Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 14 March 2013
Court of Appeals Affirms Tony Nelson's Convictions on Corruption ChargesRead the Press Release
Jacksonville, FL - U.S. Attorney Robert E. O'Neill announces that the United States Court of Appeals for the Eleventh Circuit today affirmed the convictions of former Jacksonville Port Authority (JAXPort) Chairman Tony Devaughan Nelson on thirty-six corruption-related charges, including bribery, money laundering, honest services mail fraud, and making a false statement to the FBI. The evidence at trial established that, as Chairman, Nelson had demanded and accepted $143,500 in bribes from a dredging contractor at JAXPort. Nelson is serving a 40-month prison sentence.Nelson argued on appeal that his convictions should be vacated because the federal fraud and bribery statutes under which he was convicted are unconstitutionally vague, the district court improperly instructed the jury on the applicable law, and the court improperly admitted the testimony of JAXPort's director of procurement. The ACLU Foundation of Florida, Inc., and the National Association of Criminal Defense Lawyers also filed a brief on Nelson's behalf as amicus curiae.
After hearing oral argument, the Court of Appeals issued a split decision, with the majority holding that the challenged statutes "gave Nelson adequate notice of the conduct they prohibit," that the district court's instructions correctly "propelled [the jury] to look to Nelson's state of mind" in taking payments in exchange for his influence, and that the challenged evidence was relevant and not unfairly prejudicial.
The appeal was handled by Assistant United States Attorneys David P. Rhodes and Susan H. Rothstein-Youakim. The underlying case was prosecuted by Assistant United States Attorneys Mac D. Heavener, III, and Mark B. Devereaux, and was investigated by the Federal Bureau of Investigation.
Computer Printer Technician Sentenced for Defrauding Children’s of AlabamaRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former computer printer service technician at Children’s of Alabama to 27 months in prison for defrauding the hospital of $426,986 by charging it for printer cartridges he sold to another company, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge L. Scott Coogler sentenced JOHN DAVID NICHOLS, 36, of Hueytown, on one count of wire fraud, ordering him to pay $526,943 in restitution and to serve three years of supervised release after completing the prison term. Nichols pleaded guilty to the fraud in October.
According to his plea agreement and other court documents, Nichols worked on site at Children’s of Alabama as a service technician for Tech-Optics Inc. from October 2009 through October 2011. Tech-Optics had a contract with the hospital that included providing preventive maintenance, repair and toner cartridges for printers. Nichols acknowledges that from August 2010 to October 2011, he used Tech-Optics’ computer inventory system to order toner cartridges for Children’s. The hospital paid for the cartridges, but Nichols sold them to an Alabama company, Image Craft, which bought new and used toner cartridges.
Due to Nichols’ scheme, Children’s paid $426,986 to Tech-Optics for items Nichols ordered, and then sold to Image Craft. Children’s ceased payments in December 2011, leaving a balance to Tech-Optics of $140,956, according to court documents. The judge ordered Nichols to pay restitution in those amounts to the two victims.
Between August 2010 and March 2012, Nichols sold about 6,316 items to Image Craft, according to his plea agreement. Of those items, about 4,900 were printer cartridges Nichols charged to Children’s and the remaining items included laptop computers, printers, printer parts and fax machines he had stolen from the hospital. Nichols received $234,525 from Image Craft for the equipment, according to the plea agreement.
The FBI investigated the case, which Assistant U.S. Attorney Henry Cornelius prosecuted.
Colorado Man Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Joshua Julian, age 24, of Denver, Colorado appeared before Chief U.S. District Judge Jeffrey L. Viken on February 22, 2013 and pled guilty to Conspiracy to Distribute a Controlled Substance. The maximum penalty upon conviction is 20 years of imprisonment and/or a $1,000,000 fine.
Between September 1, 2009, and February 16, 2010, Julian conspired with others to intentionally distribute, and possess with the intent to distribute cocaine, in South Dakota. The investigation was conducted by the Drug Enforcement Agency and Unified Narcotics Enforcement Team, which is compromised of the South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and Rapid City Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for June 11, 2013. The defendant was remanded to the custody of the U.S. Marshal pending acceptance of this plea and sentencing.
Citizen of Jamaica Who Illegally Reentered U.S. After Deportation Sentenced to 18 Months in Federal PrisonRead the Press Release
March 14, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD ECCLESTON STEPHENS, 38, a citizen of Jamaica last residing in New Britain, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, STEPHENS was deported from the U.S. to his native Jamaica in April 2001 after he was convicted in Connecticut state court for selling narcotics. He illegally reentered the U.S. and, in June 2004, was arrested in Hartford for interfering/resisting arrest. At the time of his arrest he provided several false names to law enforcement. STEPHENS’ true identity was subsequently determined and he was deported to Jamaica in October 2004.
STEPHENS again illegally reentered the U.S. On September 5, 2012, he was arrested by the Wethersfield Police Department and charged with multiple narcotics offenses and motor vehicle violations. On that date, he also provided law enforcement with false identifying information.
STEPHENS has been detained since his arrest by U.S. Immigration and Customs Enforcement on September 6, 2012. On December 18, 2012, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Chicago Man to Serve Three Consecutive Life Sentences for Danville Murders Related to Drug-TraffickingRead the Press Release
Urbana, Ill. – U.S. District Judge Michael P. McCuskey today ordered a Chicago man to remain in prison for life. Freddell Bryant, 34, was convicted in December 2012 for using a firearm during a drug-trafficking crime that resulted in the deaths of three people in Danville, Ill., nearly six years ago. Bryant, also known as “Freddy Moe,” was ordered to serve three life prison sentences consecutive to each other and consecutive to the 25-year federal prison term he is currently serving for his role in the underlying cocaine and crack cocaine distribution conspiracy.
On Dec. 10, 2012, a jury convicted Bryant for causing the deaths on Mar. 27, 2007, of Rodney Pepper, 30; Madisen E. Leverenz, 19; and Tabreyan L. McCullough, 21. During the trial, the government presented evidence that on March 24, 2007, Bryant learned that multiple kilograms of cocaine that he had McCullough hold for him had been taken from her Danville home. On March 25, 2007, Bryant and others took McCullough to an apartment at 1707 East Main Street to confront Leverenz and Pepper, whom Bryant believed were involved in taking the cocaine. Further evidence was presented that during the ensuing confrontation, Bryant used and carried a firearm during and in relation to the drug conspiracy and that he used the firearm which resulted in the murder of Pepper, Leverenz and McCullough.
In March 2009, Bryant pled guilty to conspiracy to distribute crack cocaine and possession with intent to distribute crack cocaine in Vermilion County from October 2003 to March 2007. Bryant was sentenced on Apr. 29, 2010, to serve 300 months (25 years) in federal prison. Bryant has remained in federal law enforcement custody since his arrest in Chicago in May 2007.
The charges were investigated by the U.S. Drug Enforcement Administration, the Danville Police Department, the Vermilion County Metropolitan Enforcement Group, and the Illinois State Police. The government was represented by Assistant U.S. Attorneys Eugene L. Miller and Jason M. Bohm. The case was prosecuted by the U.S. Attorney’s Office for the Central District of Illinois, Urbana Division, in cooperation with the Vermilion County State’s Attorney’s office.
Charleston Man Sentenced to More Than 12 Years in Federal Prison for Selling Opana PillsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a Charleston man was sentenced to 12 years and seven months in federal prison for distribution of oxymorphone, also known as “Opana.” Maurice Minter, also known as “Mo,” 26, previously pleaded guilty in December 2012. Minter admitted that on August 5, 2011, he sold eight 40-milligram Opana pills to an individual in exchange for $400. Minter was arrested following the pill transaction. Metropolitan Drug Enforcement Network Team (MDENT) officers obtained a search warrant for the defendant’s Charleston residence. During the execution of the search warrant, officers found 180 oxycodone and 109 Opana pills at the residence.
Minter was sentenced as a career offender because of two prior felony controlled substance convictions in the Circuit Court of Cabell County, West Virginia.
The investigation was conducted by MDENT. Assistant United States Attorney Haley Bunn handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
California Man Sentenced for Dealing Cocaine in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A44-year-old San Bernardino, CA, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Reginald Lavann Eastern pleaded guilty on Aug. 30, 2012, to possession with intent to distribute cocaine and was sentenced to 43 months in federal prison today by U.S. District Judge Leonard E. Giblin.
According to information presented in court, on Mar. 4, 2012, Eastern was in possession of approximately 1 kilogram of cocaine which he intended to deliver to others in the Eastern District of Texas.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Boone County Man Sentenced to 3 Years in Federal Prison for Illegal Firearm PossessionRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Boone County man was sentenced to three years in federal prison for being a felon in possession of a firearm. James Franklin Platt, 57, of Whitesville, Boone County, W.Va., previously pleaded guilty to charges contained in an indictment returned in October 2012. Platt admitted that on July 20, 2010, he possessed a .22 caliber revolver near Whitesville, W.Va.
Platt was prohibited from possessing firearms because of a prior felony conviction in February 1992 in the United States District Court for the Southern District of West Virginia for conspiracy to distribute marijuana and aiding and abetting the possession with intent to distribute marijuana. Platt was also previously convicted in June 1999 in the Circuit Court of Boone County, West Virginia of conspiracy to deliver a controlled substance.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
The Boone County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorney Monica Coleman handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Aryan Brother Inmate Sentenced for Federal Hate Crime for Assaulting Fellow InmateRead the Press Release
John Hall, 27, an Aryan Brotherhood member and inmate at the Federal Correctional Institution (FCI) in Seagoville, Texas, was sentenced today by U.S. District Judge Reed O’Connor after pleading guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act stemming from his assault of a fellow inmate, whom he believed to be gay, the Department of Justice announced. Hall assaulted his fellow inmate with a dangerous weapon, causing bodily injury to the victim on Dec. 20, 2011. Hall was sentenced to serve 71 months in prison to be served consecutively with the sentence he is currently serving.
The assault occurred on Dec. 20, 2011, inside the FCI Seagoville when Hall targeted and attacked the victim, a fellow inmate, because he believed the victim was gay or involved in a sexual relationship with another male inmate. Hall repeatedly punched, kicked and stomped on the victim’s face with his shod feet, a dangerous weapon, while yelling a homophobic slur. The victim lost consciousness during the assault and suffered multiple lacerations to his face. The victim also sustained a fractured eye socket, lost a tooth, fractured other teeth and was treated at a hospital for the injuries he sustained during Hall’s unprovoked attack. Hall pleaded guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act on Nov. 8, 2012.
“Brutality and violence based on sexual orientation has no place in a civilized society,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal, including the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, to prosecute acts motivated by hate.”
“This prosecution sends a clear message that this office, in partnership with attorneys in the department’s Civil Rights Division, will prioritize and aggressively prosecute hate crimes and others civil rights violations in North Texas,” said U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
This case was investigated by the FBI Dallas Division. The case was prosecuted by Assistant U.S. Attorney Errin Martin and Trial Attorney Adriana Vieco of the Civil Rights Division.
Aryan Brother Inmate Sentenced for Federal Hate Crime for Assaulting Fellow InmateRead the Press Release
WASHINGTON – John Hall, 27, an Aryan Brotherhood member and inmate at the Federal Correctional Institution (FCI) in Seagoville, Texas, was sentenced today by U.S. District Judge Reed O’Connor after pleading guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act stemming from his assault of a fellow inmate, whom he believed to be gay, the Department of Justice announced. Hall assaulted his fellow inmate with a dangerous weapon, causing bodily injury to the victim on Dec. 20, 2011. Hall was sentenced to serve 71 months in prison to be served consecutively with the sentence he is currently serving.
The assault occurred on Dec. 20, 2011, inside the FCI Seagoville when Hall targeted and attacked the victim, a fellow inmate, because he believed the victim was gay or involved in a sexual relationship with another male inmate. Hall repeatedly punched, kicked and stomped on the victim’s face with his shod feet, a dangerous weapon, while yelling a homophobic slur. The victim lost consciousness during the assault and suffered multiple lacerations to his face. The victim also sustained a fractured eye socket, lost a tooth, fractured other teeth and was treated at a hospital for the injuries he sustained during Hall’s unprovoked attack. Hall pleaded guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act on Nov. 8, 2012.
“Brutality and violence based on sexual orientation has no place in a civilized society,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal, including the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, to prosecute acts motivated by hate.”
