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4 April 2013
Former Bank President and Businessman Sentenced for Conspiracy to Commit Bank FraudRead the Press Release
REGINALD R. HARPER, age 59, a resident of Hammond, Louisiana, and TROY A. FOUQUET, age 45, a resident of Covington, Louisiana, were sentenced today by U.S. District Judge Nannette Jolivette Brown for conspiracy to commit bank fraud, announced U.S. Attorney Dana J. Boente. HARPER was sentenced to 24 months imprisonment, followed by 3 years of supervised release, and a $25,000 fine. FOUQUET was sentenced to 18 months imprisonment, followed by 3 years of supervised release. HARPER and FOUQUET were also ordered to pay restitution to the victim of their crime, First Community Bank, in the amount of $570,955.71 plus interest.
According to court documents, in approximately 2004, HARPER, the former President and Chief Executive Officer of First Community Bank, loaned in excess of $2 million to co-defendant FOUQUET, a local real estate developer, or one of a number of companies owned or controlled by FOUQUET. The purpose of the loans were to purchase parcels of real estate; develop them into subdivisions; and build houses on them, eventually to be bought by prospective home buyers, who would obtain permanent mortgages to finance the purchase. The permanent mortgages would pay off the original loans made by HARPER on behalf of First Community Bank and also include monies to pay FOUQUET.
According to the court documents, however, beginning in 2005, it became difficult for HARPER and FOUQUET to identify qualified home buyers to obtain permanent mortgages. As a result, HARPER and FOUQUET developed various methods to avoid reporting the delinquency on the loans made by HARPER, on behalf of First Community Bank, to FOUQUET and/or his companies. One method used by the defendants, according to court documents, included HARPER making “loans” to the prospective home buyers to make it appear to the permanent mortgage lender they were trying to qualify that the prospective home buyer had more funds on hand than they actually did. Another method employed by the defendants, according to court documents, was to use “nominee” loans or “straw” borrowers to sign up for new First Community Bank loans, authorized by HARPER, the proceeds of which were then utilized to pay off the original loans made to FOUQUET and/or his companies. Finally, another method used by the defendants to avoid reporting the delinquency of these loans, according to court documents, included FOUQUET presenting HARPER with insufficient checks (i.e. a check not backed up with sufficient funds) and HARPER accepting them, crediting the loan payment in First Community Bank’s books and records, despite knowing the check was insufficient.
The fraudulent methods employed by the defendants, as set forth in court documents, led to a false call report (a report of First Community Bank’s financial health), which impacted an application undertaken by the bank to receive funds from the Troubled Asset Relief Program (TARP), a program administered by the United States. Ultimately, according to court documents, when the wrongdoing employed by the defendants was uncovered, First Community Bank suffered severe financial losses.
“Bank fraud harms financial institutions, in this case First Community Bank, and the local economy,” said United States Attorney Boente. “This prosecution provides a lesson that bank fraud has serious consequences, not just for financial institutions, but also for individuals.”
“First Community Bank President Harper and bank customer Fouquet turned to bank fraud to hide past due loans from the bank, its regulators, and the Treasury Department in the bank’s TARP application,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “The million dollar fraud scheme, which involved making sham loans to Fouquet through straw borrowers and a cover-up that lasted for years, caused significant losses to First Community Bank and jeopardized the bank’s financial stability and ability to serve its community. SIGTARP and its law enforcement partners will bring accountability for TARP-related crimes.”
“The FBI was very pleased to join forces with SIGTARP in partnership with the United States Attorney’s Office to root out quite substantial TARP-related fraud in the financial community,” stated Mike Anderson, Special Agent in Charge of the Federal Bureau of Investigation, New Orleans Division.
The case was investigated by agents from the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and agents from the Federal Bureau of Investigation.
The case was prosecuted by Assistant U. S. Attorney Matt Chester.
Federal Jury Convicts Janice D. Rey of Conspiracy, Wire Fraud, Money Laundering and Tax EvasionRead the Press Release
St. Thomas, USVI - After a two-day trial in District Court on St. Thomas, a federal jury found
JANICE D. REY, guilty on a 56 count indictment charging conspiracy, wire fraud, various federal money laundering offenses and tax evasion, announced United States Attorney Ronald W. Sharpe, and
IRS Special Agent in Charge Jose A. Gonzalez. Rey was found guilty of one count of conspiracy, eight counts of wire fraud, 43 counts of money laundering and four counts of tax evasion.According to the evidence presented at trial, Rey and co-conspirator Devon McLean organized
Paramount Group, LLC, and opened a bank account for the partnership in Nevada. Rey opened a store front location in St. Thomas called Rey Financial, which was used by Rey to meet with potential investors. Rey made false material representations and material factual omissions directly to potential investors in order to induce them to invest with Paramount Group, including that investments were safe, that Paramount Group is a part of Halliburton, that investors were investing in “platform investments” and that they would double their money in less than a year.The defendant faces a maximum statutory penalty of 20 years imprisonment and a $500,000 fine, or $3,140,778.33, whichever is greater. The statutory penalty for tax evasion under local law is a fine of not more than $10,000 or imprisonment not more than 5 years, or both. Devon McLean pled guilty on March 5, 2013, to wire fraud conspiracy and is scheduled to be sentenced on June 6, 2013.
The case was investigated by the IRS Criminal Investigation. It was prosecuted by Assistant
U.S. Attorneys Kim L. Chisholm and Everard Potter.Federal Judge Hands Down Conviction in Bankruptcy Fraud Bench TrialRead the Press Release
HOUSTON – Darren David Chaker, 41, of Beverly Hills, Calif., and Las Vegas, Nev., has been found guilty of bankruptcy fraud, United States Attorney Kenneth Magidson announced today.
U.S. District Judge Nancy Atlas found Chaker guilty less than an hour ago of one count of bankruptcy fraud following a five-day bench trial.
The evidence at trial showed that Chaker filed bankruptcy under Chapter 13, in which a debtor is required to propose a plan of reorganization to pay the debtor’s creditors over time. The debtor is required to pay at least as much as the creditors would receive if the debtor’s assets were liquidated on the date of the filing of the bankruptcy petition. The process is designed to achieve an orderly transfer of a debtor’s assets to creditors from available assets truthfully and accurately disclosed and to provide a “fresh start” to honest debtors by allowing them to obtain a discharge or release of debt incurred prior to filing bankruptcy.
According to the evidence, Chaker filed for bankruptcy under Chapter 13 on March 6, 2007. Specifically, on or about March 26, 2007, during a bankruptcy hearing before the Honorable Jeffrey Bohm, while under oath, Chaker falsely and fraudulently represented to the court that the property was never leased out prior to January 2007, when he had in fact previously contracted with a realtor who secured at least two rental contracts with Chaker personally. Chaker failed to disclose income and the existence of past and present residential leases of a residential property facing foreclosure in Houston to his creditor, Saxon Mortgage in the hearing and to the court.
In order for the bankruptcy system to work for all parties, it is imperative for the debtor to be truthful and forthright in all aspects of the bankruptcy process. The bankruptcy system is based on an honor system - the debtor agrees to provide all of the necessary information requested by the trustee and to assist the trustee in collecting all assets of debtors and comply with the court’s orders to obtain the relief desired under the chapter the case was filed.
Chaker is scheduled to be sentenced by Judge Atlas on June 20, 2013, at 1:30 p.m., at which time he faces a maximum sentence of five years imprisonment as well as a $250,000 fine.
This case was investigated by the FBI with assistance from the United States Trustee’s Office and is being prosecuted by Assistant United States Attorneys Carolyn Ferko and Sharad Khandelwal.
Federal Grand Jury Returns Indictment Charging Conspiracy, Murder-for-hire, Causing Death Through the Use of A Firearm and Conspiracy to Use FirearmsRead the Press Release
NEMESSIS BATES, a/k/a “Nemesis Bates,” a/k/a “Nemo,” 34 years of age, and AARON SMITH, a/k/a “Beadie, a/k/a “Beedie,” 27 years of age, both of the New Orleans area, were charged in a four count indictment by a Federal Grand Jury on Thursday, April 4, 2013. The indictment was unsealed today as Bates was taken into custody by federal agents and Smith is already incarcerated in Orleans Parish Prison.
The indictment charges BATES, SMITH and others known and unknown to the grand jury with the November 21, 2010 murder of Christopher Smith.
Count 1 charges BATES with Solicitation to Commit a Crime of Violence, in violation of 18 U.S.C. § 373. If convicted, BATES shall be imprisoned not more than one-half the maximum term of imprisonment or fined not more than one-half of the maximum fine prescribed for the punishment of the crime solicited, or both; or if the crime solicited is punishable by life imprisonment or death, shall be imprisoned for not more than twenty years.
Count 2 charges BATES and SMITH with the Use of Interstate Commerce Facilities in the Commission of Murder-for-Hire, in violation of 18 U.S.C. § 1958(a). If convicted, BATES and SMITH shall be punished by death or life imprisonment, or shall be fined not more than $250,000, or both.
Count 3 charges BATES and SMITH with Causing the Death of Christopher Smith through the Use and Carrying of a Firearm During and in Relation to a Crime of Violence, in violation of 18 U.S.C. § 924(j)(1). If convicted, BATES and SMITH shall be punished by death or by imprisonment for any term of years or for life.
