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3 May 2013
Maryland Man Pleads Guilty to Harboring South Korean WomenRead the Press Release
ALEXANDRIA, Va. – Youn Sok Chang, also known as “Michael Chang,” 35, of Gambrills, Md., pleaded guilty yesterday to Conspiracy to Commit Alien Harboring. Chang, who is originally from South Korea, was the owner and operator of a “doumi” business that provided female escorts to customers at nightclubs in Annandale, Virginia.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C, made the announcement after the plea was accepted by United States District Judge T. S. Ellis, III.
Chang faces a maximum penalty of ten years of imprisonment when he is sentenced on July 26, 2013. Chang also agreed to forfeit $144,000.
In a statement of facts filed with his plea agreement, Chang admitted that since at least December 2010, he has operated a doumi business that provided female companionship to men in Annandale, Virginia. Chang’s doumi business was known at various times as “Da Bong,” “Coco,” and “Romance.” Chang hired illegal aliens from South Korea to work as “doumis,” and he housed these women in an apartment he had rented in Virginia. Various nightclubs in Annandale and Centreville would call Chang and order women for customers. Chang would then transport the women to the various clubs. Generally customers were charged $70 per hour to converse, dance, or sing with the women.
Chang also admitted that he and co-conspirators recruited women from South Korea to serve as doumis and he transported some of the women from Georgia and New York to Virginia. Chang promised one woman he sought to recruit that she could earn $6,000 per month working for Chang. Chang and his coconspirators admitted to harboring at least 27 illegal aliens. One of Chang’s co-conspirators, Taeson Won, previously pleaded guilty to Conspiracy to Commit Alien Harboring and was sentenced to 15 months in federal prison for his role in the offense.
This case was investigated by Homeland Security Investigations of U.S. Immigration and Customs Enforcement. Assistant United States Attorney Michael J. Frank is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Marion Man Charged with Wire Fraud, Money Laundering, and Aggravated Identity TheftRead the Press Release
Randy Beltramea, from Marion, Iowa, has been charged with two counts of wire fraud, three counts of money laundering, and one count of aggravated identity theft. The charges are contained in an Indictment filed on April 19, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, beginning in or around 2009 and continuing through 2011, Beltramea executed a scheme to defraud others of money by soliciting approximately of $125,000 from them falsely representing to them the money would be used to invest in Subway restaurant franchises, when Beltramea actually intended and did use the money in relation to his own real estate development. In connection with this scheme, the Indictment alleges Beltramea laundered the proceeds of the fraud on three occasions to make payments to support his real estate development. The Indictment further alleges that, in inducing one of the victims to invest in Subway franchises, Beltramea used the name of another person, without that person’s permission, on a promissory note purporting to represent that person would repay the victim’s money.If convicted on all counts, Beltramea faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of 72 years’ imprisonment, a $1.5 million fine, $600 in special assessments, and 18 years of supervised release following any imprisonment.
Beltramea appeared on April 30, 2013, in federal court in Cedar Rapids and was released on bond pending trial. Trial in the matter is set for July 1, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-20.
Manassas Woman Sentenced to 18 Months for Illegally Buying and Selling More Than 31 Handguns in 15 DaysRead the Press Release
ALEXANDRIA, Va. – Kimberly Yvette Dinkins, 44, of Manassas, Va., was sentenced to 18 months in prison, followed by two years of supervised release, for dealing firearms without a license.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, made the announcement after the sentencing by United States District Judge Claude M. Hilton.
According to documents filed in connection with the case, Dinkins purchased 31 firearms – all handguns – on three consecutive weekends from Nov. 17 through Dec. 1, 2012. She purchased these firearms at three separate gun shows in Chantilly, Richmond, and Hampton, Va. Dinkins, who was not a federally licensed dealer of firearms, purchased the handguns with the intention of selling them for profit.
Filings associated with the case state that the firearms bought and sold by Dinkins were eventually recovered from juveniles and felons who utilized the firearms during drug trafficking schemes. Specifically, on Nov. 30, 2012, local law enforcement in Prince George’s County, Md., recovered one of the firearms bought and sold by Dinkins from a 20 year old Maryland man during the course of a narcotics investigation. On Dec. 12, 2012, local law enforcement in Prince George’s County recovered a second firearm bought and sold by Dinkins from a 19 year old Maryland man, again during the course of a narcotics investigation. Both Maryland men have pleaded guilty to possession of firearms-related charges in Maryland state court.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
This investigation is being conducted by ATF’s Washington Field Division. Special Assistant United States Attorney L. Rush Atkinson and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum are prosecuting the case on behalf of the United States.Lexington Man Sentenced to 30 Years for Drug, Firearm, and Money Laundering OffensesRead the Press Release
LEXINGTON, KY - A Lexington man, who used proceeds from trafficking cocaine to purchase houses and vehicles, was sentenced to 30 years in prison for multiple federal offenses.
Chief U.S. District Judge Karen C. Caldwell sentenced 35-year-old Marquis Deron Heard on Thursday for distribution of cocaine, possession of a weapon by a convicted felon, and 29 counts of money laundering.
Heard was found guilty by a jury of the charges earlier this year. The evidence at trial established that, between 2008 and 2011, Heard was involved in trafficking large quantities of cocaine, from a Mexican source, into Lexington for distribution. The testimony at trial revealed that Heard had distributed at least 45 kilograms of cocaine.
Evidence at trial showed that Heard reinvested the proceeds of the drug transactions into the purchase of multiple vehicles and residences in both Lexington and Louisville. Heard was also found in possession of firearms at the time of his arrest. The jury convicted Heard in January of 2013 after four days of trial.
Under federal law, Heard must serve at least 85 percent of his prison sentence, and, upon release, will be under the supervision of the U.S. Probation Office for 10 years.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement today.
The investigation was conducted by the Lexington Police Department, the DEA, and the IRS. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney J. Hamilton Thompson.
Leader of $29.1 Million Medicare Fraud Scheme Pleads Guilty in DetroitRead the Press Release
The mastermind of a $29.1 million Medicare fraud scheme involving approximately 30 purported medical clinics pleaded guilty today in Detroit for his role in the scheme.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office; and Special Agent in Charge Erick Martinez of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office.
Sachin Sharma, 37, of Detroit, pleaded guilty before U.S. District Judge Denise P. Hood in the Eastern District of Michigan to one count of conspiracy to commit health care fraud and one count of tax evasion.
According to court documents, Sharma oversaw and directed operations of a broad network of home health, psychotherapy and other purported medical clinics in and around Detroit, including Reliance Home Care LLC, First Choice Home Health Care Services Inc. and Haven Adult Day Care Center LLC. Working with co-conspirators, Sharma created and/or operated these companies for the purpose of billing Medicare for home health and psychotherapy services that Sharma knew were not provided. Court documents show that Sharma paid kickbacks to patient recruiters in order to obtain the information of Medicare beneficiaries, which he then used at these companies to bill Medicare for services that were not medically necessary and/or were not provided to these beneficiaries.
Court documents show that Sharma trained others on techniques to defraud Medicare and to conceal the fraud, and directed employees to fabricate and alter medical documents to give the false impression that home health and psychotherapy services were provided when, in fact, they were not.
Sharma admitted that from 2007 through 2011, he received substantial proceeds of the fraud from these companies, but failed to report these proceeds on his individual federal income tax returns. Sharma admitted that he filed no individual income tax returns from 2007 through 2011.
Court documents allege that between 2007 and 2012, Sharma caused these companies to submit approximately $29,171,017 in claims to Medicare for services that were not medically necessary and/or not provided.
At sentencing, scheduled for Aug. 8, 2013, Sharma faces a maximum penalty of 10 years in prison and a $250,000 fine.
Sachin Sharma’s co-defendants Dana Sharma, Beverly Cooper and Clarence Cooper each previously pleaded guilty to one count of conspiracy to commit health care fraud for their roles in the scheme. Co-defendants Abdul Malik al-Jumail, aka “Tony,” Felicar Williams and Jamella al-Jumail are scheduled for trial on June 10, 2013. Co-defendant Firas Alky remains a fugitive. Defendants are presumed innocent unless and until proven guilty at trial.
This case is being prosecuted by Trial Attorney William G. Kanellis and Deputy Chief Gejaa Gobena of the Criminal Division’s Fraud Section, with assistance from the Department of Justice Tax Division. It was investigated by the FBI, HHS-OIG, and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Kidnapping Suspect Appears in Federal CourtRead the Press Release
Jackson, Miss. – Shamaruis Ruffin, 25, and Wanda Faye Dancy, 51, appeared before U.S. Magistrate Judge Keith Ball today pursuant to a criminal complaint charging her with kidnapping, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
The court found that Ruffin and Dancy should be detained pending a preliminary hearing and a detention hearing scheduled for May 9, 2013, at 9:00 a.m.
According to the complaint, on May 2, 2013, Ruffin was asked by Jesse Mae Brown Pollard if she would ride with her and babysit for her. Ruffin agreed to do so.Pollard drove to the East Kemper Elementary School. Ruffin overheard Pollard talking to Wanda Dancy on the telephone (Dancy is a secretary at East Kemper Elementary School). Ruffin heard Dancy telling Pollard where the victim was located in the school and what she was wearing. Ruffin was told to go to the library in the school and tell Mrs. Simmons that she was there to get the victim and that “Mrs. Wanda said it was alright”. Ruffin did as she was directed. On the way out of the school, Ruffin passed by the office and Dancy waved at her and smiled. Ruffin and the victim got in the vehicle with Pollard and drove away.
Ruffin, Pollard and the victim drove down several roads in Alabama. At some point, Ruffin wanted to get out of the car so they stopped and Ruffin got out of the vehicle. Ruffin contacted an acquaintance to pick her up. The acquaintance picked Ruffin up somewhere near Interstate 20/59 East of Livingston, Alabama and Ruffin returned home.
The penalty for kidnapping is a minimum of 20 years and a maximum of life in prison. The Federal Bureau of Investigation, along with Mississippi Bureau of Investigation, Mississippi Highway Patrol, Kemper County Sheriff’s Office and Lauderdale County Sheriff’s Office conducted the investigation in this case.
The public is reminded that a Criminal Complaint is an accusation and a defendant is presumed innocent until proven guilty in a court of law.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Kent, Washington Father and Stepson Indicted on Drug and Gun CrimesRead the Press Release
A Kent, Washington man and his stepson were arrested this morning following their indictment on seven criminal counts related to gun sales and controlled substance distribution, announced U.S. Attorney Jenny A. Durkan. The indictment alleges that MARK E. BRYANT, 49, and his step-son ANDREW GAGLEY, 30, illegally distributed Demerol. BRYANT is also charged in four different counts with distributing oxycontin, hydrocodone, and morphine on three different days in September and October 2012. BRYANT is also charged with selling a firearm to a drug user. GAGLEY is separately charged with selling a firearm to a felon and illegal alien. Both men will appear in U.S. District Court in Seattle today at 1:30.