“This prosecution sends a clear message that this office, in partnership with attorneys in the department’s Civil Rights Division, will prioritize and aggressively prosecute hate crimes and others civil rights violations in North Texas,” said U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
This case was investigated by the FBI Dallas Division. The case was prosecuted by Assistant U.S. Attorney Errin Martin and Trial Attorney Adriana Vieco of the Civil Rights Division.
Altoona Man Sentenced to Federal Prison for Lying About Military Record and Honors to Obtain VA Health Care BenefitsRead the Press Release
DES MOINES, IA - On March 14, 2013, Jeffrey Scott Kepler, age 53, of Altoona, Iowa, was sentenced by U.S. District Judge John A. Jarvey to one year and one day in federal prison, to be followed by three years of supervised release, announced U.S. Attorney Nicholas A. Klinefeldt.
Kepler pleaded guilty on September 7, 2012, to federal charges of health care fraud. As part of his plea agreement, Kepler admitted to submitting a false United States Department of Defense form, known as a “DD Form 214, Certificate of Release And Discharge From Active Duty,” to the U.S. Department of Veterans Affairs medical center in Des Moines in August 2007, in which he falsely represented his military service in an effort to fraudulently obtain VA medical benefits to which he was not entitled. Between 2007 and 2010, Kepler received over $100,000 in VA health care benefits for which he was not eligible. He also attempted to obtained VA disability benefits to which he was not entitled, but was caught.
Kepler only served in the United States Army for 27 days in 1986, when he was honorably discharged for not meeting medical fitness standards. He received no promotions, awards, or commendations, and was never in combat, and did not serve in the military long enough to earn veterans benefits. In the false DD Form 214, Kepler falsely claimed to have served in the Army for 2 years, 11 months, and 23 days between January 1977 and August 1979, portraying himself as an Airborne Ranger, who qualified for Officer Candidate School, and a war hero, who had been awarded numerous Army medals, including the Silver Star, and twice awarded the Bronze Star and Purple Heart.
Kepler also admitted in court that he had acquired military memorabilia over the years, including various crests, insignia, badges, ribbons, clothing, medals, awards, and military tatoos, which he used from time-to-time to falsely represent himself to individuals and the American Legion as a decorated, Army combat veteran. As part of the plea agreement, Kepler consented to forfeiting or adandoning these items to the United States.
The case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, and was prosecuted by the U.S. Attorney Office for the Southern District of Iowa.
(Download Press Release )
Aliquippa Woman Sentenced to Time Served for Stolen Credit Card SchemeRead the Press Release
PITTSBURGH - A resident of Aliquippa, Pa., has been sentenced in federal court to time served of 19 months incarceration, to be followed by a three-year term of supervised release on her conviction of conspiracy to use stolen credit cards, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence yesterday on Courtney McFeaters, 33.
According to the information presented to the court, McFeaters, along with co-conspirators Calvin Smith and Joseph Dees, conspired to use stolen American Express credit account information to purchase merchandise at retail stores in Pennsylvania, West Virginia and Ohio between December 2010 and June 2011.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Officers from the United States Postal Inspection Service and United States Secret Service, along with along with agents from the Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the prosecution of McFeaters. The WPFCTF was established in February 1995 as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Ali Dwayne Khan 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 March 13, 2013, before Senior U.S. District Judge Jack D. Shanstrom, ALI DWAYNE KHAN, a 33-year-old resident of Billings, appeared for sentencing. KHAN was sentenced to a term of:
Prison: 211 months
Special Assessment: $400
Supervised Release: 5 years
KHAN was sentenced after a federal district court trial in which he was found guilty of conspiracy to possess with intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Assistant U.S. Attorney Marcia K. Hurd prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KHAN will likely serve all of the time imposed by the court. In the federal system, KHAN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Billings Big Sky Safe Streets Task Force and the Federal Bureau of Investigation.
16 Members of an International Money Laundering Scheme Arrested in the United States and ColombiaRead the Press Release
Two indictments were unsealed today in federal court in Brooklyn, New York, charging 19 members of an international money laundering scheme with conspiring to launder tens of millions of dollars in narcotics proceeds.1 According to the indictments and a detention letter filed today by the government, members of the conspiracy laundered tens of millions of dollars in narcotics proceeds from the United States to Colombia between 2006 and 2013. As part of the government’s investigation, law enforcement officers have thus far seized more than $6.5 million in United States currency as well as 52.5 kilograms of heroin, 32 kilograms of cocaine, 63 pounds of marijuana, eight vehicles and three firearms.
Twelve of the defendants were arrested earlier today in Colombia by members of the Colombian National Police. Four other defendants were arrested today in Queens, Long Island, New Jersey and Connecticut. Three additional defendants are already in custody for previously charged crimes and will be transferred to the Eastern District of New York to be arraigned in the coming days. In addition, nine other defendants have previously been arrested in connection with this investigation and charged in separate indictments; six of those defendants have pleaded guilty to the charges. Those defendants arrested today in the New York City metropolitan area will be arraigned later this afternoon before United States Magistrate Judge Lois Bloom at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
According to the indictment and other court filings submitted by the government, the four-year investigation revealed that, between January 2006 and March 2013, individuals operating out of retail shopping malls in Cali, Colombia (“money brokers”) assisted drug trafficking organizations in Colombia by laundering the proceeds of sales of narcotics in the United States. The twelve individuals arrested in Colombia today were money brokers who operated out of the El Diamante, Gran Centro Commercial, San Andresito and Atlantis retail shopping malls in Cali. Photographs of the interior areas of the El Diamante and Gran Centro Commercial shopping malls, where some of these money brokers operated, are attached to this press release.
These twelve money brokers oversaw a large network of confederates to assist in transferring millions of dollars in narcotics proceeds from narcotics distributors in the United States to narcotics suppliers in Colombia. The money brokers employed many individuals known as “money movers,” i.e., people responsible for collecting narcotics proceeds and disposing of those proceeds as directed by either the drug trafficking organization or the money brokers. The money movers served as go-betweens, taking the proceeds from narcotics distributors in the United States and eventually passing the money to other members of the organization, who repatriated the proceeds to Colombia.
The four individuals arrested today in the United States (and the three others already in custody on other charges) were money movers. They received phone numbers and code words from the money brokers to use to contact and identify the recipients to whom they were to deliver the narcotics proceeds. The money movers concealed and transported amounts ranging from thousands to hundreds of thousands of dollars in narcotics proceeds at a time, hidden within compartments in vehicles, gasoline containers, duffel bags and shoeboxes. These cash deliveries took place in locations such as parking lots of retail stores and fast food restaurants in Queens, New York, and elsewhere. At these meeting places, the money movers delivered the United States currency, which often was bundled and heat sealed, to other members of the organization.
“Money laundering is the lifeblood of the narcotics trade, both here in the US and in Colombia,” stated United States Attorney Lynch. “The individuals arrested and charged today are alleged to have worked to funnel tens of millions of dollars in narcotics proceeds out of the US and back to narcotics traffickers in Colombia. This international investigation illustrates our resolve to fight these schemes both here and abroad. As several of today’s defendants have learned, distance does not insulate them from the reach of our investigation and our resolve. With these charges, we focus not just on those who moved money in the US but also on those who furthered this scheme in Colombia. We and our partners in law enforcement are committed to investigating and prosecuting international drug traffickers and seizing the proceeds of their crimes. We remain relentless in this pursuit.” Ms. Lynch expressed her grateful appreciation to the Colombian National Police, particularly the Investigative Directorate and members of the HSI Transnational Criminal Investigations Unit, for their hard work and dedication throughout the investigation. Ms. Lynch also thanked the HSI attaché in Bogota and the HSI Hartford Office for their assistance. The investigation was led by agents with HSI New York serving on the El Dorado Task Force, which investigates narcotics trafficking and narcotics money laundering.
ICE/HSI Special Agent-in-Charge Hayes stated, “As alleged, the brokers and members of this money laundering organization orchestrated the transfer of millions of dollars in illicit narcotics proceeds to circumvent law enforcement in the United States and reap their illicit gains abroad. HSI is dedicated to combating criminal organizations by severing their financial life line.”
If convicted, the defendants face a maximum penalty of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Douglas Pravda, Brendan King and Tiana Demas.
The Defendants:
FABER ENRIQUE BERMUDEZ ARCINIEGAS
Age: 33HARBI CAICEDO
Age: 49ALEXANDER HENAO CHAMORRO
Age: 35EDWIN ARENAS CHAMORRO
Age: 38LUIS ANIBAL SALAZAR GARCIA
Age: 49JOSE LEONIDAS SALAZAR GARCIA
Age: 54JUAN CARLOS MEJIA GONZALEZ
Age: 48JAVIER ORLANDO ALVAREZ JARAMILLO
Age: 50JOSE LISANDRO ABADIA JIMENEZ
Age: 59JUAN FERNANDO MOLINA JIMENEZ
Age: 54MANUEL ANTONIO CAMPO JIMENEZ
Age: 51NUBIA ABADIA SARRIA
Age: 33RAFAEL ANTONIO ALVAREZ
Age: 33LEONARDO CALDERON-CASTRO
Age: 36JEFFERSON HERNANDEZ
Age: 24JUAN FRANCISCO MONEGRO PERALTA
Age: 29CEASAR STAPLETON
Age: 37MAGDIEL ELIAS VALENCIA
Age: 26
RICHARD VIQUEZ VARGAS
Age: 32_____________________________
1 The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Wednesday 13 March 2013
Weirton Resident Enters Plea in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A 48 year old Weirton, West Virginia, resident entered a plea of guilty on March 6, 2013, in United States District Court in Wheeling before Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: DANNY LEE COOK entered a plea of guilty to “Sale of Stolen Goods Transported Interstate.” COOK obtained over 6,300 pounds of copper wire that he knew to be stolen from Mon Power’s Wylie Ridge substation in New Cumberland, West Virginia. COOK then transported the stolen wire to Canonsburg, Pennsylvania, where he sold it to a scrap metal dealer. COOK, who is free on bond pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.
The case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the Federal Bureau of Investigation.
Vice President Biden and Attorney General Holder Announce Grants to Help Reduce Domestic Violence HomicidesRead the Press Release
Vice President Joe Biden and Attorney General Eric Holder today announced grants to 12 programs across the country to target the urgent need to reduce domestic violence homicides. On average, three women a day die as a result of domestic violence Research shows that women whose partner threatens them with a gun or other weapon are 20 times more likely to subsequently be murdered than other abused women. Moreover, children, coworkers, neighbors and police officers are also killed as a result of domestic violence. From 2009 to 2012, 40 percent of mass shootings – those with four or more victims killed – started with the murderer targeting their girlfriend, wife or ex-wife.
In total, the Department of Justice will award $2.3 million to 12 sites across the country as part of the new Domestic Violence Homicide Prevention Demonstration Initiative (DVHP Initiative). The DVHP Initiative, created by the Justice Department’s Office on Violence Against Women, (OVW) helps state and local jurisdictions reduce domestic violence homicides by effectively identifying potential victims and monitoring high-risk offenders. The DVHP Initiative is modeled after programs in Massachusetts and Maryland, where the use of coordinated teams of law enforcement, prosecutors, health professionals and victims’ services significantly reduced the domestic violence homicide rate.
“Every single day in America, three women die at the hands of their boyfriend, or their husband, or their ex-husband. Many of these women have been threatened or severely abused in the past. We know what risk factors put someone in greater danger of being killed by the person they love – and that also means we have the opportunity to step in and try to prevent these murders. That’s why these grants are so important. They’ll help stop violence before it turns deadly,” said Vice President Biden.
“Domestic violence is a devastating crime – and it claims far too many lives each and every day,” said Attorney General Holder. “With today’s grant announcement, we are strengthening our ability to fight back more effectively – and aggressively – than ever before. And we’re supporting the kinds of evidence-based domestic violence homicide prevention models that will allow us to reliably predict potentially lethal behavior, take steps to stop the escalation of violence and save lives.”
The Vice President and Attorney General announced the grant awards in Rockville, Md., where they were joined by dozens of Maryland law enforcement officers who have been at the forefront of domestic violence homicide prevention efforts in that state.
“While the statistics seem overwhelming, we are not helpless in the face of these terrible crimes,” said Acting Director of Office on Violence Against Women Bea Hanson. “We hope this evidence-based initiative to reduce domestic violence homicide is a breakthrough in preventing murders and serious injuries across the country.”
