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Friday 18 January 2013
Eugene Thomas Crawford, Jr., Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 18, 2013, before Chief U.S. District Judge Richard F. Cebull, EUGENE THOMAS CRAWFORD, a 46-year-old resident of Glendive, appeared for sentencing. CRAWFORD was sentenced to a term of:
Prison: 180 months
Special Assessment: $100
Supervised Release: life
CRAWFORD was sentenced in connection with his guilty plea to receipt of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
In 2010, a computer, later found to belong to CRAWFORD, was found to have child pornography images and videos available via peer-to-peer file sharing programs. A search warrant was issued for CRAWFORD's residence in Glendive in January 2011, and various items of computer equipment was seized. When questioned, CRAWFORD admitted that he used the peer-to-peer file sharing program Limewire to receive and possess videos and images of child pornography.
A subsequent forensic examination revealed hundreds of images and movies of child pornography that CRAWFORD had received via the Internet during 2009 and continuing until the equipment was seized. CRAWFORD possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence. CRAWFORD had thousands of images and 125 videos of child pornography.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CRAWFORD will likely serve all of the time imposed by the court. In the federal system, CRAWFORD does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Montana Division of Criminal Investigation and the Internet Crimes Against Children (ICAC) Task Force.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Environment and Natural Resources Division Issues<br /> 2012 Accomplishments ReportRead the Press Release
Assistant Attorney General Ignacia S. Moreno announced today the publication of the Environment and Natural Resources Division’s (ENRD) Fiscal Year 2012 Accomplishments Report. The full report, which details the division’s work across the nation during FY2012, is posted at www.justice.gov/enrd/Current_topics.html.
Outstanding Enforcement Results
Through its civil and criminal environmental enforcement actions, ENRD achieved dramatic reductions in emissions and discharges of harmful pollutants to America’s air, water and land. In 2012, the division secured more than $397 million in civil and stipulated penalties, cost recoveries, natural resource damages and other civil monetary relief, including almost $133 million recovered for the Superfund. The division obtained over $6.9 billion in corrective measures through court orders and settlements and concluded 47 criminal cases against 83 defendants, resulting in nearly 21 years in confinement and over $38 million in criminal fines, restitution, community service funds and special assessments. These outstanding results continue the division’s success in obtaining record-setting results over the past four years. During this time, the division has also advanced environmental justice, incorporating this important priority in a meaningful and enduring way into the work of the division.
“The extraordinary work reflected in this report is due to the dedication, expertise and professionalism of the division staff,” said Assistant Attorney General Moreno. “I am extremely proud of our achievements over the past year. They have resulted in immeasurable benefits for human health and the environment for all of the American people, who should all enjoy the benefits of a fair and even-handed application of environmental and natural resources laws. Together with our colleagues at client agencies and state, local and tribal governments, the Department of Justice will continue to vigorously enforce the federal civil and criminal environmental and natural resources laws that protect our air, land and water from pollution and that preserve our natural resources for the use and enjoyment of generations to come.”
Holding Those Responsible for the Deepwater Horizon Oil Spill Accountable
ENRD’s top civil and criminal enforcement priority is to bring to justice those responsible for the April 20, 2010 Deepwater Horizon explosion, fire and oil spill. Under a consent decree lodged on Jan. 3, 2013, Transocean pleaded guilty to violating the Clean Water Act and agreed to pay $1.4 billion in civil and criminal fines and penalties, including a record-setting $1 billion to resolve Clean Water Act civil claims. On Feb. 17, 2012, the Department of Justice announced an agreement with MOEX, which will pay $70 million in civil penalties to resolve alleged violations of the Clean Water Act and will spend at least $20 million to facilitate land acquisition projects in several Gulf States that will preserve and protect in perpetuity habitat and resources important to water quality.
Landmark Decisions Reducing Greenhouse Gases
ENRD’s responsibilities include defending lawsuits brought against the federal government challenging agency actions and programs. In a landmark example of its defensive work, the division, with agency counsel, successfully defended rulemakings under the Clean Air Act that reduce the emission of greenhouse gases that contribute to global warming. In June 2012, in one of the most significant environmental regulatory decisions of the past decade, a unanimous panel of the D.C. Circuit in Coalition for Responsible Regulation v. EPA upheld EPA’s greenhouse gas-related regulatory actions against all challenges.
Successfully Defending the Country’s Energy AgendaThe Obama Administration’s energy policy includes the responsible development of additional fossil fuels and renewable energy sources. In 2012, the division successfully defended challenges to permits and rights-of-way put in place to promote the development of renewable energy projects on western public lands. ENRD is defending more than 20 cases involving solar, wind and transmission projects located in California, Oregon, Tennessee, Delaware, Massachusetts and Vermont, and has successfully defeated motions for injunctive relief in California, Tennessee and Delaware to allow responsible energy development to proceed consistent with the permitting requirements of the issuing agencies.
Promoting National Security and Military PreparednessIncreasingly, the division is responsible for defending agency actions that support the national security of the United States. For example, in fiscal year 2012, the division successfully defended against challenges to critical Department of Defense training programs that ensure military preparedness, various agency projects to secure the nation’s borders and waters, and U.S. development of all forms of domestic energy to reduce our dependence on foreign oil.
Historic Results Protecting Tribal Rights and Resources and Addressing Tribal Claims
In 2012, the division achieved historic results for Indian tribes and resolved decades-long and costly litigation over tribal claims regarding the government’s management of trust funds and trust resources. In the past year, the United States settled cases with 62 tribes, agreeing to pay about $1.25 billion in total to resolve the tribes’ claims. The division will continue, through its cases, to vigilantly protect tribal sovereignty, safeguard tribal lands and resources, and honor tribal treaty rights.
One of the Best Places to Work in the Federal Government
At the same time that the division has achieved outstanding results in its cases, in each of the last three years, the Partnership for the Public Service (PPS) has ranked ENRD as one of the “Best Places to Work in the Federal Government.” ENRD’s overall ranking has been in the top five for each of the past three years, including two #1 rankings. The division has also continued to make great strides in promoting diversity and a better quality of life for all its employees.
Enumclaw Financial Advisor Sentenced to Prison for Stealing Millions from ClientsRead the Press Release
An Enumclaw financial advisor whose crimes were uncovered when he tried to collect a half million dollar death benefit on a client who was still living, was sentenced today to seven years in prison, three years of supervised release, and restitution in the amount of $5,705,023.24, announced U.S. Attorney Jenny A. Durkan. AARON TRAVIS BEAIRD, 39, was arrested in July 2012, after he faked his suicide, traveled to Scotland for a week, and then returned to Sea-Tac airport where he was taken into federal custody for investigation of mail fraud and wire fraud. BEAIRD pleaded guilty in August 2012. At sentencing U.S. District Judge Ricardo S. Martinez said, “By stealing the money you took from the victims, you stole their hopes and dreams, but most importantly, you stole their trust.”
“These crimes were a betrayal of trust,” said U.S. Attorney Durkan. “Mr. Beaird’s friends, relatives and members of his church thought he was safeguarding their families’ future. Instead, he used their money to live well, turning their dreams into nightmares.”
According to records filed in the case, for about ten years BEAIRD held himself out as a financial advisor to friends and family and members of his church, the Church of Jesus Christ of Latter-Day Saints. BEAIRD was trusted as a leader of the church. But instead of investing conservatively in annuities and life insurance products, BEAIRD engaged in a scheme to defraud investors by falsely representing those annuity products and life insurance policies and in some cases appropriating annuity payments and policy premiums directly to his personal use. BEAIRD created false account statements that he provided to his clients making them believe their funds were safely invested and would be available when they needed them.
In the fall of 2011, BEAIRD took $500,000 from a client’s investment account without authorization, and used some of it to purchase a life insurance policy on the client. In June 2012 BEAIRD filed to receive a death benefit on the policy even though the insured was still living. The insurance company confronted BEAIRD and he disappeared from Enumclaw. Shortly after his disappearance, his car was found near Deception Pass on Whidbey Island with a suicide note inside. He had also mailed letters to several clients, confessing his fraud and advising them of his intent to take his own life. Further investigation revealed BEAIRD had taken a taxi to Sea-Tac and flown to Scotland. He returned a week later and was arrested. The loss amount of his scheme is estimated at $5.7 million.
Victim statements in the case describe how BEAIRD’s theft has robbed people of not only their life’s savings, but their trust in others. Some write about having to live in a travel trailer because they have no funds to finish building their home or have no money for their retirement or children’s education. “The sense of betrayal and distrust fostered by Mr. Beaird’s actions cannot be ignored. This pervasive reality is matched by the deep financial losses incurred with little regard for what those losses meant to the victims. In most instances, each victim’s financial well-being has been irreparably damaged. Life savings were wiped out. For some, the hope of a secure retirement has been replaced with despair and uncertainty, with little time to replace stolen funds. Taken together, the emotional and financial damages inflicted by Mr. Beaird through his fraudulent scheme are overwhelming,’ prosecutors wrote in their sentencing memo.
The case was investigated by the Federal Bureau of Investigation with assistance from the Washington State Office of the Insurance Commissioner and the City of Enumclaw Police Department.
The case was prosecuted by Assistant United States Attorney Jim Oesterle.
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
An East St. Louis man, Charles L. Thomas, 25, was sentenced today in United States District Court, East St. Louis, for Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Thomas was sentenced to 18 months in prison, ordered to pay a $100 special assessment and to serve a term of 2 years of supervised release following imprisonment. There is no parole in the federal system.
Court documents establish that on February 21, 2012, in St Clair County, an East St. Louis Police Officer initiated a traffic stop on a vehicle driven by Charles L. Thomas. During the traffic stop, the officer observed a black handgun in the split of the front bench seat. The firearm was determined to be a Hi Point, Model C9, 9mm semi-automatic pistol which contained 8 live rounds of 9 mm ammunition. Thomas agreed to an interview with law enforcement at which time he admitted that he was in possession of the firearm. Thomas stated that he had the gun for protection because one week prior he had been in an altercation with some individuals at a convenience store and that he and his friends intended to go back to that same convenience store on that night.
Court documents further establish that prior to February 21, 2012, Thomas had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
The investigation was conducted by the WAVE Task Force. The WAVE Task Force focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities.
The case was prosecuted by Assistant United States Attorney Ali Summers.
Duson Woman Sentenced to Two Years in Prison for Social Security FraudRead the Press Release
Defendant Ordered to Pay $269,282.00 in Restitution
LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Hazel A. Broussard, 52, of Duson, La., was sentenced this week to two years in prison followed by three years of supervised release for mail fraud. U.S. District Judge Richard T. Haik also ordered the defendant to pay $269,282 in restitution to the United States.
Broussard entered a plea of guilty on July 18, 2012, to one count of mail fraud. According to documents filed with the court, Broussard received Social Security Administration (SSA) benefits over a 27 year period to which she was not entitled. The SSA benefits were intended for her uncle, whom she lived with in Lafayette during the last few weeks of his life. After her uncle’s death, Broussard failed to inform the SSA, causing the SSA to keep sending the checks. As a result of her scheme, Broussard fraudulently obtained $269,282 from the SSA.
United States Attorney Finley stated, “Abuse of Social Security disability benefits hurts those who are truly in need of assistance because they are injured or are no longer able to work. This type of fraud is unacceptable, and the U.S. Attorney’s Office, along with the Office of Inspector General, is committed to aggressively pursuing criminals who steal from the Social Security Administration.”
The case was investigated by Special Agent Dirk Bergeron of the Office of Inspector General, Social Security Administration, Baton Rouge Resident Agency, and was prosecuted by Assistant United States Attorney Joseph T. Mickel.
Drug Trafficker who Tried to Hide Behind ‘Medical Marijuana Shield’ Sentenced to PrisonRead the Press Release
The owner of a medical marijuana dispensary that billed itself as a ‘cooperative’ when it really was just a for profit drug dealing enterprise, was sentenced today to six years in prison and four years of supervised release for conspiracy to distribute marijuana and conspiracy to commit money laundering. CRAIG DOUGLAS DIEFFENBACH, 61, an owner of Seattle Cannabis Cooperative with locations in the Rainier Valley and Greenwood, pleaded guilty in August 2012. His co-defendant, and co-owner, Jing Jing Mo, 31, will be sentenced next month. At today’s sentencing Chief U.S. District Judge Marsha J. Pechman said she rejected the suggestion that he did this to help people, rather she said he saw selling marijuana as a business opportunity.
“We have made clear that truly sick people and their caregivers will not be targets of our enforcement efforts. This defendant was neither,” said U.S. Attorney Jenny A. Durkan. “A green cross in the front window does not grant a license to sell pounds of drugs out the back door.”
According to records filed in the case, DIEFFENBACH admits operating the marijuana stores for profit, selling pound quantities of marijuana to people who presented no medical authorization card. In her plea agreement, Mo admitted offering to sell 25 pounds of marijuana for distribution across the country. The couple also admitted laundering funds from the sale of marijuana to pay to modify homes for marijuana production. The pair were tied in to other drug traffickers including one distributing substantial amounts of ecstacy."Marijuana traffickers continue to have a stranglehold on this state,” said Drug Enforcement Administration Special Agent in Charge Matthew G. Barnes. "DEA will continue to do what it can to loosen their grip.”
The case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Vince Lombardi.
District Woman Sentenced to 17 Years in Prison in August 2011 Murder of Boyfriend-Stabbing Followed Argument at Wedding Reception-Read the Press Release
WASHINGTON– Dominique Bassil, 26, of Washington, D.C., was sentenced today to 17 years of incarceration on a charge of second-degree murder while armed in the stabbing and killing of her boyfriend, U.S. Attorney Ronald C. Machen Jr. announced.
Bassil was found guilty of the charge in November 2012 by a jury in the Superior Court of the District of Columbia. She was sentenced by the Honorable Robert E. Morin. Upon completion of her prison term, Bassil will be placed on five years of supervised release.
According to evidence at trial, on Aug. 12, 2011, Bassil and her boyfriend, Vance Harris II, 28, attended an evening wedding and reception in Mitchellville, Md. During the evening, Bassil complained that Mr. Harris, a member of the wedding party, was not spending enough time with her. At the end of the reception, a witness observed Bassil berate Mr. Harris and push him in his face as he talked to others. Another witness observed Bassil strike Mr. Harris as the witness suggested to him that he get a hotel room instead of going home with the defendant.
After Bassil and Mr. Harris left the reception, police officers in Capitol Heights, Md. encountered them on the side of a road. Bassil complained that she was tired of arguing, fussing, and fighting with Mr. Harris. Police observed that Mr. Harris’s tuxedo had been torn. Bassil, however, had no injuries and her clothes were intact. Police permitted the two to travel home after neither complained of an assault.
