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Monday 25 February 2013
Union County Man Sentenced on Methamphetamine ConspiracyRead the Press Release
On February 22, 2013, Charles J. Brimm, 25, of Anna, IL, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Brimm, who had previously pled guilty to the methamphetamine charge, was sentenced to 70 months in prison, 4 years of supervised release, and fined $300. The offense occurred between 2010, and March 12, 2012, in Union, Jackson, and Saline Counties. Evidence at the plea and sentencing hearing established that Brimm was involved with others in the manufacture of methamphetamine. During the conspiracy, Brimm obtained over 100 grams of pseudoephedrine for the purpose of manufacturing methamphetamine. Two additional persons charged in this indictment have pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration. The Union County State’s Attorney’s Office also assisted during the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Two Sentenced for Attempted Smuggling of Assault Rifle MagazinesRead the Press Release
LAREDO, Texas – Julio Cesar Flores-Martinez, 47, and Francisco Padilla-Perez, 41, both Mexican nationals living in Nuevo Laredo, Mexico, have been ordered to prison for their roles in attempting to smuggle 652 assault rifle magazines into Mexico, United States Attorney Kenneth Magidson announced today.
Visiting United States District Judge Keith P. Ellison ordered Flores-Martinez and Padilla-Perez to serve sentences of 46 and 50 months in federal prison, respectively. As illegal aliens, both are expected to face deportation proceedings following release from prison. In sentencing the pair, Judge Ellison commented that “both of these defendants have caused me great unease.”
In April 2012, Special agents with Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted an undercover operation in which they posed as assault rifle magazine dealers, willing to sell the items for illegal export into Mexico. Padilla-Perez contacted the agents and placed his order for 650 high-capacity AK-47 assault rifle magazines which he said he wanted to smuggle into Mexico for which he agreed to pay $19,500 in cash. On April 19, 2012, he met with the undercover agents at a parking lot in Laredo. He showed them the money and told the agents he had already secured a Mexican truck driver who was going to smuggle the magazines into Mexico in a semi-tractor. Flores-Martinez, the Mexican truck driver, had arrived at the same parking lot at Padilla-Perez’s request and was waiting for the hand-off.
Padilla-Perez inspected the contents of nine suitcases brought by the agents, which were packed with the 652 magazines. He and the agents then walked over to Flores-Martinez who received the suitcases and hid them in the cab of his semi-tractor. Padilla-Perez handed the undercover agents a white plastic bag containing $19,500 cash. Flores-Martinez ultimately drove to one of the international bridges in Laredo where the items were discovered, and he was subsequently arrested.
At sentencing today, Flores-Martinez maintained Padilla-Perez promised to pay him $1,500 for smuggling the merchandise into Mexico.
Both men have remained in federal custody since the day of their arrest where they will remain pending transfer to a U.S Bureau of Prisons facility to be determined in the near future.
The matter was investigated by HSI and ATF in conjunction with the Laredo Police Department, Border Patrol, Customs and Border Protection and the Department of State. Several police officers and Border Patrol agents have been cross-designated as ATF task force officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Homero Ramirez prosecuted the case.
Treasure Coast Tax Return Preparer Sentenced to 42 Months in Prison for Preparing False Income Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that Mary Ann Richard, of Ft. Pierce, Florida, was sentenced today on charges of assisting and advising in the preparation and presentation of 16 fraudulent income tax returns to the IRS, in violation of Title 26, United States Code, Section 7206(2), and 2 counts of filing false personal income tax returns, in violation of Title 26, United States Code, Section 7206 (1). U.S. District Judge Donald L. Graham sentenced Richard to 42 months in prison, to be followed by 2 years of supervised release. In addition, the defendant was ordered to pay the United States $183,026.00 in restitution.
According to the Indictment and factual basis at the time of plea, from about January 2010 through April 2010, defendant Richard was employed by JB&L Tax Service, Inc, a tax return preparation business located in Fort Pierce, Florida. From July 2010 through March 2011, defendant Richard owned and operated M2 Financial Services, a tax return preparation business located in Fort Pierce, Florida. At these businesses, Richard met with taxpayers and prepared tax returns as either an employee of JB&L Tax Services, Inc., or as an owner and operator of M2 Financial Services. Richard then assisted in the preparation and presentation to the IRS of income tax returns, knowing that these returns contained materially false information. Specifically, Richard filed false tax returns for others which included false information regarding wages, business losses, dependents, education credits and child care expenses. Richard also filed false personal tax returns (Forms 1040) for tax years 2009 and 2010 which included false information regarding employer, wages, business expenses, and personal deductions.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Adam C. McMichael.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. Petersburg Man Sentenced to 14 Years in Prison for Using A Computer to Solicit Sex with Four-Year-Old ChildRead the Press Release
Tampa, FL - U.S. District Judge Elizabeth A. Kovachevich sentenced Raymond Roland Collette (40, St. Petersburg) last week to 14 years in federal prison for using his computer to solicit and arrange for sex with a four-year-old child. The court also ordered Collette to forfeit the computer he used to commit the offense. Collette pleaded guilty on November 20, 2102.
According to court documents, between March 2012 and July 2012, Collette posted an advertisement on craigslist seeking a person that would allow him to engage in acts related to his sexual fetish involving shoes. Collette began communicating online with a citizen identified as “KK.” During the chats, “KK” discussed that he had a girlfriend with a four-year-old daughter, identified as “C.” Collette then directed his attention to the child and began discussing his desires to obtain custody of “C,“ and engage in sex acts with her. Once Collette turned the chat toward sex with the child, “KK” alerted law enforcement. Subsequently, Collette unknowingly continued his conversations with an undercover detective. During the online conversations, Collette suggested that he and “KK” swap children for sexual purposes. Collette also chatted about how he would enjoy watching the children engage in sex acts with each other.
This case was investigated by the Pinellas County Sheriff's Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) as part of their joint effort on the Internet Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Texas Couple Sentenced in Bankruptcy Fraud CaseRead the Press Release
HOUSTON – Michael Giventer, 53, formerly of Brownsville, has been ordered to prison for five years following his conviction of conspiracy to commit bankruptcy fraud, United States Attorney Kenneth Magidson announced today. He pleaded guilty to the charge in Spring 2012, along with his wife, Florida resident Julia Shavabskaya, 40.
Today, U.S. District Judge Vanessa D. Gilmore handed Giventer a term of imprisonment of 60 months which will be followed by three years of supervised release. Shavabskaya was sentenced earlier this year to a term of six months in federal prison followed by six months of home confinement. She will also serve three years of supervised release. Both were further ordered to restitution in the amount of $9,106,606.15.
From on or about Aug. 27, 2002, and continuing to July 2010, Giventer caused the incorporation of two business entities as holding companies to receive income from clinics providing various forms of health care services to individuals who were covered by Workers’ Compensation insurance. Those businesses were Ambucare Inc. and Open Diagnostic Imaging Inc. located in the Brownsville area. Ownership of both companies was placed solely in the name of Shavabskaya. Through these two companies, Giventer received income from a number of these clinics, such as Valley Center for Pain and Stress Management, Functional Pain Center, Palladium for Surgery and Valley Comprehensive Pain Management.
On Nov. 4, 2005, Giventer filed for bankruptcy under chapter 7 in the Southern District of Texas. During the proceedings, Giventer was required to file, under penalty of perjury, various schedules consisting of assets, debts, liabilities and a statement of financial affairs in which he was required to disclose his income, debts, property and transfers of property, among other things. In some of the documents, Giventer indicated he did not own an interest in Ambucare, Open Diagnostic Imaging and other properties and assets when in truth and in fact, he controlled, managed and received income from these entities and made all decisions about how their income would be distributed. Shavabskaya falsely testified she owned the companies and that Giventer did not own or operate them. Additionally, both Giventer and Shavabskaya knew and falsely denied under oath any ownership interest in these entities in order to deceive, frustrate and prevent creditors and the bankruptcy trustee from identifying and collecting assets as part of the bankruptcy estate to be distributed for the benefit of creditors.
This case was jointly investigated by the FBI and the Department of Health and Human Services. The case is being prosecuted by Assistant United States Attorney Quincy L. Ollison.
South Carolina Ambulance Company to Pay U.S $800,000<br /> to Resolve False Claims AllegationsRead the Press Release
Williston Rescue Squad Inc. has agreed to pay the United States $800,000 to resolve allegations that it violated the False Claims Act by making false claims for payment to Medicare for ambulance transports, the Justice Department announced today. Williston, based in Williston, S.C., provides ambulance transport services in the southwestern part of South Carolina.
Medicare is a federally-funded health care program that is intended to provide basic medical insurance to people over the age of 65. Medicare reimburses providers only for non-emergency ambulance transports if the patient transported is bed-confined or has a medical condition that requires ambulance transportation. The settlement resolves allegations that Williston billed Medicare for routine, non-emergency ambulance transports that were not medically necessary and that Williston created false documents to make the transports appear to meet the Medicare requirements.
“Billing Medicare for unnecessary ambulance transports contributes to the soaring costs of health care,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division. “The Department of Justice is committed to pursuing companies that waste limited Medicare funds.”
“Medicare fraud is stealing, and it is crippling America’s health care system. We have doubled the number of attorneys working these cases in South Carolina. Take notice, if you are bilking the Medicare system designed to support our elders, we are working to find you. For the honest service providers, which is a greater majority of the community, you can report fraud at 1-800-MEDICARE,” said William N. Nettles, U.S. Attorney for the District of South Carolina.
The settlement resolves a lawsuit filed by Sandra McKee under the qui tam, or whistleblower provisions, of the False Claims Act. McKee is a clinical social worker at a facility that regularly received patients transported by Williston’s ambulances. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. Ms. McKee will receive $160,000 as her share of the government’s recovery.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
The United States’ investigation was conducted by the U.S. Attorney’s Office for the District of South Carolina, the Justice Department’s Civil Division, and the U.S. Department of Health and Human Services, Office of the Inspector General. The claims settled by this agreement are allegations only; there has been no determination of liability.
The False Claims Act suit was filed in the U.S. District Court for the District of South Carolina and is captioned United States ex rel. McKee v. Williston Rescue Squad, Inc. , No. 11-CV-00186 (D.S.C.).
Sarcoxie School Board Member Charged with Possessing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a member of the Sarcoxie, Mo., school board was charged in federal court today with possessing child pornography.
John R. Lewis, 67, of Sarcoxie, was charged in a criminal complaint filed in the U.S. District Court in Springfield with possessing child pornography. Lewis was arrested without incident prior to Thursday night’s school board meeting and remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s federal criminal complaint, Missouri State Highway Patrol troopers contacted Lewis as part of their investigation into allegations that he had exposed himself to a group of high school students who were working for Lewis on his farm outside of Sarcoxie. The troopers obtained a search warrant for Lewis’s residence and seized two desktop computers, a laptop computer and electronic storage devices.
Investigators determined that the computers contained 19 multimedia files of child pornography and 113 images of suspected child pornography. The multimedia files and images depicted children as young as five years old.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Missouri State Highway Patrol and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Rio Bravo Man Who Provided Assault Rifles to Mexican Gangs Sentenced to PrisonRead the Press Release
LAREDO, Texas – Silverio Venegas Jr., 37, of Rio Bravo, has been sentenced to serve a total of 51 months in prison, United States Attorney Kenneth Magidson announced today.