The new DVHP Initiative is based on an assessment tool that researchers have identified that can be used to reliably recognize women who may be in fatally abusive relationships. Attempted strangulation, threats with weapons, sexual assault and obsessively jealous and controlling behavior are among the markers of particularly lethal abusers. Once at-risk victims are identified, law enforcement, prosecutors, courts and service providers can take action to protect them and their families.
Since passage of the Violence Against Women Act (VAWA) in 1994, annual rates of domestic violence have dropped by more than 60 percent, but more work remains to reduce the most serious of this violence. OVW is partnering with the National Institute of Justice to rigorously monitor the implementation of the initiative and evaluate its outcomes. OVW is also working with national experts to provide technical assistance to the demonstration sites.
The demonstration sites, each receiving one-year awards ranging from $100,658 to $200,000, are: Contra Costa County, Calif.; Miami-Dade County, Fla.; Palm Beach County, Fla.; Rockdale County, Ga.; Winnebago County, Ill.; Boston; Brooklyn, N.Y.; Westchester County, N.Y.; Pitt County, N.C.; Cuyahoga County, Ohio; North Charleston, S.C.; and Rutland, Vt. After the 12-month assessment phase, up to six of the demonstration sites will be selected to continue a three-year implementation phase.
Click HERE for the fact sheet the Obama Administration’s commitment to reducing domestic violence homicides.
Click HERE for the fact sheet on the link between common sense efforts to reduce gun violence and preventing domestic violence homicides.
Related Materials:
Attorney General Eric Holder Speaks at the Domestic Violence Homicide Prevention Initiative Announcement
U.S. Attorney Durkan Testifies Before House Judiciary Subcommittee Regarding Cybercrime ProsecutionsRead the Press Release
U.S. Attorney Jenny A. Durkan testified today on behalf of the U.S. Justice Department in Washington, D.C before the U.S. House of Representatives Judiciary Subcommittee on Crime, Terrorism, Homeland Security and Investigations. The topic of the hearing was “Investigating and Prosecuting 21st Century Cyber Threats.” U.S. Attorney Durkan is Chair of the Attorney General’s Advisory Committee, Subcommittee on Cybercrime and Intellectual Property Enforcement. U.S. Attorney Durkan's testimony is available here.
Two Plead Guilty to Participation in International Conspiracy to Import and Distribute Prescription Drugs and Anabolic SteroidsRead the Press Release
PROVIDENCE, R.I. – Two Rhode Island men have pleaded guilty in U.S. District Court in Providence, R.I., to participating in an international conspiracy to illegally import and distribute prescription drugs and anabolic steroids.
Edmond Paolucci, 54, of Coventry, and Patrick Cunningham, 44, of Cranston, admitted to the court that they participated in a conspiracy to repackage the illegal drugs and sell them under various names and labels to consumers who placed orders via the Internet. A significant portion of the proceeds realized from the sale of the illegal drugs was laundered back to individuals in Israel.
Paolucci and Cunningham’s guilty pleas were announced by United States Attorney Peter F. Neronha; Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigation.
According to information presented to the court, an investigation by the Rhode Island FDA Task Force revealed that from at least November 2009 until November 2011, Mr. Paolucci served as a U.S. confederate of an Israelis-based, international drug distribution ring that was also responsible for the manufacture and sale of prescription drugs, including drugs bearing the underground brand names Sciroxx and Xsorox in the United States and elsewhere.
According to information presented to the court, various misbranded prescription drugs as well as bulk quantities of pills and injectable oil-based drugs in 650 ml. jugs were shipped from Israel, Turkey and Bulgaria to postal boxes in Rhode Island, Massachusetts and Connecticut. Through his co-conspirators in Rhode Island, including Patrick Cunningham, Mr. Paolucci used an underground laboratory to repackage the drugs into retail-size pill packets and 10 ml vials, bearing Sciroxx and Xsorox labels that he then shipped to customers in the United States who had made purchases on websites operated by Mr. Paolucci and his Israeli co-conspirators. A significant portion of the proceeds from the sale of the misbranded and mislabeled drugs was sent back to co-conspirators in Israel.
Court authorized searches of Paolucci and Cunningham’s residences resulted in the seizure of a large amount of paraphernalia related to the manufacture and distribution of steroids. Agents also found various non-controlled and controlled drugs including 10 ml vials labeled as containing the anabolic steroids Testosterone, Enanthate, Boldenone, and Trenbolone.
According to information presented to the court, records obtained from money transfer service companies showed that from February 2009 to September 2011 Mr. Paolucci transferred in excess of $76,000 in proceeds from steroid and prescription drug sales to individuals in Israel.
Patrick Cunningham pleaded guilty on Tuesday to one count each conspiracy to distribute steroids and distribution of a misbranded drug. The defendant is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on May 28, 2013.
Edmond Paolucci pleaded guilty on November 28, 2012, to one count each of conspiracy to distribute steroids, possession with the intent to distribute steroids, distribution of a misbranded drug, and money laundering. The defendant is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on April 9, 2013.
Conspiracy to distribute steroids and possession with the intent to distribute steroids is punishable by a maximum sentence of up to 10 years in federal prison; a fine up to $500,000; and a term of supervised release of 2 years to life. Distribution of a misbranded drug and money laundering is punishable by a maximum sentence of up to 3 years in federal prison; a fine of up to $10,000; and a term of supervised release of 2 years.
The case is being prosecuted by Assistant U.S. Attorney Richard B. Myrus.
A task force led by the Food and Drug Administration, Office of Criminal Investigations, conducted the investigation. The task force partnerships include the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigation, the U.S. Postal Inspection Service, the Immigration and Customs Enforcement, Homeland Security Investigations, the Rhode Island State Police, the North Providence Police, the East Providence Police, and the Rhode Island National Guard.
United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigation, acknowledged the assistance of international counterparts at the Israel Ministry of Health, Division of Enforcement and Inspection, and Jerusalem Customs and VAT who provided significant assistance in the investigation of this matter.
Contact: 401-709-5357
[email protected]Twenty-Six Charged with Operating Major Peninsula Drug Trafficking RingRead the Press Release
NEWPORT NEWS, Va. – Twenty-six alleged members of a major drug trafficking ring operating throughout the Virginia Peninsula were charged in federal court today following coordinated arrests that began early this morning as part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation dubbed “Dragon’s Lair.”
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Field Division; and James D. Fox, Chief of Newport News Police, made the announcement after the court documents were unsealed.
“After law enforcement dismantled the major heroin trafficking rings in Tidewater, this organization allegedly stepped in to fill the demand,” said U.S. Attorney MacBride. “Since last October, at least four more people have overdosed on heroin and died on the Peninsula. Today’s charges are part of an ongoing effort to go after those who traffic these highly addictive and dangerous drugs that threaten our communities.”
“Operation Dragons Lair targeted what we allege to be an extremely violent cocaine and heroin drug trafficking organization operating in the Newport News and Hampton Roads areas of Virginia for more than a decade” stated DEA SAC Colder. “This investigation exemplifies how positive working relationships can result in removing violent offenders from our streets.”
“This is yet another example of local, state and federal law enforcement agencies and prosecutors working as a team to identify, arrest and prosecute those we allege are involved in the distribution of extremely dangerous illegal drugs” said Chief Fox. “While this operation seeks to put a large dent in the heroin distribution in this area, the good citizens of Hampton Roads can rest assured that this team of dedicated professionals will continue to identify and bring to justice those who are poisoning the community with illegal drugs.”
Those arrested this morning will make their initial appearance at 3 p.m. in the Norfolk federal courthouse before United States Magistrate Judge Douglas E. Miller.
The charges were unsealed today in two separate, but related, charging documents. Christopher Devon Barrett, 26, of Hampton, Va., and 12 alleged co-conspirators were charged by criminal complaint with conspiracy to distribute five kilograms or more of cocaine, 280 grams or more of crack cocaine and one kilogram or more of heroin. The criminal complaint alleges that the group originally trafficked crack cocaine and firearms since at least 2005, but recently branched out into selling heroin as a result of the successful arrest and prosecution of Peninsula groups involved in distributing heroin.
In September 2008, a prisoner at the Newport News City Farm died in a heroin overdose. That death spurred law enforcement to intensify their focus on the threat posed from heroin abuse within the Virginia Peninsula, which resulted in the federal prosecution of more than 70 defendants and the dismantling of three separate heroin drug trafficking organizations. The criminal complaint unsealed today states that as part of this ongoing investigation, agents are investigating at least four heroin overdose deaths that have occurred on the Virginia Peninsula since October 2012.
Barrett is alleged to be the leader of this violent drug trafficking organization, arranging for suppliers and running the day-to-day affairs of the conspiracy from the Colonial Landing Apartment complex in Hampton, Va.
Those charged today with Barrett include the following individuals:
- Wayne Dominique Barrett, 24, of Newport News, Va., and Demetrius Deangelo Askew, 31, of Hampton, Va. are alleged to be lieutenants in the criminal organization.
- Donald Lorenzo Smith, 29, Newport News, Va., Jetadia Sirica Cook, 35, of Newport News, Va., Stacy Ray Wise, 26, of Newport News, Va., Darryl Michael Elliott, 46, of Hampton, Va., Dominic Donte Walker, 26, of Hampton, Va., and Timothy Ray Alexander, 42, of Hampton, Va., are alleged to be mid-level distributors for the criminal organization.
- William Lewis Cofield, Sr., 58, of Hampton, Va., Larry Daniel Stokes, 55, of Hampton, Va., and Warren Lester Tribble, 62, of Hampton, Va. are alleged to be lower level distributors that sold narcotics and facilitated the activities of the criminal organization by transporting members of the conspiracy and narcotics from one location to another, and by allowing their residences to be used to package, store and distribute narcotics.
- Andrea Lanell Barrett, 24, of Newport News, Va., is the sister of Christopher Barrett, and is alleged to broker sales of narcotics and store firearms for the criminal organization. She is also alleged to facilitate the activities of the organization by renting cars for members of the drug trafficking organization.
Each individual charged by the criminal complaint faces a mandatory minimum of 10 years and a maximum of life in prison, if convicted.
In addition to those charged as alleged members of the Barrett drug trafficking organization, in a related indictment also unsealed today Steven Lavonne Morris, 38, of Newport News, Va., is alleged to be the leader of a cocaine drug trafficking organization supplied by sources in New York City and Atlanta, Ga. The indictment alleges that Morris obtained kilogram quantities of cocaine in New York and Atlanta, and supervised the transport of the cocaine to the Virginia Peninsula. The criminal organization generally paid from $40,000 to $44,000 per kilogram for cocaine. According to the Barrett criminal complaint, Morris and Barrett conspired with each other to purchase cocaine through the same sources in New York and distribute it throughout Tidewater. On Feb. 23, 2013, Morris and three others were arrested in a parking lot on West Mercury Boulevard, Hampton, Va., allegedly in possession of approximately 900 grams of cocaine. Agents allegedly located approximately $87,918 in U.S. currency at Morris’s residence later that evening.
Those indicted with Morris and charged with conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine include:
- Jonathan Holguin, 24, of New York, N.Y. and Edwin Fernandez, 28, of New York, N.Y., are alleged to be cocaine suppliers to Morris and the members of this conspiracy.
- Frederick Lavan Womack, 34, of Hampton, Va., is alleged to be a lieutenant in the Morris drug trafficking organization, traveling with Morris to New York City and converting cocaine powder into crack cocaine at Morris’s direction.
- Bradley Maurice Cephas, 38, of Newport News, Va.; James King Artis, II, 38, of Hampton, Va.; Aaron Evan Smith, 31, of Yorktown, Va.; Christopher Michael Flowers, 40, of Hampton, Va.; Leroy Cornelius Bugg, 33, of Hampton, Va.; and Arthur Gadsden, Jr., 41, of Newport News, Va., are alleged to be mid-level distributors who provided the drugs to street-level distributors and customers.
- James Vincent Taylor; 30, of Hampton, Va.; Alesha Dubrey Cousins; 30, of Hampton, Va.; and Tinesha Monica Dubrey, 31, of Hampton, Va., allegedly served as facilitators and couriers for Morris’s drug trafficking organization.
Each individual charged in the indictment faces a mandatory minimum of 10 years and a maximum of life in prison, if convicted.
This OCDETF operation was led by the DEA Hampton Post of Duty. The investigative team included the Newport News Police Department, the Newport News Sheriff’s Department, the Virginia State Police, and the Hampton Police Division. Assistant United States Attorney Laura Tayman is prosecuting the case on behalf of the United States.
