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11 April 2013
Coon Rapids Man Pleads Guilty to Stealing Prosthetics from the U of M and Selling Them OnlineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 52-year-old Coon Rapids man pleaded guilty to stealing prosthetics and related supplies from the University of Minnesota Medical Center—Fairview and selling them online. Specifically, Peter Stasica pleaded guilty to one count of wire fraud. Stasica, who was charged on March 8, 2013, entered his plea before United States District Court Judge Ann D. Montgomery.
In his plea agreement, Stasica admitted that from February to August 2011, while he was the prosthetics manager for Fairview’s Orthotics and Prosthetics Department, he began removing prosthetics and prosthetic-related supplies without authorization to sell on eBay. In his capacity as prosthetics manager, Stasica’s duties included purchasing supplies and equipment, working with vendors, and advising patients about whether a new prosthetic limb was necessary.
In addition, Stasica admitted he solicited from several patients, under false pretenses, prosthetics they were not using. Stasica did not disclose to those patients that he intended to sell them. During the course of the scheme, approximately 40 buyers purchased more than 60 prosthetics and related supplies from Stasica via eBay. The items had an actual cost to Fairview of approximately $122,928. The eBay sales resulted in a profit of approximately $17,296.
For his crime, Stasica faces a potential maximum penalty of 20 years in prison. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney David M. Genrich.Convict Lashaun Casey Sentenced to Life in PrisonRead the Press Release
SAN JUAN, PR – Today, Lashaun Casey, 32, faces life in prison following his conviction of murdering undercover Puerto Rico police officer Jesús Lizardi-Espada on August 1, 2005, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
On March 19, 2013, Casey was convicted of three counts of carjacking, using a firearm during and in relation of a violent crime, and being a felon in possession of a firearm. These offenses occurred on August 1, 2005, during an undercover drug transaction.
The counts of conviction on capital murder charges necessitated a separate penalty phase of the trial. That phase began on Monday, April 8. Today, the jury announced it was unable to reach a unanimous sentencing verdict. As a result, a sentence of life in prison will be imposed. There is no parole in the federal system.
“Mr. Casey committed a brutal act of violence against a police officer,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Today, a Puerto Rico jury emphatically rejected his behavior and brought him to justice. We cannot, and we will not, slowdown in our efforts to hold violent criminals like Casey accountable for their crimes.”
The case was investigated by the FBI and Puerto Rico Police Department, with the collaboration of Instituto de Ciencias Forenses and the Puerto Rico Department of Justice, and prosecuted by Senior Litigation Counsel, Assistant United States Attorney Scott Anderson and Assistant United States Attorney Mariana Bauzà.
Cicero Man Pleads Guilty to Attempting to Entice A MinorRead the Press Release
Syracuse, New York —United States Attorney Richard S. Hartunian announced that BRYAN M. COLE, 30, of Cicero, New York pled guilty today in United States District Court to attempting to persuade a child he believed to be 11 years old to engage in unlawful sexual contact with him.
In his plea today, COLE admitted that in 2010 he contacted a female child on the Internet. After the child’s parents reported his sexually inappropriate chats to police, law enforcement took over the child’s account, and continued to correspond with COLE. Today COLE admitted that in those chats it was clear to him that the child was 11 years old, that he discussed engaging in sexually explicit conduct with the child, and that he arranged to meet with the child at a North Syracuse apartment on December 23, 2010, a day he believed was her 12th birthday, with the intent to engage in sexual conduct with her. When COLE arrived at the apartment as arranged, he was met by members of the New York State Police and arrested. He has remained in federal custody since his arrest.
COLE is scheduled to be sentenced for his offense on August 23, 2013 before Hon. David N. Hurd in Utica, New York. He faces a mandatory minimum sentence of 10 years, with a maximum sentence of life imprisonment. Any sentence of imprisonment must be followed by a term of supervised release of no less than 5 years, and up to life. He will also be required to register as a sex offender, and may be fined up to $250,000.
COLE’s arrest was a result of investigation by the City of Fulton Police Department and the New York State Police, with the assistance of the United States Secret Service, and is being prosecuted by Assistant United States Attorney Lisa Fletcher. This cooperative investigation and federal prosecution is a 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, and led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Child-Pornography Charges Filed Against Deninson ManRead the Press Release
A federal grand jury in returned a two-count indictment charging Lloyd A. Devore, Jr., age 53, of Dennison, Ohio, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and possessing child pornography, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges from on or about February 15, 2013, through on or about March 13, 2013, Devore knowingly received and distributed computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. Additionally, the indictment charges that on March 13, 2013, Devore possessed a computer containing child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton office of the Federal Bureau of Investigation and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canadian Citizen Pleads Guilty in Connection with <br /> Costa Rica-Based Business Opportunity Fraud VenturesRead the Press Release
Kerry Michael Deevy pleaded guilty in U.S. District Court for the Southern District of Florida in Miami to 13 counts of an indictment pending against him, including one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and nine counts of wire fraud, the Justice Department and the U.S. Postal Inspection Service announced today.
Deevy, a Canadian citizen, was charged in connection with the operation of a series of fraudulent business opportunities. Deevy was arrested in Costa Rica in February 2012 following his indictment by a federal grand jury in Miami on Nov. 29, 2011. Following his arrest in Costa Rica, Deevy was extradited to the United States for prosecution. Deevy was arrested based on charges that he and his co-conspirators purported to sell vending machine and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The indictment is part of the government’s continued nationwide crackdown on business opportunity fraud.
In addition to Deevy, 11 other individuals have been charged in connection with business opportunity fraud ventures based in Costa Rica. Deevy is the ninth of those individuals to be convicted in the United States.
“The Department of Justice is committed to cracking down on financial fraud, including international telemarketing schemes,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “That is why we will continue to prosecute those who would deprive innocent, hardworking Americans of their hard-earned money by offering phony business opportunities.”
Beginning in 2006, Deevy and his coconspirators fraudulently induced purchasers in the United States to buy business opportunities in Cards-R-Us Inc., Premier Cards Inc. and Nation West Distribution Company. The business opportunities cost thousands of dollars each, and most purchasers paid at least $10,000.
Deevy participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, Deevy operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities.
The companies made numerous false statements to potential purchasers of the business opportunities, including that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands.
The companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to finalize deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser's merchandise display racks.
Deevy, using aliases, was a fronter and reference for Cards-R-Us, Premier Cards and Nation West.
Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nev. Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia. Nation West was a Colorado corporation and rented office space in Denver.
“Fraudsters must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the schemers conduct their fraudulent operations from abroad,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “Increased international law enforcement cooperation eliminates safe havens for those who cheat American citizens from overseas.”
“ The success of this investigation shows that the U.S. Postal Inspection Service continues to work closely with the Department of Justice and our law enforcement partners, both foreign and domestically, to protect the American consumer from the predatory nature of business opportunity and telemarketing schemes ,” said Tony Gomez, Acting U.S. Postal Inspector in Charge in Miami.
Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Assistant Director Jeffrey Steger and trial attorney Alan Phelps with the U.S. Department of Justice Consumer Protection Branch.
Canadian Citizen Pleads Guilty in Connection with Costa Rica-Based Business Opportunity Fraud VenturesRead the Press Release
Kerry Michael Deevy pleaded guilty in U.S. District Court for the Southern District of Florida in Miami to 13 counts of an indictment pending against him, including one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and nine counts of wire fraud, the Justice Department and the U.S. Postal Inspection Service announced today.
Deevy, a Canadian citizen, was charged in connection with the operation of a series of fraudulent business opportunities. Deevy was arrested in Costa Rica in February 2012 following his indictment by a federal grand jury in Miami on Nov. 29, 2011. Following his arrest in Costa Rica, Deevy was extradited to the United States for prosecution. Deevy was arrested based on charges that he and his co-conspirators purported to sell vending machine and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The indictment is part of the government’s continued nationwide crackdown on business opportunity fraud.
In addition to Deevy, 11 other individuals have been charged in connection with business opportunity fraud ventures based in Costa Rica. Deevy is the ninth of those individuals to be convicted in the United States.
“Fraudsters must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the schemers conduct their fraudulent operations from abroad,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “Increased international law enforcement cooperation eliminates safe havens for those who cheat American citizens from overseas.”
“The Department of Justice is committed to cracking down on financial fraud, including international telemarketing schemes,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “That is why we will continue to prosecute those who would deprive innocent, hardworking Americans of their hard-earned money by offering phony business opportunities.”
Beginning in 2006, Deevy and his coconspirators fraudulently induced purchasers in the United States to buy business opportunities in Cards-R-Us Inc., Premier Cards Inc. and Nation West Distribution Company. The business opportunities cost thousands of dollars each, and most purchasers paid at least $10,000.
Deevy participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, Deevy operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities.
The companies made numerous false statements to potential purchasers of the business opportunities, including that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands.
The companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to finalize deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser's merchandise display racks.
Deevy, using aliases, was a fronter and reference for Cards-R-Us, Premier Cards and Nation West.
Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nev. Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia. Nation West was a Colorado corporation and rented office space in Denver.
“The success of this investigation shows that the U.S. Postal Inspection Service continues to work closely with the Department of Justice and our law enforcement partners, both foreign and domestically, to protect the American consumer from the predatory nature of business opportunity and telemarketing schemes,” said Tony Gomez, Acting U.S. Postal Inspector in Charge in Miami.
Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Assistant Director Jeffrey Steger and trial attorney Alan Phelps with the U.S. Department of Justice Consumer Protection Branch.
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.
Cameron Resident Enters Plea to Falsification of Union RecordsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA -A 53 year old Cameron, West Virginia, resident entered a plea of guilty on April 10, 2013, in United States District Court in Wheeling before Magistrate Judge James E. Seibert.
United States Attorney William J. Ihlenfeld, II, announced that: JEFFREY BERESFORD entered a plea of guilty to “Falsification of Union Records” from April of 2008 to January of 2010 by willfully falsifying his Plumbers ALF-CIO Local Union mileage logs. As part of his plea, BERESFORD will make restitution in the amount of $4,507.75 to the Union. BERESFORD, who is free on bond, faces up to 1 year imprisonment and a $100,000 fine.
This case was prosecuted by Assistant United States Attorney David J. Perri and was investigated by the United States Department of Labor-Office of Labor Management
Standards.California Cocaine Supplier to Rochester SentencedRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Eric Contreras, a/k/a Poppy, 29, of Los Angeles, California, who was convicted of conspiracy to possess with intent to distribute and distribution of 500 grams or more of cocaine, was sentenced to 188 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Contreras supplied cocaine from California to armed cocaine and crack cocaine distributors in Rochester. These distributors then processed and distributed the cocaine in powder and crack form. On May 15, 2012, after arranging a multi-kilo transaction, Contreras was arrested by Special Agents with the Drug Enforcement Administration at his home in Whittier, California.
The sentencing is the culmination of an investigation on conducted by the Rochester Police Department, under the direction of Chief James Sheppard, the Rochester Office of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
“This case is a good example of the persistence of our Office, working collaboratively with our law enforcement partners, to track down and bring defendants to justice wherever they are,” said U.S. Attorney Hochul. “We will not tolerate defendants who bring illegal narcotics into our community. As this case demonstrates, you will be found, prosecuted and could spend many years behind bars.”Braddock Man Sentenced to 7 Years in Prison on Heroin ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of Braddock, Pa., has been sentenced in federal court to 84 months imprisonment followed by five years supervised release following a guilty plea to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Antoine Cortez-Dutrieville, 34.
According to information presented to the court, on or about June 13, 2012, Cortez-Dutrieville attempted to possess with intent to distribute 100 grams or more of heroin, a Schedule I controlled substance.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security - Homeland Security Investigations, the Pennsylvania State Police, the United States Customs and Border Protection, and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Cortez-Dutrieville.
Arkansas Man Convicted of Transporting Stolen Oilfied EquipmentRead the Press Release
A federal jury this morning in Midland convicted David Julius “Cowboy” McMillian, 56, of interstate transportation of a stolen 1.5 million BTU indirect heater. McMillian, who resides in Mountain Pine, Arkansas, faces up to 10 years in prison and $250,000 fine when he is sentenced on July 11, 2013.