An investigation into suspicious purchases at local gun stores by the Bureau of Alcohol, Tobacco, Forearms and Explosives (ATF) led to the discovery that Venegas purchased an AK-47 rifle, an AR-15 rifle and an AR-15 pistol from a local gun store in Laredo between Dec. 17-30, 2011. Agents confirmed that Venegas had also listed a prior address as his current residence, also a federal violation, and eventually encountered Venegas. In an interview with ATF agents, Venegas admitted he was hired by someone from Mexico who paid Venegas to buy the three firearms. Venegas was driven to the store each time and purchased as specific model, make and caliber of firearm.
The three firearms were later discovered at crime scenes in Mexico. The AR-15 pistol, which is the pistol version of the AR-15 assault rifle, was found less than a month after its purchase in Nuevo Laredo, Mexico, after a shootout between a Mexican Army patrol and gunmen. According to Mexican reports obtained by ATF, several gunmen traveling in six vehicles opened fire on the soldiers who return their fire. Five Mexican soldiers were wounded. One soldier and four gunmen died of their injuries in the exchange. The two rifles Venegas purchased were found a crime scene in Saltillo, Mexico.
Venegas later pleaded guilty to three charges of making false statements on federal firearms forms 4473 falsely stating the firearms were for him when they were actually for unknown persons in Mexico. Today, United States District Judge Keith P. Ellison handed Venegas three 51-month-terms on each of the three counts, to be served concurrently, related to the purchase of two assault rifles and one assault pistol. He was further ordered to serve a three-year-term of supervised release after completion of the prison sentences.
The matter was investigated by the ATF in conjunction with the Laredo Police Department and the United States Border Patrol. Several police officers and Border Patrol agents have been cross-designated as ATF Task Force Officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Homero Ramirez prosecuted the case.
Professional Counselor Sentenced for $1.5 Million Conspiracy to Illegally Distribute Prescription Drugs at Carthage ClinicRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a licensed professional counselor at a Carthage, Mo., clinic was sentenced in federal court today for her role in conspiracies to illegally distribute more than $1.5 million in prescription drugs and to engage in money laundering.
Tammy L. Neil, 43, of Carthage, was sentenced by U.S. District Judge Richard E. Dorr to 12 months and one day in federal prison without parole and ordered to pay a $10,000 fine. The court also ordered Neil to forfeit to the government a 2007 Jaguar, a 1966 Piper airplane and $10,000, which is a substitute asset for a 2008 Cadillac Escalade, all of which was property that was purchased with the proceeds of her criminal conduct. The court also ordered Neil to forfeit to the government an additional $200,000, which represents the proceeds received in exchange for the distribution of controlled substances.
Neil pleaded guilty on July 18, 2012 to her role in a conspiracy to illegally distribute phentermine from Jan. 1, 2005, through March 26, 2008. Neil also admitted that she participated in a conspiracy to engage in money laundering during the same time frame by aiding and abetting others to conduct financial transactions that involved the proceeds of the illegal distribution of prescription drugs. Between 2005 and 2008, Neil and her former husband (now deceased), Dr. John Freitas, deposited more than $1.5 million into several bank accounts.
Neil and Freitas, a doctor of osteopathic medicine, owned and operated Complete Quick Care Clinic, 2232 S. Garrison, Carthage. Freitas was primarily in charge of the health care aspects of the clinic, while Neil managed the day to day operations of the clinic and ran the weight loss side of the clinic. As a part of the weight loss clinic, Neil was responsible for seeing more than half of all the clinic patients every day. Neil directed her employees to weigh the patients, chart their weight, and then sell the patients phentermine – which patients referred to as “synthetic meth” – as part of the weight loss protocol.
Phentermine is an amphetamine-based controlled substance often used to assist in weight loss. As a licensed counselor, Neil was not authorized to prescribe or dispense any controlled substance, including phentermine. Therefore, her patients received phentermine outside the scope of professional practice and not for a legitimate medical purpose.
This case was prosecuted by Assistant U.S. Attorneys Randall D. Eggert and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, the DEA Diversion Division, IRS-Criminal Investigation, the Carthage, Mo., Police Department and the Missouri State Highway Patrol.
Prince George’s County Armed Career Criminal Sentenced to 18 Years in Prison After Pleading Guilty to Gun ChargesRead the Press Release
Stole the Identities of Doctors Who Applied for Fellowships at Johns Hopkins Hospital Where His Girlfriend WorkedGreenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Marco A. Williams, age 34, of Clinton, Maryland, today to 18 years in prison, followed by five years of supervised release, after Williams pleaded guilty to two counts of being a felon in possession of a firearm. Chief Judge Chasanow found that Williams is an armed career criminal based on at least three previous violent crime or drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Williams’ guilty plea, on August 20, 2009, Williams was involved in a car accident. Prince George’s County Police officers responding to the accident saw the handle of a .40 caliber gun sticking out from under the driver’s seat. Officers recovered the gun and 14 baggies of crack cocaine found during a search of the vehicle in a fake rock in the driver’s side door compartment. A later search of Williams’ residence recovered 10 grams of crack cocaine, 49.24 grams of ecstasy, 75.52 grams of marijuana, $1,084 in cash, $3,000 in blank money orders and a 12-gauge shotgun. Williams had previously been convicted of a felony and was prohibited from possessing firearms. Williams remains detained.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George's County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Antonio J. Reynolds and William Moomau, who prosecuted the case.
Portland Man Sentenced for Felon in Possession of a FirearmRead the Press Release
PORTLAND, Ore. – James Rodney Grant, Jr., 36, of Portland, Oregon, was sentenced today by U.S. District Judge Michael W. Mosman to 70 months in prison and three years supervised release following his plea to being a felon in possession of a firearm.
The charges arose after Grant threatened an individual at a bar with a handgun. The police were called and located Grant leaving the scene in a vehicle. Grant tried to flee from the police, but he eventually crashed his vehicle and was arrested. The police found the handgun, a loaded .25 caliber semi-automatic pistol, on the route the defendant had traveled while he fled. Grant was prohibited from possessing firearms because of his prior felony convictions for delivery of a controlled substance, assault III and attempt to elude, robbery I, and assault IV (domestic violence).
This case was investigated by the Portland Police Bureau and ATF, and it was prosecuted by Assistant United States Attorney Fred Weinhouse.
Owner of Mental Health Facilities Sentenced to 168 Months in Prison in Connection with $63 Million Health Care Fraud SchemeRead the Press Release
A former owner of mental health facilities in Florida and North Carolina was sentenced today to serve 168 months in prison for his leadership role in a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Armando Gonzalez, 50, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to his prison term, Gonzalez was sentenced to serve three years of supervised release and ordered to pay 28,092,283 in restitution, which, under the terms of Gonzalez’s plea agreement, will be satisfied in part by seized assets including $987,000 in currency seized in July 2012 and Gonzalez’s mansion in Hendersonville, N.C.
On Dec. 17, 2012, Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.
According to court documents, HCSN operated community mental health centers at three locations in Miami-Dade County, Fla., and one location in Hendersonville. HCSN purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. A PHP is a form of intensive treatment for severe mental illness. According to court documents, HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not even provided.
Gonzalez orchestrated the HCSN fraud scheme, which centered on the recruitment and admission of patients who could not benefit from PHP services. In Miami, Gonzalez utilized patient recruiters to pay cash kickbacks in exchange for referrals from Assisted Living Facilities (ALF) patients who often suffered from conditions such as dementia and mental retardation. Once the unqualified patients were admitted to HCSN, Gonzalez’s employees would fabricate virtually every portion of the patients’ mental health medical records. The fake medical records were then utilized to support false billings to government sponsored health care benefit programs and to avoid detection by Medicare auditors.
In North Carolina, HCSN employees also routinely submitted false billing for patients watching movies, attending BBQs and, more commonly, patients who were not even present at the Miami and North Carolina facilities.
Gonzalez also admitted to his role in a money laundering scheme involving Psychiatric Consulting Network Inc. (PCN), a Florida corporation that was utilized by HCSN as a shell corporation to launder millions in health care fraud proceeds.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services that resulted in more than $28 million in payments.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and ten defendants have pleaded guilty. Alleged co-conspirators Wondera Eason and Paul Layman are scheduled for trial on March 11, 2013, before Judge Altonaga in Miami. Alleged co-conspirators Dr. Alina Feas, Dana Gonzalez and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. In support of the Medicare Fraud Strike Force, the FBI Criminal Investigative Division’s Financial Crimes Section has funded the Special Trial Attorney position.
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.
One More Sentenced in OCDETF CaseRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced that another member of a southwest Idaho meth trafficking conspiracy was sentenced today in federal court. The defendant, Juan Carlos Arredondo-Sicairos, 34, appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise to be sentenced for the crime of possession with intent to distribute in excess of 50 grams of methamphetamine. He was sentenced to 120 months in federal prison to be followed by five years of supervised release. He pleaded guilty on November 15, 2012.
According to court documents, Arredondo-Sicairos is a Mexican national from Durango, Mexico, who operated out of Delano, California. In October, 2011, he supplied methamphetamine to the co-conspirators distributing the drug in Idaho. Five members of the conspiracy have pleaded guilty and have been sentenced: Alfredo Dominguez-Villareal, Jorge Jimenez, Tanna Spencer, Hector Morales, and Cynthia Casillas.
Three co-defendants are awaiting sentencing: Nelson Fernando Garcia-Soto, a Mexican national, on April 9; and Delia Garcia-Pineda, of Boise, and Alonso Martinez, also a Mexican national, from Delano, California, on April 10.
Co-defendant Samuel Chavez, 32, of Boise, is set for trial on March 25. He is charged with conspiracy to distribute methamphetamine and use of a communication facility in furtherance of drug trafficking.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Boise Police Department and the Ada County Sheriff's Office. The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Old Saybrook Physical Therapist Is Sentenced, Agrees to Pay $328,828 to Resolve False Claims Act LiabiltyRead the Press Release
February 25, 2013The United States Attorney for the District of Connecticut announced that TODD ROBERTS, 47, of Old Saybrook, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to three years of probation for obstructing a federal audit. ROBERTS and his physical therapy practice, ROBERTS PHYSICAL AND AQUATICS THERAPY, also have entered into a civil settlement agreement with the government in which they will pay $328,828 to resolve allegations that they violated the False Claims Act.
According to court documents and statements made in court, on January 23, 2009, a Medicare contractor informed ROBERTS PHYSICAL AND AQUATICS THERAPY, located at 210 Main Street in Old Saybrook, that the contractor was performing an audit of the practice. ROBERTS instructed an employee to delay the audit by telling the contractor that medical records were stored at a nonexistent storage facility. ROBERTS then rented a storage unit at a local facility and used the delay to alter and augment patient records. Specifically, ROBERTS, and an employee at his direction, created and added patient progress notes when no notes had been created at the time of service. The notes made it appear as though Medicare beneficiaries had obtained direct, one-on-one service from a licensed physical therapist when, in fact, some of the services had been rendered by unlicensed auxiliary personnel.
On September 25, 2012, ROBERTS waived his right to indictment and pleaded guilty to one count of obstructing a federal audit.
The civil allegations against ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY involve improper billing to Medicare for physical and aquatic therapy services between April 2007 and March 2010. The Medicare program only pays for outpatient therapy services that are provided by qualified personnel. Personnel qualified to provide outpatient therapy services are limited to physicians, licensed physical therapists, and licensed physical therapy assistants. The Medicare program does not pay for physical therapy services provided by supportive personnel, such as physical therapy aides, athletic trainers or student trainees. In addition, Medicare regulations and policies make it clear that therapeutic procedures require direct, one-on-one contact between the licensed therapist and the patient.
