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21 March 2013
Savannah Doctor Pleads Guilty for His Role in Trading Drugs for Sex ScamRead the Press Release
SAVANNAH , GA: WILLIAM ELLIEN, 57, of Savannah, Georgia, pled guilty yesterday before the United States District Judge William Moore, Jr., for distributing drugs to his customers without a legitimate medical purpose.
According to evidence presented at the guilty plea hearing, Ellien, a Savannah psychiatrist, exchanged prescriptions for very addictive prescription drugs for sex acts with various women from 2009 through 2012. Ellien, who remains in federal custody, is facing up to 20 years in prison and a $1,000,000 fine. There is no parole in the federal system. A sentencing date will be set upon the completion of a presentence investigation by the United States Probation Office.
United States Attorney Edward J. Tarver said, “This doctor violated his oath, preyed upon patients, and turned into a common criminal, all for his own personal gratification. Whether street pushers or physicians, all drug dealers can expect that justice will be swift and the punishment will be severe.”
This case is being prosecuted by Assistant United States Attorney, E. Greg Gilluly, Jr. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Saline County Woman Charged with Methamphetamine Related OffenseRead the Press Release
Ashley Renee Uze, 27, of Harrisburg, Illinois, was arraigned today in United States District Court in Benton on an indictment charging her with possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on March 5th, alleged that the offense occurred on November 5, 2012.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Uze faces up to 20 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow her incarceration.
Following the hearing, Uze was returned to the custody of the Saline County Jail where she is being held on unrelated state charges. She will return to federal court for a final pre-trial hearing on May 9th at 9:30 a.m.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Rocky Mount Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today QUENTIN EARL BATTLE, 39, of Rocky Mount, North Carolina was sentenced by Chief United States District Judge James C. Dever III to 420 months imprisonment, followed by 5 years of supervised release.
On August 10, 2012, BATTLE pled guilty to (1) conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine, 280 grams or more of cocaine base (crack), and a quantity of heroin in violation of Title 21 United States Code, Section 846 and (2) money laundering in violation of Title 18 United States Code, Section 1956.
The investigation revealed that BATTLE was a major distributor of cocaine and cocaine base (crack) in Nash County, North Carolina since the late 1990s. Numerous cooperating defendants identified BATTLE as their source of supply for cocaine and crack. On April 19, 2012, a search warrant was executed at BATTLE’S residence, where paperwork was found for two storage units in Rocky Mount. A second search warrant was executed at the storage units, resulting in the seizure of three assault rifles, ammunition, body armor, and $440,015 in United States currency. On that same day, BATTLE was arrested following a traffic stop, and officers found in his vehicle a loaded .40 caliber handgun and $3,500 in United States currency.
Investigation of this case was conducted by the Drug Enforcement Administration and the Rocky Mount Police Department. Special Assistant United States Attorney Nathan A. Huff and Assistant U.S. Attorney Eric Goulian represented the government in this case.
Rochester woman sentenced for hUD fraudRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Debra Belcer, 58, of Rochester, N.Y., who was convicted of stealing government funds, was sentenced to three years probation and ordered to pay restitution in the amount of $22,609 by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated between July 2009 and July 2011, the defendant received Department of Housing and Urban Development (“HUD”) Section 8 rent subsidy benefits. To continue receiving the benefits each year, Belcer certified to HUD that she was the only adult living in her home and was the only individual in the household earning income. The government’s investigation in fact determined that the defendant had gotten married, that her husband was earning income, and that the defendant was not reporting all of her own earned income to HUD.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent in Charge Cary Rubenstein.Richmond Man Indicted for Theft of Generators from American Military Base in Baghdad, IraqRead the Press Release
RICHMOND, Va. – Reuben Thomas, 35, of Richmond, Virginia, was indicted today for the theft of 2 electrical generators from the American Victory Base Complex in Baghdad, Iraq.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the return of the indictment.
Thomas was a civilian employed as a Site Lead Property Book Manager by Honeywell Technologies Solutions, Inc., an American company that had a military contract and subcontract with the Department of Defense to assist in its mission at the Camp Victory Base Complex (VBC) in Bagdad, in the Republic of Iraq.
In addition to theft of government property, Thomas was also charged with making a false statement to the FBI. If convicted, he is facing a maximum sentence of 10 years’ imprisonment on Count One and 5 years on Count Two. He also faces a fine of up to $500,000.
According to the indictment, a shortage of reliable electricity was a chronic, widespread problem in Iraq during the period of occupation by coalition forces following the 2003 invasion. To fulfill its mission, DOD had many contracts to create and import a wide variety of electrical generators into Iraq. Forces opposing the United States also had the same electrical problems, and, therefore, they needed generators as much as the DOD. One such generator purchased by the DOD was a 1.1 Megawatt, approximately 20,000 pound, diesel generator manufactured by F. G. Wilson. These generators were typically used as prime power in Iraq, meaning that they supplied continuous electrical power in places where there was no commercial power available. The price per generator was $176,055.00. DOD stored and maintained many of its generators in a yard on the west side of the VBC.
On June 17, 2009, two of these generators were stolen from the VBC. Count One of the indictment charges Thomas in the theft of those generators.
He is also charged with making a false material statement in connection with the investigation of the thefts. The investigation established that a rough terrain container handler, commonly referred to as a “retch,” was used to lift the generators from the sandy storage yard onto two flatbed trucks. The investigation also determined that the particular retch used in the theft was borrowed from Supply Support Administration (SSA) facility on the east side of the VBC, with the permission of an SSA supervisor. Accordingly, it was material to the investigation to determine the identity of the person who asked the supervisor for permission.
According to the indictment, on September 15, 2010, Thomas falsely represented to an FBI Special Agent that on June 17, 2009 he had not spoken to anyone at the SSA yard on the east side of the VBC to ask for permission to use a retch. In fact, the indictment alleges, Thomas did ask an SSA supervisor for permission to borrow the vehicle.
This case was investigated by the Federal Bureau of Investigation and the Criminal Investigation Division of the United States Army. Assistant United States Attorney David T. Maguire is 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.Reidsville Man Sentenced for Child PornographyRead the Press Release
GREENSBORO, N.C. – A Reidsville man was sentenced to five years in prison and 10 years supervised release for receipt of child pornography, announced United States Attorney Ripley Rand.
Michael Scott Bugher, 44, of Reidsville, North Carolina, had pleaded guilty to one count of receipt of child pornography. Bugher was sentenced on March 19, 2013, by United States District Judge Thomas D. Schroeder, to 60 months in prison followed by 10 years supervised release. Bugher admitted knowingly seeking and receiving child pornography using the internet.
This case was investigated by the Reidsville Police Department and North Carolina State Bureau of Investigation, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy.
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 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.
###Rapid City Woman Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Billi American Horse, age 24, of Rapid City, South Dakota appeared before Chief Judge Jeffrey L. Viken, U.S. District Court, on March 11, 2013 and pled guilty to count II of a superseding indictment that charged her with conspiracy to distribute a controlled substance. The penalty upon conviction is a minimum of 5 years up to 40 years’ imprisonment and/or a $5,000,000 fine.
The charge relates to American Horse conspiring with others to distribute at least 100 kilograms or more of marijuana in South Dakota between October 2008 and May 2012. The investigation was conducted by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and Bureau of Indian Affairs. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
A presentence investigation was ordered and a sentencing date was set for July 8, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Rapid City Man Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Sydney Lightning Fire, age 30, of Rapid City, South Dakota appeared before U.S. District Judge Roberto A. Lange on March 18, 2013 and pled guilty to the Superseding Information that charged him with Assaulting, Resisting, or Impeding a Federal Officer. The maximum penalty upon conviction is 8 years in custody, a $250,000 fine, or both; and 3 years of supervised release.
The conviction stems from Lightning Fire’s assault of a Cheyenne River Sioux Tribe Law Enforcement Officer in July 2012.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for June 3, 2013. The defendant will report to the custody of the U.S. Marshals Service on April 8, 2012 to await sentencing.
Rapid City Man Indicted for Illegal ReentryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man was indicted by a federal grand jury for illegally reentering the United States after having been previously deported.
Marcos Miranda-Sanchez, 56, was indicted on October 23, 2012 for Illegal Reentry After Deportation. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 13, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 2 years’ imprisonment and/or a $250,000 fine. The charge is merely an accusation and Miranda-Sanchez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Eric Kelderman is prosecuting the case. Miranda-Sanchez was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Rapid City Man Indicted for Failure to RegisterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man was indicted by a federal grand jury for failing to update his sexual offender registration as required.