The public is reminded that an indictment and a criminal complaint only contain charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
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.Third Defendant in Ticket-Fixing Scheme Pleads GuiltyRead the Press Release
PHILADELPHIA - Fortunato Perri, 76, of Philadelphia, PA, pleaded guilty today to taking part in a fraud scheme involving nine other judges at Philadelphia Traffic Court. Perri pleaded guilty to conspiracy to commit wire fraud and mail fraud, one count of mail fraud, and two counts of wire fraud. He faces a possible advisory sentencing guideline range of zero to six months in prison, before variances or departures.
Perri admitted receiving free auto repairs, free towing, free videos, and free seafood from a co-defendant in exchange for “fixing” tickets. Perri would receive traffic citation numbers, the names of offenders, or the actual citations to arrange “fixing” the ticket and would convey the information to William Hird, Director of Records, charged elsewhere. Hird, in turn, allegedly conveyed the request to the assigned judge. Court authorized intercepted telephone conversations reveal that Perri prioritized assisting the co-defendant from whom he received free services.
Defendant Hird, it is alleged, was extremely loyal to Perri given that Perri helped Hird move up the ladder to a high-level administrator at Traffic Court. Recorded conversations demonstrate that Hird acceded to Perri’s requests to “fix” certain tickets. Given Hird’s position at Traffic Court and access to the judges, Hird was allegedly able to facilitate requests for ticket fixing for Perri.
As part of the scheme, tickets were “fixed” by either being dismissed, finding the ticket holder “not guilty,” or finding the ticket holder guilty of a lesser offense. In many cases, the ticket holder did not even appear in Traffic Court, yet their ticket was “fixed.” As a result, the ticketholders paid lesser or no fines and costs, and evaded the assessment of “points” on their driver’s record. This widespread “ticket-fixing” defrauded both the Commonwealth of Pennsylvania and the City of Philadelphia of funds, and allowed potentially unsafe drivers to remain on the roads.
Perri is the third defendant to plead guilty. Co-defendants H. Warren Hogeland, who was a Bucks County Senior Magisterial District Judge, and Kenneth Miller, who was a Delaware County Senior District Judge, admitted to participating in the practice of giving breaks on Philadelphia traffic citations to friends, family, the politically-connected, and business associates. They entered their guilty pleas on February 12, 2013 and will be sentenced on May 24, 2013.This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tacoma Sex Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
PORTLAND, Ore. — Depri Marquis Spenser, 25, of Tacoma, Washington, was sentenced to 10 years in prison today by United States District Judge Michael H. Simon, for transporting two young girls from Washington to Oregon for the purpose of prostitution. On October 17, 2012, Spenser pleaded guilty to one count of transporting a minor across state lines for prostitution. Upon release from custody, Spenser will serve a 10-year period of supervised release. During his supervised release, he must abide by a number of conditions which include a sex offender assessment and treatment program, no contact with minors without approval, restricted access to computers and the Internet, and registration as a sex offender.
“Attention out of state traffickers,” said U.S. Attorney Amanda Marshall. “If you are caught trafficking girls in this district, we will not send you home. We will send you to federal prison for at least ten years.”
"It is our responsibility as law enforcement to protect the children in our shared community," said Greg Fowler, Special Agent in Charge of the FBI in Oregon. "No child should be put on the street. No child should be sold for sex. No child should be subjected to the violence and abuse and exploitation that these kids are. We can and will come after the pimps who profit off these kids. With the public's help, we will continue to target those pimps, and we look to our partners on the FBI's Child Exploitation Task Force to lead the fight."
Spenser was arrested in February 2012, after transporting two 15-year-old girls from Tacoma to Seattle to Portland for the purpose of sex trafficking. In Portland, Spenser caused the girls to post prostitution advertisements on www.backpage.com, a website frequently used by sex traffickers. Several Portland-area men supported Spenser’s illegal trafficking by responding to these advertisements and setting up “dates” with one of the 15-year-old victims. Spenser drove with the victim to area hotels, dropped her off a few blocks away to avoid detection, picked her up afterwards, and then demanded all of the money she received from the “date.”
This case stemmed from a coordinated investigation by members of the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force (CETF), including the FBI, the Portland Police Bureau’s Minor Victims of Sex Trafficking Unit, and the Washington County Sheriff’s Office. The FBI’s CETF marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. CETF members include the Portland Police Bureau, Tigard Police Department, Vancouver Police Department, and Beaverton Police Department. CETF partners include the Multnomah County Sheriff’s Office and the Hillsboro Police Department. The case was prosecuted by Assistant U.S. Attorney Stacie Beckerman.
Substance Abuse Counselor Pleads Guilty to Federal Health Care Fraud ChargeRead the Press Release
March 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ALAN EMMETT BRADLEY, 57, of Norwalk, Conn., and Ocoee, Fla., pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of health care fraud.
According to court documents and statements made in court, BRADLEY, a certified alcohol and drug abuse counselor, obtained the Medicaid identification numbers of various Medicaid clients and used the identification numbers to submit hundreds of claims to Connecticut’s Department of Social Services. The claims alleged that BRADLEY performed 75 to 80-minute individual psychotherapy sessions to these Medicaid clients at his office in Norwalk. Hundreds of these counseling sessions did not occur and, for many of them, BRADLEY was actually living and attending school in Florida.
The Connecticut Medicaid program is a joint federal-state program designed primarily to finance the provision of medical services to the indigent. It is administered in Connecticut by the Department of Social Services, and is also supervised by the federal Centers for Medicare and Medicaid Service.
Through this scheme, BRADLEY defrauded the Connecticut Medicaid program of $151,898.75.
BRADLEY was arrested in Florida on May 17, 2012. He has been detained since November 29, 2012, after he was found to have violated certain conditions of his pretrial release.
Judge Bryant has scheduled sentencing for June 5, 2013, at which time BRADLEY faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter is being investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Special Assistant United States Attorney Michael Ahearn, Assistant United States Attorney David Sheldon and Auditor Kevin Saunders.
U.S. Attorney Fein encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at 203-777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Spaulding Rehabilitation Hospital North Shore Settles Allegations of Improper Medicare BillingRead the Press Release
BOSTON – On March 12, the United States reached a civil settlement with the Shaughnessy-Kaplan Rehabilitation Hospital (doing business as Spaulding Rehabilitation Hospital for Continuing Medical Care North Shore, or “Spaulding”), resolving allegations that it inappropriately billed Medicare for certain days of patient care in violation of Medicare’s “midnight rule.”
Spaulding has agreed to pay $91,800 to settle the allegations against it. This settlement resolves a civil lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery.
The United States contended that Spaulding billed Medicare for days on which patients left the facility before midnight, in violation of the midnight rule which authorizes Medicare reimbursement only when a patient remains in the nursing facility through midnight on a given day. The investigation revealed that, over a period of years, Spaulding would sometimes transfer patients temporarily to the care of other medical providers before midnight, but still bill Medicare for the preceding day’s stay at Spaulding.
“Health care is too important to allow a single dollar to be wasted,” said United States Attorney Carmen M. Ortiz. “We will continue to investigate claims from whistleblowers to ensure that the tax dollars that fund Medicare and Medicaid are properly allocated.”
“Taxpayers and Medicare bargained to pay an honest day’s pay for an honest day’s work,” said Susan Waddell, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s Boston region. “But when hospitals violate that bargain – as the government charged here – our office will aggressively investigate and prosecute.”
U.S. Attorney Ortiz and SAC Waddell made the announcement today. The case was handled by Assistant United States Attorney Brian Pérez-Daple of Ortiz’s Affirmative Civil Enforcement Unit.
Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in two separate cases regarding foreign nationals who entered the United States illegally after being deported as criminals. In each case, the individual was charged with one count of illegal re-entry after removal.
In the first case, United States District Court Chief Judge Michael J. Davis sentenced Hugo Beltran-Aragon, age 29, to time served. Beltran-Aragon was indicted on February 15, 2011, and pleaded guilty on September 10, 2012. In his plea agreement, Beltran-Aragon admitted that on June 8, 2010, he was found in the U.S. illegally after having been previously deported to Mexico in 2003, following a Hennepin County conviction for third-degree criminal sexual conduct.
This case was the result of an investigation by the Brooklyn Park Police Department and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (“ICE ERO”). It was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.In the second case, on March 11, 2013, Sergio Vasquez, age 36, pleaded guilty before U.S. District Court Judge Susan Richard Nelson in St. Paul. He was indicted on January 8, 2013. In his plea agreement, Vasquez admitted that on December 4, 2012, he was found in the U.S. after having been previously deported to Mexico in 2008, following a 2003 Pennsylvania conviction for delivery of a controlled substance. On December 3, 2012, Vasquez was arrested by Minneapolis Police for DWI in connection to a personal-injury crash in south Minneapolis. He was identified as an illegal alien with a criminal record. That identification was made though the ICE’s Criminal Alien Program (“CAP”). The goal of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.
For his crime, Vasquez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Police Department and ICE ERO. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Both men will be deported after serving their federal sentences. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/Owner of Tax Preparation Business Sentenced<br /> in Alabama to Federal PrisonRead the Press Release
Bruce King, the founder and operator of Premier Tax, was sentenced today in Montgomery, Ala., to 70 months in prison and ordered to pay $781,305 in restitution to the Internal Revenue Service (IRS) for orchestrating a tax fraud scheme at his business, the Justice Department and the IRS announced. King had previously pleaded guilty to charges of conspiring to defraud the United States and filing false tax returns.
According to court documents, Premier Tax was a tax preparation business operated by King that had several locations in Alabama and Georgia. King held training sessions in which he taught preparers how to falsify tax returns in order to fraudulently increase clients’ tax refunds. Those he taught went on to work at Premier Tax and filed numerous false tax returns. According to court documents, the tax loss caused by these fraudulent returns exceeded $1 million. To date, seven return preparers trained by King have also pleaded guilty and been sentenced.
This case was investigated by special agents of the IRS - Criminal Investigation. Trial Attorneys Jason Poole and Justin Gelfand of the Justice Department’s Tax Division and Assistant U.S. Attorney Jared Morris are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Owner of Colorado Aircraft Painting Company Pleads Guilty to Unlawfully Treating Hazardous WasteRead the Press Release
Norman Teltow, owner of Gold Metal Paint Co. LLC (GMP), pleaded guilty late yesterday in Denver to a criminal information charging him with illegally treating hazardous waste at the company’s facility, the Justice Department announced. Teltow, who will be sentenced on June 10, 2013, faces a maximum sentence of five years in prison, a $250,000 fine, and three years of supervised release.
Teltow operated GMP out of a hangar near the Front Range Airport in Watkins, Colo. GMP was primarily in the business of painting small aircraft. During the course of its business, GMP created hazardous waste in the form of spent methylene chloride-based solvents mixed with paint waste. Methylene chloride, a listed hazardous waste, is both ignitable and toxic. Moreover, exposure to methylene chloride can cause skin irritation, headache, dizziness, nausea, and vomiting.
Under the Resource Conservation and Recovery Act, GMP was required to use a licensed waste management company to transport the hazardous waste to a licensed facility for disposal. To avoid the costs associated with proper disposal, Teltow directed GMP employees to store the spent solvents in an underground tank below the facility, knowing that it was illegal to store the waste in that manner.When the Colorado Department of Public Health and Environment (CDPHE) became aware that Teltow and GMP were storing hazardous waste in an underground tank, the agency conducted an inspection and ordered Teltow to hire a licensed waste management company to pump the waste out of the tank and dispose of it properly. CDPHE further ordered that the tank be cleaned, that the trench drain leading to the underground tank be sealed, and that GMP use a licensed waste management company to transport all hazardous waste in the future. In response to CDPHE’s orders, Teltow hired a licensed waste management company to pump out the tank, and sealed off the trench drain to the underground tank. However, rather than hire a licensed waste management company to clean out the tank, Teltow ordered subordinate employees to clean out the tank without the benefit of any personal protective equipment. The employees were exposed to hazardous waste containing methylene chloride, and suffered from headaches, dizziness, and nausea.
Teltow then devised a new plan for treating GMP’s hazardous waste by “evaporating” it into the atmosphere. Teltow ordered subordinate GMP employees to pour the hazardous waste onto the floor of the hangar at the end of the work day. Workers would then leave the hangar doors ajar and allow the methylene-chloride waste to evaporate. Teltow knew that it was illegal to treat the hazardous waste in this manner. When Teltow’s “evaporation” method was unsuccessful at treating all of the waste that GMP accumulated, Teltow drilled open the trench drain so that the waste could again flow into the underground tank.
