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14 March 2013
Top federal attorneys commemorate golden anniversary of historic right to counsel caseRead the Press Release
March 18 marks the 50th anniversary of Gideon v. Wainwright, the landmark Supreme Court decision which held that every citizen charged with a serious offense has the right to an attorney at state expense if he or she cannot afford one. In Gideon, the Court for the first time declared it to be “an obvious truth…that in our adversary system of criminal justice, any person haled into court, who is too poor to hire a lawyer, cannot be assured a fair trial unless counsel is provided to him.”
Attorneys in the U.S. Attorney’s Office and the Federal Public Defender’s Office routinely appear in criminal cases here in the Western District of New York. Although often adversaries, today, as the head of our respective offices, we write to express our wholehearted agreement with the Court’s decision in Gideon and celebrate the profound importance of this decision. For over two hundred years, our Constitution’s Sixth Amendment has guaranteed the right to assistance of counsel in a criminal case. Yet, it was not until 1963, that text was read to require the State to pay for an attorney for those who could not afford one. In Gideon, the Supreme Court recognized that the very integrity of our criminal justice system, and the public’s continuing faith in it, depends on effective representation for both the prosecution and defense.
Aside from being morally untenable, a deprivation of the right to the effective assistance of counsel is economically unsustainable. Every taxpayer should be seriously concerned about the systemic costs of inadequate defense for the poor. When the justice system fails to get it right the first time, we all pay, often for years, for new filings, retrials, and appeals. The cost of a wrongful conviction on the accused, his family and the integrity of our system of justice is immeasurable.
And let us also not forget that our country was founded on the notion that all persons possess unalienable, fundamental rights, including life and liberty. For our criminal justice system to truly ensure that “all are equal before the law,” any failure to safeguard those rights when a person is charged with a crime is an affront not only to the accused but to all of us as Americans.
So on March 18, join us in celebrating the Constitutional right of all citizens to the assistance of counsel and the recognition in Gideon, “that this noble ideal cannot be realized if the poor man charged with crime has to face his accusers without a lawyer to assist him.” As the Rev. Martin Luther King, Jr. once stated, "Injustice anywhere is a threat to justice everywhere." While we often, indeed usually, take opposing positions as litigants in court, one belief that we share is that the Gideon decision advanced justice not only for criminal defendants but for all Americans.ABOUT THE AUTHORS: Marianne Mariano is the Federal Public Defender for the Western District of New York. Attorneys in her Office and private attorneys willing to accept court assignments under the Criminal Justice Act, represent the indigent citizens accused of federal crimes in the seventeen westernmost county in New York.
William J. Hochul, Jr. is the United States Attorney for the Western District of New York. He is the chief Federal Law Enforcement Officer for seventeen counties, and is responsible for overseeing the prosecution of all federal criminal offenses in this area. The Office also represents the United States in all civil matters in which the United States is a party.Three Indicted in Mercer County Narcotics Distribution SchemeRead the Press Release
TRENTON, N.J. – A federal grand jury in Trenton today returned a six-count Indictment charging Joseph A. “Jojo” Giorgianni, Mary Manfredo, and Anthony Dimatteo with distribution of oxycodone, U.S. Attorney Paul J. Fishman announced.
Giorgianni, 63, of Ewing, N.J., Manfredo, 65, of Lawrenceville, N.J. and Dimatteo, 31, of Trenton, originally were charged by Complaint, filed Sept. 10, 2012, with one count of conspiracy to distribute oxycodone. The Indictment returned today adds four additional counts of distribution and possession with intent to distribute oxycodone against Giorgianni, three additional oxycodone distribution counts against Manfredo, and two additional oxycodone distribution counts against Dimatteo. Giorgianni, a convicted felon, is also charged in the Indictment with possessing four firearms.
According to the Indictment and other documents filed in this case:
Giorgianni, Manfredo, and Dimatteo conspired and agreed with each other and Giuseppe Scordato, 47, of Hamilton, N.J., Ralph Dimatteo Sr., 62, also of Hamilton, and Charles Hall III, 49, of Trenton, to distribute and possess with intent to distribute oxycodone. Jojo’s Steakhouse, a restaurant that Giorgianni owned and that Mary Manfredo operated, served as a front for this drug distribution organization and a clearing house, where prescription pain pills were stored, provided to individuals such as Anthony Dimatteo and Giuseppe Scordato, and where narcotics proceeds were returned.
Hall previously pleaded guilty to an Information in which he admitted his involvement in the distribution of oxycodone with Giorgianni, Manfredo, and Anthony Dimatteo. Scordato and Ralph Dimatteo are released on bail pending the charges contained in the criminal Complaint.
The narcotics conspiracy count contained in Count One of the Indictment and the four distribution counts contained in Counts Two through Five each carry a maximum penalty of 20 years in prison and $1 million fine.
The firearms count contained in Count Six carries a maximum penalty of 10 years in prison and a $250,000 fine.U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Acting Special Agent in Charge David Velazquez, with the investigation leading to today’s Indictment.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
The charges and allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel: Giorgianni: Jerome A. Ballarotto Esq., Trenton
Manfredo: Antony Simonetti, Esq. Hightstown, N.J.
Anthony Dimatteo: Edward G. Washburne Esq. Red Bank, N.J.Giorgianni, Joseph et al., Indictment
Three Connecticut Men Plead Guilty to Roles in Illegal Gambling RingRead the Press Release
March 14, 2013The United States Attorney for the District of Connecticut announced that three men involved in illegal gambling businesses pleaded guilty yesterday before United States District Judge Vanessa L. Bryant in Hartford. THOMAS UVA IV, also known as “Little T,” 32, of Stamford, pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) and one count of money laundering, JOHN LIQUORI, 43, of North Haven, pleaded guilty to one count of RICO conspiracy, and JOHN COLELLO, 54, of Stamford, pleaded guilty to one count of operating an illegal gambling business.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, UVA, LIQUORI, COLELLO and 17 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden. UVA and LIQUORI are alleged associates of the Gambino organized crime family.
The investigation, which included the use of court-authorized wiretaps, revealed that UVA, LIQUORI, COLELLO and others were involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. In addition, UVA and others operated a card gambling club at 514 Glenbrook Road in Stamford, and LIQUORI and others operated a card gambling club at 2965 State Street in Hamden. Certain other co-conspirators also operated a gambling club at 859 East Main Street in Stamford.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
UVA, LIQUORI and COLELLO are each scheduled to be sentenced on June 3, 2013. UVA faces a maximum term of imprisonment of 40 years, LIQUORI faces a maximum term of imprisonment of 20 years and COLELLO faces a maximum term of imprisonment of five years.
Five other defendants have pleaded guilty to charges stemming from this investigation. As to defendants who are awaiting trial, an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]The Last Defendant in Custody of 23 Charged in the Latin King Rico Conspiracy Indictments Pled Guilty Today,Read the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana – announced U.S. Attorney David Capp of the Northern District of Indiana and Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Dante Reyes, 35, a citizen of Mexico, pled guilty before Senior District Judge Rudy Lozano to the felony offense of conspiracy to participate in racketeering activity.
Previously charged and entered a plea of guilty in the case are:
Alexander Vargas, 35, of Highland, Indiana
Sisto Bernal, 46, of Chicago, Illinois
Jose Zambrano, 33, of Chicago, Illinois
Jason Ortiz, 30, of Chicago, Illinois
Brandon Clay, 26, of Chicago, Illinois
Jermaine Ellis, 23, of Chicago, Illinois
Martin Anaya, 42, of Chicago, Illinois
Ivan Quiroz, 30, of Posen, Illinois
Hiluterio Chavez, 37, of Chicago, Illinois
Sergio Robles, 24, of Hammond, Indiana
Emiliano Esparza, 40 of Chicago, Illinois
Santiago Gudino, 28, of Hammond, Indiana
Gabriel Jalomos, 26, of Chicago, Illinois
Oscar Gonzalez, 23, of Hammond, Indiana
David Lira, 39, of Lansing, Illinois
Victor Meza, 24, of Hammond, Indiana
Antonio Gudino, 31, of East Chicago, Indiana
Bianca Fernandez, 23, of Chicago, Illinois
Alex Guerrero, 43, of Chicago, Illinois
Antonio C. Martinez, Jr., 42, of Chicago, Illinois
Also charged, and still at large, is Paulino Salazar, 30, of Chicago, Illinois.
Six of the defendants have been sentenced:
Brandon Clay was sentenced to 360 months imprisonment,David Lira was sentenced to 180 months imprisonmentand Antonio Gudino was sentenced to 175 months imprisonment after pleading guilty to conspiracy to participate in racketeering activity.
Victor Meza, Jr. was sentenced to 96 months imprisonment after pleading guilty to conspiracy to participate in racketeering activity and conspiracy to possess with the intent to distribute and distribute cocaine and marijuana.
Bianca Fernandez was sentenced to 36 months imprisonment for conspiracy to murder in aid of racketeering activity.
Alex Guerrero was sentenced to 228 months imprisonment after pleading guilty to conspiracy to participate in racketeering activity, conspiracy to possess with the intent to distribute and distribute cocaine and marijuana. Interference with commerce by threats or violence and use and carrying of a firearm during and in relation to crimes of violence and drug trafficking.
According to this indictment, the Latin Kings is nationwide gang that originated in Chicago and has branched out throughout the United States, including to Texas. The Latin Kings is a well organized street gang that has specific leadership and is comprised of regions that include multiple chapters.The indictments filed in these cases allege that the Latin Kings gang was responsible for at least 19 murders in the Chicago/Northwest Indiana area and Big Spring, Texas.
United States Attorney David Capp stated, “The Latin King indictments and the subsequent arrests and guilty pleas by all has had a major, positive impact on the level of violence in our communities. My thanks to all for the tireless efforts by our local and federal law enforcement and our attorneys.We are not finished – we will continue to investigate and prosecute members of organized criminal gangs or those who deal with such individuals.”
This case is being investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; Federal Bureau of Investigation; the U.S. Immigration and Custom Office of Homeland Security Investigations; the National Gang Targeting, Enforcement & Coordination Center; the National Gang Intelligence Center; the Chicago Police Department; the East Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; and the Houston Police Department.The investigation of the Chicago Police Department officers was conducted by Chicago City Public Corruption Task Force, a Chicago Police Department- Internal Affairs and FBI - Chicago law enforcement initiative.This case is being prosecuted by Assistant United States Attorney David J. Nozick, and Joseph A. Cooley, Trial Attorney, United States Department of Justice - Organized Crime and Gang Section.
