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18 April 2013
Miami Man Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Sergio Velazquez, Chief, Hialeah Police Department (HPD), announced that defendant Marckell Steward, 21, of Miami, was sentenced yesterday for his participation in a $1.7 million identity theft tax refund fraud scheme. Specifically, U.S. District Judge Cecilia M. Altonaga sentenced Steward to 72 months in prison, followed by three years of supervised release. A restitution hearing is scheduled for Tuesday, June 25, 2013 at 9:45 a.m. Steward previously pled guilty to conspiracy to commit access device fraud and aggravated identity theft.
According to court documents and testimony, Steward along with co-conspirators Lineten Belizaire, 22, Earnest Baldwin, 36, and Earl Baldwin, 42 all of Miami, were involved in an identity theft tax fraud scheme that operated from July 2011 through June 2012. During the course of their fraud scheme, approximately $1.7 million in fraudulent refund claims were submitted to the IRS for payment.
As stated in documents filed in court, Steward conspired with Belizaire and Earnest and Earl Baldwin on a plan to use stolen personal identification information of others to file fraudulent and unauthorized tax returns claiming refunds on debit cards. Some of the refund claims were filed from Earl Baldwin's residence. According to the factual proffer, Steward exchanged text messages with Belizaire where the defendant sent and received personal identification information of victims and also sent and received debit card account numbers that were used for receiving victims’ tax refunds.
As stated in trial testimony and evidence, Earnest Baldwin was found with over 1,000 individual names, dates of birth, and Social Security numbers and approximately 40 pre-paid debit cards in other people’s names. Some of these papers seized included high school report cards with identity information and data from an organization for disabled persons containing identity information. The evidence at trial also showed that Earnest and Earl Baldwin withdrew money from debit cards loaded with fraudulent refunds in the names of victims in the papers and notebooks found on Earnest Baldwin.
Lineten Belizaire pled guilty to access device fraud and aggravated identity theft on March 18, 2013. He faces a maximum possible sentence of 12 years and is scheduled to be sentenced on May 28, 2013 at 8:30 AM before Judge Altonaga.
Sentencing for Earnest and Earl Baldwin has been scheduled for June 17, 2013 beginning at 8:30 AM before Judge Altonaga. Defendant Earnest Baldwin faces a maximum possible prison sentence of 41 years and defendant Earl Baldwin faces a maximum possible prison sentence of 29 years.
Mr. Ferrer commended IRS-CID, USPIS, and HPD for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Maurice Johnson.
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.
Mexican Nationals Arrested for Selling Fraudulent Immigration Documents out of Albuquerque BusinessRead the Press Release
ALBUQUERQUE – Carlos Chico-Salcedo, 40, and his wife Juana Marin-Sandoval, 45, both Mexican nationals illegally in the United States, were arrested yesterday by agents of Homeland Security Investigations (HSI) on criminal complaints charging them with selling fraudulent immigration documents.
Chico-Salcedo and Marin-Sandoval made their initial appearances in federal court this morning and remain in custody pending preliminary and detention hearings scheduled for tomorrow morning.
According to the criminal complaints, in March 2013, Chico-Salcedo and Marin-Sandoval allegedly sold fraudulent documents to HSI agents who were acting in an undercover capacity. The defendants allegedly sold a fraudulent Social Security Card and a fraudulent Permanent Resident Alien Card to the agents for $150.00. The transaction allegedly occurred inside Albuquerque Soccer City, a business located in southwest Albuquerque owned by Chico-Salcedo and at which Marin-Sandoval was employed.
If they are convicted of the charges in the criminal complaints, Chico-Salcedo and Marin-Sandoval each face a maximum penalty of ten years in prison and deportation after completing their prison sentences. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by HSI and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Mexican National Sentenced to over 12 Years in Treasure Valley Drug Trafficking CaseRead the Press Release
Six Defendants Sentenced Earlier, Three Await Sentencing
BOISE – Alfredo Dominguez-Villareal, a/k/a Alfredo Vasquez-Dominguez, 29, a Mexican national, was sentenced today to 150 months in prison for conspiracy to distribute fifty grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Dominguez-Villareal to pay a $1,500 fine. Following his release from prison, Dominguez-Villareal will be subject to deportation. He pleaded guilty to the charge on November 13, 2012.
According to court documents, beginning in January 2011 and continuing through December 16, 2011, Dominguez-Villareal conspired with co-defendants and others to possess and distribute in excess of fifty grams of actual methamphetamine in the Treasure Valley, and transported methamphetamine from California to Idaho for this purpose.
Six co-defendants have been sentenced on related charges, including Jimenez Valencia a/k/a Jorge Jimenez, a Mexican national, to 57 months; Juan Carlos Arredondo-Sicairos a/k/a Victor Kalil Medina-Feliciano, a Mexican national, to 120 months; Delia Garcia-Pineda, a Mexican national, to 37 months; Tanna Spencer, of Parma, Idaho, to 15 months; Hector Morales, of Delano, California, to six months; and Cynthia Casillas, also of Delano, to three years’ probation.
Three co-defendants are awaiting sentencing: Nelson Fernando Garcia-Soto, a Mexican national, on May 23; Alonso Martinez, of Earlimart, California, on June 4; and Samuel Chavez, 32, of Boise, on June 24.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Boise Police Department and the Ada County Sheriff's Office. The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Mexican National Charged in Deaths of Smuggled AliensRead the Press Release
CORPUS CHRISTI, Texas – Idelfonso Garcia-Benitez, 20, of Michoacan, Mexico, has been charged with the smuggling of a group of 14 Illegal aliens that left seven dead and one in critical condition, United States Attorney Kenneth Magidson announced today along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI).
The indictment, returned just moments ago, charges Garcia-Benitez with one count of conspiring to transport aliens, 14 counts of transporting an alien and one count of illegal re-entry after deportation.
According to documents filed of record in the case, on March 20, 2013, at approximately 11:00 p.m., a Kingsville Police Department officer observed a pick-up truck violate state traffic law by disregarding a stop sign. The officer attempted to conduct a traffic stop on this vehicle, but the vehicle fled, leading to a brief pursuit.
The driver crashed into a vehicle barrier on General Cavazos Avenue in Kleberg County that had been deployed by the Kingsville Naval Air Station. A total of 15 illegal aliens were discovered at the scene. Of those, Garcia-Benitez was identified as the driver. Seven were killed and one remains in critical condition.
“The tragic loss of life in this case shows the very real risks that people face when they put themselves in the hands of a smuggler,” said Moskowitz. “Those responsible for the illegal movement of people into and through our country place personal profit ahead of public safety and border protection. They are driven by greed with little regard for the health and well-being of their human cargo and that can be a deadly combination.”
Garcia-Benitez was arrested at the scene of the accident. He has been in custody since that time, where he will remain pending further criminal proceedings. He is expected to appear for an arraignment hearing before U.S. Magistrate Judge Owsley early next week.
If convicted, Garcia-Benitez faces up to 20 years in prison and a possible $250,000 fine.
The case is being investigated by HSI and prosecuted by Assistant United States Attorney Jeffrey S. Miller.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Member of LulzSec Hacking Group Sentenced to over Year in Federal Prison for 2011 Intrusion into Sony Pictures Computer SystemsRead the Press Release
LOS ANGELES – A member of the LulzSec hacking group was sentenced today to one year and one day in federal prison for his conviction on federal computer hacking charges related to an extensive computer attack that compromised the computer systems of Sony Pictures Entertainment.
Cody Andrew Kretsinger, who used the online moniker “recursion,” 25, who formerly lived in Phoenix, Arizona, and currently resides in Decatur, Illinois, was sentenced this morning by United States District Judge John A. Kronstadt.
In addition to the prison term, Judge Kronstadt ordered Kretsinger to serve one year of home detention following the completion of his prison sentence, to perform 1,000 hours of community service, and to pay $605,663 in restitution.
Kretsinger pleaded guilty in April 2012 to conspiracy and the unauthorized impairment of a protected computer. According to court documents, during a one-week period in late May and early June of 2011, the computer systems of Sony Pictures were compromised by a computer hacking group known as “LulzSec” or “Lulz Security,” whose members anonymously took responsibility for the attack.
Kretsinger and others involved in the intrusion obtained confidential information from Sony Pictures’ computer systems by using an “SQL injection” attack against Sony Pictures’ website. Kretsinger and the other attackers distributed the stolen data on the Internet, information that included names, addresses, phone numbers and e-mail addresses for tens of thousands of Sony customers.
LulzSec is known for its affiliation with the international group of hackers known as “Anonymous,” which is a loose collective of computer hackers and others around the world who conduct cyber attacks and disseminate confidential information stolen from victims’ computers.
Another member of LulzSec, Raynaldo Rivera, known by the online moniker “neuron,” of Chandler, Arizona, 20, pleaded guilty last October to conspiracy charges in connection with his participation in the Sony Pictures attack. Rivera is currently scheduled to be sentenced by Judge Kronstadt on May 16.
This investigation into the attack on Sony Pictures’ computer systems was conducted by the Electronic Crimes Task Force (ECTF) in Los Angeles. The ECTF is comprised of agents and officers from the FBI, the United States Secret Service, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the United States Attorney’s Office, the Los Angeles County District Attorney’s Office and the California Highway Patrol.
Release No. 13-054
Matthews SentencedRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that BRENDA MATTHEWS, age 59, was sentenced to 12 months and 1 day imprisonment for making false claims to an agency of the United States and two counts of identity theft. The Court also ordered restitution in the amount of $117,656.
MATTHEWS’ sentence this morning follows her guilty plea to the charges at her rearraignment on October 25, 2012. She admitted that, in July and August 2009, she filed 20 tax returns for tax year 2008 fraudulently claiming refunds based on First Time Homebuyer Credits. The returns prepared by MATTHEWS listed the names and Social Security numbers of others who had allegedly purchased homes, when in fact, the homes had not been purchased. In some instances, MATTHEWS used the Social Security numbers of people who did not know their identities were being used to file fraudulent tax returns. In all, the fraudulent returns, which reported the taxpayers as having no income, generated refunds in excess of $117,656.
“IRS Criminal Investigation continues to aggressively pursue the perpetrators of identity theft schemes,” stated Damon Rowe, Acting Special Agent-in-Charge, IRS-Criminal Investigations. “Identity theft continues to be a top priority for IRS.”
The investigation of this matter was conducted by the IRS-Criminal Investigations. The case was prosecuted by Assistant United States Attorney Susan C. Amundson.
Marion Man Charged with Evading Nearly $900,000 in TaxesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced the filing of an information charging Scott A. Fischer, age 54, of Marion, Ohio, with tax evasion for calendar years 2006 through 2010.
The charges allege that Fischer evaded a total of $899,781.00 in federal income tax.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service Criminal Investigation Division. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces Charges Against Antonio Indjai, Chief of the Guinea-Bissau Armed Forces, for Conspiring to Sell Surface-To-Air Missiles to A Foreign Terrorist Organization and Narco-Terrorism ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the United States Drug Enforcement Administration (“DEA”), announced today the unsealing of charges against ANTONIO INDJAI, the head of the Guinea-Bissau Armed Forces, for conspiring to provide aid to the Fuerzas Armadas Revolucionarios de Colombia (the “FARC”), a South American paramilitary group long designated by the United States as a Foreign Terrorist Organization (“FTO”), by storing FARC-owned cocaine in West Africa; conspiring to sell weapons, including surface-to-air missiles to be used to protect FARC cocaine processing operations in Colombia against U.S. military forces; and conspiring to import narcotics into the United States; INDJAI has been the subject of a United Nations travel ban since May 2012 as a result of his alleged participation in the April 2012 coup d'état in Guinea-Bissau.