The government alleges that ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY regularly billed Medicare for direct, one-on-one therapeutic procedures when such services were not provided. At the clinic, physical therapists and physical therapy assistants would routinely provide therapy services to multiple patients at the same time. Nevertheless, the services provided to each patient were billed as if the physical therapist or physical therapy assistant had provided direct, one-on-one care. For example, patients were routinely left alone to perform exercises in the aquatic therapy pool, with no direct, one-on-one contact with licensed personnel.
In addition, Medicare regulations and policies make it clear that physical therapy services must be thoroughly and accurately documented in the patients’ medical chart. Therapy services are only payable when the medical record consistently and accurately records the covered therapy services. The government alleges that ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY routinely failed to document their therapy services. This was particularly egregious during the first six months of its operation, when the clinic did not have any documentation at all showing that the services in question were actually provided.
To resolve their liability under the False Claims Act, ROBERTS AND ROBERTS PHYSICAL AND AQUATIC THERAPY will pay $328,828 for conduct occurring between April 5, 2007 and March 31, 2010.
In addition, ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY have entered into a six-year Integrity Agreement with the U.S. Department of Health and Human Services that is designed to ensure future compliance with the requirements of the Medicare program, including the proper rendering of therapy services and the submission of only valid claims to Medicare for payment.
In entering into the civil settlement agreement, ROBERTS AND ROBERTS PHYSICAL AND AQUATIC THERAPY did not admit liability.
Judge Underhill required ROBERTS, as conditions of his probation, to comply with the terms of the Integrity Agreement and to pay the entire $328,828.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services, the Federal Bureau of Investigation, and the Office of the Inspector General for the Department of Veterans Affairs. The case was prosecuted by Assistant United States Attorneys David J. Sheldon and Richard M. Molot, and Auditor Susan Spiegel.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Olathe Man Sentenced to Prison for Possessing More Than 12,000 Child Porn ImagesRead the Press Release
TOPEKA, KAN. – A man from Olathe, Kan., was sentenced today to four years in federal prison for possessing child pornography, U.S. Attorney Barry Grissom said. He also was ordered to pay a $12,500 fine.
James Christmas, 46, Olathe, Kan., pleaded guilty to one count of possessing child pornography. In his plea, he admitted he possessed more than 12,000 images and 26 videos of child pornography on computer media. The investigation began in September 2010 when his estranged wife told the Olathe Police Department that she found child pornography on computer media belonging to Christmas. Investigators obtained a search warrant and found the images. The National Center for Missing and Exploited Children identified more than 1,300 images of known child victims living outside of Kansas in Christmas’ collection.
Grissom commended the Olathe Police Department and Assistant U.S. Attorney Kim Martin for their work on the case.
Occupational Therapist Impersonator Sentenced to Prison for Mail Fraud and Identity TheftRead the Press Release
Orlando, FL - U.S. District Judge Roy Dalton sentenced James Lewis, a/k/a James Lee Lewis, (44, Kissimmee) today to five years and five months in federal prison for mail fraud and aggravated identity theft. Lewis pleaded guilty on December 18, 2012.
According to court documents, in March 2009, Lewis fraudulently obtained a temporary occupational therapist (OT) license from the Florida Department of Health. To obtain the temporary license, Lewis used a false name and Social Security Number, and fabricated his education credentials. Between March 2009 and July 2011, Lewis worked as an OT at various health care facilities in Central Florida and New Mexico, and received his wages using Electronic Funds Transfers. On January 17, 2013, Lewis’ bond was revoked after the government discovered that he had again applied to work as an occupational therapist in Central Florida, using fraudulent information.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Florida Department of Health’s Division of Medical Quality Assurance, Orlando Unlicensed Activity Office. It was prosecuted by Assistant United States Attorney David Haas.
North Hills Woman Pleads Guilty to Unlawfully Possessing OxycodoneRead the Press Release
PITTSBURGH, Pa, - A North Hills resident pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Kathryn Joyce, 30, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Joyce unlawfully possessed with intent to distribute 334 oxycodone 30 mg tablets on Jan. 11, 2012 when stopped by the Ross Township Police.
Judge Cercone scheduled sentencing for July 2, 2013. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Ross Township Police Department conducted the investigation that led to the prosecution of Joyce.
Ninth BMC Gang Member SentencedRead the Press Release
BOISE –Amando Garcia, Jr., a/k/a Amando Torres, a/k/a “Toro,” 29, was sentenced today to 96 months in prison for conspiracy to participate in a racketeering enterprise and attempted murder in aid of racketeering, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Garcia to serve five years of supervised release. He pleaded guilty to the charges on August 8, 2012.
According to the plea agreement, Garcia admitted that he conspired to commit racketeering acts, and that he committed the crime of attempted murder in aid of racketeering, all related to the Brown Magic Clica (BMC) gang, a Sureno street gang with members in the Districts of Idaho and Oregon. Garcia admitted that, on January 19, 2006, he was a passenger in a vehicle with several other BMC members which was traveling in Caldwell, Idaho. One of the BMC members fired several shots from a handgun at a passing vehicle, which the BMC members believed contained rival gang members. A man delivering newspapers was a passenger in the vehicle and was struck by one of the bullets. Garcia admitted that he contacted a witness to the shooting and told her not to cooperate with the police investigation.
Garcia also admitted that, on August 23, 2008, he fired a “Mini-14” .223 rifle and a Ruger .25 pistol towards another BMC gang member, striking him several times, with the intent to kill him. Garcia and other BMC members considered the victim and his family members to be enemies of BMC because members of the family testified at the trial of a BMC leader charged with murder in Payette County, Idaho. During his plea, Garcia admitted that BMC members were expected to engage in acts of violence towards witnesses in criminal investigations against BMC members, and against other BMC members who do not follow BMC rules. Garcia further 2 admitted that the attempted murder was committed for the purpose of gaining entrance to, or maintaining or increasing position in the BMC gang.
During the sentencing hearing, Garcia renounced his membership in the BMC gang, stating “I am no longer a gang member.” To date, eight co-defendants have been sentenced to federal prison for racketeering crimes related to the BMC gang. Mathew Grover a/k/a “Dreamin” was sentenced to 51 months in prison; Samson Torres a/k/a “Gremlin,” 70 months; Salvador Apodaca a/k/a “Bugz,” 60 months; Jessie Rodriguez a/k/a “Pelon,” 115 months; Adam Gomez “Lil Toro,” 60 months; Adelaido Gomez, a/k/a “Guy,” 125 months; Alfredo Castro a/k/a “Papos,” 168 months; and Juan Gonzalez, a/k/a “Chango,” 37 months.
Co-defendant Oscar Garcia a/k/a “Bubba,” a/k/a “Tiny,” pleaded guilty on January 18, 2013, to Conspiracy to Participate in a Racketeering Enterprise and Attempted Murder in Aid of Racketeering; sentencing is set for April 9 at the federal courthouse in Boise. Juan Jimenez a/k/a “Loco,” pleaded guilty on January 17, to Conspiracy to Participate in a Racketeering Enterprise; sentencing is set for April 8.
The federal racketeer influenced corrupt organizations (RICO) law prohibits individuals from participating, or conspiring to participate, in the conduct of an enterprise through a pattern of racketeering activity. An enterprise is defined as any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity. Racketeering activity is defined as specified criminal acts, including murder, arson, distribution of controlled substances, and intimidation and retaliation against witnesses.
The investigation, named “Operation Black Magic,” included the cooperative law enforcement efforts of the Treasure Valley Metro Violent Crime Task Force, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Ada County Sheriff’s Office, the Boise Police Department, the Caldwell Police Department, the Canyon County Sheriff’s Office, the Idaho Department of Corrections, the Malheur County Sheriff’s Office, the Meridian Police Department, the Nampa Police Department, the Nyssa Police Department, the Ontario Police Department, the Oregon State Police, and the U.S. Attorney's Office. The investigation is ongoing.
Nauman SentencingRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ANGELIA NAUMAN, age 52, of Zachary, Louisiana, was sentenced today by U.S. District Chief Judge Brian J. Jackson to a term of imprisonment of twenty-seven (27) months.
NAUMAN had previously pled guilty to bank fraud in connection with a multi-year scheme to defraud Industrial Cooling Tower Services, Inc. (“Industrial Cooling”) located in Greenwell Springs, Louisiana. While working as the company’s office manager from 2007 through late 2010, NAUMAN admitted to embezzling $437,941.73. To execute the scheme, the defendant drafted checks payable to herself and forged the signature of company owners. NAUMAN then made false entries into Industrial Cooling’s ledgers that intentionally created the false impression that the checks were for legitimate expenses and payable to legitimate vendors.
At today’s sentencing, the Court found that NAUMAN’s fraudulent scheme caused a loss to Industrial Cooling of $437,941.73 and ordered that she pay this amount in restitution. Following her release from imprisonment, NAUMAN will also be required to serve a two-year term of supervised release.
This investigation was conducted by United States Secret Service Special Agent Kevin Bodden. The case is being prosecuted by Assistant United States Attorneys Frederick A. Menner, JR.
Miami Pharmacy Owner Sentenced to 14 Years in Prison<br /> in $23 Million Health Care Fraud SchemeRead the Press Release
A co-owner and operator of three Miami discount pharmacies was sentenced today to 168 months in prison for his role in a health care fraud scheme that submitted more than $23 million in false claims to Medicare.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Jose Carlos Morales, 55, of Miami, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Morales was sentenced to serve three years of supervised release and to pay a $100,000 fine. A hearing to determine the amount of restitution Morales will pay has been scheduled for April 29, 2013.
On Dec. 6, 2012, Morales pleaded guilty in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay illegal health care kickbacks.
According to court documents, Morales was the co-owner of Pharmovisa Inc. and PharmovisaMD Inc., which operated a total of three pharmacies in Miami. Morales paid illegal health care kickbacks to co-conspirators in return for a stream of beneficiary information to be used to submit claims to Medicare and Medicaid. The beneficiaries who were referred to the pharmacies in exchange for kickback payments resided at assisted living facilities (ALFs) located in Miami. Morales and his alleged co-conspirators also paid illegal health care kickbacks to physicians in exchange for prescription referrals, which the pharmacies ultimately billed to Medicare.
Court documents also reveal that beginning in approximately 2007, drivers working for Morales’ pharmacies, at his direction, delivered “bingo cards” containing pop out medications to ALFs located throughout the Southern District of Florida. Morales instructed the drivers to pick up any unused “bingo cards” so that Morales pharmacy personnel could put the medications back into pill bottles. Unused and partially used medications were eventually re-billed to Medicare and Medicaid, and a majority of the previously submitted claims to Medicare and Medicaid were never reversed. Morales also instructed Morales pharmacy personnel to place unused and partially used medications into bottles to be sold directly to the general public from the “community” pharmacy shelves.
Morales and his alleged co-conspirators also engaged in sham financial transactions to facilitate and conceal the fraud schemes and the flow of fraud proceeds, according to court documents. In most instances, the sham transactions involved shell entities owned and/or controlled by Morales or his alleged co-conspirators.
According to court documents, Morales and his co-conspirators submitted and caused to be submitted approximately $23,367,755 in false and fraudulent claims to the Medicare and Florida Medicaid programs.
The case is being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William Parente of the Criminal Division’s Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
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, are 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.
Miami Pharmacy Owner Sentenced to 14 Years in Prison in $23 Million Health Care Fraud SchemeRead the Press Release
A co-owner and operator of three Miami discount pharmacies was sentenced today to 168 months in prison for his role in a health care fraud scheme that submitted more than $23 million in false claims to Medicare.
The sentence was announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Jose Carlos Morales, 55, of Miami, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Morales was sentenced to serve three years of supervised release and to pay a $100,000 fine. A hearing to determine the amount of restitution Morales will pay has been scheduled for April 29, 2013.