Testimony at trial established that in late December 2010, McMillian, doing business as “Cowboy’s Energy Services,” arranged to lease the indirect heater, which is used in the oilfield, from McKay Equipment Company in Odessa at a rate of $200 per day. McMillian sent a truck to pick up the indirect heater, which was mounted on a gooseneck trailer, on December 29. Thereafter, McMillian made no rental payments whatsoever to McKay Equipment Company, and repeatedly failed to respond to telephone calls, emails, and letters demanding payment and/or return of the property.
Ultimately, the FBI’s Midland-based Oilfield Theft Task Force, with the assistance of the Pennsylvania State Police, located the indirect heater abandoned at a storage facility near Indiana, Pennsylvania in 2012. Testimony at trial established that McMillian failed to make promised payments to the owner of the storage facility as well, and similarly failed to meaningfully respond to that business’s demand for payment.
Assistant United States Attorney John S. Klassen prosecuted the case for the Department of Justice.Antitrust Division Issues 2013 Edition of Its Annual NewsletterRead the Press Release
The Department of Justice’s Antitrust Division today issued the 2013 edition of its annual newsletter on its website. The newsletter includes a message from Assistant Attorney General Bill Baer which focuses on the need to protect and promote competition in industries that directly affect the day-to-day lives of consumers, as well as articles about the Antitrust Division’s civil and criminal enforcement actions, international cooperation efforts and competition advocacy.
The newsletter highlights the division’s criminal enforcement matters, including the significant fines and prison sentences obtained and litigation victories in trials relating to the liquid crystal display, municipal bonds and coastal freight investigations. The division also achieved convictions in its auto parts, real estate foreclosure auctions and tax liens cartel investigations.
Other newsletter articles describe the division’s active civil enforcement program–as evidenced by the six civil cases currently in litigation–in key sectors such as health care, telecommunications and technology, transportation, office supplies and other consumer products.The newsletter also features articles about some of the division’s talented career litigators, the division’s new economics deputy, and competition advocacy efforts involving public workshops on intellectual property and most favored nations clauses.
The newsletter can be found at http://www.justice.gov/atr/public/division-update/2013/index.html . Within each article, hyperlinks are provided so that the reader can easily access relevant documents such as press releases, court filings and speeches.37 Arrested for Alleged Roles in Austin-Based Drug Distribution OperationsRead the Press Release
Federal, state and local authorities have arrested 37 individuals in connection with two related drug trafficking conspiracies based in Austin announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, and Drug Enforcement Administration Special Agent in Charge Javier Pena. A list of the arrested defendants is attached.
A three-count federal grand jury indictment (A13CR164), returned on April 2, 2012, and unsealed yesterday, charges 27 individuals with one count of conspiracy to possess with intent to distribute and distribution of methamphetamine. The indictment also charges Gabriel Trevino with one count of possession with intent to distribute and distribution of heroin. Jose Rodriguez, Jose Hernandez, Genaro Arellano and Maria Granados also face one count of conspiracy to commit money laundering. Authorities allege that Jose Rodriguez-Campuzano was the Austin cell head of a large Mexican based trafficking organization associated with the Knights Templar. Using hidden compartments in automobiles, the organization shipped methamphetamine and cocaine to defendant Jesse Trevino’s business, JT Body and Paint in Austin, where it would be prepared for shipment to distributors in Dallas, Oklahoma City, as well as cities in other states. During this investigation, authorities have seized over 75 kilograms of methamphetamine, ten kilograms of cocaine and two kilograms of heroin attributed to this distribution network.
A separate federal grand jury indictment (A13CR166), also returned on April 2, 2012, and unsealed yesterday, charges 14 individuals for their roles in a cocaine and methamphetamine distribution operation. The alleged leader of the organization, Jose Escamilla, as well as Rafael Ayala, Dai Zavala, Trocalle Amos and Brian Griffin are charged with one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine and one count of conspiracy to possess with intent to distribute and distribution of methamphetamine. Edgar Morales and Marco Ayala are charged in the cocaine conspiracy count; Salvador Cabral, Jessica Mitchell and David Cooke, in the methamphetamine conspiracy count. Escamilla, Morales, Ayala, Zavala, Cooke, Josue Pineda and James Dilworth are charged with one count of conspiracy to commit money laundering. Authorities allege that cocaine and methamphetamine were being transported from the Rio Grande Valley to Marco and Rafael Ayala in Austin under the direction of Jose Escamilla. Once in Austin, the drugs would be distributed locally and also outside of Texas. During the investigation, agents were able to seize multiple loads of drugs and proceeds from the sale of drugs. On one occasion, a load of 20 kilograms of cocaine was seized from a hidden compartment in an 18 wheeler. Agents seized multiple kilogram quantities of cocaine and marijuana during the course of the investigation as well as over $1,000,000 in suspected drug proceeds.
“The indictments returned this week represent the latest blow by federal and state law enforcement agencies against drug trafficking organizations in and around Austin. As a result of these charges, we hope to take more than forty alleged drug dealers out of circulation, and expect the evidence to show that their activities involved the distribution of millions of dollars’ worth of methamphetamine, cocaine, and other illegal drugs in this community and beyond,” stated United States Attorney Robert Pitman.
Upon conviction of the cocaine or methamphetamine conspiracy charge, the defendants face between ten years and life in federal prison; heroin conspiracy charge, defendants face between five and 40 years in federal prison; and, money laundering conspiracy charge, defendants face up to 20 years in federal prison.
“The magnitude of this investigation exhibits the patience, determination and skill used by Drug Enforcement Administration (DEA) Special Agents and our law enforcement colleagues,” said DEA Special Agent in Charge Javier Peña. “We are committed to staying the course until drug trafficking organizations like this one are fully dismantled.”
“Today’s dismantlement of this trafficking organization is a further step towards making Austin a safer community,” stated FBI Special Agent in Charge Armando Fernandez. “Our combined law enforcement efforts will continue to be the tool which most effectively removes organized criminals from our society.”
These cases resulted from investigations conducted by the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) along with the Central Texas High Intensity Drug Trafficking Area (HIDTA). The Central Texas HIDTA is made up of investigators from the following agencies: DEA, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), United States Marshals Service, Texas Department of Public Safety, Austin Police Department, Round Rock Police Department, Georgetown Police Department, Cedar Park Police Department, Temple Police Department, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office and the Bastrop County Sheriff’s Office. The Texas Department of Criminal Justice-Office of Inspector General and the Kingsville Specialized Crime and Narcotics Task Force also assisted in this investigation.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
U.S. v. Jose Rodriguez-Campuzano, et al. -- A13CR164
Name Age Residence Indicted Counts
**JOSE RODRIGUEZ-CAMPUZANO 26 Austin, TX 1,3
**JOSE HERNANDEZ 32 Austin 1,3
JESSE TREVINO 33 Austin 1
**MARIN ARIAS 21 Austin 1
**BRIAN MCCARTY 26 Sanford, NC 1
**SAUL ZUNIGA
JAIME EGUIA 38 Brownsville, TX 1
HECTOR PAREDES 22 Austin 1
RODRIGO RANGEL 32 Del Valle, TX 1
JEFFREY LOEHR 28 Austin 1
ROGELIO CASTANEDA
JOSE ZAVALA 48 Duncanville, TX 1
ENRIQUE ZAVALA 22 Brownsville, TX 1
ELIAZAR GARZA 46 Dallas, TX 1
ELVIRA GAMBOA 35 Austin 1
RAMON GAMBOA 40 1
GABRIEL TREVINO 21 Austin 2
STEPHANIE BLANCO 20 LaJoya, TX 1
BLANCA BRISENO 55 LaJoya, TX 1
**OSCAR REYNA 27 Austin 1
**CHRISTIAN HERNANDEZ 19 Houston, TX 1
GENARO ARELLANO 33 Austin 3
MARIA GRANADOS 45 Austin 3U.S. v. Jose Escamilla, et al. – A:13CR166
JOSE ESCAMILLA 35 Round Rock, TX 1,2,3
EDGAR MORALES 26 Austin, TX 1,3
**RAFAEL AYALA 24 Austin 1,2,3
**MARCO AYALA 32 Austin 1,3
**DAI ZAVALA 39 Del Valle, TX 1,2,3
JOHN GARCIA 25 Austin 1,2
**TROCALLE AMOS 34 Austin 1,2,3
GREG ALLEN JAMES 36 Austin 1
**BRIAN GRIFFIN 31 Austin 1,2
SALVADOR CABRAL 49 Austin 2
JESSICA MITCHELL 37 Buda, TX 2
DAVID COOKE 29 Newark, DE 2,3
JOSUE PINEDA 28 3
JAMES DILWORTH 53 Houston, TX 3** Were already in custody prior to yesterday’s arrests
10 April 2013
Wick Resident Sentenced on “Bath Salt’s ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - A 36 year old Wick, West Virginia, resident was sentenced on April 1, 2013, in United States District Court in Wheeling before Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that PHILLIP JAMES HAMILTON, JR., was sentenced to 12 months and 1 day imprisonment to be followed by three years of supervised release. HAMILTON entered a plea of guilty on October 11, 2012, to Conspiracy to Distribute a Synthetic Drug known as “Bath Salts”. The substances in this case contained the chemicals Methylenedioxypyrovalerone (MDPV) and N-methyl-N- ethylcathione (4-MEC). HAMILTON and his co-defendant Steven Kloh, who was sentenced in October of 2012 to 24 months imprisonment, obtained the “bath salts” in Columbus, Ohio, from a convenience store and then returned to rural Tyler County, West Virginia, where they repackaged them and resold them.
“Bath Salts”, which is how they are referred to among users and dealers, are synthetic chemical compounds created to simulate other controlled substances such as methamphetamine and ecstasy, and mimic their psychological and hallucinogenic effects. The substances are addictive and are often sold at gas stations, convenience stores, and over the internet.
HAMILTON also forfeited $608 in United States currency seized on September 6, 2011, in Tyler County, West Virginia, which is property derived from proceeds obtained directly or indirectly from the drug activity.
HAMILTON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
This case was prosecuted by Assistant United States Attorney John C. Parr and was investigated by the Tyler County Sheriff’s Department and the Drug Enforcement Administration.
Uvalde Texas Mexican Mafia Member Sentenced to Life in Federal Prison on Racketeering Offenses as Well as Assaulting A Federal OfficerRead the Press Release
In Del Rio today, 24-year-old Texas Mexican Mafia member Javier “Javi” Guerrero was sentenced to three consecutive life terms plus 210 months in federal prison for committing racketeering offenses and assaulting a guard at the GEO Correctional Facility in Val Verde County announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, ICE-HSI Special Agent in Charge Vincent Iglio, United States Marshal Robert Almonte, Texas Department of Public Safety Director Steve McCraw and Val Verde County Sheriff Joe Frank Martinez.
In July 2011, a federal jury found Guerrero guilty of several Racketeer Influenced Corrupt Organization (RICO)-based charges including one count of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering and two counts of violent crimes in aid of racketeering. Those charges centered around various federal racketeering offenses committed in Uvalde, Eagle Pass, Del Rio and the surrounding area including the murder of Christopher Mendez on December 6, 2006, near Concan, Texas, and Jose Damian Garza in Hondo, Texas, on July 19, 2008.
“Mr. Guerrero and those involved in organized criminal activity, including those in the Mexican Mafia and other violent groups, should know that we will leave no stone unturned in prosecuting them and making sure that they are put where they can no longer pose a threat to the public. For Mr. Guerrero, this will be for the rest of his life,” stated United States Attorney Robert Pitman.
Guerrero is the last of twelve defendants convicted in this conspiracy to be sentenced to federal prison for RICO-based violations. Prison terms handed down range from seven years incarceration to life in federal prison. All twelve defendants conspired to conduct the affairs of the Texas Mexican Mafia through a pattern of racketeering activity, which included murder, solicitation of murder, drug trafficking, and extortion. The extortion took the form of coercive collection of a ten percent drug tax, also known as “the dime,” from drug distributors known to the members of the criminal enterprise. Collection was enforced by robbery, serious bodily injury, or other acts of violence, including death.