INDJAI’s co-conspirators Manuel Mamadi Mane and Saliu Sisse were apprehended in a West African Country on April 4, 2013, and thereafter transferred to the custody of the United States and transported to the Southern District of New York for prosecution. Co-conspirators Rafael Antonio Garavito-Garcia and Gustavo Perez-Garcia were apprehended in Colombia on April 5, pursuant to Interpol Red Notices, and remain in Colombia pending extradition to the United States. The case is assigned to U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, from his position atop the Guinea-Bissau military, Antonio Indjai conspired to use his power and authority to be a middleman and his country to be a way-station for people he believed to be terrorists and narco-traffickers so they could store, and ultimately transport narcotics to the United States, and procure surface-to-air missiles and other military-grade hardware to be used against United States troops. As with so many allegedly corrupt officials, he sold himself and use of his country for a price. The charges against Indjai, together with the recent arrests of his co-conspirators, have dismantled a network of alleged narco-terrorists, and once again showcased the extraordinary work of our DEA partners who, at great personal risk, travel across the globe to investigate and make arrests in these cases in order to protect the American people and American interests here and abroad.”
DEA Administrator Michele M. Leonhart said: “Today’s indictment reflects DEA’s commitment to securing our nation and protecting our citizens. These charges reveal how Indjai's sprawling drug and terror regime threatened the national security not only of his own country, but of countries across the globe. As the head of Guinea-Bissau's Armed Forces, Indjai had insider access to instruments of national power that made him an allegedly significant player in West Africa's dangerous drug trade. Partnering with individuals he believed to be part of a terrorist organization like the FARC served to expand Indjai's criminal activities and the damage he could cause. Due to our worldwide reach and unrelenting efforts, DEA and our partners took decisive action against this narco-terrorist and his network of facilitators."
According to the Indictment against INDJAI that was unsealed today and previously unsealed Indictments against his co-conspirators:
INDJAI became the head of the Guinea-Bissau armed forces in June of 2010. Beginning in the summer of 2012, he and his co-defendants communicated with confidential sources (the “CSs”) working with the DEA who purported to be representatives and/or associates of the FARC. The communications occurred by telephone, over e-mail, and in a series of audio-recorded and videotaped meetings over several months in Guinea-Bissau.
During meetings in Guinea-Bissau beginning in June 2012, and continuing through at least mid-November 2012, INDJAI, Mane, Sisse, Garavito-Garcia, and Perez-Garcia agreed to receive and store multi-ton shipments of FARC-owned cocaine in Guinea-Bissau. The defendants agreed to receive the cocaine off the coast of Guinea-Bissau, and to store the cocaine in storage houses there pending its eventual shipment to the United States, where it would be sold for the financial benefit of the FARC. The defendants further agreed that a portion of the cocaine would be used to pay Guinea-Bissau government officials, including INDJAI, for providing safe passage for the cocaine through Guinea-Bissau.
Also during those meetings, INDJAI, Mane, Sisse, and Garavito-Garcia agreed to arrange to purchase weapons for the FARC, including surface-to-air missiles, by importing them into Guinea-Bissau for the nominal use of the Guinea-Bissau military when in fact they intended to provide the weapons to the FARC.
For example, on June 30, 2012, during a recorded meeting in Guinea-Bissau with the CSs, Mane, Sisse, and Garavito-Garcia agreed to assist in the distribution of FARC cocaine by facilitating its shipment to Guinea-Bissau inside loads of military uniforms, and by establishing a front company in Guinea-Bissau to export the cocaine to the United States. In addition, Mane agreed to assist in obtaining weapons for the FARC by arranging a meeting with INDJAI. On July 2, 2012, at a recorded meeting with the CSs in Guinea-Bissau, INDJAI agreed to facilitate the shipment of cocaine to the United States through Guinea-Bissau and to procure weapons for the FARC, including surface-to-air missiles, knowing that the weapons would be used to combat United States forces operating in Colombia. During a recorded meeting in Guinea-Bissau with Mane, Sisse, Garavito-Garcia, and Perez-Garcia on November 13, 2012, a Guinea-Bissau military official advised one of the CSs that INDJAI would be ready to execute the weapons transaction once the FARC brought money to Guinea-Bissau, and that the anti-aircraft missiles to be sold to the FARC could be used against United States helicopters operating in Colombia.
INDJAI has been charged with one count of conspiracy to engage in narco-terrorism; one count of conspiracy to distribute five kilograms or more of cocaine, knowing or intending that the cocaine would be imported into the United States; one count of conspiracy to provide material support and resources to an FTO; and one count of conspiracy to acquire and transfer anti-aircraft missiles. Count One carries a mandatory minimum sentence of 20 years in prison and a maximum penalty of life in prison. Count Two carries a mandatory minimum sentence of 10 years in prison and a maximum penalty of life in prison. Count Three carries a maximum potential penalty of 15 years in prison. Count Four carries a mandatory minimum of 25 years in prison and a maximum potential penalty of life in prison.
The charges and investigation of these defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, the Special Operations Division and the Foreign-Deployed Advisory Support Team of the DEA, the DEA Lisbon Country Office, the DEA Bogota Country Office, and the U.S. Department of Justice Office of International Affairs.
This prosecution is being handled by the Office's Terrorism and International Narcotics Unit. Assistant United States Attorneys Aimee Hector and Glen Kopp are in charge of the prosecution.
The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Antonio Indjai S6 Indictment
Man Sentenced to 63 Months in Prison for Inmate Tax Fraud SchemeRead the Press Release
PANAMA CITY, FLORIDA – Michael William Joseph, III, 53, formerly an inmate in the Florida Department of Corrections was sentenced to 63 months in prison today for his involvement in an inmate tax fraud scheme and ordered to pay $37,196.27 in restitution to the Internal Revenue Service.
United States District Judge Richard Smoak sentenced Joseph to 63 months in prison based upon Joseph’s guilty plea to forty-one counts of violation of federal criminal laws which included: conspiracy to defraud the government with respect to claims, conspiracy to commit mail fraud, twenty-four counts of filing false claims against the government and fifteen counts of theft from the government. In addition, Judge Smoak also ordered that $29,514.91 in United States currency would be forfeited to the United States as proceeds of Joseph’s federal crimes. These funds included money that was seized by law enforcement from Joseph’s bank account, as well as an additional stash of cash found buried in the backyard of a Tampa home in June 2009.
The evidence showed that Joseph conspired with others to file eighty-one false claims for tax refunds against the government in the names of forty-one inmates incarcerated in Florida Department of Corrections from February 7, 2008, through July 10, 2012. Most of the false refunds were directed to a bank account under the control of Joseph or were sent in checks to the residence of Joseph’s mother.
United States Attorney Pamela Marsh stated, “The Department of Justice is committed to vigorously prosecuting those individuals and groups of individuals who steal the identities of other individuals and use those stolen identities to fraudulently obtain large amounts of money from the Government. We have intensified our efforts, along with our federal and state law enforcement partners, to identify and vigorously prosecute these stolen identity return fraud cases.”
“Today’s sentence reflects the seriousness with which tax refund fraud is taken by the courts” stated James D. Robnett, Special Agent in Charge of the IRS Criminal Investigation, Tampa Field Office. “Our office, in cooperation with the U.S. Attorney’s Office and our federal, state and local law enforcement partners, will continue to commit resources to combat tax fraud wherever it may occur. Through aggressive enforcement of the tax laws our office hopes to promote confidence in the tax system, proving that this type of crime will not be tolerated.”
Ms. Marsh expressed her grateful appreciation for the collaborative investigative efforts of IRS Criminal Investigation, the U.S. Postal Inspection Service, the Florida Department of Law Enforcement, the State Attorney’s Office for the 14th Judicial Circuit of Florida, and the Florida Department of Corrections. The case was prosecuted by Assistant United States Attorney Tiffany H. Eggers.
Man Indicted for Unlawful Possession of ExplosivesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Thomas Lee Stanton, 18, whose home address is listed as Lebanon, Illinois, was indicted by a federal grand jury today for unlawfully possessing destructive devices.
The indictment alleges that on April 17, 2013, Stanton possessed one or more destructive devices, including a “cricket” bomb, which is comprised of carbon dioxide (CO2) cartridges, fuses and explosive powder. If convicted, Stanton faces possible maximum penalties of 10 years in prison, a $250,000 fine, and 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
United States Attorney Wigginton praised the swift and jointly conducted investigation which teamed up not only his Office and St. Clair County State’s Attorney Brendan Kelly, but included investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Illinois State Police, the St. Clair County Sheriff’s Department, the O’Fallon Police Department, the Lebanon Police Department, the Illinois Secretary of State Police Bomb Squad, the Scott Air Force Base Explosive Ordnance Disposal K-9 Unit, and O’Fallon Township High School Personnel and Security Officers. “In the wake of other events around the country, I am pleased and gratified by the selfless and intense investigation which was brought to bear.” noted United States Attorney Wigginton.
The case is being prosecuted by Assistant United States Attorneys Liam Coonan and Ranley R. Killian.
Man Charged with Illegal Reentry After DeportationRead the Press Release
Ascencion Sandoval-Aparicio, a/k/a "Acension Sanjoval," 39, of Mexico, was charged today by indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 8, 2013, Sandovai-Aparicio, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about February 20, 1998, August 19, 2011, October 13, 2011, February 14,2012, May 18, 2012 and September 2, 2012.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations ("ERO") and is being prosecuted by Assistant United States Attorney Joseph J. Khan.
Click here to view the indictment
An Indictment 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, 215-861-8525Lutz Man Indicted on Drug Conspiracy and Sex Trafficking ChargesRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces the return by a federal grand jury of an indictment charging Andrew Blane Fields (62, Lutz) with conspiracy to possess with the intent to distribute controlled substances, namely Oxycodone, Dilaudid, and Morphine, three counts of sex trafficking by force, fraud, and coercion, and two counts of possession with intent to distribute controlled substances. If convicted on all counts, Fields faces a maximum penalty of life in federal prison.
According to the indictment, at least as early as 2008 through the end of 2012, Fields engaged in the sex trafficking of three different victims for commercial gain. Fields coerced and controlled the victims by, among other methods, supplying them with a large number of highly addictive prescription drugs on a daily basis. During the execution of a federal search warrant, law enforcement recovered thousands of prescription pills from Fields' residence. Fields was previously charged by criminal complaint on March 20, 2013.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with the assistance of the Clearwater Police Department and members of the Clearwater Area Human Trafficking Task Force. It will be prosecuted by Assistant United States Attorney Josephine W. Thomas and Trial Attorney William E. Nolan with the Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit.
Lebanon Man Charged in the Robbery of the Fulton Bank in CleonaRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Karree Isiah Pitts, the man allegedly responsible for the robbery at the Fulton Bank in Cleona was charged in an indictment.