“The illegal handling of hazardous waste threatens public safety and the environment and puts workers in harms way,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Colorado. “The defendant admits that he attempted to make hazardous waste ‘disappear’ by ordering his workers to allow spent solvents to evaporate and to clean up hazardous chemicals without protective safety gear, putting the workers at great risk. Although this case centers on the illegal treatment of hazardous materials, it’s really about the defendant trying to save a buck by cutting corners.”
The investigation was conducted by the Environmental Protection Agency, Criminal Investigation Division, with assistance from inspectors at the Occupational Safety and Health Administration and CDPHE. The case was prosecuted by James B. Nelson of the Department of Justice’s Environmental Crimes Section
Owner and Manager of Disaster Restoration, Inc. Sentenced to Prison for Conspiracy and Mail FraudRead the Press Release
DENVER – The owner/operator of Disaster Restoration, Inc., Michael Arthur Griggs, age 58, of Lafayette, Colorado, was sentenced today by Chief U.S. District Court Judge Marcia S. Krieger to serve 50 months in federal prison today for conspiracy and mail fraud, the U.S. Attorney’s Office and the U.S. Postal Inspection Service announced. Following his prison sentence, Chief Judge Krieger sentenced Griggs to serve 3 years on supervised release. He was also ordered to pay a $500,000 fine, and $477,643.49 in restitution. He was ordered to report to a facility designated by the Bureau of Prisons within 15 days of designation.
A co-defendant, Charles Sharp, age 52, of Broomfield, Colorado, the chief operating officer/general manager, was sentenced by Chief Judge Krieger on March 11, 2013, to serve 36 months in prison, followed by 3 years of supervised release. He was also ordered to pay restitution totaling $477,643.49 joint and several with Griggs. In August of 2012, a jury found Griggs guilty of one count of conspiracy and 13 counts of mail fraud. The jury also found Sharp guilty of one count of conspiracy and 9 counts of mail fraud.
Disaster Restoration, Inc., (DRI), was a Colorado corporation located in Denver, Colorado. DRI engaged in the repair, restoration, and reconstruction of commercial and residential real estate properties that have been damaged by fire, water, and other disasters. DRI acted as a general contractor, which regularly hired and paid subcontractors to restore damaged properties and then submitted the cost of the repairs made by these subcontractors to insurance companies for payment.
At trial the government proved that beginning in or about the Fall of 2003, and continuing until approximately early 2007, the defendants knowingly agreed and conspired with each other to commit mail fraud. Further, every Tuesday, DRI would hold an internal meeting where they often discussed how to instruct many of the subcontractors working for DRI to inflate their original bid proposals by 20% to 30%. DRI employees regularly instructed subcontractors to provide DRI with two different documents reflecting their bids, one inflated and one non-inflated, for the same work they would perform for DRI. The inflated price was to be submitted to the insurance company for payment while DRI would pay the subcontractor based on the lower original price. DRI pocketed the difference between the inflated price paid by the insurance company and the lower price paid out to the subcontractor thereby increasing, often substantially, DRI’s profit margin on DRI’s restoration projects.
The insurance companies relied on these false and inflated subcontractor prices when they made payments for the restoration projects performed and supervised by DRI. Most of these insurance payments were sent through the United States Postal System. DRI would, in turn, issue checks payable to the subcontractors and mail them as well.
“Insurance fraud results in higher premiums for everyone,” said U.S. Attorney John Walsh. “I would like to recognize the hard work of the prosecutors from the U.S. Attorney’s Office, for obtaining a conviction in this case. I would also like to thank the Postal Inspectors who worked so diligently preparing this case for prosecution.”
“Insurance fraud, like many financial crimes, erodes the integrity of our Insurance Industry, and threatens the financial health of our communities,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “It is critical we make every effort to protect the public from insurance fraud and its impact on our consumers by ensuring the integrity of the U.S. Mail.”
The case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
####
Orange County Couple Sentenced to Prison in Federal Fraud Case for Bilking Seven Banks Out of Nearly $5 MillionRead the Press Release
SANTA ANA, California – A husband and wife from Newport Coast have been sentenced to federal prison for defrauding a consortium of seven banks, including Bank of America, in connection with a $130 million line of credit.
Thomas Chia Fu, 64, was sentenced yesterday to 21 months in federal prison.
Fu’s wife, Cheri L. Shyu (also known as Cheri Fu), 61, was sentenced on March 4 to three years in federal prison.
In addition to the prison terms, United States District Judge Cormac J. Carney ordered to Fus to pay $4.7 million in restitution.
The Fus owned Anaheim-based Galleria USA, Inc., which imported home decor items manufactured in China. The Fus obtained a $130 million revolving line of credit for Galleria from a consortium of seven banks. In connection with that revolving line of credit, the couple overstated by tens of millions of dollars the accounts receivables of the company – lies they told the banks in order to continue borrowing funds under the revolving line of credit, according to court documents. When they pleaded guilty last year, the Fus also admitted to falsifying in Galleria’s computer system the accounts receivable amounts by a factor of 10 or more times the actual amount purchased to support the exaggerated numbers and hide Galleria’s true financial status.
“Bank fraud is not a victimless crime as it has detrimental effects on both creditors and consumers,” said United States Attorney André Birotte Jr. “The Fus plundered a consortium of banks, which deprived legitimate customers from having access to the those funds and caused the financial institutions to suffer millions of dollars in losses. The prison sentences issued to this couple demonstrate our resolve to hold fraudsters accountable for their crimes.”
The banks suffered losses of $4.7 million on the revolving line of credit from October 2008 to July 2009.
This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Bureau of Investigation, and the United States Secret Service.
“At a time when taxpayers were bailing out Bank of America and United Commercial Bank with TARP funds, Thomas and Cheri Fu defrauded those banks and others out of nearly $5 million,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “The Fus fraudulently obtained funds from the TARP banks and other banks using a second set of books that overstated accounts receivable. They lived comfortably off the money, buying property and putting their daughter through college, when many taxpayers who funded the bailout were tightening their belts. Illegally profiting from the TARP bailout is reprehensible and will be met with swift justice by SIGTARP and our law enforcement partners.”
SIGTARP investigates fraud, waste, and abuse in connection with the Troubled Asset Relief Program (TARP). To report suspected illicit activity involving TARP, call the SIGTARP Hotline at 1-877-SIG-2009 (1-877-744-2009).
Release No. 13-034
Olathe Contractor Pleads Guilty to Tax EvasionRead the Press Release
KANSAS CITY, KAN. – The owner of an Olathe drywall contracting company has pleaded guilty to failing to pay more than $370,000 in federal income taxes, U.S. Attorney Barry Grissom said today.
Marcos Bowman, 41, Olathe, Kan., pleaded guilty to one count of federal tax evasion. In his plea, he admitted he did not file an individual income tax return in 2007, 2008 and 2009 even though the company he owned, BCK Drywall, had gross receipts during those years of more than $7.9 million. Based on bank records and other sources, he owed at least $373,473 dollars in income tax during those years.
Bowman’s company installed drywall on new commercial projects such as hotels and apartments. Bowman paid for his personal expenses out of BCK’s bank accounts. He took actions to avoid taxes including paying for a girlfriend to purchase a $355,000 home in Olathe in her name and then transfer the property to the mother of his children. He also paid for the purchase of several vehicles in his girlfriend’s name.
He also failed to provide subcontractors who did work for his company with Form 1099s so they could report the income they received from him on their own tax returns.
Sentencing is set for June 17. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. IRS Criminal Investigation investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
New Haven Man Sentenced to 30 Months in Federal Prison for Distributing HeroinRead the Press Release
March 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that CARL HAILEY, also known as “Squirt,” 48, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 30 months of imprisonment, followed by five years of supervised release, for distributing heroin.
HAILEY is one of 108 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that HAILEY conspired with others to purchase and redistribute heroin.
HAILEY was on state special parole at the time of this offense, and he has been detained in state custody since February 14, 2012, for violating his parole. His maximum release date from state custody is January 22, 2014.
Judge Burns ordered HAILEY to begin serving his 30-month federal sentence after his release from state custody.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided invaluable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Middlesex County, N.J., Man Charged with Five Bank RobberiesRead the Press Release
NEWARK, N.J. – A New Brunswick, N.J. man has been arrested in connection with five bank robberies, U.S. Attorney Paul J. Fishman announced today.
Peter Greer, 38, of New Brunswick, N.J., is charged by Complaint with five counts of bank robbery. He made his first court appearance later today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the Complaint:
Greer robbed three banks in Essex County, one bank in Passaic County and attempted to rob one bank in Essex County. Greer used a similar procedure for all robberies: After entering the bank and approaching the teller window, he would hand the victim teller a note that claimed he had a gun and demanded money.
The banks Greer is charged with robbing are:
∙ Sept. 27, 2012, Valley National Bank, Newark;
∙ Oct. 31, 2012, Greer attempted to rob Sovereign Bank, Newark;
∙ Nov. 6, 2012, Valley National Bank, Belleville, N.J.;
∙ Dec. 8, 2012, Valley National Bank, Passaic, N.J.;
∙ Feb. 23, 2013, Valley National Bank Belleville.If convicted on the bank robbery charges, Greer faces a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, for each count with which he is charged.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez, with the investigation leading to charges. He also thanked N.J. State Parole Board, the Newark Police Department, the Passaic Police Department and the Passaic County Sheriff’s Department for their contributions to the case.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-117
Defense Counsel: Linda Foster Esq., Assistant Federal Public Defender, NewarkGreer Complaint
Manhattan U.S. Attorney Announces Arrest of Four Bronx Men in Connection with Robbery and Shooting of Off-Duty Police OfficerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Joseph Anarumo, Jr., Special-Agent-in-Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced that JEFFREY OKINE, MARQUIS DANIELS, RAYSHAUN JONES, and TYQUEZ HARRELL were arrested today on robbery and gun charges in connection with their alleged January 2013 attempt to rob employees at a used car dealership in the Bronx, including off-duty NYPD Police Officer Juan Pichardo. Officer Pichardo was allegedly shot in the leg by OKINE during the course of the robbery. OKINE, DANIELS, JONES, and HARRELL were arrested and taken into federal custody today at Rikers Island, where they were being held since January 4, 2013, on state charges for these offenses. All four defendants will be presented in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “Officer Juan Pichardo was true to his NYPD badge, even off duty, when he bravely resisted this alleged armed robbery and it was sheer luck that he was not fatally injured doing so. These four defendants, who are alleged to have engaged in a robbery spree in the Bronx, will now have to answer for their conduct.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said: “Gun violence in our community is unacceptable. Particular to this arrest, allegations involving the use of firearms in a violent act to include the shooting of an off-duty NYPD Officer will not be tolerated. The United States Attorney’s Office, NYPD and ATF have worked jointly on this matter to ensure that these perpetrators are punished severely under federal law. I commend all who have participated in this investigation.”
NYPD Commissioner Raymond W. Kelly said: “Officer Pichardo was one of three NYPD officers shot in separate incidents in Brooklyn and the Bronx within one hour on Jan. 3. Despite their injuries, he and his colleagues took swift and courageous action to prevent harm from coming to others. The arrests of Officer Pichardo’s alleged assailants show that the New York City police and prosecutors will not relent in bringing to justice those who wield illegal guns and squander the public’s safety.”
According to the allegations in the Complaint unsealed today in Manhattan federal court and other documents in the public record:
OKINE, DANIELS, JONES, and HARRELL robbed employees at a variety of commercial establishments in the Bronx. During a January 3, 2013, robbery, OKINE and HARRELL went to a car dealership and posed as potential buyers. When the off-duty officer and another employee brought them into the dealership’s office, HARRELL took out a gun and ordered the employees to empty their pockets. OKINE and HARRELL took their money and cellphones. HARRELL then gave OKINE the gun and went to inspect a safe. OKINE got into a skirmish with the off-duty police officer and shot him in the leg. He then tried to flee, but two other employees stopped him. HARRELL managed to run away and got into a getaway car, but NYPD officers apprehended and arrested him along with DANIELS and JONES. Among the items recovered from the car was the off-duty officer’s cell phone.
OKINE, 21, DANIELS, 23, JONES, 25, and HARRELL, 22, have all been charged with one count of Hobbs Act robbery conspiracy, which carries a maximum sentence 20 years in prison, and one count of using, possessing and discharging a firearm in relation to a crime of violence, which carries a maximum sentence of life in prison.
Mr. Bharara praised the ATF and the NYPD for their work in this investigation.