On Aug. 13, 2011, just before 2:30 a.m., Bassil and Mr. Harris returned to Bassil’s apartment in the 3900 block of 13th Street SE. About 20 minutes later, surveillance footage depicted Bassil exiting her building wearing only a pink night cap and panties while armed with a knife. The footage also captured her disposing of the knife in a trash can before going to the security guard booth to report that she stabbed her boyfriend because he was beating her.
Seconds after Bassil had exited the building, surveillance footage captured Mr. Harris briefly exiting the front door of the building holding a stab wound to his arm that was dripping blood. Mr. Harris returned to the apartment on the third floor of the building, only to discover that he was locked out. After knocking on a neighbor’s door for help, Mr. Harris fell unconscious in the hallway, where he eventually died from his injuries. A medical examiner found that Mr. Harris had a stab wound to the abdomen that penetrated the liver and two stab wounds to the right arm that partially severed an artery.
Upon the defendant’s arrest, in a statement to police, she alleged that Mr. Harris had pulled her hair, pushed her to the ground, and dragged her. The police investigation revealed that Bassil had no visible injuries, although she complained of back pain. According to medical personnel, no tenderness was found in the area where she complained of pain.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers and others who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Investigator Nelson Rhone, Jr.; Litigation Technology Specialists Anisha Bhatia, Joshua Ellen, William Henderson, Paul Howell, and Kimberly Smith; Victim Witness Advocate Marcia Rinker, Victim Witness Specialist David Foster, Paralegal Specialists Kelly Blakeney and Kwasi Fields; Intern Jason Amirhadji, and Assistant U.S. Attorneys Charles Cobb, who investigated the case, and Michelle D. Jackson, who prosecuted the case.
13-015District Man Sentenced to 19-Year Prison Term for Sexually Assaulting Woman During Burglary of Store-DNA Database Helped Link Defendant to the Crime-Read the Press Release
WASHINGTON – Darius Smith, 21, of Washington, D.C., was sentenced today to 19 years in prison for sexually assaulting a woman during a burglary at a store in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Smith pled guilty in October 2012, in the Superior Court of the District of Columbia, to one count of first-degree sexual abuse. He was sentenced by the Honorable Robert E. Morin. Following his prison term, Smith will be placed on five years of supervised release and he will be required to register as a sex offender for the remainder of his life.
During the plea proceedings, Smith admitted that late in the evening on Oct. 8, 2010, he and three other people broke into a variety store in the 1300 block of Kenilworth Avenue NE. The victim, an employee who had just finished taking inventory, was still inside the closed store. The assailants demanded money and threatened the victim. After they had looted the store, all four left. Smith, however, returned within minutes and sexually assaulted the victim.
The victim was rushed to Washington Hospital Center, and a sexual assault examination was conducted. Swabs taken from the victim during the examination were sent to the Metropolitan Police Department (MPD) Crime Laboratory for DNA testing. A male DNA profile found on the swabs was entered into the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. Smith was identified as a suspect through a CODIS search and DNA “cold hit.” His DNA profile had been loaded into the CODIS database following his 2010 conviction for attempted second-degree burglary, also committed in Northeast Washington.
In announcing the sentence, U.S. Attorney Machen acknowledged the work of the MPD, especially the detective who led the investigation of the case. U.S. Attorney Machen also praised the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key and Jason Manuel and Legal Assistant Tanisha Nelson. Finally, he commended the work of Assistant U.S. Attorneys Heide L. Herrmann and Amy H. Zubrensky, who investigated and prosecuted the case.
13-016District Man Found Guilty of Manslaughter While Armed and Other Charges in Stabbing in Southeast Washington-Attack Followed Argument About the Victim's Dog-Read the Press Release
WASHINGTON – Ellsworth Colbert, 57, was found guilty by a jury today of manslaughter while armed and other charges stemming from a slaying in Southeast Washington during an argument over the victim’s dog, U.S. Attorney Ronald C. Machen Jr. announced.
Colbert, of Washington, D.C., also was found guilty of assault with a dangerous weapon and carrying a dangerous weapon. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Herbert B. Dixon, Jr. scheduled sentencing for March 19, 2013. Colbert faces a maximum sentence of 45 years for the crimes.
According to the evidence at trial, Colbert and the victim, Robert L. Wright, 37, became embroiled in an argument on the morning of March 4, 2012, in front of Colbert’s house in the 3500 block of Pope Street SE, in the Penn-Branch neighborhood. The trouble began after Mr. Wright and a friend walked their dog on Colbert’s property. Colbert became enraged and brandished a knife and a walking stick.
The altercation moved up the street to the house where the dog was kept, located in the 3600 block of Highwood Drive. During the course of the argument, Colbert lunged at Mr. Wright and cut him in the neck with his knife. Mr. Wright then retrieved a nearby shovel, and the two continued their altercation in the middle of the street. During the course of the fracas, Colbert tackled Mr. Wright to the pavement, causing him to lose possession of the shovel. Colbert then stabbed Mr. Wright in the back, chest and abdomen resulting in his death.
In announcing today’s verdict, U.S. Attorney Machen commended those who worked on the case for the Metropolitan Police Department (MPD), including detectives, mobile crime technicians, and others. He acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick, San Lane, Phil Aronson, Kwasi Fields and Sharon Newman, Litigation Support Services Specialists Ron Royal and Josh Ellen, and Victim Advocate Tamara Ince.
Finally, U.S. Attorney Machen commended the work of Assistant U.S. Attorneys Robert J. Feitel and Edward A. O’Connell, who prosecuted the case at trial.
13-017Disability Doctor Peter J. Ajemian Pleads Guilty in Manhattan Federal Court for His Role in LIRR Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PETER J. AJEMIAN, a Board-certified orthopedist, pled guilty to charges related to the alleged massive fraud scheme in which Long Island Railroad (“LIRR”) workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. As described in the Complaint, between the late 1990s and 2008, AJEMIAN recommended that at least 734 retiring LIRR employees receive disability benefits, and was responsible for treating nearly half of all LIRR employees who retired and received disability benefits in one four-year period. AJEMIAN pled guilty before U.S. District Judge Victor Marrero. Three additional LIRR retirees, KARL BRITTEL, GREGORY BIANCHINI, and BRIAN DELGIORNO, also pled guilty to charges related to their participation in the LIRR fraud scheme this week. BRITTEL pled guilty before Judge Marrero today; BIANCHINI pled guilty before U.S. Magistrate Judge Kevin Nathaniel Fox on January 16, 2013; and DELGIORNO pled guilty before Judge Fox on January 17, 2013. Of the 32 defendants charged, 21 have now pled guilty.
Manhattan U.S. Attorney Preet Bharara stated: “Dr. Ajemian used his medical license to facilitate a massive fraud at the LIRR. By running the functional equivalent of a 'disability mill' and fraudulently qualifying hundreds of LIRR patients for undeserved disability benefits, Dr. Ajemian enriched himself and debased his degree. Twenty-one defendants have now pled guilty for their roles in this breathtaking and brazen fraud that cost the Railroad Retirement Board untold millions of dollars.”
According to the Complaint, the Superseding Indictments, the Superseding Informations, and statements made in other public filings and in court:
The LIRR Disability Fraud Scheme
The Railroad Retirement Board (“RRB”) is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50 – the age of eligibility has since changed to 55 – if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service), they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under oath in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 1995 through 2011, more than 75% of LIRR employees stopped working and began receiving RRB disability benefits, whereas during this same period, only 25% of retiring Metro-North employees stopped working and began receiving RRB disability benefits.
PETER J. AJEMIAN is a Board-certified orthopedist who was instrumental in helping LIRR retirees receive disability benefits to which they were not entitled. As set forth in the Complaint, between the late 1990s and 2008, AJEMIAN declared over 94% of the LIRR employees he saw as patients disabled. As part of the massive fraud scheme, AJEMIAN prepared fraudulent medical narratives for LIRR retirees well before the employees’ planned retirement dates so that the narratives could be submitted to the RRB upon retirement. These medical narratives were completely fabricated or grossly exaggerated so that AJEMIAN could recommend a set of restrictions that, if legitimate, would render it impossible for the LIRR employees to continue performing their jobs. Many of the purportedly “objective” findings from the tests he conducted showed nothing more than normal degenerative changes one would expect to see in patients within the relevant age bracket.
AJEMIAN received approximately $800 to $1,200, often in cash, for these fraudulent assessments and narratives, as well as millions of dollars in health insurance payments for unnecessary medical treatments and fees for preparing fraudulent medical support for the claimed disabilities. Of approximately 453 LIRR annuitants studied, AJEMIAN received approximately $2.5 million in related payments from patients and insurance companies. In turn, those patients received over $90 million in RRB disability benefit payments.
As alleged in the Complaint, between 1998 and 2008, AJEMIAN recommended that at least 734 LIRR employees receive these disability benefits. During one four-year period, August 2004 through August 2008, AJEMIAN was the treating physician for nearly half of all LIRR retirees younger than 65 years old who filed for RRB disability benefits.
AJEMIAN, 63, of Oyster Bay Cove, New York pled guilty to one count of conspiracy to commit mail fraud, wire fraud, and health care fraud, as well as one count of health care fraud, and faces a maximum of 30 years in prison. He has also agreed to forfeit $116.5 million and pay $116.5 million in restitution. He will be sentenced by Judge Marrero on May 24, 2013, at 2:00 p.m.
BRITTEL, 62, of Atlantic City, New Jersey, pled guilty to conspiracy to commit mail fraud, wire fraud and health care fraud; conspiracy to defraud the United States; health care fraud; mail fraud; wire fraud; and perjury, and he faces a maximum of 80 years in prison. BIANCHINI, 59, of Key Largo, Florida, pled guilty to conspiracy to commit mail fraud, wire fraud and health care fraud; conspiracy to defraud the United States; health care fraud; mail fraud; and wire fraud, and he faces a maximum of 75 years in prison. DELGIORNO, 54, of Howard Beach, New York, pled guilty to conspiracy to commit mail fraud, wire fraud and health care fraud; conspiracy to defraud the United States; false claims; health care fraud; mail fraud; wire fraud; and perjury, and he faces a maximum of 85 years in prison. They will be sentenced by Judge Marrero on July 19, May 16, and May 17, 2013, respectively.
Thirty-two people have been charged in connection with the LIRR disability fraud scheme, 21 of whom have now pled guilty. The charges against the remaining defendants are merely allegations and they are all presumed innocent unless and until proven guilty.
Mr. Bharara praised the RRB-OIG, the FBI, and the MTA-OIG for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
The Office’s Complex Frauds Unit is handling the case. Assistant U.S. Attorneys Justin Weddle, Daniel Tehrani, Nicole Friedlander, and Danya Perry are in charge of the prosecution.
U.S. v. Ajemian, et al. S1 Indictment
U.S. v. Ajemian, et al. S9 IndictmentDetroit Man Sentenced to 57 Months for Using Counterfeit Credit Cards at Northern Kentucky Retail StoresRead the Press Release
COVINGTON, KY - A Michigan man was sentenced today to 57 months in federal prison for using other people’s credit card information to make purchases at retail stores in Campbell, Kenton and Boone Counties.
U.S. District Judge David L. Bunning sentenced 34-year-old Tyhkan S. Brunson for the use of unauthorized credit cards and aggravated identity theft. Judge Bunning also ordered Brunson and his co-defendants to jointly pay $5,478.76 in restitution.
Court documents state that in May of 2012, Brunson and three co-defendants possessed counterfeit credit cards bearing legitimate card numbers. In one day’s time they drove from Michigan to Kentucky and used the fraudulent cards to purchase thousands of dollars in gift cards and other merchandise from Home Depot, Meijer and Wal-Mart.
According to Brunson’s plea agreement, 32 people had their identities stolen and three banks lost money.
When Cold Spring Police in Campbell County conducted a vehicle stop of the defendants, officers located 26 counterfeit credit cards. They also found a co-defendant trying to destroy merchandise receipts by chewing them.
Brunson’s co-defendants previously received the following prison sentences: John Cotton, 44 months; Adam Sanford, 24 months, and Brittany Bell, 42 months.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Mark A. Porter, Special Agent in Charge, U.S. Secret Service jointly announced the pleas.
The investigation preceding the indictment was conducted by the U.S. Secret Service. The indictment was presented to the grand jury by Assistant U.S. Attorney Laura K. Voorhees.
Dallas Criminal Defense Lawyer Pleads Guilty in Federal Court to Money LaunderingRead the Press Release
Defendant Knowingly Laundered Tens of Thousands of Dollars in Supposed Drug Trafficking Proceeds
DALLAS --- Patrick Robert Simon, 34, of Dallas, pleaded guilty on Wednesday before U.S. District Judge Jorge Solis to a criminal Information charging one count of money laundering, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Simon, a criminal defense lawyer, faces a maximum penalty of 20 years in federal prison and a $500,000 fine. His sentencing hearing has been set for May 1, 2013.
According to documents filed in the case, in Fall 2009, Simon met with a confidential informant (CI) to discuss the CI’s desire to put aside proceeds from his drug trafficking activities for his family’s use during his upcoming imprisonment for that drug trafficking. Simon discussed a few ways that he could create an apparently legitimate income stream for the CI’s family, and the fees that he would charge for doing it.
After numerous meetings and continued negotiations, on March 16, 2012, the CI met with Simon at Simon’s law office to transfer the cash. Simon explained the scheme. Simon stated that the CI was going to hire Simon’s firm to handle the appeal of his drug trafficking conviction. Simon stated that he would use his attorney trust fund to write a check every month to the CI’s designee. Simon explained that because it was a legal transaction, he would not have to report it. The three of them agreed that the checks would be written for $7,500, unless a different amount was specified later. The CI gave $110,000 cash to Simon. Simon had a money counter on hand for the purpose of counting the cash. Simon accepted the cash and attempted to use the money counter, but the machine malfunctioned and Simon counted the cash by hand.
During the time that Simon was counting the cash, the three repeatedly discussed the CI’s participation in the drug trade and that the money being counted was from his drug trafficking activities. Simon also instructed the CI on a code to use in all future communications to discuss the scheme. For example, Simon instructed them that if they needed Simon to increase the amount of the monthly check, they were to call Simon and tell him that a specified college football team was playing well, and Simon would increase the monthly check by $1,000 (to $8,500). Similarly, if they wanted to decrease the amount of the monthly check, they were to call Simon and tell him that a specified professional football team was playing poorly, and Simon would decrease the monthly check by $1,000 (to $6,500). Since the cash delivery, and in execution of the money laundering scheme, Simon paid the CI’s designee on a monthly basis.
