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Friday 22 February 2013
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 21, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
JAMES TYRONE DAVIS, a 28-year-old resident of Missoula, appeared on a charge of conspiracy to possess with intent to distribute methamphetamine. He is currently released on special conditions. If convicted of this charge, DAVIS faces possible penalties of a minimum mandatory 10 years in prison up to life in prison, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Tara J. Elliott is the prosecutor for the United States. The investigation was conducted by a cooperative effort between the Drug Enforcement Administration and Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Illegal Marketer of Medicare Information Admits Role<br /> in Detroit-area Home Health Care Fraud SchemeRead the Press Release
A health care worker who sold Medicare beneficiary information to Detroit-area home health agency operators as part of a $24.7 million home health care fraud conspiracy pleaded guilty today for his role in the scheme, which sought to profit by billing for home healthcare services that were medically unnecessary and not provided.
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Clarence Cooper, 54, of Detroit, pleaded guilty before U.S. District Judge Victoria A. Roberts in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Cooper and others conspired to defraud Medicare through purported home health care companies operating in the Detroit area, including now-defunct First Choice Home Health Care Services Inc. and Reliance Home Care, LLC. Cooper admitted that he sold Medicare information he obtained from Detroit-area Medicare beneficiaries to other conspirators at these and other health care companies, knowing that it was to be used to submit claims to Medicare for home health services that were not medically necessary and/or not provided. According to court documents, from 2008 through May 2012, Cooper sold co-conspirators the Medicare information of hundreds of Medicare beneficiaries, at $200 to $300 per beneficiary, and this Medicare information was used at these companies to bill Medicare for nearly $1 million in home health care services.
Court documents show that the larger scheme in which Cooper participated resulted in more than $24.7 million in claims to Medicare for the cost of home health services, psychotherapy and other medical services.
Cooper faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is currently scheduled for July 23, 2013.
This case is being prosecuted by Trial Attorney William G. Kanellis and Assistant Chief Gejaa Gobena of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Harrisburg Ambulance Company Owner Pleads Guilty to Submitting False Statement to MedicareRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the owner of a Harrisburg-based ambulance company has pleaded guilty to a False Statement charge related to Medicare fraud.
Serge Sivchuk, age 27, the owner of Advantage Medical Transport, Inc, headquartered at 733 Fire House Lane, Harrisburg, pleaded guilty before U.S. District Court Judge Christopher C. Conner today to one count of False Statements in Health Care Matters. The charge is punishable by up to five years imprisonment and a $1,000,000 fine.
According to U.S. Attorney Peter J. Smith, Sivchuk was indicted in January 2011 on multiple False Statement and Medicare Fraud charges. The Indictment alleged that between January 2009 and June 2011 Sivchuk perpetrated a scheme to defraud Medicare by submitting hundreds of claims for the nonemergency transport of Medicare beneficiaries to and from dialysis treatment centers. The Indictment alleged the claims were fraudulent because the patients were ambulatory and the ambulance transports were not medically necessary.
The Indictment focused on an August 2010 audit conducted by Medicare and a June 2, 2011 search of Advantage’s business premises by federal law enforcement officers. In response to the audit Sivchuk provided Medicare with dozens of ambulance Trip Sheets, which are prepared by Emergency Medical Technicians (EMTs) at the time of each ambulance transport. The Trip Sheets contain a narrative section that describes the patient’s physical condition and ability to ambulate. The Trip Sheets serve as the primary support document for each ambulance transport claim for which Medicare was billed.
The June 2, 2011 search by the FBI and investigators from the Health and Human Services (HHS) Inspector General’s Office revealed that Sivchuk did not submit the original trip sheets to the auditors but instead submitted copies of other trip sheets that had been re-written and forged to conceal the fact the beneficiaries were able to walk and stand. During his court appearance before Judge Conner today, Sivchuk admitted he directed a subordinate to re-write and forge the signatures of two EMTs on a Trip Sheet pertaining to the ambulance transport of a dialysis treatment beneficiary on August 19, 2010.
Medicare paid Advantage approximately $166 for each leg of a transport to and from a dialysis treatment center, plus $5.49 per mile. Many dialysis patients underwent 3 treatments per week. Thus, one week’s transport of just one dialysis patient would result in Advantage being paid by Medicare more than $1,000.Under the terms of the plea agreement, Judge Conner will determine the overall loss to Medicare. During the guilty plea proceeding Assistant U.S. Attorney Kim Douglas Daniel told the Court that the government intends to show during the loss hearing that the total loss to Medicare as the result of the fraud scheme was approximately $740,000. Daniel also noted that at the time the investigators executed the June 2, 2011 search warrant, the U.S. Attorney’s Office filed a civil action in federal court that froze more than $936,000 in bank accounts controlled by Advantage and Sivchuk.
The case is part of a priority program within the U.S. Department of Justice and the U.S. Attorney’s Office focusing on Health Care Fraud. Anyone with information concerning suspected health care fraud should contact the FBI at 717-232-8686.
Glen Dale Resident Sentenced on Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
February 22, 20132
FOR IMMEDIATE RELEASEWHEELING, WEST VIRGINIA - A 26-year old Glen Dale, West Virginia, resident was sentenced on February 21, 2013, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: JOSEPH “JOEY” MCDONALD was sentenced to 27 months imprisonment to be followed by six years of supervised release. MCDONALD entered a plea of guilty on January 3, 2013, “Distribution of Oxycodone within 1,000 Feet of the Glen Dale Park” on May 21, 2012. MCDONALD was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney John C. Parr and investigated by the Marshall County Sheriff’s Department, the Glen Dale Police Department and the Drug Enforcement Administration.
Four Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, P.R. – Yesterday evening, February 21, 2013, a Federal grand jury returned a two-count indictment charging Luis Francisco Alicea-Colón, Pedro Carlos Calderón-Andino, Astrid Martínez-Valentin, and Karen Coralis Torres-Ilarraza with conspiracy to possess with the intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto. The investigation was conducted by the FBI, ATF and the Carolina Drug Unit of the Puerto Rico Police Department (PRPD).
On February 20, 2013, members of the PRPD Carolina Drug Unit executed a state search warrant in a residence located in sector Roberto Resto, in Trujillo Alto, Puerto Rico. The defendants were present at the location when agents were conducting the search. The following items were found during the search: an AK-47, ammunitions, a bullet proof vest, a money counting machine, and three bags with marijuana.
The PRPD officers contacted the Federal agents, pursuant to the provisions of the interagency “Illegal Firearms and Violent Crimes Initiative”. All four subjects were taken into custody by the FBI and later charged. If convicted, the individuals face up to a maximum of 20 years imprisonment for the drug charges, and from 5 years to life in prison for the firearms violation.
“These arrests should send a message to those involved in drug trafficking. We will continue working with our state and local partners to identify, arrest, and prosecute those responsible for selling narcotics in Puerto Rico, and who contribute to the violence and criminal activity in the island.” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“The FBI's message is clear and unequivocal, we will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.The case is being prosecuted by Assistant United States Attorney Alberto López-Rocafort and Special Assistant United States Attorney Normary Figueroa-Rijo. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Former Owner of Lansing-area Chain of Coffee Stores Sentenced to Federal PrisonRead the Press Release
David Lewis Many Defrauded Investors of Over One Million DollarsGRAND RAPIDS, MICHIGAN – U.S. District Judge Robert Holmes Bell sentenced David Lewis Many, 42, formerly of Lansing, Michigan, to 63 months in federal prison for his fraud scheme that bilked investors in his chain of coffee stores out of over one million dollars. The court further ordered Many to make restitution to his victims in the amount of $1,515,896.00.
“Our economy depends upon investors who are willing to assume legitimate business risks after receiving honest representations. Individuals like Mr. Many, who misrepresent the truth so that they can personally gain from the hard-earned money of honest individuals, will be prosecuted to the fullest extent of the law,” said U.S. Attorney Patrick A. Miles, Jr.
Many’s scheme began in 2006 when he started his first CornerStone Coffee Store with money from relatives, promising them employment that he never delivered. Many then attracted investors in additional stores by misrepresenting his personal net worth, claiming he gained special retail computer software skills while working as an engineer for Microsoft, representing that his business was profitable, and telling investors that he would not draw a salary from the company. In reality, the stores were losing money and Many was drawing significant funds from the company to spend on an extravagant lifestyle that included luxury cars, an executive-style home, and entertainment at local gentlemen’s clubs.
By 2007, Many began selling franchise locations in an effort to satisfy obligations to prior investors and to try to keep his stores afloat. Many represented that a franchisee’s investment would be placed into an escrow account and used solely for the costs of constructing the franchise location. In reality, Many defrauded the franchisees by obtaining hundreds of thousands of dollars up front, and then using the money for his personal benefit and to operate his existing corporate locations. The last franchisee invested over $280,000.00 for his store location but received nothing but a building with stud-walls and a dirt floor. Many then fled to Texas.
The Lansing office of the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Ronald M. Stella conducted the prosecution.
END
Former Member of Board of Directors Charged in Scheme Contributing to Closure of Local Federal Credit UnionRead the Press Release
PHILADELPHIA – Miqueas Santana, 43, was charged today by information with embezzlement and money laundering in a case that contributed to the closure of the Borinquen Federal Credit Union (BFCU), announced United States Attorney Zane David Memeger. According to the information, Between July 2009 and June 2011, Santana, with the permission and approval of the former manager of BFCU, withdrew money from his BFCU bank accounts without depositing sufficient money into the accounts to cover the withdrawals, resulting in deficit account balances in his five personal and business savings and checking accounts of more than $500,000. Santana used this money to purchase multiple pieces of real estate throughout Philadelphia.
BFCU was a federal credit union in Philadelphia. In June 2011, the National Credit Union Association took over the operation of the BFCU, but within two weeks, closed the credit union and liquidated its assets. Its former manager, Ignacio Morales, has previously been convicted of multiple counts relating to embezzlement from BFCU and conspiracy to defraud the government regarding the cashing of fraudulent tax refund checks. Morales is currently serving a 7 ½ year sentence for his crimes.
If convicted of all charges,Santanafaces a maximum sentence of 40 years imprisonment, 5 years supervised release, a $1,250,000 fine (or a $1,000,000 fine plus twice the value of the criminally derived property) and a $200 special assessment.
This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Arlene D. Fisk.
Click here to view the indictment
An Indictment or an Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Longview Club Owner Sentenced to Prison for Meth DealingRead the Press Release
The former owner of a Longview nightclub and long-stay hotel, was sentenced today in U.S. District Court in Tacoma to five years in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan. CHRISTOPHER LONNIE REID, 52, pleaded guilty in October 2012 to distribution of methamphetamine. REID was charged federally in 2011 following an undercover investigation by the Drug Enforcement Administration (DEA) and the Cowlitz-Wahkiakum Narcotics Task Force. At sentencing U.S. District Judge Ronald B. Leighton said, “this crime (methamphetamine distribution) destroys the fabric of a community brick by brick.”
