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26 February 2013
Fairbanks Man indicted for bank robberyRead the Press Release
Anchorage, Alaska- U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man was indicted by the federal grand jury in Anchorage, Alaska, for bank robbery.
Zack T. Rose, 22, of Fairbanks, Alaska, was charged by the federal grand jury with robbing the MAC Federal Credit Union, 10th Avenue branch, in Fairbanks on February 4, 2013.
The maximum penalty for robbery of a federal credit union is imprisonment for up to 20 years and a fine of $250,000. Rose is currently in custody at the Fairbanks Correctional Center and no date has been set for the arraignment.
Ms. Loeffler commends the City of Fairbanks Police Department and the Federal Bureau of Investigation for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubtEmmett Man Charged in BLM FireRead the Press Release
BOISE – Matthew Williams, 23, of Emmett, Idaho, pleaded not guilty today in United States District Court to the charge of Public Land Set Afire, U.S. Attorney Wendy J. Olson announced. A federal grand jury in Boise indicted Williams on February 12, 2013.
According to court documents, Williams is accused of illegally setting a fire on federal public lands managed by the Bureau of Land Management (BLM) in Gem County on August 20, 2011. The indictment alleges that the wildfire burned a total of 315 acres – 221 BLM acres and 94 private land acres – southwest of Emmett on Freezeout Hill, near mile post 11 on State Highway 16.
The charge is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
A trial is set for April 22, 2013, before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the Bureau of Land Management.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Easthampton Man Pleads Guilty to Cocaine ChargesRead the Press Release
BOSTON - An Easthampton man was convicted yesterday in U.S. District Court in Springfield of conspiring to distribute cocaine.
Joaquin Carrillo, a/k/a Chito, 31, pleaded guilty before U.S. District Judge Michael A. Ponsor to conspiracy to distribute cocaine. Sentencing is scheduled for June 5, 2013. The maximum sentence under the statute is 40 years in prison, followed by five years of supervised release and a $250,000 fine.
Between July 31, 2010 and May 2, 2011, Carrillo and others imported over five kilograms of cocaine into the United States and distributed it in Western Massachusetts over five kilograms of cocaine.
On Feb. 15, 2013, co-defendant Pablo Drullard pleaded guilty and is scheduled to be sentenced on May 13, 2013.
United States Attorney Carmen M. Ortiz, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration Boston Field Division, and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.
Drug User Admits Illegally Possessing Semi-Automatic WeaponRead the Press Release
JOHNSTOWN, PA. - A resident of Bolivar, Pa., pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
David McGinnis, 20, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 6, 2012, McGinnis, while an unlawful user of heroin, possessed a Hi-Point, Model JCP, 40 caliber semi-automatic pistol. Federal law prohibits possessing a firearm while unlawfully using a controlled substance, or when addicted to a controlled substance.
Judge Gibson scheduled sentencing for July 2, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of McGinnis.
According to Mr. Hickton, McGinnis is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Detroit Man Indicted by Federal Grand Jury on Illegal Firearm Possession ChargesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin today announced that a Detroit man was indicted by a federal grand jury sitting in Huntington for being a felon in possession of firearms. According to a two-count indictment, Thomas Ray III, 43, of Detroit, allegedly possessed a loaded firearm Glock .40 caliber pistol on February 5, 2013 near Huntington, W.Va. The indictment also alleges that on February 5, 2013, Ray possessed a loaded 12-gauge shotgun, a .22 caliber rifle and an AR-15 assault rifle near Huntington.
Ray was previously convicted of two felonies on February 28, 2012 in the Circuit Court of Will County, Illinois for forcible detention/armed; and, giving a false bomb/gas alarm and did not have his rights to possess a firearm restored.
The defendant faces up to 10 years in prison if convicted.
The investigation was conducted by the United States Marshals Service. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Cynthia Suratos Lorica Sentenced for Mortgage Fraud and Tax EvasionRead the Press Release
OAKLAND - Cynthia Suratos Lorica was sentenced yesterday to 18 months in prison and ordered to pay more than $1 million in restitution for bank fraud and tax evasion, United States Attorney Melinda Haag announced.
Ms. Lorica, age 51, of Hayward, California, waived indictment and pleaded guilty to an information charging her with bank fraud and tax evasion. According to the plea agreement, Ms. Lorica admitted to participating in a fraudulent scheme to obtain money from Washington Mutual Bank in 2006 and 2007 by making false statements in loan applications secured by real property. During that time period, she was the owner and Chief Executive Officer of All Ways Financial Services, Inc., a financial services company. She was also an officer of Absolute Value Financial, Inc. Absolute Value was licensed by the State of California to originate mortgage loans and to engage in real estate transactions. Both businesses were located at 3900 Newpark Mall Road, Suite 201, Newark, California. Ms. Lorica was involved in the preparation and submission of loan applications to various federally insured financial institutions and other lending institutions.
Ms. Lorica also admitted to evading taxes on income she received in 2006 and 2007. She admitted to substantially under-reporting her gains from the sale of real estate as well as under-reporting her income from All Ways Financial and claiming a mortgage interest deduction that she was not entitle to receive.
The sentence was handed down by Chief U.S. District Court Judge Claudia Wilken following a guilty plea on one count in violation of 18 U.S.C. § 1344(2) and one count in violation of 26 U.S.C. § 7201. Judge Wilken also sentenced the defendant to a three year period of supervised release. The defendant will begin serving the sentence on March 27, 2013.
This prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
Chicago Man Convicted of Multimillion Dollar Investment Fraud SchemeRead the Press Release
SAN FRANCISCO - Michael Steven Banuelos (aka Ferrari Mike, aka Mike Banuelos) pleaded guilty today in federal court in San Francisco to running a three-year investment fraud scheme through which he fraudulently obtained more than $2 million, United States Attorney Melinda Haag announced.
In pleading guilty, Banuelos admitted that he falsely told the business manager of a musical group that Banuelos had arranged a concert tour during which the musical group would open for a famous recording artist. In addition, Banuelos falsely told this business manager that Banuelos had negotiated a multimillion contract with a major recording label for the rights to the music group, and Banuelos produced phony documentation of that alleged deal. Banuelos also used false statements and phony documents to lure in additional investors in this purported music deal and other non-existent deals regarding musical artists. Several of the investors in these purported deals lived in the Bay Area.
Banuelos admitted that of the more than $2 million dollars he obtained through this scheme, he spent the overwhelming majority of it on personal expenses. Those expenses included payments to his ex-wife, scores of thousands of dollars on car payments, and thousands of dollars paid for a country club membership and dues.
Finally, Banuelos admitted that after the music deal scam ended, he defrauded other individuals out of an additional $217,000. In connection with this scheme, Banuelos falsely claimed that he was a successful money manager whom one client had entrusted with $45 million for investment. Banuelos provided false documentation of these claims, too, resulting in additional victims providing more money to Banuelos in the mistaken belief it would be invested on their behalf.
Banuelos, 42, was indicted by a federal grand jury on July 12, 2012. He was charged with twelve counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of money laundering, in violation of Title 18, United States Code, Section 1957. He was arrested on July 26, 2012, in Chicago, where he had lived for the preceding few months. Prior to moving to Chicago, he had lived in and around Atlanta, Georgia. He has remained in federal custody since his arrest.
The sentencing of Mr. Banuelos is scheduled for May 21, 2013, before Judge William H. Alsup in San Francisco. The maximum statutory penalty for a violation of wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, plus restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.
Caronna Pleads Guilty to Mail Fraud, Insurance Fraud, and Money LaunderingRead the Press Release
Memphis, TN – Joseph G. Caronna, 48, of Cordova, TN, pleaded guilty today to four counts related to defrauding clients of his investment and insurance business, announced U.S. Attorney Edward L. Stanton III.
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Caronna pleaded to one count of mail fraud, two counts of insurance fraud and embezzlement, and one count of money laundering. He could receive up to 50 years in prison, a fine of up to one million dollars, three years supervised release, and a special assessment of $400. His sentencing is set for May 28, 2013, before U.S. District Judge S. Thomas Anderson.
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As outlined in the indictment, beginning in or about 2001 and continuing up to and including May 31, 2009, Caronna systematically embezzled money from insurance customers of his business, Joe Caronna Investments. He had the money diverted to private mail facilities where he obtained mail boxes in the names of his clients. The total loss to the victims was approximately $788,144.53.
It was revealed during his plea hearing that Caronna used the proceeds of his crimes to finance the purchase of a collection of sports cars and vehicles, including a 1971 Chevrolet Chevelle, a 1969 Corvette, a 1983 Porsche 911, a 1985 Porsche 930, a 1980 Chevrolet Corvette, a 2006 Hummer, and a 2002 Honda Blue Shadow motorcycle. He agreed to the forfeiture of those vehicles during today’s plea hearing.
“Joe Caronna abused his clients’ trust and stole from them for his own gratification,” said U.S. Attorney Stanton. “Today’s guilty plea demonstrates to his victims that he is being held accountable and that justice will be served.”
This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service and the Bartlett Police Department. Larry Laurenzi represented the government.California Man Sentenced for Luggage Loaded with Meth at Train StationRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old Brawley, CA, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Hercel Vernoy Shultz, III, pleaded guilty on Sep. 5, 2012, to possession with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, on Feb. 24, 2012, Shultz was arrested after he was found in possession of over 400 grams of methamphetamine which was in his luggage at the Amtrak train station in Longview, Texas. Before his arrest, Shultz had been traveling from Yuma, Arizona to Longview.