Benjamin Godfrey Chipps Jr., 33, was indicted on February 20, 2013 for Failure to Register. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 11, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine. The charge is merely an accusation and Chipps is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case. Chipps was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Ransomville woman pleads guilty to marijuana conspiracy in niagara countyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Bonnie R. Gordon, 33, of Ransomville, N.Y., pleaded guilty to conspiring to possess and distribute over 100 kilograms of marijuana before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum five years in prison, a maximum of 40 years, a fine of $2,000,000, or both.
Assistant U.S. Attorney Robert C. Moscati, who is handling the case, stated that Gordon was part of a group of individuals who smuggled and transported marijuana from Canada to the United States, often hidden inside the spare tire of a car. The car would then be driven to one of several locations in Niagara County where the marijuana was then distributed and sold to others. The defendant admitted that the marijuana conspiracy existed for more than seven years beginning sometime in 2002.
Gordon was arrested in December 2011 along with five others. She is the first defendant to be convicted.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division; the New York State Police, under the direction of Major Christopher Cummings; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Niagara County Sheriff's Department, under the direction of Sheriff James Votour; the United States Border Patrol, under the direction of Chief Border Patrol Agent Kevin W. Oaks; Customs and Border Protection, under the direction of James T. Engleman, Director of Field Operations; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano; the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto; the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in-Charge Edward T. Bradley; Toronto Police Service, under the direction of Chief William Blair; Niagara Regional Police, under the direction of Chief Jeffrey McGuire; Peel Regional Police, under the direction of Chief Jennifer Evans; Ontario Provincial Police, under the direction of Commissioner Chris Lewis; and the Canada Border Service Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region.
Sentencing is scheduled for July 1, 2013 at 12:30 p.m. before Judge Arcara.Pukwana Man Indicted on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pukwana, South Dakota man has been indicted by a federal grand jury.
Samuel Antelope, age 32, was indicted by a federal grand jury on January 16, 2013 for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Antelope appeared before U.S. Magistrate Judge Mark A. Moreno on March 18, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered. The charges are merely accusations, and Antelope is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Antelope was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Princess L. Eatmon Sentenced to PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Princess L. Eatmon, age 25, formerly a resident of Dougherty County, Georgia, on March 21, 2013, in Albany, by the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia.
Eatmon was sentenced by Judge Sands to serve 48 months in the custody of the Bureau of Prisons followed by three years of supervised release. She was also ordered to pay restitution to the United States Department of Education in the amount of $139,087.
On May 7, 2012, Ms. Eatmon pleaded guilty to a one count Information which charged her with conspiracy to commit wire fraud, a violation of 18 U.S.C. 1343 i/c/w/1349. During the period from January 1, 2010, through December 30, 2011, Ms. Eatmon fraudulently applied for and received student loans and grants from the U.S. Department of Education on behalf of at least 27 bogus students. The purported students were real persons in the Albany area who knowingly gave their personal identifying data to Ms. Eatmon in order to obtain federal student aid by fraud. Neither Ms. Eatmon nor the bogus students had any intention of actually furthering their education.
Using her home computer and the internet, Ms. Eatmon enrolled other persons in on-line universities, and applied for and received federal student loans and grants for them. Ms. Eatmon would, for a short period of time, turn in some course work on behalf of the students; however, once she received the federal monies for the bogus student, she would “drop out” of the course. None of the “students” which she enrolled completed any course work or had any intention to perform the course work themselves. The sole purpose of enrolling the “students” in on-line universities was to defraud the federal government into sending monies to Ms. Eatmon and her co-conspirators. Two other defendants have been convicted of conspiring with Ms. Eatmon in the same scheme: Kevinall Wheeler, who pleaded guilty on August 13, 2013, and Dontreal Jenkins, who was convicted by a jury of conspiring with Ms. Eatmon (and of other offenses) on January 11, 2013.
“Students from all walks of life depend on student loans and grants so they can further their education. When Ms. Eatmon committed this fraud, she stole money that could have been used to help deserving students go to college. My office is committed to pursuing those who commit fraud,” said U.S. Attorney Michael Moore.
On October 15, 2012, while awaiting sentencing in this case, Ms. Eatmon was charged separately with theft of United States Treasury checks and aggravated identity theft in connection with a completely different on-line tax scheme. Because of this new offense, Ms. Eatmon’s bond was revoked and she has been in custody since that date. On January 3, 2013, Ms. Eatmon entered a separate plea of guilty to these charges. Sentencing on this second set of charges will be held at a later date.
The case was jointly investigated by the Dougherty County Police Department, the United States Department of Education, Office of Inspector General and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Jim Crane.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.Pine Ridge Woman Pleads Guilty to False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that Natalie White Plume, a/k/a Natalie Lame, age 36, of Pine Ridge, South Dakota appeared before Chief Judge Jeffrey L. Viken, U.S. District Court, on March 8, 2013 and pled guilty to False Statement. The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine.
Between March and April 2011, White Plume did not disclose income as required on her Economic Assistance Application for Temporary Assistance to Needy Families (TANF), a United States Department of Health and Human Services Program, and her application for the Supplemental Nutrition Assistance Program (SNAP), a United States Department of Agriculture Program. Both federal programs are administered by the State of South Dakota Department of Social Services, and the investigation was conducted by that agency.
A presentence investigation was ordered and a sentencing date was set for June 11, 2013. The defendant was released on bond pending sentencing.
Pine Ridge Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Clarence Janis, age 30, of Pine Ridge, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 7, 2013 and pled guilty to Assaulting a Federal Officer. The maximum penalty upon conviction is 1 year of imprisonment and/or a $100,000 fine.
On May 7, 2011 near Pine Ridge, Janis assaulted an Oglala Sioux Tribe police officer as she was attempting to remove him from a residence. The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date was set for May 16, 2013. The defendant was remanded to the custody of the U.S. Marshal pending acceptance of this plea and sentencing.
Philadelphia Woman Facing Gun ChargeRead the Press Release
Tanika Victoria Little, 34, of Philadelphia, Pennsylvania, was charged today by indictment with one count of illegally possessing a firearm with obliterated serial numbers, announced United States Attorney Zane David Memeger. The indictment alleges that on October 1, 2012, Little knowingly possessed a Glock model 19, 9mm pistol, serial #TN460US, with a forcibly removed serial number plate from the frame and scratched serial number on the slide of the firearm.
If convicted the defendant faces a maximum possible sentence of five years in prison, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by United States Secret Service, the Office of the Attorney General Commonwealth of Pennsylvania Gun Violence Task Force, and is being prosecuted by Assistant United States Attorney Anita Eve.
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, 215-861-8525Philadelphia Man Charged in Three RobberiesRead the Press Release
Maurice M. Connelly, 20, of Philadelphia, PA was charged today by Indictment with three counts of robbery which interferes with interstate commerce and three counts of using, carrying, and brandishing a firearm during a crime of violence, announced United States Attorney Zane David Memeger. These charges stem from Connelly’s involvement in three separate gun-point robberies of store robberies; one on June 24, 2012, June 25, 2012, and August 27, 2012.
If convicted the defendant faces a maximum possible sentence of life imprisonment, with a mandatory minimum 57-year sentence consecutive to all other sentences, a $1,500,000 fine, 5 years supervised release, and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Peruvian 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 today 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 Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, 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.
Owner of Bluegrass Women’s Healthcare in Elizabethtown Charged with Health Care Fraud, Mail Fraud, Misbranding and SmugglingRead the Press Release
LOUISVILLE, Ky. – The owner of Bluegrass Women’s Healthcare, located in Elizabethtown, Kentucky was charged, in a 13 count federal grand jury indictment this week, with health care fraud, mail fraud, misbranding and smuggling announced David J. Hale, United States Attorney for the Western District of Kentucky.
Canh Jeff Vo, age 45, of Elizabethtown, Kentucky was the owner, supervising physician, and president at Bluegrass Women’s Healthcare between March 2008 and September 2009 when the alleged violations occurred. Vo offered gynecological and obstetric services to women at Bluegrass Women’s Healthcare, including providing forms of birth control. According to the federal indictment, between March 2008 and September 2009, Vo, with the intent to defraud or mislead, purchased and inserted into patients, foreign, non-FDA approved Mirenas (levonorgesteral-releasing intrauterine device). These Mirena intrauterine devices or IUDs, were misbranded in that their labeling was not in the English language; and their labeling did not bear adequate directions for use.
Further defendant Vo is charged with health care fraud for submitting false claims for reimbursement from the Medicaid Program. Specifically, Vo is alleged to have billed the Kentucky Medicaid Program and other insurers as if he was administering the FDA-approved version of Mirena, at a greater cost, when he was actually administering a non-FDA approved version of Mirena.
