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22 March 2013
Two Clarksburg Residents Enter Pleas in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA - Two individuals entered pleas of guilty in United States District Court in Clarksburg on March 20, 2013, before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that:
DEREK DELEON BROWN a/k/a “SMOKE,” age 23, of Clarksburg (formerly of
Pittsburgh, Pennsylvania) entered a plea of guilty to “Distribution of Crack Cocaine” on June
26, 2012, in Harrison County. BROWN, who is free on bond pending sentencing, faces up to
20 years imprisonment and a $1,000,000 fine.JASON SAUNDERS a/k/a “JOSH JAMES,” age 25, of Bridgeport, West Virginia, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Simpson Elementary School” on May 29, 2012. SAUNDERS, who is in custody pending sentencing, and KENNEDY, faces a term of 1 to 40 years imprisonment and a $2,000,000 fine.
The case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
Temple University Agrees to Pay $100,000 to Resolve OverbillingRead the Press Release
PHILADELPHIA- Temple University has agreed to a $100,000 settlement to resolve allegations arising from overbilling for neurology services. The settlement agreement, which was reached on February 22, 2013, was announced by United States Attorney Zane David Memeger. The overbilling to Medicaid and Medicare programs arose from services rendered at Temple University's own facilities as well as services rendered at Frankford Hospital by Temple physicians. Temple University submitted claims for medical services that were improperly coded higher than the appropriate codes that were supported by the documentation for those services. Upon review of the documentation underlying these claims, Temple University agreed that the coding was not accurate and thus, that the government paid more than it should have for the services Temple University physicians provided. Under the parties' settlement agreement, Temple University will pay $100,000.00 to the United States.
“As we continue to seek to contain healthcare costs, the United States cannot tolerate overbilling to government healthcare programs,” said Memeger. “Unfortunately, this type of fraud and waste is a serious problem facing our healthcare system. To help ensure the continued viability of these critical healthcare programs for our citizens, we must be vigilant about preventing these financial drains on the system.”
This resolution was handled by Assistant U.S. Attorneys Veronica J. Finkelstein and Susan R. Becker.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Store Owner Charged with Trafficking Counterfeit Sports ApparelRead the Press Release
BOSTON - A Chicopee store owner was charged today in federal court with selling counterfeit NHL, NFL, MLB and NBA sports apparel.
James M. Dent, 51, was charged in an Information with trafficking in counterfeit goods. The Information alleges that between 2007 and 2012, Dent sold counterfeit sports apparel from the four major professional sports leagues, in his Central and Western Massachusetts stores. The stores were located in the Holyoke Mall in Holyoke (Sports Zone); the Greendale Mall in Worcester (Sports Zone); the Berkshire Mall in Lanesborough (Collectibles and Cards); the Hampshire Mall in Hadley (Collectibles and Cards); and the Eastfield Mall in Springfield (Collectibles and Cards).
The statutory maximum penalty is 10 years in prison, to be followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Paul Felon Indicted for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier this week in federal court, a 23-year-old felon from St. Paul was indicted for possessing a nine-millimeter, semi-automatic pistol. On March 19, 2013, Virgil Lee Kirkwood was charged with one count of being a felon in possession of a firearm.
The indictment alleges that on December 6, 2012, Kirkwood possessed the pistol. According to a law enforcement affidavit filed in the case, officers learned that Kirkwood was in possession of a gun and looked for him in the area of the 700 block of Central Avenue in St. Paul, Minnesota. When officers approached, they found Kirkwood and he was detained on an outstanding Anoka County warrant for an unrelated burglary. The pistol was found inside a black sock hidden nearby.
Because he is a felon, Kirkwood, also known as Virgil Lee Crenshaw, is prohibited under federal law from possessing firearms or ammunition at any time. His prior Hennepin County convictions include second-degree burglary (2010), third-degree attempted burglary (2012), and other offenses. Because certain of these convictions constitute crimes of violence, Kirkwood is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.This case is the result of an investigation by the St. Paul Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Siblings Arrested for Reynoldsburg Jewelry Store Armed RobberyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Darnell J. Harris, 25 and his sister Mariah Harris, 19, both of Canal Winchester, Ohio have been arrested based on charges in a federal indictment alleging that they robbed a Reynoldsburg jewelry store in May 2012.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Reynoldsburg Police Chief Jim O’Neill announced the arrests which occurred yesterday.
The indictment charges each defendant with one count of obstructing interstate commerce (Hobbs Act) by robbing Heins Jewelers in Reynoldsburg on May 21, 2012. The crime is punishable by up to 20 years in prison and a fine of up to $250,000.
“The indictment alleges that they used actual and threatened physical violence in furtherance of the robbery,” U.S. Attorney Stewart said.
The indictment charges Darnell Harris with one count of brandishing a firearm during a crime of violence. That crime carries a sentence of seven years in prison to be served consecutive to any other sentence.
Reynoldsburg and Pickerington police officers arrested Darnell Harris following a traffic stop in Pickerington. Mariah Harris surrendered to the Reynoldsburg Police and was arrested there. Both have initial appearances before a U.S. Magistrate today.
“Pursuing offenders who commit firearms violence and disrupt the safety of our communities remains our top priority,” stated ATF Special Agent in Charge Shoemaker.
“Detective Mike Binder did an outstanding job on this case,” Reynoldsburg Chief O’Neill said. “I appreciate the partnership with Pickerington Police in making the arrest.”
U.S. Attorney Stewart commended the investigation conducted by the ATF and Reynoldsburg Police. Assistant U.S. Attorney David J. Bosley is representing the United States in the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Sewage Disposal Companies Sentenced for Violations of Clean Water ActRead the Press Release
BISMARCK – Hurley Enterprises, Inc., and Mon-Dak Water & Septic Services, LLC, pleaded guilty and were sentenced in separate cases today by U.S. District Judge Daniel L. Hovland on felony charges of illegal disposal of domestic sewage, a felony violation of the federal Clean Water Act (CWA). The convictions, which were announced by the Department of Justice’s Environmental and Natural Resources Division (ENRD), the United States Attorney’s Office for the District of North Dakota, and the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), stem from Hurley’s and Mon-Dak’s illegal dumping of sewage sludge in northwestern North Dakota in 2011 and 2012.
In 2011 and 2012 both Hurley and Mon-Dak were engaged in the domestic sewage disposal business. They pumped and removed sewage sludge for disposal from facilities in North Dakota such as oil well drilling sites, temporary crew housing sites and portable toilets. As part of their plea agreements with the United States, both Hurley and Mon-Dak admitted that in 2011 and 2012 their employees illegally discharged this type of sewage sludge by dumping the sewage sludge in a way that did not comply with regulations under the Clean Water Act. These regulations, which require a uniform spreading of this type of sewage sludge at controlled rates in order to fertilize soils, are designed to ensure the public safety. Specifically, Hurley and Mon-Dak both admitted that their truck drivers did not attempt to uniformly spread the sewage sludge, but rather dumped the sewage waste by simply opening the tanks on their trucks and discharging the sewage directly onto the ground.
In Hurley’s case, it admitted to illegally dumping sewage on January 3, 2012, at the Sipe Ranch, in McKenzie County, N.D., near a tributary to Beicegel Creek. An affidavit of an EPA-CID agent in the case alleged that Hurley had hauled over 78 loads of sewage to the Sipe Ranch site. Additionally, Hurley also admitted to illegally dumping sewage on May 23, 2012, at Epping Brook in Williams County, N.D. That sewage was dumped into a tributary that flows into the Epping Spring Brook Dam.
In Mon-Dak’s case, it admitted to illegally dumping sewage on January 6, 2012, into a stubble field in Williams County, N.D., with such force and volume that the dumping resulted in drainage channels being cut into the ground that were about 100 yards long and 2.5 feet deep in places. An affidavit of an EPA-CID agent in the case alleged that between June 2011 and January 2012 Mon-Dak had hauled at least 178 loads of sewage to this location in Williams County, N.D.
Mon-Dak also admitted to illegally dumping sewage on July 17, 2012, on a location in Mountrail County, N.D. An affidavit of an EPA-CID agent in the case alleged that between June 2011 and January 2012 Mon-Dak had hauled at least 751 loads of sewage to this location in Mountrail County, N.D.
Judge Hovland sentenced both Hurley and Mon-Dak to pay $50,000.00 fines and $400 special assessments for their felony convictions. Additionally, both Hurley and Mon-Dak are currently subject to a Compliance Plan monitored by the North Dakota Department of Health for a two year period.
"The strong enforcement of environmental laws is essential to preserving North Dakota's natural resources for future generations," said Ignacia S. Moreno, the Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "Activities such as sewage disposal can be done safely, responsibly and in accordance with the law. We will vigorously prosecute those who cut corners at the expense of human health and the environment in North Dakota.”
“These historic convictions under the Clean Water Act are a first for the North Dakota United States Attorney’s Office,” said United States Attorney for North Dakota Timothy Purdon. “We are committed to using all the tools at our disposal as federal prosecutors to protect the water, air and wildlife in western North Dakota.”“As the nation continues important energy extraction activities, exploration companies are increasing the number and size of drilling rig sites and crew camps,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in North Dakota. “Companies must ensure that all waste connected with the drilling process is treated and disposed of safely and legally. Illegally discharged sewage can sicken or injure people, fish and wildlife. Today’s sentences show that those who try to save money by ignoring our environmental laws will be held responsible for their actions.”
These cases were investigated by the Environmental Protection Agency’s Criminal Investigation Division and the North Dakota Department of Health.
These cases were prosecuted by Assistant U.S. Attorney Cameron Hayden and ENRD Environmental Crimes Section Trial Attorney Christopher Costantini.
Sentences Handed Down to L.K.G. Enterprises, Inc. and Former President Sonny Garcia in El Paso Corruption InvestigationRead the Press Release
In El Paso this morning, former L.K.G. Enterprises, Inc., (LKG) president Ruben “Sonny” Garcia, Jr., was sentenced to four years in federal prison followed by three years of supervised release for conspiring to embezzle federal program funds announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
United States District Judge Frank Montalvo also sentenced LKG to five years probation during which time the corporation is prohibited from receiving any government contract. Judge Montalvo also ordered Garcia and LKG to jointly and severally pay $1.1 million restitution--$550,000 each to El Paso County and the Substance Abuse and Mental Health Services Administration (SAMHSA). Finally, Judge Montalvo ordered that Garcia surrender by May 7, 2013, to federal authorities to begin serving his prison term.
In July 2012, Garcia and LKG pleaded guilty to conspiracy to commit theft or embezzlement of federal program funds. By pleading guilty, Garcia admitted that he conspired with his co-defendant in this case, former Aliviane Chief Executive Officer Cirilo “Chilo” Lara Madrid, to pay a total of $24,000 in bribes to former El Paso County Judge Dolores Briones for her help and assistance to LKG with an El Paso County contract it was awarded to evaluate a health program for severely mentally handicapped and emotionally disturbed children in El Paso County. The program, Border Childrens’ Mental Health Collaborative (BCMHC), was funded by a 5-year federal grant valued at over $9 million. Garcia also admitted that from January 2006 until November 2006, LKG failed to provide (BCMHC) $50,000 in monthly donated services towards the efforts of the BCMHC as promised and required under the grant.
“It’s always an outrage when individuals seek to corrupt public officials for personal gain, but this case is particularly galling in that the intended beneficiaries of the program that was the subject of the crime were mentally and emotionally challenged children,” stated U.S. Attorney Robert Pitman. “An important element of criminal punishment is that of shaming, and it is my hope that this sentence sends a clear message that the perpetrators of this sort of crime are in fact victimizing real people, not just some abstract public trust.”
In December, a jury convicted Madrid of one count of conspiracy to steal or embezzle federal program funds, one substantive count of theft of embezzlement of federal program funds and one count of conspiracy to commit mail fraud and the deprivation of honest services. Madrid faces up to five years in federal prison on the embezzlement conspiracy charge; up to ten years in federal prison on the substantive embezzlement charge; and, up to 20 years in federal prison on the mail fraud conspiracy charge. His sentencing date is April 15, 2013.
“Any act of corruption cuts to the core of our justice system but nothing shatter’s the public’s confidence more than the actions of Garcia – a man who put his personal greed in front of those who needed the most – our children,” stated FBI Special Agent in Charge Mark Morgan, El Paso Division.
This investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Juanita Fielden and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.
Retired Teacher from Raton, N.M., to Serve Ten Years in Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Joseph F. Zinkiewicz, 76, was sentenced this morning to ten years in federal prison followed by ten years of supervised release for his possession of child pornography conviction. Zinkiewicz will be required to register as a sex offender after he completes his prison sentence. Zinkiewicz’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas.
Zinkiewicz, a retired teacher who resides in Raton, N.M., was arrested in April 2012, on a criminal complaint and charged with distributing, receiving and possessing child pornography in Colfax County, N.M., between Oct. 2011 and April 2012. He has been in federal custody since that time. Zinkiewicz was indicted in June 2012, and charged with three counts of distribution of child pornography, one count of receipt of child pornography, and two counts of possession of child pornography. He pled guilty on Oct. 23, 2012, to possession of child pornography.
Zinkiewicz was arrested as the result of an investigation that initially targeted a suspect in Colorado. During the investigation, an undercover agent engaged in communications with the Colorado suspect and learned that the suspect was a member of a group that used E-mail accounts to distribute and receive child pornography. In Nov. 2011, after the undercover agent obtained a hard drive containing thousands of child pornography images and videos from the Colorado suspect, agents executed a search warrant on the E-mail account used by the Colorado suspect and were able to identify the E-mail accounts of individuals, including Zinkiewicz, who shared child pornography with the Colorado suspect.
Beginning in Jan. 2012 and continuing until March 5, 2012, the undercover agent used the E-mail account belonging to the Colorado suspect to communicate with Zinkiewicz through his E-mail account. During these communications, Zinkiewicz sent a series of E-mails that included child pornography images and videos to the undercover agent. On April 4, 2012, law enforcement officers executed a federal search warrant at Zinkiewicz’s residence in Raton, and seized computers and computer-media in addition to photographs and DVDs that contain child pornography.
According to court records, Zinkiewicz admitted that he voluntarily participated in a recorded interview while the search warrant was executed at this residence and told agents that he had been looking at child pornography for ten to fifteen years. He also admitted to using his E-mail account to exchange child pornography with others on the Internet. Zinkiewicz also acknowledged that a forensic examination of his computer and computer-related media revealed that they contained nine videos and more than 1000 images of child pornography, including 28 images of children who have been identified as child pornography victims and have been rescued.
Zinkiewicz was subject to enhanced penalties in this case because he previously has been convicted of a child pornography offense. Records reveal that Zinkiewicz was convicted of distribution of child pornography in the Superior Court of the State of New Jersey in Jan. 2002.
The case was investigated by the HSI offices in Albuquerque and Greeley, Colo., with assistance from the New Mexico State Police and the Eighth Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Charlyn E. Rees.
The case 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 www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children Task Force’s (ICAC Task Force) mission 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.
Registered Nurse Pleads Guilty in Connection <br /> with Detroit Medicare Fraud SchemeRead the Press Release
A registered nurse who fabricated nursing visit forms in connection with a $24 million home health care fraud conspiracy in Detroit pleaded guilty today for her role in the scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Beverly Cooper, 59, of Detroit, pleaded guilty before U.S. District Judge Victoria A. Roberts in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
Cooper admitted that she and others conspired to defraud Medicare through home health care companies operating in the Detroit area, including Reliance Home Care LLC, First Choice Home Health Care Services Inc. and Accessible Home Care Inc. According to court documents, Cooper fabricated nursing visit notes and other documents to give Medicare the impression that she had provided home health care services, when, in fact, home health care was not needed and/or was not being provided. Cooper also admitted that while at these companies, she signed nursing visit notes for home visits made by other unlicensed individuals to give Medicare the false impression that she had provided home health care. Court documents reveal that Cooper understood that the documents she created would be used by these companies to submit claims to Medicare for home health services that were not medically necessary and/or not provided.
Court documents show that when home health companies were inspected by state regulatory agencies, Cooper and her co-conspirators participated in staged home health visits, posing as employees of these companies and treating fake patients, all to give inspectors the false impression that these companies’ operations were legitimate and that home health services were in fact being provided.
Court documents allege that between 2006 and May 2012, Cooper’s conduct caused Reliance, First Choice and Accessible to submit claims to Medicare for services that were not medically necessary and/or not provided, causing Medicare to pay these companies approximately $5,403,703.
At sentencing, scheduled for July 23, 2013, Cooper faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorney William G. Kanellis and Assistant Chief Gejaa Gobena of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Purported Real Estate Investor and Alleged Straw Buyer Charged in New Jersey with $13 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – Two alleged conspirators in a $13 million mortgage fraud scam that used phony documents and straw buyers to make illegal profits on overbuilt condos at the Jersey shore are charged in connection with the scheme, U.S. Attorney Paul J. Fishman announced.
New Jersey residents John Leadbeater, 54, of Kearny and Daniel Cardillo, 49, of Wildwood, are each charged in a superseding Indictment with conspiracy to commit wire fraud. Leadbeater is also charged with conspiracy to commit money laundering.
Leadbeater surrendered to special agents of the FBI this morning and is expected to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. Cardillo, who was previously indicted in this case, is expected to appear in federal court on March 25, 2013, before U.S. District Chief Judge Jerome B. Simandle in Camden.
According to the superseding Indictment, unsealed today:
Leadbeater and his co-conspirators located for purchase ocean town condominiums overbuilt by financially distressed developers in Wildwood and Wildwood Crest, N.J., and recruited straw buyers, including Cardillo, to purchase those properties. The straw buyers had good credit scores, but lacked the financial resources to qualify for the mortgage loans. The conspirators created false documents such as fake employment records, W-2 forms and investment statements to make the straw buyers appear more credit-worthy than they actually were in order to induce the lenders to make the loans.
To prepare the straw buyers’ false loan applications, Leadbeater and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false, attributing to the straw buyers inflated income and assets. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings on the properties, Leadbeater and his conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to the other members of the conspiracy for their respective roles.
Some previously charged co-conspirators have already pleaded guilty in connection with the scheme. Angela Celli, 42, of Somerset, Mass.; Robert Horton, 37, of Nashport, Ohio; and Justin Spradley, 35, of Cincinnati, pleaded guilty before Chief Judge Simandle and await sentencing.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, and special agents from IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen in Newark, for the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the superseding Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel: Leadbeater: Thomas J. Cammarata Esq., Jersey City, N.J.
Cardillo: Justin T. Loughry Esq., CamdenLeadbeater, John et al. Indictment
Pojoaque Pueblo Woman Pleads Guilty to Abandoning Her InfantRead the Press Release
ALBUQUERQUE – Alma Garcia, 29, a member and resident of Pojoaque Pueblo, pled guilty this morning in federal court to a misdemeanor information charging her with child abandonment.
The information charged Garcia with abandoning her minor child in spring 2010, in a situation in which the child may have suffered neglect. In entering her guilty plea this morning, Garcia admitted that, in April or May 2010, she intentionally left her infant in the custody of another person who neglected the child. Garcia admitted that this incident occurred on Pojoaque Pueblo.
Garcia was released under pretrial supervision pending her sentencing hearing, which has yet to be scheduled. At sentencing, Garcia faces up to a year in prison and a $1,000.00 fine.
The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Northern Pueblos Agency with assistance from the Pojoaque Pueblo Department of Social Services, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Plantation Man Sentenced in Child Pornography CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Franklin Adderley, Chief, Ft. Lauderdale Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office, announce that James E. Price, III, 42, of Plantation, Fla., was sentenced today before U.S. District Judge Kathleen M. Williams, in connection with his previous conviction for distribution and possession of child pornography , in violation of Title 18, United States Code, Sections 2252(a)(2) and 2252(a)(4)(B).
At today’s hearing, U.S. District Judge Kathleen M. Williams sentenced Price to 156 months (13 years) in prison, to be followed by 25 years of supervised release upon his release from imprisonment. Restitution will be determined at a later date.
According to court documents and three days of testimony during trial, the case originated from a South Florida Internet Crimes against Children Task Force (ICAC) investigation into an individual suspected of possessing and trading child pornography using a peer to peer file sharing network. The individual was later identified as Price. A search warrant was executed on Price’s residence, where agents discovered a hard drive hidden behind boxes in the home. Subsequent examination revealed that the hard drive was protected by encryption and contained hundreds of images and videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the South Florida ICAC, including the Martin County, Fla., Sherriff’s Office, the Broward County, Fla., Sherriff’s Office, and the Fort Lauderdale Police Department, with assistance from the CEOS High Technology Investigative Unit. The case was prosecuted by Assistant U.S. Attorneys Marc Anton and Mark Dispoto of the Southern District of Florida and by Trial Attorney Thomas Franzinger of CEOS in the Justice Department’s Criminal Division.
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.
Peruvian Woman Sentenced to 60 Months and Bahamian Woman Sentenced to 36 Months in Prison for Alien SmugglingRead the Press Release
Peruvian national Jessie Katherine Gonzales Urquizo and Bahamian national Irene Mildred Janette Burrows were sentenced yesterday to serve 60 months and 36 months in prison, respectively, for their roles in smuggling undocumented migrants to the United States for private financial gain, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Urquizo, 37, and Burrows, 66, were sentenced by U.S. District Judge Kenneth A. Marra in the Southern District of Florida.
On Jan. 11, 2013, Urquizo and Burrows both pleaded guilty to charges arising from facilitating the illegal smuggling of Brazilian nationals into the United States by working for a known human smuggler in Brazil. According to court documents, the pair charged between approximately $100 and $125 per day in exchange for providing lodging and transportation to undocumented migrants waiting to be transported by boat to the United States. As part of the scheme, Urquizo and Burrows received instructions from Brazil-based smugglers on when and where to deliver certain undocumented migrants to waiting boats for passage to the United States.
Urquizo and Burrows admitted that they brought undocumented migrants, all of whom are Brazilian nationals, to the United States for financial gain. Urquizo admitted to taking payment for lodging the undocumented migrants at various hotels and stash houses, including a nursing home operated by Burrows, her co-defendant and mother-in-law. Urquizo further admitted that she arranged for food to be taken to the undocumented migrants, transported the undocumented migrants to a waiting boat upon instructions from a known human smuggler in Brazil, and demanded payment for her services. For her part, Burrows admitted to working with Urquizo, taking payment for lodging undocumented migrants at her nursing home, and providing transportation.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Alexandra Hui of the Southern District of Florida.
The investigation was conducted by the ICE Homeland Security Investigations in Miami.
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.
Pensacola Man Indicted for Sales of Firearms to Convicted Felons and for Dealing in Firearms Without A LicenseRead the Press Release
PENSACOLA, FLORIDA– Buddy Lamar Redden, 65, of Pensacola,was indicted today by the federal grand jury for six sales of firearms to convicted felons and for dealing in firearms without a license. The seven-count indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
If convicted of dealing in firearms without a license, Redden faces up to five (5) years in prison and a $250,000 fine. For each count of conviction for sale of a firearm to a convicted felon, Redden faces up to ten (10) years in prison and a $250,000 fine.
The indictment comes as a result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Assistant U.S. Attorney Edwin Knight.
An indictment is merely a formal charge by a grand jury that a defendant has committed a violation of federal criminal law. A defendant is presumed innocent unless and until the government proves his guilt beyond a reasonable doubt to the satisfaction of a jury at trial.Owners of Woodbridge Home Health Business Sentenced to 121 Months for Health Care Fraud and Aggravated Identity TheftRead the Press Release
ALEXANDRIA, Va. – The owners of a Woodbridge, Va.-based home health care business were sentenced today to 121 months in prison, followed by three years of supervised release, for submitting more than $2.1 million in false claims to Virginia Medicaid and Anthem Blue Cross and Blue Shield (BCBS) for reimbursement of services they did not provide.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Ken Cuccinelli, Attorney General of Virginia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Claude M. Hilton.
Irvine Johnston King, 46, and Aisha Rashidatu King, 40, of Woodbridge, were convicted at trial on Jan. 10, 2013, of conspiracy and multiple counts of health care fraud, in addition to two counts of aggravated identity theft. At sentencing today, they were also ordered by the court to pay $931,894 in restitution and to forfeit the same amount.