The specific sentence in each case to be imposed upon conviction will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Teva Pharmaceuticals USA to Pay $2.25 Million Civil Penalty for Air, Water and Hazardous Waste Violations at Missouri FacilityRead the Press Release
Teva Pharmaceuticals USA Inc. has agreed to pay a $2.25 million civil penalty to settle alleged violations of the federal Clean Air Act (CAA), Clean Water Act (CWA), and the Resource Conservation and Recovery Act (RCRA), as well as the Missouri Air Conservation Law, Clean Water Law and Hazardous Waste Management Law at its facility in Mexico, Mo., announced the Department of Justice, the Environmental Protection Agency (EPA) and the Missouri Department of Natural Resources today.
A 2007 inspection of the Missouri facility revealed violations of the CAA. The violations included failure to control emissions of hazardous air pollutants from wastewater and failure to comply with regulations designed to prevent leaks of air pollutants from equipment at the facility.
In 2007, an EPA inspection found the Teva facility was discharging pollutants above permitted levels established by the City of Mexico’s Pretreatment Program, in violation of the CWA. In some cases, these pollutants were causing interference with the city’s ability to treat its domestic sewage, leading to pollutant discharges into the Salt River. A 2008 inspection found that Teva was discharging a green effluent that ultimately discolored a portion of the Salt River in November and December 2008.
In 2009, an inspection by the Missouri Department of Natural Resources uncovered various RCRA violations. These violations included failure to determine if waste was hazardous, illegal storage of hazardous waste, failure to comply with labeling requirements and offering hazardous waste for transport without a manifest.
“This settlement penalizes Teva for multiple violations of U.S. environmental laws when it allowed excess emissions of hazardous air pollutants from Teva’s wastewater treatment facility and excess discharges of pollutants into the City of Mexico, Missouri’s wastewater treatment facility,” said Ignacia S. Moreno, the Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The agreement is protective of human health and the environment because it requires Teva to offset its excess emissions, install modern equipment that will increase the recovery and reuse of hazardous pollutants and reduce air emissions, as well as enhance its leak prevention capability.”
“With numerous violations over a period of years, Teva’s actions resulted in significant environmental damage to the air and water,” said EPA Region 7 Administrator Karl Brooks. “The penalty and injunctive relief required by this agreement send a strong message to Teva and others that businesses must comply with environmental laws.”
Teva’s $2.25 million penalty includes a $1.125 million payment to the U.S. Treasury and a $1.125 million payment to the State of Missouri.
In addition to the penalty, Teva will complete other actions at the facility valued at approximately $2.5 million. These include the installation of equipment to recover and reuse approximately 59.5 tons of methylene chloride and reduce other emissions by 19 tons over a five-year period. Teva will also conduct an audit to identify past causes of CWA violations, implement a program to prevent leaks of hazardous air pollutants at the facility, take actions to prevent future violations and implement an Environmental Management System with third party monitoring.
As a result of this Consent Decree, Teva has certified that it is in full compliance with CAA, CWA and RCRA regulations.
The proposed settlement will be lodged in the U.S. District Court for the Eastern District of Missouri and is subject to a public comment period and final court approval. The consent decree can be viewed at the Department of Justice website: www.justice.gov/enrd/Consent_Decrees.html
Learn more about EPA’s civil enforcement of the Clean Air Act: www.epa.gov/air/caa/
Learn more about EPA’s civil enforcement of the Clean Water Act: www.epa.gov/compliance/civil/cwa/index.html
Learn more about EPA’s civil enforcement of RCRA: www.epa.gov/compliance/civil/rcra/index.htmlStatement of United States Attorney Carmen M. Ortiz Regarding First Circuit Court of Appeals' Decision in United States V. James "Whitey" BulgerRead the Press Release
"We respect the opinion of the Court and will continue to prepare the matter for trial. We are hopeful that this opinion will not cause a delay, as it has always been our goal to try this case as soon as possible. The victims' families have waited long enough."
For Audio: http://www.justice.gov/usao/ma/audiovideo.html
Smith County Man Sentenced for Attempted Arson, Solicitation of Murder for HireRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 43-year-old Tyler, Texas, methadone clinic owner has been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Edward Jacobs pleaded guilty on Dec. 18, 2012, to attempted arson and solicitation of murder for hire and was sentenced to 188 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on Mar. 19, 2012, Jacobs gave Daniel Kubisty $3,000 to burn down the Add-Life Recovery Center, a methadone clinic located in a building at 3322 E. Fifth Street in Tyler. Jacobs and Kubisty conspired to burn down the building in order to gain a competitive advantage for the Methadone Clinic of East Texas, which was owned by Jacobs and also had an office in Tyler, Texas. On Mar. 19, 2012 Kubisty was arrested in Tyler by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and was found to have a gasoline can, with a wick saturated in gasoline protruding from its neck, in the back of his pickup.
After Kubisty’s arrest, Jacobs feared Kubisty would testify against him and on June 1, 2012, he arranged a meeting with a man he believed he could hire to murder Kubisty in order to prevent Kubisty’s testimony. During the meeting, Jacobs offered to pay the hit-man $12,000 for Kubisty’s murder. ATF was monitoring the meeting and arrested Jacobs at the scene.
Kubisty pleaded guilty to attempted arson on Jan. 19, 2013 and is awaiting sentencing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Silver Spring Tax Preparer Pleads Guilty to Making A False Statement on A Tax ReturnRead the Press Release
Greenbelt, Maryland – Alejandro A. Salas, age 65, of Silver Spring, Maryland pleaded guilty today to making a false statement on a tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Mr. Salas’ license to run his business was not a license to engage in fraud,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office. “The defendant's misconduct of underreporting his income from his tax preparation business was purely fraudulent. IRS Criminal Investigation will use our investigative and financial expertise to detect and hold accountable individuals like Mr. Salas, who carry out these types of fraudulent schemes.”
According to his plea agreement, from 2004 to 2008, Salas ran a tax return preparation business in Silver Spring, Maryland, under the name of G&S Enterprises of Maryland (G&S). His business also offered translation services, provided accounting and bookkeeping services for local companies, facilitated international money transfers, brokered mortgage loans, and offered travel agency services. In 2009, after learning that he was the target of a criminal investigation, Salasmoved the location of his business and began preparing tax returns for clients under the corporate name TAX USA, a business which he incorporated under the name of another individual. Between 2004 and 2009, Salas’s business prepared over 15,700 tax returns for clients.
Salas admitted that for tax years 2003 through 2005, he underreported the income from his tax preparation business on his individual income tax returns; and underreported the income from the business on the corporate tax return he filed for the 2006 tax year. For example, on Schedule C of his 2005 income tax return, Salaslisted thegross income from his sole proprietorship as $295,537, when in fact, the gross income from his business substantially exceeded that amount. For tax years 2007 through 2009, Salas failed to file either corporate or individual tax returns. The total tax loss to the government as a result of Salas’ actions is at least $200,000.
Salas faces a maximum sentence of three years in prison and a fine of $250,000. U.S. District Judge Roger W. Titus has scheduled sentencing for June 10, 2013 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the IRS-CI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who is prosecuting the case.
Several Plead Guilty in Federal Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – The last three area men arrested in January for various drug trafficking and money laundering conspiracies have entered guilty pleas, United States Attorney Kenneth Magidson announced today. Manuel Pena aka “Super,” 47, Ignacio Pena aka “Nacho,” 44, and Jose Fidel Guajardo aka “Garfield,” 40, all of Corpus Christi, appeared before Senior United States District Judge Janis Graham Jack this morning and pleaded guilty.
Others named in the indictment, including Raul Leal Martinez aka “Indio” or “Wahoo,” 36, Rocky Bazaldua aka “Rock,” 31, David Pete Dominguez aka “Buda,” 30, and Julieann Gutierrez, 24, all also of Corpus Christi, have already pleaded guilty to their roles in the conspiracies.
The indictment charged all of the defendants with conspiring from June 1, 2008, to Jan. 8, 2013, to possess with intent to distribute more than 50 grams of methamphetamine. The investigation revealed that Manuel Pena, a member of the Texas Syndicate prison gang, orchestrated various drug deals in the Corpus Christi area. Evidence proved that in May 2011 Manuel Pena made deals to provide cocaine and methamphetamine to Bazaldua and Dominguez. He admitted he acquired cocaine and agreed to sell methamphetamine to Guajardo. Pena also received methamphetamine from Martinez. In April 2011, Gutierrez transported nearly 500 grams of pure methamphetamine to San Antonio for Manuel Pena, with whom she was living. Ignacio Pena, Manuel Pena’s brother, helped receive and deliver various amounts of cocaine and methamphetamine to various drug dealers in Corpus Christi.
Martinez and Guajardo also pleaded guilty to conspiring to launder the proceeds of their drug sales through various financial transactions. As part of their plea agreements, Manuel Pena, Martinez and Guajardo also agreed to forfeit their interests in various properties around Corpus Christi.
All defendants are set for sentencing in May 2013. With the exception of Martinez and Gutierrez, who were permitted to remain on bond, the remaining defendants will remain in custody pending the sentencing hearing. All face a minimum of 10 years and up to life in federal prison and a possible $10 million fine. Martinez and Guajardo also face up to 20 years imprisonment for the money laundering conviction.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices, and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
Serial Bank Robber Pleads GuiltyRead the Press Release
Aaron Thomas, 47, of Philadelphia pleaded guilty today to six counts of bank robbery, announced United States Attorney Zane David Memeger. Thomas pleaded guilty to robbing six banks: (1) PNC Bank located on Old York Road in Abington on August 10, 2012; (2) TD Bank located on City Avenue in Philadelphia, on August 8, 2012; (3) TD Bank located on City Avenue in Philadelphia on May 17, 2011; (4) TD Bank located on Moreland Road in Abington, on September 17, 2009; (5) TD Bank located on Grant Avenue in Philadelphia, on September 17, 2009; and (6) TD Bank located on Old York Road in Abington on July 24, 2009. Thomas was apprehended by Abington Police following the PNC Bank robbery on August 10, 2012 after a vehicle and foot pursuit through the streets of Abington and Philadelphia which resulted in two police officers being injured and several vehicles damaged. Thomas has two prior convictions for bank robbery.
Sentencing is scheduled for June 12, 2013 before the Honorable Lawrence F. Stengel.