According to United States Attorney Peter J. Smith, on February 27, 2013, the Fulton Bank located at 433 West Penn Avenue in Cleona, Pennsylvania was robbed and $2,790 was stolen from the bank. A federal grand jury in Harrisburg returned an indictment Wednesday charging Karree Isiah Pitts, age 22, of Lebanon, with bank robbery.
This case was investigated by the Federal Bureau of Investigation and the Cleona Police Department. Prosecution has been assigned to Assistant United States Attorney Daryl F. Bloom.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Lake Charles Doctor Pleads Guilty to Health Care FraudRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Dr. Lynn E. Foret, 63, of Lake Charles, La., pleaded guilty before U.S. District Court Judge Richard T. Haik to defrauding Medicare, Medicaid and private insurance companies out of close to $1 million.
According to the bill of information, from 2003 to 2009, Foret injected his patients’ knees with a steroid solution while falsely billing and receiving payments from Medicare, Medicaid and private insurance companies for a more costly drug called Hyalgan. During the time period outlined in the bill of information, he received reimbursements totaling $948,249.11. Foret is a Lake Charles medical doctor who specialized in orthopedic surgery since 1976. He closed his practice in December of 2012.Various types of steroids are often used to treat osteoarthritis of the knee. Hyalgan is another more costly type of medication that is used to treat osteoarthritis. It contains a natural substance called Hyaluronate, which is normally found in the fluid that lubricates and cushions knee joints and is injected directly into a patient’s knee to relieve inflammation.
Foret faces a maximum penalty of 10 years in prison, a $250,000 fine, restitution, and three years of supervised release for the count of heath care fraud. A sentencing date has not been set.
The Medicaid Fraud Control Unit (MFCU) of the Louisiana State Attorney General’s Office, FBI, U.S. Food and Drug Administration, and the Department of Health and Human Services - Office of Inspector General (OIG) conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the caseLaguna Niguel Man Pleads Guilty to Defrauding ebayRead the Press Release
SAN JOSE - Brian Andrew Dunning pleaded guilty in federal court in San Jose on April 15, 2013 to wire fraud, United States Attorney Melinda Haag announced.
In pleading guilty, Dunning admitted that, between approximately May 2006 and June 2007, he engaged in a scheme to defraud eBay through so-called “cookie stuffing.” According to the plea agreement, commissions paid to Dunning’s company, Kessler’s Flying Circus (KFC), which Dunning owned jointly with his brother, totaled approximately $5.2 million during that period from eBay’s domestic Affiliate Program.
According to the plea agreement, in approximately April 2005, Dunning and his brother formed KFC, through which they participated in the eBay Affiliate Program. The Affiliate Program was a means by which eBay worked with KFC and other affiliates to drive Internet traffic to eBay’s websites. Under the program, an affiliate was supposed to send visitors to eBay’s website by displaying an eBay advertisement, or link, on the affiliate’s website. If a visitor clicked on the eBay link or ad, he or she was redirected to eBay’s website. If that user subsequently conducted a “revenue action” on eBay’s website within a designated period of time, eBay paid the affiliate a commission for the referral.
Dunning admitted that he carried out his scheme by providing free applications at two of his websites that users could download and use on their own websites: ProfileMaps.info, which showed the physical location of visitors to a MySpace profile, and WhoLinked.com, which showed who was linking to the user’s website or blog. Both applications contained code Dunning had written which operated so that, when a user visited a website that had installed the application, the code would cause the user’s browser to receive a cookie with KFC’s ID number, even though the user did not click on an eBay ad or link, did not see any content from eBay’s website, and did not realize that his or her browser had been re-directed to eBay’s tracking server. As a result, KFC would be paid if that user subsequently conducted an eBay revenue action within a certain period of time.
Dunning, 47, of Laguna Niguel, California, was indicted by a federal Grand Jury on June 24, 2010, and charged with five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Under the plea agreement, Dunning pleaded guilty to a superseding information, filed on April 15, 2013, that alleged a separate violation of the same statute. In his plea agreement, Dunning admitted that he received payments for revenue actions for which he was not entitled to be compensated, but reserved the right to dispute how much of those payments were attributable to the cookie stuffing scheme.
An evidentiary hearing to determine the loss amount will be held on August 8, 2013, before United States District Judge Edward J. Davila, in San Jose. The maximum statutory penalty for a violation of 18 U.S.C. § 1343 is 20 years imprisonment and a fine of $250,000, or twice the gross gain or gross loss from the offense, whichever is greater, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
David R. Callaway and Kyle F. Waldinger are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Elise Etter, Rawaty Yim, and Elizabeth Garcia. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Kinloch, Missouri Fire Protection District Chief Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO -The Fire Chief for the Kinloch Fire Protection District, Darran Kelley, was arrested earlier today on warrants issued as a result of a federal grand jury indictment which was filed on Wednesday, April 17, 2013, charging Kelley with the unauthorized use of more than $140,000 of District funds from January 2007 to January 11, 2013. The indictment also charges Kelley with making a false statement relative to his receipt of Social Security disability payments. Kelley has been the District Fire Chief since 2002.
According to the indictment, the Kinloch Fire Protection District maintained a District banking account for the receipt and disbursement of District funds. From January 2007 through January 2013, the District received approximately $160,361 in tax revenues from St. Louis County, Missouri; the City of Kinloch distributed city funds to the District’s bank account for payroll and operations of the District. The indictment alleges that it was a part of Kelley’s scheme that on one or more occasions he made unauthorized cash withdrawals from the District’s bank account for his own personal use, including for the purchase of various personal items and for gambling at several casinos in the St. Louis area that were unrelated to the legitimate operations of the District. It was a further part of Kelley’s scheme that on one or more occasions he made unauthorized transfers of funds from the District’s bank account to pay for charges on his own personal Mastercard credit card, which were unrelated to the legitimate operations of the District.
In June 2010, the Federal Emergency Management Agency (FEMA) awarded the District a grant of $237,500 to cover 95% of the $250,000 total cost of a fire engine, based upon an application submitted by Kelley. The City of Kinloch also distributed $15,000 of city funds to the District to cover the District's responsibility to pay 5% of the cost of the fire engine. The indictment alleges that some of these funds were later used by Kelley to purchase personal items and for gambling at several casinos. The indictment alleges that during April 2011, it was widely reported by the St. Louis area media that the District was unable to pay the insurance premium due on the newly purchased fire engine. The premium then due was reported to be approximately $2,322. Numerous private citizens saw the media reports and made donations to the District to pay for the insurance premium, which donations totaled well in excess of the premium then due. Kelley paid the insurer $2,322, and the remaining donated funds were retained in the District's bank account and later used by Kelley to purchase personal items and for gambling at several area casinos. While Kelley engaged in the unauthorized use of District funds, there were substantial outstanding bills from AmerenUE for electric service, American Water for water service, to AT&T for telephone and communications services and to North Central County Fire Alarm System for dispatch services, radios and pagers. Many of these bills went unpaid as a result of his alleged criminal conduct and some of the necessary services were reduced or cut off due to non-payment.
The indictment also alleges that beginning on August 15, 2000, Kelley began receiving monthly disability benefit payments through the Social Security Administration pursuant to his application for benefits relative to a personal medical condition. Following his initial application, and in order for the Social Security Administration to determine his continued eligibility for disability benefits, he was required to immediately report any work and income, and to periodically verify his continued disability and report any work on Continuing Disability Review Reports. The indictment alleges that Kelley failed to truthfully report his work for the Kinloch Fire Protection District, and his income from that work to the Social Security Administration. The indictment states that on July 26, 2011, Kelley made a false statement on his Continuing Disability Review Report by stating that he had not worked since April 1, 2006, the date of his last medical disability decision, when in fact, he had been working as the paid Chief of the Kinloch Fire Protection District during that period of time. Kelley was paid a salary of approximately $640 every two weeks until December, 2011.
DARRAN KELLEY, Ferguson, MO, was indicted by a federal grand jury on three felony counts of wire fraud, one felony count of federal program theft and one felony count of making false statements.
If convicted, each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; federal program theft carries a maximum of 10 years prison and/or fines up to $250,000; and false statement carries a maximum of five years prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis County Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Jury Finds Brooklyn Park Man Guilty of Role in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a 41-year-old Brooklyn Park man guilty of participating in a large, multi-state, identity theft ring. Following an eight-day trial, the jury convicted Gordon Lamarr Moore of one count of conspiracy to commit bank fraud and two counts of aggravated identity theft. Moore, who fled during trial, was indicted along with four others on November 14, 2012. He remains a fugitive. If you have any information regarding Moore’s whereabouts, contact the United States Marshals Service at (612) 664-5900 or [email protected].
According to the evidence presented at trial, members of the conspiracy obtained the personal information of other people through mail theft, vehicle break-ins, and burglaries, as well as from co-conspirators who stole the information from their places of employment. That information was then used to create false identification documents, such as driver’s licenses and identification cards, along with counterfeit checks. Co-conspirators used the counterfeit checks and fraudulent identification to purchase expensive items and gift cards at retail stores. They later returned the items for cash, which was divided among those involved in the criminal activity. Co-conspirators also deposited counterfeit checks into the bank accounts of unknowing individuals, only to withdraw the funds from those same accounts a short time later. To avoid detection, co-conspirators only accessed each bank account a few times before moving on to another.
Earlier this month, two co-defendants, Shanell Collette Brewer and Samantha Catrina House, pleaded guilty to participating in the scheme. In February 2013, two others, Jerome Davis, Jr., and Jemall Ronta Williams, also pleaded guilty to the same crime.
The newly convicted defendants face a maximum potential penalty of 30 years in federal prison for conspiracy to commit bank fraud and a mandatory minimum consecutive penalty of two years in prison on each count of identity theft. U.S. District Court Judge Paul A. Magnuson will determine their actual sentences at a future hearing, not yet scheduled.
In a related case, following a jury trial in September 2012, four other men were convicted of crimes connected to this same identity theft ring. They now await sentencing. Twenty-four additional co-conspirators have entered guilty pleas for their participation in the ring. They too await sentencing.
These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They are being prosecuted by Assistant U.S. Attorneys Karen B. Schommer and Michelle E. Jones.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.
Joseph C. Delay Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
JOSEPH C. DELAY, 42, of Metairie, Louisiana, was sentenced today to being a felon in possession of a firearm, announced U. S. Attorney Dana J. Boente. U.S. District Court Judge Jane Triche Milazzo sentenced DELAY to 5 years incarceration and 3 years supervised release.
DELAY was charged in May 2012 in an Indictment with Being a Felon in Possession of a Firearm and with Failure to Register as a Sex Offender.
Documents filed in federal court indicate that on March 9, 2012, at 2:51 a.m., a Jefferson Parish Sheriff’s deputy pulled over the defendant for operating a motor vehicle without a license plate. The defendant drove away after the deputy exited his vehicle and approached the defendant’s vehicle. A high-speed chase ensued and other deputies located the vehicle within minutes. The defendant was no longer in the vehicle, however, a loaded .380 caliber Lorcin semi-automatic pistol bearing Serial Number 462237 was left on the driver’s side floorboard. In addition, the defendant left his cellular telephone directly outside of the vehicle.