BRYANT owns Westside Guns and East Valley Auto Rebuild on South 222nd Street in Kent. On multiple occasions BRYANT sold guns or drugs to persons working with law enforcement on the property of his Kent gun shop. GAGLEY also participated in gun and drug sales in and near the business. On October 26, 2012, GAGLEY allegedly sold a Colt .556 caliber, semi-automatic rifle to a person working with law enforcement. GAGLEY allegedly made the sale knowing that the person was prohibited from purchasing firearms because the buyer was in the U.S. illegally and was a convicted felon. Just two days before, on October 24, 2012, BRYANT illegally sold a Firestar .45 pistol handgun to a person he knew to be a drug user. As a Federal Firearms Licensee, BRYANT is required to file paperwork on gun sales and to maintain acquisition records on all firearms received and transferred to other persons.The arrests today are the culmination of an eight month investigation by the South Sound Task Force. The South Sound Task Force is comprised of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lakewood Police Department (LPD) and the Washington State Liquor Control Board (WSLCB); with assistance from U.S. Customs and Border Protection’s Office of Air and Marine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Each of the crimes charged are punishable by up to twenty years in prison and three years of supervised release.
The case is being prosecuted by Assistant United States Attorney Ye-Ting Woo.
Justice Department Expands Its Barrier-Free Health Care Initiative with Settlement with Burke Health and Rehabilitation Center in Burke, VirginiaRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement agreement with another health care provider, Medical Facilities of America XXIX Limited Partnership, t/a Burke Health and Rehabilitation Center in Burke, Va., to ensure that they provide effective communication to people who are deaf or have hearing loss. This settlement resolves allegations that Burke refused to provide a sign language interpreter for Melvin Warden, who is deaf, when a request was made on his behalf by Inova Fairfax via the AllScripts/Ecin system. This settlement addresses the requirements of the Americans with Disabilities Act (ADA) for health care providers, such as hospitals, rehabilitation centers, medical clinics, nursing homes and doctor’s offices, to provide effective communication to people who are deaf or have hearing loss in the provision of medical services.
The Department of Justice’s Barrier-Free Health Care Initiative is a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorney’s offices.
To date, the department has entered into seven similar settlements with eight health care providers from across the United States regarding communication with people who are deaf or have hearing loss. In addition, the department reached four agreements in five weeks with health care providers regarding discrimination against individuals with HIV.
“Disability-based discrimination in health care is illegal under the Americans with Disabilities Act and may further compromise a person’s health when it limits a person’s full access to medical services,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “The Department of Justice is committed to ensuring that all persons with disabilities are provided with equal access to health care services.”
Title III of the ADA requires health care providers to ensure that their communications with people with hearing disabilities are as effective as their communications with people without disabilities. To meet this obligation, health care providers, as well as other public accommodations, must provide auxiliary aids and services unless doing so would cause an undue burden to the facility or fundamentally alter the service being provided. The health care provider may not charge the individual with a disability for the cost of the auxiliary aid or service, including a sign language interpreter.
Under this settlement agreement, Burke will ensure effective communication, including providing qualified sign language interpreters, free of charge, to individuals who are deaf or who have hearing loss; establish a contract for the provision of sign language interpreter services; ensure that, for the duration of a patient’s treatment at Burke, at least one qualified sign language interpreter is available or on call for a patient or companion who is deaf or has hearing loss and whose primary means of communication is sign language; and train all staff on the provisions of the effective communication policy and procedures and the effective communication requirements of the ADA.
The department has a number of publications available to assist entities to comply with the ADA, including: a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, www.ada.gov/hospcombr.htm ; publications specific to health care providers, HIV discrimination, and effective communication with individuals with hearing and vision disabilities; and publications about tax credits available for providing access. For more information on the ADA and to access these publications, visit www.ada.gov . The Barrier-Free Health Care Initiative settlement agreements may be found at www.ada.gov/settlemt.htm . For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm . Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may also call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may also be filed by email to [email protected] .
Judge Sentences Sharon Tax Evader to Five Years Probation with 14 Months ConfinementRead the Press Release
PITTSBURGH - A resident of Sharon, Pa., has been sentenced in federal court to 60 months probation, including 7 months confinement at Renewal, Inc., followed by 7 months home confinement, a $5,000 fine and $400 special assessment on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Joseph E. Gump.
According to information presented to the court, Gump filed federal income tax returns for the calendar years 2003 through 2006, wherein he stated in each year that the amounts of his taxable income and tax were "none," when his form W-2 wage income in those years ranged from $59,455.49 to $84,267.70, and the tax loss to the IRS ranged from $3,900 to $13,631.
Prior to imposing sentence - in which he departed downward from the Sentencing Guidelines range due to Gump's recent stroke and affliction with two types of cancer - Judge McVerry stated that although Gump was a first offender, it was only the first time he had been caught, having "thumbed his nose" at other taxpayers and scoffed at the Tax Code for many years.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Gump.
Joshua Emil Runion Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 1, 2013, in Helena, after a federal district court trial before Senior U.S. District Judge Charles C. Lovell, JOSHUA EMIL RUNION, a 41-year-old resident of Oregon, was found guilty of counterfeiting U.S. currency. Sentencing is set for September 12, 2013. He is currently detained.
Assistant U.S. Attorneys Bryan R. Whittaker and Zeno B. Baucus prosecuted the case for the United States.
RUNION faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Secret Service.
International Cybercriminal Extradited from Thailand to the United StatesRead the Press Release
Algerian national Hamza Bendelladj, aka “Bx1,” has been extradited from Thailand to the United States to face charges in Atlanta for allegedly playing a critical role in developing, marketing, distributing and controlling “SpyEye,” a pernicious computer virus designed to steal unsuspecting victims’ financial and personally identifying information.
The charges were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia and FBI Special Agent in Charge Mark F. Giuliano of the Atlanta Field Office.
Bendelladj, 24, has been charged in a 23-count indictment that was returned on Dec. 20, 2011, and unsealed today. The indictment charges Bendelladj with one count of conspiring to commit wire and bank fraud, 10 counts of wire fraud, one count of conspiracy to commit computer fraud and 11 counts of computer fraud. Bendelladj is scheduled to be arraigned today in U.S. District Court in the Northern District of Georgia before U.S. Magistrate Judge Janet F. King.
On Jan. 5, 2013, Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, while he was in transit from Malaysia to Egypt. He was extradited from Thailand to the United States on May 2, 2013.
“Hamza Bendelladj has been extradited to the United States to face charges of controlling and selling a nefarious computer virus designed to pry into computers and extract personal financial information,” said Acting Assistant Attorney General Raman. “The indictment charges Bendelladj and his co-conspirators with operating servers designed to control the personal computers of unsuspecting individuals and aggressively marketing their virus to other international cybercriminals intent on stealing sensitive information. The extradition of Bendelladj to face charges in the United States demonstrates our steadfast determination to bring cybercriminals to justice, no matter where they operate.”
“No violence or coercion was used to accomplish this scheme, just a computer and an Internet connection,” said U.S. Attorney Yates. “Bendelladj’s alleged criminal reach extended across international borders, directly into victims’ homes. In a cyber-netherworld, he allegedly commercialized the wholesale theft of financial and personal information through this virus which he sold to other cybercriminals. Cybercriminals take note; we will find you. This arrest and extradition demonstrates our determination to bring you to justice.”
“The FBI has expanded its international partnerships to allow for such extraditions of criminals who know no borders,” said FBI Special Agent in Charge Giuliano. “The federal indictment and extradition of Bendelladj should send a very clear message to those international cyber-criminals who feel safe behind their computers in foreign lands that they are, in fact, within reach.”
According to court documents, the SpyEye virus is malicious computer code or “malware,” which is designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs and other personally identifying information. The SpyEye virus facilitates this theft of information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the computers through command and control (C&C) servers. Once a computer is infected and under the cybercriminals’ control, a victim’s personal and financial information can be surreptitiously collected using techniques such as “web injects,” which allow cybercriminals to alter the display of web pages in the victim’s browser in order to trick them into divulging personal information related to their financial accounts. The financial data is then transmitted to the cybercriminals’ C&C servers, where criminals use it to steal money from the victims’ financial accounts.
According to court documents, from 2009 to 2011, Bendelladj and others allegedly developed, marketed and sold various versions of the SpyEye virus and component parts on the Internet and allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information. Bendelladj allegedly advertised the SpyEye virus on Internet forums devoted to cybercrime and other criminal activities. In addition, Bendelladj allegedly operated C&C servers, including a server located in the Northern District of Georgia, which controlled computers infected with the SpyEye virus. One of the files on Bendelladj’s C&C server in the Northern District of Georgia allegedly contained information from approximately 253 unique financial institutions.
If convicted, Bendelladj faces a maximum sentence of up to 30 years in prison for conspiracy to commit wire and bank fraud; up to 20 years for each wire fraud count; up to five years for conspiracy to commit computer fraud; up to five or 10 years for each count of computer fraud; and fines of up to $14 million dollars.
The public is reminded that the indictment contains only allegations, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI and is being prosecuted by Special Assistant U.S. Attorney Nicholas Oldham and Assistant U.S. Attorney Scott Ferber of the Northern District of Georgia, and Trial Attorney Carol Sipperly of the Criminal Division’s Computer Crime and Intellectual Property Section. Valuable assistance was provided by the Criminal Division’s Office of International Affairs, which worked with its international counterparts to effect the extradition.
Hampton Man Sentenced for His Participation in Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Sammie Royal, 41, of Hampton, Va., was sentenced Thursday to 262 months in prison, followed by five years supervised release, after pleading guilty to participating in a conspiracy to distribute cocaine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Thomas Townsend, Chief of the Hampton Police Division, made the announcement after sentencing by United States District Judge Mark S. Davis.
According to court records, between 2006 and 2011, Royal was involved in a conspiracy to possess with the intent to distribute and to distribute more than 15 kilograms of cocaine some of which was obtained through a co-conspirator in Texas. Royal was in possession of a large amount of cocaine which was recovered during execution of a search warrant at a residence on Shell Road in Hampton in October, 2007. Court records indicate that Royal was a felony “career offender” with drug, firearm, and abduction convictions dating back to 1994.
This case was investigated by the Hampton Police Division, the Drug Enforcement Administration, and the office of ICE’s Homeland Security Investigations (HSI). Special Assistant United State Attorney Timothy R. Murphy prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Guatemalan Pseudoephedrine Traffickers Plead GuiltyRead the Press Release
ALEXANDRIA, Va. – Edgar Leonel Estrada-Morales, 56, of Guatemala City, Guatemala, pleaded guilty today to conspiring to distribute pseudoephedrine for unlawful importation into the United States and to aid and abet the manufacture of methamphetamine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Derek S. Maltz, Special Agent In Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after the plea was accepted by United States District Judge T.S. Ellis, III.
Estrada-Morales, along with his nephew, Victor Estrada-Paredes, were indicted on February 3, 2011, by a federal grand jury on a charge of conspiring to distribute pseudoephedrine (a chemical used in the manufacture of methamphetamine) for unlawful importation into the United States and to aid and abet the manufacture of 500 grams or more of methamphetamine. Estrada-Paredes previously pleaded guilty to the indictment on April 25, 2013, before Judge Ellis. Both Estrada-Morales and Estrada-Paredes face a maximum penalty of life in prison when they are sentenced on August 2, 2013, and July 19, 2013, respectively.