Shultz was indicted by a federal grand jury on Mar. 8, 2012 and charged with federal drug trafficking violations
This case was investigated by the Drug Enforcement Administration, DEA Task Force, Upshur County Sheriff’s Office, Smith County Precinct 5 Constable’s Office and the Longview Police Department. This case was prosecuted by Assistant U.S. Attorney Allen Hurst.Burleson, Texas, Man Admits Committing Armed Robbery of Bank of America in Crowley, TexasRead the Press Release
FORT WORTH, Texas — Brett Joseph Barnes, 27, of Burleson, Texas, appeared in federal court on Friday and pleaded guilty to one count of bank robbery, admitting he robbed the Bank of America on South Crowley Road, in Crowley, Texas, in September 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Barnes faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for June 7, 2013, before Judge McBryde.
According to documents filed in the case, on Wednesday, September 16, 2009, an individual, later identified as Barnes, entered the Bank of America, located at 908 South Crowley Road, and holding what appeared to be a semi-automatic pistol, told everyone to get down and give him all the money. Barnes jumped the teller counter, approaching several tellers, and pointed the pistol at them, demanding and receiving money. After receiving the money, Barnes jumped back over the counter and ran from the bank.
When law enforcement searched the area, they discovered clothing items, including a bandana and sunglasses, near a residence in the direction in which Barnes fled. These items, which were identical to what the robber wore, were analyzed by the Tarrant County Medical Examiner’s Office and the DNA profile was entered into the Combined DNA Index System (CODIS). In January 2012, Barnes was located in the Dallas County Jail; his DNA and the DNA profile from the sunglasses and bandana matched.
The investigation was conducted by the Crowley and Burleson Police Departments and the FBI. Assistant U.S. Attorney John Bradford is in charge of the prosecution.
Bristol Residents Sentenced to Prison for Drug Conspiracy and Gun ChargesRead the Press Release
ABINGDON, VIRGINIA-- United States Attorney Timothy J. Heaphy announced today that six members of a crack cocaine distribution conspiracy have been sentenced in the United States District Court for the Western District of Virginia in Abingdon.
Christopher Landon Avery, 29, of Bristol, Va., was sentenced late last week to 25 years in prison following his earlier pleas of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base, two counts of possession of a firearm by a convicted felon; and one count of possession of a firearm in furtherance of a drug trafficking offense.
Other members of the conspiracy have previously been sentenced to terms of imprisonment:
Damon Dock a/k/a “Corky” 39, of Bristol, Va., was sentenced to 11 years in prison following a jury trial in which he was found guilty of one count of conspiracy to distribute 280 grams or more of cocaine base.
Damon Dock, 20, of Bristol, Va., was sentenced to 20 years in prison following a jury trial in which he was found guilty of one count of conspiracy to distribute 280 grams or more of cocaine base.
Maggie Welch a/k/a Maggie Graybeal, 27, of Bristol, Va., was sentenced to 30 months in prison following her plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base, and one count of possession of a firearm in furtherance of a drug trafficking offense.
Hope Leonard, 32, of Bristol, Va., was sentenced to three years in prison following her earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.Chris Berry, 25, of Bristol, Va., was sentenced to five years in prison following his earlier plea of guilty to one count of possession of stolen firearms and one count of possession of a firearm by a convicted felon.
According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary Lee, Chris Avery, a five-time convicted drug trafficker, supplied Welch, Dock, Dock, and Leonard with large quantities of crack cocaine which they then distributed in Bristol, Virginia and Bristol, Tennessee. Berry used stolen items, including firearms, taken from burglaries in Washington County and Russell County and traded the items to Damon Dock for quantities of cocaine base.
On May 20, 2011, Dock, Dock, Leonard and Berry were arrested in Bristol, Tennessee in a motel room in the possession of crack cocaine and a firearm. On June 7, 2011, Avery and Welch were arrested in Johnson City, Tennessee and found to be in possession of an ounce of crack cocaine, $951 in United States currency, and a 9mm handgun. Additionally, Avery was involved in a shooting that occurred on Pace Drive in Bristol, Virginia, on April 7, 2011, following an altercation with Welch’s ex-husband. Avery threatened Welch’s ex-husband with a 9mm handgun and fired three shots at him.
The investigation of this case was conducted by the Washington County Sheriff’s Office, Bristol, Virginia Police Department, Bristol, Tennessee Police Department, Johnson City, Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshals Service. The Washington County Commonwealth’s Attorney’s Office, the Sullivan County District Attorney’s Office, and the United States Attorney’s Office for the Eastern District of Tennessee assisted in the prosecution of this matter. Assistant United States Attorney’s Zachary T. Lee of the United States Attorney’s Office in Abingdon is prosecuting the case.Bridgeport Business Owner Admits to Filing False Tax ReturnRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA - A 46-year old Bridgeport, West Virginia, resident pleaded guilty to the filing a false tax return when he appeared in United States District Court in Clarksburg last week.
United States Attorney William J. Ihlenfeld, II, announced that JOHN R. MAZZA entered a plea of guilty to an Information charging him with “Filing a False Form 941 Tax Return.” By pleading guilty to the charge MAZZA admitted that in 2009 he failed to make
$18,195.51 in payroll tax deposits despite what had been indicated on the 941 Tax Return filed with the Internal Revenue Service by MAZZA.MAZZA, who conducted his business under the name of “Financial Healthcare Management” in Bridgeport, stipulated in his plea agreement that the total amount of taxes that he has failed to pay to the federal government since 2004 equals $316,518.40.
MAZZA, who is free on bond pending sentencing, faces up to three years imprisonment and a $250,000 fine.
The case was prosecuted by Assistant United States Attorney Randolph J. Bernard and was investigated by the Internal Revenue Service-Criminal Investigation Division.
Brandon Lee Brauhn Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 25, 2013, before U.S. District Judge Sam E. Haddon, BRANDON LEE BRAUHN, a 23-year-old resident of Cut Bank and an enrolled member of the Blackfeet Tribe, pled guilty to burglary. Sentencing has been set for June 10, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On October 6, 2012, the victim went to bed at approximately 7:00 p.m. at his residence in Seville, which is within the exterior boundaries of the Blackfeet Indian Reservation. The victim went to bed alone and no one lives in his apartment with him.
At approximately 2:00 a.m., on October 7, 2012, the victim awoke to the sound of his door being kicked open. The victim then heard BRAUHN's voice. The victim turned on his bedroom light, and he saw BRAUHN enter the bedroom. According to the victim, BRAUHN had a knife, which was described as a "steak knife with a serrated edge." BRAUHN then began yelling, "I should just ......... kill you." BRAUHN also told The victim to "stay away from my mom."
The victim and BRAUHN's mother had previously been in a romantic relationship. That relationship turned sour and ended in physical violence. When law enforcement ultimately arrived at the victim's residence, the victim's face was bloody, blood was present on the bed where the victim was sleeping, and a knife was discovered in the residence. The blood on the bed and knife was determined to be the blood of the victim Moreover, the victim had minor lacerations to his hands.
When law enforcement arrived, BRAUHN stated, "I did this because of my mom." BRAUHN also stated that he did not cut the victim, but that the victim must have stabbed himself.
BRAUHN faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Arizona Man Sentenced for Illegally Selling Golden Eagle and Other Migratory Bird PartsRead the Press Release
Patrick Scott, 47, of Tuba City, Arizona, was sentenced in Phoenix today to 30 days in prison, five months home confinement, one year supervised release and a $2,000 fine for illegally selling golden eagle and other migratory bird parts, a felony criminal offense, announced Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division, and John S. Leonardo, U.S. Attorney for the District of Arizona.
Scott pleaded guilty in December 2012 to a single felony count of violating the Migratory Bird Treaty Act. According to the plea agreement filed in U.S. District Court in Arizona and accepted by the court today, in January 2008, Scott used the internet to illegally offer to sell a golden eagle fan for $950. A covert law enforcement officer exchanged e-mails with Scott and ultimately agreed on a purchase price of $900. In February 2008, a second undercover law enforcement officer went to Scott’s house and bought the golden eagle fan by making an initial payment of $550 and later deposited the remainder directly into Scott’s bank account in two installments. The court also found today that between July 2007 and February 2009, Scott sold, purchased, and/or offered to sell other migratory bird parts, from species including bald eagle, red-tailed hawk, golden eagle, crested caracara, anhinga and rough-legged hawk.
Golden eagles and other migratory birds are protected by federal laws and regulations. Under the Migratory Bird Treaty Act, it is unlawful to possess, offer to sell, sell, offer to purchase or purchase any migratory bird or migratory bird part, or any product that consists, or is composed in whole or part, of any such bird or bird part. It is a federal enforcement priority to prosecute those who violate federal laws by engaging in commercial activities involving federally protected bird feathers or other bird parts. The objective of these enforcement efforts is to reduce and eliminate the unlawful taking of federally protected birds by prosecuting not only individuals who kill protected birds but also individuals who seek to profit from the commercialization of federally protected birds or their feathers or other parts. This helps to ensure that golden eagle and other bird populations remain healthy and sustainable.
The investigation was conducted by the U.S. Fish and Wildlife Service’s Office of Law Enforcement in coordination with the Navajo Fish and Wildlife Division of Natural Resources. The case was prosecuted by the Environmental Crimes Section of the Justice Department and the U.S. Attorney’s Office for the District of Arizona.
25 February 2013
Waukegan Grocer Sentenced to 2½ Years in Prison for Defrauding U.S. Food Stamp and Nutrition Programs of More Than $844,000Read the Press Release
CHICAGO — A former Waukegan grocer was sentenced to 2½ years in federal prison for defrauding government food stamp and nutrition programs of more than $844,000 over approximately two years during an undercover investigation. The defendant, KHALED SALEH, who, together with his wife and co-defendant, FATIMA SALEH, owned and operated Sunset Food Market in Waukegan, illegally exchanged cash on thousands of occasions with customers using food stamp cards and nutrition coupons. They also paid customers approximately half the value in cash for goods the customers purchased at other stores using their benefits, typically infant formula, and then re-sold the same items in their store at a substantially higher price.