Count 4 charges BATES and SMITH with Conspiracy to Possess Firearms During and in Relation to a Crime of Violence, in violation of 18 U.S.C. § 924(o). If convicted, BATES and SMITH shall be imprisoned for not more than 20 years, fined under Title 18, or both.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This indictment is the culmination of a federal grand jury investigation that was conducted with the assistance of the Federal Bureau of Investigation (F.B.I.), the Jefferson Parish Sheriff’s Office and the United States Attorney’s Office for the Eastern District of Louisiana. This case is being prosecuted by Assistant United States Attorneys Greg Kennedy and Liz Privitera.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on March 27, 2013: Ayad Al-Shaibani, 41, of Fort Wayne, Indiana, is charged in a ten count Indictment with acquiring or possessing supplemental nutrition assistance program benefits in a manner not authorized by regulations on or about December 3, 2008, February 10, 2009, January 25, 2013, January 31, 2013, and February 6, 2013 and redemption of illegally received supplemental nutrition assistance program benefits between on or about April 1, 2008, and continuing through on or about December 31, 2008, between on or about January 1, 2009, and continuing through on or about December 31, 2009, between on or about January 1, 2010, and continuing through on or about December 31, 2010, between on or about January 1, 2011, and continuing through on or about December 31, 2011 and between on or about January 1, 2012, and continuing through on or about December 31, 2012. The Indictment also seeks forfeiture of the proceeds of the offense. These charges were filed as the result of an investigation by the United States Department of Agriculture and the Federal Bureau of Investigation. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Fci Danbury Prisoner to Serve an Additional 21 Months for Assaulting Another InmateRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that PATRICIA A. BROWN, 22, a prisoner at the Federal Correctional Institution (FCI) in Danbury, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to a consecutive 21-month term of imprisonment for assaulting another inmate.
According to court documents and statements made in court, on May 4, 2012, BROWN assaulted another Danbury FCI inmate with two padlocks placed in a white athletic sock. The victim suffered a laceration close to her right ear and required three stitches to close the wound, and also suffered from headaches.
On January 8, 2013, BROWN pleaded guilty to one count of assault with a dangerous weapon.BROWN is currently serving a 30-year sentence after having been convicted of murder in 2009 in the District of Minnesota.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Neeraj N. Patel and Special Assistant United States Attorney Anjna R. Kapoor.
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(203) 821-3722 [email protected]Eight Arrested and Charged on Federal Distribution of Oxycodone ChargesRead the Press Release
Boston - Seven men were arrested in Brockton and Stoughton charged today in federal court on oxycodone distribution charges and aiding and abetting. An eighth man was arrested and charged on state drug charges also.
John Cruz, 33; Kenneth A. Harris, Jr., 30; Isaac J. Marrero a/k/a Saki, 19; Joel Marrero, 32; Reinaldo Marrero, a/k/a Joseph, a/k/a Jo Jo, 33; and Louis Porter, 35, all of Brockton and Jose Martinez More, 34, of New York were arrested and charged today in federal court with oxycodone offenses. Cruz, Isaac Marrero, Joel Marrero, Reinaldo Marrero and Porter were arrested this morning in Brockton and Harris was arrested in Stoughton. The defendants all appeared in U.S. District Court this afternoon.
Martinez More was also arrested in Connecticut as part of this investigation and is being held on related state charges. In addition Rey Marrero, 21, of Brockton was arrested on state narcotics charges.
The indictment which was unsealed this afternoon, charges all of the federal defendants with one count of Conspiracy to Possess with Intent to Distribute and Distribute Oxycodone; and charges John Cruz, Joel Marrero, and Reinaldo Marrero with one count of Distribution of Oxycodone and Aiding and Abetting. The indictment also contains a Drug Asset Forefeiture allegation.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration - Boston Field Division; Chief Emanuel C. Gomes of the Brockton Police Department; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; and Timothy J. Cruz of the Plymouth County District Attorney’s Office made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Linda M. Ricci of Ortiz’s Drug Task Force Unit.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of Assault Resulting in Serious Bodily Injury was sentenced on April 1, 2013 by U.S. District Judge Roberto A. Lange.
Ryan Wright, age 27, was sentenced to 37 months of imprisonment; 18 months of supervised release; and a $100 special assessment to the Victim Assistance Fund.
Wright was indicted by a federal grand jury on November 19, 2012 and pled guilty to Count III of the Indictment on January 10, 2013.
The charge stems from an incident on November 14, 2012 wherein Wright, after an evening of drinking at a home near Eagle Butte, got into an argument with others at the house and left. Upon returning, the defendant pulled in the driveway and hit the victim with his car, running the victim over several times. The victim suffered fractures in his left ankle and pelvis, which required surgery.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Wright was immediately turned over to the custody of the U.S. Marshal Service.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of Assault by Striking, Beating and Wounding was sentenced to 6 months in custody on April 2, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Joseph Marshall, age 34, was indicted for two counts of Assault with a Dangerous Weapon by a federal grand jury on November 15, 2012. He pled guilty on April 2, 2013 to a Superseding Information charging him with one count of Assault by Striking, Beating and Wounding.
The charges relate to Marshall's assault of an Eagle Butte woman in November 2011.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division and Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshal to begin serving his sentence.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of Assault by Striking, Beating and Wounding was sentenced to 6 months in custody on April 2, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Joseph Marshall, age 34, was indicted for two counts of Assault with a Dangerous Weapon by a federal grand jury on November 15, 2012. He pled guilty on April 2, 2013 to a Superseding Information charging him with one count of Assault by Striking, Beating and Wounding.
The charges relate to Marshall's assault of an Eagle Butte woman in November 2011.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division and Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshal to begin serving his sentence.
District Man Sentenced to 7 ½ Years in PrisonRead the Press Release
For Federal Drug Trafficking Offenses; Cocaine and Other Drugs Seized in Search of His Apartment; Drugs Had a Street Value of About $100,000WASHINGTON – Eddie P. Burroughs, 24, was sentenced today to 7 ½ years in prison on three federal drug charges stemming from a search by law enforcement that led to the seizure of crack cocaine, powder cocaine, and marijuana from his Southeast Washington apartment, announced U.S. Attorney Ronald C. Machen Jr.
Burroughs was found guilty in December 2012 by a jury in the U.S. District Court for the District of Columbia of possession with intent to distribute large amounts of crack cocaine, powder cocaine and marijuana. He was sentenced by the Honorable James E. Boasberg. Upon completion of his prison term, Burroughs will be placed on three years of supervised release.
According to the government’s evidence at trial, the Metropolitan Police Department (MPD) executed a search warrant on Dec. 6, 2011 at the defendant’s apartment in the 3400 block of 13th Street SE and found two kilograms of crack cocaine, over 100 grams of powder cocaine, nine pounds of marijuana, almost $10,000 in U.S. currency, and equipment used in the production of crack cocaine. The narcotics had a street value of approximately $100,000 and were already packaged for wholesale redistribution.
In announcing the sentence, U.S. Attorney Machen commended the work of the MPD detectives, officers, and mobile crime technicians who investigated the case. He also expressed appreciation to the forensic chemist and fingerprint examiner who worked on the case. Finally, he thanked those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Rommel Pachoca; Intelligence Analyst John Marsh; Assistant U.S. Attorney Vincent Caputy, who assisted with the investigation, and Assistant U.S. Attorneys Magdalena Acevedo and George Eliopoulos, who investigated and tried the case.
13-116District Man Accused of Embezzling $1 MillionRead the Press Release
From Indonesian Airline and Committing Tax and Mortgage Fraud
-Defendant Indicted on Seven Counts, Including Bank Fraud-WASHINGTON - Jon C. Cooper, 64, of Washington, D.C., was indicted today by a federal grand jury on charges that he embezzled $1 million from an airline company headquartered in Indonesia, filed a false tax return concealing the embezzled income, and committed mortgage fraud.
The indictment 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 (IRS-CI).
Cooper initially was indicted in September 2012 by a grand jury in the U.S. District Court for the District of Columbia on charges of conspiracy, first-degree fraud, wire fraud, and money laundering. He has pled not guilty to those charges. Today a grand jury returned a superseding indictment with those charges as well as additional allegations, including new counts of bank fraud, making a false statement on a loan application, and aiding or assisting the filing of a false tax return. The superseding indictment also reincorporates a forfeiture allegation seeking all proceeds obtained through the wire fraud and money laundering scheme.
Among other things, today’s indictment accuses Cooper of using various false pretenses, such as forged letters, to induce the Indonesian airline to make a $1 million security deposit to lease aircraft. As alleged in the indictment, Cooper moved the security deposit into his personal account and spent the funds on various personal expenses, such as credit card and loan debt. The indictment also charges that Cooper failed to report the embezzled funds on his tax return.
If convicted, Cooper faces a maximum sentence of 30 years in prison and financial penalties for bank fraud, as well as additional time and penalties for other counts.
Cooper is to be arraigned on the charges on April 11, 2013.
According to the superseding indictment, in or about December 2006, Cooper and a co-conspirator offered to lease two aircraft to an Indonesian airline company, although Cooper’s company owned no such aircraft. Instead, Cooper induced the Indonesian airline to agree to the deal - and pay a $1 million security deposit - by using a forged letter from an attorney whom Cooper claimed would hold the deposit. Similarly, Cooper allegedly used a forged letter purporting to represent that Cooper’s company had an agreement to buy the aircraft it would lease to the Indonesian airline. As the superseding indictment charges, based on those and other false representations, the Indonesian airline made the $1 million security deposit. But the very day the security deposit was received, Cooper moved it to his personal account. Cooper then spent it on personal expenses, such as his credit card debt and personal loans.
Also, as alleged in today’s indictment, Cooper filed a false tax return for 2006, in which he failed to report as income the funds he had embezzled.