On Dec. 6, 2012, Morales pleaded guilty in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay illegal health care kickbacks.
According to court documents, Morales was the co-owner of Pharmovisa Inc. and PharmovisaMD Inc., which operated a total of three pharmacies in Miami. Morales paid illegal health care kickbacks to co-conspirators in return for a stream of beneficiary information to be used to submit claims to Medicare and Medicaid. The beneficiaries who were referred to the pharmacies in exchange for kickback payments resided at assisted living facilities (ALFs) located in Miami. Morales and his alleged co-conspirators also paid illegal health care kickbacks to physicians in exchange for prescription referrals, which the pharmacies ultimately billed to Medicare.
Court documents also reveal that beginning in approximately 2007, drivers working for Morales’ pharmacies, at his direction, delivered “bingo cards” containing pop out medications to ALFs located throughout the Southern District of Florida. Morales instructed the drivers to pick up any unused “bingo cards” so that Morales pharmacy personnel could put the medications back into pill bottles. Unused and partially used medications were eventually re-billed to Medicare and Medicaid, and a majority of the previously submitted claims to Medicare and Medicaid were never reversed. Morales also instructed Morales pharmacy personnel to place unused and partially used medications into bottles to be sold directly to the general public from the “community” pharmacy shelves.
Morales and his alleged co-conspirators also engaged in sham financial transactions to facilitate and conceal the fraud schemes and the flow of fraud proceeds, according to court documents. In most instances, the sham transactions involved shell entities owned and/or controlled by Morales or his alleged co-conspirators.
According to court documents, Morales and his co-conspirators submitted and caused to be submitted approximately $23,367,755 in false and fraudulent claims to the Medicare and Florida Medicaid programs.
The case is being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William Parente of the Criminal Division’s Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
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, are 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.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to 19 Years in Federal Prison for Drug TraffickingRead the Press Release
Escobedo-Gonzalez is Final Defendant Sentenced in OCDETF Case
BOISE – Jose Ramon Escobedo-Gonzalez, 35, a Mexican national, was sentenced today in United States District Court to 168 months in prison for conspiracy to distribute a controlled substance and 60 consecutive months for possession of a firearm in furtherance of drug trafficking, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Escobedo-Gonzalez to serve five years of supervised release after his prison term and forfeit numerous firearms. He pleaded guilty to the charges on March 21, 2012.
According to the plea agreement, beginning in September 2009 and continuing until mid-January 2011, Escobedo-Gonzalez and his co-defendants conspired to distribute more than five pounds of methamphetamine in Canyon County, Idaho. According to trial testimony, the organization brought pounds of methamphetamine into Idaho from surrounding states and distributed it throughout the Treasure Valley. During the investigation, law enforcement officers seized five pounds of methamphetamine, marijuana, numerous firearms, vehicles, and more than $30,000 in currency. According to the plea agreement, Escobedo-Gonzalez knowingly gave and received various firearms in exchange for receiving and distributing methamphetamine. Escobedo-Gonzalez further admitted he knowingly possessed various firearms for protection while engaged in drug transactions in furtherance of the conspiracy.
Co-defendants sentenced earlier include Mexican nationals Jorge Luis Cardoza, Lourdes Muro-Garcia, Diego Gomez-Lara, Antony Alegria Zedeno, Juventino Lara-Plancarte, and Fabian Nunez-Garcia; and Victor Chavez-Garcia, Leann Atkisson, Ronald Garcia, and Benjamin Prieto, all of Nampa, Idaho. The co-defendants received a combined total of over 75 years in prison.
In a separate but related case, Ana Reyes a/k/a Ana Gonzales, 25, Yolanda Yvette Salazar, 48, both of Nampa, and Nereida Lopez a/k/a Nereida Munoz, 30, of Caldwell, pleaded guilty in January 2013, to using a communication facility in furtherance of a drug offense. According to the plea agreements, the defendants admitted to using a cellular phone to make arrangements with Escobedo-Gonzalez to supply them with methamphetamine. The defendants each face up to four years in prison, a maximum fine of $250,000, and up to one year of supervised release. Sentencings are scheduled in April 2013.
“Appropriately, Mr. Escobedo-Gonzalez and his co-conspirators will spend lengthy terms in federal prison,” said Olson. “Methamphetamine trafficking and firearms are a dangerous combination for Idaho’s communities. We will continue to work closely with our federal, state and local law enforcement partners to ensure that those who bring this horribly addictive drug into our state and those who further their criminal activity with firearms are identified, prosecuted and sent to prison.”
The Organized Crime/Drug Enforcement Task Force (OCDETF) case, named “Operation Flamethrower,” is the result of a year-long, multi-agency investigation. Investigators and prosecutors from federal, state, and local agencies cooperated in the arrests and seizures. It included the cooperative law enforcement efforts of the Nampa Police Department, Drug Enforcement Administration, Canyon County Sheriff's Office, Canyon County SWAT team, Metro Violent Crimes Task Force, Idaho State Police, Caldwell Police Department, Ada County Sheriff's Office, Boise Police Department, and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Canyon County Prosecutor's Office, District 3 Probation and Parole, and the United States Attorney's Office.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Member of Philadelphia La Cosa Nostra Sentenced to 55 Months <br /> in PrisonRead the Press Release
Louis Fazzini was sentenced today to serve 55 months in prison for his participation in a racketeering conspiracy involving illegal gambling and theft from an employee benefit plan, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and John Brosnan, Acting Special Agent in Charge of the FBI’s Philadelphia Division.
Fazzini, 46, of Caldwell, N.J., was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Fazzini was sentenced to serve three years of supervised release following his prison term.
On Oct. 5, 2012, Fazzini pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. At the time of the plea colloquy, he admitted that, as a “made” member of the North Jersey crew of the Philadelphia LCN Family, he operated a sports bookmaking business and devised a fraudulent scheme to obtain health benefits through a “no show” job controlled by the LCN in furtherance of the racketeering conspiracy. As a “no show” employee, Fazzini performed no work or productive services, while still receiving health benefits.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
Member of Philadelphia La Cosa Nostra Sentenced to 55 Months in Prison for Racketeering ConspiracyRead the Press Release
PHILADELPHIA – Louis Fazzini, 46, of Caldwell, N.J., was sentenced today to
55 months in prison for his participation in a racketeering conspiracy involving illegal gambling and theft from an employee benefit plan. U.S. District Court Judge Eduardo C. Robreno also ordered Fazzini to serve three years of supervised release following his prison term.
On Oct. 5, 2012, Fazzini pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. At the time of the plea colloquy, he admitted that, as a “made” member of the North Jersey crew of the Philadelphia LCN Family, he operated a sports bookmaking business and devised a fraudulent scheme to obtain health benefits through a “no show” job controlled by the LCN in furtherance of the racketeering conspiracy. As a “no show” employee, he would perform no work or productive services, while still receiving health benefits.The case was investigated by the FBI, the Internal Revenue Service Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the Department of Labor Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations, and the Department of Labor Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Manhattan Doctor Pleads Guilty to $8.5 Million Medicare Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Dr. ROBERTO AYMAT, a medical doctor, pled guilty today in Manhattan federal court to participating in a scheme to defraud Medicare out of approximately $8.5 million through the use of fraudulent HIV/AIDS clinics in New York. As part of the scheme, AYMAT and others billed Medicare for medications that were never administered or that were administered but were medically unnecessary. He pled guilty before U.S. District Judge George B. Daniels. Three other participants in the scheme, Asmed Barrera, Augusto Guzman, and Jorge Rivero, previously pled guilty.
Manhattan U.S. Attorney Preet Bharara said: “Roberto Aymat used his medical license to perpetrate a multi-million dollar fraud on Medicare – a program that provides a lifeline to its beneficiaries and that is struggling financially to stay afloat. His exploitation of this vital, taxpayer-funded program was egregious and with his plea today, he has been held to account.”
According to the Complaint and the Indictment filed in this case:
AYMAT, along with Barrera, Guzman, Rivero, also a medical doctor, and others operated three medical clinics in New York City that purported to provide drug treatments to Medicare-eligible HIV/AIDS patients, but that were, in reality, healthcare fraud mills.
The defendants executed the fraudulent scheme by recruiting HIV/AIDS patients eligible for Medicare, and paying them kickbacks in exchange for signing on as patients at the clinics. The defendants then used these patients’ status as Medicare beneficiaries to submit claims for reimbursement to Medicare for drugs that had been prescribed to these patients. In fact, these medications were never purchased and never administered, or were administered, but were medically unnecessary.
From January 2007 to April 2009, AYMAT and his co-conspirators billed Medicare for more than 10 times the number of units of prescription drugs they actually purchased, defrauding the Medicare system of at least $8.5 million.
AYMAT, 44, a resident of Manhattan, pled guilty to conspiring to commit fraud in connection with a health care benefits program, and to committing healthcare fraud and mail fraud. He faces a penalty of up to 50 years in prison and is scheduled to be sentenced by Judge Daniels on June 18, 2013.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General, New York Region.
The prosecution is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Kan M. Nawaday and Jason H. Cowley are in charge of the prosecution.
Aymat, Roberto, et al. Indictment
Man Sentenced on Drug ChargesRead the Press Release
MOBILE, Ala. - Jakari Tywann Lewis, 38, of Mobile, was sentenced today in federal court to 15 months imprisonment on the charge of possession with intent to distribute crack cocaine. Lewis entered a guilty plea to the charge in October of 2012. Senior District Court Judge Charles R. Butler, Jr., imposed the sentence and ordered that Lewis serve a six year term of supervised release when he is released from the penitentiary. The judge also ordered that Lewis pay the special mandatory assessment of $100.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security. It was prosecuted by Gloria Bedwell in the United States Attorney’s Office in Mobile.
Macy Man Sentenced for AssaultRead the Press Release
United States Attorney Deborah R. Gilg announced that Wisdom P. Webster, age 29 of Macy, Nebraska, was sentenced in United States District Court in Omaha for Assault with a Dangerous Weapon. The Honorable Laurie Smith Camp, Chief Judge, sentenced Webster to 46 months in
prison. After his release from prison Webster will begin a 3 year term of supervised release.On January 7, 2012, Webster argued with the mother of his children at a bar in Walthill, Nebraska. After leaving the bar the two drove to a home within the Omaha Indian Reservation. They continued to argue before Webster hit and bit her. The bite resulted in the severance of the lower portion of her right ear lobe, a laceration to her eye lid, and bruises to her head and neck.
Local Businessman Convicted in $19+ Million Health Care Fraud SchemeRead the Press Release
HOUSTON - Joseph Edem, 53, of Richmond, has been convicted of conspiracy to commit health care fraud relating to medically unnecessary diagnostic testing and physical therapy, United States Attorney Kenneth Magidson announced today.
Edem was originally indicted with former doctor Donald Gibson II, 56, of Sugarland. That indictment alleged Gibson ordered, prescribed and authorized medically unnecessary diagnostic tests and other procedures which included allergy tests, pulmonary function tests, vestibular tests, urodynamic tests and physical therapy, among others. These services were then billed to Medicare and Medicaid for payment under Gibson’s billing number, according to the indictment.
From January 2007 through January 2012, Gibson allegedly caused more than $19.4 million in medical claims to the Medicare and Texas Medicaid Programs. As a result, Medicare deposited approximately $8.5 million into a bank account owned and controlled by Gibson.
