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4 February 2013
Iowa Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
DES MOINES, IA - On February 1, 2013, Susan Lea Combs, a 51 year old resident of Pottawattamie County, Iowa, was sentenced to 120 months (ten years) imprisonment for conspiracy to distribute methamphetamine by United States Senior District Court Judge Ronald Longstaff. Judge Longstaff also imposed a period of five years of supervised release following her incarceration. Combs’ co-defendant, David Dwayne Mendez, a 52 year old resident of Polk County, Iowa, was sentenced by Judge Longstaff to a term of imprisonment of 108 months (nine years) for his role in the Conspiracy to Distribute Methamphetamine, as well as a four year period of supervised release. Combs and Mendez entered guilty pleas to conspiracy to distribute methamphetamine on September 6, 2012. At the time of their respective pleas of guilty, each admitted that they agreed to sell methamphetamine that was obtained from a source in South Omaha, Nebraska, to individuals in Iowa, particularly in the Council Bluffs and Des Moines areas.
The investigation was conducted by the Iowa State Patrol, Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, Mid-Iowa Narcotics Task Force, and the Polk County Attorney’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Iowa Resident Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On February 1, 2013, Michael James Vore, a 50 year old resident of Pottawattamie County, Iowa, was sentenced to 120 months (ten years) imprisonment for possession with intent to distribute methamphetamine by United States Senior District Court Judge Robert Pratt. Judge Pratt also imposed a period of eight years of supervised release following his incarceration.
In September of 2012,Vore was found guilty by a jury of possession with intent to distribute methamphetamine. The evidence at trial showed that the Iowa State Patrol was conducting an investigation into the possession and transportation of stolen commercial utility trailers in May of 2011. As part of their investigation, members with the Iowa State Patrol conducted a traffic stop on Vore as he was pulling a suspected stolen trailer behind his pick-up truck. While searching the pick-up truck that Vore was driving, troopers located approximately fifty grams of pure methamphetamine, along with a large stack of United States Currency, a digital scale and notes consistent with the sale of a controlled substance.
The investigation was conducted by the Iowa State Patrol, Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, Pottawattamie County Sheriff’s Office, and the Pottawattamie County Attorney’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Identity Thieves Sentenced for Taking over Bank AccountsRead the Press Release
Defendants Stole Over $1.4 Million from Victims’ Accounts
ATLANTA – A total of five defendants were sentenced today and last Thursday for using fake driver’s licenses to withdraw almost $1.5 million from victims’ bank accounts. The defendants were convicted of conspiracy, bank fraud, and aggravated identity theft after pleading guilty.
United States Attorney Sally Quillian Yates said, “The defendants tormented dozens of innocent victims who went to the bank only to discover that their accounts had been drained and identities stolen. The sentences imposed in this case appropriately reflect the severe damage done by identity thieves.”
“This case illustrates the negative impact that bank fraud and aggravated identity theft have on the citizens of the United States. The Secret Service will continue to aggressively pursue, with our federal, state, and local law enforcement partners, anyone that violates the trust that the public has in our economic system,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The defendants will now have plenty of time to contemplate the harm done by their aggressive criminal enterprise. The FBI will continue to work with its various law enforcement partners in protecting financial institutions and their account holders from the criminal activities of identity thieves.”
According to United States Attorney Yates, the charges and other information presented in court: From February 2010 through August 2011, Gafar O. Kosoko Balogun ran an identity theft scheme in Atlanta that targeted various banks, including Bank of America, Wells Fargo, SunTrust, and BB&T. Balogun first obtained individuals’ financial account information, typically over the Internet from public web sites. He went to credit reporting sites and guessed the answers to individuals’ security questions to gain access to their credit reports, and went to other sites to collect business information and tax identification numbers. Balogun would then call the bank and impersonate the true account holder to find out the account balance of the victim.
Balogun provided the account information to Donish Adkins, Orlon Hall, Christian Okafor, and Wayne Cunningham, who in turn recruited “runners” to go into the banks and withdraw money from the victims’ accounts. Balogun supplied fake driver’s licenses to the runners, which they used to impersonate the account holders while in the banks. In addition to recruiting co-conspirators, Cunningham also entered banks and made withdrawals from victims’ accounts. After paying the runners about $500 per transaction, the defendants shared the remainder of the criminal proceeds. The investigation has linked over $2.7 million in actual and attempted withdrawals from over 60 accounts to the scheme. The defendants succeeded in getting over $1.4 million from these accounts.
United States District Judge Thomas W. Thrash, Jr. sentenced Balogun, Adkins, Hall and Cunningham on Thursday, January 31, and sentenced Okafor today:
- Gafar O. Kosoko Balogun, 30, of Atlanta, Georgia, was sentenced to 6 years, 6 months in prison, to be followed by 3 years of supervised release, and ordered to pay $1,485,660.68 in restitution.
- Donish Adkins, 35, of Johns Creek, Georgia, was sentenced to 5 years, 3 months in prison, to be followed by 3 years of supervised release, and ordered to pay $527,293.31 in restitution.
- Orlon Hall, 32, of Alpharetta, Georgia, was sentenced to 5 years, 10 months in prison, to be followed by 3 years of supervised release, and ordered to pay $698,943.31 in restitution.
- Wayne Cunningham, 53, of College Park, Georgia, was sentenced to 7 years, 3 months in prison, to be followed by 3 years of supervised release, and ordered to pay $46,860 in restitution.
- Christian Okafor, 36, of Duluth, Georgia, was sentenced to 3 years, 10 months in prison, to be followed by 3 years of supervised release, and ordered to pay $97,030.99 in restitution.
This case was investigated by Special Agents of the United States Secret Service and Federal Bureau of Investigation.
Assistant United States Attorney Stephen H. McClain and former Assistant United States Attorney Nick Oldham prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Houston Man Pleads Guilty to Cocaine TraffickingRead the Press Release
PENSACOLA, FLORIDA – Gerard Germaine Jackson, 34, of Houston, TX, entered a guilty plea this morning in United States District Court to conspiring to supply up to fifty kilograms of cocaine for distribution in the Pensacola area. Jackson also admitted supplying more than 500 grams of cocaine to Pensacola distributors on April 21, 2010, which was charged in a second count. The guilty pleas on these counts were announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At his sentencing by Chief U.S. District Judge M. Casey Rodgers, Jackson will face a mandatory minimum sentence of twenty years up to a potential maximum of life in prison, $10,000,000 in fines, up to ten years of supervised release, and a $200 special monetary assessment. As part his guilty plea, Jackson agreed to the forfeiture of his interest in eighteen real properties located in Houston, Texas, a 2009 BMW, and the entry of a monetary judgment against him of $500,000.
The conviction comes as a result of a two year federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation that has, to date, resulted in 20 federal narcotics convictions, the seizure of multiple kilograms of cocaine, and the seizure and forfeiture of drug related assets that include real and personal property, currency, and the entry of money judgments against profits derived from drug transactions conducted in this district and elsewhere.
The case was investigated by the United States Drug Enforcement Administration (DEA), with assistance from the Internal Revenue Service – Criminal Investigation Division, and the Pensacola Police Department, Narcotics Section. This and the related cases were prosecuted Assistant U.S. Attorney Thomas Swaim.
Hot Springs Man Pleads Guilty to Using Counterfeit MoneyRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeffrey Walsh, age 35, of Hot Springs, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on January 28, 2013 and pled guilty to an indictment that charged him with Uttering Counterfeit Obligations of the United States. The maximum penalty upon conviction is 20 years of imprisonment and a $250,000 fine.
The charge relates to Walsh passing counterfeit twenty dollar bills at Rapid City stores Best Buy, Bed Bath & Beyond, Scheels All Sports, and Blockbuster in August 2012. The investigation was conducted by the United States Secret Service, Pennington County Sheriff's Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the Chadron Police Department in Nebraska. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
A presentence investigation was ordered and a sentencing date was set for June 7, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Fort Thompson Man Charged with Firearm and Controlled Substance OffensesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota man has been indicted by a federal grand jury for Felon in Possession of a Firearm, Possession with Intent to Distribute a Controlled Substance and Firearm Offense.
Samuel Redwater, age 22, was indicted on January 16, 2013. Redwater appeared before U.S. Magistrate Judge Mark A. Moreno on January 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment, $250,000 fine, or both; 5 years of supervised release and an additional 3 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered. The charges are merely accusations, and Redwater is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Assistant United States Attorney Kathryn N. Rich is prosecuting the case. Redwater was remanded to the custody of the U.S. Marshals. A trial date has not been set.
Former U.S. Postal Service Highway Contract Route Driver Sentenced to 33 Months for Stealing from U.S. Mail and Possessing Oxycodone with the Intent to DistributeRead the Press Release
LOUISVILLE, Ky. – A former U.S. Postal Service highway contract route driver was sentenced in United States District Court by Chief Judge Joseph H. McKinley, Jr. today to 33 months in federal prison followed by a term of three years supervised release, for theft of mail and possession with intent to distribute Oxycodone announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to information presented at sentencing, Joshua Wayne Salsman, age 32, of Hardin County, while employed as a postal highway contract route driver in the Meade County, Kentucky area, was arrested on July 5, 2012 following an investigation into numerous mailed letters containing gift cards and prescription drugs that had gone missing.