Court records show that in1995, DELAY was convicted in Criminal District Court for the Parish of Orleans of Forcible Rape, Armed Robbery, and Aggravated Burglary. In addition, DELAY was convicted in 2004, in the 24th Judicial District Court for the Parish of Jefferson of possession of a Schedule II controlled substance, and in 2010, in the 24th Judicial District Court for the Parish of Jefferson, DELAY was convicted of Failure to Register as a Sex Offender.
This case was investigated by the U.S. Marshal’s Service, Bureau of Alcohol, Tobacco and Firearms, and the Jefferson Parish Sheriff’s Office.
The prosecution of this case was handled by Assistant U. S. Attorney Brian M. Klebba.
Jesse Castro Babauta Sentenced for Failure to Register as A Sex OffenderRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced today that defendant JESSE CASTRO BABAUTA, age 45, was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to seven (7) months imprisonment for the offense of Failure to Register as a Sex Offender. After defendant serves his term of imprisonment, he will be placed on supervised release for ten (10) years and required to perform community service, pay a $1,000 fine, comply with a Sex Offender Treatment Assessment, and submit to a search of his person, residence and belongings, to include any computers and data in his possession.
In 1995, JESSE CASTRO BABAUTA was convicted of three counts of First Degree Criminal Sexual Conduct (As First Degree Felonies) in the Superior Court of Guam. As a result of these convictions, he is required under federal and local law to register with the Guam Sex Offender Registry at the Superior Court of Guam every 90 days for his entire life. Defendant BABAUTA failed to register or update his information with the Guam Sex Offender Registry between the dates of August 2011 through October 2012. As a result of failing to register, he was considered non-compliant and his name and photograph were published on the Guam Sex Offender Registry at www.guamcourts.org/sor/. He was non-compliant until federal Marshals with the United States Marshals Service (USMS) arrested him for the instant offense.
U.S. Attorney Limtiaco states, “The purpose of the Guam Sex Offender Registry is to provide important notice to island residents that sex offenders are living, working and attending schools in our community. The Sex Offender Registry is a nationwide network that exists to increase public safety and community awareness. Defendants who have committed sexually violent offenses, criminal sex conduct offenses, or criminal offenses involving minor victims must all register and maintain their registrations with the Guam Sex Offender Registry. Defendants who refuse to register or update their information will face federal punishment. The United States Attorney’s Office is committed to the aggressive prosecution of non-complaint sex offenders.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute crimes against children, to include defendants who produce, receive and distribute child pornography, as well as defendants who fail to register with the Sex Offender Registry.
Assistant U.S. Attorney Rosetta San Nicolas prosecuted the case for the United States. U.S. Attorney Limtiaco commends the investigative efforts of Sr. Inspector John Untalan of the United States Marshals Service as well as Sr. Probation Officer Ruben Payumo with the Superior Court of Guam.
Jacksonville Chiropractor Indicted in Staged Car Accident SchemeRead the Press Release
Jacksonville, Florida - United States Attorney Robert E. O'Neill announces the return by the grand jury of a superseding indictment charging Jacksonville chiropractor Richie Cabigting (35), along with Haidar Kazim (28), Kassem Kazim (31) and Todd Jackson (26), all of Jacksonville, with conspiracy to commit mail fraud and mail fraud, in connection with a staged car accident scheme. If convicted, each faces a maximum penalty of 10 years in federal prison on each count. The indictment also notifies the individuals that the United States intends to forfeit $193,002.62, which was seized from a Compass Bank account and is alleged to be traceable to proceeds of the offense.
According to the indictment, Haidar Kazim recruited individuals to participate in staged and fraudulent car accidents. Haidar Kazim and Kassem Kazim instructed the participants on how to conduct the crashes and what to tell responding police officers. Cabigting, a chiropractor and owner of ChiroMed Plus, LLC, located in Jacksonville, provided money to Haidar Kazim to pay the “at fault” drivers, including Todd Jackson, in the staged car accidents. The staged accident participants were then allegedly "treated” at ChiroMed Plus, LLC, by Cabigting, who knew that the participants did not need treatment. Insurance companies were then fraudulently billed for services.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Department of Financial Services. It will be prosecuted by Assistant United States Attorney Julie Hackenberry Savell.
Illegal Sports Bookmaker Sentenced for Conspiring to Commit Sports BriberyRead the Press Release
United States Attorney Laura E. Duffy announced that Richard Francis Garmo was sentenced today in federal court in San Diego by the Honorable Anthony J. Battaglia to serve 24 months in custody, followed by three years supervised release, for his role in a criminal conspiracy. Garmo is the eighth and final defendant to be sentenced in the FBI investigation known as “Operation Hook Shot.”
In April 2011, Garmo and others were charged in an indictment for illegally enriching themselves from the operation of an illegal sports gambling business and the distribution of marijuana. The indictment also charged that by using proceeds from those crimes, the conspiracy influenced the outcome of basketball games at the University of San Diego (USD) during the 2009-2010 season, and then attempted to recruit players to do the same during the 2010-2011 season.
Garmo pleaded guilty to the indictment in August 2012. According to court documents and admissions made by Garmo and his co-defendants, the conspiracy bribed co-defendant Brandon Johnson to influence the outcome of basketball games during the 2009-2010 season while Johnson was a member of USD’s basketball team. Garmo and his co-conspirators then profited by placing bets at Las Vegas casinos on games Johnson influenced. Based on admissions by co-defendant Steve Goria, the conspiracy profited in excess of $120,000 from their sports bribery scheme. Johnson was sentenced to 6 months imprisonment in March 2013 for his role. Thaddeus Brown, a former USD assistant coach and the co-conspirator who recruited Johnson into the conspiracy, was sentenced to 12 months imprisonment in April 2013.
In addition to the 2009-2010 season, the conspiracy attempted to recruit current college basketball players at USD and elsewhere to influence the outcome of basketball games for bribe money during the 2010-2011 season as well. One particular recruiting attempt of a USD player in February 2011 took place at a Pacific Beach convenience store owned and operated by Garmo. At the meeting, the USD player was provided thousands of dollars cash as a bribe, which he later returned after deciding not to accept the bribe.
Judge Battaglia ordered the defendant to report on July 5, 2013 to begin serving his sentence.
DEFENDANT Criminal Case No. 11CR1345-AJB Richard Francis Garmo SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371 - Conspiracy
INVESTIGATING AGENCYFederal Bureau of Investigation
Hazleton Man Pleads Guilty to $150,000 FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph M. Yesvetz, age 57, of Hazleton, Pennsylvania, pled guilty in federal court today in Scranton before U.S. District Judge Robert D. Mariani to making a false claim for benefits under the Department of Labor’s Energy Employees Occupational Illness Compensation Program (EEOICP).
According to United States Attorney Peter J. Smith, EEOICP is meant to compensate individuals who suffer work-related health conditions due to exposure to toxic substances in the work place. Yesvetz filed a claim on behalf of his father who died in 2001 after working at a beryllium plant and who allegedly suffered from chronic beryllium disease. Yesvetz admitted that he lied on the claim form by failing to report his prior conviction in 2008 for mail fraud in connection with his receipt of over $88,000 in Pennsylvania state workers’ compensation benefits meant for his deceased father. Yesvetz received $150,000 in April 2012 as a result of his false claim under the EEOICP.
The case was investigated by the Department of Labor Inspector General’s Office and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Fourteen Arrested on Federal Methamphetamine Charges in Tennessee and North GeorgiaRead the Press Release
CHATTANOOGA, Tenn.--A total of 14 individuals from Eastern Tennessee, Northern Georgia and Western North Carolina have been arrested for various violations of federal drug and firearms laws. All are alleged to be part of a large methamphetamine trafficking organization operating in Tennessee and Georgia. A list of charges and potential penalties for these individuals is attached to this release.
On Apr. 16, 2013, seven of these individuals had initial appearances before U.S. Magistrate Judge Susan K. Lee on charges in a second superseding indictment. Anthony Long, 41, of Chatsworth, Ga.; Sarah McElhannon, 44, of Copperhill, Tenn.; Paula Price, 41, Jeremy Gamble, 42, Randy Greene, 48, Paul Gribble, 48, all of Turtletown, Tenn.; and Tracy Mason, 48, of McCaysville, Ga., all appeared for the first time. Three others including: Jose Manuel Juarez-Gonzalez, 37, of Ellenwood, Ga.; Hector De La Torre, 50, of Atlanta, Ga.; and Robin Welch, 42, of Copperhill, Tenn., who had previously been arraigned on a superseding indictment, also appeared before U.S. Magistrate Judge Lee to be arraigned on charges in the second superseding indictment.
Four individuals are also in custody including: Corey Welch, 39, of Copperhill, Tenn.; Dennis Glover, 60, of Ranger, Ga.; Melinda Adams, 24, of McCaysville, Ga., and Mitchell Hughes, 38, of Farner, Tenn. They will be arraigned in the near future.
Trial has been set for June 25, 2013, in U.S. District Court in Chattanooga.
Other arrests are pending and their names, charges and potential penalties will be released upon their initial appearance before a U.S. Magistrate Judge.
The investigation leading to the indictment and subsequent arrests was conducted by agents of the U.S. Department of Homeland Security, Bureau of Alcohol, Tobacco, Firearms and Explosives, and 10th Judicial District Drug Task Force. Assistant U.S. Attorney Terra Bay will represent the United States at trial.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
(Download Charges and Penalties Sheet)
Former Tuscaloosa Police Sergeant Pleads Guilty to Civil Rights Violation for Sexually Assaulting a WomanRead the Press Release
Jason Glenn Thomas, 34, a former sergeant with the city of Tuscaloosa, Ala., Police Department, pleaded guilty today to a criminal civil rights charge for using his authority as a law enforcement officer to sexually assault a woman.
According to court documents filed in connection with his guilty plea, Thomas admitted that while on duty shortly after midnight on March 27, 2011, he stopped and detained a female pedestrian without placing her under arrest. Thomas then transported the woman in his department issued patrol vehicle to a remote area and sexually assaulted her.
“This former officer did the unimaginable when he used his police powers to sexually assault this victim,” said Roy L. Austin, Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who abuse their position and authority to harm those individuals whom they have sworn to protect.”
“Most police officers work diligently every day to protect the citizens,” said U.S. Attorney for the Northern District of Alabama Joyce White Vance. “A community must be able to trust its police officers. My office is committed to prosecuting any officers who abuse the authority of the badge to commit a crime. This abuse of the public’s trust will not be permitted.”
“Mr. Thomas dishonored his badge and his fellow officers when he violated the civil rights of a female pedestrian while on duty, in uniform and in a marked patrol car,” said FBI Special Agent in Charge of the FBI Birmingham, Ala., Field Office Richard D. Schwein Jr. “Citizens have a right and should expect ethical and proper treatment from all law enforcement officers and we, as civil servants, must never forget that we have sworn an oath to serve and protect them. The public can be assured the FBI will continue to aggressively pursue those rogue officers who violate that trust.”
Thomas faces a maximum sentence of 10 years in prison and a fine of $250,000. Sentencing is scheduled for July 18, 2013, before U.S. District Judge C. Lynwood Smith.
This case was investigated by the Tuscaloosa resident agency of the FBI’s Birmingham Field Office, and was prosecuted by Trial Attorney D.W. Tunnage of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney George Martin for the Northern District of Alabama.