The case is being investigated by Internal Revenue Service Criminal Investigation. Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald is in charge of the prosecution.
Clarksville Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
James Robert Sanford, 53, of Clarksville, Tenn., pleaded guilty on January 14, 2013, to filing a false claim for a federal income tax refund, and to aiding and abetting in the filing of a false claim for a federal income tax refund, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
On November 30, 2011, Sanford was indicted by a federal grand jury in Nashville and charged with six counts of filing false tax returns. According to the indictment, Sanford prepared and filed 2006 and 2007 federal income tax returns for himself and his spouse, knowing that the returns were false, fictitious, and fraudulent. These returns claimed refunds of $5,774.00 and $4,276.00, respectively.
The indictment also alleged that Sanford prepared and filed false income tax returns for other individuals for calendar year 2006. These returns claimed refunds ranging from $3,490.00 to $7,128.00 and Sanford knew these returns were fraudulent as well.
Sanford will be sentenced before Chief Judge William J. Haynes, Jr. on April 8, 2013, and faces a maximum penalty of five years in prison and a $250,000 fine on each count.
This investigation was conducted by IRS-Criminal Investigation. Assistant U.S. Attorney Darryl Stewart represented the government.Career Criminal Sentenced for Possessing .38-caliber RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 25-year-old career criminal was sentenced for possessing a .38-caliber revolver. United States District Court Judge Ann D. Montgomery sentenced Lewis Pate, no known address, to 200 months in prison on one count of possession of a firearm by a career criminal. Pate was indicted on May 8, 2012, and was convicted on August 15, 2012.
The evidence presented at trial proved that on March 20, 2012, St. Paul police were called to the 980 block of Reaney Avenue at approximately 2:30 p.m., following a report of shots fired. Witnesses claimed three men had exchanged gunfire in a nearby alley. A police canine tracked the scent of one of the reported suspects to a house in the 970 block of Margaret Avenue. There, police found Pate inside. During the execution of a search warrant at the house, police also found a six-shot revolver with four live rounds. It was in the bathroom clothes hamper, wrapped in a towel.
Because he is a felon, Pate is prohibited under federal law from possessing a firearm at any time. His prior Ramsey County convictions include auto theft and fleeing a police officer in a motor vehicle (2007) and auto theft and fleeing a police officer in a motor vehicle (2008). Pate was also convicted in Hennepin County for third-degree burglary in 2008 and Dakota County for aggravated robbery in 2010.
Since those offenses constitute crimes of violence, Pate was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone convicted in federal court of being a felon in possession of a firearm if that person also has at least three prior state or federal convictions for crimes of violence or serious drug crimes.
This case was the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.CBP Officer Sentenced for Concealing Fugitive from Law EnforcementRead the Press Release
United States Attorney Laura E. Duffy announced that former Customs and Border Protection Officer Thomas P. Silva was sentenced today by United States District Judge Anthony J. Battaglia to serve eight months in custody after Silva pled guilty to concealing a person from arrest, in violation of Title 18, United States Code, Section 1071, and wire fraud, in violation of Title 18, United States Code, Section 1343. As part of the sentence, Judge Battaglia ordered Silva to forfeit over $16,000 in illegal proceeds from his criminal activity and pay $8, 129.37 in restitution to Farmers Insurance, the victim of his wire fraud scheme.
Silva previously admitted to concealing a wanted fugitive from arrest while on duty at the San Ysidro Port-of-Entry. In particular, Silva admitted allowing the fugitive to enter the United States from Mexico without inspection - despite verifying the fugitive's status using CBP's computer systems. Silva 2 further assisted the fugitive by purposefully entering inaccurate information related to the fugitive's car in CBP's computer system in an effort to help the fugitive elude arrest.
Silva also admitted in his plea agreement to engaging in a separate scheme to defraud Farmers Insurance of over $7,000 by falsely reporting that his Nissan Titan pickup truck had been stolen from a local San Diego community. Silva admitted, however, that he had in fact taken the truck to Mexico prior to reporting it stolen in furtherance of his fraudulent scheme. Thereafter, Silva filed the false claim with Farmers Insurance, which the insurance company then paid based on his misrepresentations.
In handing down the judgment, Judge Battaglia told Silva that his conduct was "an abomination" and that he had "brought shame" to the United States by carrying out these criminal activities while working as a CBP officer.
United States Attorney Duffy praised the members of the Border Corruption Task Force, a federal task force comprised of law enforcement officials from the Federal Bureau of Investigation, CBP-Internal Affairs, CBP-Field Operations, the Transportation Security Administration, and the Drug Enforcement Administration for their outstanding work to uncover Silva's criminal activity. Duffy added that her Office had a "zero tolerance" policy for government employees who thought they were above the laws that they were sworn to enforce.
DEFENDANT Criminal Case No. 12CR4050-AJB Thomas P. Silva SUMMARY OF CHARGES Count 1: Title 18, United States Code, Section 1343 B Wire Fraud
Count 2: Title 18, United States Code, Section 1071 B Concealing Person From Arrest INVESTIGATING AGENCIESFederal Bureau of Investigation
Transportation Security Administration
Customs and Border Protection
Drug Enforcement Administration*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
C. Ray Nagin, Former New Orleans Mayor, Indicted on Federal Bribery, Honest Services Wire Fraud, Money Laundering, Conspiracy, and Tax ChargesRead the Press Release
C. RAY NAGIN, 56, a resident of Frisco, Texas and formerly the Mayor of New Orleans, was charged in a 21-count indictment with bribery, honest service wire fraud, money laundering and conspiracy, and filing false tax returns, announced U.S. Attorney Dana J. Boente, FBI Special Agent-in-Charge Michael Anderson, and IRS Criminal Investigation Special Agent-in-Charge James Lee.
According to today’s federal grand jury indictment, between December 2004 and the present, NAGIN and several others participated in a conspiracy to commit bribery and honest services wire fraud. The indictment alleges that NAGIN, in his role as chief executive, devised a scheme to defraud the City of New Orleans and its citizens of his honest services through bribery and a kickback scheme, whereby NAGIN used his public office and official capacity to provide favorable treatment, including awarding contracts, that benefitted business and financial interest of individuals providing him with bribes and kickbacks in the form of checks, cash, granite inventory, wire transfers, personal services, and free travel. The indictment charges NAGIN with accepting numerous bribes and payoffs from consultants and contractors, money laundering conspiracy, and filing false tax returns for the years 2005 to 2008.
“This office will continue its history of investigating and prosecuting public corruption” said Dana J. Boente, U.S. Attorney for the Eastern District of Louisiana. “This is an important part of the office’s mission to serve the citizens of the Eastern District of Louisiana and make certain they have honest public officials.”
“This indictment should serve as a reminder to current and former public officials that, in the interest of full accountability, the FBI pursues corruption even after an official leaves office,” said Michael Anderson, Special Agent in Charge of the FBI’s New Orleans Field Office.“IRS will continue to do our part to hold the elected officials of New Orleans accountable for their actions,” stated Damon Rowe, IRS-CI Acting Special Agent-in-Charge. “No one is excused from obeying the laws of this country.”
According to the indictment, in January 2005, NAGIN created Stone Age LLC, a granite company based in New Orleans.
The indictment alleges, among other things, that NAGIN accepted approximately $72,250 in bribes from Rodney Williams and his company, Three Fold Consultants, LLC. The indictment also alleges NAGIN accepted bribes from Frank Fradella, including $50,000, granite inventory, and nine payoffs in the form of wire transfers from Fradella totaling $112,500. In some cases, money was deposited into NAGIN’s Stone Age corporate account, or free granite inventory was provided to Stone Age.
If convicted of conspiring with others to commit bribery and honest services wire fraud (Count 1), NAGIN faces statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release. If convicted of accepting a bribes (Count 2-7), NAGIN faces statutory penalties of up to 10 years in prison, a $250,000 fine and three years of supervised release on each count. If convicted of accepting payoffs that caused interstate wire communications to occur between Louisiana and other states (Counts 8-16), NAGIN faces statutory penalties of up to 20 years in prison, a $250,000 fine and three years of supervised release on each count. If convicted of conspiring to commit money laundering (Count 17), NAGIN faces statutory penalties of up to 10 years in prison, a $250,000 fine and three years of supervised release. If convicted of filing false tax returns for years 2005 through 2008 (Counts 18-21), NAGIN faces statutory penalties of up to three years in prison, a $100,000 fine and three years of supervised release on each count.
The indictment also contains Notices of Forfeiture which puts the defendant on notice that the Government intends on forfeiting any and all property and profits concerned with and/or derived from any illegal activity referenced in the indictment.
U. S. Attorney Boente reiterated that today’s indictment describes allegations and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division and the New Orleans Office of Inspector General. U. S. Attorney Boente would also like to acknowledge the assistance provided by the New Orleans Inspector General’s Office and the Metropolitan Crime Commission. The case is being prosecuted by Assistant U. S. Attorneys Matthew M. Coman and Richard R. Pickens, II.
(Download Indictment )
Buffalo Man Sentenced in Firearm Possession CaseRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jimmy Lee Barner, 30, Buffalo, N.Y., who was convicted after a jury trial of being a felon in possession of firearm and ammunition, was sentenced a 100 months in prison by U.S. District Judge Bill Wilson.
Assistant U.S. Attorneys Joseph M. Tripi and John M. Alsup, who handled the prosecution of the case, stated that during a search of Barner’s Amherst Street apartment in January of 2008, New York State Parole Officers and Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives found that the defendant was in possession of a firearms and ammunition. At the time, Barner was on parole for a previous felony state conviction.
The sentencing is the culmination of an investigation on the part of the New York State Department of Corrections and Community Supervision, under the direction of Commissioner Brian Fischer and the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Resident Agent in Charge Frank Christiano.
Boston Man Sentenced for Unarmed Bank RobberyRead the Press Release
BOSTON – A Boston man was sentenced today for robbing Bank of America.
Francis X. Morgan, 51, was sentenced by Chief U.S. District Judge Patti B. Saris to 12.5 years in prison, to be followed by three years of supervised release, and payment of $3,334 in restitution. In October 2012, Morgan pleaded guilty to unarmed bank robbery.On Jan. 9, 2012, Morgan walked into the Bank of America branch on Tremont Street in Boston, handed the teller a note claiming to have a bomb, and demanded money. Terrified, the teller handed him more than $5,500 in cash. Morgan, who did not wear a mask, was on supervised release for a previous bank robbery conviction and his probation officer later recognized him from photographs that were captured by the bank’s surveillance system. Morgan was eventually apprehended in Kansas after local police officers escorted him off a train bound for California. After he was arrested, Morgan made incriminating statements about the robbery and police seized from him more than $2,000 of the stolen cash.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Major Crimes Unit.
Birmingham Tax-Preparer Convicted for Aiding Filing of False Tax ReturnsRead the Press Release
BIRMINGHAM -- A federal jury on Thursday convicted a Birmingham tax-preparer for aiding and abetting the filing of false income tax returns, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Acting Special Agent in Charge Veronica Hyman-Pillot.
The jury convicted SALLY ELIZABETH WYNN, 64, on three counts of aiding and abetting the filing of a false return following a three-day trial before U.S. District Judge R. David Proctor. Wynn was a 30-year professional tax-preparer and owner of Centerpoint Financial Services.
“While most preparers provide excellent service to their clients, a few dishonest return preparers file false tax returns and give the client a false sense of security,” Hyman-Pillot said. “IRS does not endorse or recommend tax preparers, but we do offer guidelines to help the public choose a reliable tax professional. These guidelines are available on the IRS website,” she said. “Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, ‘If it sounds too good to be true, it probably is.’”
According to evidence at trial, Wynn helped one of her clients hide income from the Internal Revenue Service for the 2005, 2006, and 2007 tax years. The evidence showed that Wynn provided tax-preparation and bookkeeping services to Gonzalez Construction Incorporated and its owner, Jose Gonzalez. As a result, Wynn knew that Gonzalez received at least $340,000 in personal income during each of the years in question. Nevertheless, she prepared tax returns for him that claimed between $55,000 and $66,000 in total income during each of the three years.
Gonzalez still faces criminal charges for his role in these crimes.
Wynn is scheduled for sentencing May 8.
Wynn could face a maximum sentence of three years in prison on each of the three counts of aiding and abetting the filing of a false tax return.
The IRS investigated the case. Assistant U.S. Attorneys Melissa K. Atwood and Robin B. Mark prosecuted the case.
Bay Area Nurse Sentenced to 27 Months in Prison for Misuse of A Social Security Number, Bank Fraud and Tax EvasionRead the Press Release
SAN FRANCISCO – Crystal Ann Poole was sentenced to 27 months in prison today for tax evasion, bank fraud and Social Security fraud, United States Attorney Melinda Haag, Assistant Attorney General of the Justice Department’s Tax Division Kathryn Keneally, and IRS Special Agent in Charge Jose M. Martinez announced. U.S. District Judge Susan Illston ordered Poole to serve three years supervised release following her prison term and to pay $476,444.08 in restitution -- $400,197 to the IRS for the tax loss, $43,822.90 to the Community Bank of Mississippi for the loss associated with the bank fraud, and $32,424.18 to Wells Fargo for the loss associated with Poole’s misuse of a Social Security number.
Poole pled guilty to tax evasion, bank fraud and Social Security fraud on Sept. 10, 2012. According to court documents, Poole evaded taxes on more than $1.27 million in income that she earned from 1994 through the present as a registered nurse. During her career as a nurse, Poole failed to file returns with the IRS, failed to pay her taxes, used the Social Security number of another individual to hide income and assets, and filed false documents with her employers to stop them from withholding taxes from her wages.
According to the plea agreement, Poole committed bank fraud in 2006 when she applied for a loan of $335,000 from the Community Bank of Mississippi to buy a home in Florence, Miss. In her loan application, Poole misrepresented her financial circumstances by omitting debts and supplying a false Social Security number to conceal a then-pending bankruptcy and at least $150,000 in outstanding debts under her true Social Security number. Poole also submitted a falsified Form W-2, Wage and Tax Statement, that purported to be from her employer. This fraudulent document overstated her income and again listed a false Social Security number. Based on her fraudulent loan application, the bank approved the loan. Poole ultimately stopped making payments on the loan, resulting in foreclosure and a loss to the bank of $43,822.90.