According to records filed in the case on October 22, 2010 and again on October 27, 2010 REID distributed methamphetamine to a person working with law enforcement.
In their sentencing memo, prosecutors noted that REID was distributing drugs at the same time he was making money by renting rooms to drug addicts. “Reid has owned a residential hotel-type building in Longview for the past several years. Reid’s business, the Smallwood Hotel, rented small rooms. The hotel had the reputation in the community of housing drug addicts,… Given Reid’s drug dealing, the fact that he ran a hotel for drug addicts is an aggravating factor that this Court should consider when sentencing Reid,” prosecutors wrote in their sentencing memo.
The case was investigated by the DEA and the Cowlitz-Wahkiakum Narcotics Task Force. The case was prosecuted by Assistant United States Attorney Brian Werner.
Former Head of Youth-Oriented Non-Profit Pleads Guilty to Tax Charge Involving $110,000 Grant That Funded an Inaugural BallPlea Is Part of the Investigation That Led to Conviction of Former District of Columbia Council Member Harry L. Thomas, Jr.Read the Press Release
WASHINGTON – Millicent D. West, the former director and chief executive officer of a non-profit organization that promotes youth opportunities, pled guilty today to a criminal tax charge for her role in channeling $110,000 in youth grant funds used to pay for an inaugural ball.
The guilty plea, which took place in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation.
West, 43, pled guilty to a charge of attempting to interfere with the administration of the Internal Revenue Service laws. The Honorable John D. Bates scheduled sentencing for May 24, 2013. The charge carries a maximum statutory sentence of three years in prison and a fine of up to $250,000. Under federal sentencing guidelines, the parties have agreed that the likely range is six months to 12 months of incarceration and a fine of $2,000 to $20,000.
West is the fifth person to plead guilty to charges in an ongoing investigation into activities involving former District of Columbia Council Member Harry L. Thomas, Jr. Thomas pled guilty last year to charges stemming from a scheme in which he used more than $350,000 in taxpayers’ money that was earmarked for the arts, youth recreation, and summer programs for his own personal benefit, including to pay for vehicles, clothing and trips. He resigned as a condition of his plea agreement and is now serving a 38-month prison sentence.
The others who have pled guilty include James Garvin and Marshall D. Banks, leaders of one of the non-profits used in the scheme. Both men, from the Langston in the 21st Century Foundation, pled guilty to misprision of a felony, a charge holding them accountable for failing to report and concealing the misappropriation of $392,000 in government grants. Additionally, Danita C. Doleman, the president of Youth Technology Institute, pled guilty to filing a false return in connection with her assistance in funneling public money to pay for the 51st State Inaugural Ball. Garvin, Banks and Doleman are awaiting sentencing.
According to the government’s evidence, West’s conduct covered up the actual beneficiaries of the youth grant funds and later led to the filing of false and misleading tax forms.
“Millicent West was by all accounts a dedicated public servant who was truly committed to the mission of serving young people in the District of Columbia,” said U.S. Attorney Machen. “Unfortunately, as we have seen too many times, she agreed to break the law to appease a crooked public official who was intent on carrying out a criminal scheme. As a result, she allowed more than $100,000 intended to keep D.C. kids off drugs to be used to throw a party for adults. This prosecution underscores the importance of standing up to corruption rather than becoming complicit in it. We hope that this guilty plea allows Ms. West to put this mistake behind her and return to doing good works. We also hope that it reminds other public servants and government employees not to jeopardize their careers by facilitating politicians’ wrongdoing.”
“By concealing and failing to report the illegal use of public funds, Ms. West allowed money to be diverted away from programs that supported the youth of our city,” said Assistant Director in Charge Parlave. “Her guilty plea today demonstrates that those who commit corruption, as well as those who allow it, will be held accountable for their actions.”
“Federal grant funds entrusted to a non-profit and subsequently diverted to an ineligible entity is fraudulent,” said Special Agent in Charge Kelly. “Ms. West’s attempts to defraud the government, interfere with the administration of Internal Revenue laws and disguise the true nature of funds earmarked for a tax exempt entity failed. Today’s plea confirms the commitment of IRS-Criminal Investigation, along with its law enforcement partners, to the American public that we are poised and prepared to investigate any financial scheme to defraud the American taxpayer.”
According to a statement of offense, signed by the defendant as well as the government, from in or about July 2008 to in or about October 2009, West was the director and chief executive officer of a non-profit public-private partnership that provided resources and developed programs to benefit children and youth in the District of Columbia. The partnership was primarily funded by the District of Columbia government through funds designated by the Mayor and Council for particular youth-related purposes. The partnership provided grants to organizations for programs tailored for children and youth.
Thomas, who took office in January 2007 as the Ward 5 representative, served during his first term as Chair of the Council’s Committee on Libraries, Parks, Recreation and Planning, which involved oversight responsibility for the D.C. Department of Parks and Recreation. In that role, he worked with the non-profit public-private partnership. Also, an individual identified as “Staff Member 1” worked on the Thomas’s staff and served as Director of the Committee.
Thomas was closely involved in the planning of the 51st State Inaugural Ball, held on Jan. 20, 2009 in the Wilson Building. It was a formal, black-tie event open to members of the public who had purchased tickets. But ticket sales and other contributions did not generate nearly enough money to cover costs of the event.
Several days after the event, West was contacted for the first time about the 51st State Inaugural Ball and told that organizers had not collected enough funds to pay for it. According to West, Thomas told her that youth had been able to attend the event to honor the historic inauguration of President Obama. West believed that the event served the partnership’s target population.
On Jan. 29, 2009, “Staff Member 1” submitted budget paperwork to the public-private partnership seeking a grant of $110,000 for a political organization that would fund a “youth/young adult inauguration celebration.” “Staff Member 1” also identified a potential funding source: the Drug Prevention/Children at Risk Fund, a separate fund established to raise money for programs that prevented drug and alcohol consumption and supported youth who had direct or indirect contact with drugs. The D.C. Council agreed in 2008 to transfer the administration of this fund to the public-private partnership, but had not yet done so.
West told “Staff Member 1” that the public-private partnership would move to fund the grant request for the Inaugural Ball once it got the money from the drug prevention fund. The plan hit an obstacle, however, when an employee of the public-private partnership expressed concern about the legality of granting money to a political organization.
Thomas subsequently directed “Staff Member 1” to change the grant recipient to the Youth Technology Institute, another non-profit, and new paperwork was submitted. On Feb. 5, 2009, West directed that the check be issued, with the money coming from the drug prevention fund.
In truth, after the grant was issued, the Youth Technology Institute immediately forwarded nearly the entire amount to the political organization, which paid expenses from the 51st State Inaugural Ball. West learned that this took place at a later date.
At all times, West viewed the ball as an event that was organized and sponsored by Council member Thomas. She failed to consider which individuals or organizations were responsible for the ball’s debts. Additionally, she caused the records maintained by the public-private partnership to inaccurately and falsely show that the $110,000 grant was given to an organization that was a tax-exempt entity. This resulted in a failure to report to the IRS that the ultimate beneficiaries of the grant funds included ineligible recipients.
West resigned from the partnership in October 2009 to become the District of Columbia’s director of homeland security and emergency management. The following year, the public-private partnership filed its tax forms with the Internal Revenue Service, listing the $110,000 grant as going to Youth Tech for “funding to provide programming for children and youth,” instead of providing the accurate accounting.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Special Agent in Charge Kelly praised the work of the investigators from the FBI’s Washington Field Office and IRS-CI who worked on the case. They also acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including Criminal Investigators Matthew Kutz, Mark Crawford and Melissa Matthews; Paralegal Specialists Tasha Harris, Diane Hayes, Shanna Hays, Lenisse Edloe and Monica Johnson; Legal Assistant Krishawn Graham, and former Assistant U.S. Attorney Bridget Fitzpatrick. Finally, they commended the work of Assistant U.S. Attorneys Jonathan W. Haray, David Johnson, and James E. Smith, who are prosecuting the matter.
13-063Former Ft. Campbell Soldier Sentenced to 20 Years in Prison for Violating Child Pornography Laws While Residing on Military BasesRead the Press Release
LOUISVILLE, Ky. – A former Fort Campbell, Kentucky, soldier was sentenced to 20 years in federal prison, followed by a lifetime of supervised release by Senior Judge Thomas B. Russell today, for knowingly possessing, mailing, transporting and shipping child pornography while residing within the Fort Campbell Military Reservation and during active duty in Iraq, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Timothy Lee Hansen, age 25, pleaded guilty to a four-count federal Indictment brought by a federal grand jury on August 17, 2011. Prior to his indictment, Hansen had been charged in a Criminal Complaint on July 19, 2011.
According to court records, between February 2010, and February 15, 2011, Hansen, also known as “Hydes420,” used a “peer-to-peer” internet file sharing software to download, store and trade digital images of child pornography. A subpoena issued by the Federal Bureau of Investigation (FBI), tracked the IP address of the computer used to distribute child pornography to a computer belonging to Hansen and located in a soldier’s barracks at Fort Campbell. The information was turned over to the United States Army, Criminal Investigation Division (CID) at Fort Campbell on February 14, 2011.
Hansen was identified as an active-duty soldier assigned to the 5th Special Forces Group. According to the Complaint, Hansen told investigators that he possessed approximately 100 megabytes of child pornography on his personal computers at Fort Campbell.
This case was prosecuted by Assistant United States Attorney Jo E. Lawless and was investigated by the FBI and United States Army CID.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Conroe Resident Gets 30 Years for Conspiring to Produce Child PornographyRead the Press Release
HOUSTON – Matthew David Eyerly, 36, has been handed a 30-year term of federal imprisonment following his conviction of conspiracy to produce child pornography and possession of child pornography, United States Attorney Kenneth Magidson announced today. Eyerly pleaded guilty May 16, 2012.
Today, U.S. District Judge Keith P. Ellison handed Eyerly the 360-month term which will be followed by a term of supervised release to last the rest of his life. Eyerly was further ordered to pay restitution to two known victims totaling $6,000 and will also be ordered to register as a sex offender.
The investigation into Eyerly began following several downloads of child pornography over the Internet by FBI officers in Tulsa, Okla.; Buffalo, N.Y.; and Detroit, Mich., which were traced to a computer used by Eyerly. On Nov. 9, 2006, agents located Eyerly at an apartment on Wilson road in Conroe along with an adult female and minor child. When agents told Eyerly they were there regarding a file server, Eyerly admitted to having operated one but said he gave it up, in part, due to his new relationship with the female. At that time, Eyerly consented to a search of his computer.
According to documents in support of his guilty plea, when asked about the minor child in the apartment, Eyerly admitted there would be pictures of the child on the computer. Eyerly admitted to digital and oral contact with the genitals of the child and having taken pictures of these acts. He said this took place at an earlier visit in July 2006 in Conroe when the woman left him alone with the child in a motel room. Eyerly also claimed the woman sent him nude photos of the child over the Internet.
A forensic exam was conducted which revealed images of the child on his computer as well as additional images of child pornography downloaded from the Internet not involving the minor child.
Eyerly will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Bank Teller Pleads Guilty in Scheme That Used Stolen Identifying Information to Seek More Than $20 Million in Fraudulent Tax Refunds-Identities Stolen from Nursing Home Patients, Others-Read the Press Release
WASHINGTON – Aisha Mayo, 24, a former bank teller from Greenbelt, Md., pled guilty today to a federal conspiracy charge stemming from her role in an identity theft and tax fraud scheme involving the filing of returns seeking more than $20 million in fraudulent refunds.
The plea, in the U.S. District Court for the District of Columbia, comes one week after another defendant, Kevin Brown, 42, of Capitol Heights, Md., pled guilty to federal charges stemming from his role as a key organizer and leader of the scheme. The case represents one of the largest prosecutions to date involving the use of stolen identifying information.
Today’s guilty plea was announced by U.S. Attorney Ronald C. Machen Jr.; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Eric M. Thorson, Inspector General, U.S. Department of Treasury; and David Beach, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Mayo pled guilty before the Honorable Magistrate Judge Alan Kay to a charge of conspiracy to defraud the United States with respect to claims. She will be sentenced at a later date by the Honorable Ellen S. Huvelle. The charge carries a statutory maximum of 10 years in prison, a fine of up to $250,000, restitution, and other penalties. Under federal sentencing guidelines, Mayo most likely faces 24 to 30 months in prison and a fine of up to $50,000.
According to evidence presented to the Court by Assistant U.S. Attorney Sherri L. Schornstein, Mayo was among participants in a massive identity theft and false tax refund scheme involving an extensive network of more than 100 people, many of whom were receiving public assistance. It also involves bank tellers and postal carriers. From 2006 to date, they allegedly caused the filing of at least 7,000 fraudulent federal income tax returns seeking more than $20 million in refunds. The case remains under investigation.
According to the government’s evidence in this case, the refunds were sought in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. At one nursing home alone, at least 14 identities were stolen, including five from people who were deceased at the time tax returns were filed in their names. Some people sold their identifying information. Some victims unwittingly turned over their identifying information after being told that they were due an income tax refund or were entitled to some “Obama Stimulus Money.”
The government’s evidence showed that participants in the schemes had various roles: some stole the identifying information; some permitted their personal identifying information to be used; some created and mailed the fraudulent federal tax returns; some permitted their addresses to be used for receipt of the refund checks. Some helped cash the checks; some provided bank accounts for negotiation of checks, and some forged endorsements of identity theft victims on the refund checks.
The false returns typically claimed that the “taxpayer” operated a sole proprietorship, such as a barber, claimed phony dependents, and then reported income that was sufficient to generate tax refunds based on the Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes.
Mayo was employed as a bank teller in Largo, Md. According to the government’s evidence, from on or about Oct. 4, 2011, until on or about April 3, 2012, she received roughly 62 U.S. Treasury checks from another participant in the conspiracy, totaling approximately $226,558; these were fraudulent income tax refunds generated through the scheme.
Mayo deposited these checks into 59 different bank accounts at her bank, without the account holders’ knowledge. When the checks cleared, she obtained the proceeds, kept about $200 to $300 per check, and gave the balance of the funds to the other person in the scheme.
In announcing the guilty plea, U.S. Attorney Machen, Special Agent in Charge Kelly, Inspector in Charge Barksdale, Inspector General Thorson, and Special Agent in Charge Beach commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Sherri L. Schornstein, who is prosecuting the case.
13-064Florida Man Sentenced in Manhattan Federal Court to 74 Months in Prison for Engaging in A Fraudulent Investment SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CLIFFE R. BODDEN was sentenced today in Manhattan federal court to 74 months in prison for participating in an investment scheme that defrauded foreign investors out of nearly $1 million. As part of the scheme, investors were lured with false promises that their funds would be safely invested in the U.S. financial markets through a legitimate broker-dealer. Instead, the money was misappropriated, used to pay certain expenses, and transferred to, among other places, entities related to BODDEN. He pled guilty in September 2012 to one count of conspiracy to commit wire fraud and one count of wire fraud and was sentenced by U.S. District Judge Katherine B. Forrest.
Manhattan United States Attorney Preet Bharara said: “With today’s sentence, Cliffe Bodden now knows there is a price to be paid for lying to investors, no matter where the victims live. Our ongoing efforts to prosecute the perpetrators of investment fraud are not limited by geographic boundaries.”
According to the court filings and statements made in court:
BODDEN held himself out as a Managing Director of Lempert Capital Management, Ltd., a corporation purportedly incorporated in the Cayman Islands. Starting in approximately 2005, foreign investors were lured into sending nearly $1 million to Lempert Capital’s purported management company Lempert Brothers under the pretense that those funds would be invested in the U.S. financial markets by Lempert Brothers, which was a registered broker-dealer. To induce investors into wiring funds, among other false promises, investors were told that the funds would be safeguarded, and that if the value of the funds dropped more than 20%, the money would be frozen and all remaining funds available for return to investors. In fact, the nearly $1 million of investor funds were misappropriated and diverted to, among other things, entities affiliated with BODDEN.
To keep the scheme going, BODDEN sent fraudulent monthly account statements to the investors. These statements falsely reflected that the investors’ funds were invested and earning substantial income. When investors attempted to withdraw funds from their accounts, BODDEN made additional false and fraudulent representations as to why the funds could not be returned when requested. For example, BODDEN falsely told investors that their money was illiquid because it had been invested in various companies that had not yet gone public.
In addition to the prison sentence of 37 months on each count to run consecutive for a total term of imprisonment of 74 months, Judge Forrest sentenced BODDEN, 49, of Tampa, Florida to two years of supervised release to run consecutively and ordered him to pay a fine of $25,000 and a special assessment of $200. Judge Forrest ordered restitution and forfeiture in the amount of $946,509, which represents the amount of the crime proceeds.
The charges against BODDEN’s co-defendant S. George Milter, 34, of New York, New York, are pending. These charges and the allegations against Milter are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
Felon in Possession Handed 15-Year Prison TermRead the Press Release
MCALLEN, Texas – A convicted felon in possession of a firearm and ammunition has been handed a significant federal term of imprisonment, United States Attorney Kenneth Magidson announced today. Jose Antelmo Mendez, 49, of Mission, pleaded guilty Feb. 6, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa sentenced Mendez to a total of 180 months of imprisonment to be followed by a two-year-term of supervised release. His sentence was subject to enhancements for being an armed career criminal as he had been convicted on two previous occasions of delivering of a controlled substance.
On July 5, 2010, Hidalgo County Sheriff’s Deputies responded to a call for assistance in relation to an allegation of domestic abuse. When deputies responded to the Mendez residence, they discovered him in possession of a 12-gauge shotgun and 10 shotgun shells. Mendez was taken into custody and subsequently found to be a convicted felon.
Previously released on bond, Mendez was taken into custody following a violation of his bond conditions, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hidalgo County Sherriff’s Department. The case was prosecuted by Assistant United States Attorney (AUSA) Steven Schammel. AUSA Juan Alanis handled the sentencing hearing today.
Felisha Monet Mitchell Indicted for Threatening President ObamaRead the Press Release
FELISHA MONET MITCHELL, age 32, a resident of Palm Springs, California, was charged in a one-count indictment today for threatening the President of the United States in violation of Title 18, United States Code, Sections 871(a) announced U.S. Attorney Dana Boente.
According to the Indictment and previously filed court documents, from January 21, 2013 through January 24, 2013, MITCHELL posted numerous statements on her public Twitter feed and Facebook page threatening President Obama and the First Family. In an interview with United States Secret Service Agents, MITCHELL admitted to posting the online threats using her cell phone while in New Orleans.
If convicted, MITCHELL faces a maximum penalty of five (5) years imprisonment, a $250,000 fine, and a three (3) year term of supervised release.
U.S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by Special Agents of the United States Secret Service and prosecution is being handled by Assistant United States Attorney Gregory M. Kennedy.
(Download Indictment )
East St. Louis Tow Truck Operator Sentenced for Theft of Government Property, Making False Statements to the F.B.I. and Making False Declarations Before A Federal Grand JuryRead the Press Release
Eddie Johnson, Jr., 47, of Cahokia, IL, was sentenced to fifteen months in prison the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. In addition to the prison sentence, Johnson was ordered to serve three years supervised release and was ordered to repay to the F.B.I. $6,194.66 in investigative costs.
Johnson was charged in a three-count Indictment that charged theft or conversion of government property; making a false statement to a federal law enforcement officer; and making a false declaration before a federal grand jury.
The prosecution is the result of an investigation by the Federal Bureau of Investigation who was investigating allegations of potential corruption in the City of East St. Louis. The F.B.I. conducted an integrity test wherein federal agents placed diamond earrings, a purse, a debit card and other valuables in a Mercedes automobile which appeared to be an abandoned stolen vehicle. Audio and video surveillance was in place around the vehicle. On February 12, 2011, Johnson responded to the location following a call from the East St. Louis Police Department to a towing company. Johnson stole diamond earrings and other valuables from the vehicle which was set up as a stolen vehicle crime scene. Johnson subsequently made false statements to the F.B.I. and to a federal grand jury in the investigation of the theft.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Norman Smith.
Dublin Doctor Convicted of Drug Distribution ChargesRead the Press Release
ROANOKE, VIRGINIA -- A former medical doctor from Dublin, Va., who was indicted in May 2012 on charges related to her illegal distribution of controlled substances, was convicted late Thursday evening on 172 of the 173 counts she was facing.
In May, a Federal Grand Jury charged Linda Sue Cheek, 63, of Dublin, Va., with 86 counts of distributing scheduled controlled substances without holding a valid certificate of DEA Registration, 81 counts of using a DEA registration number issued to another person, five counts of using a DEA registration number which has been revoked or suspended and one count of maintaining a drug-involved premise.
Following an 8-day trial in the United States District Court in Roanoke, a jury convicted the former doctor on all but one of the counts leveled against her. Evidence at trial determined that Cheek wrote prescriptions for controlled substances on her revoked DEA number and wrote prescriptions on a DEA number that belonged to another person.
“Despite losing her license to prescribe medication, Dr. Cheek repeatedly provided pain medication to vulnerable patients,” United States Attorney Timothy J. Heaphy said today. “Her motive was greed, and she collected thousands of dollars over the course of her illegal scheme. The abuse of prescription drugs in Southwest Virginia is a public health crisis, one that is tearing families apart. We will continue to investigate and prosecute health care providers like Linda Cheek who circumvent the rules and illegally dispense these highly addictive substances.”
"Dr. Cheek broke the law over and over again by illegally prescribing prescription drugs and exploiting vulnerable patients," said Virginia Attorney General Ken Cuccinelli. "We will not tolerate criminal behavior as a 'cost of doing business' or for purposes of greed. We will continue our fight to protect Virginia's most vulnerable citizens."
The investigation of the case was conducted by the Drug Enforcement Administration, the Department of Health and Human Services, the Virginia State Police and the Office of the Attorney General for the Commonwealth of Virginia, Medicaid Fraud Control Unit. Assistant United States Attorney Jennie L.M. Waering and Virginia Assistant Attorney General and Special Assistant United States Attorney Vaso T. Doubles are prosecuting the case for the United States.District Man Sentenced to Six Months in Jail for Brutal Abuse of Kittens-Defendant Pled Guilty to Animal Cruelty Charges -Read the Press Release
WASHINGTON - Eric Gaskin, 39, of Washington, D.C., was sentenced today to 360 days in jail, with all but 180 days suspended, on two counts of animal cruelty stemming from the abuse of two kittens, announced U.S. Attorney Ronald C. Machen Jr.
Gaskin pled guilty to the charges in November 2012 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Patricia A. Broderick. Following the 180 days of jail time, Gaskin will be placed on three years of probation. Judge Broderick ordered that, during that time, Gaskin must undergo mental health treatment, take parenting classes, not have any pets, and perform 40 hours of community service.
According to the government’s evidence, on May 4, 2012, Gaskin purchased two kittens at a corner store and brought them to his sister’s house, where he was staying at the time. Within the next day or two, the defendant, who is not a veterinarian or otherwise trained in animal medical care, attempted to de-claw the kittens or possibly even to amputate their toes using some sort of clippers and without any anesthesia.
Following this brutal home amputation, the kittens sat for days, unable to walk, as the open wounds in their paws festered and caked over with kitty litter and fecal matter. Gaskin’s sister noticed how injured the kittens were and brought them to the attention of the Washington Humane Society. However, the injuries were so severe that the kittens had to be euthanized.
In a report summarizing various medical examinations of the kittens, Dr. Matthew Braun, a veterinarian, wrote: “The degree of amputation (complete or partial) of the distal phalanges is more strongly suggestive of an intent to amputate the digit rather than clip the claws.”
Dr. Braun further stated that, this would have been an extremely painful experience for the kittens, and they would have struggled to get away. Indeed, as the kittens struggled against the defendant’s grip, most of the bones in each foot and leg were crushed, causing excruciating pain and profuse bleeding.
Dr. Megan McAndrew, Medical Director of the Washington Humane Society, added that “these kittens literally had their toes cut off without any sort of pain control.”
In announcing the sentence, U.S. Attorney Machen praised the work of the Washington Humane Society and its law enforcement officer who investigated the case. He also commended the efforts of Assistant U.S. Attorney Peter Lallas, who investigated and prosecuted the matter.
13-067District Man Sentenced to Five-Year Prison Term for Two Bank Robberies in 2008-Crimes Committed Within One Week-Read the Press Release
WASHINGTON – Tony Wilkerson, 41, of Washington, D.C., was sentenced today to a five-year prison term for carrying out two bank robberies within one week, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD)
Wilkerson earlier pled guilty to two counts of bank robbery. He was sentenced by the Honorable Ellen S. Huvelle in the U.S. District Court for the District of Columbia. Upon completion of his prison term, Wilkerson will be placed on three years of supervised release. He also will be required to pay a total of $10,380 in restitution.
According to the government’s evidence, on Nov. 17, 2008, at approximately 10:40 a.m., Wilkerson entered an M&T Bank in the 6400 block of Georgia Avenue NW. Wilkerson was wearing a grey sweatshirt with stripes, and a blue baseball cap. While inside the bank, he walked to the teller's counter and presented a note demanding money.
The teller complied and provided him with $5,000. Wilkerson took the cash and fled the bank, but he left the demand note behind. The bank's security guard, who had been patrolling the area around the bank at the time of the robbery, soon learned what had happened and began following Wilkerson. The guard lost sight of Wilkerson but found in a nearby yard a grey sweatshirt with stripes and a blue baseball hat consistent with the clothing that the robber wore.
These items were collected by law enforcement and sent to the FBI for analysis. Tests identified DNA found on the clothing as belonging to Wilkerson. His DNA was in the criminal justice system because of a prior conviction. The FBI also matched Wilkerson’s fingerprints to the demand note and a toy recovered with the robbery clothing.
The government’s evidence also showed that, on Nov. 24, 2008, Wilkerson robbed a SunTrust branch in the 6400 block of Georgia Avenue NW. Shortly after 10 a.m. that day, he passed a demand note to the teller that stated, “this is a robbery give me $8,000.” Wilkerson leaned forward, placing his palm on the counter of the teller station. The teller opened her drawer and gave Wilkerson bills totaling $5,380.
Wilkerson took the money and began to leave. However, he realized he had forgotten his demand note, and so he returned to the window, grabbed the note, and fled. Law enforcement recovered a palm print from the counter that Wilkerson touched and later submitted it to the FBI for analysis. The FBI Laboratory was tasked with comparing Tony Wilkerson's fingerprints, on file with the Integrated Automated Fingerprint Identifications System (IAFIS), with the latent palm print obtained from the bank counter. Upon completion of the comparison, the FBI Laboratory advised that Tony Wilkerson’s palm print was a match.
The investigation showed that the two bank robberies were carried out in a similar manner. The witnesses at the M&T Bank were shown a surveillance photograph of the person who robbed the SunTrust Bank, and they identified him as the robber as well.
Wilkerson was arrested in North Carolina in May 2012.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier commended the exceptional investigative work of the FBI/MPD Violent Crimes Task Force. They also commended the work of former Assistant U.S. Attorney Sean Lewis and Special Assistant U.S. Attorney Brittan Heller, who prosecuted the matter.
13-068Defendant Sentenced in $1.8 Million Scheme to Defraud Kaiser PermanenteRead the Press Release
OAKLAND, Calif. – Asim Waqar, a former employee of Kaiser Permanente, headquartered in Oakland, California, was sentenced on Wednesday, February 20, 2013, to 33 months in prison and ordered to pay restitution in the amounts of $1,803,667 to Kaiser and $142,530 to the United States Treasury for his guilty pleas to the conspiracy to commit wire fraud and tax evasion, United States Attorney Melinda Haag announced.
According to court documents, Waqar was employed by Kaiser in 2005 as a manager working in Oakland, California. Waqar convinced his college friend, co-defendant Farid Rahman, and his wife, co-defendant Mina Kuhl, living in the Detroit, Michigan area, to join Waqar in a scheme to defraud Kaiser by encouraging Kaiser to hire Kuhl who would purportedly work from Michigan under Waqar’s supervision. In fact, once Kuhl was hired by Kaiser, Waqar would arrange for Kuhl to be paid without having to perform any work. With Waqar’s assistance, Kaiser hired Kuhl and between 2005 and 2008, when Kaiser Permanente management learned of the fraudulent scheme, Waqar had authorized payment of $1,803,667.84 to third party vendors for the employment of Kuhl. From the money paid to Kuhl, Kuhl and Rahman kicked back $428,300 to Waqar, who failed to pay federal taxes in the amount of $142,300 due on this income.
Waqar was placed on administrative leave on August 21, 2008 and resigned from Kaiser on September 4, 2008.
Waqar, 40, Farid Rahman, 44, and Minda Kuhl, 38, all of Windsor, Canada, were charged in a Superseding Information filed in this district on November 3, 2011, with the conspiracy to commit wire fraud, and Rahman and Waqar were also charged with tax violations. The charges against Kuhl and Rahman were transferred to the Eastern District of Michigan where they both pleaded guilty and were sentenced. Rahman received a sentence of 18 months in custody and Kuhl was sentenced to a year and 1 day in custody. Both defendants were ordered to pay restitution to Kaiser, jointly with Waqar.
The case was prosecuted by Assistant U.S. Attorney Patrick Hurford in the Eastern District of Michigan and Assistant U.S. Attorney Stephen Corrigan in the Northern District of California, with the assistance of Chief Legal Tech Kathleen Turner. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
Corrupt bank employee pleads Guilty for roll in tax fraud conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Hilda Josephine Hernandez-McMullen, 47, of Anchorage, Alaska, pled guilty on Thursday to eight separate felony counts based on her role assisting others in opening bank accounts and fraudulently negotiating tax refund checks using stolen identities.
Specifically, on February 21, 2013, Hernandez-McMullen pled guilty to seven counts of bank fraud for assisting others to open bank accounts in false names as well as one count of assisting an individual in negotiating a forged U.S. Treasury check. She faces a maximum sentence of 30 years in prison for each bank account she helped open as well as a maximum sentence of 10 years in prison for her role in negotiating the forged U.S. Treasury check. Sentencing is currently scheduled for June 10, 2013, before United States District Court Judge Timothy M. Burgess.
Hernandez-McMullen was indicted in July 2012, along with 10 other defendants for her role in an alleged $25 million dollar tax fraud and identity theft scheme that used stolen Puerto Rican identities to file false tax returns and obtain fraudulent income tax refunds.
According to her plea agreement, Hernandez-McMullen worked as a personal banker at Wells Fargo Bank in Anchorage between December 2008 and September 2010, and opened several bank accounts for defendants also charged in the scheme. Hernandez-McMullen opened the accounts despite knowing that the names and identifying information used to open them were false.
Court documents state that these and other bank accounts were then used to negotiate income tax refund checks that defendants in this case were not entitled to receive and which were not in their names.
Hernandez-McMullen admitted to assisting in the fraudulent negotiation of checks totaling $37,978.15. She further admitted that she negotiated these checks despite the fact that they were issued to people who were not at the bank at the time the checks were being negotiated.
Trial for the remaining defendants in the case is scheduled for May 14, 2013, at 9:00 AM in Anchorage.
The case is being prosecuted by Assistant U.S. Attorney James Barkeley, Thomas C. Bradley, and Stephanie C. Courter of the U. S. Attorney’s Office, District of Alaska. The case was investigated and prosecuted under the purview of the Organized Crime and Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, ICE Homeland Security Investigations, Internal Revenue Service–Criminal Investigations, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard and the Anchorage Police Department.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites, including the Federal Trade Commission, the Justice Department, the Social Security Administration, and the IRS.
Convicted Sex Offender Sentenced to 30 Months in Federal Prison for Failure to Register with the Kentucky Sex Offender RegistryRead the Press Release
OWENSBORO, Ky. – A convicted sex offender living in Owensboro, Kentucky was sentenced to 30 months in prison, followed by a five-year term of supervised release, by Chief District Judge Joseph H. McKinley, Jr. this week, for failure to register with the Kentucky Sex Offender Registry announced David J. Hale, United States Attorney for the Western District of Kentucky. Russell Jones, age 49, of Owensboro, Kentucky pleaded guilty to a one count indictment on November 27, 2012. According to court records, Jones was convicted on charges of attempted rape in the Court of Common Pleas in Franklin County, which is in Columbus, Ohio. That conviction rendered Jones a Sexually-Oriented Offender and required him to register as a sex offender for ten years. Jones initially registered in Columbus, Ohio with the Franklin County Sheriff’s Department on March 19, 2004 and maintained his sex offender registration in Franklin County until August 2011, then registered with the Miami, Dade County Police Department after moving to Florida.
On May 26, 2012, the Owensboro Police Department arrested Jones for Public Intoxication. At the time of his arrest, employment records revealed that Jones had been living and working in Owensboro beginning in February 2012. Despite living and working in Kentucky for several months, Jones did not register with the Kentucky Sex Offender Registry - as required to do so under the terms of his Ohio conviction and the laws of Kentucky. This case was prosecuted by Assistant United States Attorney Jo E. Lawless and was investigated by the United States Marshals Service.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Congressional Candidate Charged with Violation of the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Justin Lamar Sternad, 35, was charged with having violated the Federal Election Campaign Act (Election Act) in connection with the 2012 Democratic Party primary election for Florida’s 26th Congressional District.
Defendant Sternad is expected to make his initial appearance in federal court before U.S. Magistrate Judge Alicia Otazo-Reyes on February 22, 2013 at 2:00 p.m.
The Criminal Information, filed earlier today, charges Sternad with engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and accepting illegal campaign contributions (Count 3). If convicted, Sternad faces a maximum statutory term of imprisonment of up to five years and a fine up to $250,000 on each count.
U.S. Attorney Wifredo Ferrer stated, “The Election Act seeks to promote transparency in the campaign process and thereby increase accountability from our elected officials. Sternad, however, violated the Election Act and lied to conceal the true source of funds being used by his campaign. He sought to secretly provide and accept contributions in excess of the limits prescribed by law, using cash and third party checks to conceal the source and amount of contributions made to his campaign. He then compounded his crimes by filing false campaign reports to cover his trail. We are committed to promoting transparency and accountability from our elected officials and from those running for office. Our citizens deserve no less.”
“For citizens to have confidence in their government, they must be certain that their elected officials are fairly elected. We will not tolerate people who violate federal election law,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “The South Florida community can be assured that public corruption will remain a top priority for the FBI.”
Mr. Ferrer commended the investigative efforts of the agents of the FBI for their hard work in this matter. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill and Richard C. Pilger of the Public Integrity Section of the U.S. Department of Justice.
An Information is only an accusation and a defendant is presumed innocent until proven guilty.
Attachments:
Information (PDF)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.
Colorado Springs Man Sentenced to Federal Prison for Armed Robbery and Possession of A Firearm During A Crime of ViolenceRead the Press Release
DENVER – Joshua Bodean Smith, age 22, of Colorado Springs, was sentenced today by U.S. District Court Judge Christine M. Arguello to serve 483 months (40 years and 3 months) followed by 8 years of supervised release for two counts of armed robbery (Hobbs Act) and two counts of possession of a firearm during a crime of violence, United States Attorney John Walsh and FBI Denver Special Agent in Charge James Yacone announced. Smith, who appeared at the hearing in custody, was also ordered to pay $895 in restitution to the two victims of his crime.
Smith was charged by Criminal Complaint on November 16, 2010. He was indicted by a federal grand jury on December 13, 2010. On November 21, 2012, the defendant was found guilty following a two week trial of the robbery (Hobbs Act) and gun charges. Smith was sentenced today, February 22, 2013.
According to the indictment, and facts presented at trial, on August 31, 2010 Smith, robbed a Cricket Communication Store located on South Nevada Avenue in Colorado Springs, Colorado. He used a firearm in relation to that crime of violence. On October 11, 2010, Smith robbed a Burger King restaurant on base within Fort Carson. He used a firearm during the commission of that crime of violence as well.
This case was investigated by the Federal Bureau of Investigation, the Colorado Springs Police Department and the Army Criminal Investigation Division at Fort Carson.
This case was prosecuted by Assistant U.S. Attorney Kurt Bohn and Special Assistant U.S. Attorney Beth Gibson.
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Citizen of El Salvador Sentenced to 37 Months in Federal Prison for Illegally Reentering the U.S.Read the Press Release
February 22, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that DANILO ALVARADO-CARBAJAR, 29, a citizen of El Salvador, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 37 months of imprisonment for illegally reentering the United States following his deportation.
According to court documents and statements made in court, ALVARADO-CARBAJAR was deported from the United States to his native El Salvador in May 2007 following a state conviction for sexual assault in the second degree. In approximately May 2012, ALVARADO-CARBAJAR illegally reentered the U.S. without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the U.S.
On June 22, 2012, ALVARADO-CARBAJAR was arrested by the Norwalk Police Department on a state probation violation. Subsequent investigation revealed that ALVARADO-CARBAJAR was in the country illegally. He has been detained since his arrest.
On December 13, 2012, ALVARADO-CARBAJAR pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Criminal Alien Program. The case was prosecuted by Assistant United States Attorney Neeraj N. Patel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]California Man Pleads Guilty in Methamphetamine Distribution SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Sacramento, Calif. pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Dominick Spickle, 79, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Spickle was involved in a conspiracy to distribute more than 50 grams of methamphetamine.
Judge Conti scheduled sentencing for June 14, 2013. The law provides for a maximum total sentence of not less than 5 years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant's bond.
Assistant United States Attorney Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Spickle.
Broward Man Sentenced to 159 Months for Stealing More Than 23,000 Identities in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) in Minneapolis, José A. Gonzalez, Special Agent in Charge, IRS-CI, Miami Field Office, Larry Gomer, Chief, North Miami Beach Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announced that defendant Rodney Saintfleur, 28, was sentenced today to 159 months in prison, to be followed by three years of supervised release. Saintfleur pled guilty on November 27, 2012 to one count of conspiracy to submit fraudulent claims to the government, one count of access device fraud, and one count of aggravated identity theft.
According to the Information, the defendant and co-conspirators agreed on a plan to use stolen personal identifying information of others to file fraudulent tax returns seeking refunds. The defendant obtained documents that listed tens of thousands of names with corresponding dates of birth.
According to the factual proffer and statements made at sentencing, the defendant searched an online proprietary database and fraudulently obtained the Social Security numbers of more than 23,000 people whose names and dates of birth appeared on the documents in 2010 and 2011. The defendant provided these Social Security numbers to co-conspirators for an identity theft tax refund fraud scheme. Co-conspirators then filed fraudulent and unauthorized tax returns seeking refunds using the stolen personal identifying information provided by the defendant.
Mr. Ferrer commended the investigative efforts of IRS-CI, the North Miami Beach Police Department, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Brandon Lee Strecker Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 21, 2013, before Chief U.S. District Judge Richard F. Cebull, BRANDON LEE STRECKER, a 38-year-old resident of Hardin, was sentenced to a term of:
- Prison: 12 months and 1 day
- Special Assessment: $100
- Forfeiture: Route 1 Box 1263A
- Supervised Release: 3 years
He was sentenced in connection with his guilty plea to maintaining drug involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
In approximately March of 2011, law enforcement received a complaint that Ross Pattison and Travis Birdinground were distributing marijuana to numerous people in Hardin and other places in Big Horn County. Through investigation and interviews, law enforcement determined that Pattison possessed a Montana medical marijuana card but was not listed as a caregiver because he is a convicted felon. Law enforcement also determined that Birdinground worked for Pattison delivering marijuana. Birdinground also possessed a medical marijuana card and was a caregiver for only one patient. Law enforcement observed Birdinground leave Pattison's residence numerous times a night and make trips to several residences within Hardin. Law enforcement also observed several individuals drive to Pattison's residence to purchase marijuana from Pattison.
On April 22, 2011, law enforcement executed search warrants for Pattison's Hardin residence and two pickup trucks. Law enforcement seized approximately five pounds of marijuana, approximately $124,000 in cash, digital scales, a paper grocery bag full of zip-lock bags, a methamphetamine pipe with residue, hashish, and photocopies of patient medical marijuana cards for marijuana caregivers STRECKER, Jason Gierke, Birdinground and another individual.
On May 23, 2011, law enforcement executed a search warrant at STRECKER's Hardin residence. Law enforcement seized a total of 420 marijuana plants - 112 marijuana plants in the attached garage, 239 marijuana plants in the bedroom, one plant in the living room, 68 in the greenhouse and shed. They also seized loose marijuana.
Several witnesses confirmed that Pattison would take and receive orders for marijuana and Gierke, Birdinground, and another individual would deliver marijuana to the buyers. Several witnesses will testify that after Ross Pattison's house was searched, all deliveries were then made by STRECKER or the others.
During an interview with law enforcement on April 22, 2011, Birdinground admitted his role in the conspiracy to distribute marijuana from Pattison's and STRECKER's Hardin residences. The marijuana that he possessed on April 22, 2011, was marijuana that he was delivering for Pattison and STRECKER. The marijuana was ordered through Pattison. Birdinground would pick up the marijuana from Pattison and give Pattison the money after the transaction. Pattison and STRECKER paid Birdinground $800 every two weeks.
During an interview with law enforcement on May 25, 2011, Gierke stated that he helped set up the greenhouses and watering system as part of the marijuana grow operation at STRECKER's Hardin residence. Gierke obtained his marijuana from Pattison and STRECKER. Gierke, Pattison, and STRECKER were "business partners." Pattison put it all together and they grew the marijuana at STRECKER's residence.
Chemists with the DEA laboratory in San Francisco tested the marijuana items submitted from the search of STRECKER's residence. Some of the items were plant clippings as well as loose marijuana. The result of the analysis was that those items contained a detectable amount of marijuana, a Schedule I controlled substance.
Gierke, Pattison, and Birdinground pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the following federal, state and local law enforcement agencies: the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Criminal Investigation Division of the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Environmental Protection Agency-Criminal Investigation Division, U.S. Customs and Border Protection-Border Patrol, and the Occupational Safety and Health Administration. These federal agencies were assisted by local High Intensity Drug Trafficking Area task forces, the Northwest Drug Task Force, the Kalispell Police Department, the Flathead County Sheriff's Office, the Missoula Police Department, the Missoula County Sheriff's Office, the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force, the Great Falls Police Department, the Cascade County Sheriff's Office, the Central Montana Drug Task Force, the Billings Police Department, the Yellowstone County Sheriff's Office, the Eastern Montana High Intensity Drug Trafficking Area (HIDTA) Task Force, the Dillon Police Department, the Beaverhead County Sheriff's Office, the Park County Sheriff's Office, the Bozeman Police Department, the Gallatin County Sheriff's Office, the Belgrade Police Department, the Missouri River Drug Task Force, the Helena Police Department, the Lewis & Clark Sheriff's Office, and the Eastern Montana Drug Task Force - Miles City.
"Bling Bandit" Sentenced for Three Portland Bank RobberiesRead the Press Release
Ivory Joe Watkins Receives Sentence of 65 months in Federal Prison
PORTLAND, Ore. – Ivory Joe Watkins, 37, of Portland, Oregon was sentenced by U. S. District Court Judge Michael W. Mosman to 65 months in prison following his pleas of guilty to two counts of unarmed bank robbery and one count of attempted unarmed bank robbery. Watkins, who had been given the moniker of the “Bling Bandit” because of the jewelry worn during the bank robberies, was also ordered to pay $3,641 in restitution to U.S. Bank. In Watkins’ guilty pleas, he admitted to the following bank robberies:
(1) April 26, 2012 – U.S. Bank, N.E. 122nd Ave.;
(2) June 29, 2012 – Wells Fargo Bank (attempted robbery), S.E. 82nd Ave.;
(3) July 16, 2012 – U.S. Bank, N.E. 122nd Ave.These cases were investigated by the Portland Police Bureau and prosecuted by Assistant U. S. Attorney Fred Weinhouse.
Thursday 21 February 2013
Wilmington Man Sentenced for Two Robberies-Samuel GainesRead the Press Release
ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court yesterday SAMUEL EARL GAINES, 29, was sentenced by United States District Judge Terrence W. Boyle to 204 months imprisonment; 3 years supervised release, and was ordered to pay a $400.00 special assessment.
On October 23, 2012, GAINES pled guilty to Possession with Intent to Distribute Marijuana in violation of Title 21, United States Code 841(a) and Possessing and Using a Firearm during a Drug Trafficking Offense which occurred on July 11, 2011. In addition GAINES pled guilty to Robbery of a Business in violation of Title 18 United States Code 1951 and Possessing and Using a Firearm during a Crime of Violence which occurred on July 21, 2011.
On July 11, 2011, in Wilmington, he and others went to the home of a man who they believed had a large quantity of marijuana in hopes of robbing the man of his drugs. During the course of the robbery, the victim was shot four times. GAINES and his co-defendants stole various items of personal property from the victim along with a quantity of marijuana which they divided among themselves.
On July 21, 2011, GAINES and others went to Able Auto Insurance Agency in Wilmington and robbed the business of money while holding the employees at gun point. The investigation revealed GAINES and his two co-defendants went to a Dollar General store immediately before the robbery to buy sunglasses to wear during the robbery.
When questioned by law enforcement, GAINES admitted his involvement in both robberies.
Investigation of this case was conducted by the Wilmington Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the University of North Carolina at Wilmington Police Department. Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Wilmington Man Sentenced for Two RobberiesRead the Press Release
ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court yesterday SHERWIN ARCHIE, 59, was sentenced by United States District Judge Terrence W. Boyle to 264 months imprisonment; 3 years supervised release, and was ordered to pay a $200.00 special assessment.
On June 5, 2012, ARCHIE pled guilty to Possession of a Firearm by a Felon, in violation of Title 18 United States Code 922(g), Robbery of a Business in violation of Title 18 United States Code 1951 and Possessing and Using a Firearm during a Crime of Violence.
On October 19, 2011, in Wilmington ARCHIE went into a Family Dollar store and demanded money from the clerk. ARCHIE put the gun to the stomach of the clerk and threatened her with the firearm. ARCHIE was wearing a distinctive shirt that was described to law enforcement. He robbed the store of approximately $187. During a separate investigation, law enforcement executed a search warrant on ARCHIE’S home, where they discovered a .25 caliber hangun and ammunition and the sweatshirt worn during the course of the robbery. When ARCHIE was questioned about the robbery, he admitted to stealing the money from the Family Dollar. ARCHIE was sentenced as an Armed Career Criminal for having three or more violent felony convictions on his record.
Investigation of this case was conducted by the Wilmington Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the University of North Carolina at Wilmington Police Department. Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Wilmington Man Sentenced for Drug TraffickingRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced John Thomas VAUGHN, 33, of Wilmington, North Carolina, to 252 months imprisonment followed by 5 years supervised release.
On May 17, 2012, VAUGHN pled guilty to conspiring to possess with the intent to distribute and distributing more than 28 grams of cocaine base (crack).
On August 12, 2010, VAUGHN was stopped in a vehicle by the Wilmington Police Department. VAUGHN was traveling from Tabor City to Wilmington North Carolina. A Wilmington Police Detective found a quantity of cocaine in VAUGHN’S vehicle. The investigation revealed that VAUGHN had made several trips to South Carolina in order to pick up cocaine.
During the course of the investigation it was also uncovered that VAUGHN and other persons took part in home invasions of drug dealers, stealing cocaine and drug proceeds.
2
The cocaine was then sold by VAUGHN and/or people associated with him. VAUGHN was responsible for the importation, conversion, and distribution of more than 3 kilograms of cocaine and 2 kilograms of cocaine base (crack). VAUGHN was primarily supplying crack cocaine in the Wilmington area.
This case was brought as a part of an Organized Crime Drug
Enforcement Task Force (OCDETF) Operation entitled Buggsnatcher,
investigating importers and multi-level distributors of cocaine and crack cocaine. So far 18 persons have been sentenced in federal court as a part of this OCDETF.
Investigation of this OCEDTF case is being conducted by the
Bureau of Alcohol, Tobacco, and Firearms and Explosives; the North Carolina State Bureau of Investigations; the Wilmington Police Department; the New Hanover County Sheriff’s Office and the Brunswick County Sheriff’s Office. Special Assistant United States Attorney Timothy Severo represents the government. Mr. Severo is a prosecutor with the New Hanover District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.Two Williamsport Residents Charged with Conspiracy to Submit False Income Tax ReturnsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges have been filed against Cheryl Cobia and Sharieff Wilkins, both of Williamsport, Pennsylvania.
According to United States Attorney Peter J. Smith, Cobia, age 27, is charged with conspiracy to file false income tax returns claiming false refunds between 2009 and 2011. It is alleged she attempted to receive refunds totaling more than $1,000,000. She is also charged with making false statements in applications for food stamp and medical assistance benefits.
Wilkins, age 35, is charged with conspiracy to submit false claims to the United States government. The charge alleges he submitted multiple false income tax returns for himself and others for tax years 2009-2011 and claimed refunds to which he was not entitled.
The investigations were conducted by the Internal Revenue Service, Criminal Investigation Division and the Office of Inspector General Department of Health and Human Services. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute for both defendants is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Two Philadelphia Men Charged in Bank Fraud ConspiracyRead the Press Release
Eric Young, 39, and Calvin Johnson, 41, both of Philadelphia, Pennsylvania, were charged today by Indictment with one count of conspiracy to commit bank fraud and one count of bank fraud, announced United States Attorney Zane David Memeger.
According to the indictment, Young and Johnson ran a scheme in which they hired individuals to open bank accounts, made phony deposits, and made withdraws from the accounts knowing there were insufficient funds. The indictment alleges that the defendants defrauded the banks of more than $100,000 between December 2011 and August 2012.
If convicted on all counts, Young and Johnson each face a maximum possible sentence of 35 years imprisonment, a five-year period of supervised release, a fine of up to $1.25 million, a $200 special assessment, and full restitution.
The case was investigated by the Bensalem Police Department and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Men Arrested for Alleged Extortion of Detroit-Area Restaurant OwnerRead the Press Release
Two men were arrested today on charges of allegedly extorting a Detroit-area restaurant owner, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan and Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Division.
Giuseppe D’Anna, aka “Joe,” 60, and Girolamo D’Anna, aka “Mimmo,” 48, were charged in an indictment unsealed today in U.S. District Court in the Eastern District of Michigan. Both defendants made their initial court appearances today in Detroit.
The defendants are charged in a three-count indictment with one count of Hobbs Act conspiracy and two counts of attempted Hobbs Act extortion, each of which carries a maximum penalty of 20 years in prison. According to the indictment, the defendants and other co-conspirators allegedly attempted to extort the owner of a Shelby Township, Mich., restaurant from approximately 2009 through approximately April 2011.
Indictments are only charges and not evidence of guilt. The defendants are presumed to be innocent until and unless proven guilty.
The investigation of this case was led by the FBI’s Detroit Field Division. Assistant U.S. Attorney Eric Straus of the Eastern District of Michigan and Principal Deputy Chief David Jaffe of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.
Title Insurance Company President Sentenced to Federal PrisonRead the Press Release
Orlando, Florida - Senior U.S. District Judge G. Kendall Sharp sentenced Douglas Wayne Bartle, III, also known as Ridgely Douglas Bartle and Douglas Wayne Bartle, Jr., (49, Winter Park) to 20 months in federal prison for wire fraud. The court also ordered Bartle to pay $862,770.12 in restitution to his victim. Bartle pleaded guilty on November 27, 2012.
According to court documents, in 2004 Bartle and others opened a title insurance company named Vision Title. Vision Title had offices in various counties throughout Florida. The offices were formed as Florida limited liability companies (Vision LLCs). In 2009, to cover living and other personal expenses, Bartle embezzled money from Vision Title’s escrow account. To ensure that Vision Title’s insurance underwriters were unaware of the theft, Bartle used a computer in Orange County, Florida, to access the Internet and obtain bank statements on computer servers in North Carolina. Bartle then altered those bank statements and provided copies to Vision Title’s insurance underwriters. These fraudulent bank statements prevented the insurance underwriters from detecting the fraud and caused the insurance underwriters to allow Vision Title to stay in business. As Vision Title continued to operate, Bartle was able to steal more money. Because of Bartle’s actions, Vision Title had insufficient funds to cover claims that could have been made on title insurance issued by Vision Title. When law enforcement detected the fraud, Vison Title offices throughout Florida were immediately shut down. Vision Title employees lost their jobs with no advance notice. In total, Bartle embezzled approximately $1.1 million.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Insurance Fraud. It was prosecuted by Assistant United States Attorney Vincent A. Citro.
Three Individuals Sentenced in Orlando Federal Court for Scheme to Cash Fraudulent Refund ChecksRead the Press Release
Orlando, FL - U.S. District Judge Charlene E. Honeywell sentenced three individuals for their roles in a conspiracy to defraud the government. Eliseo Dela Rosa (38, Orlando) was sentenced to 15 months in federal prison, Ana Torres (27, Kissimmee) was sentenced to two years' probation and Ada Lopez (39, Orlando) was sentenced to six months' home confinement as a condition of four years of probation. All three pleaded guilty on November 16, 2012.
According to court documents, the Internal Revenue Service discovered that Dela Rosa and others fraudulently received IRS refunds and stimulus checks. They then cashed or deposited the checks at Bank of America. Torres and Lopez worked as bank tellers at Bank of America. Between May 2007 and July 2008, Dela Rosa took several Treasury checks to Lopez and Torres. Lopez and Torres would either cash or deposit the checks into another individual's Bank of America checking account. The women would then give the money to Dela Rosa or one of his runners who dropped off the checks for him.
Lopez cashed checks for Dela Rosa and received payment for each check she cashed. All checks already had been endorsed before Lopez received them. If a check was not endorsed, Lopez would give the check back to Dela Rosa who would bring the check back later. Lopez cashed about $244,000 in checks.
Between May 2, 2007, and September 11, 2007, Torres also deposited Treasury checks received from Dela Rosa or his runners. She cashed a total of approximately $46,000 in checks. Torres withdrew her fee for cashing the checks and gave the remainder of the proceeds to Dela Rosa.
This case was investigated by the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Tanya Davis Wilson.
Three Charged in Scheme to Defraud New York City School Construction Authority of over $32 Million; Two Others Charged with Structuring to Conceal FraudRead the Press Release
A criminal complaint was unsealed this morning in federal court in Brooklyn charging Muzaffar Nadeem, Afzaal Chaudry, and Zainul Syed with conspiring to defraud the New York City School Construction Authority (SCA) by falsely certifying that workers on the defendants’ SCA-funded construction projects received the legally and contractually mandated prevailing wage for their work.1 The complaint also charges Syed, as well as Irfan Muzaffar and Arun Gandham, an employee of a check-cashing business located in Jersey City, New Jersey, with structuring financial transactions in violation of federal law. The defendants arrested this morning have their initial appearances scheduled later today before United States Magistrate Judge Viktor V. Pohorelsky at the U. S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Eric T. Schneiderman, New York State Attorney General, Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI); Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS), New York; and Special Agent-in-Charge Robert Panella, New York Regional Office of the U.S. Department of Labor, Office of Inspector General (DOL IG), Office of Labor Racketeering and Fraud Investigations.
As alleged in the complaint and other court filings by the government, Nadeem operated a construction company, SM&B Construction Co., Inc. (SM&B) in Brooklyn, which has been awarded over $72 million in contracts by the SCA since 1997 and has received over $32 million in fraud-induced payments from the SCA since 2008. Chaudry and Syed worked as a foreman and office manager, respectively, at SM&B. Both New York State Labor Law and the terms of its contracts with the SCA required SM&B to pay workers on SCA-funded projects a prevailing wage rate, which was set by the New York City Comptroller. In fact, SM&B paid workers on its projects, including bricklayers and laborers, in cash at rates far below the prevailing wage and then falsely certified to the SCA that the workers had been paid the prevailing wage. For example, bricklayers renovating a Brooklyn elementary school were paid $250 for each eight-hour day, rather than the $580 daily wage to which they were legally entitled. Laborers on the same project were paid about $125 per day, rather than the $460-$540 daily wage to which they were legally entitled. As alleged in a detention memorandum filed today by the government, more than $3 million of SM&B’s proceeds from the charged fraud scheme were laundered through shell companies and then sent to Pakistan to fund an investment in an amusement park and resort complex there.
To conceal the charged fraud scheme from law enforcement, and to obtain cash to pay the illegally low wages to workers, Syed, Muzaffar, and Gandham allegedly engaged in illegal structuring, specifically, cashing multiple checks, each for less than $10,000, on a single day, for a total amount of more than $10,000, and thereby avoiding the required filing of Currency Transaction Reports (CTRs). According to the complaint, since January 2008, more than $3.6 million in structured checks were written on SM&B’s account.
“As charged in the complaint, the defendants promised workers a fair wage for a day’s work - work that was often difficult manual labor, but shortchanged them to line their pockets. They also defrauded the taxpayers by falsely stating to the School Construction Authority that they were paying a full day’s wages for a full day’s work. Their lies resulted in the awarding of contracts they were not entitled to, tens of millions of taxpayer dollars obtained by fraud, and the exploitation of workers,” stated United States Attorney Lynch. “They will now be held to account for their actions.” Ms. Lynch expressed her grateful appreciation to the New York City School Construction Authority Office of the Inspector General, the New York State Office of the Attorney General Organized Crime Task Force, the New York City Police Department, and the New York County District Attorney’s Office for their assistance in the investigation.
Attorney General Schneiderman stated, “My office will not tolerate employers who violate New York’s labor laws, steal taxpayer dollars and violate the public trust. Instead of complying with the law and paying their employees the fair and legally required wages, these unscrupulous business owners cheated their workers and stole tens of millions of dollars from New York City schools.”
DOI Commissioner Gill Hearn stated, “The defendants were well schooled in cheating their workers, according to the charges, and even sent millions they skimmed overseas to fund an amusement park. But defrauding the City’s school construction program is a serious crime that no one in law enforcement finds amusing. DOI thanks our partners in this case for their enduring commitment to rooting out fraud in our City’s construction industry.”
IRS Special Agent-in-Charge Weirauch stated, “Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Such investigations are important because structuring is essentially a form of money laundering. The structuring activities alleged in this complaint not only hid a major fraud, but they provided the means to deprive hard working individuals of honest wages.”
DOL IG Special Agent-in-Charge Panella stated, “Today’s charges serve as a deterrent to those who would allegedly defraud unions and workers by falsifying payroll records to conceal their crimes. The Office of Inspector General will continue to work closely with our law enforcement partners to investigate these types of allegations.”
If convicted, the defendants charged with conspiracy to commit mail fraud each face a maximum sentence of 20 years’ imprisonment. If convicted, the defendants charged with illegally structuring financial transactions each face a maximum sentence of five years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Paul Tuchmann, Lan Nguyen and Claire Kedeshian.
The Defendants:
MUZAFFAR NADEEM
Age: 57
Residence: Brooklyn, NYAFZAAL CHAUDRY
Age: 46
Residence: Brooklyn, NYZAINUL SYED
Age: 38
Residence: Brooklyn, NYIRFAN MUZAFFAR
Age: 28
Residence: Brooklyn, NYARUN GANDHAM
Age: 44
Residence: Jersey City, NJ_____________________________
1The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Third Member of Three-Woman Bank Robbery Ring Sentenced to 19 Years for Participation in String of Bank RobberiesRead the Press Release
Case Results in Conviction of Three Individuals and Resolves Three Bank Robberies in Kalamazoo and an Attempted Bank Robbery in FlintGRAND RAPIDS, MICHIGAN – LaTasha Ann Nichols, 28, of Flint, Michigan, was sentenced by U.S. District Judge Robert Holmes Bell to 19 years in Federal Prison for her role in a string of bank robberies that took place between 2009 and 2012. Nichols pled guilty to two counts of armed bank robbery and one count of using a firearm in the commission of a violent felony. In addition to the 19 year sentence for Nichols, Judge Bell previously sentenced Miranda Jamelle Dixon (28) to 17 years and Suzanne Cherre Alguarelles (38) to six years in prison for their roles in what the judge described as a dangerous and violent string of robberies.
U.S. Attorney Patrick A. Miles Jr. stated, “Armed bank robbery is a very serious crime that terrorizes members of our society and has the very real potential of causing serious personal injury, if not death, to innocent bystanders. This prosecution and the lengthy prison terms imposed reflect that violent crime will not be taken lightly in this district.”
The bank robbery string began in June, 2009, when Nichols, Dixon and Alguarelles stole a Dodge Neon from an apartment complex in Kalamazoo, Michigan. Nichols and Dixon drove the Dodge Neon to the National City Bank on Stadium Drive where they robbed the bank at gunpoint and obtained over $8,000.00. Nichols and Dixon then abandoned the stolen vehicle and traveled on foot to a nearby apartment complex where Alguarelles served as the get-away driver and facilitated their escape to the Detroit area. Nichols and Dixon attempted another bank robbery in Flint, Michigan, on November 16, 2011, but were thwarted by a security guard. The two traveled to Kalamazoo, Michigan, and on November 17, 2011, stole another Dodge Neon and robbed the Charter One Bank on West Main Street at gun-point. The bank tellers handed over $7,222.01 after Dixon threatened that if the tellers used dye-packs she would come back and get them. Finally, on February 14, 2012, Dixon, acting alone, robbed the PNC Bank on Gull Road in Kalamazoo Township. Dixon again threatened the tellers with a firearm and obtained over $4,000.00.
The Kalamazoo office of the Federal Bureau of Investigation, the Kalamazoo Department of Public Safety, and the Kalamazoo Township Police Department jointly investigated the robberies. The cases were prosecuted by Assistant U.S. Attorney Ronald M. Stella.
END
St. Petersburg Store Owner and Clerk Indicted for Food Stamp FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Mehdi Babul (58) and Isam Nasser (30) with one count each of conspiracy to defraud the United States and to commit wire fraud, five counts of wire fraud, and five counts of food stamp fraud. If convicted of the conspiracy charge, Babul and Nasser each face a maximum penalty of five years in federal prison. For each wire fraud count, they face a maximum penalty of twenty years in federal prison. And, if convicted, they each face up to one year in federal prison for each of the food stamp fraud charges.
According to the indictment, Babul owned and operated Hungry Baba, LLC, a convenience store located in St. Petersburg. Isam Nasser was a clerk at Hungry Baba. During the time frame of the alleged conspiracy, Hungry Baba was a participant in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. From November 2008 through April 2010, Babul, Nasser, and others allegedly conspired and schemed to cheat SNAP by purchasing SNAP benefits from Hungry Baba customers. They exchange the benefits for cash, minus a fee of approximately 50% of the total amount charged to the individual recipient’s SNAP account. This is an illegal practice known as “discounting” or “cash-back.”
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 United States Secret Service, the United States Department of Agriculture, Office of the Inspector General, the Florida Department of Law Enforcement, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller.
Speaker Bios for Project FutureRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWayne Campbell - Wayne Campbell is the President of Tyler’s Light — a non- profit organization that is helping to bring awareness to communities in Northern West Virginia about the dangers of prescription and illegal drug use. The organization is named after Wayne’s son, Tyler, who fought an addiction to prescription pain medication and died of an accidental heroin overdose in July 2011. Tyler's Light has made great strides in encouraging people who know someone struggling with an addiction to “Speak Up, Save a Life.”
Phil Bauer - Since the prescription drug related death of his youngest son, Mark, in 2004, Phil Bauer has been helping others avoid this tragic fate. He has told his son’s story and spoken about prescription drug abuse nationwide to high school students, law enforcement representatives, health care professionals, community groups, and parent groups.
Philicia Barbieri - Philicia Barbieri is a teacher who lost her job, her home and so much more when prescription medication and heroin took over her life. Philicia tells a compelling story of how her recreational use of drugs and alcohol in high school led her to a life of addiction, crime and desperation. Her story provides a first-hand insight into the dangers of drug addiction and the struggles of withdrawal and recovery.
Sixty Year Old Individual Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico —U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF) arrested a Las Piedras resident Tuesday for production of child pornography.
Andrés Ruiz-Huertas, 60, was arrested after a referral from the Puerto Rico Police Department to HSI led to the execution of a search warrant during which several digital electronic storage devices were seized. A preliminary analysis of the materials seized revealed sexually explicit videos of Ruiz-Huertas engaging in sexual acts with multiple minors.
According to one female minor victim, on February 18, 2013, defendant Andres Ruiz- Huertas, who she previously knew from the Las Piedras area, picked her up at the Fajardo Ferry port to drive her to her mother’s residence at Las Piedras, PR. On the way to her mother’s residence, Ruiz-Huertas told the victim that he had previously engaged in sexual intercourse with three of her female minor friends. Ruiz-Huertas also told her that he had also engaged in sexual acts with two other minors whom he identified. He then proceeded to show the victim sexually explicit images from a phone described by the minor as a black iPhone with a black cover that he utilized as his personal phone.
The defendant then took the victim to his office, showed her sexually explicit images on his computer and purportedly sexually assaulted her. Once he dropped her off at her residence, she told her mother what had happened and together they filed a formal complaint with the Puerto Rico Police Department.
Ruiz-Huertas was transferred to the Metropolitan Detention Center in Guaynabo awaiting the outcome of his case. If convicted, he faces a mandatory minimum sentence of 15 years incarceration and a possible maximum statutory sentence of 30 years incarceration.
“The U.S. Department of Justice, through its Project Safe Childhood, will continue prosecuting sexual predators of minors,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodriguez. “The US Attorney’s Office, along with law enforcement agencies in Puerto Rico, will continue to track down these criminals, arrest them and bring them to justice,” said US Attorney Rosa Emilia Rodríguez-Vélez.
“All children have an absolute right to grow up free from the fear of sexual exploitation,” said Angel Melendez, special agent in charge of HSI San Juan. “HSI relentlessly pursues predators who sexually abuse children, whether that abuse is physical in nature or if it's accomplished by exploiting their images. HSI will not tolerate such despicable crimes. Our agents will continue to police cyberspace and target those who exploit the most vulnerable segment of our society -- our children.”
The case is being prosecuted by Assistant U.S. Attorney Marshal D. Morgan.
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
Sentences for February 20, 2013Read the Press Release
Jason M. Johnson, 25, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 20, 2013, for being a felon in possession of a firearm. Johnson was arrested in Casper, Wyoming. He received 62 months of imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Selma Man Sentenced on Federal Drug ChargesRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday in Wilmington, North Carolina, SHOUNTARIO DEVON WALKER, 30, of Selma, North Carolina, was sentenced by the Honorable James C. Fox to 180 months’ imprisonment for his role in a drug trafficking operation.
On September 5, 2012, a Federal Grand Jury returned a Criminal Indictment that charged WALKER with one count of possessing with the intent to distribute 500 grams or more of cocaine and 6 counts of distributing cocaine. On November 5, 2012, WALKER pleaded guilty to all counts.
The evidence in the case revealed that WALKER was a drug dealer in the Smithfield, North Carolina, area and that from April 24, 2012, through June 5, 2012, WALKER possessed and sold more than 500 grams of cocaine to an individual working with law enforcement. Based on the extent of his drug trafficking and prior record, WALKER was sentenced to 180 months’ imprisonment.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Sanjoy Bhattacharya Pleads Guilty to False Statements to an Agency of the United StatesRead the Press Release
SANJOY BHATTACHARYA, age 56, a resident of New Orleans, Louisiana, pled guilty in federal court today before U.S. District Judge Carl J. Barbier to one count of making false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente.
According to court documents on or about September 21, 2007, BHATTACHARYA applied for funds from the Louisiana Road Home Program claiming his primary residence at the time of the storm was at 2436-38 Joseph Street in New Orleans, a property he knew was leased to and inhabited by his tenants at time of Hurricane Katrina. As a result of his false statements in his application, BHATTACHARYA fraudulently received approximately $84,423 from the United States Department of Housing and Urban Development (“HUD”), an agency and department of the United States.
Upon sentencing scheduled for May 30, 2013, BHATTACHARYA faces a maximum term of imprisonment of five (5) years, a $250,0000 fine, restitution to the HUD, and three (3) years of supervised release following any term of imprisonment, and a $100 special assessment.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
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Raleigh Man Sentenced for Receipt of Child PornographyRead 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 DOUGLAS STEVENS, 53, to 63 months imprisonment followed by 15 years supervised release and ordered to pay a $2,000 fine.
On September 5, 2012, STEVENS pled guilty to one count of the Receipt of child pornography in violation of Title 18, United States Code, Section 2252(a)(2).
Evidence discovered during the investigation initiated by the Bureau of Immigration and Custom Enforcement’s Cyber Crimes Crimes Center determined that STEVENS had downloaded and received in excess of 4,000 images of prepubescent children engaging in sexually explicit conduct. STEVENS admitted to downloading the images since 2005.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the Bureau of Immigration and Custom Enforcement (ICE), the North Carolina State Bureau of Investigation (SBI), and the Raleigh Police Department (RPD). Assistant United States Attorneys Ethan A. Ontjes prosecuted the case for the government.
RGV DME Owner and Two Others Convicted in $11 Million Health Care Fraud SchemeRead the Press Release
McALLEN, Texas - The owner of a now defunct McAllen area durable medical equipment (DME) business, his wife and another former employee have been convicted for their roles in a conspiracy and scheme to defraud Medicare and Medicaid through fraudulent billings, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today. As part of his plea, RGV DME Owner Marcello Herrera, 40, admitted he sent more than $11.1 Million in false claims to Medicare and Medicaid.
Herrera and his wife Carla Cantu Herrera, 32, along with their former employee Ramon De La Garza, 52, all of Mission, entered a plea of guilty to conspiring to defraud Medicare and Texas Medicaid. Marcelo Herrera and Ramon De La Garza also each pleaded guilty to one count of aggravated identity theft for unlawfully using the identity of a beneficiary to bill Medicare and Medicaid $5,000 for a power wheelchair that was not requested, prescribed, needed or delivered.
From early 2004 through late 2011, Marcello Herrera, who did business as RGV DME in the McAllen area, engaged in and directed a scheme to submit fraudulent claims to Medicare and Texas Medicaid for power wheelchairs, incontinent supplies, hospital beds and mattresses as well as other DME supplies. At various times, Carla Cantu Herrera, De La Garza and Beatriz Ramos, 28, of Edinburg, participated in the conspiracy and aided Marcello Herrera and each other in the submission of fraudulent billings, wire fraud and theft of the identities of beneficiaries and doctors.
Marcelo Herrera admitted in court today that during the time of his fraudulent scheme he submitted or caused the submission of more than $11.1 million in false and fraudulent claims to Medicare and Texas Medicaid for which he illegally received in excess of $6.1 million dollars. Carla Herrera admitted that the fraudulent billings exceeded $9.9 million for which they received illegal payments exceeding $5.5 million during her participation in the conspiracy, while De La Garza admitted that during his participation in the conspiracy the fraudulent billing exceed $9.6 million for which payments exceeded $5 million. All admitted that 85% of their Medicare and Texas Medicaid billings were false and fraudulent. All have also agreed to orders of restitution for the amounts attributable to them individually.
The defendants admitted marketers were used to obtain Medicare and Medicaid identification numbers and other information from beneficiaries which they in turn used to fraudulently bill Medicare and Medicaid for DME that was either never prescribed or prescribed but never delivered. The Herreras also admitted that they or their marketers attempted to obtain referrals of patients or orders for DME from doctors in exchange for gifts.
Conspiracy to commit health care fraud carries a maximum punishment of 10 years in federal prison without parole and a $250,000 fine upon conviction. Aggravated identity theft carries a mandatory two-year additional prison term which must be served by Marcelo Herrera and De La Garza after serving the term of imprisonment imposed for their respective conspiracy convictions.
As part of their pleas of guilty, Marcelo Herrera and Carla Cantu Herrera further agreed to forfeit wheelchairs, scooters and other DME items discovered in his leased storage facility in Alamo, which had been rented by him and ultimately seized by the FBI. In addition, Marcelo Herrera and Carla Cantu Herrera agreed to the entry of money judgments against themselves in the sums of $6,103,953.74 and $5,519,703.37, respectively. The money judgment against De La Garza is $5,059,198.96.
Sentencing of the defendants was scheduled for May 16, 2013. Marcelo Herrera and De La Garza, who have been in custody since June 28, 2012, will remain in custody. Carla Cantu Herrera was permitted to remain on bond pending a hearing on Feb. 27, 2103.
Ramos entered a guilty plea on Oct. 16, 2012, to one count of conspiracy to commit health care fraud and remains free on bond awaiting sentencing, set for April 17, 2013.
The investigation leading to the charges was conducted by the U.S. Department of Health and Human Services-Office of Inspector General, the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney (AUSA) Grady Leupold are prosecuting the case. AUSAs Mary Ellen Smyth and Kristine Rollinson assisted with the asset forfeiture aspects of the case.
Previous Officers of Corporate Entity Formerly Known as Blackwater Plead Guilty & Are SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today GARY JACKSON and WILLIAM WHEELER MATTHEWS, JR. pled guilty before United States District Judge Louise W. Flanagan, to one count each of failing to make and maintain records related to firearms in violation of Title 18, United States Code, Sections 922(m) and 923(g)(1)(A).
Additionally, Judge Flanagan sentenced JACKSON and MATTHEWS to 3 years probation, 4 months house arrest with stipulations, and fined them $5,000.00.
According to the Criminal Information filed on February 14, 2013, JACKSON and MATTHEWS, between 2005 and 2007, were employees of a corporate entity formerly known as Blackwater which was a licensed federal firearms manufacturer and dealer, and whose responsibilities for a certain period of time included direct or indirect supervisory authority over employees whose duties included the making and maintenance of records required by federal law. JACKSON and MATTHEWS failed to make and maintain or cause to be made and maintained adequate records specifying the actual location where firearms were stored on Blackwater’s premises and failed to make and maintain or cause to be made and maintained required records with respect to registration of certain firearms.
The corporate entity formerly known as Blackwater has entered into a Deferred Prosecution Agreement with the government in which it has agreed to extensive ongoing compliance programs and the payment of approximately 7 million dollars in fines.
Assistant United States Attorneys John Bowler and Eric Goulian with the Eastern District of North Carolina, along with Senior Trial Counsel Clifford Rones with the Department of Justice Counter Espionage Section, are handling the prosecution on behalf of the government.
Port Orange Man Sentenced to More Than 7 Years for Receiving Child PornographyRead the Press Release
Orlando, Florida -U.S. District Judge Charlene Edwards Honeywell sentenced Wilfred Reginald Breuer (50, Port Orange) to 7 years and six months in federal prison for receipt and possession of child pornography. The court also ordered Breuer to forfeit the computer he used to receive the child pornography and to serve a ten year term of supervised release following his incarceration. Breuer pleaded guilty on November 28, 2012.
According to court documents, Breuer received child pornography using a Peer to Peer shared directory. Breuer admitted to downloading child pornography images and videos for more than five years. A forensic examination of Breuer’s computer discovered 1,456 images and 343 movies of involving the sexual exploitation of prepubescent children.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Volusia County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
Pittsburgh Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County has been sentenced in federal court to 36 months imprisonment, to be followed by 15 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Matthew Lawrence Gamret, 28.
According to information presented to the court, on Jan. 16, 2012, Gamret possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Gamret.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.