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6 March 2013
Corsica Man Sentenced in Child Pornography CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Corsica, South Dakota man charged with Receipt and Distribution of Child Pornography was sentenced on March 4, 2012 by US District Judge Karen E. Schreier.
Shawn E. Stevens, age 26, was sentenced to 188 months in custody, 5 years supervised release, and will be required to register as a sex offender.
Stevens was indicted for Receipt and Distribution of Child Pornography and Possession of Child Pornography by a federal grand jury on December 6, 2011. The conviction stems from Stevens’ use of two different computers and external hard drives. The computer files that contained images of child pornography were distributed and received between October of 2009 and March of 2011. He pled guilty to the charge of Receipt and Distribution of Child Pornography on November 15, 2012.
The case was investigated by the Sioux Falls Police Department and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case. Stevens was immediately turned over to the custody of the U.S. Marshal.
This case is being 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
Convicted Nassau County Sex Offender Pleads Guilty to Federal Charge of Possession of Child PornographyRead the Press Release
Jacksonville, FL - United States Attorney Robert E. O'Neill announced today that Mickey Wayne Brazzell (56, Yulee) pleaded guilty to possessing child pornography. Brazzell faces a mandatory minimum sentence of 10 years, up to a maximum of 20 years in federal prison, a $250,000 fine, and a potential life term of supervised release. He is also required to forfeit his computer media. A sentencing date has not yet been set.
According to court documents, Brazzell has a prior conviction for a sexual offense against minor children. He was convicted in state court in Jacksonville on November 6, 2000, of lewd and lascivious conduct.
According to court documents, Brazzell was more recently identified as a possible suspect in a child pornography offense by the National Center for Missing and Exploited Children (NCMEC). NCMEC referred this matter to the Florida Attorney General’s Office in Jacksonville (AGO) for further investigation. In June 2010, two AGO investigators made contact with Brazzell at his apartment in Yulee. Among other things, Brazzell admitted to investigators that he had received several images of boys between 12 and 13 years of age “having sex on each other.” Based upon this, and other admissions, investigators seized Brazzell’s laptop computer.
On November 23, 2010, Brazzell was arrested by FBI agents and AGO officers at his residence in Yulee. During an interview, Brazzell told the agents, among other things, that he was given a computer by a friend, shortly after his other computer was seized, and that he had pornography on the new computer. Subsequently, agents seized a second desktop computer and other computer media from Brazzell's residence. These items were found to contain depictions of child pornography.
Approximately 900 images were recovered from Brazzell’s two computers, compact disks and external thumb drive. At least 191 of the images depicted minor children engaged in sexually explicit conduct.
This case was investigated by the former Child Predator Cybercrime Unit of the Florida Attorney General’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Citizen of Mexico Who Illegally Reentered U.S. After Deportation Is SentencedRead the Press Release
March 6, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that OSCAR CUAPIO-RODRIGUEZ, also known as Oscar Zuapio-Rodriguez and Pedro Cuapio-Rodriguez, 39, a citizen of Mexico last residing in Clinton, was sentenced today by United States District Judge Janet C. Hall in New Haven to approximately three months of imprisonment, time already served, for illegally reentering the United States after he was deported.
According to court documents and statements made in court, CUAPIO-RODRIGUEZ was deported from the U.S. to his native Mexico in 1998 and again in 2005. In 2006, he illegally reentered the U.S without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the U.S.
CUAPIO-RODRIGUEZ has been detained since November 4, 2012, when he was arrested in Clinton and charged with theft of a credit card. He was transferred into federal custody on November 26, 2012.
On January 29, 2013, CUAPIO-RODRIGUEZ pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
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(203) 821-3722 [email protected]Centre County Man Sentenced to Prison for Burning Cross on Woman's LawnRead the Press Release
JOHNSTOWN, Pa .- A resident of Centre County, Pa., has been sentenced in federal court to one year and a day of incarceration and three years supervised release on his conviction of a charge of interfering with housing, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence yesterday on Ryan M. Held, a/k/a Ryan M. Foley, 21.
According to information presented to the court, on Aug. 20, 2010, Held, by force and threat of force, willfully intimidated and interfered with two minor victims - one of whom was an African- American male, because of his race and because he was occupying a dwelling, and one of whom was a female who was and had been lawfully allowing such African-American male, a friend, to occupy the dwelling in which she resided. During the afternoon of August 20th, Held drove past the female victim's home in Woodland, Pa., and saw her socializing with a few friends, one of whom was African-American. Just before midnight, Held returned to the property and placed a cross in the front yard of the female victim, approximately 60 feet from the entry to her home, and set it on fire for the purpose of intimidating and interfering with her and her African-American friend. Held spent a few minutes laying in the woods bordering the property watching the cross burn and waiting to see if anyone emerged from the residence.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government, together with Trial Attorney Roy Conn of the Civil Rights Division of the Department of Justice.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Held.
Brothers Who Led Mexican Mafia-Backed Puente-13 Street Gang Sentenced to Life in Prison as Result of Federal Racketeering CaseRead the Press Release
LOS ANGELES – A member of the Mexican Mafia prison gang and longtime leader of the Puente-13 criminal street gang was sentenced today to life in federal prison after being convicted last year on federal racketeering charges that included a brutal stabbing designed to deter victims from cooperating with law enforcement and plotting to murder members of a rival gang.
The Mexican Mafia carnal, Rafael “Cisco” Munoz-Gonzalez, 42, of La Puente, who long controlled Puente-13 as part of his Mexican Mafia membership, was sentenced this morning by United States District Judge A. Howard Matz.
The brother of the Mexican Mafia member, Cesar “Blanco” Munoz-Gonzalez, 38, of Rowland Heights, was sentenced late yesterday afternoon to life in prison by Judge Matz.
There is no parole in the federal prison system.
The Gonzalez brothers were convicted in December by a federal jury that found them guilty of violating the Racketeer Influenced Corrupt Organizations (RICO) Act, as well as committing violent crimes in aid of racketeering, engaging in a conspiracy to distribute methamphetamine, illegally possessing firearms and other offenses. The evidence presented at the trial proved, among other criminal offenses, that Rafael Munoz-Gonzalez ordered an attack on a witness who was cooperating with federal investigators in this case – a man who was attacked at the federal jail in downtown Los Angeles, where he was stabbed 22 times and beat over the head, suffering a punctured lung and fractured skull.
The evidence introduced at trial last year showed that members of Puente-13 were involved in the manufacture and distribution of a substantial amount of narcotics, particularly methamphetamine, and that leaders of the gang extorted drug dealers by collecting “taxes,” the payment of which allows drug dealers to operate in gang-controlled territory. Among other things, the testimony during the six-week trial showed that, while Rafael Munoz-Gonzalez was in custody until 2007, his brother Cesar trafficked large amounts of methamphetamine with other gang members, spoke on his brother’s behalf at gang meetings, directed other members of Puente-13 to collect “tax” payments from area drug dealers on Rafael’s behalf, and warded off rival drug traffickers by announcing that certain Puente-13 drug stash houses were untouchable because they were “protected by Cisco.” The evidence also showed that the Gonzalez brothers’ racketeering activities brought them substantial amounts of cash, custom boats and luxury cars.
In early 2008, Puente-13 gang members and associates were arrested as part of a federal investigation into the drug trafficking activities of the gang (see: http://www.justice.gov/archive/usao/cac/Pressroom/pr2008/026.html). The racketeering indictment that led to the life prison sentences for the Gonzalez brothers was filed on June 2, 2010 (see: http://www.justice.gov/archive/usao/cac/Pressroom/pr2010/091.html).
Two other leaders of Puente-13 were also convicted of all charges against them at last year’s trial, and they were recently sentenced by Judge Matz.
Abraham “Listo” Aldana, 30, of West Covina, was sentenced on Monday to 27 years in federal prison. After Aldana was released from Pelican Bay State Prison in 2008, he became one of Rafael Munoz-Gonzalez’s most aggressive lieutenants, collecting tax payments and helping facilitate the conspiracy to murder and assault rival gang members.
On February 26, Michael “Mikey” Torres, 43, of La Puente, who was a key player in the gang’s narcotics trafficking, was sentenced to 25 years in federal prison for racketeering, drug, and firearm offenses.
From at least 2000, all four defendants were personally involved in the manufacturing and distribution of large quantities of methamphetamine, and they used violence to monopolize the drug trade in La Puente and extract taxes from gang members and non-gang members who also sold methamphetamine in the area.
Puente-13 is a street gang that was formed in the City of La Puente approximately 60 years ago under the name “Bridgetown Gentlemen.” The gang has since grown to include more than a dozen “cliques” or subgroups, all of which which are loyal to the Mexican Mafia. Puente-13 claims as its “turf” a large portion of La Puente, as well as unincorporated parts of the San Gabriel Valley and portions of nearby cities, such as Hacienda Heights, Walnut and West Covina.
Since 2008, as a result of the federal investigations into Puente-13, grand juries have issued four indictments, which resulted in the conviction of approximately 60 members and associates of the gang. The investigations have resulted in the seizure of approximately 77 firearms, 12 pounds of methamphetamine and $1.1 million in cash and other assets.
The RICO case against Puente-13 was the result of an investigation conducted by the Drug Enforcement Administration and the Los Angeles Sheriff’s Department.
Release No. 13-032
Brockport Financial Advisor Arrested; Charged with FraudRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Eduardo Galan, 62, of Brockport, N.Y., was arrested and charged by criminal complaint with fraud. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney John J. Field, who is handling the case stated that according to the complaint, Galan ran a financial services business under various names, including S&G Unlimited Services. Operating as S&G Unlimited Services, the defendant devised a scheme to defraud multiple clients out of hundreds of thousands of dollars over a period of more than 10 years. Specifically, Galan promised his clients that he would invest their money in private mortgages, but instead used their money for personal and business expenses and to pay earlier investors in a Ponzi-type scheme.
Galan made an initial appearance this afternoon before U.S. Magistrate Judge Jonathan W. Feldman. The defendant is due back in court on March 14, 2013.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Boise Man Pleads Guilty to Drug Charge in Aryan Knights InvestigationRead the Press Release
BOISE – Jose Silva, 30, of Boise, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Silva admitted that on January 10, 2012, he sold methamphetamine to a confidential informant.
The charge is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Silva is set for sentencing on June 17, 2013, before the U.S. District Judge Edward J. Lodge, at the federal courthouse in Boise.
Silva is one of 23 people charged as a result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Corrections. The Organized Crime and Drug Enforcement Task Force (OCDETF) also contributed to the investigation, including the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
Silva’s case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Another Defendant Sentenced in OCDETF OperationRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on March 6, 2013, Chief United States District Judge James C. Dever III, sentenced KENNETH HARRIS, 25, of Wilmington, North Carolina, to 120 months imprisonment followed by 3 years supervised release.
On May 8, 2012, a Federal Grand Jury returned a Criminal Indictment charging HARRIS. On December 3, 2012, HARRIS pled guilty to distributing a quantity of heroin.
According to the course of the investigation, on September 26, 2011, the Wilmington Police Department made an undercover purchase of a quantity of heroin from HARRIS. In addition, two codefendants, Linwood Nelson and Kathy Mishoe, were transporting heroin to HARRIS and another co-conspirator for distribution in the New Hanover County area. Between November, 2011, and February, 2012, the group imported more than 16,500 bags of heroin from New Jersey.
On March 26, 2012, the Wilmington Police Department stopped a rental car in which Mishoe was the driver and Nelson a passenger. The vehicle was returning from New Jersey to Wilmington, North Carolina. Detectives found 7,500 bags of heroin which were to be delivered to HARRIS and another co-conspirator for distribution. Both Nelson and Mishoe were charged in the conspiracy and were sentenced on January 13, 2013, and January 29, 2013, respectively. Nelson was sentenced to 60 months imprisonment and Mishoe received a 36-month sentence.
This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation entitled WoofPack, investigating importers and multi-level distributors of heroin, powder cocaine, crack cocaine, and gang activity associated with this distribution. Thus far 31 persons have been sentenced in federal court as a part of this operation.Investigation of this OCEDTF case is being conducted by the Federal Bureau of Investigations (Safe Streets Task Force); the Bureau of Alcohol, Tobacco, and Firearms and Explosives; the North Carolina State Bureau of Investigations; the Wilmington Police Department; the New Hanover County Sheriff’s Office and the Greenville Police Department. Special Assistant United States Attorney Timothy Severo represents the government. Mr. Severo is a prosecutor with the New Hanover District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
5 March 2013
Youngstown Man Charged with Drug and Firearms ViolationsRead the Press Release
A federal grand jury has returned an indictment charging Wilbert T. Hughes, Jr., age 39, of Youngstown, Ohio, with one count of possession with the intent to distribute 28 grams or more of a mixture or substance containing a detectable amount of cocaine base (crack) and one count of felon in possession of ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The charges stem from activity that toook place on July 23, 2012 in Youngstown, Ohio, according to the indictment.
The case is being prosecuted by Assistant United States Attorney Linda H. Barr after an investigation by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wichita Man Charged with Bank RobberyRead the Press Release
WICHITA, KAN. – A Wichita man has been charged with bank robbery, U.S. Attorney Barry Grissom said today.
Billy L. Wilson, 52, Wichita, Kan., is charged with one count of bank robbery. A criminal complaint filed in U.S. District Court in Wichita alleges that on March 1 Wilson robbed the Commerce Bank at 456 N. Main in Wichita. The complaint alleges that Wilson entered the bank about 10:20 a.m. on March 1. He handed a teller a demand note saying, “This is a robbery. I have a gun. Give me the money,” or words to that effect.
After bank surveillance photos of the robbery were made public, police received a tip that the robber was known from participating in a drug recovery program. On March 1, officers of the Wichita Police Department tracked the robber to a residence in the 800 block of South Hydraulic but he was not at home. They called his cellular phone number. Later in the day he turned himself in at the Sedgwick County Jail.
If convicted, he faces a maximum penalty of 20 years in federal prison and fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Waterloo Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
A man who distributed and possessed child pornography pled guilty on March 4, 2013, in federal court in Cedar Rapids.
Charles Adkins, age 46, from Waterloo, Iowa, was convicted of one count of distribution of child pornography and one count of possession of child pornography.
At the plea hearing, Adkins admitted that, between December 2011 and February 2012, he used the Internet to distribute child pornography. He also admitted that, between September 2011 and March 2012, he possessed child pornography on a laptop computer.Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Adkins was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Adkins faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, $500,000 in fines, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Black Hawk County Sheriff’s Office, the Waterloo Police Department, the U.S. Postal Inspection Service, Homeland Security Investigations, and the Pensacola, Florida, Police Department.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-2034.