“Today's sentencing confirms the seriousness of our collective efforts to address the outlaw activities of the TMM and the continued threat they pose to our communities,” stated FBI San Antonio Division Special Agent in Charge Armando Fernandez.
“Today’s significant prison sentence of this dangerous individual is a positive step toward ridding our communities of violent street gangs,” said Vincent Iglio, special agent in charge of ICE HSI in San Antonio. ‘This sentence sends a strong message that HSI and its law enforcement partners will continue to conduct aggressive enforcement actions against members and their associates to bring them to justice”.
On October 25, 2011, while in custody awaiting sentencing on the federal racketeering-based charges, Guerrero assaulted a corrections officer by striking the officer in the face with his fists and his knees. As a result, the guard suffered cuts to the nose as well as facial bruising and lacerations. On April 24, 2012, Guerrero pleaded guilty to one count of assaulting a federal officer.
“We’re pleased with today’s sentence. It sends a strong message to anyone who would assault a federal officer,” stated United States Marshal Robert Almonte.
The RICO investigation was conducted by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI), and the Texas Department of Public Safety – Criminal Investigations Division, with assistance from the Drug Enforcement Administration, the Hondo Police Department, Texas Department of Public Safety–Texas Rangers, Uvalde Police Department and the Uvalde County Sheriff’s Office. The assault charge resulted from a joint investigation by the United States Marshals Service and investigators from the Val Verde County Sheriff’s Office and officials from the GEO Correctional Facility.U.S. Attorney: We're Making Progress in Fight Against Sexual AssaultRead the Press Release
By Barry Grissom, U.S. Attorney for the District of Kansas
Over the past 20 years, the percentage of victims of rape and sexual assault who reported the assault to the police has increased from 28.8 percent in 1993 to 50 percent today. This is both an indication of how far we’ve come and a reminder of how far we have to go.
April is Sexual Assault Awareness month and it is a time to reflect on the tremendous achievements we have made since the passage of the Violence Against Women Act (VAWA) 18 years ago. Sexual assault and rape are problems that affect people of every background, ethnicity, age, ability or sexual orientation. Nearly 1 in 5 (18.3 percent) women and 1 in 71 (1.4 percent) men in the United States have been raped at some time in their lives, translating into 22 million women and 1.6 million men.The Violence Against Women Act forever changed the way this nation meets our responsibility to survivors of domestic violence and sexual assault. The Justice Department applauds the recent bipartisan reauthorization of the act. The legislation was signed in March.
The reauthorization of the act expanded the historic legislation that defends the rights of all victims and survivors. The new tribal provisions are of particular importance to all of us at the Justice Department. The act closes jurisdictional gaps that had long compromised American Indian and Alaska Native women’s safety and access to justice. This change supports the sovereignty of tribes and holds perpetrators accountable – a necessary step to reducing violence against native women.The reauthorization also ensures that lesbian, gay, bisexual and transgender survivors have access to the services they need and deserve, enables victims in publicly subsidized housing to stay safe by transferring to a different unit or location and adds protections for college students who have some of the highest rates of rape in the nation.
Across the federal government, we are working to support survivors and to prevent sexual violence. Last year, the Department of Justice modernized the definition of rape used to collect our nation’s crime statistics. This year, the department is working with law enforcement agencies to implement this change and develop new guidelines for investigating sexual assault cases.It is only in working together that we can make a difference and save lives, and the Justice Department will continue to take every possible step to enforce laws protecting victims of violence and to provide resources to aid victim service providers.
Barry Grissom is the United States Attorney for the District of Kansas.
Two Truck Drivers Indicted for Child Sex TrafffickingRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two St. Joseph, Mo., area commercial truck drivers – one of whom is a registered sex offender – have been indicted on charges related to the commercial sex trafficking of a child.
Tony Eugene Wardlow, 54, of St. Joseph, and Thomas Farrell, 48, of DeKalb, Mo., were charged in a six-count indictment that was returned under seal by a federal grand jury on March 13, 2013. The indictment was unsealed and made public today upon the arrests and initial court appearances of Wardlow and Farrell. Wardlow remains in federal custody pending a detention hearing.
Wardlow is a registered sex offender who was convicted in Nodaway County, Mo., of sexual misconduct involving a minor and endangering the welfare of a child. Wardlow is self-employed as a commercial truck driver, doing business as Prideco, LLC. Farrell is also self-employed as a commercial truck driver, doing business as Farrell Trucking & Hay, LLC.
The federal indictment alleges that Wardlow caused a child victim (identified as “CV”) to engage in prostitution between Aug. 1, 2011 and Sept. 30, 2011. Wardlow is also charged with enticing a minor to engage in prostitution and with transporting a minor across state lines from Missouri to Texas to engage in prostitution. The indictment charges Farrell with enticing the victim to engage in prostitution and with transporting the victim across state lines from Missouri to Texas to engage in prostitution.
Wardlow is also charged with being a felon in possession of a firearm. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wardlow was allegedly in possession of a Marlin .22-caliber rifle on Dec. 12, 2012. Wardlow has prior felony convictions for sexual misconduct, endangering the welfare of a child and being a felon in possession of 17 firearms.
In a motion filed with the court, the government seeks to hold Wardlow in federal custody without bond. The motion states that Wardlow is charged with multiple offenses for which the maximum sentence is life imprisonment. Wardlow’s prior sex conviction, in which the victim was a minor, may result in a mandatory life sentence.
According to the detention motion, the government will present evidence during the detention hearing of Wardlow’s repeated sexual intercourse with the child victim, transportation to and through other states to engage in this prostitution activity with himself and others, and violent threats against the child victim should she ever inform anyone else of these incidents.
At the detention hearing, the government will also present evidence that the child victim informed law enforcement that Wardlow injured her on multiple occasions, either during or separate from their sexual activity. Beyond the physical injuries, the motion says, Wardlow often threatened the child victim in an effort to keep her from ever going to the authorities, violent threats that included the threat of death. Wardlow allegedly pointed out rivers as he transported the child victim across the country and told her that if she ever told law enforcement, he would dump her body in those rivers.
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 Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Prairie Village, Kan., Police Department, the Kansas City, Mo., Police Department, the U.S. Department of Transportation, the Missouri State Highway Patrol and the Overland Park, Kan., Police Department in conjunction with the Human Trafficking Rescue Project.
Two Miami Men Convicted in Identity Theft Tax Refund Fraud Scheme Involving over 1,000 VictimsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Sergio Velazquez, Chief, Hialeah Police Department (HPD), announced the conviction at trial of Earnest Baldwin, 36 of Miami, and Earl Baldwin, 42 of Miami, for their participating in a tax refund scheme using stolen identities to convert government monies for their own use. More specifically, both were convicted of one count of conspiracy to defraud the government, one count of conspiracy to commit access device fraud, one count of access device fraud, and multiple counts of aggravated identity theft, in connection with an identity theft tax refund fraud scheme.
According to testimony and evidence presented at trial, the defendants were involved in an identity theft tax fraud scheme that operated from July 2011 through June 2012. During the course of their fraud scheme, approximately $1.7 million in fraudulent refund claims were submitted to the IRS for payment. Nearly all of these claims requested payment of the refunds onto pre-paid debit cards and some of these claims were filed from Earl Baldwin’s residence.
The trial testimony and evidence further showed that Earnest Baldwin was found with over 1,000 individual names, dates of birth, and Social Security numbers and approximately 40 pre-paid debit cards in other people’s names. Some of these papers seized included high school report cards with identity information and data from an organization for disabled persons containing identity information. The evidence at trial also showed that both defendants withdrew money from debit cards loaded with fraudulent refunds in the names of victims in the papers and notebooks found on Earnest Baldwin.
Sentencing for both defendants has been scheduled for June 17, 2013 beginning at 8:30 AM before U.S. District Judge Cecilia Altonaga. Defendant Earnest Baldwin faces a maximum possible prison sentence of 41 years and defendant Earl Baldwin faces a maximum possible prison sentence of 29 years.
Two additional co-conspirators, Lineten Belizaire, 22, and Marckell Steward, 21, both of Miami, previously pled guilty in this matter. Belizaire pled guilty to access device fraud and aggravated identity theft on March 18, 2013. She faces a maximum possible sentence of 12 years and is scheduled to be sentenced on May 28, 2013 at 8:30 AM before Judge Altonaga. Steward pled guilty to conspiracy to commit access device fraud and aggravated identity theft on January 31, 2013. He faces a maximum possible sentence of 12 years and is scheduled to be sentenced at a later date.
Mr. Ferrer commended IRS-CID, USPIS, and HPD for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Maurice Johnson.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ten Indicted in Connection with Illegal Poaching of Walleye on Leech Lake and Red LakeRead the Press Release
MINNEAPOLIS—Four federal indictments have been filed against a total of ten individuals in connection with illegal poaching and marketing of walleye and other protected fish on the Red Lake and Leech Lake Indian reservations. All ten people were charged with one count of transportation, sale, and purchase of fish taken in violation of the Lacey Act.
The first indictment charges Larry W. Bellefy, age 53, of Bagley; Thomas P. Sumner, age 54, of Red Lake; and Brian W. Holthusen, age 47, also of Red Lake. The second indictment charges Michael D. Brown, age 54, no known address; and Michael J. Nei, age 48, of Bemidji. The third indictment charges Jerry A. Reyes, age 51, of Cass Lake; and Marc L. Lyons, age 61; Frederick W. Tibbetts, age 61; and Alan D. Hemme, age 55, all of Bena. The fourth indictment charges Larry Good, age 58, of Red Lake. All four indictments allege that the defendants knowingly engaged in conduct that involved the sale and purchase of fish with a market value in excess of $350.
The first indictment alleges that between July 2009 and July 2011, Bellefy, Sumner, and Holthusen took fish from Red Lake without the approval of the Red Lake Fisheries Association. The indictment specifically asserts that Sumner and Holthusen obtained the fish and then sold them to Bellefy, who resold them.
The second indictment alleges that between July 2010 and July 2011, Brown and Nei netted fish from Leech Lake for commercial purposes. That indictment specifically states that Brown netted the fish and then sold them to Nei.
The third indictment alleges that between July 2009 and July 2011, Reyes, Lyons, Tibbetts, and Hemme also took fish from several lakes on the Leech Lake Indian Reservation. That indictment specifically claims that Ryes, Lyons and Tibbetts took the fish from the lakes and then sold them to Hemme, who owns a restaurant in Bena.
The fourth indictment alleges that between July 2009 and July 2011, Good took fish from Red Lake without approval of the Red Lake Fisheries Association.
Authorities began investigating these black-market activities in July 2009. During the course of that investigation, officers conducted numerous controlled purchases of illegally obtained fish. They also seized fish during the execution of several search warrants. Authorities estimate the fair market value of the fish illegally obtained through the activity covered by these four indictments to be in the hundreds of thousands of dollars.
If convicted, the defendants face a potential maximum penalty of five years in federal prison on each count. And because the federal justice system does not have parole, a convicted offender will spend virtually his entire sentence behind bars. Any sentence, however, would be determined by a federal district court judge.
These cases are the result of investigations by the U.S. Fish and Wildlife Service, the Minnesota Department of Natural Resources, the Leech Lake Division of Resource Management, and the Red Lake Department of Natural Resources. They are being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Tampa Couple Indicted for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of a seventeen-count indictment charging Tressa V. Guy and Brian E. Simmons with conspiracy to commit wire fraud and multiple counts of wire fraud, access device fraud, and aggravated identity theft. If convicted, they each face a maximum penalty of twenty years in federal prison on the conspiracy count; twenty years in federal prison on each wire fraud count; and 10 years in federal prison on each charge of access device fraud, all to be followed by two consecutive years in prison for each aggravated identity theft count.