According to the plea agreement, in 2007 Poole committed Social Security fraud when she used the Social Security number of an Alabama schoolteacher to obtain a $30,158.63 loan to purchase a Lexus. Poole ultimately stopped making payments on the car loan, resulting in a loss to Wells Fargo of $32,424.18. Poole purchased the schoolteacher’s Social Security number before 2003, when she was living in Georgia. Since then, Poole has used the schoolteacher’s Social Security number to open and maintain bank accounts, hold property, and purchase assets. In using the schoolteacher’s Social Security number, Poole intended to conceal the nature, extent, and location of her assets from the IRS.
Brian Bailey and Katherine Wong, Trial Attorneys with the United States Department of Justice, Tax Division, prosecuted the case. The case was investigated by the Internal Revenue Service, Criminal Investigation.
(Poole Indictment )
Baltimore Police Officer Indicted on Gun and Drug Conspiracy ChargesRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Baltimore Police officer Kendell Richburg, age 36, of Baltimore, on gun and drug conspiracy charges. The indictment was returned on January 17, 2013, and unsealed today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“Corrupt police officers insult the many honorable officers who serve with integrity,” said U.S. Attorney Rod J. Rosenstein. “Any officers who may be tempted to abuse their authority should be on notice that we have the power and obligation to hold them accountable.”
“Today's criminal charges, the result of an investigation by Baltimore Police Internal Affairs Investigators and the FBI, are deeply disturbing and represent an egregious violation of the sacred trust citizens place in police officers,” said Baltimore Police Commissioner Anthony W. Batts. “This joint investigation underscores the BPDs unwavering commitment to accountability. Our promise to the people of Baltimore is that we will continue to work diligently to ensure every member of this Baltimore Police Department deserves the respect and trust of our community.”
The three count indictment alleges that from June 2011, through October 2012, Richburg was part of a conspiracy to distribute and possess with intent to distribute heroin, cocaine, crack cocaine and marijuana. Further, Richburg is charged with conspiring to and possessing firearms in furtherance of drug trafficking, including a .380 semi-automatic handgun and .40 caliber semi-automatic handgun.
Richburg faces a maximum sentence of 20 years in prison for the drug conspiracy, 10 years in prison for the firearms conspiracy count; and a minimum mandatory sentence of five years in prison and a maximum of life in prison for use of firearms in relation to a drug trafficking crime. An initial appearance was held today at 1:45 p.m. in U.S. District Court in Baltimore, before U.S. Magistrate Judge Timothy J. Sullivan. Richburg is detained pending a detention hearing scheduled for January 22, 2013, at 9:30 a.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Tonya N. Kelly, who are prosecuting the case.
Baltimore Heroin Supplier Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Daniel Blue, age 30, of Baltimore, Maryland, today to 10 years in prison followed by eight years of supervised release for conspiracy to possess and possession with intent to distribute heroin. Blue was convicted of those charges by a federal jury on June 22, 2012.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to evidence presented at Blue’s three day trial, on June 29, 2011, Baltimore City Police Department (BPD) detectives were conducting a narcotics investigation in the 700 block of N. Curley Street in Baltimore City, after receiving information that Keith Townsend, who lived in that block, was selling narcotics. Detectives arranged for a confidential source to purchase 50 grams of heroin from Townsend. Townsend contacted the source and informed him that he would be ready to sell the narcotics in fifteen minutes. A short time later, detectives saw Townsend leave his residence and walk towards the corner of E. Madison and N. Curley Street, where Daniel Blue handed Townsend a brown object, which Townsend placed in his left front pants pocket. Townsend was arrested as he returned to his residence. Officers recovered a plastic bag with a piece of bread from Townsend’s left front pants pocket. Inside of the bread was approximately 50 grams of heroin in a plastic bag.
The entire transaction between Blue and Townsend was witnessed by BPD detectives and was also captured on video by a Baltimore City Police pole camera.
On July 13, 2011, BPD detectives executed a search warrant for a residence in Nottingham, Maryland, associated with Blue,. During the search, law enforcement officers recovered over 100 grams of heroin. Blue was subsequently arrested. At the time of his arrest, Blue was on supervised release from a 2007 federal drug conviction.
Co-defendant Keith Townsend, age 50, of Baltimore, pleaded guilty to possession with intent to distribute heroin and was sentenced to 37 months in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys John W. Sippel, Jr. And Clinton J. Fuchs, who prosecuted the case.
Athens Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Jason L. Hutchinson, 42, of Athens, Ohio was sentenced in U.S. District Court to 300 months in prison and will be under court supervision for the rest of his life for using a webcam to create a video of himself engaged in various sex acts with a 13-year old and distributing the video out of state.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
“Recordings of child abuse are used as currency by those who exploit children,” U.S. Attorney Stewart said. “Law enforcement coordination between federal, state and local agencies is the only way to curtail such exploitation.”
Hutchinson pleaded guilty on August 24, 2012 to one count of using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
Hutchinson created the video at his residence in November 2010 then sent that video and another similar video to an individual in the greater Boston, Massachusetts area. Law enforcement officers in the Boston area discovered the video and alerted law enforcement officials in Ohio. Supported by deputies from the Athens County Sheriff’s Office, FBI agents executed a search warrant and arrested Hutchinson on a criminal complaint on March 16, 2012. He has been in custody since his arrest.
Hutchinson also admitted to sexually abusing another young boy in Athens County several years ago and discussing that abuse with the individual, a sex offender in Massachusetts, to whom he sent the videos. Judge Marbley cited the prior abuse as one of the bases for the sentence. Judge Marbley also ordered Hutchinson to be placed under court supervision for the rest of his life after he serves his time in prison. Hutchinson must register as a sex offender anywhere he lives, works or goes to school.
Stewart commended the investigation by the FBI and Assistant U.S. Attorney Heather Hill, who prosecuted the case.
Albuquerque Man Pleads Guilty to Armed Robbery Spree - Defendant Admits Robbing Albuquerque Businesses in Two-Week PeriodRead the Press Release
Defendant Admits Robbing Four Albuquerque Businesses in Two-Week Period
ALBUQUERQUE – This morning, Oscar Marquez, 22, of Albuquerque, N.M., pled guilty to four counts of Hobbs Act robbery and one count of using a firearm during a crime of violence, and admitted robbing four Albuquerque-area businesses at gunpoint during a two-week period. Marquez’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Marquez was charged in an eight-count indictment with four counts of violating the Hobbs Act by interfering with a business involved in interstate commerce by robbery, and four counts of using a firearm during and in furtherance of a crime of violence. The indictment, which was filed in Oct. 2012, also charged co-defendant, Rebecca Aguilar, 25, of Albuquerque, with aiding and abetting one of the robberies.
The indictment charged Marquez with robbing the following four Albuquerque-area businesses: the Captain D’s Restaurant on May 28, 2012 (Count 1); a Cricket Wireless Store on May 29, 2012 (Count 3); a King Wireless Store on June 7, 2012 (Count 5); and another Cricket Wireless Store on June 9, 2012 (Count 7). Counts 2, 4, 6 and 8 charged Marquez with using a firearm during each of the four robberies. According to the indictment, Marquez discharged his firearm during the May 29, 2012 and June 9, 2012 robberies, and Aguilar allegedly participated in the May 9, 2012 robbery.
During today’s proceedings, Marquez entered guilty pleas to Counts 3, 5, 6 and 7 of the indictment, and admitted robbing store clerks at three businesses at gunpoint between May 29 and June 9, 2012. Marquez also pled guilty to an information charging him with the armed robbery of a store clerk at an Albuquerque-area Game Stop on June 10, 2012.
Marquez has been in federal custody since Oct. 17, 2012, and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Marquez will be sentenced to 20 years in prison, and Counts 1, 2, 4 and 8 of the indictment will be dismissed after he is sentenced.
Aguilar, who was arrested on Oct. 15, 2012, has entered a not guilty plea to Count 7 of the indictment, the sole charge against her. The charge against Aguilar is only an accusation and she is presumed innocent unless proven guilty beyond a reasonable doubt. Aguilar is detained pending trial, which has not been scheduled.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. The new initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the District Attorney’s Office for the Second Judicial District of the State of New Mexico, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Alabama Residents Indicted on Stolen Identity Refund Fraud ConspiracyRead the Press Release
Montgomery, Alabama - Mary and Christian Young and Octavious Reeves were indicted by a federal grand jury in the Middle District of Alabama on a variety of charges stemming from an identity theft and tax fraud conspiracy, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama and the Internal Revenue Service (IRS). The alleged conspirators were charged in a 31-count indictment that was returned on December 18, 2012, and unsealed today.
Mary and Christian Young and Octavious Reeves, all of Elmore County, Ala., were charged with conspiring to defraud the United States, along with access device fraud and aggravated identity theft. Mary Young was also charged with several counts of wire fraud. According to the indictment, the defendants’ conspiracy lasted from January 2012 through June 2012 and involved using stolen identities to file tax returns claiming fraudulent refunds.
The indictment further alleges that Mary Young obtained the names and Social Security numbers of individuals that were then used to electronically file false tax returns. Mary Young would direct the false tax refunds to bank accounts linked to prepaid debit cards. Mary and Christian Young and Octavious Reeves would then use the prepaid debit cards to withdraw cash or pay for personal items.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Mary Young faces face a maximum potential sentence of 328 years in prison, Christian Young faces a maximum of 27 years in prison, and Octavious Reeves faces a maximum of 78 years in prison.
IRS-Criminal Investigation agents investigated this case, and Justice Department Tax Division trial attorneys Charles M. Edgar Jr. and Michael Boteler are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Akron Man Indicted on Charges of Child PornographyRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Michael A. Taschetta, 54, of Akron, N.Y., with possession of child pornography. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the indictment, the defendant downloaded images of child pornography from the internet utilizing a peer-to-peer software application.
The indictment is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.
The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
7th Person Convicted in Conspiracy to Transport CocaineRead the Press Release
LAREDO, Texas – Juan Ramon Ibarra Jr., 30, of Laredo, has been convicted for his role in a conspiracy to transport five kilograms or more of cocaine and international money laundering, United States Attorney Kenneth Magidson announced today.
Ibarra was named in a sealed indictment returned by a grand jury on Aug. 28, 2012, which alleged a drug trafficking organization had transported more than five kilograms of cocaine since 2008. The organization transported cocaine from Nuevo Laredo, Mexico, to Houston and Miami, Fla., on a regular basis. With the guilty plea today, all seven individuals named in the indictment have now been convicted.
In his plea, Ibarra admitted he participated in the transportation of cocaine to Miami since 2004. He and his father, Juan Ramon Ibarra Sr. coordinated with Rene Cardenas and other co-conspirators to transport the drugs in aftermarket compartments installed in the rear wheel axles of tractor-trailers. Once the cocaine was delivered to Miami, the compartment was loaded with large amounts of United States currency destined for Nuevo Laredo. One such load was intercepted in March 2010 when agents recovered approximately $422,000 in the compartment with a drug ledger.
In 2010, Ibarra Sr. pleaded guilty to his role in the drug conspiracy and was sentenced by U.S. District Judge Micaela Alvarez to 130 months in federal prison. Following Ibarra Sr.’s arrest, Ibarra Jr. assumed the role of his father and continued the transportation of cocaine for the drug trafficking organization.
Ibarra Jr. faces a mandatory minimum sentence of 10 years and up to life in prison and a $10 million fine for the drug conspiracy as well as a maximum of 20 years and a substantial fine for the conspiracy to commit international money laundering. The United States is also seeking a money judgment in the amount of $2,408,204. U.S. District Judge Marina Garcia Marmolejo, who accepted the plea today, has set sentencing forApril 30, 2013.
The case is the result of a two-year Organized Crime Drug Enforcement Task Force Investigation dubbed Silver Fox Hunt led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations. Assistant United States Attorneys James Hepburn and Elizabeth Rabe are handling the case.
7 Individuals Indicted for Violations of the Racketeer Influenced and Corrupt Organizations Act (RICO Act)Read the Press Release
SAN JUAN, PR – Today, a federal grand jury charged seven (7) individuals for RICO Act conspiracy as a result of an investigation by US Postal Inspection Service (USPIS), Federal Bureau of Investigation (FBI), Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Puerto Rico Police Department (PRPD), and the Puerto Rico Department of Justice, announced today United States Attorney Rosa Emilia Rodríguez-Vélez. The defendants are charged in a ten-count second superseding indictment with: violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), conspiracy to possess with intent to distribute controlled substances, committing Violent Crimes in Aid of Racketeering Activity, use of a firearm in relation to a crime of violence, drive-by shooting, and possession of a machine gun.
On August 15, 2012, the defendants were originally charged on a six (6) count indictment with, conspiracy to possess with intent to distribute controlled substances, use of firearms in furtherance of crimes of violence, and possession of machine guns, and other related offenses.
As part of the manner and means of the conspiracy to commit violations to the RICO Act, the defendants and co-conspirators purchased kilogram quantities of marihuana in the Continental United States and then shipped the marihuana to Puerto Rico using the U.S. Mail, to be distributed by members of the criminal organization. It is further alleged that the defendants and co-conspirators used the profits from the marihuana sales to purchase weapons, ammunition and other materials in order to commit violent acts against rival drug trafficking organizations.
The second superseding indictment includes allegations of five (5) murders and two (2) attempted murders, all committed by members of this organization. These acts are as follows:
- On or about February 16, 2010, in Arecibo, Puerto Rico, defendants [1] José Babilonia-Torres, aka “Bochi;” [4] Victor Real-Alomar, aka “Tostón;” and [5] José Gonzàlez-Bernard, aka “el Mudo,” aka “Tio,” shot and killed Frankie Rodríguez-Ornedo, aka “Periquito.”
- On or about August 18, 2010, in Vega Alta, Puerto Rico, defendant [5] Gonzàlez-Bernard shot and killed Luis Rodríguez-Rodríguez, aka “Gaby.”
- In or about 2010, in Puerto Rico, defendants [1] Babilonia-Torres and [5] Gonzàlez-Bernard shot and attempted to kill José Cintron-Otero, aka “Checko.”
- On or about March 18, 2011, in Dorado, Puerto Rico, defendants [2] Irving Melecio-Ramírez, aka “Gordo;” [3] Xavier Melecio Ramírez, aka “Xavo;” [4] Victor Real-Alomar, aka “Tostón;” [5] Gonzàlez-Bernard; [6] Félix A. Hernàndez-Burgos, aka “Bonito Pelo” or “Anthony” and [7] Alexis Hernàndez-Burgos, aka “Chucho” or “Chicho,” shot and killed Rolando Torres-Crespo, aka “Nandy” and Dimaries Broco-Irizarry. Dimaries Broco-Irizarry was an attorney and was an innocent victim of the drive-by shooting committed by the defendants on the highway near Dorado, Puerto Rico.