Khaled Saleh, 48, was sentenced on Friday to 30 months in prison by U.S. District Judge Charles Norgle, who ordered Saleh to begin serving the sentence on May 31. Sentencing for Fatima Saleh, 37, was continued to March 22. The couple were arrested in May 2011 and both pleaded guilty last August to conspiracy to defraud government programs.
The government administratively forfeited $391,616 in cash and bank account funds that were seized from the Salehs, and Judge Norgle ordered Khaled Saleh to pay $453,013 in restitution for the remaining loss.
“The food stamp and WIC [Women, Infants and Children] programs are designed to help members of society, including children, obtain a more consistent and nutritious diet than they might otherwise enjoy. To [Khaled Saleh], however, these vital programs were nothing more than his personal ATM machine and a means to stock his shelves with cheaply obtained inventory,” the government argued at sentencing.
The Salehs participated in the Supplemental Nutrition Assistant Program, formerly known as the Food Stamp Program, and were authorized to accept LINK cards used by customers to purchase eligible food items. Between August 2009 and April 2011, the defendants redeemed more than $1.175 million in LINK funds and WIC coupons.
During the undercover investigation, an agent with the U.S. Department of Agriculture, Office of Inspector General, exchanged food stamp benefits for cash and used benefits to purchase formula at a discount store, which he then re-sold for half the price in cash to the Salehs on several occasions.
After executing a search warrant at the store in April 2011, Fatima Saleh went to her apartment and agents observed her leaving a short time later with a suitcase. After giving consent to search the suitcase, agents found more than $350,000 in cash and more than 800 coupon vouchers for the WIC program. Additional cash was found in the apartment and in the couple’s bank account.
The sentencing was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Joe N. Smith, Special Agent-in-Charge of the USDA’s Office of Inspector General; and Frank Benedetto, Special Agent-in-Charge of the U.S. Secret Service, both in Chicago. The Illinois Department of Human Services assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Andrew R. DeVooght.
Waterloo Shooter Pleads Guilty to Federal Gun, Drug ChargesRead the Press Release
Febraury 25, 2013A Waterloo man who shot another individual in October 2012 pled guilty today to drug and gun charges in federal court in Cedar Rapids.
Amos Dee Deering, Sr., age 31, from Waterloo, Iowa, was convicted of possessing a firearm in furtherance of a drug trafficking crime, possession with intent to distribute crack cocaine, and being unlawfully in possession of a firearm as a felon, domestic abuser, and drug user.
Evidence at an earlier hearing showed that in the early morning of October 19, 2012, Deering fought with another individual at a residence in the 400 block of Lane Street in Waterloo, Iowa. During the fight Deering shot the other individual in the upper torso. After fleeing the scene of the shooting, Deering drove to Singing Bird Lake park, but left the parkonly a few minutes later. Deering’s car was stopped and he was detained on suspicion of drunk driving. Officers returned to the park and, under a bush, found a discarded sock containing a pistol and some crack cocaine. Forensic tests later matched the firearm found inside the sock to a shell casing found at the scene of the shooting. Deering had previously been convicted of first degree burglary, felony eluding, and domestic abuse causing bodily injury.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Deering remains in custody of the United States Marshal pending sentencing. Deering faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of life imprisonment, $1,500,000 in fines, $300 in special assessments, and up to a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Waterloo Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 6:13-CR-02002-LRR.
Waterbury Man Admits Role in Killingworth Bank RobberyRead the Press Release
February 25, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that DARIO PABEY, 32, of Waterbury, pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of bank robbery for his role in the August 2012 robbery of TD Bank in Killingworth.
According to court documents and statements made in court, in the afternoon of August 6, 2012, Jennifer Jacques drove PABEY and another man to the TD Bank on Route 81 in Killingworth. PABEY and his co-defendant then entered the bank wearing masks and demanded that everyone lie on the floor. PABEY used zip ties to tie the hands of one bank employee. After taking money from the bank, as well as money and other items from bank customers, PABEY grabbed a customer and forced him out of the bank. PABEY and his co-defendant fled in the customer’s vehicle, which was abandoned a short distance from the bank at a pre-planned location where Jacques was waiting. Jacques then drove PABEY and his co-defendant away from the bank while they changed out of the clothes they had worn during the robbery.
The investigation has revealed that $43,573 was stolen from the bank and its patrons during the robbery.
PABEY is scheduled to be sentenced by United States District Judge Janet C. Hall on May 20, 2013, at which time PABEY faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.PABEY has been detained since his arrest on September 7, 2012.
Jacques has pleaded guilty and awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorneys Ray Miller and Sarala Nagala.
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Tom Carson
(203) 821-3722 [email protected]Washington Park Man Sentenced for Firearm OffenseRead the Press Release
Sean J. Redd, Jr., 23, of Washington Park, IL, was sentenced in United States Federal District Court, in East St. Louis, IL, 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 today.
Redd was sentenced to forty-six (46) months in prison, to be followed by three years supervised release, a $100 special assessment, and a $300 fine. Court proceedings revealed that on March 11, 2012, law enforcement officers responded to a call for backup in Washington Park, IL, where a crime was committed. The officers noticed a group of men walking away from the scene and driving off in a visibly damaged vehicle. An officer then observed the vehicle for several blocks, noticing a missing front registration plate. The officer initiated a traffic stop of the vehicle, but the driver sped off. The officer continued pursuit. The vehicle stopped in the middle a street and two men got out. Redd exited the vehicle and began running through a residential neighborhood holding his pants, appearing as if he was holding something near his waist. Redd tripped and fell to the ground while running, causing the item to fall underneath him. Redd was arrested on the scene. The officer checked the area where the item fell and found a loaded firearm.
This case was investigated by the Federal Bureau of Investigation and assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Union County Man Sentenced on Methamphetamine ConspiracyRead the Press Release
On February 22, 2013, Charles J. Brimm, 25, of Anna, IL, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Brimm, who had previously pled guilty to the methamphetamine charge, was sentenced to 70 months in prison, 4 years of supervised release, and fined $300. The offense occurred between 2010, and March 12, 2012, in Union, Jackson, and Saline Counties. Evidence at the plea and sentencing hearing established that Brimm was involved with others in the manufacture of methamphetamine. During the conspiracy, Brimm obtained over 100 grams of pseudoephedrine for the purpose of manufacturing methamphetamine. Two additional persons charged in this indictment have pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration. The Union County State’s Attorney’s Office also assisted during the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Two Sentenced for Attempted Smuggling of Assault Rifle MagazinesRead the Press Release
LAREDO, Texas – Julio Cesar Flores-Martinez, 47, and Francisco Padilla-Perez, 41, both Mexican nationals living in Nuevo Laredo, Mexico, have been ordered to prison for their roles in attempting to smuggle 652 assault rifle magazines into Mexico, United States Attorney Kenneth Magidson announced today.
Visiting United States District Judge Keith P. Ellison ordered Flores-Martinez and Padilla-Perez to serve sentences of 46 and 50 months in federal prison, respectively. As illegal aliens, both are expected to face deportation proceedings following release from prison. In sentencing the pair, Judge Ellison commented that “both of these defendants have caused me great unease.”
In April 2012, Special agents with Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted an undercover operation in which they posed as assault rifle magazine dealers, willing to sell the items for illegal export into Mexico. Padilla-Perez contacted the agents and placed his order for 650 high-capacity AK-47 assault rifle magazines which he said he wanted to smuggle into Mexico for which he agreed to pay $19,500 in cash. On April 19, 2012, he met with the undercover agents at a parking lot in Laredo. He showed them the money and told the agents he had already secured a Mexican truck driver who was going to smuggle the magazines into Mexico in a semi-tractor. Flores-Martinez, the Mexican truck driver, had arrived at the same parking lot at Padilla-Perez’s request and was waiting for the hand-off.
Padilla-Perez inspected the contents of nine suitcases brought by the agents, which were packed with the 652 magazines. He and the agents then walked over to Flores-Martinez who received the suitcases and hid them in the cab of his semi-tractor. Padilla-Perez handed the undercover agents a white plastic bag containing $19,500 cash. Flores-Martinez ultimately drove to one of the international bridges in Laredo where the items were discovered, and he was subsequently arrested.
At sentencing today, Flores-Martinez maintained Padilla-Perez promised to pay him $1,500 for smuggling the merchandise into Mexico.
Both men have remained in federal custody since the day of their arrest where they will remain pending transfer to a U.S Bureau of Prisons facility to be determined in the near future.
The matter was investigated by HSI and ATF in conjunction with the Laredo Police Department, Border Patrol, Customs and Border Protection and the Department of State. Several police officers and Border Patrol agents have been cross-designated as ATF task force officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Homero Ramirez prosecuted the case.
Treasure Coast Tax Return Preparer Sentenced to 42 Months in Prison for Preparing False Income Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that Mary Ann Richard, of Ft. Pierce, Florida, was sentenced today on charges of assisting and advising in the preparation and presentation of 16 fraudulent income tax returns to the IRS, in violation of Title 26, United States Code, Section 7206(2), and 2 counts of filing false personal income tax returns, in violation of Title 26, United States Code, Section 7206 (1). U.S. District Judge Donald L. Graham sentenced Richard to 42 months in prison, to be followed by 2 years of supervised release. In addition, the defendant was ordered to pay the United States $183,026.00 in restitution.