According to the indictment, Guy and Simmons participated in a scheme to defraud the United States Treasury that caused at least 322 fraudulent federal income tax returns to be filed with the IRS claiming at least $2,701,844 in fraudulent refunds. Guy, Simmons, and others would direct the fraudulent tax refunds into bank accounts linked to prepaid debit cards issued in the names of third parties without the third parties’ knowledge. Guy and Simmons also used the prepaid debit cards issued in this manner to make cash withdrawals in Florida and Georgia and to pay for personal expenditures.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service, the Tampa Police Department, and the Monroe County (Georgia) Sheriff’s Office with assistance from the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Tallahassee Tax Preparer Convicted of Tax FraudRead the Press Release
TALLAHASSEE – Kenneth L. Barber, 62, of Tallahassee, Florida, was convicted by a federal jury in Tallahassee today of wire fraud, preparing false tax returns, making a false statement to a bank, and conspiracy to commit tax fraud. The verdict was announced by Pamela C. Marsh, the United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that Barber ran and operated a local tax preparation business where he encouraged preparers to falsify clients’ tax returns. Barber’s former employees testified that the defendant trained them on how to prepare fraudulent returns to increase the clients’ tax refunds. At Barber’s instruction and direction, the employees filed returns falsifying income, deductions, credits, dependents, and filing status in order to obtain inflated tax refunds and to limit the tax due to the IRS. Government agents testified that the scheme resulted in a loss of more than $700,000.
Barber was convicted of making false statements to a financial institution based upon evidence that he provided a bank with false information concerning his income in order to qualify for loans totaling more than $300,000. Records introduced at trial showed that personal and corporate tax returns Barber submitted to Wachovia Bank reflected substantially greater income than the returns the defendant actually filed with the IRS.
The defendant is facing a maximum sentence of five years in prison for conspiracy, three years in prison on each count of preparing fraudulent tax returns, twenty years in prison on each count of wire fraud, and thirty years in prison on each count of making a false statement to a bank.
In announcing the verdict, U.S. Attorney Marsh said, “As honest American citizens are filing their tax returns in advance of Monday’s deadline, this verdict emphasizes that we continue to aggressively pursue those who defraud and illegally manipulate the tax system. Tax return preparers who engage in illegal schemes abuse positions of trust and willfully undermine the entire tax system. I am grateful to the dedicated public servants who tirelessly investigated and prosecuted this case.” U.S. Attorney Marsh specifically praised the work of the Internal Revenue Service, whose investigation led to the convictions in the case
Barber is scheduled for sentencing on June 26, 2013 before United States District Judge Robert L. Hinkle.
The case was prosecuted by Assistant U.S. Attorney Winifred Acosta NeSmith.St. Pauls Man Sentenced for Possession of FirearmRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today MONTREAL MITCHELL, 32, of St. Pauls, North Carolina was sentenced by Senior United States District Judge Malcolm J. Howard to 110 months imprisonment, followed by 3 years of supervised release.
On January 8, 2013, MITCHELL pled guilty to felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g).
According to the investigation, on December 9, 2010, MITCHELL assaulted a woman, pointed a firearm at her, and threatened to kill her. The firearm was recovered still in MITCHELL’S possession.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Robeson County Sheriff’s Office, Fayetteville Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Seven Charged in Health Care Fraud SchemeRead the Press Release
Medicare Billed $3.6 Million for Unnecessary Ambulance Rides
PHILADELPHIA – An indictment was unsealed today charging Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntington Valley, PA and Camp Hill, PA, its owner, Anna Mudrova, and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, Valeriy Davydchik, and Khusen Akhmedov, with conspiracy to commit health care fraud. The alleged scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants were also charged with related crimes including making false statements in connection with health care matters, aggravated identity theft, paying kickbacks to patients, and money laundering, announced United States Attorney Zane David Memeger.
Valeriy Davydchik, 58, and Khusen Akhmedov, 22, Mikhail and Irina Vasserman, both 50, and Aleksandr Vasserman, 29, all of Philadelphia, were arrested this morning. Mudrova, 40, Gerasyuk, 41, also of Philadelphia, will make a court appearance tomorrow. According to the indictment, the defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements. It is alleged that the defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. It is further alleged that the defendants themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants allegedly billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the allegedly fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.
If convicted, the defendants face substantial terms of imprisonment and fines. If convicted, Penn Choice Ambulance Inc. faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations. All defendants could also be excluded from participating in federal health care programs.
Bank accounts and other assets were seized which are subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
Click here to view the indictment
An Indictment is an accusation, as is an Information. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525San Antonio-Based Texas Mexican Mafia Members SentencedRead the Press Release
United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and Texas Department of Public Safety Director Steve McCraw announced that two San Antonio-based members and associates of the Texas Mexican Mafia (TMM), including an individual whom authorities believe held the organizational rank of “Free World General,” have been sentenced to lengthy federal prison terms for their roles in a drug distribution conspiracy.
Appearing before United States District Judge Xavier Rodriguez this afternoon, 45-year-old former TMM General Robert Carreno (aka “Lil Bit”) was sentenced to 300 months in prison for his role in a conspiracy to distribute approximately 48 kilograms of heroin. Guadalupe Ramos (aka “Lupio”), age 48, was sentenced to 210 months in prison.
From December 1, 2009, to July 20, 2011, the defendants were responsible for distributing at least 48 kilograms of heroin, which the TMM sold for $750,000.00. Also, Carreno oversaw the transportation of the heroin from Laredo to San Antonio, for further distribution by TMM members.
Other sentences handed down to co-defendants include: Gabriel Quiroz (aka “Biker”), age 46, sentenced to 168 months; Julio Villanueva (aka “Shorty Hawk”), age 56, sentenced to 262 months; Teresa Alonzo (aka “Tia”), age 63, sentenced to 58 months ; Manuel Gonzales (aka “Speedy”), age 36, sentenced to 188 months; Joseph Sanchez (aka “Cowboy”), age 41, sentenced to 121 months; and Santos Trevino (aka “Dedos,” and “Beatles”), age 20, was sentenced to 120 months.
Co-defendant Alexander Garza (aka “Animal”), age 35, is pending sentencing in May; and 39-year-old Tony Berlanga (aka “Tony”) is pending trial in May.
This investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force, the Texas Department of Public Safety--Criminal Investigations Division, Homeland Security Investigations (HSI), San Antonio Police Department, Bexar County District Attorney’s Office, New Braunfels Police Department and the 81st Judicial District Attorney’s Office.
Ringleader of Large-Scale Identity Theft Scheme Sentenced in Manhattan Federal Court to 10 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Eric T. Schneiderman, the New York State Attorney General, announced that PHILLIP SMITH was sentenced today in Manhattan federal court to 10 years in prison for running a large-scale identity theft scheme in which he and his co-conspirators used stolen identities of over 180 people to make more than $1 million worth of fraudulent purchases at retail stores in New York City and elsewhere. SMITH pled guilty in November 2012 and was sentenced before U.S. District Judge John F. Keenan.
Manhattan U.S. Attorney Preet Bharara stated: “Phillip Smith and his co-conspirators engaged in a ‘soup-to-nuts’ identity theft scheme that ripped off retailers for more than $1 million and had the potential to compromise his victims’ credit ratings. We take identity theft crimes very seriously and will continue to prosecute them to the full extent of the law.”
New York State Attorney General Eric Schneiderman stated: “This defendant victimized businesses and hundreds of New York consumers in a systematic and elaborate scheme to line his own pockets. My office will aggressively crack down on identity theft – and Phillip Smith will spend a decade behind bars for his crimes.”
According to the Complaint, Indictment, and Superseding Informations filed in this case, as well as statements made during court proceedings:
Beginning in 2008, PHILLIP SMITH obtained stolen identities, including the names and social security numbers of legitimate accountholders at large retail chains, including Home Depot, Sears, Kmart, and Kohl’s. After obtaining the stolen identities, SMITH called the customer service numbers at the retail stores to confirm that the victims had credit accounts and to determine the available credit limit. Once that information was obtained from the stores, SMITH procured fake driver’s licenses in the names of the victim accountholders but with photos of co-conspirators, including Eugene Smith and Winston Harris.
PHILLIP SMITH then drove his co-conspirators, including Harris and Eugene Smith, to retail stores throughout New York, Connecticut, New Jersey, and Pennsylvania, where they purchased more than $1 million of merchandise and gift cards using the victims’ accounts. The co-conspirators used the fake driver’s licenses at the time of those purchases to impersonate the victim accountholders.
PHILLIP SMITH obtained the fake driver’s licenses from Mahmoud Abdul Hussein, Ali Abdul Hussein, and Fadal Abdul Hussein, three brothers who operated out of two storefronts in the Greenwich Village area of Manhattan.
After the fraudulent purchases had been made, PHILLIP SMITH drove his co-conspirators, including Harris and Eugene Smith, to other locations of the retailers, where they returned the fraudulently acquired merchandise for store credits. The credits were then sold to other participants in the scheme, including Francis Hidalgo and Randy White, who in turn resold the store credits and gift cards to others.
In addition, Hidalgo used some of the proceeds and gift cards he obtained through the identity theft scheme to purchase building materials so that he could convert two warehouses in the Bronx into marijuana growhouses for a large marijuana distribution organization. A search of one of these growhouses resulted in the seizure of over 400 marijuana plants.
To date, eight of the nine defendants charged with participating in this scheme have been convicted. Charges remain pending against one defendant.
In addition to the prison term, Judge Keenan sentenced PHILLIP SMITH, 55, of the Bronx, New York, to three years of supervised release. SMITH was also ordered to forfeit $404,000 and to pay restitution of $1,153,000.
Francis Hidalgo, 45, of Pomona, New York, was sentenced by Judge Keenan on March 13, 2013 to 78 months in prison, and was ordered to pay $557,816 in restitution.
Randy White, 57, of the Bronx, New York, was sentenced by Judge Keenan on February 7, 2013 to time served, and was ordered to pay restitution in the amount of $46,000.
Winston Harris, 57, of Brooklyn, New York, was sentenced by Judge Keenan on January 24, 2013 to 48 months in prison, and was ordered to pay $70,000 in restitution.
Eugene Smith, 59, of the Bronx, New York, is scheduled to be sentenced by Judge Keenan on June 18, 2013.
Mahmoud Abdul Hussein, 28, Ali Abdul Hussein, 34, and Fadal Abdul Hussein, 23, of Seaford, New York, are scheduled to be sentenced by Judge Keenan on May 9, 2013.
Charges remain pending against Melissa Morton, who allegedly impersonated female identity theft victims at retailers. Morton is presumed innocent unless and until proven guilty.
Mr. Bharara praised the New York Attorney General’s Office, the Immigration and Customs Enforcement’s Homeland Security Investigations, the New York State Department of Financial Services, and the New Jersey Department of Human Services Police for their excellent assistance in the investigation of this matter. He also thanked the NYPD, the New Jersey Department of Labor and Workforce Development, Home Depot, and Kohl’s for their support and cooperation in the investigation.
The case is being handled by Assistant United States Attorney Joseph P. Facciponti of the
Office’s Complex Frauds Unit, Assistant Attorney General Meryl Lutsky, who has been
designated a Special Assistant U.S. Attorney, and Assistant Attorney General Tyler Reynolds.
Reva Man Charged with Stalking, ID Fraud, Other ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A resident of Reva, Virginia, who was arrested in March on a Federal criminal complaint, has been indicted by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Charlottesville.
The grand jury has charged Kenneth Edward Kuban, 61, of Reva, Virginia, with one count of stalking, one count of stalking in violation of a protection order, one count of identification fraud and one count of violating a protection order within the special maritime and territorial jurisdiction of the United States
The charges in the indictment allege that Kuban knowingly caused others to travel in interstate commerce to unknowingly stalk the victim, thereby placing the victim in fear of serious bodily injury and causing substantial emotional distress.
If convicted, the defendant faces a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000 on each count.
The investigation of the case was conducted by the Library of Congress-Office of the Inspector General. Special Assistant United States Attorney Jason Beaton will prosecute the case for the United States.
A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Removed Alien Charged with Immigration ViolationRead the Press Release
PITTSBURGH, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 9, 2013, named Francisco Javier Abundes- Montiel, 32, of Mexico, as the sole defendant.