In a statement of facts filed with his plea agreement, Estrada-Morales admitted to selling nearly 5,000 pseudoephedrine pills to an individual whom he believed was involved in a methamphetamine production operation based in Houston, Texas. This individual was, in reality, a DEA cooperating witness. Estrada-Morales also introduced this individual to his nephew, Estrada-Paredes, who was also involved in this pseudoephedrine trafficking operation. According to the indictment, Estrada-Morales sold pseudoephedrine to different groups, including the “La Familia” Mexican drug cartel that sold methamphetamine in the United States.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Michael P. Ben’Ary, of the Office’s National Security and International Crime Unit, is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Georgia Man Sentenced for Possession of Child PornographyRead the Press Release
BUFFALO, U.S.--Attorney William J. Hochul, Jr. announced today that Stanley R. Tarnowski, 58 of Fayetteville, GA, who was convicted of possession of child pornography, was sentenced to 60 months in prison and five years of supervised release by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that on June 14, 2011, the defendant attempted to enter the United States from Canada and was pulled over for a secondary inspection. Law enforcement officers discovered videos and images of child pornography on Tarnowski's laptop computer. Further investigation determined the videos and images were transmitted over the internet through the use of e-mail. Some of the images depicted children younger than 12 years old and contained depictions of violence.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.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent-in-Charge.Former VP of Business Development for Government Contractor Found Guilty of 14 Counts of Unauthorized Access to A Protected ComputerRead the Press Release
ALEXANDRIA, Va. – Robert Edwin Steele, 38, of Alexandria, Virginia, was convicted today by a federal jury of 14 counts of unauthorized access to a protected computer.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the Federal Bureau of Investigation’s Washington Field Office, made the announcement after the verdict was accepted by United States District Judge Gerald Bruce Lee.
Steele was specifically found guilty of two misdemeanor and twelve felony violations of Title 18, United States Code, Section 1030(a)(2). When he is sentenced on July 19, 2013, Steele faces a maximum term of imprisonment of one year on each of the two misdemeanor counts and five years on each of the felonies.
Steele was indicted on December 13, 2012, on fourteen counts of unauthorized access to a protected computer. According to court records and evidence at trial, Steele worked at multiple companies involved in government contracting. On December 15, 2010, Steele resigned from one government contracting firm, described in court documents as “Company A,” due to a dispute about his compensation with Company A and “Company B,” another government contracting firm that was in the process of acquiring Company A.
When Steele left Company A on December 15, 2010, he provided verbal and written assurances to officials of Company A that he would not access its systems after his departure, and even urged them to shut down his existing accounts. That same day, however, Steele began logging into Company A’s email systems using a secret administrative account which he learned about during his work for Company A. Steele immediately began downloading hundreds of proprietary documents using this administrative account.
Shortly after resigning, Steele joined another government contractor, “Company C,” that directly competed with Companies A and B for government contracts. At Company C, Steele worked as “Director of Law Enforcement” and prepared bids for government contracts on law enforcement projects. In that position, Steele undercut Company A’s bid on a government contract by approximately $100,000, while downloading Company A’s documents on the same contract. Although his attempt to win the bid failed, Steele continued to methodically sift through thousands of valuable documents stored on computers for Company A.
From December 15, 2010 until September 2, 2011, when agents for the Federal Bureau of Investigation seized equipment used by Steele to access the account, Company A’s system had been accessed by their former employee more than 79,000 times.
This case was investigated by the Federal Bureau of Investigation’s Washington Field Office. The Office of the Inspector General for the General Services Administration provided additional assistance.
Assistant United States Attorney Alexander T.H. Nguyen and Special Assistant United States Attorney Jonathan Keim are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former St. Joseph Jail Employee Indicted for Illegally Using Food Stamp Benefits, Distributing HydrocodoneRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former civilian employee of the St. Joseph, Mo., Police Department has been indicted by a federal grand jury for distributing hydrocodone and for illegally using Electronic Benefit Transfer (EBT) cards.
Kathleen “Kat” P. Blakely-Polk, 49, of St. Joseph, was charged in an eight-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, May 1, 2013. That indictment was unsealed and made public upon Blakely-Polk’s arrest and initial court appearance.
Blakely-Polk was employed as a booking desk officer at the St. Joseph Police Department Law Enforcement Center during the time of the alleged violations. The federal indictment charges her with five counts of illegally using EBT cards and three counts of distributing hydrocodone.
The indictment alleges that Blakely-Polk illegally used an EBT card on May 2 and May 3, 2011.
The indictment alleges that Blakely-Polk distributed hydrocodone on June 30, 2011 and that she illegally used an EBT card on July 1, 2011.
The indictment alleges that Blakely-Polk distributed hydrocodone on July 21, 2011 and that she illegally used an EBT card on July 23, 2011.
The indictment alleges that Blakely-Polk distributed hydrocodone on Aug. 4, 2011 and that she illegally used an EBT card on Aug. 5, 2011.
The indictment alleges that Blakely-Polk used federal benefits – specifically, benefits under the Supplemental Nutrition and Assistance Program (SNAP), formerly known as the food stamp program – in an unauthorized manner. In 1998, the USDA (through the Missouri Division of Social Services) converted from a traditional paper food stamp coupon system to the EBT card system. Instead of being issued food stamp coupons, SNAP recipients were issued EBT cards that could be used at participating retailers. EBT cards, which are similar to credit and debit cards, are linked to a recipient’s benefit account, and credited with the recipient’s allocated benefits on a monthly basis. The recipient can then redeem the benefits at participating authorized retailers. The redemption of SNAP benefits is done in a fashion similar to a credit or debit card transaction.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jalilah Otto. It was investigated by the Buchanan County, Mo., Sheriff’s Department, the U.S. Department of Agriculture, the St. Joseph, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Consultant for Willbros International <br /> Sentenced in Connection with Foreign Bribery SchemeRead the Press Release
A former consultant for Willbros International Inc. (Willbros International), a subsidiary of Houston-based Willbros Group Inc. (Willbros), was sentenced today for his role in a conspiracy to pay more than $6 million in bribes to government officials of the Federal Republic of Nigeria and officials from a Nigerian political party, Acting Assistant Attorney General Mythili Raman of the Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office announced today.
Paul G. Novak, 46, was sentenced today to serve 15 months in prison by U.S. District Judge Simeon T. Lake III of the Southern District of Texas. The court took into consideration Novak’s cooperation, and the sentence was consistent with the government’s recommendation. In addition to the prison sentence, Novak was ordered to pay a $1 million fine and to serve two years of supervised release following his release from prison. In sentencing Novak, the court took into consideration the assistance Novak provided the government in ongoing investigations.
Novak pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one substantive count of violating the FCPA. Novak admitted that from approximately late-2003 to March 2005, he conspired with others to make a series of corrupt payments totaling more than $6 million to various Nigerian government officials and officials from a Nigerian political party to assist Willbros and its joint venture partner, a construction company based in Mannheim, Germany, in obtaining and retaining the Eastern Gas Gathering System (EGGS) Project, which was valued at approximately $387 million. The EGGS project was a natural gas pipeline system in the Niger Delta designed to relieve existing pipeline capacity constraints.
According to court records, Novak and his alleged co-conspirators Kenneth Tillery, Jason Steph, Jim Bob Brown, three employees from Willbros’s joint venture partner and others agreed to make the corrupt payments to, among others, government officials from the Nigerian National Petroleum Corporation, the National Petroleum Investment Management Services, a senior official in the executive branch of the federal government of Nigeria, and members of a Nigerian political party. Court documents state the bribes were paid to assist in obtaining and retaining the EGGS contract and additional optional scopes of work.
According to information contained in plea documents, to secure the funds for those corrupt payments, Novak and his alleged conspirators caused Willbros West Africa Inc., a subsidiary of Willbros International, to enter into so-called “consultancy agreements” with two consulting companies Novak represented in exchange for purportedly legitimate consultancy services. In reality, those consulting companies were used to facilitate the payment of bribes.
In addition to Novak, to date, two Willbros employees have pleaded guilty for their roles in the EGGS bribery scheme, and Willbros has entered into a deferred prosecution agreement with the government:
- On May 14, 2008, Willbros Group Inc. and Willbros International entered into a deferred prosecution agreement with the government and agreed to pay a $22 million penalty, in connection with the company’s payment of bribes to government officials in Nigeria and Ecuador. On March 30, 2012, the government moved to dismiss the charges following Willbros’s satisfaction of its obligations under the deferred prosecution agreement, and on April 2, 2012, the Court granted the United States’ motion.
- On Sept. 14, 2006, Jim Bob Brown, a former Willbros executive, pleaded guilty to one count of conspiracy to violate the FCPA, in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract and in connection with his role in making corrupt payments in Ecuador. After a reduction for cooperation, Brown was sentenced on Jan. 28, 2010, to 12 months and one day in prison, two years of supervised release and a $17,500 fine.
- On Nov. 5, 2007, Jason Steph, also a former Willbros executive, pleaded guilty to one count of conspiracy to violate the FCPA, in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract. After a reduction for cooperation, Steph was sentenced on Jan. 28, 2010, to 15 months in prison, two years of supervised release and a $2,000 fine.
Kenneth Tillery was charged, along with Novak, for his alleged role in the bribery scheme in an indictment unsealed on Dec. 19, 2008. According to the indictment, Tillery was a Willbros International employee and executive from the 1980s through January 2005. From 2002 until January 2005, Tillery served as executive vice president and, later, as president of Willbros International. Tillery remains a fugitive. The charges against Tillery are merely accusations, and he is presumed innocent unless and until proven guilty.
The case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad. Significant assistance was provided by the Criminal Division’s Office of International Affairs. This case is being prosecuted by Senior Trial Attorney Laura N. Perkins of the Criminal Division’s Fraud Section.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Agriprocessors' Manager Hosam Amara to Appear in Court Following Extradition from IsraelRead the Press Release
Former Agriprocessors’ manager Hosam Amara is scheduled to appear today in federal court in Cedar Rapids following his extradition from Israel. According to Israeli authorities, Amara was arrested in Israel on March 31, 2011.Hosam Amara, age 48, was first indicted on November 20, 2008. A July 16, 2009, superseding indictment charged Amara with one count of conspiracy to harbor undocumented aliens for profit, twenty-four counts of harboring and aiding abetting the harboring of undocumented aliens for profit, one count of conspiracy to commit document fraud, and one count of aiding and abetting document fraud.
If convicted, Amara faces up to ten years’ imprisonment on each of the conspiracy to harbor undocumented aliens for profit charge and the harboring undocumented aliens for profit charges, up to five years’ imprisonment on the conspiracy to commit document fraud charge, and up to ten years’ imprisonment on the document fraud charge. In addition, if convicted, Amara faces fines, special assessments, and supervised release following any imprisonment.
Amara’s first appearance in federal court in Cedar Rapids for an initial appearance and arraignment is set for today at 1:30 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorneys Peter Deegan, C.J. Williams, and Matthew Cole. The investigation has been led by Homeland Security Investigations with assistance from the Federal Bureau of Investigation. Prior assistance was provided by the United States Marshals Service; United States Postal Inspections Service; Iowa Department of Public Safety; Iowa Department of Transportation; Federal Protective Service; Internal Revenue Service – Criminal Investigations; United States Department of Labor; Public Health Service; United States Department of Agriculture; United States Environmental Protection Agency; Iowa Department of Natural Resources; Drug Enforcement Administration; Waterloo Police Department; and Postville Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 08-1324 LRR.
Federal Court in California Shuts Down Tax PreparerRead the Press Release
A federal court in Los Angeles has entered an order permanently barring Simon Jenkins from preparing federal income tax returns and other tax-related documents for others, the Justice Department announced today. Jenkins, who operated under the business name “Jenkins Tax Service” in Gardena , Calif., consented to the civil injunction order, which was signed by U.S. District Judge Dean D. Pregerson.
The government complaint, filed on Feb. 1, 2013, alleged that Jenkins engaged in a pattern of claiming false deductions, false credits, false expenses, and false claims for refunds on behalf of his customers for the tax years 2004 through 2008, causing the government to incur a tax loss of $238,024 for those years.
