead the IRS as to the true nature of the account. Further, between 1998 and through 2009, Hostetler disguised and attempted to disguise a substantial amount of income, earnings, and assets from the IRS that he owned and personally controlled by diverting assets and income to entities, including (S&S) and Green River Enterprises.
Between March 2009 and June 2011, Hostetler used multiple shell companies to disguise his ownership of vehicles from the IRS. Eco-Trans, LLC and Smokey Mountain Management Business were allegedly set up by Hostetler to obscure the chain of ownership of vehicles purchased by the defendant between March 2009 and June 2011.
Hostetler is further charged with concealing his business, employees, and employee payroll from the IRS by not paying employment taxes to the IRS and by failing to file employment tax returns (Form 941) on behalf of his employees from January 2007 through July 31, 2009. Form 941 is used to report an employer's withholding of employees’ federal taxes from their employees’ compensation, including Social Security tax, income tax, and Medicare tax.
If convicted at trial, Hostetler faces 59 years in prison, a fine of ¬$3,150,000, and 3 years’ supervised release.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by IRS Criminal Investigation Division. If you have any information as to the location of Norman Hostetler please contact the IRS Criminal Investigative Division at 270-901-3048.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Le Center Man Pleads Guilty to Receiving Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 47-year-old Le Center man pleaded guilty to receiving several videos containing child pornography. Harold Duane Davenport pleaded guilty to one count of receipt of child pornography. Davenport, who was indicted on November 5, 2012, entered his plea before United States District Court Judge David S. Doty.
In his plea agreement, Davenport admitted that from September 16, 2009, through February 6, 2010, he knowingly received visual depictions over the Internet that involved minors engaged in sexually explicit conduct. In addition, Davenport admitted that he possessed more than 600 images of child pornography, including images and videos portraying sadistic or masochistic conduct or other depictions of violence.
For his crime, Davenport faces a potential maximum penalty of 20 years in prison, with a mandatory minimum penalty of five years in prison. Judge Doty will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the LeSueur County Sheriff’s Office, and the Minneapolis Police Department. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.Receipt of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is presently funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (PSC), 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Lancaster Man Sentenced to 121 Months’ Imprisonment for Distribution and Receipt of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lloyd Hershey Wenger, Jr., age 46, of Lancaster, Pennsylvania was sentenced Tuesday by U.S. District Court Judge Sylvia H. Rambo to a 121-month term of imprisonment, followed by 20 years’ of supervised release. Judge Rambo further ordered that Wenger pay $5,000 in restitution. Wenger must also register as a sex offender.
According to United States Attorney Peter J. Smith, Wenger had contact with an undercover FBI agent and shared numerous image files that depicted children, some as young as infants, engaged in sexually explicit conduct that he possessed. A forensic examination of Wenger’s computer revealed over 1,800 image files and over 500 video files containing child pornography.
Wenger was indicted in February 2012 and pleaded guilty in August 2012.
This case is being brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Knoxville Couple Convicted of Tax FraudRead the Press Release
KNOXVILLE, Tenn. – On Mar. 20, 2013, a federal jury in U.S. District Court for the Eastern District of Tennessee, at Knoxville, found James E. Beavers and Beverly S. Beavers, each guilty of conspiracy to defraud the United States and three counts of filing false claims for tax refunds. After the jury’s verdicts were announced, the defendants were remanded into federal custody by the Honorable Thomas Varlan, U.S. District Judge. Sentencing has been set for 10:00 a.m., August 7, 2013.
The evidence at trial showed that James Beavers held a Ph.D. in civil engineering and was employed as an engineering consultant. He was formerly the director of an academic engineering center at the University of Tennessee. His wife Beverly Beavers owned a small formalwear and jewelry store in Knoxville.
In June 2009 the Beavers arranged to have a fraudulent 2008 tax return prepared by PMDD Services LLC, tax return preparation firm that helped clients claim exorbitant tax refunds specifically intended to help the clients pay off their personal debts. The tax return falsely reported that the amount of their mortgage, limits on all their credit cards, and other personal debts were actually income and withheld federal income tax. This fictitious income and fictitious tax withholding was reported to the Internal Revenue Service (IRS) on false Forms 1099-OID, which were prepared by Penny Jones of PMDD Services based on information provided by the Beavers. Jones was convicted in the Southern District of Florida for her involvement in the same scheme. She is currently serving a sentence of 144 months in federal prison.