Salsman pleaded guilty to four charges in a six count federal superseding indictment on October 25, 2012. According to the plea agreement, from April through May, 2012, Salsman stole greeting cards and gift cards from an authorized mail route. Salsman further admitted that from January through April, he stole prescription drugs from an authorized mail route originating from the Louisville V.A. Hospital. Salsman also admitted that from January through April 2012, he knowingly and intentionally possessed with intent to distribute Oxycodone in a prescription form that was stolen from the mail.
This case was prosecuted by Special Assistant United States Attorney Micah R. Reyner and was investigated by the U.S. Postal Inspection Service.
Former TVA Vice President Indicted for Unlawful Financial Investments in IranRead the Press Release
KNOXVILLE, Tenn. – Federal agents arrested a former TVA vice president, Masoud Bajestani, 57, formerly of Chattanooga, Tenn., as he arrived at the Atlanta international airport on a flight from Dubai Sunday morning. Bajestani was indicted on four felony charges by a federal grand jury in Knoxville on Dec. 4, 2012, for allegedly violating the International Emergency Economic Powers Act, and making false statements to the Tennessee Valley Authority (TVA).
Bajestani appeared in court on Feb. 4, 2013, before U. S. Magistrate Judge C. Clifford Shirley, Jr., and pleaded not guilty. The United States made a motion for Bajestani to be detained pending trial and a detention hearing is scheduled for Wednesday, Feb. 6, 2013, in U. S. District Court, in Knoxville.
According to the indictment on file with the U.S. District Court, Bajestani filed a false document with TVA in order to withdraw $1,500,000 from his deferred compensation account when he was employed as a vice president at the Watts Bar Unit II nuclear power plant during its construction phase. The indictment alleges that Bajestani then conspired with others and sent $600,000 of those funds to Iran for financial investment purposes. Economic sanctions have been imposed against Iran and it is unlawful to make financial investments in Iran without authorization from the United States Office of Foreign Assets Control.
The maximum possible penalty for each of Counts 2-3 of the indictment, which charge violations of the International Emergency Economic Powers Act, is 20 years in prison and a $1,000,000 fine. The maximum possible penalties for Count One of the indictment, which charges conspiracy, Count Four of the indictment, which charges false statements is five years in prison and a $250,000 fine.
This indictment is the result of an investigation by Homeland Security Investigations, the Internal Revenue Service, Tennessee Valley Authority – Office of Inspector General, and the Federal Bureau of Investigation. Assistant U. S. Attorney Jeffrey Theodore is representing the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt
Former Consultant Karl Motey Sentenced in Manhattan Federal Court for Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that KARL MOTEY was sentenced today to time served followed by one year of supervised release for his participation in an insider trading scheme in which MOTEY provided material, nonpublic information (“Inside Information”) about publicly traded companies to a number of individuals, including Doug Whitman, the president and founder of Whitman Capital. MOTEY pled guilty in December 2010 to securities fraud and conspiracy to commit securities fraud pursuant to a cooperation agreement with the Government. He was sentenced in Manhattan federal court by U.S. District Judge Jed S. Rakoff.
According to the Information, statements made during MOTEY’s guilty plea proceeding, MOTEY’s testimony during the criminal trial of Doug Whitman, and the Government’s sentencing submission in MOTEY’s case:
From approximately late 2007 through early 2009, MOTEY, through his consulting company, the Coda Group, provided Inside Information relating to Marvell Technology Group (“Marvell”) and Marvell’s customers to co-conspirators including Whitman, who regularly purchased and sold securities. MOTEY provided this Inside Information with the understanding that his tippees would use the information to trade securities. In exchange for providing this information, the Coda Group received quarterly consulting fees from its clients, including soft-dollar payments from Whitman Capital.
MOTEY, 48, was ordered to pay $40,000 in forfeiture and a $200 special assessment fee.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jillian B. Berman, Christopher L. LaVigne, and Antonia M. Apps are in charge of the prosecution.
Former Carson Helicopter Executive Indicted for Fraud and Endangering the Safety of Aircraft in FlightRead the Press Release
MEDFORD, Ore. - Steven Metheny, 42, of Central Point, Oregon, and Levi Phillips, 45, of Grants Pass, Oregon, were indicted last week by a federal grand jury sitting in Medford, Oregon. Metheny was a former Vice President of Carson Helicopters Inc. in Grants Pass, Oregon. Both Metheny and Phillips were charged with conspiracy to defraud the United States Forest Service involving contracts awarded to Carson Helicopters, Inc., in 2008 for helicopter services in firefighting operations. Metheny was also charged in 22 other counts with mail and wire fraud, making false statements to the Forest Service, endangering the safety of aircraft in flight, and theft from an interstate shipment.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty. If convicted, Metheny and Phillips face a maximum sentence of 20 years in prison for the conspiracy to defraud count, and Metheny also faces a maximum sentence of 20 years for each mail and wire fraud count, 20 years for each endangering the safety of aircraft in flight count, 10 years for the interstate theft count, and up to five years for each false statement count.
For additional information, the attached indictment can be found at this link.
The U.S. Attorney's Office is working with the Offices of Inspector General for both the Department of Agriculture and the Department of Transportation in Portland, Oregon and Seattle, Washington, and the FBI and the IRS in Medford, Oregon in the investigation and prosecution of this case. The case is being prosecuted by Assistant U.S. Attorney Byron Chatfield.
Five Mason City People Face Federal Meth ChargesRead the Press Release
Corey Gardner, age 32, Amanda Eldridge, age 33, Stephen Collins, age 26, Chad Seger, age 35, and Slade Smith, age 39, all from Mason City, Iowa, have each been charged with conspiracy to distribute methamphetamine. Gardner and Seger have also been charged with distribution of methamphetamine, Eldridge and Collins have also been charged with possessing methamphetamine with intent to distribute, and Collins has been charged with possessing a firearm in furtherance of a drug trafficking crime. The charges are contained in an Indictment unsealed on February 1, 2013, in United States District Court in Cedar Rapids, Iowa.
The Indictment alleges that, on at date sometime before but no later than November 20, 2011, and continuing through the present, the defendants were involved in conspiring to distribute methamphetamine, distributing methamphetamine, and possessing a firearm in furtherance of the drug trafficking crime.
Gardner was previously convicted of a felony drug offense in April 2006 in Cerro Gordo County, Iowa.
If convicted on all charges, Eldridge, Collins, Seger, and Smith, face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $100-$400 in special assessments, and 5 years up to life of supervised release following any imprisonment, and Gardner faces a mandatory minimum sentence of 20 years’ imprisonment, and a possible sentence of life imprisonment, a $20,000,000 fine, $500 in special assessments, and 10 years up to life of supervised release following any imprisonment. Collins also faces a 5 year consecutive sentence on the gun count, a fine of up to $250,000, and 5 years of supervised release following any imprisonment.
Gardner, Eldridge, Collins, Seger, and Smith appeared on February 1, 2013 in federal court in Cedar Rapids, Iowa. Eldridge was held without bond and Gardner, Collins, Seger, and Smith were held without bond pending a detention hearing on February 6, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, and Iowsa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3004.
Fayette County Man Sentenced to 5 Years in Federal Prison for Illegal Oxycodone DistributionRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Fayette County man was sentenced to five years in federal prison for distribution of oxycodone. Kenneth James Taylor, 32, Page, Fayette County, W.Va., previously pleaded guilty in November 2012. Taylor admitted that on March 21, 2012, he sold three 30-milligram oxycodone pills to an individual cooperating with law enforcement authorities. Taylor further admitted that the illegal pill transaction took place at his Fayette County residence. He also admitted further involvement in drug trafficking.
The West Virginia State Police Bureau of Criminal Investigations conducted the investigation. Assistant United States Attorney John File handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Family Members Sentenced in Alabama in $1.9 Million<br /> Stolen Identity Refund Fraud SchemeRead the Press Release
Several family members were sentenced Friday in the Middle District of Alabama for their involvement in a $1.9 million dollar stolen identity refund fraud scheme, the Justice Department and the Internal Revenue Service (IRS) announced. Barbara Murry, Veronica Temple and Yolanda Moses each received a sentence of 57 months in prison and ordered to pay restitution in the amount of $1,908,659. Douglas Murry received a sentence of 24 months in prison and was ordered to pay restitution in the amount of $142,038. Almetta Johnson received a sentence of eight months home detention. Lee Moses, Jeffrey Temple and Courtney Johnson each received a sentence of probation.
On April 25, 2012, Barbara Murry, Douglas Murry, Yolanda Moses, Lee Moses, Veronica Temple, Jeffrey Temple, Almetta Johnson and Courtney Johnson were charged in a multi-count indictment by a federal grand jury on a variety of charges relating to an identity theft and tax fraud scheme. According to court documents, between January 2006 and April 2012, the defendants and their co-conspirators directed over 900 false tax refunds claiming in excess of $1.9 million to several bank accounts controlled by the defendants and their co-conspirators. The conspiracy consisted of two parts. First, the defendants received false tax refunds into their bank accounts and provided a portion of the funds to the third-party preparers. None of the defendants obtained the identities or prepared the tax returns in this part of the conspiracy.