Former St. Marys Man Pleads Guilty to Embezzling over $422,000 from the Elk County Humane SocietyRead the Press Release
ERIE, Pa. - A former resident of St. Marys, Pennsylvania, pleaded guilty in federal court to charges of wire fraud and money laundering, United States Attorney David J. Hickton announced today.
Richard Danz, 48, pleaded guilty to three counts before United States District Judge Sean J. McLaughlin.
In connection with the guilty plea, the court was advised that Danz was the financial advisor/accountant for the Elk County Humane Society. From in and around September 2008 to in and around June 2012, Danz embezzled $422,017.81 from the Elk County Humane Society and another individual for his own personal use.
Judge McLaughlin scheduled sentencing for September 10, 2013 at 1:30 p.m. The law provides for a total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of St. Marys, Pennsylvania, Police Department conducted the investigation that led to the prosecution of Danz.
Former NYPD Officer Sentenced in Manhattan Federal Court to 46 Months in Prison for Conspiring to Distribute Firearms and Stolen GoodsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALI OKLU, a former New York City Police Department (“NYPD”) Officer, was sentenced today to 46 months in prison for participating in a scheme to illegally transport firearms, including M-16 rifles and handguns, and stolen goods across state lines. OKLU was sentenced by U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Preet Bharara said: “Ali Oklu betrayed the NYPD and the fine men and women who serve there so honorably, even going so far as to conspire to bring firearms into New York where his brother and sister officers – as far as he knew – might have been potentially in the firing line. With his sentence today, he will now be punished for his crimes.”
According to the court filings and statements made in court:
From September 2010 to October 2011, OKLU participated in the transportation of firearms and what he believed were stolen goods across state lines. He was an active duty NYPD Officer at the time he committed the offenses. The firearms OKLU helped transport included three M-16 rifles, one shotgun, and 16 handguns, the majority of which had been defaced to remove or alter the serial numbers, and all of which had been rendered inoperable. The goods he helped transport, and that he thought were stolen, included 12 slot machines and thousands of cartons of cigarettes, as well as various counterfeit merchandise. In total, the goods that OKLU and his co-conspirators illegally transported carried a street value of approximately $1 million.
OKLU was recruited to join the conspiracy in early October 2010 by its leader and organizer, and his fellow NYPD Officer, William Masso. The trips in which OKLU participated included two trips to transport purportedly stolen slot machines from Atlantic City to New York; multiple trips to transport hundreds of cases of purportedly stolen cigarettes from New Jersey to New York; a trip to Virginia to take part in the purported theft of hundreds of cases of cigarettes from trucks parked outside a warehouse; and the final trip during which 20 firearms, many of which were defaced, and all of which were rendered inoperable, were transported interstate. In total, OKLU was paid $35,000 for his role in the transport of the firearms and purportedly stolen goods.
OKLU specifically discussed with his co-conspirators using their law enforcement credentials and applying their law enforcement expertise in preparing for and carrying out these schemes. For example, in a meeting in March 2011, Masso explained that they should carry their law enforcement badges during the operation and, if stopped, say they were police officers working off-duty to deliver items that had been purchased at an auction. The group also discussed using their specialized knowledge as law enforcement officers in determining the ideal vehicles to rent to transport the goods. OKLU specifically recommended that the group not travel together in the rental vehicles they used to transport the purportedly stolen goods in order to avoid raising the suspicion of law enforcement. During his guilty plea, OKLU admitted that he had knowingly transported what he believed were stolen cigarettes, slot machines, and other merchandise across state lines and had willfully transported firearms across state lines.
In addition to the prison term, Judge Pauley sentenced OKLU, 36, of Sunnyside, New York, to three years of supervised release and ordered him to pay a $7,500 fine and a $200 special assessment fee. Judge Pauley also imposed on OKLU an agreed upon forfeiture amount of $35,000 representing his share of the crime proceeds. Pursuant to OKLU's guilty plea, OKLU relinquished his interests in guns seized from him at the time of his arrest.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Internal Affairs Bureau of the NYPD.
This prosecution is being handled by the Office’s Public Corruption and Complex Frauds Units. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecutions.
Former Los Lunas Receptionist Sentenced to Forty-Two Months in Federal Prison for Bank Fraud and Identity Theft ConvictionRead the Press Release
ALBUQUERQUE – Sandra Rivas, 36, of Los Lunas, N.M., was sentenced earlier today to 42 months in federal prison followed by three years of supervised release for her conviction on bank fraud and aggravated identity theft charges. Rivas also was ordered to pay $14,022.47 to the victims of her criminal conduct. Rivas’ sentencing was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Roy Melnick of the Los Lunas Police Department.
Rivas was indicted in May 2012, and charged with 11 counts of bank fraud, 28 counts of aggravated identity theft, 18 counts of wire fraud, and one count of access device fraud. According to the indictment, between March 2011 and July 2011, Rivas engaged in a pattern of criminal conduct while employed as a receptionist by a Valencia County business. In her capacity as the receptionist, Rivas was responsible for accepting payments to the business from clients in the form of cash, checks and credit cards. Rivas was charged with abusing her position by altering the payee information on checks payable to her employer and depositing the altered checks into her personal bank account; using the names, addresses, telephone numbers and bank account numbers of her employer’s clients to commit criminal offenses; and making fraudulent online purchases by using the credit card information belonging to her employer’s clients.
In Nov. 2012, Rivas pleaded guilty to Counts 1, 12 and 40 of the indictment, charging her with a bank fraud charge and two aggravated identity fraud charges under a plea agreement with the U.S. Attorney’s Office. In entering her guilty plea, Rivas admitted that, while employed as a receptionist, she altered 11 checks payable to her employer by adding her name as payee and depositing the checks in her own bank account. Rivas also admitted using the names and credit card numbers of her employer and her employer’s clients at least 19 times to make fraudulent online purchases for her own benefit.
Rivas is required to surrender to a federal correctional institution to be designated by the U.S. Bureau of Prisons within 60 days to begin serving her prison sentence. As required by the plea agreement, the remaining counts in the indictment were dismissed after Rivas was sentenced.
This case was investigated by the Albuquerque office of HSI and the Los Lunas Police Department and was prosecuted by Assistant U.S. Attorney Jeremy Pena.
Former IRS Employee Sentenced to Prison for Falsely Certifying the Number of Hours He WorkedRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced former IRS employee Antonio Keith Willabus, age 47, of Laurel, Maryland today to four months in prison, followed by three years of supervised release, for falsely certifying on his time and attendance records that he worked 353.1 hours in 2012 when in fact he had not. Judge Russell also ordered Willabus to serve 400 hours of community service and to pay restitution of $24,427.45.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Robert Geary of the Treasury Inspector General for Tax Administration.
According to his plea agreement, Willabus was a full time management and program analyst with the information technology service of the IRS. His office was located in New Carrollton, Maryland. During part of 2012, Willabus was permitted to work from home on Mondays and Tuesdays.In January 2012, the Treasury Inspector General for Tax Administration(TIGTA) began investigating Willabus’ time and attendance. The personal recording card Willabus was required to use to record his entry and exit at his office showed that Willabus rarely spent more than a few hours in the office on the days he was supposed to be there. Surveillance video of the building lobby showed that Willabus’ entries and exits were infrequent. People in adjacent offices rarely ever saw Willabus. His supervisors and coworkers frequently could not find Willabus, and were frustrated and perplexed when he did not respond to their emails during working hours.
On Monday and Tuesday of May 7 and 8, 2012, when Willabus was supposed to be working from home, TIGTA agents observed Willabus leave his house at 8:15 a.m. and then spend the day driving to locations in Baltimore. Agents believed Willabus was preparing to set up a bar business in Baltimore. He was seen moving a freezer from his truck into a bar building. Willabus did not return home or go into his office during his regular working hours on either day. On May 11, 2012, he entered data into his office time and attendance system claiming that he worked full days on May 7 and 8.
Cell site records from January through May 8, 2012 showed that Willabus frequently made calls on his cell phone from locations other than his home or office during the hours that he was supposed to be working. For work days between January 13 and June 8, 2012, Willabus falsely claimed to be working 353.1 hours that he did not actually work, for which he received a salary of $24,427.45.
United States Attorney Rod J. Rosenstein praised the Treasury Inspector General for Tax Administration for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting the case.Former Employee of New Jersey Timeshare Consulting Firm Admits Separate Mortgage and Unemployment ScamsRead the Press Release
CAMDEN, N.J. – A former employee in the New Jersey offices of the Vacation Ownership Group LLC admitted today to conspiring to defraud owners of timeshare properties by offering phony consulting services while also illegally collecting unemployment benefits, U.S. Attorney Paul J. Fishman announced.
Brian Corley, a/k/a “John Corley,” 28, of Little River, S.C., and formerly of Egg Harbor, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an Information charging him with one count of conspiracy to commit mail and wire fraud and one count of mail fraud.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing and Egg Harbor Township, N.J., and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
Corley started working at the VO Group in March 2010, where he was trained by a co-owner of the group, Adam Lacerda, to call customers using prepared scripts. Corley admitted that he would call customers and give them the false impression that he was working for a bank or lending institution, claiming he had the customer’s “complaint file” from a timeshare resort developer in front of him. Corley admitted that he regularly lied to customers in order to perpetrate the scam. Some of those customers then sent checks to the VO Group. The scheme caused more than $200,000 in losses.
Among other things, Corley admitted that he falsely told a customer that if the customer paid $25,000 to the VO Group and exchanged timeshare points, the group would eliminate the customer’s approximately $95,000 mortgage debt with a timeshare developer.
Corley also devised a separate scheme to defraud the New Jersey Department of Labor by collecting unemployment compensation benefits while working at the VO Group. He admitted to applying for and collecting unemployment compensation benefits to which he was not entitled. Court documents show Corley illegally received $16,936 as a result.
On Jan. 23, 2013, co-owners Adam Lacerda and Ashley Lacerda and other members of the VO Group were variously charged in a superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Additional members of the VO Group were also charged by criminal Complaint in April 2012. As for the Lacerdas and other defendants who have not been convicted in this case, the charges and allegations against them are merely accusations and they are considered innocent unless and until proven guilty.
Each of the two counts to which Corley pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for July 29, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation leading to the guilty plea. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: José L. Ongay Esq., CamdenCorley, Brian Superseding Information
Former Baltimore Police Officer Pleads Guilty to Improperly Accessing A Protected ComputerRead the Press Release
Baltimore, Maryland – Former Baltimore Police officer Keith Nowlin, age 39, of Laurel, Maryland pleaded guilty today to accessing a protected computer without authorization, related to his obtaining motor vehicle information for a drug dealer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, on June 18, 2010, Nowlin exchanged text messages with Marvin Mobley in which Mobley requested information on a specific motor vehicle. At the time, Nowlin was a Baltimore Police officer assigned to the Northeast District and Mobley, whose phone was part of a court-ordered wiretap, was under investigation for drug trafficking. In response to Mobley’s request, Nowlin responded “No problem anything for u.” Nowlin, who was not on duty at the time, requested the information through a Baltimore Police sergeant, who regularly makes such inquiries on behalf of officers for law enforcement purposes. The sergeant believed that Nowlin’s request was in furtherance of his police duties. Later that day, Nowlin and Mobley exchanged text messages and Nowlin provided Mobley with the identity of the vehicle’s owner. Nowlin improperly obtained the information using a protected computer network, which law enforcement agents are authorized to access for legitimate law enforcement purposes.