As a result of the fraudulently-inflated income and withholding, the 2008 tax returns for the Beavers claimed a fraudulent tax refund of over $591,000. Upon receiving the funds, the Beavers paid off their home mortgage. They then conveyed their newly-unencumbered real estate to sham trusts, in order to impede IRS efforts to collect the erroneously-paid refund. The Beavers later filed false amended tax returns for the 2006 and 2007 tax years, also prepared by Jones, requesting fraudulent tax refunds of $193,056 and $202,625 respectively.
“We will aggressively investigate and prosecute those who intentionally violate federal tax laws. Disagreement with the income tax laws and failure to recognize the authority of the government to tax will not excuse criminal conduct,” said U. S. Attorney Bill Killian.
The Beavers case was investigated by special agents of the IRS-Criminal Investigation. The case was prosecuted by Trial Attorneys Jonathan Marx and Jed Silversmith of the Department of Justice, Tax Division, with local assistance from Assistant U.S. Attorney Charles E. Atchley, Jr., with the U.S. Attorney’s Office for the Eastern District of Tennessee.
Kimball Nurse Sentenced for Fraudulently Obtaining A Controlled SubstanceRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 43-year-old Kimball nurse was sentenced for fraudulently obtaining a controlled substance, namely hydromorphone hydrochloride, commonly sold as Dilaudid. United States District Court Judge Patrick J. Schiltz sentenced Blake Daniel Zenner to 24 months in federal prison on one count of obtaining a controlled substance by fraud. In addition, Zenner was ordered to pay $340,000 in restitution. Zenner was charged on September 4, 2012, and pleaded guilty on September 26, 2012.
Following today’s sentencing, Dan Henson, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigations (“FDA-OCI”) Chicago Field Office, one of the federal investigative agencies in this case, said, “The defendant exhibited a blatant and heartless disregard for the patients he victimized. FDA-OCI is committed to investigating crimes like these that pose a significant threat to public health, and we commend the U.S. Attorney’s Office for its prosecution of this matter.”
In his plea agreement, Zenner admitted that from November 2010 to March 8, 2011, he fraudulently acquired Dilaudid while working as a registered nurse at a hospital in St. Cloud, Minnesota. Zenner accessed hospital lockboxes and used syringes to remove hydromorphone hydrochloride from intravenous bags intended for hospital patients. On some occasions, he injected the intravenous bags with saline solution to replace the missing Dilaudid before returning the bags to the lockboxes for patient use. As a result of Zenner’s actions, approximately 25 hospital patients were infected with bacteria.
This case was the result of an investigation by FDA-OCI and the U.S. Drug Enforcement Administration. It was prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen.Kanawha County Man Gets Federal Prison Time for Illegal Possession of an Ak-47 Assault Rifle and Other FirearmsRead the Press Release
CHARLESTON, W.Va. –A Kanawha County man who previously admitted to illegally possessing numerous firearms including an AK-47 assault rifle was sentenced today to four years in federal prison, announced U.S. Attorney Booth Goodwin. Mark Daniel Davis, 52, of Rand, Kanawha County, W.Va., previously pleaded guilty to a charge contained in an indictment returned in May 2012.
On April 30, 2012, Deputy U.S. Marshals arrived at the defendant’s Rand residence to execute an arrest warrant. During the execution of the warrant, law enforcement officers observed the defendant standing inside of the residence. Davis failed to comply with law enforcement’s order to open the front door. As a result, deputy U.S. Marshals entered the residence through the back door and arrested the defendant. Deputy U.S. Marshals recovered a loaded 7.62 millimeter pistol from a bedroom night stand and a fully-loaded semi-automatic rifle with an attached bayonet.
Deputy U.S. Marshals also obtained a search warrant for a gun safe located at the residence. During the execution of the search warrant on the gun safe, law enforcement found six rifles, including an AK-47 rifle with a bayonet, magazines for each firearm and ammunition. Law enforcement also recovered body armor, which included a bulletproof vest, from the defendant’s living room area.
Davis was prohibited from possessing firearms because of a prior felony conviction in March 2003 in the Circuit Court of Wayne County, Michigan for assault.
This case was investigated by the U.S. Marshals Service. Assistant United States Attorney William King handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime
Justice Department Reaches Agreement with California <br /> City on Bailout Under the Voting Rights ActRead the Press Release
The Justice Department announced that it has reached an agreement with the city of Wheatland, Calif., that, if approved by the court, will allow it to bail out from its status as a “covered jurisdiction” under the special provisions of the Voting Rights Act, and thereby exempt the city from the preclearance requirements of Section 5 of the Voting Rights Act. Wheatland is located in Yuba County, Calif., which is a jurisdiction subject to Section 5. The agreement is in the form of a consent decree filed today in the U.S. District Court for the District of Columbia.
Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined according to Section 4 of the act, are required to seek preclearance for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court for the District of Columbia, or from the U.S. Attorney General, prior to their implementation. Section 4 of the Act provides that a covered jurisdiction may seek to “bail out,” or remove itself from such coverage, and therefore be exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in U.S. District Court for the District of Columbia. A bailout judgment can be issued only if the court determines that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the attorney general can consent to entry of a judgment of bailout only if, based upon investigation, the attorney general is satisfied that the jurisdiction meets the eligibility requirements.
The city of Wheatland filed its bailout action in the U.S. District Court for the District of Columbia on Jan. 14, 2013. City officials had contacted the attorney general prior to filing its action, indicating that the City was interested in seeking a bailout. The city provided the Justice Department with substantial information, and the department conducted an investigation to determine the city’s eligibility. Based on that investigation, the department is satisfied that the city of Wheatland meets the Voting Rights Act’s requirements for bailout.
“In the Voting Rights Act, Congress provided a means for a covered jurisdiction to be exempted from the preclearance requirements of Section 5 if the jurisdiction meets the specific eligibility requirements of the Act,” said Matthew Colangelo, Deputy Assistant Attorney General for the Civil Rights Division. “I am pleased that city officials worked cooperatively with the department in providing the information we requested and in resolving this matter in the way envisioned by the Voting Rights Act.”
The consent decree details the legal and factual basis for a bailout determination and, if approved, will grant the city’s request. The court will retain jurisdiction of the action for 10 years and can reopen the action upon the motion of the attorney general or any aggrieved person alleging conduct by the city that would have originally precluded a bailout if it had occurred during the 10 year period preceding entry of the consent decree.
Information about bailout, the Voting Rights Act, and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/voting . Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Iranian Narcotics Broker Sentenced in Manhattan Federal Court to 210 Months in Prison for Conspiring to Import Hundreds of Kilograms of Heroin to the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SIAVOSH HENAREH, a citizen of Iran, was sentenced in Manhattan federal court to 210 months in prison for conspiring to import heroin into the United States. HENAREH was convicted in November 2012 after a two-week jury trial before U.S. District Judge Jed S. Rakoff. HENAREH was one of three defendants charged in connection with an international investigation of narcotics and weapons traffickers. His co-defendant, Cetin Aksu, pled guilty in August 2012 to conspiring to provide material support to Hizballah, conspiring to acquire anti-aircraft missiles, conspiring to import heroin into the United States, and making false declarations before a federal court. HENAREH’s other co-defendant, Bachar Wehbe, pled guilty in November 2011 to conspiring to provide material support to Hizballah, conspiring to acquire anti-aircraft missiles, and obstruction of justice. Judge Rakoff imposed HENAREH’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “The conduct for which Siavosh Henareh was sentenced today, along with the conduct of his co-defendants, serves as a stark reminder of the nexus between international narcotics trafficking and terrorist funding. Today’s stiff sentence befits the gravity of his crime, and we will continue to pursue narco-traffickers across the globe.”
According to the Indictment and evidence presented at trial:
Beginning in June 2010, HENAREH – an international narcotics broker – had over 30 meetings in countries including Turkey, Romania, and Greece with DEA confidential sources (the “CSs”) and potential heroin suppliers. During those meetings, and in a series of telephone calls, HENAREH agreed to arrange the importation of hundreds of kilograms of high-quality heroin into the United States. The CSs represented to HENAREH that the profits from the sale of the heroin in the United States would be used, among other things, to purchase weapons. In April 2011, in Bucharest, Romania, the CSs received a one-kilogram heroin sample from HENAREH’s co-conspirator in order to inspect its quality, and in anticipation of a subsequent, multi-hundred kilogram load. In July 2011, HENAREH volunteered his home as the location where approximately three million Euros would be brought to pay for 189 kilograms of heroin. He then helped his co-conspirators verify and count that money, before being arrested by the Romanian National Police.