According to court documents, the second part of the conspiracy centered on B & B Weaving Shop and B & B Tax Service. Barbara Murry owned and operated B & B Weaving Shop, located in Montgomery, Ala. B& B Weaving Shop was located in the same building as B & B Tax Service. Barbara Murry’s daughters, Yolanda Moses and Veronica Temple, ran B & B Tax Service. Veronica Temple and her sister, Yolanda Moses, obtained stolen identities from multiple sources. Veronica Temple, Yolanda Moses, and others filed false tax returns from both B & B Tax Service and their homes and directed the tax refunds to numerous bank accounts controlled by the defendants and their co-conspirators. Veronica Temple, Yolanda Moses, and Barbara Murry recruited individuals, including Douglas Murry, to open bank accounts in furtherance of the scheme. Many of the identity victims were 16 and 17 year-old minors.
“The Justice Department will investigate and prosecute stolen identity refund fraud crimes, whether they are committed by a single thief, or a ring of thieves,” said Assistant Attorney General Kathryn Keneally. “The prison sentences handed down today demonstrate that such invasions of personal privacy and theft of public monies will not be tolerated.”
“Individuals who commit identity theft and refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Richard Weber, Chief IRS Criminal Investigation. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
Assistant Attorney General Keneally commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Michael Boteler, and Assistant U.S. Attorney Jared Morris, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Eagle Butte Man Charged with Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Jason Garreau, age 26, was indicted by a federal grand jury on January 16, 2013. Garreau appeared before US Magistrate Judge Mark A. Moreno on January 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 20 years of imprisonment, $1,000,000 fine, or both; a mandatory period of supervised release of at least 3 years up to life and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered. The charges are merely accusations, and Garreau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case. Garreau was remanded to the custody of the U.S. Marshals. A trial date has not yet been set.
District Man Pleads Guilty to Burglary and Assault Charges in Break-In of Elderly Woman’s Home-Defendant Punched Victim, Knocking Her Unconscious-Read the Press Release
WASHINGTON - Tyran Mcelrath, 18, of Washington, D.C., pled guilty today to charges stemming from an attack he carried out against an elderly woman during a burglary last fall of the victim’s home in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Mcelrath pled guilty in the Superior Court of the District of Columbia to one count of first-degree burglary and one count of aggravated assault. He is to be sentenced May 7, 2013 by the Honorable Patricia A. Broderick. He faces a statutory maximum of 30 years in prison for the burglary offense and an additional 10 years for aggravated assault. Under the Court’s voluntary sentencing guidelines, he faces a likely range of up to eight years for burglary and up to 5 ½ years for the assault.
According to the government’s proffer of evidence, with which Mcelrath agreed, Mcelrath left his home on the morning of Nov. 7, 2012, and traveled to the 3500 block of McKinley Street NW, where the victim, an 81-year-old woman, resided. Mcelrath, who did not know the victim, went to the house intending to steal property, and broke into the home through a basement window. At the time, the victim was on the second floor of the house.
Mcelrath took some tools from the basement and made his way up to the main floor of the house, where he rifled through cabinets and took change from the victim’s change purse. Mcelrath then carried an Apple computer outside and hid it in bushes located at the base of the front porch steps. The victim then came downstairs and interrupted Mcelrath.
She walked toward the front door and politely asked Mcelrath to leave. Mcelrath then punched her repeatedly in the face with closed fists until she lost consciousness. Mcelrath then fled before police were called.
A civilian witness who came upon the woman sometime after the assault called police. Police found the victim disoriented and suffering from multiple bruises and broken teeth as a result of the beating. Police were able to identify Mcelrath as the perpetrator when they searched GPS records, which showed Mcelrath inside the victim’s home between 11:41 a.m. and 12:21 p.m., when the crimes occurred. Police used that same GPS information to locate Mcelrath in Southeast Washington the following day, and found that he matched the limited description that the victim was able to provide, and was wearing a mask that was the same as the one the victim had described. Police subsequently obtained surveillance video from Metro that showed Mcelrath as he traveled to and from the crime scene.
In announcing the plea, U.S. Attorney Machen praised the work of the Metropolitan Police Department officers and detectives who investigated the case. He also commended the efforts of Victim Witness Program Specialist Jennifer Clark, for her work with the victim in this case, and Assistant U.S. Attorneys Ann Carroll and Jonathan Kravis, who investigated and indicted the case.
13-038Devils Lake Man Pleads Guilty to Striking, Beating and WoundingRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on Feb. 4, 2013, Zev Boyd Rush, 32, of Devils Lake, N.D., pleaded guilty before U.S. District Judge Ralph R. Erickson to a charge of striking, beating and wounding.
On Oct. 26, 2010, Rush followed Joseph Scott Yankton from Devil’s Lake, N.D. onto the Spirit Lake Indian Reservation to Yankton’s home. Rush then assaulted Yankton with a black metal collapsible baton causing numerous contusions to Yankton’s arms and leg.
The misdemeanor charge carries a maximum sentence of six months in prison. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Sentencing for Rush has been scheduled for April 29, 2013, in U.S. District Court in Fargo, North Dakota, at 1:30 p.m.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Defendant Extradited from Mexico to U.S. Based on Federal Defense Article Smuggling ChargesRead the Press Release
Erik Alan Garza, age 25, of Eagle Pass, TX, appeared in federal court this morning in San Antonio following his extradition late Friday from Mexico based on federal smuggling charges filed in the Western District of Texas announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Acting Deputy Special Agent in Charge Monica Mapel, San Antonio Division.
Garza is charged by federal grand jury indictment returned in Del Rio in June 2012 with six counts of aiding and abetting the smuggling of goods from the United States. According to the indictment, on various occasions between June 19, 2010, and February 17, 2012, Garza and an accomplice, 32-year-old Eagle Pass resident Rolando Tamayo, illegally attempted to smuggle defense articles into the Republic of Mexico from the United States. Those items included night vision monocular goggles, a thermal goggle, 400 sets of AR-15 front and rear flip-up tactical sights, approximately 5,000 high-capacity assault rifle magazines and approximately 6,000 rounds of ammunition, including 100 rounds of .50 caliber ammunition.
The indictment also charges Tamayo, who remains a fugitive, with two counts of aiding and abetting the smuggling of goods from the United States.
Each charge calls for a maximum sentence of ten years in federal prison upon conviction.
“Gun and drug trafficking fuels violence by criminal organizations and threatens the security of the people along our borders and throughout the country,” said Monica Mapel, acting deputy special agent in charge of HSI in San Antonio. “HSI special agents will continue working jointly with our law enforcement partners to utilize our expertise in import and export enforcement in order to keep our citizens safe and secure.”
This case was investigated by agents with Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The Department of Justice Office of International Affairs as well as the United States Marshals Service assisted in Garza’s extradition. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Cordova Couple sentenced for tax crimesRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that James Leroy Jensen, 59, and Robin L. Jensen, 60, residents of Cordova, Alaska, were sentenced for willfully violating federal income tax laws.
James Jensen had previously pled guilty to evading taxes associated with his 1994 through 1997 income tax returns and was sentenced by U.S. District Court Judge Timothy M. Burgess to 3 years in prison, a $25,000 fine, and 600 hours of community service. Robin Jensen previously pleaded guilty to filing a false 2000 income tax return, and was sentenced by Judge Burgess to 2 years in prison, a $10,000 fine, and 200 hours of community service.
The Jensen's were also ordered to pay $311,605.65 in restitution to the U.S. Treasury and to file 2006-2009 tax returns as a condition of their supervised release. The IRS has already levied and recovered $294,537.28 in back taxes that were being held on their behalf by the Exxon Qualified Trust Fund.
According to their plea agreements, James Jensen is a commercial fisherman and Robin Jensen ran a cabin rental business in Cordova. After the IRS audited their 1994-1997 tax returns, the Jensen’s owed over $100,000 in additional taxes and they began to challenge the jurisdiction of the IRS, and the authority of the federal government to tax them.
In 2001, the IRS recorded a Notice of Federal Tax Lien of $201,029 against the Jensen’s for tax years 1994 through 1997. The Jensen’s appealed the IRS collection process and went to tax court in 2003. At a hearing, the presiding judge said that James Jensen’s arguments about his tax liability were “frivolous gibberish.” The judge denied the appeal and fined James Jensen an additional $10,000.
Instead of complying with the tax laws, the Jensen’s created several entities including a trust in Nevada and two “corporation soles” in Utah, one of which named James Jensen as “overseer.” These nominee entities were used to take title to assets that belonged to the Jensen’s, and thereby, open bank accounts for the Jensen’s to conceal income, including over a million dollars accredited to James Jensen’s fishing income between 2004 and 2007. James Jensen used money from these accounts to purchase at least $100,000 in gold coins and pay off a timeshare condominium in Kahana Beach, Hawaii.