Victoria Man Sent to Prison on Firearms ConvictionRead the Press Release
VICTORIA, Texas – Corey Hammon Green, 29, of Victoria, has been sentenced to federal prison for being a convicted felon in possession of a firearm, United States Attorney Kenneth Magidson announced today. Green was convicted at trial on Oct. 24, 2012.
Senior U.S. District Judge John D. Rainey, who presided over the trial, sentenced Green yesterday afternoon. Green was handed a sentence of 120 months, the maximum sentenced allowed under that charge. Green will further be required to serve a three-year-term of supervised release following completion of his prison term.
Evidence at trial proved that at the time of his arrest, Green was facilitating a prostitution ring. In late 2011, Green had taken one of his victims to a local Victoria hotel to what he thought was for prostitution services. However, the young woman, who testified at trial, had previously contacted law enforcement.
Green waited outside for the escort in his vehicle. After music time had passed without seeing the female, Green walked into the hotel where he was arrested by the Victoria Police Department. At that time, officers searched his vehicle and discovered a firearm in a compartment in the rear of his vehicle.
During the course of the trial, additional testimony revealed that Green had possessed and even brandished a firearm on multiple drug deals and that he had assaulted one of his female victims with the firearm.
Green has been in custody since the time of his arrest where he will remain pending sentencing.
The indictment and conviction of Green was the result of an investigated by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Victoria Police Department. The case was prosecuted by Assistant United States Attorney Patricia Hubert Booth.
Union County, N.J., Man Sentenced to 105 Months in Prison for Robbing Seven TD BanksRead the Press Release
TRENTON, N.J. – A Union County, N.J., man today was sentenced to 105 months in prison for robbing seven branch locations of TD Bank throughout New Jersey from September 2011 to December 2011, U.S. Attorney Paul J. Fishman announced.
Julio Ferrer, 29, of Elizabeth, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an Information charging him with seven counts of bank robbery. He was sentenced by Judge Pisano today in Trenton federal court.
According to documents filed in this case and statements made in court:
Ferrer admitted robbing the following TD Bank branches:
Count
Date
TD Bank Location
Sept. 11, 2011
560 North Avenue East
Westfield, N.J.2
Oct. 19, 2011
37 Saint George Avenue
Roselle, N.J.3
Nov. 19, 2011
1071 St. Georges Avenue
Rahway, N.J.4
Dec. 1, 2011
70 Middlesex Avenue
Metuchen, N.J.5
Dec. 11, 2011
1906 Lincoln Highway
Edison, N.J.6
Dec. 16, 2011
570 Chestnut Street
Union, N.J.7
Dec. 22, 2011
883 State Road
Princeton, N.J.In every robbery, Ferrer passed handwritten demand notes to bank tellers. He admitted using a fake gun in the robbery of the TD Bank in Edison. Ferrer was on supervised release from a prior federal bank robbery conviction when he began his robbery spree.
In addition to a prison term, Judge Pisano sentenced Ferrer to three years of supervised release and $33,840 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, and the police departments of Westfield, Roselle, Rahway, Metuchen, Edison, Union and Princeton, with the investigation that resulted in today’s sentencing.
The government is represented by Assistant U.S. Attorney Jane H. Yoon of the U.S. Attorney’s Office in Newark.13-106
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, NewarkU.S. Supreme Court Denies Petition for Writ of Certiorari of Former North Providence Solicitor Robert CiresiRead the Press Release
PROVIDENCE, R.I. – The United States Supreme Court on Monday denied a petition for writ of certiorari filed by former North Providence solicitor Robert S. Ciresi, announced United States Attorney Peter F. Neronha.
The former town official was seeking a U.S. Supreme Court review of his April 2011 conviction by a federal court jury in Providence on charges of conspiracy, bribery and Hobbs Act Extortion. Ciresi also sought a review of the 63 month federal prison sentence and $10,000 fine imposed on August 3, 2011, by U.S. District Court Chief Judge Mary M. Lisi.
In October 2012, the First Circuit Court of Appeals upheld Ciresi’s conviction for his role as a middle-man in a corruption and kickback scheme run by three North Providence town councilmen.
Former North Providence councilmen Joseph S. Burchfield; Raymond L. Douglas III; and John A. Zambarano pled guilty for their roles in the kickback scheme and are currently serving sentences ranging from 64 to 78 months in federal prison. North Providence businessman Edward Imondi pled guilty to acting as a middle-man in the scheme and was sentenced to serve a 12 month and 1 day federal prison sentence.
The matter was prosecuted in the U.S. District Court in Providence by Assistant U.S. Attorneys John P. McAdams and Terrence P. Donnelly. The case was argued before the First Circuit Court of Appeals by Assistant U.S. Attorney Donald C. Lockhart.
Contact: 401-709-5357
[email protected]Two San Gabriel Valley Men Charged with Participating in ‘Black Market Peso Exchange’ Scheme Used to Move Money Out of U.S.Read the Press Release
LOS ANGELES – Two men and the import-export company they allegedly used to move millions of dollars linked to illegal activity from the United States to Mexico are scheduled to be arraigned this afternoon after being indicted on federal charges of operating an unlicensed money transmitting business and structuring cash transactions.
According to an indictment returned by a federal grand jury on February 13, the three defendants received large sums of cash and worked with “peso brokers” in Mexico to illegally convert the dollars to pesos.
The three defendants named in the 93-count indictment are: Peace & Rich Import, Inc., a wholesale distributor of silk flowers and other goods, located on Weaver Avenue in South El Monte;
Chaur Hwan “Kenny” Lin, 66, of San Marino, the president and co-owner of Peace & Rich; and
Antonio Pareja, 53, of San Gabriel, the manager of Peace & Rich.
All three defendants are scheduled to be arraigned this afternoon at 2:00 p.m. in United States District Court in downtown Los Angeles.
Lin and Pareja ran Peace & Rich as “an informal money transfer system” that, according to the indictment, “was involved in facilitating the transfer of money domestically outside of the conventional financial institutions system.”
An investigation by the Drug Enforcement Administration in Los Angeles determined that Lin and Pareja used Peace & Rich to receive large amounts of cash derived from illegal activity. The cash – tens of thousands of dollars, sometimes hundreds of thousands of dollars, according to the indictment – was typically delivered by couriers working in conjunction a peso broker in Mexico.
In a Black Market Peso Exchange scheme, a peso broker works with an individual engaged in illegal activity, such as a drug trafficker, who has United States currency in the United States that he needs to bring to Mexico and convert to pesos, according to the indictment. The peso broker finds business owners in Mexico who buy goods from vendors in the United States, such as Peace & Rich, and need dollars to pay for those goods. The peso broker arranges for the illegally obtained dollars in the United States to be delivered to the United States-based vendors, such as Peace & Rich, where they are used to pay for the goods purchased by the Mexico-based customers. Once the goods are shipped to Mexico and sold by the Mexico-based business owner for pesos, the pesos are turned over to the peso broker, who then pays the drug trafficker in Mexico.
The indictment alleges that Peace & Rich took in large amounts of cash and conducted transactions without being registered as a money transmitting business and without filing Currency Transaction Reports (CTRs), which are required when a business accepts cash payments of more than $10,000. Lin and Pareja allegedly disbursed cash as directed by a peso broker in Mexico to couriers for delivery to other United States-based businesses on behalf of their Mexico-based customers. Additionally, Lin allegedly “structured” cash deposits – or, made a series of deposits that were less than $10,000 – to avoid the filing of CTRs by the financial institutions where the deposits were made.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The indictment charges all three defendants with conspiracy (five-year statutory maximum sentence), operating an unlicensed money transmitting business (five-year maximum sentence) and 63 counts of failure to file currency transaction reports (10-year statutory maximum sentence for each count). The indictment also charges Peace & Rich and Lin with 28 counts of structuring financial transactions (10-year maximum sentence per count).
Release No. 13-031
Two Medford Armed Career Criminals Each Sentenced to 15 Years in PrisonRead the Press Release
MEDFORD, Ore. — Senior U.S. District Judge Owen M. Panner sentenced Jorge Armando Cisneros, 34, of Medford, Oregon, yesterday to 15 years in federal prison after he pleaded guilty to being a felon in possession of a firearm. Justin Miller, 30, also of Medford, was previously sentenced to 15 years in federal prison for the same offense.
The underlying incident occurred on October 18, 2011, when officers with the Medford Police Department responded to a trespass complaint at a residence. When they arrived, co-defendant Justin Miller was standing in the front yard and appeared to have something concealed in his waistband. Officers ordered Miller to the ground and discovered a loaded Glock .40 caliber handgun in Miller’s waistband. Miller also had a backpack containing digital scales, handcuffs, knives, marijuana, and methamphetamine. Officers determined that defendant Cisneros was present at the residence but had fled out the back door. They searched the area but did not locate Cisneros.
Further police investigation revealed that Miller had obtained the Glock .40 handgun from Cisneros. Cisneros was arrested eight days later during a car stop and admitted giving the Glock .40 handgun to Miller, expecting cash or drugs in return. Cisneros' cell phone contained photos and videos of Cisneros shooting the Glock handgun and other firearms.
Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or drug trafficking crimes is considered an Armed Career Criminal and, if convicted, faces a 15 year mandatory minimum prison sentence. Cisneros is an Armed Career Criminal with six such convictions. These include two convictions for burglary in the first degree, three convictions for felony attempt to elude police, and a conviction for conspiracy to distribute methamphetamine.
Miller is also an Armed Career Criminal, with two prior convictions for burglary in the first degree and a conviction for delivery of methamphetamine, with additional felony convictions for identity theft and possession of methamphetamine.
This case was investigated jointly by the Medford Police Department and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Two Charged with Sex Trafficking of A ChildRead the Press Release
FORT WORTH, Texas — Two individuals, Deundrea R. Miller, 27, and Brittanie S. Brattain, 21, charged in a federal felony criminal complaint with sex trafficking of a child, by force, fraud or coercion, made their initial appearance in federal court this afternoon, before U.S. Magistrate Judge Jeffrey L. Cureton. Brattain was detained pending further disposition of the matter; Miller is detained pending hearings set for later in the week. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed in the case, from September 2012 through January 2013, Miller and Brattain recruited, enticed, harbored and maintained a minor, known as “Jane Doe,” who at the time was 15-years-old, to engage in commercial prostitution activities that were advertised on Backpage.com. Jane Doe engaged in numerous commercial sex acts during this time and turned over all the money she earned from the prostitution to Miller.
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.”
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the charged offense is not less than 10 years or more than life in federal prison and a $250,000 fine.
The investigation is being conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Arlington Police Department and the Fort Worth Police Department — members of the North Texas Anti-Trafficking Team. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Three People Indicted on Cocaine ChargesRead the Press Release
Three people were indicted on charges related to a conspiracy to distribute two kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 charges Christopher Isaac, age 43, of Los Angeles; Sharon Stanley, aka Sharun Stanley, age 40, of Las Vegas; and Charlotte Brookins, age 34, of Las Vegas, with conspiracy to possess with the intent to distribute approximately two kilograms of cocaine; and charging in Count 2, with possession with the intent to distribute approximately two kilograms of cocaine.
This indictment is the result of an investigation by the Federal Bureau of Investigation, Ohio HIDTA, and the Cuyahoga County Sheriff’s Department into drug trafficking activities occurring in the greater Cleveland area and elsewhere. This case is being prosecuted by Assistant United States Attorneys Teresa Dirksen and Matthew Shephard.
If convicted, the defendants' sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, their role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Three Mississippi Men Plead Guilty to Drug Conspiracy ChargesRead the Press Release
Jackson, Miss - Charles Dewayne Loper, 35, of Forest, Mississippi, Willie Carlos Johnson, 25, of Forest, Mississippi, and Scottland R. Stewart, 28, of Lake, Mississippi, pled guilty in U.S. District Court to conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, U.S. Attorney Gregory K. Davis announced.
Loper pled guilty on March 1, 2013 and will be sentenced on May 14, 2013. Johnson and Stewart pled guilty on March 4, 2013 and will be sentenced on May 16, 2013. All three defendants face a maximum penalty of life in prison and a $10 million fine.
The defendants were indicted as a result of an extensive investigation dubbed “Operation Brusha” targeting illegal narcotics distribution in Scott County, Mississippi.
The case was investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives, Homeland Security Investigations and the Mississippi Bureau of Narcotics. Assisting agencies included the Mississippi Highway Patrol, the Forest Police Department, the Scott County Sheriff’s Department, and the Mississippi Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Erin Chalk.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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Three Men Plead Guilty to Using Counterfeit Bank Cards to Steal More Than $103,624Read the Press Release
LAKE CHARLES, La: United States Attorney Stephanie A. Finley announced today that Shanji Jin, 38, of Chicago, Ill., Hong Xi, 63, of Flushing, N.Y., and Yuan Chunshan, aka, “Guang Li”, 43, of Albuquerque, N.M., pleaded guilty Wednesday(Feb. 27) before U.S. District Judge Patricia Minaldi to using counterfeit credit cards to fraudulently obtain funds from Louisiana casinos totaling $103,624.81.
According to court documents, authorities arrested Jin, Xi and Chunshan Nov. 24, 2012, at the Coushatta Casino Resort in Kinder for using the counterfeit cards to get cash advances. The counterfeit cards had the defendants’ names on them, but the numbers could not be matched to any of the three men’s accounts with the financial institutions alleged to have issued the credit cards. They are also responsible for using the cards at L’Auberge Casino in Lake Charles, El Dorado Casino in Shreveport and the Horseshoe Casino in Shreveport. The investigation revealed that Jin took $41,934.55; Xi took $42,394.26; and Li took $19,296.
The defendants face up to 10 years in prison for Conspiracy to Use Unauthorized Access Devices and a $250,000 fine. Sentencing will take place at a later date. The U.S. Secret Service-Baton Rouge Agency and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Howard Parker is prosecuting the case.
Three Federal Detainees Indicted for Assaulting Two Correctional OfficersRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, three federal detainees were indicted for assaulting two correctional officers at the Sherburne County Jail. Ira Lee Goodwin, age 26, Michael Scott Luedtke, age 25, and Edward McCabe Robinson, age 28, were specifically charged with one count of conspiracy to assault persons assisting federal law enforcement officers and two counts of assault upon a person assisting federal law enforcement officers.