Edem operated medical clinics under the names of other individuals to conceal his financial interest in the businesses. Edem admitted today that he conspired to cause the submission of false claims to the Medicare and Medicaid programs and share in the proceeds. Edem admitted he paid patient recruiters for referring Medicare/Medicaid beneficiaries and also paid Medicare beneficiaries for showing up at the medical clinics.
U.S. District Court Judge Lynne N. Hughes, who accepted the guilty plea today, has set sentencing for May 28, 2013, at which time Edem faces up to 10 years in federal prison, as well as a possible $250,000 fine.
The case against Gibson is pending. He is presumed innocent unless and until convicted through due process of law.
This case is the result of a joint investigation involving multiple federal and state agencies including agents and investigators of the Railroad Retirement Board, Secret Service, Drug Enforcement Administration, FBI, the Texas Attorney General’s Medicaid Fraud Control Unit and U.S. Department of Health and Human Services – Office of Inspector General. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Andrew Leuchtmann are prosecuting this case.
Lincoln Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Allen E. Overholtzer, age 35 of Lincoln, Nebraska, was sentenced on February 25, 2013, to 15 months in prison by United States District Judge Laurie Smith Camp, for failing to register as a sex offender. After his release from prison, Overholtzer will be required to serve a five year term of supervised release and be registered as a sex offender.
Overholtzer was required to register as a sex offender as a result of a conviction on two counts of third degree sexual assault in Lincoln, Nebraska. Overholtzer was registered at an address in Lincoln, Nebraska, but was found to be residing in Pueblo, Colorado.
This case was investigated by the United States Marshals Service.KC Business Owners Indicted for Defrauding Debt-stressed ClientsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owners and operators of a Kansas City, Mo., firm that promised to help financially-strapped clients get out of debt have been indicted by a federal grand jury for defrauding their clients, causing some of them to lose their homes and vehicles.
John Lee Norris, 42, and Julie Tina Hatcher, 37, both of Kansas City, were charged in a 21-count indictment that was returned under seal by a federal grand jury on Feb. 19, 2013. The indictment was unsealed and made public today upon the arrests and initial court appearances of Norris and Hatcher.
According to the indictment, Norris and Hatcher operated Reaper Investment Partners, LLC; in August 2011 they formed Death Productions LP. Between August 2010 and April 2012, the indictment alleges, Norris and Hatcher participated in a conspiracy to defraud homeowners and other debtors who were in financial distress (as well as their victims’ lenders and the Federal Housing Administration).
Norris and Hatcher allegedly recruited and targeted homeowners and others who were in financial difficulties with promises that they would be rescued from their financial problems, including foreclosure. Norris and Hatcher allegedly told victims that Reaper Investment Partners (RIP) would refinance the homeowners’ existing mortgages for a lower amount and at an interest rate of three percent.
As part of their scheme, the indictment says, RIP would control title to the homeowners’ properties. The homeowners would stop making payments to their lenders and instead make their monthly payments to RIP. The homeowners gave Norris and Hatcher power of attorney. Homeowners did not communicate with their lenders, the indictment says, even when they received telephone calls, late notices and foreclosure notices from their lenders. Instead, homeowners forwarded the notices and other documents to Norris and Hatcher. When homeowners contacted Norris and Hatcher to report that they had received notice that their homes were being foreclosed, the defendants reassured them by telling them not to worry, that was part of the process.
Norris and Hatcher allegedly told some of their client-victims that one or both of them were lawyers, had legal experience, or were able to practice law. They allegedly said that RIP would draft, serve, file, and record legal forms, pleadings, and other documents and would conduct necessary legal processes, contact the relevant parties, and implement administrative procedures. Norris and Hatcher allegedly mailed documents to the homeowners’ lenders, demanding the lenders “cease and desist” collection activities.
Norris and Hatcher also allegedly told individuals who were in financial difficulties due to credit card debt, vehicle loans, and other debt, that they would refinance the debt for a lower amount and interest rate and lower their monthly payments. These clients, likewise, would stop making payments to their lenders and instead make their monthly payments to RIP.
The federal indictment refers to victims from Lee’s Summit, Mo., St. Joseph, Mo., Gardner, Kan., Paducah , Ken., and North Wales, Penn. Victims and lenders suffered losses as a result of the conspiracy, including the loss of homes and vehicles (a specific dollar amount of the total loss is not identified in the indictment).
In addition to the conspiracy, Norris and Hatcher are charged together with nine counts of mail fraud and 10 counts of wire fraud.
Hatcher is also charged with one count of Social Security disability fraud. Hatcher allegedly failed to report her work activities and income while she received Social Security disability insurance benefits from August 2010 through April 2012.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Senior Litigation Counsel Linda Marshall and Assistant U.S. Attorney Brian P. Casey. It was investigated by the FBI, the U.S. Secret Service, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Social Security Administration – Office of Inspector General, the Johnson County, Kan., District Attorney’s Office and the Kansas City, Mo., Police Department.
Justice Department to Monitor Elections in Illinois and KansasRead the Press Release
The Justice Department announced today that the Civil Rights Division will monitor elections on Feb. 26, 2013, in Cook County, Ill., and Seward County, Kan. The monitoring will ensure compliance with the Voting Rights Act of 1965 and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group. In addition, the act requires certain covered jurisdictions to provide language assistance during the election process. Cook County is required to provide language assistance to its Hispanic, Chinese and Asian Indian voters, and Seward County is required to provide language assistance to its Hispanic voters.
Justice Department personnel will monitor polling place activities in Cook and Seward Counties. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from the Office of Personnel Management, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Houston Man Sentenced for Grocery Store Bank RobberyRead the Press Release
HOUSTON – A Houston man indicted for a string of bank robberies in Houston during the summer of 2012 has been ordered to federal prison, United States Attorney Kenneth Magidson announced today. Kyle Lee Puglisi, 27, was charged with multiple counts of bank robbery after allegedly robbing five banks located in various grocery stores throughout the Houston area between July and September of this year. He pleaded guilty Monday, Dec. 10, 2012.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Puglisi a 63-month sentence. At the hearing, additional testimony regarding personal pressures facing Puglisi at the time of the robberies was presented in a plea for leniency from the court. However, the court, citing the fact his crimes involved five separate banks not just the one to which he pleaded guilty, rejected this plea, and handed down the maximum sentence. He was further ordered to pay restitution and to serve a three-year-term of supervised release following completion of the prison term.
Puglisi admitted that on July 2, 2012, he robbed the First Convenience Bank located inside a Kroger grocery store in north Houston. Late that morning, Puglisi entered the grocery store and began shopping. He placed several grocery items from the shelves into a grocery cart, then pushed the grocery cart toward the bank. He approached the teller, produced a revolver from the waistband of his pants and stated, “DON'T MAKE IT OBVIOUS.” The teller, fearing for his life, pulled some cash and gave it to Puglisi. Puglisi then fled the grocery store in an unknown direction, leaving the groceries and cart near the teller counter. Investigators were able to identify Puglisi as the person responsible for the robbery from evidence collected at the scene.
Puglisi was apprehended by authorities on Sept. 19, 2012, shortly after committing another robbery of the First Community Credit Union in an HEB grocery store in Spring. A small amount of U.S. currency and a pellet gun were also seized at the time of Puglisi’s arrest.
Puglisi will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI. Assistant U.S. Attorney Richard D. Hanes is prosecuting the case.
Hartford Man Involved in Crack Distribution Ring Sentenced to 21 Months in Federal PrisonRead the Press Release
February 25, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that HASSAN MUHAMMAD, also known as “Hadi,” 24, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 21 months of imprisonment, followed by one year of supervised release, for his role in a Hartford crack cocaine distribution ring.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, Joshua Easterling and Kyshiifa Boyd distributed large quantities of crack cocaine in Hartford’s lower Vine Street area, as well as in other locations in Hartford and East Hartford. In February 2012, MUHAMMAD was intercepted over a court-authorized wiretap ordering a distribution quantity of crack cocaine from Easterling.
The Hartford Police Department has identified MUHAMMAD as being a member of the AVE street gang.
On November 21, 2012, MUHAMMAD pleaded guilty to one count of using a telephone to facilitate a drug trafficking felony offense.
Easterling and Boyd have also pleaded guilty and await sentencing.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Greensburg Man Sentenced to Prison for Loan Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County has been sentenced in federal court to two years imprisonment, to be followed by three years of supervised release, on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Thomas Lee Kemerer, 65, of Greensburg, Pa.
According to information presented to the court, during 2003, James Michael Conde and Kemerer made false statements in connection with their applications for a $1 million loan from Sky Bank and a $400,000 loan from K & K Company. The loans were supposed to be obtained for use in a business known as Precision Powdercoating & Graphics. However, Conde and Kemerer used some of the loan proceeds for their own living expenses and personal debts. Conde and Kemerer defaulted on those fraudulently acquired loans, resulting in losses of approximately $1.7 million to Sky Bank and K & K Company.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Kemerer.
Georgia Man Admits to Methamphetamine PossessionRead the Press Release
Law enforcement agents found methamphetamine in the defendant’s vehicle
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin announced that a Georgia man pleaded guilty on Feb. 25 to possession with intent to distribute methamphetamine. Gary Diaz, 55, Roswell, Ga., admitted that in November 2012, he distributed methamphetamine to a known individual. On November 13, 2012 and November 14, 2012, a confidential informant working with law enforcement authorities purchased the methamphetamine from a known individual during two controlled drug transactions.
On November 16, 2012, law enforcement officers conducted a stop of Diaz’s vehicle near Wayne County, W.Va. During the traffic stop, a police K-9 unit gave a positive indication of the presence of drugs inside the vehicle. Law enforcement agents recovered a quantity of methamphetamine from the vehicle.
The methamphetamine recovered from the two controlled drug buys and two bags found in the trunk of the defendant’s vehicle were submitted to the West Virginia State Police Forensic Laboratory and proved to be methamphetamine weighing 349.54 grams.
Diaz faces up to 20 years in prison and a $1 million fine when he is sentenced on May 28, 2013 by United States District Chief Judge Robert C. Chambers.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Fort Pierce Financial Manager and Six Other St. Lucie County Residents Sentenced in $200,000 Mail Fraud Embezzlement SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Sean Baldwin, Chief, Fort Pierce Police Department (FPPD), announce the sentencing of Erica Gilmore-Grier, 35, of Fort Pierce, for embezzling more than $200,000 from her former employer, Policy Studies, Inc. (PSI), while working as a financial manager for the PSI Call Center in Fort Pierce, Florida. Margo Nickerson, 36, of Fort Pierce, Bridgette Galarza, 31, of Port St. Lucie, Chelsea Durham, 40, of Port St. Lucie, Jessica Harris, 22, of Fort Pierce, Jamile Williams, 34, of Fort Pierce and Venus Holloman, 26, of Fort Pierce, were also sentenced for their roles in the scheme. All of the defendants are St. Lucie County residents.
Gilmore-Grier was sentenced by the U.S. District Judge K. Michael Moore to 33 months’ imprisonment; Nickerson was sentenced to 30 months’ imprisonment; Harris was sentenced to 24 months’ imprisonment; Holloman was sentenced to 20 months’ imprisonment; Galarza was sentenced to 8 months’ imprisonment; Williams was sentenced to 4 months’ imprisonment; and Durham was sentenced to 4 months’ imprisonment and 4 months’ home detention. All of the defendants will be on supervised release after incarceration, and have been ordered to pay restitution.