- On or about June 7, 2011, in Puerto Rico, defendant [5] Gonzàlez-Bernard, aiding and abetting others, killed José Espinal-Lorenzo, aka “Chelo.”
- On or about June 28, 2011, in Manatí, Puerto Rico, defendant [1] Babilonia-Torres, shot and attempted to kill Jonathan Ortiz-Salgado, aka “Cochinola.”
Six of the defendants involved in the murders and attempted murders are eligible for the death penalty. The remainder of the defendants who are part of the conspiracy and participated in its criminal acts include: Pablo Echevarría-Rodríguez; José Acevedo-Vélez, aka “Chapo;” Brian Osoria-Padilla; Orlando Félix-Negrón, aka “Orly,” Nelson Alonso-Galarza; and Pedro Javier Hernàndez-Sosa.
The case is being prosecuted by Assistant United States Attorney Justin Martin from the Organized Crime and Racketeering Section.
The defendants who are not eligible for the death penalty are facing up to 40 years or life in prison. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
10th Street Member Pleads Guilty to Rico ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Hector Rodriguez, 24, of Buffalo, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara to Racketeering Influenced Corrupt Organizations (RICO) Conspiracy. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant was a member of the 10th Street Gang and admitted to drug dealing and firearms possession as a part of his participation in the gang. As a part of his activities on behalf of the 10th Street Gang, on May 22, 2006, Rodriguez learned that rival drug dealers were making what he believed to be a substantial amount of money selling crack cocaine in the turf controlled by the 10th Street Gang. As a result, the defendant dressed in old and dirty clothes, pretended to be a crack cocaine user, and purchased crack cocaine from the rival drug dealers who were selling in the 10th Street Gang's turf. Following the purchase, Rodriguez returned to a 10th Street Gang drug house where he told fellow gang members that he did not see any guns in the possession of the rival drug dealers located inside the house. Armed 10th Street gang members then went to the location and shot the rival drug dealers using an AK-47 in order to force the rival drug dealers out of the neighborhood.
The defendant was indicted along with 34 other 10th Street Gang members or associates. He is the 18th defendant to be convicted.
The plea is the culmination of an investigation on the part of Investigators of the New York State Police under the direction of Major Christopher Cummings, the Buffalo Police Department under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation under the direction of Special Agent in Charge Christopher M. Piehota.
Sentencing is scheduled for May 9, 2013 at 12:30 p.m. before Judge Arcara.
Thursday 17 January 2013
Youngstown Man Indicted on Seven Counts of Health Care FraudRead the Press Release
A federal indictment was filed charging Rolando Sepulveda with seven counts of health care fraud in connection with the operation of his ambulette company, Med Transportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
Sepulveda, age 51, operated his business out of the Youngstown area and is currently believed to be residing in Puerto Rico. He defrauded the state of approximately $406,000 from August 2008 to August 2011, according to the indictment.
"This money should have gone to help those who were sick and truly needed transportation,” Dettelbach said.
“That is a huge amount of money that could have been spent on patients who legitimately needed help,” said Ohio Attorney General Mike DeWine. “Instead, this man took that money for himself."
Ambulette services contract with the Ohio Medicaid program to transport patients in vehicles known as ambulettes. An ambulette is a specially equipped van designed for wheelchair passengers. Medicaid pays ambulette operators for driving Medicaid patients to and from Medicaid-covered appointments, so long as: (1) the patient rides in a wheelchair; (2) a medical doctor certifies the need for the wheelchair and ambulette; and (3) the ambulette itself otherwise meets safety specifications.
The defendant is charged with scheming to defraud Medicaid of approximately $406,000.00 by charging Medicaid for rides of patients who did not use or need wheelchairs and for billing Medicaid for ambulette attendants, when no such attendants were used by Med Transportation.
If convicted, the defendant’s sentence will be determined by the court after review of the federal sentencing guidelines and factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations.
The indictment is the result of an investigation by Ohio Attorney General Mike DeWine’s Medicaid Fraud Control Unit and the Office of the Inspector General, United States Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Chelsea S. Rice and Special Assistant U.S. Attorney Constance Nearhood, an Assistant Attorney General for the State of Ohio.
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.
West Plains Man Pleads Guilty to Receiving Child Porn over the InternetRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man pleaded guilty in federal court today to receiving child pornography over the Internet and possessing child pornography.
Scott Allen Johnson, 26, of West Plains, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in an Aug. 29, 2012 federal indictment.
An officer with the Southwest Missouri Cyber Crimes Task Force identified Johnson’s computer as sharing images of child pornography on a peer-to-peer file-sharing network on Dec. 30, 2011. The officer connected with Johnson’s computer on the network again on Jan. 9, 2012 and was able to determine that he had 322 files available for sharing, of which 139 were identified as known files depicting child sexual abuse. Officers executed a search warrant at Johnson’s residence on Feb. 9, 2012 and seized a laptop computer, four computer towers and 42 optical media disks.
Investigators found approximately 219 images and 46 movie files of child pornography on the laptop computer. The ages of the child victims ranged from 2 to 12, and the images depicted scenes of sexual intercourse, oral sex, anal sex, child bondage, bestiality and nudity.
Under federal statutes, Johnson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $500,000. Johnson must also forfeit the computer used to distribute and possess child pornography. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force (SWMCCTF), the Cassville, Mo., Police Department and the Howell County, Mo., Sheriff’s Department.
Wayne Medical Center to Pay $883,000to Settle False Claims Act AllegationsRead the Press Release
Wayne Medical Center, located in Waynesboro, Tenn., has agreed to pay the United States $883,451.40 to settle False Claims Act allegations, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
Wayne Medical Center submitted a voluntary self-disclosure to the U.S. Attorney’s Office and to the Office of Inspector General for the Department of Health and Human Services. The self-disclosure, discovered by the hospital’s compliance program, prompted an investigation into the hospital’s billing for ambulance transport as part of its emergency medical services.
Based upon an audit of billings conducted by Wayne Medical Center, the United States alleged that Wayne Medical Center submitted certain claims and received payment for: (1) ambulance services that were not medically necessary or for which medical necessity was not documented; (2) ambulance services for which a Physician Certification Statement was not obtained; (3) ambulance services that were assigned an incorrect transport level; (4) ambulance services for which the requisite signatures were not obtained; and (5) ambulance services that were billed with incorrect mileage units. The time period covered by the settlement agreement spans January 1, 2004, through December 31, 2009.
“Today’s announced settlement is another example of the benefit to providers of self-reporting billing issues directly to the United States Attorney’s Office,” said U.S. Attorney Jerry E. Martin. “Wayne Medical Center avoided the costs associated with a protracted investigation and the risks of potential fines under the False Claims Act. By doing the right thing and coming forward, they were treated fairly and were able to quickly and efficiently put this matter behind them.”
"This case is an excellent example of collaboration between the health care community and the law enforcement community coming together to serve the American taxpayer," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "When this hospital realized it had received inappropriate Medicare payments, it brought the matter to the attention of the U.S. Attorney's Office and refunded the money to the Medicare Trust Fund. We certainly hope that other health care providers will do the same when they realize they have been overpaid."
The United States encourages all health care providers to self-disclose any known violations that have resulted in the submission of improper claims to federal health care programs.
This case was investigated by the Department of Health and Human Services - Office of Inspector General and the U.S. Attorney’s Office for the Middle District of Tennessee. Assistant U.S. Attorney Mark H. Wildasin represented the United States.Virgin Islands Senator Pleads Guilty to Operating and Participating in A Criminal Enterprise That Engaged in Bribery, Mail Fraud, and Wire Fraud St. Thomas, USVIRead the Press Release
St. Thomas, USVI - Former Virgin Islands Senator Alvin Williams, Jr., pleaded guilty today in federal district court to operating and participating in a criminal enterprise whose members and associates engaged in illegal activities, including bribery, mail fraud and wire fraud, announced United States Attorney Ronald W. Sharpe, Federal Bureau of Investigation (FBI) Special Agent in charge Joseph Campbell, United States Marshal Cheryl Jacobs, Virgin Islands Office of the Inspector General Steven van Beverhoudt, Internal Revenue Service Criminal Investigation Division (IRS-CI) Special Agent-in-Charge Jose A. Gonzalez, U.S. Department of Education Office of Inspector General Special Agent-in-Charge Yessyka Santana, Drug Enforcement Administration (DEA) Acting Special Agent-in-Charge Pedro J. Janer, and Virgin Islands Police Department (VIPD) Commissioner Henry White.
Williams, 34, and two other defendants were charged by grand jury indictment on November 8, 2012. The plea agreement followed an extensive investigation conducted by the Federal Public Corruption Task Force, which comprises the FBI, United States Marshals Service, IRS-CI, U.S. Department of Education Inspector General, DEA, Virgin Islands Office of the Inspector General, and the VIPD.
In entering his plea of guilty to Count One of the indictment, racketeering before U.S. District Court Judge Curtis V. Gomez, Williams admitted bribing a Virgin Islands public official and soliciting and receiving bribes from numerous St. Thomas construction project developers; fraudulently soliciting and increasing staff member salaries and using the increase of funds for his personal use; and using Virgin Islands Legislative staff members to do his University of Phoenix online coursework for him during legislative work hours.
Williams faces a maximum penalty of 20 years imprisonment and $250,000 in fines, in addition to forfeiture penalties and restitution. No sentencing date has been set.
United States Attorney Ronald W. Sharpe commended the work of the Public Corruption Task Force and Assistant U.S. Attorneys Kim R. Lindquist and Kelly B. Lake, who are prosecuting this case.
Uniontown Man Sentenced to 12½ Years in Prison for Dealing Crack CocaineRead the Press Release
PITTSBURGH - A resident of Uniontown, Pa., has been sentenced in federal court to 150 months (12 ½ years) incarceration and six years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Darrell Howard Foster, 35.
According to information presented to the court, on March 14, 2012, Foster possessed with intent to distribute crack cocaine. As a result of Foster's prior felony drug and aggravated assault convictions, he was deemed a career offender and subject to an increased recommended sentencing range.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Pennsylvania State Police, and Uniontown Police Department for the investigation leading to the successful prosecution of Foster.
U.S. Attorney's Office to Host School Safety Summit on February 6thRead the Press Release
Educators and law enforcement to address practical steps against school violence; Pulitzer-prize nominated expert and author to speak
CHARLESTON, W.Va. - United States Attorney Booth Goodwin today announced that the United States Attorney's Office for the Southern District of West Virginia will host a Summit on West Virginia Safe Schools on Wednesday, February 6, 2013, beginning at 9 a.m. at the Culture Center, State Capitol Complex in Charleston. The summit will bring together educators and law enforcement officials, who will jointly consider practical steps to prevent and prepare for school violence. Dr. James Phares, West Virginia Superintendent of Schools, will speak at the summit's morning session.
The summit will feature a morning address by internationally recognized scholar, author, and speaker Lt. Col. Dave Grossman (ret.), an expert on the causes of mass shootings and school violence. Lt. Col. Grossman is a former nominee for the Pulitzer Prize in non-fiction for his work on the psychology of violence.
In addition, three panels of experts from around West Virginia will address issues in school safety. Following the summit, participants will develop a written set of school safety recommendations for the education and law enforcement communities.
"The goal of this summit is to answer two very practical questions," said U.S. Attorney Booth Goodwin. "First, how do we identify potentially violent situations in schools and handle them before something bad happens? Second, what should our schools and first responders be doing to prepare in case the unthinkable comes to pass?"
"The tragedy last month at Sandy Hook Elementary was heartbreaking, and it's still very much on all our minds," Goodwin continued. "This summit is a chance to develop specific steps that we can take, right now, at the local level, to prevent school violence and to be as prepared as possible. I invite anyone who's interested in safer schools to join us on February 6 and participate in the discussion."
Lt. Col. Dave Grossman (ret.), a former West Point psychology professor and U.S. Army Ranger, is a leading expert in the field of human aggression and the causes of violence and violent crime. He has presented papers before the national conventions of the American Medical Association, the American Psychiatric Association, the American Psychological Association, and the American Academy of Pediatrics. Lt. Col. Grossman has been involved in the response to numerous school shootings, including the tragedies at Columbine and Virginia Tech. He will speak to summit participants at 9:30 a.m.
Three panels of experts from around West Virginia will address an array of issues related to school violence. The first panel will focus on how to identify and address potentially violent situations. The second will concentrate on planning by schools and by law enforcement agencies for what to do if violence occurs. The third will emphasize the perspectives of those on the front lines of these issues: principals, teachers, counselors, law enforcement officers, and students.
Participants in the three panel discussions will include Mark Manchin, Executive Director of the West Virginia School Building Authority, as well as representatives of the West Virginia Department of Education, the West Virginia Department of Military Affairs and Public Safety, and the West Virginia State Police.
The Summit on West Virginia Safe Schools is being co-sponsored by the West Virginia Department of Military Affairs and Public Safety and the West Virginia Division of Justice and Community Services. The Summit is also being held in partnership with the West Virginia State Police, the West Virginia Department of Education, the West Virginia Center for Professional Development, the West Virginia School Building Authority, and Cabell County Schools.
The February 6th summit is open to educators and law enforcement personnel, and to the public. Individuals interested in attending may register at www.wvsafeschools.org. Seating is limited, so those interested are encouraged to register well in advance.
For questions regarding the Safe Schools Summit, please call Deanna Eder at: 304-345-2200 or 800-659-8726.
Two Men Indicted for Robbing the First State Bank of Bigfork in KelliherRead the Press Release
MINNEAPOLIS—Yesterday in federal court, two men from northern Minnesota were indicted in connection with the December 10, 2012, armed robbery of the First State Bank of Bigfork, located in Kelliher, Minnesota. Cody Lowell Troy, age 19, of Mizpah, and Travis Michael Burns, age 20, of Bemidji, were charged with one count of armed bank robbery. In addition, Troy was charged with one count of brandishing a firearm during a crime of violence and one count of being a felon in possession of a firearm.
The indictment alleges that on December 10, 2012, the defendants stole approximately $3,738 from the bank while putting the lives of others in jeopardy by brandishing a 12-gauge, sawed-off shotgun. In addition, authorities assert that the shotgun’s serial number was partially obliterated.
According to a law enforcement affidavit filed in the case, an individual, later identified as Troy, entered the bank at approximately 2:24 p.m. He reportedly wore a white protective containment suit, a “Halloween” movie style mask, Nike Air Jordan shoes, and black gloves. Allegedly, he approached a teller, placed a black backpack on the counter, pointed the shotgun in the teller’s direction, and pumped the gun. The teller immediately placed the money in the backpack, which Troy allegedly grabbed before fleeing the premises in a red pickup truck.On December 12, 2012, police arrested Troy in Bemidji on an outstanding Itasca County warrant for failure to appear in connection with a prior felony. At that time, officers also located a red pickup that matched the description of the one witnesses spotted in the vicinity of the bank immediately after the robbery.