According to the Indictment and factual basis at the time of plea, from about January 2010 through April 2010, defendant Richard was employed by JB&L Tax Service, Inc, a tax return preparation business located in Fort Pierce, Florida. From July 2010 through March 2011, defendant Richard owned and operated M2 Financial Services, a tax return preparation business located in Fort Pierce, Florida. At these businesses, Richard met with taxpayers and prepared tax returns as either an employee of JB&L Tax Services, Inc., or as an owner and operator of M2 Financial Services. Richard then assisted in the preparation and presentation to the IRS of income tax returns, knowing that these returns contained materially false information. Specifically, Richard filed false tax returns for others which included false information regarding wages, business losses, dependents, education credits and child care expenses. Richard also filed false personal tax returns (Forms 1040) for tax years 2009 and 2010 which included false information regarding employer, wages, business expenses, and personal deductions.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Adam C. McMichael.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. Petersburg Man Sentenced to 14 Years in Prison for Using A Computer to Solicit Sex with Four-Year-Old ChildRead the Press Release
Tampa, FL - U.S. District Judge Elizabeth A. Kovachevich sentenced Raymond Roland Collette (40, St. Petersburg) last week to 14 years in federal prison for using his computer to solicit and arrange for sex with a four-year-old child. The court also ordered Collette to forfeit the computer he used to commit the offense. Collette pleaded guilty on November 20, 2102.
According to court documents, between March 2012 and July 2012, Collette posted an advertisement on craigslist seeking a person that would allow him to engage in acts related to his sexual fetish involving shoes. Collette began communicating online with a citizen identified as “KK.” During the chats, “KK” discussed that he had a girlfriend with a four-year-old daughter, identified as “C.” Collette then directed his attention to the child and began discussing his desires to obtain custody of “C,“ and engage in sex acts with her. Once Collette turned the chat toward sex with the child, “KK” alerted law enforcement. Subsequently, Collette unknowingly continued his conversations with an undercover detective. During the online conversations, Collette suggested that he and “KK” swap children for sexual purposes. Collette also chatted about how he would enjoy watching the children engage in sex acts with each other.
This case was investigated by the Pinellas County Sheriff's Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) as part of their joint effort on the Internet Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Texas Couple Sentenced in Bankruptcy Fraud CaseRead the Press Release
HOUSTON – Michael Giventer, 53, formerly of Brownsville, has been ordered to prison for five years following his conviction of conspiracy to commit bankruptcy fraud, United States Attorney Kenneth Magidson announced today. He pleaded guilty to the charge in Spring 2012, along with his wife, Florida resident Julia Shavabskaya, 40.
Today, U.S. District Judge Vanessa D. Gilmore handed Giventer a term of imprisonment of 60 months which will be followed by three years of supervised release. Shavabskaya was sentenced earlier this year to a term of six months in federal prison followed by six months of home confinement. She will also serve three years of supervised release. Both were further ordered to restitution in the amount of $9,106,606.15.
From on or about Aug. 27, 2002, and continuing to July 2010, Giventer caused the incorporation of two business entities as holding companies to receive income from clinics providing various forms of health care services to individuals who were covered by Workers’ Compensation insurance. Those businesses were Ambucare Inc. and Open Diagnostic Imaging Inc. located in the Brownsville area. Ownership of both companies was placed solely in the name of Shavabskaya. Through these two companies, Giventer received income from a number of these clinics, such as Valley Center for Pain and Stress Management, Functional Pain Center, Palladium for Surgery and Valley Comprehensive Pain Management.
On Nov. 4, 2005, Giventer filed for bankruptcy under chapter 7 in the Southern District of Texas. During the proceedings, Giventer was required to file, under penalty of perjury, various schedules consisting of assets, debts, liabilities and a statement of financial affairs in which he was required to disclose his income, debts, property and transfers of property, among other things. In some of the documents, Giventer indicated he did not own an interest in Ambucare, Open Diagnostic Imaging and other properties and assets when in truth and in fact, he controlled, managed and received income from these entities and made all decisions about how their income would be distributed. Shavabskaya falsely testified she owned the companies and that Giventer did not own or operate them. Additionally, both Giventer and Shavabskaya knew and falsely denied under oath any ownership interest in these entities in order to deceive, frustrate and prevent creditors and the bankruptcy trustee from identifying and collecting assets as part of the bankruptcy estate to be distributed for the benefit of creditors.
This case was jointly investigated by the FBI and the Department of Health and Human Services. The case is being prosecuted by Assistant United States Attorney Quincy L. Ollison.
South Carolina Ambulance Company to Pay U.S $800,000<br /> to Resolve False Claims AllegationsRead the Press Release
Williston Rescue Squad Inc. has agreed to pay the United States $800,000 to resolve allegations that it violated the False Claims Act by making false claims for payment to Medicare for ambulance transports, the Justice Department announced today. Williston, based in Williston, S.C., provides ambulance transport services in the southwestern part of South Carolina.
Medicare is a federally-funded health care program that is intended to provide basic medical insurance to people over the age of 65. Medicare reimburses providers only for non-emergency ambulance transports if the patient transported is bed-confined or has a medical condition that requires ambulance transportation. The settlement resolves allegations that Williston billed Medicare for routine, non-emergency ambulance transports that were not medically necessary and that Williston created false documents to make the transports appear to meet the Medicare requirements.
“Billing Medicare for unnecessary ambulance transports contributes to the soaring costs of health care,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division. “The Department of Justice is committed to pursuing companies that waste limited Medicare funds.”
“Medicare fraud is stealing, and it is crippling America’s health care system. We have doubled the number of attorneys working these cases in South Carolina. Take notice, if you are bilking the Medicare system designed to support our elders, we are working to find you. For the honest service providers, which is a greater majority of the community, you can report fraud at 1-800-MEDICARE,” said William N. Nettles, U.S. Attorney for the District of South Carolina.
The settlement resolves a lawsuit filed by Sandra McKee under the qui tam, or whistleblower provisions, of the False Claims Act. McKee is a clinical social worker at a facility that regularly received patients transported by Williston’s ambulances. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. Ms. McKee will receive $160,000 as her share of the government’s recovery.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
The United States’ investigation was conducted by the U.S. Attorney’s Office for the District of South Carolina, the Justice Department’s Civil Division, and the U.S. Department of Health and Human Services, Office of the Inspector General. The claims settled by this agreement are allegations only; there has been no determination of liability.
The False Claims Act suit was filed in the U.S. District Court for the District of South Carolina and is captioned United States ex rel. McKee v. Williston Rescue Squad, Inc. , No. 11-CV-00186 (D.S.C.).
Sarcoxie School Board Member Charged with Possessing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a member of the Sarcoxie, Mo., school board was charged in federal court today with possessing child pornography.
John R. Lewis, 67, of Sarcoxie, was charged in a criminal complaint filed in the U.S. District Court in Springfield with possessing child pornography. Lewis was arrested without incident prior to Thursday night’s school board meeting and remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s federal criminal complaint, Missouri State Highway Patrol troopers contacted Lewis as part of their investigation into allegations that he had exposed himself to a group of high school students who were working for Lewis on his farm outside of Sarcoxie. The troopers obtained a search warrant for Lewis’s residence and seized two desktop computers, a laptop computer and electronic storage devices.
Investigators determined that the computers contained 19 multimedia files of child pornography and 113 images of suspected child pornography. The multimedia files and images depicted children as young as five years old.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Missouri State Highway Patrol and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Rio Bravo Man Who Provided Assault Rifles to Mexican Gangs Sentenced to PrisonRead the Press Release
LAREDO, Texas – Silverio Venegas Jr., 37, of Rio Bravo, has been sentenced to serve a total of 51 months in prison, United States Attorney Kenneth Magidson announced today.
An investigation into suspicious purchases at local gun stores by the Bureau of Alcohol, Tobacco, Forearms and Explosives (ATF) led to the discovery that Venegas purchased an AK-47 rifle, an AR-15 rifle and an AR-15 pistol from a local gun store in Laredo between Dec. 17-30, 2011. Agents confirmed that Venegas had also listed a prior address as his current residence, also a federal violation, and eventually encountered Venegas. In an interview with ATF agents, Venegas admitted he was hired by someone from Mexico who paid Venegas to buy the three firearms. Venegas was driven to the store each time and purchased as specific model, make and caliber of firearm.
The three firearms were later discovered at crime scenes in Mexico. The AR-15 pistol, which is the pistol version of the AR-15 assault rifle, was found less than a month after its purchase in Nuevo Laredo, Mexico, after a shootout between a Mexican Army patrol and gunmen. According to Mexican reports obtained by ATF, several gunmen traveling in six vehicles opened fire on the soldiers who return their fire. Five Mexican soldiers were wounded. One soldier and four gunmen died of their injuries in the exchange. The two rifles Venegas purchased were found a crime scene in Saltillo, Mexico.
Venegas later pleaded guilty to three charges of making false statements on federal firearms forms 4473 falsely stating the firearms were for him when they were actually for unknown persons in Mexico. Today, United States District Judge Keith P. Ellison handed Venegas three 51-month-terms on each of the three counts, to be served concurrently, related to the purchase of two assault rifles and one assault pistol. He was further ordered to serve a three-year-term of supervised release after completion of the prison sentences.
The matter was investigated by the ATF in conjunction with the Laredo Police Department and the United States Border Patrol. Several police officers and Border Patrol agents have been cross-designated as ATF Task Force Officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Homero Ramirez prosecuted the case.
Professional Counselor Sentenced for $1.5 Million Conspiracy to Illegally Distribute Prescription Drugs at Carthage ClinicRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a licensed professional counselor at a Carthage, Mo., clinic was sentenced in federal court today for her role in conspiracies to illegally distribute more than $1.5 million in prescription drugs and to engage in money laundering.
Tammy L. Neil, 43, of Carthage, was sentenced by U.S. District Judge Richard E. Dorr to 12 months and one day in federal prison without parole and ordered to pay a $10,000 fine. The court also ordered Neil to forfeit to the government a 2007 Jaguar, a 1966 Piper airplane and $10,000, which is a substitute asset for a 2008 Cadillac Escalade, all of which was property that was purchased with the proceeds of her criminal conduct. The court also ordered Neil to forfeit to the government an additional $200,000, which represents the proceeds received in exchange for the distribution of controlled substances.