From October 2008 to October 2011, PSI was a management company supporting federal and state governments in administering health and human services programs, such as health insurance for low income children, across the United States. One public program administered by PSI was Georgia PeachCare for Kids (GAPC), a children’s health insurance program providing affordable healthcare for children who are Georgia residents and who live in low-income households. PSI’s Fort Pierce Call Center administered the GAPC program. Gilmore-Grier worked as Finance Team Lead at PSI’s Fort Pierce Call Center. Gilmore-Grier was responsible for overseeing the resolution of financial issues on GAPC customer accounts and issuing refunds when customers overpaid their premiums.
From October 2008 to October 2011, Gilmore-Grier authorized fraudulent refund checks for her co-defendants and others, who were not GAPC clients and not entitled to refunds, by claiming that they were legitimate GAPC clients who had inadvertently overpaid their premiums. Based on Gilmore-Grier’s requests, PSI’s main office in Denver, Colorado, issued more than 64 checks to Gilmore-Grier’s friends and family throughout St. Lucie County. Holloman, Nickerson, Galarza, Durham, Harris and Williams were among the individuals who received and cashed checks and split the proceeds with Gilmore-Grier. Gilmore-Grier and others stole approximately $213,147.56 from PSI and GAPC through this scheme.
U.S. Attorney Wifredo Ferrer commended the investigative efforts of the Secret Service and the Fort Pierce Police Department. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.
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.
Former Tacoma Banker Sentenced to Four Years in Prison for Defrauding Northwest Commercial BankRead the Press Release
A former Tacoma, Washington banker who fraudulently raided the line of credit belonging to a non-profit organization, was sentenced today in U.S. District Court in Tacoma to four years in prison, five years of supervised release and $917,204 in restitution, announced U.S. Attorney Jenny A. Durkan. JEFFREY R. GOODELL, 32, lied about his education to get a job at Northwest Commercial Bank, and then used his position as a loan officer to fund cash disbursements to friends and associates, and potential bank customers, using the bank accounts and line of credit of the Tacoma Rescue Mission. In all, between 2009 and 2010, GOODELL disbursed nearly $1.3 million from the bank by using the Tacoma Rescue Mission bank accounts and line of credit. U.S. District Judge Benjamin H. Settle ordered GOODELL into custody.
According to records filed in the case, GOODELL repeatedly used the line of credit associated with the Tacoma Rescue Mission, and bank accounts held by the non-profit to make unauthorized loans. When a bank executive grew suspicious, he had a friend impersonate the executive director of the organization on the phone to say the transactions were authorized. GOODELL used phony emails to further his fraud by making it appear an executive with the non-profit Rescue Mission had authorized the transactions. When executives first noticed depletions in their account, GOODELL sent them a new, falsified statement, saying the previous one was in error. At one point, to keep the fraud going, GOODELL shaved his head and claimed he had been diagnosed with cancer and therefore needed to save up his annual leave. In truth, GOODELL did not want to take leave or be away from the bank because of the risk his scheme would be uncovered. GOODELL was fired by the bank in December 2010.
In asking for a significant sentence prosecutors wrote that for more than six months, GOODELL pursued a fraud against the bank “with a vengeance. Not only did he methodically drain one TRM account after another, after he had nearly drained all of its accounts, he fraudulently used the identity of a TRM officer to open yet another account. Even after being confronted by (a TRM executive), Goodell brazenly continued the fraud the day after he assuaged (the executive’s) concern by sending her a fraudulent account statement.”
The case was investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorney Arlen Storm.
Former State Corrections Officer Pleads Guilty to Child Pornography OffensesRead the Press Release
Springfield, Ill. – A former Illinois prison guard, Steven L. Carson, of Hillsboro, Ill., has entered pleas of guilty to charges that he sexually exploited a minor, and that he distributed and possessed images of child pornography. Carson, 46, appeared in federal court in Springfield on Feb. 21, 2013, before U.S. Magistrate Judge Byron Cudmore. Sentencing has been scheduled before U.S. District Judge Richard Mills on June 21, 2013.
Carson has remained in the custody of the U.S. Marshals Service since his arrest in August 2012, when he was charged with distribution of child pornography in a federal criminal complaint. According to the affidavit filed in support of the complaint, the Sacramento, Ca. division of the FBI’s Cyber Crime Unit was conducting an undercover investigation of peer-to-peer file-sharing accounts in April 2012, when an undercover agent conducted a file sharing session with Carson. At the time, Carson was employed as a prison guard at Graham Correctional Center.
Carson was indicted by a grand jury, and on Feb. 21, 2013, pled guilty to three counts: sexual exploitation of a minor; distribution of child pornography; and possession of child pornography. In court documents and during the court hearing, Carson admitted that in January 2000, he used a child to perform sexually explicit conduct which he videotaped. Further, Carson admitted that he engaged in peer-to-peer file sharing of child pornography, including prepubescent boys; and that he possessed images of child pornography, including more than 2,300 images and 40 videos which agents recovered from Carson’s computers. Carson also agreed to forfeiture of computers and related electronic equipment.
The statutory penalty for sexual exploitation of a minor is a mandatory minimum of 10 years in prison to 20 years in prison. For distribution of child pornography, the penalty is a mandatory minimum of five years to 20 years in prison; for possession of child pornography, the penalty is up to 10 years in prison. The defendant may also be ordered to remain on supervised release for a term up to life.
The charges are the result of an investigation by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Gregory K. Harris and Bryan D. Freres.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former State Corrections Officer Pleads Guilty to Child Pornography OffensesRead the Press Release
Springfield, Ill. – A former Illinois prison guard, Steven L. Carson, of Hillsboro, Ill., has entered pleas of guilty to charges that he sexually exploited a minor, and that he distributed and possessed images of child pornography. Carson, 46, appeared in federal court in Springfield on Feb. 21, 2013, before U.S. Magistrate Judge Byron Cudmore. Sentencing has been scheduled before U.S. District Judge Richard Mills on June 21, 2013.
Carson has remained in the custody of the U.S. Marshals Service since his arrest in August 2012, when he was charged with distribution of child pornography in a federal criminal complaint. According to the affidavit filed in support of the complaint, the Sacramento, Ca. division of the FBI’s Cyber Crime Unit was conducting an undercover investigation of peer-to-peer file-sharing accounts in April 2012, when an undercover agent conducted a file sharing session with Carson. At the time, Carson was employed as a prison guard at Graham Correctional Center.
Carson was indicted by a grand jury, and on Feb. 21, 2013, pled guilty to three counts: sexual exploitation of a minor; distribution of child pornography; and possession of child pornography. In court documents and during the court hearing, Carson admitted that in January 2000, he used a child to perform sexually explicit conduct which he videotaped. Further, Carson admitted that he engaged in peer-to-peer file sharing of child pornography, including prepubescent boys; and that he possessed images of child pornography, including more than 2,300 images and 40 videos which agents recovered from Carson’s computers. Carson also agreed to forfeiture of computers and related electronic equipment.
The statutory penalty for sexual exploitation of a minor is a mandatory minimum of 10 years in prison to 20 years in prison. For distribution of child pornography, the penalty is a mandatory minimum of five years to 20 years in prison; for possession of child pornography, the penalty is up to 10 years in prison. The defendant may also be ordered to remain on supervised release for a term up to life.
The charges are the result of an investigation by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Gregory K. Harris and Bryan D. Freres.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Silicon Valley Engineer Will See Prison After Conviction for Stealing Marvell Trade SecretsRead the Press Release
SAN JOSE - Suibin Zhang was sentenced this morning following his conviction on five felony counts of Theft of Trade Secrets by a federal district judge, United States Attorney Melinda Haag announced today.
United States District Judge Ronald M. Whyte sentenced Zhang to serve three months in prison, to be followed by a three-year term of supervised release. Among the conditions of supervised release are that Zhang shall perform 200 hours of community service. The defendant was also ordered to pay $75,000 in restitution to the victim, Marvell Semiconductor, Inc. (Marvell); that sum is to be paid in full on or before May 31, 2013. Judge Whyte stated that Zhang’s conduct was “unacceptable” and that he hoped his sentence would carry a “strong deterrent message.”
In a verdict published on May 29, 2012, Judge Whyte found Zhang guilty of three counts of Theft and Copying of Trade Secrets for downloading the trade secrets from a secure database, one count of Duplication of Trade Secrets for loading those trade secrets onto a laptop provided by his new employer, and one count of Possession of Stolen Trade Secrets. Zhang was acquitted of three counts of Computer Fraud and one count of Unauthorized Transmission of a Trade Secret. The guilty verdict followed a 2½ week trial before Judge Whyte, which began on October 24, 2011 and concluded on November 9, 2011.
Evidence at trial showed that Zhang, 44, of Belmont, CA, was employed as a Project Engineer at Netgear, Inc., of San Jose, which gave him access to Marvell’s secure database (“Extranet”). On March 8, 2005, Zhang accepted a position at Broadcom Corporation (Broadcom), which is also Marvell’s chief competitor. Beginning the very next day, March 9, 2005, and continuing on two other days before he left Netgear, Zhang used his Netgear account to download and steal trade secret information found in dozens of documents, datasheets, hardware specifications, design guides, functional specifications, application notes, board designs, and other confidential and proprietary items from Marvell. On April 27, 2005, Zhang loaded the Marvell trade secrets onto a laptop issued by Broadcom, where they continued to reside on June 24, 2005, when the FBI served search warrants at Zhang’s home and at Broadcom, and took possession of his laptop.
“The protection of intellectual property rights, especially in Silicon Valley, is of vital importance to the economic security of our region,” said United States Attorney Melinda Haag. “The investigation and prosecution of thefts of trade secrets remains a significant priority for this office. I certainly hope the court’s sentence sends a strong message that in addition to the personal, professional, and financial costs, which are significant in themselves, these offenses result in prison time.”
The conviction is the result of an investigation by the Federal Bureau of Investigation. The investigation was overseen by the Computer Hacking and Intellectual Property (CHIP) Unit of the U.S. Attorney’s Office. Matthew Parrella and David Callaway are the Assistant U.S. Attorneys in the CHIP Unit who prosecuted the case with the assistance of Legal Tech Nina Burney-Williams. Both Marvell Semiconductor, Inc., and Netgear, Inc., cooperated fully with the FBI in the investigation.
Former Jefferson Parish President, Aaron F. Broussard, and Others Sentenced in Corruption CaseRead the Press Release
AARON F. BROUSSARD (“BROUSSARD”), age 64, a resident and former two-term President of Jefferson Parish, was sentenced today to 46 months by Senior U.S. District Court Judge Hayden Head from the Southern District of Texas, for his involvement in a Conspiracy to Commit Bribery, Wire Fraud, and Theft Concerning Programs Receiving Federal Funds, announced U.S. Attorney Dana J. Boente, FBI Special Agent in Charge Michael Anderson and IRS-Criminal Investigative Division Acting Special Agent in Charge Damon Rowe.
Also sentenced today were former Jefferson Parish Attorney, THOMAS G. WILKINSON, age 54, a resident of Gretna and BROUSSARD’s ex-wife, KAREN PARKER, age 47, a resident of Kenner. WILKINSON, who pled guilty to misprision of a felony, was sentenced to 3 years probation and ordered to pay $214,209.94 in restitution to Jefferson Parish. PARKER, who also pled guilty to misprision of a felony, was sentenced to 3 years probation and ordered to pay $160,430.15 in restitution to Jefferson Parish.
BROUSSARD was also ordered to pay $214,209.94 in restitution to Jefferson Parish and was also ordered to forfeit $280,209.94 in illegal proceeds pursuant to his plea agreement.