During the subsequent execution of a search warrant at the Bemidji apartment where Burns lived and Troy was staying, authorities seized shotgun shells, a hacksaw, and a loaded sawed-off shotgun, as well as the sawed-off gun stock and barrel. They also recovered a white protective containment suit, black gloves, Nike Air Jordan shoes, and a “Halloween” movie style mask. The backpack used in the robbery, as well as some money from the bank were recovered in Burns’ bedroom.
Because he is a felon, Troy is prohibited under federal law from possessing a firearm at any time. In 2011, Troy was convicted of third-degree burglary in Koochiching County.
If convicted, the defendants face a potential maximum penalty of 25 years in prison for armed bank robbery. In addition, Troy faces a potential maximum penalty of ten years for being a felon in possession of a firearm and a mandatory minimum penalty of ten years for brandishing a firearm during a violent crime. All sentences will be determined by a federal district court judge.
This case was investigated by the Federal Bureau of Investigation, the Beltrami County Sheriff’s Office, the Headwaters Safe Trails Task Force, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant United States Attorneys Manda M. Sertich and Kevin S. Ueland.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.
Toledo Men Accused of Defrauding Insurance Companies Through Fake Auto AccidentsRead the Press Release
An indictment was filed charging Michael N. Smith, age 57, and Darryl Richardson, age 57, both of Toledo, with conspiracy to commit mail fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The defendants are accused of devising a scheme to enrich themselves through the submission of false and fraudulent auto insurance claims to various insurers, causing total losses of more than $135,000. The scheme involved recruiting numerous other co-conspirators to fake auto accidents and then make false claims to insurance companies, according to the indictment.
The conspiracy took place between December 2006 and March 2009 and involved more than 20 claims submitted to companies including GEICO, Safe Auto Insurance Company, Permanent Generl, n/k/a The General, and Progressive Casualty Insurance Company, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the United States Postal Service, Cleveland, Ohio, United States Secret Service, Toledo, Ohio, and the National Insurance Crime Bureau, Chardon, Ohio. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Title Company Owner Sentenced in $1.5 Million Fraud SchemeRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Harriet M. Taylor, age 57, of Ellicott City, Maryland, today to two years in prison followed by five years of supervised release for wire fraud in connection with a scheme to use over $1.5 million in mortgage closing funds for her personal use and to operate her title companies. Judge Quarles also ordered Taylor to pay restitution of $1,256,635.70 to Old Republic and $253,750.84 to CAN Surety, the insurer on Taylor’s errors and omissions policies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General.
According to her plea agreement, Taylor co-owned and managed two title insurance companies, Regal Title Company, LLC and Loyalty Title Company, LLC, located in Columbia, Maryland. Pursuant to an agreement with a national title insurance underwriter, and as required by Maryland state law, escrow accounts for Regal and Loyalty were established, separate from company operating accounts, for the purpose of holding and disbursing funds received from lenders for real estate closings.
Beginning in 2009, however, Taylor caused some mortgage lenders to wire their funds entrusted for real estate settlements to Regal’s operating account, rather than to the escrow accounts. Taylor also caused funds in Regal’s and Loyalty’s escrow accounts to be transferred back and forth to the companies’ respective operating accounts. By using commingled funds throughout 2009, Taylor kept her two businesses afloat, while enriching herself with both company and escrow funds. From January through December 2009, Taylor paid herself $477,877.50 from three company operating accounts.
As shortfalls in the escrow accounts increased, Taylor failed to remit insurance premiums to the title insurance underwriter, Old Republic National Title Insurance Company (Old Republic), pay recording fees for deeds and pay off prior liens, including four of which belonged to the government sponsored entities, Fannie Mae and Freddie Mac.
Old Republic learned of the commingling of escrow and operating funds during a 2009 audit of Regal. They directed Taylor to stop the practice. Five months later during a further audit of both companies, Old Republic discovered that in nine cases Taylor used the payoff checks that were supposed to pay prior lien holders, and immediately terminated her as an agent. Old Republic was obligated to satisfy the prior liens against the properties affected by the misuse of settlement funds and to complete other transactions Regal and Loyalty failed to perform. Accordingly, in January 2010, Old Republic incurred a total loss of $1,518,532 which resulted from paying off prior liens, paying recording fees, and for insurance premiums collected by Regal and Loyalty but not forwarded to Old Republic.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI and the Federal Housing Finance Agency Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Three Holyoke Residents Sentenced for Defrauding MasshealthRead the Press Release
BOSTON – Three Holyoke residents were sentenced this week in U.S. District Court in Springfield for defrauding MassHealth, the Commonwealth’s Medicaid program.
Today, Aida Hernandez, 59, was sentenced to two years of probation and ordered to pay $23,383 in restitution. On Jan. 15, 2013, Maria Jusino, 35, was sentenced to three years of probation, including six months of home confinement, and ordered to pay $159,285 in restitution to MassHealth. Rafael Belen, 39, was also sentenced to time served, to be followed by three years of supervised release, during which time he will be required to perform 100 hours of community service, and ordered to pay $78,956 in restitution. In August 2012, Jusino, Belen and Hernandez pleaded guilty to conspiracy to commit health care fraud.
Beginning in 2006 and continuing through 2011, the three co-conspirators engaged in a scheme to defraud the state’s Personal Care Attendant (PCA) Program. The PCA Program, funded by MassHealth, the Commonwealth’s Medicaid Program, helps individuals with permanent or chronic disabilities keep their independence, stay in the community, and manage their own personal care. The defendants caused MassHealth to be billed for services that were never provided. For example, Jusino billed MassHealth for PCA services she claimed she provided to two different individuals at the same time. Other examples include the following:
- Jusino and Belen signed times sheets for PCA services for their son that were never provided;
- Belen claimed to be providing for PCA services to his brother-in-law in Holyoke when Belen was, in actuality, on vacation in Puerto Rico;
- Hernandez signed time sheets for PCA services she claimed she was provided to Jusino’s son on the same dates and during the same hours that she was running a day care center in her home; and
- Jusino billed MassHealth for PCA services she claimed she was performing for her mother during the same hours that Hernandez was billing MassHealth for PCA services she claimed to be providing to Jusino.
United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement today. The case was investigated by the U.S. Department of Health and Human Services with the assistance of the Commonwealth of Massachusetts Auditor’s Office, Bureau of Special Investigations and the Commonwealth of Massachusetts, Office of the Attorney General, Medicaid Fraud Division. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Office.
Thirty Boston Gang Members Charged with Drug and Firearms Offenses Law Enforcement Round-Up Members of Hendry Street and Woodward Avenue GangsRead the Press Release
BOSTON - Over 300 federal, state and local law enforcement officers carried out arrests and executed search warrants early this morning in Operation Concord, a large-scale collaborative investigation into the violence and distribution of drugs by the Woodward Avenue and Hendry Street gangs and their associates who terrorized the residents in Bowdoin-Geneva section of Dorchester and the Uphams Corner section of Roxbury.
“This community has been in desperate need of reprieve from the violence. We hope the arrests and prosecution of the defendants will quiet the streets and improve the quality of life for all residents,” said United States Attorney Carmen M. Ortiz.
“Today is a great day for the hardworking people of Bowdoin-Geneva and Uphams Corner,” Mayor Thomas M. Menino said. “Thanks to their help, and the help of our law enforcement partners, drugs have been taken from our streets, and these violent individuals who profit from harming others will no longer terrorize our neighborhoods.”
Teams of law enforcement and SWAT/STOP members arrested a total of 27 people today; 25 from the local area, one from California and one from Maine. Two other defendants are already in custody on federal supervised release violations and one remains a fugitive. Search warrants were executed at 12 locations.
As stated in court documents, the investigation, which involved controlled drug purchases, surveillance, and a wiretap, began in the summer of 2011. It is alleged that the defendants have been involved in gang, gun and drug activity in the Bowdoin-Geneva corridor or other areas of Dorchester and Roxbury at the direction of Alexis Hidalgo, 31, of Dorchester, and Jonathan DaSilva, 29, of Roxbury. Wiretap evidence was a crucial component of the investigation and provided investigators with information regarding the alleged partnership between Hidalgo, alleged leader of the Hendry Street gang, and DaSilva, alleged leader of the Woodward Avenue gang.
Hidalgo and DaSilva are alleged to be responsible for the distribution of kilos of crack cocaine, thousands of oxycodone pills throughout greater Boston, as well as hundreds of pounds of marijuana which they branded as high-grade and sold for up to $5,200 a pound. In a wiretap recording, a “mother-load” shipment of drugs was described in a call intercepted between Hidalgo and his associate. It is alleged that Hidalgo responded by saying, “You just got us indicted bro. If they are listening, I sell weed man.”
“From the Berkshires to Cape Cod, the FBI and our law enforcement partners actively analyze and investigate hot spots of gang activity in Massachusetts. As a result, we have concluded several lengthy gang investigations over the past year like today’s, which targets the Hendry Street and Woodward Avenue gangs,” said Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Because of today’s multiple arrests, neighborhoods in Boston and several surrounding cities and towns are safer now than they were mere hours ago. Our unified law enforcement goal is to eradicate the scourge of gang activity which adversely impacts the safety of our communities.”
“This case demonstrates, working with our law enforcement partners, we are keeping the pressure on violent criminals involved in the drug trade,” Police Commissioner Ed Davis said. “We will not tolerate these defendants and others like them from terrorizing our neighborhoods. We are committed to rooting out the bad actors who make our communities unsafe.”
“This effort shows our collective resolve in Boston and the Commonwealth to attack and dismantle these dangerous street gangs," said Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston. “For too long, gangs here and elsewhere have used violence and intimidation to hold communities hostage. As this operation shows, now it's the gang members who have something to fear.”
“The Massachusetts Department of Correction is committed to working with other criminal justice agencies in a joint effort to ensure public safety,” said Luis S. Spencer, Commissioner of the Massachusetts Department of Correction.United States Marshal John Gibbons said, “The success of this investigation demonstrates the excellent working relationships the federal government shares with its state and local partners.”
The following individuals have all been charged with conspiracy to distribute cocaine base, cocaine, heroin, and marijuana, and are subject to forfeiture of property:
1) Alexis Hidalgo, 31, of Dorchester. (Also charged with two counts of distribution of cocaine base.)
2) Jonathan DaSilva, 29, of Roxbury. (Also charged with distribution of marijuana, two counts of distribution of cocaine base, distribution of oxycodone, and being a felon in possession of a firearm.)
3) John Alves, 23, of Roxbury.
4) Hamzal Awil, 24, of Westbrook, Maine.
5) Benjamin Baptista, 29, of Hyde Park.
6) Jeremia Barbosa, 28, of New Bedford.
7) Maurice Barnett, 30, of Salinas, Cali.
8) Jackson Barros, 30, Dorchester. (Fugitive)
9) Michael Beal, 32, of Roxbury.
10) Joshua Brandao, 22, of Dorchester. (Also charged with distribution of cocaine base.)
11) Julio Collazos, 32, of Brockton.
12) Ilton Correia, 28, of Roxbury. (Also charged with distribution of marijuana.)
13) Jerry Correia, 25, of Dorchester.
14) Lino Correia, 20, of Randolph.
15) Alex DaSilva, 29, of Roxbury.
16) Jose Denis, 36, of Roxbury.
17) Carlos Fernandez, 36, of Dorchester.
18) Moises Figueroa, 33, of Wellesley Hills. (Also charged with distribution of cocaine base.)
19) Patrick Gomes, 27, in federal custody on a supervised release violation. (Also charged with being a felon in possession of a firearm.)
20) Hamilton Lopes, 29, of Brockton. (Also charged with distribution of cocaine base.)
21) Leakana Om, 22, of Cambridge.
22) Nicholas Otey, 25, in federal custody on a supervised release violation. (Also charged with distribution of cocaine base.)
23) Ruth Rivera-Lopes, 22, of Dorchester.
24) Morris Robinson, 31, of Brockton.
25) Martinho Rodrigues, 30, of Boston.
26) Victor Scott, 23, of Dorchester. (Also charged with distribution of cocaine base.)
27) Dulsilina Tavares, 26, of Dorchester.
28) Carl Taylor, 34, of Roxbury.
29) O’Neil Taylor, 30, of Norwood.
30) John Webbe, 34, of Boston. (Also charged with distribution of cocaine).Jonathan DaSilva and Gomes face an additional count of forfeiture for all firearms including a Ruger P89 semiautomatic handgun.
U.S. Attorney Ortiz; Mayor Thomas M. Menino; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner Edward Davis; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations in Boston; United States Marshal John Gibbons; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; and Commissioner Luis S. Spencer of the Massachusetts Department of Correction, made the announcement today.
Special thanks to Suffolk District Attorney Daniel Conley and members of his office and the numerous local law enforcement agencies who provided substantial cooperation and assistance throughout the course of the investigation and during the execution of the arrests and searches today. The case is being prosecuted by Assistant United States Attorneys in Ortiz’s Organized Crime and Gang Unit.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tenino Elementary School Teacher Charged with Possession of Child PornographyRead the Press Release
A teacher at Tenino Elementary School is in custody today charged with possession of child pornography, announced U.S. Attorney Jenny A. Durkan. JAMES DONALD MOBLEY, 46, was arrested yesterday on a criminal complaint charging him with receipt and possession of child pornography. MOBLEY is also active as a volunteer in Boy Scouts and as a private tutor. The U.S. Postal Inspection Service and Tenino Police Department are investigating the case. Parents who are concerned about contact their children may have had with MOBLEY are asked to call Tenino Police at 360-264-2626.
According to records filed in the case, the U.S. Postal Inspection Service has been investigating an international company that distributed child pornography through the mails and via download to personal computers. In May 2011, foreign law enforcement executed a search of the business and seized hundreds of child pornography DVDs and business records. An analysis of those records revealed that on multiple occasions between February 2009 and January 2011, MOBLEY had purchased suspected child pornography from the company. In a search of MOBLEY’s home, law enforcement seized a computer hard drive and additional DVDs of child pornography.
MOBLEY remains detained at the Federal Detention Center at SeaTac, Washington pending a detention hearing on Tuesday January 22, 2013. The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Tenino Police Department and the U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorney Marci Ellsworth.