In addition, as alleged in the superseding indictment, Cooper used part of the stolen money to pay a home mortgage loan he obtained by fraud, and which Cooper’s income otherwise could not support. Specifically, the indictment charges, in or about May 2006, Cooper falsely over-represented his income to obtain a $780,000 cash-out mortgage loan. As the indictment alleges, by later that year (just before the embezzlement), Cooper was receiving notices of default on this and other debt.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s Washington Field Office and the Washington Field Office of IRS-CI. It is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
13-117Developers Sentenced for Role in Failed $39 Million Commercial/Residential Real Estate Project in AustinRead the Press Release
DALLAS — Late yesterday, two developers who admitted conspiring to defraud U.S. Bank and Texas Capital Bank in connection with a $39 million construction loan for a commercial/residential development in Austin, Texas, were sentenced. U.S. District Judge Barbara M. G. Lynn sentenced Anirdh Sarwal, 39, to 57 months in federal prison and Fred Alden Yeo, 51, to 42 months in federal prison. In addition, Judge Lynn ordered that the two men pay $13,461,604 in restitution, jointly and severally with each other. Sarwal and Yeo, both residents of Austin, must surrender to the Bureau of Prisons by 2:00 p.m. on June 4, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each defendant pleaded guilty to one count of conspiracy to commit bank fraud, admitting that they conspired with each other from August/September 2008 until at least June 2010. Sarwal, the principal of East Avenue Office Holdings, LP, based in Austin, and Yeo, co-guarantor on the loan, entered into negotiations with the two banks to obtain $39 million in funding for the development of an eight-story office building located at 3300 North Interstate Highway 35 in Austin.
To obtain the $39 million loan, they knowingly submitted a fabricated bank statement to the banks that purported to show that Sarwal had more than $7 million in an investment account at Wells Fargo Bank. They submitted this statement knowing that both financial institutions wanted assurance that Sarwal and Yeo, as co-guarantors, collectively had at least $5 million in liquid assets at their disposal. In reality, however, no such Wells Fargo account existed, and the bank statement was a forgery. Sarwal and Yeo admitted that they submitted the false bank statement with the specific intent to defraud the banks.
Based in part on that fraudulent bank statement, U.S. Bank and Texas Capital Bank approved the $39 million construction loan and closed on the loan on December 30, 2008. Between January 2009 and June 2010, when the banks foreclosed on the loan, Sarwal and Yeo made more than $33 million in draws on that construction loan.
Evidence at sentencing also established that the fraud was more encompassing than the false bank statement on behalf of Sarwal. Among other things, in order to secure the loan, Sarwal and Yeo also falsely represented to the financial institutions that 53% of the office space had been leased when, in fact, only 12% had actually been leased to legitimate tenants. The fraud continued throughout the project, with both Sarwal and Yeo submitting fake invoices to justify large draws from the construction loan and by taking steps to obtain fake cell phone numbers for the nonexistent tenants.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov/.
The case was investigated by the United States Secret Service. Assistant U.S. Attorneys Nick Bunch and Steve Fahey were in charge of the prosecution.
Davenport Man Sentenced to 61 Months in Prison for Conspiracy to Distribute Marijuana and CocaineRead the Press Release
DAVENPORT, IA – On April 4, 2013, Gerardo Salinas, Jr., age 31, of Davenport, Iowa, was sentenced to 61 months imprisonment after pleading guilty to conspiracy to distribute 1,000 kilograms or more of marijuana and five kilograms or more of cocaine, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Salinas to five years supervised release following imprisonment.
Beginning in approximately 2005, and continuing until 2010, Salinas conspired with others to distribute large amounts of marijuana and cocaine. Salinas received and distributed hundreds of pounds of marijuana in connection with co-defendant Aaron Deshawn Watson. On February 8, 2013, Watson was sentenced to 240 months imprisonment.
This case was investigated by the Drug Enforcement Administration, and the Davenport, Iowa, Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Cudi, N.M., Man Sentenced to Prison for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Jervis Wilson, 20, an enrolled member of the Navajo Nation who resides in Cudi, N.M., was sentenced this morning to 37 months in prison followed by three years of supervised release for his involuntary manslaughter conviction.
In Nov. 2012, Wilson pled guilty to killing Herman Willeto, a 52-year-old Navajo man, while driving under the influence of alcohol on March 2, 2012, on U.S. Highway 64 outside of Shiprock, N.M., on the Navajo Indian Reservation.
According to court records, on March 2, 2012, Wilson drank alcohol and then drove a vehicle recklessly. As he attempted to pass other vehicles at a greater rate of speed than the flow of traffic, Wilson struck a Jeep, causing property damage but not injuring the Jeep’s two occupants. Wilson continued driving at a high rate of speed and side-swiped a Dodge sedan, causing moderate damage to the sedan and minor injuries to the driver. As Wilson continued to drive, his vehicle struck a Ford truck that was towing an excavator on a flatbed trailer. Mr. Willeto, the driver of the truck, was killed on impact. Wilson’s blood alcohol level was .23 when his blood was drawn within three hours of the collision.
This case was investigated by the FBI’s Safe Trails Task Force and the Shiprock Division of the Navajo Nation Department of Public Safety, and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Cleveland Man Found Guilty of Being A Felon in Possession of A Firearm and AmmunitionRead the Press Release
Raymone “Ramone” Clements was found guilty following a jury trial of one count each of being a felon in possession of a firearm and being a felon in possession of ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
U.S. District Judge Donald Nugent scheduled sentencing for June 13.
Clements, 42, of Cleveland, was found to have one round of .357-caliber ammunition and two rounds of .22-caliber ammunition on Dec. 20, 2012 and a Rossi, Model Garrucha, .22-caliber Derringer, serial number 307228, on Jan. 17, 2013. Clements had this ammunition and firearm despite previous convictions in the Cuyahoga County Court of Common Pleas for rape (2006), drug trafficking (2003) and aggravated robbery (1991).
“This case demonstrates why rapists and other felons are forbidden from having firearms,” Dettelbach said. “Whether is a person using a gun to commit a violent crime, a felon illegally obtaining ammunition or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.
“We will continue to work side by side with our federal, state, county and local law enforcement partners to make sure those individuals who illegally possess firearms and/or ammunition are held accountable for their actions,” said ATF Special Agent in Charge Robin Shoemaker, Columbus Field Division.
Witnesses testified during the trial that Clements shot a dog in a public park in Cleveland Heights. That incident led investigators to search his residences, where they found the ammunition and firearm, according to court testimony.
This case is being prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and Margaret Sweeney following an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and Cleveland Heights Police Department.
Children's Minister Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Derek M. Schwartzrock, 34, a children’s minister in an Albuquerque-area church, was arrested yesterday on federal child pornography charges by Homeland Security Investigations (HSI) and the New Mexico State Police (NMSP). Schwartzrock is scheduled to make his initial appearance in federal court tomorrow morning on a criminal complaint alleging that Schwartzrock received and possessed visual depictions of minors engaged in sexually explicit conduct. He remains in federal custody pending a detention hearing which has yet to be scheduled.
According to the criminal complaint, the Albuquerque office of HSI began investigating Schwartzrock in mid-March 2013 after the Philadelphia office of HSI determined that an individual in Albuquerque was accessing a website containing sexually explicit images of children. Investigation subsequently revealed that Schwartzrock was the subscriber for the IP Address that allegedly was used to download sexually explicit images of children. Yesterday, HSI and the NMSP arrested Schwartzrock and executed a search warrant at his residence seizing a computer, computer-related media and other electronic devices. A preliminary examination of the electronic devices seized during the execution of the search warrant revealed over 12000 images that appeared to be consistent with child pornography.
If convicted of the offenses alleged in the criminal complaint, Schwartzrock faces a sentence of not less than five years or more than 40 years in prison. He would also be required to register as a sex offender.
The case was investigated by HSI, the NMSP and the New Mexico Regional Forensic Lab, and is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees. It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Charlton Man Sentenced for Negligent Discharge of Oil into the EnvironmentRead the Press Release
Boston - The owner of Charlton Welding and Repair, Inc. was sentenced today for violating the federal Clean Water Act.
Larry McKissick, II, 43, of Charlton, was sentenced today by Magistrate Judge Jennifer C. Boal to 12 months of probation, including four months of home detention and ordered to pay a fine of $75,000. In addition, McKissick must submit a written public apology within two weeks of sentencing, at his own expense, to the Boston Globe Metro West Edition, or Worcester Region Edition or Worcester Telegram and Gazette. He must also complete a Spill Prevention and Countermeasures training course. Restitution was not part of McKissick’s plea agreement, as authorities are pursing it through a separate process under the Clean Water Act.
McKissick is President of Charlton Welding, which operates a trucking and plowing company on Griffin Road in Charlton. In October 2012 McKissick plead guilty to negligently discharging a harmful quantity of oil, namely diesel fuel, into or upon the navigable waters of the United States. On June 11, 2010, McKissick washed diesel fuel off of the parking lot at his business property after realizing that the fuel had been released from a storage tanker parked on the property. It is estimated that 3,200 gallons of diesel fuel were released from the storage tank and washed into a tributary stream connected to the Quinebaug River. The fuel spill caused impacts to the wetlands and residents of a nearby housing complex, and triggered a six-month cleanup response by the Massachusetts Department of Environmental Protection (MassDEP) costing more than $680,000.
United States Attorney Carmen Ortiz said, “The federal Clean Water Act is one of the most important tools we have in our ongoing effort to protect our natural resources. Mr. McKissick’s negligence impacted important wetlands and tributary stream, and that could have been much worse, if not for the outstanding clean up efforts of the Massachusetts Department of Environmental Protection. I want to thank the EPA and Mass DEP for their ongoing commitment and partnership in our mutual mission to preserve our precious wetlands and waterways.”
“Mr. McKissick’s efforts to conceal the spill resulted in its spread to a larger area,” said MassDEP Commissioner Kenneth Kimmell. “Washing the spill into the nearby wetland created noxious fumes that endangered nearby residents and greatly complicated the immediate clean up actions performed by MassDEP. This case shows the legal consequences that follow from trying to evade responsibility for spills to the environment.”