In addition to barring Jenkins from preparing tax returns, Judge Pregerson also required Jenkins to contact his customers and inform them of the entry of the Permanent Injunction within thirty days.
As noted in the complaint, in a prior related criminal proceeding, Jenkins pleaded guilty to one count of aiding and assisting in the preparation and presentation of false income tax returns. According to the plea agreement, filed in the criminal case on June 15, 2011, Jenkins agreed to enter into a binding civil injunction, barring him for life from aiding or assisting in the preparation of federal income tax returns for anyone other than himself and his legal spouse, and barring him from representing persons before the Internal Revenue Service.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Simon Jenkins
Complaint for Permanent Injunction and Other Relief (PDF)
Stipulated Order of Permanent Injunction (PDF)East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
Corey A. Cotton, 33, of East Saint Louis, IL, was sentenced on May 2, 2013, in federal district court, in East St. Louis, on one count of unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Cotton was sentenced to 71 months in prison, three years’ supervised release, a $100 special assessment, and a $200 fine. Cotton, who previously pled guilty on December 14, 2012, also agreed to the forfeiture of the firearm. The charges stem from a September 27, 2011, incident when law enforcement officials attempted to conduct a traffic stop on Cotton in East St. Louis. Initially, Cotton sped off. After coming to a stop several blocks away, he exited the vehicle, fleeing from officers on foot. While running from officers, Cotton discarded a firearm in a wooded area, which was recovered by pursuing officials.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Detroit Man Pleads Guilty in Heroin Trafficking SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Detroit, Mich., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Chivon Buttrom, 32, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Buttrom, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Judge Gibson scheduled sentencing for Oct. 23, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 20 years in prison and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Buttrom. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Denver Strip Club DJ Sentenced to Prison for Possession of Child PornographyRead the Press Release
DENVER – Walden Allen Schmidt, age 46, of Denver, Colorado, was sentenced yesterday by U.S. District Court Judge Robert E. Blackburn to serve 97 months (over 8 years) in federal prison for possession of child pornography, U.S. Attorney John Walsh and FBI Denver Acting Special Agent in Charge Steven Olson announced. Judge Blackburn ordered Schmidt to serve 10 years on supervised release at the conclusion of his prison sentence. He was also ordered to pay $5,000 to victims of his crimes. Schmidt appeared at the sentencing hearing free on bond, but was remanded into custody at the hearing’s conclusion.
On April 9, 2012, Schmidt was indicted by a federal grand jury in Denver on child exploitation charges. On December 20, 2012, he pled guilty to possession of child pornography. He was sentenced on Thursday, May 2, 2013.
According to court records, including the stipulated facts contained in the plea agreement, Schmidt obtained over 13, 000 images of child pornography using peer-to-peer file-sharing software. He also distributed child pornography to an undercover FBI agent. Schmidt worked as a DJ at a local strip club.
“People from all walks of life have been caught possessing child pornography,” said U.S. Attorney John Walsh. “Regardless of their station in life, if they exploit children they will be held accountable.”
“The nation’s children are our most vulnerable victims,” said FBI Denver Acting Special Agent in Charge Steven Olson. “The FBI remains committed to working with our state and local law enforcement partners and the United States Attorney’s Office to aggressively investigate all cases involving the sexual exploitation of children.”
This case was investigated by the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant U.S. Attorney Ryan Bergsieker.
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 United States 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 to 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."
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Danville Man Convicted of Conspiracy to Commit MoneyRead the Press Release
Laundering And Harboring, Transporting, And Employing Illegal Aliens
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Wally Nguyen, age 48, of Danville was convicted yesterday in federal court for conspiracy to commit money laundering and to harbor, transport, and employ illegal aliens, as well as separate counts of transporting illegal aliens, harboring illegal aliens, and aiding and abetting the unlawful employment of illegal aliens. The offenses of conviction were committed from January 2004 through January 2008.
The jury also returned a special verdict ordering Wally Nguyen to forfeit $50,000 to the United States, as well as two properties located in Danville that were used to facilitate the crimes.
The indictment charged that Wally Nguyen engaged in a conspiracy whereby his conduct acted to promote and conceal the profits of the underlying criminal activity. That underlying criminal activity involved the operation of a temporary employment agency known as “H&T” which recruited, employed, transported, and harbored an illegal work force. “H&T” provided hundreds of illegal temporary employees to various businesses throughout the Middle District of Pennsylvania over a period of several years. In furtherance of the conspiracy, Nguyen knowingly provided housing and transportation for the illegal workers and paid the illegal work force in cash on a weekly basis. H also engaged in a scheme to defraud the Commonwealth of Pennsylvania and the United States Government of revenue. The scheme included the filing of false Pennsylvania tax documents and the avoidance of reporting requirements.
Wally Nguyen faces a statutory maximum term of 25 years and fines in the amount of $750,000. A sentencing date has not been scheduled.
The charges resulted from a joint investigation by the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Department of Labor, United States Department of Health and Human Services - Office of the Inspector General, and the Pennsylvania State Police.
The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
Curtis Keith Tichenor Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 2, 2013, in Missoula, after a federal district court trial before Chief U.S. District Judge Dana L. Christensen, CURTIS KEITH TICHENOR, a 52-year-old resident of Helena, was found guilty of robbery, possessing and brandishing a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm. Sentencing is set for August 7, 2013. He is currently detained.
At trial, the following evidence and testimony was presented to the jury.
On the morning of July 14, 2012, TICHENOR robbed the Silver Dollar Bar in Missoula. He entered the bar wearing a blue coat and a mask. He pointed a handgun at the bartender and demanded all of the money from the till. The bartender complied with TICHENOR's demand and gave him approximately $4,775.
TICHENOR left the bar and got into his blue Camaro, which was parked in an alley to the Southwest of the Silver Dollar. His girlfriend was a passenger in the car and TICHENOR told her he had just committed a robbery. He threw the gun, mask, and money into her lap. TICHENOR left Missoula by way of the Orange Street on-ramp and drove west toward Spokane on Interstate 90. Several miles outside of Missoula, he pulled over and hid the coat and mask under some bushes alongside the road.
After he hid the coat and mask, TICHENOR and his girlfriend traveled to Spokane, where they stayed for a few days. TICHENOR used money from the robbery to buy methamphetamine and heroin, which both he and his girlfriend used while they stayed at a hotel in Spokane. After spending a few days in Spokane, TICHENOR and his girlfriend returned to Helena, where both of them lived at that time.
When he got back to Helena, TICHENOR hid the remaining robbery proceeds at his brother's residence. After TICHENOR got arrested in Helena on July 23, 2012, he asked his brother to retrieve the money, give some to his girlfriend, and put some on his books at the Helena jail.
On July 23, 2012, TICHENOR and his girlfriend were arrested outside a hotel in Helena. TICHENOR was in possession of a firearm, which witnesses identified as the same gun used during the robbery of the Silver Dollar Bar nine days earlier.
In late October 2012, information on TICHENOR was provided information to law enforcement officers about the robbery in Missoula. Based on that information, the officers were able to find the coat and mask that TICHENOR had hidden after the robbery along I-90 west of Missoula. The bartender from the Silver Dollar Bar identified the coat and mask as the items worn by the perpetrator of the robbery. The bartender also identified the gun seized from TICHENOR following his arrest in Helena on July 23, 2012, as the gun used during the robbery. The firearm was a entury Arms, model P-64, 9 mm handgun.
Assistant U.S. Attorney Timothy J. Racicot prosecuted the case for the United States.
TICHENOR faces possible penalties of 20 years in prison, a $250,000 fine and 5 years supervised release on the robbery count; a mandatory minimum of 7 years to life in prison, a $250,000 fine, and 5 years supervision consecutive to other sentences on other counts for the possessing and brandishing a firearm in furtherance of a crime of violence count; and 10 years in prison, a $250,000 fine and 3 years supervised release on the felon in possession of a firearm count.
The investigation was a cooperative effort between the Missoula Police Department, the Helena Police Department, the Lewis & Clark County Sheriff's Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Businessmen Convicted in Securities Fraud SchemeRead the Press Release
BOSTON – The chief executive officer of California-based Vida Life International, Ltd., and a self-described financing consultant to small and emerging companies were convicted today for their role in a securities fraud scheme.
John C. Jordan, 62, of Cameron Park, California, and James Prange, 62, of Greenbush, Wisconsin, were convicted following an eight-day jury trial. Jordan was convicted of conspiracy to commit securities fraud, four counts of wire fraud, and mail fraud. Prange was convicted of three counts of conspiracy to commit securities fraud and eight counts of wire fraud for his role in transactions involving Vida Life and two other publicly- traded companies, China Wi-Max Communications, Inc., and the Small Business Company, Inc. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for August 8, 2013.
Last month, executives of those companies pleaded guilty to conspiracy to commit security fraud for their roles in the scheme. Steven Berman, 50, of Hillsboro, Ohio was the chief executive officer of China Wi-Max; Karen Person, 62, of Las Vegas, Nevada, was the chief executive officer of the Small Business Company, Inc.; and Richard Kranitz, 69, of Grafton, Wisconsin, was a board member and lawyer for China Wi-Max.
The defendants were convicted for their roles in a conspiracy to pay secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in publicly-traded companies that traded on the over-the-counter securities market. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents. What the defendants did not know was that the purported investment fund representative was actually an undercover agent with the Federal Bureau of Investigation.
The convictions followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small publicly-traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
“It matters not whether the stock is trading at pennies per share or hundreds of dollars. Fraud is fraud and will be stringently regulated by federal authorities,” said United States Attorney Carmen M. Ortiz. “We will continue to work with our counterparts to identify and prosecute individuals engaged in schemes with the aim to manipulate the securities market and defraud investors.”
“Boston FBI agents initiated an undercover operation purposefully aimed at identifying corporate insiders engaged in the illegal manipulation of stock prices,” said Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Division. “These convictions send a message that no one who is engaged in illegal activity while participating in the markets, including CEO’s, traders, fund managers, equities analysts, lawyers and publicists, is exempt from justice. The FBI’s use of undercover operations and other investigative tools to protect the integrity and transparency of financial markets will continue. During these difficult economic times, now, more than ever, the well-being of the global economy rests on the diligent enforcement of laws designed to ensure the fair and orderly operation of the capital markets.”
The statutory maximum penalties for the securities fraud conspiracy charges are 25 years in prison, followed by three years of supervised release and a $250,000 fine and the statutory maximum penalties for mail and wire fraud are 20 years in prison, followed by three years of supervised release and a $250,000 fine.The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these charges, and charges against 10 other defendants who participated in the kickback scheme. Six of the defendants have already pleaded guilty to charges arising out of their involvement in the scheme. The Financial Industry Regulatory Authority (“FINRA”) provided assistance with the trial.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, announced the conviction today. The case was prosecuted by Assistant U.S. Attorneys Sarah E. Walters, Stephen E. Frank, and Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Brooksville Woman Admits Defrauding State and Federal Assistance ProgramsRead the Press Release
COVINGTON, KY - A Brooksville, KY., woman admitted in federal court she concealed information from federal authorities, for several years, in order to fraudulently obtain state and federal benefits.
Patty Jo Ruf, 42, pleaded guilty Thursday to one count of Supplemental Security Income (SSI) fraud.