The indictment alleges that on February 8, 2013, the defendants conspired with each other to use dangerous and deadly weapons to inflict bodily injury upon two correction officers employed at the Sherburne County Sheriff’s Office. The defendants allegedly used a chair and a can of pepper spray to commit the assault. The officers sustained numerous injuries, one of them suffering a concussion. In performing their duties, the correction officers were assisting deputy United States Marshals.
Goodwin, an admitted member of the Native Mob street gang, was being detained in the Sherburne County Jail pending federal court sentencing, after earlier pleading guilty to charges related to the federal RICO trial now underway for several other members of that gang. Luedtke was being detained pending prison assignment after being sentenced to nearly 25 years in federal prison for committing an armed robbery. Robinson was being held while being tried in federal court on charges connected to an arson and murder on the Red Lake Indian Reservation. All three remain in custody in the Sherburne County Jail.
If convicted, the defendants face a potential maximum penalty of 20 years in federal prison on each assault charge and five years on the conspiracy charge. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Sherburne County Sheriff’s Office and the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Thirteen Cibola County Residents Charged with Drug Trafficking and Firearms OffensesRead the Press Release
ALBUQUERQUE – Thirteen residents of Cibola County, N.M., have been charged with drug trafficking and firearms charges as a result of a multi-agency investigation spearheaded by the DEA, announced U.S. Attorney Kenneth J. Gonzales, Thirteen Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division, and Chief Robert Shilling of the New Mexico State Police.
Eleven of the 13 defendants were arrested earlier today during an early morning arrest operation. One defendant was already in state custody on an unrelated charge, and one has yet to be arrested and is considered a fugitive. Seven of the 11 defendants arrested today are facing federal charges while the remaining four are facing state charges. Four of the federal defendants are charged in two indictments filed under seal on February 27, 2013, and unsealed earlier today. The other three federal defendants are charged in criminal complaints. The four state defendants arrested today also are charged in criminal complaints.
Today’s arrests are the result of a 22-month multi-agency investigation into drug trafficking in Cibola County, which was led by the DEA and the New Mexico State Police with assistance from the Grants Police Department. The investigation, code-named “Operation Ice Cave,” was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The federal defendants include Anthony Lusk, 24, of San Rafael, N.M., and Peter Valdez, 26, of Grants, N.M., who are charged with methamphetamine trafficking offenses in a two-count indictment. According to the indictment, Lusk and Valdez conspired to distribute and did distribute more than 50 grams of methamphetamine in Cibola County in Oct. 2012. If convicted, each faces a minimum ten years to life in prison. Lusk and Valdez were arrested this morning.
A second federal indictment charges Paul Barker, 46, and Leena Martinez, 31, and Nestor Valdez, 49, of San Rafael, with drug trafficking charges. Barker, Martinez and Nestor Valdez allegedly conspired to distribute and did distribute methamphetamine on multiple occasions in Cibola County between May 2011 and Dec. 2012. The indictment also charges Martinez and Nestor Valdez with distributing heroin in Aug. 2012. Nestor Valdez also is charged with being a felon in possession of a firearm. If convicted on the drug trafficking charges, Barker, Martinez and Nestor Valdez each face a minimum of five years to a maximum of 40 years in prison. Nestor Valdez faces up to ten years in prison if convicted on the firearms charge. Martinez and Nestor Valdez were arrested this morning. Barker has yet to be arrested and is considered a fugitive.
Rachel Basurto, 52, of Grants, was arrested on federal methamphetamine and heroin trafficking charges this morning. If convicted, she faces a minimum five years to a maximum of 40 years in prison. Two other individuals were arrested on federal firearms charges. Adrian O. Leyva-Villalobos, 41, and Alberto Lujan-Ruiz, 50, both Mexican nationals who were residing in San Rafael, are charged with being illegal aliens in possession of firearms. Each faces a maximum of ten years in prison if convicted.
The seven federal defendants are scheduled to make their initial appearance in federal court tomorrow morning.
The following five state defendants were arrested this morning on possession of a controlled substance charges: Donald Cantrell, 63, of San Rafael; Richard Corley, 51, of Milan, N.M.; Isaac Fleming, 41, of San Rafael; Elisha Valery Muller, 27, of Belen, N.M.; and Ermalinda Rodriguez, 42, of San Rafael. Marcela Camacho, 29, of Grants, who was already in state custody on an unrelated charge, also has been charged with possession of a controlled substance. These defendants are charged in criminal complaints filed in the District Court for the Thirteenth Judicial District of the State of New Mexico.
During the course of the investigation, law enforcement officers obtained approximately a pound of methamphetamine from the defendants charged in the two federal indictments. During today’s law enforcement operation, they seized an additional 112 grams of heroin and 56 grams of methamphetamine, more than $30,000 in cash, ten firearms, ballistics body armor and a vehicle.
In announcing today’s arrests, U.S. Attorney Gonzales said, “I commend the dedicated efforts of the DEA, the New Mexico State Police and the Grants Police Department as well as the prosecutors in my office and Thirteenth Judicial District Attorney’s Office in this significant OCDETF investigation. Because of their hard work and diligence, the people who live in Cibola County have a safer place to live and raise families.”
“The indictments, arrests and seizures in this investigation are the direct result of outstanding partnerships with state and local law enforcement,” said Mr. Arabit, DEA Special Agent in Charge. “By holding drug dealers responsible for their crimes, we are making significant progress in our efforts to prevent the spread of methamphetamine trafficking and abuse. We will continue to work together to have a positive impact in local communities.”
“This raid was sorely needed in Cibola County,” said District Attorney Martinez. “I want to thank all involved for all their time and effort, and I hope we can continue this type of effort not only within the Thirteenth Judicial District but throughout the State of New Mexico. Drug traffickers beware, we will get you.”
“The New Mexico State Police is committed to addressing quality of life issues in our communities around the state,” said New Mexico State Police Chief Shilling. “Today’s successful operation is proof of that commitment, and that commitment includes strong relationships with our federal partners in making our communities safe and secure. Drugs, and the associated crimes, continue to be one of the highest priority initiatives in our agency, and we will continue to aggressively target those that choose to disrupt the safety, security, and happiness of our citizens. I wish to thank the State Police Investigations Bureau and our federal partners for all of their hard work, dedication, and perseverance in making our communities safer.”
These cases were investigated by the DEA and the New Mexico State Police with assistance from the Grants Police Department. The federal cases are being prosecuted by Assistant U.S. Attorney Joel R. Meyers and Shammara H. Henderson, and the state cases are being prosecuted by Assistant District Attorney Troy Gray. The Albuquerque Police Department, Bernalillo County Sheriff’s Office, U.S. Marshals Service, U.S. Border Patrol, El Paso County Sheriff’s Office and Careflight Medevac Services assisted in this morning’s law enforcement operation.
Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Six Men Plead Guilty to Federal Charges for Producing and Selling False Identification Documents-Charges Followed Investigation of Ring in Northwest Washington-Read the Press Release
WASHINGTON – Six men pled guilty today to federal charges stemming from the operation of a ring that produced and sold false identification documents in the Columbia Heights area of Northwest Washington, announced U.S. Attorney Ronald C. Machen Jr. and John P. Torres, Special Agent in Charge of the Washington, D.C. field office of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
The defendants were indicted in October 2012 in the U.S. District Court for the District of Columbia, following an investigation into sales of fraudulent identity documents near the Columbia Heights Metrorail station at 14th and Irving Streets NW.
Those pleading guilty include: Rocio Sanchez-Flores, also known as “Amador” and “Taliban,” 30, of Washington, D.C., the alleged ringleader of the scheme; Carlos Armando Rivas-Rivas, also known as “Paisa,” 41, of Silver Spring, Md.; Javier Lopez, also known as “Pumba,” 45, of Washington, D.C.; Juan Guarneros, also known as “Lobo,” 54, of Washington, D.C.; Victor Bedillo, 42, of Silver Spring, Md., and Juan Lopez-Medina, also known as “Juanito,” 43, of Washington, D.C.
Each defendant appeared before the Honorable Magistrate Judge John M. Facciola and pled guilty to one count of conspiracy. Except for Guarneros, all also pled guilty to a charge of transfer of fraudulent identity documents. Guarneros pled guilty to a charge of production of fraudulent documents. The conspiracy charge carries a statutory maximum of five years in prison and financial penalties. The charges of transfer and production of fraudulent identity documents carry a statutory maximum of 15 years of incarceration and financial penalties. Sentencing will be set at a later date before the Honorable Emmet G. Sullivan.
“Today's guilty pleas are the culmination of a successful effort to dismantle a document fraud ring that operated for years in Columbia Heights,” said U.S. Attorney Machen. “'Taliban̙' Sanchez-Flores created an assembly-line fraud factory in his D.C. home, churning out fake government documents for cash. Those bogus documents facilitated other criminal activity and undermined effective law enforcement. The District of Columbia is safer and more secure with this ring out of business.”
“Today’s guilty pleas represent the diligence and hard work of HSI special agents in dismantling a fraudulent identity ring that served as a one-stop shop for those seeking to obtain counterfeit identification cards,” said Special Agent in Charge Torres. “HSI in D.C. is committed to combatting identity theft and document fraud by targeting illicit organizations that pose a threat to potential victims in our area.”
According to a statement of offense, signed by the defendants as well as the government, members of the group participated in the ring from in or around March 2010 until October 2012, when authorities made arrests. The defendants produced and sold false documents, including permanent resident cards, employment authorization cards, Social Security cards, and State licenses and identification cards. Depending on the type and quality of fraudulent identity documents, the defendants charged customers between $40 and $200 per transaction.
Potential customers typically provided their photographs, names, dates of birth and the kinds of fraudulent documents they wanted to purchase. Documents were manufactured at Sanchez-Flores’s home in the 1500 block of Ogden Street NW.
As part of his plea agreement, Sanchez-Flores agreed to the forfeiture of $5,000. All six defendants also acknowledged that, because they are not U.S. citizens, they consent to removal from the country upon completion of their sentences.
This case was investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Washington, D.C. field office, with assistance from other agencies. It is being prosecuted by Assistant U.S. Attorneys Frederick Yette, T. Patrick Martin and Mona Sahaf, of the U.S. Attorney’s Office for the District of Columbia.
13-085Seven Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - Seven individuals were sentenced on March 4, 2013, in United States District Court in Martinsburg by Judge Gina M. Groh.
United States Attorney William J. Ihlenfeld, II, announced that:
ASHLEY DAWN KING, age 28, of Martinsburg, was sentenced to 60 months imprisonment to be followed by four years of supervised release. KING entered a plea of guilty on November 14, 2012, to “Possession with Intent to Distribute 29.8 Grams of Crack Cocaine” on October 7, 2011, in Martinsburg. KING, who is free on bond, will self-report to the designated Federal institution on April 8, 2013.
The case was prosecuted by Assistant United States Attorney Jarod Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
RYAN LAMBERT BARNES, age 31, of Augusta, West Virginia, was sentenced to 5 years probation. BARNES entered a plea of guilty on November 27, 2012, to “Knowing Transfer of a Short-Barreled Shotgun” on August 30, 2011, in Hampshire County. BARNES knowingly transferred a Relevation shot gun with no serial number to a confidential informant for $100. Conversation during the transaction revealed that BARNES knew the shot gun was too short and not registered.
This case was prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Hampshire County Sheriff’s Department.
DONALD NELSON DAVEY, II, age 34, of Burlington, West Virginia, was sentenced to 37 months imprisonment to be followed by three years of supervised release. DAVEY entered a plea of guilty on October 10, 2012, to “Felon in Possession of Ammunition” on April
9, 2012. DAVEY, having previously been convicted of Possession of Counterfeit Securities in the Northern District of West Virginia District Court, knowingly possessed 20 Remington pellet shells and one Remington 20 gauge slug. DAVEY was remanded to the custody of the United States Marshal pending designation to a Federal institution.The case was prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by the United States Probation office and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
CARLOS GAUSE, age 38, of Wilmington, North Carolina, was sentenced to 46 months imprisonment to be followed by three years of supervised release. GAUSE entered a plea of guilty on November 28, 2012, to “Use of a Counterfeit Access Device” on March 14, 2010, at the Hollywood Casino in Charles Town, West Virginia, when GAUSE presented photographic identification along with a counterfeit credit card in order to obtain a cash advance of $1,000. GAUSE also recruited others from North Carolina and New York and provided them counterfeit credit cards to similarly obtain money from the casino in Charles Town and another casino in Dover, Delaware. GAUSE was also ordered to make restitution in the amount of $155,300. GAUSE, who is on bond, will self-report to the designated Federal institution.
TITUS LAVELL LEE, age 39-year old Wilmington, North Carolina, was sentenced to
30 months imprisonment to be followed by three years of supervised release. LEE entered a plea of guilty on November 29, 2012, to “Use of a Counterfeit Access Device” at the Hollywood Casino in Charles Town when LEE, in 2010, presented photographic identification along with a counterfeit credit card in order to obtain a cash advance of $1,000. LEE was also ordered to make restitution in the amount of $27,500. LEE, who is on bond, will self-report to the designated Federal institution.DWAYNE FLEMING, age 36, of Brooklyn, New York, was sentenced to 21 months imprisonment to be followed by three years of supervised release. FLEMING entered a plea of guilty on November 28, 2012, to “Use of a Counterfeit Access Device” on April 3, 2010, at the Hollywood Casino in Charles Town, West Virginia, when FLEMING presented photographic identification along with a counterfeit credit card in order to obtain a cash advance of $1,000. FLEMING was also ordered to make restitution in the amount of $27,700. FLEMING, who is on bond, will self-report to the designated Federal institution.
TERICKA GRADY, age 36, of Castle Hayne, North Carolina, was sentenced to 5 years probation. GRADY entered a plea of guilty on November 29, 2012, to “Use of a Counterfeit Access Device” on April 4, 2010, at the casino in Charles Town, West Virginia, when GRADY presented photographic identification, along with a counterfeit credit card in order to obtain a cash advance of $1,000. GRADY was ordered to make restitution in the amount of $10,000.
The case was prosecuted by Assistant United States Attorney Andrew R. Cogar and former Assistant United States Attorney Thomas O. Mucklow and was investigated by the West Virginia State Police and United States Secret Service.
Santa Barbara Accountant Sentenced to Three Years in Federal Prison in Tax Fraud Case Involving Sham Non-Profit OrganizationRead the Press Release
LOS ANGELES – A Santa Barbara-based certified public accountant has been sentenced to 36 months in federal prison for failing to report more than $1 million on federal tax returns by pretending that money earned through his accounting business came from a charitable foundation he called the Foundation for Harmony and Happiness.