According to the indictment, Abundes-Montiel, an alien, was removed from the United States by United States Immigration and Customs Enforcement on April 2, 2011. He was found on March 1, 2013, by the Center Township Police Department.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Prominent Tri-State Cardiologist Admits Record $19 Million Billing Fraud Scheme, Exposing Patients to Unskilled and Unnecessary Medical TreatmentRead the Press Release
NEWARK, N.J. – A well-known cardiologist and the founder, CEO, and sole owner of a pair of large medical services companies in New Jersey and New York admitted today to conspiring in a multimillion-dollar health care fraud scheme that subjected thousands of patients to unnecessary tests and potentially life-threatening, unneeded treatment, as well as treatment by unlicensed or untrained personnel. The guilty plea was announced today by New Jersey U.S. Attorney Paul J. Fishman.
Jose Katz, 68, of Closter, N.J., pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Information charging him with one count of conspiracy to commit health care fraud and one count of Social Security fraud arising from a separate scheme to give his wife a “no show” job and make her eligible for Social Security benefits.
As part of his plea agreement with the government, Katz agreed that the loss amount sustained by Medicare, Medicaid and other insurers victimized by the fraudulent billings was $19 million. U.S. Department of Health and Human Services, Office of Inspector General and FBI records indicate the loss amount suffered by the victims is the largest recorded in New Jersey, New York and Connecticut for an individual practitioner convicted of health care fraud.
“After years of prominence in his field, Jose Katz will now be remembered for his record-setting fraud,” said U.S. Attorney Fishman. “Katz was so focused on illegal profits that he directed unlicensed and unqualified providers to treat his patients, ordered unnecessary tests and cavalierly ordered treatments that could have caused patient harm. Ripping off the government and insurance companies is bad enough; risking patient health in the bargain is inexcusable.”
“Health care fraud is not a victimless crime. It is a plague on American society and could put the health of people who need medical care at risk, said FBI Special Agent in Charge Aaron T. Ford. “The FBI, together with its law enforcement and regulatory agency partners, will vigorously investigate these crimes and hold those responsible accountable.”
“I am proud to be part of the federal team that brought Dr. Katz to justice after a complicated investigation,” said Tom O’Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Regional Office. Dr. Katz had very little regard for his patients and the Medicare program, as evidenced by his blatant behavior. Criminals can be assured that if they attempt to defraud Medicare and their patients, they will be brought to justice.”
According to documents filed in this case and statements made in court:
Katz was the founder, CEO, and sole equity-holder of Cardio-Med Services LLC (Cardio-Med), and Comprehensive Healthcare & Medical Services LLC (Comprehensive Healthcare). From 2004 through 2012, Cardio-Med had offices in Union City, Paterson, and West New York, N.J., and Comprehensive Healthcare had offices in Manhattan and Queens, New York. Both Cardio-Med and Comprehensive Healthcare provided cardiology, internal medicine and other medical services to individual patients. During that time period, Katz conspired to bill Medicare Part B, Medicaid, Empire BCBS, Aetna and others for unnecessary tests and unnecessary procedures based on false diagnoses, and for medical services rendered by unlicensed practitioners.
Between July 2006 and February, 2009, Katz spent more than $6 million for advertising on Spanish-language television and radio stations. The ads attracted hundreds of patients to Cardio-Med and Comprehensive Healthcare every day. Overall, Katz was able to bill Medicare and Medicaid more than $70 million for his services from 2005 through 2012.
Over the course of the conspiracy, Katz ordered and performed essentially the same battery of diagnostic tests for nearly all the patients he treated, regardless of their symptoms. Katz also instructed his non-physician employees to order and perform diagnostic tests for patients of other doctors working at his offices, even though he had not examined those patients and the other physicians had not ordered the unnecessary tests.
Most significantly, Katz admitted that he falsified patient charts with fictitious and boilerplate symptoms and falsely diagnosed a majority of his Medicare and Medicaid patients with coronary artery disease and debilitating and inoperable angina. He also admitted to making the diagnoses to justify prescribing and administering an unnecessary treatment for those patients called enhanced external counter pulsation, or EECP. Katz even prescribed EECP treatments for some patients with contraindications for the treatment, therefore subjecting those patients to a substantial risk of serious injury or death.
From 2005 through 2012, Medicare and Medicaid paid Katz more than $15.6 million just for his EECP treatments, most of which were fraudulent.
In addition, Katz ordered conspirator Mario Roncal, 62, of Woodland Park, N.J. – who had a medical degree from San Juan Bautista School of Medicine in San Juan, Puerto Rico, but did not have a license to practice medicine in any of the 50 states – to treat patients, knowing he was not licensed. At Katz’s direction, Roncal held himself out to fellow employees and to patients as “Dr. Roncal,” examined new patients as well as Katz’s follow-up patients, ordered diagnostic tests, diagnosed patients with medical conditions and diseases and recommended and prescribed courses of treatment and surgery – including falsely diagnosing patients with angina and prescribing EECP treatments for those patients.
To conceal this illegal and unlicensed practice of medicine, Roncal forged Katz’s signature on paperwork associated with Roncal’s unlawful medical services, including on patient charts. During the conspiracy, Katz used his own billing numbers to bill Medicare Part B and Medicaid for the illegal services Roncal provided as though they were provided by Katz.
Roncal was indicted on March 2, 2012, for conspiracy to commit health care fraud. He entered a guilty plea on Jan. 4, 2013 and awaits sentencing.
Katz also admitted to a Social Security fraud scheme in which, from 2005 through 2012, he kept his wife on Cardio-Med’s payroll though she performed little or no work. During the course of the scheme, Katz sent false W-2 forms for calendar years 2005 through 2011 to the U.S. Social Security Administration purportedly reflecting $1,251,604 in earnings for his wife, making her eligible for an estimated $263,000 in Social Security benefits to which she was not entitled.
The health care fraud conspiracy and fraud counts with which Katz is charged carry a maximum potential penalty of 10 and five years in prison, respectively. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. At sentencing, currently scheduled before Judge Linares on July 23, 2013, Katz will also be ordered to pay restitution to victims of his offenses. Katz was granted $200,000 bail pending sentencing.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge O’Donnell; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Maria Kelokates; the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and criminal and civil investigators with the U.S. Attorney’s Office for the investigation leading to the guilty plea.
The case is being prosecuted by Assistant U.S. Attorney Scott B. McBride of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Blair R. Zwillman Esq., Parsippany, N.J.
Joseph A. Hayden Jr., Esq.; Roseland, N.J.Katz Information
Prominent Tri-State Cardiologist Admits Record $19 Million Billing Fraud Scheme, Exposing Patients to Unskilled and Unnecessary Medical TreatmentRead the Press Release
NEWARK, N.J. – A well-known cardiologist and the founder, CEO, and sole owner of a pair of large medical services companies in New Jersey and New York admitted today to conspiring in a multimillion-dollar health care fraud scheme that subjected thousands of patients to unnecessary tests and potentially life-threatening, unneeded treatment, as well as treatment by unlicensed or untrained personnel. The guilty plea was announced today by New Jersey U.S. Attorney Paul J. Fishman.
Jose Katz, 68, of Closter, N.J., pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Information charging him with one count of conspiracy to commit health care fraud and one count of Social Security fraud arising from a separate scheme to give his wife a “no show” job and make her eligible for Social Security benefits.
As part of his plea agreement with the government, Katz agreed that the loss amount sustained by Medicare, Medicaid and other insurers victimized by the fraudulent billings was $19 million. U.S. Department of Health and Human Services, Office of Inspector General and FBI records indicate the loss amount suffered by the victims is the largest recorded in New Jersey, New York and Connecticut for an individual practitioner convicted of health care fraud.
“After years of prominence in his field, Jose Katz will now be remembered for his record-setting fraud,” said U.S. Attorney Fishman. “Katz was so focused on illegal profits that he directed unlicensed and unqualified providers to treat his patients, ordered unnecessary tests and cavalierly ordered treatments that could have caused patient harm. Ripping off the government and insurance companies is bad enough; risking patient health in the bargain is inexcusable.”
“Health care fraud is not a victimless crime. It is a plague on American society and could put the health of people who need medical care at risk, said FBI Special Agent in Charge Aaron T. Ford. “The FBI, together with its law enforcement and regulatory agency partners, will vigorously investigate these crimes and hold those responsible accountable.”
“I am proud to be part of the federal team that brought Dr. Katz to justice after a complicated investigation,” said Tom O’Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Regional Office. Dr. Katz had very little regard for his patients and the Medicare program, as evidenced by his blatant behavior. Criminals can be assured that if they attempt to defraud Medicare and their patients, they will be brought to justice.”
According to documents filed in this case and statements made in court:
Katz was the founder, CEO, and sole equity-holder of Cardio-Med Services LLC (Cardio-Med), and Comprehensive Healthcare & Medical Services LLC (Comprehensive Healthcare). From 2004 through 2012, Cardio-Med had offices in Union City, Paterson, and West New York, N.J., and Comprehensive Healthcare had offices in Manhattan and Queens, New York. Both Cardio-Med and Comprehensive Healthcare provided cardiology, internal medicine and other medical services to individual patients. During that time period, Katz conspired to bill Medicare Part B, Medicaid, Empire BCBS, Aetna and others for unnecessary tests and unnecessary procedures based on false diagnoses, and for medical services rendered by unlicensed practitioners.
Between July 2006 and February, 2009, Katz spent more than $6 million for advertising on Spanish-language television and radio stations. The ads attracted hundreds of patients to Cardio-Med and Comprehensive Healthcare every day. Overall, Katz was able to bill Medicare and Medicaid more than $70 million for his services from 2005 through 2012.
Over the course of the conspiracy, Katz ordered and performed essentially the same battery of diagnostic tests for nearly all the patients he treated, regardless of their symptoms. Katz also instructed his non-physician employees to order and perform diagnostic tests for patients of other doctors working at his offices, even though he had not examined those patients and the other physicians had not ordered the unnecessary tests.
Most significantly, Katz admitted that he falsified patient charts with fictitious and boilerplate symptoms and falsely diagnosed a majority of his Medicare and Medicaid patients with coronary artery disease and debilitating and inoperable angina. He also admitted to making the diagnoses to justify prescribing and administering an unnecessary treatment for those patients called enhanced external counter pulsation, or EECP. Katz even prescribed EECP treatments for some patients with contraindications for the treatment, therefore subjecting those patients to a substantial risk of serious injury or death.
From 2005 through 2012, Medicare and Medicaid paid Katz more than $15.6 million just for his EECP treatments, most of which were fraudulent.
In addition, Katz ordered conspirator Mario Roncal, 62, of Woodland Park, N.J. – who had a medical degree from San Juan Bautista School of Medicine in San Juan, Puerto Rico, but did not have a license to practice medicine in any of the 50 states – to treat patients, knowing he was not licensed. At Katz’s direction, Roncal held himself out to fellow employees and to patients as “Dr. Roncal,” examined new patients as well as Katz’s follow-up patients, ordered diagnostic tests, diagnosed patients with medical conditions and diseases and recommended and prescribed courses of treatment and surgery – including falsely diagnosing patients with angina and prescribing EECP treatments for those patients.
To conceal this illegal and unlicensed practice of medicine, Roncal forged Katz’s signature on paperwork associated with Roncal’s unlawful medical services, including on patient charts. During the conspiracy, Katz used his own billing numbers to bill Medicare Part B and Medicaid for the illegal services Roncal provided as though they were provided by Katz.
Roncal was indicted on March 2, 2012, for conspiracy to commit health care fraud. He entered a guilty plea on Jan. 4, 2013 and awaits sentencing.
Katz also admitted to a Social Security fraud scheme in which, from 2005 through 2012, he kept his wife on Cardio-Med’s payroll though she performed little or no work. During the course of the scheme, Katz sent false W-2 forms for calendar years 2005 through 2011 to the U.S. Social Security Administration purportedly reflecting $1,251,604 in earnings for his wife, making her eligible for an estimated $263,000 in Social Security benefits to which she was not entitled.
The health care fraud conspiracy and fraud counts with which Katz is charged carry a maximum potential penalty of 10 and five years in prison, respectively. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. At sentencing, currently scheduled before Judge Linares on July 23, 2013, Katz will also be ordered to pay restitution to victims of his offenses. Katz was granted $200,000 bail pending sentencing.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge O’Donnell; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Maria Kelokates; the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and criminal and civil investigators with the U.S. Attorney’s Office for the investigation leading to the guilty plea. He also thanked the Medicaid Fraud Division of the Office of the New Jersey State Comptroller for its assistance.