Neil pleaded guilty on July 18, 2012 to her role in a conspiracy to illegally distribute phentermine from Jan. 1, 2005, through March 26, 2008. Neil also admitted that she participated in a conspiracy to engage in money laundering during the same time frame by aiding and abetting others to conduct financial transactions that involved the proceeds of the illegal distribution of prescription drugs. Between 2005 and 2008, Neil and her former husband (now deceased), Dr. John Freitas, deposited more than $1.5 million into several bank accounts.
Neil and Freitas, a doctor of osteopathic medicine, owned and operated Complete Quick Care Clinic, 2232 S. Garrison, Carthage. Freitas was primarily in charge of the health care aspects of the clinic, while Neil managed the day to day operations of the clinic and ran the weight loss side of the clinic. As a part of the weight loss clinic, Neil was responsible for seeing more than half of all the clinic patients every day. Neil directed her employees to weigh the patients, chart their weight, and then sell the patients phentermine – which patients referred to as “synthetic meth” – as part of the weight loss protocol.
Phentermine is an amphetamine-based controlled substance often used to assist in weight loss. As a licensed counselor, Neil was not authorized to prescribe or dispense any controlled substance, including phentermine. Therefore, her patients received phentermine outside the scope of professional practice and not for a legitimate medical purpose.
This case was prosecuted by Assistant U.S. Attorneys Randall D. Eggert and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, the DEA Diversion Division, IRS-Criminal Investigation, the Carthage, Mo., Police Department and the Missouri State Highway Patrol.
Prince George’s County Armed Career Criminal Sentenced to 18 Years in Prison After Pleading Guilty to Gun ChargesRead the Press Release
Stole the Identities of Doctors Who Applied for Fellowships at Johns Hopkins Hospital Where His Girlfriend WorkedGreenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Marco A. Williams, age 34, of Clinton, Maryland, today to 18 years in prison, followed by five years of supervised release, after Williams pleaded guilty to two counts of being a felon in possession of a firearm. Chief Judge Chasanow found that Williams is an armed career criminal based on at least three previous violent crime or drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Williams’ guilty plea, on August 20, 2009, Williams was involved in a car accident. Prince George’s County Police officers responding to the accident saw the handle of a .40 caliber gun sticking out from under the driver’s seat. Officers recovered the gun and 14 baggies of crack cocaine found during a search of the vehicle in a fake rock in the driver’s side door compartment. A later search of Williams’ residence recovered 10 grams of crack cocaine, 49.24 grams of ecstasy, 75.52 grams of marijuana, $1,084 in cash, $3,000 in blank money orders and a 12-gauge shotgun. Williams had previously been convicted of a felony and was prohibited from possessing firearms. Williams remains detained.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George's County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Antonio J. Reynolds and William Moomau, who prosecuted the case.
Portland Man Sentenced for Felon in Possession of a FirearmRead the Press Release
PORTLAND, Ore. – James Rodney Grant, Jr., 36, of Portland, Oregon, was sentenced today by U.S. District Judge Michael W. Mosman to 70 months in prison and three years supervised release following his plea to being a felon in possession of a firearm.
The charges arose after Grant threatened an individual at a bar with a handgun. The police were called and located Grant leaving the scene in a vehicle. Grant tried to flee from the police, but he eventually crashed his vehicle and was arrested. The police found the handgun, a loaded .25 caliber semi-automatic pistol, on the route the defendant had traveled while he fled. Grant was prohibited from possessing firearms because of his prior felony convictions for delivery of a controlled substance, assault III and attempt to elude, robbery I, and assault IV (domestic violence).
This case was investigated by the Portland Police Bureau and ATF, and it was prosecuted by Assistant United States Attorney Fred Weinhouse.
Owner of Mental Health Facilities Sentenced to 168 Months in Prison in Connection with $63 Million Health Care Fraud SchemeRead the Press Release
A former owner of mental health facilities in Florida and North Carolina was sentenced today to serve 168 months in prison for his leadership role in a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Armando Gonzalez, 50, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to his prison term, Gonzalez was sentenced to serve three years of supervised release and ordered to pay 28,092,283 in restitution, which, under the terms of Gonzalez’s plea agreement, will be satisfied in part by seized assets including $987,000 in currency seized in July 2012 and Gonzalez’s mansion in Hendersonville, N.C.
On Dec. 17, 2012, Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.
According to court documents, HCSN operated community mental health centers at three locations in Miami-Dade County, Fla., and one location in Hendersonville. HCSN purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. A PHP is a form of intensive treatment for severe mental illness. According to court documents, HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not even provided.
Gonzalez orchestrated the HCSN fraud scheme, which centered on the recruitment and admission of patients who could not benefit from PHP services. In Miami, Gonzalez utilized patient recruiters to pay cash kickbacks in exchange for referrals from Assisted Living Facilities (ALF) patients who often suffered from conditions such as dementia and mental retardation. Once the unqualified patients were admitted to HCSN, Gonzalez’s employees would fabricate virtually every portion of the patients’ mental health medical records. The fake medical records were then utilized to support false billings to government sponsored health care benefit programs and to avoid detection by Medicare auditors.
In North Carolina, HCSN employees also routinely submitted false billing for patients watching movies, attending BBQs and, more commonly, patients who were not even present at the Miami and North Carolina facilities.
Gonzalez also admitted to his role in a money laundering scheme involving Psychiatric Consulting Network Inc. (PCN), a Florida corporation that was utilized by HCSN as a shell corporation to launder millions in health care fraud proceeds.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services that resulted in more than $28 million in payments.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and ten defendants have pleaded guilty. Alleged co-conspirators Wondera Eason and Paul Layman are scheduled for trial on March 11, 2013, before Judge Altonaga in Miami. Alleged co-conspirators Dr. Alina Feas, Dana Gonzalez and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. In support of the Medicare Fraud Strike Force, the FBI Criminal Investigative Division’s Financial Crimes Section has funded the Special Trial Attorney position.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
One More Sentenced in OCDETF CaseRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced that another member of a southwest Idaho meth trafficking conspiracy was sentenced today in federal court. The defendant, Juan Carlos Arredondo-Sicairos, 34, appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise to be sentenced for the crime of possession with intent to distribute in excess of 50 grams of methamphetamine. He was sentenced to 120 months in federal prison to be followed by five years of supervised release. He pleaded guilty on November 15, 2012.
According to court documents, Arredondo-Sicairos is a Mexican national from Durango, Mexico, who operated out of Delano, California. In October, 2011, he supplied methamphetamine to the co-conspirators distributing the drug in Idaho. Five members of the conspiracy have pleaded guilty and have been sentenced: Alfredo Dominguez-Villareal, Jorge Jimenez, Tanna Spencer, Hector Morales, and Cynthia Casillas.
Three co-defendants are awaiting sentencing: Nelson Fernando Garcia-Soto, a Mexican national, on April 9; and Delia Garcia-Pineda, of Boise, and Alonso Martinez, also a Mexican national, from Delano, California, on April 10.
Co-defendant Samuel Chavez, 32, of Boise, is set for trial on March 25. He is charged with conspiracy to distribute methamphetamine and use of a communication facility in furtherance of drug trafficking.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Boise Police Department and the Ada County Sheriff's Office. The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Old Saybrook Physical Therapist Is Sentenced, Agrees to Pay $328,828 to Resolve False Claims Act LiabiltyRead the Press Release
February 25, 2013The United States Attorney for the District of Connecticut announced that TODD ROBERTS, 47, of Old Saybrook, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to three years of probation for obstructing a federal audit. ROBERTS and his physical therapy practice, ROBERTS PHYSICAL AND AQUATICS THERAPY, also have entered into a civil settlement agreement with the government in which they will pay $328,828 to resolve allegations that they violated the False Claims Act.
According to court documents and statements made in court, on January 23, 2009, a Medicare contractor informed ROBERTS PHYSICAL AND AQUATICS THERAPY, located at 210 Main Street in Old Saybrook, that the contractor was performing an audit of the practice. ROBERTS instructed an employee to delay the audit by telling the contractor that medical records were stored at a nonexistent storage facility. ROBERTS then rented a storage unit at a local facility and used the delay to alter and augment patient records. Specifically, ROBERTS, and an employee at his direction, created and added patient progress notes when no notes had been created at the time of service. The notes made it appear as though Medicare beneficiaries had obtained direct, one-on-one service from a licensed physical therapist when, in fact, some of the services had been rendered by unlicensed auxiliary personnel.
On September 25, 2012, ROBERTS waived his right to indictment and pleaded guilty to one count of obstructing a federal audit.
The civil allegations against ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY involve improper billing to Medicare for physical and aquatic therapy services between April 2007 and March 2010. The Medicare program only pays for outpatient therapy services that are provided by qualified personnel. Personnel qualified to provide outpatient therapy services are limited to physicians, licensed physical therapists, and licensed physical therapy assistants. The Medicare program does not pay for physical therapy services provided by supportive personnel, such as physical therapy aides, athletic trainers or student trainees. In addition, Medicare regulations and policies make it clear that therapeutic procedures require direct, one-on-one contact between the licensed therapist and the patient.
The government alleges that ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY regularly billed Medicare for direct, one-on-one therapeutic procedures when such services were not provided. At the clinic, physical therapists and physical therapy assistants would routinely provide therapy services to multiple patients at the same time. Nevertheless, the services provided to each patient were billed as if the physical therapist or physical therapy assistant had provided direct, one-on-one care. For example, patients were routinely left alone to perform exercises in the aquatic therapy pool, with no direct, one-on-one contact with licensed personnel.
In addition, Medicare regulations and policies make it clear that physical therapy services must be thoroughly and accurately documented in the patients’ medical chart. Therapy services are only payable when the medical record consistently and accurately records the covered therapy services. The government alleges that ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY routinely failed to document their therapy services. This was particularly egregious during the first six months of its operation, when the clinic did not have any documentation at all showing that the services in question were actually provided.
To resolve their liability under the False Claims Act, ROBERTS AND ROBERTS PHYSICAL AND AQUATIC THERAPY will pay $328,828 for conduct occurring between April 5, 2007 and March 31, 2010.