Ruf admitted she intentionally concealed her true living arrangement from agents with the Social Security Administration (SSA) in order to collect SSI and Medicaid benefits, on behalf of her children, in amounts greater than she was entitled to receive.
According to the plea agreement, Ruf repeatedly told agents she had separated from her husband and was not sharing living expenses. In reality, Ruf lived with her husband and received financial support from him. Had SSA agents been aware of the true living arrangement, the eligibility of Ruf’s children would have been greatly reduced. The fraud spanned from November 1999 until December 2010.
SSI is an income assistance program designed to provide financial assistance to elderly and disabled individuals who meet the program’s eligibility requirements. Kentuckians who are eligible for SSI also qualify for benefits under the Medicaid Program.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Guy P. Fallen, Special Agent in Charge, Social Security Administration, Office of Inspector General, jointly announced the guilty plea.
The investigation was conducted by the SSA, Office of Inspector General. Assistant U.S. Attorney Chris Nasson represents the U.S. Attorney’s Office in this case.
Sentencing for the defendant is scheduled for September 19, 2013. Supplemental Security Income fraud carries a maximum of five years in prison. However, the court must consider the U.S. Sentencing Guidelines and the federal statutes before imposing a sentence.
Attorney General Eric Holder to Participate in Quintet Meeting of Attorneys GeneralRead the Press Release
Attorney General Eric Holder is traveling to Auckland, New Zealand, for the Fifth Annual Meeting of the Quintet of Attorneys General of the United States, the United Kingdom, Canada, Australia and New Zealand. The central theme of the Quintet meeting will be strategies for combatting sexual violence against women and children. The Attorneys General will be exchanging best practices for domestic investigations and prosecutions of these serious crimes, as well as working to improve their joint response to transnational sexual violence, including in the contexts of human trafficking, online child pornography and armed conflicts.
“The Quintet of Attorneys General is one of our most important channels for enhancing cooperation with key allies in the fight against terrorism and transnational crime,” said Attorney General Holder. “One of my highest priorities as Attorney General has been to work to prevent and to punish sexual violence against women and children. I greatly value this opportunity to meet with my counterparts from the United Kingdom, Canada, Australia and New Zealand – countries with which we share both common values and a common legal tradition – to discuss how we can improve our cooperation, with each other and with countries around the world, in the vital effort to fight sexual violence against women and children.”
Under the leadership of Attorney General Holder, the Justice Department has made significant strides in punishing and preventing sexual violence as well as assisting victims of sexual violence, including through the Sexual Assault Forensic Examination Protocol (SAFE), the Sexual Assault Backlog Initiative, the Defending Childhood Initiative, the expanded Project Safe Childhood as well as the Global Alliance Against Child Sexual Abuse Online. Fifty countries now participate in the Global Alliance Against Child Sexual Abuse Online which Attorney General Holder co-founded with European Union Commissioner Cecilia Malmstrom in 2012.
The Quintet will also focus on other forms of violent crime, including gun violence, as well as on victims’ rights and on the use of technology in prosecutions. In addition, experts will report on the Quintet’s ongoing collaboration against cybercrime and on the use of asset forfeiture to halt the financing of criminal and terrorist groups.
The goal of the Quintet meetings is to seek practical steps that can be taken to improve the abilities of the five countries to investigate and prosecute criminal and terrorist activity. Themes of prior Quintet meetings have included: the use of national security information in terrorism prosecutions; improving mutual legal assistance to fight cybercrime; strategies for countering violent extremism; and cross-jurisdiction actions against organized crime groups.
The U.S. Strategy to Combat Transnational Organized Crime specifically references the importance of supporting multilateral senior law enforcement exchanges to promote the sharing of criminal intelligence and enhance cooperation, such as the Quintet of Attorneys-General and the Strategic Alliance Group, established with the United Kingdom, Canada, New Zealand and Australia. Prior meetings of the Quintet have taken place in the United Kingdom, the United States, Australia and Canada.
On his return trip from New Zealand, Attorney General Holder will meet with U.S. Navy Admiral Samuel J. Locklear III, Commander of the U.S. Pacific Command (PACOM), and other officials to review ongoing law enforcement collaboration between the Department of Justice and PACOM, and to plan future cooperation in the region. The Attorney General and Admiral Locklear will continue their discussions on how they are working collaboratively to counter terrorism, transnational crime and narcotics trafficking in the Pacific region.
Armed Career Criminal Sentenced to 15 Years for Federal Firearms ViolationsRead the Press Release
BOSTON – A former Mattapan man was sentenced today in federal court for being a felon in possession of a firearm.
Aylis Dryden, 27, was sentenced by U.S. District Judge Richard G. Stearns to 15 years in prison, followed by three years of supervised release. In January 2013, Dryden pleaded guilty to being a felon in possession of a firearm and ammunition in violation of federal gun laws.
At approximately 8:00 p.m. on April 7, 2010, four Boston Police officers were on routine patrol in an unmarked cruiser in the vicinity of the Heath Street housing development in Jamaica Plain when they observed a large group of people gathered, drinking from open containers of alcohol. The officers observed Dryden act suspiciously and make adjustments to his center front waistband, prompting one of the officers to ask Dryden if he was carrying a gun in his waistband. Although Dryden initially denied having a gun, he inadvertently revealed it when he lifted his shirt at the officers’ request. Ultimately, officers seized the gun as he attempted to flee. Dryden, a previously convicted felon, was arrested and transported in a cruiser, where the officers found additional ammunition.
United States Attorney Carmen M. Ortiz and Eugenio A. Marquez, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Office, and Boston Police Commissioner Ed Davis, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Lisa Asiaf Schlatz of Ortiz’s Health Care Fraud Unit.
Algerian National Extradited from Thailand to Face Federal Cybercrime Charges in Atlanta for “SpyEye” VirusRead the Press Release
ATLANTA –Hamza Bendelladj, an Algerian national also known as “Bx1,” will be arraigned on Federal cybercrime charges for his role in developing, marketing, distributing, and operating the malicious computer virus “SpyEye.”
“No violence or coercion was used to accomplish this scheme, just a computer and an Internet connection,” said United States Attorney Sally Quillian Yates. “Bendelladj’s alleged criminal reach extended across international borders, directly into victims’ homes. In a cyber-netherworld, he allegedly commercialized the wholesale theft of financial and personal information through this virus which he sold to other cybercriminals. Cybercriminals take note; we will find you. This arrest and extradition demonstrates our determination to bring you to justice.”“Hamza Bendelladj has been extradited to the United States to face charges of controlling and selling a nefarious computer virus designed to pry into computers and extract personal financial information,” said Acting Assistant Attorney General Mythili Raman. “The indictment charges Bendelladj and his co-conspirators with operating servers designed to control the personal computers of unsuspecting individuals and aggressively marketing their virus to other international cybercriminals intent on stealing sensitive information. The extradition of Bendelladj to face charges in the United States demonstrates our steadfast determination to bring cybercriminals to justice, no matter where they operate.”
“The FBI has expanded its international partnerships to allow for such extraditions of criminals who know no borders,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The federal indictment and extradition of Bendelladj should send a very clear message to those international cybercriminals who feel safe behind their computers in foreign lands that they are, in fact, within reach.”
Bendelladj, 24, was indicted by a Federal grand jury in Atlanta, GA. on December 20, 2011. The 23-count indictment charges him with one count of conspiring to commit wire and bank fraud, ten counts of wire fraud, one count of conspiracy to commit computer fraud, and 11 counts of computer fraud. Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on January 5, 2013, while he was in transit from Malaysia to Egypt. The indictment was unsealed on May 1, 2013. Bendelladj was extradited from Thailand to the United States on May 2, 2013, and will be arraigned in United States District Court before United States Magistrate Judge Janet F. King.According to court documents, the SpyEye virus is malicious computer code or “malware,” which is designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs and other personally identifying information. The SpyEye virus facilitates this theft of information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the computers through command and control (C&C) servers. Once a computer is infected and under the cybercriminals’ control, a victim’s personal and financial information can be surreptitiously collected using techniques such as “web injects,” which allow cybercriminals to alter the display of web pages in the victim’s browser in order to trick them into divulging personal information related to their financial accounts. The financial data is then transmitted to the cybercriminals’ C&C servers, where criminals use it to steal money from the victims’ financial accounts.
The indictment alleges that from 2009 to 2011, Bendelladj and others developed, marketed and sold various versions of the SpyEye virus and component parts on the Internet and allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information. Bendelladj allegedly advertised the SpyEye virus on Internet forums devoted to cybercrime and other criminal activities. In addition, Bendelladj allegedly operated C&C servers, including a server located in the Northern District of Georgia, which controlled computers infected with the SpyEye virus. One of the files on Bendelladj’s C&C server in the Northern District of Georgia allegedly contained information from approximately 253 unique financial institutions.
If convicted, Bendelladj faces a maximum sentence of up to 30 years in prison for conspiracy to commit wire and bank fraud; up to 20 years for each wire fraud count; up to five years for conspiracy to commit computer fraud; up to five or ten years for each count of computer fraud; and fines of up to $14 million dollars.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Special Assistant United States Attorney Nicholas Oldham and Assistant United States Attorney Scott Ferber of the Northern District of Georgia, and Trial Attorney Carol Sipperly of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. Valuable assistance was provided by the Criminal Division’s Office of International Affairs, which worked with its international counterparts to effect the extradition.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Adventist Health Pays United States and State of California $14.1 Million to Resolve False Claims Act AllegationsRead the Press Release
Adventist Health System/West, dba Adventist Health, and its affiliated hospital White Memorial Medical Center have agreed to pay the United States and the state of California $14.1 million to settle claims that they violated the False Claims Act, the Justice Department announced today. Adventist Health is headquartered in Roseville, Calif., in the Eastern District of California, and operates 19 hospitals and over 150 clinics in California, Hawaii, Oregon and Washington. White Memorial Medical Center is a teaching hospital located in Los Angeles.
The settlement announced today resolves allegations that Adventist Health improperly compensated physicians who referred patients to the White Memorial facility by transferring assets, including medical and non-medical supplies and inventory, at less than fair market value. Additionally, Defendant White Memorial paid referring physicians compensation that the United States contended was above fair market value to provide teaching services at its family practice residency program. The United States alleged that these payments violated the Anti-Kickback Act and Stark Statute, and by extension, the False Claims Act. Approximately $11.5 million of the settlement will be paid to the U.S. Government, most of which will benefit the Medicare Trust Fund. The remaining $2.6 million will be paid to California’s Department of Health Care Services.
The Anti-Kickback Act prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and/or other federally-funded programs. The Stark Statute prohibits a hospital from submitting claims for patient referrals made by a physician with whom the hospital has an improper financial arrangement. Both the Anti-Kickback Act and Stark Statute are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“Kickbacks and other unlawful financial arrangements cost taxpayer dollars and undermine the integrity of medical judgments,” said Stuart F. Delery, the Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to making sure that physician referrals do not involve payments made in violation of federal law.”
“The setttement announced today underscores one of the key purposes of the Stark and Anti-Kickback laws – to ensure that the judgment exercised by health care providers is based on legitimate patient needs and is not influenced by illegal payments,” said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California.
“Payouts made by hospitals and clinics – as the government alleged in this case – raise substantial concerns about physician independence and objectivity,” said Ivan Negroni, Special Agent in Charge of the Office of Inspector General, U.S. Department of Health and Human Services San Francisco region. “Taxpayers and vulnerable patients rightfully expect such payments to be investigated and pursued.”