In addition, according to the plea agreement, James Jensen tried to thwart IRS collection efforts by mailing a false document called a “Bill of Exchange” to the Secretary of the U.S. Treasury. This document purported to be a payment of $339,888.81 that would eliminate his tax debt for 1994 through 1997. James Jensen also attempted to use these same false documents to have IRS liens removed from his funds in the Exxon Qualified Settlement Fund. Both of these attempts failed.
The Jensen’s also filed false tax returns from 1998-2003, claiming they had no taxable income because their earnings were not taxable under the discredited “claim of right” theory. Finally, the Jensen’s failed to file tax returns from 2004-2007, based on claims that the corporation sole entities they created in Utah, “Rhema Foundation” and “Eyak River Ministries”, were exempt from filing tax returns or paying taxes for religious reasons.
The government’s sentencing memorandum concerning Robin L. Jensen argues that she colluded with her husband to conceal assets from IRS collection efforts and that, rather than fulfilling their tax obligations, the Jensen’s “flooded” the IRS with frivolous literature and for 14 years and used a complex series of schemes to avoid paying their taxes.
During the sentencing hearing, Judge Burgess described the Jensen's tax evasion schemes as "sophisticated, well thought-out, and relentless." The judge also recognized that the Jensen's, like other tax evaders, still took advantage of all the benefits that the government provides, even without paying their share.
U.S. Attorney Karen Loeffler noted that paying taxes on income is a necessary part of citizenship, and those that simply refuse, for no good reason; to pay their proper share will be justly and properly prosecuted for their wilful crimes.
The case was investigated by the Internal Revenue Service – Criminal Investigation Division and was jointly prosecuted by Assistant U.S. Attorney Bryan Schroder of the U.S. Attorney’s Office for the District of Alaska and Ignacio Perez de la Cruz of the Department of Justice Tax Division.
Colorado Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that Gary Hassell, age 48, of Colorado Springs, Colorado appeared before U.S. Magistrate Judge Mark A. Moreno and pled guilty to a Superseding Information that charged him with Failure to Pay Child Support Obligations. Hassell was convicted of that offense and sentenced on February 1, 2013 to probation. He is also to repay the outstanding child support in the amount of $18,452.63.
Hassell was indicted for Failure to Pay Legal Child Support by a federal grand jury on January 10, 2012. The charges stem from an incident occurring from on or about April 1, 1999, and continuing to the present. Hassell, while residing in a different state than his minor child, willfully and unlawfully failed to pay a past due child support obligation, as ordered by the Sixth Judicial Circuit, Lyman County, South Dakota. As of August 31, 2011, Hassell had an outstanding child support obligation in the amount of $18, 452.63.
The investigation was conducted by the Office of the Inspector General and Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Brimfield Man Pleads Guilty to Mortgage FraudRead the Press Release
BOSTON - A former Brimfield man was convicted today in U.S. District Court in Springfield of falsifying information on a loan application.
Jeffrey Dodge, 53, pleaded guilty before U.S. District Judge Michael A. Ponsor to bank fraud and false statement on a loan application.
Between June 2006 and November 2006, Dodge supplied false information and false documents to Bank of America while applying for a government-guaranteed mortgage loan. Dodge falsely stated that he had not been foreclosed upon when in fact he had, just months earlier, after defaulting on another government mortgage loan.
Sentencing is scheduled for May 14, 2013. The maximum sentence under the statutes is 30 years in prison, followed by five years of supervised release and a $1 million fine on each count.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorneys Alex J. Grant and Michelle L. Dineen Jerrett of Ortiz's Springfield Branch Unit.
Berlin Man Sentenced to 8 Years on Child Pornography OffensesRead the Press Release
CONCORD, N.H. – George McAlpin, 34, of Berlin, was sentenced in United States District Court for the District of New Hampshire to 8 years in federal prison and 15 years of supervised release after pleading guilty to transportation and possession of child pornography, announced United States Attorney John P. Kacavas.
In May of 2010, law enforcement agents in Chicago, IL, conducted an investigation into the illegal trafficking of child pornography. Information forwarded to the Federal Bureau of Investigation indicated that images of child pornography had been sent to the defendant’s email account. McAlpin was interviewed by agents of the FBI, and admitted to knowingly possessing and transmitting images of child pornography via computer. A search of the defendant’s computer revealed thousands of images and numerous videos depicting the sexual assaults of children.
McAlpin will be required to register as a sex offender in any state in which he lives or works following his release from prison.
This case was investigated by the Federal Bureau of Investigation, the Berlin Police Department and the Internet Crimes Against Children Task Force. The case was prosecuted by United States Attorney John P. Kacavas and Assistant United States Attorney Helen White Fitzgibbon, the U.S. Attorney’s coordinator for Project Safe Childhood.
Project Safe Childhood is a nationwide initiative of the United States Department of Justice aimed at combating the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Beaver Dam Woman Who Defrauded Social Security Administration Sentenced to 3 Months Incarceration and Orders to Pay $67,683 in RestitutionRead the Press Release
United States Attorney James L. Santelle announced that on February 1, 2013, Sara Livingston (age: 42) of Beaver Dam was sentenced to serve 3 months of incarceration and ordered to pay $67, 683 in restitution to the Social Security Administration. Livingston had previously pled guilty to theft of government funds and making false statements to the Social Security Administration (SSA).
In February 2008, Livingston applied for and received Social Security Disability benefits based on false information. Livingston failed to inform the SSA that she was employed by a Beaver Dam chiropractic clinic and earning income above allowable limits. Additionally, in September 2008, Livingston started a home childcare business and earned substantial income while still collecting Social Security disability benefits.
The Inspector General’s Office for the Social Security Administration began their investigation in September 2011 after they received an anonymous tip. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
Arizona Man Sentenced for Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Arizona man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on January 29, 2013 by Chief U.S. District Judge Jeffrey L. Viken. Ronald Eugene Stocker, age 73, was sentenced to time served, 2 years' supervised release and a $100 special assessment to the Victim Assistance Fund.
The charge relates to Stocker conspiring with another person to distribute 50 grams or more of methamphetamine in the District of South Dakota and elsewhere in 2011 and 2012. Stocker pleaded guilty to the charge on September 6, 2012.
This case was investigated by the Drug Enforcement Administration and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Apple Valley Woman Pleads Guilty to Defrauding A Home Health Care Company and MedicaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, an Apple Valley woman pleaded guilty to defrauding both her employer and Medica. Lori Jo Mueller, age 48, pleaded guilty to one count of wire fraud and one count of health care fraud in connection to the crime. Mueller, who was charged on January 9, 2013, entered her plea before United States District Court Judge David S. Doty. In her plea agreement, Mueller admitted that from June of 2006 through June of 2012, she embezzled approximately $840,000 from Edelweiss Home Health Care, using the funds for her personal use.
Mueller began working for Edelweiss, located in Maple Grove, in 2002, and was ultimately promoted to the position of vice president of operations. In that capacity, she was responsible for the review and payment of corporate invoices, bookkeeping, and other financial matters. Mueller admitted using her access to the corporate checking account to issue payments to herself. She also concealed her actions from the company owners and made misrepresentations concerning the company’s financial state.
In addition, from March of 2010 through June of 2012, Mueller defrauded Medica, a non-profit corporation that provides health insurance products to individuals and families. She submitted claims to various insurers, seeking reimbursement for services provided by Edelweiss nursing staff. In some instances, Mueller double-billed by allowing claims for the same services to multiple insurance providers. For example, Mueller allowed both Minnesota Medicaid and Medica to be billed for identical services provided to one client. The particular double-billing resulted in a double-payment to Edelweiss with Medicaid being the proper payer and Medica being the overpayer. As a result of this criminal behavior, Mueller caused more than $631,000 in fraudulent proceeds to be paid by Medica.
For her crimes, Mueller faces a potential maximum penalty of 30 years in federal prison for wire fraud and ten years for health care fraud. Judge Doty will determine her sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services-Office of Inspector General (“DHHS-OIG”). It is being prosecuted by Assistant U.S. Attorney David M. Genrich.
The U.S. Attorney’s Office participates in a task force with the Medicaid Fraud Control Unit at the Minnesota Attorney General’s Office that focuses on home health care fraud trends. The task force includes the DHHS-OIG, the FBI, the Internal Revenue Service, and other federal, state, and local law enforcement partners.
As a result of federal convictions for health care fraud, defendants are excluded from participating in federal health benefit programs, including Medicare and Medicaid. Exclusion determinations are made by the U.S. Department of Health and Human Services. Nationwide, more than 3,000 individuals were excluded from program participation in Fiscal Year 2010 based upon criminal convictions or patient abuse or neglect, license revocations, or other factors.
For more information, visit http://www.stopmedicarefraud.gov/or http://www.stopfraud.gov/protect-health.html.Alabama Woman Pleads Guilty in a Stolen Identity Refund Fraud SchemeRead the Press Release
Larreka Jackson pleaded guilty today in the Middle District of Alabama to her role in a multi-million dollar conspiracy to use stolen identities to obtain tax refunds, the Justice Department and the Internal Revenue Service (IRS) announced today.