Nowlin faces a maximum sentence of one year in prison and a fine of $100,000. U.S. District Judge James K. Bredar scheduled sentencing for August 1, 2013 at 2:00 p.m.
Marvin Mobley previously pleaded guilty to possession with intent to distribute cocaine and crack cocaine and was sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who is prosecuting the case.
Florida Man Pleaded Guilty to Conspiracy Involving Iraqi CurrencyRead the Press Release
A Florida man pleaded guilty today in the U.S. District Court to crimes related to a scheme to defraud investors in the sale of Iraqi dinar currency and two non-existent hedge funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Acting Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office.
Rudolph M. Coenen, age 47, of Jacksonville, Florida, pleaded to one count of conspiracy to commit wire fraud, one count of wire fraud and five counts of money laundering before U.S. District Court Judge Jack Zouhary.
Coenen admitted to entering into a conspiracy with Bradford L. Huebner, Charles N. Emmenecker and Michael L. Teadt to defraud investors through the promotion and sale of Iraqi dinar currency and “placements” in two non-existent hedge funds. Coenen operated a business known as Bayshore Capital Investments to collect funds related to the non-existent hedge funds for himself, Huebner, Emmenecker and Teadt, according to court documents.
Huebner developed and provided prospective investors with professional literature and information regarding the non-existent hedge funds in order to make them appear legitimate. The marketing strategy developed by Huebner and Coenen included requiring prospective members in the non-existent hedge funds to join the BH Group and purchase a certain quantity of Iraqi dinar from Huebner, according to court documents.
Approximately $722,415.00 was solicited from prospective investors, according to court documents.
Coenen also admitted he was not a former Marine who served in the first Gulf War, he had not been wounded in combat and he was never awarded a Purple Heart. Coenen also admitted the defendants knowingly and intentionally made other false and misleading claims to investors in furtherance of the scheme to defraud, according to court documents.
Coenen and three others were indicted in September 2012. Charges against the other co-defendants are pending.
Assistant United States Attorneys Joseph R. Wilson and Gene Crawford are representing the United States in this case, which was investigated by special agents of IRS, Criminal Investigation.
Florida Man Indicted on Drug Conspiracy and Sex Trafficking ChargesRead the Press Release
A federal grand jury returned an indictment today charging Andrew Blane Fields, 62, of Lutz, Fla., with conspiracy to possess with the intent to distribute controlled substances, namely Oxycodone, Dilaudid and Morphine; three counts of sex trafficking by force, fraud and coercion; and two counts of possession with intent to distribute controlled substances. If convicted on all counts, Fields faces a maximum of life in federal prison.
According to allegations in the indictment and criminal complaint, at least as early as 2008 through the end of 2012, Fields engaged in the sex trafficking of three different victims for commercial gain, who are identified in the indictment by their initials. Fields coerced and controlled the victims by, among other methods, supplying them on a daily basis with a large number of highly addictive prescription drugs. During the execution of a federal search warrant, law enforcement recovered thousands of prescription pills from Fields’ residence. Fields was previously charged by criminal complaint on March 20, 2013.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent until proven guilty.
This case was investigated by the Department of Homeland Security – Homeland Security Investigations with the assistance of the Clearwater, Fla., Police Department and members of the Clearwater Area Human Trafficking Task Force. It will be prosecuted by Assistant U.S. Attorney Josephine W. Thomas and Trial Attorney William E. Nolan with the Department of Justice Civil Rights Division’s Human Trafficking Prosecution Unit.
Five More Charged in Mortgage Fraud Scheme Centered in West PhiladelphiaRead the Press Release
PHILADELPHIA - A 34-count indictment was unsealed today charging five people with various crimes stemming from their participation in a mortgage fraud scheme, between May 2004 and February 2009, that involved fraudulent documents, inflated purchase prices on loan documents for more than 100 Philadelphia properties, and resulted in more than $20 million in fraudulent loan proceeds. At the center of the alleged conspiracy is KREW Settlement Services, a Philadelphia real estate settlement company. The indictment charges Eric Sijohn Brown, 45, Roderick L. Foxworth, Sr., 56, who surrendered to authorities this morning, Cynthia Evette Brown, 51, who was arrested this morning, all of Philadelphia, Walter Alston Brown, Jr., 45, of Glen Allen, VA, and Kevin Joseph Franklin, 50, of Albany, GA, who were arrested this morning, with one count of conspiracy to commit loan and wire fraud. The indictment also seeks the criminal forfeiture of over $13.7 million from the defendants.
The indictment was announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, IRS Special Agent-in-Charge Akeia Conner, and HUD-OIG Special Agent-in-Charge Joseph W. Clarke.
According to the indictment, Eric Sijohn Brown - a general contractor - worked with other co-conspirators to identify distressed properties to purchase, typically in the West Philadelphia area. The scheme involved recruiting “straw buyers” whose credit history and personal information was used to purchase the properties, obtain mortgage loans, and take title to the properties, when, in reality, the properties were owned and controlled by the defendants. Mortgage loan applications were then prepared in the names of the straw buyers containing a host of false information, including false purchase prices, false employment and income information, and false statements about the straw buyers living in the properties. Mortgage brokers - including Roderick Foxworth, Walter Brown, and John William Polosky (charged separately in the Western District of Pennsylvania) - allegedly submitted the fraudulent loan applications to lenders to secure the loans for the buyers, knowing that the information was false. Cynthia Evette Brown is alleged to have falsely verified that many of the straw buyers worked for her employer, Unicco Service Company, when they did not. Kevin Joseph Franklin, a title agent, is alleged to have falsely prepared two deeds and settlement statements (referred to as "Form HUD-1") – one for the seller that showed the actual agreed-upon purchase price and a false one for the lender that showed the grossly inflated purchase price. Franklin is also alleged to have created false title insurance policies for the lenders.
The indictment alleges that after the loans funded, the seller was paid the agreed-upon purchase price, and the difference between the actual purchase price and the false purchase price quoted to the lender was shared with and distributed by Franklin to Eric Brown, Foxworth, Walter Brown, and Cynthia Brown, and many of these payments were not reflected on the HUD-1 forms.
In addition to the conspiracy count, Eric Brown is charged with two counts of FHA loan fraud, 14 counts of loan fraud, one count of aggravated identity theft, two counts of wire fraud, and three counts of tax evasion; Kevin Franklin is charged with two counts of FHA loan fraud, 15 counts of loan fraud, one count of aggravated identity theft, one count of wire fraud, and three counts of filing a false tax return; Roderick Foxworth is charged with five counts of loan fraud and two counts of filing a false tax return; Walter Brown, Jr. is charged with one count of FHA loan fraud, six counts of loan fraud, one count of wire fraud, and two counts of tax evasion; and Cynthia Brown is charged with two counts of FHA loan fraud, five counts of loan fraud, and two counts of wire fraud.In addition to the five defendants charged in this indictment, seven defendants have been charged by information including: Willie G. Manley Jr., Eric Ponder, Francine Shanique Cross, Gregory Christopher Thornton, Rashika J. Moon, Dontaya S. Devore, and Mark Murphy. According to the indictment, Manley created false income documents which were submitted to lenders; Ponder helped cause the submission of numerous fraudulent loan applications; Cross, a real estate agent and appraiser, helped secure mortgage loans with falsely-inflated appraisals; Thornton recruited a straw buyer and served as a straw buyer; Moon, Devore, and Murphy were straw buyers who allowed their identities to be used to facilitate the submission of knowingly false loan applications.
If convicted, the defendants face the following possible maximum sentences:
Eric Sijohn Brown faces a maximum possible sentence of 486 years imprisonment, including a mandatory 2 years imprisonment; 5 years supervised release; a $15,800,000 fine; and a $2,300 special assessment.
Kevin Joseph Franklin faces a maximum possible sentence of 490 years imprisonment; including a mandatory 2 years imprisonment; 5 years supervised release; a $16,550,000 fine; and $2,300 special assessment.
Roderick L. Foxworth, Sr., faces a maximum possible sentence of 161 years imprisonment; 5 years supervised release; a $5,450,000 fine; and a $800 special assessment.
Walter Alston Brown, Jr. faces a maximum possible sentence of 217 years imprisonment; 5 years supervised release; a $6,950,000 fine; and a $1,100 special assessment.
Cynthia Evette Brown faces a maximum possible sentence of 197 years imprisonment; 5 years supervised release; a $6,000,000 fine; and a $900 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
As alleged in the indictment, “KREW” is an acronym of the first names of Kevin Joseph Franklin, Roderick L. Foxworth, Sr., Eric Sijohn Brown, and Walter Alston Brown, Jr.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Fifth Sacred Heart Hospital Physician Arrested for Allegedly Illegally Prescribing Hydrocodone to A PatientRead the Press Release
CHICAGO — A Chicago physician associated with Sacred Heart Hospital on the city’s west side is facing federal charges for allegedly illegally prescribing hydrocodone to a hospital patient without having a valid license and registration to prescribe controlled substances. The defendant, Dr. KENNETH S. NAVE, allegedly illegally used the Drug Enforcement Administration registration number of another physician when he prescribed the hydrocodone last December.
Nave, 50, of Chicago, was arrested yesterday in Miami when he returned from a trip outside the country. He appeared today in Federal Court in Miami, was released, and ordered to appear at 3 p.m. tomorrow before U.S. Magistrate Judge Daniel G. Martin in U.S. District Court in Chicago. He was charged in a criminal complaint that was filed on Monday and unsealed upon his arrest.
Also today, the Illinois Department of Financial and Professional Regulation issued an order suspending Nave’s license to practice medicine.
On Tuesday, the owner and chief executive officer of Sacred Heart was arrested, along with the hospital’s chief financial officer and four physicians affiliated with the hospital on federal charges alleging a conspiracy to pay and receive kickbacks in exchange for referral of Medicare and Medicaid patients to the hospital. Federal agents also executed search and seizure warrants as part of an ongoing investigation of Medicare fraud allegations involving medically unnecessary emergency room admissions and in-patient tracheotomy procedures.
According to the complaint against Nave, who is the fifth physician to be charged, the investigation has revealed that between at least November 2012 and Feb. 25, 2013, he issued prescriptions to patients at Sacred Heart for controlled substances using the DEA registration issued to Physician I. On Dec. 7, 2012, Nave allegedly prescribed a particular patient 90 pills containing hydrocodone, a narcotic controlled substance, using Physician I’s registration number.
Nave’s Illinois license to practice medicine was suspended between 2002 and 2008. It was restored to probationary status on Dec. 20, 2012, but his state license to prescribe controlled substances was not restored until Feb. 26, 2013, according to the complaint affidavit. Separately, Nave was not registered with the DEA to prescribe controlled substances but an application for DEA registration that was submitted on March 6, 2013, is pending, the affidavit adds.
The affidavit cites records from the Centers for Medicare and Medicaid Services indicating that between Nov. 1, 2012, and Feb. 25, 2013, a person using Physician I’s name and DEA registration number issued approximately 101 prescriptions for controlled substances to approximately 33 patients at Sacred Heart Hospital.