According to court records and evidence at trial, the Kings owned and operated Bright Beginnings Healthcare Services, a business that provided in-home personal and respite care and private duty nursing services to Medicaid-eligible individuals. From at least January 2008 through June 2011, the Kings carried out a scheme to defraud the Virginia Medicaid program and Anthem Blue Cross and Blue Shield (BCBS) by submitting inflated claims for services. They submitted $2.1 million in fraudulent claims, of which Virginia Medicaid paid out $766,620 and BCBS paid out $165,273.
In May 2009, after learning that Virginia Medicaid had retained an outside firm to audit Bright Beginnings, the Kings began an extensive effort to cover up the fraud by creating false nursing documentation to support the claims, including timesheets and notes in the names of several nurses who had never worked at Bright Beginnings. They supervised an unlicensed employee who completed timesheets under the name of a licensed nurse and billed the employee’s time to Virginia Medicaid as licensed practical nursing services. They also directed the father of a patient to sign blank timesheets, which were then falsified to support fraudulent billing for services that had never been provided to that patient.
The investigation was conducted by FBI’s Washington Field Office and the Virginia Attorney General’s Medicaid Fraud Control Unit, with the assistance of the Virginia Department of Medical Assistance Services. Assistant U.S. Attorney Timothy D. Belevetz and Special Assistant U.S. Attorney Steven W. Grist of the Virginia Attorney General’s Office are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Owner of Nellie’s Provisions Pleads Guilty to Tax EvasionRead the Press Release
CAMDEN, N.J. – The owner of a meat distribution company admitted today to evading taxes related to income diverted from his companies for his personal use, U.S. Attorney Paul J. Fishman announced.
Nicholas Papanier Sr., 57, of Sewell, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman to an Information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Between 2006 and 2009, Papanier owned Nellie’s Provisions, a meat distribution company that provided all of the meat for Primo Hoagies franchises and other independent restaurants. In 2006, 2007 and 2008, Papanier persuaded Primo Hoagies franchise owners to buy Thumann’s deli products from Nellie’s Provisions, often paying for them in cash. He took a significant amount of the cash paid to Nellie’s Provisions and deposited it into his personal bank accounts. He then used the money from his personal accounts to pay personal expenditures. He diverted a total of $556,664 for the calendar years 2006, 2007 and 2008 in the amounts of $56,395, $349,264, and $151,005, respectively.
Papanier admitted that he did not report the diverted cash to the IRS and only reported Form W-2 wages, interest and dividend income, and property tax information. By omitting all of the diverted cash, he failed to disclose and report a significant portion of this income on his tax returns, causing those tax returns to substantially understate the amount of income he received.
He admitted that for 2006, 2007 and 2008, had he reported the additional cash on his income tax returns he would have owed the government $189,656.
As part of the plea and in addition to the restitution, Papanier agreed to forfeit $484,010 to the United States. On Oct. 14, 2009, the United States filed a Verified Complaint for Forfeiture In Rem to forfeit and condemn to the use and benefit of the United States $372,042.54 in United States currency that was seized from Papanier’s bank accounts. On Sept. 16, 2010, the United States filed another Verified Complaint for Forfeiture In Rem to forfeit and condemn to the use and benefit of the United States an additional $111,967.50 in United States currency that was seized from Papanier’s bank accounts. The Complaints alleged that the subject funds were subject to forfeiture to the United States because they were involved in and were traceable to Structuring of Currency to Avoid a Reporting Requirement.
The charge to which Papanier pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for June 28, 2013.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden in the criminal case, and Jordan Anger of the U.S. Attorney’s Office Asset Forfeiture Unit in Newark in the civil action.
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Defense counsel: Ronald Warren Esq., Haddonfield, N.J.
Papanier, Nicholas Information
Orlando Woman Indicted for False Use of Seals of the U.S. Department of Homeland SecurityRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Maria V. Constantinou (40, Orlando) with two counts of false use of a seal of a department of the United States of America. If convicted, Constantinou faces a maximum penalty of 5 years in federal prison on each count.
According to the indictment, Constantinou falsely used the seal of the U.S. Department of Homeland Security on letters in 2009 and 2010 that purported to be from U.S. Citizenship and Immigration Services, a division of the U.S. Department of Homeland Security.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Citizenship and Immigration Services Fraud Detection Division. It will be prosecuted by Assistant United States Attorney Sara C. Sweeney.
Orlando Man Sentenced to Life in Prison for Sex TraffickingRead the Press Release
An Orlando resident was sentenced today to serve life plus five years in prison for forcing multiple minor and adult victims to engage in prostitution, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Florida Robert E. O’Neill.
Weylin O. Rodriguez, 29, was sentenced by U.S. District Judge Mary S. Scriven in the Middle District of Florida. In addition to his prison term, Rodriguez was sentenced to serve lifetime supervised release.
On Nov. 2, 2012, Rodriguez was found guilty by a federal jury of sex trafficking of a minor by force, fraud and coercion; using a firearm in furtherance of a sex trafficking crime; transporting minors over state lines for the purpose of engaging in prostitution through coercion and enticement; and being a felon in possession of a firearmAccording to evidence presented at trial, in December 2010, Rodriguez met a 15-year-old minor in Ybor City, Fla. Rodriguez offered to give the minor a ride home, but instead of taking her home, he drove her to Orlando and forced her to engage in prostitution.
The investigation revealed that beginning on Thanksgiving Day 2010, Rodriguez held two other female victims for several months and forced them into prostitution. In approximately January 2011, Rodriguez transported the girls between Orlando and Charlotte, N.C. for the purpose of prostitution.
In addition to the minors, Rodriguez recruited at least two adult victims by promising them jobs as models. Once the girls met with Rodriguez, he held them against their will and forced them into prostitution.
This case was investigated by the FBI, the Orlando Metropolitan Bureau of Investigation, the Orange County, Fla., Sheriff's Office and the Charlotte-Mecklenburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Stacie B. Harris of the U.S. Attorney’s Office for the Middle District of Florida and Trial Attorney Maureen Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and 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.
Orlando Man Sentenced to Life in Prison for Sex TraffickingRead the Press Release
Tampa, FL - U.S. District Judge Mary S. Scriven today sentenced Weylin O. Rodriguez (29, Orlando) to life plus 5 years in federal prison for sex trafficking of a minor by force, fraud and coercion; using a firearm in furtherance of a sex trafficking crime; transporting minors over state lines for the purpose of engaging in prostitution through coercion and enticement; and being a felon in possession of a firearm. Rodriguez was found guilty by a federal jury on November 2, 2012.
According to evidence presented at trial, in December 2010, Rodriguez met a 15- year-old minor in Ybor City. Rodriguez offered to give the minor a ride home, but instead of taking her home, he drove her to Orlando and forced her to engage in prostitution on Orange Blossom Trail. The investigation revealed that, on Thanksgiving Day 2010, Rodriguez held the female victims for several months and forced them into prostitution. In or about January 2011, Rodriguez transported the girls between Orlando and Charlotte, North Carolina for the purpose of prostitution. In addition to the minors, Rodriguez recruited at least two adult victims by promising them jobs as models. Once the girls met with Rodriguez, he held them against their will and forced them into prostitution.
This case was investigated by the Federal Bureau of Investigation, Metropolitan Bureau of Investigation, the Orange County Sheriff's Office, and the Charlotte-Mecklenburg Police Department. It was prosecuted by Assistant United States Attorney Stacie B. Harris and Department of Justice Trial Attorney Maureen Cain.
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."
Ohio woman pleads guilty to firearms trafficking chargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Della Scott,41, of Columbus, Ohio, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to engage in the business of dealing firearms without a license, and in the course of such business, to transport firearms in interstate commerce. The charge carries a maximum penalty of five years, a fine of $250,000, or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that between July 2003 and September 2007, Scott and others purchased firearms in the Columbus, Ohio, area and then transported at least two of them to Rochester, where they were resold. Two firearms purchased by Scott in Ohio were later recovered by law enforcement following investigations into unrelated criminal incidents, which occurred in 2005 and 2007. A co-conspirator, Leroy Williams, was convicted of unrelated drug trafficking and firearms offenses in 2007 and is currently serving an eight year prison term.
The plea is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives under the direction of Scott Heagney, Resident Agent in Charge and the Rochester Police Department under the direction of James Sheppard.Sentencing is scheduled for July 19, 2013 at 3:00 p.m. before Judge Siragusa.
New Orleans Postal Employee, Chanel M. Mcginnis, Charged with Embezzlement of Mail MatterRead the Press Release
CHANEL M. MCGINNIS, age 28, a resident of New Orleans, Louisiana, was charged today in a one-count Bill of Information with embezzlement of mail matter by a postal employee, announced U. S. Attorney Dana Boente.
According to court documents, it is alleged that on or about February 7, 2011, MCGINNIS, while being an employee of the United States Postal Service, did embezzle a first class letter addressed to W.B., a resident of Metairie, Louisiana, containing $450 in United States currency.
If convicted, MCGINNIS faces a maximum term of imprisonment of five (5) years, a fine of $250,000., and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the United States Postal Service- Office of Inspector General. The case is being prosecuted by Assistant U. S. Attorney Loan “Mimi” Nguyen.
(Download Bill of Information )
Michigan Computer Company OwnerSentenced for International Environmental,Counterfeiting CrimesRead the Press Release
A Michigan computer company and its owner were sentenced today to 30 months in prison and ordered to pay a $2 million dollar fine and restitution in the amount of $10,839.00 for trafficking in counterfeit goods and services and violating environmental laws, announced Barbara L. McQuade, United States Attorney for the Eastern District of Michigan.
McQuade was joined in the announcement by William Hayes, Acting Special Agent-in-Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Detroit and Randall Ashe, Special Agent-in-Charge of the Environmental Protection Agency's criminal enforcement program in Michigan.
U.S. District Judge David M. Lawson sentenced Mark Jeffrey Glover, 44, and his company, Discount Computers, Inc. (DCI) for trafficking in counterfeit goods and services. DCI was also sentenced for storing and disposing of hazardous waste without a permit. Glover pleaded guilty to the charges on behalf of his company and himself in October.
DCI, headquartered in Canton, Mich. with warehouses in Maryland Heights, MO., and Dayton, N.J., operated as a broker of used electronic components, such as computers and televisions. DCI resold working items and disassembled broken ones, selling them for scrap. A large part of DCI’s business involved exporting used cathode ray tube (CRT) monitors to Middle Eastern and Asian countries. Egypt prohibits the importation of computer equipment which is more than five years old. To evade this requirement, all three DCI locations replaced original factory labels on used CRT monitors with counterfeit labels which reflected a more recent manufacture date. Over a five-period, DCI sent at least 300 shipments to Egypt, with a total shipment value of at least $2.1 million, constituting more than 100,000 used CRTs monitors.
Federal law makes it illegal to knowingly use a counterfeit mark on or in connection with goods and services for the purpose of deceit or confusion. It is also illegal to store and dispose of hazardous waste, which includes certain electronic waste, or e-waste, without a permit. Glass from older CRT monitors is known to contain levels of lead, which is toxic hazardous waste. When deposited in a landfill the lead can leach out and contaminate drinking water supplies. As a result, these types of monitors are required to be disposed of as hazardous waste under the Resource Conservation and Recovery Act. By exporting older CRTs with fraudulent manufacture dates, Glover sent a large quantity of older e-waste overseas which was subject to improper recycling, increasing the potential for environmental and human exposure to hazardous materials.
“Mr. Glover and his company falsified labels to conceal the age of computer monitors and their potential for hazardous waste,” McQuade said. “We hope this case will encourage others to comply with laws designed to protect drinking water and prevent human exposure to toxic waste.”
"When potentially hazardous e-waste is not properly disposed of, human lives can seriously be impacted", said William Hayes, special agent in charge of HSI Detroit. "The investigation confirmed that the defendant repeatedly and illegally exported used cathode ray tubes overseas. Homeland Security Investigations stands with our law enforcement partners ready to prevent any company from ignoring U.S. controls to export hazardous e-waste."