The case is being prosecuted by Assistant U.S. Attorney Scott B. McBride of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Blair R. Zwillman Esq., Parsippany, N.J.
Joseph A. Hayden Jr., Esq.; Roseland, N.J.Katz Information
Pittsburgh Man Sentenced to 10 Years in Prison for Drug Law ViolationsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh was sentenced on April 9, 2013, in federal court for violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Andre Allen, 30, was sentenced to serve 120 months in prison followed by eight years of supervised release by United States District Judge Arthur J. Schwab. From January 2010 to March 3, 2011, Allen conspired to distribute and possess with intent to distribute at least 400 grams of heroin. On March 3, 2011, Mr. Allen was arrested in Pittsburgh. At that time, he possessed $3,698.00 in United States currency on his person and thirteen bricks of heroin inside his residence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Police Department, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department, and the Allegheny County Police Department for the successful investigation leading to the conviction and sentence in this case.
Pittsburgh Man Charged with Filing False Tax ReturnsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh has been indicted by a federal grand jury on charges of filing false tax returns, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on April 9, 2013, named Zenford A. Mitchell as the sole defendant.
According to the indictment, Mitchell, filed false tax returns on April 14, 2008, for calendar year 2006 and for 2007 by deliberately under reporting his income.
The law provides for a maximum total sentence of three years in prison, a fine of $250,000, or both for each count of conviction. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Internal Revenue Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pinehill, N.M., Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Charlie Cohoe, 33, an enrolled member of the Navajo Nation who resides in Pine Hill, N.M., pleaded guilty to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Cohoe was arrested on Jan. 25, 2013, on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury. According to the criminal complaint, on Jan. 18, 2013, Cohoe repeatedly stabbed another Navajo man who had agreed to drive Cohoe to a friend’s residence. The assault occurred in in Cibola County within the Ramah Indian Reservation.
During this morning’s proceedings, Cohoe pled guilty to a felony information, charging him with assault with a dangerous weapon. In entering his guilty plea, Cohoe admitted assaulting the victim with a knife, causing life-threatening injuries that required surgery.
Cohoe has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Cohoe faces a maximum penalty of ten years in prison, a $250,000 fine and three years of supervised release.
The case was investigated by the Ramah Navajo Police Department with assistance from the New Mexico State Police, the Grants Police Department and the Cibola County Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Philadelphia Man Sentenced for Laser Strike IncidentRead the Press Release
PHILADELPHIA - Daniel F. Dangler, 30, of Philadelphia, was sentenced today to three months in jail followed by seven months of home confinement for aiming the beam of a laser at an aircraft in the special aircraft jurisdiction of the United States. Dangler aimed a laser pointer at a Philadelphia television news helicopter on July 18, 2012. He pleaded guilty on October 17, 2012. U.S. District Court Judge John R. Padova also ordered three years of supervised release.
The news helicopter was on assignment when the news photographer noticed the helicopter cockpit light up with a bright green light. He instructed the pilot not to look in the direction of the beam. A green laser beam is more powerful than a red laser beam but either can cause retina damage to the crew of an aircraft. The helicopter crew was able to identify the house from which the laser originated, uniformed officers responded and Dangler was questioned. Initially he denied using the laser but, on a subsequent interview with FBI agents, he admitted to knowingly shining the laser beam at the helicopter.On February 14, 2012, President Barack Obama signed the FAA Modernization and Reform Act of 2012, which modernizes the nation’s aviation system. This Act establishes a new criminal offense for aiming the beam of a laser at an aircraft in the special aircraft jurisdiction of the United States, or at the flight path of such an aircraft. The statute was enacted in response to a growing number of incidents of pilots being distracted or even temporarily blinded by laser beams.
The FAA also has a civil case pending against Dangler in which Dangler could be fined up to $11,000.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Special Assistant United States Attorney Pedro de la Torre.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Omaha Man Sentenced for Illegal Possession of a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 10, 2013, Isaiah Cobb, Jr., 28, of Omaha was sentenced to a total of four years and 10 months (58 months) in prison for illegal possession of a firearm. Cobb was sentenced to three years and ten months (46 months) for being a felon in possession of a firearm. He received an additional one year (12 months) for violating the terms of his supervised release in an earlier case. The prison sentences are to run consecutively to each other. Following the completion of the prison terms, Cobb will serve an additional three years on supervised release.
In 2005, Cobb was convicted in federal court in Lincoln of possession with intent to distribute cocaine base (crack cocaine) within 1000 feet of a school. In January of 2007, Cobb began serving an eight-year term of supervised release after completing his prison term.
On August 24, 2012, Cobb’s supervising U.S. Probation Officer was conducting a home visit at Cobb’s Omaha apartment. During the visit, Cobb told his Probation Officer he had a gun in his apartment for protection due to his concerns about another resident of his apartment building. During a search of Cobb’s apartment, a U.S. Probation officer found a loaded pistol in a closet. Omaha Police Department records showed the gun had been reported stolen from a vehicle in June of 2007. In addition to being a violation of the law, the presence of the firearm in Cobb’s residence was a violation of the terms of his supervised release.
The matter was investigated by the United States Probation Office for the District of Nebraska and the Omaha Police Department.
Norwich Man Charged with Federal Narcotics and Firearms OffensesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in New Haven returned a three-count indictment today charging THEODORE JONES, also known as “Ish,” and “William Wooley,” 28, of Norwich, with heroin and firearms related offenses.
As alleged in the indictment, on October 2, 2012, JONES possessed heroin, which he intended to distribute, a .45 caliber semi-automatic pistol and seven rounds of .45 caliber ammunition. Prior to October 2012, JONES had been convicted of felony drug, burglary and assault offenses.
The indictment charges JONES with one count of possession of heroin with intent to distribute, which carries a maximum term of imprisonment of 20 years and a fine of up to $1 million, and one count of possession of a firearm in furtherance of drug trafficking, which carries a mandatory consecutive prison term of at least five years and a fine of up to $250,000. The indictment also charges JONES with one count of possession of a firearm and ammunition by a convicted felon, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
JONES has been detained in state custody since his arrest on October 2, 2012.
This matter has been assigned to United States District Judge Michael P. Shea in Hartford.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Norwich Police Department and the Office of the State’s Attorney for the Judicial District of New London. The case is being prosecuted by Assistant United States Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Newark Police Officer Sentenced to Four Years in Prison for Defrauding Bank of $1.9 Million Loan and Bribing Bank EmployeeRead the Press Release
CAMDEN, N.J. – Newark Police Officer Victor Patela was sentenced today to 48 months in prison for his role in a conspiracy to commit bank fraud, bank fraud, two counts of loan application fraud and bank bribery, U.S. Attorney Paul J. Fishman announced.
The jury returned the guilty verdict against Patela, 37, of Newark, following a one-week trial before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and the evidence at trial:
Patela conspired to defraud Spencer Savings Bank, located in Elmwood Park, N.J., by providing false statements and documents in order to secure a $1,920,000 commercial loan for JVI Realty LLC, ("JVI") a New Jersey limited liability company solely owned by Patela. Patela made bribery payments to a bank employee, who served as the loan officer on JVI Realty's commercial loan. On August 30, 2004, Patela paid a $10,000 bribe to a Spencer Savings Bank employee.
Approximately two weeks later, Patela applied for a commercial real estate loan from Spencer Savings Bank to purchase apartment buildings located in Elizabeth, N.J. In order to obtain the loan, Patela signed a Personal Financial Statement ("PFS") falsely reporting that he had a net worth that included $430,000 cash in bank accounts and real estate valued at $3.5 million. Patela signed the PFS underneath the Representations and Warranties section, agreeing the information was correct, although he knew he did not have the money.
In connection with complying with Spencer Savings Bank's condition that Patela demonstrate proof that he had $480,000 to make a down payment on the properties in Elizabeth, Patela submitted a fake real estate contract to the bank.The Mortgage & Security Agreement JVI entered into with Spencer Savings prohibited Patela from encumbering or mortgaging the Elizabeth apartment buildings without the bank's written consent. However, JVI, through Patela, subsequently secured a second mortgage on the Elizabeth apartment buildings – signing the second mortgage and mortgage note as a corporate officer of JVI. The $300,000 loan was used as part of the $480,000 equity contribution to purchase the Elizabeth apartment buildings. The same day, Patela, through JVI, paid the bank employee a $20,000 bribe and over the next year paid the bank employee more than $10,000 in separate payments.
In addition to the prison term, Judge Hillman sentenced Patela to three years of supervised release and ordered him to pay $819,793 in restitution.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today's sentence.
The government is represented by Assistant U.S. Attorneys Zahid N. Quraishi and Vikas Khanna of the U.S. Attorney's Office Special Prosecutions Division in Newark.13-162
Defense counsel: Anna G. Cominsky Esq., NewarkNew York City Lawyer Sentenced in Manhattan Federal Court to Five Years in Prison for Operating Massive Immigration Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EARL SETH DAVID was sentenced today in Manhattan federal court to five years in prison for running an immigration fraud mill through his Manhattan-based law practice. As part of the scheme, DAVID and his co-conspirators applied for legal status for tens of thousands of illegal aliens based on phony claims that they had been sponsored for employment by U.S. employers. DAVID was indicted in October 2011, and extradited to the United States from Canada in January 2012. He pled guilty in April 2012 to one count of conspiracy to commit immigration fraud, and one count of conspiracy to commit mail and wire fraud. DAVID was sentenced today before U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara stated: “Earl David abused his attorney’s license to exploit his alien clients who were seeking the American dream and to perpetrate a fraud on the federal government. He is now the 12th defendant in this sprawling scheme to be punished.”
According to the Superseding Indictment and statements made during court proceedings:
U.S. law permits an alien to petition for legal status if the alien has obtained a certification from the U.S. Department of Labor (“DOL”) certifying that a U.S. employer wishes to employ, or “sponsor,” the alien. An alien who obtains the DOL certification can then use it to petition the U.S. Citizenship and Immigration Services to obtain legal status in the United States.
From 1996 until early 2009, DAVID operated a Manhattan-based immigration law firm (the “David Firm”) that took in millions of dollars in fees from its alien-clients for purportedly securing them legal immigration status. In return for fees of up to $30,000 per alien-client, the David Firm applied for and obtained thousands of DOL certifications based upon phony employment sponsorships and fabricated documents, including fake pay stubs, fake tax returns, and fake “experience letters,” purporting to show that the sponsorships were real and that the aliens possessed special employment skill sets justifying labor-based certification by DOL. In reality, the sponsors had no intention of hiring the aliens, and the sponsor companies often did not even exist other than as shell companies for use in the fraudulent scheme. As a result of the fraud, DOL issued thousands of certifications, and immigration authorities granted legal status to thousands of the David Firm’s clients, when such adjustments were unwarranted and otherwise would not have been made. The Government has identified at least 25,000 immigration applications submitted by the David Firm – the vast majority of which have been determined to contain false, fraudulent, and fictitious information.
In furtherance of the scheme, DAVID and his employees recruited many people to participate, including dozens of individuals who, in exchange for payment, agreed to falsely represent to DOL that they were sponsoring aliens for employment; corrupt accountants who created fake tax returns for the fictitious sponsor companies; and a corrupt DOL employee who helped ensure that DOL certifications were granted based upon the fraudulent applications.
DAVID continued to operate the scheme even after he was suspended from the practice of law in New York State in March 2004. He fled to Canada in 2006 after learning that his firm was under federal criminal investigation. However, illicit profits from the scheme continued to be funneled to him in Canada, including through a bank account in the name of a biblical treatise he had authored entitled “Code of the Heart.” The David Firm ceased operations in early 2009, when federal search warrants were executed at several locations associated with the firm.
To date, a total of 26 individuals have been charged with participating in the scheme. Twenty-four defendants have been convicted, and two – Ali Gomaa and Sariel Sabale – remain fugitives. The charges against Ali Gomaa and Sariel Sabale are merely accusations, and the defendants are presumed innocent unless and until proven guilty. DAVID is the twelfth defendant to be sentenced.