The prosecution is being overseen by the Office's Violent Crimes Unit. Assistant United States Attorneys Jessica Ortiz and Parvin Moyne are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Jeffrey Okine, et al. Complaint
Manhattan U.S. Attorney Announces Appointment of Garden City Group as Claims Administrator for Forfeited Funds in U.S. V. Pokerstars That Will Be Returned to VictimsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has retained the Garden City Group (“GCG”) to serve as Claims Administrator to oversee the process of compensating eligible victims of the fraud committed by Full Tilt Poker against United States players that was set forth in both the civil money laundering and forfeiture action United States v. PokerStars, et al., and the indictment United States v. Bitar, et. al.
Manhattan U.S. Attorney Preet Bharara said “The Garden City Group brings a track record of handling the administration of some of the country’s largest and most complicated settlements. With their selection, we take a significant step forward in the process of compensating victims of the Full Tilt Poker scheme.”
In July 2012, the United States entered into settlement agreements with Full Tilt Poker and PokerStars – two of the three online poker companies named as defendants in a civil forfeiture action brought by the United States alleging bank fraud, wire fraud, money laundering, and illegal gambling offenses. Under the terms of the settlement with Full Tilt Poker, the company agreed to forfeit virtually all of its assets to the United States (the “Forfeited Full Tilt Assets”) in order to fully resolve the action. The amended complaint filed in that action alleged that Full Tilt Poker defrauded its players by misrepresenting to the public that player funds held by Full Tilt Poker were safe, secure and available for withdrawal at any time. In reality, the company did not maintain funds sufficient to repay all of its players and instead, utilized player funds to finance more than $400 million in dividend payments to Full Tilt’s owners.
Under the terms of the settlement with PokerStars (the “PokerStars Settlement”), the company agreed, among other things, to forfeit $547 million to the United States and to assume Full Tilt Poker’s liability for the approximately $184 million owed by Full Tilt to foreign players. The PokerStars Settlement also provides that PokerStars will acquire the Forfeited Full Tilt Assets from the Government and also precludes PokerStars from offering online poker for real money in the United States unless and until it becomes permissible to do so under relevant law.
Utilizing funds forfeited from PokerStars in this action, the Department of Justice will establish a process by which eligible U.S. fraud victims will be able to seek compensation for their losses (“Petitions for Remission”). The Garden City Group has been selected as Claims Administrator by the United States to process Petition for Remission claims submitted by the U.S. Full Tilt fraud victims.
GCG is a class action settlement and bankruptcy administration company that has provided comprehensive legal administration services for nearly three decades. GCG has worked on numerous complex administrations, including the Gulf Coast Claims Facility; the Deepwater Horizon Economic and Property Damage Settlement; the Visa Check/MasterMoney Antitrust Litigation; the WorldCom Securities Litigation; and the IPO Securities Litigation.
Eleven defendants were charged criminally in connection with the original Internet poker Indictment, eight of whom have been arrested. The defendants who have been arrested are: Brent Beckley; Raymond Bitar; Nelson Burtnick; John Campos; Chad Elie; Bradley Franzen; Ryan Lang; and Ira Rubin. Seven of the arrested defendants previously pled guilty and four have been sentenced. Beckley was sentenced to 14 months in prison in July 2012, Rubin was sentenced to 36 months in prison in July 2012, Campos was sentenced to three months in prison in June 2012, and Elie was sentenced to five months in prison in October 2012. Burtnick, Franzen, and Lang await sentencing. The charges against Bitar remain pending as do the charges against Isai Scheinberg, Paul Tate, and Scott Tom, who remain at large. The charges and accusations against them are allegations and they are presumed innocent unless and until proven guilty.
U.S. Attorney Preet Bharara praised the Federal Bureau of Investigation for its outstanding leadership in the investigation, which he noted is ongoing.
The victim claims process will begin shortly. Information about the claims administration will be posted on the dedicated website GCG has established in connection with the victim compensation process, www.FullTiltPokerClaims.com. Information is also available from the toll-free hotline number at (866) 250-2640.
This matter is being handled by the Office’s Asset Forfeiture and Complex Frauds Unit. Assistant U.S. Attorneys Sharon Cohen Levin, Michael Lockard, Jason Cowley, and Andrew Goldstein are in charge of the civil money laundering and forfeiture action. Assistant U.S. Attorneys Arlo Devlin-Brown, Nicole Friedlander and Niketh Velamoor are in charge of the criminal case.
Lusby Man Sentenced after Pleading Guilty to Illegally Dumping Fill Material into the Chesapeake BayRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced David Ector, age 55, of Lusby, Maryland, today to two years probation after Ector pleaded guilty to discharging fill material into the Chesapeake Bay without a permit, in violation of the Clean Water Act. As a special condition of his sentence, Chief Judge Chasanow ordered that the defendant remove, at his own expense, all fill material discharged into the Chesapeake Bay.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge David G. McLeod, Jr., of the Environmental Protection Agency’s Criminal Investigation Division - Philadelphia Area Office.
“This country's environmental laws are aimed at keeping our inland waterways free from materials that do not belong there,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program in Maryland. “By ignoring restrictions on fill material in and around Chesapeake Bay, the defendant interfered with the critical habitat of an endangered species. Today's guilty plea and sentencing demonstrates that those who illegally alter or destroy these essential natural resources will be prosecuted.”
According to his plea agreement, Ector owned a cliff-front property in Calvert County. From May 28 through May 30, 2010, Ector caused large rocks (rip rap) to be dumped over the cliff-face. Ector did not obtain a permit to put the rocks into the Chesapeake Bay, as required by the Clean Water Act. The rip rap also scraped away soil on the cliff-face as it slid down the slope, interfering with the critical habitat of an endangered species.
United States Attorney Rod J. Rosenstein praised the EPA Criminal Investigation Division and the U.S. Fish and Wildlife Service, Office of Law Enforcement, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.
Kentucky Man Sentenced to Twenty Years Imprisonment for Norton Bank RobberyRead the Press Release
ABINGDON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that Ronald Green, 49, of Isom, KY., was sentenced in the United States District Court for the Western District of Virginia in Abingdon to serve twenty years in prison for his involvement in the robbery of a bank in Norton, Virginia.
“Mr. Green put the lives of both bank employees and customers at risk with his brazen act of violence,” United States Attorney Timothy J. Heaphy said today. “Violent criminals like Mr. Green must be held accountable for their actions, as occurred today in federal court.”
Green was ordered to serve 240 months imprisonment and serve five years supervised release for his convictions for one count of bank robbery with a dangerous weapon and one count of brandishing a firearm in furtherance of a crime of violence.
According to evidence presented at hearings by Assistant United States Attorney Zachary T. Lee, in early December 2011 Green staked out numerous banks in Kentucky and Southwest Virginia in preparation for finding a bank to rob. On December 9, 2011, Green entered the Norton branch of New Peoples Bank and brandished a large caliber handgun at the bank tellers demanding money. After receiving the money, Green exited the bank and escaped the scene on a bicycle. Green was arrested on December 23, 2011, and found to be in possession of a large amount of money stolen from the bank.The investigation of this case was conducted by the Wise County Sheriff’s Office, Town of Wise Police Department, City of Norton Police Department, Virginia State Police, Kentucky State Police, Letcher County, Kentucky Sheriff’s Office, the Federal Bureau of Investigation, and the United States Marshals Service. Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon prosecuted the case.
Kelso Resident Sentenced to Prison for Gun and Drug CrimesRead the Press Release
A Kelso, Washington resident who was arrested as he left a motel room containing four firearms, while carrying four bags of heroin for distribution, was sentenced to seven years in prison, announced U.S. Attorney Jenny A. Durkan. ALLEN MARSTON, 35, has prior convictions for drug distribution, domestic violence assault and illegal weapons possession so he is barred from possessing firearms. U.S. District Judge Robert J. Bryan imposed three years of supervised release following the prison term.
According to records filed in the case, the Cowlitz Wahkiakum Narcotics Task Force (CWNTF) served a court-authorized search warrant on MARSTON’s motel room in Kelso on May 16, 2012. MARSTON was stopped by police as he left the motel. In his pockets, law enforcement found four bags containing more than 41 grams of heroin. A search of the motel room turned up four firearms including an AMT .380 caliber semi-automatic pistol, a Russian SKS 7.62 caliber semi-automatic rifle, a Kel Tec .223 caliber semi-automatic pistol, and a Ruger .40 caliber semi-automatic pistol. One of the firearms had been reported stolen. Law enforcement also found scales, packaging material, a grinder, spoons, prescription pills, hypodermic needles, and other drug paraphernalia in the motel room.
In their request for an 87-month sentence, prosecutors wrote to the court that a significant sentence, with a drug treatment component, is important to protect the public. “Marston’s drug problem is not an excuse for his continued, serious, and dangerous criminal conduct in this case, nor for his own spreading of the poison that is heroin in order to financially support his own habit. Marston’s possession of firearms at the same time he was trafficking in heroin … demonstrates a serious and very real potential for more trouble in the future,” prosecutors wrote in their sentencing memo.
The case was investigated by the Cowlitz Wahkiakum Narcotics Task Force and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Justice Department Settles with Ohio Hospital over HIV DiscriminationRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Glenbeigh Hospital of Rock Creek, Ohio, under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Glenbeigh violated the ADA by denying admission to someone because of HIV. This is the fourth settlement that the Justice Department has reached in six weeks addressing HIV discrimination by a medical provider.
The Justice Department found that Glenbeigh unlawfully refused to admit someone with HIV into its alcohol treatment program because of the side effects of his HIV medication. Glenbeigh’s alcohol treatment program consists of helping patients through the physical aspects of recovery, as well as providing counseling and incorporating spiritual healing. The department determined that Glenbeigh cannot show that treating the complainant would have posed a direct threat to the health or safety of others.
“Ensuring access to medical care for people with HIV requires that those in the medical field make medical decisions that are not based on fears or stereotypes,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The ADA does not tolerate HIV discrimination and neither will the Justice Department.”
“Our office is committed to vigorously enforcing the ADA, including for those with HIV,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “This settlement should send a clear message that those with HIV are entitled to the same services, including medical treatment, as everyone else.”
Under the settlement, Glenbeigh must pay $32,500 to the complainant and $5,000 in civil penalties. In addition, Glenbeigh must train its staff on the ADA and develop and implement an anti-discrimination policy.
In the past five weeks, the department announced similar agreements with Woodlawn Family Dentistry, the Castlewood Treatment Center, and the Fayetteville Pain Center to address HIV discrimination. All four settlements are part of the Department of Justice’s Barrier-Free Health Care Initiative, 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 40 U.S. Attorney’s offices. The division expects the initiative to address access to health care for people with HIV and those with hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys offices reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm .
For more information on the ADA and HIV, visit www.ada.gov/aids . Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may be filed by email to [email protected] .
Justice Department Settles with Ohio Hospital over HIV DiscriminationRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Glenbeigh Hospital of Rock Creek, Ohio, under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Glenbeigh violated the ADA by denying admission to someone because of HIV. This is the fourth settlement that the Justice Department has reached in six weeks addressing HIV discrimination by a medical provider.
The Justice Department found that Glenbeigh unlawfully refused to admit someone with HIV into its alcohol treatment program because of the side effects of his HIV medication. Glenbeigh’s alcohol treatment program consists of helping patients through the physical aspects of recovery, as well as providing counseling and incorporating spiritual healing. The department determined that Glenbeigh cannot show that treating the complainant would have posed a direct threat to the health or safety of others.
“Ensuring access to medical care for people with HIV requires that those in the medical field make medical decisions that are not based on fears or stereotypes,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The ADA does not tolerate HIV discrimination and neither will the Justice Department.”
“Our office is committed to vigorously enforcing the ADA, including for those with HIV,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “This settlement should send a clear message that those with HIV are entitled to the same services, including medical treatment, as everyone else.”
Under the settlement, Glenbeigh must pay $32,500 to the complainant and $5,000 in civil penalties. In addition, Glenbeigh must train its staff on the ADA and develop and implement an anti-discrimination policy.
In the past five weeks, the department announced similar agreements with Woodlawn Family Dentistry, the Castlewood Treatment Center, and the Fayetteville Pain Center to address HIV discrimination. All four settlements are part of the Department of Justice’s Barrier-Free Health Care Initiative, 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 40 U.S. Attorney’s offices. The division expects the initiative to address access to health care for people with HIV and those with hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys offices reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm.