In addition, ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY have entered into a six-year Integrity Agreement with the U.S. Department of Health and Human Services that is designed to ensure future compliance with the requirements of the Medicare program, including the proper rendering of therapy services and the submission of only valid claims to Medicare for payment.
In entering into the civil settlement agreement, ROBERTS AND ROBERTS PHYSICAL AND AQUATIC THERAPY did not admit liability.
Judge Underhill required ROBERTS, as conditions of his probation, to comply with the terms of the Integrity Agreement and to pay the entire $328,828.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services, the Federal Bureau of Investigation, and the Office of the Inspector General for the Department of Veterans Affairs. The case was prosecuted by Assistant United States Attorneys David J. Sheldon and Richard M. Molot, and Auditor Susan Spiegel.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Olathe Man Sentenced to Prison for Possessing More Than 12,000 Child Porn ImagesRead the Press Release
TOPEKA, KAN. – A man from Olathe, Kan., was sentenced today to four years in federal prison for possessing child pornography, U.S. Attorney Barry Grissom said. He also was ordered to pay a $12,500 fine.
James Christmas, 46, Olathe, Kan., pleaded guilty to one count of possessing child pornography. In his plea, he admitted he possessed more than 12,000 images and 26 videos of child pornography on computer media. The investigation began in September 2010 when his estranged wife told the Olathe Police Department that she found child pornography on computer media belonging to Christmas. Investigators obtained a search warrant and found the images. The National Center for Missing and Exploited Children identified more than 1,300 images of known child victims living outside of Kansas in Christmas’ collection.
Grissom commended the Olathe Police Department and Assistant U.S. Attorney Kim Martin for their work on the case.
Occupational Therapist Impersonator Sentenced to Prison for Mail Fraud and Identity TheftRead the Press Release
Orlando, FL - U.S. District Judge Roy Dalton sentenced James Lewis, a/k/a James Lee Lewis, (44, Kissimmee) today to five years and five months in federal prison for mail fraud and aggravated identity theft. Lewis pleaded guilty on December 18, 2012.
According to court documents, in March 2009, Lewis fraudulently obtained a temporary occupational therapist (OT) license from the Florida Department of Health. To obtain the temporary license, Lewis used a false name and Social Security Number, and fabricated his education credentials. Between March 2009 and July 2011, Lewis worked as an OT at various health care facilities in Central Florida and New Mexico, and received his wages using Electronic Funds Transfers. On January 17, 2013, Lewis’ bond was revoked after the government discovered that he had again applied to work as an occupational therapist in Central Florida, using fraudulent information.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Florida Department of Health’s Division of Medical Quality Assurance, Orlando Unlicensed Activity Office. It was prosecuted by Assistant United States Attorney David Haas.
North Hills Woman Pleads Guilty to Unlawfully Possessing OxycodoneRead the Press Release
PITTSBURGH, Pa, - A North Hills resident pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Kathryn Joyce, 30, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Joyce unlawfully possessed with intent to distribute 334 oxycodone 30 mg tablets on Jan. 11, 2012 when stopped by the Ross Township Police.
Judge Cercone scheduled sentencing for July 2, 2013. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Ross Township Police Department conducted the investigation that led to the prosecution of Joyce.
Ninth BMC Gang Member SentencedRead the Press Release
BOISE –Amando Garcia, Jr., a/k/a Amando Torres, a/k/a “Toro,” 29, was sentenced today to 96 months in prison for conspiracy to participate in a racketeering enterprise and attempted murder in aid of racketeering, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Garcia to serve five years of supervised release. He pleaded guilty to the charges on August 8, 2012.
According to the plea agreement, Garcia admitted that he conspired to commit racketeering acts, and that he committed the crime of attempted murder in aid of racketeering, all related to the Brown Magic Clica (BMC) gang, a Sureno street gang with members in the Districts of Idaho and Oregon. Garcia admitted that, on January 19, 2006, he was a passenger in a vehicle with several other BMC members which was traveling in Caldwell, Idaho. One of the BMC members fired several shots from a handgun at a passing vehicle, which the BMC members believed contained rival gang members. A man delivering newspapers was a passenger in the vehicle and was struck by one of the bullets. Garcia admitted that he contacted a witness to the shooting and told her not to cooperate with the police investigation.
Garcia also admitted that, on August 23, 2008, he fired a “Mini-14” .223 rifle and a Ruger .25 pistol towards another BMC gang member, striking him several times, with the intent to kill him. Garcia and other BMC members considered the victim and his family members to be enemies of BMC because members of the family testified at the trial of a BMC leader charged with murder in Payette County, Idaho. During his plea, Garcia admitted that BMC members were expected to engage in acts of violence towards witnesses in criminal investigations against BMC members, and against other BMC members who do not follow BMC rules. Garcia further 2 admitted that the attempted murder was committed for the purpose of gaining entrance to, or maintaining or increasing position in the BMC gang.
During the sentencing hearing, Garcia renounced his membership in the BMC gang, stating “I am no longer a gang member.” To date, eight co-defendants have been sentenced to federal prison for racketeering crimes related to the BMC gang. Mathew Grover a/k/a “Dreamin” was sentenced to 51 months in prison; Samson Torres a/k/a “Gremlin,” 70 months; Salvador Apodaca a/k/a “Bugz,” 60 months; Jessie Rodriguez a/k/a “Pelon,” 115 months; Adam Gomez “Lil Toro,” 60 months; Adelaido Gomez, a/k/a “Guy,” 125 months; Alfredo Castro a/k/a “Papos,” 168 months; and Juan Gonzalez, a/k/a “Chango,” 37 months.
Co-defendant Oscar Garcia a/k/a “Bubba,” a/k/a “Tiny,” pleaded guilty on January 18, 2013, to Conspiracy to Participate in a Racketeering Enterprise and Attempted Murder in Aid of Racketeering; sentencing is set for April 9 at the federal courthouse in Boise. Juan Jimenez a/k/a “Loco,” pleaded guilty on January 17, to Conspiracy to Participate in a Racketeering Enterprise; sentencing is set for April 8.
The federal racketeer influenced corrupt organizations (RICO) law prohibits individuals from participating, or conspiring to participate, in the conduct of an enterprise through a pattern of racketeering activity. An enterprise is defined as any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity. Racketeering activity is defined as specified criminal acts, including murder, arson, distribution of controlled substances, and intimidation and retaliation against witnesses.
The investigation, named “Operation Black Magic,” included the cooperative law enforcement efforts of the Treasure Valley Metro Violent Crime Task Force, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Ada County Sheriff’s Office, the Boise Police Department, the Caldwell Police Department, the Canyon County Sheriff’s Office, the Idaho Department of Corrections, the Malheur County Sheriff’s Office, the Meridian Police Department, the Nampa Police Department, the Nyssa Police Department, the Ontario Police Department, the Oregon State Police, and the U.S. Attorney's Office. The investigation is ongoing.
Nauman SentencingRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ANGELIA NAUMAN, age 52, of Zachary, Louisiana, was sentenced today by U.S. District Chief Judge Brian J. Jackson to a term of imprisonment of twenty-seven (27) months.
NAUMAN had previously pled guilty to bank fraud in connection with a multi-year scheme to defraud Industrial Cooling Tower Services, Inc. (“Industrial Cooling”) located in Greenwell Springs, Louisiana. While working as the company’s office manager from 2007 through late 2010, NAUMAN admitted to embezzling $437,941.73. To execute the scheme, the defendant drafted checks payable to herself and forged the signature of company owners. NAUMAN then made false entries into Industrial Cooling’s ledgers that intentionally created the false impression that the checks were for legitimate expenses and payable to legitimate vendors.
At today’s sentencing, the Court found that NAUMAN’s fraudulent scheme caused a loss to Industrial Cooling of $437,941.73 and ordered that she pay this amount in restitution. Following her release from imprisonment, NAUMAN will also be required to serve a two-year term of supervised release.
This investigation was conducted by United States Secret Service Special Agent Kevin Bodden. The case is being prosecuted by Assistant United States Attorneys Frederick A. Menner, JR.
Miami Pharmacy Owner Sentenced to 14 Years in Prison<br /> in $23 Million Health Care Fraud SchemeRead the Press Release
A co-owner and operator of three Miami discount pharmacies was sentenced today to 168 months in prison for his role in a health care fraud scheme that submitted more than $23 million in false claims to Medicare.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Jose Carlos Morales, 55, of Miami, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Morales was sentenced to serve three years of supervised release and to pay a $100,000 fine. A hearing to determine the amount of restitution Morales will pay has been scheduled for April 29, 2013.
On Dec. 6, 2012, Morales pleaded guilty in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay illegal health care kickbacks.
According to court documents, Morales was the co-owner of Pharmovisa Inc. and PharmovisaMD Inc., which operated a total of three pharmacies in Miami. Morales paid illegal health care kickbacks to co-conspirators in return for a stream of beneficiary information to be used to submit claims to Medicare and Medicaid. The beneficiaries who were referred to the pharmacies in exchange for kickback payments resided at assisted living facilities (ALFs) located in Miami. Morales and his alleged co-conspirators also paid illegal health care kickbacks to physicians in exchange for prescription referrals, which the pharmacies ultimately billed to Medicare.
Court documents also reveal that beginning in approximately 2007, drivers working for Morales’ pharmacies, at his direction, delivered “bingo cards” containing pop out medications to ALFs located throughout the Southern District of Florida. Morales instructed the drivers to pick up any unused “bingo cards” so that Morales pharmacy personnel could put the medications back into pill bottles. Unused and partially used medications were eventually re-billed to Medicare and Medicaid, and a majority of the previously submitted claims to Medicare and Medicaid were never reversed. Morales also instructed Morales pharmacy personnel to place unused and partially used medications into bottles to be sold directly to the general public from the “community” pharmacy shelves.