“It is a serious and costly offense to abandon hazardous waste,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Detroit and Chicago. “Furthermore it is a serious offence to engage in the illegal export of e-waste as this has potential for environmental and human exposure to hazardous materials. It is because of these types of environmental and human health threats that the EPA has designated illegal export of e-waste one of its top six international priorities. Those who engage in this type of behavior put the public and the environment at risk, and will be prosecuted.”E-waste is a global concern because used electronic equipment contains more than 1,000 different substances including toxic heavy metals and organics that, if disposed of improperly, can cause significant pollution problems. Improper e-waste disposal is common in third world and developing countries because they are ill equipped for proper recycling, refurbishing, and disposal. It is also common in these countries to find black market recycling groups that extract valuable metals from e-waste without regard for the safety of their impoverished employees who are exposed directly to toxic materials.
The case was prosecuted by the U.S. Attorney's Office in the Eastern District of Michigan by Assistant U.S. Attorney Jennifer Blackwell. The case was investigated by agents of the U.S. Environmental Protection Agency's Criminal Investigation Division and U.S. Department of Homeland Security–Homeland Security Investigations, Detroit.
Medical Clinic Director, CEO Plead Guilty to Health Care Fraud, False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the married owner/director and chief executive officer of a Kansas City, Mo., medical clinic pleaded guilty in federal court today to health care fraud and filing a false tax return.
Carol Ann Ryser, 76, and Michael Earl Ryser, 68, both of Mission Hills, Kan., pleaded guilty before U.S. District Judge Greg Kays to the charges contained in a June 26, 2012 federal indictment.
Carol Ryser owned Health Centers of America-Kansas City, LLC (HCA), a medical clinic in Kansas City, Mo., that was closed yesterday as part of today’s plea agreement. HCA purported to specialize in the diagnosis and treatment of chronic diseases such as Lyme disease, chronic fatigue syndrome, fibromyalgia, and other auto immune diseases.
Carol Ryser, who was a medical doctor and the clinic’s medical director, surrendered her medical license today as a condition of her plea agreement. Carol Ryser may never again seek licensing to practice medicine in the United States and she may never be involved as an owner or employee (or in any other capacity) with any medical clinic, hospital or other health care provider. Michael Ryser was the CEO, chief administrator and vice-president.
Health Care Fraud
By pleading guilty today, the Rysers admitted that they engaged in fraudulent billing by “upcoding” and falsifying claims submitted to insurers (including Blue Cross Blue Shield, Cigna, United Healthcare and others, as well as government programs such as Medicare and Tricare) in an effort to be paid more than the amount to which HCA was entitled.
The Ryser’s scheme included: (a) billing for physician office visits when Carol Ryser was out of town; (b) billing for physician office visits when Carole Ryser had little or no involvement with the patient; (c) billing for physician office visits when the patient contact was by telephone call; (d) billing for physician-supervised services when no physician was on duty at the clinic; and (e) improperly billing for consultation services.
The federal indictment describes six variations of billing fraud and includes tables of claims demonstrating each type of billing fraud. For those claims specifically included in the indictment, the total amount billed on those claims was $359,168. The total amount that was actually paid on those claims by health care benefit programs was $51,789.
False Tax Return
The Rysers also admitted that they willfully filed a false tax return for the year 2006. They understated their gross receipts and substantially overstated their expenses for 2006.
The indictment included three tax counts alleging that the Rysers operated their business as a sole proprietorship and gross receipts were deposited into two bank accounts that Michael Ryser maintained and controlled. However, they reported only the gross receipts deposited into one bank account and just part of the gross receipts deposited into the second bank account.
The Rysers understated their $10,060,012 in combined gross receipts for 2006-2008 by a total of $2,501,802 – nearly 25 percent of the gross receipts for these three years. They overstated their expenses for 2006 by $9,462,145. The total tax loss for 2006-2008 was $615,749.
Under the terms of today’s plea agreements, Michael Ryser will be sentenced within a range of 24 to 30 months in federal prison without parole. Carol Ryser will receive a sentence of three years of probation, including six months of home detention. The Rysers must pay $51,789 in restitution to the health care benefit programs that were defrauded. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Thomas M. Larson and Lucinda Woolery. It was investigated by the Health and Human Services Office of Inspector General, the Department of Labor Employee Benefits Security Administration, the FBI, IRS-Criminal Investigation, the Defense Criminal Investigative Service and the Food and Drug Administration.
Man Sentenced for Sex Trafficking of A Minor, Conspiring to Produce Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 40-year-old man was sentenced for running a prostitution operation in the Twin Cities that exploited underage and young women. United States District Court Judge Joan N. Ericksen sentenced Arthur James Chappell, no known address, to 336 months in federal prison, followed by 20 years of supervised release, on two counts of sex trafficking a minor, one count of possession of child pornography, one count of conspiracy to possess child pornography, one count of conspiracy to produce child pornography, two counts of enticing travel for prostitution, two counts of transportation with intent to engage in prostitution, one count of conspiracy to entice travel for prostitution, and one count of conspiracy to transport with intent to engage in prostitution. Chappell, also known as AJ and J, was indicted on April 4, 2012, and was convicted on October 24, 2012, following trial.
After today’s sentencing, Michael Feinberg, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“ICE HSI”) St. Paul Field Office, said, “This sentence is the result of the great partnership ICE HSI has with the Bloomington Police Department and the Minnesota Bureau of Criminal Apprehension (“BCA”). Sex trafficking is an unmerciful crime, but because human trafficking is so widespread, no one entity can adequately address the problems it presents. Law enforcement agencies throughout Minnesota are committed to giving victims the help they need to come forward and help us end this terrible crime.”
The evidence presented at trial proved that from August 2006 through July 2007, Chappell ran a multi-state prostitution ring. In the summer of 2007, he recruited two girls under the age of 18 to engage in commercial sex acts as part of his business. In addition, Chappell possessed one or more items containing visual depictions of minors engaged in sexually explicit conduct, conspired with others to possess such depictions, and induced or coerced a child to engage in conduct for the purpose of producing child pornography. In July 2007, Chappell also enticed or coerced two adult females to travel in interstate commerce to engage in prostitution. Between August of 2006 and July of 2007, he conspired to persuade other women to travel in interstate commerce to engage in prostitution.
This case was the result of an investigation by the Bloomington Police Department, the BCA, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp and Special Assistant U.S. Attorney Colin P. Johnson.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.ice.gov/human-trafficking/Local Doctor Gets Max for Possession of Child PornographyRead the Press Release
HOUSTON - Bernard Albina, 73, of Houston, has been handed the statutory maximum federal sentence of 10 years following his conviction for possessing child pornography, United States Attorney Kenneth Magidson announced today. Albina entered a guilty plea Tuesday, Nov. 27, 2012.
Today, U.S. District Judge Lee Rosenthal took into consideration the plea agreement between the parties and handed Albina a total of 120 months in federal prison and further ordered him to pay a $75,000 fine. At the hearing, two mothers of Albina’s victims spoke and described the harm Albina caused. Judge Rosenthal then ordered Albina to serve the rest of his life on supervised release following completion of his prison term, noting she believed he still has, as the mother of one of the victims stated, the demons which caused this behavior and suffers from a disconnect when it comes to his criminal behavior. Albina will also be ordered to register as a sex offender.
Arrested on the federal charges on Jan. 23, 2012, Albina was ordered into custody after the court heard evidence regarding the investigation and charges. At that time, the judge found Albina to be a danger to the community and that due to his considerable assets and possible links to Lebanon, he was a flight risk.
Albina previously admitted that from at least January 2003 he inappropriately associated with several young boys. During this time, he admitted he photographed two of those boys and the pictures displayed their genitals in a lascivious exhibition.
In July 2009, search warrants were executed at several locations associated with Albina which resulted in the discovery of numerous items including CDs, DVDs, video tapes and printed images found to include child pornography. Today, Albina admitted to possessing a total of 10 videos and 326 images containing child pornography.
Albina will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
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."
The charges against Albina are the result of an investigation conducted by the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorney Sherri L. Zack.
Licensed Gun Dealer in Jersey County Convicted of Knowingly Selling Guns to A Drug UserRead the Press Release
Jerseyville resident John L. (“Jay”) Jones, II, 33, pled guilty in federal district court this week to selling firearms to someone he knew to be a regular user of cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The one-count Information charged that in May of 2010, Jones sold five firearms to another person, knowing and having reasonable cause to believe that the purchaser was an unlawful user of a controlled substance. The crime is punishable by as much as 10 years imprisonment, a $250,000 fine, and a three-year term of supervised release.
Jones was formerly the operator of Discount House, Inc. – a federal firearms licensee (FFL) in Jersey County, Illinois – and was working in that capacity when he illegally sold the firearms. Jones’ sentencing is currently set for June 28, 2013.
As a result of his conviction and as one of the conditions of his bond, Jones is prohibited from possessing any firearms or ammunition and can have no involvement in the sale or purchase of firearms or ammunition at Discount House.
This case was investigated by agents of the United States Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and Explosives, working in concert with agents of the Federal Bureau of Investigation, the Internal Revenue Service, officers of the Jersey County Sheriff’s Department, and the Illinois State Police. Assistant United States Attorney Nathan D. Stump is prosecuting the case.
Leominster Man Pleads Guilty to Firearms OffensesRead the Press Release
BOSTON – A Leominster man was convicted Friday in U.S. District Court in Worcester for various firearms offenses.
Benjamin Batista, 32, pleaded guilty before U.S. District Judge Timothy S. Hillman to being a felon in possession of a firearm, being a felon in possession of ammunition, and possession of an unregistered firearm silencer. Sentencing is scheduled for June 13, 2013. For the charges of possessing a firearm and ammunition, the sentence under the statute is a maximum of 10 years in prison, to be followed by three years of supervised release and a $250,000 fine. For the charge of possessing a silencer, the sentence under the statute is a maximum of 10 years in prison, to be followed by three years of supervised release and a $10,000 fine.
In November 2010, Batista, a previously convicted felon, arranged for the sale of a semiautomatic firearm to a cooperating witness. On Dec. 20, 2010, Batista sold a silencer and 43 rounds of ammunition for the semiautomatic firearm to the same cooperating witness. The silencer was not registered to Batista in the National Firearms Registration and Transfer Record.
United States Attorney Carmen M. Ortiz; Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Chief Robert A. DeMoura of the Fitchburg Police Department; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Cory Flashner of Ortiz’s Worcester Branch Office.
Leader of Marijuana Trafficking Organization Sentenced to Life on Racketeering ChargesRead the Press Release
Drug Courier Kidnapped and Dismembered in Bathtub; Another Gang Leader MurderedBaltimore, Maryland - U.S. District Judge William D. Quarles sentenced Jean Brown, age 43, of Jamaica, to life in prison in connection with a conspiracy to distribute marijuana as one of the leaders of the Brown Organization, a criminal organization whose members distributed narcotics primarily in Maryland, Pennsylvania, New York, Arizona and Jamaica.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Jean Brown ran a lucrative drug organization that committed wanton and brutal acts of violence,” said U.S. Attorney Rod J. Rosenstein. “In 2009, after authorities seized $250,000 in drug proceeds from courier Michael Knight, Brown and her associates kidnapped Knight, dismembered him in a bathtub and threw his remains in the trash.”
“Today’s life sentence of Jean Brown for her drug conspiracy, kidnapping and murder in aid of racketeering is a victory for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and two countries. HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities,” said William Winter, special agent in charge of HSI Baltimore. “HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to evidence presented at their seven-day trial, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
Brown employed the truck drivers, arranged for the distribution of the marijuana on the East Coast – principally in Baltimore and Pittsburgh, used couriers to smuggle the drug proceeds to Jamaica, and sent cash back to the Southwest to pay for the next load.
Witnesses testified that on December 16, 2009, Brown, Smith and co-defendants Peter Blake, Hubert Downer and Dean Myrie kidnapped Michael Knight, one of Brown’s money couriers. Knight was holding $1 million for the organization, but when the money was collected $250,000 was missing. Myrie drove Knight, who was bound with a telephone cable, Brown and other drug members to an apartment in White Marsh, Maryland, where Brown and others interrogated Knight. After Knight was not able to provide the location of the money, Brown ordered Downer and Blake to kill Knight. Knight was stabbed to death in the bathtub. Over the next few days Brown, Myrie, Downer and Blake dismembered Knight and disposed of his body in dumpsters in the Loch Raven and Liberty Road areas of Baltimore County.
In addition to the murder of Knight, the evidence showed that after threatening Smith on several occasions, in April 2010, Brown offered to pay co-conspirators to murder Smith in Tijuana, Mexico. Witnesses testified that one of the co-conspirators killed Smith, shooting him in the head.
Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Hubert Downer, a/k/a “Doc” and “Michael Reid,” age 51, of Jamaica; and Peter Blake, age 55, of Jamaica have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Last Defendant Sentenced in Massive International Telecommunications Fraud CaseRead the Press Release
Fraud Extended to United Kingdom, Spain, Lebanon, France and the United Arab Emirates
DALLAS — Thomas Francis Quinn, 76, was sentenced Wednesday by U.S. District Judge Jorge A. Solis to 84 months in federal prison, and then remanded into federal custody, for his role in a conspiracy to defraud two British telecommunications companies of more than $60 million. Quinn, a U.S. citizen who resided in France and maintained residences in other foreign countries, pleaded guilty to one count of wire fraud. Quinn was the last defendant convicted in the case to be sentenced. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Other defendants convicted and sentenced in the case are:
Michael Signoretto, 74, of Dallas. Following a two-week trial, Signoretto was convicted on one count of conspiracy to commit wire fraud and one count of conspiracy to obstruct an official proceeding. He was sentenced in June 2012 to 84 months in federal prison and ordered to pay $50,700,400 in restitution.
Steven Roy Jamieson, 55, of Plano, Texas. Jamieson pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced to 48 months in federal prison and ordered to pay $63,693,178 in restitution.
Robert William Moore, 48, a United Kingdom citizen, who resided in Poland and Dubai. Moore pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit bankruptcy fraud. He was sentenced to 84 months in federal prison.
Jeffrey John Hemmer, 48, of Dallas, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced to 24 months in federal prison and ordered to pay $63,693,178 in restitution.
David William Price, a U.K. citizen, is charged in the conspiracy, but remains a fugitive.
According to evidence presented at trial, including voluminous bank/financial records from multiple countries and intercepted telephone communications, as well as documents filed in the case, the defendants ran a conspiracy to defraud two British telecommunications companies, British Telecom (BT) and MCI (now Verizon) out of more than $60 million.
The conspirators committed the fraud by purchasing a London business, London Digital Limited (LDL), that had pre-existing contracts and favorable credit terms with BT and MCI. Over an 18-month period from late 2003 to June 2005, the conspirators used LDL to quickly buy increasing amounts of “air time” from the telecom companies that they would sell at a loss to other wholesale companies, and then, when they were doing more than $20 million per month in business, put their London company into bankruptcy and walked away with three months’ worth of revenues that should have been paid to the telecom companies.
The conspirators also created two shell companies, Nationwide Call Company (NCC) in Dallas and FOCOS Electronics in Marbella, Spain, to covertly move the proceeds of their fraud to Aston Rothbury, a private “bank” in London operated by a convicted money launderer. From London, the conspirators had their fraud proceeds directed to three bank accounts in Beirut, Lebanon, and from there the funds were disbursed to accounts in numerous countries, including France, Kenya, Ireland, the United Kingdom, Poland, the United States, and Dubai in the United Arab Emirates. As part of their plan to keep the fraud secret, the conspirators utilized fake passports, spoke about the fraud on prepaid “bat phones” and referred to each other with predetermined code names.
In late 2005, the victim companies brought a federal civil action in Hammond, Indiana, in an attempt to uncover the truth of what was behind the suspicious bankruptcy of LDL. As part of the federal case, the victim companies took the deposition of Jeffrey Hemmer on four occasions between late 2005 and late 2008. Behind the scenes, Quinn and his co-conspirators waged a prolonged effort to obstruct this federal civil case in order to prevent the victims from exposing the criminal conspiracy and everyone involved in it. Starting with a meeting of the conspirators in a Paris hotel, there was a concerted effort to get Hemmer to lie under oath in the Indiana proceedings or “take a vacation” – the conspirators’ code for fleeing the United States – so that he could not give deposition testimony. On four occasions between July and December 2008, Signoretto dropped four packages containing thousands of dollars at the concierge desk and valet stand at a downtown Dallas hotel, for pickup by Hemmer. Unbeknownst to the conspirators, however, Hemmer had begun cooperating with the FBI and Internal Revenue Service Criminal Investigation agents investigating the LDL case. Beginning with consensual recordings of Hemmer’s telephone calls, the investigating agents eventually obtained court-ordered wiretap interceptions of the telephones of Jamieson and Signoretto. These intercepted calls clearly implicated Quinn and his co-conspirators in the effort to obstruct the Indiana federal case, as well as the underlying LDL fraud.
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 www.stopfraud.gov
Internal Revenue Service Criminal Investigation and the FBI investigated. Criminal Chief Assistant U.S. Attorney Chad Meacham and Assistant U.S. Attorneys Errin Martin and Stephen Fahey prosecuted.
Lake Wales Registered Sex Offender Convicted of Enticement of A Minor and Production of Child PornographyRead the Press Release
Tampa, FL - U.S. Attorney Robert E. O'Neill announces today that a federal jury found Arnold Maurice Mathis (41, Lake Wales) guilty of one count of enticement of a minor to engage in sexual activity, one count of production and attempted production of child pornography, one count of attempted production of child pornography, and one count of commission of these offenses while required to register as a sex offender. Mathis faces a mandatory penalty of life plus ten years in federal prison. His sentencing hearing is scheduled for June 19, 2013.
According to testimony and evidence presented at trial, between November 2004 and January 2005, Mathis used a cell phone to entice a 14-year-old minor to engage in sexual activity. He initially met the minor at a high school basketball game in Auburndale. Mathis sexually assaulted that minor victim at least three times. Between May and November 2011, Mathis persuaded and attempted to persuade two 16-year-old minors to engage in sexually explicit conduct for the purpose of producing visual depictions of the activity. Mathis met one of the minors at Higher Praise Ministries Church in Lake Wales, where Mathis volunteered with the youth group. He met the other minor at a basketball game in Polk County. Mathis introduced himself to each of the three victims as a pastor, offered to be their godfather, and promised them food, money, and basketball shoes. Mathis was previously pastor of St. City Power & Praise Church in Winter Haven.
At the time of the offenses, Mathis was required by Florida law to register as a sex offender based on a 1994 conviction for lewd & lascivious assault on a child, in Leon County, Florida.
This case was investigated by the Federal Bureau of Investigation, the Polk County Sheriff's Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Stacie Harris.
It is another case 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.
Justice Department to Invest $20 Million in Firearm Background Check System ImprovementsRead the Press Release
The Justice Department’s Office of Justice Programs (OJP) is planning to invest more than $20 million to strengthen the firearm background check system by improving states’ abilities to share information with the National Instant Criminal Background Check System (NICS). OJP’s Bureau of Justice Assistance (BJA) and Bureau of Justice Statistics (BJS) are providing funding for three grants to support state, territorial and tribal efforts to reduce information gaps and make instantly available to NICS all records prohibiting the purchase or possession of firearms.
“As part of President Obama’s comprehensive plan to reduce gun violence, the Administration is committed to enhancing and strengthening the national criminal record system in support of stronger firearm background checks,” said Attorney General Eric Holder. “The Department of Justice intends to take immediate and effective action to work with states to fill gaps in information currently available to the NICS system.”
The NICS background check system is the most efficient and effective way to keep guns out of the hands of dangerous individuals, but in order to work, the system must have timely and accurate information about these individuals. States are a critical source for several key categories of relevant records and data, including criminal history records and records of persons prohibited from having guns because of domestic violence or for mental health reasons.
The grants would be used to improve access to and reporting of prohibiting mental health information such as involuntary commitments to mental health facilities, felony convictions as well as misdemeanor convictions of domestic violence, domestic violence restraining orders and immediate access to active felony and misdemeanor warrants. The grants will also support upgrades and enhancements to electronic submissions of fingerprints to state and federal systems as well as linking of arrest and disposition. Funding will be provided under National Criminal History Improvement Program (NCHIP), NICS Act Record Improvement Program (NARIP), and a new, one-time initiative called, Improving the Completeness of Firearm Background Checks through Enhanced State Data Sharing. This new initiative creates a competitive grant program designed to incentivize states, territories and tribes to share information with NICS by closing information gaps that inhibit complete and accurate background checks.
Since 1995, the BJS has provided grants and technical assistance to states to improve criminal history data availability for background checks and other purposes under the NCHIP. In 2009, after the Virginia Tech shootings, BJS launched the NARIP, addressing information requirements of NICS firearm background checks and requiring states to make additional records available. BJA also supports information sharing among the nation’s state and local government agencies, directly supporting the mission of BJS and President Obama’s plan to reduce gun violence.
For more information on Improving the Completeness of Firearm Background Checks through Enhanced State Data Sharing, please visit: www.bja.gov/Funding/13FirearmBackgroundCheckSol.pdf.
For more information on President Obama’s plan to reduce gun violence, please visit: www.whitehouse.gov/issues/preventing-gun-violence.
Justice Department Files Consent Decree to Prevent and Address Racial Discrimination in Student Discipline in Meridian, Miss.Read the Press Release
The Justice Department announced that, jointly with the Meridian Public School District in Meridian, Miss., and private plaintiffs, it has filed a landmark consent decree to prevent and address racial discrimination in student discipline in district schools. If approved by the court, the proposed consent decree will resolve the department’s investigation into complaints that the district unlawfully and disproportionately subjects black students to suspension, expulsion and school-based arrest, often for minor infractions. In the course of the investigation, the department found that black students frequently received harsher disciplinary consequences, including longer suspensions, than white students for comparable misbehavior, even where the students were at the same school, were of similar ages, and had similar disciplinary histories. The consent decree would amend a longstanding federal school desegregation decree enforced by the United States, which prohibits the district from discriminating against students based on race.
“The American dream is rooted in education. In Meridian, that dream has long been delayed by discipline practices that deny students access to education,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “We commend the Meridian Public School District for taking this huge step toward ensuring that its schools are safe and welcoming to all students and that education is a road to success instead of a pipeline to prison.”
Under the consent decree, the district will take steps to create safe and inclusive learning environments in all Meridian schools, including providing students with supports and interventions before excluding them from school; limiting the use of discipline measures that remove students from the classroom; ensuring that discipline consequences are fair and consistent; establishing clear guidelines for when law enforcement intervention is appropriate; providing training to give teachers and administrators the tools necessary to manage their schools in a safe, effective and positive manner; and building data-driven monitoring and accountability systems.
“Punitive and discriminatory discipline policies prevent the promise of Brown v. Board of Education from being a reality today,” said Gregory K. Davis, U.S. Attorney for the Southern District of Mississippi. “This consent decree will help bring equal justice and opportunity back into reach for the children of Meridian.”
The consent decree:
- Limits exclusionary discipline such as suspension, alternative placement and expulsion, and prohibits exclusionary discipline for minor misbehavior;
- Prohibits school officials from involving law enforcement officers to respond to behavior that can be safely and appropriately handled under school disciplinary procedures;
- Requires training for school law enforcement officers on bias-free policing, child and adolescent development and age appropriate responses, practices proven to improve school climate, mentoring and working with school administrators ;
- Revises policies at the district’s alternative school to create clear entry and exit criteria and provide appropriate supports to speed students’ transitions back to their home schools;
- Requires enhanced due process protections in student discipline hearings;
- Expands use of a behavior and discipline management system known as positive behavior intervention and supports (PBIS) at all schools;
- Requires teachers and administrators to use developmentally appropriate tiered prevention and intervention strategies before removing students from instruction;
- Requires monitoring of discipline data to identify and respond to racial disparities;
- Requires training on all revised policies and procedures; and
- Implements measures to engage families and communities as partners in revising policies and as participants in regular school and community informational forums.
The division filed a related case against the Meridian Police Department, the Lauderdale County Youth Court and the state of Mississippi in October 2012, alleging that those defendants systematically violate the due process rights of students referred by the district. That case remains pending in the U.S. District Court for the Southern District of Mississippi.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, among other bases, in public schools is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Related Materials:
Meridian Consent Decree
Jury Convicts Springfield Man of Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been convicted in federal court of illegally possessing firearms.
Derick James Mack, 34, of Springfield, was found guilty on Tuesday, March 19, 2013 of two counts of being a felon in possession of a firearm.
Mack was in possession of a Hi-Point .45-caliber handgun on Feb. 10, 2012 and in possession of a Mosberg 12-gauge shotgun on March 14, 2012.