For more information on the ADA and HIV, visit www.ada.gov/aids. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Jury Convicts Defendant on Tax ChargesRead the Press Release
Sroufe Presented a Tax Return to the IRS Falsely Claiming a $1.7 Million Refund
ATLANTA - A federal jury in Atlanta convicted Donus R. Sroufe, 55, of Suwanee, Ga. of interfering with the administration of revenue laws and making a false claim for a $1.7 million tax refund.
“Millions of Americans file their tax returns honestly every year, while Mr. Sroufe tried to defraud the Government out of $1.7 million dollars,” said United States Attorney Sally Quillian Yates. “Fortunately, the IRS intercepted the return and, as a result, no taxpayer funds were paid out. Given the present climate with the federal budget, it is critically important to prevent fraudsters from stealing tax funds instead of paying them.”“The prosecution of individuals who intentionally try to impede the IRS by submitting frivolous and fraudulent documents is a vital element in maintaining public confidence in our tax system,” stated Veronica Hyman-Pillot, Special Agent in Charge of IRS Criminal Investigation. “Hopefully the verdict today will send a message to other individuals like Sroufe, that this conduct will not be tolerated.”
According to United States Attorney Yates, the charges and other information presented in court, in March 2009, Sroufe filed a United States Individual Income Tax Return (Form 1040) for 2008. He claimed a tax refund of $1.7 million. On that tax return, Sroufe falsely claimed that he received $2.5 million from a United States Treasury bond, and that he had paid over $2.6 million in federal taxes. In fact, the $2.5 million bond was a fake and he had not paid any income taxes for 2008.
In April 2009, the IRS notified Sroufe that his 2008 tax return was “frivolous” and warned him that he could face a penalty for filing a false return. Also, in June 2009, two IRS Special Agents met with Sroufe in person and notified him that the $2.5 million bond appeared to be a fictitious financial instrument.Sroufe ignored those warnings and in August, 2009, he mailed an identical copy of the 2008 tax return to the United States Department of the Treasury. The return included a copy of the fake $2.5 million bond, and demanded a $1.7 million tax refund.
Today, the jury found Sroufe guilty of interfering with the administration of the revenue laws and for making a false claim for a tax refund. The most serious of the charges (filing a false claim) carries a maximum sentence of 5 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for May 30, 2013, at 10:00 a.m. before United States District Judge Charles A. Pannell, Jr.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Shanya J. Dingle, Jeffrey W. Davis, and Steven D. Grimberg are prosecuting the case.
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.
Hudson County, N.J., Man Charged with Production of Child PornographyRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted a Hudson County, N.J., man for producing and possessing images and videos of child pornography, U.S. Attorney Paul Fishman announced.
Gregory John Schaffer, 35, of Bayonne, N.J., was charged by Indictment with two counts of production of child pornography and one count of possession of child pornography.
The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a $250,000 fine. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a $250,000 fine.
Schaffer was indicted on July 2, 2012, in the Eastern District of New York, with coercing and enticing a minor to travel for the purpose of engaging in illegal sexual activity, coercing and enticing a minor to engage in sexual activity. Those charges are pending.
U.S. Attorney Fishman credited special agents of the New York field office of U.S. Immigration and Customs Enforcement-Homeland Security Investigations, under the direction of Special Agent in Charge James T. Hayes, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Elizabeth M. Harris of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-115
Schaffer Indictment
Home Health Care Company Techota, LLC, to Pay United States $150,000 to Resolve False Claims AllegationsRead the Press Release
Montgomery, Alabama - Techota, LLC has agreed to pay the United States $150,000 to resolve claims in a federal qui tam lawsuit that it violated the False Claims Act by making false claims for payment to Medicare for home health care services, announced George L. Beck, U.S. Attorney for the Middle District of Alabama. Techota, LLC, based in Nashville, Tennessee, provides home health care services in Alabama under the names CV Home Health of Bibb County and CV Home Health Services. The settlement resolves claims in the federal lawsuit that Techota, LLC, billed Medicare for home health services that were not eligible for reimbursement because the services were not medically reasonable and necessary or were not provided under a valid plan of care. Under the terms of a global settlement, Techota, LLC, will also enter into a Corporate Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services (“HHS-OIG”).
“Our office is grateful to the law firm of Frohsin and Barger who represented Ms. McDonald and brought this injustice to our attention,” stated U.S. Attorney Beck. “Our country needs those with knowledge about the fraud and false claims to realize that if they bring these injustices to our attention, we will diligently work to cure the injustice.”
“False claims for medically unnecessary services drain both the Medicare program and the taxpayers’ pockets,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region. “The provider has agreed to Federal monitoring and reporting requirements to avoid problems in the future.”
This case was initially filed in the United States District Court for the Middle District of Alabama by Veronica McDonald, a former Techota employee, under the qui tam, or whistleblower provisions, of the False Claims Act. Pursuant to these provisions, a private citizen can bring suit on behalf of the United States and share in any recovery. Ms. McDonald will receive $22,500 as her share of the government’s recovery in this matter.
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 on 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 nearly $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
This case was handled by Assistant United States Attorney James J. DuBois from the United States Attorney’s Office for the Middle District of Alabama and Natalie J. Priddy from the Civil Division of the United States Department of Justice, in conjunction with the United States Department of Health and Human Services, Office of Inspector General. The claims settled by this agreement are allegations only; there has been no determination of liability.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Hells Angels Member Sentenced for Illegal Firearm PossessionRead the Press Release
BOSTON – A Lynn man was sentenced to 21 years in prison yesterday for possessing a firearm and ammunition.
Eric Franco, 38, was sentenced by U.S. District Judge Denise Casper to 262 months in prison, followed by two years of supervised release. In September 2012, Franco was convicted after a jury trial of possessing a firearm and ammunition after receiving a felony conviction.On May 3, 2011, Franco, the sergeant-at-arms of the Lynn chapter of the Hells Angels, was found by Lynn Police to be in possession of a firearm and ammunition. The weapon was discovered when Lynn Police were called to the apartment Franco shared with his girlfriend and her child after receiving a report that Franco assaulted his girlfriend. Franco’s criminal record in Massachusetts includes three convictions for assault and battery by a dangerous weapon, as well as convictions for indecent assault and battery, failure to register as a sex offender, breaking and entering at night with intent to commit a felony, and conspiracy to violate the controlled substances act. Franco also was convicted in Arkansas for battery in the second degree in a case in which Franco and five other members of the Hells Angels assaulted and stabbed four members of another motorcycle gang.
United States Attorney Carmen M. Ortiz, Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Boston Field Division, and Lynn Police Chief Kevin F. Coppinger made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Suzanne M. Sullivan and David G. Tobin of Ortiz’s Major Crimes Unit.
Former Pineville Official Pleads Guilty in Connection with Embezzlement SchemeRead the Press Release
Phillips-Ellis admits to stealing more than $80,000 from the Town of Pineville
BECKLEY, W.Va. – A former Pineville, West Virginia official pleaded guilty in connection with an embezzlement scheme that took more than $80,000 from the Town of Pineville, announced U.S. Attorney Booth Goodwin. Brandee Denise Phillips-Ellis, 30, of Pineville, Wyoming County, W.Va., pleaded guilty to theft concerning programs receiving federal funds. Phillips-Ellis admitted that between March 2009 and December 27, 2011, she stole a total of more than $80,000 from the Town of Pineville. Phillips-Ellis was employed as the city manager and recorder for the Town of Pineville at the time of the scheme.
U.S. Attorney Booth Goodwin said, “When people abuse a position of trust and steal from public coffers, they’re not just breaking the law---they’re ultimately hurting citizens who count on public services.” Goodwin continued, “People who attempt to steal from the public till will be caught and they will be punished.”
During January 1, 2010 and December 31, 2010, the Town of Pineville received benefits in excess of $10,000 under the Safe Routes to Schools Program, a federal aid program administered by the United States Department of Transportation’s Federal Highway Administration.
Phillips-Ellis admitted that she used twelve Town of Pineville checks totaling $14,649.83 to pay her husband’s personal credit card bills. The defendant further admitted that she wrote and cashed fraudulent reimbursement checks on Town of Pineville accounts, keeping $3,295.56 for herself. Additionally, Phillips-Ellis wrote eleven Town of Pineville payroll checks to herself totaling $20,427.50. Phillips-Ellis further admitted that she cashed a Town of Pineville check for $4,569.58 and used the proceeds in connection with the personal purchase of a car.
Phillips-Ellis also admitted that during her employment at SAFE Housing and Economic Development, Inc. (SHED) in McDowell County, West Virginia, she falsified documents in order to receive $36,380 in payments as a vendor that she was not entitled to receive. Phillips-Ellis was a full-time employee at SHED from about April 2006 through May 2009. Phillips-Ellis also worked part-time for the organization from May 2009 until December 2011. SHED is a non-profit organization that provides housing opportunities to low income first-time homebuyers.
In total, Phillips-Ellis admitted that she embezzled $80,489.96 from the Town of Pineville and SHED.
Phillips-Ellis faces up to 10 years in prison and a $250,000 fine when she is sentenced on June 25, 2013by United States District Judge Irene C. Berger.The investigation was conducted by the West Virginia Commission on Special Investigations. Assistant United States Attorney Eumi Choi is in charge of the prosecution.
This case is being prosecuted as part of the U.S. Attorney's Initiative to Combat Theft of Government Benefits launched in June 2008. The Initiative is designed to protect public funds and to prosecute those who steal benefits from public programs or agencies.
Former Orleans Parish Deputy, John P. Sens, Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
JOHN P. SENS, 52, a resident of New Orleans, Louisiana, pled guilty today before U.S. District Judge Kurt D. Engelhardt to conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente.
According to the factual basis, SENS, the former Director of Purchasing at the Orleans Parish Sheriff’s Office (OPSO), began receiving things of value from two contractors, identified as Businessman A and Businessman B, in exchange for a rigged bidding system employed to steer OPSO work to the two contractors. In particular, from 2007 through 2011, Businessman A and Businessman B would submit bids for OPSO work in the names of their respective companies but, with the knowledge and assistance of, among others, SENS, would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from Businessman A or Businessman B and, consequently, SENS would award the work to Businessman A or Businessman B.
According to court documents, in exchange for this rigged bidding process, SENS received various things of value from Businessman A and Businessman B. From 2007 through 2011, SENS received approximately $30,000 in cash from Businessman A, as well as the construction of a pool at a residence owned by SENS, at no cost to him. Similarly, during this same period of time, Businessman B paid for the purchase, framing, and matting of several “Blue Dog” paintings for SENS.
SENS faces a maximum penalty of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment. Sentencing has been scheduled for June 12, 2013.
U.S. Attorney Boente, as well as the investigative and prosecution team, offer their thanks to the Metropolitan Crime Commission for providing valuable assistance in this case.
The case was investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorneys Matt Chester and Jon Maestri.
(Download Factual Basis )
Former Hamilton Township, N.J., Mayor Sentenced to 38 Months in Prison for Extortion, Bribery, Money LaunderingRead the Press Release
TRENTON, N.J. – The former mayor of Hamilton Township, N.J., was sentenced today to 38 months in prison in connection with $12,400 in bribes he solicited and accepted in exchange for his official influence in helping a health insurance broker maintain her contract with the township’s school district, U.S. Attorney Paul J. Fishman said.
John Bencivengo, 58, was previously found guilty following a five-day trial before U.S. District Judge Anne E. Thompson in Trenton federal court. Bencivengo was convicted of obstruction of commerce by extortion under color of official right, attempted obstruction of commerce by extortion under color of official right, two counts of violating the federal Travel Act, for causing the interstate travel and using facilities in interstate commerce in connection with the bribes that he accepted, and one count of money laundering. Judge Thompson imposed the sentence today in Trenton federal court.
“Mayor Bencivengo betrayed the people of Hamilton Township and all of the honest public servants in New Jersey who take their oaths and their responsibilities seriously,” U.S. Attorney Fishman said. “His conviction, and today’s sentence, serve as reminders that the public trust is not for sale.”
“John Bencivengo made the calculated decision to violate his sworn responsibilities in order to fulfill his personal needs,” said FBI Acting Special Agent in Charge David Velazquez. “His conviction and today's sentence underscore the impact of this crime on our community and state. The FBI views public corruption of any kind as a severe crime problem and will continue to dedicate our resources to investigate these crimes.”