Morales and his alleged co-conspirators also engaged in sham financial transactions to facilitate and conceal the fraud schemes and the flow of fraud proceeds, according to court documents. In most instances, the sham transactions involved shell entities owned and/or controlled by Morales or his alleged co-conspirators.
According to court documents, Morales and his co-conspirators submitted and caused to be submitted approximately $23,367,755 in false and fraudulent claims to the Medicare and Florida Medicaid programs.
The case is being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William Parente of the Criminal Division’s Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Miami Pharmacy Owner Sentenced to 14 Years in Prison in $23 Million Health Care Fraud SchemeRead the Press Release
A co-owner and operator of three Miami discount pharmacies was sentenced today to 168 months in prison for his role in a health care fraud scheme that submitted more than $23 million in false claims to Medicare.
The sentence was announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Jose Carlos Morales, 55, of Miami, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Morales was sentenced to serve three years of supervised release and to pay a $100,000 fine. A hearing to determine the amount of restitution Morales will pay has been scheduled for April 29, 2013.
On Dec. 6, 2012, Morales pleaded guilty in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay illegal health care kickbacks.
According to court documents, Morales was the co-owner of Pharmovisa Inc. and PharmovisaMD Inc., which operated a total of three pharmacies in Miami. Morales paid illegal health care kickbacks to co-conspirators in return for a stream of beneficiary information to be used to submit claims to Medicare and Medicaid. The beneficiaries who were referred to the pharmacies in exchange for kickback payments resided at assisted living facilities (ALFs) located in Miami. Morales and his alleged co-conspirators also paid illegal health care kickbacks to physicians in exchange for prescription referrals, which the pharmacies ultimately billed to Medicare.
Court documents also reveal that beginning in approximately 2007, drivers working for Morales’ pharmacies, at his direction, delivered “bingo cards” containing pop out medications to ALFs located throughout the Southern District of Florida. Morales instructed the drivers to pick up any unused “bingo cards” so that Morales pharmacy personnel could put the medications back into pill bottles. Unused and partially used medications were eventually re-billed to Medicare and Medicaid, and a majority of the previously submitted claims to Medicare and Medicaid were never reversed. Morales also instructed Morales pharmacy personnel to place unused and partially used medications into bottles to be sold directly to the general public from the “community” pharmacy shelves.
Morales and his alleged co-conspirators also engaged in sham financial transactions to facilitate and conceal the fraud schemes and the flow of fraud proceeds, according to court documents. In most instances, the sham transactions involved shell entities owned and/or controlled by Morales or his alleged co-conspirators.
According to court documents, Morales and his co-conspirators submitted and caused to be submitted approximately $23,367,755 in false and fraudulent claims to the Medicare and Florida Medicaid programs.
The case is being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William Parente of the Criminal Division’s Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to 19 Years in Federal Prison for Drug TraffickingRead the Press Release
Escobedo-Gonzalez is Final Defendant Sentenced in OCDETF Case
BOISE – Jose Ramon Escobedo-Gonzalez, 35, a Mexican national, was sentenced today in United States District Court to 168 months in prison for conspiracy to distribute a controlled substance and 60 consecutive months for possession of a firearm in furtherance of drug trafficking, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Escobedo-Gonzalez to serve five years of supervised release after his prison term and forfeit numerous firearms. He pleaded guilty to the charges on March 21, 2012.
According to the plea agreement, beginning in September 2009 and continuing until mid-January 2011, Escobedo-Gonzalez and his co-defendants conspired to distribute more than five pounds of methamphetamine in Canyon County, Idaho. According to trial testimony, the organization brought pounds of methamphetamine into Idaho from surrounding states and distributed it throughout the Treasure Valley. During the investigation, law enforcement officers seized five pounds of methamphetamine, marijuana, numerous firearms, vehicles, and more than $30,000 in currency. According to the plea agreement, Escobedo-Gonzalez knowingly gave and received various firearms in exchange for receiving and distributing methamphetamine. Escobedo-Gonzalez further admitted he knowingly possessed various firearms for protection while engaged in drug transactions in furtherance of the conspiracy.
Co-defendants sentenced earlier include Mexican nationals Jorge Luis Cardoza, Lourdes Muro-Garcia, Diego Gomez-Lara, Antony Alegria Zedeno, Juventino Lara-Plancarte, and Fabian Nunez-Garcia; and Victor Chavez-Garcia, Leann Atkisson, Ronald Garcia, and Benjamin Prieto, all of Nampa, Idaho. The co-defendants received a combined total of over 75 years in prison.
In a separate but related case, Ana Reyes a/k/a Ana Gonzales, 25, Yolanda Yvette Salazar, 48, both of Nampa, and Nereida Lopez a/k/a Nereida Munoz, 30, of Caldwell, pleaded guilty in January 2013, to using a communication facility in furtherance of a drug offense. According to the plea agreements, the defendants admitted to using a cellular phone to make arrangements with Escobedo-Gonzalez to supply them with methamphetamine. The defendants each face up to four years in prison, a maximum fine of $250,000, and up to one year of supervised release. Sentencings are scheduled in April 2013.
“Appropriately, Mr. Escobedo-Gonzalez and his co-conspirators will spend lengthy terms in federal prison,” said Olson. “Methamphetamine trafficking and firearms are a dangerous combination for Idaho’s communities. We will continue to work closely with our federal, state and local law enforcement partners to ensure that those who bring this horribly addictive drug into our state and those who further their criminal activity with firearms are identified, prosecuted and sent to prison.”
The Organized Crime/Drug Enforcement Task Force (OCDETF) case, named “Operation Flamethrower,” is the result of a year-long, multi-agency investigation. Investigators and prosecutors from federal, state, and local agencies cooperated in the arrests and seizures. It included the cooperative law enforcement efforts of the Nampa Police Department, Drug Enforcement Administration, Canyon County Sheriff's Office, Canyon County SWAT team, Metro Violent Crimes Task Force, Idaho State Police, Caldwell Police Department, Ada County Sheriff's Office, Boise Police Department, and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Canyon County Prosecutor's Office, District 3 Probation and Parole, and the United States Attorney's Office.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Member of Philadelphia La Cosa Nostra Sentenced to 55 Months <br /> in PrisonRead the Press Release
Louis Fazzini was sentenced today to serve 55 months in prison for his participation in a racketeering conspiracy involving illegal gambling and theft from an employee benefit plan, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and John Brosnan, Acting Special Agent in Charge of the FBI’s Philadelphia Division.
Fazzini, 46, of Caldwell, N.J., was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Fazzini was sentenced to serve three years of supervised release following his prison term.
On Oct. 5, 2012, Fazzini pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. At the time of the plea colloquy, he admitted that, as a “made” member of the North Jersey crew of the Philadelphia LCN Family, he operated a sports bookmaking business and devised a fraudulent scheme to obtain health benefits through a “no show” job controlled by the LCN in furtherance of the racketeering conspiracy. As a “no show” employee, Fazzini performed no work or productive services, while still receiving health benefits.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
Member of Philadelphia La Cosa Nostra Sentenced to 55 Months in Prison for Racketeering ConspiracyRead the Press Release
PHILADELPHIA – Louis Fazzini, 46, of Caldwell, N.J., was sentenced today to
55 months in prison for his participation in a racketeering conspiracy involving illegal gambling and theft from an employee benefit plan. U.S. District Court Judge Eduardo C. Robreno also ordered Fazzini to serve three years of supervised release following his prison term.
On Oct. 5, 2012, Fazzini pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. At the time of the plea colloquy, he admitted that, as a “made” member of the North Jersey crew of the Philadelphia LCN Family, he operated a sports bookmaking business and devised a fraudulent scheme to obtain health benefits through a “no show” job controlled by the LCN in furtherance of the racketeering conspiracy. As a “no show” employee, he would perform no work or productive services, while still receiving health benefits.The case was investigated by the FBI, the Internal Revenue Service Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the Department of Labor Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations, and the Department of Labor Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Manhattan Doctor Pleads Guilty to $8.5 Million Medicare Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Dr. ROBERTO AYMAT, a medical doctor, pled guilty today in Manhattan federal court to participating in a scheme to defraud Medicare out of approximately $8.5 million through the use of fraudulent HIV/AIDS clinics in New York. As part of the scheme, AYMAT and others billed Medicare for medications that were never administered or that were administered but were medically unnecessary. He pled guilty before U.S. District Judge George B. Daniels. Three other participants in the scheme, Asmed Barrera, Augusto Guzman, and Jorge Rivero, previously pled guilty.
Manhattan U.S. Attorney Preet Bharara said: “Roberto Aymat used his medical license to perpetrate a multi-million dollar fraud on Medicare – a program that provides a lifeline to its beneficiaries and that is struggling financially to stay afloat. His exploitation of this vital, taxpayer-funded program was egregious and with his plea today, he has been held to account.”
According to the Complaint and the Indictment filed in this case:
AYMAT, along with Barrera, Guzman, Rivero, also a medical doctor, and others operated three medical clinics in New York City that purported to provide drug treatments to Medicare-eligible HIV/AIDS patients, but that were, in reality, healthcare fraud mills.
The defendants executed the fraudulent scheme by recruiting HIV/AIDS patients eligible for Medicare, and paying them kickbacks in exchange for signing on as patients at the clinics. The defendants then used these patients’ status as Medicare beneficiaries to submit claims for reimbursement to Medicare for drugs that had been prescribed to these patients. In fact, these medications were never purchased and never administered, or were administered, but were medically unnecessary.
From January 2007 to April 2009, AYMAT and his co-conspirators billed Medicare for more than 10 times the number of units of prescription drugs they actually purchased, defrauding the Medicare system of at least $8.5 million.
AYMAT, 44, a resident of Manhattan, pled guilty to conspiring to commit fraud in connection with a health care benefits program, and to committing healthcare fraud and mail fraud. He faces a penalty of up to 50 years in prison and is scheduled to be sentenced by Judge Daniels on June 18, 2013.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General, New York Region.