On Aug. 15, 2012, a federal grand jury in Montgomery, Ala., returned a 25-count indictment charging Larreka Jackson for conspiring to file false tax returns using stolen identities, filing false claims, wire fraud and aggravated identity theft. According to the indictment, Jackson operated a tax preparation business called It’s Tax Time in Montgomery. Jackson used It’s Tax Time as a front to file false tax returns using stolen identities. Jackson unlawfully obtained the names and Social Security numbers of actual persons and filed false tax returns using those names. Jackson directed the fraudulent tax refund to bank accounts controlled by her and her co-conspirators.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Accountant Enters Guilty PleaRead the Press Release
PITTSBURGH - An accountant has entered a guilty plea in Pittsburgh to charges of conspiracy and violating federal tax laws, United States Attorney David J. Hickton announced today.
Martin R. Bujaky, 63, of Gibsonia, Pa., entered a guilty plea to six counts before United States District Judge Terrence F. McVerry.
According to evidence presented to the Court by Assistant United States Attorney Margaret E. Picking, between approximately 2000 and 2007, Bujaky, an accountant, conspired with others to harbor out-of-status aliens employed in the hotel housekeeping industry in the Pittsburgh area, as well as Cleveland, Columbus, and Cincinnati, Ohio, by knowingly preparing false tax returns on behalf of their employers, which failed to report their wages as income. Bujaky assisted in the preparation and presentation of false quarterly tax returns for portions of 2005 and 2006 for B&M Best Consulting Co. by understating the size of the payroll and the employment taxes due to the Internal Revenue Service. These false returns accounted for approximately $3 million in unreported wages. U.S. Attorney Hickton stated that the entire scheme, over the course of seven years, resulted in a tax loss of approximately $3.7 million.
The law provides for a maximum total sentence of 23 years in prison, a fine of $1.5 million, 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 Margaret E. Picking is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation, Department of Homeland Security- Homeland Security Investigations and U.S. Department of Labor conducted the investigation that led to the prosecution of Bujaky.
1 February 2013
Westminster Man Is Sentenced to 72 Months in Prison for Orchestrating A $1.7 Million Real Estate SchemeRead the Press Release
DENVER – Steven J. Mascarenas, 53, of Westminster, Colorado, was sentenced recently by U.S. District Court Judge Robert E. Blackburn to serve 72 months in federal prison for wire fraud, making a false statement to a pretrial services officer, and escape, U.S. Attorney John Walsh, Denver FBI Special Agent in Charge James Yacone and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Mascarenas was ordered to spend 3 years on supervised release after he serves his term of imprisonment. Judge Blackburn also ordered Mascarenas to pay restitution totaling $1,776,152.21. Mascarenas will surrender to the Bureau of Prisons once a facility is designated.
Steven Mascarenas was indicted on April 22, 2010 along with co-defendants Kathy Mascarenas (wife of Steven) and Katrina Roberts. He pled guilty on July 3, 2012 before Judge Blackburn. Katrina Roberts pled guilty and was sentenced to 20 months in prison on July 27, 2012. Kathy Mascarenas pled guilty and was sentenced to 24 months in prison on November 6, 2012.
According to court documents, in 2004, Defendant Steven J. Mascarenas, then an attorney and licensed real estate broker, orchestrated the purchase and resale of residential properties in “The Broadlands”, a subdivision in Broomfield, Colorado. He arranged to have individuals serve as “credit buyers” to obtain loans, purchase the properties, and resell them shortly thereafter at inflated prices to other “credit buyers” in his select group. He concealed from the lenders that these “credit buyers” were only acting at his direction and were being compensated after the closings for their participation in having obtained the loans and purchased the properties.
Mascarenas had Roberts prepare appraisal reports in which she fraudulently inflated the fair market values of the properties by $100,000 to $325,000. To make the inflated values in all of her reports appear legitimate, she falsely represented that the purchases, which were actually sales at market value, were “distressed” sales or “quick” sales below market value.
Then, based on the fraudulent appraisals, Steven Mascarenas set the prices for the resales far beyond their true market values, and arranged for the buyers to obtain 100% financing for them.
To ensure that the desired funding would be approved for the buyers for both the purchases and the resales, Steven Mascarenas caused false information about their qualifications to be incorporated into their loan applications to enable them to qualify for the loans.
He caused the proceeds from the second sales to be directed to entities of his choice.
Kathy Mascarenas conducted financial transactions as necessary to facilitate, perpetuate, and conceal the fraud.
All of the loans went into default, and the loss to the lenders was approximately $1,776,162.21.
While out on bond in the Fall of 2011, Mascarenas repeatedly lied to his supervising pretrial services officer, telling him that he was employed making sandwiches at a local Quizno’s restaurant. In fact, he was managing the store under the assumed name of “Steven Jay”, in violation of the conditions of his bond.
In June of 2011, as a condition of Steven’s bond, he was required to reside in a halfway house and he was not permitted to leave the facility without permission. Hours before he was to be taken to a prison facility, he fled. An arrest warrant was issued, and on December 4, 2011, Steven was arrested by the Lakewood Police department at a motel in Lakewood, Colorado.
“Mortgage fraud harms everyone involved in buying a home – buyers, appraisers, real estate agents, and bankers,” said U.S. Attorney John Walsh. “Lying on mortgage applications is a fraud, and a federal criminal felony. As the financial crisis of 2007 and 2008 showed us, following the rules in real estate transactions matters – and those who don’t, face time in federal prison.”
“Mortgage fraud has had a significant impact in Colorado,” said Denver FBI Special Agent in Charge James Yacone. “Mascarenas was an attorney and licensed realtor who used his professional license to instill trust in others. His conviction and recent sentencing sends a clear message that using positions of trust to commit fraud will not be tolerated.”
“Mortgage fraud erodes our economy, and threatens the financial health of the communities in which we live; this sentence reminds us there are consequences for committing such fraud," said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
This case was investigated by the Federal Bureau of Investigation and the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Linda Kaufman and James Allison.
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Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Phillip Ramos, II, 25, of East Chicago, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession with the intent to distribute cocaine.Sentencing has been set for 4/23/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Francisco Ramirez, 50, of East Chicago, Indiana, a defendant in the case US v Lozano et al., was sentenced by Chief Judge Philip Simon to 5 months imprisonment, $4,108.50 in restitution, and 1 year of supervised release, to include 5 months of home detention, after pleading guilty to the felony offense of receipt of a bribe by an agent of a local government receiving Federal Funds.Ramirez was the Treasurer of the School City of East Chicago.According to documents filed in this case, the scheme provided that Gerardo Lozano, who operated Greentree Builders, perform free home improvement work at Ramirez’s residence in return for contracts and payments from the School City to Greentree Builders.Ramirez created the work and made sure that the School City could pay for it. In the end, it cost the School City more than $173,000.Ramirez handled almost all of the paperwork, including signing the payment claim forms. The agreement also called for Lozano to overbill the School City. This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Gary Bell.
James Reynolds, Jr., 46, of Lafayette, Indiana, was sentenced by Senior District Judge Rudy Lozano to 30 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of making false statements in the purchase of a firearm.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Steven Moten, 53, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 60 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of crack cocaine.According to documents filed in this case, Moten has previous convictions for murder in 1977 and dealing cocaine in 2002.This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity:
DISPOSITION:
Roberto Villa, 38, of Milford, Indiana, was sentenced by District Judge Theresa Springmann to 48 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Villa has a prior conviction for dealing cocaine.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Two Omaha Men Found Guilty of Conspiracy to Distribute Crack CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that after a jury trial which began January 22, 2013, Guy E. Allen and Christopher Mallett were found guilty of conspiracy to distribute crack cocaine. Several crack users testified about the defendants’ distribution in the near south area of Lincoln. The jury also heard evidence of several drug purchases made by undercover Lincoln Police officers. Lincoln Police also seized crack from Guy Allen and Terrell Tyler during the investigation. The conspiracy started in the fall of 2009 and lasted until at least the arrest of Allen, June 15, 2011.
This case was investigated by the Lincoln Police Department.
Texas Man Charged with Mailing Threatening CommunicationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Texas man was indicted by a federal grand jury for Mailing Threatening Communications.
Carlos Kidd, age 33, was indicted in the United States District Court for the District of North Dakota on November 6, 2012, for mailing threatening letters to a federal judge in North Dakota. He appeared before U.S. Magistrate Judge Karen Klein in Bismarck, North Dakota on January 24, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine. The charge is merely an accusation and Kidd is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman is prosecuting the case. Kidd was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Tampa Man Charged with Multiple Child Pornography OffensesRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces today the filing of a criminal complaint charging Michael Alan Klevene (61, Tampa) with transportation, receipt, and possession of child pornography. If convicted, Klevene faces a mandatory minimum of 5 years, up to 20 years in federal prison for the transportation and receipt charges, and up to 10 years in federal prison on the possession charge.