In addition to the prison term, Judge Buchwald sentenced DAVID, 49, of New York, New York, to two years of supervised release. He was also ordered to forfeit $2.5 million, and to pay a $200 special assessment.
Mr. Bharara praised the work of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their outstanding work in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Janis Echenberg and James Pastore are in charge of the prosecution.
Nashville Man Sentenced for Environmental CrimeRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced HARVEY BRYANT PRIDGEN, 58, of Nashville, North Carolina, to six months imprisonment followed by one year supervised release that includes six months home confinement with electronic monitoring. The Court also imposed a fine of $300,000. Additionally, as part of his plea agreement, PRIDGEN made a $11,367.77 payment to the North Carolina Ecogogical System Enhancement Program – Wetlands Restoration Fund.
A Superseding Criminal Information was filed on September 5, 2012, charging PRIDGEN with unauthorized fill of wetlands, in violation of Title 33, United States Code, Section 1311(a) and 1319(c)(1)(A). On September 6, 2012, PRIDGEN pled guilty to the charge.
According to evidence presented in court, in May, 2010, an investigation was initiated into the illegal dumping of petroleum-contaminated soil in a protected wetland area in Jones County, North Carolina. It was learned that the soil was a product of an environmental clean-up project on Marine Corp Air Station New River and that in March, 2010, the Marine Corps had contracted with Osage of Virginia Inc., to conduct environmental remediation services. Osage, in turn, contracted P&F Services, Inc., to haul contaminated soil from the excavation site and ensure its proper disposal. PRIDGEN was the owner of P&F.
In April, 2010, the manager of an area of farmland contracted PRIDGEN to deliver soil to the farm to fill a low-lying area. In April, 2010 to May, 2010, an estimated 50-60 trucks loaded with contaminated soil from the Marine Corps project were dumped on the property. The contaminated soil was then pushed by bulldozers into a protected wetlands area located on the farm. In mid-May, 2010, a site inspection of the farm was performed and it was confirmed that the soil dumped was contaminated.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation, the United States Environmental Protection Agency – Criminal Investigation Division, the United States Department of Agriculture – Office of Inspector General, the North Carolina Department of Environment and Natural Resources, the Naval Criminal Investigative Service, and the United States Army Corps of Engineers. Assistant United States Attorney Banumathi Rangarajan prosecuted the case.
Munhall Man Charged with Assaulting FBI Task Force OfficerRead the Press Release
PITTSBURGH, Pa. - A resident of Munhall, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal law, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 9, 2013, named Kim Winwood, 61.
According to the indictment, on or about March 14, 2013, Winwood assaulted, resisted, and impeded certain officers or employees of the United States during the performance of their official duties, and he caused bodily injury to a Federal Bureau of Investigation Task Force Officer.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation Greater Pittsburgh Safe Streets Gang Task Force, Allegheny County Sheriff's Office, Munhall Police Department, West Homestead Police Department and Pennsylvania Office of Attorney General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Multi-Violating Drug Dealer SentencedRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JOEL ARTIS, 37, of Goldsboro, North Carolina, to 156 months imprisonment followed by three years supervised release.
ARTIS was originally charged by Criminal Information on March 19, 2012, with possessing with intent to distribute a quantity of marijuana and a quantity of cocaine. On May 10, 2012, ARTIS pled guilty to the charges.
According to evidence presented in court, on March 28, 2011, ARTIS met co-defendant Eric Henry at a store in Goldsboro, North Carolina. Henry offered to sell ARTIS some marijuana. A time and place were set for the drug deal to occur. ARTIS went to the specified location and waited. Co-defendant Isiah Young got into ARTIS’ car and handed him approximately 782 grams of marijuana. As ARTIS turned to put the bag in the back seat, he saw co-defendant Thompson walking up on the side of the vehicle. ARTIS looked back at Young and Young was pointing a gun at him. Thompson got in the back seat, and ARTIS grabbed his own gun and shot Young. A fight ensued between ARTIS and Young, with ARTIS firing his weapon again. Eventually Young and Thompson fled on foot. Officers, responding to a 9-1-1 call, observed a vehicle committing traffic violations. Officers stopped the vehicle, which contained Henry, Thompson, Young and a driver. Young had been shot. After smelling marijuana, officers saw a plastic bag full of marijuana in plain view and two guns, covered with blood, were on the floorboard. Henry, Thompson, and Young were arrested. During a search of ARTIS’ vehicle, officers found a small amount of cocaine, marijuana, and set of scales.
While awaiting sentencing, ARTIS was involved in another drug deal on September 4, 2012, at the Lighthouse Market in Goldsboro, North Carolina. ARTIS was arrested and found in possession of 0.73 gram of Heroin, 6.76 grams of cocaine, and a mixture of 0.87 grams of Benzylpiperazine (BZP), Trifluoromethylphrnylpiperazine(MDPPP)and Methyenedioxyprovalerone (MDPV).
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Goldsboro Police Department. Assistant United States Attorney Jane J. Jackson prosecuted the case.
Mt. Vernon Man Sentenced to 15 Years for Joplin Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mt. Vernon, Mo., man was sentenced in federal court today for robbing a Joplin, Mo., bank.
Wesley Charles Osborne, 35, of Mt. Vernon, was sentenced by U.S. District Judge Greg Kays to 15 years in federal prison without parole. The court also ordered Osborne to pay $2,240 in restitution to United Missouri Bank.
On Sept. 12, 2012 Osborne pleaded guilty to robbing United Missouri Bank in Joplin on June 18, 2012. According to court documents, Osborne walked to the teller counter and presented a demand note to a bank teller. He jumped the teller counter, ordered bank employees to the ground and ordered a bank employee to open a teller drawer. Osborne grabbed money from the drawer, jumped back over the teller counter and left the bank.
On June 19, 2012 Osborne was arrested at the Downstream Casino in Quapaw, Okla., after security personnel at the hotel where Osborne was staying responded to a complaint made by another hotel guest. Osborne was arrested for allegedly assaulting a female he had registered with at the hotel. After his arrest, Osborne was transported to the Ottawa County Jail in Miami, Okla. The next day an anonymous caller identified Osborne as the man who robbed United Missouri Bank.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Joplin, Mo., Police Department and the FBI.
Mount Pleasant Man Sentenced for Domestic Assault on Indian ReservationRead the Press Release
A 49-year-old resident of Mount Pleasant, Michigan was sentenced today by United States District Judge Thomas L. Ludington to 28 months in custody followed by two years of supervised release, after having pled guilty on December 7, 2012 to domestic assault by a habitual offender announced U.S. Attorney Barbara L. McQuade.
On or about September 13, 2012, Paul Steven Hawk, got into an argument with his girlfriend and struck her in the lip. Hawk also illegally possessed a gun during this incident and attempted to improperly influence witnesses that he knew were going to testify at the grand jury. The assault occurred on the Isabella Reservation after Hawk had previously been convicted of Family Violence in 2000 and 2003.
The case was investigated by the Saginaw Chippewa Tribal Police. The case was prosecuted by Assistant United States Attorney Roy Kranz.
Mortgage Fraud Promoters Operating in Union and Mecklenburg Counties Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Two defendants were sentenced to lengthy prison terms on Tuesday, April 9, 2013, for their role in a mortgage fraud conspiracy that primarily targeted neighborhoods in Union and Mecklenburg counties, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Joining U.S. Attorney Tompkins in making today’s announcement is Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
Kenneth Egri, 55, of Charlotte was sentenced to 78 months in prison and his co-defendant Dean Huffman, 57, formerly of Charlotte, was sentenced to 65 months in prison. U.S. District Court Judge Frank D. Whitney also ordered both defendants to serve two years of supervised release following their prison terms.
“Mortgage fraudsters like Egri and Huffman harm more than just the affected financial institutions; they wreak havoc on neighborhoods by virtue of the foreclosures resulting from their scheme” said U.S. Attorney Tompkins. “The defendants exploited the American Dream of home ownership in order to satisfy their own selfish greedy interests and they now have years of federal prison to contemplate their shameful conduct.”
“Individuals who commit mortgage fraud may be prosecuted on several charges including failure to file income tax returns. The law is crystal clear: people must pay their taxes. There is no gray area on this issue,” stated Jeannine A. Hammett, Special Agent in Charge of the Charlotte Field Office.
In July 2011, Egri and Huffman pleaded guilty to conspiracy to commit wire fraud in connection with their operation of a mortgage fraud cell that primarily targeted the neighborhood of Providence Downs. In addition, Egri pleaded guilty to two counts of failing to file income tax returns for the 2005 and 2006 tax years.
According to filed court documents and yesterday’s sentencing hearing, from in or about 2001 through in or about 2006, Egri and Huffman owned and operated Direct Home Services (DHS) in Charlotte. Egri and Huffman utilized DHS to generate over $37.4 million in fraudulent loans and to funnel over $5.4 million in fraudulent loan proceeds to themselves. To promote their scheme, Egri and Huffman would agree with a builder to purchase a property at the “true price.” Egri and Huffman would then arrange for a buyer to purchase the property at an inflated price—usually between $100,000 and $300,000 above the true price. In most circumstances, the buyer would agree to purchase the property in his or her own name and sign whatever documents were necessary, in exchange for a hidden kickback. The builder would sell the property at the inflated price, the lender would make a mortgage loan on the basis of that inflated price, and the difference between the inflated price and the true price would be extracted at closing by Egri and Huffman. To induce lenders to make mortgage loans, Egri and Huffman caused fraudulent loan packages to be submitted which included lies and misrepresentations about, among other things, buyers’ income and assets, place of employment, intent to occupy the homes as their primary residence, and true source of cash at closing.
In addition, according to the filed court documents and yesterday’s sentencing hearing, from 2003 through 2006, Egri failed to file income tax returns reporting $1,288,604 of income from the mortgage fraud scheme.
In pronouncing the sentence, Judge Whitney noted that both defendants were “integral players in the mortgage fraud scheme” and emphasized the harm their unlawful conduct caused to the community. Judge Whitney ordered Egri and Huffman to pay restitution to Bank of America in the amount of $1,335,744 and ordered Egri to pay restitution to the IRS in the amount of $257,721.
Egri and Huffman were ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the IRS. The prosecution was handled by Assistant U.S. Attorney Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte.
Member of Internet Piracy Group “IMAGiNE” Sentenced in Virginia to 23 Months in Prison for Criminal Copyright ConspiracyRead the Press Release
A member of the Internet piracy group “IMAGiNE” was sentenced today to serve 23 months in prison, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Washington, D.C.
Javier E. Ferrer, 41, of New Port Richey, Fla., was sentenced by Senior U.S. District Judge Henry C. Morgan in the Eastern District of Virginia. In addition to his prison term, Ferrer was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution.
On Nov. 29, 2012, Ferrer pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Ferrer is the fifth member of the IMAGiNE Group who has been sentenced to prison for the copyright conspiracy.
On Sept. 13, 2012, Ferrer was charged in a criminal information for his role in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters. Four other IMAGiNE Group members, including the group’s leader, were indicted on April 18, 2012, for their roles in the IMAGiNE Group.
According to court documents, Ferrer and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Ferrer actively participated in the IMAGiNE Group’s illegal efforts to film copyrighted motion pictures currently showing in theaters as his co-conspirators used receivers and recording devices to secretly capture audio sound tracks of copyrighted movies playing in movie theaters. After the IMAGiNE Group obtained illegal copies of the audio and video portions of copyrighted motion pictures, Ferrer and his co-conspirators also engaged in processing or "encoding" the video files to enhance the picture quality and in synchronizing the audio files with the video files to make completed movies suitable for reproduction and distribution over the Internet, without the permission of the copyright owners.
According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.
Co-defendants Sean M. Lovelady, Willie O. Lambert, Gregory A. Cherwonik and Jeramiah B. Perkins pleaded guilty on May 9, June 22, July 11 and Aug. 29, 2012, respectively, to one count each of conspiracy to commit criminal copyright infringement, before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia . Lambert and Lovelady were sentenced on Nov. 2, 2012, to serve 30 months and 23 months in prison, respectively. Cherwonik was sentenced on Nov. 29, 2012, to serve 40 months in prison. Perkins, the leader of the group, was sentenced on Jan. 3, 2013, to 60 months in prison.