Tax Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
Albany, New York —JAMES P. AIMI, age 65, of Ancram, New York, pled guilty on January 14, 2013 in United States District Court in Albany before Chief United States District Court Judge Gary L. Sharpe to twenty-four counts of aiding and assisting in the preparation and presentation of false and fraudulent U.S. income tax returns, announced United States Attorney Richard S. Hartunian and Toni M. Weirauch, Special Agent-in-Charge, Internal Revenue Service, New York Field Office.
AIMI admitted that between 2005 and 2008, he aided numerous taxpayers in the preparation of income tax returns for presentation to the Internal Revenue Service each of which was false and fraudulent, in that each return represented that the taxpayer was entitled to claim deductions that AIMI knew were false or exaggerated.
Sentencing was scheduled by Chief Judge Sharpe for May 7, 2013, at 11:00 a.m. in Albany, New York. Aimi faces a maximum sentence of three years of imprisonment on each of the twenty-four counts.
This case was investigated by the Internal Revenue Service.
LOCAL CONTACT:
Daniel Hanlon
Assistant U.S. Attorney
Tel: (518) 431-0247Tanya Marie Nava Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 16, 2013, before Chief U.S. District Judge Richard F. Cebull, TANYA MARIE NAVA, a 38-year-old resident of Billings, appeared for sentencing. NAVA was sentenced to a term of:
Prison: 262 months
Special Assessment: $100
Supervised Release: 5 years
NAVA was sentenced in connection with her guilty plea to conspiracy to possess with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On September 16, 2009, law enforcement arranged a controlled drug purchase utilizing a Confidential Human Source (CHS). The transaction was set for Grass Range and the CHS made arrangements with Lisa Martinez to set up the deal. Martinez told the CHS that she would be bringing two subjects with her and identified the vehicle in which they would be traveling. Later that evening, the CHS met Lisa Martinez, Lawrence "Larry" Kopp and NAVA at a gas station in Grass Range. The CHS noted that s/he handed Martinez $4,400 for two ounces of methamphetamine and that Larry Kopp was driving and NAVA was in the front passenger seat. After the transaction was completed, a uniformed deputy in Mussellshell County stopped the vehicle for a traffic violation and positively identified all three subjects. Kopp, NAVA, and Martinez, acting in concert, distributed 43.2 grams of 49.4% methamphetamine or 21.3 grams of actual methamphetamine, a Schedule II controlled substance.
On September 28, 2009, the same CHS made telephonic contact with Martinez again for the purpose of purchasing one ounce of methamphetamine in Billings. The following day, on September 29, 2009, the CHS called Martinez again, and she told the CHS to come to her residence in Billings. After arriving at the location, the CHS made contact again with Martinez, Larry Kopp, and NAVA. On the body wire recording, NAVA and Larry Kopp could be heard weighing the methamphetamine out together, as they were having a disagreement as to how much was in an ounce. NAVA and Kopp were acting in concert and aided and abetted each other in weighing out the one ounce of methamphetamine that was to be distributed to the CHS. The CHS ended up purchasing 26.9 grams of 47.9% methamphetamine or 12.8 grams of actual methamphetamine, a Schedule II controlled substance, for $2,400 cash. After the CHS left, it was realized that a digital scale belonging to the Drug Task Force was left there.
On October 23, 2009, the CHS set up another methamphetamine purchase. The CHS agreed to meet CG, who resided with NAVA, Larry Kopp, and Lisa Martinez in Roundup. The CHS met with CG, who was driven to the meet by Joseph Lira with NAVA in the vehicle. The purchase consisted of two ounces of methamphetamine for $4,200. Lira was positively identified as the driver of the vehicle during an interview with CG. CG advised Lira knew the trip to Roundup was for a methamphetamine deal.
On November 12, 2009, the CHS spoke again with CG, and advised that s/he would be sending a friend of theirs to pick the drugs up in Billings. This "friend" was an undercover agent (UA). The UA made telephonic contact with CG on NAVA's cell phone and arranged to meet at a parking lot in Billings. CG called the UA and stated he was standing in front of the store, and the UA picked him up. After the three ounces of methamphetamine and $7,500 was exchanged, the UA dropped CG off around the corner at another business.
Surveillance units observed CG exit the business with NAVA and another person, and the three got into a pickup and left the area. The vehicle was followed and a traffic stop was conducted on it. All three subjects were detained and questioned, but all refused to cooperate. Most of the original buy money was recovered in NAVA's purse ($7,200), with the remaining $300 found in CG's purse.
On November 24, 2009, a search warrant was executed on NAVA's vehicle after it was impounded by the Billings Police Department. During a search of the vehicle, items of drug paraphernalia were located. Additionally, the digital scale that the FBI CHS left at NAVA's residence on the September 29 drug deal was located in the car.
Larry Kopp, Lisa Martinez, and Joseph Lira pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that NAVA will likely serve all of the time imposed by the court. In the federal system, NAVA does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Billings Big Sky Safe Streets Task Force and the Federal Bureau of Investigation.
Tahawwur Rana Sentenced to 14 Years in Prison for Supporting Pakistani Terror Group and Terror Plot in DenmarkRead the Press Release
A Pakistani native who operated a Chicago-based immigration business was sentenced today to 14 years in prison for conspiracy to provide material support to a terrorist plot in Denmark and providing material support to Lashkar e Tayyiba, a terrorist organization operating in Pakistan that was responsible for the November 2008 attacks in Mumbai, India. The defendant, Tahawwur Hussain Rana, was convicted of the charges on June 9, 2011, following a three-week trial in U.S. District Court in Chicago.
Rana, 52, a Canadian citizen, was ordered to serve 14 years, followed by five years of supervised release by U.S. District Judge Harry Leinenweber. “This certainly was a dastardly plot,” Judge Leinenweber said in imposing the sentence.
Rana was convicted of conspiracy to provide material support to a plot from October 2008 to October 2009 to commit murder in Denmark, including a horrific plan to behead employees of Morgenavisen Jyllands-Posten, a Danish newspaper, and throw their heads on to the street in Copenhagen, as well as providing material support, from late 2005 to October 2009, to Lashkar, a militant jihadist organization operating in Pakistan. Lashkar planned and carried out the November 2008 attacks in Mumbai that killed more than 160 people, including six Americans, before initially planning the terrorist attack in Denmark in retaliation for the newspaper’s publication of cartoons depicting the Prophet Mohammed. Rana was acquitted of conspiracy to provide material support to the Mumbai attacks.“This serious prison sentence should go a long way towards convincing would-be terrorists that they can’t hide behind the scenes, lend support to the violent aims of terrorist organizations, and escape detection and punishment,” said Gary S. Shapiro, Acting U.S. Attorney for the Northern District of Illinois.
“Today’s sentence demonstrates that, just as vigorously as we pursue terrorists and their organizations, we will also pursue those who facilitate their violent plots from a safe distance. As established at trial, Tahawwur Rana provided critical support to David Headley and other terrorists from his base in the United States, knowing they were plotting attacks overseas. I thank the many agents, analysts and prosecutors who helped bring about today’s result,” said Lisa Monaco, Assistant Attorney General for National Security.
“It is my hope that the judge’s decision today sends a message to those who plot attacks and those who provide the support to make the plots possible, both here and abroad, that you will be held accountable for your actions. Our mission, detecting and preventing terrorist acts and eliminating the enabling support provided by terrorist sympathizers, remains our top priority,” said Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the FBI.
Rana is one of two defendants to be convicted, among a total of eight defendants who have been indicted, in this case since late 2009. Co-defendant David Coleman Headley, 52, pleaded guilty in March 2010 to 12 terrorism charges, including aiding and abetting the murders of the six Americans in Mumbai. Headley, who is scheduled to be sentenced next Thursday, has cooperated with the government since he was arrested in October 2009, and testified as a government witness at Rana’s trial. He is facing a maximum of life in prison
The evidence at Rana’s trial showed that he knew he was assisting a terrorist organization and murderers, knew their violent goals, and readily agreed to play an essential role in achieving their aims. The government contended that Rana knew the objective of his co-conspirators was to retaliate against and influence the Danish government for its perceived role in the publication of the Prophet Mohammed cartoons, and he knew that the goal of Lashkar was to retaliate against and influence the Indian and Danish governments and intended that the support he provided – enabling Headley’s activities – would be used toward that purpose.
In a post-arrest statement in October 2009, Rana admitted knowing that Lashkar was a terrorist organization and that Headley had attended training camps that Lashkar operated in Pakistan. Headley testified that he attended the training camps on five separate occasions between 2002 and 2005. In late 2005, Headley received instructions from members of Lashkar to travel to India to conduct surveillance, which he did five times leading up to the Mumbai attacks three years later that killed more than 160 people and wounded hundreds more.
In the early summer of 2006, Headley and two Lashkar members discussed opening an immigration office in Mumbai as a cover for his surveillance activities. Headley testified that he traveled to Chicago and advised Rana, his long-time friend since the time they attended high school together in Pakistan, of his assignment to scout potential targets in India. Headley obtained approval from Rana, who owned First World Immigration Services in Chicago and elsewhere, to open a First World office in Mumbai as cover for his activities. Rana directed an individual associated with First World to prepare documents supporting Headley’s cover story, and advised Headley how to obtain a visa for travel to India, according to Headley’s testimony, as well as emails and other documents that corroborated his account.
Between Nov. 26-28, 2008, 10 attackers trained by Lashkar carried out multiple assaults with firearms, grenades and improvised explosive devices against multiple targets in Mumbai, some of which Headley had scouted in advance.Regarding the Denmark terror plot, Headley testified that in the fall of 2008, he met with a Lashkar member in Karachi, Pakistan, and was instructed to conduct surveillance of the Jyllands-Posten newspaper offices in Copenhagen and Aarhus.
In late 2008 and early 2009, after reviewing with Rana how he had performed surveillance of the targets attacked in Mumbai, Headley testified that he advised Rana of the planned attack in Denmark and his intended travel there to conduct surveillance of the newspaper’s facilities. Headley obtained Rana’s approval and assistance to identify himself as a representative of First World and gain access to the newspaper’s offices by falsely expressing interest in placing advertising for First World in the newspaper. Headley and Rana caused business cards to be made that identified Headley as a representative of the Immigration Law Center, the business name of First World, according to the evidence at trial.
The trial evidence also included transcripts of recorded conversations, including those in September 2009, when Headley and Rana spoke about reports that a co-defendant, Ilyas Kashmiri, an alleged Pakistani terrorist leader, had been killed and the implications of his possible death for the plan to attack the newspaper. In other conversations, Rana told Headley that the attackers involved in the Mumbai attacks should receive Pakistan’s highest posthumous military honors. In the late summer of 2009, Rana and Headley agreed that funds that had been provided to Rana could be used to fund Headley’s work in Denmark, and the evidence showed that Rana, pretended to be Headley in sending an email to the Danish newspaper.
The government is being represented by Assistant U.S. Attorneys Daniel Collins and Sarah E. Streicker, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Federal prosecutors in Los Angeles have worked on a broader investigation of the Mumbai attacks. The investigation has been conducted by the Chicago Joint Terrorism Task Force, led by the Chicago Office of the Federal Bureau of Investigation, with assistance from FBI offices in Los Angeles, New York and Washington, D.C., as well as both U.S. Customs and Border Protection and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.Tahawwur Rana Sentenced to 14 Years in Prison for Supporting Pakistani Terror Group and Terror Plot in DenmarkRead the Press Release
CHICAGO — A Pakistani native who operated a Chicago-based immigration business was sentenced today to 14 years in prison for conspiracy to provide material support to a terrorist plot in Denmark and providing material support to Lashkar e Tayyiba, a terrorist organization operating in Pakistan that was responsible for the November 2008 attacks in Mumbai, India. The defendant, TAHAWWUR HUSSAIN RANA, was convicted of the charges on June 9, 2011, following a three-week trial in U.S. District Court.
Rana, 52, a Canadian citizen, was ordered to serve 14 years, followed by five years of supervised release by U.S. District Judge Harry Leinenweber. “This certainly was a dastardly plot,” Judge Leinenweber said in imposing the sentence.
Rana was convicted of conspiracy to provide material support to a plot from October 2008 to October 2009 to commit murder in Denmark, including a horrific plan to behead employees of Morgenavisen Jyllands-Posten, a Danish newspaper, and throw their heads on to the street in Copenhagen, as well as providing material support, from late 2005 to October 2009, to Lashkar, a militant jihadist organization operating in Pakistan. Lashkar planned and carried out the November 2008 attacks in Mumbai that killed more than 160 people, including six Americans, before initially planning the terrorist attack in Denmark in retaliation for the newspaper’s publication of cartoons depicting the Prophet Mohammed. Rana was acquitted of conspiracy to provide material support to the Mumbai attacks.
“This serious prison sentence should go a long way towards convincing would-be terrorists that they can’t hide behind the scenes, lend support to the violent aims of terrorist organizations, and escape detection and punishment,” said Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois.
“Today’s sentence demonstrates that, just as vigorously as we pursue terrorists and their organizations, we will also pursue those who facilitate their violent plots from a safe distance. As established at trial, Tahawwur Rana provided critical support to David Headley and other terrorists from his base in the United States, knowing they were plotting attacks overseas. I thank the many agents, analysts and prosecutors who helped bring about today’s result,” said Lisa Monaco, Assistant Attorney General for National Security.
“It is my hope that the judge’s decision today sends a message to those who plot attacks and those who provide the support to make the plots possible, both here and abroad, that you will be held accountable for your actions. Our mission, detecting and preventing terrorist acts and eliminating the enabling support provided by terrorist sympathizers, remains our top priority,” said Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Rana is one of two defendants to be convicted, among a total of eight defendants who have been indicted, in this case since late 2009. Co-defendant David Coleman Headley, 52, pleaded guilty in March 2010 to 12 terrorism charges, including aiding and abetting the murders of the six Americans in Mumbai. Headley, who is scheduled to be sentenced next Thursday, has cooperated with the Government since he was arrested in October 2009, and testified as a Government witness at Rana’s trial. He is facing a maximum of life in prison.
The evidence at Rana’s trial showed that he knew he was assisting a terrorist organization and murderers, knew their violent goals, and readily agreed to play an essential role in achieving their aims. The government contended that Rana knew the objective of his co-conspirators was to retaliate against and influence the Danish government for its perceived role in the publication of the Prophet Mohammed cartoons, and he knew that the goal of Lashkar was to retaliate against and influence the Indian and Danish governments and intended that the support he provided – enabling Headley’s activities – would be used toward that purpose.
In a post-arrest statement in October 2009, Rana admitted knowing that Lashkar was a terrorist organization and that Headley had attended training camps that Lashkar operated in Pakistan. Headley testified that he attended the training camps on five separate occasions between 2002 and 2005. In late 2005, Headley received instructions from members of Lashkar to travel to India to conduct surveillance, which he did five times leading up to the Mumbai attacks three years later that killed more than 160 people and wounded hundreds more.