Steven Mark Pybrum, 61, who resided in Montecito and claimed on his website that he appeared as a tax and financial expert on national television shows, was sentenced late yesterday afternoon following his conviction last year on four counts of subscribing to false income tax returns.
Pybrum fraudulently used money from his non-profit organization to pay personal expenses, including renting a Montecito mansion and buying a plane, a fishing boat and an SUV.
At yesterday’s sentencing hearing, United States District Judge Gary A. Feess stated Pybrum operated a “blatant, calculated, tax-fraud scheme,” and that his conduct was “indefensible.”
Pybrum, who operated his accounting practice under the names of Pybrum & Company and Family Business Center, was convicted by a jury last October. The evidence presented during a three-day trial showed that Pybrum subscribed to false individual income tax returns for the tax years 1999 through 2002, and that he underreported his income on tax returns that were filed up to three years late.
In 1999, Pybrum began depositing receipts from his accounting practice into a bank account held in the name of the Foundation for Harmony and Happiness (FFHH). Documents filed with the IRS stated that FFHH was established to provide financial and conflict resolution to help couples avoid financial disputes, which Pybrum claimed was a leading cause of divorce.
The evidence presented at trial showed that between 1999 and 2002, Pybrum brought in as much as $380,000 per year from accounting work. But instead of reporting that income on his own tax return, he claimed that money had been earned by FFHH for providing marital counseling. Prosecutors stated at trial that there was no evidence that FFHH actually did any charitable work or earned any money for charitable activities during these four years, and that FFHH was simply a name on bank accounts that Pybrum set up to avoid paying taxes.
The investigation of Pybrum was conducted by IRS - Criminal Investigation in Los Angeles.
Release No. 13-030
Sandpoint Man Sentenced for Illegally Possessing FirearmRead the Press Release
COEUR D’ALENE – Joshua Christopher Gervasi, 19, of Sandpoint, Idaho, was sentenced today to 36 months in prison for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Gervasi to serve three years of supervised release following his prison term. Gervasi pleaded guilty to the charge on December 4, 2012.
According to court statements, in August 2012, Gervasi was stopped by a Bonner County Deputy Sheriff for a traffic violation. During the traffic stop, Gervasi told the deputy that he had a handgun in his vehicle. The Bonner County deputy located the firearm next to Gervasi, under a shirt. The handgun was a 9 millimeter with 15 rounds in the magazine. Gervasi was prohibited from possessing the firearm because of a prior felony conviction for possession of methamphetamine. He has been in custody since his arrest.
The case was investigated by the Bonner County Sheriff’s Office and the North Idaho Violent Crimes Task Force (NIVCTF). The NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Shoshone County Sheriff's Office, Bonner County Sheriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and the Coeur d'Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Pasco County Bank Robber Sentenced to Nearly 10 Years in Federal PrisonRead the Press Release
Tampa, FL - Senior U.S. District Judge Susan C. Bucklew today sentenced Thomas Eugene Rhoden (48, Zephyrhills) to 9 years and 7 months in federal prison for two bank robberies in October 2012. The court sentenced Rhoden to the high-end of the applicable sentencing guidelines, noting the seriousness of the offenses and his significant criminal history. As part of Rhoden's sentence, the court also entered a money judgment in the amount of $4,876.00, the amount of money he stole from the banks. Rhoden was also ordered to pay restitution in that same amount. Rhoden pleaded guilty to two counts of bank robbery on December 18, 2012.
According to court documents, on October 10, 2012, Rhoden entered the Zephyrhills branch of Sunshine State Federal Savings Bank dressed in dark colored clothing and wearing a waist pack. He passed a note to the teller demanding money. He also stated that he had a bomb in the waist pack, and that this was not a joke. The following week, on October 17, 2012, Rhoden robbed a Hudson branch of Bank of America in the same manner. He threatened the teller and ordered her to not try anything. The Pasco County Sheriff's Office bomb squad responded to the scene of both bank robberies to disarm the alleged bombs. In both instances the bombs turned out to be dirt and gravel.
"Once again our partnership with the U.S. Attorney's Office and FBI has proven successful in bringing another criminal to justice and protecting our citizens," said Sheriff Chris Nocco. "As a team we have demonstrated that there will be consequences to a criminal's bad decision."
This case was investigated by the Federal Bureau of Investigation and the Pasco County Sheriff's Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Par Pharmaceuticals Pleads Guilty and Agrees to Pay $45 Million to Resolve Civil and Criminal Allegations Related to Off-Label MarketingRead the Press Release
New Jersey-based Par Pharmaceutical Companies Inc. pleaded guilty in federal court today and agreed to pay $45 million to resolve its criminal and civil liability in the company’s promotion of its prescription drug Megace ES for uses not approved as safe and effective by the Food and Drug Administration (FDA) and not covered by federal health care programs, the Justice Department announced.
Chief Executive Officer Paul V. Campanelli pleaded guilty on behalf of Par before U.S. Magistrate Judge Madeline Cox Arleo earlier today in Newark, N.J., federal court. Judge Arleo fined Par $18 million and ordered $4.5 million in criminal forfeiture. Par also agreed to pay $22.5 million to resolve its civil liability.
“Today’s resolution emphasizes the importance of the U.S. government’s coordinated efforts to combat health care fraud. We expect companies to make honest, lawful claims about the drugs they sell. We will be vigorous in our enforcement efforts when they break the law, to ensure that they are held accountable,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division.
“The FDA requires drug makers to go through a stringent approval process before new drugs – or new uses for existing drugs – are made available to doctors and their patients,” said Paul J. Fishman, U.S. Attorney for the District of New Jersey. “Today, Par admitted that it chose to ignore that process in pursuit of more sales and greater profits. It is paying the price for its choice.”
“Individual accountability of Par’s board and executives is required under the comprehensive five-year integrity agreement the Office of the Inspector General has with the company,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “For example, company executives may have to forfeit annual bonuses if they or their subordinates engage in significant misconduct, and sales representatives may not be paid incentive compensation for the drug involved in the case, or successor branded versions of that drug.”
“The public has been well served by this investigation and the FDA commends the efforts of the U.S. Attorney's Office in New Jersey, the Department of Justice and the other law enforcement agencies that worked with us to vigorously pursue this matter,” said Mark Dragonetti, Special Agent in Charge of the FDA’s Office of Criminal Investigation's New York Field Office. “Today’s settlement demonstrates the FDA’s continued commitment to target companies that disregard the safeguards of the drug approval process and promote drugs for uses before they have been proven to be safe and effective.”
Par pleaded guilty to an information charging it with a criminal misdemeanor for misbranding Megace ES in violation of the Federal Food, Drug and Cosmetic Act (FDCA). Megace ES, a megestrol acetate drug product was approved by the FDA to treat anorexia, cachexia, or other significant weight loss suffered by patients with AIDS. The Megace ES distributed nationwide by Par was criminally misbranded because its FDA-approved labeling lacked adequate directions for use in the treatment of non-AIDS-related geriatric wasting, a use that was intended by Par but never approved by the FDA. The FDCA requires companies such as Par to specify the intended uses of a product in its new drug application to the FDA. Once approved, a drug may not be distributed in interstate commerce for unapproved or “off-label” uses until the company receives FDA approval for the new intended uses. In addition to the criminal fine and forfeiture, the plea agreement mandates that Par implement several compliance measures and annually provide the U.S. Attorney’s Office with a sworn certification from its chief executive officer that the company has not unlawfully marketed any of its pharmaceutical products.
The civil settlement agreement requires Par to pay $22.5 million to the federal government and various states to resolve claims arising from its off-label marketing. The civil settlement resolves allegations that Par, by promoting the sale and use of Megace ES for uses that were not FDA-approved and not covered by Federal health care programs, caused false claims to be submitted to these programs. The United States further alleged that Par deliberately and improperly targeted sales to elderly nursing home residents with weight loss, whether or not such patients suffered from AIDS, and launched a long-term care sales force to market to this population. During this marketing campaign, Par was allegedly aware of adverse side effects associated with the use of megestrol acetate in elderly patients, including an increased risk of deep vein thrombosis, toxic reactions in elderly patients with impaired renal function, and mortality. The United States alleged that Par made unsubstantiated and misleading representations about the superiority of Megace ES over generic megestrol acetate for elderly patients to encourage providers to switch patients from generic megestrol acetate to Megace ES, despite having conducted no well-controlled studies to support a claim of greater efficacy for Megace ES. Except as admitted in the plea agreement, the claims settled by the civil settlement agreement are allegations only, and there has been no determination of liability as to those claims.
In addition to the criminal and civil resolutions, Par also agreed to enter into a five-year corporate integrity agreement with the Office of the Inspector General of the Department of Health and Human Services (HHS-OIG) that requires enhanced accountability, increased transparency and wide-ranging monitoring activities conducted by both internal and independent external reviewers.
The plea agreement and corporate integrity agreement include provisions that require Par to implement changes to the way it does business. The plea agreement and agreement prohibit Par from providing compensation to sales representatives or their managers based on the volume of sale of Megace ES, and in the corporate integrity agreement, based on the volume of Megace ES and any branded successor megestrol acetate drug. Under the agreement, Par is also required to change its executive compensation program to permit the company to recoup annual bonuses from covered executives if they, or their subordinates, engage in significant misconduct.
The settlement resolves three lawsuits filed under the whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States and obtain a portion of the government’s recovery. The civil lawsuits were filed in the District of New Jersey and are captioned U.S. ex rel. McKeen and Combs v. Par Pharma ceutical, et al., U.S. ex rel. Thompson v. Par Pha rmac eutical, et al., and U.S. ex rel. Elliott & Lundstrom v. Bristol-M yers Squibb, Par Pharma ceutical, et al. As part of today’s resolution, relators McKeen and Combs will receive $4.4 million.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.1 billion.
Par Pharmaceutical Companies Inc. Pleads Guilty, Admits Misbranding of Megacer EsRead the Press Release
Agrees to Pay $45M to Resolve Criminal and Civil Investigations
NEWARK, N.J. – New Jersey-based Par Pharmaceutical Companies Inc. (“Par”) pleaded guilty in federal court today and agreed to pay $45 million to resolve its criminal and civil liability in the company’s promotion of its prescription drug Megace® ES for uses not approved as safe and effective by the Food and Drug Administration (FDA) and not covered by federal health care programs, the Justice Department announced.
Chief Executive Officer Paul V. Campanelli pleaded guilty on behalf of Par before U.S. Magistrate Judge Madeline Cox Arleo earlier today in Newark federal court. Judge Arleo imposed sentence today, fining Par $18 million and ordering $4.5 million in criminal forfeiture. Par also agreed to pay $22.5 million to resolve its civil liability.
“The FDA requires drug makers to go through a stringent approval process before new drugs – or new uses for existing drugs – are made available to doctors and their patients,” U.S. Attorney Paul J. Fishman said. “Today, Par admitted that it chose to ignore that process in pursuit of more sales and greater profits. It is paying the price for its choice.”
“Today’s resolution emphasizes the importance of the U.S. government’s coordinated efforts to combat health care fraud. We expect companies to make honest, lawful claims about the drugs they sell. We will be vigorous in our enforcement efforts when they break the law, to ensure that they are held accountable,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division.
“Individual accountability of Par's board and executives is required under the comprehensive five-year integrity agreement OIG has with the company,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “For example, company executives may have to forfeit annual bonuses if they or their subordinates engage in significant misconduct, and sales representatives may not be paid incentive compensation for the drug involved in the case, or successor branded versions of that drug.”
“The public has been well served by this investigation and the FDA commends the efforts of the U.S. Attorney's Office in New Jersey, the Department of Justice and the other law enforcement agencies that worked with us to vigorously pursue this matter,” said Mark Dragonetti, Special Agent In Charge of the FDA's Office of Criminal Investigation's New York Field Office. “Today's settlement demonstrates the FDA's continued commitment to target companies that disregard the safeguards of the drug approval process and promote drugs for uses before they have been proven to be safe and effective.”
Par pleaded guilty to an Information charging it with a criminal misdemeanor for misbranding Megace® ES in violation of the Federal Food, Drug, and Cosmetic Act (“FDCA”). Megace® ES, a megestrol acetate drug product, was approved by the FDA to treat anorexia, cachexia, or other significant weight loss suffered by patients with AIDS (the “AIDS Indication”). The Megace® ES distributed nationwide by Par was criminally misbranded because its FDA-approved labeling lacked adequate directions for use in the treatment of non-AIDS-related geriatric wasting, a use that was intended by Par but never approved by the FDA. The FDCA requires companies such as Par to specify the intended uses of a product in an application to the FDA. Once approved, a drug may not be distributed in interstate commerce for unapproved or “off-label” uses until the company receives FDA approval for the new intended uses. In addition to the criminal fine and forfeiture, the plea agreement mandates that Par implement several compliance measures and annually provide the U.S. Attorney’s Office with a sworn certification from its chief executive officer that the company has not unlawfully marketed any of its pharmaceutical products.
The civil settlement agreement requires Par to pay $22.5 million to the federal government and various states to resolve claims arising from its off-label marketing. The civil settlement resolves allegations that Par, by promoting the sale and use of Megace® ES for uses that were not FDA-approved and not covered by Federal health care programs, caused false claims to be submitted to these programs. The United States further alleged that Par deliberately and improperly targeted sales to elderly nursing home residents with weight loss, whether or not such patients suffered from AIDS, and launched a long-term care sales force to market to this population. During this marketing campaign, Par was allegedly aware of adverse side effects associated with the use of megestrol acetate in elderly patients, including an increased risk of deep vein thrombosis, toxic reactions in elderly patients with impaired renal function, and mortality. The United States alleged that Par made unsubstantiated and misleading representations about the superiority of Megace® ES over generic megestrol acetate for elderly patients to encourage providers to switch patients from generic megestrol acetate to Megace® ES, despite having conducted no well-controlled studies to support a claim of greater efficacy for Megace® ES. Except as admitted in the plea agreement, the claims settled by the civil settlement agreement are allegations only, and there has been no determination of liability as to those claims.
In addition to the criminal and civil resolutions, Par also agreed to enter into a five-year Corporate Integrity Agreement with the Office of the Inspector General of the Department of Health and Human Services (“HHS-OIG”) that requires enhanced accountability, increased transparency, and wide-ranging monitoring activities conducted by both internal and independent external reviewers.