The prosecution is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Kan M. Nawaday and Jason H. Cowley are in charge of the prosecution.
Aymat, Roberto, et al. Indictment
Man Sentenced on Drug ChargesRead the Press Release
MOBILE, Ala. - Jakari Tywann Lewis, 38, of Mobile, was sentenced today in federal court to 15 months imprisonment on the charge of possession with intent to distribute crack cocaine. Lewis entered a guilty plea to the charge in October of 2012. Senior District Court Judge Charles R. Butler, Jr., imposed the sentence and ordered that Lewis serve a six year term of supervised release when he is released from the penitentiary. The judge also ordered that Lewis pay the special mandatory assessment of $100.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security. It was prosecuted by Gloria Bedwell in the United States Attorney’s Office in Mobile.
Macy Man Sentenced for AssaultRead the Press Release
United States Attorney Deborah R. Gilg announced that Wisdom P. Webster, age 29 of Macy, Nebraska, was sentenced in United States District Court in Omaha for Assault with a Dangerous Weapon. The Honorable Laurie Smith Camp, Chief Judge, sentenced Webster to 46 months in prison. After his release from prison Webster will begin a 3 year term of supervised release.
On January 7, 2012, Webster argued with the mother of his children at a bar in Walthill, Nebraska. After leaving the bar the two drove to a home within the Omaha Indian Reservation. They continued to argue before Webster hit and bit her. The bite resulted in the severance of the lower portion of her right ear lobe, a laceration to her eye lid, and bruises to her head and neck.
Local Businessman Convicted in $19+ Million Health Care Fraud SchemeRead the Press Release
HOUSTON - Joseph Edem, 53, of Richmond, has been convicted of conspiracy to commit health care fraud relating to medically unnecessary diagnostic testing and physical therapy, United States Attorney Kenneth Magidson announced today.
Edem was originally indicted with former doctor Donald Gibson II, 56, of Sugarland. That indictment alleged Gibson ordered, prescribed and authorized medically unnecessary diagnostic tests and other procedures which included allergy tests, pulmonary function tests, vestibular tests, urodynamic tests and physical therapy, among others. These services were then billed to Medicare and Medicaid for payment under Gibson’s billing number, according to the indictment.
From January 2007 through January 2012, Gibson allegedly caused more than $19.4 million in medical claims to the Medicare and Texas Medicaid Programs. As a result, Medicare deposited approximately $8.5 million into a bank account owned and controlled by Gibson.
Edem operated medical clinics under the names of other individuals to conceal his financial interest in the businesses. Edem admitted today that he conspired to cause the submission of false claims to the Medicare and Medicaid programs and share in the proceeds. Edem admitted he paid patient recruiters for referring Medicare/Medicaid beneficiaries and also paid Medicare beneficiaries for showing up at the medical clinics.
U.S. District Court Judge Lynne N. Hughes, who accepted the guilty plea today, has set sentencing for May 28, 2013, at which time Edem faces up to 10 years in federal prison, as well as a possible $250,000 fine.
The case against Gibson is pending. He is presumed innocent unless and until convicted through due process of law.
This case is the result of a joint investigation involving multiple federal and state agencies including agents and investigators of the Railroad Retirement Board, Secret Service, Drug Enforcement Administration, FBI, the Texas Attorney General’s Medicaid Fraud Control Unit and U.S. Department of Health and Human Services – Office of Inspector General. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Andrew Leuchtmann are prosecuting this case.
Lincoln Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Allen E. Overholtzer, age 35 of Lincoln, Nebraska, was sentenced on February 25, 2013, to 15 months in prison by United States District Judge Laurie Smith Camp, for failing to register as a sex offender. After his release from prison, Overholtzer will be required to serve a five year term of supervised release and be registered as a sex offender.
Overholtzer was required to register as a sex offender as a result of a conviction on two counts of third degree sexual assault in Lincoln, Nebraska. Overholtzer was registered at an address in Lincoln, Nebraska, but was found to be residing in Pueblo, Colorado.
This case was investigated by the United States Marshals Service.KC Business Owners Indicted for Defrauding Debt-stressed ClientsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owners and operators of a Kansas City, Mo., firm that promised to help financially-strapped clients get out of debt have been indicted by a federal grand jury for defrauding their clients, causing some of them to lose their homes and vehicles.
John Lee Norris, 42, and Julie Tina Hatcher, 37, both of Kansas City, were charged in a 21-count indictment that was returned under seal by a federal grand jury on Feb. 19, 2013. The indictment was unsealed and made public today upon the arrests and initial court appearances of Norris and Hatcher.
According to the indictment, Norris and Hatcher operated Reaper Investment Partners, LLC; in August 2011 they formed Death Productions LP. Between August 2010 and April 2012, the indictment alleges, Norris and Hatcher participated in a conspiracy to defraud homeowners and other debtors who were in financial distress (as well as their victims’ lenders and the Federal Housing Administration).
Norris and Hatcher allegedly recruited and targeted homeowners and others who were in financial difficulties with promises that they would be rescued from their financial problems, including foreclosure. Norris and Hatcher allegedly told victims that Reaper Investment Partners (RIP) would refinance the homeowners’ existing mortgages for a lower amount and at an interest rate of three percent.
As part of their scheme, the indictment says, RIP would control title to the homeowners’ properties. The homeowners would stop making payments to their lenders and instead make their monthly payments to RIP. The homeowners gave Norris and Hatcher power of attorney. Homeowners did not communicate with their lenders, the indictment says, even when they received telephone calls, late notices and foreclosure notices from their lenders. Instead, homeowners forwarded the notices and other documents to Norris and Hatcher. When homeowners contacted Norris and Hatcher to report that they had received notice that their homes were being foreclosed, the defendants reassured them by telling them not to worry, that was part of the process.
Norris and Hatcher allegedly told some of their client-victims that one or both of them were lawyers, had legal experience, or were able to practice law. They allegedly said that RIP would draft, serve, file, and record legal forms, pleadings, and other documents and would conduct necessary legal processes, contact the relevant parties, and implement administrative procedures. Norris and Hatcher allegedly mailed documents to the homeowners’ lenders, demanding the lenders “cease and desist” collection activities.
Norris and Hatcher also allegedly told individuals who were in financial difficulties due to credit card debt, vehicle loans, and other debt, that they would refinance the debt for a lower amount and interest rate and lower their monthly payments. These clients, likewise, would stop making payments to their lenders and instead make their monthly payments to RIP.
The federal indictment refers to victims from Lee’s Summit, Mo., St. Joseph, Mo., Gardner, Kan., Paducah , Ken., and North Wales, Penn. Victims and lenders suffered losses as a result of the conspiracy, including the loss of homes and vehicles (a specific dollar amount of the total loss is not identified in the indictment).
In addition to the conspiracy, Norris and Hatcher are charged together with nine counts of mail fraud and 10 counts of wire fraud.
Hatcher is also charged with one count of Social Security disability fraud. Hatcher allegedly failed to report her work activities and income while she received Social Security disability insurance benefits from August 2010 through April 2012.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Senior Litigation Counsel Linda Marshall and Assistant U.S. Attorney Brian P. Casey. It was investigated by the FBI, the U.S. Secret Service, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Social Security Administration – Office of Inspector General, the Johnson County, Kan., District Attorney’s Office and the Kansas City, Mo., Police Department.
Justice Department to Monitor Elections in Illinois and KansasRead the Press Release
The Justice Department announced today that the Civil Rights Division will monitor elections on Feb. 26, 2013, in Cook County, Ill., and Seward County, Kan. The monitoring will ensure compliance with the Voting Rights Act of 1965 and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group. In addition, the act requires certain covered jurisdictions to provide language assistance during the election process. Cook County is required to provide language assistance to its Hispanic, Chinese and Asian Indian voters, and Seward County is required to provide language assistance to its Hispanic voters.
Justice Department personnel will monitor polling place activities in Cook and Seward Counties. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from the Office of Personnel Management, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Houston Man Sentenced for Grocery Store Bank RobberyRead the Press Release
HOUSTON – A Houston man indicted for a string of bank robberies in Houston during the summer of 2012 has been ordered to federal prison, United States Attorney Kenneth Magidson announced today. Kyle Lee Puglisi, 27, was charged with multiple counts of bank robbery after allegedly robbing five banks located in various grocery stores throughout the Houston area between July and September of this year. He pleaded guilty Monday, Dec. 10, 2012.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Puglisi a 63-month sentence. At the hearing, additional testimony regarding personal pressures facing Puglisi at the time of the robberies was presented in a plea for leniency from the court. However, the court, citing the fact his crimes involved five separate banks not just the one to which he pleaded guilty, rejected this plea, and handed down the maximum sentence. He was further ordered to pay restitution and to serve a three-year-term of supervised release following completion of the prison term.
Puglisi admitted that on July 2, 2012, he robbed the First Convenience Bank located inside a Kroger grocery store in north Houston. Late that morning, Puglisi entered the grocery store and began shopping. He placed several grocery items from the shelves into a grocery cart, then pushed the grocery cart toward the bank. He approached the teller, produced a revolver from the waistband of his pants and stated, “DON'T MAKE IT OBVIOUS.” The teller, fearing for his life, pulled some cash and gave it to Puglisi. Puglisi then fled the grocery store in an unknown direction, leaving the groceries and cart near the teller counter. Investigators were able to identify Puglisi as the person responsible for the robbery from evidence collected at the scene.
Puglisi was apprehended by authorities on Sept. 19, 2012, shortly after committing another robbery of the First Community Credit Union in an HEB grocery store in Spring. A small amount of U.S. currency and a pellet gun were also seized at the time of Puglisi’s arrest.
Puglisi will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI. Assistant U.S. Attorney Richard D. Hanes is prosecuting the case.