The investigation of the case and the arrests were conducted by agents with the HIS Washington, D.C., Field Office. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce .
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the Department of Justice’s IP Task Force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
Member of Internet Piracy Group "IMAGiNE" Sentenced in Virginia to 23 Months in Prison for Criminal Copyright ConspriacyRead the Press Release
Eastern District of Virginia – A member of the Internet piracy group “IMAGiNE” was sentenced today to serve 23 months in prison, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Washington, D.C.
Javier E. Ferrer, 41, of New Port Richey, Fla., was sentenced by Senior U.S. District Judge Henry C. Morgan in the Eastern District of Virginia. In addition to his prison term, Ferrer was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution.
On Nov. 29, 2012, Ferrer pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Ferrer is the fifth member of the IMAGiNE Group who has been sentenced to prison for the copyright conspiracy.
On Sept. 13, 2012, Ferrer was charged in a criminal information for his role in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters. Four other IMAGiNE Group members, including the group’s leader, were indicted on April 18, 2012, for their roles in the IMAGiNE Group.
According to court documents, Ferrer and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Ferrer actively participated in the IMAGiNE Group’s illegal efforts to film copyrighted motion pictures currently showing in theaters as his co-conspirators used receivers and recording devices to secretly capture audio sound tracks of copyrighted movies playing in movie theaters. After the IMAGiNE Group obtained illegal copies of the audio and video portions of copyrighted motion pictures, Ferrer and his co-conspirators also engaged in processing or "encoding" the video files to enhance the picture quality and in synchronizing the audio files with the video files to make completed movies suitable for reproduction and distribution over the Internet, without the permission of the copyright owners.
According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.
Co-defendants Sean M. Lovelady, Willie O. Lambert, Gregory A. Cherwonik and Jeramiah B. Perkins pleaded guilty on May 9, June 22, July 11 and Aug. 29, 2012, respectively, to one count each of conspiracy to commit criminal copyright infringement, before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia. Lambert and Lovelady were sentenced on Nov. 2, 2012, to serve 30 months and 23 months in prison, respectively. Cherwonik was sentenced on Nov. 29, 2012, to serve 40 months in prison. Perkins, the leader of the group, was sentenced on Jan. 3, 2013, to 60 months in prison.
The investigation of the case and the arrests were conducted by agents with the HSI Washington, D.C., Field Office. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the Department of Justice’s IP Task Force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Man Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 48-year-old Guatemalan national was indicted for entering the United States illegally after being deported as a criminal. Hector Raul Estrada-Garcia was charged with one count of illegal re-entry after deportation.
The indictment alleges that on March 7, 2013, Estrada-Garcia was found in the U.S. after having been previously deported to Guatemala in 2000, following a 1997 conviction in the District of Minnesota for distribution of methamphetamine. On March 7 of this year, Estrada-Garcia was identified in Anoka County as an illegal alien with a criminal record by the U.S. Immigration and Customs Enforcement’s (“ICE”) St. Paul Fugitive Operations Team.
If convicted, Estrada-Garcia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Man Charged with Possession of A Firearm by A Convicted FelonRead the Press Release
Derrick Parks, 40, of Philadelphia, Pennsylvania, was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of ten years in prison, a three-year period of supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Macomb Township Man Sentenced Today for Manufacturing and Distributing Child PornographyRead the Press Release
A 33-year-old Macomb Township man was sentenced today to 30 years in federal prison followed by fifteen years of supervised release after having been found guilty by a federal jury in December, 2012 of producing and distributing child pornography, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation
Thomas William Wooten was sentenced before U.S. District Judge Marianne O. Battani in Detroit. The evidence at trial showed that Wooten produced and distributed on the internet pornographic images of a three-year-old girl, including a video of her engaging in a sexual act with Wooten. Wooten also downloaded and collected hundreds of child pornographic images and videos, some of which he obtained by trading the images he created.
“Regrettably, the internet provides child predators with a ready market for child pornography, but it also helps us to rescue children who are being sexually abused,” McQuade said.
FBI Special Agent in Charge Foley stated, “These despicable crimes victimize and exploit innocent children. The FBI is committed to the arrest and prosecution of criminals who engage in such deplorable, heinous behavior.”
The case was investigated by special agents of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Hala Jarbou.
Long Island Health Care Provider Sentenced to 12 Years in Prison for $10 Million Medicare Fraud and Hipaa Identity TheftRead the Press Release
Earlier today, Helene Michel, an owner and officer of Medical Solutions Management, Inc. (“MSM”), was sentenced to 12 years in federal prison by United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip, New York. Michel was convicted after a three-week jury trial in August 2012 of conspiracy to commit health care fraud, health care fraud, and HIPAA identity theft crimes. At today’s sentencing, Judge Bianco also ordered that Michel forfeit $1.3 million that was seized by the government at the time of her indictment.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Thomas O’Donnell, Special Agent in Charge, United States Department of Health & Human services, Office of Inspector General, Office of Investigations (“HHS OIG”), and George C. Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (“FBI”), New York Field Office.
According to the evidence at trial, between approximately April 2003 and March 2007, Helene Michel owned and operated MSM, a medical equipment company located in Hicksville, New York. Michel used her position as a medical equipment company owner to enter nursing homes in Nassau, Suffolk, Queens, Kings, and Dutchess Counties in order to access and steal patient records, in violation of the Health Insurance Portability and Accountability Act (“HIPAA”). During the scheme, Michel also falsely assumed a number of roles, including posing at various times as a doctor, a nurse practitioner, and a wound care expert. At times, in her false roles, Michel even accompanied doctors on patient evaluation rounds. Thereafter, Michel used the records that she stole to create and submit $10 million in false billings to Medicare for medical supplies and products that were either not required or not delivered. For example, in one instance, Michel used fraudulent drawings and measurements to support a Medicare claim for the cost of fitted boots for a legless patient. In another, Michel submitted false claims for the purchase of expensive wound care bandages to treat patients who never had such wounds. In the event that Medicare denied an MSM claim, Michel submitted an appeal of the denial supported by additional stolen and altered patient records.
Michel spent the Medicare funds that she stole through false claims and identity theft on her own personal interests, including a multi-million dollar home on Long Island’s North Shore, a half-million dollar pension account, and personal items such as luxury cars and designer handbags. Michel’s co-defendant Etienne Allonce, the co-owner of MSM, was also charged in the indictment and is believed to have fled from the United States. He remains a fugitive, listed on HHS OIG’s Most Wanted List.
“Helene Michel brazenly roamed the halls of dozens of nursing homes, pretending to be, among other things, a doctor, a nurse practitioner, and a wound care expert, even going so far as to join patient evaluations. In reality she was a con woman, deceiving patients and administrators alike as she trolled for the information she used to submit fraudulent claims to Medicare to support her extravagant lifestyle. Through her scheme she violated the privacy of over a thousand patients and stole Medicare funds dedicated to preserving the health of our seniors and other citizens,” stated United States Attorney Lynch. “We and our law enforcement partners will vigorously pursue and prosecute those who seek to profit by such despicable crimes.” Ms. Lynch expressed her grateful appreciation to HHS OIG, the FBI, and the Nassau County District Attorney’s Office.
The government’s case was prosecuted by Assistant United States Attorneys Charles P. Kelly and Burton T. Ryan, Jr.
The Defendant:
Name: HELENE MICHEL
Age: 45Liberty Couple Charged with $2.8 Million Embezzlement, Check Kiting Scheme to Fund Gambling, Lavish SpendingRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., husband and wife were charged in federal court today with a nearly $2.8 million embezzlement and check kiting scheme and with filing a false tax return.
Laura Dejong, 54, and her husband, Craig Dejong, 55, both of Liberty, waived their right to a grand jury in a hearing before U.S. Magistrate Judge John T. Maughmer and were charged in a two-count federal information. Laura Dejong is charged with one count of mail fraud and both of the Dejongs are charged in one count of filing a false tax return.
Laura Dejong allegedly embezzled $2,679,227 from her employer, Kansas City Screw Products, Inc., from January 2003 to November 2011. Kansas City Screw Products is a family-owned and -operated metal fabrication business in Kansas City. Laura Dejong, who was employed as a secretary and bookkeeper for approximately 23 years, allegedly forged checks drawn on the company’s bank accounts.
According to today’s information, Laura Dejong engaged in a check kiting scheme between the company’s two banks in order to falsely inflate the company’s bank account balances, thereby increasing the amount of money she could embezzle. Her check kite allegedly began in late June 2011. The total amount of checks written by Laura Dejong to cause the check kite increased from $44,000 in June 2011 to $847,000 in November 2011, the information says. The total loss from the check kite to Central Bank was $96,000.
The total combined loss for Kansas City Screw Products and Central Bank was $2,775,227.
According to court documents, significant gambling activity was identified for the Dejongs, well into the millions of dollars, from January 2002 to December 2011. The majority of the Dejongs’ gambling was at slot machines.
Records indicate that the Dejongs took at least eight cruises and spent more than $100,000 on payments for the cruises, vacations and airfare between 2005 and 2011. During the time of the embezzlement scheme, according to court documents, the Dejongs used the stolen money to purchase a 2007 Chevrolet Tahoe, a 2009 Honda Accord, a 1997 Crownline boat (20-foot fiberglass runabout), a 1997 Prestige boat trailer, a 1985 Chevrolet RV/motor-home (now a KC Chiefs party bus), a 2008 Jayco travel trailer, four Ameriprise Brokerage accounts; four Kansas Speedway season tickets (for Passholder seats, parking passes, and track passes), four Kansas City Chiefs Club Level season tickets and parking passes, membership to the Chiefs Wolfpack Club, an exclusive members-only facility, and their residence.
According to today’s information, the Dejongs filed joint tax returns for tax years 2005-2010 but did not declare any of the embezzled money as income. During this time, Laura Dejong’s gross annual salary at Kansas City Screw Products ranged from $22,752 to $33,333. Craig Dejong was unemployed for four years and listed no income for the two years in which he claimed to be employed as a computer programmer.
As a result of filing false tax returns in those six years, the information alleges, the Dejongs owe the Internal Revenue Service a total of approximately $482,711.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI and IRS-Criminal Investigation.
Justice Department and Federal Trade Commission<br /> Accountable Care Organization Working Group<br /> Issues Summary of ActivitiesRead the Press Release
The Department of Justice and the Federal Trade Commission (FTC) issued a joint summary of the activities of the Accountable Care Organization (ACO) Working Group, which took place between October 2011 and March 31, 2013. The department and the FTC established the working group to collaborate and discuss issues concerning ACOs created under the Affordable Care Act of 2010. The act encourages physicians, hospitals and other health care providers to integrate their health care delivery systems in order to improve the quality and reduce the costs of health care services.
The summary, which follows issuance of the agencies’ October 2011 antitrust enforcement policy statement regarding ACOs participating in the Medicare Shared Savings Program (MSSP), reports that during the time period covered, the ACO Working Group fielded 33 questions related principally to primary service area (PSA) share calculations, and two requests for voluntary expedited review from proposed ACOs.
Under the policy statement, an ACO may calculate its PSA shares to determine whether it falls within an antitrust safety zone for certain ACOs that are highly likely to raise significant competitive concerns. The ACO Working Group responded to most of the 33 PSA share questions within five business days, and in connection with the release of the summary is now making the questions and answers publicly available on their websites. The largest category of questions concerned obtaining and using Medicare and other data to calculate PSA shares.
Also under the policy statement, a newly formed ACO may request voluntary expedited antitrust review of its program. Both of the ACOs that sought such review during the time period covered by the summary withdrew their requests.
The joint summary and questions and answers can be found on the department’s website at www.justice.gov/atr/public/health_care/aco.html.
MEDIA CONTACT: Gina Talamona
Department of Justice
Office of Public Affairs
202-514-2007
Mitch Katz
FTC
Office of Public Affairs
202-326-2180