The plea agreement and CIA include provisions that require Par to implement changes to the way it does business. The plea agreement and CIA prohibit Par from providing compensation to sales representatives or their managers based on the volume of sale of Megace ES, and in the CIA, based on the volume of Megace ES and any branded successor megestrol acetate drug. Under the CIA, Par is also required to change its executive compensation program to permit the company to recoup annual bonuses from covered executives if they, or their subordinates, engage in significant misconduct.
The settlement resolves three lawsuits filed under the whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States and obtain a portion of the government’s recovery. The civil lawsuits were filed in the District of New Jersey and are captioned U.S. ex rel. McKeen and Combs v. Par Pharmaceutical, et al., U.S. ex rel. Thompson v. Par Pharmaceutical, et al., and U.S. ex rel. Elliott & Lundstrom v. Bristol-Myers Squibb, Par Pharmaceutical, et al. As part of today’s resolution, relators McKeen and Combs will receive $4.4 million.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.1 billion.
History of Megace® ES and Par’s Failed Attempts to Obtain FDA Approval of a Geriatric Wasting Indication for Megace® ES
According to the Information, a drug named Megace® OS – a predecessor to Megace® ES – was approved by the FDA in 1993 for the AIDS Indication. Between 2002 and 2005, Par’s market research showed that practitioners prescribed Megace® OS 1 for uses that were inconsistent with the approved labeling, including geriatric weight loss, and that the overwhelming majority of Megace® OS prescriptions were written for such off-label uses.
In 2002, Par first approached the FDA and discussed the company’s plan to seek approval of a new formulation of Megace® OS as a treatment option for geriatric patients with malnutrition. Par did not thereafter seek approval for that patient population. Instead, in June 2004, Par relied on the Megace® OS safety and effectiveness data in seeking approval for Megace® ES for the AIDS indication, i.e., the same indication as Megace® OS. Less than two months after the FDA approved Megace® ES for the AIDS indication, Par requested a meeting with the FDA to discuss Par’s intent to seek approval of Megace® ES for certain non-AIDS geriatric patients. Par never sought approval for that patient population, nor did Par ever conduct drug trials in the geriatric population.Par’s “Conversion” Strategy, False Superiority Claims, and Promotion of
Megace® ES for Geriatric WastingDespite knowing that Megace® ES had a limited market for its approved use, Par set aggressive sales goals for the product launch. After failing to attain these goals, Par adopted and implemented a marketing strategy designed to promote Megace® ES to geriatric wasting patients – the same population Par had twice discussed with the FDA. Par devised sales call panels which required Par sales representatives to market Megace® ES in nursing homes, as well as to practitioners who treated geriatric patients. These call panels identified physicians with the highest number of Megace® OS prescriptions as the top targets to “convert” from the old Megace® OS to Par’s Megace® ES product. Some Par sales managers required that their subordinates visit 10 to15 nursing homes a week to promote Megace® ES, and told them there would be possible employment consequences, including termination, if they did not promote Megace® ES in nursing homes.
While targeting an audience of health care practitioners that treated the elderly or geriatric population, Par promoted Megace® ES by making false and/or misleading claims that Megace® ES was superior to Megace® OS, including:
- Despite having no clinical support for the claim, Par sales representatives promoted Megace® ES as more effective than Megace® OS;
- Despite having no clinical support for the claim, Par sales representatives claimed that Megace® ES worked faster and was more effective than other products, and used the phrase “speed and ease” to promote Megace® ES;
- Par sales representatives were taught to try and “flip” a nursing home by asking the homes to convert all Megace® OS patients in the nursing home to Megace® ES, despite knowing that the nursing homes contained very few, if any, AIDS patients and the requested patients would therefore be using the product for off-label purposes;
- Par trained and directed its sales force to minimize or eliminate mentioning altogether the FDA-approved indication for Megace® ES during promotional sales calls, so as to draw as little attention as possible to the fact that Megace® ES was not approved for geriatric wasting; and
- Par managers trained, directed, and encouraged their sales representatives to ask health care practitioners for patient information protected by the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), so that the representatives could request that certain patients who were using Megace® OS be switched to Megace® ES.
U.S. Attorney Fishman said the corporate guilty plea, the civil settlement, and the corporate integrity agreement are the culmination of a multi-year investigation conducted jointly by special agents from HHS-OIG, under the direction of Special Agent in Charge Tom O’Donnell, special agents from FDA-OIG, under the direction of Special Agent in Charge Mark Dragonetti, and criminal investigators and paralegals with the U.S. Attorney’s Office.
U.S. Attorney Fishman thanked the Defense Criminal Investigative Service; the Office of Personnel Management-Office of Inspector General; the Department of Veterans’ Affairs Office of Inspector General; and TRICARE Program Integrity for assisting in the investigation. He also thanked the National Association of Medicaid Fraud Control Units (NAMFCU), with assistance from the Medicaid Fraud Control Unit of the Ohio Attorney General’s Office for their help in coordinating the settlements with the various states.
The government is represented in the prosecution of the criminal case by Assistant U.S. Attorney Joseph Mack of the U.S. Attorney’s Office Health Care and Government Fraud Unit and Special Assistant U.S. Attorney Shannon M. Singleton from the FDA's Office of Chief Counsel. Paralegals Jeffrey Skonieczny and Doug Minotti with the U.S. Attorney’s Office and Trial Attorney David Frank of the Department of Justice’s Consumer Protection Branch assisted on the criminal side of the case. The government is represented in the civil settlement by Assistant U.S. Attorney David Dauenheimer and Trial Attorney Eva Gunasekera from the Department of Justice’s Commercial Litigation Branch. The corporate integrity agreement was negotiated by Christina McGarvey and Gregory Lindquist from the Department of Health and Human Service’s Office of Inspector General.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office, District of New Jersey, including creating a stand-alone Health Care and Government Fraud Unit, which handles both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the Office has recovered more than $500 million in health care fraud and government fraud settlements, judgments, fines, restitution, and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
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Defense counsel: John N. Nassikas Esq., Washington, D.C.
1 The original Megace® OS product was sold by Bristol Myers Squibb (“BMS”) from approximately 1993 until 2001. Since on or about July 25, 2001, the FDA approved five different generic versions of BMS’s Megace® OS product. As used herein, the term “Megace® ® OS” refers not only to BMS’s branded Megace® OS product, but also to the five generic versions approved by the FDA.Par Pharmaceutical Information
Par Pharmaceutical Plea AgreementPaige, Texas, Man Pleads Guilty to Making A False Claim to FEMA in Connection with Relief Efforts After Labor Day 2011 Wildfires in Central TexasRead the Press Release
On Monday, March 4, Manuel Hernandez, age 53, appeared in federal court and pleaded guilty to violating the federal False Claims Act, Title 18 U.S. Code Section 287, announced United States Attorney Robert Pitman and James K. Beauchamp, Regional Special Agent in Charge, Department of Homeland Security Office of Inspector General (DHS OIG). This is the latest development in one of four pending criminal cases alleging fraudulent applications for benefits to the Federal Emergency Management Agency (FEMA) in connection with relief efforts following the Labor Day 2011 wildfires in Bastrop and other parts of Central Texas.
In court, Hernandez admitted that he made a false claim for housing benefits to FEMA in the wake of the wildfires in September 2011. When Hernandez applied for the benefits, he told FEMA that his primary residence had burned in the fires. The Paige, Texas, home that Hernandez identified as his residence had actually burned, but Hernandez was not living there when the wildfires destroyed it and had not lived there for a number of months. Hernandez was living in Austin at the time. As a result of the false claim, Hernandez received over $30,000 from FEMA.
Conviction under the False Claims Act subjects Hernandez to a possible prison term of up to five years, repayment of the money he obtained illegally from FEMA, and a fine up to $250,000. Hernandez will be sentenced by United States District Judge Sam Sparks.
This case was investigated by DHS OIG agents. Assistant United States Attorney Alan Buie is prosecuting this case on behalf of the Government.Owner and Operator of Houston-Area Ambulance Service Convicted in Medicare Fraud SchemeRead the Press Release
The owner and operator of a Houston-area ambulance company was convicted by a federal jury in Houston of multiple counts of health care fraud for submitting false and fraudulent claims to Medicare, 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 and Special Agent in Charge Mike Fields of the U.S. Health and Human Services Office of Inspector General, Office of Investigations Houston Office announced today.
Olusola Elliott, 44, of Fort Bend County, Texas, was convicted late yesterday by a federal jury in U.S. District Court in the Southern District of Texas of one count of conspiracy to commit health care fraud and six counts of health care fraud.
Elliott was the owner and operator of Double Daniels LLC, a Texas entity that purportedly provided non-emergency ambulance services to Medicare beneficiaries in the Houston area. According to evidence presented at trial, Elliott and others conspired from April 2010 through December 2011 to unlawfully enrich themselves by submitting false and fraudulent claims to Medicare for ambulance services that were medically unnecessary and not provided. Evidence showed that Elliott falsified patient records in order to fraudulently bill Medicare on behalf of beneficiaries who were not in need of ambulance services.
During the course of the scheme, Elliott submitted and caused the submission of approximately $1,713,716 in fraudulent ambulance service claims to Medicare. According to court documents, Elliot transferred the proceeds of the fraud to himself and others after Medicare payments were sent to Double Daniels.
Elliot is scheduled for sentencing on May 31, 2013, in Houston. The six health care fraud counts and the conspiracy count each carry a maximum potential penalty of 10 years in prison and a $250,000 fine
This case is being prosecuted by Trial Attorneys Christopher Cestaro and Laura M.K. Cordova of the Criminal Division’s Fraud Section with assistance from former Special Assistant U.S. Attorney James S. Seaman. The case was investigated by the FBI, HHS-OIG and the Texas Attorney General Medicaid Fraud Control Unit. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.
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.
Owner of Colorado Car Dealership and Two Associates Arrested for Structuring and Money LaunderingRead the Press Release
DENVER – Raul Mendoza, age 48, Julia Castillo-Caraveo, age 28, both of Denver, Colorado, and Isidro Noe Mendoza-Ortiz, age 25, of Thornton, Colorado were arrested this morning for structuring and money laundering, the United States Attorney’s Office, IRS Criminal Investigation, the Drug Enforcement Agency (DEA) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) announced. All three defendants were named in a sealed indictment returned by a federal grand jury in Denver on February 14, 2013. The defendants appeared this afternoon before a U.S. Magistrate Judge, where they were advised of their rights, and the charges pending against them. All three are scheduled to appear in court on Friday, March 8, 2013 at 10:00 a.m. for a detention hearing and for arraignment.
This morning, in addition to the three arrests, agents and officers executed search warrants at a residence and an automobile business. Twenty automobiles with clear titles from the car dealership were seized.
According to the indictment, beginning in February 2008, and continuing through May 2012, Raul Mendoza (Mendoza) and Isidro Noe Mendoza-Ortiz (Mendoza-Ortiz), conspired with each other and others to structure currency (the depositing of just under $10,000) by depositing transactions with the intent to evade the reporting requirements as required by law. Daily cash receipts from the business, Chopeque Auto Sales, which is owned by Mendoza, were received at the business and structured into separate accounts at various banks to avoid the $10,000 reporting requirements. From February 26, 2008 through May 29, 2012, they structured over 700 deposit totaling $4,543,714.
As part of the conspiracy, on June 4, 2011, Mendoza, Mendoza-Ortiz and Julia Castillo-Caraveo (Castillo-Caraveo), knowingly caused Chopeque Auto Sales, a non-financial trade or business, to fail to file a Federal IRS Form 8300, a report required by law for all currency transactions over $10,000 received by a business. Particularly, they sold a 2004 Dodge Ram 1500 in exchange for $10,500 that was represented by undercover law enforcement officers to be the proceeds of a specified unlawful activity (drug distribution) and that they did so with the intent to conceal the nature of the proceeds of the specified unlawful activity and to avoid IRS Form 8300 reporting requirements. On March 8, 2012, Mendoza and Castillo-Caraveo followed a similar pattern and sold a 2008 Chevrolet Silverado 1500 in exchange for $20,900 that was represented by undercover law enforcement officers to be the proceeds of a specified unlawful activity (drug distribution); no IRS From 8300 was filed.
The defendants conspired to conceal the nature and source of the specified unlawful activity and attempted to launder drug proceeds. Particularly, Chopeque Auto Sales sold automobiles to known drug dealers, prepared false documents relating to the sale of vehicles to known drug dealers, structured currency deposits to conceal the source, falsely claimed to law enforcement authorities to be a valid lien holder of a seized vehicle in order to assist a known drug dealer in seeking the return of the vehicle. Upon conviction of the offenses above, they shall forfeit to the United States all of the defendants right, title and interest in all property, real or personal, involved in such offenses, or all proceeds traceable to such property, for which the defendants are joint and severally liable.
“Working with our federal, state and local law enforcement partners, we were able to uncover a sophisticated scheme where the defendants hid drug dealing proceeds by laundering the money through the sale of automobiles,” said U.S. Attorney John Walsh.
“I applaud the fine work of the investigators and prosecutors who used very innovative techniques to shut down this financial conspiracy facilitating illicit drug trafficking organizations,” said DEA Denver Field Division Special Agent in Charge Barbra M. Roach.
“Helping drug dealers launder drug money is unacceptable and illegal. IRS CI will work with our law enforcement partners to ensure those who do are brought to justice,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
“Drug smugglers use various creative means to launder and conceal their illegal drug profits,” said Kumar C. Kibble, special agent in charge of HSI Denver. “HSI and our law enforcement counterparts were able to pool our law enforcement authorities and expertise to identify and investigate the significant structured deposits made under the guise of a legitimate car dealership.”
Mendoza was charged with three counts of structuring and three counts of money laundering. Castillo-Caraveo was charged with two counts of structuring and three counts of money laundering. Mendoza-Ortiz was charged with two counts of structuring and two counts of money laundering. If convicted, each count of structuring and money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $500,000.
This case was investigated by agents with IRS-Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA) and the Department of Homeland Security. In addition, Denver Police Department, Commerce City Police Department, Thornton Police Department, and Department of Revenue – Auto Industry Division assisted in the execution of the warrants.
The case is being prosecuted by Assistant U.S. Attorney Jim Boma. The asset forfeiture is being handled by Assistant U.S. Attorney Tonya Andrews.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Owner of Colorado Car Dealership and Two Associates Arrested for Structuring and Money LaunderingRead the Press Release
DENVER – Raul Mendoza, age 48, Julia Castillo-Caraveo, age 28, both of Denver, Colorado, and Isidro Noe Mendoza-Ortiz, age 25, of Thornton, Colorado were arrested this morning for structuring and money laundering, the United States Attorney’s Office, IRS Criminal Investigation, the Drug Enforcement Agency (DEA) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) announced. All three defendants were named in a sealed indictment returned by a federal grand jury in Denver on February 14, 2013. The defendants appeared this afternoon before a U.S. Magistrate Judge, where they were advised of their rights, and the charges pending against them. All three are scheduled to appear in court on Friday, March 8, 2013 at 10:00 a.m. for a detention hearing and for arraignment.