The complaint alleges that Klevene traded child pornography with others on the Internet and admitted to collecting images and videos depicting child pornography for more than 20 years. On February 1, 2013, a federal search warrant was executed at Klevene's residence in Tampa. Pursuant to the search, law enforcement seized computers, thumb drives, an external hard drive, and other media that Klevene admitted belonged to him. A preview of Klevene's desktop computer and thumb drives revealed that they contained hundreds of images depicting child pornography. During an interview, Klevene told law enforcement that he posted non-pornographic images of children on the Internet in order to obtain more child pornography. A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Florida Department of Law Enforcement (FDLE) and the Tampa Police Department. It will be prosecuted by Assistant United States Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Tallahassee Tax Preparer Indicted for Tax Fraud and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Monique Shevette Kimble, 41, of Tallahassee, has been indicted for preparing false income tax returns, filing false claims against the government, and identity theft. The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
The 13-count indictment alleges that between February and April 2009, Kimble, the owner- operator of Speedie Tax Service in Tallahassee, prepared federal income tax returns seeking refunds based upon false claims for first-time home buyer and education tax credits. Kimble is also alleged to have used W-2 forms to file fraudulent claims for tax refunds, falsely reporting that two taxpayers had received income from a temporary employment agency where Kimble knew the taxpayers had never worked. The indictment charges that Kimble unlawfully used the name and social security number of one of these taxpayers in connection with the falsified W-2 return.
Kimble is scheduled for trial on April 1, 2013 before Judge Robert L. Hinkle in Tallahassee, Florida.
- If convicted, Kimble faces a maximum of five years in prison on each of the charged offenses.
- U.S. Attorney Marsh praised the work of the Internal Revenue Service, whose investigation led to the indictment in the case.
- The case is being prosecuted as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters.
The case is being prosecuted by Assistant U.S. Attorney Eric K. Mountin.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Social Networking Company to Pay $800,000 for Collecting Personal Information from MinorsRead the Press Release
The company that operates Path, an online social networking application, agreed to pay an $800,000 penalty to settle charges that it violated the Federal Trade Commission (FTC) Act and the Children’s Online Privacy Protection Rule, the Justice Department announced today.
In a complaint filed on Jan. 31, 2013, the United States alleged that San Francisco-based Path Inc. violated the Children’s Online Privacy Protection Rule by collecting personal information from children under the age of 13 without obtaining parental consent. According to the complaint, in over 3,000 instances, Path collected personal information from the address books in children’s mobile devices, including the names, addresses, phone numbers and email addresses of the child’s contacts. Path also collected personal information from children during the registration process and by allowing them to post content online.
“The rules established by the Children’s Online Privacy Protection Act play an important role in keeping kids safe online,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division. “Companies that market to children must respect their privacy by getting parental consent before collecting any personal information, and the Justice Department will work with the FTC to ensure that they do.”
According to the complaint, Path also violated the FTC Act by failing to disclose to consumers that it was automatically collecting information from users’ address books on their mobile devices. Path’s privacy policy and “Add Friends” feature led consumers to believe that this information would be collected only with the user’s consent.
Along with the civil penalty, Path agreed to an injunction barring future violations of the FTC Act and the Children’s Online Privacy Protection Rule. Path further agreed that it would delete all information previously collected from children under age 13, implement a comprehensive privacy program, and submit to regular assessments by an independent third party.
The FTC, which oversees the Children’s Online Privacy Protection Rule, referred the case to the Justice Department. The lawsuit, United States v. Path Inc., was filed in the Northern District of California.
Principal Deputy Assistant Attorney General Delery thanked the FTC for investigating this matter and referring it to the department. The Consumer Protection Branch of the Justice Department’s Civil Division brought the case on behalf of the United States.
Sentences Imposed in Two Mortgage Fraud ProsecutionsRead the Press Release
Syracuse, NY—United States Attorney Richard S. Hartunian and IRS Criminal Investigation Division Special Agent in Charge Toni Weirauch, announced the sentences imposed in United States District Court in Syracuse on Kevin M. O’Connell and Kevin D. O’Connell, two defendants in a long-term mortgage fraud investigation.
Kevin M. O’Connell, 35, and Kevin D. O’Connell, 62, both of Albany, NY were each sentenced to 24 months incarceration by Senior District Court Judge Norman A. Mordue. In addition, Kevin M. O’Connell was ordered to pay restitution in the amount of $2,275,584.88 and to pay a forfeiture judgment in the amount of $4,628.886.48. Kevin D. O’Connell, was ordered to pay restitution in the amount of $2,136,444.09.
Kevin M. O’Connell was a principal of PB Enterprises and employed his father, Kevin D. O’Connell to assist in a series of transactions that defrauded banks that were offering mortgages in the Albany area. The essence of the fraud was that PB Enterprises found inexpensive properties, usually rental properties that were for sale. They then recruited buyers to purchase the property at higher prices, with promises that the buyer would pay “no money down” and would instead receive a check at the closing. In dozens of transactions, PB Enterprises fraudulently obtained mortgages for those purchasers at the higher purchase price by providing false information to the lenders. PB Enterprises then arranged with closing agents to submit documents to the lenders that disguised the fact that the purchase prices were inflated and that the purchaser and the principals of PB Enterprises were splitting the excess mortgage money. The mortgage lender was falsely led to believe that the mortgage proceeds were necessary to purchase the property, and had not been diverted to pay the buyer and PB Enterprises. The restitution figures imposed by Judge Mordue represent the losses suffered by the lenders from this practice.
The principals of another such organization, Team Title, who were engaged in a similar scheme, pled guilty and were sentenced previously in Albany. Another principal of PB Enterprises, Michael Crowley, is scheduled to be sentenced on February 5, 2013, in Syracuse. A closing agent used by PB Enterprises and Team Title, attorney Michael G. Bouchard, was found guilty of conspiracy and bank fraud after trial in Syracuse in December. Mr. Bouchard and his two paralegals are scheduled to be sentenced in April.
This case is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division in Albany, NY. Further questions or inquiries may be directed to Assistant United States Attorney Michael Olmsted, the prosecutor handling the case, at (315) 448-0672.
Rocky Mount Tax Service Owner Agrees to Plead GuiltyRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court yesterday, charges were filed under a Criminal Information against TINA LURETHA TYREE JOHNSON, 45, of Rocky Mount, North Carolina. JOHNSON has entered into a plea agreement in which she will pled guilty to Tax Fraud and Aiding and Abetting in violation of Title 18, United States Code, Section 287 and 2. The case is to be scheduled before Chief United States District Judge James C. Dever
U.S. Attorney Walker stated, “Our tax system relys on the honesty of tax payers with a heightened duty of honesty expected from professional tax preparers. Whenever someone like JOHNSON deliberately files false returns, the U.S. Attorney’s Office in support of the IRS will pursue the matter through the Courts as provided by our laws.”
According to the Criminal Information filed on January 31, 2013, JOHNSON, beginning in or about January 2008 and continuing until on or about June 2008, did knowingly make and present, and caused to be made and presented, to the Internal Revenue Service claims against the United States for payment that were false by preparing federal income tax returns for individuals totaling approximately $40,867.00.
“A federal tax return is one of the most important financial documents that many individuals or families deal with in a given year and taxpayers need and deserve return preparers who are ethical, fully qualified and able to provide the best possible service,” stated Jeannine A. Hammett, Special Agent in Charge for IRS Criminal Investigation- Charlotte Field Office. “Taxpayers are cautioned to seek out a reputable return preparer with the proper credentials. The IRS is increasing its education and enforcement presence in the return preparer community this filing season in an effort to combat this type of fraud. Please don’t fall victim,” said Hammett.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney J. Gaston B. Williams is handling the prosecution on behalf of the government.
Rockford Woman Sentenced to 30 Months in Federal Prison for the Robbery of Associated Bank in RockfordRead the Press Release
ROCKFORD C A Rockford, Ill. woman was sentenced today in federal court for bank robbery. LATOYA SHAUNTA BURROWS, 32, of Rockford, was sentenced to 30 months in federal prison by U.S. District Judge Frederick J. Kapala for the robbery of Associated Bank, 612 North Main St., Rockford, Ill., on March 20, 2012.
Burrows pled guilty to the charge on Oct. 29, 2012. According to the written plea agreement, Burrows entered Associated Bank through the west doors at about 10:57 a.m. on March 20, 2012, wearing pink pants and a black t-shirt. Burrows immediately approached the teller counter, by passing the roped off waiting line, and handed the teller a folded piece of paper, which read: APut the money in the bag and nobody will get hurt.@ The teller removed cash from the teller drawer, but told Burrows that he did not have a bag to put the money into. Burrows took the money from the teller=s hand, stuffed the cash into her bra, and walked out of the bank. Shortly after the robbery, Burrows was arrested by the Rockford Police Department in the vicinity of the bank. She has been held in federal custody since her arrest.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent in Charge of the Chicago Office of Federal Bureau of Investigation; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Scott A. Verseman.