The settlement announced today resolves a lawsuit filed in the Eastern District of California under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblowers in this case will collectively receive $2,839,219 of the recovery. The lawsuit is captioned U.S. ex rel. Hector Luque et al. v. Adventist Health et al. No. 2:08CV1271 (E.D. Cal.).
As part of the settlement, White Memorial has entered into a comprehensive five-year Corporate Integrity Agreement with the Office of Inspector General of the U.S. Department of Health and Human Services to ensure its continued compliance with federal health care benefit program requirements.
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 more than $10.3 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 $14.2 billion.
This case was handled by the United States Attorney’s Office for the Eastern District of California, the Justice Department’s Civil Division, and the Office of Inspector General of the Department of Health and Human Services. The claims settled by this agreement are allegations only, and there has been no determination of liability.
2 May 2013
Witness Tampering and Drug Trafficking Lands Houston Man in Federal Prison for 28 YearsRead the Press Release
BROWNSVILLE, Texas – Julian Luna-Nieto, 44, has been handed a significant federal sentence for methamphetamine trafficking as well as conspiring to tamper with witnesses by using intimidation and threats, United States Attorney Kenneth Magidson announced today. Luna-Nieto, a legal permanent resident from Houston, pleaded guilty Sept., 21, 2012, admitting he used intimidation and threats with the intent to influence and prevent testimony in an official proceeding.
Today, U.S. District Judge Andrew S. Hanen, who accepted the guilty plea, handed Luna-Nieto a 28-year federal prison term for each of the two charges which will be served concurrently. In considering the sentence, Judge Hanen noted the threats he made and that he was the leader of the group involved in smuggling very pure methamphetamine.
On Feb. 16, 2012, Luna-Nieto was a passenger in a vehicle that attempted entry into the U.S. through the Gateway International Bridge in Brownsville, Texas. Approximately 12.62 kilograms (27.7 pounds) of crystalized methamphetamine was found hidden in the vehicle. Luna-Nieto admitted he received the loaded vehicle in Mexico and arranged to transport the narcotics to Houston.
While in custody and after being indicted on the narcotics charges, Luna-Nieto coordinated with other inmates to prepare a threat letter against a cooperating witness in an attempt to influence the witness’s testimony. That letter was intercepted by the U.S. Marshals Service. The investigation revealed another threat letter against another cooperating witness with the intent to influence that second witness’s testimony.
The investigation was conducted by Customs and Border Protection, Homeland Security Investigations and the U.S. Marshals Service. Assistant United States Attorney Joseph Leonard is prosecuting the case.
Wilmington Man Sentenced for Multiple Robberies - Alan JohnsonRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court yesterday ALAN JOHNSON, 23, was sentenced by United States District Chief Judge Terrence W. Boyle to 608 months imprisonment; 5 years supervised release, and was ordered to pay an $800.00 special assessment.
On January 8, 2013, JOHNSON was found guilty by a jury of Possession with Intent to Distribute a Quantity of Marijuana and Carrying a Firearm in Furtherance of a Drug Trafficking Crime for an offense that occurred on July 10, 2011. JOHNSON was also found guilty of Conspiracy to Rob a Business Engaged in Interstate Commerce, Robbery of a Business in Interstate Commerce and Carrying a Firearm in Furtherance of a Crime of Violence for an offense that occurred on July 21, 2011. He had previously pled guilty to Possession of a Firearm by a Felon for an offense that occurred on August 26, 2011.
On July 10, 2011, JOHNSON and others broke into the home of a man in Wilmington, North Carolina attempting to rob him of drugs and money. During the course of the home invasion, the victim was pistol whipped when he denied having marijuana. After relenting and giving the defendants a quantity of marijuana, JOHNSON demanded to know where the rest of the drugs were. When the victim was adamant that he had given up all the narcotics he had in his possession, JOHNSON shot the victim four times. The victim was able to run out of his home and escape.
On July 21, 2011, JOHNSON and two other men entered Able Auto Insurance Agency in Wilmington, North Carolina. The subjects held employees and customers at gunpoint while demanding the businesses’ money. After robbing the business of approximately $5,700, the men fled in a car.
During the course of the investigation into these two events, investigators interviewed co-defendants who confessed to their roles in the robberies. Those statements led law enforcement to a Dollar General store where JOHNSON and his co-defendants bought sunglasses to wear immediately prior to the Able Auto Insurance Agency Robbery. Upon arrest, JOHNSON was found in possession of a firearm. He was questioned about the two incidents and confessed to his participation in the robberies.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government.
Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Wessington Springs Man Sentenced for Firearm OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wessington Springs, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on May 1, 2013, by U.S. District Judge Roberto A. Lange. Jonathan Tyrrell, age 54, was sentenced to 12 months and one day of imprisonment to be followed by 18 months of supervised release, a $2,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Tyrrell was indicted for the above offense by a federal grand jury on October 10, 2012, and pled guilty to the charge on February 12, 2013. The charge stems from an incident that took place on December 15, 2011, when Tyrrell was stopped by the Jerauld County Sheriff. Methamphetamine, marijuana, and four firearms were found in his vehicle. Tyrrell tested positive for use of controlled substances.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Tyrrell was immediately turned over to the custody of the U.S. Marshal's Service.
Virginia Teen, Charged as Adult, Sentenced for Church ArsonRead the Press Release
Jean-Claude Bridges pleaded guilty earlier this year to deliberately setting a church on fire and was sentenced this morning in the U.S. District Court for the Western District of Virginia in Danville, Va. Bridges was sentenced to serve two years in prison, two years of supervised release and ordered to pay $141,773.68 in restitution .
Bridges, 18, of Henry County, Va., pleaded guilty to one count of destroying a religious property by fire. Prior to his guilty plea, the court granted a government motion to transfer Bridges to adult status for criminal prosecution. The defendant was 17-years-old when the criminal conduct occurred.
“The freedom to practice the religion that we choose in a safe environment without being subjected to hateful acts is among our nation’s most cherished rights,” said Roy L. Austin, Jr., Deputy Assistant Attorney General of the Justice Department’s Civil Rights Division. “Anyone who violates this right will be prosecuted to the fullest extent of the law.”
“Mr. Bridges’ racial bias led him to commit the dangerous crime of arson,” United States Attorney Timothy J. Heaphy said today. “When he set fire to the New Holy Deliverance Outreach Ministry, he endangered neighbors and first responders. This act of prejudice offended the entire community. This office will protect the civil rights of everyone and vigorously prosecute crimes like that committed by Mr. Bridges. Racism has no place in Axton or anywhere else in the Western District of Virginia.”
According to filings in the case, on May 20, 2012, at approximately 1:20 a.m., Bridges and another juvenile intentionally set fire to New Holy Deliverance Outreach Ministry, a church with a predominantly African American congregation, located in Axton, Va. In pleading guilty to this offense, Bridges admitted that he burned down New Holy Deliverance Outreach Ministry because of the race, color and ethnic characteristics of its congregants.
The investigation of the case was conducted by the Henry County Department of Public Safety, the Henry County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Thomas Cullen, assisted by Trial Attorney Christopher Lomax of the Department of Justice’s Civil Rights Division, will prosecute the case for the United States.
Virginia Teen Charged as Adult, Sentenced for Church ArsonRead the Press Release
DANVILLE – Jean Claude Bridges pleaded guilty earlier this year to deliberately setting a church on fire and was sentenced this morning in the United States District Court for the Western District of Virginia in Danville. Bridges was sentenced to serve two years in prison, two years of supervised release and ordered to pay $141,773.68 in restitution.
Bridges, 18, of Henry County, Va., pleaded guilty to one count of destroying a religious property by fire. Prior to his guilty plea, the court granted a government motion to transfer Bridges to adult status for criminal prosecution. The defendant was 17-years-old when the criminal conduct occurred.
“Mr. Bridges’ racial bias led him to commit the dangerous crime of arson,” United States Attorney Timothy J. Heaphy said today. “When he set fire to the New Holy Deliverance Outreach Ministry, he endangered neighbors and first responders. This act of prejudice offended the entire community. This office will protect the civil rights of everyone and vigorously prosecute crimes like that committed by Mr. Bridges. Racism has no place in Axton or anywhere else in the Western District of Virginia.”
“The freedom to practice the religion that we choose in a safe environment without being subjected to hateful acts is among our nation’s most cherished rights,” said Roy L. Austin, Jr., Deputy Assistant Attorney General of the Justice Department’s Civil Rights Division. “Anyone who violates this right will be prosecuted to the fullest extent of the law.”
According to filings in the case, on May 20, 2012, at approximately 1:20 a.m., Bridges and another juvenile intentionally set fire to New Holy Deliverance Outreach Ministry, a church with a predominantly African American congregation, located in Axton, Va. In pleading guilty to this offense, Bridges admitted that he burned down New Holy Deliverance Outreach Ministry because of the race, color and ethnic characteristics of its congregants.
The investigation of the case was conducted by the Henry County Department of Public Safety, the Henry County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Thomas Cullen, assisted by Trial Attorney Christopher Lomax of the Department of Justice’s Civil Rights Division, will prosecute the case for the United States.
Violent Drug Dealers Arrested for Drug Trafficking in New BedfordRead the Press Release
BOSTON – A complaint was unsealed today charging two men, one from Bourne and the other from New Bedford, with narcotics trafficking. The complaint resulted from the efforts of federal, state and local authorities to reduce violence and drug trafficking in the New Bedford area.
Francisco Monteiro, a/k/a Cisco, 32, of Bourne, is charged with conspiracy to distribute heroin and Junior Lopes, 34, of New Bedford, is charged with conspiracy to distribute heroin. U.S. District Court Magistrate Judge Jennifer C. Boal scheduled an initial appearance for June 4, 2013. The maximum penalty under the statute is a mandatory minimum sentence of 20 years and up to life in prison, a minimum of 10 years supervised release and a fine of up to $20 million.
According to court documents, Monteiro and Lopes are charged with conspiring to distribute over 100 grams of heroin. It is alleged that on February 15, 2013, Monteiro and Lopes arranged and facilitated the sale of almost 100 grams of heroin to a cooperating witness in New Bedford. The DEA recorded telephone calls to Monteiro in which he agreed to provide heroin to a cooperating witness. Monteiro and Lopes then drove with the cooperating witness to an address in New Bedford where the heroin sale was completed. Furthermore, Monteiro and Lopes planned and arranged for the sale of an additional 50 grams of heroin to the cooperating witness that was to take place on February 25, 2013, although the sale was not completed.As detailed in the complaint, Monteiro and Lopes have extensive criminal histories of violent crimes, including armed robberies of other drug dealers to obtain money to fund their drug dealing activities. Monteiro has prior convictions for drug distribution and unlawful possession of a firearm. In 2003, Lopes was convicted in U.S. District Court in Boston for gun and drug trafficking and received a sentence of 130 months in prison and is currently on supervised release for those offenses.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; C. Samuel Sutter; Bristol County District Attorney; Sherriff Thomas M. Hodgson of Bristol County; Chief Dennis R. Woodside of the Bourne Police Department; and Chief Richard M. Stanley of the Wareham Police Department, made the announcement today.
This case is being prosecuted by Christopher Pohl of Ortiz’s Organized Crime Strike Force Unit.