“Today’s sentencing underscores EPA’s commitment to ensure that fuel is stored safely and in a manner that will protect the environment. Mr. McKissick chose to ignore all responsibility and instead flush thousands of gallons of spilled diesel into a brook,” said John Gauthier, Acting Special Agent in Charge of EPA-CID.
United States Attorney Ortiz, Acting SAC Gauthier and Commissioner Kimmell made the announcement today. The Mass DEP oversaw extensive cleanup efforts within the wetlands and their Environmental Strike Force assisted in this investigation as well. The case was prosecuted by Assistant U.S. Attorney Anton P. Giedt of Ortiz’s office.Carl Junction Man Sentenced to 12 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., man was sentenced in federal court today for receiving, distributing and possessing child pornography.
Jason Hill, 27, of Carl Junction, was sentenced by U.S. District Judge Greg Kays to 12 years in federal prison without parole. The court also ordered Hill to pay restitution to one of his victims, who is depicted in the images of child pornography. If paid within 30 days, Hill must pay $3,000 in restitution, but if paid after 30 days, he must pay $5,000 in restitution.
On Sept. 27, 2012, Hill was convicted following a three-day trial of one count of receiving and distributing child pornography and one count of possessing child pornography.
An officer with the Southwest Missouri Cybercrimes Task Force, while conducting an investigation, discovered that Hill was receiving and distributing child pornography over the Internet through peer-to-peer, file-sharing software on his computer. The task force officer accessed the shared folder on Hill’s computer and obtained 773 files. Approximately 551 of the file titles indicated that they were pornographic. Approximately 266 of the file titles pertained to child pornography. Of the 266 file titles, 25 files had been identified in previous investigations as containing known child pornography. The task force officer downloaded 10 of these 25 images of child pornography from Hill’s computer.
Officers executed a federal search warrant and seized four computers and various computer media from Hill’s residence. Investigators found three videos that portrayed the sexual abuse of children under the age of 14 and four additional images of child pornography (besides those images that were downloaded by the task force officer). There was forensic evidence that the computers had once contained additional images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert and Special Assistant U.S. Attorney Ami Miller. It was investigated by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Capitol Heights Felon Exiled to over 10 Years in Prison for Illegal Possession of FirearmsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Jamal Antwon Holder, age 23, of Capitol Heights, Maryland, today to 125 months in prison, followed by three years of supervised release, on three counts of being a felon in possession of a gun.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Holder's plea agreement, on November 15, 2011, Holder sold a 12 gauge sawed-off shotgun to a law enforcement source. On November 16, 2011, Holder sold a bolt action rifle and a 30/30 lever action rifle to the law enforcement source. Finally, on November 17, 2011, Holder sold a .38 caliber revolver to the law enforcement source. All of these transactions took place at an apartment complex in Capitol Heights. Each sale was observed by law enforcement officers and was video and/or audio recorded. After the completion of each transaction, the source met with law enforcement officers and turned over the firearms purchased from Holder.
Holder’s previous felony assault convictions prohibited him from possessing firearms.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who prosecuted the case.
CHARGING DOCUMENT: U.S. V. Eric Stevenson, Et Al. ComplaintRead the Press Release
U.S. v. Eric Stevenson, et al Complaint
Bowling Green Man Charged with Illegally Taking VA FundsRead the Press Release
An indictment was filed charging Mickael C. Jones, age 36, of Bowling Green, Ohio, with taking approximately $14,000 from the Department of Veterans Affairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Mickael Jones’ aunt died in May 2009. She had been receiving monthly VA surviving-spouse pension benefits. Not knowing of her death, the VA continued to make monthly direct deposits into her bank account, and Jones withdrew the money for his for his own use, according to the indictment.
From May 2009 to December 2010, Jones converted to his own approximately $14,000 of VA benefits, to which he was not entitled, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Veterans Affairs, Office of Inspector General. The case is being handled by Assistant United States Attorney Thomas A. Karol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Baltimore Drug Dealer and 9 Time Convicted Felon Exiled to 15 Years in Prison for Illegal Possession of Guns and AmmunitionRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Derrick Woodlon, age 34, of Baltimore, today to 15 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition. Judge Hollander found that Woodlon was an armed career criminal based on nine previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Woodlon’s plea agreement, Baltimore Police officers observed Woodlon operating a drug shop in the 1000 block of Boyd Street in Baltimore. On August 18, 2011, an undercover Baltimore Police officer purchased two gel caps of heroin using a pre-marked $20 bill. Officers subsequently arrested Woodlon and recovered the marked bill. On November 18, 2011, Baltimore Police officers observed Woodlon supplying the Boyd Street drug shop from a location on North Woodington Avenue, in Baltimore. Officers executed a search warrant at the North Woodington home later that day and recovered three loaded .357 caliber handguns, one of which had been reported stolen a year earlier. Officers also recovered 26 grams of crack cocaine, 44 grams of heroin, drug paraphernalia and approximately $26,000 in cash.
As a result of Woodlon’s previous convictions he was prohibited from possessing a gun or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James T. Wallner, who prosecuted the case.
Babin SentencedRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced yesterday that U.S. District Court Chief Judge Brian A. Jackson sentenced Tara S. Babin, age 38, of Denham Springs, Louisiana, to a term of imprisonment of 17 months and 2 years supervised release after imprisonment. Babin had previously pled guilty to one count of wire fraud.
Between March 2009 and April 2011, Babin systematically embezzled funds belonging to her employer, a local doctor. As the office manager, Babin had access to her employer’s merchant account and electronic payment machine. To execute her wire fraud scheme, Babin used the office electronic payment machine to transmit credit/refund requests to her employer’s electronic payment contractor. Once the electronic payment contractor received the fraudulent credit/refund requests, it would wire funds from her employer’s merchant account into bank and credit card accounts belonging to Babin. Through this scheme, Babin unlawfully obtained $113,718.92 in funds belonging to her employer.
This matter was investigated by the United States Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. The matter was prosecuted by Assistant United States Attorney Chris Dippel.
Avonmore Man Admits Producing Sexually Explicit Videos and Images of A MinorRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Timothy Eugene Shearer, 54, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from in or around February of 2009 to on or about September of 2009, and in or around October of 2006, Shearer persuaded, induced, and coerced a minor to engage in sexually explicit conduct, for the purpose of producing visual depictions of that conduct, namely a digital video and other images. The indictment also charged that Shearer possessed visual depictions, namely, digital image files and a video file, depicting minors engaging in sexually explicit conduct.
Judge Hornak scheduled sentencing for Aug. 7, 2013, at 1:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Shearer.
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.
Anthony Penn Pleads Guilty to Conspiring to Defrauding the United StatesRead the Press Release
ANTHONY PENN, age 51, a resident of New Orleans, pled guilty yesterday before U.S. District Judge Stanwood R. Duval, Jr., to a one-count indictment for conspiring to defraud the United States by accepting kickback payments in connection with a disaster clean up contract administered by the U.S. Army Corps of Engineers, announced U.S Attorney Dana Boente.
According to court documents, the U.S. Army Corps of Engineers hired a national firm called Phillips and Jordan to manage the removal of storm debris from the City of New Orleans after Hurricane Katrina devastated the metro area. After they were awarded the contract, Phillips and Jordan hired Company A, a local solid waste management company to assist with the debris removal project. After securing the contract, Company A hired PENN to manage the debris removal project for them. After some time on the job, PENN approached the owner of Company A and asked if he would consider hiring KCJ Enterprises as a sub-tier subcontractor. The owner of Company A accepted the recommendation and hired KCJ Enterprises to work on the project. Sometime thereafter, PENN asked Kenneth Johnson, Sr., owner of KCJ Enterprises, to provide him with a cut of the payments that KCJ Enterprises was receiving from Company A as a reward for steering the contract to him. Johnson agreed to the plan and began wiring funds to PENN’s bank account. In total, PENN received $222,261.55 in kickback payments from Johnson during the scheme.
PENN faces a maximum term of imprisonment of 5 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment. Sentencing is scheduled for July 10, 2013.
Johnson is currently awaiting trial scheduled for July 29, 2013. If convicted, Johnson faces a maximum term of 5 years imprisonment, a fine of $250,000 and 3 years of supervised release following any term of imprisonment.
The case was investigated by the Federal Bureau of Investigations and the United States Department of Defense. The case is being prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
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Another Treasure Valley Head Shop Owner Pleads GuiltyRead the Press Release
BOISE – Troy A. Rawlings, 33, of Meridian, Idaho, pleaded guilty today in federal court to count one of the indictment charging him with conspiracy to sell, offer for sale, and transport drug paraphernalia, U.S. Attorney Wendy J. Olson announced. Rawlings and his co-defendant, Jason Guerrero, 34, of Boise, Idaho, were indicted by a federal grand jury on May 9, 2012.
Rawlings, the co-owner and operator of RG Distributing, Inc., doing business as Smoke Shack and Smoke Shack 2, admitted in court today that he conspired to sell paraphernalia under the guise of “tobacco products,” or with claims of other “legitimate” uses. According to the indictment, Rawlings referred to the drug paraphernalia as “smoking accessories,” to be used only to smoke tobacco. Virtually all of the smoking devices sold under this guise were commonly used to ingest marijuana, hashish, and/or other illegal drugs, not tobacco.
The charge is punishable by up to three years in prison, a maximum fine of $250,000, and up to one year of supervised release. The government is seeking forfeiture of assets derived from or used in the offense.
Rawlings is scheduled to be sentenced on June 17, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
On February 26, 2013, Guerrero pleaded guilty to a superseding information charging him with one count of offering drug paraphernalia for sale and one count of engaging in monetary transactions involving criminally derived property. He is scheduled to be sentenced on June 4. He faces up to three years in prison, a maximum fine of $250,000, and up to one year of supervised release on the drug paraphernalia charge and up to ten years in prison, a maximum 2 fine of $250,000, and not more than three years of supervised release on the money laundering charge.