Police officers executed a search warrant at a Springfield hotel room that was rented by Mack on Feb. 10, 2012. Officers found the loaded handgun under a pillow on the bed. Officers also found a magnetic key holder containing methamphetamine, a butane lighter, small zip lock bags and a glass pipe in a men’s toiletry bag on a nightstand.
Police officers executed a search warrant at a Springfield residence where Mack was staying on March 14, 2012. Officers found the loaded shotgun between the bed mattresses in the master bedroom and a shotgun shell on a nearby dresser.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mack has a prior felony conviction for assault.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for less than two hours before returning the guilty verdicts to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, March 18, 2013.
Under federal statutes, Mack is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Timothy A. Garrison and Ami Harshad Patel Miller. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Jury Convicts Springfield Man of Firearms used in Robberies; Faces at Least 55 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man faces at least 55 years in prison after being convicted in federal court of using firearms to rob two Springfield banks and a drugstore in November 2008.
Mark Joseph Morris, 49, of Springfield, was found guilty on Thursday, March 21, 2013, of three counts of possessing a firearm during a crime of violence. Morris earlier pleaded guilty (on Jan. 11, 2013) to committing the three robberies related to the firearm charges. Morris went to trial on the firearm charges claiming the gun he used in the robberies was a BB gun. Video surveillance at the banks and drug store confirmed Morris’ use of a firearm. However, the firearm used by Morris to commit the robberies was never recovered.
Morris admitted that he robbed Bank of America, 2633 W. College Rd., on Nov. 7, 2008. Evidence introduced during the trial indicated that Morris handed a note to a bank teller and then revealed a handgun concealed in his waistband. He tapped on the handgun with one hand and pointed to the cash drawer with the other. The teller removed a cash drawer and placed it on the counter. Morris took $3,208 from the drawer and ran out of the bank.
Morris also admitted that he robbed the Walgreens Drug Store at 1930 W. Grand St. on Nov. 17, 2008.
Morris also admitted that he robbed Bank of America, 710 W. Sunshine, on Nov. 21, 2008. Morris approached a bank teller and showed her a black pistol that was in his waistband. When the teller did not immediately respond, Morris removed the pistol from his waistband, pointed it at the teller and demanded, “Give me all your money.” The teller removed $8,957 from her teller drawer and placed it on the counter. Morris tucked the pistol back into his waistband, grabbed the cash from the counter, and ran out of the bank.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for less than two hours before returning the guilty verdicts to U.S. District Judge Richard E. Dorr, ending a trial that began Wednesday, March 20, 2013.
Under federal statutes, Morris is subject to a mandatory minimum sentence of 55 years in federal prison without parole for the firearms violations and up to 70 years in federal prison without parole for the robberies, plus a fine up to $1.5 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull II and Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
Jefferson County, Kentucky, Alleged Serial Bank Robber Faces Federal ChargesRead the Press Release
LOUISVILLE, Ky. – A Louisville man was charged by a federal grand jury this week, with robbing four banks, in Jefferson County, Kentucky, during a two week period, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the federal grand jury indictment, Robert Scott Manley, age 47, used force, violence, and intimidation when he robbed four banks in Jefferson County between December 20, 2012 and December 31, 2012. Count 1, of the indictment, charges Manley with taking $2,170.00 from the PNC Bank, located at 3910 Taylorsville Road, on December 20, 2012. Count 2, of the indictment, charges Manley with taking approximately $3,580.00 from the Chase Bank, located at 8120 New LaGrange Road, on December 24, 2012. Count 3, of the indictment, charges Manley with taking approximately $1,510.00 from the BB&T Bank, located at 10403 Dixie Highway on December 27, 2012, and Count 4 charges Manley with taking approximately $4,750.00 from the River City Bank, located at 2501 Bardstown Road. At the time of the robberies, all deposits were insured by the Federal Deposit Insurance Corporation (FDIC).
If convicted at trial, Manley faces a sentence of no more than 80 years in federal prison, a fine of $1,000,000., and a period of no more than five years of supervised release. Manley was arrested by U.S. Marshals on January 2, 2013.
This case is being prosecuted by Special Assistant United States Attorney Caryn M. Nieman and was investigated by Louisville Metro Police and the Federal Bureau of Investigation (FBI).
Illegal Alien Living in Taylor County Sentenced to 84 Months in Prison for His Role in A Sex Trafficking Ring Involving Juveniles in A Four County AreaRead the Press Release
BOWLING GREEN, Ky. – An Illegal Alien living in Taylor County, Kentucky was sentenced to serve 84 months in prison followed by five years of supervised release, by Chief Judge Joseph H. McKinley, Jr., in United States District Court this week, for conspiracy to engage in sex trafficking of two minors in Taylor, Green, Adair and Barren Counties, Kentucky announced David J. Hale, United States Attorney for the Western District of Kentucky.
Adulfo De Aquino-Cancino, age 28, pleaded guilty on December 18, 2012, to conspiracy to benefit financially from a prostitution venture that recruited, enticed, harbored, transported, provided, and obtained by any means two minors who had not attained the age of 18 years. De Aquino-Cancino pleaded guilty to a term of imprisonment of 84 months and a five year to life term of supervised release before Chief District Judge Joseph H. McKinley, Jr. As part of the plea agreement, the United States agreed to dismiss counts 2, 3, and 4 of the grand jury indictment.
According to the plea agreement, between August 2011 to January 2012, De Aquino-Cancino engaged in a conspiracy where the he knowingly benefitted, financially or by receiving anything of value, from participating in a venture that recruited, enticed, harbored, transported, provided, and obtained by any means a person, that the defendant knew, or recklessly disregarded the fact, that the person had not attained the age of 18 years and would be caused to engage in a commercial sex act. The conduct of the venture was in or affecting interstate commerce because De Aquino-Cancino communicated with the minors via cellular telephone and text messages that traveled in interstate commerce. De Aquino-Cancino was indicted by a grand jury meeting in Bowling Green, Kentucky on May 16, 2012.
According to an Affidavit filed by a Special Agent with the United States Department of Homeland Security Investigations, in support of a Criminal Complaint, between August 2011, and January 2012, De Aquino-Cancino recruited females, arranged for commercial sexual encounters, transported, and benefited financially from commercial sex transactions involving two minor females, neither having reached the age of 18, and several adult females in Green, Taylor, Adair, and Barren Counties in the Western District of Kentucky.
On January 19, 2012, De Aquino-Cancino was interviewed by a Kentucky State Police Detective. The law enforcement officers advised De Aquino-Cancino of his constitutional rights as set out in Miranda. He stated that he knew several girls in the Campbellsville, Kentucky area that were prostitutes and that De Aquino-Cancino, the defendant, would go to Campbellsville, pick the prostitutes up, and take them to different locations where they performed commercial sex acts with the defendant’s friends. The prostitutes would in turn pay De Aquino-Cancino for driving them to the locations. De Aquino-Cancino identified the two juveniles and affirmed that he knew what he was doing with these young girls was illegal. Following this interview, De Aquino-Cancino was arrested by Kentucky State Police.
This case was prosecuted by Assistant United States Attorney Joshua D. Judd and was investigated by the Kentucky State Police and the United States Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
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."
Homestead Resident Sentenced for Tax Refund FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced today’s sentencing of defendant Kilwoind Jones, 28, of Homestead, Florida, on charges of theft of government monies resulting from her participation in a stolen identity tax refund scheme. At today’s hearing, U.S. District Judge William J. Zloch sentenced Jones to 32 months in prison, to be followed by three years of supervised release.
On October 5, 2012, a federal grand jury charged Kilwoind Jones with receiving stolen U.S. Treasury refund checks having forged signatures, with possessing stolen mail, and theft of government money. On January 10, 2013, Kilwoind pled guilty to Count 7 of the Superseding indictment, which charged the defendant with theft of government property, and Count 10 of the Superseding Indictment, which charged the defendant with aggravated identity theft.
During the plea hearing, Kilwoind admitted to receiving three stolen U.S. Treasury tax refund checks and to depositing the three stolen U.S. Treasury tax refund checks with the forged signatures into her bank account.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the U.S. Postal Inspection Service and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
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.
Harrisburg Man Pleads Guilty to Possessing Crack Cocaine and Carrying A Loaded Firearm During A Drug Trafficking CrimeRead the Press Release
Remus Octavris Henning, 34, of Harrisburg, Illinois, pled guilty today in United States District Court in Benton to charges that he possessed crack cocaine with intent to distribute it and that he carried a loaded .45 caliber firearm during and in relation to that crime, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The offenses occurred on July 20, 2012, in Harrisburg.
Sentencing was set for July 11, 2013, at 10:00 a.m. at the United States Courthouse in Benton. At that time, Henning faces up to 20 years’ imprisonment, a $1 million fine, and 3 years to life on supervised release following his incarceration on the crack cocaine charge and a consecutive 5 years to life, a $250,000 fine, and 5 years supervised release on the firearm charge.
Henning has been held in the custody of the United States Marshal since his arrest on federal charges in November 2012. Following the hearing, he was returned to the custody of the Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Harrisburg Police Department, with the assistance of the Saline County Sheriff’s Department through its participation in the task force.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Greece man arrested; charged with production of child pornographyRead the Press Release
ROCHESTER, N.Y.- U.S. Attorney William J. Hochul, Jr. announced today that Terrance Junot III, 36, of Greece, N.Y., was arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum sentence of 15 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the defendant engaged in a series of sexually explicit online communications with a 13 year old child. During those communications, Junot persuaded the child to produce sexually explicit photographs of themself which they then sent to him over the internet. During these chats, the defendant also sent sexually explicit photos of himself to the child.
The case came to the attention of law enforcement after the child’s mother found this material on the child’s phone. She recognized the defendant as someone who was known to the family, and took the phone to the Greece Police who began an investigation. In the course of their investigation, Greece Police executed several search warrants and searched the victim’s cell phone. Following their discovery of sexually explicit pictures of the victim, Greece Police contacted the FBI Cyber-Crimes Task Force for assistance.
“This case is another example of why it is so important for parents to monitor the computer and cell phone usage of their children,” said U.S. Attorney Hochul. “The victim’s mother checked the her child’s cell phone, found the photographs and immediately reached out to police. As in this case, if you see something, please say something and then law enforcement can do something.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jonathan W. Feldman. Junot is being detained pending a detention hearing March 25, 2013 at 4:00 p.m. before Judge Feldman.
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 Criminal Complaint is the culmination of an investigation on the part of Officers of the Greece Police Department, under the direction of Chief Todd Baxter, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Four Police of Puerto Rico Officers Indicted on Federal Civil Rights, Obstruction of Justice and Perjury ChargesRead the Press Release
A superseding indictment against four Police of Puerto Rico (POPR) officers was announced today by Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division; Rosa Emilia Rodriguez-Velez, U.S. Attorney for the District of Puerto Rico; and Carlos Cases, Special Agent in Charge of the FBI San Juan Field Office.
POPR Lieutenant Erick Rivera Nazario and Officer David Colon Martinez were indicted on civil rights charges alleging that they violated the constitutional rights of Jose Irizarry Perez while he was celebrating the local election results at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008. Rivera was also charged with violating the civil rights of Irizarry Perez’s father, Jose Irizarry Muniz. In addition, Rivera, Colon, Officer Miguel Negron Vazquez and Sergeant Antonio Rodriguez Caraballo were indicted for obstruction of justice and making false statements to the FBI and a federal grand jury.
According to the 18 count superseding indictment, while Colon held and restrained Irizarry Perez, Rivera and another POPR officer assaulted Irizarry Perez with their hands and a police baton, which resulted in bodily injury to Irizarry Perez. The superseding indictment alleges that Irizarry Perez was thereby deprived of his right to be free from unreasonable seizures by those acting under color of law. Although Irizarry Perez died as a result of injuries he sustained on Nov. 5, 2008, the superseding indictment does not include charges that his death resulted from the defendants’ conduct. Rivera, who was a supervisor at the time of the incident, was also charged with failing to intervene and failing to keep Irizarry Perez and his father from harm when an officer whom Rivera supervised assaulted the victims in Rivera’s presence.