United States Files False Claims Act Lawsuit <br /> Against the Largest For-Profit Hospice Chain in the United StatesRead the Press Release
The United States has filed suit against Chemed Corporation and various wholly owned hospice subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation, alleging false Medicare billings for hospice services, the Justice Department announced today. Vitas is the largest for-profit hospice chain in the United States and provides hospice services to patients in 18 states (Alabama, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Michigan, Missouri, New Jersey, Ohio, Pennsylvania, Texas, Virginia and Wisconsin) and the District of Columbia. Chemed, which is based in Cincinnati, Ohio and also owns Roto-Rooter Group Inc., a national drain cleaning and plumbing service company, acquired Vitas in 2004.
The Medicare hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain and stress) for a terminal illness, and have a life expectancy of six months or less if their disease runs its normal course. When a Medicare patient receives hospice services, that individual no longer receives services designed to cure his or her illness. Medicare reimburses for different levels of hospice care, including continuous home care, also called crisis care, which is available for patients who are experiencing acute medical symptoms resulting in a brief period of crisis. Crisis care is available when a patient’s acute medical symptoms require the immediate and short-term provision of skilled nursing services in order to keep the patient at home. The reimbursement rate for crisis care services is the highest daily rate a hospice can bill Medicare, and hospices are paid hundreds of dollars more on a daily basis for each patient they certify as having received crisis care services rather than routine hospice services.
The government’s complaint alleges that Chemed and Vitas Hospice knowingly submitted or caused the submission of false claims to Medicare for crisis care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements. According to the complaint, the companies set goals for the number of crisis care days that were to be billed to Medicare. The companies also allegedly used aggressive marketing tactics and pressured staff to increase the numbers of crisis care claims submitted to Medicare, without regard to whether the services were appropriate or were actually being provided. For example, the complaint contends that Vitas billed three straight days of crisis care for a patient, even though the patient’s medical records do not indicate that the patient required crisis care and, indeed, reflect that the patient was playing bingo part of the time.
In addition, the government’s complaint alleges that Chemed and Vitas knowingly submitted or caused the submission of false claims for hospice care for patients who were not terminally ill. The companies allegedly paid bonuses to staff based on the number of patients enrolled in the program and based on patients who were admitted for longer lengths of stay, and took adverse employment actions against marketing representatives who did not meet monthly hospice admissions goals. According to the Complaint, these business practices resulted in the admission of patients who were not eligible for hospice care. As an example, the Complaint alleges that Vitas admitted a patient to hospice who showed no signs of a terminal condition and was described in Vitas’ own records as, “very healthy given her age.”
As a result of the conduct alleged in the complaint, the government contends that Chemed and Vitas violated the False Claims Act and misspent tens of millions of taxpayer dollars from the Medicare program.
“The Medicare hospice benefit is intended to provide patients nearing the end of life with pain management and other palliative care to make them as comfortable as possible,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “Too often, however, we hear reports of companies that abuse this critical service by using aggressive marketing tactics to push patients into services they don’t need in order to get higher reimbursements from the government. The Department of Justice will take swift action to protect taxpayer dollars and make sure that Medicare benefits are available to those who truly need them.”
The United States’ suit 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 more than $10.3 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 $14.2 billion.
This matter was investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Western District of Missouri, the U.S. Attorney’s Office for the Northern District of Texas the U.S. Attorney’s Office for the Central District of California, and the Department of Health and Human Services’ Office of Inspector General. The claims asserted against Chemed and Vitas are allegations only, and there has been no determination of liability.
The lawsuit is captioned United States v. Vitas Hospice Services LLC, et al. (W.D. Mo.).
United States Attorney Brendan Johnson Issues 2012 Annual ReportRead the Press Release
United States Attorney Brendan V. Johnson announced the release of the 2012 Annual Report for the District of South Dakota. The report highlights the work and accomplishments of the U.S. Attorney’s Office for calendar year 2012.
An area of increased emphasis in 2012 was human trafficking. There has been a concerted effort with law enforcement partners to identify these crimes and to aggressively prosecute the offenders engaged in both the supply and demand side of commercial sex trafficking. The annual report outlines the successful work on some key cases.
Additionally, the report highlights the work in other high priority areas, such as ongoing efforts to make tribal communities safer. Over the past four years, these efforts have led to a 131% increase in prosecutions on the Rosebud Sioux Indian reservation and an increase of 82% on Pine Ridge.
“I’m proud to work with a staff of dedicated professionals who are committed to delivering justice, prosecuting criminals, and making our state a safer place to live,” said Johnson. “The accomplishments summarized in this report are the result of the hard work of my staff and the federal, state and local agencies that are vital to our joint success.”
The report also highlights the enhanced community outreach efforts, progress in the areas of victim’s rights and advocacy, and a description of the work performed by the Civil and Appellate Divisions.
Tyler Levi Smith Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 2, 2013, before U.S. District Judge Richard F. Cebull, TYLER LEVI SMITH, a 31-year-old resident of Billings, appeared for sentencing. SMITH was sentenced to a term of:
Prison: 57 months
Special Assessment: $100
Supervised Release: 3 years
SMITH was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorneys Marcia K. Hurd and Mark S. Smith, the government stated it would have proved at trial the following:
In 2004, SMITH was convicted of felony drug offenses and as a result he was prohibited from possessing firearms.
On March 8, 2012, SMITH was found passed out in a car parked in a parking lot in Billings. The car was running and SMITH was passed out in the back seat with vomit on him with his head resting on a case of beer. On the front passenger floor board in plain view was a silver semi automatic pistol. Law enforcement was unable to rouse SMITH and had to use a tool to open the door. After they opened the door and woke SMITH, they found out that he was on probation and contacted his state probation officer. SMITH was arrested for DUI and found to have a BAC of .139. The pistol, a Bryco Arms model Jennings Nine 9mm, and two magazines and ammunition were seized. The gun belonged to SMITH's cousin.
The cousin had earlier text discussions with SMITH about SMITH purchasing the gun from him. The cousin had a party at his residence on the evening of March 7 and into the early morning hours of March 8 and SMITH was at the party. The cousin was showing the gun around and then put it in a drawer in his kitchen while SMITH was watching. The next day, the cousin found that the gun and the magazines were missing.
When questioned, SMITH claimed that he didn't know how the gun got in his car.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SMITH will likely serve all of the time imposed by the court. In the federal system, SMITH does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Toledo Men Charged with Violating the Clean Air ActRead the Press Release
Two Toledo men were charged with violations of the Clean Air Act and regulations involving the removal and disposal of asbestos-containing material, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged are John Mayer, age 52, and Timothy Bayes, age 32.
“These defendants are accused of ignoring laws and regulations that are in place to protect the public,” Dettelbach said. “Protecting the environment, including the air we breathe, is a priority of my office and the Justice Department.”
The indictment alleges that between September 2010 and December 2010, Mayer directed individuals to remove asbestos-containing insulation from boilers, duct work and pipes in a former manufacturing facility in Toledo, Ohio, in order that Mayer could sell the scrap metal from those items. This work was performed in violation of the federal Clean Air Act regulations regarding asbestos abatement, according to the indictment.
It is alleged that the asbestos-containing insulation was not wetted at any time during the removal process; the City of Toledo, Division of Environmental Services, was not notified prior to the work commencing; and, that there was not on site a person trained in the provisions of the federal asbestos regulations.
Bayes, at Mayer’s direction, dumped approximately 82 garbage bags of the asbestos-containing insulation at various locations throughout Toledo in violation of the requirement that such material be disposed at a site operated in accordance with federal law, according to the indictment.
If convicted, each defendant’s sentence will be determined by the court after review of factors unique to each 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 agencies in this case are the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation, and the Ohio Environmental Protection Agency, all members of the Northwest Ohio Environmental Crimes Task Force. The case is being handled by Assistant United States Attorney Thomas A. Karol and Special Assistant United States Attorney James J. Cha.
An indictment 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.
Two Former Employees of Clinical Laboratory Admit Roles in Multimillion-Dollar Cash-For-Referral SchemeRead the Press Release
Former Biodiagnostic Laboratory Services LLC Sales Reps Acknowledge Bribing Physicians
NEWARK, N.J. – Two former sales representatives of Biodiagnostic Laboratory Services LLC (BLS) admitted today to conspiring with others to bribe doctors to refer patient blood samples to BLS, U.S. Attorney Paul J. Fishman announced.
Peter Breihof, 42, of Nutley, N.J., and William Dailey, 41, of Wall, N.J., both pleaded guilty before U.S. District Judge Stanley R. Chesler to Informations charging them with conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act.
According to documents filed in this case and statements made in court:
On April 9, 2013, federal agents arrested BLS president and part-owner, David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 34, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – an entity allegedly used by BLS to make illegal payments. They were charged with participating in a long-running scheme to bribe doctors to refer patient blood samples to BLS and order unnecessary tests, resulting in tens of millions of dollars in profit for the company. The Complaint noted that two former BLS employees – Breihof and Dailey – had agreed to plead guilty and had cooperated in the investigation.
Between 2006 and 2013, BLS, headquartered in Parsippany, N.J., and entities it funded paid millions of dollars to physicians to induce them to refer patient blood samples to BLS. From these referrals, BLS received tens of millions of dollars from private health insurance companies and Medicare. Numerous physicians were bribed under the guise of lease, service, and/or consulting agreements. Under the lease and service agreements, between 2006 and 2009, physicians were frequently paid thousands of dollars a month by BLS for space in medical offices that BLS did not need or actually use and to perform routine blood drawing services that had little real dollar value. Breihof and Dailey admitted today to using phony lease and service agreements to bribe physicians to send their patients’ blood samples to BLS. Breihof and Dailey also admitted that they paid various physicians a fee per test on behalf of BLS in order to induce those physicians to order more of the blood tests than they otherwise would have.
Breihof and Dailey each face a maximum potential penalty of five years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. In addition, Breihof has agreed to forfeit $1,179,556, and Dailey has agreed to forfeit $558,405. Sentencing for both defendants is scheduled for Sept. 19, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, and the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Maria Kelokates, with the investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Melissa Jampol, and Deputy Chief Jacob T. Elberg of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations against the other defendants are merely accusations and they are presumed innocent unless and until proven guilty.13-182
Defense counsel: Breihof: Henry Klingeman Esq., Newark
Dailey: Kevin G. Walsh Esq., NewarkBreihof, Peter Information
Dailey, William InformationTwo Eagle Pass Residents Enter Guilty Pleas in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
Maverick County Precinct One Commissioner Eliaz Maldonado and Maverick County Probation Officer and general contractor Javier Gonzalez each face up to ten years in federal prison and up to a $250,000 fine after pleading guilty this morning to a bribery charge in connection with an alleged bribery, kickback and bid-rigging scheme that caused a loss to Maverick County of thousands of dollars announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States Magistrate Judge Victor Garcia in Del Rio, Maldonado, age 52, pleaded guilty to one count of receiving a bribe. According to court records, in 2010 and 2011, Maldonado, through his employees, admitted to manipulating the bidding process to guarantee that contractors he chose would be awarded Maverick County construction contracts. Those contractors deposited the checks issued to them by Maverick County and then made cash payments to Maldonado. The private contractors submitted inflated bids to Maverick County in order for there to be sufficient funds to perform the construction work, make a profit, and pay the bribe to Maldonado. The contracts in total involved more than $100,000 of county funds and Maldonado received a payment between $500 and $3,500 at least twelve times during the scheme.