While negotiating the heroin transaction, members of the narcotics conspiracy began to negotiate a weapons deal with the CSs. Specifically, Aksu, who also participated in the heroin conspiracy, met with the CSs and with Wehbe in furtherance of the weapons deal. Aksu and Wehbe subsequently arranged to purchase military-grade weaponry from the CSs on behalf of Hizballah. In those meetings, and in telephone calls and email messages, Aksu and Wehbe discussed the purchase of American-made Stinger surface-to-air missiles (“SAMs”), Igla SAMs, AK-47 and M4 assault rifles, M107 .50 caliber sniper rifles, and ammunition from an American base in Germany and other locations. In June 2011, in Kuala Lumpur, Malaysia, Aksu and Wehbe signed a written contract for the purchase of 48 American-made Stinger SAMs, 100 Igla SAMs, 5,000 AK-47 assault rifles, 1,000 M4 rifles, and 1,000 Glock handguns, for a total price of approximately $9.5 million. During the course of the weapons negotiations, Wehbe stated that he was purchasing the weapons on instructions from, and on behalf of Hizballah. Shortly thereafter, Wehbe and others caused approximately $100,000 to be transferred to the CSs as a down payment for the weapons purchase, including a $50,000 wire transfer to an undercover bank account.
In addition to his prison term, HENAREH, 58, was also sentenced to five years of supervised release. He was also ordered to pay a $100 special assessment.
Wehbe and Aksu are scheduled to be sentenced by Judge Rakoff on November 4, 2013 and August 22, 2014, respectively. Both defendants face a maximum term of life in prison, with a mandatory minimum term of 25 years in prison.
Mr. Bharara praised the outstanding work of the Special Operations Division of the DEA, the DEA Bucharest Country Office, the DEA Istanbul Country Office, the DEA Kuala Lumpur Country Office, the DEA Copenhagen Country Office, the DEA New Delhi Country Office, the DEA Athens Country Office, and the DEA Cyprus Country Office. Mr. Bharara also expressed his gratitude to the Southeast European Law Enforcement Center, the Romanian National Police, the Turkish National Police, the Malaysian National Police, the Greek Hellenic Police, the Cyprus National Police, and the Maldives Police Service. Mr. Bharara also thanked the U.S. Department of Justice Office of International Affairs, the National Security Division, and the United States Department of State for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Benjamin Naftalis and Rachel Kovner are in charge of the prosecution.
Indiana Man Pleads Guilty to Lying to the Federal Bureau of InvestigationRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on March 20, 2013, Paul R. Kramer, 63, of Vincennes, Indiana, pled guilty in federal district court to making false statements to Federal Bureau of Investigation agents.
Kramer was indicted along with the mayor of the city of Bridgeport, Illinois, on November 6, 2012, by a federal grand jury sitting in Benton, Illinois. The indictment charged Kramer with two counts of making false statements to federal officers. Each count of making false statements carries a maximum penalty of 5 years of imprisonment, a $250,000 fine, and up to 3 years of supervised release.
Sentencing for Kramer is scheduled for 10:30 a.m. on June 27, 2013.
“The plea in this case should serve as a reminder that lies do not stop investigations. This office and its federal and state partners will not be deterred by those who seek to subvert justice.” said United States Attorney Wigginton. “It also should serve as notice that there are 38 counties in Illinois which comprise the Southern District of Illinois, and residents in each of those counties may rest assured that my office will work diligently to insure that those who violate federal law will be found and prosecuted in any of those 38 counties.”
At his plea, Kramer admitted that on August 5, 2011, he had lied when he told agents that an invoice he faxed to agents regarding the rental of a backhoe to the City of Bridgeport, was prepared for him by a person by the name of “C.S.” and that he had lied when he said it was not prepared or given to him by Max R. Schauf. In written court filings, Kramer admitted that “C.S.” did not prepare the invoice and that, in fact, he had obtained the invoice from Max R. Schauf, who was then the mayor of the city of Bridgeport, Illinois.
Kramer also admitted that on August 12, 2011, he had lied when he told agents that he owned a backhoe that had been rented to the City of Bridgeport, Illinois. In written court filings, Kramer admitted that the statements and representations were false because he knew at the time that the backhoe was actually owned by Max R. Schauf, the mayor of City of Bridgeport, Illinois.
Note: Under the law, a defendant who is charged but has not pleaded guilty is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt. A plea of guilty by a co-defendant does not extinguish the presumption of innocence for other defendants.
The case was investigated by agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
Hospice of Arizona and Related Entities to Pay $12 Million to Resolve False Claims Act Allegations Filed in MarylandRead the Press Release
Allegedly Submitted False Claims for Patients Who Did Not Have Terminal PrognosisBaltimore, Maryland – Hospice of Arizona, L.C., along with American Hospice Management, LLC, and their parent corporation, American Hospice Management Holdings, LLC, have agreed to pay $12 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of claims to the Medicare program for ineligible hospice services provided by Hospice of Arizona.