Rawlings and Guerrero are among the seventeen individuals charged last year as part of Operation Not for Human Consumption, which targeted illegal sales of drug paraphernalia and “spice” at 13Treasure Valley businesses. According to search warrant affidavits, nine of the 13 businesses were openly selling “spice,” a substance that tested positive for AM-2201. The DEA has determined that AM-2201 is a controlled substance analogue. “Spice,” a synthetic form of cannabis, which is a psychoactive herbal and chemical product that, when consumed, mimics the effects of cannabis. In the spring of 2011, the Idaho Legislature criminalized the sale of “spice” under state law. In March of 2011, the Drug Enforcement Administration placed five synthetic cannabinoids into Schedule I of the Controlled Substances Act. It is against federal law to sell or offer for sale any paraphernalia that is primarily intended or designed for drug use, regardless of whether the seller advises their customers that the paraphernalia is for tobacco use only. The businesses are commonly referred to as “head shops.”
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Boise Police Department, Ada County Sheriff's Office, Canyon County Sheriff's Office, Nampa Police Department, Meridian Police Department, and the Canyon County Prosecutor's Office. The U.S. Marshals Service and Idaho State Police provided assistance.
Another Defendant Sentenced in E. Idaho Drug Trafficking ConspiracyRead the Press Release
POCATELLO – Rafael Ignacio Guerrero, 37, a Mexican national, was sentenced today in United States District Court to 42 months in prison for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. He will face deportation after serving his sentence. Chief U.S. District Judge B. Lynn Winmill also ordered Guerrero to pay $100 special assessment.
According to plea agreements filed in the case, from June 2005 through January 2012, a group of individuals centered around Samuel Nevarez-Ayon, a Mexican national, entered into a conspiracy to possess and distribute in excess of 50 grams of actual methamphetamine in the Idaho Falls area. In furtherance of the conspiracy, Nevarez-Ayon admitted that he distributed methamphetamine to other individuals on at least three occasions during this same time period. In June of 2011, Guerrero delivered two pounds of methamphetamine to Nevarez-Ayon for subsequent distribution. In furtherance of the conspiracy, Nevarez-Ayon directed activities of various co-defendants. In addition to distributing methamphetamine, several defendant laundered proceeds from the sale of the methamphetamine, and made false loan application to local banks to further the laundering of money. During the course of the conspiracy, the defendants obtained in excess of $500,000 from the distribution of methamphetamine.
Nevarez-Ayon and seven co-defendants have pleaded guilty and are awaiting sentencing. One defendant is a fugitive.
Three co-defendants were sentenced in March 2013, for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine, including Antonio Javier Mendoza, of 2 Shelley, Idaho, to 96 months in prison; Fabiola Esmerelda Marin Castro, to 36 months; and Daniel Quiroz, a Mexican national, to 78 months . Abel Garcia, of Idaho Falls, Idaho, was sentenced in March to one month in prison for making a false statement to a bank.
The charges are the result of a nine-month investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), which included the Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Alleged Bank Robber, Who Was Apprehended by A Nearby Resident as He Fled the Scene, Is Ordered DetainedRead the Press Release
FORT WORTH, Texas — Leslie Nashon Slaton, 33, who has been charged in a federal criminal complaint with robbing the Commercial Bank of Texas last week in Bedford, Texas, appeared in federal court in Fort Worth today and was ordered detained by U.S. Magistrate Judge Jeffrey L. Cureton. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed in the case, on the afternoon of March 28, 2013, a man, later identified as Slaton, entered the Commercial Bank of Texas, located at 1716 Forest Ridge Drive in Bedford, wearing a dark colored hoodie, a bandanna over his face, gloves and brandishing a handgun. He ordered customers and several employees to the center of the lobby. He approached one teller and ordered her to give him all the money in her drawer, which she did. He then demanded money from a second teller. When that teller advised that she had no money, Slaton fled the bank, running into an adjacent neighborhood where he had parked his getaway car.
A neighbor saw Slaton running from the bank and deduced that he had robbed the bank. As Slaton drove away, that neighbor ran after the car to obtain the license number. At the next intersection, however, Slaton ran a stop sign and collided with another vehicle. The neighbor then ran up to the wreck, pulled Slaton from the vehicle and held him until police arrived. An officer with the Euless Police Department, who drove by the scene, stopped and handcuffed Slaton. Officers with the Beford Police Department then arrived and took Slaton into custody. The money stolen from the bank, as well as his disguise and a pellet gun that resembled a real firearm, were recovered from Slaton’s vehicle.
A federal criminal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. If convicted of the offense of bank robbery however, Slaton faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
The case is being investigated by the FBI and the Bedford Police Department.
Assistant U.S. Attorney Chris Wolfe is in charge of the prosecution.
3 April 2013
West New York, N.J., Man Sentenced to 210 Months in Prison for Armed Bank RobberyRead the Press Release
TRENTON, N.J. – A West New York, N.J., man was sentenced today to 210 months in prison for robbing a TD Bank branch in Weehawken, N.J., on May 31, 2011, U.S. Attorney Paul J. Fishman announced.
Maximo Castro, a/k/a “Carl Worthington,” 32, was convicted by a federal jury on Dec. 22, 2011, of both counts of the Indictment on which he was tried: armed bank robbery and possession of a firearm in furtherance of the bank robbery. He was sentenced today by U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Castro entered the TD Bank branch wearing a hat and sunglasses and carrying a gold-plated handgun. He then announced that he was robbing the bank, threw a black bag at the tellers and demanded that they hand over the bank’s money. Castro also stole money from bank customers and ordered everyone in the bank to the ground before leaving the bank.
In addition to the prison term, Judge Wolfson sentenced Castro to five years of supervised release and ordered him to pay restitution of $4,843.
U.S. Attorney Fishman credited special agents and task force officers of the FBI’s Newark Violent Crime Squad, under the direction of Acting Special Agent in Charge David Velazquez, as well as officers from the Weehawken Township Police Department, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the Criminal Division in Trenton and Senior Litigation Counsel Serina Vash of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Jerome A. Ballarotto Esq., TrentonWalbridge Man Charged with Falsely Labeling Ivory ShipmentRead the Press Release
A criminal information was filed charging a Walbridge, Ohio, man with falsely labeling a package containing wildlife items, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
Mark St. John, age 53, falsely labeled an elephant ivory shipment destined for an overseas buyer on June 1, 2011, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United State Fish & Wildlife Service, Delaware, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Victor Mendez-guinto Pleads Guilty to Unlawful Transfer of Identification DocumentsRead the Press Release
VICTOR MENDEZ-GUINTO, age 32, a citizen of Mexico, pleaded guilty today before U.S. District Judge Mary Ann Vial Lemmon to seven counts of unlawful transfer of identification documents announced U. S. Attorney Dana Boente.
According to court documents, beginning on or about August 14, 2012 and continuing through October 4, 2012, MENDEZ-GUINTO knowingly transferred numerous counterfeit and stolen identification documents, including Social Security cards, birth certificates, and state identification cards, knowing that such documents were produced without lawful authority.
MENDEZ-GUINTO will be sentenced on July 11, 2013, and faces a maximum term of imprisonment of 15 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment as to each count of the indictment.
The case was investigated by special agents of the U.S. Department of Homeland Security/Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Gregory M. Kennedy.
U.S. Attorney Alicia A.G. Limtiaco Receives 2013 Visionary Voice AwardRead the Press Release
Alicia A.G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands, was awarded the 2013 Visionary Voice Award from the National Sexual Violence Resource Center (NSVRC). The Visionary Voice Award highlights individuals throughout the country who are doing outstanding work in the field of anti-sexual violence within their communities and whose prevention work is making an impact in their communities. This year, the National award honors 26 leaders in sexual violence prevention.
The Guam Coalition Against Sexual Assault and Family Violence (GCASAFV) nominated U.S. Attorney Limtiaco for the 2013 Visionary Voice Award and invited her to the "Proclamation Signing and Remembrance Ceremony" commemorating Sexual Assault Awareness Month, National Child Abuse Prevention and Awareness Month, and Crime Victims' Rights Week. The Proclamation Signing by the Honorable Ray Tenorio, Acting Governor of Guam, and Remembrance Candle Lighting and Reflection Ceremony honoring all victims of violence and led by the faith based community, were held at the Latte ofFreedom on April1, 2013. GCASAFV Executive Director Cynthia Cabot expressed thanks to U.S. Attorney Limtiaco for building the foundation and presented her with a crystal clock signifying this year's theme of Sexual Assault Awareness Month-- "It's Time ... To Talk About It!"
The GCASAFV nominated U.S. Attorney Limtiaco citing to her over 20 years of commitment and dedication to enforcement, prosecution, public awareness and prevention efforts to combat against and end sexual assault and family violence. Prior to commencing her service as U.S. Attorney in 2010, Limtiaco was the first woman elected to serve as Attorney General of Guam. Limtiaco was an active member of the National Association of Attorneys General (NAAG) and Conference of Western Attorneys General (CW AG), and served as Co-chair of the NAAG Criminal Law Committee and NAAG Youth Access to Alcohol Committee, and as Second Vice Chair of the CW AG Executive Team. She spearheaded certain initiatives including the formation of task forces to address human trafficking; internet crimes against children including sexual exploitation and child pornography; and the implementation and compliance of Sex Offender Registration and Notification Act (SO RNA) requirements by the Government of Guam. She served as the Chair of the Executive Branch ofthe Family Violence and Sexual Assault Task Force, and was an active member of the Sexual Assault Response Team (SART) Steering Committee.