In addition, the superseding indictment alleges that all four of the charged officers made false statements concerning the incident to the FBI and to the federal grand jury which had been investigating the incident. Colon and Negron were also charged with obstruction of justice for submitting false police reports and for providing misleading information to the Puerto Rico prosecutor that initially investigated the matter. Rivera was additionally charged with obstruction of justice for submitting a false police report, and Rodriguez was charged with obstruction of justice for providing misleading information to the Puerto Rico prosecutor.
If convicted, Rivera faces a maximum penalty of 10 years in prison for each of three charged counts of civil rights violations; a maximum of 20 years in prison for one charged count of obstruction of justice by submitting a false police report; and a maximum penalty of five years in prison for one charged count of making a false statement to the FBI and one charged count of making a false declaration to the grand jury.
If convicted, Colon faces a maximum penalty of 10 years in prison for one charged count of a civil rights violation; a maximum of 20 years in prison for one charged count of obstruction of justice by submitting a false police report and two charged counts of providing misleading information to the local prosecutor; and a maximum penalty of five years in prison for one charged count of making a false statement to the FBI and one charged count of making a false declaration to the grand jury.
If convicted, Negron faces a maximum penalty of 20 years in prison for one charged count of obstruction of justice by submitting a false police report and one charged count of providing misleading information to the local prosecutor; and a maximum penalty of five years in prison for one charged count of making a false statement to the FBI and one charged count of making a false declaration to the grand jury.
If convicted, Rodriguez faces a maximum penalty of 20 years in prison for one charged count of obstruction of justice by providing misleading information to the local prosecutor; and a maximum penalty of five years in prison for one charged count of making a false statement to the FBI and one charged count of making a false declaration to the grand jury.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the San Juan Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jose A. Contreras from the U.S. Attorney’s Office for the District of Puerto Rico and Senior Litigation Counsel Gerard Hogan and Trial Attorney Shan Patel from the Civil Rights Division of the U.S. Department of Justice.
Fort Washington Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Wayne Glymph, age 46, of Fort Washington, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), cocaine base and heroin; and being a felon in possession of ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his guilty plea, beginning in January 2011, Glymph, co-defendant Samuel Braxton and other conspirators sold PCP, heroin and crack to drug customers in Prince George's County, Maryland, and in the Washington, D.C. metropolitan area. Glymph and others used Braxton’s apartment and a bowling alley in Temple Hills, Maryland to store and distribute narcotics. Glymph often pooled money with Braxton to obtain the drugs, which Glymph and Braxton then redistributed to their customers. Glymph was responsible for distributing between one and three kilograms of PCP, between 28 and 112 grams of crack, and between 400 and 700 grams of heroin.
On February 23, 2011, law enforcement agents executed a search warrant at Glymph’s residence and seized approximately 19 grams of heroin, 10 grams of crack, 25 grams of marijuana, a four-ounce bottle containing PCP residue, assorted drug paraphernalia, $23,626, a diamond engagement ring, a pouch containing two loaded 9mm pistol magazines, six loaded .40 caliber pistol magazines, an empty .40 caliber pistol magazine, a shotgun shell and 11 .40 caliber cartridges. Glymph had been previously convicted of a felony and was prohibited from possessing the guns and ammunition.
Samuel Braxton, a/k/a Fats, age 44, of Temple Hills previously pleaded guilty to his participation in the conspiracy and awaits sentencing. A total of 10 defendants have pleaded guilty to date to charges arising from the drug conspiracy.
United States Attorney Rod J. Rosenstein commended the DEA and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Former Youth Minister Sentenced to 27 Years in Prison for Enticing Minors to Engage in Sexual ConductRead the Press Release
LAFAYETTE, La. – U.S. Attorney Stephanie A. Finley announced today that a former youth minister and Half Back Media owner Eric Michael Manuel, 23, of Lafayette was sentenced to 27 years in prison by U.S. District Court Judge Elizabeth E. Foote for enticing minors to engage in criminal sexual activity. Manuel also is required to complete 15 years of supervised release.
A federal grand jury indicted Manual in January 2012 on 18 counts of production of child pornography and two counts of using a facility of interstate commerce to persuade a minor to engage in criminal sexual acts.
In the factual basis for the guilty plea, Manuel admitted he would text underage boys to convince them to engage in sexual acts. Manuel also would pay the boys to allow him to perform oral sex upon them. The defendant attempted to entice a third boy to engage in sexual conduct with him, but the boy refused.
Additionally, Manuel admitted to creating a Facebook page in the name of a young girl, Emily Brandt. While using the false persona of Emily, Manuel convinced 18 boys between the ages of 13 and 17 to produce sexually explicit images and videos of themselves and send them to him. When one boy refused to send the sexually explicit images to Manuel, he threatened the boy.
The FBI-Lafayette Resident Agency, the Louisiana State Police, and the Lafayette Police Department investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (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.
Investigators are available at all hours to answer hotline calls concerning child exploitation. The Lafayette FBI office number is (337) 233-2164.
Former Pittsburgh Police Chief Charged with Conspiracy, Failure to File Federal Tax ReturnsRead the Press Release
PITTSBURGH, Pa. - Former Pittsburgh Police Chief Nathan E. Harper has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and willful failure to file income tax returns, United States Attorney David J. Hickton announced today.
The five-count indictment named Harper, 60, of Pittsburgh, Penn.
According to the indictment, Harper was the Chief of the City of Pittsburgh Police Department. From 2009 to 2012, he caused at least $70,628.92 in checks and cash received by the Special Events Office of the Department to be diverted to two accounts at the Greater Pittsburgh Police Federal Credit Union. Using Visa Debit cards, Harper obtained more than $31,000 in ATM withdrawals and debit purchases, all for his personal benefit. Harper also failed to file federal tax returns for the years 2008 through 2011.
The law provides for a maximum total sentence of nine years in prison, a fine of $650,000, 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 Attorneys Robert S. Cessar and Lee J. Karl are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation 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.
Former Owners of Bethany Nursing Home Pay $1.75 Million to Settle Claims of Equity SkimmingRead the Press Release
Oklahoma City, Oklahoma -- Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced today that JOHN V. RICH and LaWANDA J. RICH, from Tyler, Texas, and EDWIN L. GAGE and ELAINE R. GAGE, from Muskogee, Oklahoma, paid $1,750,000 to settle claims of equity skimming on a project insured by the United States Department of Housing and Urban Development ("HUD").
"HUD insured this project and expected the defendants would abide by their promises that they would use the assets and income from the project appropriately," said U.S. Attorney Coats. "Attempts to hide behind various corporate forms to evade responsibility will not shield the responsible individuals from liability for misuse of HUD program funds. Rather, as these are the public's tax dollars at issue, we will work hard to pursue cases to safeguard the integrity of federal programs."
Regulatory Background
Pursuant to the National Housing Act (the "Act"), HUD insures mortgages to facilitate the construction and rehabilitation of nursing homes, intermediate care facilities, and assisted living facilities. Regulatory agreements are an essential component of the federal financing scheme for projects under the Act. As part of the agreement, HUD agrees not to pursue personal liability for repayment of a mortgage in return for an agreement from mortgagors to operate the project in accordance with the regulatory agreements, which restrict the use of project income and assets. Equity skimming occurs when any part of the rent, assets, proceeds, income, or other funds derived from the project covered by the mortgage are used for any purpose other than to meet actual or necessary expenses of the project.
Background of Litigation
On September 13, 2010, the United States filed a civil Complaint on behalf of the HUD styled United States v. John V. Rich, LaWanda J. Rich, Edwin L. Gage, Elaine R. Gage, Virginia L. Moore, and David E. Forgy, CIV-10-990-M (W.D. Okla.). In this suit, the United States sought recovery of assets and income of the Center that was used in violation of the terms and conditions of the HUD regulatory agreements.
In February 1997, HUD had insured a mortgage on a nursing home in Bethany, Oklahoma, called Heartland Health Care Center of Bethany (the "Center"), which required a HUD regulatory agreement. At the time of the mortgage, the six individual defendants were the owners of the parent company and the officers/directors of the management company that owned the property holding company. After the project experienced financial trouble, the mortgage went into default and HUD foreclosed on the loan. Further, the ownership and management entities declared bankruptcy.
An audit by HUD's Office of Inspector General reported that project revenue was used in violation of the HUD regulatory agreement, the books and records did not support the Center’s expenditures, and the Center officials could not supply documents to support millions of dollars in project revenue.
In 2007, David E. Forgy, an executive for the Center, was indicted by a federal grand jury on charges including equity skimming in United States v. David E. Forgy, Case No. 07-CR-74-M (W.D. Okla.). In September 2007, Forgy pled guilty to one count of making a false claim and one count of misprision of a felony related to the civil defendant’s misuse of Center income and assets. In May of 2008, he was sentenced to serve 12 months and one day in prison, followed by three years of supervised release.
Resolution
In order to resolve the claims by the United States, the defendants agreed to a settlement that calls for the Riches and Gages to pay $1,750,000 to the United States. In reaching this settlement, the defendants did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was conducted by auditors and agents of the United States Department of Housing and Urban Development Office of Inspector General and was prosecuted by Assistant United States Attorneys Scott Maule and Tom Majors.
Former Oklahoma Sheriff’s Deputy Pleads Guilty to Making False Statements to the FBIRead the Press Release
Dennis Frisbie Jr., 33, former deputy with the Muskogee County, Okla., Sheriff’s Office, who was assigned as a detention officer at the Muskogee County Jail (MCJ), pleaded guilty today in U.S. District Court for the Western District of Oklahoma to one count of making material false statements to the FBI.
“Law enforcement officers who make false statements erode the trust of the people they have sworn to protect,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. “The Civil Rights Division is committed to prosecuting members of law enforcement who impede investigations of police misconduct.”
According to court documents, during the summer of 2011, FBI agents interviewed Frisbie as part of a federal investigation into allegations of inmate abuse at MCJ. Subsequently, on July 10, 2011, and then again on July 12, 2011, the defendant falsely reported to the FBI, both verbally and in a handwritten statement, that he been shot in the shoulder by an unknown subject in retaliation for his cooperation with this federal investigation. As a result of what the defendant reported, the FBI halted its investigation, out of concern that potential witnesses were in physical danger.
However, in September 2011, the defendant admitted that he had lied to the FBI and that he had not been shot by an unknown assailant. Instead, the defendant admitted that the gunshot wound was self-inflicted. The defendant acknowledged that he knowingly and willfully lied to the FBI and these lies were material, in that they directly affected the federal investigation into allegations of abuse at MCJ.
A sentencing date has not yet been set.
This case was investigated by the Muskogee Resident Agency of the Oklahoma City Division of the FBI and is being prosecuted by Trial Attorneys Fara Gold and Dana Mulhauser of the Civil Rights Division of the U.S. Department of Justice.
Former Lubbock, Texas, Resident Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Miles Robert Flinn, 26, formerly of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 10 years in federal prison and a 10-year term of supervised release, following his guilty plea in November 2012 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Cummings ordered that Flinn, who presently resides in Bradenton, Florida, surrender to the Bureau of Prisons on April 26, 2013.
According to the factual resume filed in the case, while living in Lubbock, Flinn used a file-sharing program on his computer in his residence to download images and videos from the Internet, including child pornography. Flinn was found to be in possession of the child pornography on his computer hard drive on July 26, 2011.
This matter was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lubbock Police Department’s Internet Crimes Against Children (ICAC) Task Force investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Former Hamilton Township, N.J., Official Sentenced to 18 Months in Prison for Laundering Bribe Money Paid to MayorRead the Press Release
TRENTON, N.J. – The former director of Community Planning and Compliance for Hamilton Township, N.J., who admitted laundering a $5,000 bribe from an insurance broker to township Mayor John Bencivengo, was sentenced today to 18 months in prison, U.S. Attorney Paul J. Fishman announced.
Robert Warney, 47, of Hamilton, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an Information charging him with one count of money laundering. U.S. District Judge Anne E. Thompson imposed sentenced today in Trenton federal court.
According to documents filed in this case and statements in court:On May 12, 2011, while serving as the director of Community Planning and Compliance for Hamilton Township, Warney accepted on Bencivengo’s behalf a $5,000 check from, Marliese Ljuba (identified in the Information to which Warney pleaded guilty as the Cooperating Witness), the health insurance broker for the Hamilton Township School District. Warney gave the proceeds of the check to Bencivengo in cash increments over several weeks. He, Bencivengo, and Ljuba agreed to have the check made payable to Warney’s spouse in order to conceal the payment. They also agreed that if anyone asked Warney or Ljuba about the check, they would say that Ljuba purchased a bedroom set from Warney’s spouse. A notation “Cherry Bedroom Set” was put on the check to support that story.