Ridgefield Woman Charged with Embezzling from Fairfield Housing AuthorityRead the Press Release
February 1, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging ELIZABETH JO GUTIERREZ, 47, of Ridgefield, with one count of theft concerning programs receiving federal funds. The indictment alleges that GUTIERREZ embezzled $30,000 from the Fairfield Housing Authority.
The indictment was returned on January 23, 2013, and GUTIERREZ appeared yesterday before United States Magistrate Judge Donna F. Martinez in Hartford, pleaded not guilty to the charge and was released on a $50,000 bond.
The Fairfield Housing Authority administers federal housing programs for the U.S. Department of Housing and Urban Development with the mission of providing affordable housing for eligible low-income families and the elderly. According to the indictment, GUTIERREZ served as the Executive Director of the Fairfield Housing Authority from approximately July 2010 to December 2011. In the summer of 2011, GUTIERREZ issued two checks, each in the amount of $15,000, from the Fairfield Housing Authority’s checking account and subsequently deposited them into her own checking account.
The charge of theft concerning programs receiving federal funds carries a maximum term of imprisonment of 10 years.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case has been assigned to United States District Judge Robert N. Chatigny in Hartford.
This matter is being investigated by the Department of Housing and Urban Development – Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Sean Beaty.
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(203) 821-3722 [email protected]Registered Sex Offender Charged with Sexual ExploitationRead the Press Release
BOSTON – A Williamstown man who is a registered sex offender was charged today with sexually exploiting a 16-year-old boy.
Ronald Brown, 50, was charged in a complaint with sexual exploitation of children.
According to the complaint, Brown is a level 2 registered sex offender, based upon a 1995 Connecticut conviction for sexual assault of a 12-year-old boy. In December 2012, Brown met a 16-year-old male on a website, called silverdaddies.com. Brown engaged the boy in a long series of texts, chat sessions, and emails, many of which involved explicit sexual communications. On Jan. 8, 2013, Brown viewed the boy masturbating online via Skype and received a photograph of the boy displaying his penis.Brown also arranged for the boy to run away from home so that they could live together as romantic partners. Brown purchased a one-way airline ticket for the boy to fly from his home to Newark, NJ, sent $150 for traveling expenses, and instructed him to erase files on his computer. On Jan. 19, 2013, the boy ran away from his home and flew to Newark, where Brown met him. The two drove into New York where they engaged in sex, before continuing toward Massachusetts. Ultimately, Brown was stopped by the police, who had been alerted to the boy’s disappearance.
The maximum sentence under the statute is 50 years in prison, followed by a lifetime of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated with the assistance of the Williamstown Police Department, the Massachusetts State Police and the New York State Police. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Realtor Sentenced to 30 Months for Mortgage FraudRead the Press Release
Oklahoma City, Oklahoma – SAFIYYAH TAHIR BATTLES, formerly a real estate agent with T&T Realty in Oklahoma City, has been sentenced to thirty months in prison for mortgage fraud and money laundering, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma
On June 21, 2012, a jury convicted Battles of using an interstate wire facility to defraud Saxon Mortgage and engaging in a monetary transaction with more than $10,000 from the proceeds of crime. The evidence at trial showed that in April of 2007, she used her sister’s mortgage brokerage company, Lending Leaders, to apply for a $500,000.00 loan from Saxon Mortgage of Fort Worth, Texas. Saxon required her to provide twelve months of bank statements to support her income and assets. The jury heard evidence that the bank statements had been altered by adding more than $100,000.00 to the ending balance on each statement, by deleting her husband’s name as an account holder, and by removing numerous overdraft fees.
At the closing on May 4, 2007, Battles signed a final loan application that stated falsely that she earned $344,677.92 per year and had $165,907.70 in her bank account. According to a tax return that she filed in March of 2009, Battles’s adjusted gross income for 2006 was $14,001.00; according to the records of First Security Bank, her actual account balance on May 4, 2007, was $852.50.
Based on the application information, a forged letter, and communications with the mortgage brokerage on the day of closing, Saxon Mortgage authorized $102,630.01 from the loan proceeds to be paid to a local builder. Battles took the $102,630.01 check at closing, deposited into her own bank account, and used it for her own purposes. The money-laundering count relates to a $15,000.00 check that Battles wrote to her mother, Trina Tahir, two days after she deposited the $102,630.01 check.
Today, United States District Judge Timothy D. DeGiusti sentenced Battles to thirty months in prison and ordered her to pay restitution of $326,902.34. She will be required to serve two years on supervised release after her prison term, including 104 hours of community service. The court also imposed a forfeiture judgment in the amount of $102,630.01. The sentence was based on the counts of conviction, as well as fraud that Battles perpetrated in connection with five other residential mortgages.
This sentence is the result of an investigation conducted by the IRS Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Chris M. Stephens.
Rapid City Women Charged with Concealing Person from Arrest and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that two Rapid City women have been indicted by a federal grand jury for harboring a fugitive and lying to a federal law enforcement agent.
Tina LaDeaux, age 40, and Lori Brave, age 37, were indicted on January 23, 2013, for Concealing Person From Arrest and False Statement. LaDeaux and Brave appeared before U.S. Magistrate Judge Veronica L. Duffy on January 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years' imprisonment and/or a $250,000 fine. The charges are merely an accusation and LaDeaux and Brave are presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case. LaDeaux and Brave were released on bond pending trial. A trial date has not been set.
Provider of Home Health Care Services Pleads Guilty to $294,000 Medicaid FraudRead the Press Release
NORFOLK, Va. – Angie L. Gilchrist, 57, of Suffolk, Va., pleaded guilty today in Norfolk federal court to health care fraud.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Virginia Attorney General Ken Cuccinelli made the announcement after Gilchrist’s plea was accepted by United States District Senior Judge Henry C. Morgan, Jr.
Gilchrist faces a maximum penalty of 10 years in prison and a fine of $250,000 when she is sentenced on May 22, 2013.
According to a statement of facts filed with her plea agreement, Gilchrist owned and operated A-Z Alpha Omega In-Home Personal Care Service LLC, a business located in Suffolk that was authorized to provide respite care to Medicaid recipients. Respite care is designed to provide temporary, substitute care for a Medicaid recipient that is normally provided by the family or another unpaid primary caregiver of the recipient. These services are provided on a short-term basis because of the emergency absence or need for routine or periodic relief of the primary caregiver. Between October 2008 and October 2012, Gilchrist filed approximately 385 false and fraudulent claims with the Virginia Medicaid program, representing that respite care had been provided by her company to 38 Medicaid recipients, when in fact no such care had been provided. As a result, Gilchrist obtained health care benefit payments in the approximate amount of $294,713.00 to which she was not entitled.
This case was investigated by the FBI and the Office of the Virginia Attorney General, Medicaid Fraud Control Unit. Assistant United States Attorney Alan M. Salsbury is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pharmacist/pharmacy Owner Sentenced to 17 Years for Health Care Fraud, Drug OffensesRead the Press Release
A 50-year-old Canton pharmacist who owned and operated 26 pharmacies in the metro-Detroit area was sentenced today to 17 years in prison, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge, Federal Bureau of Investigation, Robert Corso, Special Agent in Charge, Drug Enforcement Administration and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services.
U.S. District Judge Arthur J. Tarnow sentenced BABUBHAI "Bob" PATEL on 26 convictions for a health care fraud conspiracy, a drug conspiracy, and related fraud and drug violations.
Evidence presented at a six-week jury trial concluding in August 2012 showed between 2006 and 2011, the pharmacies billed Medicare and Medicaid more than $57 million. At least 25% of those billings were for drugs that were either medically unnecessary never dispensed. Additional amounts were fraudulently billed to private insurers such as Blue Cross Blue Shield of Michigan. The pharmacies operated on a business model that paid kickbacks to physicians in exchange for writing prescriptions for expensive medications. The affiliated doctors would also write prescriptions for controlled substances, without regard to medical necessity, which would be filled at the pharmacies and distributed to paid "patients" and patient recruiters. The expensive non-controlled medications would be billed but not dispensed.
In sentencing the defendant, the court told the defendant that "what you have done is reprehensible." The criminal conduct engaged in by other health care fraud violators sentenced by the court was "small scale compared to this."“Taxpayers fund Medicare and Medicaid to provide health care to needy Americans,” McQuade said. “It is gratifying to see courts impose strong sentences on defendants who exploit these programs for personal gain.”
FBI Special Agent in Charge Foley stated, "Those individuals who engaged in this health care fraud scheme stole millions of dollars over several years, from a system designed to provide health care to those in need. The FBI is committed to stopping these illegal acts and prosecuting these criminals."
"The conduct that occurred in this case was deplorable, inexcusable and dangerous" said Lamont Pugh III, Special Agent in Charge of the Chicago Region of the U.S. Department of Health & Human Services, Office of Inspector General. "The OIG will continue to work with our law enforcement partners to combat prescription drug fraud in the Medicare and Medicaid programs and seek to ensure the safety of program beneficiaries and taxpayer dollars."
Of the 26 defendants charged in the original indictment in this case, 20 defendants have either pleaded guilty or been convicted at trial. Six defendants are scheduled for trial in June. Out of 12 pharmacists charged, 11 have been convicted at trial or pleaded guilty, with one waiting to be tried. Out of four doctors charged, two have pleaded guilty, with two waiting to be tried.