The settlement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division; and Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s region including Arizona.
The Medicare hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from the symptoms, pain and stress of a serious illness) for a terminal illness, and have a life expectancy of six months or less if their disease runs its normal course. Today’s settlement resolves allegations that Hospice of Arizona and its related entities submitted or caused the submission of false Medicare claims between September 1, 2002 and December 31, 2010 for Hospice of Arizona patients that did not have a terminal prognosis of six months or less, or that did but were not eligible for the level of care billed.
The government alleges that Hospice of Arizona and its related entities engaged in certain practices that resulted in the submission of false claims, including pressuring staff to meet admissions and census targets, adopting procedures that delayed and discouraged discharges of ineligible patients, and failing to timely implement an adequate compliance program. As part of the settlement, American Hospice Management Holdings, LLC has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
“The hospice industry relies on the Medicare Trust Fund, and payments for unnecessary services jeopardize its financial viability,” said U.S. Attorney Rod J. Rosenstein.
“This settlement is the result of the Justice Department’s efforts to prevent the misuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons in the final stages of their disease” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division.
“Medicare and taxpayers depend on hospice agencies to provide medically appropriate services to terminally ill patients,” said Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s region including Arizona. “When providers place more importance on the bottom line than on the care of these vulnerable patients, they can expect to face serious penalties.”
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
The allegations settled today arose from a lawsuit filed by a former Hospice of Arizona employee under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The whistleblower in this case will receive $1.8 million. The case is United States ex rel. Momeyer v. Hospice of Arizona, L.C., et al., No. 1:10-cv-280 (D. Md.).
Hospice of Arizona, L.C., American Hospice Management, LLC, and American Hospice Management Holdings, LLC deny the allegations.
United States Attorney Rod J. Rosenstein commended the investigative work performed by the Department of Health and Human Services Office of the Inspector General. Mr. Rosenstein also thanked Assistant U.S. Attorney Roann Nichols and Christelle Klovers of the Department of Justice’s Civil Division, who handled the case for the government.
Hospice of Arizona and Related Entities Pay $12 Million to Resolve False Claims Act AllegationsRead the Press Release
Hospice of Arizona L.C., along with a related entity, American Hospice Management LLC, and their parent corporation, American Hospice Management Holdings LLC, have agreed to pay $12 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of false claims to the Medicare program for ineligible hospice services, the Justice Department announced today.
The Medicare hospice benefit is available for patients who have a life expectancy of six months or less if their disease runs its normal course. Patients admitted to a hospice stop receiving care to cure their illnesses and instead receive medical care focused on providing them with relief from the symptoms, pain, and stress of a terminal illness. Today’s settlement resolves allegations that Hospice of Arizona, and its related entities, submitted or caused the submission of false Medicare claims between Sept. 1, 2002, and Dec. 31, 2010, for Hospice of Arizona patients who did not need end of life care or for whom the hospice billed at a higher reimbursement rate than it was entitled.
The government alleged that Hospice of Arizona and its related entities, engaged in certain practices that resulted in the admission of ineligible patients or inflated bills, including pressuring staff to find more patients eligible for Medicare, adopting procedures that delayed and discouraged staff from discharging patients from hospice when they were no longer appropriate for such services, and not implementing an adequate compliance program that might have addressed these problems. As part of the settlement, American Hospice Management Holdings has agreed to enter into a corporate integrity agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
“This settlement is the result of the Justice Department’s efforts to prevent the misuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons at the end of their lives,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division.
“The hospice industry relies on the Medicare Trust Fund, and payments for unnecessary services jeopardize its financial viability,” said U.S. Attorney for the District of Maryland Rod J. Rosenstein.
“Medicare and taxpayers depend on hospice agencies to provide medically appropriate services to terminally ill patients,” said Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s region including Arizona. “When providers place more importance on the bottom line than on the care of these vulnerable patients, they can expect to face serious penalties.”
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
The allegations settled today arose from a lawsuit filed by a former Hospice of Arizona, L.C. employee, Ellen Momeyer, under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States for false claims and share in any recovery. The whistleblower in this case will receive $1.8 million. The case is United States ex rel. Momeyer v. Hospice of Arizona, L.C., et al., No. 1:10-cv-280 (D. Md.).
This matter was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Maryland, and the Office of the Inspector General for the Department of Health and Human Services.
The claims settled by this agreement are allegations only; there has been no determination of liability.