Prior to her tenure as Attorney General, Limtiaco served as acting Chief Prosecutor and as an Assistant Attorney General (Prosecutor) for the Office of the Attorney General. She was the Lead Prosecutor of the Criminal Sexual Conduct and Family Violence Unit, and Co-chair of the Governor's Family Violence Task Force. Limtiaco initiated the drafting and implementation of family violence protocol utilized by the Prosecution Division and Guam Police Department, and assisted in the drafting of the 1994 and 1998 Guam Family Violence Acts, and the Sex Offender Registration and Notification law enacted in 1999.
As U.S. Attorney, Limtiaco is a member of the Attorney General's Advisory Committee (AGAC) Subcommittees/ Working Groups, including the Civil Rights, and Child Exploitation and Obscenity Working Groups. U.S. Attorney Limtiaco and the U.S. Attorney's Office (USAO) continues to work collaboratively with the National District Attorney's Association; U.S. Department of Interior, Office oflnsular Affairs, Federal Ombudsman Office; and U.S. Department of State, Monitoring of Trafficking in Persons Office, on a Pacific Regional Response to Combat Human Trafficking. This response is a critical component of the USAO's human trafficking strategic plan given increased concerns in the Pacific region regarding sex and labor trafficking, violence against women, and child abuse and sexual exploitation. Also of significance are the source countries within the Asia Pacific region from which victims are recruited and trafficked, and their close proximity to Guam, the NMI, Republic of Palau, Republic of the Marshall Islands, and Federated States ofMicronesia ("FSM"); and the trafficking of victims in the islands themselves. The Pacific Regional Response to Combat Human Trafficking initiative employs a multi-disciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region. U.S. Attorney Limtiaco has been instrumental in coordinating human trafficking, sexual assault and child sexual exploitation training in Guam, the Northern Mariana Islands, the Republic of Palau, and Federated States of Micronesia; and facilitating the Guam Human Trafficking Task Force efforts, including those of the Victim Service Providers Committee.
NSVRC Director Karen Baker, in a press release, stated that "it is an honor to celebrate these outstanding individuals, who have committed themselves to sexual violence prevention. Recognizing the positive impact of this work on a national level is a great reminder that we all can make a difference."
To learn more about Sexual Assault Awareness Month and the Visionary Voice Award, visit www.nsvrc.org.
Three Sentenced to Lengthy Prison Terms in Shooting Death of Brinks Guard at Calder CasinoRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Matthew Boyd, Chief, Miami Gardens Police Department, announce today’s sentencing of Vladimir Louissant, of Miami Gardens, Victoria Barkley, of Miami Gardens, and Byron Kyler, of Miami, in connection with the August 21, 2011 shooting death of a Brinks guard at the Calder Casino and Race Course (Calder) in North Miami, Florida. Co-defendants Reginald Mitchell, of Miami Gardens, and Uri Ammar, of Hollywood, have not been sentenced yet. Sentencing for defendant Ammar is scheduled for April 18, 2013.
At today’s sentencing hearing, U.S. District Judge James Lawrence King sentenced Louissant to life in prison. Barkley was sentenced to 10 years in prison, and Kyler was sentenced to 5 years in prison, both sentences to be followed by three years of supervised release.
According to documents filed with the court and evidence presented during trial, on August 21, 2011, Mitchell and Ammar conspired to rob a Brinks guard as he made a scheduled pick-up at Calder. Mitchell and Ammar both worked security at Calder, where Ammar was a Security Shift Manager. Mitchell recruited co-defendants Louissant, Barkley and Kyler. On the day of the murder, Mitchell drove Louissant to Calder in Kyler’s truck, which Kyler had falsely reported stolen.
According to the trial evidence, Ammar escorted the Brinks guard through the Calder facility and led him to an open area, where Louissant was waiting. As Ammar and the guard entered the open area, Louissant rushed at the guard, brandishing a firearm. When the guard drew his weapon, Louissant shot the guard and the two exchange gunfire. After shooting the guard, Louissant grabbed the Brinks money bag and fled to Kyler’s truck. Mitchell and Louissant then drove a short distance in Kyler’s truck, which they abandoned to be driven away from the scene by Barkley in another vehicle.
Mr. Ferrer commended the FBI and Miami Gardens Police Department for their work on this case. Mr. Ferrer also thanked the members of the FBI’s South Florida Violent Crimes and Fugitive Task Force. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Seth Schlessinger.
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.
Tax Evasion and Fraud Charges Leveled Against Local BusinessmanRead the Press Release
James L. Quirin, 58, formerly of Columbia, IL, and now residing in Sauget, IL, was charged in a superseding federal indictment returned on Tuesday with four new counts alleging felony Tax Evasion and False Filing, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. These charges were added to the original eight counts (two counts of Mail Fraud, five counts of Wire Fraud, and one count of Theft of Government Funds) charged in November 2011.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
The new allegations in the superseding Indictment are as follows:
On July 22, 2008, the Internal Revenue Service issued to Quirin a Notice of Federal Tax Lien Filing for the 2006 tax year in the amount of $93,844. Quirin did not pay the tax and in March 2009, in order to conceal his true income and assets, he began converting checks to cash at money services businesses (over $900,000 through January 2013.) On September 30, 2009, Quirin made a formal offer in compromise in the amount of $5,500 for his 2006 tax debt in which he claimed that his only income was unemployment compensation. In like manner, Quirin evaded payment of substantial income tax for 2008 and 2010.
On July 13, 2010, Quirin made and filed an income tax return for 2009 in which he understated the gross receipts of his business by over $100,000. The return was verified by a written declaration that it was made under penalties of perjury.
The allegations in the original and superseding Indictment are as follows:
Quirin applied for Unemployment Insurance benefits in February, 2009, even though he was a gainfully employed businessman receiving significant income. Quirin and several of his businesses were sued in federal court. Just before he was ordered to post an approximate quarter million dollars in collateral, Quirin filed a fraudulent application for unemployment benefits with the State of Illinois. Quirin then falsely told the judge that he was unemployed and had no source of income.
In reality, Quirin continued to receive significant income with most of the payments being made out to the names of other business entities with which Quirin was associated. In a practice known as “structuring,” Quirin caused payments to be split into separate checks of less than $10,000.00 to avoid his transactions being reported to the government. Quirin cashed most of his checks at a money services business located at a bar in St. Louis, Missouri, occasionally cashing structured checks on separate days. In order to receive the full benefit payments, the State of Illinois requires that beneficiaries report weekly that they looked for and were available to work, and that they had not worked. Quirin repeatedly and falsely informed the State of Illinois that he met these criteria, even though he had worked, had been paid, and on some occasions was unavailable to work because he was vacationing in Costa Rica.
The State of Illinois issues a debit card to unemployment beneficiaries. Quirin used his unemployment benefits card, which was obtained by way of the U.S. Mail, to pay expenses while vacationing in Costa Rica at such establishments as Hooters, the Monkey Bar, and the Hotel Copacabana, which resulted in wire transmissions, in San Jose and Puntarenas, Costa Rica, during time periods that he falsely claimed to be available and looking for work.
State unemployment programs are funded by the federal government. During the period that Quirin claimed federally subsidized unemployment benefits, February 2009 through October 2010, Quirin fraudulently received government funds exceeding $44,000.00.
Quirin faces up to 20 years imprisonment, a fine of $250,000, and up to 3 years supervised release on each of the Mail Fraud and Wire Fraud counts. Quirin faces up to 10 years imprisonment, a fine of $250,000, and up to 3 years supervised release on the theft count. Quirin faces up to five years’ imprisonment, a fine of $100,000, costs of prosecution, and up to 3 years’ supervised release on each of the 3 counts of Evasion of Payment of Tax. Quirin faces up to 3 years’ imprisonment, a fine of $100,000, costs of prosecution, and 1 year’ supervised release for Filing a False Return.
The Superseding Indictment follows investigations by the Department of Labor, the Internal Revenue Service, and the Environmental Protection Agency. The case is being prosecuted by Assistant United States Attorney Michael J. Quinley and Special Assistant United States Attorney Katherine L. Lewis.
Tampa Woman Sentenced to More Than 5 Years in Prison for Stolen Identity Tax Refund FraudRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Remesa Buemer to 5 years and 5 months in federal prison for wire fraud and aggravated identity theft. As part of the sentence, the court also entered a money judgment in the amount of $159,265.60, a portion the proceeds of the charged criminal conduct. Buemer was also ordered to pay restitution in the amount of $462,039.60.
Buemer pleaded guilty on January 17, 2013.
According to court documents, from at least as early as January 21, 2011, through at least September 15, 2011, Buemer engaged in a scheme to file false tax returns in order to obtain fraudulent refunds. She generated fraudulent tax refunds using the identities of other individuals on tax returns without their permission.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," stated James Robnett SAC, Tampa Field Office. "Filing fraudulent tax returns in the names of other individuals results in significant harm to those individuals whose identities were stolen. Today’s sentence reflects the harm inflicted upon the victims.”
Special Agent in Charge Quentin G. Aucoin stated, “The VA Office of Inspector General is dedicated to aggressively investigating individuals who misuse patient information, especially when used for personal and financial gain .”
“Through the task force, we are sending a strong message to criminals. If you commit tax fraud, you will go to prison,” said Tampa Police Chief Jane Castor.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Department of Veterans Affairs Office of Inspector General, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Staten Island, N.Y. Man Pleads Guilty in Jewelry Store RobberyRead the Press Release
TRENTON, N.J. – A Staten Island, N.Y., man today admitted his role in the robbery of Blue Stove Antiques in Fair Haven, N.J., on June 2, 2012, U.S. Attorney Paul J. Fishman announced.