According to documents filed in this case and evidence at trial:While serving as mayor between May 2011 and July 2011, Bencivengo accepted payments totaling $12,400 from a cooperating witness, Marliese Ljuba, the health insurance broker for the Hamilton Township School District. In exchange for the payments, Bencivengo agreed to use his official assistance, action, and influence to assist Ljuba retain the position as health insurance broker for the Hamilton Township School District. Bencivengo agreed to assist by (1) speaking to a member of the School District’s Board of Education (identified in the indictment as “School Board Member No. 1”) about retaining Ljuba as the school district’s health insurance broker instead of putting that position out for public bid; and (2) agreeing to let Ljuba choose the individual to replace another member of the school board if that member left the board to run for the New Jersey Assembly.
Bencivengo received the $12,400 in multiple payments. The first payment was a $5,000 check that Ljuba passed to Bencivengo through Warney. Bencivengo had informed Ljuba that he was having financial difficulties and that he needed her assistance. Bencivengo agreed to accept payment from Ljuba in exchange for Bencivengo’s assistance with School Board Member No. 1, who had advocated putting the School District’s health insurance broker position out for public bid instead of retaining Ljuba. On May 12, 2011, Ljuba traveled from another state to Hamilton Township to make that payment to Bencivengo. Bencivengo directed her to make the check payable to Warney’s wife to conceal the payment, and to put a notation on the check that it was to pay for a “Cherry Bedroom Set.” After receiving the check, Warney deposited the check and distributed the proceeds to Bencivengo in cash increments over several weeks. Warney previously pleaded guilty to money laundering and is awaiting sentencing. Bencivengo received the remaining $7,400 in two cash payments from Ljuba in July 2011, after she began cooperating with law enforcement: $2,400 from Ljuba at his home in Hamilton on July 20, 2011, and $5,000, from Ljuba in an Atlantic City hotel room on July 29, 2011.
In addition to the prison term, Judge Thompson sentenced Bencivengo to three years of supervised release, fined him $3,000 and ordered him to pay restitution of $12,400.U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Acting Special Agent in Charge David Velazquez, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Harvey Bartle and Dustin Chao of the U.S. Attorney’s Office Special Prosecutions Division.
13-116
Defense counsel: Jerome A. Ballarotto Esq., Trenton
Former Employee of Eastern Kentucky Agriculture Program Pleads Guilty to Mail FraudRead the Press Release
LEXINGTON, KY - A former employee of an agriculture program in eastern Kentucky admitted in federal court she defrauded the program out of more than $200,000.
Debra Marshall, 49, of Clayhole, KY., pleaded guilty Monday to mail fraud.
Marshall worked as the District Administrative Secretary for the Breathitt County Conservation District (BCCD), a program that administers federal, state, and local grants and provides other assistance to county farmers. In this position she had day-to-day control over the operations and the finances of the organization.
According to her plea agreement, from 2005 until March 2010, Marshall took money from the District in a variety of ways, including issuing herself extra paychecks, embezzling grant money that was intended to go to local farmers, and using the District’s credit card for personal purchases. When the District’s operating account dwindled because of her scheme, Marshall cashed the BCCD’s certificates of deposit without authorization and placed that money into the District’s operating account.
Marshall admitted she covered up the scheme by falsifying accounting records and submitting financial reports that falsely inflated the District’s financial condition.
BCCD uses local, state, and federal funding to promote soil conservation, efficient utilization of natural resources and progressive farming practices.
Marshall was indicted in July 2012.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Perrye K. Turner, Special Agent in Charge, Federal Bureau of Investigation, and Rodney Brewer, Commissioner of the Kentucky State Police jointly made the announcement today.
The investigation was conducted by the Federal Bureau of Investigation and the Kentucky State Police. The U.S. Attorney’s Office is represented by Assistant U.S. Attorneys Kenneth R. Taylor and Andrew T. Boone.
Marshall will appear for sentencing on June 10, 2013. Mail fraud carries a maximum of 20 years in prison. However, the Court will impose sentence after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Clarinda, Iowa Resident Sentenced to 48 Months for Possession of Child PornographyRead the Press Release
Council Bluffs, IA- On March 12, 2013, John R. Clark, age 49, formally a resident of Clarinda, Iowa, was sentenced to 48 months imprisonment for Possession of Child Pornography, to be served consecutively with a sentence Clark is currently serving in Florida for Lewd and Lascivious Act on a Child. The 48 month sentence was imposed by United States District Judge John Jarvey. Judge Jarvey also ordered Clark to serve a ten year term of supervised release following incarceration.
On November 1, 2012, the defendant pled guilty to a charge of Possession of Child Pornography. The investigation showed that Clark was receiving images of child pornography over the internet. At the time of his guilty plea, Clark admitted that on May 7, 2009, he had images on his home computer that depicted minors engaged in sexually explicit conduct.
The investigation was conducted by the Iowa Division of Criminal Investigation and the Department of Homeland Security and was prosecuted by the United States Attorney’s Office Southern District of Iowa.
(Download Press Release )
Florida Man Pleas Guilty to conspiring to kill federal judgeRead the Press Release
BROOKLYN, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dejvid Mirkovic, 38, of Lake Worth, Florida, pleaded guilty before U.S. District Judge John Keenan, to a felony charge of conspiring to murder the U.S. District Judge (the “federal judge”) who presided over the boiler room fraud conviction of Mirkovic’s coconspirator, a close business associate. Mirkovic and his coconspirator agreed to pay $40,000 to an undercover police officer, who they thought was a hit-man, to kill the federal judge as well as the Assistant U.S. Attorney (the “federal prosecutor”) who successfully handled the coconspirator’s fraud prosecution. Mirkovic paid the undercover officer $22,000 in cash as a down payment for the murders of the federal judge and the federal prosecutor. Conspiring to murder a federal employee on account of the performance of official duties carries a maximum penalty of life in prison, a fine of $250,000, or both. Additionally, Mirkovic agreed to the forfeiture of over $200,000, a car and four firearms.
According to case filings, law enforcement authorities learned of the plot in August 2012, when a confidential informant reported that the coconspirator stated he wanted to torture and kill the judge and the federal prosecutor and asked the informant for assistance in arranging for a hit-man to carry out the murders. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Mirkovic and the coconspirator numerous times at locations on Long Island, including at the Nassau County Correctional Center (“NCCC”), where the coconspirator was being held. At one of the first meetings, the coconspirator offered to pay one of the undercover officers $3,000 to assault an individual with whom the coconspirator had a financial dispute. Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of John Doe – in fact, a staged photograph and an identification card for John Doe – Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic met with the undercover officer, relayed the coconspirator’s instructions to murder the federal judge and federal prosecutor, and offered $40,000 for commission of the two murders. Mirkovic also gave the undercover officer a $12,000 down payment and paid an additional $10,000 the following week. Mirkovic promised payment of the final $18,000 upon confirmation of the murders. At the time of Mirkovic’s arrest at his home in Lake Worth, Florida, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun.
At today’s guilty plea proceeding, Mirkovic admitted under oath that he agreed to kill the federal judge and the federal prosecutor in retaliation for the performance of their duties. Mirkovic further admitted under oath that he traveled to the Eastern District of New York in September and October of 2012 and made payments for the murders.
The plea was the latest step in an investigation on the part of Special Agents of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.Sentencing is scheduled for June 19, 2013, at 3 p.m. EST, in U.S. District Court, Brooklyn, in front of Judge Keenan.
Florida Man Pleads Guilty to Conspiring to Kill Federal JudgeRead the Press Release
BROOKLYN, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dejvid Mirkovic, 38, of Lake Worth, Florida, pleaded guilty before U.S. District Judge John Keenan, to a felony charge of conspiring to murder the U.S. District Judge (the “federal judge”) who presided over the boiler room fraud conviction of Mirkovic’s coconspirator, a close business associate. Mirkovic and his coconspirator agreed to pay $40,000 to an undercover police officer, who they thought was a hit-man, to kill the federal judge as well as the Assistant U.S. Attorney (the “federal prosecutor”) who successfully handled the coconspirator’s fraud prosecution. Mirkovic paid the undercover officer $22,000 in cash as a down payment for the murders of the federal judge and the federal prosecutor. Conspiring to murder a federal employee on account of the performance of official duties carries a maximum penalty of life in prison, a fine of $250,000, or both. Additionally, Mirkovic agreed to the forfeiture of over $200,000, a car and four firearms.
According to case filings, law enforcement authorities learned of the plot in August 2012, when a confidential informant reported that the coconspirator stated he wanted to torture and kill the judge and the federal prosecutor and asked the informant for assistance in arranging for a hit-man to carry out the murders. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Mirkovic and the coconspirator numerous times at locations on Long Island, including at the Nassau County Correctional Center (“NCCC”), where the coconspirator was being held. At one of the first meetings, the coconspirator offered to pay one of the undercover officers $3,000 to assault an individual with whom the coconspirator had a financial dispute. Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of John Doe – in fact, a staged photograph and an identification card for John Doe – Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic met with the undercover officer, relayed the coconspirator’s instructions to murder the federal judge and federal prosecutor, and offered $40,000 for commission of the two murders. Mirkovic also gave the undercover officer a $12,000 down payment and paid an additional $10,000 the following week. Mirkovic promised payment of the final $18,000 upon confirmation of the murders. At the time of Mirkovic’s arrest at his home in Lake Worth, Florida, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun.
At today’s guilty plea proceeding, Mirkovic admitted under oath that he agreed to kill the federal judge and the federal prosecutor in retaliation for the performance of their duties. Mirkovic further admitted under oath that he traveled to the Eastern District of New York in September and October of 2012 and made payments for the murders.
The plea was the latest step in an investigation on the part of Special Agents of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.
Sentencing is scheduled for June 19, 2013, at 3 p.m. EST, in U.S. District Court, Brooklyn, in front of Judge Keenan.
Federal Jury Convicts Nebraska Man on Federal Drug Trafficking ChargesRead the Press Release
Defendant Guilty of Transporting PCP and Codeine on AmTrak TrainALBUQUERQUE – Shortly before noon today, a federal jury returned a guilty verdict against Rayvell Vann, 45, of Omaha, Neb., on drug trafficking charges after a two-day trial, announced U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division.
Vann was arrested in Albuquerque, N.M., on April 9, 2012, on drug trafficking charges in a criminal complaint. Vann subsequently was indicted and charged with (1) possession of more than 100 grams of phencyclidine (PCP) with intent to distribute, and (2) possession of codeine with intent to distribute.
According to the evidence at trial, on April 9, 2012, a DEA special agent, who was conducting an interdiction investigation at the AmTrak train station in Albuquerque, approached Vann, who was a passenger on a train and was traveling from Los Angeles, Calif., to Omaha. After identifying himself as a law enforcement officer, the agent requested and received Vann’s consent to talk to him. During the recorded conversation, Vann told the agent that he had traveled by plane to Los Angeles from Kansas City two weeks earlier and was returning from his travels.
Vann, who was traveling with one bag and a briefcase, agreed to let the agent search his bag which contained only a pink gift-wrapped box and a child’s dress despite Vann’s claim to have been in Los Angeles for two weeks. When the agent asked for permission to open the box, Vann said the box contained a birthday gift for his aunt but could not provide his aunt’s birth date. Shortly thereafter, while the conversation continued to be recorded, Vann admitted that the box contained illegal drugs, codeine cough syrup and “Ops” – short for Oxycotin, a prescription painkiller. The agent then arrested Vann and obtained a search warrant for the box.
When DEA agents opened the box, they quickly realized that it did not contain only codeine and painkillers because of the foam packaging inside the box and the pungent odor of ether that was released when they cut the foam. Recognizing the odor as PCP and finding 16 ounces of PCP in the box, the agents arranged for a bio-hazard expert to take possession of the bulk of the PCP after first taking a sample for testing.
After confirming that the PCP was appropriately handled, the agents interviewed Vann, who expressed surprise that the box contained PCP. Vann admitted purchasing PCP, codeine and Oxycotin while he was in Los Angeles, but claimed to have sent the PCP to Omaha by an expedited courier service. Vann told the agents he intended to sell the PCP, the codeine and Oxycotin in Omaha.
The jury deliberated about ninety minutes before returning a guilty verdict.
Vann has been in federal custody since his arrest on federal charges and remains detained pending his sentencing hearing, which has not yet been scheduled. Vann faces a mandatory minimum ten years in prison and a maximum of life in prison because he previously was convicted of a narcotics trafficking offense. Court records reflect that Vann was convicted of possession of a controlled substance in the State of Nebraska in 1989.
The case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into, or through, New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles." Assistant U.S. Attorneys David M. Walsh and Norman Cairns are prosecuting the case for the government.