The case was investigated by Federal Bureau of Investigation, the Abington Township Police Department, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert J. Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Sentences for March 08 - 11, 2013Read the Press Release
Lowell Todd Newby, 49, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 11, 2013, for possession with intent to distribute 91.8 grams of methamphetamine. Newby was arrested in Rock Springs. He received 180 months imprisonment, to be followed by five years of supervised release, was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Steven Gilbert Roubideaux, 43, of Evansville, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 8, 2013, for possession of a firearm with an obliterated serial number. Roubideaux was arrested in Casper, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Juan Vazquez-Baez, 41, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 8, 2013, for illegal re-entry of a previously deported alien into the United States. Vazquez-Baez was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jeremias Mendoza-Lopez, 34, of Guatemala, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 8, 2013, for illegal re-entry of a previously deported alien into the United States. Mendoza-Lopez was arrested in Cheyenne, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Scott Tyler Winchell Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 13, 2013, before Chief U.S. District Judge Richard F. Cebull, SCOTT TYLER WINCHELL, a 19-year-old resident of Billings, appeared for sentencing. WINCHELL was sentenced to a term of:
Prison: 12 months and 1 day
Special Assessment: $200
Supervised Release: 3 years
WINCHELL was sentenced in connection with his guilty plea to possession of a firearm with an obliterated serial number and possession of an unregistered firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On May 11, 2012, a Billings Police officer observed a white Lincoln Towncar traveling east on King Avenue East in Billings. The vehicle failed to dim its lights and the officer attempted to make a traffic stop. The vehicle failed to stop, turned corners on several blocks and hit a dead-end street where it stopped. The driver exited the vehicle and ran. The officer contacted the registered owner of the vehicle and received permission to search the vehicle.
Drug paraphernalia found on the car's front seat and shotgun ammunition in the glove compartment were recovered during the search. The officer also observed what appeared to be a sawed-off rifle in the trunk and stopped his search. The Bureau of Alcohol, Tobacco, Firearms and Explosives was called and a state search warrant obtained. Recovered was Ruger, model 10/22, .22 caliber, semi-automatic rifle, serial number obliterated, having an overall length of approximately 19 3/4" and a barrel length of approximately 9 7/16" that was not registered in the National Firearms Registration and Transfer record. Both the barrel and the overall length were in violation of federal law and had clearly been sawn off. In addition, the serial number had been ground off.
The owner reported that he had purchased the car for WINCHELL and that WINCHELL had been driving it. The officer identified WINCHELL as the person who had been driving the car and had ran from the scene.
Law enforcement attempted to contact WINCHELL and spoke with his brother. His brother asked how much trouble WINCHELL was in and reported that WINCHELL "didn't even have a chance to shoot the guns yet." The officer also spoke with WINCHELL's mother who stated that WINCHELL would haven't had the guns for a bad purpose. She reported she would have WINCHELL contact the officer, but that did not occur.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WINCHELL will likely serve all of the time imposed by the court. In the federal system, WINCHELL does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
San Angelo, Texas, Man Pleads Guilty in Federal Court to Federal Obscenity ChargeRead the Press Release
LUBBOCK, Texas --- Billy Ray Doyle, 59, of San Angelo, Texas, appeared in federal court in Lubbock, Texas, today and pleaded guilty before U.S. District Judge Sam R. Cummings, to one count of attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Doyle faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Doyle has been in custody since his arrest on December 19, 2012.
In late November 2012, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) noticed an advertisement posted on an Internet message board entitled “Looking for company 18-25ish –m4m,” and determined that it was posted by Doyle. During ensuing email conversations between Doyle and an undercover agent who posed as a 15-year-old male, Doyle discussed with the undercover agent such things as showering together, lying naked on a bed together and possibly engaging in other sexual activity. The undercover agent’s age was discussed several times and Doyle repeatedly promised that a potential sexual relationship would remain secret. On December 15, 2012, Doyle emailed the undercover agent a sexually explicit photograph of himself. Doyle was arrested a few days later at a convenience store where he and the undercover agent had agreed to meet.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI is in charge of the investigation and Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Pierre Man Pleads Guilty and Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota man was convicted of Possession of a Controlled Substance and sentenced on March 13, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Michael Mancuso, age 19, was sentenced to 1 year probation, $1,000 fine and $25 special assessment to the Victim Assistance Fund.
The charge stems from an incident on July 1, 2012 wherein Mancuso knowingly and intentionally possessed marijuana, a Schedule I controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Task Force and Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Mancuso was released with conditions to begin his probation sentence.
Phenix City Man Guilty of Drug TraffickingRead the Press Release
Montgomery, Alabama - A federal jury found Shedrick D. Hollis, 40, of Phenix City, guilty of drug trafficking and weapons possession charges, George L. Beck, U.S. Attorney for the Middle District of Alabama announced today.
Testimony at trial established that in late February, 2011, the United States Marshal’s Gulf Coast Regional Fugitive Task Force (GCRFT) received a request from the United States Marshal’s Southeast Regional Fugitive Task Force, Atlanta Division, requesting assistance in locating and arresting Hollis for violations of his parole on Distribution and Trafficking of Cocaine out of Georgia. The GCRFT contacted the Phenix City Police Department to aid in the search for Hollis. Law enforcement developed information that Hollis was in a rented vehicle which was located at an address in Phenix City. On March 1, 2011, the GCRFT went to the residence, saw the car and, while identifying themselves as law enforcement, knocked on the door. Officers saw Hollis through a window and ordered Hollis to open the door. When Hollis did not comply, the front door of the residence was breached and Hollis was taken to the ground when he refused commands to go to the ground. While conducting a protective sweep of the residence to ensure that no dangers to the safety of the officers were in the residence, officers located a shotgun and rifle, both loaded, under the bed in the north bedroom, as well as a plastic bag containing a large amount of marijuana and scales. Hollis was arrested and the Metro Narcotics Task Force was contacted and responded to the scene. After receiving a search warrant from Russell County Circuit Judge Al Johnson, Task Force Officers located a blue children’s backpack, containing a large amount of cocaine powder in a plastic zip lock bag, bags of pills which were later determined to be BZP, a club drug similar to Ecstasy, multiple plastic bags of powder and crack cocaine, and marijuana, scales containing cocaine and marijuana residue, and $5,000 in $100 and $20 denominations, all in addition to the items found in the earlier protective sweep.
Hollis faces life in prison when he faces United States District Judge W. Keith Watkins in approximately three months.
The case was investigated by the Drug Enforcement Administration and the Metro Narcotics Task Force, with assistance from the Russell County Sheriff’s Department and the Phenix City Police Department. The case was prosecuted by Assistant U.S. Attorneys Susan R. Redmond and Jared Morris.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Owner of Tax Preparation Business Sentenced to Federal PrisonRead the Press Release
Montgomery, Alabama - Bruce King, the founder and operator of Premier Tax, was sentenced yesterday to 70 months in prison and ordered to pay $781,305 in restitution to the Internal Revenue Service (IRS) for orchestrating a tax fraud scheme at his business, George L. Beck, U.S. Attorney for the Middle District of Alabama announced. King had previously pleaded guilty to charges of conspiring to defraud the United States and filing false tax returns.
According to court documents, Premier Tax was a tax preparation business operated by King that had several locations in Alabama and Georgia. King held training sessions in which he taught preparers how to falsify tax returns in order to fraudulently increase clients’ tax refunds. Those he taught went on to work at Premier Tax and filed numerous false tax returns. According to court documents, the tax loss caused by these fraudulent returns exceeded $1 million. To date, seven return preparers trained by King have also pleaded guilty and been sentenced.
“This case should serve as a warning to all of those criminals that file or attempt to file false tax returns to get increased tax refunds,” stated U.S. Attorney Beck. “We will continue to use our resources to investigate and prosecute those criminals and will work diligently to ensure that they receive the stiff prison sentences that they deserve.”
This case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason Poole and Justin Gelfand of the Justice Department’s Tax Division and Assistant United States Attorney Jared Morris are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Orlando Man Sentenced to More Than Six Years in Federal Prison for Possessing of Child PornographyRead the Press Release
Orlando, FL - Chief United States District Judge Anne C. Conway sentenced Geoffrey Jones (61, Orlando) today to 78 months in federal prison, followed by 20 years of supervised release, for possessing child pornography. Jones pleaded guilty on November 1, 2012.
According to court documents, Jones used a file sharing program to download child pornography from the internet. On May 30, 2012, a search warrant was executed at his residence. A forensic examination showed that Jones’s computer, external hard drive, and compact disks contained more than 600 images and videos depicting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Christopher LaForgia.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Ocala Man Pleads Guilty to Manufacturing Counterfeit CurrencyRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that Jerrell L. Epps (27, Ocala) pleaded guilty today to making counterfeit United States Federal Reserve Notes. Epps faces a maximum penalty of 20 years in federal prison. A sentencing date has not been set.
According to court documents, beginning on at least December 3, 2009, and continuing through September 15, 2011, Epps manufactured counterfeit United States currency at his residence. Epps provided some of the counterfeit currency to others with the knowledge that it would be passed into circulation. He also sold some of the counterfeit currency to another individual in exchange for genuine currency. On February 26, 2010, United States Secret Service agents recovered counterfeit currency and equipment used to manufacture the notes from Epps's Ocala home.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
North Dakota Man Convicted of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Joey White Eagle, age 32, of Fort Totten, North Dakota appeared before U.S. Magistrate Judge William D. Gerdes on March 7, 2013 and pled guilty to Superseding Information that charged him with Assault by Striking, Beating and Wounding. The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, restitution and a $10 assessment to the Victim Assistance Fund.
The conviction stems from a gang fight that occurred on April 24, 2010 at Bullhead, South Dakota between the Little Eagle family and their supporters and the White Eagle family and their supporters.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for May 30, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Newberg Man Arrested for Child Pornography OffensesRead the Press Release
Richard Tietjens Alleged to Have Amassed Thousands of Videos of Children Being Sexually AbusedPORTLAND, Ore. – Richard Tietjens, 62, of Newberg, was arrested and arraigned today before U.S. Magistrate Judge Paul Papak, on a federal indictment charging him with multiple counts of transportation and possession of child pornography. A grand jury returned the indictment earlier this week. The maximum penalty, if convicted, is up to 20 years of in prison, per count, for transporting child pornography, and up to 10 years in prison for possession of child pornography. The transportation charges also carry a mandatory minimum term of five years in prison.
Tietjens is charged with four counts of transportation of child pornography between July and August 2011. According to the indictment, Tietjens emailed child pornography to four yahoo email accounts between July and August 2011, using the email account [email protected], and possessed child pornography on December 12, 2011, the date law enforcement executed a search warrant at his residence.
According to statements at Tietjen’s arraignment, the Newberg Police Department seized a desktop computer with four hard drives from Tietjens’ residence in December 2011, and a forensic examination by the case agent revealed that the devices contained more than 10,000 images of child sex abuse, and more than 4,500 videos of children being sexually abused. According to the prosecutor, the Newberg Police also seized two servers with another 12 hard drives connected to them from Tietjens’ garage, which also contained child pornography. One of the servers was allegedly used to download child pornography using a peer-to-peer software program, and another server was unsecured and used by Tietjens and others to store files, including child pornography. The prosecutor stated that the two servers contained more than 15 terabytes of storage space. According to arguments at the hearing, Tietjens had been actively trading child pornography through email, instant messenger service, and the peer-to-peer program, and the prosecutor argued Tietjens was likely addicted to child pornography based on the size of the collection he had amassed. Tietjens is an IT employee who built his own computer at home and built at least one of the servers. The prosecutor stated that the Newberg police seized more computers and at least one additional server from Tietjen’s residence this past Monday, but the police had not yet examined them.
The government requested that Tietjens be detained pending trial. Magistrate Papak continued the hearing until Monday at the government’s request to allow a forensic examiner to conduct a preliminary review of the newly seized computers to determine whether any of the devices contain additional child pornography.
This investigation was conducted by the Newberg-Dundee Police Department. The investigation began as part of an undercover operation regarding online sexual exploitation of children. The forensic examination was conducted by the Newberg-Dundee Computer Crimes Unit.
U.S. Attorney Amanda Marshall praised the work of the Newberg-Dundee Police Department and stated, “The allegations in this case illustrate how innovations in technology have exponentially increased the volume of images of child abuse that one person can amass. Each image of child pornography represents a separate and distinct harm to the child whose abuse is depicted.”
Newberg-Dundee Police Captain Jeff Kosmicki said their Computer Crimes Unit forwarded relevant information to other federal agencies in other jurisdictions that led to additional search warrants being issued and executed.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty in court.
This case is being prosecuted by Assistant U.S. Attorney Jane Shoemaker, Chief of the U.S. Attorney’s Office Violent Crimes Unit, as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visitwww.usdoj.gov/psc and click on the tab "resources."
New Iberia Resident Pleads Guilty to Stealing from FEMARead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that Jacqueline Marie Benjamin, 43, of New Iberia, La., pleaded guilty before U.S. District Court Judge Richard T. Haik to conspiring to defraud the Federal Emergency Management Agency out of thousands of dollars in false hurricane damage claims.
In a 2005 application to FEMA following hurricanes Katrina and Rita, the defendant’s sister-in-law Valerie Benjamin applied for rental assistance money claiming she was forced to move as a result of storm damage to her home. According to the stipulated factual basis signed by the defendant in open court, Valerie Benjamin listed her new residence in New Iberia as a rental property and listed Jacqueline Benjamin as her landlord when she was not. As a result of the fraudulent claim, between April 20, 2007 and June 22, 2007, Jacqueline Benjamin received four checks for storm damage losses. The defendant took $200 out of each check and paid Valerie Benjamin.Jacqueline Benjamin also admitted in the stipulated factual basis that in 2008 following hurricanes Gustav and Ike, she gave permission for Valerie Benjamin to file FEMA disaster assistance applications in her name. The FEMA application stated that Jacqueline Benjamin had to evacuate her home because of storm damage. The application also contained false landlord statements, false medical bills, false medical bill receipts, false insurance statements, false rental agreements, and false rental receipts. Jacqueline Benjamin admitted that she never left her home, and the home sustained only minor damage. Between Dec. 22, 2008 and April 9, 2009, the defendant received four checks for storm damage losses. She took $200 out of each check and paid Valerie Benjamin.
Jacqueline Benjamin faces five years in prison, a $250,000 fine, or both with three years of supervised release. A sentencing date has not been set.
The Federal Emergency Management Agency conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.Mohammed Sameer Ahmed Charged with Selling Counterfeit Nfl JerseysRead the Press Release
MOHAMMED SAMEER AHMED, age 36, a resident of Kenner, Louisiana was charged yesterday in a Bill of Information with trafficking in counterfeit goods, announced U.S. Attorney Dana Boente.
According to the Bill of Information, between June and October of 2010, AHMED was found with 58 counterfeit NFL jerseys in his French Quarter shop. The counterfeit “Reebok” Saints jerseys had false “NFL” holograms on them that were likely to lead customers to believe that the jerseys were authentic New Orleans Saints jerseys.
If convicted, AHMED faces a maximum term of imprisonment of ten years, a fine of $2,000,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Boente reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Department of Homeland Security. The case is being prosecuted by Assistant United States Attorney Spiro G. Latsis.
Mission Woman Indicted for Burglary and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman has been indicted by a federal grand jury for Second Degree Burglary and Larceny.
Tara Makes Room For Them, age 19, was indicted by a federal grand jury on February 13, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 13, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 15 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Makes Room For Them is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Makes Room For Them was released on bond pending trial. A trial date has not been set.
Minneapolis Man Sentenced for Robbing Bank, Four StoresRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 30-year-old Minneapolis man was sentenced for committing a series of armed robberies at various businesses, including a US Bank. United States District Court Judge Patrick J. Schiltz sentenced Donte McKinley Hollister to 210 months in prison on one count of armed bank robbery. As a part of his plea agreement, Hollister also admitted committing four additional armed robberies that he was charged with under the Hobbs Act. Hollister was indicted on January 11, 2012, and pleaded guilty on September 18, 2012.
In his plea agreement, Hollister admitted that on October 17, 2011, he stole approximately $1,890 from the US Bank located at 2338 Central Avenue in Minneapolis. During the robbery, Hollister brandished a black and silver handgun, vaulted the teller counter, and demanded cash from the teller. After the teller gave him about $1,890, Hollister fled the bank.
In addition, Hollister also admitted that he stole approximately $300 from the Way to Go Sports store in Golden Valley on September 26, 2011; approximately $200 from the Wine Styles store in Medina on September 27, 2011; attempted to steal cash from the Mattress Giant store in Roseville on October 7, 2011; and attempted to steal cash from the Second Wind Exercise Equipment store in St. Louis Park on October 13, 2011. In each of these instances, Hollister brandished a firearm to threaten store employees. He was arrested on October 17 in connection with the September 26 robbery.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute violent habitual criminals who commit armed robbery in places of business that involve interstate commerce. Federal prosecution of these cases is sometimes beneficial since the penalties are often tougher than under state law. Furthermore, because the federal system has no parole, offenders serve virtually their entire prison sentences behind bars.
The case was the result of an investigation by U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Hennepin County Violent Offenders Task Force, and the police departments of Brooklyn Park, Golden Valley, Medina, Roseville and St. Louis Park. It was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.Members of Jewelry Theft Ring SentencedRead the Press Release
NEWPORT NEWS, Va. – William Leandro Herrera-Bohorquez, 33, of Colombia, was sentenced today to 87months in prison, followed by three years of supervised release, for his role in a highly sophisticated jewelry theft ring. He was also ordered to pay restitution in the amount of $891,441 and to forfeit $4,435,500.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Criminal Division; and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by United States District Judge Arenda Wright-Allen.
Herrera-Bohorquez pleaded guilty on Dec. 6, 2012, to conspiring to commit robberies affecting interstate commerce. According to court records, Herrera-Bohorquez was a member of an organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least six other states. He was charged along with seven other individuals who were members of the Richmond-based ring that regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home. In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise. In addition, the thieves would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension.
After a successful robbery, members of the ring allegedly traveled to New York to sell the merchandise to businessmen, who acted as “fences” and coordinated re-selling the stolen property or melting it down for future use.
Today’s sentencing follows the sentencing of Raul Antonio Escobar-Martinez, 37, aka “Tony,” of Richmond, Va., on March 7, 2013. Escobar-Martinez was sentenced to 87 months in prison, followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,268,696and to forfeit $4,435,500.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.
Assistant United States Attorney Eric M. Hurt and Trial Attorney Jerome Maiatico 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.McAllen Urologist and Wife Charged in Heath Care Fraud Scheme and Conspiracy to Violate Iranian SanctionsRead the Press Release
HOUSTON – A federal grand jury has returned a four-count, superseding indictment against urologist Hossein Lahiji M.D. and his wife, attorney Najmeh Vahid Lahiji, both of McAllen and San Antonio, United States Attorney Kenneth Magidson announced today. The second superseding Indictment, returned late yesterday, charges the couple with conspiracy to commit health care fraud, health care fraud and for conspiring to violate Iranian sanctions.
The Lahijis are set to appear in Houston tomorrow morning at 9:45 before U.S. District Judge Mary Milloy.
This indictment alleges the Lahijis conspired to violate Iranian Sanctions by transferring approximately $1.1 million to Iran. The Lahijis allegedly utilized an unlicensed money remitting business called the Espadana Exchange to avoid the United States banking regulations and to allegedly make it appear they were not violating the United States embargo with Iran. The indictment alleges the defendants sent some of the monies representing profits of their alleged illegal health care fraud scheme to Iran for the purpose of making an investment on behalf of Hossein Lahiji and Najmeh Vahid Lahiji in real estate rental property in Iran, all in violation of the Iranian sanctions.
“The Internal Revenue Service (IRS) will tenaciously pursue individuals who violate international emergency economic powers statutes,” said IRS-Criminal Investigation (CI) Special Agent in Charge Lucy Cruz. “IRS-CI's unique skill set is to unravel the often concealed complex networks used to disguise international financial crimes.”
The health care fraud scheme alleged in this indictment accuses Hossein and Najmeh Lahiji of conspiring to defraud multiple health care benefit programs by submitting false and fraudulent claims in connection with the use of unlicensed and unqualified medical personal and for billing for medical services not rendered. The scheme allegedly ran from January 2003 through Feb. 24, 2012, and involved Medicare, Medicaid, Aetna, Blue Cross Blue Shield, Humana and United Healthcare. The indictment further alleges the Lahijis submitted claims to these health care benefit programs for urology services allegedly performed by Hossein Lahiji M.D. when, in fact, he was traveling outside Texas and outside the United States. The individuals, who were only licensed as medical assistants, were the ones actually performing these “urology services” without any supervision from any physician or other qualified, licensed personal in violation of protocols established by Medicare, Medicaid, private health insurance and the state of Texas.
The scheme also allegedly involved specific days in which Hossein Lahiji claimed to treat between 65 to 117 patients per day during the office hours of 7:00 a.m. to 6:00 p.m. The indictment further alleges false and fraudulent representations including that Hossein Lahiji had conducted a “consultation” for another physician. In reality, he allegedly performed routine medical services for a patient of his own, a practice known as “upcoding. Lahiji allegedly indicated that the patient’s medical situation had necessitated a comprehensive physical examination and the taking of a comprehensive medical history. However, The patient’s situation had not required such an examination or history-taking, and Hossein Lahiji had not performed such services, according to the indictment.
The Indictment also contains two substantive counts of health care fraud occurring on July 1, 2009 and July 28, 2009.
Hossein Lahiji M.D. is a physician investor in the physician-owned hospital, Doctor’s Hospital at Renassiance, in Edinburg.
The Lahijis each face a sentence of up to 10 years in prison and a maximum $250,000 fine if convicted of the health care offenses as well as a maximum of 20 years in prison and a possible $1 million fine upon conviction of conspiracy to violate Iranian sanctions.
The Lahijis are currently scheduled for a jury trial in Southern District of Texas on March 25, 2013. They are also scheduled for trial in the District of Oregon on June 4, 2013, on unrelated federal charges.
The investigation leading to the charges in this case was conducted by the FBI, the Texas Attorney General’s Medicaid Fraud Control Unit and IRS-CI. Assistant United States Attorneys Carolyn Ferko and Jim McAlister are prosecuting the case.
An Indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Manhattan U.S. Attorney Announces Criminal Division Appointment of Chief of AppealsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the appointment of Michael A. Levy as Chief of the Appeals Unit. Mr. Levy will replace Katherine P. Failla, who was recently confirmed by the U.S. Senate to serve as a federal judge in the Southern District of New York.
Mr. Levy joined the Office in October 2002. Prior to being named Chief of the Appeals Unit, he was a member of the Office’s Securities and Commodities Fraud Task Force. Mr. Levy was also Deputy Chief of the Appeals Unit from 2009 to 2010, and served in the Public Corruption, Major Crimes, Narcotics, and General Crimes Units. During his time in the Office, Mr. Levy successfully prosecuted Joseph Collins for his participation in the $2.4 billion Refco fraud, Efrain Gonzalez, Jr., a former New York State senator from the Bronx, for fraudulently using two not-for-profit organizations to pay his personal expenses, and all three defendants in U.S. v. Jorge Cedeno, et al. for their roles as armed gunmen in a truck hijacking ring that operated in the tri-state area.
After law school, Mr. Levy clerked for the Honorable Jed S. Rakoff of the U.S. District Court for the Southern District of New York, and worked as an associate at Sidley Austin LLP. Mr. Levy is a graduate of Harvard College and the University of Virginia School of Law.
In making this appointment, Mr. Bharara stated: “Michael Levy has established a track record of excellence more than a decade-long during his tenure in this Office. I have no doubt he will continue his exceptional work as Chief of the Appeals Unit and I thank him for his service.”
Manhattan U.S. Attorney Announces Charges Against Demolition Company Operators for Scheme to Underpay Employees by More Than $650,000 in Violation of Federal Prevailing Wage LawRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Rose Gill Hearn, the Commissioner of the New York City Department of Investigation (“DOI”), Robert Panella, the Special Agent-in-Charge of the New York Field Office of the U.S. Department of Labor's Office of Inspector General, Office of Labor Racketeering and Fraud Investigations ("DOL-OIG"), and Vanessa Jones-Allen, the Assistant Special Agent-in-Charge of the New York Area Office of Criminal Enforcement for the United States Environmental Protection Agency ("EPA") announced the filing of a four-count criminal Complaint charging JOVER NARANJO, the owner and president of Enviro & Demo Masters, Inc. (“Enviro”), and his father, LUPERIO NARANJO, SR., a foreman for Enviro, for allegedly perpetrating a scheme to underpay employees in violation of the federal prevailing wage law. NARANJO and NARANJO, SR. were arrested this morning in Queens, New York, and are expected to be presented in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis later today.
Manhattan U.S. Attorney Preet Bharara said: “Federal contracts come with certain legal obligations, and in this case, one of them was to pay the prevailing wage – a legal requirement this father and son allegedly violated. Protecting workers and ensuring that federal funds are not abused by dishonest contractors is a priority of this office.”
DOI Commissioner Rose Gill Hearn said: “These defendants worked overtime to spin a web of lies around their employees and the City taxpayers, according to the criminal complaint. Their charged conduct is not the way to do business in New York City. DOI was pleased to join its federal partners to expose and stop the fraud and protect workers.”
DOL-OIG Special Agent-in-Charge Robert Panella said: “Today’s charges are the result of our commitment to investigate those who would allegedly falsify payroll records to avoid paying their workers the required prevailing wage. The Office of Inspector General will continue to work closely with its law enforcement partners to this end.”
EPA Assistant Special Agent-in-Charge Vanessa Jones-Allen said: “Through the course of this investigation, we were able to uncover an illegal scheme and stop a business owner who cut workers’ pay and benefits to make a profit. While EPA federal agents focus on investigating allegations of environmental crimes, we also readily provide support and expertise to our state and federal colleagues in developing cases that protect Americans from criminal activity that threatens their lives or livelihoods.”
According to the Complaint unsealed earlier today in Manhattan federal court:
In August 2009, NARANJO was awarded a sub-contract by the general contractor on a New York City project to demolish buildings in Upper Manhattan (the “Contract”) that was federally-funded. From August 2009 through February 2010, he and NARANJO, SR. participated in a scheme to submit fraudulent certified payrolls to the New York City Department of Housing Preservation and Development (“HPD”) in connection with the Contract.
The fraudulent certified payrolls indicated that Enviro was paying its employees the federal prevailing wage, as required by federal law, but in reality, they were being paid far less. Although the lowest applicable federal prevailing wage for Enviro employees working on the Contract was $20.74 per hour for demolition laborers, NARANJO and NARANJO, SR. paid their demolition workers as little as $13 per hour. In the six-month period charged in the Complaint, the total amount of salary underpaid by NARANJO and NARANJO, SR. to Enviro employees working on the Contract was in excess of $650,000.
NARANJO and NARANJO, SR. took a number of steps to conceal their fraud. For example, they told their employees to lie about their identities, work schedules, and pay rates if they were questioned by investigators. When an employee truthfully told investigators that the employee was paid below the prevailing wage, NARANJO and NARANJO, SR. fired the employee and the employee’s relative.
On certain occasions when the defendants did pay their employees the prevailing wage, it was part of a kickback arrangement. The defendants paid the prevailing wage by check to document their supposed compliance with the law, but then required employees to return the portion of the check that was above and beyond the employees’ illegally low wage.
NARANJO, 36, and NARANJO, SR., 65, both of Queens, New York, are each charged with one count of mail fraud, conspiracy to commit mail fraud, witness tampering, and conspiracy to commit witness tampering. Each faces a maximum total sentence of 65 years in prison if convicted.
Mr. Bharara praised the investigative work of DOL-OIG, DOI, and the EPA.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Alvin Bragg is 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. Jover Naranjo et al. Complaint
Man Convicted of Tax EvasionRead the Press Release
HOUSTON – Eric P. Garcia has entered a plea of guilty to one count of tax evasion, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation.
Garcia admitted in the written plea agreement he willfully filed an income tax return for 2007 claiming he owed only $22,223 in income taxes. However, he knew the correct amount of income taxes he owed for the year was approximately $275,694. Garcia further acknowledged he owed additional income taxes for years 2005 through 2009 totaling $765,041. Garcia admitted he willfully claimed inflated expenses on his income tax returns in order to evade his income tax liabilities.
U.S. District Judge Nancy F. Atlas, who accepted the guilty plea, has set sentencing for May 30, 2013, at which time he faces up to five years of imprisonment and a possible $250,000 fine.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.Local Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - Larry Bradshaw was indicted involving his alleged scheme to defraud a local lady by obtaining a reverse mortgage on her home, then using the money for himself, including the purchase of a car and illegal drugs.
According to the indictment, in July 2008, Bradshaw met a lady and expressed a need for a temporary residence. She agreed to allow him to live with her and during that time, Bradshaw befriended her and gained her confidence. He told her he was acting in her best interest, instead, he allegedly used his ability to access her banking accounts and funds to support his own life style without her knowledge or consent. The indictment alleges that Bradshaw set up a durable power of attorney, and used it to obtain a reverse mortgage on the lady’s residence. He represented to Frontier Mortgage that he intended to use the proceeds from the reverse mortgage for her living expenses and home rehabilitation. Instead, he used the money for himself, including the purchase of an automobile and illegal drugs, totaling over $70,000. Additionally, the indictment alleges that Bradshaw was receiving disability beginning in 2007, and was required to fill out forms verifying his continued disability. But, in December 2008, he falsified the form by failing to report that he received the reverse mortgage money.
Bradshaw, 55, St. Louis City, was indicted by a federal grand jury on one felony count of wire fraud and one felony count of theft of government money. He turned himself in to federal authorities earlier today.
If convicted, wire fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; each count of theft of government money carries a maximum of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Housing Finance Agency Office of Inspector General and the Social Security Administration. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
KC Man Sentenced to 19 Years for Illegal Firearm Used to Threaten, Beat WomanRead the Press Release
Project Safe Childhood
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 illegally possessing a firearm that he used to threaten and beat a woman.
Jervonz L. Williams, 37, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 19 years in federal prison without parole. Williams was sentenced as an armed career offender due to his prior felony convictions.
On Nov. 14, 2012, Williams pleaded guilty to being a felon in possession of a firearm. Williams admitted that he was in possession of a Smith and Wesson .38-caliber revolver.
According to court documents, Williams attacked a woman near a parking lot at 70th and Troost on May 4, 2012, striking her in the back of the head with the revolver and repeatedly kicking her and striking her with his hands and with a green glass bottle until she was unconscious. Two witnesses saw Williams point the gun at his victim’s head. One of the witnesses reported that Williams put the gun to the victim’s head and said, “I ought to blow your … brains out.” Williams also pulled the handgun from his pocket and pointed it in the direction of one of the witnesses. Witnesses called the police, who arrested Williams and found the revolver in his pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has five prior felony convictions, including three prior felony convictions for burglary and prior felony convictions for aggravated sexual battery and robbery.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.KC Man Sentenced to 16 Years for Illegal FirearmRead the Press Release
Project Ceasefire
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 illegally possessing a firearm.
Seab Nolen, 51, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 16 years in federal prison without parole. Nolen was sentenced as an armed career offender due to his prior felony convictions.
On Oct. 15, 2012, Nolen pleaded guilty to being a felon in possession of a firearm. Williams admitted that he was in possession of an RG Industries .22-caliber revolver.
According to court documents, police officers were called to Nolen’s residence for a disturbance involving a weapon on June 3, 2012. Nolen had left the residence, but was located by police officers and arrested. Officers searched the residence and found the handgun in a blue plastic bin in the closet.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Nolen has nine felony convictions, including three prior felony convictions for theft and prior felony convictions for burglary, aggravated battery, criminal damage to property, unlawful use of a weapon by exhibiting it in an angry or threatening manner, possession of a controlled substance and domestic assault.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Justice Department Announces Investigation of the <br /> Cleveland Division of PoliceRead the Press Release
The Justice Department announced today that it has opened a pattern or practice investigation into use of force by the Cleveland Division of Police (CPD). The investigation will focus on allegations that CPD officers use excessive force, including unreasonable deadly force, and on the adequacy of CPD’s training, supervision, and accountability mechanisms that are essential to effective, constitutional policing.
The Justice Department’s investigation will determine whether CPD officers engage in a pattern or practice of using excessive force in violation of the Constitution and federal law. This investigation will include a comprehensive review of CPD’s policies, procedures, training, accountability systems, and community engagement. As part of this investigation, the Justice Department will reach out to community members and groups for help in identifying potential problems within the police department.
Department officials have met with Cleveland Mayor Frank Jackson, CPD Chief Michael McGrath, and Director of Public Safety Martin Flask and will continue to work closely with both the city and CPD as the investigation progresses.
“Police officers across the country are called upon to protect and safeguard members of their communities and are afforded the authority they need to do so, including the authority to use deadly force,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “It is absolutely imperative that officers use that authority responsibly and within the boundaries of the law. We are eager to work together with the city of Cleveland and its police department to help ensure that its officers are best serving the individuals they are sworn to protect.”
“As we begin this process, our commitment to this community and this city is to conduct a thorough and fair investigation,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “Our joint goal cannot be to invent tough issues, nor can we hide from them if they exist. The Mayor, among others, requested this investigation, and we hope that with the continued cooperation of the city and the community we can ensure Cleveland’s residents receive top notch police protection.”
The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of misconduct by law enforcement officers that deprives individuals of federally-protected rights. The act also allows the Justice Department to remedy such misconduct through civil litigation. The Justice Department has conducted similar investigations and has obtained important reforms in police departments and law enforcement agencies across the country.
The Special Litigation Section of the Justice Department’s Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the Northern District of Ohio, in Cleveland, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Justice Department via email at [email protected] or by phone at (202) 307-6479.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt . Additional information about the U.S. Attorney’s Office for the Northern District of Ohio is available on its website at www.justice.gov/usao/ohn .
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Assistant Attorney General Thomas E. Perez Speaks at the Cleveland Police Department Press Conference
Justice Department Announces Investigation of Cleveland Division of PoliceRead the Press Release
The Justice Department announced today that it has opened a pattern or practice investigation into use of force by the Cleveland Division of Police (“CPD”). The investigation will focus on allegations that CPD officers use excessive force, including unreasonable deadly force, and on the adequacy of CPD’s training, supervision, and accountability mechanisms that are essential to effective, constitutional policing.
The Justice Department’s investigation will determine whether CPD officers engage in a pattern or practice of using excessive force in violation of the Constitution and federal law. This investigation will include a comprehensive review of CPD’s policies, procedures, training, accountability systems, and community engagement. As part of this investigation, the Justice Department will reach out to community members and groups for help in identifying potential problems within the police department.
Department officials have met with Cleveland Mayor Frank Jackson, CPD Chief Michael McGrath, and Director of Public Safety Martin Flask and will continue to work closely with both the City and CPD as the investigation progresses.
“Police officers across the country are called upon to protect and safeguard members of their communities and are afforded the authority they need to do so, including the authority to use deadly force,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “It is absolutely imperative that officers use that authority responsibly and within the boundaries of the law. We are eager to work together with the City of Cleveland and its police department to help ensure that its officers are best serving the individuals they are sworn to protect.”
“As we begin this process, our commitment to this community and this city is to conduct a thorough and fair investigation,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “Our joint goal cannot be to invent tough issues, nor can we hide from them if they exist. The Mayor, among others, requested this investigation, and we hope that with the continued cooperation of the city and the community we can ensure Cleveland’s residents receive top notch police protection.”
The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of misconduct by law enforcement officers that deprives individuals of federally-protected rights. The Act also allows the Justice Department to remedy such misconduct through civil litigation. The Justice Department has conducted similar investigations and has obtained important reforms in police departments and law enforcement agencies across the country.
The Special Litigation Section of the Justice Department’s Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the Northern District of Ohio, in Cleveland, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Justice Department via email at [email protected] or by phone at (202) 307-6479.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Northern District of Ohio is available on its website at http://www.justice.gov/usao/ohn/.
Judge Sentences Pittsburgh Man to Prison for Conspiring to Sell HeroinRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court for violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Clarence Thompson, 56, was sentenced to serve 80 months in prison followed by four years of supervised release by United States District Judge Arthur J. Schwab. From January 2010 to March 3, 2011, Thompson conspired to distribute and possess with intent to distribute at least 400 grams of heroin. Thompson’s federal sentence was ordered to be served consecutively to any sentence imposed for his pending state drug charges that were filed while he was on bond in his federal case.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Bureau of Police, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department, and the Allegheny County Police Department for the successful investigation leading to the conviction and sentence in this case.
Judge Orders Prison and $308,554 Restitution for Former Bank OfficerRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former officer at a Birmingham bank to six months in prison, followed by six months home detention, plus three years of supervised release for a five-year fraud through which she stole almost $275,000 from her employer, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge R. David Proctor sentenced ALLISON MCCLELLAN, 40, of Odenville, on one count of computer fraud, and ordered her to pay $308,554 in restitution to SouthPoint Bank where she worked as its loan operations manager. McClellan had agreed to pay that amount in restitution as part of her plea agreement with the government. She pleaded guilty to the computer fraud in November. The restitution reflects the $274,775 she stole from SouthPoint, plus the $33,779 the bank spent in investigative and legal fees related to the crime.
McClellan worked at SouthPoint from 2005 to 2012. She used her computer access as the bank's loan operations manager to defraud the bank between 2007 and 2012.
According to her plea agreement, she used her computer access to fraudulently increase the home equity line of credit she and her husband obtained from the bank in February 2006. She increased the credit line 69 times between October 2007 and April 2012, raising it from $65,000 to $328,000. McClellan also fraudulently increased a personal line of credit she obtained from SouthPoint in 2005, raising it 11 times in 2009 and 2010 to reach a $15,000 credit line.
The FBI investigated the case, and it was prosecuted by Assistant U.S. Attorney Henry Cornelius.
Jefferson County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Ryan D. Kasler, 31, of Mt. Pleasant, Ohio pleaded guilty in U.S. District Court today to one count of illegal receipt of child pornography. The plea agreement provides for a sentence of 180 months in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service and William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, announced the plea entered today before U.S. Magistrate Judge Norah McCann King.
According to testimony presented during the plea hearing, Kasler was identified during an investigation by Postal Inspectors into subjects who received child pornography through the U.S. Mail. Records indicated Kasler bought 17 separate videos or photo collections through the mail.
Investigators executed a search warrant at Kasler’s home in December 2012 and seized videos, a computer and storage media containing child pornography. Agents arrested Kasler, who has been in custody since his arrest.
The court will conduct a pre-sentence investigation prior to deciding whether or not to accept the terms of the plea agreement. If, after viewing the presentence investigation report, the Court is unwilling to accept this plea agreement due to this binding recommendation on the appropriate sentence, either party may withdraw from the provisions of this plea agreement, the defendant may withdraw his plea of guilty, and the case will proceed to trial. If the court accepts the terms of the plea agreement, a date for sentencing will be set.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the cooperative investigation by Postal Inspectors and HSI agents, as well as Assistant U.S. Attorney Heather Hill, who is representing the United States in this case.
Investment Research Firm President Sentenced in Manhattan Federal Court to One Year and One Day in Prison for Insider Trading Conspiracy ChargeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TAI NGUYEN was sentenced today in Manhattan federal court to one year and one day in prison for conspiring to commit securities fraud and wire fraud in connection with an insider trading scheme in which NGUYEN, the president of Insight Research, LLC, an investment research firm, and a paid consultant of an expert networking firm, provided material, nonpublic information to members of the investment community. NGUYEN obtained the information which concerned quarterly financial results for Abaxis Inc., a California biotechnology company (the “Abaxis Inside Information”), from a family member employed in Abaxis’s Finance Department (the “Abaxis Insider”). He pled guilty in June 2012. NGUYEN was sentenced by U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “Tai Nguyen exploited a family member’s access to confidential and proprietary information to make a quick buck for himself, and to curry favor with others who could help his business. And now he is the latest in a long line of privileged professionals who has lost his liberty as a result.”
According to the Information and statements made during NGUYEN’s guilty plea and other court proceedings:
From 2006 through mid-2009, NGUYEN obtained detailed information from the Abaxis Insider about the company’s anticipated revenues, earnings, gross margins, and other financial results prior to the company’s quarterly announcements. On multiple occasions, NGUYEN provided the Abaxis Inside Information to Noah Freeman, a research analyst at a hedge fund based in Boston, Massachusetts, and to Samir Barai, a portfolio manager at two separate hedge funds in New York, New York.
As a result of NGUYEN having provided the Abaxis Inside Information, Freeman’s hedge fund earned more than $4.5 million between July 2006 and May 2009, and Barai’s hedge fund earned over $1.7 million between July 2008 and September 2009. In exchange for the Abaxis Inside Information, Freeman’s and Barai’s hedge funds paid Insight Research and/or NGUYEN consulting fees of several thousand dollars per month. At various times, Insight Research earned consulting fees of more than $15,000 a month from just one of these hedge fund clients.
In addition to passing on the Abaxis Inside Information to Freeman and Barai, NGUYEN used the information to trade Abaxis stock in his personal brokerage account on numerous occasions between 2006 and 2009. As a result of his own trading activity, NGUYEN earned over $147,000 during that time period.
In addition to the prison term, Judge Buchwald sentenced NGUYEN, 49, of Oregon City, Oregon, to one year of supervised release. NGUYEN was also ordered to forfeit $400,000 and pay a $100 special assessment fee.
Freeman, 37, of Boston, Massachusetts, pled guilty in February 2011 to one count of conspiracy to commit securities fraud and wire fraud, and one count of securities fraud. He is awaiting sentencing.
Barai, 41, of New York, New York, pled guilty in May 2011 to one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, one count of wire fraud, and one count of obstruction of justice. He is awaiting sentencing.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission.
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. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney David I. Miller is in charge of the prosecution.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on March 13, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
JAMES STANLEY HATLEY, age 28, STACY RENEE FOX, age 35, residents of Yakima, Washington, and ERVIN SALGADO OSARIO, a 32-year-old resident of Toppenish, Washington, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. They are currently released on special conditions. If convicted of these charges, they each face possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $2,000,000 fine, and four years supervised release. Assistant U.S. Attorney Tara J. Elliott is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Montana Division of Criminal Investigation.
DANIEL AARON ROY, a resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with the intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. He is currently detained If convicted of these charges, ROY faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Tara J. Elliott is the prosecutor for the United States. The investigation was conducted by the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 12, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
ROY ALEXANDER BRIGGS, a 34-year-old resident of Helena, appeared on charges of possession of child pornography and failure to register as a sexual offender. He is currently detained. If convicted of these charges, BRIGGS faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Marcia K. Hurd is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation, the Helena Police Department, the U.S. Department of Homeland Security - Homeland Security Investigations, the Montana Division of Criminal Investigation, and the Montana Internet Crimes Against Children (ICAC) Task Force.
CORWIN DALLAS FOURSTAR, a 19-year-old resident of Wolf Point, appeared on charges of aggravated sexual abuse and sexual abuse. He is currently detained. If convicted of these charges, FOURSTAR faces possible penalties of life in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Laura B. Wess is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 13, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
MICHELLE RENEE KINDNESS, a 47-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with the intent to distribute methamphetamine, and distribution of methamphetamine. She is currently detained. If convicted of these charges, KINDNESS faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $4,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 14, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
JOURDEN ST. MARKS, a 23-year-old resident of the Rocky Boy's Reservation, appeared on a charge of assault resulting in serious bodily injury. He is currently detained. If convicted of this charge, ST. MARKS faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment Unsealed Following Arrest of Individuals Allegedly Involved in Scam to Distribute Misbranded DrugsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment charging four individuals with allegedly being involved in a scam to distribute misbranded drugs through businesses located in York County and conceal the unlawful profits has been unsealed.
The indictment returned by a Harrisburg grand jury on March 8 was sealed pending the arrest of the defendants.
According to United States Attorney Peter J. Smith, Almuntasser “Alex” Hbaiu, age 34, of Los Angeles, California, was previously charged with criminal conspiracy, delivery of misbranded drugs, receipt of misbranded drugs, and two counts of wire fraud. On March 8, the Grand Jury returned a second superseding indictment that charged Alex Hbaiu with additional offenses of structuring financial transactions and bank fraud.
The new indictment also charged three additional defendants. Ahed Hbaiu, age 32, of Etters, Pennsylvania, is charged with criminal conspiracy, delivery of misbranded drugs in interstate commerce, receipt of misbranded drugs in interstate commerce, structuring financial transactions, bank fraud, and engaging in monetary transactions with criminally derived property worth more than $10,000.Gil Conrad Dizon, age 28, of Los Angeles, California, is charged with criminal conspiracy, delivery of misbranded drugs in interstate commerce, receipt of misbranded drugs in interstate commerce, two counts of wire fraud, and structuring financial transactions. Christopher Mouzon, age 27, of Los Angeles, California, is charged criminal conspiracy, structuring financial transactions and perjury.
The second superseding indictment charges that the four men were involved with various companies that sold drugs including “Mojo Nights,” “Libigrow” and “Blue Diamond” that were marketed as “all-natural” versions of sexual enhancement drugs such as Viagra. In fact, the drugs contained sildenafil citrate, the active ingredient in Viagra, and Tadalafil, the active ingredient in Cialis. Both are prescription drugs approved by the U.S. Food and Drug Administration for the treatment of erectile dysfunction. The misbranded “performance enhancers” products were sold on internet web sites as well as physical locations, including a location in York County.
In addition, according to the second superseding indictment, the four defendants conspired to avoid the requirement that banks report cash transactions of $10,000 or more by “structuring” deposits made into various bank accounts. The conspirators made cash deposits of less than $10,000 in their accounts as well as accounts of family members and associates and then transferred the money to accounts controlled by them, their family members, or associates. Some of the funds “structured” in this fashion were used to pay off the mortgage on a residence at 1806 Meadow Ridge Drive, Hummelstown, Pennsylvania, which was eventually titled to Alex Hbaiu. Other structured funds were used to fund the business operations of Caliber Investments; 1 Stop Sunoco Gas Station and Eclipse Builders, both located in located in Etters, York County.
The second superseding indictment further charges that Ahed Hbaiu committed bank fraud by obtaining a credit card in his mother’s name and using the card to purchase construction equipment for his business, Eclipse Builders. Ahed Hbaiu’s mother filed for bankruptcy after only a few payments were made and the credit card debt was discharged. Ahed Hbaiu and Alex Hbaiu are also charged with obtaining credit cards in the name of an individual who is serving a sentence of life imprisonment in Florida and making false representations on credit card applications.
The charge of engaging in monetary transactions of over $10,000 with money obtained through criminal activity stems from Ahed Hbaiu’s purchase of construction equipment with the money obtained from the bank fraud.
According to the allegations in the second superseding indictment, Christopher Mouzon committed perjury when he testified before the Grand Jury on October 3, 2012.The second superseding indictment also seeks forfeiture of a number of bank accounts and the property at 1806 Meadow Ridge Drive, Hummelstown.
Ahed Hbaiu reportedly left the country last week and Dizon is purportedly in the Philippines. Warrants have been issued for their arrest. Mouzon was arrested Wednesday in California.
The case was investigated by the Internal Revenue Service-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Drug Enforcement Administration. It is assigned to Assistant U.S. Attorney Christy H. Fawcett.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Indictment Unsealed Against Alleged Members of Heroin Smuggling RingRead the Press Release
PHILADELPHIA - A second superseding indictment was unsealed today charging eleven people in a conspiracy that involved secreting packets of heroin inside the body, in order to smuggle the drugs into the United States from the Dominican Republic, drug charges and kidnapping. The indictment names defendants Higinio Castillo and Michael Nunez-Rodriguez as the alleged leaders of the Castillo Drug Smuggling Organization (CDSO). Members of the CDSO acted as couriers and recruited other individuals to act as couriers smuggling the drugs inside their bodies or in luggage. The CDSO paid the couriers’ travel expenses, helped them obtain U.S. Passports, and drove them to and from the U.S. airports. The indictment alleges that the CDSO operated in Philadelphia from November 2010 through March 2012 smuggling at least six kilograms of heroin into the United States during that time period.
Charged with Castillo and Nunez-Rodriguez are: Philip Osley, Yeltsin Genao, Kelvin Perez, Adrian DeJesus, Tommy Figueroa, Argenes Peralta, Carlos Ruben Cotto-Leon, Dilcy Herminia Almanzar, and Jiliana Urena, all of Philadelphia. The charges were announced today by United States Attorney Zane David Memeger and Special Agent-in-Charge John Kelleghan with U.S. Immigration and Customs Enforcement Homeland Security Investigations.The CDSO allegedly enforced its hold on couriers and prevented theft of its product through threats and intimidation. The indictment alleges that on August 24, 2011, defendants Nunez-Rodriguez, Genao and Perez drove from Camden, NJ, to Philadelphia to locate “S.R.,”a person believed to have stolen the heroin that he was tasked with smuggling. The defendants drove S.R. to a house on 19th Street in Philadelphia where Castillo and DeJesus were waiting. The five conspirators interrogated S.R. by binding his hands and feet, making threats on his life, and discharging a firearm at close range. S.R. was eventually released with no serious physical injury. The indictment further alleges that on September 5,2011, defendants Nunez-Rodriguez and Figueroa went to the homes of courier “C.D.” after C.D. did not appear at the airport the previous night as expected. Figueroa pointed a gun at the person who answered the door and forced his way into the home to search for C.D. The defendants left after not finding C.D.
According to the indictment, the couriers traveled to and from the Dominican Republic on commercial flights that landed at Philadelphia International Airport, Newark Liberty International Airport in Newark, NJ, and JFK International Airport in Brooklyn, NY.
Defendant DeJesus was taken in to custody last night; the remaining defendants have been in federal custody.
If convicted of all charges, each defendant faces a mandatory minimum sentence of 10 years in prison up to life in prison, a mandatory minimum five years of supervised release up to a lifetime of supervised release, possible fines, and mandatory special assessments. Defendants convicted of firearm charges face an additional consecutive mandatory term of seven years in prison. The government is also seeking forfeiture of all assets derived from any criminal activity.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations with assistance from United States Customs and Border Protection, the Philadelphia Police Department, Pennsylvania State Police, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Nancy Rue.
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, 215-861-8525Illinois man pleads guilty to failing to register as a sex offenderRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul. Jr. announced today that Marcus Tunstall, 38, formerly of St. Louis, Illinois, pleaded guilty to failing to register as a sex offender before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the defendant left the State of Illinois in August 2012 to come to the Western District of New York and knowingly failed to register as a sex offender. In addition, Tunstall failed to update his registration status with Illinois authorities to advise them that he had left that state.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The plea is the culmination of an investigation on the part of the United States Marshals Service, under the direction of Marshal Charles Salina.
Sentencing is scheduled for May 30, 2013 at 3:00 p.m. before Judge Geraci.
Identity Theft Ringleader Gets 12 Year Prison SentenceRead the Press Release
PHILADELPHIA - Lawrence Fudge, 47, of Philadelphia, was sentenced today to 144 months in prison for running a fraud and identity theft ring in Philadelphia for at least six years. Fudge pleaded guilty in December 2012 to conspiracy, six counts of bank fraud, eight counts of access device fraud and 18 counts of aggravated identity theft. Through the course of the scheme, Fudge recruited bank employees and an insurance company employee to abuse the trust placed in them by their employers and pass on to him the bank account and personal information of dozens of victims. He insulated himself from the actual fraudulent transactions by recruiting others to find sources of victim information and by finding “check runners” to conduct the fraudulent transactions at the banks, to open the fraudulent retail store credit accounts and to make the purchases at the retail stores with those fraudulently-opened accounts. With others, he traveled within and outside Pennsylvania to run his fraud and identity theft scheme. In addition, Fudge admitted that he committed additional crimes of the same nature between September 1, 2011 and November 14, 2012 while he was on pretrial release on this case.
Found in Fudge’s red Toyota truck at the time of his initial arrest, on August 30, 2011, were a number of documents and other items, including driver’s licenses and documents with personal and bank account information in the names of individuals who had not previously been identified by law enforcement as victims. The intended amount of fraud and attempted fraud that is attributed to the illegal activities of Lawrence Fudge and his ring - from conducting fraudulent transactions against victims’ bank accounts and opening retail store credit accounts in victims’ names and then making purchases with those accounts - is more than $357,030.Examples of Fudge’s fraud include: in August 2011, accounts at Home Depot, Lowe’s and Target were opened using the identity of victim C.S. More than $8,000 in purchases were made with those fraudulent accounts and more than $1,500 was fraudulently withdrawn from her Bank of America bank account. In that same time frame, accounts at Lowe’s, Target and Sam’s Club were opened using the identity of victim M.W. with more than $15,000 in purchases made with those fraudulent accounts, and additional accounts at Best Buy and Staples attempted to be opened. Also in that same time frame, accounts at Home Depot, Lowe’s, Best Buy and Target were opened using the identity of victim P.V. with more than
$10,000 in purchases made with those fraudulent accounts.Several of the victims have detailed the emotional distress and negative impact these crimes had on their lives. They describe their fear, their feelings of violation, and the lack of safety they now feel and, indeed, may always feel. One victim, who is a widow, described how the theft of the identity of her deceased husband left her “shaken to the core,” with the realization that her husband’s insurance policy, meant to protect his family, was the means of the theft of his identity and her security.
In addition to the prison term, U.S. District Court Judge Lawrence F. Stengel ordered restitution of $311,878, a special assessment of $3,300, and 10 years of supervised release.
The case was investigated by United States Postal Inspection Service and Federal Bureau of Investigation, with the assistance of multiple local police departments. It was prosecuted by Assistant United States Attorney K.T. Newton.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Houston-Area Doctor Sentenced to 63 Months in Prison for Role in $17.3 Million Medicare Fraud SchemeRead the Press Release
A Texas doctor was sentenced today to serve 63 months in prison for conspiring to commit health care fraud by falsifying plans of care for Medicare beneficiaries, including patients whom he did not treat, as part of a $17.3 million Medicare fraud scheme.
Today’s sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office; Special Agent in Charge Mike Fields of the Dallas Regional Office of U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), Office of Investigations; and the Texas Attorney General’s Medicaid Fraud Control Unit.
Ben Harris Echols, 63, of Houston, was sentenced by U.S. District Judge Sim Lake of the Southern District of Texas. In addition to his prison term, Echols was sentenced to serve three years of supervised release and ordered to pay $2,918,830 in restitution.
After a four-day trial, a jury convicted Echols on Dec. 13, 2012, of one count of conspiracy to commit health care fraud and six counts of false statements relating to health care matters.According to evidence presented at trial, Echols was a physician practicing in the Houston area. Evidence showed that Echols signed plans of care for Medicare beneficiaries so that fraudulent claims could be billed by home health care companies Family Healthcare Group Inc. and Houston Compassionate Care. Echols signed plans of care for Medicare beneficiaries who were not under his care and about whose conditions he had no knowledge. In many instances, Echols signed plans of care even though other doctors were listed as the attending physician on the documents.
Evidence presented at trial showed that Family Healthcare Group Inc. and Houston Compassionate Care fraudulently billed Medicare for home health services and were paid approximately $17.3 million by Medicare, including $5.5 million for beneficiaries for whom Echols signed a plan of care.
The case was prosecuted by Trial Attorneys Alexander H. Berlin, Abigail B. Taylor and Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section, with assistance from Criminal Division Trial Attorneys Kyle Maurer and Alison Anderson. The case was investigated by the FBI, HHS-OIG, and the Texas Attorney General’s Medicaid Fraud Control Unit.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Homestead Heroin-Trafficking Ring DismantledRead the Press Release
PITTSBURGH - After a nearly year-long federal, state and local law enforcement investigation into drug trafficking and violence in Homestead, Pa., 34 residents of Pennsylvania, New Jersey and New York have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today. These charges were contained in six related indictments, returned on March 6 and unsealed today.
"These prosecutions are a continuation of our community impact prosecution strategy where we are going community to community to aggressively eliminate violent criminals," said U.S. Attorney Hickton. "But every day we are also working with committed public-spirited citizens to increase opportunities for our youth; to replace despair with hope; and to give kids at risk and reformed offenders a fair shot to be productive citizens because we know that to best protect the public welfare, we need to work equally hard to prosecute and prevent crime.
"This investigation was a response to the increased violence and incidence of drug trafficking in the Homestead, Pa. area, much of which was attributed to a gang, or criminal enterprise, known as the Uptown Crew," said Gary Douglas Perdue, Special Agent in Charge of the Pittsburgh Division of the FBI. "These indictments are a clear example of the determination and collaborative spirit among area law enforcement agencies to dismantle criminal enterprises that pose the most significant threat."
THE INDICTMENTS
The first indictment, containing seven counts, named:
- Brandon Thompson, 30, of Homestead, Pa.;
- Antonio Hardin, 32, of Monroeville, Pa.;
- James Walker, 44, of Homestead, Pa.;
- Joseph Thompson, II, 25, of Homestead, Pa.;
- Richard Wood, 33, of Swissvale, Pa.;
- Gregory Harris, Jr., 24, of Homestead, Pa.;
- Luther Harper, 27, of Homestead, Pa.; and
- Edward Cook, 25, of Homestead, Pa.
According to the indictment, from in and around April 2012 to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Brandon Thompson, Hardin, Walker, Joseph Thompson, II, Wood, Harris and Harper conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment also charges that on or about Aug. 12, 2012, Brandon Thompson and Edward Cook used, carried, possessed in furtherance of, brandished and discharged firearms during and in relation to that heroin trafficking conspiracy. The indictment further charges Antonio Hardin with, on or about Feb. 11, 2013, possessing with the intent to distribute a quantity of heroin, possessing a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon. Last, on or about Jan. 26, 2013, the indictment charges Richard Wood with possession with intent to distribute a quantity of heroin, and charges Walker and Hardin with distribution and possession with intent to distribute a quantity of heroin.
The second indictment, containing one count, named:
- Troy Anderson, 24, of Braddock, Pa.;
- Mark Felder, 25, of Duquesne, Pa.; and
- Dorianne Harris, 20, of Wilkinsburg, Pa.
According to the indictment, from in an around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Troy Anderson, Mark Felder and Dorianne Harris conspired with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance.
The third indictment, containing two counts, named:
- Andre Corbett, 20, of Homestead, Pa.;
- Sterling Marshall, 18, of Munhall, Pa.;
- Tireal Wheeler, 19, of Homestead, Pa.; and
- Jordan Murphy, 21, of Homestead, Pa.
According to the indictment, from in an around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Andre Corbett, Sterling Marshall, Tireal Wheeler and Jordan Murphy, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. Additionally, the indictment charged that, during that same time period, those same defendants did knowingly conspire to employ and hire persons under 18 years of age to distribute heroin.
The fourth indictment, containing five counts, named:
- Jay Germany, 22, of Pittsburgh, Pa.;
- Brady Hall, 19, of Pittsburgh, Pa.;
- Jaquan Washington, 23, of Homestead, Pa.;
- Hector Guadalupe, Jr., 36, of Brooklyn, NY;
- Santino Drew, 34, of New Brunswick, NJ;
- Thomas Martinez, 34, of Edison, NJ; and
- Louis Spinnenweber, Jr., 34, of Canonsburg, Pa.
According to the indictment, from in an around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Jay Germany, Brady Hall, Jaquan Washington, Hector Guadalupe, Jr., Santino Drew and Thomas Martinez conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charged that, during that same time period, Germany, Hall and Washington did knowingly conspire to employ and hire persons under 18 years of age to distribute heroin. Additionally, on or about Jan. 30, 2013 and Jan. 31, 2013, Drew and Martinez possessed with the intent to distribute 100 grams or more of heroin. Also, on or about Nov. 21, 2012, Louis Spinnenweber, Jr., possessed with the intent to distribute a quantity of a heroin. Last, on or about Oct. 30, 2013, Germany and Hall possessed with the intent to distribute and did distribute a quantity of heroin.
The fifth indictment, containing three counts, named:
- Bryce Harper, 26, of Homestead, Pa.;
- Diamantia Serrano, 19, of McKeesport, Pa.;
- Lacie Harper, 24, of Homestead, Pa.;
- Ryan Harper, 36, of Munhall, Pa.;
- Jamar Harper, 32, of Homestead, Pa.;
- Ronnell Robinson, 19, of Duquesne, Pa.; and
- Seth Lindsey, 18, of Duquesne, Pa.
According to the indictment, from in an around July 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Bryce Harper, Diamantia Serrano, Lacie Harper, Ryan Harper, Jamar Harper, Ronnell Robinson and Seth Lindsey conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charged that, during that same time period, those same defendants did knowingly conspire to employ and hire persons under 18 years of age to distribute heroin. Last, the indictment charges that on or about Sept. 19, 2012, Bryce, Ryan, and Jamar Harper, together with Diamantia Serrano, did possess with the intent to distribute less than 100 grams of heroin.
The sixth indictment, containing four counts, named:
- Thomas Hopes, 21, of Pittsburgh, Pa.;
- Keith Harris, 22, of Homestead, Pa.;
- Anthony Smith, 21, of Homestead, Pa.;
- Hakeem Kirby, 19, of Homestead, Pa.;
- William McDonald, 68, of Homestead, Pa.;
- Ronnell Robinson, 19, of Duquesne, Pa.;
- Gregory Harris, Jr., 24, of Homestead, Pa.; and
- Sterling Marshall, 18, of Munhall, Pa.
According to the indictment, from in an around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Thomas Hopes, Keith Harris, Anthony Smith, Hakeem Kirby and William McDonald conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charged that, during that same time period, those same defendants did knowingly conspire to employ and hire persons under 18 years of age to distribute heroin. The indictment also charges that on or about Dec. 18, 2012, Hopes and Kirby possessed with the intent to distribute and did distribute a quantity of heroin. Last, the indictment charges that on or about Jan. 3, 2013, Robinson, Keith and Gregory Harris, Marshall, and Hopes used, carried, possessed in furtherance of, brandished and discharged firearms during and in relation to a drug trafficking crime and a crime of violence.
THE PENALTIES
On the conspiracy to distribute one kilogram or more of heroin count, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both, for a first-time drug trafficking conviction. For those with one prior felony drug trafficking conviction, the law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $20,000,000 or both, and for those with two prior felony drug trafficking convictions, the law provides for a mandatory minimum sentence of life in prison.
On the firearms' counts charging possession, use, brandishing or discharge of a firearm in furtherance of a crime of violence or a drug trafficking crime, the law provides for a mandatory minimum sentence of five years if the gun is possessed in furtherance of the crime, seven years if the gun is brandished in furtherance of the crime, and 10 years if the gun is discharged in furtherance of the crime. These sentences, by law, must run consecutively to any sentence imposed for the narcotics counts. In addition, the law imposes a fine of up to $250,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania Office of the Attorney General, Allegheny County Sheriff's Office, Allegheny County Police Department, Munhall Police Department, West Homestead Police Department and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of these individuals.
Henderson County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 50-year-old Athens, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Frankie Darrell Durant pleaded guilty on Jan. 8, 2013, to being a felon in possession of a firearm and was sentenced to 57 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on July 26, 2011, three firearms were located in a storage room in Smith County, Texas which was being rented by Durant. Further investigation revealed Durant was a convicted felon having been previously been found guilty of possession of a controlled substance. As a convicted felon, Durant is prohibited by federal law from owning or possessing firearms or ammunition. Durant was indicted by a federal grand jury on Sep. 12, 2012.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.Harrisburg Man Convicted on Federal Charges Related to Gun Violence Investigations in CityRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that following a two-day jury trial before U.S. District Court Judge Sylvia H. Rambo, Carlos C. Hill, age 41, was convicted of possession of a firearm by a previously convicted felon. The jury returned a verdict after three hours.
According to United States Attorney Peter J. Smith, Hill and co-defendant Elijah U. Brown, Jr., were indicted in September 2012 following stepped-up federal efforts to partner with Harrisburg police and the Dauphin County District Attorney’s Office to fight violent crime in Harrisburg. Hill and Brown were charged with possession of a firearm by a convicted felon and possession of a stolen firearm.
The charges resulted from Hill brandishing a stolen firearm at a female victim in the 1600 Block of Park Street in Harrisburg on July 13, 2012.
The firearm was subsequently recovered by the Harrisburg Police Bureau.
Hill faces a statutory minimum of 15 years imprisonment. A sentencing date for Hill has not yet been scheduled. Brown is scheduled for trial on April 1, 2013.
The case was investigated by ATF in coordination with the Harrisburg Police Department. Assistant U.S. Attorney Meredith A. Taylor is handled the prosecution.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is life imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.