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23 April 2013
Rosebud Man Charged with Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man has been indicted by a federal grand jury.
Ricky Eagle Elk, age 43, was indicted by a federal grand jury on April 12, 2013 for Sexual Abuse.
Eagle Elk appeared before U.S. Magistrate Judge Mark A. Moreno on April 19, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is life in prison, a $250,000 fine, or both; a mandatory minimum term of 5 years up to life of supervised release and an additional minimum term of 5 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge is merely an accusation, and Eagle Elk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Eagle Elk was remanded to the custody of the U.S. Marshal Service. A trial date has not been set.
Rochester Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Frederick Young, 46, of Rochester, N.Y., who was convicted of failing to register as a sex offender, was sentenced to 24 months in prison and five years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that Young left the Rochester area sometime after August 2010 to live in the State of Florida. Between November 2010 and November 2011, the defendant knowingly failed to register as a sex offender in Florida. Young also failed to update his registration status in the State of New York.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentence was the culmination of an investigation on the part of the United States Marshals Service under the direction of United States Marshal Charles Salina.Rapid City Man Pleads Guilty to Failure to RegisterRead the Press Release
United States Attorney Brendan V. Johnson announced that Wilbur Flute, age 39, of Rapid City, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on April 12, 2013 and pled guilty to Failure to Register. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
Flute failed to update his sexual offender registration as required from November 28, 2012, to February 27, 2013.
The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Port St. Lucie Woman Sentenced for Preparing False Income Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced the sentencing of defendant Latonia Lermot, of Port St. Lucie, Florida. Defendant Lermot was sentenced to 24 months in prison, to be followed by one year of supervised release. Defendant Lermot was also ordered to pay $42,629 to the United States as restitution. Lermot previously pled guilty to one count of aiding in the filing of false tax returns in violation of Title 26, United States Code, Section 7206(2).
According to court documents, Lermot was a tax preparer for J&BL Tax Services located in Fort Pierce, Florida. During 2010 and 2011, for the 2009 and 2010 tax years, respectively, Lermot prepared at least 30 fraudulent Forms 1040, United States Individual Income Tax Returns, with false items, in order for her clients to receive substantial tax refunds. Specifically, Lermot filed false tax returns for others that included false information regarding dependents, education credits, and child care. At sentencing, United States District Court Judge Jose E. Martinez also considered the relevant conduct of another tax preparer that had previously pled guilty to preparing false returns for J&BL Tax Services. In total, Judge Martinez found that Lermot was criminally responsible for $215,222 in tax losses.
Mr. Ferrer commended the investigative efforts of IRS-CID. This case is being prosecuted by Assistant U.S. Attorney Adam C. McMichael.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pine Ridge Man Indicted for ArsonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man was indicted by a federal grand jury for burning down a woman’s house after the two had an argument.
Emmanuel Lee Warrior, a/k/a Mani Warrior, was indicted on March 19, 2013 for Arson. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 11, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine.
The charge is merely an accusation and Warrior is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Warrior was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Philadelphia Man Gets over 14 Years for CarjackingRead the Press Release
PHILADELPHIA - Leslie Mosby, 21, of Philadelphia, was sentenced today to 170 months in prison for an armed carjacking on November 21, 2010 in West Philadelphia in which he stole a Cadillac Deville and led Philadelphia police on a chase that ended at 40th and Locust Streets, where Mosby crashed the stolen car. Mosby and his accomplice then fled from the vehicle. While fleeing from police, Mosby’s accomplice fired a handgun at police officers, who returned fire and shot the accomplice to death. Mosby was arrested nearby after pursuing officers saw him toss a loaded .38-caliber revolver on the ground. Mosby pleaded guilty to the two charges - carjacking and using a firearm during a crime of violence - on January 4, 2013.
In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered five years of supervised release, a $2,500 fine, and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Philadelphia Police Department, and the University of Pennsylvania Police Department. It was prosecuted by Assistant United States Attorney Thomas M. Zaleski.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Oglala Man Indicted for Destruction of Government PropertyRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota man has been indicted by a federal grand jury for allegedly damaging a vehicle belonging to the U.S. General Services Administration in March 2011.
Eldon Ray Tobacco, age 25, was indicted by a federal grand jury on August 29, 2012 for Destruction of Government Property. Tobacco appeared before U.S. Magistrate Judge Veronica L. Duffy on April 11, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is one year of imprisonment and a $100,000 fine.
The charge is merely an accusation and Tobacco is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case.
Tobacco was released on bond pending trial. A trial date has been set for June 18, 2013.
New York Man Charged with Internet Extortion and Cyber StalkingRead the Press Release
A 21-year-old Great Neck, New York, man was charged in a criminal complaint in the Eastern District of Michigan with internet extortion and cyber stalking, announced United States Attorney Barbara L. McQuade.
Joining in the announcement were Special Agent in Charge Robert D. Foley III, Federal Bureau of Investigation and Chief John Seto, Ann Arbor Police Department.
According to the affidavit, from May 2012 through February 2013, Adam Paul Savader sent anonymous text messages using Google Voice numbers to 15 women stating that he had nude photographs of the women and threatening to distribute the nude photographs to the women’s friends and family members unless the women sent him more nude photographs of themselves. Savader sent some of the victims links to a photo-sharing website where nude pictures of the victims had been posted.The case was brought to the attention of the Federal Bureau of Investigation by Detectives from the Ann Arbor Police Department, who received a complaint from a victim stating that she had received threatening messages from a person who had illegally obtained nude photographs of her from her email account. Detectives with the Ann Arbor P.D. partnered with FBI agents to investigate the case and together identified 15 victims in Detroit, Washington, D.C. and Long Island, New York.
If convicted on these charges, Savader faces a maximum penalty of five years’ imprisonment.
Savader is currently in federal custody in New York awaiting removal to Michigan.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
New Jersey Man Charged with Misuse of Social Security NumberRead the Press Release
Daniel Prodelick a/k/a “Wederson Roberto,” 38, of Elizabeth, NJ, was charged today by Indictment1 with one count of misuse of a social security number and making false statements to agents with the Department of Homeland Security, U.S. Citizenship and Immigration Services, announced United States Attorney Zane David Memeger. In particular, the indictment charges the defendant with using a social security number that did not belong to him, and falsely claiming United States citizenship on an I-9 Form in order to obtain employment.
If convicted, Prodelick faces a maximum sentence of 10 years imprisonment, a three-year term of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Department of Labor Office of Inspector General, the Social Security Administration Office of Inspector General, Department of Homeland Security Investigations, Federal Bureau of Investigations, the Department of Transportation Office of Inspector General, the Environmental Protection Agency Criminal Investigations Division, the Internal Revenue Service Criminal Investigations, Department of Labor Employee Benefits Security Administration, and the Department of Labor, Wage and Hour Division. It is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
1An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Haven Man Sentenced to 30 Months in Federal Prison for Distributing HeroinRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that JAVON FLOYD, also known as “Twin,” 23, of New Haven, was sentenced yesterday 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.
FLOYD 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 FLOYD conspired with others to purchase and redistribute heroin.
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 provided valuable 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]New Fairfield Man Sentenced to Five Years in Federal Prison for Manufacturing and Distributing MarijuanaRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that SEAN SALASEVICIUS, 32, of New Fairfield, was sentenced yesterday by United States District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by four years of supervised release, for manufacturing and distributing marijuana.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration and Connecticut State Police Statewide Narcotics Task Force investigation into a large-scale marijuana growing and trafficking organization that operated in the greater Danbury area and had ties to New York, Massachusetts, and Vermont. Between June 2011 and June 2012, the drug trafficking organization conspired to manufacture, sell, and distribute more than 1,000 kilograms of marijuana.
The investigation revealed that SALASEVICIUS maintained a marijuana growing operation at his residence on Linda Lane in New Fairfield.
SALASEVICIUS and six other individuals were charged a result of the investigation. During the course of the investigation, investigators seized marijuana, more than $350,000 in cash, 10 firearms, vehicles and real property.
On January 14, 2013, SALASEVICIUS pleaded guilty to one count of conspiracy to manufacture, distribute, and possess with intent to distribute between 100 and 400 kilograms of marijuana.
This matter is being investigated by the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force Northwest Office. The case is being prosecuted by Assistant United States Attorneys Tracy L. Dayton and David X. Sullivan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Castle Man Pleads Guilty in Oxycodone Trafficking ConspiracyRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, Pa., pleaded guilty in federal court to violating the federal drug laws, United States Attorney David J. Hickton announced today.
David Wooley, 35, pleaded guilty to one count of conspiracy before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that between September 2008 and June 2011, a drug ring operated in the New Castle area, selling highly-addictive narcotic pills containing oxycodone on the street to drug users. Larry Dorsey, a former New Castle resident who was living in Florida during the conspiracy, was the supplier for Wooley and others charged in this indictment. Wooley was a distributor of oxycodone as well as a drug and money courier between Pennsylvania and Florida. In September 2010, Wooley was stopped by police in North Carolina, on his way to Florida. A search of his car turned up $158,409 in cash, hidden inside a door. The evidence showed that the oxycodone, purchased for $14 a pill in Florida, was being resold in New Castle for up to $25 a pill.