This morning, in addition to the three arrests, agents and officers executed search warrants at a residence and an automobile business. Twenty automobiles with clear titles from the car dealership were seized.
According to the indictment, beginning in February 2008, and continuing through May 2012, Raul Mendoza (Mendoza) and Isidro Noe Mendoza-Ortiz (Mendoza-Ortiz), conspired with each other and others to structure currency (the depositing of just under $10,000) by depositing transactions with the intent to evade the reporting requirements as required by law. Daily cash receipts from the business, Chopeque Auto Sales, which is owned by Mendoza, were received at the business and structured into separate accounts at various banks to avoid the $10,000 reporting requirements. From February 26, 2008 through May 29, 2012, they structured over 700 deposit totaling $4,543,714.
As part of the conspiracy, on June 4, 2011, Mendoza, Mendoza-Ortiz and Julia Castillo-Caraveo (Castillo-Caraveo), knowingly caused Chopeque Auto Sales, a non-financial trade or business, to fail to file a Federal IRS Form 8300, a report required by law for all currency transactions over $10,000 received by a business. Particularly, they sold a 2004 Dodge Ram 1500 in exchange for $10,500 that was represented by undercover law enforcement officers to be the proceeds of a specified unlawful activity (drug distribution) and that they did so with the intent to conceal the nature of the proceeds of the specified unlawful activity and to avoid IRS Form 8300 reporting requirements. On March 8, 2012, Mendoza and Castillo-Caraveo followed a similar pattern and sold a 2008 Chevrolet Silverado 1500 in exchange for $20,900 that was represented by undercover law enforcement officers to be the proceeds of a specified unlawful activity (drug distribution); no IRS From 8300 was filed.
The defendants conspired to conceal the nature and source of the specified unlawful activity and attempted to launder drug proceeds. Particularly, Chopeque Auto Sales sold automobiles to known drug dealers, prepared false documents relating to the sale of vehicles to known drug dealers, structured currency deposits to conceal the source, falsely claimed to law enforcement authorities to be a valid lien holder of a seized vehicle in order to assist a known drug dealer in seeking the return of the vehicle. Upon conviction of the offenses above, they shall forfeit to the United States all of the defendants right, title and interest in all property, real or personal, involved in such offenses, or all proceeds traceable to such property, for which the defendants are joint and severally liable.
“Working with our federal, state and local law enforcement partners, we were able to uncover a sophisticated scheme where the defendants hid drug dealing proceeds by laundering the money through the sale of automobiles,” said U.S. Attorney John Walsh.
“I applaud the fine work of the investigators and prosecutors who used very innovative techniques to shut down this financial conspiracy facilitating illicit drug trafficking organizations,” said DEA Denver Field Division Special Agent in Charge Barbra M. Roach.
“Helping drug dealers launder drug money is unacceptable and illegal. IRS CI will work with our law enforcement partners to ensure those who do are brought to justice,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
“Drug smugglers use various creative means to launder and conceal their illegal drug profits,” said Kumar C. Kibble, special agent in charge of HSI Denver. “HSI and our law enforcement counterparts were able to pool our law enforcement authorities and expertise to identify and investigate the significant structured deposits made under the guise of a legitimate car dealership.”
Mendoza was charged with three counts of structuring and three counts of money laundering. Castillo-Caraveo was charged with two counts of structuring and three counts of money laundering. Mendoza-Ortiz was charged with two counts of structuring and two counts of money laundering. If convicted, each count of structuring and money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $500,000.
This case was investigated by agents with IRS-Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA) and the Department of Homeland Security. In addition, Denver Police Department, Commerce City Police Department, Thornton Police Department, and Department of Revenue – Auto Industry Division assisted in the execution of the warrants.
The case is being prosecuted by Assistant U.S. Attorney Jim Boma. The asset forfeiture is being handled by Assistant U.S. Attorney Tonya Andrews.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Ottawa Woman Sentenced to 25 Years for Running Prescription Drug Trafficking RingRead the Press Release
KANSAS CITY, KAN. – An Ottawa, Kan., woman has been sentenced to 25 years in federal prison for running a prescription drug trafficking ring tied to the death of a man who died from taking a mixture of prescription drugs, U.S. Attorney Barry Grissom said today.
Connie Edwards, 61, Ottawa, Kan., pleaded guilty to one count of conspiracy to possess with intent to distribute prescription drugs. In her plea, she admitted that from Nov. 1, 2007, to Feb. 28, 2012, she conspired with others to distribute oxycodone, hydrocodone, methadone, morphine and other prescription drugs in Ottawa.
An investigation began early in 2010 when the Franklin County Drug Enforcement Unit received information that people working for Edwards were distributing prescription drugs in Ottawa. Sources told investigators Edwards rented to people who paid her in prescription pills and she accepted stolen property in payment for pills.On May 10, 2009, a victim who bought drugs from the Edwards' organization, was found unconscious in the living room of his mother's home. He was taken to a hospital and pronounced dead. An autopsy revealed that he died from taking a toxic combination of methadone, hydrocodone and carisoprodol.
Investigators learned that the afternoon before the victim died he went to Edwards' house, where he bought a white powder he was told was methamphetamine. In fact, one of Edwards' associates produced the powder by crushing prescription pills including hydrocodone, methadone and carisoprodol. Edwards was present when the victim bought the drugs, but the associate handled the sale. Later that evening, the victim purchased prescription pills from Edwards, who delivered the pills to the victim in a van outside the Hidden Meadows apartment complex in Ottawa. The victim then took the pills and injected the substance he believed was methamphetamine, creating a toxic combination that caused his death.
Investigators documented numerous incidents in which Edwards and her associates sold prescription drugs.
Co-defendants include: Brittany Edwards, 20, Ottawa, Kan., who is set for sentencing May 6. Shirley Price, 45, Ottawa, Kan., who is set for sentencing June 10.
Dustin Price, 24, Ottawa, Kan., who is set for sentencing May 6.
Joel Keith Price, 55, Ottawa, Kan., who is set for sentencing May 6.
Morgan Price, 22, Ottawa, Kan., who was sentenced to 5 years probation with 6 months in the halfway house.
Brandi Bivens, 31, Ottawa, Kan., who is set for sentencing July 22.
Angela Mitchell, 36, Ottawa, Kan., who is set for sentencing April 29.
Tamara Ledom, 37, Ottawa, Kan., who is set for sentencing May 28.
Florence Edwards, 39, Ottawa, Kan., who is set for sentencing April 15.Grissom commended the Franklin County Drug Task Force, the Drug Enforcement Administration, the Ottawa Police Department, the Franklin County Sheriff’s Office, the Internal Revenue Service, the Kansas Bureau of Investigation and Assistant U.S. Attorney Sheri McCracken for their work on the case.
Oregon Resident Charged with Conspiring to Provide Material Support to Terrorists in Connection with Suicide Bombing of ISI Headquarters in PakistanRead the Press Release
PORTLAND, Ore. – Reaz Qadir Khan, 48, a naturalized U.S. citizen residing in Portland, has been arrested on charges of conspiracy to provide material support to terrorists for the assistance he allegedly provided to an individual who participated in a May 27, 2009, suicide bomb attack at the headquarters of Pakistan’s intelligence service in Lahore, Pakistan, that killed approximately 30 individuals and injured 300 more.
The arrest was announced by Amanda Marshall, U.S. Attorney for the District of Oregon; Lisa Monaco, Assistant Attorney General for National Security; and Gregory Fowler, Special Agent in Charge of the FBI Portland Division.
FBI agents arrested Khan this morning without incident at his residence in Portland. He made his initial appearance today before Magistrate Paul Papak in federal court in Portland, where the charges against him were unsealed and defendant was detained, pending a detention hearing tomorrow, Wednesday, March 6, 2010 at 1:30 p.m. Khan is charged by a federal indictment with one count of conspiracy to provide material support to terrorists. If convicted, he faces a potential maximum sentence of life in prison.
“The indictment unsealed today set forth how Mr. Khan allegedly supported a terrorist who killed dozens of innocent people in Lahore Pakistan,” said U.S. Attorney Amanda Marshall. “The events of May 27, 2009 remind us that terrorism is not defined by Muslims targeting non-Muslims, but is defined by violent extremists targeting anyone they perceive as a threat to their oppressive agenda without regard for the religion, race, or nationality of their victims. We will find and prosecute those who use this country as a base to fund and support terrorists. Dismantling terrorist networks continues to be a top priority for this office and the Department of Justice.”
“Those who provide material support to terrorists are just as responsible for the deaths and destruction that follow as those who commit the violent acts,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “The FBI will continue to focus on cutting off the flow of funds that help terrorists train, travel and launch their attacks.”
According to the indictment, from Dec. 14, 2005 through June 2, 2009, Khan conspired with an individual named Ali Jaleel and others to provide material support and resources, and to conceal the nature of such support and resources, knowing they would be used in a conspiracy to kill, maim or kidnap persons abroad. Jaleel was a Maldivian national who resided outside the United States. Jaleel died while participating in the suicide attack on the Inter-Services Intelligence (ISI) headquarters in Lahore on May 27, 2009, according to the indictment.
As part of the conspiracy, Khan allegedly used email and intermediaries to provide advice and financial assistance to Jaleel and his family. Khan allegedly provided Jaleel with advice to help him in his efforts to travel undetected from the Maldives to commit violent jihad and used coded language when communicating with Jaleel to avoid detection. Further, Khan allegedly provided financial assistance so Jaleel could attend a training camp to prepare for an attack such as that carried out in Lahore on May 27, 2009. Khan also allegedly provided financial support and advice to Jaleel’s family while Jaleel traveled to Pakistan and after he died.
In April 2006, Jaleel and a small group from the Maldives attempted to travel to Pakistan to train for violent jihad in Iraq or Afghanistan, but they were detained and returned to the Maldives, where Jaleel was placed under house arrest, according to the indictment.
In 2008, Jaleel allegedly emailed Khan about his plans to travel to Pakistan again, and in response, Khan provided advice to Jaleel on how to avoid detection and offered to arrange for money to be sent to Jaleel. In October 2008, Jaleel allegedly told Khan he needed “$2500 for everything” and asked that Khan take care of his family and educate his children. Khan promised to help Jaleel’s family. Khan later instructed Jaleel to pick up the money he needed to enter the training camp from an individual in Karachi, Pakistan. To arrange for this transfer, Khan allegedly contacted an individual in Los Angeles who he knew could quickly arrange for Jaleel to pick up money in Pakistan. According to indictment, the individual in Los Angeles then arranged for the money to be available for pick-up from the individual in Karachi.
On Nov. 5, 2008, Jaleel wrote Khan that he was about to gain admission to the training camp and that he would have left-over money from the funds that Khan had provided him. Khan allegedly advised Jaleel to keep the extra funds so they could be sent to Jaleel’s two wives in the Maldives and instructed Jaleel to leave a closed envelop with the individual in Karachi.
According to the indictment, on May 27, 2009, Jaleel and two others conducted the suicide attack at the ISI Headquarters in Lahore. The blast resulted in the death of approximately 30 people and injured 300 more. In a video released by the media outlet of al-Qaeda shortly after the attack, Jaleel allegedly made a statement taking responsibility for the attack and he was shown preparing for the attack at a training camp in what is believed to be the Federally Administered Tribal Area of Pakistan. In June 2009, Khan allegedly wired approximately $750 from a store in Oregon to one of Jaleel’s wives in the Maldives.
This case was investigated by the FBI. The prosecution is being handled by Assistant U.S. Attorney Ethan D. Knight from the U.S. Attorney’s Office for the District of Oregon. Trial Attorney David P. Cora, from the Counterterrorism Section of the Justice Department’s National Security Division, is assisting.
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
For additional information, the attached indictment can be found at this link.
Oregon Man Sentenced for Growing Marijuana in N. IdahoRead the Press Release
Four Co-Conspirators Sentenced Earlier
COEUR D’ALENE – Justin Edward Egner, 36, of Springfield, Oregon, the fifth defendant in a multi-state marijuana trafficking operation, was sentenced today in United States District Court in Coeur d’Alene, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced Egner to 40 months in prison followed by four years of supervised release for conspiracy to manufacture and possess with intent to distribute marijuana. Judge Lodge also ordered Egner to forfeit $75,000 and a number of vehicles to the United States. He pleaded guilty to the charges in September 2012.
Court documents and statements made during the plea hearing indicate that between January 2008 and July 2010, Egner conspired with others, including co-defendants, to grow marijuana on property owned by Robert Baucum in Naples, Idaho. The conspiracy involved at least 100 kilograms of marijuana. During the investigation, law enforcement officers seized marijuana, marijuana growing equipment, vehicles, over $50,000 in currency and precious metals, and over $1 million in real estate.
In November 2012, four co-conspirators were sentenced to serve federal prison sentences. Robert Wayne Baucum, 57, of Scio, Oregon, was sentenced to 70 months; Charles Albert Goodenough, 41, of Houston, Alaska, to 37 months; Ronald Clifford Underwood, 55 of Albany, Oregon, to 34 months; and Raymond Earl Hogle, 51, of Albany, Oregon, to 21 months. The men were also ordered to serve between three and five years of supervised release following their prison terms.
The case was investigated by the Idaho State Police, Boundary County Sheriff’s Office, the Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation, Linn County Sheriff’s Office (Oregon), and the Alaska State Troopers.
The investigation was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.
Navajo Man Sentenced to 166 Months Imprisonment for Assault with A FirearmRead the Press Release
PHOENIX – On March 4, 2013, Harry McCabe, Sr., 52, of Woodsprings, Ariz. was sentenced by U.S. District Judge James A. Teilborg to a cumulative sentence of 166 months imprisonment. McCabe was found guilty by a federal jury on Nov. 29, 2012, of one count of assault with a dangerous weapon, one count of assault resulting in serious bodily injury, and two counts of discharging a firearm during a crime of violence
The evidence at trial showed that the defendant assaulted the victim by firing a .22 caliber rifle at him, causing a bullet wound to the head resulting in serious bodily injury.