BROUSSARD was sentenced for his involvement in a conspiracy with Timothy Whitmer, the former CAO of Jefferson Parish, WILKINSON and PARKER to steal taxpayer funds when he and others created a sinecure Paralegal Supervisor position for PARKER. BROUSSARD knowingly and illegally diverted taxpayer funds to his ex-wife in the form of her salary for over six years, when PARKER did not even possess the most basic credentials or requisite experience to hold the position of Paralegal Supervisor and, repeatedly sought to conceal the illegal nature of her employment with Jefferson Parish by having PARKER transferred to the ID Management Office at the East Bank Regional Library in an effort to hide the fact that she was not working for the Parish Attorney’s Office as a Paralegal Supervisor and was not performing any work as a paralegal. BROUSSARD also gave pay raises to Parish Attorney, THOMAS WILKINSON, as a reward for private family matters and for continuing to approve annual pay raises for PARKER. In total BROUSSARD and PARKER improperly diverted over $323,308.00 in salary over the period of six years.
BROUSSARD was also sentenced for receiving numerous bribes totalling over $60,000.00 while parish president from William Mack in exchange for BROUSSARD’s assistance and intervention on behalf of Mack’s company.
Speaking to today’s sentencing, United States Attorney Dana J. Boente stated:
“This sad end to Aaron Broussard’s career is a self-inflicted wound resulting from his venality, corruption, and deceit. The citizens of Jefferson Parish deserved honest, effective government, and Mr. Broussard made the decision to line his own pockets. This prosecution should serve notice that this office will continue its robust and vigilant investigation of public corruption.”
Michael Anderson, Special Agent in Charge of the Federal Bureau of Investigation New Orleans Field Office added:
"I am very proud of the investigative and prosecution team for always keeping their eye on the ball throughout this matter, which resulted in a fair and efficient resolution of this case."IRS Acting Special Agent in Charge, Damon Rowe, stated:
"IRS Criminal Investigation will continue to make fighting political corruption a top priority in our office. Elected officials must realize that they are not above the law."
The case was investigated by agents from the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation Division. The federal agencies were assisted by the Metropolitan Crime Commission.The case was prosecuted by Strike Force Chief and Assistant U.S. Attorney Brian Klebba, and Assistant U.S. Attorneys Matt Chester, Daniel Friel, and Mimi Nguyen.
Former Eden Prairie Resident Sentenced for Role in $8.9 Million Mortgage FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 28-year-old North Carolina woman was sentenced for her role in a scheme that defrauded mortgage lenders out of approximately $8.9 million. United States District Court Judge Susan Richard Nelson sentenced Ashley Elizabeth Prasil, formerly of Eden Prairie, to three years of probation and ordered her to perform 150 hours of community service on one count of conspiracy to commit wire fraud. Prasil was also ordered to pay more than $2.2 million in restitution to the lenders victimized through the scheme. Prasil was charged via Information on April 21, 2011, and pleaded guilty on May 19, 2011.
Prasil admitted that from December 18, 2006, through December of 2007, she conspired with others to defraud mortgage lenders who provided mortgages at the Cloud 9 Sky Flats (“Cloud 9”), a Minnetonka condominium development. The scheme involved finding buyers to apply for mortgage loans to purchase units in the development, with each buyer receiving a kickback of approximately 30 percent of the reported purchase price. The loan applications and forms submitted to the lenders did not disclose these kickbacks, resulting in buyers and others secretly getting a portion of the loan amounts back after closing. The kickbacks were returned to the buyers through an account controlled by Prasil’s co-defendant Sheri Delich, after a portion had been skimmed off for co-conspirators.
On February 15, 2013, Delich, age 47, of Apple Valley, was ordered to serve five years of probation and six months of home confinement on one count of conspiracy to commit mortgage fraud and one count of money laundering. Judge Nelson also sentenced former realtor My Dinh Lam, age 32, of Minneapolis, to three years of probation on one count of conspiracy to commit wire fraud for his role in finding buyers for the program.
More than 40 Cloud 9 units were sold through the scheme, and more than 80 percent of the loans have since defaulted.
Under the sentencing guidelines, Prasil could have been sentenced to more than two years in prison. The Court noted, however, that Prasil had provided assistance to the government and that her sentence was being reduced because of her cooperation in the investigation.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Robert M. Lewis.Former Acadiana Outreach Center Worker Pleads Guilty to Bribery Conspiracy in District Attorney OWI CaseRead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that former Acadiana Outreach Center employee Sandra Degeyter, 61, of Lafayette, pleaded guilty to a one-count Bill of Information charging her with conspiracy to commit bribery.
This plea is related to the bribery investigation of former employees of the 15th Judicial District Attorney’s Office who accepted bribes in return for their participation in the facilitation of “immediate 894 pleas.” This is the fifth plea related to the bribery scheme.
The Louisiana Code of Criminal Procedure Article 894 provides a procedure by which a person can initially plead guilty to a crime with the understanding that the conviction will be set aside if the person successfully completes certain requirements imposed during a probationary period, including community service.
Degeyter made the following admissions in open court before Magistrate Judge Patrick J. Hanna as outlined in her factual stipulations entered during the guilty plea hearings today:
Degeyter worked as a case manager for Acadiana Outreach from March 2008 to October 2009. Beginning in 2008 and continuing until Feb. 17, 2012, Degeyter conspired to provide false and fraudulent Acadiana Outreach community service certificates to an unnamed, uncharged co-conspirator in exchange for money. The fraudulent certificates purportedly confirmed that “clients” of the co-conspirator had completed court-ordered community service, when in fact they had not. The co-conspirator paid Degeyter cash, $100 per certificate, and also made in-kind contributions to Acadiana Outreach for the false certificates. Degeyter admitted producing more than 50 false certificates between the spring of 2008 and October 2009.
After Degeyter left Acadiana Outreach in October of 2009, she asked Elaine Crump, who was still employed as a case manager at Acadiana Outreach, to assist her with continuing the fraudulent scheme. The two agreed that Degeyter would continue to create fraudulent Acadiana Outreach community service certificates, and in exchange for cash payments, Crump would permit Degeyter to sign Crump’s name on the fraudulent certificates. Crump previously pleaded guilty on Feb. 5, 2013, to misprision of a felony.
Degeyter began to provide cash payments to Crump ranging from $25 to $100, which was a portion of the cash Degeyter received from the co-conspirator. Degeyter provided Crump with the names of the people she had prepared false certificates for and the number of community service hours the certificates falsely stated had been completed. Degeyter did this so that if questioned by anyone, Crump could falsely verify the accuracy of the certificates.
Crump was laid off from Acadiana Outreach in September 2011. Shortly thereafter, Degeyter and Crump agreed that Degeyter would continue to create additional certificates and sign Crump’s name on them, but would backdate the documents to dates within Crump’s employment at Acadiana Outreach. In exchange, the co-conspirator would continue to pay Degeyter, and she would continue to share those payments with Crump. Degeyter’s payments to Crump continued until December of 2011.
Degeyter faces a maximum penalty of five years in prison, a $250,000 fine or both with up to three years of supervised release for the conspiracy count.
“The defendant’s actions were motivated by greed,” Finley said. “Her criminal activity has not only affected the justice system, but it has tarnished the good work of her former employer. Those involved in this case did not seem to consider the far-reaching damage that their actions would have on our community and the agencies that serve it.”
The FBI conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Richard Willis are prosecuting the case.
Federal Jury Finds Minnesota Man Guilty of Conspiring to Distribute Controlled SubstancesRead the Press Release
MINNEAPOLIS— On Friday, in federal court, a jury found a Twin Cities’ man guilty of conspiring to distribute heroin, cocaine, and other controlled substances. Following a four-day trial, the jury convicted Eric Michelle Hunter, age 40, of Bloomington. He was found guilty of one count of conspiracy to distribute controlled substances. In addition Hunter was convicted of five counts of distribution of controlled substances, one count of possession of controlled substances with intent to distribute, two counts of using and carrying firearms during and in relation to drug-trafficking crimes, two counts of being a felon in possession of a firearm, and one count of attempted witness tampering. Hunter was charged on December 10, 2012, in a superseding indictment.
The evidence presented at trial proved that from September 14, 2011, through July 24, 2012, the defendant conspired with others to distribute controlled substances, primarily heroin. On five occasions, Hunter aided and abetted the distribution of controlled substances, including heroin and benzylpiperazine, commonly known as BZP. He also conspired to distribute numerous other controlled substances, including two other designer drugs with street names of “Foxy” and “Ivory Wave.”Moreover, on May 2, 2012, Hunter aided and abetted using and carrying a .357-caliber, semi-automatic pistol, and on May 22, 2012, he aided and abetted using and carrying an AA Arms, 9 millimeter machine gun. Because Hunter is a convicted felon, he is prohibited under federal law from possessing firearms at any time. He was convicted in Mississippi of grand larceny in 1990, possession of cocaine in 1994, felon in possession of a deadly weapon in 1994, and intimidation and assault on a law enforcement officer in 1995. In addition, he was convicted in federal court in the District of Minnesota in 1998 for possession with intent to distribute crack cocaine.
On October 9, 2012, co-defendant Rikki Lee Gilow, age 20, also of Bloomington, pleaded guilty to one count of conspiracy. In her plea agreement, Gilow admitted conspiring with Hunter and Jerry Anthony Harvey to distribute controlled substances. In addition, Gilow admitted assisting Hunter by selling two firearms to a government agent in connection with two separate drug transactions. Harvey is currently pending trial on the conspiracy charge and one count of aiding and abetting the distribution of heroin.
For his crime, the defendant faces a potential maximum penalty of life in prison on the conspiracy charge, 30 years on each of the distribution charges, and life for the possession with intent to distribute heroin charge. Hunter also faces a potential maximum penalty of life in prison on the firearm charges, a potential maximum penalty of ten years on each charge of being a felon in possession, and a potential maximum penalty of 20 years on the attempted witness tampering charge. United States District Court Judge Ann D. Montgomery will determine his sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dakota County Drug Task Force. It was prosecuted by Assistant U.S. Attorneys Thomas M. Hollenhorst and Julie E. Allyn.Federal Judge Sentences Last of 5 Convicted of Smuggling More Than 1 Ton of MarijuanaRead the Press Release
McALLEN, Texas – A federal judge in McAllen has sentenced the last of five men who previously pleaded guilty to smuggling approximately 2,672 pounds of marijuana, United States Attorney Kenneth Magidson announced today.
Arnoldo Gonzalez-Chavez, 37, Juan Ornelas-Ahumeda, 31, and Jonathan Ricardo Alvarez-Martinez, 20, all of Mission; and Antonio Mendoza-Aguirre, 33, and Rafael Murguia-Mendoza, 42, both of McAllen, all previously pleaded guilty.
Today, Senior U.S. District Judge Randy Crane sentenced Gonzalez-Chavez to a term of 30 months in federal prison to be followed by three years of supervised release. Previously, Judge Crane handed Mendoza-Aguirre and Ornelas-Ahumeda to respective terms of 151 and 63 months, while Murguia-Mendoza and Alvarez-Martinez were each ordered to serve 70 months in federal prison.
The defendants were originally charged in an indictment returned on Jan. 24, 2012, and ultimately pleaded guilty to possessing marijuana with the intent to distribute it. Each of the five men admitted to participating in a stash house operation designed to receive and re-package shipments of marijuana in preparation for northbound transportation. Mendoza-Aguirre supervised the operation with the assistance of Murguia-Mendoza, recruited Ornelas-Ahumeda and Gonzalez-Chavez to wrap the marijuana in plastic and grease and hired Alvarez-Martinez to transport the marijuana.
On Jan. 11, 2012, agents arrested four of the defendants after they departed a stash house in Mission, where a subsequent search revealed 114 bundles containing 1,212 kilograms of marijuana. Further investigation led agents to another residence in McAllen where they arrested Alvarez-Martinez and discovered $49,000 in United States currency.
This case was investigated by the Drug Enforcement Administration and assisted by the McAllen and Mission Police Departments. The case is being prosecuted by Assistant United States Attorney Grady J. Leupold.
Erlanger Nursing Home and United States Government Settle Civil AllegationsRead the Press Release
COVINGTON, KY - Under a settlement agreement with the U.S. Government, Villaspring Health Care Center, Inc., and Carespring Health Care Management, LLC are further enhancing the care that they provide to residents of Villaspring’s nursing home in Erlanger, KY., announced United States Attorney Kerry Harvey.
The agreement: (1) embodies and effectuates quality of care enhancements at Villaspring, and (2) ensures that the U.S. Attorney’s Office remains apprised of those enhancements over the next three years. The settlement agreement is the first of its kind in Kentucky and resolves False Claims Act allegations brought against Villaspring and Carespring in a lawsuit filed in July 2011 for conduct alleged to have occurred between 2004 and 2008.
Under the agreement, Villaspring and Carespring will pay the U.S. Government $350,000. Villaspring and Carespring will also retain an independent compliance consultant, subject to the approval of the U.S. Attorney’s Office (USAO). The USAO will review Villaspring’s existing compliance program and its quality of care, and collaborate with Villaspring and Carespring on enhancements to the program and its patient care. Villaspring and Carespring will be responsible for the costs of these enhancements and the costs of the consultant.
Pursuant to the agreement, the consultant will provide quarterly reports to the U.S. Attorney’s Office, Villaspring, and Carespring.
“We are pleased to reach an agreement,” said United States Attorney for the Eastern District of Kentucky Kerry B. Harvey. “The focus of the agreement is ensuring that quality of care standards are met and the consultant provisions of the settlement will provide real benefits to Villaspring residents. The Judge’s ruling in this matter establishes that the failure of care theory will be an important tool available for use in appropriate cases.”
The case was handled by Assistant United States Attorneys Andrew Sparks and Paul McCaffrey, and Department of Health and Human Services Office of Inspector General attorney Jill Wright. The matter was referred to the U.S. Attorney’s Office by the Kentucky Attorney General’s Medicaid Fraud Abuse and Control Unit.
District Man Found Guilty of Murder in 2011 Slaying in Northeast WashingtonDefendant Came to Ex-Girlfriend’s House with Gun, Killed Her Brother and Shot at Her FatherRead the Press Release
WASHINGTON – Brandon Andrews, 31, of Washington, D.C., was found guilty by a jury today of second-degree murder while armed and other charges in the killing of a man in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Andrews was convicted by a jury in the Superior Court of the District of Columbia of the murder of his ex-girlfriend’s brother, Leonard Bigelow, 43. The jury also found him guilty of a charge of assault with a deadly weapon for shooting at Mr. Bigelow’s father; threats to injure, for threatening his ex-girlfriend, and related weapons offenses. The Honorable Robert E. Morin scheduled sentencing for April 26, 2013.
According to the government’s evidence, Andrews and Mr. Bigelow’s sister dated for approximately 10 months. However, on Aug. 22, 2011, she ended the relationship after Andrews threatened her while they were driving through the District of Columbia.
After the break-up, Andrews repeatedly tried to call and sent text messages to his ex-girlfriend, but she did not respond. Many of the defendant’s text messages included profanity, threats and demands that she answer him. Andrews also went by the Bigelow family home repeatedly, though he was uninvited and unwelcome.
On Aug. 23, 2011, for example, Mr. Bigelow was with his sister at their home when Andrews came by. Andrews and Mr. Bigelow argued when Mr. Bigelow informed Andrews that he was unwelcome and that his sister did not want to talk to him. Andrews’s ex-girlfriend became so concerned about his behavior that she sought a protective order from the Court the following day to keep Andrews away from her and her family.
On Aug. 25, Andrews demanded his clothing via text messages. The following day, the ex-girlfriend dropped off the clothes on a street corner near a homeless center in the 400 block of Second Street NW, where Andrews stood and resided. She did not give them to Andrews directly because she feared him. Later that day, Andrews sent text messages claiming that the clothes were taken by others before he could retrieve them. He also used profanity and threatened her property and her safety.
On the evening of Aug. 26, Andrews called and texted his ex-girlfriend multiple times, but she did not respond. Then, Andrews called her home. Mr. Bigelow answered the phone and told Andrews that his sister did not want to see him or speak to him. Andrews declared that he was coming to the home at approximately 10 p.m. Mr. Bigelow said that he would be there.
Andrews arrived about 10:45 p.m. with a loaded semi-automatic pistol in his pocket. He emerged from an alley and into the 1300 block of Emerald Street NE, and walked toward the house. Mr. Bigelow, his sister, and his father saw Andrews coming. Mr. Bigelow went onto the front porch with his father, while his sister called 911. Andrews stopped in front of the house and, without a word, shot at Mr. Bigelow and his father twice. He struck Mr. Bigelow with a bullet in the chest. Andrews then walked back the way he came. Mr. Bigelow collapsed and died that night from the gunshot wound.
On Aug. 27, 2011, law enforcement located Andrews at the corner of Fifth and F Streets NW. When he was arrested, he told the police that he had a gun in his pocket. The police found in his pocket the loaded.25 caliber semi-automatic pistol used to kill Mr. Bigelow.
At trial, Andrews claimed self-defense and alleged, among other claims, that at the time of the shooting Mr. Bigelow charged at him with some type of weapon in his hand. The government strongly disputed Andrews’ claim. According to the government’s evidence, Mr. Bigelow did not have a weapon and did not approach Andrews.
In announcing the verdicts, U.S. Attorney Machen commended the work of the detectives and officers of the Criminal Investigations Division and the First District of the Metropolitan Police Department, and the FBI Fugitive Task Force. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Steven Snyder, who secured the indictment in the case, Criminal Investigator John Marsh, Victim Witness Advocate Marcia Rinker, Victim Witness Specialist Katina Adams-Washington, Leif Hickling of the Litigation Technology Unit, and Paralegal Specialist Marian Russell. Finally, he praised the efforts of Assistant U.S. Attorney Shana L. Fulton who tried the case.
13-069Diamond Bar Man Pleads Guilty to Federal Fraud Charges for Running Day-Trading Ponzi That Raised $49 Million from InvestorsRead the Press Release
LOS ANGELES – The CEO and co-owner of a Diamond Bar investment company pleaded guilty this afternoon to two federal felony counts arising from his scheme to defraud investors who put $49 million into his bogus day-trading venture.
Syed Qaisar Madad pleaded guilty to wire fraud and tax fraud, admitting in court today that investors lost more than $31 million when his scheme collapsed in March 2011.
Starting in 2005, Madad collected money from investors who believed he generated consistent, substantial profits, and that their money would be safe and available upon request. During the 5½-year life of the scheme, Madad received more than $49 million from investors.
Madad, 66, a resident of Diamond Bar who ran his scheme through a company called Technology for Telecommunication and Multimedia, Inc. (TTM), portrayed himself as a successful investor who had not lost money in a single day of trading – except one day in 2006. Madad, who was profiled and interviewed in media serving the Pakistani-American community, told reporters and potential investors that he had developed a day-trading technique that was always profitable.
Over the course of the scheme, Madad sent victims monthly account statements that always showed gains in their accounts, and some victims gave Madad additional funds based solely on these account statements. Madad admitted today that the balances shown on these statements were false, and that, in fact, he lost more than $15 million in unsuccessful trading.
While Madad promised that he would not take any fees or compensation for managing the invested funds, Madad admitted today that he spent well over $15 million of investors’ money on personal expenses, including real estate, jewelry for his wife and daughters, vehicles and cash disbursements to himself and family members.
Although Madad returned approximately $17.7 million to investors, many of the payments he made were Ponzi payments, meaning that the money came from funds entrusted to him by other investors, rather than from profits or interest he had earned.
Madad also admitted today that he under-reported his income for tax year 2009 by approximately $4.9 million on tax returns filed with the Internal Revenue Service.
Madad’s scheme originally came to light two years ago when he was sued by one of his investors.
Prior to and following Madad’s arrest in October 2012, pursuant to court-authorized warrants, the government seized a Mercedes-Benz C63, numerous pieces of diamond and other precious gemstone jewelry, and funds that were traceable to investor money. As part of his agreement with the goverment, Madad has agreed to forfeit his Diamond Bar mansion, the Mercedez-Benz, 68 pieces of jewelry, and other luxury items, including silk and wool handmade oriental carpets. Madad also agreed to pay the IRS approximately $5 million in unpaid taxes for tax years 2006 through 2010.
Madad is scheduled to be sentenced by United States District Judge Percy Anderson on June 24. As a result of today’s guilty pleas, Madad faces a statutory maximum sentence of 23 years in federal prison.
The case against Madad is the result of an investigation by the Federal Bureau of Investigation and IRS - Criminal Investigation.
Release No. 13-026
Davenport Man Sentenced to 63 Month Imprisonment for Federal Firearms OffenseRead the Press Release
DAVENPORT, IA – On February 25, 2013, Fred Carl Chapman, age 30, of Davenport, Iowa, was sentenced to 63 months imprisonment, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also ordered Chapman to serve three years supervised release following imprisonment, and pay a $100 special assessment to the crime victim fund.
On May 19, 2012, the Davenport, Iowa, Police Department was contacted by employees of a downtown bar about a man in the bar armed with a gun. A police officer went to the bar and identified Chapman based on a bar employees’ description. When the officer asked Chapman to step outside, Chapman initially refused, but eventually went outside with the officer. The officer frisked Chapman, finding a semi-automatic pistol and ammunition in Chapman’s pocket. Chapman had several prior felony convictions, and was charged in United States District Court as a felon in possession of a firearm. Chapman entered a guilty plea on October 23, 2012.
This case was investigated by the Davenport, Iowa, Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Davenport Man Sentenced to 147 Months in Prison for Methamphetamine and Gun OffensesRead the Press Release
DAVENPORT, IA – On February 25, 2013, Leslie Wade Hardin, age 42, of Davenport, Iowa, was sentenced to 147 months imprisonment for conspiring to manufacture and distribute methamphetamine, and for possessing firearms in furtherance of a drug trafficking crime, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Hardin to 5 years supervised release.
Between August 2011 and March 7, 2012, Hardin manufactured at least 50 grams of actual methamphetamine at a residence in Davenport, Iowa, owned by Steven Michael Gruetzmacher. In his plea agreement, Hardin admitted that he, Gruetzmacher, and Travis Lee Meier pooled together ingredients to manufacture methamphetamine and manufactured it at the residence on a regular basis. Some of the methamphetamine was consumed for personal use while some was distributed to various customers. Hardin also admitted to constructive possession of various firearms located at that residence, and that his possession of the firearms was with the intent that they advance, assist, or help the drug conspiracy.
Hardin’s co-conspirators have already been sentenced by United States District Court Judge Stephanie M. Rose. On February 1, 2013, Gruetzmacher, age 46, of Davenport, Iowa was sentenced to 180 months imprisonment and 5 years supervised release for conspiring to manufacture, and distribute methamphetamine, and for possessing firearms in furtherance of a drug trafficking crime. On November 29, 2012, Meier, age 21, of Davenport, Iowa was sentenced to 120 months imprisonment, and 4 years supervised release for conspiring to manufacture and distribute methamphetamine and for possessing firearms in furtherance of a drug trafficking crime.
The case was investigated by the United States Drug Enforcement Administration and the Davenport, Iowa, Police Department, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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