Judge Schwab scheduled sentencing for Aug. 20, 2013 at 9:30 am. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the New Castle Police, and the Pennsylvania State Police conducted the investigation that led to the prosecution of David Wooley.
Navajo Man Sentenced to 17 Years in Prison for KidnappingRead the Press Release
PHOENIX --- On April 22, 2013, Brian Douglas Kanuho, 47, of Low Mountain, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 204 months imprisonment, followed by five years of supervised release. Kanuho pleaded guilty on Feb. 27, 2013, to kidnapping.
According to the plea agreement, Kanuho kidnapped the victim at his residence. While the victim was kidnapped, Kanuho assaulted and sexually abused her. As a result of the kidnapping and assault, the victim sustained serious bodily injury.
The investigation in this case was conducted by the Chinle Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-11-8178-PCT-GMS
RELEASE NUMBER: 2013-033_KanuhoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Mike Alfons Campa Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 22, 2013, before U.S. District Judge Sam E. Haddon, MIKE ALFONS CAMPA, a 54-year-old resident of Yorba Linda, California, pled guilty to conspiracy to commit fraud, wire fraud, and mail fraud. Sentencing has been set for August 5, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorneys Carl E. Rostad and Ryan G. Weldon, the government stated it would have proved at trial the following:
CAMPA started a company with his wife. The name of the company was Domestic Energy Solutions. CAMPA and his wife obtained leases from D.C. for oil and gas rights on the Fort Peck Indian Reservation. CAMPA and his wife never paid for the lease rights and never visited Montana or the Fort Peck Indian Reservation.
The oil and gas rights were terminated on October 5, 2007. Despite being terminated, CAMPA continued to solicit investors for money by claiming to have oil and gas rights on the Fort Peck Indian Reservation. This continued for approximately five years. It was never explained to any potential "investor" that the leases were terminated and CAMPA had no right to drill for oil or gas on the Fort Peck Indian Reservation. Nor was there ever an attempt to spend any money toward a legitimate oil and gas venture on the Fort Peck Indian Reservation.
CAMPA also used emails to solicit money from individuals. Had these individuals known that no money was spent on the Fort Peck Indian Reservation for the oil and gas venture and the oil and gas leases were terminated in 2007, they would not have "invested" with CAMPA. The individuals who invested either mailed or wired money to CAMPA. Many of these wires crossed state lines and went into the State of California. In total, CAMPA and his cohorts bilked "investors" into paying well in excess of half a million dollars in a non-existent venture.
CAMPA worked with another individual, S.C., and others to start U.S. Oil and Gas to solicit more money out of unsuspecting victims. Victims were told that they needed to pay additional money or their entire investment that began with Domestic Energy Solutions, or other companies, would be lost. Not only did CAMPA work with S.C., but he also shared money with him.
When arrested and in jail, CAMPA admitted that he knew the leases on the Fort Peck Indian Reservation were cancelled.
CAMPA faces possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release for the conspiracy to commit fraud charge, and 20 years in prison, a $250,000 fine and 3 years supervised release for each of the wire fraud and mail fraud charges.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the U.S. Department of Interior - Office of Inspector General.
Micah Garret Waltenbaugh 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 April 23, 2012, before Senior U.S. District Judge Jack D. Shanstrom, MICAH GARRET WALTENBAUGH, a 25-year-old resident of Billings, appeared for sentencing. WALTENBAUGH was sentenced to a term of:
Prison: 12 months and 1 day
Special Assessment: $100
Supervised Release: 5 years
WALTENBAUGH was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute and distribution of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In July of 2011, Eastern Montana HIDTA agents developed a Confidential Informant (CI) who began purchasing methamphetamine from a former Sureno gang member in Billings. During the course of the investigation, law enforcement repeatedly heard the name Micah Waltenbaugh. Investigators learned WALTENBAUGH was a methamphetamine distributor to several individuals in the Billings area. Agents also learned that WALTENBAUGH's source of supply for his methamphetamine was moving large quantities of methamphetamine into the greater Yellowstone County area.
Later in the investigation law enforcement obtained recorded telephone calls and corroborating statements between the source of supply and one of his distributors that discussed WALTENBAUGH's distribution of methamphetamine. The same calls and evidence discussed WALTENBAUGH's drug debt owed to the source of supply for the methamphetamine they provided to him for distribution.
During the course of his involvement in the larger conspiracy, from August 2010 to September 2011, WALTENBAUGH personally distributed at least 2 pounds of methamphetamine in the Billings area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WALTENBAUGH will likely serve all of the time imposed by the court. In the federal system, WALTENBAUGH does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Mexican Citizen Sentenced for Reentry of Deported AlienRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 23, 2013, Rafael Pena-Campos, 47, Tultepec, Mexico, pleaded guilty and was sentenced by U.S. District Judge Patrick A. Conmy on a charge of reentry of deported alien.
Judge Conmy sentenced Pena-Campos to 18 months in federal prison.
On March 17, 2013, Pena-Campos was encountered by the New Town Police Department in New Town, N.D. Pena-Campos possessed only a Mexican voter identification card and U.S. Border Patrol officials were contacted. They discovered that Pena-Campos was a citizen of Mexico and in the United States illegally. Pena-Campos had previously been deported from the United States in 1996 and 2008. He had been convicted of burglary, a felony, in Texas state court in 1996.
The case was investigated by the New Town Police Department and U.S. Border Patrol.
Assistant U.S. Attorney David Hagler prosecuted the case.
Maylene Man Sentenced to 14 Years in Prison for Two Suburban Bank RobberiesRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Maylene man to 14 years in prison for two 2012 bank robberies in suburban Birmingham cities, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein.
U.S. District Judge R. David Proctor sentenced TONY JOE WHITE, 42, for the Aug. 22 robbery of a Wells Fargo bank in Homewood and the Aug. 23 robbery of a Regions Bank in Mountain Brook. White pleaded guilty to both bank robberies in January.
According to court records, White walked into the Wells Fargo Bank, approached a teller and demanded money, then reached over the counter and grabbed about $600 before fleeing the bank and leaving in a waiting car driven by another man. The next morning, White entered the Regions Bank, presented a note demanding money and took about $1,500. He left the Mountain Brook bank on a bicycle and was arrested a few minutes later.
The FBI, in conjunction with the Homewood and Mountain Brook Police Departments, investigated the case, which Assistant U.S. Attorney Joseph P. Montminy prosecuted.
Maryland Man Pleads Guilty to Charges in August 2011 Slaying in Northeast Washington-Defendant Chased Victim and Shot Him Numerous Times-Read the Press Release
WASHINGTON – Ricardo Mitchell, 33, of Temple Hills, Md., pled guilty today to a charge of second-degree murder while armed in a slaying that took place in August 2011 in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Mitchell entered the plea in the Superior Court of the District of Columbia. He also pled guilty to a charge of possession of a firearm during a crime of violence. The Honorable Lynn Leibovitz scheduled sentencing for June 28, 2013. Mitchell faces a statutory maximum of 40 years in prison on the murder charge and up to five additional years for the weapons offense.
According to the government’s evidence, in the early evening of Aug. 21, 2011, Mitchell was outside a residence in the 3900 block of Clay Place NE when he exchanged words with the victim, Wyatt Earp Robinson. Mr. Robinson, 33, walked away. Mr. Robinson headed toward his vehicle, where his girlfriend and four-year-old child were waiting.
Mitchell then ran into the residence. He returned outside and ran from the front porch of the house with a gun in his hand and up the sidewalk, toward Minnesota Avenue, and after Mr. Robinson. He caught up with Mr. Robinson when the victim was approximately five feet from his vehicle. At that point, Mitchell confronted Mr. Robinson and shot him several times.
After shooting Mr. Robinson, who had nothing in his hands but his cellphone, the defendant began to walk away, but turned back toward the victim and fired another shot at him. A total of nine .40-caliber cartridge casings were found on the scene by police, and all were fired from the same firearm. An autopsy revealed nine gunshot wounds to Mr. Robinson’s body.
Following the shooting, Mitchell fled into and through the residence on Clay Street NE. He exited through the residence’s back door and fled the scene on a motorcycle.
After shooting and killing Mr. Robinson, Mitchell fled to a storage facility in Forestville, Md., where he hid the motorcycle that he used to flee the crime scene. The defendant is captured on surveillance footage from that storage facility wearing the same clothes that he was seen wearing at the time of the murder. Mitchell was arrested on Aug. 24, 2011.
In announcing the plea, U.S. Attorney Machen commended the work of the detectives, officers and crime scene technicians who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Durand Odom, Victim/Advocate Marcia Rinker and Paralegal Specialists Mia Beamon and Kendra Johnson. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Reagan M. Taylor, Teresa Howie and Stephen J. Gripkey, who prosecuted the matter.