Gonzalez, age 42, pleaded guilty to one count of paying a bribe. By pleading guilty, Gonzalez admitted that in 2010 and 2011, he entered into a scheme with different Maverick County officials whereby he would be guaranteed county construction contracts in return for paying money to the official whose precinct the construction work was supposed to be performed in. According to court documents, after Gonzalez was selected to do the work, he would be paid via checks issued by Maverick County. Gonzalez would deposit or cash the checks, then give the officials thousands of dollars from the money Maverick County had paid him. The contracts Maverick County awarded Gonzalez involved more than $400,000 of county funds in 2010 and 2011 combined. The total loss to Maverick County as a result of Gonzalez’ actions was approximately $156,000.
Both Maldonado and Gonzalez were admonished in court that in addition to any imprisonment or fine, they could each be ordered to pay restitution at the time of sentencing.
Maldonado and Gonzalez each remain on bond pending sentencing scheduled for October 7, 2013 before United States District Judge Alia Moses.
To date, nine individuals are awaiting sentencing after pleading guilty to charges stemming from this investigation being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Charges against five individuals are still pending.
Persons who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
Topeka Man Indicted on Drug, Gun ChargesRead the Press Release
TOPEKA, KAN. – A Topeka man has been indicted on drug trafficking and gun charges, U.S. Attorney Barry Grissom said today.
Michael Richard Rupp, 27, Topeka, Kan., is charged with two counts of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in 2012 and 2013 in Shawnee County, Kan.
Upon conviction, the crimes carry the following penalties: Possession with intent to distribute methamphetamine: A maximum penalty of 20 years and a fine up to $1 million on each count.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a maximum penalty of $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Ryan M. Hawley, 24, Winfield, Kan., is charged with one count of unlawful possession of ammunition after a felony conviction. The crime is alleged to have occurred Nov. 14, 2012, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
Tyrone J. Lewis, Sr., 33, Topeka, Kan., is charged with one count of unlawful possession of ammunition after a felony conviction. The crime is alleged to have occurred Jan. 19, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
Bilal Keys, 43, Topeka, Kan., is charged with unlawful possession of a firearm after felony convictions. The crime is alleged to have occurred March 22, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mike Warner is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Toledo Orthodontist Accused of Failing to Pay $187,000 in TaxesRead the Press Release
An indictment was filed charging Stuart Duchon, age 65, of Toledo, Ohio, with failing to collect and pay over employees’ portion of FICA taxes, as well as the employees’ withholding federal income taxes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Duchon owned and operated an orthodontist practice in Toledo and from 2007 to 2011, he failed to collect and pay to the Internal Revenue Service approximately $187,000 for the federal taxes withheld from his employees wages, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to each 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 Internal Revenue Service. The case is being handled by Assistant United States Attorney Thomas A. Karol.
An indictment 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.
Three Members of International Cyber Fraud Ring Extradited from Romania to the United StatesRead the Press Release
Romanian nationals Cristea Mircea, Ion Pieptea, and Nicolae Simion will make their first appearance before United States District Judge Edward R. Korman later today following their extradition to the United States from Romania. The defendants are charged with participating in a sophisticated multimillion dollar cyber fraud scheme that targeted consumers on U.S.-based Internet marketplace websites such as eBay.com. Their extradition followed a coordinated international takedown in December 2012, during which law enforcement officials in Romania, the Czech Republic, the United Kingdom, and Canada, acting at the request of the United States, arrested six Romanian nationals, including Mircea, Pieptea and Simion.1 The Bucharest Appeals Court ordered the extraditions of Mircea, Pieptea, and Simion on February 2, 2013. The defendants were subsequently transported to the Eastern District of New York and arraigned on March 27, 2013.
The extraditions were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office
As alleged in the indictment, the defendants and their coconspirators saturated Internet marketplace websites, such as eBay.com, Cars.com, AutoTrader.com, and CycleTrader.com, with detailed advertisements for cars, motorcycles, boats, and other high-value items generally priced in the $10,000 to $45,000 range. Unbeknownst to the buyers, however, the merchandise did not exist. The so-called sellers corresponded with the victim buyers by email, sending fraudulent certificates of title and other information designed to lure the victims into parting with their money. Sometimes, they pretended to sell cars from nonexistent auto dealerships in the United States and even created phony websites for these fictitious dealerships.
The indictment further describes how, after the purported sellers reached an agreement with the victim buyers, they would often email them invoices purporting to be from Amazon Payments, PayPal, or other online payment services, with wire transfer instructions. However, these invoices were also fraudulent – the members of the conspiracy used counterfeit service marks in designing the invoices so that they would appear identical to communications from legitimate payment services. The fraudulent invoices directed the buyers to send money to American bank accounts that had been opened by foreign nationals in the United States, known as “arrows.” Finally, the “arrows” would collect the illicit proceeds and send them to the defendants in Europe by wire transfer and other methods. For example, the “arrows” forwarded defendant Pieptea $18,000 cash in fraud proceeds hidden inside hollowed-out audio speakers.
According to court filings, the defendants and their coconspirators allegedly defrauded their victims of at least $2 million during the course of the conspiracy. Notwithstanding the scope of the fraud, however, one of the coconspirators boasted, in a recorded conversation, that “criminals will not be extradited from Romania to the U.S.A. . . . it will never happen.”
Each defendant is charged with conspiracy to commit substantives offenses against the United States, wire fraud, and money laundering. The defendants face a maximum sentence of 20 years’ imprisonment on each count of conviction.
“These three defendants allegedly reached across the globe to defraud Americans, pretending to be legitimate online vendors and payment providers. In reality, they were con men with a computer. The defendants’ extraditions to the United States should make clear that our efforts to protect Internet consumers do not stop at our borders,” stated United States Attorney Lynch. “Thanks to our strong international partnerships, the notion that cybercriminals will never be extradited to the United States is merely a criminal’s fantasy.” Ms. Lynch extended her grateful appreciation to the FBI for its assistance.
The Romanian government, particularly the Ministry of Justice, the Romanian Internal Intelligence Service, and the Directorate for Combating Organized Crime, provided significant assistance and support during the investigation, arrest, and extradition of the defendants. The Department of Justice’s Office of International Affairs worked with its counterparts in Romania to effect the extraditions, and the U.S. Marshals Service coordinated and transported the defendants to the United States.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina Posa, Nadia Shihata. and Claire Kedeshian, and Trial Attorney Carol Sipperly of the Criminal Division’s Computer Crimes and Intellectual Property Section.
The Defendants:
CRISTEA MIRCEA
Age: 30
RomanianION PIEPTEA
Age: 36
RomanianNICOLAE SIMION
Age: 37
Romanian_____________________________
1 The charges against the defendants are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Tax Preparer, Laura A. Diggs, Sentenced for Making False Statements on Tax Returns and Assisting in the Preparation of False Tax DocumentsRead the Press Release
LAURA A. DIGGS, age 41, a resident of Paulina, Louisiana, was sentenced today by U.S. District Judge Carl J. Barbier to five years probation with the first six months to be served in home confinement for one count of false statements on tax returns and one count of assisting in the preparation of false tax documents, announced U.S. Attorney Dana J. Boente. Judge Barbier also imposed a $6,000 fine and a $200 special assessment. DIGGS has made full restitution to the Internal Revenue Service of $343,526.00.
According to court documents, from approximately 2003 through the present, DIGGS, was engaged in the business of preparing and filing income tax returns at her business, Diggs Tax Service, which was located in Luling, Louisiana. From 2007 through 2009, according to the factual basis, DIGGS prepared and filed false income tax returns for her customers, which contained false Schedule A deductions, resulted in inflated refunds for her customers to which they were not entitled.
Additionally, according to the factual basis, in the years 2007, 2008, and 2009, DIGGS signed her own taxes that falsely under-reported the business income she had received. In total, DIGGS failed to report approximately $766,761 in gross income, to which there is a total tax liability of $210,233.
The case was being investigated by agents from the Internal Revenue Service Criminal Investigation Division.
The case is being prosecuted by Assistant U. S. Attorney Matt Chester.
Statement of Manhattan U.S. Attorney Preet Bharara on the Convictions of Xing Wu Pan and Jia HouRead the Press Release
“As the jury found, Jia Hou and Oliver Pan stuck a knife into the heart of New York City’s campaign finance law by violating the prohibition against illegal campaign contributions, all to corruptly advantage the campaign of a candidate for city-wide office. Cases like this give the people of New York yet another reason to be troubled by the electoral process, and they have a right to demand fair, open, and honest elections untainted by cynical subversion of campaign finance laws. With these convictions, it is our hope that some measure of the public’s confidence can be restored. We will continue our efforts to stamp out public corruption wherever we find it. We thank the jury for their time and service, and the outstanding prosecutors who so ably tried this case.”
Xing Wu Pan and Jia Hou Verdict Statment - U.S. Attorney Bharara Audio 5.2.2013
St. Petersburg Store Clerk Convicted in Food Stamp Fraud ConspiracyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that a federal jury yesterday found Isam Nasser (30) guilty of one count of conspiracy to defraud the United States and to commit wire fraud, five counts of wire fraud, and five counts of food stamp fraud. The conspiracy charge carries a maximum penalty of five years in federal prison, the wire fraud charges each carry a maximum penalty of twenty years in federal prison, and each food stamp fraud charge carries a maximum penalty of one year in federal prison. Nasser will be sentenced on July 10, 2013.
According to evidence presented at trial, Mehdi Babul owned and operated Hungry Baba, LLC ("Hungry Baba") convenience store located in St. Petersburg, Florida. Nasser was a clerk at Hungry Baba. During the time frame of the conspiracy, Hungry Baba was a participant in the Supplemental Nutrition Assistance Program (SNAP) administered by the United States Department of Agriculture ("USDA"), formerly known as the Food Stamp Program.
From November 2008, through April 2010, Babul, Nasser, and others conspired and schemed to cheat SNAP by purchasing SNAP benefits from Hungry Baba customers in exchange for cash, minus a fee of approximately 50% of the total amount charged to the individual recipient’s SNAP account. This is an illegal practice known as “discounting” or “cash-back.” According to testimony introduced at trial, the estimated loss to the USDA caused by the conspirators was more than $350,000.
On March 1, 2013, Mehdi Babul pleaded guilty to one count of conspiracy to defraud the United States and to commit wire fraud. He will be sentenced on May 20, 2013.
This case was investigated by the United States Secret Service, the United States Department of Agriculture - Office of the Inspector General, the Florida Department of Law Enforcement, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller.
St. Francis Woman Charged and Sentenced for Simple Assault and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, woman convicted of Simple Assault and Child Abuse has pled guilty to the charges and was sentenced on April 29, 2013, by U.S. District Judge Roberto A. Lange. Rita Runs Above, age 35, was sentenced to 132 days in custody, with credit for time served; 6 months of supervised release; and $110 to the Federal Crime Victims Fund.
During the time frame of March 1, 2012, and July 15, 2012, Runs Above provided alcohol to the victim, physically assaulted the victim, and placed the victim in a situation where the victim was threatened with substantial harm by another.
On August 22, 2012, Runs Above struck the victim several times as the victim was trying to leave a residence.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Runs Above was released from custody.
St. Francis Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on May 1, 2013, by U.S. District Judge Roberto A. Lange. Darius Two Eagle, age 21, was sentenced to 36 months in custody, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
Two Eagle was indicted by a federal grand jury on November 15, 2012, and pled guilty to the charge on February 5, 2013.
The conviction stems from an incident that took place on October 11, 2012, when Two Eagle assaulted the victim with a bat and rock, with intent to do bodily harm to the victim.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Timothy M. Maher.
Two Eagle was remanded to the custody of the U.S. Marshal.