At sentencing, Judge Teilborg sentenced McCabe to the mandatory minimum sentence of 120 months imprisonment for discharging a firearm during a crime of violence and an additional 46 months imprisonment for the assault charges, ordering the 46 month sentence to run consecutive to the defendant’s 120 month sentence of imprisonment.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigation. The prosecution was handled by Cassie Bray Woo, Brian E. Kasprzyk, and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8135-PCT-JAT
RELEASE NUMBER: 2013-020_ McCabeFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Massachusetts Man Sentenced in Manhattan Federal Court for Hiding Millions from Irs in Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JACQUES WAJSFELNER was sentenced today to six months of probation, including three months of home confinement, for willfully failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) with the IRS, regarding Swiss bank accounts that he maintained and controlled. WAJSFELNER used the services of Beda Singenberger, a Swiss financial adviser who was charged in July 2011 with conspiring with various U.S. taxpayers and others to hide more than $184 million offshore at various Swiss banks. WAJSFELNER also had undeclared accounts at Wegelin & Co., a Swiss bank sentenced yesterday for conspiring to evade taxes, file false tax returns, and defraud the IRS in the Southern District of New York, and Credit Suisse. As part of his resolution of the criminal charges against him, WAJSFELNER agreed to pay a civil penalty of over $2.8 million, representing 50% of the high value of the accounts that he maintained. Today’s sentence was imposed by U.S. District Judge Naomi Reice Buchwald.
According to the Information filed in Manhattan federal court, other court documents, and statements made in connection with WAJSFELNER’s guilty plea and sentencing:
Under federal law, when filing Individual Income Tax Returns, form 1040, U.S. taxpayers are required to report their worldwide income. Taxpayers who have a financial interest in, or signature or other authority over, a bank account in a foreign country with an aggregate value of more than $10,000 at any time during a particular year, are required to file FBARs every year for each qualifying account. The FBAR requires the disclosure of the financial institution where the account is held, the type of account, the account number, and the maximum value of the account during the calendar year for which it is being filed.
Beginning in 1995, WAJSFELNER held an account in his own name at Credit Suisse, a Swiss bank with its headquarters in Zurich, Switzerland. In June 2006, with the assistance of Singenberger, WAJSFELNER opened an undeclared account at Credit Suisse in the name of a sham corporation formed under the laws of Hong Kong, Ample Lion Ltd. (“Ample Lion”). By opening the Ample Lion account at Credit Suisse, WAJSFELNER was attempting to obscure his ownership of the assets in the account from the IRS. As of December 31, 2007, WAJSFELNER’s account at Credit Suisse in the name of Ample Lion held assets valued at nearly $5.7 million.
In the fall of 2008, Credit Suisse began the process of exiting its U.S. cross-border banking business. In order to continue hiding money in Switzerland, in June 2009, WAJSFELNER opened an undeclared account at Wegelin. With Singenberger’s assistance, WAJSFELNER then transferred the assets from his account at Credit Suisse into his account at Wegelin. As of December 31, 2010, WAJSFELNER’s account at Wegelin held assets valued at nearly $5.5 million.
For each of the calendar years from 1995 through 2011, WAJSFELNER failed to file an FBAR with the IRS disclosing his authority over his accounts at the Credit Suisse and at Wegelin. His tax returns for the years 2005 through 2011 were similarly false in omitting the information about his Swiss bank accounts. WAJSFELNER’s sentencing is the latest in a series of prosecutions in the Southern District of New York of U.S. taxpayers who held undeclared accounts in Switzerland at UBS, Wegelin, Credit Suisse, and/or other Swiss banks, and who failed to make timely voluntary disclosures to the IRS as part of the IRS’s Voluntary Disclosure Program.
In addition to his probation, WAJSFELNER, 83, of Weston, Massachusetts, was also ordered to pay back taxes of $419,940 and a fine of $20,000.
The case against Singenberger is pending. The charge and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
Wegelin was sentenced yesterday and ordered to pay approximately $58 million to the United States. Together with the April 2012 forfeiture of more than $16.2 million from Wegelin’s U.S. correspondent bank account, this amounts to a total recovery to the United States of approximately $74 million.
Mr. Bharara praised the outstanding efforts of IRS-CI in the investigation, which he noted is ongoing. Mr. Bharara also thanked U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Daniel W. Levy, Jason H. Cowley, and David B. Massey are in charge of the prosecution.
Manhattan U.S. Attorney Sues Park Avenue Medical Associates for Medicare Billing FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a lawsuit against PARK AVENUE MEDICAL ASSOCIATES (“PAMA”) and PARK AVENUE MEDICAL ASSOCIATES, P.C. (“PAMA PC”), and related entities, alleging that they billed Medicare for services purportedly provided to elderly, mentally ill patients that were not medically necessary, were not documented in the medical record, and/or failed otherwise to comply with Medicare rules and regulations. The Government’s Complaint alleges that, as a consequence of the conduct of PAMA and PAMA PC, the entity that allegedly submitted claims to Medicare on behalf of PAMA, Medicare paid the defendants for thousands of claims that were not eligible for payment, resulting in over $1 million in damages.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Park Avenue Medical Associates inundated Medicare with bogus claims, including bills for unnecessary psychiatric services for vulnerable elderly patients, who did not have the ability to benefit from the services. We will continue our efforts to protect this taxpayer-funded program and the people who rely on it for care from fraud and abuse.”
According to the Complaint filed today in Manhattan federal court:
PAMA directly employs physicians, nurses, and other medical professionals who provide services to elderly patients at hospitals, including inpatient psychiatric facilities, nursing homes, assisted living facilities, and other types of long-term care facilities. The patients and residents at these facilities suffer from various chronic health conditions, including Alzheimer’s disease, dementia, schizophrenia, psychosis, depression, and anxiety. The doctors and nurses employed by PAMA receive a salary from PAMA, which contracts with the facilities. In addition to their regular salaries, psychiatrists and psychologists employed by PAMA receive bonuses based on how many services they provide and the level of reimbursement they generate for PAMA from government and other insurance providers, including Medicare.
Medicare prohibits payment for services that are not reasonable and necessary for the diagnosis or treatment of an illness or injury. Medicare also prohibits payment for any claim without adequate documentation substantiating the reasonableness and necessity of the services provided. In particular, Medicare does not cover psychotherapy services rendered to patients with Alzheimer’s disease or dementia unless the patient’s dementia is mild, the patient has the capacity to recall what occurred at the therapy from one session to the next, and that capacity is documented in the patient’s record. Psychotherapy services are not covered when dementia has produced a severe enough cognitive deficit to prevent them from being effective. In addition, Medicare provides that psychiatric diagnostic examinations are generally covered only once for each episode of illness or suspected illness in a patient and must be medically necessary.
In violation of Medicare policies, as well as its own policies, PAMA provided psychotherapy to patients who lacked the capacity to benefit from it due to severe dementia. In addition, PAMA PC billed for psychiatric evaluations that were duplicative, failed to comply with Medicare rules, and reflected a lack of coordination of care both among PAMA’s own psychiatrists, psychologists and nurses, and between PAMA’s employees and staff at the facilities with which PAMA contracted to provide services. Moreover, PAMA PC billed for services for which it lacked any documentation whatsoever. PAMA PC billed Medicare for a far larger number of services per psychiatrist and psychologist during the period 2001 through 2012 than any other provider with a similar patient population in the New York area.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Heidi A. Wendel and Mara E. Trager are in charge of the case.
U.S. v. Park Ave Medical Associates, et al. Complaint
Man Indicted in International Drug Conspiracy Extradited to Boston from ColombiaRead the Press Release
BOSTON - A man from Colombia, charged in an international cocaine conspiracy in 2010, made his initial appearance in federal court today after he was ordered to be extradited to the United States from Colombia.
Roberto Mendez-Hurtado, 49, was originally charged in 2010 with conspiracy to import and distribute and manufacture five kilograms or more of cocaine for unlawful importation to the United States.
According to the indictment, Mendez-Hurtado conspired between June 2008 and April 2010 to import from Columbia and Venezuela at least five kilograms of cocaine. Mendez-Hurtado is alleged to have manufactured and distributed at least five kilograms of cocaine knowingly and with intent that such substance would be unlawfully imported into the United States.
Pursuant to a request for extradition from the U.S. government, in August 2011, law enforcement authorities arrested him in Colombia. In February 2012, the Supreme Court from Colombia ordered his extradition to U.S. District Court in Boston to face charges.
The maximum sentence under the statute is life in prison to be followed by five years of supervised release and a fine of up to $4 million. Mendez-Hurtado also faces similar charges in the Southern District of Florida and the District of Puerto Rico.
United States Attorney Carmen M. Ortiz and John J. Arvanitis, Special Agent in Charge of U.S. Drug Enforcement Administration, New England Division, made the announcement today. The case was investigated by the DEA's New England Field Division with assistance from DEA's Bogota Country Office, the Colombian National Police, and Dutch law enforcement authorities in Aruba from Recherche Samenwerkings Team (RST). The United States Marshals Service provided assistance with the apprehension of Mendez-Hurtado.
The case is being prosecuted by Assistant U.S. Attorneys Neil J. Gallagher, Jr. of Ortiz's Organized Crime Drug Enforcement Task Force Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Landlord Ordered to Pay Back Servicemember for Illegally Penalizing Him for Moving to New PostRead the Press Release
ALEXANDRIA, Va. – A federal judge has ordered the landlord of a rental property in Manassas, Va., to return money owed a servicemember after he was penalized for breaking the rental lease because the military ordered him to move.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Thomas E. Perez, Assistant Attorney General for the Civil Rights Division, made the announcement after a memorandum opinion was issued by United States District Judge Claude M. Hilton.
“Our military men and women put their lives on the line for us, and we must protect them both overseas and here at home,” said U.S. Attorney MacBride.
“Service members should never be penalized financially for their commitment to serve and protect our country,” said Assistant Attorney General Perez. “The Department of Justice will continue to use tools like the Servicemember Civil Relief Act to protect the rights of service members.”
According to court records, Occoquan Forest Drive LLC and its registered agent, John Williams, of Alexandria, Va., leased a residential property in Manassas, Va., to a servicemember tenant and his wife. After receiving permanent change of station orders to move to Nevada, the tenants properly terminated the lease pursuant to the Servicemember Civil Relief Act (SCRA), which protects the rights of servicemembers while on active duty in the military by suspending or modifying certain civil obligations.
The United States brought suit against Occoquan and Williams under the SCRA for refusing to return the tenants’ security deposit and charging early termination fees. In a memorandum opinion issued on Feb. 15, 2013, Judge Hilton found both Occoquan and Williams liable under the statute, ordered them to return the tenants’ security deposit, and enjoined them from imposing early termination charges.
This case was investigated by the Pentagon Army and Air Force Legal Assistance Office and the Civil Rights Division of the Department of Justice, Housing and Civil Enforcement Section. Assistant United States Attorney Stephen J. Obermeier litigated the case on behalf of the United States. The case name is United States v. Williams, 1:12cv551.
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.Laguna Pueblo Man Pleads Guilty to Assaulting a Federally Deputized Tribal Police OfficerRead the Press Release
ALBUQUERQUE – This afternoon, Phillip Derek Lorenzo, 24, a member and resident of Laguna Pueblo, pled guilty to an indictment charging him with assaulting a federal officer. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Lorenzo was indicted on Sept. 25, 2012, on a charge of assaulting a federal officer on Nov. 11, 2011, in Cibola County, N.M. According to the indictment, on Nov. 11, 2011, Lorenzo repeatedly struck and kicked an officer of the Laguna Pueblo Tribal Police Department who holds a Special Law Enforcement Commission from the BIA when the officer responded to a call at a residence located in Laguna Pueblo.
During today’s proceedings, Lorenzo pled guilty to the indictment and admitted assaulting a federal officer and employee who was engaged in the performance of his official duty without cause or excuse. More specifically, Lorenzo admitted punching and kicking the federal officer during a struggle.
At sentencing, Lorenzo faces a maximum penalty of eight years in prison. His sentencing date has yet to be scheduled.
The case was investigated by the BIA, Office of Justice Services, Southern Pueblos Agency, with assistance from the Laguna Pueblo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Justice Department Settles with the University of Medicine and Dentistry of New Jersey over Discrimination Against People with Hepatitis BRead the Press Release
The Justice Department announced today that it has reached a settlement with the University of Medicine and Dentistry of New Jersey School (UMDNJ) under the Americans with Disabilities Act (ADA). The settlement resolves complaints that the UMDNJ School of Medicine and the UMDNJ School of Osteopathic Medicine unlawfully excluded applicants because they have hepatitis B. This is the first ADA settlement ever reached by the Justice Department on behalf of people with hepatitis B.
In 2011, the two applicants in this matter applied and were accepted to the UMDNJ School of Osteopathic Medicine, and one of them was also accepted to the UMDNJ School of Medicine. The schools later revoked the acceptances when the schools learned that the applicants have hepatitis B. The Justice Department determined that the schools had no lawful basis for excluding the applicants, especially because students at the schools are not even required to perform invasive surgical procedures, and that the exclusion of the applicants contradicts the Centers for Disease Control and Prevention’s (CDC) updated guidance on this issue.
According to the CDC’s July 2012 “Updated Recommendations for Preventing Transmission and Medical Management of Hepatitis B Virus (HBV) – Infected Health Care Workers and Students,” no transmission of Hepatitis B has been reported in the United States from primary care providers, clinicians, medical or dental students, residents, nurses, or other health care providers to patients since 1991.
“Excluding people with disabilities from higher education based on unfounded fears or incorrect scientific information is unacceptable,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “We applaud the UMDNJ for working cooperatively with the Justice Department to resolve these matters in a fair manner.”
“It is especially important that a public institution of higher learning – especially one with a mission to prepare future generations of medical professionals – strictly follow the laws Congress has enacted to protect from discrimination those people who have health issues,” said U.S. Attorney for the District of New Jersey Paul Fishman. “The remedies to which the school has agreed should ensure this does not happen again.”
Under the settlement agreement, the UMDNJ must adopta disability rights policy that is based on the CDC’s Hepatitis B recommendations, permit the applicants to enroll in the schools, provide ADA training to their employees and provide the applicants a total of $75,000 in compensation and tuition credits.
Both of the applicants in this matter come from the Asian American Pacific Islander community. The CDC reports that Asian American Pacific Islanders (AAPIs) make up less than 5 percent of the total population in the United States, but account for more than 50 percent of Americans living with chronic Hepatitis B. Nearly 70 percent of AAPIs living in the United States were born, or have parents who were born, in countries where hepatitis B is common. Most AAPIs with Hepatitis B contracted Hepatitis B during childbirth . The Civil Rights Division is committed to ensuring that this community is not subjected to discrimination because of disability.