13-142Maryland Business Owner Pleads Guilty to Health Care Fraud in Scheme Involving More Than $200,000 in False Medicaid Claims-Scheme Carried Out from 2007 to 2011, Involved Incontinence Supplies-Read the Press Release
WASHINGTON – Tina Jackson-White, the owner and president of Family Home Medical Equipment and Supplies, LLC, pled guilty today to a federal charge of health care fraud stemming from a scheme in which the firm submitted and collected more than $200,000 in fraudulent Medicaid claims.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS - OIG) for the region including the District of Columbia, and Charles J. Willoughby, District of Columbia Inspector General.
Jackson-White, 51, of Bowie, Md., pled guilty in the U.S. District Court for the District of Columbia. The Honorable Amy Berman Jackson scheduled sentencing for July 9, 2013. Jackson-White faces a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that she faces a likely range of 24 to 30 months of incarceration and a fine of up to $50,000. As part of her plea agreement, Jackson-White has agreed to pay $212,893 in restitution to the District of Columbia Medicaid program.
According to a statement of offense, signed by the defendant as well as the government, Family Home Medical Equipment and Supplies provided durable medical equipment, or DME, such as adult incontinence supplies and other medical products to Medicaid beneficiaries in the District of Columbia and Maryland. Under Medicaid rules, the company would pay for the cost of the products supplied to beneficiaries and then submit claims for reimbursement.
Between January 2007 and December 2011, the company billed D.C. Medicaid for a total of $212,893 in fraudulent claims. The claims, knowingly submitted by the defendant, were for incontinence products, such as briefs, diapers and liners, which were not actually provided.
“Medicaid is designed to provide low-income families and people with disabilities with access to critical health care,” said U.S. Attorney Machen. “Over five years, this business owner defrauded the Medicaid program by submitting bills for more than $200,000 in supplies that were never delivered. This prosecution illustrates our commitment to fighting the fraud that undermines the integrity of federal health care programs and diverts resources intended to serve our neighbors in need.”
“Instead of providing medical supplies to citizens in the District of Columbia and Maryland, Ms. Jackson-White intentionally manipulated our Medicaid system and pocketed the money from claims she submitted,” said Assistant Director in Charge Parlave. “Along with our partners at HHS-OIF and DC-OIG, the FBI will continue to pursue all such fraudulent schemes which damage the ability of health care providers, employers and patients to participate in a system free of fraud and dishonesty.”
“As demands on the D.C. Medicaid program increase even as resources remain scarce, fraud is less tolerable than ever”, said HHS-OIG Special Agent in Charge DiGiulio. “Criminals such as Jackson-White will be brought to justice through aggressive investigation and prosecution.”
“This matter again represents how the District can work together with its federal colleagues in law enforcement to protect the interests of its citizenry and the public treasury,” said Inspector General Willoughby.
In announcing the guilty pleas, U.S. Attorney Machen, Assistant Director in Charge Parlave, Special Agent in Charge DiGiulio, and Inspector General Willoughby expressed appreciation for the work done by those who investigated the case from the FBI, HHS-OIG and the Medicaid Control Unit of the District of Columbia Office of the Inspector General. They also commended the work of Paralegal Specialists Krishawn Graham and Diane Hayes of the U.S. Attorney’s Office. Finally, they acknowledged the efforts of Assistant U.S. Attorney Lionel André, of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Stuart Silverman, of the D.C. Medicaid Control Unit, who are prosecuting the case.
13-141Manhattan U.S. Attorney Files Healthcare Fraud Lawsuit Against Novartis Pharmaceuticals Corp. for Orchestrating A Multi-Million Dollar Prescription Drug Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Ronald T. Hosko, the Assistant Director of the Federal Bureau of Investigation, Criminal Investigative Division (“FBI”), announced today that the United States has filed a civil healthcare fraud lawsuit against NOVARTIS PHARMACEUTICALS CORP. (“NOVARTIS”). The Government’s Complaint seeks treble damages and civil penalties under the False Claims Act against Novartis for giving kickbacks, in the form of rebates and discounts, to 20 or more pharmacies in exchange for their switching transplant patients from competitor drugs to NOVARTIS’s drug, Myfortic. The lawsuit alleges that, as a result of NOVARTIS’s kickback scheme, Medicare and Medicaid have issued tens of millions of dollars in reimbursements based on false, kickback-tainted claims.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, using the lure of kickbacks disguised as rebates, Novartis co-opted the independence of certain pharmacists and turned them into salespeople for one of its drugs. And by allegedly hiding this illegal quid pro quo from physicians, patients, and federal healthcare programs, Novartis caused the public to pay tens of millions of dollars for kickback-tainted drugs that were dispensed by pharmacists who were in cahoots with the company. Novartis, as we allege, is a repeat offender, having settled healthcare fraud charges based on kickbacks less than three years ago.”
FBI Assistant Director Ronald T. Hosko said: “The FBI takes these allegations very seriously because of the potential impact to the nation’s healthcare system and to the public. These cases are one of the highest priorities of the FBI’s health care fraud program. We have established a centralized unit called the Major Provider Response Team to provide nationwide investigative assistance given the complexity of such investigations.”
The following allegations are based on the Complaint filed today in Manhattan federal court:
NOVARTIS markets and manufactures Myfortic, an immunosuppressant drug approved for use by patients who have undergone kidney transplants. NOVARTIS markets Myfortic to hospital centers and pharmacies that serve these transplant patients. Since 2005, NOVARTIS has orchestrated a scheme whereby it offered kickbacks, disguised as “performance” rebates and discounts, to 20 or more pharmacies with influence over prescription decisions. In exchange, those pharmacies committed to use that influence to “convert” (i.e., switch) patients to Myfortic from competitor drugs and/or to oppose the use of a cheaper, generic immunosuppressant drug.
In one case, according to a NOVARTIS manager, NOVARTIS offered a pharmacist in Los Angeles a “bonus” rebate equal to 5% of that pharmacist’s annual Myfortic sales, amounting to several hundred thousand dollars, to induce the pharmacist to “shoulder the burden” of switching 700 to 1,000 transplant patients to Myfortic. NOVARTIS found that it was highly profitable to pay pharmacies even 10% or 20% in kickbacks in exchange for switching transplant patients to Myfortic because, in the words of a Novartis manager, the “short term cost” bought NOVARTIS “a long term annuity.”
In an effort to actively conceal the quid pro quo, NOVARTIS documented its relationships with the pharmacies in rebate and discount contracts that omitted the agreements between NOVARTIS and the pharmacies to switch patients to Myfortic or keep them from switching to competitor drugs. For example, in discussing a potential kickback relationship with a national pharmacy, NOVARTIS and the pharmacy recognized that, although a basic objective of that relationship was the “conversion” of patients to Myfortic, NOVARTIS “cannot put this in writing.” Further, the pharmacies hid the financial benefits they stood to gain from physicians, patients, and the federal healthcare programs, and instead, presented their efforts to switch patients to Myfortic as unbiased professional judgments.
NOVARTIS’s kickback scheme violated the federal anti-kickback statute, which prohibits the offer or payment of rebates and other types of remuneration to induce the purchase or recommendation of any drug or service covered by Medicare, Medicaid, or another federal healthcare program. By orchestrating this scheme, NOVARTIS further caused the pharmacies to submit tens of thousands of claims to Medicare and Medicaid, resulting in those programs paying out tens of millions of dollars in reimbursements based on false claims tainted by kickbacks.
The Complaint seeks treble damages and penalties under the False Claims Act, 31 U.S.C. §§ 3729 et seq., for the tens of millions of dollars in reimbursements that Medicare and Medicaid paid for Myfortic shipments that resulted from NOVARTIS’s kickback scheme. In addition, the United States seeks compensatory damages under the common law theory of unjust enrichment for the tens of millions of dollars in profits that NOVARTIS has obtained as result of Medicare and Medicaid reimbursements for Myfortic.
Mr. Bharara praised the investigative work of the FBI’s Major Provider Response Team. He also thanked the Office of Inspector General at the U.S. Department of Health and Human Services and the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division in Washington D.C., for their extraordinary assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating healthcare and other types of frauds. Assistant U.S. Attorneys Li Yu, Ellen M. London, and Rebecca C. Martin are in charge of the case.
U.S. v. Novartis Pharmaceuticals Corporation - Complaint in Intervention (11 Civ 8196)
Manhattan Physician Charged with Unlawfully Prescribing Prescription DrugsRead the Press Release
TOPEKA, KAN. – A doctor in Manhattan, Kan., has been charged with unlawfully prescribing prescription drugs, U.S. Attorney Barry Grissom said today.
Physician Michael Schuster, 53, who operates Manhattan Pain and Spine in Manhattan, Kan., is charged with one count of conspiracy to illegally distribute controlled substances.
A criminal complaint filed today in U.S. District Court in Topeka alleges that Schuster employed unlicensed staff members who distributed controlled substances to patients using Schuster’s signature on prescriptions while he was traveling out of the state or out of the country. The indictment alleges that Schuster was out of the office when a total of 542 patients received prescriptions for medications including oxycodone, morphine, hydromorphone, oxymorphone, fentanyl, amphetamine salts, tapentadol, methadone, methylphenidate, hydrocodone, diazepam, alprazolam, zolpidem titrate and clonazepam.