In the early summer of 2006, Headley and two Lashkar members discussed opening an immigration office in Mumbai as a cover for his surveillance activities. Headley testified that he traveled to Chicago and advised Rana, his long-time friend since the time they attended high school together in Pakistan, of his assignment to scout potential targets in India. Headley obtained approval from Rana, who owned First World Immigration Services in Chicago and elsewhere, to open a First World office in Mumbai as cover for his activities. Rana directed an individual associated with First World to prepare documents supporting Headley’s cover story, and advised Headley how to obtain a visa for travel to India, according to Headley’s testimony, as well as emails and other documents that corroborated his account.
Between Nov. 26-28, 2008, 10 attackers trained by Lashkar carried out multiple assaults with firearms, grenades and improvised explosive devices against multiple targets in Mumbai, some of which Headley had scouted in advance.
Regarding the Denmark terror plot, Headley testified that in the fall of 2008, he met with a Lashkar member in Karachi, Pakistan, and was instructed to conduct surveillance of the Jyllands-Posten newspaper offices in Copenhagen and Aarhus.
In late 2008 and early 2009, after reviewing with Rana how he had performed surveillance of the targets attacked in Mumbai, Headley testified that he advised Rana of the planned attack in Denmark and his intended travel there to conduct surveillance of the newspaper’s facilities. Headley obtained Rana’s approval and assistance to identify himself as a representative of First World and gain access to the newspaper’s offices by falsely expressing interest in placing advertising for First World in the newspaper. Headley and Rana caused business cards to be made that identified Headley as a representative of the Immigration Law Center, the business name of First World, according to the evidence at trial.
The trial evidence also included transcripts of recorded conversations, including those in September 2009, when Headley and Rana spoke about reports that a co-defendant, Ilyas Kashmiri, an alleged Pakistani terrorist leader, had been killed and the implications of his possible death for the plan to attack the newspaper. In other conversations, Rana told Headley that the attackers involved in the Mumbai attacks should receive Pakistan’s highest posthumous military honors. In the late summer of 2009, Rana and Headley agreed that funds that had been provided to Rana could be used to fund Headley’s work in Denmark, and the evidence showed that Rana, pretended to be Headley in sending an email to the Danish newspaper.
The government is being represented by Assistant U.S. Attorneys Daniel Collins and Sarah E. Streicker, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Federal prosecutors in Los Angeles have worked on a broader investigation of the Mumbai attacks. The investigation has been conducted by the Chicago Joint Terrorism Task Force, led by the Chicago Office of the Federal Bureau of Investigation, with assistance from FBI offices in Los Angeles, New York and Washington, D.C., as well as both U.S. Customs and Border Protection and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
St. Paul Felon Indicted for Possessing .22-caliber Revolver, Ammunition, MethamphetamineRead the Press Release
MINNEAPOLIS—Recently in federal court, a 25-year-old St. Paul felon was indicted for possessing a .22-caliber revolver, ammunition, and methamphetamine. On January 15, 2013, Christopher Lee Rousseau was charged with one count of being an armed career criminal in possession of a firearm, one count of being an armed career criminal in possession of ammunition, one count of carrying a firearm in relation to a drug-trafficking crime, and one count of possession with intent to distribute methamphetamine.
The indictment alleges that on December 3, 2012, Rousseau possessed the revolver, two rounds of .22-caliber ammunition, and methamphetamine. Because he is a felon, Rousseau is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in Ramsey County include aiding and abetting second-degree burglary (2010) and fleeing police in a motor vehicle (2011). In addition, Rousseau was convicted in Pine County for fleeing police in a motor vehicle in 2007 and, in Dakota County, for third-degree burglary in 2010. Because these convictions constituted crimes of violence, Rousseau is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm and/or ammunition.According to a law enforcement affidavit filed in the current case, at approximately 12:30 a.m. on December 3, 2012, officers stopped Rousseau on a traffic violation near the intersection of U.S. Highway 61 and Warner Road. He was arrested for driving after cancellation of license. During a search of Rousseau’s person, police found the ammunition and $385. A search of the vehicle led to the recovery of the gun and the methamphetamine.
If convicted, Rousseau faces a potential maximum penalty of 20 years in prison on the methamphetamine possession count, and a mandatory minimum penalty of five years on the carrying a firearm count, as well as the 15-year mandatory minimum penalty on each of the two armed career criminal counts. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the St. Paul Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.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.
Spiro Baltatzidis, Former Founder and Chief Executive Officer of Starwich, Inc., Pleads Guilty in Manhattan Federal Court to Wire FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Keith Milke, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that SPIRO BALTATZIDIS, the former Founder and Chief Executive Officer of Starwich, Inc. (“Starwich”), pled guilty today in Manhattan federal court to a one-count Information charging him with wire fraud. BALTATZIDIS pled guilty before United States District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara stated: “Spiro Baltatzidis engaged in an elaborate charade to dupe a financial institution into lending him many millions of dollars – creating fraudulent bank statements, and doctoring emails. Fortunately, the financial institution did not ultimately lend him the $25 million he was seeking, his charade was discovered, and he has acknowledged his guilt.”
USPIS Inspector-in-Charge Keith Milke said: “Mr. Baltatzidis’ attempt to defraud investors is a classic case of greed overcoming honest business practices. Postal Inspectors are steadfast in investigating and stamping out fraud, keeping the US Mail and all modes of communication safe and secure for the American public.”
According to the Information and statements made in today’s plea proceeding:
Starwich was a privately held corporation headquartered in New York that engaged in the food services business, and more specifically, the upscale specialty sandwich business. Starwich operated a micro-chain of restaurants located around Manhattan and maintained multiple corporate bank accounts (collectively, the “Starwich Bank Accounts”) at Citibank, N.A. (“Citibank”) into which investor funds were deposited.
From the summer of 2007 through May 2008, BALTATZIDIS solicited a $25 million investment from a financial institution (the “Victim Financial Institution”). BALTATZIDIS represented that the purpose of the investment was to expand the business operations of Starwich. In connection with the investment solicitation, the Victim Financial Institution conducted due diligence to determine whether Starwich was a prudent investment opportunity. This due diligence included, among other things, a review of Starwich’s financials. Accordingly, at the Victim Financial Institution’s request, on September 16, 2007, it received a fax from Starwich containing Citibank statements for one of the Starwich Bank Accounts. The first statement purported to cover the period December 1, 2006 through December 31, 2006, and reflected an ending balance of approximately $450,000. Another statement for the same account purported to cover the period June 1, 2007 through June 30, 2007, reflected an ending balance of approximately $1.2 million – an increase in the ending balance of well over 100% in the six-month period between December 2006 and June 2007.
Based in part on the fake bank statement that showed a balance of approximately $1.2 million in the account as of June 30, 2007, the Victim Financial Institution entered into a Memorandum of Terms (“the Memorandum”) with Starwich on November 2007. The Memorandum detailed the principal terms of a proposed $25 million investment in shares of Starwich to be divided into three stages of disbursements – $5 million, $10 million, and $10 million, respectively – provided that Starwich met certain conditions. However, the bank statements provided to the Victim Financial Institution were in fact fake. The actual bank account records from Citibank showed a balance of approximately $400 as of December 31, 2006, and approximately $200 as of June 30, 2007.
In furtherance of its due diligence, the Victim Financial Institution requested a further update of Starwich’s financials and in response to this request, BALTATZIDIS forwarded an email chain between BALTATZIDIS and an employee of Citibank (the “Bank Employee”) on November 15, 2007. The content of the email chain forwarded to the Victim Financial Institution (the “Victim Financial Institution Email”) reflected that BALTATZIDIS asked the Bank Employee for the balance of one of the Starwich accounts for the period ending September 30, 2007, and the Bank Employee purportedly responded that the account’s current balance was approximately $1.3 million.
In fact, the email chain forwarded by BALTATZIDIS to the Victim Financial Institution on November 15, 2007, was materially altered from its original version (the “Authentic Citibank Email”). Specifically, in the Authentic Citibank Email, the Bank Employee wrote that the account’s current balance was “-$3,963.93,” whereas the Victim Financial Institution Email reflected a balance of “$1,317,963.93.” In addition, the Authentic Citibank Email included a copy of the account statement for the period ending September 30, 2007, whereas the Victim Financial Institution Email omitted the account statement.
From November 15, 2007 through May 2008, BALTATZIDIS and the Victim Financial Institution continued their discussions regarding the solicited financial investment in Starwich. By May 2008, however, the Victim Financial Institution decided against investing with Starwich and ended its discussions with BALTATZIDIS. In August 2008, Starwich filed for bankruptcy.
BALTATZIDIS, 37, faces a maximum prison term of 20 years and a maximum fine of the greater of $250,000 or twice the gross pecuniary gain or loss resulting from the crime. He is scheduled to be sentenced by Judge Abrams on April 23, 2013, at 3:00 p.m.
Mr. Bharara praised the investigative work of the United States Postal Inspection Service.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Julian J. Moore is in charge of the prosecution.
U.S. v. Spiro Baltatzidis Information
Seven Arrested, Charged with $22 Million Detroit-area<br /> Home Health Care Fraud SchemeRead the Press Release
Six Detroit-area residents and one Chicago-area resident were arrested today by federal agents on charges arising from the ongoing investigation into an alleged $22 million home health care fraud scheme. The indictment was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; Special Agent in Charge Lamont Pugh III of the Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office; and Special Agent in Charge Erick Martinez of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office.
According to the 18-count indictment returned Jan. 15, 2013, and unsealed today, the seven individuals allegedly participated in a Medicare fraud scheme operating out of four Oakland County, Mich., home health agencies claiming to provide in-home health services: Royal Home Health Care Inc., Prestige Home Health Services Inc., Platinum Home Health Services Inc. and Empirical Home Health Care Inc. The indictment alleges Medicare paid the agencies approximately $22 million for fraudulently reported services since August 2008.
In addition to the arrests, law enforcement agents suspended Medicare payments to four health care companies associated with the alleged scheme.Muhammad Aamir, 42; Usman Butt, 39; Hemal Bhagat, 31; Syed Shah, 50; Tariq Tahir, 46; and Raquel Ellington, 56, of the Detroit area; and Tayyab Aziz, 43, from the Chicago area, each are charged with conspiracy to commit health care fraud. All but Aziz are also charged with health care fraud and with conspiracy to violate the Anti-Kickback Statute. Butt, Bhagat, Shah and Aziz are additionally charged with conspiracy to commit money laundering.
According to the indictment, Aamir and Butt owned and operated Prestige; Butt, Bhagat and Shah owned and operated Royal; and Aamir owned and operated Platinum and Empirical – all of which allegedly claimed to provide home health therapy services to Medicare beneficiaries that were unnecessary and/or were never performed. The indictment alleges Tahir and Ellington recruited Medicare beneficiaries, paying them kickbacks for their Medicare information and signatures on documents that detailed physical therapy and/or skilled nursing services that were either never rendered or not medically necessary. Aamir, Butt, Bhagat, Shah, Tahir and Ellington are also charged with conspiring to pay kickbacks to Tahir and Ellington for their recruiting work. Butt, Bhagat, Shah and Aziz allegedly conspired to launder the proceeds of the scheme.
The charges of health care fraud conspiracy and health care fraud each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison and a $25,000 fine. The charge of conspiracy to commit money laundering carries a maximum potential penalty of 20 years in prison and a $500,000 fine.
An indictment is merely a charge and defendants are presumed innocent unless nad until proven guilty.The case is being prosecuted by Trial Attorney Niall M. O’Donnell of the Criminal Division’s Fraud Section. The investigation is conducted jointly by the FBI and HHS-OIG, as part of the Medicare Fraud Strike Force, and IRS-CI, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, strike force operations in nine locations have charged more than 1,480 defendants who collectively have falsely billed the Medicare program for more than $4.8 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Related Materials:
Aamir, Muhammed et al. (Prestige) Indictment
Sentences for January 11 - 14, 2013Read the Press Release
Ponciano Lucero-Acuna, 31, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 14, 2013, for illegal re-entry of a previously deported alien into the United States. Lucero-Acuna was arrested in Natrona County, Wyoming. He received six months of imprisonment, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Roberto Garcia-Martinez, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 14, 2013, for illegal re-entry of a previously deported alien into the United States. Garcia-Martinez was arrested in Laramie County, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Robert Michael Sides, 39, of West Valley City, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 14, 2013, for possession of 91.8 grams of methamphetamine with intent to distribute, and aiding and abetting. Sides was arrested in Uinta County, Wyoming. He received 120 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Mark Hostetler, 38, of Ohio, was sentenced Chief Federal District Court Judge Nancy D. Freudental on January 14, 2013, for being a felon in possession of a firearm. Hostetler came into custody via a Writ. He received 33 months of imprisonment, concurrent with a state sentence, and will serve three years of supervised release after serving his prison term. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ivan Arellano-Cruz, aka Manuel Covarrubias-Cervantes, 33, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 14, 2013, for illegal re-entry of a previously deported alien into the United States. Arellano-Cruz was arrested in Casper, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Justin Eberhardt, 21, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 11, 2013, for attempted interference with interstate commerce by means of robbery and aiding and abetting and for use of a firearm during and in relation to a crime of violence and aiding and abetting. Eberhardt was arrested in Casper, Wyoming. He received 27 months imprisonment as to Count 1, to be followed by a mandatory 120 months imprisonment, to be served consecutive to Count 1. The Court also ordered the defendant to pay a $200.00 special assessment and a $300.00 fine. Upon release from imprisonment the defendant will serve a five-year term of supervised release, per count, concurrently. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Timothy Adam Baum, 50, of Sheridan, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 11, 2013, for possession of child pornography. Baum was arrested in Sheridan, Wyoming. He received 200 months of imprisonment to be followed by a life-term of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.Jose Ramon Troches-Caballero, 35, of Honduras, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 11, 2013, for illegal re-entry of a previously deported alien into the United States. Troches-Cabellero was arrested in Casper, Wyoming. He received time served, plus ten days, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Scottdale Man Pleads Guilty in Crack Cocaine Distribution SchemeRead the Press Release
PITTSBURGH - A resident of Scottdale, Pa., pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Jeremy Alan Gray, 22, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that from Aug. 25, 2012, and continuing thereafter to Aug. 27, 2012, Gray conspired with others to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance.
Judge Cohill scheduled sentencing for Thursday May 16, 2013 at 11:3 a.m. The law provides for a total sentence of forty (40) years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Gray on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI) conducted the investigation that led to the prosecution of Gray.