The illegal prescription count carries a maximum penalty of four years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Nave’s arrest and charge were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Lamont Pugh, III, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General; and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorneys Terra Reynolds, Joel Hammerman and Ryan Hedges.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Federal Jury Convicts two Albuquerque Residents for Conspiracy to Transport Illegal AliensRead the Press Release
ALBUQUERQUE – This afternoon, a federal jury sitting in Albuquerque, N.M., convicted Maria Leticia Gutierrez de Lopez, 62, and Jesus Cabral Ramirez, 44, for conspiring to transport illegal aliens after a three-day trial. Cabral Ramirez also was convicted of transporting an illegal alien. The jury’s verdict was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Chief Patrol Agent Scott A. Luck, El Paso Sector, U.S. Border Patrol.
In May 2012, Gutierrez de Lopez and Cabral Ramirez, both legal permanent residents from Mexico who reside in Albuquerque, were charged in a three-count indictment. Count 1 of the indictment charged Gutierrez de Lopez and Cabral Ramirez with conspiring to transport illegal aliens in Nov. 2011, and Counts 2 and 3 each charged Cabral Ramirez with transporting an illegal alien.
Trial of the case began on April 16, 2013 and concluded this afternoon when the jury returned a guilty verdict as to both Gutierrez de Lopez and Cabral Ramirez on Count 1 of the indictment. The jury also returned a guilty verdict against Cabral Ramirez on Count 2, but acquitted him on Count 3.
The evidence at trial established that, in fall 2011, the FBI obtained information about Cabral Ramirez’s alien smuggling activities. The agents used the information to initiate a covert investigation into Cabral Ramirez during which they recorded telephone conversations relating to alien smuggling. Through the recorded conversations of Cabral Ramirez and others, the FBI learned that Gutierrez de Lopez was facilitating and organizing the transportation of an alien from El Paso to Denver, Colo. Cabral Ramirez knew Gutierrez de Lopez and agreed to transport the alien from Albuquerque to Denver. Gutierrez de Lopez arranged to receive the payment for transporting the alien through wire transfer at an Albuquerque-area WalMart and the transaction was recorded by the store’s surveillance camera. The investigation concluded on Nov. 22, 2011, when Gutierrez de Lopez met the person who transported the illegal alien from El Paso to Albuquerque at an Albuquerque-area restaurant and paid the transporter a $1200 fee. Cabral Ramirez took custody of the illegal alien and started driving toward Denver where he anticipated receiving an additional payment of $600, but was stopped by a state police officer who arrested the illegal alien.
At sentencing, Gutierrez de Lopez and Cabral Ramirez each face a maximum penalty of ten years in prison. They remain on conditions of release pending their sentencing hearings, which have yet to be scheduled.
The case was investigated by the Albuquerque office of the FBI and the U.S. Border Patrol with assistance from the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Norman Cairns and Special Assistant U.S. Attorney Raquel Ruiz-Velez.
Federal and State Officials Talk to Greenbrier, Mercer Students About Drugs and BullyingRead the Press Release
Officials also caution students about posting personal information on the Internet
CHARLESTON, W.Va. – United States Attorney Booth Goodwin, U.S. Marshal John Foster and West Virginia National Guard Major Gen. James Hoyer today met with faculty members and students from Western Greenbrier Middle School in Greenbrier County, W.Va. and Bluefield Middle School in Mercer County, W.Va., to talk about the dangers of illegal drug abuse, and especially prescription drugs. The three officials also spoke to students and faculty at both schools about safely using the Internet and social media, as well as school bullying.
Prescription drug abuse is one of the leading causes of crime in the Southern District of West Virginia and the leading cause of death among the nation’s teen population.
Greenbrier and Mercer Counties have been particularly hard-hit by the prescription drug crisis.
“As a prosecutor, I see hundreds of people every year who’ve thrown away their lives over drugs,” U.S. Attorney Booth Goodwin said. “If we can persuade even one of these kids to stay off that path, it’ll make all the difference in the world to that person’s life. It’s vitally important to get out the message about the tragic consequences of drug abuse.”
Goodwin continued, “My paramount goal as a prosecutor is to prevent crimes from happening in the first place. Educating students about positive choices is essential to making our communities safer.”
The officials also noted that roughly 60% of school bullies end up in prison by the time they reach their twenties.
U.S. Marshal John Foster, who spoke to students about the harmful effects of bullying, said, “The point that I continually re-emphasize to students is that choices in life matter.”
Foster continued, "A person being put down or bullied today could very well grow up to work in a position to help others later in life.”West Virginia National Guard Major Gen. Jim Hoyer said, “The students have to understand the importance of making wise choices. Making poor choices or getting involved in illegal drugs will most certainly inhibit success and opportunities.”
U.S. Attorney Goodwin, U.S. Marshal Foster and Maj. Gen. Hoyer have visited numerous schools in the 23-county Southern District of West Virginia over the past year as part of ongoing awareness initiative led by the U.S. Attorney’s Office to educate faculty and students about the dangers of prescription drug abuse and other issues.
Fairfield County Couple Charged with Smuggling Infant from Guatemala into the United StatesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that MARIA GONZALEZ, 42, of Stamford, and her husband, HENRY FERNANDO LOPEZ, 36, of Fairfield, have been charged in a federal criminal complaint with conspiring to smuggle an infant from Guatemala into the United States. GONZALEZ, who is a citizen of Argentina and a lawful permanent resident of the U.S., is also charged with passport fraud offenses.
GONZALEZ appeared on April 16 before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport and was released on a $100,000 bond. LOPEZ is currently being sought by law enforcement.
As alleged in the complaint, GONZALEZ traveled to Guatemala in March 2009 and met with a pregnant girl who was 14-years-old at that time. The birth mother agreed to give her child to GONZALEZ, and GONZALEZ agreed to pay for the birth mother’s delivery and some additional costs. The child was born on April 18, 2009, and the birth mother gave the child to GONZALEZ and LOPEZ.
The complaint further alleges that GONZALEZ visited the U.S. Embassy in Guatemala City after the child’s birth and attempted to acquire travel documents for the infant, but was unsuccessful as she was not able to provide the necessary medical documents demonstrating that she was the mother of the infant. GONZALEZ subsequently made contact with an individual in Guatemala, provided him with the child’s photo and date of birth and, in exchange for $6,000, received a fraudulent U.S. passport in the child’s name.
GONZALEZ and the child, using the fraudulent passport, entered the U.S. at the Port of San Ysidro in California on July 14, 2009.
GONZALEZ and LOPEZ are charged with bringing into the U.S. and harboring an alien child, an offense that carries a maximum term of imprisonment of 10 years, and conspiring to do so, an offense that carries a maximum term of imprisonment of five years. In addition, GONZALEZ is charged with misuse of a U.S. passport, and forgery or false use of a passport, offenses that carry a maximum term of imprisonment of 10 years on each count.
The child has been in the custody of the Connecticut Department of Children and Families since October 2012.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and the U.S. Department of State, Bureau of Diplomatic Security in Connecticut and its Regional Security Office at the U.S. Embassy in Guatemala City, Guatemala. The case is being prosecuted by Assistant United States Attorney Krishna R. Patel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Erie Man Pleads Guilty to Cocaine ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal drug laws, United States Attorney David J. Hickton announced today.
Sylvester Tate, 50, pleaded guilty to two counts before United States District Judge Sean J. McLaughlin.
In connection with the guilty plea, the court was advised that Tate possessed with intent to distribute and distributed approximately seven grams of cocaine on two occasions.
Judge McLaughlin scheduled sentencing for August 21, 2013 at 10:00 a.m. The law provides for a total sentence of 40 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Tate on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania State Police, the Erie Police Department, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation conducted the investigation that led to the prosecution of Tate.
Eagle Pass Businessman Indicted in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Eagle Pass, Texas, Federal Bureau of Investigation agents along with Texas Department Public Safety agents arrested 35-year-old Hipolito Amaya, owner of AM-ROD Construction based in Eagle Pass, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday and unsealed today, charges the Amaya with one count of paying a bribe to an agent of an organization receiving federal funds. The indictment alleges that in May 2011, Amaya submitted a $35,800 bid to Maverick County to construct a concrete sidewalk on Lago Vista in Precinct 4 of Maverick County. Maverick County issued him a $17,900 check to commence work and then a $17,900 check for the completion of the sidewalk. The indictment alleges that Amaya made cash payments to two Maverick County employees so that he could be paid in full for a project he never completed. Additionally, Amaya is alleged to have never constructed the sidewalk he was paid to build.
Upon conviction, Amaya faces up to ten years in federal prison.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Dr. David G. Millaud Sentenced for Defrauding the Small Business AdministrationRead the Press Release
DR. DAVID G. MILLAUD, age 52, a resident of New Orleans, Louisiana, was sentenced today by U.S. District Court Judge Eldon E. Fallon to three years probation, after previously pleading guilty to theft of government funds in connection with a disaster loan that he received from the Small Business Administration, announced U.S. Attorney Dana J. Boente. MILLAUD was further ordered to pay restitution in the amount $56,449.91 to the Small Business Administration.
According to court documents, MILLAUD submitted false invoices to the Small Business Administration in order to support his request for a loan disbursement. As a result of the false invoices, MILLAUD received a loan disbursement totaling $56,449.91in government funds to which he was not entitled.
The case was investigated by the U. S. Department of Housing and Urban Development, Office of the Inspector General, Small Business Administration, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
Devils Lake Man Sentenced for Assaulting a Bureau of Indian Affairs OfficerRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 18, 2013, Gavin Leesen Little of Fort Totten, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of assaulting, resisting, opposing and impeding a federal officer.
Little, 26, pleaded guilty on Jan. 24, 2013, to urinating on a Bureau of Indian Affairs Corrections Officer while the officer was transporting Little to the Devils Lake Regional Law Enforcement Center. The incident occurred in August of 2012 on the Spirit Lake Indian Reservation.
Judge Erickson sentenced Little to 20 months’ imprisonment to be followed by three years of supervised release. Little was ordered to pay a $100 special assessment to the Crime Victim’s Fund. In addition, Judge Erickson also sentenced Little to 14 months’ imprisonment for violating the terms of his supervised release. Little was on supervised release for a previous conviction on a charge of sexual abuse of a minor at the time of this incident. This 14-month revocation sentence is to be served concurrently with the 20-month assault sentence.
The case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Delaware Resident Charged with Illegal ReentryRead the Press Release
Jose Manuel Bernal-Castanera, a/k/a “Pepe Ayala Trevino,” 28, of New Castle, Delaware, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 12, 2012, Bernal-Castanera, a native and citizen of Mexico, was found in the United States after having been deported from the United States on or about December 16, 2008, December 26, 2008, December 2, 2011, March 1, 2012, and June 6, 2012.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Delaware Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – James Powell, 48, of Bridgeville, Del., pled guilty today to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Powell entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton is to sentence him on July 11, 2013. Powell faces a statutory maximum sentence of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and a maximum of 20 years and a minimum of 10 years of imprisonment for possession of child pornography, as well as fines of up to $250,000 on each count.