Robert A. Fiolka, 69, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an Information charging him with Hobbs Act robbery and use of a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
On June 2, 2012, at approximately 9:30 a.m., Fiolka entered Blue Stove Antiques in Fair Haven wearing a hat and flesh-colored face mask and brandishing a handgun. Fiolka approached the store owner, pointed the handgun at him and demanded that he open the store’s safe. After the owner opened the safe, Fiolka ordered him to the ground and then proceeded to empty the safe’s contents into a satchel that he had with him. After filling the bag with the safe’s contents, Fiolka exited the store with approximately $200,000 worth of jewelry.
The Hobbs Act robbery charge is punishable by a maximum potential penalty of 20 years in prison; the charge of use of a firearm in furtherance of a crime of violence is punishable by a maximum potential penalty of life in prison. Each charge carries a statutory maximum fine equal to the greatest of $250,000 or twice the gross loss or gain.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s guilty plea; he also thanked the Colts Neck Police Department, Fair Haven Police Department, Old Bridge Police Department, Wall Township Police Department, and the Monmouth County Prosecutor’s Office.
Sentencing before Judge Wolfson is scheduled for July 11, 2013.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the Criminal Division in Trenton.
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Defense counsel: John W. Mitchell Esq. and Jerome A. Ballarotto Esq.Fiolka Information
St. Marys, Kan., Man Sentenced to 25 Years for Drug TraffickingRead the Press Release
TOPEKA, KAN. – A man from St. Marys, Kan., has been sentenced to 25 years in federal prison for drug trafficking, U.S. Attorney Barry Grissom said today.
Alejandro Oviedo-Tagle, 36, St. Marys, Kan., pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
Grissom commended Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Assistant U.S. Attorney Greg Hough for their work on the case.
St. Luke’s University Health Network Agrees ToRead the Press Release
Pay Government $1,029,791 To ResolveAlleged Improper Medicare Claims
The United States Attorney's Office for the Middle District of Pennsylvania announced that the St. Luke’s University Health Network has agreed to pay the United States $1,029,791 to resolve allegations that it erroneously submitted improper claims to the Medicare program. St. Luke’s University Health Network owns and operates St. Luke’s Hospital of Bethlehem, St. Luke’s Quakertown Hospital, and St. Luke’s Miners Memorial Hospital.
According to United States Attorney Peter J. Smith, St. Luke’s University Health Network has agreed to pay $1,029,791 to resolve allegations that from January 1, 2002, through June 30, 2012, its hospitals erroneously submitted claims to the Medicare program for payment that contained evaluation and management services that were not allowable under Medicare.
Medicare does not normally allow additional payments for such services performed by a provider on the same day as a procedure, unless the service is significant, separately identifiable, and above and beyond the usual preoperative and postoperative care associated with the procedure. In such cases, an attachment to the claim, known as "Modifier 25," may be submitted to allow the additional payment.
In this matter, the government determined that St. Luke’s hospitals incorrectly attached Modifier 25 to Medicare claims that led Medicare to pay the hospitals for evaluation and management services that were not significant and separately identifiable from the underlying procedures for which Medicare also made payments.
St. Luke’s fully cooperated in this investigation after being contacted by the government.The Harrisburg Office of the U.S. Attorney’s Office had jurisdiction because Medicare provider claims are processed by Novitas Solutions, Inc., formerly Highmark Medicare Services, in Camp Hill, Pennsylvania. The U.S. Attorney’s Office for the Eastern District of Pennsylvania cooperated in this matter.
The case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General in Harrisburg and handled by D. Brian Simpson, of the United States Attorney's Office, Civil Division.
South Carolina Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Saluda, South Carolina man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Volney V. Smith, age 44, was indicted by a federal grand jury on December 4, 2012 for failing to pay over $13,155.00 in past due child support. He appeared before U.S. Magistrate Judge William D. Gerdes on March 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years of imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Smith is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Smith was released on bond pending trial. A trial date has not been set.
Six arrested for conspiracy to commit international money laundering and structuringRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that six individuals have been arrested on charges of conspiracy to commit international money laundering and structuring financial transactions.
On April 2, 2013, Special Agents of the IRS Criminal Investigation Division, the Drug Enforcement Administration, and Homeland Security Investigations arrested five people in Alaska and one in Florida. Those arrested included Claritza Natera, 44, Joel Paredes Henriquez, 32, Nerido Paredes Henriquez, 38, Alberto Acosta, 32, and Carlita Acosta, 34, of Anchorage, Alaska, and Concepcion Egea, 56, of Orlando, Florida.
According to the indictment, between approximately January 2010 and December 2011, the defendants conspired with one another and with unindicted co-conspirators Randin Paredes Henriquez and Joel Santana-Pierna, who were previously indicted in another case, to transfer large sums of money from Alaska to the Dominican Republic. The money was the proceeds of a larger conspiracy allegedly perpetrated by Santana-Pierna and others to distribute cocaine. The alleged co-conspirators noted in the indictment, wired more than $175,000 in illegally obtained funds from Alaska to the Dominican Republic over a two year period. Additionally, in December 2011, Claritza Natera and others transported $55,720 in cash on board a plane from Alaska to Philadelphia, Pennsylvania, in an attempt to then escort the funds to the Dominican Republic.
The indictment further alleges that each of the conspirators attempted to evade federal financial transaction reporting requirements by making multiple deposits to their bank accounts that were below the reporting threshold. These deposits were often made within hours or even minutes of one another. Under federal law, a Currency Transaction Report must be filed with the IRS by a financial institution for any currency transaction over $10,000, and it is illegal to structure transactions in order to avoid this filing requirement.
According to Assistant U.S. Attorneys Stephanie Courter and Thomas Bradley, who presented the case to the grand jury, the conspiracy charge is punishable by up to 20 years in prison as well as a $500,000 fine, and each individual structuring charge carries a maximum penalty of 10 years in prison as well as a fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.The case was investigated 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, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, and the Anchorage Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Sioux Falls Woman Indicted for Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota woman has been indicted by a federal grand jury for conspiring with others to distribute methamphetamine in South Dakota and elsewhere from August 2009 to February 2013.
Shawna Provincial, age 38, was indicted by a federal grand jury on February 20, 2013 for Conspiracy to Distribute a Controlled Substance. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 15, 2013 and pled not guilty to the indictment. The penalty upon conviction is a minimum of 5 up to 40 years’ imprisonment and/or a $5,000,000 fine.
The charge is merely an accusation and Provincial is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, Federal Bureau of Investigation, and Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Provincial was released on bond pending trial. A trial date has been set for May 28, 2013.
Sioux Falls Man Indicted for Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man has been indicted by a federal grand jury for conspiring with others to distribute methamphetamine in South Dakota and elsewhere from August 2009 to February 2013.
Clinton Provincial, age 33, was indicted by a federal grand jury on February 20, 2013 for Conspiracy to Distribute a Controlled Substance. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 26, 2013 and pled not guilty to the indictment. The penalty upon conviction is a minimum of 5 up to 40 years’ imprisonment and/or a $5,000,000 fine.
The charge is merely an accusation and Provincial is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, and the Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Provincial was remanded to the custody of the U.S. Marshal. A trial date has been set for May 28, 2013.
Sikeston Man Sentenced for Lebanon Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sikeston, Mo., man was sentenced in federal court today for robbing a Lebanon, Mo., bank.
Larry Gene Enloe, 52, of Sikeston, was sentenced by U.S. District Judge Greg Kays to five years and three months in federal prison without parole.
On Sept. 26, 2012 Enloe pleaded guilty to bank robbery. Enloe admitted that he stole $2,350 from Commerce Bank on Aug. 21, 2012.
According to court documents, Enloe entered Commerce Bank, 224 W. Commercial St., Lebanon, at about 3:15 p.m. on Aug. 21, 2012. Enloe approached the teller counter and presented a bank robbery note (written on the back of a Walmart receipt) to the teller. The note read, "10 seconds. Put all your money in the bag now. No one gets hurt."
The teller handed Enloe $2,350 and he put the cash in a white plastic bag and walked out of the bank.
While conducting a search of the area, Lebanon police officers located Enloe near a local bus station. He was questioned and transported to the police station where he was searched; officers found $2,350 hidden in his socks.
This case was prosecuted by Assistant U.S. Attorney Steven Mohlhenrich. It was investigated by the Lebanon, Mo., Police Department and the FBI.Rochester Man Pleads Guilty Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Paul Hearty, 37, of Rochester, New York, pled guilty to a one count felony information charging him with knowing possession of child pornography before United States District Judge Frank P. Geraci, Jr. Due to Hearty's prior State conviction for possession of child pornography, the offense carries a mandatory minimum penalty of 10 years imprisonment and a maximum penalty of 20 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee stated that Hearty admitted to possessing images of child pornography, to include prepubescent children, on a Samsung smart phone in his possession. According to the criminal complaint, in December 2010, New York State Police's Internet Crimes Against Children Task Force had received information that an AOL user was sending child pornography to an account used by a particular Internet Protocol address. The subscriber of the Internet Protocol address was identified as Hearty, residing at Alexander Street, in the City of Rochester. New York State Police executed a search warrant in April 2011 and images of child pornography were found on Hearty's Samsung smart phone.
In 2005, Hearty was convicted in Monroe County of the Possession of an Obscene Sexual Performance By A Child Less Than 16 Years Old and following his conviction, he was required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The plea was the culmination of an investigation on the part of the United States Homeland Security Investigations under the direction of Special Agent in Charge James C. Spero, the New York State Police Computer Crimes Unit under the direction of Captain Frank Pace, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
Sentencing has been scheduled for July 8, 2013 at 3:00 p.m. before Judge Geraci.
Resident of Weare, New Hampshire Pleads Guilty to Bank FraudRead the Press Release
CONCORD, N.H. – Renee Pelletier, 59, of Weare, pleaded guilty to bank fraud in United States District Court for the District of New Hampshire, announced United States Attorney John P. Kacavas.
From June 2008 to August 2011, Pelletier was employed as a part-time bookkeeper by an excavation company in Merrimack, New Hampshire, that maintained a checking account at St. Mary’s bank, a federally insured credit union.
While working for the company, Pelletier used a variety of dishonest methods to steal money from the company’s bank account. Without receiving permission or authority from the company’s owner, Pelletier forged the owner’s endorsements on 315 checks, totaling $32,504.04, that were drawn on the company’s account, and used the money for her personal benefit. On 233 other occasions, Pelletier used the credit union’s on-line banking system to make payments totaling $19,103.15 from the company’s account to business entities to whom she owned money.Pelletier is scheduled to be sentenced on July 9, 2013 and is facing a prison term of up to 30 years and a fine of up to $1,000,000.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Bob Kinsella.
Resident of Florida Sentenced to 63 Months in PrisonRead the Press Release
CONCORD, N.H. – Steven D. Lewis, 61, of Loxahatchee, Florida, was sentenced in United States District Court for the District of New Hampshire to 63 months in prison for a wire fraud, announced United States Attorney John P. Kacavas.
From approximately November 2003 to July 2010, Lewis and another person, William Orestis, solicited money on behalf of a sham investment company, Equivest, LLC. Lewis and Orestis falsely assured investors that their money would be used to purchase foreign currencies and to support Equivest’s business activities. They provided bogus account statements to investors that falsely claimed that impressive profits had been earned in Equivest accounts by other investors. Lewis and Orestis also falsely assured some investors that their accounts would earn 12 percent interest annually. They also falsely promised other investors that their accounts would earn income at rates as high as 18 percent annually.Lewis and Orestis fraudulently obtained $764,282 from investors, but they used only a portion of that money to buy foreign currencies. They also made payments totaling approximately $124,715 to some investors in order to lull them into a false sense of security regarding the performance of their Equivest accounts. As a result, the investors lost $639,567.
Lewis is currently serving a 28 month sentence in Florida for a larceny related offense. He will begin serving his 63 months upon completion of his current sentence.
The case was investigated by the United States Postal Inspection Service and prosecuted by Assistant United States Attorney Bob Kinsella.Removed Alien Found by ICE Charged with Illegally Re-Entering U.S.Read the Press Release
PITTSBURGH - An individual found by the United States Immigration and Customs Enforcement has been indicted by a federal grand jury in Pittsburgh on charges of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Antonio Florentino-Facundo, a/k/a Frankic Mendoza-Sagal, 29, formerly from Mexico, as the sole defendant.
According to indictment, Antonio Florentino-Facundo, a/k/a Frankic Mendoza-Sagal, an alien, was removed from the United States by United States Immigration and Customs Enforcement on Jan. 16, 2008.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Prosecutors Warn Potential Tax Evaders: Tax Crimes Result in Lengthy Prison Sentences and Steep FinesRead the Press Release
Taxpayers Also Cautioned About Tax Preparer Fraud and Other Illegal Tax Schemes
CHARLOTTE, NC - With the deadline for filing income tax returns rapidly approaching, Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, and Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CID), jointly announce recent tax fraud prosecutions and sentencings, and deliver a powerful warning to those who are thinking about breaking the law by committing tax crimes.
“As April 15th approaches, honest taxpayers should rest assured: our office will work diligently to investigate and prosecute those individuals who try to cheat the tax system,” said U.S. Attorney Tompkins. “Whether dishonest taxpayers fail to report all of their income, attempt to obtain fraudulent refunds, or prepare bad tax returns for others,” Tompkins continued, “they face lengthy sentences and large fines.” Tompkins noted the importance of deterring others from committing tax crimes stating, “Our tax system is built on voluntary compliance, and tax criminals hurt all Americans by increasing the tax burden on honest taxpayers and refusing to pay their fair share.”
“The IRS fosters confidence in the American tax system through the investigation and prosecution of individuals and corporations who intentionally conceal income and evade taxes,” stated Charlotte Field Office Special Agent in Charge Jeannine A. Hammett, IRS Criminal Investigation. “Tax evasion is not a victimless crime. Honest, hardworking Americans pay the price when others choose to evade their tax obligations.”
In the last year, the U.S. Attorney’s Office, with the assistance of the IRS-CID, has prosecuted numerous individuals for criminal tax violations. Case highlights from the Western District of North Carolina’s tax enforcement prosecutions over the last year include:
Charles A. Davis - On September 10, 2012, Charles A. Davis, formerly of Mooresville, N.C., was sentenced to 10 years in prison for tax fraud. Davis, who was a pilot for U.S. Airways from 1983 through 2011, was convicted following trial of ten counts of filing false tax returns and one count of corruptly impeding the due administration of the IRS. Davis did not file timely income tax returns for 1996 through 2007 despite receipt of wages ranging from $129,950 to $190,510. Davis subsequently filed fraudulent amended income tax returns for 1996 through 2000, falsely claiming that he earned little or no adjusted gross income, and he later filed five fraudulent individual income tax returns for 2004 through 2008, reporting false amounts of federal income tax withheld for each of those years and requesting fraudulent refunds from the IRS in amounts up to approximately $1.5 million. (Case No. 5:11-cr-32)
Candida Figueroa, et al. - On October 24 and November 5, 2012 respectively, Cathy Cisneros and Candida Figueroa, both of Charlotte, pleaded guilty to a false claims conspiracy for their roles in a scheme to defraud the government by obtaining false and fraudulent income tax refunds. According to the superseding indictment, the co-conspirators obtained false tax refunds using fraudulently obtained Individual Taxpayer Identification Numbers. The co-conspirators directed that fraudulent tax refunds be sent to addresses at various apartment complexes in Charlotte. The total attempted fraudulent tax refunds associated with the scheme was more than $3.8 million. No sentencing dates have been set. Figueroa and Cisneros each face a maximum sentence of 10 years in prison. (Case No. 3:12-cr-260)
Cynthia Garris - On May 15, 2012, Cynthia Garris, of Wadesboro, N.C., pleaded guilty to one count of filing a false tax return. Beginning in 2008, Garris was the owner of Wadesboro Home Care, Inc. in Charlotte. From 2008 through 2010, Garris concealed some of her personal earnings from the IRS by diverting funds from Wadesboro Home Care to pay for personal expenditures and failing to provide her return preparer with information about all of her earnings. For tax years 2008 through 2010, Garris had total unreported income of more than $400,000. No sentencing date has been set. Garris faces a maximum of three years in prison. (Case No. 3:12-cr-150)
Yolanda Tiess Kitson – On April 2, 2013, Yolanda Tiess Kitson of Augusta, Ga. was indicted on charges of false claims conspiracy and aggravated identity theft. According to the bill of indictment filed, Kitson, who is the sister of Senita Birt Dill (listed below), stole identifying information from patients at the Eisenhower Army Medical Center in Augusta and provided them to her sister Dill for use in her stolen identity tax refund scheme. Kitson is awaiting her initial appearance in federal court in Asheville. (Case No. 1:13-cr-31)
Ronald Jeremy Knowles and Senita Birt Dill – On October 29, 2012, Ronald Jeremy Knowles and Senita Birt Dill, both residents of Mill Spring in Polk County, N.C., pleaded guilty to charges of false claims conspiracy, access device fraud, and aggravated identity theft. According to the bill of information filed, Knowles and Dill used stolen identities to file over $5 million in fraudulent tax refund claims. Both are in custody awaiting sentencing, but no sentencing date has been set. Dill faces a maximum of 17 years in prison; Knowles is facing a maximum of 15 years in prison. (Case No. 1:12-cr-105)
Anthony Nguyen - On May 30, 2012, Anthony Nguyen, of Charlotte, pleaded guilty to tax evasion. Nguyen was the owner of Empress of China II, a Chinese restaurant in Charlotte. For tax years 2006 through 2008, Nguyen diverted cash receipts from his business to his personal bank accounts and failed to provide his tax return preparer full information about his earnings. For 2006 through 2008, Nguyen failed to report approximately $421,751 in income on his tax returns. No sentencing date has been set. Nguyen faces a maximum sentence of five years in prison. (Case No. 3-12-cr-155)
Nelson Rodriguez – On November 26, 2012, Nelson Rodriguez, of Morganton, N.C. pleaded guilty to tax evasion. Rodriguez, a dentist, failed to file income tax returns from 2005 through 2010 despite receipt of more than $1.7 million in income for those years. According to the superseding indictment, Rodriguez used nominee entities including Practice Promoters, LLC to receive his dental income. Additionally, Rodriguez purchased assets in nominee names and used bank accounts in nominee names. No sentencing date has been set. Rodriguez faces a maximum of five years in prison. (Case No. 1-12-cr-41)
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a maximum of three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season and to be vigilant in protecting themselves against a wide range of tax schemes. The IRS has issued its annual “Dirty Dozen” listing, which identifies common scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
• Identity theft
• Phising
• Return Preparer Fraud
• Hiding Income Offshore
• “Free Money” from IRS & Tax Scams Involving Social Security
• Impersonation of Charitable Organizations
• False/Inflated Income and Expenses
• False Form 1099 Refund Claims
• Frivolous Arguments
• Falsely Claiming Zero Wages
• Disguised Corporate Ownership
• Misuse of TrustsEducation is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
Porcupine Woman Indicted for Child Abuse and Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota woman was indicted by a federal grand jury for driving a vehicle while intoxicated, causing it to roll and eject a young child, who died from his injuries.
Elizabeth Red Star-Benson, 26, was indicted on March 19, 2013 for Felony Child Abuse and Neglect and Involuntary Manslaughter. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 15 years’ imprisonment and/or a $250,000 fine.
The charges are merely an accusation and Red Star-Benson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Highway Patrol. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Red Star-Benson was remanded to the custody of the U.S. Marshal. A trial date has not been set.