Additionally, Vo is charged with ten counts of mail fraud for utilizing the United States Mail, by receiving payment from the Kentucky Medicaid Program and private insurance companies for Mirena IUDs which were not approved for sale in the United States.
It is also alleged, in the federal indictment, that between March 2008 and September 2009, Vo received, brought, and imported into the United States, Mirena IUDs, knowing that these were misbranded and unlawfully introduced into interstate commerce from various countries, including from Canada.
If convicted at trial, Vo faces a maximum of 233 years in prison, a maximum fine of $3,010,000 and up to 3 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and is being investigated by the United States Food and Drug Administration (FDA) Office of Criminal Investigations, the Federal Bureau of Investigation (FBI), and Kentucky Office of the Attorney General Office of Medicaid Fraud and Abuse Control.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Operator of $8.9 Million Ponzi Scheme Receives 65-month SentenceRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Jerry Smith, 50, of Brookville, Indiana, was sentenced to 65 months in prison, ordered to pay $5,406,950.65 in restitution to victims and $72,412.70 in restitution to the IRS for his role in an investment scheme that ensnared approximately 72 investors in Ohio, Indiana and Kentucky.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Dugan Wong, Inspector in Charge, U.S. Postal Inspection Service, and Denise Rocawich, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the sentence imposed yesterday by Senior U.S. District Judge Herman J. Weber.
On June 12, 2012, Smith pleaded guilty to three counts of a four-count bill of information charging him and his co-conspirator, Jason Snelling, 48, Cincinnati, with crimes arising out of their operation of a multi-million dollar Ponzi scheme. Smith admitted that he engaged in a mail and wire fraud conspiracy in connection with a scheme to defraud investors in CityFund and Dunhill, two bogus “day trading” entities which were nothing more than bank accounts where investors’ funds were deposited and then spent by Snelling and Smith.
Smith also admitted that he engaged in obstruction by creating fictitious trading statements and providing them to federal agents to impede the investigation and cover up the fraud. Finally, Smith admitted that he committed tax evasion by failing to report the embezzled investor funds as income on his tax returns for the tax year 2008 and additional tax years.
“Consistent with a classic Ponzi scheme, early investors were paid interest or return of capital payments, which were not generated by investment earnings, but rather by monies solicited from later investors,” Stewart said. “These payments served to lull the victims into a false sense of security and to prevent or delay the discovery of the fraudulent investment scheme.”
During the course of this fraudulent scheme, Smith used investors’ money to pay for his expensive rural Indiana home, to buy a boat and jet skis, and to operate his insurance business.
Smith issued himself a monthly payment from CityFund Advisory, LLC. He made checks payable to his corporation, Smith’s Realty and Insurance. All of the monthly checks were, in fact, income to Smith and were not reported on his personal federal income tax returns. For the 2006 through 2009 income tax years, Smith willfully and knowingly omitted a total of $345,735.62 in income on his personal income tax returns, resulting in a total tax loss to the IRS of $72,412.70.
On October 23, 2012 Snelling was sentenced to 131 months in prison, ordered to pay $5,336,177.78 in restitution to the victims and $596,928.69 in restitution to the IRS. Smith was also ordered to pay $5,000,000 in a forfeiture money judgment.
“The Postal Inspection Service is committed to investigating investment schemes like the one run by Smith and Snelling that target Postal customers every day,” Inspector in Charge Wong said. “Postal Inspectors have a long history of investigating mail fraud dating back to Charles Ponzi himself. It is part of our mission to protect the customers of the Postal Service.”
“Investment fraud is like a 'house of cards.' Because Ponzi schemes have no legitimate business purpose, they can collapse when the money runs out, leaving many investors in financial ruin," said IRS Acting Special Agent in Charge Rocawich. “Investors should watch for red flags, such as guaranteed above-market interest earnings. Investors should thoroughly investigate the nature of any investment before investing their retirement savings.”
This case was prosecuted by Senior Litigation Counsel Anne L. Porter and was investigated by U.S. Postal Inspectors and special agents of IRS-Criminal Investigation.
One of five co-defendants convicted of embezzling from Trident Seafoods sentenced to 16 months prisonRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Washington woman was sentenced for her role in embezzling $289,000 from Trident Seafoods.
Anne Wilson, 31 of Kent, Washington, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to 16 months in prison.
According to Assistant U.S. Attorney Aunnie Steward, from January 2008, and continuing until August 2010, the lead defendant Isairis Wolfe, used her position as the book keeper for Trident Seafoods in Kodiak, to write Trident Seafoods checks to four of her personal associates Anne Wilson, Jeremy Smith, Valerie Olivares, and Jamie Fathke. Wolfe, using her check writing authority at Trident Seafoods, drafted approximately 52 checks on a Trident Seafoods account for approximately $500,000, and made them payable to her personal associates Wilson, Smith, Olivares, and Fathke, as well as to Wilson's minor son L.E. The checks were negotiated by Wolfe and her associates and they shared the proceeds. Wolfe concealed the fraud by creating fraudulent accounting records so that the payments appeared to be legitimate.
Wilson and Wolfe met while working together at Trident Seafoods. Wilson was fired from Trident Seafoods but stayed in touch with Wolfe. Wilson approached Wolfe for a loan of a few hundred dollars and instead of granting a loan, Wolfe asked Wilson to join the scheme to defraud Trident Seafoods which she agreed to. Over a two and a half year period, Wilson negotiated 28 fraudulent checks that were made out to both her and her minor son that totaled $289,660. Wilson kept half of the money from the fraudulent checks and provided the remaining half to Wolfe. Wilson admitted that she wired some of the money from the fraudulent scheme to the father of her children who was in Mexico, knowing that he was a fugitive for a murder charge in Texas.
Wilson said that she knew that what she was doing was wrong but that did not stop her participation in the scheme. The scheme only stopped when Wolfe was fired from Trident Seafoods for performance related reasons and was no longer in a position to write the fraudulent checks. The scheme was discovered when an audit of the books and records was conducted by Trident Seafoods. Wilson admitted in court that she obtained United States citizenship while the scheme was ongoing but before it was discovered by Trident Seafoods.
Wolfe is scheduled for sentencing on May 22, 2013. Olivares and Smith are scheduled for sentencing on June 4, 2013. Fathke was sentenced on January 9, 2013, to 4 months jail for her role in embezzling $30,000 from Trident Seafoods.
Ms. Loeffler commends the FBI for the investigation of this case.
Northford Man Sentenced to 18 Months in Prison for Failing to Pay Taxes on More Than $640,000 in IncomeRead the Press Release
March 21, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that PHILIP NEY, 62, of Northford, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 18 months of imprisonment, followed by one year of supervised release, for failing to pay taxes on more than $640,000 in income.
According to court documents and statements made in court, NEY owns and operates Empire Restoration Company in Northford, which provides residential and commercial roofing services, as well as snow plowing services. From 2004 through 2008, part of the income derived from those services was deposited into NEY’s business checking account and part was deposited into his passbook savings accounts. When preparing his federal tax returns for the 2004 to 2008 tax years, NEY’s tax return preparers asked him to report all of his business income. However, NEY did not provide his tax preparers with information related to business income that he had deposited into three savings accounts. For the 2004 through 2008 tax years, NEY failed to report on his tax returns a total of $640,581 in income that had been deposited into his savings accounts.
On November 26, 2012, NEY waived his right to indictment and pleaded guilty to one count of filing a false federal income tax return. In pleading guilty, NEY admitted that on April 15, 2009, he signed and filed his 2008 U.S. Individual Income Tax Return, Form 1040, which falsely reported Schedule C gross business receipts of $529,934 and the amount of tax due of $28,544. In fact, NEY’s actual gross business receipts for 2008 were $771,615 and he should have paid $107,377 in federal income tax.
As part of the resolution of this case, NEY has agreed to pay $192,671 in back taxes, plus penalties and interest, for the 2004 through 2008 tax years.
NEY was ordered to report to prison on June 3, 2013.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and was prosecuted by Assistant United States Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Norman Toups, Jr. Sentenced for Defrauding the Social Security AdministrationRead the Press Release
NORMAN TOUPS, JR., 63, a resident of Jefferson Parish, was sentenced in federal court yesterday to two years probation by U.S. District Judge Stanwood R. Duval, Jr., announced U.S. Attorney Dana J. Boente. TOUPS paid full restitution to the Social Security Administration prior to sentencing.
According to court documents, TOUPS pled guilty on November 28, 2012 , to making false statements in an application to the Social Security Administration for disability benefits claiming that he could no longer work as a security guard due to sever leg pain. In his application, TOUPS also claimed that he was financially destitute when, in truth and fact, he owned several valuable pieces of real estate in the New Orleans area. As a result of his false statements to Social Security, TOUPS received $53,632,79 in disability benefits to which he was not entitled.
The case was investigated by the Office of Inspector General for the Social Security Administration. The case was being prosecuted by Assistant United States Attorney Spiro Latsis.
Norman and Jami Ducre Plead Guilty to Filing False Tax ReturnsRead the Press Release
NORMAN DUCRE, 41 and JAMI DUCRE, 44, residents of Slidell, Louisiana, each pleaded guilty in federal court yesterday before the Honorable Susie Morgan to two counts of willfully making and subscribing a false tax return, announced U.S. Attorney Dana J. Boente.
According to the factual basis, during the charged years, the DUCREs owned and operated J & J Auto Brokers, LLC, a used car dealership located in Slidell, Louisiana. NORMAN DUCRE was primarily responsible for sales and inventory acquisition and management, while JAMI DUCRE was primarily responsible for the business' bookkeeping. As part of her plea, JAMI DUCRE admitted to providing false and fraudulent monthly income and expense statements to the firm's tax preparer, knowing full well that the reports did not contain all of the business's cash sales. Likewise, NORMAN DUCRE admitted as part of his guilty plea that, on a routine basis, he would fail to report cash sales made by J & J Auto Brokers, and would further pocket the cash made from the illicit sales, instead of reporting said cash on the businesses books and records.
The fraudulent income reports that both NORMAN and JAMI DUCRE provided or caused to be provided to their tax preparer were then used to prepare income tax returns for the business and for the DUCREs individually. At their plea hearing yesterday, the DUCREs admitted to signing and filing with the IRS a false Form 1040 for tax year 2005 that substantially understated their income from J & J Auto Brokers and a false Form 1040 for tax year 2006 that substantially overstated their loss from the business. The total tax loss from the charged conduct is $69,451.
Sentencing for both defendants is set for June 19, 2013. As to each count, the DUCREs face a maximum term of three years imprisonment, a fine of $100,000, a $100 special assessment, and a one year supervised release following any term of imprisonment.
The case was investigated by the Internal Revenue Service, Criminal Investigation. The case is being prosecuted by Assistant U. S. Attorney Carter Guice and Trial Attorney Hayden Brockett of the U. S. Department of Justice, Tax Division.
(Download Factual Basis )
Netzahualcoyotl Guinto-ascenscio Pleads Guilty to Unlawfully Transferring A Fraudulent Identification DocumentRead the Press Release
NETZAHUALCOYOTL GUINTO-ASCENSCIO, age 36, a citizen of Mexico, pled guilty in federal court today before U.S. District Judge Jay C. Zainey, announced U.S. Attorney Dana Boente. GUINTO pled guilty to a count one of a three-count indictment charging him with unlawful transfer of a fraudulent identification document.
According to court documents, on or about October 16, 2012, GUINTO sold a counterfeit Social Security card, knowing that the identification document was produced without lawful authority, and the false identification document appeared to have been issued by or under the authority of the United States.
GUINTO faces a maximum term of fifteen years imprisonment, a fine of $250,000, and a three years of supervised release following any term of imprisonment. Sentencing is scheduled for June 18, 2013 at 10:00 A.M.
The case was investigated the U.S. Department of Homeland Security, Homeland Security Investigations. The case is being prosecuted by Special Assistant U.S. Attorney Robert Weir.
(Download Factual Basis )
Nedra Bell Pleads Guilty to Katrina Related Fraud and to Making False Statements to Housing Authority of New OrleansRead the Press Release
NEDRA BELL, age 40, a resident of New Orleans, Louisiana, pled guilty in federal court today before U.S. District Court Judge Lance M. Africk, to theft of government funds and to making false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente.
According to court documents, BELL applied for a Louisiana Road Home grant for property she was renting from her brother at the time of Hurricane Katrina. BELL applied for the grant on behalf of her brother, falsely stating that he was residing in the property at the time of Hurricane Katrina. As a result of her false statements in her application, BELL fraudulently received approximately $54,372 from the United States Department of Housing and Urban Development (“HUD”), an agency and department of the United States.
BELL is also charged with one count of making false statements to a federal agency on a re-certification application and HUD Income Questionnaire to the Housing Authority of New Orleans (“HANO”) for HUD rental subsidized housing under its Section 8 program. BELL denied that she received self-employment income or owned property, when in truth and in fact, she received income from her business as a hair stylist and owned property.
Upon sentencing, set for June 20, 2013, BELL faces a maximum term of imprisonment of fifteen years years, a $250,0000 fine, restitution to the HUD, three years of supervised release following any term of imprisonment, and a $200 special assessment.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. The case was prosecuted by Assistant U. S. Attorney Julia K. Evans.(Download Factual Basis )
Montana Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Belgrade, Montana man convicted of Possession of Child Pornography was sentenced on March 15, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Blackburn, age 63, was sentenced to 36 months’ imprisonment, 10 years’ supervised release and ordered to pay $100 to the Victim Assistance Fund.
In April 2012, Blackburn knowingly possessed computer files that contained images of child pornography. He pled guilty on October 29, 2012.
This case was investigated by the South Dakota Division of Criminal Investigation, and Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Monroeville Man Sentenced in Aggravated Assault CaseRead the Press Release
Montgomery, Alabama - A federal judge sentenced Marcus Dupree Hurry, 22, of Monroeville, to seven years in prison for his assault on a Deputy United States Marshal in February, 2012, announced George L. Beck, United States Attorney for the Middle District of Alabama.
On February 28, 2012, the United States Marshals Service Gulf Coast Regional Fugitive Task Force received information that Leslie McMillian, who was wanted for murder was residing in Prattville, Alabama. McMillan was supposed to be at the Sweet Water Apartment complex in Prattville, Alabama. Law enforcement set up surveillance at the apartment complex and saw McMillian and an unknown black male, later discovered to be Marcus Dupree Hurry, get into a Chevy Impala, with Hurry driving. Investigators began following the vehicle East on Highway 14. Approximately one to one and a half miles later, officers began to suspect that McMillian and Hurry realized they were being followed.
Shortly thereafter, Hurry did an abrupt U-turn and began speeding away, crossing under Interstate 65. After officers activated the lights and sirens on their vehicles, Hurry ran through a red light and collided with another vehicle. Hurry then drove away from the collision, into the grass and up an embankment toward I-65. When Hurry could not get the vehicle up the embankment, he shifted it into reverse and sped towards the federal officers who had exited their vehicles. One U.S. Deputy Marshal was in the direct path of the vehicle. The Deputy Marshal was standing outside of his vehicle in clothing that clearly identified him as a law enforcement officer. As the vehicle came toward the Deputy, he shot Hurry in the arm in an attempt to prevent injury or death to himself and other officers. Hurry and McMillian were then removed from the car, arrested, and searched.
“Law enforcement officers valiantly risk their lives every day to protect our citizens,” stated U.S. Attorney Beck. “We must do all we can to keep them safe from those criminals that try to do them harm. This case should serve as a warning to those who attempt to harm law enforcement officers in order to further their criminal activity. Those criminals will be vigorously prosecuted to the full extent of the law.”
“This is prime example of the dangerous work Deputy United States Marshals perform every day,” stated Arthur D. Baylor, United States Marshal for the Middle District of Alabama. “The United States Marshals Service will remain vigilant in our efforts to track down federal and state fugitives that flee from justice.”
United States District Court Judge Mark E. Fuller sentenced Hurry to seven years in the Bureau of Prisons, followed by two years of supervised release and a $100 court assessment fee. A hearing to determine restitution owed to the victim who was injured when Hurry collided with his/her vehicle while fleeing from law enforcement will be held within the next 90 days.
The case was investigated by the Alabama Bureau of Investigation, and the United States Marshal’s Service, with the aid of the Monroe County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Susan R. Redmond and Jared Morris.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Monmouth County, N.J., Man Admits to Filing False Personal Income Tax Returns Omitting Swiss Bank AccountsRead the Press Release
TRENTON, N.J. - A Monmouth County, N.J., man today admitted filing false personal federal income tax returns, U.S. Attorney Paul J. Fishman announced.
Rakesh Chitkara, 60, of Marlboro, N.J., pleaded guilty today before U.S. District Judge Mary L. Cooper to Count Four of a five-count Information, charging him with making and subscribing to a 2007 federal income tax return to the IRS that he did not believe to be true.
According to documents filed in this case and statements made in court:
Chitkara admitted that he had a financial interest in at least two financial accounts at UBS AG in Zurich, Switzerland, and that he knowingly failed to disclose these accounts, and income from these accounts, on his personal tax returns for five years.
Citizens and residents of the United States who have an interest in, or signature or other authority over, a financial account in a foreign country at any time during the relevant tax year are required to so indicate on a U.S. Individual Income Tax Return, Form 1040, by checking “Yes” or “No” in the appropriate box on Schedule B, Part III - Foreign Accounts and Trusts. Citizens and residents of the United States are also required to report any interest and dividend income, as well as capital gain income, earned from such accounts.
On April 20, 1989, Chitkara caused to be opened an account in his own name at UBS AG in Zurich, Switzerland. On Jan. 13, 2000, Chitkara opened an account at UBS (Bahamas) Ltd. in the name of GMX. GMX Industries Inc. was a corporation formed under the laws of the Commonwealth of the Bahamas that was utilized to conceal Chitkara’s beneficial ownership in one of his two UBS accounts. On Oct. 10, 2002, Chitkara caused to be opened an account at UBS AG in Zurich, Switzerland, in the name of GMX, which was intended to be the successor account of the GMX account opened at UBS (Bahamas) Ltd. Chitkara was the sole beneficial owner of the GMX accounts at UBS (Bahamas) Ltd. and at UBS AG in Zurich.
Chitkara admitted that for tax years 2004 through 2008, he failed to report income received by him in one or more accounts at UBS and failed to report that he had an interest in, or a signature or other authority over, the financial accounts in Switzerland when he knew he had received income in one or more of the Swiss bank accounts.
As part of his plea agreement, Chitkara must repay back taxes – which the government contends total approximately $27,000, in addition to a civil penalty of $839,885, for willfully failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) to the IRS.
The charge to which Chitkara pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is currently scheduled for June 26, 2013.
U.S. Attorney Fishman credited special agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation that resulted in today’s sentencing.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton and Trial Attorney Tino Lisella of the Justice Department’s Tax Division.
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Defense counsel: Ian M. Comisky and Matthew D. Lee Esqs., Philadelphia
Chitkara, Rakesh Information
Mission Woman Pleads Guilty to Theft of Government FundsRead the Press Release
United States Attorney Brendan V. Johnson announced that Donna Peterson, age 48, of Mission, South Dakota appeared before U.S. District Court Judge Roberto A. Lange on March 18, 2013 and pled guilty to one count of Theft of Government Funds. The maximum penalty upon conviction is ten years in custody, a $250,000 fine, and 3 years of supervised release.
From 1996 to 2008, Donna Peterson was an employee of Costello Company Property Management. During that time she served as manager of the Sunrise Village Apartment Complex which was managed by Costello Company Property Management and located in Mission, South Dakota. The United States Department of Agriculture Rural Development Agency provided rent subsidy payments to Costello Property Management for tenants who met certain income requirements. Between January 1, 2007 and December 31, 2007, Peterson received cash from tenants in an amount $32,723.36 which she did not deposit in the Sunrise Village bank account, but instead embezzled and misapplied.
The investigation was conducted by the United States Department of Agriculture, Office of Inspector General-Investigations . The case is being prosecuted by Assistant U.S. Attorney Dennis R. Holmes.
A presentence investigation was ordered and a sentencing date was set for June 3, 2013. The defendant was released on bond pending sentencing.
Mission Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Johnny Lunderman, a/k/a Johnny Iron Horse, age 30, of Mission, South Dakota appeared before U.S. District Judge Roberto A. Lange on March 19, 2013 and pled guilty to Failure to Register as a Sex Offender. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; life of supervised release; and a $100 special assessment.
The Defendant was convicted of Sexual Abuse of a Minor on September 8, 2009. The Court sentenced Lunderman to 40 months’ imprisonment, 5 years of supervised release and also ordered that he must register as a sex offender. On January 9, 2012, Lunderman began his term of supervised release. It was determined on December 12, 2012 that Lunderman was not living at the home in which he had registered in Rapid City. On February 3, 2013 Lunderman was arrested near the Rosebud Sioux Indian Reservation.
The investigation was conducted by the U.S. Marshal Service. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for June 3, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Michael Page Pleads Guilty to Federal Drug ViolationRead the Press Release
MICHAEL PAGE, 36, a resident of Slidell, Louisiana, pleaded guilty today in federal court before U.S. District Court Judge Lance M. Africk to one count of conspiracy to distribute and possess with intent to distribute cocaine base (“crack”), announced U.S. Attorney Dana J. Boente.
According to court documents, PAGE conspired with others, known and unknown from February of 2010 until September of 2010 to distribute and possess with intent to distribute at least twenty-eight (28) grams of crack cocaine. The statutory penalties provided for the violation calls for not less than five (5) years and not more than forty (40) years of incarceration, a maximum fine of $5,000,000, and not less than four (4) years of supervised release. Sentencing is scheduled for June 20, 2013.
This investigation was initiated based upon a request for assistance by St. Tammany Parish Sheriff Jack Strain. Deputies with the Narcotics Unit of the St. Tammany Parish Sheriff’s Office have assisted Special Agents of the Federal Bureau of Investigation with this matter over the course of several months. This case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
(Download Factual Basis )
Mexican National Sentenced for Aggravated Identity Theft and PerjuryRead the Press Release
BOISE – Mauricio Becerril, 40, a Mexican national formerly living in Ontario, Oregon, was sentenced today in United States District Court in Boise to 36 months in prison and a $200 special assessment for aggravated identity theft and perjury, U.S. Attorney Wendy J. Olson announced. Becerill appeared today before Senior U.S. District Judge William B. Shubb of the Eastern District of California. He pleaded guilty to the charge on December 20, 2012.
According to the plea agreement, on September 3, 2010, Becerril, using the name “E.Z.R.,” filed an application to obtain a permanent United States resident card. In the application, Becerril used the name, date of birth, and social security number of the individual, aware that he was using another person’s identity. At the time that he filed the application, Becerril knew that E.Z.R. was a real person, based upon the fact that he requested a replacement permanent resident card, and had obtained permanent resident cards in E.Z.R.'s name in the past. On January 3, 2011, the U.S. Citizenship and Immigration Services (USCIS) approved the application, and subsequently provided Becerril with a permanent resident card bearing the name of E.Z.R., but with Becerril’s photograph.
On June 11, 2012, Becerril met with a special agent of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The agent was investigating whether Becerril obtained a visa by fraud using another individual's identity. When questioned under oath, Becerril swore his true identity was E.Z.R., knowing this statement was false.
“Identity thieves don’t just steal names, they steal peoples’ lives,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Idaho investigations. “This is a crime that wreaks havoc on a victim’s finances and reputations. It can take years, if not decades, to undo the damage.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Enforcement Removal Operations.
Memphis Man Sentenced to 10 Years for Child Sex Trafficking ConspiracyRead the Press Release
Memphis, TN – Vincent Jones, 26, of Memphis, was sentenced to 120 months in prison today for conspiracy to engage in child sex trafficking and sex trafficking by force, fraud, and coercion by United States District Judge Samuel H. Mays, Jr., announced United States Attorney Edward L. Stanton III and Special Agent in Charge of the Memphis Federal Bureau of Investigation Field Office Aaron T. Ford.
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According to the indictment, in the summer of 2011 Jones and his co-defendant, Kala Bray, lured two Memphis-area juveniles to Houston, TX with promises of a trip to a water park. Bray and Jones plied the teens with drugs including Oxycontin and Xanax and made the juveniles engage in commercial sex acts both in Memphis and Houston. Jones pled guilty to the sex trafficking conspiracy on July 7, 2012.
U.S. District Judge Samuel H. Mays also ordered Jones to serve five years of supervised release following his release from prison. Kala Bray, Jones=s co-defendant, pled guilty to the same conspiracy charge on November 4, 2011, and was sentenced to 14 years in prison on October 11, 2012. Parole is not a possibility in the federal system.
“This office will utilize every available resource to ensure that our children are protected from those who seek to exploit them through the unspeakable act of sex trafficking,” said U.S. Attorney Stanton. “Today’s sentence should send a clear message that we have zero tolerance for any form of sex trafficking, and those who engage in such activity will be aggressively prosecuted and ultimately brought to justice.
“Sex trafficking is not just an international or a national problem, it is also a local problem, and we need to remain alert to this issue and address it vigilantly,” said Aaron T. Ford, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “This sentencing, the result of the coordinated and aggressive efforts from the FBI and our law enforcement partners, demonstrates our intent to put an end to this type of predatory operation and free the victims.”
The case was investigated by the Federal Bureau of Investigation working in conjunction with the Memphis Police Department, the Bartlett Police Department, and the Houston Police Department. FBI Special Agent Michael Saltsman was the lead investigator on the case. Assistant United States Attorney Jonathan Skrmetti from the Civil Rights Unit of the U.S. Attorney=s Office and Trial Attorney Mike Grant from the U.S. Department of Justice Criminal Division=s Child Exploitation and Obscenity Section prosecuted the case.
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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Member of National Drug Organization SentencedRead the Press Release
NEWPORT NEWS, Va. – Kevin Gerald Forde, aka “Miami Kev,” 38, of Newport News, Va., was sentenced today to 300 months in prison, followed by 10 years of supervised release, for his participation in a complex drug trafficking organization operating between New York, California, and the Virginia Peninsula.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Mythili Raman, Acting Assistant Attorney General for the Criminal Division, made the announcement after sentencing by United States District Judge Mark S. Davis.
Forde was found guilty by a federal jury on Nov. 7, 2012, and convicted of drug conspiracy, distribution of cocaine, and illegal use of a communication device.
Forde was charged, along with several co-defendants, in a superseding indictment returned on Aug. 15, 2012. According to court documents and evidence presented in court, suppliers of multi-kilogram quantities of illegal drugs in New York, California, Georgia, North Carolina and Texas distributed cocaine and marijuana to leaders of the long-running organization for further distribution on the Virginia Peninsula. Forde was part of a sophisticated drug network that supplied the Thug Relations street gang, which was located primarily in the Aqueduct Apartments and Warwick Lawn Apartments in the Denbigh area of Newport News. Beginning in 1999 until his arrest in 2011, Forde was a buyer and seller of cocaine and crack cocaine who participated in hundreds of transactions with numerous individuals that involved a wide range of quantities.
This case was investigated by the FBI Safe Streets Task Force, the Virginia State Police, the Newport News Police Department, the Peninsula Narcotics Enforcement Task Force, and Homeland Security. Assistant United States Attorney Eric Hurt and Trial Attorney Louis Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division prosecuted 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.Martin Woman Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Belinda Dubray, age 44, of Martin, South Dakota appeared before Chief Judge Jeffrey L. Viken, U.S. District Court, on March 7, 2013 and pled guilty to distribution of a controlled substance. The maximum penalty upon conviction is 10 years of imprisonment and/or a $500,000 fine.
On September 7, 2012 at Martin, Dubray distributed hydrocodone with acetaminophen. The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Northern Plains Safe Trails Drug Enforcement Task Force, the Martin Police Department, and the South Dakota Division of Criminal Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for July 12, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Manhattan U.S. Attorney Announces Charges Against Bronx Pharmacy Owner for Participating in Medicaid Fraud Scheme Involving the Diversion of Prescription DrugsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York and
George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of charges against DAVID CORREA, a Bronx pharmacy owner, for his participation in a Medicaid fraud scheme involving the unlawful diversion of prescription drugs that had previously been dispensed to Medicaid recipients in the New York City area (“second-hand” drugs). Today’s charges are a result of the continuing investigation which led to the arrests on July 17, 2012 of dozens of people in connection with a $500 million Medicaid fraud scheme. CORREA was arrested this morning, and will be presented and arraigned in Manhattan federal court before U.S. Magistrate Judge Michael H. Dolinger later this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “With today’s charges, we continue to target alleged black marketeers of second-hand drugs for prosecution. The alleged scheme enabled David Correa to defraud Medicaid and other insurance providers out of hundreds of thousands of dollars, while potentially compromising the health of very sick people in need of life-saving drugs. Our investigation remains very much ongoing.”
FBI Assistant Director-in-Charge George Venizelos said: “Today’s arrest is part of our ongoing investigation that previously uncovered a massive, multi-state drug diversion conspiracy. This scheme – including the defendant’s alleged conduct – defrauded Medicaid and, indirectly, U.S. taxpayers. It also threatened the health of the patients whose prescriptions were filled with diverted and repackaged medications. Health care fraud is a multibillion-dollar industry it is our mission to put out of business.”
The following allegations are based on the Complaint unsealed today in Manhattan federal court:
From at least 2010 through July 2012, CORREA conspired to purchase various second-hand prescription pills at heavily discounted prices from two individuals, who are now cooperating with the Government, in order to resell the pills at his pharmacy. The prescription drugs were designed to treat various illnesses, including HIV, schizophrenia, and asthma, and were originally dispensed to Medicaid recipients and private insurance beneficiaries in the New York City area, who then sold them into collection and distribution channels that ultimately ended at pharmacies, including the pharmacy CORREA owned. CORREA regularly purchased approximately 50 to 100 bottles of prescription drugs per month for $5,000 to $10,000 from the cooperators. He purchased the pills with cash in transactions outside of his pharmacy or in the parking lot of a nearby department store, where the drugs were delivered to him in plastic bags and beer boxes. By re-selling second-hand prescription pills as “new” to unsuspecting patients, and fraudulently seeking reimbursement from health care benefit programs, including Medicaid, CORREA could potentially reap hundreds of thousands of dollars in unlawful profits. For example, CORREA purchased HIV medication from the cooperators for $200 per bottle, and would have been reimbursed by Medicaid for more than $1,100 per bottle. So he stood to make more than $900 on each bottle of second-hand prescription medication he sold.
CORREA, 43, of Yonkers, New York, is charged with one count of conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and one count of conspiracy to commit various violations of the Food, Drug and Cosmetic Act relating to the misbranding and adulteration of prescription drugs, which carries a maximum penalty of five years in prison.
Mr. Bharara praised the efforts of the FBI's Health Care Fraud Task Force and thanked the FBI for its work on the case.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Jason A. Masimore, Russell Capone, and Edward B. Diskant are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. David Correa Complaint
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Insider Trading Charges Against Former Galleon Portfolio Manager Rengan RajaratnamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced conspiracy and securities fraud charges against RAJARENGAN RAJARATNAM (“RENGAN RAJARATNAM”), a former portfolio manager at the hedge fund management firm Galleon Group, for his alleged involvement in an insider trading scheme. RENGAN RAJARATNAM allegedly conspired with his brother, Galleon founder Raj Rajaratnam, to trade on the basis of material, non-public information (“Inside Information”) concerning Clearwire Corp. (“Clearwire”) and Advanced Micro Devices, Inc. (“AMD”) in 2008, earning nearly $1.2 million in profits in the aggregate. RENGAN RAJARATNAM has not yet been arrested on these charges.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Rengan Rajaratnam and his brother shared more than DNA, they also shared a penchant for insider trading. Along with his brother Raj, Rengan Rajaratnam was allegedly at the heart of an insider trading scheme that swept up an unprecedented number of people in its web of corruption, and with his indictment, we are one step closer to closing that chapter.”
FBI Assistant Director-in-Charge George Venizelos said: “Rengan Rajaratnam’s career arc paralleled his brother’s. He followed in Raj’s footsteps by obtaining an MBA from a top-flight business school. He went to work for Raj at Galleon. As alleged in the indictment, Rengan also engaged in the same illegal conduct as Raj. He reaped the benefit of insider information obtained by Raj, and he planned to reciprocate by cultivating his own source of inside information. Now Rengan’s career arc has descended to the same place his brother’s did less than four years ago: defendant.”
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against RENGAN RAJARATNAM.
The following allegations are based on the Indictment filed yesterday and unsealed today in Manhattan federal court, and other court documents:
The Inside Information concerning Clearwire originated from Rajiv Goel, an employee of Intel Corp. (“Intel”). In March 2008, Goel provided Inside Information to his friend Raj Rajaratnam concerning a significant transaction in which Intel would invest approximately $1 billion in Clearwire in exchange for a 10 percent equity position. Raj Rajaratnam, in turn, shared the Inside Information with his brother, RENGAN RAJARATNAM. RENGAN RAJARATNAM and Raj Rajaratnam used this Inside Information to buy Clearwire stock on March 24 and 25, 2008.
After the U.S. stock markets closed on March 25, 2008, a major news organization published an article describing, in part, the proposed Clearwire transaction. Shortly afterward, RAJARATNAM called his brother to alert him to the news report. In that call, RAJARATNAM said, “We’re f***ed man” because the “Clearwire stuff … just hit” the newspaper. RENGAN RAJARATNAM explained that the news article was “short on details . . . they don’t have any of the equity split. But they named . . . Comcast, they named Time Warner, Clearwire, Sprint.” Raj Rajaratnam replied, “O.K., sh*t.” RAJARATNAM then said, “So, I don’t know how much you got in today,” referring to Raj Rajaratnam’s purchases of Clearwire stock that day, “but I think [Clearwire’s share price] is gonna rip [rise sharply] tomorrow.” In fact, Clearwire’s share price did rise sharply the following day in response to the news article, after which RENGAN RAJARATNAM and Raj Rajaratnam made nearly $1.2 million in profits from the Inside Information concerning Clearwire.
The Inside Information concerning AMD originated from Anil Kumar, who was, at the time, a partner of McKinsey & Co. (“McKinsey”), the global management consulting firm. In 2008, AMD hired McKinsey to advise it in relation to a strategic transaction in which AMD would spin off its manufacturing business into a new entity, and the investment authority of Abu Dhabi would invest in the new entity and in AMD itself. On August 15, 2008, Kumar advised Raj Rajaratnam that AMD and the Abu Dhabi investment authority had “shaken hands and said that they’re going ahead with the deal.” Three hours later, Raj Rajaratnam told RENGAN RAJARATNAM, “I just heard that . . . AMD had a handshake with the . . . Arabs. . . . The Arabs to put [in] six billion dollars.” He also told his brother that he had bought AMD shares based on Kumar’s Inside Information about AMD, and that he was “buying two fifty” – meaning, 250,000 shares of AMD – “for you, OK?” RENGAN RAJARATNAM replied, “Alright, thanks a lot man, I appreciate it.” On August 15, 2008, Raj Rajaratnam bought 3 million shares of AMD for a Galleon hedge fund that he managed, and 250,000 shares of AMD for a Galleon hedge fund that RAJARATNAM managed.
Later that day, RENGAN RAJARATNAM and Raj Rajaratnam spoke again about the AMD Inside Information and also about the affirmative efforts that RAJARATNAM was making to cultivate another McKinsey partner (“McKinsey Partner A”) as a source of Inside Information. Specifically, RENGAN RAJARATNAM advised Raj Rajaratnam that he had just finished a meeting with McKinsey Partner A in which McKinsey Partner A “spilled his beans” and “volunteered the information about the investments” in AMD. Raj Rajaratnam said, “[W]hat we wanna do is . . . get him and then have access to, you know, be able to chat with him” about other Inside Information. Raj Rajaratnam said to RENGAN RAJARATNAM, “[H]e is a little dirty, right?” RAJARATNAM responded, “[H]e’s a little dirty.” RAJARATNAM said that when he had asked McKinsey Partner A what other stocks McKinsey Partner A liked, McKinsey Partner A said, “‘You know, the problem is all my best ideas . . . are inside information.’”
RAJARATNAM, 42, of New York, New York, has been charged with one count of conspiracy to commit securities fraud and six counts of securities fraud. Count One, the conspiracy charge, carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Counts Two through Seven, the securities fraud charges, each carry a maximum potential penalty of 20 years in prison and a maximum fine of $5 million.
Raj Rajaratnam was found guilty of conspiracy and securities fraud charges in 2011 and is currently serving an 11-year prison sentence. Rajiv Goel and Anil Kumar both pled guilty pursuant to cooperation agreements and were sentenced to two years of probation in 2012.
Mr. Bharara praised the investigative work of the FBI. He also thanked the SEC. Mr. Bharara noted that the investigation is continuing.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney David B. Massey is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Rajarengan Rajaratnam Indictment
Manhattan Man Sentenced to 90 Months in Prison for Distributing and Possessing Child Pornography Involving Children as Young as TwoRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MARK HEALEY was sentenced today in Manhattan federal court to 90 months in prison for transporting, distributing, and possessing child pornography. HEALEY was convicted of two counts of transporting and distributing child pornography, and two counts of possessing child pornography, after a one-week trial in September 2011. He was sentenced by U.S. District Judge Shira A. Scheindlin.
Manhattan U.S. Attorney Preet Bharara stated: “The exploitation of children through pornography is a vile and disturbing crime. We take our responsibility to protect children very seriously as the prosecution and sentencing of this defendant once again demonstrates.”
According to the Complaint, the Superseding Indictment, evidence presented at trial, and statements made in court:
Between February 2009 and June 2010, HEALEY used a peer-to-peer file-sharing program called GigaTribe to download child pornography from the Internet and to distribute it to others, including multiple videos of the abuse of children as young as approximately two years old. In the course of the investigation, the Federal Bureau of Investigation (“FBI”) seized a computer belonging to HEALEY, which contained numerous videos and images of child pornography. The computer also contained chats that HEALEY had engaged in over the file-sharing program, in which he sought out videos and images of the most violent abuse of the youngest children, or as he wrote online, “the yngr and more abusive the better.” HEALEY also suggested in chats that he had previously abused unidentified children.
In addition to his prison term, HEALEY, 39, was also sentenced to 10 years of supervised release and ordered to pay a $400 special assessment.
Mr. Bharara praised the FBI for its outstanding work in the investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Daniel C. Richenthal is in charge of the prosecution.
The FBI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (212) 384-1000. It is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at (800) 843-5678 or http://www.cybertipline.com.
Manderson Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota man convicted of Assault With a Dangerous Weapon was sentenced on March 15, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Eric Kills Enemy at Night, a/k/a Eric Kills Enemy, age 19, was sentenced to 33 months’ imprisonment and 3 years of supervised release and ordered to pay $100 to the Victim Assistance Fund.
In September 2012, at Manderson, Kills Enemy at Night struck a man in the arm and face with a wooden mop handle, breaking the man’s arm. He pled guilty on December 5, 2012.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Manderson Man Pleads Guilty to Interstate Transportation of Stolen Motor VehicleRead the Press Release
United States Attorney Brendan V. Johnson announced that Clayton J. Fire Thunder, age 38, of Manderson, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 13, 2013 and pled guilty to Interstate Transportation of Stolen Motor Vehicle. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
On January 13, 2012 at White Clay, Nebraska, Fire Thunder stole a pickup truck and led police units on a chase around the Pine Ridge Indian Reservation in South Dakota before being cornered by police. The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Lincoln Man Sentenced for Conspiracy to Distribute and Distribution of Cocaine BaseRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 21, 2013, Timothy M. Felton, age 37 of Lincoln, was sentenced to 12 ½ years, (150 months), in prison for conspiracy to distribute cocaine base, also known as crack cocaine, and two counts of distribution of cocaine base between February of 2007 and April of 2010. Following the prison term, Felton will serve five years on supervised release.
Felton was held responsible for the distribution of approximately 5 ⅔ ounces of cocaine base. In March of 2010, a confidential informant working with the Lincoln/Lancaster County Narcotics Task Force made two purchases of small amounts of cocaine base from Felton.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriffs Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Lancaster Man Charged with Enticing A MinorRead the Press Release
Richard Haines, Jr., 59, of Lancaster, PA, was charged today by indictment with enticing a minor to engage in sexually explicit conduct so that he could take pictures of the conduct and with possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 130 years with a 15 year mandatory minimum; 5 years up to a lifetime of supervised release; $1,250,000 fine; restitution; forfeiture and $500 special assessment.The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Michael L. Levy and Michelle Rotella.
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, 215-861-8525KC Real Estate Agent Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., real estate agent was sentenced in federal court today for tax evasion.
Joseph R. Fulgenzi, 54, of Kansas City, was sentenced by U.S. District Judge Greg Kays to three years and 10 months in federal prison without parole. The court also ordered Fulgenzi to pay over $400,000 in restitution.
On Aug. 1, 2012 Fulgenzi pleaded guilty to tax evasion. Fulgenzi admitted that he owed substantial income tax that he avoided reporting. Between 1992 and 2007, according to the plea agreement, Fulgenzi had $672,447 in unreported income. The total criminal computation including taxes, penalties, and interest, totals $402,223.
According to his plea agreement, Fulgenzi has been embroiled in non-filing and non-payment issues dating back to the 1980s. Since that time, IRS civil collections has been involved with Fulgenzi. According to court documents, Fulgenzi repeatedly failed to cooperate and comply with court orders during civil collection efforts. Fulgenzi last voluntarily filed a tax return in 1991 for tax year 1990. Although he filed returns from 1982-1990, he has paid no taxes due and owing since 1982.
Fulgenzi admitted that he used his business and domestic partner to impede the IRS’s collection efforts and conceal his assets. For example, in order to conceal his income and assets, Fulgenzi diverted his real estate commissions and other income (such as proceeds from the sale of a rental property) to his partner, through whose bank account all of Fulgenzi’s personal expenses were funneled. Fulgenzi appears to have spent his money on their party lifestyle and trips, according to the plea agreement. The bulk of Fulgenzi’s income appears to have been spent on their home improvements and car payments.
This case was prosecuted by Assistant U.S. Attorney Roseann Ketchmark. It was investigated by IRS-Criminal Investigation.KC Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing a Raytown, Mo., bank last summer.
Carlos D. Davis, 19, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to six years and six months in federal prison without parole. The court also ordered Davis to pay $1,231 in restitution.
On Oct. 30, 2012, Davis pleaded guilty to robbing US Bank, 9063 E. Gregory in Raytown. Co-defendant Deonte L. Robertson, 22, of Kansas City, Mo., pleaded guilty on Nov. 7, 2012 and awaits sentencing.
Davis and Robertson entered the bank on June 29, 2012, and sat together at chairs in the teller lobby. Davis approached a teller while Robertson, acting as the lookout, remained seated in the lobby. Davis handed the teller three paper bags and a note, directing her to put large bills in a bag. The teller put money in the bag and gave it to Davis, who demanded she also fill another bag. When she told Davis that she didn’t have any more money, he and Robertson fled from the bank.
A police officer who responded to the alarm saw Davis and Robertson a few blocks from the bank, walking down the middle of the street. As the officer approached, the men split and began running in different directions. The officer caught Robertson and later found approximately half of the robbery proceeds, about $990, hidden nearby. Davis was arrested later.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Raytown, Mo., Police Department.Juvenile Justice Probation Officer Arrested for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of a criminal complaint charging Corey A. Coley, Sr. and Albert E. Moore, Jr. with conspiracy to defraud the government with respect to claims. Coley is a Probation Officer for the Florida Department of Juvenile Justice. If convicted on all counts, Coley and Moore each face a maximum penalty of 10 years in federal prison.
According to the criminal complaint, Coley and Moore engaged in a scheme to defraud the government by submitting fraudulent tax returns and using the resulting tax refunds for their own benefit and the benefit of others. Coley allegedly obtained the identities used in the scheme from Florida Department of Juvenile Justice records.
“I am outraged by the allegations of this blatant betrayal of trust, and I want to send a clear message that this type of behavior absolutely will not be tolerated; by close of business today, the employee in question will be terminated,” said Florida Department of Juvenile Justice Secretary Wansley Walters. “There are a number of policies in place regarding access to sensitive youth information, and I hold DJJ employees to standards of excellence. Taking advantage of those who’ve entered the juvenile justice system is shameful. I want to assure the victims, their families and public that we are reevaluating current policies and procedures related to youth information and we are committed to promptly addressing any vulnerabilities discovered through that process. As always, we will work with federal, state and local authorities to ensure that anyone that betrays the public trust will be prosecuted to the fullest extent of the law.”
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Hillsborough County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Sara C. Sweeney.
Justice Department Seeks to Shut Down Alabama Tax PreparerRead the Press Release
The United States has asked a federal court in Montgomery, Ala., to bar Kenya Hendrix Adams from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Adams has repeatedly prepared federal tax returns that understate her clients’ federal tax liabilities. The suit alleges that Adams did so by falsely claiming or inflating tax credits or fabricating deductions.
The suit alleges that the IRS has completed examinations of 315 returns prepared by Adams and that 88 percent of those returns understated the filing taxpayer’s liability. Because Adams prepared almost 2,000 returns over a five year period between 2007 and 2012, the suit alleges that the harm to the U.S. Treasury as a result of her conduct could be in the millions of dollars.
Claiming bogus tax refunds is one of the Internal Revenue Service’s “Dirty Dozen” tax scams . The Justice Department has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters in the past decade. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Kenya Hendrix Adams
Complaint for Permanent Injunction (PDF)
Justice Department Reaches Settlement with Two Colorado Law Enforcement Agencies to Improve Communication with People Who Are Deaf or Hard of HearingRead the Press Release
The Justice Department announced today that it has reached a cooperative settlement agreement with the Arapahoe, Colo., County Sheriff’s Office under the Americans with Disabilities Act (ADA). This agreement is a companion to one reached on March 8, 2013, with the city of Englewood, Colo.
The Justice Department received complaints by individuals who are deaf, the Colorado Association of the Deaf and the Colorado Cross-Disability Coalition that officers for the city of Englewood and the Arapahoe Sheriff’s Office were not providing qualified sign language interpreters and other auxiliary aids and services when needed for effective communication with people who are deaf, including arrestees, victims and witnesses. The department’s complainants had also filed a lawsuit based on the same allegations in federal district court, Lawrence et al. v. City of Englewood, et al. While the department initiated investigations into the allegations against Englewood’s police department and the Arapahoe County Sheriff’s Office, and considered intervening in the private lawsuit, it also reached out to the parties to see if there were grounds for a cooperative resolution. All parties, including city of Englewood’s Police Chief John Collins and Arapahoe County Sheriff Grayson Robinson, expressed a commitment to ensure full compliance with the ADA.
The resulting settlement agreements include some model ways to ensure people who are deaf or hard of hearing are able to communicate effectively with law enforcement. For instance, officers for Englewood and Arapahoe County will use this pictogram to ask whether a deaf or hard of hearing person requests a sign language interpreter: www.justice.gov/opa/images/sign-lang-small.gif.
Once the person expresses a need for a sign language interpreter, Englewood and Arapahoe have agreed to provide one under most circumstances, often within an hour of the request.
“People who are deaf or hard of hearing need to be able to communicate clearly with police and sheriff officers, whether they are crime victims, witnesses, arrestees, detainees, or just members of the public,” said Eve Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “Citizens of the City of Englewood and Arapahoe County should be proud of their leaders. I also have to express gratitude to the Colorado Cross-Disability Coalition and the Colorado Association of the Deaf for their important work – and creative problem-solving-- in this area.”
“Englewood Police Chief John Collins and Arapahoe County Sheriff J. Grayson Robinson deserve our thanks and appreciation for their effort to provide effective models for Colorado’s – and the nation’s – law enforcement communities to work with deaf and hard of hearing citizens,” said U.S. Attorney for the District of Colorado John Walsh. “I strongly encourage law enforcement agencies throughout Colorado to follow their lead and adopt these tried-and-true measures. Doing so is simple, cost-effective, and will enhance law enforcement agencies’ protection of public safety while complying with the Americans with Disabilities Act.”
Under the settlements, the city of Englewood and Arapahoe County will each pay $35,000 to the private plaintiffs. In addition, they will enter into contracts with qualified sign language interpreters to ensure ready availability, train their staff on the ADA, appoint ADA coordinators, post signs indicating the availability of sign language interpreters and other auxiliary aids and services for people who are deaf or hard of hearing, provide text telephones and volume control telephones, modify their handcuffing policies for people who use sign language or hand writing to communicate, stock and provide hearing aid and cochlear implant processor batteries in the detention facility, and adopt policies consistent with the ADA. The private plaintiffs also signed these agreements, which resolved the Department of Justice’s investigations as well as the private lawsuit.
For more information on the ADA and law enforcement, visit www.ada.gov. Those interested in finding out more about these settlements or the obligations of law enforcement under the ADA may also call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may be filed by email to [email protected] .
Related Materials:
American Sign Language sign to indicate whether a sign language interpreter is necessary
Arapahoe Settlement AgreementJoplin Man Sentenced for Bank Fraud Scheme; Targeted Tornado VictimRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for a bank fraud scheme that targeted a woman whose home was destroyed by the May 22, 2011, tornado.
Teddy Lane Lawson, 53, of Joplin, was sentenced by U.S. District Judge Richard E. Dorr to three years and two months in federal prison without parole. The court also ordered Lawson to pay $2,960 in restitution to First State Bank.
On April 18, 2012 Lawson pleaded guilty to 10 counts of bank fraud and one count of aggravated identity theft.
Lawson received permission in June 2011 to enter the property of a woman whose home had been destroyed in the tornado, who is identified as "L.L.," in order to remove scrap metal. While he was on the property, Lawson stole a checkbook belonging to L.L., which contained blank checks.
Between July 5 and 9, 2011, Lawson used checks from the stolen checkbook to purchase merchandise from stores in Missouri, Oklahoma and Kansas. Lawson specifically pleaded guilty to 10 counts that charged him with writing checks in Joplin, Springfield, Mo., and Webb City, Mo. Lawson admitted that he signed L.L.'s name (or a similar name) to 20 checks totaling $2,960.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Secret Service and the Joplin, Mo., Police Department.
Jefferson County Man Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 34-year-old Port Neches, Texas, man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jeremiah Paul Selman pleaded guilty to possession of child pornography today before U.S. District Judge Marcia Crone.According to information presented in court, on Oct. 26, 2011, federal officials executed a search warrant at Selman’s residence in Port Neches, Texas. A computer was seized during the search and found to contain more than 600 images of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct. Selman was indicted by a federal grand jury on Jan. 10, 2013 and charged with child pornography violations.
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.
Selman faces up to 10 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.