According to the government's evidence, on Sept. 10, 2012, Powell contacted an undercover officer with the FBI's Child Exploitation Task Force, who had entered a social network site frequented by individuals with a sexual interest in children. Over the next few days, the defendant engaged in online e-mail, instant message, and text message conversations with the undercover officer, whom the defendant believed was the father of an under-aged girl. During this period of time, Powell arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child. During the course of their communications, Powell also sent the undercover officers two images of child pornography.
On Sept. 12, 2012, Powell traveled from Delaware to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested. He has been in custody ever since.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-139Darryl Jasmin Sentenced for Distribution of Crack CocaineRead the Press Release
DARRYL JASMIN, age 28, a resident of Edgard, Louisiana, was sentenced today to 60 months incarceration by the U.S. District Court Judge Mary Ann Vial Lemmon, announced U.S. Attorney Dana J. Boente. Judge Lemmon ordered that JASMIN be placed on 4 years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
On January 10, 2013, JASMIN pled guilty to two counts of an indictment which charged him with distribution of 28 grams or more of crack cocaine on two separate dates, April 12, 2012 and April 20, 2012.
The case was investigated by the Drug Enforcement Administration, St. James Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney Sean Toomey.
Cristian Edgardo Mejia-diaz Sentenced for Illegal ReentryRead the Press Release
CRISTIAN EDGARDO MEJIA-DIAZ, age 26, a citizen of El Salvador, was sentenced today to approximately five months imprisonment by U. S. District Judge Nannette Jolivette Brown, announced U.S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Brown ordered that MEJIA-DIAZ be placed on one year of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on January 10, 2013, MEJIA-DIAZ pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found on November 13, 2012, in the United States, in Jefferson Parish, Louisiana without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations with the assistance of the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Commercial Marijuana Businesses in City of Santa Ana Targeted with Justice Department Warning Letters and Asset Forfeiture LawsuitsRead the Press Release
LOS ANGELES – In the latest of a series of federal enforcement actions against the commercial marijuana industry in California, federal authorities today moved against 63 illegal marijuana stores in the City of Santa Ana.
In federal court this morning, prosecutors filed three asset forfeiture lawsuits against properties in Santa Ana where a total of seven marijuana stores are currently operating. Authorities also executed federal search warrants at two of the stores involved in the asset forfeiture actions. Additionally, prosecutors sent warning letters to people associated with 56 other stores not involved in the forfeiture actions. The federal actions involve all known marijuana stores in the City of Santa Ana.
The federal actions in Santa Ana were done in cooperation with the Santa Ana Police Department and the Santa Ana City Attorney’s Office.
The three civil asset forfeiture complaints filed this morning in United States District Court target three properties in Santa Ana where seven marijuana stores are currently operating. The civil lawsuits state: “Under federal law, the distribution of marijuana (a Schedule I controlled substance under Title 21) is prohibited except under very limited circumstances not applicable here. The government is informed and believes that at all times relevant to this complaint, the operation of the [marijuana stores] on the defendant property was not (and is not) permitted under California law.”
The forfeiture lawsuits allege that the owners of the properties knowingly allowed commercial marijuana stores to operate. The buildings named in the asset forfeiture lawsuits currently house:
GLC (or the Green Love Collective, currently in a suite that formerly housed a store called Old Remedies) and The Dispensary Store, which are operating in a building at 1638 East 17th Street, a property owned by chiropractor Mark Burcaw, and previously have been the subject of administrative citations issued by the city;
SoCal Compassion, Club Meds and Well Greenz, which are located in a building at 1651 East Edinger, another building owned by Burcaw, and are illegal marijuana operations that prompted Santa Ana to file a civil lawsuit last year seeking injunctive relief against Burcaw and the three marijuana stores; and
J Pacific Life (which is located in a suite that formerly housed marijuana stores called Saddleback Meds and The Natural Alternative) and Healing OC, which operate out 1665 East 4th Street and have been the subject of numerous warnings and administrative citations from the City of Santa Ana.
In conjunction with the filing of the asset forfeiture complaints, the United States Attorney’s Office today mailed out letters to the property owners and operators of 56 marijuana stores that are either currently operating or were recently closed in Santa Ana. The warning letters give the operators and landlords 14 days to come into compliance with federal law or risk potential civil or criminal actions.
The Drug Enforcement Administration executed two federal search warrants this morning with the assistance of the Santa Ana Police Department at J Pacific Life and Healing OC.
Today’s enforcement actions in Santa Ana follow similar actions over the past 18 months across the seven-county Central District of California. Starting in October 2011, prosecutors began filing asset forfeiture lawsuits and sending letters to marijuana operations in selected areas in the Central District of California (see, for example, http://www.justice.gov/usao/cac/Pressroom/2012/129.html).
With the lawsuits filed this morning, the United States Attorney’s Office has filed a total of 30 asset forfeiture complaints against properties housing illegal marijuana operations in the district. Eighteen of those actions have been resolved with the closure of the marijuana stores and consent decrees. In some cases, consent decrees required property owners to disgorge rent payments made by a marijuana store operator, and in all cases the consent decrees required the property owners to agree, among other things, that they would no longer rent to people associated with illegal marijuana operations or the property would be subject to an immediate forfeiture to the government.
Including today’s efforts in Santa Ana, federal enforcement actions – asset forfeiture lawsuits, warning letters and related activity – have now targeted more than 525 illegal marijuana businesses in the Central District of California. The majority of those businesses previously targeted are now closed, are the subject of eviction proceedings by landlords, or have been the subject of additional federal enforcement actions.
In October 2011, the four United States Attorneys in California announced the coordinated enforcement actions targeting illegal marijuana cultivation and trafficking (see: http://www.justice.gov/usao/cac/Pressroom/2011/144a.html).
The United States Attorney’s Office is working in Santa Ana with the Drug Enforcement Administration, IRS - Criminal Investigation, the Santa Ana Police Department and the Santa Ana City Attorney’s Office.
Release No. 13-053
Charlotte Neurologist Will Pay $2 Million to Settle Civil Fraud AllegationsRead the Press Release
CHARLOTTE, N.C. – A Charlotte neurologist has agreed to pay $2 million plus interest to the United States to settle civil fraud allegations, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Hemanth P. Rao, MD, is the owner of and principal neurologist at The Neurological Institute in Charlotte, formerly known as Neurological Consultants of the Carolinas.
U.S. Attorney Tompkins is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
The settlement was reached following a multi-year investigation by HHS-OIG into Dr. Rao’s practices associated with the administration of intravenous immunoglobulin (IVIG) therapy. Government investigators found that from October 13, 2003 to May 26, 2006, Dr. Rao failed to meet the Medicare supervision regulations associated with IVIG therapy. IVIG is the delivery of healthy immunoglobulins directly into the bloodstream of patients suffering from immunodeficiency and autoimmune disorders. IVIG therapy involves the injection of a thick, viscous fluid into the veins of patients throughout a period of several hours. The Medicare program requires that the patient’s physician directly supervise the administration of this treatment in order to ensure the safety of the patient. Investigators found that Dr. Rao sought and obtained reimbursement for his IVIG therapy services from Medicare even though he was not present in the building with his patients when they were receiving IVIG treatment, as required by Medicare.
The Settlement Agreement also requires that Dr. Rao pay an additional $500,000 to Medicare upon the sale of his real estate holdings. Furthermore, Dr. Rao entered into a five-year Integrity Agreement with HHS-OIG to promote compliance with the statutes, regulations, program requirements, and written directives of Medicare, Medicaid, and all other federal health care programs.
In making today’s announcement U.S. Attorney Tompkins stated, “Dr. Rao’s actions not only compromised the integrity of the Medicare program, but exposed his patients to potential danger. I commend HHS-OIG for their thorough investigation and for their continued efforts to protect Medicare, an important health care program seniors rely upon to cover their health care needs.”
“Dr. Rao allowed his staff to practice a potentially hazardous procedure on Medicare patients, without his supervision, then blatantly charge taxpayers,” said Derrick Jackson of the HHS-OIG region including North Carolina. “Citizens of this State can continue to look toward U.S. Attorney Tompkins to vigorously pursue providers who shortcut Medicare regulations in exchange for profit.”
The investigation was conducted by HHS-OIG in Greensboro. Assistant United States Attorney Don Caldwell handled the case for the United States Attorney’s Office.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistleblower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Cambria County Man Pleads Guilty in Scheme to Defraud the U.S.Read the Press Release
JOHNSTOWN, Pa. - A resident of Vintondale, Pa., pleaded guilty in federal court to a charge of conspiracy United States Attorney David J. Hickton announced today.
Alvin Miller, 60, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from June 9, 2007, to April 15, 2008, Miller conspired with others to defraud the United States by assisting a co-conspirator in concealing money from the Internal Revenue Service in order for the co-conspirator to avoid paying income tax.
Judge Gibson scheduled sentencing for Oct. 10, 2013, at 9:30 a.m. The law provides for a maximum total sentence of 5 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 Stephanie L. Haines is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, the Internal Revenue Service Criminal Investigation and Ebensburg Borough Police Department conducted the investigation that led to the prosecution of Miller.
Brothers Sentenced for Drug Conspiracy and DistributionRead the Press Release
TONTA J. OCTAVE, age 34, and his brother KAVIS OCTAVE, age 31, both residents of Vacherie, Louisiana, were sentenced today by U.S. District Court Judge Lance M. Africk, announced U.S. Attorney Dana J. Boente. TONTA OCTAVE was sentenced to 120 months in the custody of the Bureau of Prisons, followed by a term of 8 years supervised release. TONTA OCTAVE will also be required to pay a special assessment fee of $200. KAVIS OCTAVE was sentenced to 90 months in the custody of the Bureau of Prisons and a term of 4 years of supervised release. KAVIS OCTAVE was ordered to pay a $400 special assessment fee.
In November 2012, the OCTAVE brothers were found guilty in four (4) counts of a five (5) count third superseding indictment for conspiracy to possess and distribute cocaine base (“crack”) by a federal jury after a two-day trial. Among other things, the jury heard testimony that on three separate occasions in March and May of 2012, KAVIS and TONTA OCTAVE, alone and/or working together, sold between one and two ounces of cocaine base (“crack”) to a Drug Enforcement Administration cooperating informant. These drugs sales were captured on audio-video recordings. In addition, at the time of TONTA OCTAVE’s arrest for these crimes, he was found attempting to flee his residence in a vehicle and had with him $25,747 in cash that had been kept in a freezer and was still ice cold. That money was forfeited to the government as drug proceeds at the conclusion of the trial.
The case was investigated by the Drug Enforcement Administration, St. James Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys Sean Toomey and Andre Lagarde.
Brooklyn Man Sentenced for Money LaunderingRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michael Kardonick, 58, of Brooklyn, N.Y., who was convicted of conspiracy to commit money laundering, was sentenced to 120 months in prison and ordered to pay restitution in the amount of $2,164,059 by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between January 2004 and July 2008, the defendant participated in a scheme to defraud investors who had invested approximately $2.5 million in international currency trading investments through the company Atwood & James S.A. During the course of the scheme, the defendant used the mail and wire communications to facilitate the execution of the fraud, using the illegally obtained investor proceeds to promote the scheme, in violation of the federal money laundering provisions.
This law enforcement action is part of President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin M. Niland, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch.