Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 April 2013
Eagle Butte Man Sentenced for Possession of A Stolen FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man who was convicted of Possession of a Stolen Firearm was sentenced on April 15, 2013 by U.S. District Judge Roberto A. Lange.
Judson His Law, a/k/a Judson Two Dogs, age 18, was sentenced to 15 months in custody, 2 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
His Law was indicted by a federal grand jury on November 15, 2012 and pled guilty to Count I of the Indictment—Possession of a Stolen Firearm—on January 23, 2013.
The conviction arose from an October 2012 incident when His Law stole a Remington model 870 shotgun from a vehicle parked outside a store in Eagle Butte.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorneys Mikal Hanson and Kathryn Rich.
His Law was remanded to the custody of the U.S. Marshal to begin serving his sentence.
Dozens Indicted on Firearms and Narcotics Charges in Warren; 155 Firearms SeizedRead the Press Release
Nineteen separate federal indictments were unsealed today, charging 55 people with various violations of federal narcotics and/or firearms laws in and around Warren, Ohio, law enforcement officials announced.
At the same time, an additional 42 people were charged in state court on similar charges. Overall, 155 firearms were taken off the streets, either by being purchased or seized.
The conduct laid out in the indictments include a conspiracy involving 21 people who are accused of bringing large quantities of heroin, cocaine and crack cocaine from Detroit to Warren; another that brought heroin from Columbus to Warren and Dayton; others that sold Oxycodone, Hyrdrocodone, heroin and crack cocaine; and multiple indictments of people accused of illegally possessing and selling firearms.
“These cases have taken an arsenal off the streets of Warren and cut off several pipelines of heroin, cocaine and other illegal drugs,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “It’s yet another demonstration of what happens when federal and local law enforcement work together for the good of the public.”
“The job of protecting communities like Warren from violent crime as well as from violent criminals remain at the forefront for ATF and from law enforcement at all levels,” said ATF Special Agent in Charge Robin Shoemaker, Columbus Field Division. “We can assure you that these types of aggressive, proactive investigations will continue.”
DEA Special Agent in Charge Robert L. Corso said: “This investigation exemplifies the success that can be achieved when local, state and federal law enforcement work together. Drug dealers are a violent group, and the nexus between drugs, guns and violence is clear in this case. The removal of the drugs, guns and the people who sell them, from the streets of Warren is a significant victory for law enforcement and will benefit those who live and work in that community.”
“Those arrested today brought more than just drugs and guns into the Youngstown area,” said Attorney General Mike DeWine. “Their operation brought more violent crime into our neighborhoods as well, and we will continue to work with state, local, and federal law enforcement to do everything we can to keep our communities safe.”
“Today’s arrests are the result of the law enforcement community answering to the request and needs of the City of Warren,” said Warren Police Chief Timothy Bowers. “Amazing things can happen when we work together for a common goal.”
Most of the alleged crimes took place last year. A full list of people charged in federal court, with their hometowns and ages, is below.
In the case of United States v. Valentino Thomas, Sr. et. al., a 99-count indictment was filed charging 21 people with engaging in a conspiracy to distribute heroin, crack cocaine and cocaine. Thomas, Sr. obtained the drugs from suppliers in Detroit and then sold them to Anthony Ector, who in turn sold the drugs to at least 15 dealers in Warren, according to the indictment.
As part of the conspiracy, Lewis Powell II, of Warren, is charged with 14 counts of illegally possessing firearms, and faces additional charges for having body armor and firearms with obliterated serial numbers, according to the indictment.
Prosecutors are seeking to forfeit more than $31,000 and six firearms seized in that investigation.
In the case of United States v. Jamie Hancock, et. al., a 49-count indictment was filed charging nine people with engaging in a conspiracy to distribute heroin. Hancock, Cornelius Butler III and Jovan Hancock purchased kilogram quantities of heroin from a supplier in Columbus, and then sold the heroin to other dealers in Warren, Dayton and elsewhere, according to the indictment.Prosecutors are seeking to forfeit more than $54,000 and a Honda motorcycle seized in that investigation.
Ricky and Henry Walker, both of Warren, are charged with conspiracy to deal firearms. The Walkers operated a flea market in Warren and purchased firearms, then bartered with flea market customers and sold firearms in exchange for items such as furniture, according to the indictment.
For example, Henry Walker sold nine firearms to a flea market customer in exchange for furniture on Sept. 7, 2011. One month later, he sold 22 firearms and ammunition to a customer in exchange for furniture and other property, according to the indictment.
Antonio Tucker, 22, of Warren, is charged with six counts – three charges of distributing Oxycodone or Hydrocodone and three firearms charges, including unlawfully distributing firearms, receiving or selling a stolen firearm and having a firearm with an obliterated serial number.
Margaret Devore and David Martin are charged with distributing Oxycodone and heroin and possessing a Norinco, model SKS rifle, despite both having previous felony convictions.
Donta Murray is charged with distributing crack cocaine and possessing two shotguns, despite a previous felony conviction.
Overall, 21 people face federal firearms charges as part of the indictments unsealed today.
If convicted, the defendants’ sentences will be determined by the court after review of the federal sentencing guidelines and factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations.
The cases are being prosecuted by Assistant U.S. Attorneys Daniel J. Riedl and David M. Toepfer, following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the TAG Task Force, the Ohio Bureau of Criminal Investigation and Identification, the Warren Police Department, the Trumbull County Sheriff’s Office, the U.S. Marshal’s Service, the Youngstown Police Department and the Ravenna Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
U.S. v. Valentino Thomas, Sr. et.al.
All 21 defendants are charged in count 1 with conspiracy to possess with intent to distribute heroin, crack cocaine and cocaine.
Valentino Thomas, Sr., 41, Detroit, distribution of heroin (x3), use of a phone in commission of a felony.
Anthony L. Ector, Jr., 29, Warren, distribution of heroin (x21), use of a phone in commission of a felony (x21).
Derrick Peete, 22, Detroit, distribution of heroin (x2), use of a phone in commission of a felony.
Lewis C. Powell II, 33, Warren, distribution of heroin (x4), distribution of crack cocaine, felon in possession of a firearm (x14), possession of a firearm with an obliterated serial number (x2), unlawful dealing of firearms, felon in possession of body armor, use of a phone in commission of a felony.
Bobby Covington, 26, Warren, distribution of heroin (x3), use of a phone in commission of a felony (x4).
Brian Thomas, 31, Detroit, distribution of heroin (x2).
Quintus Sellers, 24, Warren, distribution of heroin (x3).
Hosea Willis, 21, Warren, distribution of heroin (x3), use of a phone in commission of a felony.
Valentino Thomas, Jr., 22, Warren, distribution of heroin (x2), use of a phone in commission of a felony.
Jawan Thomas, 40, Warren, distribution of heroin (x2).
Bret Jones, 30, Bristolville, distribution of heroin (x4), interstate travel in commission of a felony.
Chance Wells, 22, Warren, distribution of heroin, use of a phone in commission of a felony (x3).
Bryan Sennyk, 33, Warren, use of a phone in commission of a felony (x3).
Toni Angelo, 49, Warren, distribution of crack cocaine, use of a phone in commission of a felony (x5).
Tracie Liptrot, 28, distribution of heroin (x2).
James Cohen, 24, Detroit, distribution of crack cocaine, felon in possession of a firearm.
Ahman McCollum, 28, Warren, use of a phone in commission of a felony (x3).
Stephanie McMahan, 29, Warren, use of a phone in commission of a felony (x3).
Sidney McMahan, 30, Warren, use of a phone in commission of a felony (x4).
Valerie Maddox, 30, Ravenna, use of a phone in commission of a felony (x2)
Benjamin Blakeley IV, 26, use of a phone in commission of a felony (x3).U.S. v. Jamie Hancock et. al.
All nine defendants charged in count 1with conspiracy to possess with intent to distribute heroin.
Jamie Hancock, 27, Dayton, distribution of heroin (x14), use of a phone in commission of a felony (x26).
Cornelius Butler III, 32, Warren, distribution of heroin (x10), use of a phone in commission of a felony (x9).
Jovan Hancock, 30, Dayton, use of a phone in commission of a felony (x4).
Lakeia Harris, 30, Dayton, use of a phone in commission of a felony (x6).
DeShawn Brown, 36, Warren, distribution of heroin (x3).
Charles Moore II, 31, use of a phone in commission of a felony (x2).
Wayne Sims Jr., 31, Columbus, use of a phone in commission of a felony (x4).
Vincent Croff, 29, Warren, use of a phone in commission of a felony (x2).
April Polk, 29, Columbus, use of a phone in commission of a felony (x5).U.S. v. Marcus Hemmingway et. al.
All five defendants charged in count 1 with conspiracy to possess with intent to distribute crack cocaine.
Marcus Hemmingway, 36, Warren: distribution of crack cocaine (x5), felon in possession of a firearm.
Darnell Defrance, 26, Warren, distribution of crack cocaine (x10).
Timothy Hooks, 45, Hermitage, Penn. distribution of crack cocaine.
Brittany Swogger, 24, Warren distribution of crack cocaine (x4).
James Court, Sr., 56, Girard, distribution of crack cocaine.Other cases: Leon Glover Jr., 20, of Warren: unlawful dealing in firearms, possession of a stolen firearm.
John Wayne Provitt Jr., 23, Warren: conspiracy to possess with intent to distribute crack cocaine, distribution of crack cocaine (x8).
Derrick McCullough, 32, Youngstown: conspiracy to possess with intent to distribute crack cocaine, distribution of crack cocaine.
Antonio Tucker, 21, of Warren: distribution of Oxycodone (x3), unlawful dealing in firearms, possession of a stolen firearm, possession of a firearm with an obliterated serial number.
Dwayne Bruce, 23, Warren: felon in possession of ammunition.
Margaret Devore, 32, Ashtabula: distribution of Oxycodone (x3), felon in possession of a firearm.
David Martin, 28, Warren: felon in possession of a firearm.
George Gutierres, 23, Youngstown: felon in possession of a firearm.
Brian Henry, 18, Warren: felon in possession of a firearm.
Hector Hernandez, 45, Cortland: felon in possession of a firearm (x2).
Calvin Cole, 51, Warren: felon in possession of a firearm.
Edward Lightning, 29, Youngstown: felon in possession of a firearm.
William McCree: 34, Warren: prohibited person in possession of a firearm.
Allen McGill, 26, Warren: distribution of cocaine (x3), distribution of crack cocaine, prohibited person in possession of a firearm (x2).
Donta Murray, 36, Warren: distribution of crack cocaine, felon in possession of a firearm (x2).
Ted Murray, 39, Warren: felon in possession of a firearm.
John Slade, 23, East Liverpool, felon in possession of a firearm.
Ricky Walker, 54, Warren: conspiracy and dealing firearms without a license, felon in possession of a firearms, possession of an unregistered firearm, possession of a firearm with an obliterated serial number.
Henry Walker, 60, Warren: conspiracy and dealing firearms without a license, aiding and abetting a felon in possession of a firearms, possession of an unregistered firearm, possession of a firearm with an obliterated serial number.
Goodwin Lofton, 48, Warren: felon in possession of a firearm.Dominican National Pleads Guilty to Cocaine TraffickingRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jose Nunez-Donastor, a/k/a Jesus Perez, a/k/a Rafael Torres Rivera, a/k/a Guineo, a/k/a Gineo, 33, of New York City, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to possess with intent to distribute and distribution of 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a fine of $5,000,000 or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Nunez-Donastor and other members of the conspiracy were responsible for the distribution of significant quantities of cocaine and crack cocaine throughout the Rochester area that were transported by vehicle from Pennsylvania. The investigation involved court-authorized wire taps and resulted in the federal arrest of 10 defendants between May and October 2012. To date, all defendants have been convicted. Nunez-Donastor is an illegal alien who will be deported to the Dominican Republic following the completion of his prison sentence.
The plea is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Scott Heagney and Investigators of the Rochester Police Department, under the direction of Chief James Sheppard, and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Sentencing is scheduled for July 15 at 2:15 p.m. before Judge Siragusa.Director of Non-Profit Convicted in BP Claims Fund Fraud TrialRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Antonio J. Gomez, Acting Inspector in Charge, Miami Division, U.S. Postal Inspection Service (USPIS), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Richard L. Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General - Office of Labor Racketeering and Fraud Investigation, announced that Jean Mari Lindor, 32, of Homestead, Florida, was convicted by a federal jury in Miami yesterday, for his participation in filing false claims in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico. Lindor was convicted on charges of mail fraud, wire fraud, access device fraud, and aggravated identity theft, all in connection with fraudulent claims filed by the defendant seeking lost income against the Gulf Coast Claims Facility, the filing of fraudulent tax returns with the Internal Revenue Service, and false claims for unemployment compensation against the State of Florida, in violation of Title 18, United States Code, Sections 1341, 1343, 1029(a)(2) and (b)(1), and 2.
The guilty verdicts were returned before U.S. District Judge K. Michael Moore, who set the sentencing hearing for July 30, 2013 at 2:00 p.m. in Miami. Lindor faces possible terms of imprisonment of up to twenty years on each of the thirty-four counts of mail fraud and wire fraud, up to ten years imprisonment on the three counts of access device fraud, and a consecutive sentence of two years each on the two counts of aggravated identity theft. The defendant also faces a fine of up to $250,000 on each count or twice the intended gain or loss caused by the conduct, as well as a period of supervised release of up to five years.
According to the allegations in the Indictment and evidence presented in court, in June 2010, BP established the Gulf Coast Claims Facility (GCCF) for the purpose of administering, mediating, and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010 explosion and fire on the Deepwater Horizon, an oil rig in the Gulf of Mexico that had been drilling an exploration well. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion Trust Fund established for that purpose.
The evidence at trial established that Lindor filed fraudulent claims against the fund, in his own name, and in the name of a Not-For-Profit business he established, Noula, Incorporated, located in Homestead. The value of the claims charged in the Indictment and presented at trial were in excess of $1.2 million. Trial evidence demonstrated that the records supplied to the GCCF to support the many claims were materially false and fraudulent because they purported to show the claimants were employees of various hotels, restaurants, and clubs in the Florida Keys at the time of the spill and that their income had been adversely affected as a result of the Deepwater Horizon incident.
Lindor also used unauthorized access devices during the scheme, consisting of the unique GCCF Claim numbers assigned to his fictitious claims, and without which he would have been unable to communicate with the GCCF, or cause payments to be issued to them. Moreover, Lindor also sought unemployment compensation for more than a year from the State of Florida, falsely certifying that he was not earning income when, in fact, he was actively directing the scheme at Noula.
Furthermore, the evidence at trial showed that Lindor possessed and used without lawful authority the social security numbers of two identity theft victims to file fraudulent tax claims against the IRS, and directed the refunds into either his personal bank account or to bank debit cards.
Mr. Ferrer commended the investigative efforts of the FBI, Postal Inspection Service, Secret Service, Department of Labor Office of Inspector General, and the U.S. Citizenship and Immigration Service, Fraud Detection and National Security Directorate. Mr. Ferrer would also like to thank the Florida Department of Economic Opportunity and the National Center for Disaster Fraud (NCDF). This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, through the National Center for Disaster Fraud (NCDF) Disaster Fraud Hotline at 877-NCDF-GCF (623-3423), the Disaster Fraud Fax at 225-334-4707, or the Disaster Fraud e-mail at [email protected].
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.
Detroit-Area Home Health Agency Office Manager Convicted in <br /> $5.8 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Detroit today convicted the office manager of a home health agency for her participation in a $5.8 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Detroit Office.
Nabila Mahbub, 27, the office manager of All American Home Care Inc., was found guilty in U.S. District Court for the Eastern District of Michigan of one count of conspiracy to commit health care fraud.
Mahbub was charged in a superseding indictment returned March 27, 2012. Nineteen other individuals who worked at or were associated with All American were previously convicted for their roles in the fraudulent scheme; one was acquitted at trial, but was convicted at trial for a separate, but related, scheme.
According to evidence presented at trial, the defendant and her co-conspirators caused the submission of false and fraudulent claims to Medicare through All American, a home health care company located in Oak Park, Mich., that purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.
The evidence at trial showed that the defendant and her co-conspirators used patient recruiters, who paid Medicare beneficiaries to sign blank documents for physical therapy services that were never provided and/or medically unnecessary. The owners of All American paid physicians to sign referrals and other therapy documents necessary to bill Medicare. Physical therapists and physical therapist assistants then created fake medical records using blank, pre-signed forms obtained by the patient recruiters to make it appear as if physical therapy services were actually rendered, when, in fact, they were not.
According to evidence presented at trial, Mahbub doctored and directed the doctoring of fake patient files to facilitate the commencement and billing of home health services purportedly provided by physical therapists and physical therapist assistants working for All American. Mahbub also directed the physical therapists and physical therapist assistants who created fake therapy visit notes using blank, pre-signed forms, to make it appear that physical therapy services billed to Medicare were actually provided.
All American was paid over $5.8 million from Medicare between September 2008 and November 2009.
At sentencing, scheduled for July 25, 2013, Mahbub faces a maximum penalty of 10 years in prison.
This case is being prosecuted by Deputy Chief Gejaa T. Gobena and Trial Attorney Matthew C. Thuesen of the Criminal Division’s Fraud Section. The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Eastern District of Michigan and the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
David Gonzalez Pleads Guilty to Illegal ReentryRead the Press Release
DAVID GONZALEZ (a/k/a Othoniel David Reconco), age 24, a citizen of Honduras, pled guilty in federal court today before U. S. District Judge Ivan L.R. Lemelle to a one-count indictment charging him with illegal re-entry of a removed alien, announced U.S. Attorney Dana J. Boente.
According to court documents, GONZALEZ admitted to being an alien who had previously been removed from the United States, was found in the United States, in Jefferson Parish, Louisiana on January 24, 2013, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging GONZALEZ with illegal reentry also included a notice of sentencing enhancement based on his prior aggravated felony conviction. With the enhancement, the charge carries a maximum statutory penalty of 20 years imprisonment, a fine of $250,000, and 3 years of supervised release following any term of imprisonment. Sentencing for the defendant is scheduled for July 2, 2013 at 2:00 P.M.
This case was investigated by U.S. Immigration and Customs Enforcement with the assistance of the Jefferson Parish Sheriff’s Office. The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Factual Basis )
Cuyahoga Falls Man Sentenced to Three Years in Prison for Possession of Pipe Bombs, Other OffensesRead the Press Release
A Cuyahoga Falls man was sentenced to three years in prison after previously pleading guilty to possessing five pipe bombs, a silencer, a machine gun and marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
David Dougherty, age 49, pleaded guilty in January to one count each of unlawful possession of destructive devices (five pipe bombs), possession of a firearm (the silencer), possession of a machine gun and one count of manufacturing of marijuana with intent to distribute.
On Oct. 20, 2012, Dougherty had five destructive devices consisting of a pipe, end caps, explosive powder and a pyrotechnic fuse, according to the court documents.
He also possessed a silencer, a STEN 9 mm submachine gun with no serial number and marijuana, according to the court documents.
The case was handled by Assistant United States Attorney Kelly Galvin following investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Summit Count Bomb Squad and the Cuyahoga Falls Police Department.
Criminal Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Recently in federal court, a 40-year-old Mexican national was indicted for entering the United States illegally after being deported as a criminal. On April 15, 2013, Benito Blanco-Correa was charged with one count of illegal re-entry after deportation.
The indictment alleges that on March 13, 2013, Estrada-Garcia was found in the U.S. after having been previously deported to Mexico on three occasions, the last being in 2010, following a 2009 conviction in the District of Minnesota for conspiracy to distribute and possession with intent to distribute heroin. On March 13, Blanco-Correa was identified as an illegal alien while in the Hennepin County jail, where he was being held after a narcotics’ arrest.
The identification was made though the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). The goal of CAP is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.If convicted of the federal charges on levied against him, Estrada-Garcia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.
To learn more about the CAP, visit www.ice.gov/criminal-alien-program/
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Convicted Sex Offender Indicted for Production of Child PornographyRead the Press Release
BOSTON – A level II sexual offender was indicted yesterday with the production of child pornography while on probation as a sex offender.
George Shipps, 31, of Chelsea, was charged with two counts of production of child pornography, transportation of child pornography and receipt of child pornography. In February 2013, Shipps was arrested at his home and has since been detained.
According to court documents, agents learned that Shipps, using a Yahoo! email address, had been sending and receiving images containing child pornography from his home in Chelsea to another individual in Hickory, NC. On February 19, 2013, agents executed a search warrant at Shipps’ home, whereupon Shipps admitted to possessing the images containing child pornography and sending them via email. Shipps further identified the six-year-old depicted in those photos and admitted to taking them between August and September of 2012.
Shipps was and is a level II sex offender on probation from the Middlesex County Superior Court for the possession of child pornography and luring a minor for the purpose of sex. Under current Massachusetts law, Shipps’ status as a level II sex offender was not available to the public via the sex offender registry website.
Because of Shipps’ status as a convicted sex offender, he faces a mandatory minimum sentence of 25 years and up to 50 years in prison, to be followed by up to lifetime supervised release, a $250,000 fine, and forfeiture if convicted.United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announce today. The case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Closing Attorney Sentenced to Prison for His Role in Mortgage Fraud SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today before Chief United States District Judge James C. Dever, III, JEFFREY SCOTT TAGGART, of Wilmington, NC, was sentenced to a 36 month term of imprisonment, followed by 3 years of supervised release, on charges of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349, and Subscribing to a False Income Tax Return, in violation of Title 26, United States Code, Section 7206(1). TAGGART was also ordered to pay $3,060.896.77 to 12 banks and lenders who were victims of the fraud.
With respect to the charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, the indictment alleged that TAGGART, in his capacity as a North Carolina attorney, prepared false HUD-1 settlement statements that he sent to banks and lenders on more than 50 loan transactions tied to the scheme. TAGGART falsified the HUD-1 settlement statements in various ways, including the falsification of the existence and degree of the buyer’s down payment, the existence and degree of financing, the existence or nonexistence of a buyer or seller, the actual contract price for the property, and the true recipient of all loan proceeds. TAGGART also participated in the scheme by fronting money from his firm’s escrow account to assist borrowers to appear qualified for loans that he closed.
As a result of the scheme, banks and lenders issued loans to the conspirators in the amount of approximately $15.8 million, which resulted in $3,060.896.77 in actual losses to the banks and lenders.
With respect to the Charge of Subscribing to a False Income Tax Return, the indictment alleged that TAGGART falsely listed his taxable income as $80,486, when in fact, his taxable income was $271,003.
Investigation of this case was conducted by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Centre County Drug User Admits Unlawfully Possessing PistolsRead the Press Release
JOHNSTOWN, Pa. - A resident of Patton, Pa., pleaded guilty in federal court to a charge of unlawful possession of firearms by a user of illegal controlled substances, United States Attorney David J. Hickton announced today.
John B. Zollinhofer, 41, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Sept. 22, 2011, Zollinhofer, who was an unlawful user of, and addicted to, illegal controlled substances, possessed two Smith and Wesson pistols, a Ruger revolver and a Rossi revolver.
Judge Gibson scheduled sentencing for Sept. 3, 2013, at 10:30 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Zollinhofer.
According to Mr. Hickton, Zollinhofer is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Carlos Alberto Aguilar Pleads Guilty to Illegal ReentryRead the Press Release
CARLOS ALBERTO AGUILAR, age 40, a citizen of Honduras pled guilty in federal court today before U. S. District Judge Martin L.C. Feldman to a one-count indictment charging him with illegal re-entry of a removed alien, announced U.S. Attorney Dana J. Boente.
According to court documents, AGUILAR admitted to being an alien who had previously been removed from the United States, was found in the United States, in Jefferson Parish, Louisiana on December 18, 2012, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging AGUILAR with illegal reentry also included a notice of sentencing enhancement based on his prior felony conviction. With the enhancement, the charge carries a maximum statutory penalty of ten (10) years imprisonment, a fine of $250,000, and three (3) years of supervised release following any term of imprisonment. Sentencing for the defendant is scheduled for August 7, 2013 at 1:30 P.M.
This case was investigated by U.S. Immigration and Customs Enforcement with the assistance of the Jefferson Parish Sheriff’s Office. The prosecution is being handled by Special Assistant United States Attorney Robert Weir.(Download Factual Basis )
Cape Cod Man Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – A West Harwich man, formerly of Charlestown, was sentenced yesterday for possessing child pornography.
Thomas J. Richardson, 67, was sentenced to 24 months in prison, followed by five years of supervised release and ordered to pay $10,000 in restitution to one of the victims. He was also ordered to forfeit the computers he used to store the illicit images and videos. In February 2013, Richardson pleaded guilty to possession of child pornography.
Between July 4th and 8th, 2008, an FBI agent working undercover for the FBI's Innocent Images Unit went online to a peer-to-peer file sharing software program. The FBI agent received a "friend" request and offline messages from Richardson using the screen name "Greatg." In the messages, Richardson asked when the agent would be online, stated that his name was "Gretchne," and falsely indicated that he was a mother of two.
On July 9, 2008, the agent logged into the file sharing program and found files containing child pornography images and videos belonging to Richardson. The agent attempted to download the files, however, Richardson terminated this transaction before it was completed because he was unable to download any content from the agent's online profile. Prior to the termination, the agent was able to download three files. One video was corrupted and could not be viewed. Another video, depicted anal-genital sexual intercourse between an adult man and a toddler boy. And an image depicted a nude, adult man touching the clothed genitals of a minor boy on a bed. The agent determined, through IP address location information, that the user profile belonged to Thomas J. Richardson in Charlestown.In August, 2008, the agent again logged into the file-sharing program and observed that Richardson's profile was also online. The agent browsed Richardson's shared file directories, and found files containing child pornography images and videos. The agent downloaded 11 files of child pornography, including a number of images depicting a prepubescent boy and prepubescent girl engaging in sexual acts with each other. The agent determined, through IP address location information, that the user profile belonged to Richardson's address in West Harwich.
The West Midlands Police, in Birmingham, England, also had reported to the FBI in Boston that an individual using the screen name "GreatG" was communicating and trading pornography with a target in their jurisdiction through the Google Hello program. British law enforcement obtained IP login information for GreatG's account and determined that Richardson had accessed this account from his residences as well as from his then-employer.
On November 6, 2008, the FBI executed a search warrant at Richardson's homes in Charlestown and West Harwich and seized six laptop computers. The FBI conducted a forensic examination of the computers and found evidence of significant child pornography activity. The Internet browsing history and recent link files showed that Richardson accessed a number of files with explicit names indicative of child pornography. Evidence of installation and use of the file-sharing program and Google Hello were also found on an HP laptop in Charlestown.
Forensic analysis revealed at least 10 images in allocated space, including the following:
- An image which depicts a nude girl lying on a bed with her legs spread - her wrists and one visible ankle are tied to the bed frame;
- An image which depicts a girl, who appears to be approximately 12 to 14 years-old, holding a penis near her mouth. There appears to be semen on her face and shirt; and
- An image which depicts a prepubescent, nude girl who is kneeling on the floor and engaging in oral-genital sexual intercourse with an adult male who is standing. The girl is wearing a mask (with an opening at the mouth) and her hands appear to be tied.
Forensics further revealed numerous deleted and temporary internet images of child pornography on the computers.
From Richardson's computer, forensic agents recovered 159 chats between Richardson and 81 other users on Google Hello trading numerous images of child pornography and child erotica, including images of children as young as six engaged in sexual acts and images depicting sadomasochistic sexual abuse of children. The chats indicate Richardson's substantial knowledge of child pornography series as well as his extensive collection of child pornography, which allowed him to provide child pornography tailored to the requester's preferences.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today.
The case was prosecuted by Assistant U.S. Attorneys Michael Yoon and Stacy Dawson Belf of Ortiz's Major Crimes Unit and Trial Attorney Bonnie Kane of the Department of Justice's Child Exploitation & Obscenity Section.
This case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.- An image which depicts a nude girl lying on a bed with her legs spread - her wrists and one visible ankle are tied to the bed frame;
Buffalo Man Sentenced on Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Antonio Briggs, 40, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute, and to distribute, cocaine, was sentenced to 10 years in prison by U.S. District Chief Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that Briggs was arrested along with 22 others in August of 2010 for narcotics trafficking. The defendant sold quantities of cocaine from KJ Fashions, his clothing store, at 439 East Amherst St. in Buffalo. To date, 15 of the 23 defendants have been convicted.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Niagara County Drug Task Force, under the direction of Sheriff James Votour, and the Niagara Frontier Transportation Authority Transit Police, under the direction of Chief George Gast.
Brownwood, Texas, Man Sentenced to 87 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
SAN ANGELO, Texas — Brian Bernard Willin, 48, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 87 months in federal prison and 10 years of supervised release following his guilty plea in November 2012 to one count of receipt of child pornography and aiding and abetting, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Willin was also ordered to pay $150,000 restitution to an individual who was depicted in an image Willin possessed.
Willin was indicted in August 2012 on four counts of receiving child pornography, one count of transporting child pornography and one count of possessing child pornography. According to plea documents filed in the case, Willin admitted that he used a peer-to-peer file-sharing program that he had installed on his computer to download and view several images depicting minors engaging in sexually explicit conduct. He saved some of the material on his computer and onto a DVD.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab "resources."
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Brown County Sheriff’s Office.
Armed Career Criminal from Albuquerque Sentenced to Fifteen Years in Federal Prison for Unlawful Possession of A FirearmRead the Press Release
ALBUQUERQUE – Richard Elizardo Luna, 52, of Albuquerque, N.M., was sentenced this afternoon to 15 years in federal prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. Luna’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Luna was arrested in April 2012, on an indictment charging him with being a felon in possession of a firearm and ammunition. According to the indictment, Luna unlawfully possessed a firearm in Bernalillo County, N.M., on Oct. 2, 2011. The indictment stated that, at the time, Luna was prohibited from possessing firearms and ammunition because he previously had been convicted of residential burglary in the Second Judicial District Court for the State of New Mexico, and of residential burglary and larceny in the Fifth Judicial District Court for the State of New Mexico.
Court records reflect that Luna has other felony convictions beyond those identified in the indictment including convictions for conspiracy to possess heroin, commercial burglary, receiving stolen property, possession of a controlled substance. Luna also has 15 convictions for failure to appear and a driving while intoxicated conviction.
On Dec. 5, 2012, Luna pled guilty to the indictment. The sentence imposed on Luna today was enhanced under the Armed Career Criminal Act, which requires a mandatory minimum 15 year prison sentence for career criminals.
This case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the District Attorney’s Office for the Second Judicial District of the State of New Mexico. It was prosecuted by Assistant U.S. Attorney Norman Cairns.
Alton Man Pleads Guilty to Firearm OffenseRead the Press Release
On April 17, 2013, Don A. Miller, a twenty-nine year old Alton, IL, man pled guilty to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Miller is scheduled for sentencing at 10:00 A.M. on August 2, 2013, in United States District Court in East St. Louis, at which time he faces a maximum potential sentence of up to ten years’ in prison; a fine of up to $250,000, not more than three years of supervised release and a mandatory special assessment of $100.
On July 19, 2012, law enforcement officials conducted a search of his residence in Alton, IL, after receiving consent from his live-in girlfriend. A loaded semi-automatic pistol was discovered in a bedroom closet. Miller admitted ownership of the firearm. Prior to July 19, 2012, Miller had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Alton Police Department.
This case is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Almost Four Dozen Suspected Meth and Heroin Traffickers Indicted; Officials Make Arrests in North County SweepRead the Press Release
Eighteen suspected methamphetamine and heroin traffickers were arrested during pre-dawn raids around the North County today.
More than 200 agents and detectives from the multi-agency North County Regional Gang Task Force made the arrests in Oceanside, Vista, Escondido and elsewhere in the North County. Task force members confiscated 35 weapons during the course of the investigation. Among the weapons seized were hand guns, semi-automatic rifles and shotguns, including a 12-gauge Street Sweeper semiautomatic.
These arrests are associated with the unsealing of 15 grand jury indictments today charging 46 defendants with various narcotics trafficking crimes, including conspiracy plus importation, distribution and possession of methamphetamine. A few defendants were charged with heroin trafficking.
“The number and types of weapons seized in this investigation are troubling,” said U.S. Attorney Laura Duffy. “We will to continue to target these well-armed drug traffickers who operate in our neighborhoods and put all of us at risk – especially our children.”
The North County Regional Gang Task Force is a multi-agency group including the FBI, ATF, the San Diego County Sheriff’s Department, Homeland Security Investigations and police departments in Oceanside and Carlsbad, with assistance from other federal and local law enforcement agencies as well.
Daphne Hearn, FBI Special Agent in Charge, said: “Today's arrests by the North County Regional Gang Task Force are the result of a long-term multi-agency investigation by federal, state and local law enforcement agencies working together. The FBI will continue to work with our law enforcement partners to make our communities a safer place.”
"It is only by the extremely hard work, commitment, and passion from the collaborative North County Gang Task Force that made Operation Corridor such a tremendous success,” said Oceanside police Chief Frank S. McCoy. “This operation is a great example of local and federal law enforcement agencies from all over San Diego joining together to combat drug traffickers in our community who threaten the safety and security of our citizens."
“ATF considers the North County Gang Task Force a critical partner in its long-term mission of combating violent crime and removing criminals from our communities as was shown in Operation Corridor,” said Steven J. Bogdalek, Special Agent in Charge ATF Los Angeles Field Division. “ATF will continue to dedicate federal resources and work with our local agencies in the pursuit of eradicating illegal firearm trafficking and criminal activity.”
“Operation Corridor exemplifies the good work done by multiple agencies in San Diego County,” said San Diego County Sheriff Bill Gore. “This is a multi-faceted approach to reducing violent crime, and those who perpetrate it. This investigation is a prime example of how effective Intelligence Led Policing can be with respect to targeting prolific, criminal offenders and managing law enforcement resources. Operation Corridor has been extremely effective in restoring quality of life to our residents in the North County along the 78 corridor.”
“I commend all of the law enforcement professionals in the San Diego area who worked tirelessly in this coordinated effort to combat the threats that violence and fear tactics pose to public safety in our communities,” said Derek Benner, special agent in charge for Homeland Security Investigations San Diego.
DEFENDANTS Case Number: 13cr1128-BEN LAURA CRUZ
RAUL ALVARADO
ROBERT RODRIGUEZ
CARRIE BROWN-RODRIGUEZ ANTHONY PALAFOX
JESSICA HOLGUIN
ROBERT AGUILAR
CHRISTIAN GARDUNO
ERICK GARCIA-MARTINEZ JOSHUA SANCHEZ
TRAVIS JOB
BRIAN RAMIREZ
ANDY ESPINOZA
LORI STORY
ANGEL OLMOS
BRAD WOOLARD
JOSE ANTONIO
EMILY BAKER
MONORIN PHIAKEO
JESSICA KISNER
HECTOR MEDRANO
FRANKIE KING Already in custody
Already in custody
Already in custody
Arrested 4/15/13 Arrested 4/17/13 Arrested 4/17/13
At Large
Already in custody
At Large
Arrested 4/17/13 Arrested 4/17/13 Arrested 4/17/13 Arrested 4/17/13 Arrested 4/17/13
At Large
Arrested 4/17/13
Already in custody
At Large
Arrested 4/17/13
At Large
Arrested 4/17/13 Arrested 4/17/13 Summary of ChargesTitle 21, United States Code, Sections 841(a)(1) and 846 - Conspiracy to Distribute Methamphetamine; Title 21, United States Code, Sections 952, 960 (b) (1) (H) and 963 – Conspiracy to Import Methamphetamine; Title 21, United States Code, Section 841 (a) (1) – Possession of Methamphetamine with Intent to Distribute
Case Number: 13cr1238BEN LYDIA LUCIO
DAVID GAMEZ
ANA ALVIZOVITAL
ERROL WHITE
RUDOLPH FIGUEROAArrested 4/17/13
Summary of Charges Title 21, United States Code, Sections 952, 960 (b) (2) (A) - Conspiracy to Import Heroin; Title 21, United States Code Sections 952, 960 and 963 – Conspiracy to Import Heroin Case Number: 1232BEN ALEXANDRA AGUIRRE Arrested 4/17/13 Summary of Charges Title 21, United States Code, Sections 952, 960 – Importation of Heroin Case Number: 13cr1239MMA THOMAS MEDINA
Arrested 4/17/13
Already in Custody
Arrested 4/17/13
Arrested 4/17/13
PABLO DIAZArrested 4/17/13
Summary of Charges Title 21, United States Code, Sections 841(a)(1) and 846 - Conspiracy to Distribute Methamphetamine; Title 21, United States Code, Section 841 (a) (1) – Possession of Methamphetamine with Intent to Distribute Case Number: 13cr1237L STEVEN HERNANDEZ
Arrested 4/17/13
JUAN URIBE Arrested 4/17/13
Already in Custody Summary of Charges Title 21, United States Code, Sections 841(a)(1) and 846 - Conspiracy to Distribute Methamphetamine; Title 21, United States Code, Section 841 (a) (1) – Possession of Methamphetamine with Intent to Distribute Case Number: 13cr1243BEN ROBERT SARMIENTO Arrested 4/17/13 Summary of Charges Title 21, United States Code, Section 841 (a) (1) – Possession of Methamphetamine with Intent to Distribute; Title 18, United States Code, Section 922 (g) (1) - Felon in possession of a firearm Case Number: 13cr1242AJB CARLOS RIVERA Arrested 4/17/13 Summary of Charges Title 21, United States Code, Sections 841(a)(1) and 846 - Conspiracy to Distribute Methamphetamine; Title 18, United States Code, Section 922 (g) (1) - Felon in possession of a firearm Case Number: 13cr1241BEN STEVEN NORTH
ROBERT AGUILAR Arrested 4/17/13
At Large Summary of Charges Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B) - Distribution of Methamphetamine; Title 18, United States Code, Section 922 (g) (1) - Felon in possession of a firearm Case Number: 13cr1231JAH JAVIER ALVAREZ Already in custody Summary of Charges Title 21, United States Code, Sections 841(a)(1) - Distribution of Methamphetamine Case Number: 13cr1244W PAUL WOODS At Large Summary of Charges Title 21, United States Code, Sections 841(a)(1) - Distribution of Methamphetamine Case Number: 13cr1233BEN ARMANDO ARELLANO Already in Custody Summary of Charges Title 21, United States Code, Sections 841(a)(1) - Distribution of Methamphetamine Case Number: 13cr1234WQH RUDY BLANCO
AMANDA KOPP Arrested 4/17/13 Arrested 4/17/13 Summary of Charges Title 21, United States Code, Sections 841(a)(1) and 846 - Conspiracy to Distribute Methamphetamine; Title 21, United States Code, Section 841 (a) (1) and (b) (1) (B) (viii) – Distribution of Methamphetamine Case Number: 13cr1240L GEORGE MOLINA
ULYSSES RAMOS Already in Custody
Already in Custody Summary of Charges Title 21, United States Code, Sections 841(a)(1) and 846 - Conspiracy to Distribute Methamphetamine; Title 21, United States Code, Section 841 (a) (1) and (b) (1) (B) (viii) – Possession of Methamphetamine with intent to distribute Case Number: 13cr1235JAH ROUANNE DIAZ
DEANDRA COX Arrested 4/17/13
Already in custody Summary of Charges Title 21, United States Code, Sections 841(a)(1) and 846 - Conspiracy to Distribute Methamphetamine; Title 21, United States Code, Section 841 (a) (1) and (b) (1) (B) (viii) – Distribution of Methamphetamine Case Number: 13cr1236GPC ADAM ESPINO Arrested 4/17/13 Summary of Charges Title 21, United States Code, Sections 841(a) (1) - Distribution of Methamphetamine AGENCIESFederal Bureau of Investigation
Oceanside Police Department
Bureau of Alcohol, Tobacco and Firearms
San Diego County Sheriff's Department
Homeland Security Investigations
Carlsbad Police DepartmentAn indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Alien Pleads Guilty to Smuggling Luxury Watches from the Dominican Republic to Sell in Downtown MiamiRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), announce that Marcos Ferrando, 29, of Santo Domingo, Dominican Republic, pled guilty yesterday to charges of illegally attempting to smuggle and clandestinely introduce into the United States luxury watches, in violation of Title 18, United States Code, Sections 545 and 2.
U.S. District Judge Donald Middlebrooks accepted Ferrando’s plea and adjudicated him guilty of the offense. Judge Middlebrooks sentenced Ferrando to 100 days imprisonment, followed by reporting to immigration authorities for deportation. Ferrando also agreed to forfeit the watches.
According to statements made in court, Ferrando admitted that on January 31, 2013, he and his wife arrived at Miami International Airport on a commercial flight from the Dominican Republic. Ferrando’s wife completed a Spanish-language binding customs declaration form on behalf of the couple. In response to a question asking if Ferrando and his wife were carrying any articles to be sold in the United States, they answered “no.” For the total value of all items that would remain in the United States, Ferrando and his wife listed nothing. The government estimates the value of the watches to be approximately $400,000.00, and the customs duties owed to be about $20,000.00.
During inspection of Ferrando’s luggage by Customs and Border Protection (CBP), an Officer discovered twelve (12) Audemars Piguet manufacturer manuals and warranties. Further inspection of Ferrando’s luggage revealed four (4) Audemars Piguet men’s watches in his carry-on bag and three (3) Audemars Piguet men’s watches concealed in a sunglasses case in his wife’s carry-on handbag. Both Ferrando and his wife were also each wearing an Audemars Piguet men’s watch. The model number on six (6) of the watches matched the model number on six (6) of the twelve (12) manuals in Ferrando’s possession.
During a later interview with a Special Agent from the Department of Homeland Security, Ferrando stated that all nine (9) of the watches belonged to him and admitted that he had planned to sell all nine (9) watches to a buyer in downtown Miami.
Mr. Ferrer commended the joint efforts of ICE-HSI and CBP. The case was prosecuted by Assistant U.S. Attorney Robert T. Watson.
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.
Air Conditioner Thief Sentenced to Six-And-A-Half Years in Federal Prison for Damaging EnvironmentRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Alexander Morrissette, age 27, of Monroe, Georgia was sentenced today in Macon, Georgia, by the Honorable C. Ashley Royal, Chief Judge for the United States District Court for the Middle District of Georgia. Morrissette had earlier pleaded guilty to two counts of knowingly releasing ozone-depleting substances into the environment. Chief Judge Royal sentenced Morrissette to 78 months in federal prison. There is no parole in the federal system and the term of imprisonment is to be followed by 3 years of supervised release. Morrissette was ordered to make restitution of $178,846.81, the amount of money needed to repair several commercial air conditioners illegally harvested for scrap metal. Randall Scott Wimpey, a Co-Defendant, age 31, of Snellville, Georgia, was previously sentenced to 15 months in federal prison by Chief Judge Royal on February 20, 2013, in Athens, Georgia.
"These defendants destroyed several industrial-sized air conditioning units to steal copper and aluminum parts to sell for scrap metal," said United States Attorney Michael Moore. "Their crimes not only caused property damage to a business and a church, it resulted in harm to the environment by releasing ozone-depleting refrigerant into the atmosphere, harming all of us."
"All life on earth depends on a healthy ozone layer in the stratosphere. If that layer is depleted, the sun's ultraviolet radiation can cause skin cancer, cataracts and suppression of the immune system," said Maureen O'Mara, Special Agent in Charge of EPA's criminal enforcement program in Georgia. "Through the illegal selling of air conditioner parts, the defendants violated the Clean Air Act, whose primary purpose is to protect human health. This case is another good example of EPA's continuing efforts with state and local partners to investigate and prosecute illegal activity that places public safety in jeopardy."
The case was investigated by the Special Agents of the Environmental Protection Agency and the Monroe Police Department. The case was prosecuted by Assistant United States Attorney Danial E. Bennett.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
24 Current and Former IRS Employees Indicted for Benefits FraudRead the Press Release
Memphis, TN – United States Attorney Edward L. Stanton III and Shelby County District Attorney General Amy Weirich announced today that 24 current and former employees of the Internal Revenue Service have been charged for crimes relating to fraudulently obtaining more than $250,000 in government benefits.
Thirteen of the current and former IRS employees have been charged federally with making false statements to obtain unemployment insurance payments, food stamps, welfare, and housing vouchers. All thirteen, individually charged in separate indictments, are alleged to have falsely stated that they were unemployed while applying for or recertifying those government benefits.
“According to the allegations in the indictment, while these IRS employees were supposed to be serving the public, they were instead brazenly stealing from law-abiding American taxpayers,” said U.S. Attorney Edward L. Stanton III. “These charges demonstrate our unwavering resolve to work with our law enforcement partners and hold accountable anyone who fraudulently obtains government benefits and violates the public’s trust.”
The 13 IRS employees charged are Angela Allison, 37; Jessica Davis, 35; Serina Gaither, 37; Lillian Hamilton, 36; Teresa Jenkins, 46; Joanne Johnson, 46; Angela Scales, 28; Dorothy Simmons, 35; Mary Weeks, 61; Evonna Yarbrough, 42, all of Memphis; Gale Baker, 54, of Cordova, TN; Shari House, 45, of Jackson, TN; and Talaria Mitchell, 35, of Southhaven, MS. Each has been charged with multiple counts of false statements, in violation of Section 1001 of Title 18 of the United States Code. A conviction under that statute can result in up to five years in prison.
The charges resulted from cooperation between numerous federal and state agencies. In addition to the U.S. Attorney’s Office and the Shelby County District Attorney General’s Office, the investigation involved the U.S. Department of Treasury Inspector General for Tax Administration; the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; the U.S. Department of Agriculture Office of Inspector General; the U.S. Department of Housing and Urban Development Office of Inspector General; the United State Marshals Service; the Tennessee Department of Labor and Workforce Development; the Tennessee Department of Human Services; the Shelby County Sheriff’s Office; and the Memphis Housing Authority.
Eleven other former and current IRS employees were charged by the District Attorney General’s Office with theft of property over $1,000, a class D felony.
“The taxes that we pay are supposed to support our nation and assist individuals in need, not free-loaders who are gaming the system,” said District Attorney General Amy Weirich. “Taxpayers can take comfort in knowing that we take these matters seriously and that we will prosecute these individuals to the fullest extent possible.”
The 11 charged by the state are Raya Banks, 47; Clara Cannon, 61; Alma Childers, 64; Cathryn Fair, 50; Robert Graves, 60; Mechell Hampton, 35; Nicole Nickson, 39; Diane Malone, 56; Myra Thompson, 32; Katina Thurman, 39; and Pamela Williams, 47, all of Memphis.
The federal cases are being prosecuted for the United States Attorney’s Office by Assistant United States Attorney Jonathan Skrmetti. The state cases are being prosecuted for the Shelby County District Attorney General’s Office by Kirby May.# # # #
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
16 April 2013
Woman Sentenced for Her Role in Hold-up of Citizens Bank in HutchinsonRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old woman was sentenced for her role in the robbery of the Citizens Bank in Hutchinson, Minnesota. United States District Court Judge David S. Doty sentenced Erica Lea Reeves, no known residence, to 19 months in federal prison on one count of aiding and abetting bank robbery. Reeves was indicted along with a co-defendant on August 22, 2012. She pleaded guilty on November 7, 2012.
In her plea agreement, Reeves admitted that on July 17, 2012, she and her co-defendant stole $5,770 from Citizens Bank, located at 1390 Highway 15 South, in Hutchinson. According to a law enforcement affidavit filed in the case, Reeves’ co-defendant, Eric Andrew Ebbers, age 25, no known address, presented a bank teller with a note demanding money and warning that he had a gun. After taking the money provided, Ebbers ran to a waiting car driven by Reeves. Police tried to stop the vehicle, but the car sped away. With officers in pursuit, the car exceeded 100 mph, wove through traffic, and avoided a police roadblock. When the car was finally disabled, Reeves was arrested, while Ebbers fled on foot into a cornfield. He was apprehended the following day.
On February 14, 2013, Ebbers was sentenced to 71 months in federal prison on one count of aiding and abetting bank robbery. He pleaded guilty on September 27, 2012. In his plea agreement, Ebbers also admitted robbing the Alliance Bank in Lake City, Minnesota, and the Key Bank in Gresham, Oregon. In both instances, Ebbers presented tellers with a note demanding money and warning that he had a gun.
This case was the result of an investigation by the Federal Bureau of Investigation and the McLeod County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.U.K. Resident Extradited on Charges <br /> He Traveled to Ohio to Have Sex with a JuvenileRead the Press Release
Richard Castle, 46, a resident of the United Kingdom, has been extradited to the United States where he faces charges of coercion of a minor, travelling with intent to engage in illicit sexual contact with a minor, and transferring obscene material to minors. The charges are related to a trip he allegedly made to Ohio from his home in order to have sexual relations with a juvenile in June 2011.
Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and William A. Hayes, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan announced the charges today after Castle appeared before a U.S. Magistrate Judge in Dayton, Ohio, who ordered him held without bond pending trial.
Members of the Metropolitan Police Service’s Extradition Team and International Assistance Unit, housed within New Scotland Yard, arrested Castle at his home in Northampton, England on Jan. 12, 2012 and seized at least one computer.
The three-count indictment alleges that Castle, posing as a male named Richard Joshua Parker, used the internet between March 2009 and June 2011 to coerce a juvenile to engage in illicit sexual activity. He allegedly flew to Dayton in June 2011 to engage in illicit sexual relations with the juvenile and stayed approximately three weeks. The indictment also accuses Castle of transferring obscene materials to a juvenile.
Coercion and enticement of a minor is punishable by at least ten years in prison and up to life. Travel with intent to engage in illicit sexual conduct is punishable by up to 30 years and transfer of obscene material to minors is punishable by up to 10 years.
Raman and Stewart acknowledged the cooperative investigation by the Englewood Police Department, Vandalia Police Department and HSI special agents, as well as the invaluable support provided by the Miami Valley Regional Computer Forensics Laboratory, and the Ohio Internet Crimes Against Children Task Force, the U.S. Marshals Service, the HSI Attache London Office, and the assistance of the Justice Department’s Office of International Affairs in Castle’s extradition.
Assistant U.S. Attorney Sheila Lafferty with the Southern District of Ohio and Trial Attorney Mi Yung Claire Park with the Department of Justice’s Child Exploitation and Obscenity Section (CEOS) are representing the United States in the case.
An indictment is merely an accusation, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Plead Guilty to Crack Cocaine Conspiracy ChargesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that two individuals involved in a New Haven drug distribution ring have pleaded guilty in Hartford federal court. RUFUS HUNTER, also known as “Triple Black,” 30, of New Haven, pleaded guilty today to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”). WILONDA MATTHEWS-GARY, also known as “Woo,” 32, of West Haven, pleaded guilty to the same charge yesterday.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine.
HUNTER and MATTHEWS-GARY are scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson in July 2013, at which time each faces a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Pennsylvania Men Enter Pleas of Guilty to Sexual Assault ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA – Two Washington, Pennsylvania, men entered pleas of guilty on April 15, 2013, in United States District Court in Wheeling before Judge Frederick P. Stamp, Jr. in relation to the kidnapping of a low-functioning Wheeling woman and taking her across state lines to engage in illegal sexual activity for four days in July.
According to U.S. Attorney William J. Ihlenfeld, II, Jose Jesús TAPIA MONTES, age 38, and Elmer Pina PINTO, age 44, of Washington, Pennsylvania, entered pleas of guilty to “Aiding and Abetting in the Transportation of an Individual in Interstate Commerce with Intent to Engage in Illegal Sexual Activity.”
MONTES and PINTO, who are in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.
The F.B.I. was assisted by the Wheeling Police Department and the Harmony House Child Advocacy Center in the investigation. The case was prosecuted by Assistant U.S. Attorney Robert H. McWilliams, Jr.
Two Indicted for Failing to Stop for Coast GuardRead the Press Release
BROWNSVILLE, Texas - A Brownsville federal grand jury has indicted two Mexican fishing boat crewmen for failing to heave to and obstructing boarding, United States Attorney Kenneth Magidson announced today along with Rear Admiral Roy Nash, Commander, Eighth Coast Guard District.
The indictment alleges Jose Alejandro Carrillo and Ismael Lopez-Ortiz failed to stop for the Coast Guard as directed. The indictment was returned April 9, 2013, and both are set to make their initial appearance tomorrow at 8:45 a.m. before U.S. Magistrate Judge Ronald G. Morgan.
“Failing to 'heave to' for an at-sea Coast Guard boarding is a serious offense,” said Nash. “Vessel operators who do not stop and attempt to flee from the Coast Guard put themselves, law enforcement officers and others at great risk. My thanks to our partner agencies for helping ensure that those who violate this law are held responsible for their actions.”
Carrillo, 24, and Lopez-Ortiz, 23, both of Matamoros, Mexico, were arrested by the Coast Guard on March 16, 2013. At that time, they allegedly fled from a Coast Guard vessel that was attempting to detain them for an inspection. Carrillo was the captain of the Mexican fishing boat, while Lopez-Ortiz assisted Carrillo in controlling the boat during the fleeing from the Coast Guard, the indictment alleges.
Both men have been in custody since their arrest.
A conviction for failing to Heave to or obstructing boarding each carries a maximum penalty of five years in federal prison and a possible fine of up to $250,000. Lopez-Ortiz was also indicted on a misdemeanor charge of interfering with a federal agent for which he faces up to a year in prison.
The case was investigated by the Coast Guard Investigative Service. Assistant United States Attorney Joseph Leonard is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Topeka Man Sentenced to 30 Years in Federal Prison for Drug TraffickingRead the Press Release
TOPEKA, KAN. – A Topeka man has been sentenced to 30 years in federal prison for trafficking in methamphetamine, U.S. Attorney Barry Grissom said today.
James Justin Woods, 31, Topeka, Kan., was convicted in a jury trial in December 2012 on one count of conspiracy to distribute methamphetamine and one count of distributing methamphetamine.
During trial, prosecutors presented evidence that Woods was part of a drug trafficking organization that operated from December 2010 to June 2011 in the Topeka area. In May 2011, investigators used intercepted telephone calls and other surveillance techniques to monitor Woods as he set up a series of meetings with buyers in which he exchanged drugs for money.
At sentencing, prosecutors noted that Woods had a prior felony conviction in 2004 in Shawnee County District Court for possession with intent to distribute narcotics.
Grissom commended the Topeka Police Department, the Drug Enforcement Administration, Assistant U.S. Attorney Duston Slinkard Assistant U.S. Attorney Jared Maag for their work on the case.
Three FCI Morgantown Inmates Enter Pleas and Are Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA — Four FCI Morgantown inmates entered pleas of guilty and were sentenced on April 11, 2013, in United States District Court in Clarksburg before Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that:
TROY LEWIS, age 40, entered a plea of guilty to “Possession of a Prohibited Object” on December 6, 2012, when a correction officer conducted a random search of inmate LEWIS and found a cell phone hidden in his pants pocket. LEWIS was sentenced to 3 months imprisonment to be served concurrently with his current 144-month sentence.
FRANK NAGI, age 39, entered a plea of guilty to “Possession of a Prohibited Object” on January 13, 2013, when a correction officer conducted a random search of inmate LEWIS and found a cell phone hidden in his pants pocket. NAGI was sentenced to 3 months imprisonment to be served concurrently with his current 78-month sentence.
PANAGOITOS SKORDALOS, age 34, entered a plea of guilty to “Possession of a Prohibited Object” on January 7, 2013, when a correction officer found a cell phone hidden in SKORDALOS’ bed. SKORDALOS was sentenced to 3 months imprisonment to be served consecutively with his current 180-month sentence.
These cases were prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Special Investigative Services Staff at FCI Morgantown.
Tennessee Man Sentenced to Five Years in Prison for Causing MF Global to Lose $141 Million on Unauthorized Futures TradesRead the Press Release
CHICAGO — A suburban Memphis man was sentenced today to five years in federal prison for causing $141 million in losses to his clearing firm after executing large, unauthorized overnight trades on wheat futures contracts through the Chicago Board of Trade in February 2008. The defendant, EVAN BRENT DOOLEY, an “associated person” in the Memphis office of MF Global, Inc., traded on his own account through the CME Globex electronic trading platform, via MF Global’s OrderXpress order entry system, knowing that he placed trading orders exceeding his ability to pay for potential losses resulting from those trades.
Dooley, 45, of Mt. Pleasant, Tenn., and formerly of Olive Branch, Miss., was also ordered to pay $141,024,294 in restitution to the MF Global, Inc., bankruptcy estate by U.S. District Judge Robert M Dow, Jr., who imposed the sentence in Federal Court in Chicago. Dooley, who pleaded guilty in December 2012 to two counts of violating the Commodity Exchange Act by speculative position limits, was ordered to begin serving his 60-month sentence on June 18.
[Dooley’s] “willful criminal conduct caused a staggering loss to MF Global,” the government argued in a sentencing memo. “The public, and in this case the financial services industry, needs to know that the courts will deter and incapacitate individuals like [the] defendant.”
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
According to the indictment returned in April 2010, Dooley was allowed to trade on his own account as well as for clients from September 2006 to February 2008, and he transmitted orders from a home computer. The indictment alleged that Dooley induced MF Global to open a trading account and act as his financial guarantor by providing false information about his financial condition on his account application.
As part of his guilty plea, Dooley admitted that during overnight trading starting on Feb. 26, 2008, he executed a series of large buy and sell orders for approximately 31,964 wheat futures contracts, knowing that he did not have the ability to pay for potential losses. (Each wheat futures contract called for the delivery of 5,000 bushels of wheat.) At the start of the session, Dooley had a negative balance of approximately $3,000 in his MF Global account and intended that the risks associated with his trading activity be borne directly and solely by MF Global. During the trading session, Dooley established a substantial “short” position, and by 6 a.m. on Feb. 27, 2008, he was short 16,174 May 2008 wheat futures contracts. During the same session, Dooley also traded contracts for March, July and December wheat futures, causing his overall position to exceed regulatory limits for both a single month (May 2008) and for all months combined.
On the morning of Feb. 27, 2008, when the price for May 2008 contracts rose rapidly as Dooley attempted to liquidate his short position, Dooley again executed a series of sell orders. By mid-morning, Dooley was short 17,181 contracts for May 2008 wheat futures and the price had gone “limit up” to approximately $13.495 per bushel. After MF Global representatives learned of Dooley’s overnight trading, MF Global deactivated his account and liquidated the remainder of his position. MF Global, as the clearing member on these trades, paid the CBOT’s clearing house the realized loss of $141,021,489, which Dooley was unable to cover, resulting in a loss of approximately $141,024,294 to MF Global, including the initial negative balance in his account.
The government is being represented by Assistant U.S. Attorney Clifford C. Histed. The Commodity Futures Trading Commission assisted with the investigation.
Syracuse Man Sentenced to 57 Months in Prison for Committing Five Bank RoberriesRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that James Nicholson, 34, who was convicted of bank robbery, was sentenced to 57 months in prison by U.S. District Judge Frank P. Geraci. Judge Geraci also ordered Nicholson to pay restitution in the amount of $94,393, representing the total amount of cash taken during the five robberies.
Nicholson and co-defendant Brandon Rothenburgh robbed the following banks between June 18, 2012 and August 30, 2012:
First Niagara Bank in Gates, New York on June 18, 2012;
Citizens Bank in Gates, New York on July 12, 2012;
First Niagara Bank in Gates, New York (again) on August 7, 2012;
M&T Bank in Rome, New York on July 24, 2012 and
Bank of America in Auburn, New York on August 30, 2012.
Rothenburgh was also convicted of bank robbery and sentenced to 165 months in prison in February 2013.
According to Assistant U.S. Attorney Everardo A. Rodriguez, who handled the case, Nicholson and Rothenburgh wore masks when they entered the banks. One or the other would then vault over the teller counter and demand cash from the tellers before jumping back over the counter and exiting the bank.
"This case involved one of the finest examples of teamwork," said U.S. Attorney Hochul. "In addition to the fine work of multiple federal, state and local agencies, I commend the hard work of the Gates Police Department, under the direction of Chief David DiCaro, for its efforts in bringing this prosecution to a successful conclusion."
The sentencing is the result of a joint investigation by the Gates Police Department, under the direction of Chief David DiCaro, the Federal Bureau of Investigation Rochester Office, under the direction of Acting Special Agent in Charge Richard Frankel, the FBI Syracuse Office, under the direction of Special Agent in Charge Clifford Holly, the New York State Police, under the direction of Major Mark Koss, the Geddes Police Department, under the direction of Victor Gillette, the Auburn Police Department, under the direction of Chief Brian Neagle, the Syracuse Police Department, under the direction of Chief Frank Fowler, the New York State Department of Corrections and Community Supervision, and the Onondaga County Sheriff’s Department, under the direction of Sheriff Kevin Walsh. Also assisting in the investigation was the United States Attorney’s Office for the Northern District of New York, under the direction of U.S. Attorney Richard Hartunian.
Superseding Indictment Issued for Dover Developer ZimmermanRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that the federal grand jury returned a Superseding Indictment charging Michael A. Zimmerman, age 56, of Dover with additional fraud and money-laundering offenses.
The Superseding Indictment alleges that Zimmerman made a false statement in April 2008 in connection with a $685,206.00 construction draw request to The Bancorp Bank (“Bancorp”) for the Long Neck project in Sussex County, Delaware. The Superseding Indictment alleges that two line items within that draw request, totaling $440,206.00, were false and were not for work that was not connected to the Long Neck project. According to the Superseding Indictment, Zimmerman submitted several forged and/or fraudulent documents to Bancorp in connection with the construction draw request. Zimmerman’s conduct in submitting the false draw request comprises Count 10 of the Superseding Indictment, which is punishable by a maximum term of 30 years imprisonment, a fine of $250,000.00, and mandatory restitution.
The Superseding Indictment further alleges that Zimmerman utilized at least a portion of the construction draw request for personal purposes unrelated to the Long Neck project. In particular, Zimmerman caused the transfer of Bancorp loan proceeds from his company account to his personal bank account in the amount of $106,672.00. Zimmerman ultimately used those funds to reimburse himself for a check he had written on or about May 7, 2008, toward his partnership investment in Club Wild Quail, LLC – an entity which owned the Wild Quail Country Club in Camden-Wyoming, Delaware. The diversion of Long Neck project funds to Zimmerman’s personal account constitutes the money laundering count in Count 11 of the Superseding Indictment. This charge carries a maximum term of 10 years imprisonment and a fine of up to $250,000.00.
The case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Office of Inspector General, Board of Governors of the Federal Reserve System and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz and Lesley F. Wolf.
Members of the public are reminded that an Indictment is only an allegation and that a defendant is presumed innocent until proven guilty.
See also: http://www.justice.gov/usao/de/news/2013/01-29.html
Zimmermin First Superseding IndictmentStatement of Attorney General Eric Holder<br /> on the Ongoing Investigation into Explosions in BostonRead the Press Release
The Attorney General released the following statement today on the ongoing investigation into the explosions in Boston:
“I want to express my deepest sympathies to the victims of yesterday’s heinous attack in Boston, to those who suffered injuries, and to those who lost friends and loved ones. All of you will be in my thoughts and prayers.
“As our nation struggles to make sense of this attack, I want to assure the citizens of Boston – and all Americans – that the U.S. Department of Justice, the FBI, and all of our federal, state, and local partners are working tirelessly to determine who was responsible for these unspeakable acts, and to make certain they are held accountable to the fullest extent of the law and by any means available to us. To this end, I have directed that the full resources of the Department be deployed to ensure that this matter is fully investigated. We will continue working closely with the Boston Police Department and the Massachusetts State Police – who have performed superbly – to respond to this tragedy, to maintain a heightened state of security, and to prevent any future attacks from occurring.
“As President Obama stated earlier today, we are treating this event as an act of terror. This morning, I met with the President and my fellow members of his national security team to discuss our continuing response. Although it is not yet clear who executed this attack, whether it was an individual or group, or whether it was carried out with support or involvement from a terrorist organization – either foreign or domestic – we will not rest until the perpetrators are brought to justice. The FBI is spearheading a multi-agency investigation through the Boston Joint Terrorism Task Force. They are devoting extensive personnel and assets to this effort – and have already begun conducting exhaustive interviews, analyzing evidence recovered from the scene, and examining video footage for possible leads. In addition, the ATF is providing bomb technicians, explosives assets, and other substantial investigative support. The DEA and U.S. Marshals Service are providing further assistance. And the Office of Justice Programs will coordinate victim support that the City of Boston and the Commonwealth of Massachusetts may request under the Anti-terrorism Emergency Assistance Program.
“As our active and comprehensive investigation unfolds, these federal assets are coordinating with prosecutors from the U.S. Attorney’s Office for the District of Massachusetts, the Justice Department’s National Security Division, and federal agencies across the government – including members of the Intelligence Community. This matter is still in the early stages, and it’s important that we let the investigation run its full course. I urge members of the public to remain calm, cooperate with law enforcement, and be vigilant. The FBI has set up a tip line – at 1-800-CALL-FBI – for anyone who has information, images, or details relating to yesterday’s explosions along the Boston Marathon route. We are particularly interested in reviewing video footage captured by bystanders with cell phones or personal cameras near either of the blasts. In an investigation of this nature, no detail is too small.
“Finally, I want to recognize and thank all of the brave law enforcement officials, firefighters, National Guardsmen, medical staff, bystanders, and other first responders in Boston yesterday afternoon who heard the explosions, or received reports of casualties, or saw the shattered glass and rising smoke, and rushed to provide assistance to those in need.
“Each of these remarkable women and men placed the safety of others above their own. Their heroic actions undoubtedly saved lives. And their stories of courage and selflessness remind us that – even in our darkest moments – the American people have always displayed an extraordinary capacity for resilience. We will always be strongest when we stand united. And although today our hearts are broken, my colleagues and I are resolved to bring those responsible for this cowardly act to justice. We will be relentless in our pursuit of the individual or group that carried out this attack, while staying true to our most sacred values. And – as our investigation continues, I am confident that our nation will recover, and that we will emerge from this terrible tragedy not only safer, but stronger, than ever before.”
St. Paul Man Sentenced for Role in Large Marijuana Distribution RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 38-year-old St. Paul man was sentenced for his role in a large marijuana distribution ring. United States District Court Judge Patrick J. Schiltz sentenced Cesar Sevilla-Acosta to 135 months in federal prison on one count of conspiracy to distribute marijuana. Sevilla-Acosta and 27 co-defendants were charged on October 18, 2010, in a superseding indictment. He was convicted on November 28, 2012, following a three-day trial. Because the federal judicial system does not have parole, Sevilla-Acosta will spend virtually his entire prison sentence behind bars.
Following today’s sentencing, Dan Moren, Assistant Special Agent in Charge of the U.S. Drug Enforcement Administration’s Minneapolis-St. Paul Field Office, said, “The sentencing of Mr. Sevilla-Acosta brings closure to a significant investigation targeting a Mexican-based criminal organization. The citizens of Minnesota should be proud of the perseverance and determination put forth by the case agents, prosecutors, and law enforcement partners in dismantling this criminal drug organization.”
Trial evidence proved that from 2006 through September 23, 2010, Sevilla-Acosta conspired with others to distribute 1,000 kilograms or more of marijuana throughout Minnesota and Colorado. The drug ring was responsible for the distribution of approximately 25,000 kilograms of marijuana in Minnesota from 2006 to September 2010. The proceeds of those sales totaled millions of dollars.
Judge Schiltz previously sentenced 23 of Sevilla-Acosta’s co-defendants on one count of conspiracy to distribute marijuana: On June 5, 2012, Sergio Abraham Olivas Padilla, also known as Juan Alonzo-Perez, was sentenced to 60 months in prison on one count of conspiracy to distribute marijuana. He pleaded guilty on September 20, 2011.
On March 5, 2012, Jose Israel Diaz was sentenced to 18 months in prison. He pleaded guilty on May 10, 2011.
On March 2, 2012, Ricardo Diaz was sentenced to 70 months in prison. He pleaded guilty on May 13, 2011.
On December 22, 2011, Stephanie Rachel Raduenz was sentenced to three years of probation. She pleaded guilty on December 20, 2010.
On December 21, 2011, Jorge Luis Medrano was sentenced to 15 months in prison. He pleaded guilty on December 3, 2010.
On December 19, 2011, Jose Cruz Alvarez Jaime, also known as Carlos Munoz-Perez, was sentenced to 75 months in prison and Tyler Louis Kyte was sentenced to 84 months in prison. Jaime pleaded guilty on May 10, 2011, and Kyte pleaded guilty on December 7, 2010.
On December 14, 2011, Michael Asencion Moreno was sentenced to 108 months in prison. He pleaded guilty on January 11, 2011.
On November 29, 2011, Federico Llamas, III, was sentenced to 78 months in prison. He pleaded guilty on December 16, 2010.
On November 1, 2011, Gustavo Moreno was sentenced to 18 months in prison. He pleaded guilty on May 13, 2011.
On October 28, 2011, Jorge Luis Villar-Meras was also sentenced to 18 months in prison. He pleaded guilty on May 4, 2012.
On October 5, 2011, Yolanda Jean Moreno was sentenced to 12 months and 1 day in prison. She pleaded guilty on November 22, 2010.
On September 27, 2011, Francisco Javier Carreon-Garcia was sentenced to 121 months in prison. He pleaded guilty on January 13, 2011.On August 30, 2011, Greg Bryan Ortega was sentenced to 24 months in prison. He pleaded guilty on December 13, 2010.
On August 29, 2011, Sabrina Jean Lafountaine was sentenced to three years of probation and Alan Lee Lorentz was sentenced to six months in prison. Lafountaine and Lorentz pleaded guilty on December 6, 2010.
On August 11, 2011, Alonso Rascon-Olivas was sentenced to 68 months in prison. He pleaded guilty on November 29, 2010.
On August 5, 2011, Joel Auren Zellmann was sentenced to three years of probation. He pleaded guilty on November 12, 2010.
On July 28, 2011, Bruce John Johnson was sentenced to 43 months in prison. He pleaded guilty on November 17, 2010.
On July 26, 2011, Amy Marie Mayberry was sentenced to 12 months in prison. She pleaded guilty on December 20, 2010.
On July 8, 2011, Stefanie Donna Kalenberg was sentenced to 10 months in prison. She also pleaded guilty on December 20, 2010.
On June 30, 2011, Charles Joseph Kalenberg was sentenced also sentenced to 10 months in prison. He pleaded guilty on November 8, 2010.
On June 23, 2011, Alfonso Prado-Galvon was sentenced to 37 months in prison. He pleaded guilty on December 21, 2010.
In addition, Judge Schiltz sentenced Sevilla-Acosta’s four remaining co-defendants on one count of possession with intent to distribute marijuana: On July 27, 2011, Jose Luis Renterra was sentenced to 37 months in prison on one count of possession with intent to distribute marijuana on September 22, 2010. He pleaded guilty on January 13, 2011.
On June 10, 2011, Rogelio E. Obeso-Melchor was sentenced to 30 months in prison on one count of possession with intent to distribute on April 20, 2010. He pleaded guilty on December 21, 2010.
On May 19, 2011, William Robert Laurie was sentenced to 27 months in prison on one count of possession with intent to distribute on August 19, 2009. He pleaded guilty on November 16, 2010.
On April 29, 2011, Patrick Thomas Maykoski was sentenced to 60 months in prison on one count of possession with intent to distribute on February 24, 2010. Maykoski pleaded guilty on October 29, 2010.This sentencing culminates a significant investigation, dubbed Operation Weed Whacker. This case was the result of an Organized Crime Drug Enforcement Task Force investigation led by the DEA’s Minneapolis—St. Paul District Office, in cooperation with other state and federal law enforcement agencies, including the Bloomington Police Department, the McLeod County Sheriff’s Office, the Sibley County Sheriff’s Office, the Carver County Sheriff’s Office, the Hutchinson Police Department, and the Glencoe Police Department, with assistance provided by the South West Metro Drug Task Force, the DEA’s Denver Office, the Denver Police Department, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Dakota County Drug Task Force, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
St. Michael Man Pleads Guilty to Burglary of a Post Office and Conspiracy to Commit Bank FraudRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 16, 2013, Robert Redroad, Jr. of St. Michael, N.D., pleaded guilty before U.S. District Judge Ralph R. Erickson to charges of burglary of a post office and conspiracy to commit bank fraud.
Redroad, Jr., 41, pleaded guilty to breaking into the Tokio Post Office on the Spirit Lake Indian Reservation and stealing a U.S. Treasury check made payable to another person. Redroad, Jr. forged the signature on the check and had another individual cash it at a Wells Fargo Bank in Moorhead, Minn. The incidents occurred in September of 2012 in the Districts of North Dakota and Minnesota.
The charge of burglary of a post office carries a statutory maximum penalty of five years’ imprisonment and the charge of conspiracy to commit bank fraud carries a statutory maximum penalty of 30 years’ imprisonment.
The case was investigated by the U.S. Postal Inspection Service.
Sentencing for Redroad, Jr. has been scheduled for July 12, 2013, in U.S. District Court in Fargo, N.D., at 10:00.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Sioux Falls Man Indicted for Fraud, Embezzlement, and Money LaunderingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man has been indicted by a federal grand jury for fraud.
Gerald Lloyd Larson, age 69, was indicted by a federal grand jury on April 2, 2013 for bank fraud, embezzlement in connection with health care, and two counts of money laundering.
Larson appeared before U.S. Magistrate Judge John E. Simko on April 15, 2013 and pled not guilty to the indictment. The charges carry maximum possible sentences as follows: bank fraud – 30 years in prison and/or $1 million fine; embezzlement – 10 years in prison and/or $250,000 fine; and money laundering – 20 years in prison and/or a $500,000 fine on each count. Restitution may also be ordered.
The charges are merely accusations and Larson is presumed innocent until and unless proven guilty.
Larson is accused of embezzling funds from his former employer, a health care provider located in Sioux Falls, by depositing items meant for his employer’s account into his personal bank account.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Connie Larson is prosecuting the case. Larson was released on his own recognizance pending trial.
Seattle and King County, Wash., Agree to Upgrade Combined Stormwater Systems to Protect Local Waters from Raw Sewage OverflowsRead the Press Release
King County, Wash. and the city of Seattle have agreed to invest in major upgrades to local sewage and combined stormwater collection, piping and treatment under settlements with the Department of Justice and the U.S Environmental Protection Agency (EPA). The state of Washington was a co-plaintiff and partner in these settlements.
The agreements are the result of extensive federal and state government cooperation and pave the way for employing more “green infrastructure” projects like green roofs, permeable pavements and urban runoff gardens, which help reduce demands on local sewer and stormwater systems.
“Today’s settlement will substantially reduce overflows of sewage-contaminated stormwater into the Puget Sound and other area waterways and significantly benefit the environment and health of residents of King County and Seattle,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The agreement provides a long-term planning approach to managing the area’s stormwater that integrates green infrastructure and requires improvements to system-wide sewer operations and maintenance.”
“EPA is working with cities and counties to find smart, effective solutions to reduce raw sewage and contaminated stormwater,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlements allow Seattle and King County to use innovative solutions, like green infrastructure, to help dramatically improve local water quality.”
“We’re pleased with the commitments King County and Seattle make in these legal agreements to reduce and control these overflows off Seattle’s shores,” said Maia Bellon, Washington state Director of Ecology. “The Consent Decrees allow flexibility in selecting and coordinating clean water projects, while setting firm dates to finish the job.”
Both agreements allow the city and county to use an integrated planning approach, which encourages communities to set their own clean water project priorities and invest in fixing the most pressing problems first. The settlements also require King County and Seattle to develop and implement a joint plan to improve system-wide operations and maintenance, since Seattle conveys the combined sewage it collects to King County’s system for treatment prior to discharge.KING COUNTY
Under the terms of the county settlement, King County will implement a long-term plan for controlling sewer overflows. By implementing these measures, King County will reduce its raw sewage discharges by approximately 95 to 99 percent, better protecting Puget Sound, Lake Washington and the Duwamish River from sewage-laced overflows. The improvements and upgrades are expected to cost approximately $860 million. In addition, King County will pay a civil penalty of $400,000.
The agreement allows the county to substitute green infrastructure projects, like green roofs, permeable pavements and urban gardens, which help reduce the demands on local sewer and stormwater systems, at four of its sewer overflow control projects.
Between 2006 and 2010, King County discharged approximately 900 million gallons of raw sewage to waters of the United States on an annual basis through discharges from its combined sewer system. During this time period, the county also violated the effluent limitations of its discharge permit, including fecal coliform at more than one of its wastewater treatment plants, and allowed wastewater to bypass secondary treatment at one of its wastewater treatment plants in violation of its discharge permit and the Clean Water Act.
CITY OF SEATTLE
Under the settlement with the city of Seattle, the city will develop and implement a long-term plan for better controlling sewer overflows and improve system-wide operations and maintenance. The city will also implement plans to control fats, oils and greases, and reduce debris being discharged by the system. In addition, the settlement provides Seattle with the opportunity to also use an integrated planning approach and to substitute green infrastructure at several of its sewer overflow control projects. By implementing these measures, the city will reduce its raw sewage discharges by approximately 99 percent at an estimated cost of $600 million. Seattle will also pay a civil penalty of $350,000.
Between 2007 and 2010, Seattle discharged approximately 200 million gallons of raw sewage into area waterways on an annual basis. During this time period, the city also improperly operated and maintained its sanitary sewer system, resulting in unauthorized discharges of raw sewage to public and private properties, including basement backups.
Keeping raw sewage and contaminated stormwater out of the waters of the United States is one of the EPA’s top priorities. Reductions in sewer and stormwater overflows are accomplished by obtaining cities’ commitments to implement timely, affordable solutions to these problems, which may also include the use of Integrated Municipal Stormwater and Wastewater Plans. This approach can also lead to more sustainable and comprehensive solutions, such as green infrastructure, that improve water quality and enhance community vitality.The settlement, lodged today in the U.S. District Court for the Western District of Washington, is subject to a 30-day public comment period and approval by the federal court. The consent decree can be viewed on the Justice Department website: http://www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement: www.epa.gov/enforcement/water/cases/washington.html
More information about EPA’s national enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
More information about Integrated Municipal Stormwater and Wastewater Plans: http://cfpub.epa.gov/npdes/integratedplans.cfm
San Fernando Valley Doctor Who Pleaded Guilty in $3 Million Medicare Fraud Case Sentenced to 3½ Years in Federal PrisonRead the Press Release
LOS ANGELES – A medical doctor who owns a cosmetic medicine clinic in the Winnetka district of the San Fernando Valley has been sentenced to 42 months in federal prison for bilking Medicare out of more than $3 million by submitting bills for procedures he never performed.
Pezhman Ebrahimzadeh, who uses the name “Pez Abrahams,” 50, of Calabasas, received the 3½-year sentence yesterday from United States District Judge George H. Wu.
In addition to the prison term, Judge Wu ordered Ebrahimzadeh to pay $3,184,000 in restitution, most of which is to be paid to the Medicare program.
Ebrahimzadeh owns the Winnetka Medical Group, a cosmetic health care clinic that operates under the name Health & Beauty Clinic. At his clinic, Ebrahimzadeh provides cosmetic treatments that involve radiofrequency lasers and liposuction. As some of his patients were Medicare beneficiaries, Ebrahimzadeh obtained their beneficiary information, which was used to bill Medicare for procedures he did not perform.
Ebrahimzadeh also obtained beneficiary information for patients he never met or treated, and he used that information to submit other fraudulent bills to Medicare.
In relation to the bogus bills submitted to Medicare, Ebrahimzadeh typically claimed he had performed three expensive procedures: revascularization, ablation of a bone tumor, or the placement of a radiotherapy catheter in a breast. Ebrahimzadeh made these claims, even though he lacked the equipment needed to perform revascularizations or the placement of radiotherapy catheters.
Ebrahimzadeh’s “conduct was so brazen that he billed Medicare for purportedly performing dozens of procedures on patients who were dead,” prosecutors wrote in a sentencing memorandum to the court. “For one such patient, defendant billed Medicare for seven separate high-paying procedures. [Ebrahimzadeh] also altered medical records in an attempt to conceal his fraudulent conduct. In addition to defrauding Medicare, defendant billed private insurance carriers for similar procedures, some of which he claimed he performed on himself.”
Between September 2008 and April 2012, Ebrahimzadeh submitted $7.5 million in bogus claims, and Medicare paid just over $3 million.
Ebrahimzadeh pleaded guilty in January to one count of health care fraud.
In the sentencing memo, prosecutors noted that Ebrahimzadeh was arrested last month on suspicion of sexually assaulting a patient during a physical examination.
The case against Ebrahimzadeh was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the California Department of Justice, Bureau of Medi-Cal Fraud & Elder Abuse.
Release No. 13-052
San Bernardino County Physician’s Assistant Sentenced to 14 Years in Federal Prison for Illegally Distributing OxyContinRead the Press Release
RIVERSIDE, California – A physician’s assistant who operated a mobile health clinic based in Hesperia was sentenced today to 14 years in federal prison for distributing the powerful and widely abused prescription narcotic OxyContin.
Christopher Henry Lister, 51, of Victorville, was sentenced by United States District Judge Virginia A. Phillips. Lister pleaded guilty last November to one count of conspiracy to distribute and attempt to distribute oxycodone, which is the generic drug that is in the brand name OxyContin.
In a plea agreement filed with the court, Lister admitted that he used his powers as a physician’s assistant to supply OxyContin prescriptions to others, including an undercover operative with the Drug Enforcement Administration. Lister sold prescriptions for OxyContin to co-conspirators knowing that they would in turn sell the popular drug to street-level users.
In one exchange captured on videotape during the DEA investigation, Lister told one of his customers to “stockpile” his supply of OxyContin because Lister was considering getting out of the business. Lister advised the co-conspirator that OxyContin prices on the street would likely increase if he stopped writing prescriptions.
Lister “entered into an ongoing scheme to provide oxycodone, a dangerous opiate, to street-level dealers,” federal prosecutors wrote in a sentencing memo filed with the court. “Using his license as a physician’s assistant, he not only provided these dealers with an avenue to obtain the controlled substance, his use of his prescription-writing powers lent an air of legitimacy to the actions that could have frustrated law enforcement attempts to combat the abuse of a drug closely aligned with heroin abuse.”
Prosecutors noted in court that Lister was previously convicted in a case related to another abuse of public trust. In a case filed in 2003 by the United States Attorney’s Office for the Eastern District of California stemming from an investigation into Medi-Cal fraud, Lister was ultimately convicted of making false statements to a government agent. In court documents, prosecutors said that the case related to Lister “illegally billing Medi-Cal for human growth hormone prescriptions written for non-Medi-Cal recipients [and Lister] himself filled those prescriptions and then sold the drug to users in Los Angeles.”
The OxyContin distribution case against Lister was investigated by the Drug Enforcement Administration.
Release No. 13-051
Sacred Heart Hospital Owner, Executive and Four Doctors Arrested in Alleged Medicare Referral Kickback ConspiracyRead the Press Release
CHICAGO – The owner and another senior executive of Sacred Heart Hospital and four physicians affiliated with the west side facility were arrested today for allegedly conspiring to pay and receive illegal kickbacks, including more than $225,000 in cash, along with other forms of payment, in exchange for the referral of patients insured by Medicare and Medicaid to the hospital.
Agents from the FBI and the U.S. Department of Health and Human Services Office of Inspector General today also began executing search and seizure warrants in connection with an ongoing investigation of alleged Medicare and Medicaid fraud schemes at the hospital involving emergency room evaluation, testing and observation services that were not medically necessary, as well as medically unnecessary sedation, intubation and tracheotomy procedures performed on patients. Approximately $2 million in Medicare reimbursement payments was seized today from various bank accounts.
Arrested were EDWARD J. NOVAK, 58, of Park Ridge, Sacred Heart’s owner and chief executive officer since the late 1990s; ROY M. PAYAWAL, 64, of Burr Ridge, executive vice president and chief financial officer since the early 2000s; and Drs. VENKATESWARA R. “V.R.” KUCHIPUDI, 66, of Oak Brook, PERCY CONRAD MAY, JR., 75, of Chicago, SUBIR MAITRA, 73, of Chicago, and SHANIN MOSHIRI, 57, of Chicago.
Sacred Heart Hospital is a 119-bed acute care facility located at 3240 West Franklin Blvd., in Chicago. Approximately 40 in-patients were in the hospital this morning, and representatives of the HHS Centers for Medicare and Medicaid Services (CMS) were on site and coordinating with the Illinois Department of Healthcare and Family Services to ensure continuity of patient care.
“These charges and the affidavit’s other allegations outline a kickback conspiracy to bribe doctors to refer patients to Sacred Heart where they would be treated in in an environment in which the quality of care and appropriate medical analysis were less important than maximizing the numbers of patients funneled into the hospital,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
“The payment of kickbacks or bribes in exchange for the referral of Medicare or Medicaid patients, regardless of the form in which they are paid, is a crime,” said Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of HHS-OIG. “The Office of Inspector General will continue to work closely with our law enforcement partners to aggressively investigate alleged illegal patient referral schemes and hold accountable those who seek to exploit vulnerable patients and the Medicare and Medicaid programs.”
“Today’s arrests demonstrate our commitment to enforcing the laws intended to prevent abuses of the Medicare and Medicaid programs and to preserve the ability of those programs to provide appropriate medical services to the elderly and the needy,” said Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation.
The defendants were charged in a complaint that was filed yesterday and unsealed today after the arrests. All six defendants were scheduled to appear beginning at 3 p.m. before U.S. Magistrate Judge Daniel Martin in Federal Court.
Kickback Conspiracy
A 90-page affidavit in support of the criminal complaint and search and seizure warrants states that former Sacred Heart Physician A began cooperating in the investigation in October 2011, and Administrator A and Administrator B began assisting in January 2013 and February 2012, respectively. Each of them made consensual recordings of meetings and telephone conversations with other executives, administrators, physicians and employees that are described in the affidavit.
According to the complaint – at Novak’s direction and with his approval and Payawal’s assistance – Sacred Heart implemented a scheme to pay kickbacks to physicians in return or referrals of Medicare and Medicaid patients. Novak and Payawal allegedly tried to conceal the scheme by masking payments as fictitious rental payments; paying the salaries of physicians’ employees; providing physicians ghost contracts for duties without any real responsibilities; creating alternative billing arrangements; and purporting to pay physicians to supervise and teach non-existent medical students.
In a conversation that Administrator A recorded on Feb. 28, 2013, Novak and Payawal allegedly identified Drs. Moshiri, Maitra and May as physicians receiving regular kickback payments who Administrator A should pay.
Between January 2010 and February 2013, May allegedly received $74,000 in the form of 37 checks, for $2,000 each, disguised as “rental payments”; Moshiri, a podiatrist, allegedly received $86,000 in 38 checks pursuant to a purported contract to teach podiatry students; and Maitra allegedly received $68,000 in 34 checks pursuant to a purported teaching contract – and the $228,000 total in alleged kickbacks were all in exchange for their referral of patients to Sacred Heart, the charges allege.
In a recorded conversation last month, Maitra allegedly explained to Administrator A that he used to make Novak “so much money” performing almost daily penile implant procedures on patients, but that he no longer performed as many of those procedures because Medicare had decreased its rates of reimbursement for the procedure. Maitra did not comment on whether the patient need for the procedure had somehow changed, according to the affidavit.
Regarding Dr. Kuchipudi, Administrator A told agents that he was one of Sacred Heart’s most prolific patient referral sources and, according to Physician A, was known within the hospital as the “king of nursing homes.” According to Administrator A, Sacred Heart paid Kuchipudi for Medicare patient referrals in two ways: first, by paying most of the salaries of a physician’s assistant and a registered nurse who were effectively employed by Kuchipudi, and second, by paying Physician B for treating Kuchipudi’s patients at Sacred Heart, despite the fact that Kuchipudi, and not the hospital, billed insurers for the services Physician B provided to those patients. These arrangements allegedly benefited Kuchipudi as a result of the hospital absorbing employee salary costs that Kuchipudi would normally have to pay himself.
Emergency Room Admissions
Although not charged, the affidavit supporting the search warrant states that the investigation extends to allegations of unnecessary emergency room admissions. Administrator A told agents that Novak ignored numerous complaints that physicians admit patients who do not require hospitalization, and that certain physicians have subjected patients to unnecessary medial testing and procedures in an attempt to justify the patients’ admissions and to increase billing.
Insiders have told agents that Sacred Heart’s executives established a system to admit nursing home patients, irrespective of any medical necessity, by directing referring physicians to use ambulance companies with which Sacred Heart has had “a relationship.” By designating such patients as “direct admission,” Sacred Heart physicians are able to transfer their patients by ambulance from nursing homes, regardless of the proximity to the hospital. Instead of directly admitting these nursing home patients, however, Sacred Heart processes them through its emergency room, billing Medicare for emergency care, which is usually not medically necessary, according to Administrator A. Physician A told investigators that, in his experience, half of the patients presented to Sacred Heart’s ER already had a relationship with one of the hospital’s attending physicians and that the majority of those patients were admitted to the hospital from the emergency room.
Tracheotomy Procedures
The investigation is also probing claims that Sacred Heart Physician D, a pulmonologist, allegedly performs a high number of unnecessary intubations and prolongs them by directing heavy sedation of his patients, often resulting in tracheotomies being performed by Sacred Heart surgeons that may not have been medically necessary. Administrator A told agents that during a lunch with Novak and Payawal in December 2012, they both explained that tracheotomy cases provide substantial insurance reimbursement income for the hospital. On March 1, 2013, Administrator A recorded Novak stating that tracheotomies are Sacred Heart’s “biggest money maker” and the hospital can make $160,000 for a tracheotomy if the patient stays 27 days. On March 7, 2013, the Intensive Care Unit case manager told Administrator A that she must often “stretch” a tracheotomy patient’s stay to 28 days to maximize Medicare reimbursements “to make Novak happy.”
According to the affidavit, Sacred Heart allegedly conceals $7,000 monthly payments for respiratory patient referrals by paying that amount to a healthcare management company that has an employee who works at one of the nursing homes where Kuchipudi sees patients. The consulting firm employee works with Kuchipudi, nursing homes, and Sacred Heart to facilitate the admission of respiratory patients to Sacred Heart, Administrator A told investigators.
On March 4, 2013, investigators from CMS and the State of Illinois arrived at Sacred Heart to conduct an investigation of the hospital’s intubations and tracheotomies, and quality assurance and performance improvement protocols. On March 6, Administrator A recorded Physician D acknowledging that Sacred Heart lacked policies for various aspects of intubations and tracheotomies and that he had given some practice guidelines and procedures obtained from other hospitals to the surveyors in response to their request for Sacred Heart’s policies. At the same time, the ICU nurse manager told Administrator A that she had reviewed eight tracheotomy patient files in connection with the CMS investigation. Physician D was the pulmonologist for all the patients and had performed all but one of the tracheotomies. The nurse manager said that there was no documentation in the patient files explaining the decision to intubate the patients or any efforts to wean them from the ventilators. The following day Administrator A reported the findings to Novak and others and regarding the lack of documentation, and Novak replied with an expletive, according to the affidavit.
On April 8, Physician D told Administrator A in a recorded conversation that Novak had asked him to provide two more tracheotomy cases for the hospital soon before the CMS surveyors might return.
Novak’s Business Interests
According to the affidavit, Novak has direct or indirect ownership interest in various related entities, including Superior Home Health, LLC, a home healthcare company; the Golden L.I.G.H.T. clinics, which are family practice / internal medicine clinics operated as divisions as Sacred Heart; the Chen Medical center; the Garfield Kidney Center, LLC, an outpatient dialysis center; and the Bentley Insurance Group, a medical malpractice insurance company. Novak also owns various real estate and corporate management holding companies, and prior to June 2012, he operated the Chicago R.E.A.C.H Foundation, a purported non-profit, senior citizen program financed by the State of Illinois.
In a series of recorded conversations over the last two months, Payawal told Administrator A that a substantial part of Sacred Heart’s revenue comes from Medicare and Medicaid reimbursements, and explained various ways in which revenue generated from the hospital is transferred to and among Novak’s other corporate interests.
Conspiracy to violate the federal anti-kickback statute carries a maximum penalty of five years in prison and a $250,000 fine and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorneys Joel Hammerman, Terra Reynolds and Ryan Hedges.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The case falls under the umbrella of the Medicare Fraud Strike Force, which expanded operations to Chicago in February 2011, and is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Justice Department and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. More than five dozen defendants have been charged in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: stopmedicarefraud.gov.
Complaint
Richard P. Molenaar Charged with Conspiracy to Commit BriberyRead the Press Release
RICHARD P. MOLENAAR, III, 47, a resident of Las Cruces, New Mexico, was charged today in a one-count bill of information with conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente.
According to court records, MOLENAAR was the owner of several maintenance/ construction companies, including Ricky’s A/C, Inc., Landmark Mechanical Contractors, LLC, and Custom Carpentry Renovations, LLC. From in or around 2008 through in or around 2011, MOLENAAR used these companies to bid on maintenance jobs at the Orleans Parish Sheriff’s Office (“OPSO”). MOLENAAR’s primary point of contact at the OPSO was its former Director of Purchasing, John Sens. According to the bill of information, MOLENAAR, among others, including Sens, engaged in a rigged bidding process for various OPSO maintenance jobs. In particular, from 2007 through 2011, MOLENAAR, among others, would submit bids for OPSO work in the names of his respective companies but, with the knowledge and participation of, among others, Sens, he would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from MOLENAAR and, consequently, Sens would award the work to MOLENAAR.
In exchange for this rigged bidding process, according to court documents, MOLENAAR provided Sens with various things of value. For example, from 2007 through 2011, MOLENAAR provided approximately $30,000 in cash to Sens, as well as the digging and installation of a pool at a residence owned by Sens, at no cost to him.
If convicted, MOLENAAR faces a maximum penalty of 5 years imprisonment, 3 years supervised release, a $250,000 fine, and a $100 special assessment.
U.S. Attorney Boente reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being investigated by special agents of the Federal Bureau of Investigation.
The case is being prosecuted by Assistant U. S. Attorneys Matt Chester and Jon Maestri.(Download Indictment )
Quality Roofing, INC., Order to Pay $75,000 Fine, RestitutionRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr., announced today that Quality Roofing, Inc., a Michigan-based corporation convicted of submitting false forms to the government, was sentenced to pay of fine of $75,000, plus restitution of $19,197.50 by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant was a subcontractor on a government roofing project at the Kenneth B. Keating Federal Building in 2007-2008. The corporation was required to pay its employees the prevailing wage, as established by the Secretary of Labor, and to submit weekly certified payrolls confirming this fact. The defendant did not pay its employees the prevailing wage, but falsely claimed in its certified payrolls that it had done so.
The sentencing is the culmination of an investigation on the part of Special Agents of the General Services Administration, under the direction of James E. Adams, and the Department of Labor, under the direction of Special Agent in Charge Robert L. Panella.Possession of Child Porn Lands Alice Man in Federal PrisonRead the Press Release
HOUSTON – Anthony Rene Perez, 26, of Alice, has been handed a nearly seven-year federal term of imprisonment following his conviction of possession of child pornography, United States Attorney Kenneth Magidson announced today. Indicted in November 2012, Perez pleaded guilty just a short time later – on Jan. 7, 2013.
Today, Senior U.S. District Judge Hayden Head sentenced Perez to a total of 70 months in federal prison to be followed by 10 years of supervised release.
Perez came to the attention of law enforcement following outcries of sexual abuse by two minor children who had been temporarily in his care. The outcries occurred in May 2012. The children described numerous acts of sexual abuse committed against them by Perez while staying at his home during Spring Break 2011. One of the children stated that Perez had photographed the child while showering naked and then later showed the pornographic images of the same child on Perez’ computer.
The investigation led to a search of his former home in Alice in June 2012, at which time several electronic storage devices were discovered and found to contain either child pornography or evidence of its prior existence on the devices. More than 100 images and videos of child pornography were identified, but investigators found no evidence of the alleged sexual abuse described by the children on any of the electronic media.
The FBI, Corpus Christi Police Department’s Internet Crimes Against Children Task Force (ICAC), Alice Police Department, Jim Wells County Sheriff’s Office, and the Texas Rangers investigated the case.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Portland Man Defrauds Investors Out of $6.4 MillionRead the Press Release
PORTLAND, Ore. – Yusaf Jawed, 44, Portland, Oregon, entered a guilty plea in federal court to five counts of mail fraud and 12 counts of wire fraud in connection with an investment fraud scheme he orchestrated in Oregon, Washington, California, and other states. Sentencing has been scheduled for June 21, 2013 at 10:30 a.m.
The 17-count information alleges that from February 2008 through September 2009, Jawed raised approximately $6.4 million from investors in a hedge fund he controlled called the Alpha Qualified Fund. Contrary to representations by Jawed, very little of the money was actually invested and most of the funds were diverted to unrelated purposes such as payment of finders’ fees and commissions, repayment of loans, payment of office expenses, and payment to prior investors.
Each count of mail and wire fraud carries with it a maximum sentence of 20 years, a fine of $250,000 and five years of supervised release. As part of Jawed’s plea agreement, both parties will recommend a period of 78 months in prison. In addition, Jawed agreed to $6.4 million in forfeiture, to the extent assets exist, and to make restitution to investors as ordered by the court.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Securities and Exchange Commission, which also filed a civil lawsuit against Jawed and others associated with him. The case was prosecuted by Senior Litigation Counsel and Assistant U. S. Attorney Allan M. Garten.
Ponzi Scheme IndictedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that GREGORY L. CRABTREE of Proctorville, Ohio, and JAMES M. DONNAN, III, of Athens, Georgia, have been charged in an eighty-five count indictment returned against them last week and unsealed today. The indictment charges the two men with operating an alleged pyramid or “Ponzi” scheme between 2008 and 2010 in the Middle District of Georgia and elsewhere.CRABTREE and DONNAN are scheduled to appear at 3:30 p.m. today before United States Magistrate Judge Charles Weigle for an initial appearance as to these charges.
Count one of the indictment charges conspiracy to commit wire and mail fraud in violation of United States Code Title 18, Sections 1349, 1341 and 1343. It carries a maximum sentence of twenty years imprisonment and a $250,000 fine upon conviction, to be followed by three years of supervised release.
Counts two through thirteen charge mail fraud in violation of Title 18, United States Code, Sections 1341 and 2 . Counts fourteen through thirty-six charge wire fraud in violation of Title 18, United States Code, Sections 1343 and 2. Each count of mail or wire fraud carries a maximum sentence of twenty years imprisonment and a fine of $250,000, together with three years of supervised release per count.
Counts thirty-seven through fifty-one each charge the unlawful transportation of interstate securities and carry a maximum sentence of five years imprisonment, a maximum fine of $250,000, and a term of supervised release of three years per count.
Count fifty-two charges conspiracy to launder the proceeds of unlawful activity in violation of Title 18, United States Code, Section 1956 (h) and carries a maximum sentence of up to twenty years imprisonment and a maximum fine of up to $500,000 or twice the value of the funds or financial instruments involved in the offense, whichever is greater, to be followed with up to three years of supervised release.
Counts fifty-three through seventy charge conducting financial transactions with unlawful proceeds of mail and wire fraud (money laundering) to promote the commission of that fraudulent activity in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(I) and 2. These counts each carry a maximum term of imprisonment of twenty years, a maximum fine of $500,000 or twice the value of the funds or financial instruments involved in the offense, whichever is greater, together with up to three years of supervised release.
Counts seventy-one through eighty-five charge engaging in monetary transactions with property criminally derived from wire and mail fraud in violation of Title 18, United States Code, Sections 1957 and 2. Each of these counts carries a maximum term of imprisonment of ten years, a maximum fine of $250,000 or twice the value of the criminally derived property that is the basis of the transaction, whichever is greater, together with up to three years of supervised release.
The indictment also has notice provisions that the United States intends to forfeit various properties and assets of the defendants pursuant to the provisions of Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(c).
The charges contained in the indictment are merely allegations of criminal activity by the government and the defendants are presumed innocent until and unless proven guilty.
The case was jointly investigated by Agents of the Federal Bureau of Investigation and the United States Internal Revenue Service, Criminal Investigation Division.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
Pittsburgh Man Charged in Johnstown with Trafficking HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Pittsburgh, Pa., has been indicted by a federal grand jury in Johnstown on a charge of possession with intent to distribute heroin, United States Attorney David J. Hickton announced today.
The indictment named Warren Charles Green, IV, 27.
According to the indictment presented to the court, on Apr. 5, 2013, Green possessed with the intent to distribute one kilogram or more of heroin.
The law provides for a maximum total sentence of life in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Somerset Turnpike Barracks, and the Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parker Drilling Company Resolves FCPA Investigation and Agrees to Pay $11.76 Million PenaltyRead the Press Release
Alexandria, Va. – Parker Drilling Company, a publicly listed drilling-services company, headquartered in Houston, has agreed to pay an $11.76 million penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for authorizing payment to an intermediary, knowing that the payment would be used to corruptly influence the decisions of a Nigerian government panel reviewing Parker Drilling’s adherence to Nigerian customs and tax laws. U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Acting Assistant Attorney General Mythili Raman of the Criminal Division announced the charges.
The investigation of Parker Drilling stemmed from the Justice Department’s Panalpina-related investigations, which previously yielded criminal resolutions with Panalpina and five oil and gas service companies and subsidiaries and resulted in more than $156 million in criminal penalties.
Today, the department filed a deferred prosecution agreement and a criminal information against Parker Drilling in U.S. District Court for the Eastern District of Virginia. The one-count information charges Parker Drilling with violating the FCPA’s anti-bribery provisions.
According to court documents, in 2001 and 2002, Panalpina World Transport (Nigeria) Limited, working on Parker Drilling’s behalf, avoided certain costs associated with complying with Nigeria’s customs laws by fraudulently claiming that Parker Drilling’s rigs had been exported and then re-imported into Nigeria. In late 2002, Nigeria formed a government commission, commonly called the Temporary Import (TI) Panel, to examine whether Nigeria’s Customs Service had collected certain duties and tariffs that Nigeria was due. In December 2002, the TI Panel commenced proceedings against Parker Drilling. The TI Panel later determined that Parker Drilling had violated Nigeria’s customs laws and assessed a $3.8 million fine against Parker Drilling.
According to court documents, rather than pay the assessed fine, Parker Drilling contracted indirectly with an intermediary agent to resolve its customs issues. From January to May 2004, Parker Drilling transferred $1.25 million to the agent, who reported spending a portion of the money on various things including entertaining government officials. Emails in which the agent requested additional money from Parker Drilling referenced the agent’s interactions with Nigeria’s Ministry of Finance, State Security Service, and a delegation from the president’s office. Two senior executives within Parker Drilling at the time reviewed and approved the agent’s invoices, knowing that the invoices arbitrarily attributed portions of the money that Parker Drilling transferred to the agent to various fees and expenses. The agent succeeded in reducing Parker Drilling’s TI Panel fines from $3.8 million to just $750,000.
Under the terms of the agreement, the Justice Department agreed to defer prosecution of Parker Drilling for three years. Parker Drilling agreed, among other things, to implement an enhanced compliance program and internal controls capable of preventing and detecting FCPA violations, to report periodically to the department concerning Parker Drilling’s compliance efforts, and to cooperate with the department in ongoing investigations. If Parker Drilling abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires.
In entering into the deferred prosecution agreement with Parker Drilling, the Justice Department took into account a number of considerations. Parker Drilling conducted an extensive, multi-year investigation into the charged conduct; engaged in widespread remediation, including ending its business relationships with officers, employees, or agents primarily responsible for the corrupt payments, enhancing scrutiny of high-risk third-party agents and transactions, increasing training and testing requirements, and instituting heightened review of proposals and other transactional documents for all the company’s contracts; otherwise significantly enhanced its compliance program and internal controls; and agreed to continue to cooperate with the department in any ongoing investigation of the conduct.
Parker Drilling also reached a settlement of a related civil complaint filed by the U.S. Securities and Exchange Commission (SEC) charging Parker Drilling with violating the FCPA’s anti-bribery, books and records, and internal controls provisions. As part of that settlement, Parker Drilling agreed to pay $3.05 million in disgorgement and $1.04 million in prejudgment interest relating to those violations.
The criminal case is being prosecuted by Assistant U.S. Attorney Jasmine Yoon of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section, and is being investigated by the FBI. The department’s Office of International Affairs assisted in the investigation. The department also acknowledges and is grateful for the assistance of the Crown Prosecution Service, the United Kingdom’s Metropolitan Police Service, and SEC.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Parker Drilling Company Resolves FCPA Investigation <br /> and Agrees to Pay $11.76 Million PenaltyRead the Press Release
Parker Drilling Company, a publicly listed drilling-services company, headquartered in Houston, has agreed to pay an $11.76 million penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for authorizing payment to an intermediary, knowing that the payment would be used to corruptly influence the decisions of a Nigerian government panel reviewing Parker Drilling’s adherence to Nigerian customs and tax laws. Acting Assistant Attorney General Mythili Raman of the Criminal Division and U.S. Attorney Neil H. MacBride for the Eastern District of Virginia announced the charges.
The investigation of Parker Drilling stemmed from the Justice Department’s Panalpina-related investigations, which previously yielded criminal resolutions with Panalpina and five oil and gas service companies and subsidiaries and resulted in more than $156 million in criminal penalties.
Today, the department filed a deferred prosecution agreement and a criminal information against Parker Drilling in U.S. District Court for the Eastern District of Virginia. The one-count information charges Parker Drilling with violating the FCPA’s anti-bribery provisions.
According to court documents, in 2001 and 2002, Panalpina World Transport (Nigeria) Limited, working on Parker Drilling’s behalf, avoided certain costs associated with complying with Nigeria’s customs laws by fraudulently claiming that Parker Drilling’s rigs had been exported and then re-imported into Nigeria. In late 2002, Nigeria formed a government commission, commonly called the Temporary Import (TI) Panel, to examine whether Nigeria’s Customs Service had collected certain duties and tariffs that Nigeria was due. In December 2002, the TI Panel commenced proceedings against Parker Drilling. The TI Panel later determined that Parker Drilling had violated Nigeria’s customs laws and assessed a $3.8 million fine against Parker Drilling.
According to court documents, rather than pay the assessed fine, Parker Drilling contracted indirectly with an intermediary agent to resolve its customs issues. From January to May 2004, Parker Drilling transferred $1.25 million to the agent, who reported spending a portion of the money on various things including entertaining government officials. Emails in which the agent requested additional money from Parker Drilling referenced the agent’s interactions with Nigeria’s Ministry of Finance, State Security Service, and a delegation from the president’s office. Two senior executives within Parker Drilling at the time reviewed and approved the agent’s invoices, knowing that the invoices arbitrarily attributed portions of the money that Parker Drilling transferred to the agent to various fees and expenses. The agent succeeded in reducing Parker Drilling’s TI Panel fines from $3.8 million to just $750,000.
Under the terms of the agreement, the Justice Department agreed to defer prosecution of Parker Drilling for three years. Parker Drilling agreed, among other things, to implement an enhanced compliance program and internal controls capable of preventing and detecting FCPA violations, to report periodically to the department concerning Parker Drilling’s compliance efforts, and to cooperate with the department in ongoing investigations. If Parker Drilling abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires.
In entering into the deferred prosecution agreement with Parker Drilling, the Justice Department took into account a number of considerations. Parker Drilling conducted an extensive, multi-year investigation into the charged conduct; engaged in widespread remediation, including ending its business relationships with officers, employees, or agents primarily responsible for the corrupt payments, enhancing scrutiny of high-risk third-party agents and transactions, increasing training and testing requirements, and instituting heightened review of proposals and other transactional documents for all the company’s contracts; otherwise significantly enhanced its compliance program and internal controls; and agreed to continue to cooperate with the department in any ongoing investigation of the conduct.
Parker Drilling also reached a settlement of a related civil complaint filed by the U.S. Securities and Exchange Commission (SEC) charging Parker Drilling with violating the FCPA’s anti-bribery, books and records, and internal controls provisions. As part of that settlement, Parker Drilling agreed to pay $3.05 million in disgorgement and $1.04 million in prejudgment interest relating to those violations.
The criminal case is being prosecuted by Trial Attorney Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jasmine Yoon of the U.S. Attorney’s Office for the Eastern District of Virginia, and is being investigated by the FBI. The department’s Office of International Affairs assisted in the investigation. The department also acknowledges and is grateful for the assistance of the Crown Prosecution Service, the United Kingdom’s Metropolitan Police Service, and SEC.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in San Francisco against Mohammed Rezaian, of Novato, Calif. Rezaian is the 30th individual to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Rezaian conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Francisco and San Mateo counties, Calif . Rezaian was also charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs, and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others. According to court documents, a forfeiture allegation was also included in the charges against Rezaian.
The department said Rezaian conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Francisco and San Mateo counties beginning as early as July 2008 and continuing until about January 2011.
“As a result of this investigation, the Antitrust Division has thus far filed charges against 30 real estate investors in Northern California for their illegal activity at foreclosure auctions,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division will vigorously pursue the perpetrators of these fraudulent and anticompetitive schemes.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Francisco and San Mateo County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.
“Not only is bid rigging at public foreclosure auctions illegal, it also severely undermines the integrity of a fair and competitive marketplace,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI will continue to investigate and pursue those who commit fraudulent anticompetitive practices at foreclosure auctions and work with those who have fallen victim to such selfish crimes.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco office and the FBI’s San Francisco office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco office at 415-436-6660 , visit www.justice.gov/atr/contact/newcase.htm, or call the FBI tip line at 415-553-74 00.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were
subsequently dismissed on the government’s motion.**
Naschitti, N.M., Man Pleads Guilty to Federal Firearm Charge Related to A Shooting at the Gallup Indian Medical CenterRead the Press Release
ALBUQUERQUE – Nathan Madison Coleman, 19, an enrolled member of the Navajo Nation who resides in Naschitti, N.M., pleaded guilty this morning to discharging a firearm during and in relation to a crime of violence under a plea agreement with the U.S. Attorney’s Office. The offense to which Coleman entered his guilty plea requires that Coleman be sentenced to at least ten years in prison.
Coleman was arrested on Jan. 22, 2013 based on a five-count indictment charging him with assault resulting in serious bodily injury; assault with a dangerous weapon; using a firearm during and in relation to a crime of violence; and two counts of possession of a stolen firearm. According to the indictment, on March 12, 2012, Coleman assaulted a man by shooting him with a firearm and caused the victim serious bodily injury. It also alleges that Coleman stole two firearms on Feb. 28, 2012.
During this morning’s proceedings, Coleman pled guilty to Count 3 of the indictment, charging him with using and carrying a firearm in relation to a crime of violence. In entering his guilty plea, Coleman admitted shooting the victim, a 25-year-old Navajo man, in the parking lot of the Gallup Indian Medical Center at 8:00 p.m. on March 12, 2012. Coleman shot the victim because he believed that the victim was disrespectful of his family when they exchanged “words” in the lobby of the Gallup Indian Medical Center. Coleman also admitted using a stolen firearm to shoot the victim.
Coleman has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of the plea agreement, the remaining four counts of the indictment will be dismissed after Coleman is sentenced.
This case was investigated by the Gallup office of the FBI and the Gallup Police Department, and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Multifest Executive Sentenced to Nearly 2 Years in Federal Prison for Income Tax FraudRead the Press Release
Starks failed to report more than half a million dollars of income on her taxes
CHARLESTON, W.Va. –A former Charleston festival executive director who failed to report more than half a million dollars of income on her taxes was sentenced today to 21 months in federal prison on income tax fraud charges, announced U.S. Attorney Booth Goodwin. Deborah S. Starks, 55, of Cross Lanes, W.Va., previously admitted that she filed a false tax return in connection with an embezzlement scheme that drained more than $300,000 from MultiCultural Festival of WV, Inc. (“MultiFest”), a Charleston-based non-profit organization.
U.S. Attorney Booth Goodwin said, "Ms. Starks failed to report more than half a million dollars of income on her taxes. More than $300,000 of that unreported income was money she stole from Multifest.”
Goodwin continued, “Stealing $300,000 from a small business or charity could easily put that organization out of business. That's why my office has focused on investigating and prosecuting cases like these, to protect small businesses and charities and to send a clear message that stealing from them won’t be tolerated."Starks was the treasurer of MultiFest at the time of the scheme. MultiFest sponsors a music, arts and crafts, and dance festival held annually in Charleston. As treasurer, Starks was in charge of revenue and expenses for MultiFest and maintained the organization’s bank accounts.
Starks admitted that beginning in or about 2005 and continuing until 2010, she embezzled approximately $306,000 from MultiFest. She also admitted additional unreported taxable income of approximately $200,000. Starks further admitted that she wrote personal checks to herself and to other people, withdrew cash in the form of checks, and made ATM transactions from MultiFest bank accounts during the scheme. Starks also admitted that the embezzled funds were used primarily to support her personal gambling activities.
In addition to the embezzlement scheme, the defendant admitted that she prepared, signed and filed a joint U.S. Individual Income Tax Return for each of the calendar years 2005, 2006, 2007, 2008, 2009 and 2010 and did not report the embezzled funds as income.
The Court ordered Starks to pay restitution to MultiFest in the amount of $306,872.04 and the Internal Revenue Service (IRS) in the amount of $128,626.
The sentence was imposed by United States District Judge John T. Cophenhaver, Jr.
This matter was investigated by the IRS. Assistant United States Attorney Eumi L. Choi handled the prosecution.
This case was prosecuted as part of the United States Attorney’s Office for the Southern District of West Virginia’s Small Business Protection Initiative. U.S. Attorney Booth Goodwin announced the Small Business Protection Initiative in November 2010. Small Business Protection is a key initiative of the U.S. Attorney’s Office for the Southern District of West Virginia that focuses on the prosecution of individuals who defraud small West Virginia businesses located in the Southern District.