On Nov. 20, 2012, following a five-day trial before U.S. District Judge Anne E. Thompson, Bencivengo was found guilty of obstruction of commerce by extortion under color of official right, attempted obstruction of commerce by extortion under color of official right, two counts of violating the federal Travel Act, for causing the interstate travel and using facilities in interstate commerce in connection with the bribes that he accepted, and one count of money laundering in connection with $12,400 in bribes he allegedly solicited and accepted in exchange for his official influence in helping Ljuba maintain the position of health insurance broker with the township’s school district. On March 13, 2013, he was sentenced to 38 months in prison.
Warney also admitted that in March 2006 and November 2007, while serving as a member of the Hamilton Township Board of Education, he received corrupt payments from Ljuba in exchange for his official action and influence in voting in favor of the School Board entering into a three-year contract with the Ljuba and her employer for them to provide health insurance brokerage services to the school district. Warney admitted that on March 26, 2006, at a meeting of the school board, he voted in favor of entering into a three-year contract with Ljuba and that he received two payments of $5,000 in March 2006 and in November 2007– $10,000 total – from her in exchange for his official action.
In addition to the prison term, Judge Thompson sentenced Warney to two years of supervised release and fined him $2,000.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Acting Special Agent in Charge David Velazquez, for the investigation leading to today’s sentence.
The government is represented by Harvey Bartle, Attorney in Charge of the U.S. Attorney’s Office’s Trenton Office.
13-139
Defense counsel: William L. Hughes Esq., Atlantic City, N.J.
Former Financial Aid Advisor Arrested for Stealing over $62,000 in Student Financial AidRead the Press Release
BOSTON – A former financial aid advisor at a Brockton training school was arrested today for stealing over $62,000 in student financial aid.
Ayana Bean, 38, of Hyde Park was charged with theft or bribery concerning programs receiving federal funds.
Sullivan and Cogliano Training Centers (SCTC) is a for-profit career training school that offers certificate programs in information technology and other careers. The office of Federal Student Aid within the U.S. Department of Education administers financial aid to eligible students attending educational institutions around the country. Whenever an educational institution, such as SCTC, disburses federal financial aid funds by crediting a student’s account, and the total amount of all federal financial aid funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges, the institution must pay the resulting credit balance directly to the student, often in the form of what is known as a federal financial aid refund check.According to the complaint affidavit, in July 2010, Bean was employed by SCTC as a financial aid advisor. As part of her responsibilities, Bean also had access to SCTC students’ federal financial aid refund checks. On Aug. 15, 2012, a SCTC student contacted SCTC about the status of her federal financial aid refund check. SCTC staff determined that Bean had stolen the student’s check, forged the student’s endorsement, and deposited the check into a personal bank account. A subsequent investigation revealed that Bean had mishandled and stolen approximately 100 federal financial aid refund checks during her employment at SCTC. The complaint affidavit specifically identifies 77 financial aid refund checks, totaling over $62,000, that Bean allegedly stole between June 2011 and August 2012. ATM surveillance images show Bean depositing some of the checks into her personal bank accounts.
Bean was previously convicted in Suffolk Superior Court on multiple counts of uttering false and forged records and larceny. In that case, Bean stole just under $240,000 worth of federal financial aid refund checks from two local colleges. Bean was sentenced to two years in prison; she served six months of that sentence followed by three years of probation.
The maximum sentence under the statute is 10 years in prison, a $250,000 fine and three years of supervised release.
United States Attorney Carmen M. Ortiz; Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General; and Chief Emanuel Gomes of the Brockton Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Major Crimes Unit.The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former El Paso County Judge Sentenced to Federal Prison for Role in Conspiracy to Embezzle Federal Program FundsRead the Press Release
ALBUQUERQUE – Former El Paso County Judge Dolores Briones, 61, was sentenced this morning in the U.S. District Court for the Western District of Texas to 30 months in federal prison for conspiring to embezzle federal program funds, announced U.S. Attorney Kenneth J. Gonzales for the District of New Mexico and Special Agent in Charge Mark Morgan of the El Paso Division of the FBI.
Briones, who currently resides in Austin, Tex., will be on supervised release for three years after completing her prison sentence. She also is required to pay $36,000.00 in restitution.
In Dec. 2011, Briones pled guilty to conspiracy to commit theft or embezzlement of federal program funds. In entering her guilty plea, Briones admitted that, from June 2005 through Dec. 2006, she conspired with Ruben “Sonny” Garcia, Jr., then president of L.K.G. Enterprises, Inc. (LKG), and Cirilo “Chilo” Lara Madrid to accept bribes in exchange for her assistance to LKG involving a federal program grant from the Substance Abuse and Mental Health Services Administration (SAMHSA), an agency of the U.S. Department of Health and Human Services.
The SAMHSA grant included an evaluation component requiring that data related to the services provided by the Border Children’s Mental Health Collaborative (BCMHC), a healthcare program for severely mentally handicapped and emotionally disturbed children in El Paso County, be reported to SAMHSA. In Nov. 2005, El Paso County contracted with LKG to collect the necessary data. Subsequently, Garcia and Madrid agreed to pay $3000.00 a month to Briones, who was serving as the principal investigator for the SAMHSA grant, to assist and help LKG’s efforts to maintain and keep the contract. Thereafter, Garcia and Madrid, through LKG, made 12 monthly payments of $3,000.00 to an intermediary, who forwarded $2000.00 a month to Briones pursuant to her illegal agreement with Garcia and Madrid. Briones illegally obtained $24,000.00 through this scheme.
“Today’s sentencing of Briones sends a strong message regarding the FBI’s continued commitment to aggressively pursue individuals who have violated the public’s trust through their own greed, personal gain, and total abdication of the duties they were sworn to up-hold,” said Mark Morgan, Special Agent in Charge of the El Paso Division of the FBI. “Briones, holding one the highest positions of trust within our justice system, shattered the very essence of core values by her actions and has left a city questioning their confidence in the very officials they rely on to provide them protection and safety – this cannot be tolerated.”
This case was investigated by the El Paso Division of the FBI and was prosecuted by Steven C. Yarbrough, First Assistant U.S. Attorney in the District of New Mexico, and Assistant U.S. Attorneys William F. Lewis, Jr., and Juanita Fielden in the Western District of Texas.
Former Deutsche Bank Broker Sentenced in Manhattan Federal Court to 42 Months in Prison for Promoting Illegal Tax Shelters That Generated Billions of Dollars in Fraudulent Tax LossesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Tamara Ashford, the Principal Deputy Assistant Attorney General for the Tax Division, Department of Justice (“DOJ”), announced that DAVID PARSE, a former broker at Deutsche Bank (“DB”), was sentenced in Manhattan federal court today to 42 months in prison on tax obstruction and mail fraud charges stemming from his work in assisting lawyers from the Jenkens & Gilchrist (“J&G”) law firm and BDO Seidman (“BDO”) accounting firm in the design, marketing, and implementation of fraudulent tax shelters that allowed his clients to claim billions of dollars in fraudulent tax losses. Parse was sentenced by U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Preet Bharara said: “David Parse used his professional acumen to help his wealthy clients make an end-run around the IRS, depriving the treasury of billions in tax revenue. And for his role in this sprawling and massive fraud, he is now paying the price.”
Principal Deputy Assistant Attorney General for the DOJ’s Tax Division Tamara Ashford said: “Today’s sentencing reflects the Justice Department’s continuing commitment to the investigation and prosecution of accountants and other professionals who promote fraudulent tax shelters. The sentence imposed is a clear warning that those who commit such frauds risk significant jail time and other criminal sanctions.”
According to the Indictment previously filed in Manhattan federal court, the proof at Parse’s trial, and statements made during his sentencing proceeding:
PARSE, who was also a certified public accountant, was a broker and investment representative at DB’s Chicago offices between 1997 and 2003. During that period, he worked with attorneys at J&G and accountants from BDO, as well as other DB brokers, on the design, marketing and implementation of high-fee tax strategies for individual clients. Those strategies, or “tax shelters,” were designed to allow high-net-worth clients to eliminate, reduce, or defer taxes on significant income or gains.
Among the fraudulent tax shelters designed, marketed, and implemented by PARSE and his co-conspirators were “Short Sales,” “Short Options Strategy” (“SOS”), “Swaps,” and “HOMER.” The Short Sale tax shelter was marketed and sold from 1994 through 1999 to at least 290 wealthy individuals, and generated at least $2.6 billion in false and fraudulent tax losses. The SOS tax shelter was marketed and sold from 1998 through 2000 to at least 550 wealthy individuals, and generated at least $3.9 billion in false and fraudulent tax losses. The Swaps tax shelter was marketed and sold in 2001 and 2002 to at least 55 wealthy individuals, and generated more than $420 million in false and fraudulent tax losses.
In return for receiving a fee from tax shelter clients based on a percentage of their purported tax losses and the nature of the losses – usually 5% for ordinary losses and 4% for capital losses – PARSE and other DB brokers assisted the J&G attorneys in marketing and implementing the fraudulent tax shelters, including attending sales pitches for the shelters, setting up bank accounts for the entities employed in the fraudulent tax shelters, and effectuating transfers between the various bank and financial accounts used in the transactions. PARSE also helped to identify and select certain stocks that would be utilized in the tax shelters to disguise from the Internal Revenue Service (“IRS”) the fraudulent losses claimed by the clients. He also steered his own DB clients to the fraudulent shelters, and was given a free tax shelter opinion letter by the J&G attorneys, which he used to evade hundreds of thousands of dollars of his own income taxes. PARSE was paid over $3 million in commissions by DB attributable to the fraudulent tax shelters.
In addition to his involvement in the marketing and implementation of the fraudulent tax shelters, PARSE also took part in the illegal back-dating of certain tax shelter transactions. The backdating occurred when attorneys at J&G realized, after the close of certain tax years, that certain steps of the tax shelter transaction had been done improperly, and the correct amount or nature of the tax shelter losses could not be produced through the transactions. The J&G attorneys worked with PARSE to create documents and effectuate securities transactions at the bank after the close of the tax year and back-dated them using “as of” dates, which treated the documents as if they had been signed prior to the close of the tax year, in violation of tax accounting rules.
In addition to his prison term, PARSE, 51, of Hinsdale, Illinois, was also sentenced to three years of supervised release and ordered to pay $115,700,000 in restitution and to forfeit $1 million.
PARSE and co-defendants Paul Daugerdas, Denis Field, and Donna Guerin were convicted of various tax fraud charges in May 2011 after an 11-week jury trial. Daugerdas, Field, and Guerin were granted a new trial as a result of certain juror misconduct. Guerin pled guilty in December 2012 to conspiracy and tax evasion charges and was sentenced by Judge Pauley on March 1, 2013 to 96 months in prison. She was also ordered to pay $190 million in restitution and to forfeit $1.6 million.
The re-trial of Daugerdas and Field is scheduled to begin on September 9, 2013. The charges against these defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Former J&G partner Erwin Mayer pled guilty to related charges of conspiracy and personal tax evasion in October 2010. Former BDO Seidman Vice Chairman and board member Charles W. Bee, Jr., pled guilty in June 2009 to related charges of conspiracy to defraud the IRS, tax evasion, and perjury. Michael Kerekes, a principal of BDO Seidman and also a former member of BDO's TSG and Tax Opinion Committee, pled guilty in February 2009 to related conspiracy and tax evasion charges. Adrian Dicker, a former Vice Chairman of BDO Seidman and TSG member, pled guilty in March 2009 to related conspiracy and tax evasion charges. BDO partner Robert Greisman pled guilty in July 2009 to related conspiracy, tax evasion, and IRS obstruction charges. BDO partner Mark Bloom pled guilty in July 2009 to a related IRS obstruction charge.
Mr. Bharara thanked the IRS and the Tax Division of DOJ for their work on this case.
This case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Stanley J. Okula, Jr. and Jason P. Hernandez, and DOJ Tax Division Assistant Chief Nanette L. Davis, are in charge of the prosecution.