According to an investigator’s affidavit, the investigation began early in 2012 when the Riley County Police Department received reports that Schuster was issuing prescriptions for high dosages of scheduled drugs based on minimal or cursory physical examinations. As a result, several patients had overdosed on their medications and Riley County Police were investigating the diversion of prescription drugs. Simultaneously, physicians and hospital staff at Fort Riley voiced concerns to Army Criminal Investigative Division that active duty soldiers and family members who died from overdoses were patients of Schuster. Investigators examined records indicating Schuster prescribed unusually high dosages of scheduled narcotics despite questionable medical necessity and allowed his patients to get early refills of controlled substances.
The affidavit states that in order to prescribe controlled substances in a legal manner a physician must meet with a patient to determine that the medication being prescribed is for a legitimate medical purpose. Only licensed health care professionals including physicians and physician assistants can lawfully issue prescriptions for controlled substances.
Investigators documented various prescriptions bearing Schuster’s signature while he was on trips to Russia, South Africa, Uruguay, Canada, New York, Chile, Argentina, and Israel.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million. If death or bodily injury results from the crime, the penalty is not less than 20 years. Investigating agencies include the Riley County Police Department; the Federal Bureau of Investigation; the Department of Defense, Criminal Investigative Service (DCIS); the Department of Health and Human Services, Office of Inspector General (HHS-OIG); the Drug Enforcement Administration (DEA); the Department of Homeland Security - Homeland Security Investigations (DHS-HSI); and the Diplomatic Security Service (DSS).
Man Indicted for Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that a man has been indicted by a federal grand jury for allegedly living in the United States illegally after previously being deported to Mexico twice.
Abraham Cortez-Morales, age 25, was indicted by a federal grand jury on March 19, 2013 for Illegal Reentry after Deportation.
Cortez-Morales appeared before U.S. Magistrate Judge Veronica L. Duffy on April 12, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 2 years of imprisonment and a $250,000 fine.
The charge is merely an accusation and Cortez-Morales is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Cortez-Morales was remanded to the custody of the U.S. Marshal. A trial date has been set for June 18, 2013.
Louis Michael Healy Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on April 16, 2013, in Great Falls, after a federal district court trial before Chief U.S. District Judge Dana L. Christensen, LOUIS MICHAEL HEALY, a 40-year-old resident of Hays and an enrolled member of the Fort Belknap Tribes, was found guilty of assault resulting in serious bodily injury, aggravated sexual abuse, and abusive sexual contact. Sentencing is set for July 26, 2013. He is currently detained.
At trial, the following evidence and testimony was presented to the jury.
On October 13, 2012, the victim drove HEALY to the store where he bought several black cans of Smirnoff. After leaving the store, the victim drank a little from a can, and HEALY drank one can very quickly. They drove to a hill where HEALY drank two or three more cans of Smirnoff. The victim drank an additional can. HEALY then asked the victim to marry him. The victim replied that she would not marry HEALY unless he could prove he had ceased speaking with his ex-girlfriend.
HEALY and the victim returned to his home on the Fort Belknap Indian Reservation. They turned on HEALY's computer and the victim read e-mails that indicated HEALY was still speaking with his ex-girlfriend. The victim was sitting in a rolling computer chair. She became upset and HEALY grabbed her neck with his right hand and pushed her across the floor in the chair. Due to the force of the push, she crashed and hit her head. When she awoke, HEALY had his hand on her throat applying pressure. He then walked to the kitchen and grabbed a knife. HEALY stood over the victim, placed the knife to her throat, and told her to get up.
The victim began to cry, her throat hurt, and HEALY told her to get into the bedroom. He instructed her to lie down and said, "if you don't stop **** crying, you know what you're going to get and we both aren't coming out of the room, so stop **** crying." At that point, the victim believed HEALY was going to kill her. The victim continued to complain that her throat hurt so HEALY went to the kitchen where he returned with water and a popsicle. She then began to vomit due to the drinking or strangulation she had experienced. According to the victim, she spoke with HEALY for a little bit while sitting on the bed until HEALY grabbed her and sexually assaulted her while she continued to tell him to stop. HEALY then told the victim to get back on the computer and instructed her to tell his ex-girlfriend that the victim was going to leave her alone.
HEALY went to the bathroom after this instruction. The victim decided this was her chance to escape and she ran out of the house to the next door neighbor's home. HEALY realized the victim had run away and he chased after her, but she got inside the neighbor's home safely.
The neighbors testified that they had awoken at approximately 4:00 a.m. to someone pounding on the door. The victim was at the door very upset and trying to get inside. The victim was crying and saying her boyfriend was trying to kill her. He had held a knife to her throat and she said, "he's going to kill me."
When law enforcement arrived at HEALY's home, HEALY was walking and carrying two black bags. HEALY was ordered to stop and HEALY turned around and yelled, "**** you." The police ordered HEALY to the ground and pepper sprayed him in an effort to subdue him.
An ambulance arrived and transported the victim to the hospital where a nurse immediately assessed that the victim had trouble swallowing due to strangulation. The nurse noted the left side of the victim's throat had a few areas of linear petechial, which is bruising around the throat. She applied ice and the victim told the nurse she was sexually assaulted and strangled. The hospital also performed a sexual assault examination. The victim ended up returning to the hospital a few days later due to continued throat pain and inability to swallow.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case for the United States.
HEALY faces possible penalties of life imprisonment, a $250,000 fine and up to a lifetime of supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Local Chiropractor and Company Sentenced on Federal Healthcare Fraud and Pension Fraud ChargesRead the Press Release
St. Louis, MO - Dr. Anthony Calandro was sentenced to 72 months imprisonment and ordered to pay $1,018,746 restitution for billing 18 insurance companies and patients for services the patients did not receive and using pension plan funds, without authorization, to buy stock and to purchase several Florida condominiums. His business, Chiropractic Accident Centre of Crestwood, was sentenced on the healthcare fraud charges to two years of probation and ordered to pay a $2,000 special assessment.
ANTHONY WILLIAM CALANDRO, Chesterfield, Missouri, and Chiropractic Accident Centre of Crestwood, P.C., St. Louis, Missouri, were convicted in November of one felony count of health care fraud. Dr. Calandro was also convicted of three counts of making false statements related to health care services, the corporation was convicted of four counts of making false statements.
According to testimony presented at his trial, during 2010 and 2011, two undercover investigations revealed that Dr. Calandro and Chiropractic Centre billed multiple insurance companies for services that were never rendered. From 2006 to 2011, they submitted numerous reimbursement claims that falsely stated that the Chiropractic Centre had taken more x-rays than were actually taken. In almost all instances, only one or two x-rays were taken during a patient’s visit, but as many as eight to twelve x-ray views were billed. Dr. Calandro also billed for other non-rendered services, including whirlpool therapy, although he did not have a whirlpool. Because health insurance companies would not reimburse Dr. Calandro and Chiropractic Centre for a missed or canceled appointment, they falsely indicated that a billable service had been provided to patients. Using false procedure codes, they submitted thousands of false claims for missed and canceled appointments.According to court documents, on January 23, 2013, Dr. Calandro pled guilty in another case to mail fraud and making false statements to federal agencies concerning the Chiropractic Centre pension plan. Dr. Calandro was the trustee for the pension plan and had sole control over the funds of the pension plan. In 2005 and 2006, he used $60,000 of the pension plan funds to buy stock and $128,121 to make down payments on the purchase of three Florida condominiums in his name. To conceal the theft of the funds, from 2005 to 2009, Dr. Calandro falsely reported to his employees, the Department of Labor and the Internal Revenue Service that the pension plan owned the condominiums and other assets.
Dr. Calandro appeared today for sentencing before United States District Judge E. Richard Webber.
Dr. Calandro’s billing assistant Sherry Rueter, St. Louis, Missouri, previously pled guilty to related health care fraud charges and has been sentenced.
This case was investigated by the Federal Bureau of Investigation and the Department of Labor-Office of the Inspector General. Assistant United States Attorneys Dorothy McMurtry and Dianna Collins handled the case for the U.S. Attorney’s Office.
Lee's Summit Soccer Coach ChargedRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., youth soccer coach was charged in federal court today with producing child pornography by secretly videotaping members of his soccer team.
Joel D. White, 40, of Lee’s Summit, was charged with producing child pornography in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo. White, who coaches a girls under-12 soccer team and a girls under-15 soccer team through a local soccer association, remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, law enforcement officers in Commerce City, Colo., discovered videos of nude minors on White’s camera. White was at a soccer stadium in Colorado last month for a World Cup qualifying game when the cameras were seized by law enforcement officers as part of a criminal investigation.
Several videos allegedly depict White positioning a video camera in a bedroom of his residence in such a way that the camera is hidden. Shortly after White leaves the room, the affidavit says, the videos depict several minors, approximately 11 or 12 years old, entering the room and changing their clothes. Minors are fully nude in the videos and do not appear to know they are being videotaped.
White allegedly told police that he videotaped nude minors 10 to 15 times without their consent from May to October 2012. According to the affidavit, at least four child victims have been identified so far in the investigation.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Commerce City, Colo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Lafayette Medical Clinic Owner Pleads Guilty to Bogus Prescription Drug SchemeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Gloria Adams, 63, of LaPlace, La., pleaded guilty before U.S. District Magistrate Judge Patrick J. Hanna for her part in a conspiracy to sell and fill prescriptions without doctor supervision.
According to the Stipulated Factual Basis at the guilty plea, Adams, who is not a doctor, opened Essential Medical Center (EMC) in Lafayette November 2005. She admitted to conspiring to dispense Controlled Dangerous Substances (CDS) such as Xanax and Lortab when no doctors were present at the clinic through a system called “pre-signing.” Pre-signing took place at the clinic when some non-physician staff used pre-signed documents to dispense prescriptions to patients while doctors were absent. She also admitted that she aided and abetted the practice of dispensing CDS outside the scope of professional practice and not for a legitimate medical purpose. Adams also admitted to using $15, 917 in proceeds derived from the illegal sale of controlled substances to engage in a monetary transaction through a financial institution.
Adams pleaded guilty to one count of unlawful dispensing of controlled substances and one count of money laundering. Each count carries a maximum penalty of up to 10 years in prison, a $250,000 fine, and three years of supervised release. Adams is scheduled to appear Aug. 8, 2013, for sentencing before U.S. District Court Judge Elizabeth E. Foote in Lafayette. Adams was indicted with co-defendants Dr. Kasimu Moody, Dr. Toland Ash, and Patrick Smith on May 12, 2011.The Drug Enforcement Agency (DEA)/Office of Diversion Control and the Internal Revenue Service (IRS) conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Kaufman County Man Admits Possessing and Transporting Child PornographyRead the Press Release
Defendant Faces 30 Years in Federal Prison
DALLAS — Billy Wayne Johnson, 55, of Scurry, Texas, appeared Friday in federal court in Dallas, before Chief U.S. District Judge Sidney A. Fitzwater, and pleaded guilty to a superseding information charging one count of transportation of child pornography and one count of possession of child pornography. According to the terms of the plea agreement, if the Court accepts the plea, the parties agree that the appropriate term of imprisonment is 30 years in federal prison. Johnson, who has been in custody since his arrest in February 2013 on a related federal criminal complaint, also faces up to a $500,000 fine and a lifetime of supervised release. Sentencing is set for August 2, 2013, before Judge Fitzwater. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, the investigation began in December 2012 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was conducting an undercover investigation to identify persons who were distributing child pornography using peer-to-peer file-sharing and the Internet. The investigation revealed an IP address that was connected to Johnson.
Johnson admitted that he obtained images of child pornography from other peer-to-peer users/members in his private network of contacts, and that he downloaded, viewed and shared images of child pornography. A forensic evaluation of Johnson’s laptop and thumb drive that were seized revealed more than 1600 images and 194 videos of child pornography. Also located on his laptop were lewd and lascivious photographs, as well as a video, that he admitted taking of boys under age six. He further admitted that some of the images and videos he possessed depicted sadistic images of prepubescent minors. He also admitted that he engaged in several chats with other members of his peer-to-peer network in which he and the others discussed their interest in molesting and sexually assaulting children under the age of six.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI is in charge of the investigation; Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Johnstown Man Tells Court He Distributed HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distribution of heroin, United States Attorney David J. Hickton announced today.
Maurice L. Lindsay, 37, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Nov. 3, 2011, Lindsay distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Sept. 5, 2013, at 10:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Lindsay.
Jefferson County Man Sentenced for Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 39-year-old Beaumont, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Jonathan Keith Roberts pleaded guilty on Aug. 23, 2012, to two counts of bank robbery and brandishing a firearm during a crime of violence and was sentenced to 180 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on Dec. 4, 2009, Beaumont police officers were dispatched to BBVA Compass Bank on Phelan Boulevard in Beaumont, in reference to a robbery. During their investigation, officers learned that a man wearing a black mask entered the front door when tellers were changing their registers, resulting in more cash than usual being on hand at the counter. He produced a handgun and started shouting at employees as he approached the counter. He placed a blue nylon bag on the counter and approximately three times, said, "Give me your money now!" The man pointed the gun at several of the bank stations, showing employees the registers from which he wanted money. He did not point to any of the stations that had no money in them, which was strange to the employees. When employees hesitated, he said he would shoot one of them to show them he was serious. Employees put the money in the bag as directed, and, after the man grabbed the bag, he told the employees to go to the back. He told them not to come out and then he quickly fled on foot. The employees locked themselves in a room to hide until officers arrived. It was later determined that $29,170.89 had been stolen during the robbery.On Jan. 9, 2010, as the manager of the Guaranty Bank on Interstate 10 East in Beaumont walked toward the entry door to lock the door in preparation to close for the day, a man wearing a mask and dressed in black entered the bank with an automatic handgun. The man pointed the firearm toward her and another worker and ordered them to get on their knees. They did not move fast enough so the man chambered a round in the gun to show that the gun was loaded and he was serious. In doing so, a .40 caliber live round dropped to the floor that had already been in the chamber. He then made them crawl to the back of the lobby and lay down on the floor.
A co-actor with a handgun entered the bank behind the first man. The co-actor went to the counter and approached a customer, pointed a gun at her back, and told her "get your hands up." The customer raised her hands and dropped $60 that she was holding in her hand. The robber took her money and ordered her to walk to the back of the lobby. He opened the door that led to the break room/restroom areas. At that moment, a hired contractor who had been working on signs at the bank, exited the restroom and was also ordered around at gunpoint. The co-actor then led Larzo and the contractor back to the lobby and onto the floor. An employee put money in a bag as instructed by one of the robbers. The employee also put a "dye pack" and "bait bills" in the bag. The robber wanted more money, and asked for a manager. The robber was told there was no more money and the robbers then left the bank on foot.
A witness had seen the two actors being dropped off at the bank by the driver of a car that left the area and parked in the area of a nearby hotel. When the actors left the bank, they ran to the get-away car. Witnesses observed the men as a dye pack exploded while one of the robbers was carrying the bag of money. The explosion caused the robber to fall, but he got up and limped to the vehicle which then sped away.
During a subsequent investigation of a robbery at Harbor Freight Store in Beaumont, officers interviewed Jonathan Roberts who confessed to taking part in both bank robberies as well as the Harbor Freight Store robbery. Roberts knew details about the robberies that were not released to the public, such as the description of the witnesses and the presence of the dye pack in the January 9, 2010 bank robbery.
This case was investigated by the FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Baylor Wortham.
Jasper Wade Half Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 23, 2013, before Senior U.S. District Judge Jack D. Shanstrom, JASPER WADE HALF, a 37-year-old resident of Crow Agency and an enrolled member of the Crow Tribe of Indians, pled guilty to assault with a dangerous weapon. Sentencing has been set for July 24, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On May 20, 2011, HALF and the victim were drinking alcohol in Hardin. They left together and were on the off-ramp outside Hardin, when they began to argue. They pulled over and began to fist-fight. The victim beat up HALF. HALF got into his car and drove away across the interstate. He then turned around and returned to the exit. When HALF was on the on ramp, he stopped, pulled out a .22 caliber rifle from the trunk, and shot at the victim. HALF individually loaded the second round and fired again.
Shortly after HALF shot the gun, he was arrested by Big Horn County Sheriff's deputies. HALF initially stated that he had aimed the gun "in the air." Later, HALF reconsidered his previous statement and explained that he had pointed the gun at the victim and then up in the air.
A witness saw the incident and explained that, to her, it looked like HALF was pointing the gun at and shooting at the victim.
HALF faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Big Horn County Sheriff's Office and the Federal Bureau of Investigation.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 18, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
JOSHUA TYLER APLAND, a 21-year-old resident of Minot, North Dakota, appeared on charges of: Count I: conspiracy to possess with the intent to distribute methamphetamine, Counts II & III: possession with the intent to distribute methamphetamine and distribution of methamphetamine, Count IV: possession of a firearm in furtherance of a drug trafficking crime, and Count V: felon in possession of a firearm.
He is currently detained. If convicted of these charges, APLAND faces possible penalties of: Counts I, II & III: a mandatory minimum of 10 years in prison and could be sentenced to life and a $10,000,000 fine for each count; Count IV: a mandatory minimum of 5 years and could be sentenced to life and a $250,000 fine, to run consecutively to any other sentence; and Count V: 10 years and a $250,000 fine. Assistant U.S. Attorneys Joseph E. Thaggard and Zeno B. Baucus are the prosecutors for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Montana Division of Criminal Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 23, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
EDWARD HENRY PRATT, a 34-year-old resident of Browning, appeared on charges of assault with intent to commit murder, assault resulting in serious bodily injury, assault with a dangerous weapon, and being a felon-in-possession of a firearm. He is currently detained. If convicted of these charges, PRATT faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Blackfeet Law Enforcement Services.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 18, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
LEVI ANTHONY LABUFF, JR., a 36-year-old resident of Browning, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of these charges, LABUFF faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and four years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 18, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
CARL CHESTER ALDEN, JR., a 23-year-old resident of Crow Agency, appeared on charges of involuntary manslaughter and (2) counts of assault resulting in serious bodily injury. He is currently released on special conditions. If convicted of these charges, ALDEN faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indiana, Pa., Man Charged with Possessing Sexually Explicit Images of ChildrenRead the Press Release
PITTSBURGH, Pa. - A resident of Indiana County, Pa. has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment named Christopher Murdock, 27, as the sole defendant.
According to the indictment, on or about Nov. 17, 2012, Murdock possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Imperial County Man Charged with Possession of Child PornographyRead the Press Release
El Centro, CA - United States Attorney Laura E. Duffy announced the arraignment this afternoon of Damian C. Mora on an indictment charging him with one count of possession of images of minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(4)(b), a felony.
According to the criminal complaint filed earlier in the case, the defendant posted about collecting photographs of minors engaged in sexually explicit conduct on a website relating to the sexual exploitation of children and also posted about his sexual interest in children. According to the complaint, the defendant’s collection included depictions of children, as young as one to two years of age, sexually exploited by adults.
The defendant was arrested by Immigration and Customs Enforcement, Homeland Security Investigations agents on April 9, 2013, in El Centro, California. Anyone with information relating to the charges against this defendant is urged to call 760 335 5389 and leave a confidential message, which will be returned by special agents investigating this case.
The public is reminded that an indictment is not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
This case stems from an investigation by the Department of Homeland Security, Immigration and Customs Enforcement’s Homeland Security Investigations.
DEFENDANT Case Number: 13cr1471JM Damian C. Mora SUMMARY OF CHARGESTitle 18, United States Code, Section 2252(a) (4) (Possession of Child Pornography)
INVESTIGATING AGENCY
Maximum Penalties: 10 years’ incarceration, $250,000 fine, a minimum of 5 years and up to a lifetime of supervised release and registration as a sex offender.Immigration and Customs Enforcement’s Homeland Security Investigations
Huntsville Army Officer Sentenced for False Statements and Theft of Government PropertyRead the Press Release
BIRMINGHAM – A judge today sentenced a U.S. Army officer to two years’ probation, to include six months of house arrest, and fined him $25,000 for making false statements to a department of the United States and for stealing government property, announced U.S. Attorney Joyce White Vance and Defense Criminal Investigative Service, Southeast Field Office, Special Agent in Charge John F. Khin.
U.S. District Judge Abdul K. Kallon sentenced LT. COL. JAMES O. McLINNAHAM, 45, on three counts of making false statements on official, confidential financial disclosure forms; one count of making false statements in a questionnaire for national security clearance; one count of theft of government property; and three counts of making false statements in work orders submitted to the Army print shop. A federal jury convicted McLinnaham in January. As part of McLinnaham’s sentence, Judge Kallon ordered him to pay $1,600 restitution to the government.
“We should be able to expect honesty and integrity from all government employees, including military personnel,” Vance said. “This case demonstrates our commitment to investigating and prosecuting those who do not live up to the trust that our citizens have placed in them. Government employees will be held accountable for theft and deceit,” she said.
“This field grade officer’s corrupt and unethical conduct was shameful,” Khin said. “DCIS and our partners will relentlessly pursue and bring to justice those who deliberately deprive America’s Warfighters of increasingly limited resources by stealing and abusing taxpayer funds,” he said.
McLinnaham was stationed at Redstone Arsenal in Huntsville. Evidence at his trial showed the he had certified that his financial disclosure forms were true when he had failed to disclose his position with an outside business, and to having received wages and other payments from that business. The evidence also showed that McLinnaham had certified that his questionnaire for national security clearance was true, when he had failed to disclose his association with the same business, a prior marriage, and a prior misdemeanor arrest. The defendant was required to fill out all these forms as part of his official duties with the U.S. Army.
False statements on the work orders related to McLinnaham certifying that posters printed and mounted by the Army print shop were for official purposes when they were actually for his outside business. The theft of government property charge related to the same posters, and to the defendant obtaining a conference table from Redstone Arsenal for which his business received a $400 credit toward the purchase of another conference table from a local furniture store.
The case was investigated by the U.S. Department of Defense Criminal Investigative Service, with assistance from the U.S. Army Criminal Investigation Command, and the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorneys Russell E. Penfield and Terence M. O’Rourke prosecuted the case.
Goodwin: Logan Doctor Pleads Guilty in Federal Pill-mill ProsecutionRead the Press Release
So-called doctor’s office lacked running water, medical equipment; doctor faces up to six years in federal prison
*Audio Clip included*
CHARLESTON, W.Va. –United States Attorney Booth Goodwin announced today that a Logan County doctor has pleaded guilty to federal drug charges in connection with a Logan County pill mill. Dr. Fernando Gonzales-Ramos, 47, pleaded guilty in federal court to conspiracy to distribute controlled substances without a legitimate medical purpose. Gonzales-Ramos was charged earlier this month in a legal filing known as an information.
“Dr. Gonzales-Ramos wasn’t operating a doctor’s office, he was running a drug den,” said U.S. Attorney Goodwin. “His so-called office had no exam table, no running water, and not even so much as a stethoscope. For thousands of dollars in cash, he was pumping out prescriptions for thousands of units of powerful narcotics.”
Gonzales-Ramos traveled from El Paso, Texas to Logan, West Virginia every three months to illegally dispense prescription painkillers from a Logan County office. Gonzales-Ramos also hired a commercial security guard who was armed with a firearm to protect his makeshift Logan County doctor’s office.
On March 2, 2013, an individual cooperating with the FBI entered the building that the defendant used as an office and paid $450 cash in exchange for a prescription for the painkiller hydrocodone. Prior to obtaining the prescription, the cooperating individual had not been examined or questioned by anyone. The cooperating individual obtained the prescription from Gonzales-Ramos’s office in less than three minutes.On March 3, 2013, law enforcement agents executed a search warrant on the building located at 2130 Old Logan Road in Logan, W.Va. During the execution of the warrant, agents found several individuals waiting inside to get written prescriptions for controlled substances from Gonzales-Ramos.
From September 2011 through March 3, 2013, Gonzales-Ramos ran a cash-only business at the Logan County office where he charged patients $450 for Schedule III controlled substance prescriptions and $500 for Schedule II controlled substance prescriptions. After collecting the cash payments, Gonzales-Ramos directed a known associate to make cash deposits into his personal bank accounts.
Gonzales-Ramos faces a minimum of 57 months and up to 71 months in prison when he is sentenced on August 14, 2013 by U.S. District Judge John T. Copenhaver, Jr.As part of his plea agreement, Gonzales-Ramos has agreed to surrender his Drug Enforcement Administration Certificate of Registration.
The investigation was conducted by the FBI, the U.S. 119 Drug Task Force, the West Virginia State Police, and the Logan County Sheriff’s Department. Assistant United States Attorney Steven Loew is in charge of the prosecution.
This case is being 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.
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Click here listen to an audio clip from U.S. Attorney Booth Goodwin
Glendale Man Who Played Role in Kickback Scheme That Bilked San Francisco Food Company Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – A Glendale man who pleaded guilty in a scheme that led to his San Francisco employer suffering losses of more than $2 million – a plot that has connections to a kickback scheme that defrauded Huntington Hospital in Pasadena – has been sentenced to 20 months in federal prison.
Tony Hamedany, 58, who formerly resided in Hillsborough, California, was sentenced yesterday by United States District Judge Percy Anderson, who also ordered the defendant to pay $1.54 million in restitution to his former employer, Columbus Manufacturing, Inc., the San Francisco-based manufacturer of salame and other deli products.
Tony Hamedany pleaded guilty in October 2011 to two counts of mail fraud in relation to a kickback scheme he orchestrated during his tenure as director of engineering for Columbus. Tony Hamedany’s position at Columbus enabled him to negotiate construction contracts that he agreed to award in exchange for kickback payments from vendors. The construction contracts – for construction projects related to the salame company’s production facilities in South San Francisco – were adjusted so that vendors would pay Tony Hamedany kickbacks from payments they received from the contracts with Columbus.
Among the people who paid kickbacks to Tony Hamedany was Alexander Svidler, 55, of San Francisco, who pleaded guilty to mail fraud stemming from his participation in the kickback schemes pertaining to both Huntington Hospital and Columbus and was sentenced to 18 months in federal prison (see: http://www.justice.gov/archive/usao/cac/Pressroom/2012/152.html).
Tony Hamedany is the brother of David Hamedany, 56, also of Glendale, who is serving a three-year prison term for executing a $4.8 million kickback and fictitious billing scheme during his tenure as director of construction for Huntington Memorial Hospital. The Hamedany brothers ran separate, but parallel, kickback schemes and commingled proceeds in bank accounts in the names of entities formed by the brothers.
In addition to the Hamedany brothers and Svidler, an attorney has pleaded guilty pursuant to this investigation. John Haw, 52, of Aliso Viejo, pleaded guilty to two counts of mail fraud in relation to the Huntington Hospital kickback scheme in which Haw received business in exchange for kicking back money to an entity set up by the Hamedany brothers. Haw is scheduled to be sentenced by Judge Anderson on May 6.
The investigation into the kickback schemes, which cost victim companies approximately $7 million, was conducted by the Federal Bureau of Investigation.
Release No. 13-056
French Citizen Charged with Fraud in Airplane IncidentRead the Press Release
PHILADELPHIA - Philippe Jeannard, 61, of La Rochelle, France, is charged by information1, filed today, with one count of fraud in connection with an identification document, announced United States Attorney Zane David Memeger. According to the information, when Jeannard boarded a commercial airplane, on March 20, 2013, at Philadelphia International Airport, he possessed a fraudulent Air France identification card of a former Air France employee and used that fraudulent identification card to gain access to the plane’s cockpit.
If convicted, Jeannard faces a maximum sentence of five years imprisonment, a three year term of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Immigration and Customs Enforcement Homeland Security Investigations, the FBI, Department of Transportation Office of Inspector General, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney K.T. Newton.
1An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Fort Pierre Man Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Pierre, South Dakota man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Jason L. Hackett, age 36, was indicted by a federal grand jury on July 10, 2012. He appeared before U.S. Magistrate Judge Moreno on April 18, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 2 years' imprisonment, a $250,000 fine, 1 year of supervised release, $100 special assessment and possible restitution.
The charge is merely an accusation and Hackett is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of Health and Human Services. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Hackett was released on bond pending trial. A trial date has not been set.
Former Woodruff Arts Center Employee Pleads Guilty to EmbezzlementRead the Press Release
ATLANTA – Ralph Clark pleaded guilty today to embezzling more than $1.1 million from the Woodruff Arts Center while serving as Woodruff’s Director of Facilities.
“The Woodruff Arts Center is an important part of the fabric of our community,” said United States Attorney Sally Quillian Yates. “This defendant embezzled over $1 million from funds intended for the benefit of our citizens.”
"Mr. Clark chose to violate his position of trust at the Woodruff Arts Center,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “In addition, he violated federal law by attempting to profit through arrangements with various contracted vendors. The FBI will continue to provide assistance and investigative resources in such matters that negatively impact our non-profit, cultural institutions such as the Woodruff Arts Center.”
According to United States Attorney Yates, the charges and other information presented in court: In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center. He had been acting in this capacity for several months before he was promoted. His duties included ensuring that the Arts Center was properly maintained. As Director of Facilities, he was authorized to approve vendor contracts up to $50,000. While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.
Clark embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business – Lowe’s Services – which was an apartment cleaning business set up by his wife in 2003. The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself. After the accounts payable department received the invoice, they generated checks from their checking account at SunTrust Bank. Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority.
Clark also defrauded the Woodruff Arts Center by requiring another vendor who provided maintenance services to pay him kickbacks based on inflated invoices. Clark told the vendor that in order for him to get future work he would have to inflate invoices Clark ultimately submitted to Woodruff Arts Center by 30%, and then give that 30% back to Clark.
Clark, 42, of Ellenwood, Ga., could receive a maximum sentence of ten years in prison and a fine of up to $250,000. However, 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 August 7, 2013, at 2:30 p.m. before United States District Judge Julie E. Carnes.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy is 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.
Former Woodruff Arts Center Employee Pleads Guilty to EmbezzlementRead the Press Release
ATLANTA – Ralph Clark pleaded guilty today to embezzling more than $1.1 million from the Woodruff Arts Center while serving as Woodruff’s Director of Facilities.
“The Woodruff Arts Center is an important part of the fabric of our community,” said United States Attorney Sally Quillian Yates. “This defendant embezzled over $1 million from funds intended for the benefit of our citizens.”
“Mr. Clark chose to violate his position of trust at the Woodruff Arts Center,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “In addition, he violated federal law by attempting to profit through arrangements with various contracted vendors. The FBI will continue to provide assistance and investigative resources in such matters that negatively impact our non-profit, cultural institutions such as the Woodruff Arts Center.”
According to United States Attorney Yates, the charges and other information presented in court: In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center. He had been acting in this capacity for several months before he was promoted. His duties included ensuring that the Arts Center was properly maintained. As Director of Facilities, he was authorized to approve vendor contracts up to $50,000. While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.
Clark embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business – Lowe’s Services – which was an apartment cleaning business set up by his wife in 2003. The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself. After the accounts payable department received the invoice, they generated checks from their checking account at SunTrust Bank. Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority.
Clark also defrauded the Woodruff Arts Center by requiring another vendor who provided maintenance services to pay him kickbacks based on inflated invoices. Clark told the vendor that in order for him to get future work he would have to inflate invoices Clark ultimately submitted to Woodruff Arts Center by 30%, and then give that 30% back to Clark.
Clark, 42, of Ellenwood, Ga., could receive a maximum sentence of ten years in prison and a fine of up to $250,000. However, 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 August 7, 2013, at 2:30 p.m. before United States District Judge Julie E. Carnes.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy is 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.
Former North Las Vegas Corrections Officer Indicted on Excessive Force and Obstruction ChargesRead the Press Release
The Department of Justice today announced that a federal grand jury sitting in Las Vegas has indicted a former North Las Vegas corrections officer on federal civil rights and obstruction of justice charges. Stuart Barlow Johnson, 47, was indicted on one count of violating the victim’s civil rights by using excessive force on the victim and one count of obstruction of justice for falsifying an incident report in an attempt to cover up the incident.
The indictment alleges that on Nov. 29, 2008, while acting as a corrections officer at the North Las Vegas Detention Center, Johnson assaulted an unnamed victim, identified as “D.H.,” resulting in bodily injury to D.H. The obstruction count alleges that on the same day, Johnson knowingly falsified a document with the intent to impede, obstruct and influence the investigation and proper administration of a matter within the jurisdiction of the FBI.
If convicted, the defendant faces a statutory maximum penalty of 10 years in prison on the civil rights count and a statutory maximum penalty of 20 years in prison on the obstruction count.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Las Vegas division of the FBI. It is being prosecuted by Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada and Trial Attorneys Ryan Murguía and Patricia Sumner of the Criminal Section of the Civil Rights Division of the Department of Justice.
Florida Real Estate Professional Sentenced to 26 Years in Federal Prison for Mortgage FraudRead the Press Release
Tampa, FL - U.S. District Judge Elizabeth A. Kovachevich sentenced John Lebron (33, Tampa) last week to 26 years in federal prison for conspiracy to commit wire fraud, wire fraud affecting a financial institution, and making false statements to a financial institution. Lebron was also ordered to serve a 5-year term of supervised release, following his release from prison. As part of his sentence, the court also entered a money judgment in the amount of $1,469,300. Lebron was found guilty on October 19, 2012, following a three-week jury trial.
According to testimony and court documents, Lebron was a Florida-licensed realtor and worked as a loan officer. Taking advantage of the downturn in the real estate market, Lebron participated in mortgage foreclosure rescue fraud and short sale fraud, which is sometimes called “flopping” a house.
As part of the scheme, Lebron had hand drawn signs placed on the side of the roads, usually in low income neighborhoods. These signs often advertised the sale of nonexistent houses. The purpose of the signs was to generate leads, to prey upon unsophisticated people, particularly those losing their houses in foreclosure.
Working with another Florida-licensed real estate agent, Lebron opened up a company, called EZ Investments. During their first deal, they used a victim whose house was falling into foreclosure. Lebron arranged for a straw purchaser - his sister - to buy the house in a non-arm’s length transaction. That is, Lebron controlled both ends of the deal. Lebron also served as the loan officer, thus receiving the mortgage broker’s commission, although another loan officer’s name was placed on the paperwork to conceal what Lebron had done. Lebron also took the check that represented the proceeds of the sale of the home from the distressed home owner without her knowledge.
After the straw purchaser “bought” the house, Lebron paid the original mortgage for a short time to prevent the victim from detecting the fraud. He then arranged a short sale of the house to his brother-in-law, in another non-arm’s length transaction. Six days later, using simultaneously recorded deeds, the property was resold to a “credit partner,” that is, another straw purchaser, who Lebron had arranged to buy the house before the short sale proposal was submitted to the bank. This straw purchaser, essentially unemployed, was added on to bank accounts under the control of the conspirators to make it appear that he had assets. The down payment for the transaction was funded through those bank accounts. Fake pay stubs were created to give the appearance that the buyer had an income to support the loan.
In these deals, the conspirators pocketed the money that should have gone to the original distressed home owner. They also received the mortgage broker commission for arranging the first straw purchaser's loan and other commissions and fees, and got the difference between the short sale amount and the new loan. The straw purchasers were each paid $5,000 for their role in the scheme. In addition, Lebron acquired four other loans through fraud.
During the course of the conspiracy, Lebron used stolen and false identities; fraudulently verified his own employment claiming jobs he never had; and, for at least one of the properties, bought it as his primary residence when he legally could not move into it. Lebron committed these crimes while on pretrial release and while on probation.
"This case is particularly disturbing on several fronts," stated John Joyce, Special Agent in Charge, United States Secret Service - Tampa Field Office. "Mr. Lebron and his cohorts knowingly took advantage of homeowners who were in financial distress in order to advance their own financial well being. Mr. Lebron had the audacity to commit these fraudulent acts while on probation and he also defaulted on $1.4 million in loans. He will soon understand that 26 years is a stiff price to be paid for his actions.”
This case was investigated by U.S. Secret Service. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Florida Man Nets Federal Prison for Felony Election OffenseRead the Press Release
Jay Odom, 56, of Destin, Fla., was sentenced today by Senior U.S. District Judge Lacey A. Collier to six months in federal prison for his conviction on one count of causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC). Additionally, Judge Collier ordered Odom to pay a fine of $46,000 and a Special Monetary Assessment of $100 for the felony conviction. The sentencing was announced this afternoon by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Robert O. Davis, Acting U.S. Attorney for the Northern District of Florida.
According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate. The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions. During his guilty plea on February 12, 2013, Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions.
In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000. As a result of this scheme, Odom intentionally caused the presidential candidate’s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Five Shelby County Residents Indicted in Drug ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Five Shelby County, Texans residents have been arrested in connection with a drug trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
A 13-count indictment was returned by a federal grand jury on Apr. 17, 2013 charging the following individuals with federal gun and drug crimes:
Lakeva Shillette Hill, a/k/a Sugar Momma, 35; Lester Earl Pitts, 48; Vincent Jermaine Lathan, a/k/a Reed Cartwright, 36; Cornelius Vansharles Gray, 36; and
Anthony Gene Chumbley, 46.The indictment alleges that beginning in May 2010, Hill, Pitts, Lathan and Gray were involved in a conspiracy to distribute marijuana and crack cocaine in East Texas. Hill, Pitts and Gray are also charged with conspiracy to possess a firearm in furtherance of a drug trafficking crime and possession of a firearm during a drug trafficking crime. Pitts is charged with three counts of providing a firearm to a drug trafficker and three counts of providing a firearm to a convicted felon. Hill and Chumbley are charged with being a felon in possession of a firearm.
The defendants were arrested on Apr. 18, 2013 and made initial appearances before U.S. Magistrate Judge Keith Giblin on Apr. 22, 2013.
If convicted of the drug conspiracy charge, the defendants each face up to life in federal prison. The firearms conspiracy charge carries a maximum penalty of 20 years in federal prison. The firearms possession charges carry a penalty of a minimum of five years in prison. For providing a firearm to a drug dealer or a convicted felon, the defendant faces up to 10 years for each charge. For being a felon in possession of a firearm, the defendants each face a minimum of 15 years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Texas Department of Public Safety, and the Center Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Final Members of Outlaw Motorcycle Gang Sentenced on Racketeering Conspiracy ChargesRead the Press Release
St. Louis, MO - ANTHONY ROBINSON, a/k/a “Blade,” formerly of, Chicago, was sentenced today to two terms of imprisonment of life without the possibility of parole by Chief United States District Judge Catherine D. Perry in St. Louis. Robinson was one of seven defendants convicted by a jury in December 2012 of Racketeering Conspiracy and other crimes. Also sentenced today was Jerry L. Peteet, a/k/a “Angel,” once a well-known criminal defense attorney in Gary, Indiana. Peteet was sentenced to a term of 276 months in prison. Robinson, Peteet and 22 other defendants were indicted as part of a vast federal investigation into the Wheels of Soul Outlaw Motorcycle Club, a nationwide organization based in Philadelphia, Pennsylvania. The Wheels of Soul claim to be the largest mixed-race “outlaw” motorcycle club in the United States, with more than 400 members and chapters in at least 25 states nationwide.
The investigation into the Wheels of Soul began in St. Louis in 2009 and was undertaken by the Federal Bureau of Investigation, St. Louis Field Division. In August 2009, St. Louis chapter President Dominic Henley, a/k/a “Bishop” and Timothy Balle, a/k/a “T” committed an armed robbery in which they stole the motorcycle club “colors” of two local St. Louis residents. Days later, Henley and Balle were involved in an altercation at the clubhouse of another local St. Louis motorcycle club, during which they shot and killed a member of the Sin City Titans. Henley and Balle were sentenced last week to 204 and 96 months in prison, respectively. When sentencing Dominic Henley, the judge told him that he was responsible for the Sin City Titan member's death.
The St. Louis chapter of the Wheels of Soul was part of the Mid-West Region of the organization, which included chapters in Indiana, Kentucky, Ohio, Wisconsin, Minnesota and Illinois. At one time, the Wheels of Soul maintained two chapters in the Chicago area - the Westside Chapter located at 16th and Keeler, and the Southside Chapter located in the 7400 block of Racine. Given the scale of the investigation, the FBI St. Louis contacted law enforcement partners in Chicago, and learned that the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Chicago Police Department had also begun an investigation of the Wheels of Soul. The CPD and ATF immediately agreed to join their investigation with the parallel one in St. Louis.
On June 9, 2011, a Grand Jury sitting in the Eastern District of Missouri returned a federal indictment charging Robinson and others with Racketeering Conspiracy and other federal crimes, including Violent Crime in Aid of Racketeering - Murder. Robinson was arrested at his home in Chicago on July 12, 2011.Most of the indicted members of the Wheels of Soul pled guilty, admitting their involvement in the Racketeering Conspiracy. Some also admitted to having committed violent crimes in furtherance of the conspiracy. Other defendants proceeded to trial in October 2012. The trial lasted roughly 35 days and involved more than 60 witnesses. The jury deliberated for eight days before returning guilty verdicts on all seven remaining defendants.
"The collective effort of law enforcement, corrections and prosecutors in seven states, reflects that justice has no tolerance for violent gangs and that this gang's very existence fuels sheer violence in the community. ATF will continue to target violent gangs that are responsible for gun violence in our cities." -- Larry Ford Special Agent in Charge, Chicago Field Division.
Federal and state law enforcement agencies across the country lent their assistance to the investigation of the Wheels of Soul. The Office of the United States Attorney for the Eastern District of Missouri extends its appreciation to the following for their invaluable contributions:
- Federal Bureau of Investigations - St. Louis Field Division
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Chicago Field Division
- Chicago Police Department
- St. Louis Metropolitan Police Department
- St. Louis County Police Department
- Marion (Ohio) Police Department
- Gary (Indiana) Police Department
- United States Marshals Service
- Federal Bureau of Investigations - Philadelphia Field Division
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Philadelphia, Pennsylvania
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Denver, Colorado
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Louisville, Kentucky
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Youngstown/Columbus, Ohio
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Sacramento, California
- Federal Bureau of Prisons
- Office of the State’s Attorney for Cook County, Illinois
- Indianapolis Police Department
- Columbus (Ohio) Police Department
- Office of the State’s Attorney for LaPorte County, Indiana
and the Offices of the United States Attorneys for the following Districts:
- Northern Illinois
- Eastern Pennsylvania
- Northern Ohio
- Northern Indiana
- Eastern Wisconsin
- Western Kentucky
- Colorado
Federal Judge Sentences Two Men in Cocaine ConspiracyRead the Press Release
McALLEN, Texas - Poteet resident Jonathan Pena and Victor Reyes-Campos, of Mexico City, Mexico, have been sentenced to federal prison for conspiracy to possess with the intent to distribute multi-kilogram amounts of cocaine, United States Attorney Kenneth Magidson announced today.
Jonathan Pena, 28, and Reyes-Campos, 34, of Mexico City, Mexico, entered guilty pleas on April 2, 2012, and Sept. 17, 2012, respectively.
Today, U.S. District Judge Randy Crane handed Pena a 121-month sentence, while Reyes was ordered to serve 210 months in the U.S. Bureau of Prisons.From December 2008 to January of 2010, Pena and Reyes were members of a drug trafficking and money laundering conspiracy which was responsible for transporting thousands of kilograms of cocaine from the Rio Grande Valley area to Georgia. During the investigation, agents were able to seize hundreds of kilograms of cocaine and millions of dollars in drug proceeds.
The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant United States Attorney James Sturgis prosecuted the case.
Federal Court Issues Permanent Injunction Prohibiting Los Angeles Tax Service and Its Owner from Preparing Federal Tax ReturnsRead the Press Release
LOS ANGELES – A federal judge has permanently barred Yonny Torres, who does business under the name Yonny’s Income Tax in downtown Los Angeles, from preparing federal tax returns, the Justice Department announced today.
The civil injunction, which was filed last Thursday by United States District Judge Stephen V. Wilson, determined that Torres engaged in “dishonest conduct” when he prepared federal income tax returns that contained false information that increased his clients’ earned income credit (EIC) so that their tax refunds would be fraudulently inflated.
“This overall scheme spanned over multiple years, comprised thousands of instances of noncompliance, and accumulated losses to the government estimated as high as $6.5 million,” Judge Wilson wrote in his order.
Torres was sued by the United States on December 10, 2012. The permanent injunction was issued last week along with a default judgement in the lawsuit.
Two years ago, Torres was assessed a $52,000 penalty for failing to perform due diligence on clients tax returns.
Release No. 13-057