Title II of the ADA prohibits state and local government entities, like the UMDNJ, from discriminating against individuals with disabilities in programs, services, and activities. State and local governments must also make reasonable modifications in policies, practices, and procedures when the modifications are necessary to avoid discrimination on the basis of disability, unless those modifications would result in a fundamental alteration.
More information about the Civil Rights Division and the laws it enforces is available at the website www.justice.gov/crt. More information about the ADA and today’s agreement with UMDNJ can be accessed at the ADA website at www.ada.gov or by calling the toll-free ADA information line at 800-514-0301 or 800-514-0383 (TTY).
Jackson Man Sentenced on Drug ChargesRead the Press Release
Jackson, Miss - Warwick Demuntrel Mikell, 34, of Jackson, was sentenced to 74 months in federal prison for possession with intent to distribute more than 500 grams of cocaine, U.S. Attorney Gregory K. Davis announced.
Warwick was indicted following an extensive investigation targeting illegal narcotics distribution in the City of Jackson, dubbed “Operation Paperchase”, conducted by the U.S. Drug Enforcement Administration’s High Intensity Drug Trafficking Area Group and the Federal Bureau of Investigation with assistance from the U.S. Marshals Service, Mississippi Bureau of Narcotics, Jackson Police Department and Hinds County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Erin Chalk.###
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International Heating and Cooling Product Distributor Pleads Guilty and Sentenced for Illegal Purchase and Sale of Smuggled Ozone-Depleting Refrigerant GasRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, United States Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, and Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announced today that defendant, FSD Group, LLC a Florida corporation with its headquarters in Miami, was convicted and sentenced in connection with the illegal receipt, purchase, and sale of ozone-depleting refrigerant gas that had been smuggled into the United States contrary to the Clean Air Act, in violation of Title 18, United States Code, Section 545.
FSD Group pled guilty to a one count Information filed against it before United States District Court Judge Joan Lenard, for knowingly receiving, buying, selling and facilitating the transportation, concealment, and sale of approximately 65,592 kilograms of the ozone-depleting substance hydrochlorofluorocarbon-22 (“HCFC-22") which had been illegally smuggled into the United States contrary to the Clean Air Act. HCFC-22 is a widely used refrigerant for residential heat pump and air-conditioning systems.
Immediately following the guilty plea, FSD Group was sentenced to three years of probation and ordered to pay a $100,000.00 criminal fine. In addition, as a special condition of probation, FSD Group was ordered to implement and enforce a comprehensive Environmental Compliance Plan. FSD Group was also ordered to forfeit to the United States $180,051.00, which represents proceeds received as a result of the crime and pay owed duties to the United States Customs and Border Protection for incorrectly classified merchandise.
Federal law prohibits dealing in merchandise that is imported contrary to law. The Federal Clean Air Act regulates air pollutants including ozone depleting substances such as HCFC-22. The Clean Air Act and its implementing regulations established a schedule to phase out the production and importation of ozone-depleting substances beginning in 2002, with a complete ban starting in 2030. To meet its obligations under an international treaty to reduce its consumption of ozone-depleting substances, the United States issued baseline allowances for the production and importation of HCFC-22 to individuals and companies. In order to legally import HCFC-22, you must hold an unexpended consumption allowance.
According to court records, FSD Group which also operates under the name Saez Distributors, is an international supplier and distributor of merchandise for heating, ventilation, air conditioning, and refrigerator systems, equipment and products including ozone-depleting substances. In business for thirty five years, and itself, an original allowance holder under the Clean Air Act, FSD had extensive knowledge regarding the Act’s rules and prohibition against purchasing illegally imported HCFC-22. During the course of the illegal conduct, in addition to its legal imports, FSD Group made additional purchases of HCFC-22 from various importers, knowing they did not hold the required unexpended consumption allowances, totaling approximately 65,592 kilograms, of restricted HCFC-22, with a fair market value of approximately $733,096.00.
United States Attorney Wifredo A. Ferrer stated, “The regulatory program here is intended to protect us all from the harmful effects associated with depletion of the earth’s ozone layer. By aggressively supporting the investigative agencies in their efforts to enforce federal laws that seek to protect our environment, we are both meeting our country’s commitment and responsibility to our future generations and the international community.”
EPA SAC Maureen O’Mara said, “HCFC’s deplete the stratospheric ozone layer, which is critical to life on earth and protecting people from the harmful effects of ultraviolet radiation, including cancer. EPA will continue working with ICE and other agencies to combat such criminal conduct, preventing these dangerous smuggling and distribution operations, and curbing the world-wide threat of stratospheric ozone depletion. This plea and sentence, the first of its kind against an allowance holder, sends a strong message that those who jeopardize public safety in order to make illegal profits will be vigorously prosecuted and punished.”
“EPA realizes that as HCFCs are phased out domestically, smuggling is likely to rise, jeopardizing human health and our atmosphere. This is why EPA is working harder than ever, in cooperation with our federal partners, to seek justice against those that not only illegally import R-22, but also knowingly purchase contraband material,” said Drusilla Hufford, Director of EPA’s Stratospheric Protection Division.
“The unlawful importation of goods poses a significant threat to the national security, public safety, and in this particular case, the illegal importation posed a global hazard to our environment,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami. “We will continue to vigorously investigate those who are determined to line their pockets with the proceeds of crimes against the environment.”
This matter and others involving the smuggling and distribution of ozone-depleting substances are being investigated through a multi-agency initiative known as Operation Catch-22. Operation Catch-22 has, to date, including the successful conviction of nearly a dozen individuals and corporations at every level of the refrigerant gas smuggling and distribution chain.
Mr. Ferrer commended the investigative efforts of the EPA, ICE-HSI, the Florida Department of Environmental Protection, Criminal Investigation Bureau, and the Miami-Dade Police Department. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Indictment Charges Two Former Maryland Correctional Officers in Relation to an Assault of an InmateRead the Press Release
A third indictment, this time charging two former officers at Roxbury Correctional Institution (RCI), was returned today, in relation to assaults of an inmate, identified as K.D., and subsequent obstruction of justice, announced Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. On Feb. 26, 2013, a grand jury returned two indictments charging a total of nine current or former RCI officers with two subsequent assaults of the same inmate, K.D.
In the indictment returned today, former RCI Lieutenant Robert Harvey and former Correctional Officer Keith Morris are charged with a civil rights offense for their alleged assault on K.D., an inmate, during the 3 p.m. to 11 p.m. shift on March 8, 2013. Harvey also faces an obstruction of justice charge for allegedly filing a false report related to the assault.
Harvey faces a maximum sentence of 30 years in prison, and Morris faces a maximum term of 10 years in prison.
These indictments bring the total number of individuals charged in relation to this case to 14. Including today’s charges, seven current or former RCI officers have been charged with a civil rights offense for their alleged involvement in a series of assaults on K.D. Two former RCI officers, Dustin Norris and Philip Mayo, recently entered guilty pleas acknowledging that they conspired with other officers to assault K.D. Ten current or former RCI officers have been charged with conspiracy or obstruction offenses for their alleged efforts to cover up staff involvement in the assaults on K.D. Ryan Lohr, a former RCI officer, previously entered a guilty plea admitting that he conspired with other officers to obstruct the investigation into an assault on K.D.
These three cases, which are ongoing, are being investigated by the Frederick Resident Agency of the FBI, and are being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Justice Department’s Civil Rights Division, with the assistance of P. Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
Government Consents to New Trial in United States v. Robert “Red” Stevens and Arthur Gilmore, Jr.Read the Press Release
MONROE, La.: The U.S. Attorney’s Office has informed United States District Judge Donald E. Walter that it consents to a new trial in United States v. Robert “Red” Stevens and Arthur Gilmore, Jr., two former Monroe City Councilmen indicted for racketeering and extortion. Thereafter, the Court continued the evidentiary hearing scheduled for March 4, 2013, and entered an order today scheduling a new trial for April 22, 2013, in Shreveport. Stevens and Gilmore had sought a new trial based on allegations of misconduct by the former lead Assistant United States Attorney and FBI agent.
U.S. Attorney Stephanie Finley stated: “While I do not believe that the jury’s guilty verdict in this case was the result of any misconduct, I believe that it is important that the public have confidence in the integrity of the prosecutions brought by the United States. Therefore, I directed the prosecutors in this case to consent to a new trial even though the trial had been completed and the case was on appeal. We chose to disclose the allegations of misconduct to the Court and to all defense attorneys because we want every prosecution to be based on fairness.
The allegations at issue first came to light in June 2012 when defense counsel in the case of United States v. Royce Toney, Michael Davis, made allegations of misconduct on the part of Assistant United States Attorney Mignonne Griffing. My office reviewed the allegations, and pursuant to established protocol, an investigation was opened by the Department of Justice. In the meantime, in order to ensure the integrity of the prosecution of former Sheriff Toney, I removed AUSA Griffing from the case and assigned a different prosecutor in my office to take it over. Based on the totality of the evidence and the testimony of the witnesses, the prosecution was ultimately resolved with a guilty plea to nine misdemeanor counts of unauthorized access of a protected computer. This resolution was based on the most readily provable offenses, not because of any allegations of misconduct. The plea agreement addressed Sheriff Toney’s criminal conduct and was in the interest of justice. The Government believed then, as it does now, that this was the fairest resolution to this case in light of all of the evidence.
On August 2, 2012, Royce Toney appeared before U.S. District Judge Robert G. James and knowingly and voluntarily pled guilty with advice of his counsel.
Our goal in every case that we prosecute is to ensure the integrity of the prosecution. My office, along with the appropriate offices at the Department of Justice, will continue to investigate any and all allegations of misconduct to determine whether or not there is any merit to them, and at the same time will take all necessary steps to preserve the integrity of all prosecutions brought by the United States.”
During the trial set for April 22, 2013, Mr. Stevens and Mr. Gilmore will face the same charges as returned by the Grand Jury in June of 2010. Specifically, each defendant was named in a two-count indictment charging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1962(c), and the Hobbs Act, 18 U.S.C. § 1951.
If convicted, both men face a maximum sentence on Count 1, RICO, of 20 years in prison, a $250,000 fine, or both. The Hobbs Act contained in Count 2 is punishable by a maximum sentence of 20 years in prison, a $250,000 fine, or both.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
Garland, Texas, Tax Preparer Sentenced to More Than Three Years in Federal Prison for Submitting Hundreds of Tax Returns That Falsely Claimed First Time Homebuyer CreditRead the Press Release
Instant Tax Service Manager Also Ordered to Pay $1,665,000 in Restitution
DALLAS — Cora Latrice Hopkins was sentenced yesterday by U.S. District Judge David C. Godbey to 37 months in federal prison and ordered to pay $1,665,000 in restitution, following her guilty plea in November 2012 to filing a false claim with an agency of the United States. Hopkins, who according to the indictment filed in the case is a Garland, Texas, resident, has been in custody since her arrest in August 2012 by special agents with Internal Revenue Service Criminal Investigation (IRS CI). Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, from December 2008 through March 2009, Hopkins was employed as the manager of the Instant Tax Service (ITS) office located on South Buckner Boulevard in Dallas. In this capacity, she was responsible for preparing and filing tax returns for ITS clients; she filed the returns electronically with the IRS, using an identification number assigned to the ITS office on South Buckner.
The factual resume further states that between January 1, 2009, and March 12, 2009, Hopkins prepared and filed 403 tax returns, for tax year 2008, with the IRS. Of these 403 tax returns, 316 claimed the First Time Homebuyer Credit that was available to qualified individuals who purchased a home as a primary residence in 2008. Hopkins, however, knew that the taxpayer named in each of those returns did not qualify for, or had not provided the information necessary to qualify for, the First Time Homebuyer Credit. Hopkins admitted that she knew that the false credits claimed on the tax returns would reduce the taxpayer’s tax liability or increase the amount of any refund due to the taxpayers.
The investigation was conducted by IRS CI; Assistant U.S. Attorney Paul Yanowitch was in charge of the prosecution.
Four Topeka Man Charged in RobberiesRead the Press Release
TOPEKA, KAN. – Four Topeka men have been charged in a series of commercial robberies, U.S. Attorney Barry Grissom said today.
Charged are: Johnnie Lee McCall, 28, Topeka, Kan., who is charged with three counts of commercial robbery and two counts of brandishing a firearm during robberies.
Jordan Christopher Lucas, 26, Topeka, Kan., who is charged with two counts of commercial robbery and one count of brandishing a firearm during a robbery.
Alonzo Nathan Lax, 26, Topeka, Kan., who is charged with two counts of robbery and two counts of brandishing a firearm during robberies.
David Pierre Wigfall, 22, Topeka, Kan., who is charged with one count of robbery and one count of brandishing a firearm during a robbery.The indictment alleges that: On Feb. 12, McCall and Lucas robbed the Dollar General store at 1001 SW Fairlawn Road in Topeka.
On Feb. 27, McCall, Lucas and Lax robbed the Baskin Robbins at 4400 SW 21st Street in Topeka. They allegedly brandished firearms during the robbery.
On March 1, McCall, Lax and Wigfall robbed Little Caesars at 2620 SW Sixth, Suite B, in Topeka. They allegedly brandished firearms during the robberies.Upon conviction, the crimes carry the following penalties: Commercial robbery: A maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
Brandishing a firearm during a crime of violence: A penalty of not less than seven years and not more than life and a fine to $250,000 pm each count.The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Former Watertown Police Officer Charged with Passing False Prescriptions Using Another’s IdentityRead the Press Release
BOSTON - A Framingham man was charged in federal court in connection to crimes committed while in his official capacity as a Watertown police officer.
Joseph Deignan, 57, was charged with unlawful possession of a controlled substance by fraud and fraud in connection with identification documents.
According to the complaint affidavit, Deignan, a former Watertown Police Officer who retired in February 2012, used the identity of another person to obtain oxycodone and other controlled substances by forging prescriptions in the other person’s name. Deignan is alleged to have stolen the driver’s license of the person in 2010, while he was working as the traffic supervisor for the Watertown Police Department.
The maximum sentence under the identity theft count is 15 years in prison, followed by three years of supervised release and a $250,000 fine. Deignan was arrested this morning and is scheduled for his initial appearance at 3:15 p.m.
United States Attorney Carmen M. Ortiz and John Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement today. The DEA was provided assistance from the Marlborough Police Department. The Watertown Police Department has been cooperative during the investigation. The case is being prosecuted by Assistant U.S. Attorney Eugenia Carris of Ortiz’s Public Corruption Unit.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.