Earlier this week, Judge Tarnow sentenced several of the other pharmacists who were convicted at trial. BRIJESH RAWAL, 36, of Canton; ASHWINI SHARMA, 34, of Novi; and LOKESH TAYAL, 36, of Northville, were each sentenced to terms of imprisonment of 68 months for their participation as pharmacists in these criminal offenses. These three pharmacists were non-U.S. citizens who entered the United States under a visa program for certain skilled workers, and each will be deported to the country of their citizenship upon the completion of their sentences. Defendant RAWAL is a citizen of Canada, while defendants SHARMA and TAYAL are citizens of India.
In addition to the prison sentence, defendant BABUBHAI PATEL was ordered to pay restitution to the Medicaid and Medicare programs in the amount of $17.3 million, and restitution to Blue Cross Blue Shield in the amount of $1.5 million. Defendant PATEL, who has been held without bond since his arrest on August 2, 2011, will receive credit toward his sentence for the time he has served.
U.S. Attorney McQuade thanked the Drug Enforcement Administration, the FBI, the Department of Human Services, Office of Inspector General, and Blue Cross and Blue Shield of Michigan for their tireless work in the investigation and prosecution of the case. The case is being prosecuted by Assistant United States Attorneys John K. Neal and Wayne F. Pratt.Pennsylvania Man Sentenced to 10 Years in Prison for Receipt of Child PornographyRead the Press Release
Took Videos of Boys in Public Restrooms in Maryland Without Their KnowledgeBaltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Brian Matthew Williams, age 28, of West Chester, Pennsylvania, today to 10 years in prison followed by 50 years of supervised release for receipt of child pornography.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Edward D. E. Rollins, III; Harford County State’s Attorney Joseph I. Cassilly; and United States Attorney for the Eastern District of Pennsylvania Zane D. Memeger.
“This defendant egregiously violated the privacy of young boys by secretly recording them in public restrooms, a crime that gives every parent nightmares,” said U.S. Attorney Rod J. Rosenstein. “I am grateful to the vigilant citizen who noticed the unusual behavior and immediately called 9-1-1, and to the police and prosecutors who conducted an urgent investigation.”
According to his plea agreement, on May 6, 2012, Williams spent nearly five hours at the Maryland House and Chesapeake House rest stops on I-95, walking in and out of the men’s restrooms filming several minor males, most of whom were prepubescent, as they used the urinals. Williams positioned himself at an adjacent urinal and used his cell phone to create 21 videos. Williams would then leave the restroom and capture full length images of the young boys as they walked out, including their faces. After the parents of one of the victims reported Williams’ suspicious behavior to Maryland State Police, he was arrested, charged in Cecil County and released on bond the same day.
On June 13, 2012, a search warrant was executed at Williams’ residence and computers and other digital media were seized. A number of hard drives appeared to have been removed, and the operating system on the remaining hard drive had been reinstalled on May 28, 2012.
A subsequent background investigation of Williams revealed that he had been questioned by law enforcement on two previous occasions under similar circumstances. In 2007, law enforcement contacted Williams after they received several complaints that he had followed minors into the restroom at a college basketball game. In June 2010, Williams was questioned and released after an off-duty police officer saw him in the restroom of a movie theater pointing his cell phone at the genitals of young boys using the urinals.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police, Cecil County State’s Attorney’s Office, Harford County State’s Attorney’s Office and the U.S. Attorney’s Office for the Eastern District of Pennsylvania for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Paralegal Charged in Scheme to Defraud Bay Area Law Firm and Its ClientsRead the Press Release
OAKLAND, Calif. – Ana Lissa Reyes, of San Lorenzo, Calif., was arraigned yesterday on an information charging her with multiple counts of mail fraud and tax evasion, United States Attorney Melinda Haag and IRS Criminal Investigation Special Agent in Charge Jose M. Martinez announced.
According to the information, Reyes is alleged to have worked as a secretary, office manager and paralegal for a Bay Area personal injury law firm. From about 2006 through June 2011, Reyes, without authorization, settled claims without the knowledge of the law firm or its clients and stole the settlement proceeds. It is also alleged that Reyes engaged clients without the law firm’s knowledge and stole client retainer fee payments. To carry out the scheme to defraud, Reyes created a bogus company to correspond with clients without the law firm’s knowledge and to defraud the clients into believing their cases were ongoing.
Reyes is also charged with willfully attempting to defeat a large part of the income tax due and owing for the calendar years 2006, 2007, 2008, 2009, 2010 and 2011. It is alleged that, for each of those tax years, Reyes knew her joint taxable income was substantially in excess of the amount stated on the returns, and, upon the additional taxable income, a substantial additional tax was due and owing to the United States.
Reyes made her initial appearance in federal court in Oakland yesterday and is currently out on bond. She is next scheduled to appear in federal court in Oakland at 2 p.m. on Feb. 28, 2013, for a status hearing before Judge Yvonne Gonzalez Rogers.
The maximum statutory penalty for each count of mail fraud in violation of 18 U.S.C. § 1341 is 20 years in prison and a fine of $250,000. The maximum statutory penalty for each count of tax evasion in violation of 26 U.S.C. § 7201 is six years in prison and a fine of $250,000. However, any sentence following conviction 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.
AUSA Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and IRS, Criminal Investigation.
Please note, an information contains only allegations against an individual and, as with all defendants, Reyes must be presumed innocent unless and until proven guilty.
(Reyes Information )
Palmer County, Texas, Man Sentenced to 57 Months in Federal Prison for Committing Armed Robbery of Friona Federal Credit UnionRead the Press Release
AMARILLO, Texas — John Michael Garibay, 22, of Friona, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 57 months in federal prison and ordered to pay $6,541 in restitution for committing the August 27, 2012, armed robbery of the Friona Federal Credit Union, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, at approximately 12:06 p.m. that Monday, a man wearing a gas mask, who was later identified as Garibay, entered the Credit Union, walked to a teller and demanded money. He then pulled a handgun out of his waistband and showed it to the teller. The teller gave Garibay cash, and he left the bank and headed down an alley, spilling some of the cash. He left the scene in a gray Dodge Charger.
Shortly thereafter, law enforcement located Garibay at a residence in a trailer park, where they had observed the gray vehicle. During a search of the residence, officers found items used in the robbery including matching clothing, a black Nike single strap backpack, with a five dollar bill inside the bag, and a bank money strap with “Teller 33" stamped on it. Law enforcement located a .45 caliber plastic case and .45 and .38 caliber handgun rounds in the trash can in the kitchen. Garaby identified an area two spaces down from his trailer where law enforcement located a black .45 caliber semi-automatic Taurus handgun.
As law enforcement transported Garibay to the Randall County Jail, he asked how much time he would get and said, “I made the case for you by telling you where the gun was.”
The case was investigated by the FBI, the Friona Police Department and the Palmer County Sheriff’s Office. Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo, Texas, was in charge of the prosecution.
Oxon Hill Man Sentenced to 5 Years in Prison for Receipt of Child PornographyRead 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 Raymond Talley III, age 34, of Oxon Hill, Maryland, today to five years in prison, followed by six years of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Talley must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation - Washington Field Office.
According to the plea agreement, on three occasions in August and September 2011, undercover law enforcement agents downloaded child pornography from files that Talley was sharing over the internet using a file sharing program. On October 7, 2011, two laptops, both with file sharing programs installed, were seized during a search of Talley’s home. Over 1,700 videos of children engaged in sexually explicit conduct had been downloaded and saved onto the laptops.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.
Opa-Locka Police Captain Sentenced as Part of Drug Trafficking OrganizationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), J.D. Patterson, Acting Director, Miami-Dade Police Department (MDPD), and Addy M. Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), announce that Arthur Balom, 44, of Miramar, a Captain with the City of Opa-Locka Police Department, was sentenced yesterday by U.S. District Judge Joan A. Lenard to 87 months imprisonment for his participation in the distribution of cocaine, ecstasy and oxycodone in Opa-Locka in violation of Title 21, United States Code, Section 846.
According to statements made in court during the change of plea and at the sentencing hearing, and those contained in court filings, Balom was part of a drug trafficking organization operating out of an Opa-Locka apartment complex known as “The Back Blues.” More specifically, according to in court statements, while Balom was a Captain in the Opa-Locka Police Department (OLPD), Balom aided and abetted in the distribution of drugs by the organization by: (1) providing the organization with information related to police activity in the area; (2) directing officers to leave the area; and (3) assisting members of the organization when they came into contact with law enforcement.
In one instance, discussed in court and in the pleadings, FBI agents provided Balom with a notebook containing photographs of various suspects related to an armed robbery. The FBI agents asked Balom about a suspected co-conspirator. The day after speaking with FBI agents about the suspect, Balom met with that very suspect and showed him the notebook provided by the FBI. In another instance, Balom provided ballistic vests to members of the drug organization.
Mr. Ferrer commended the FBI, ATF, the MDPD, and FDLE for their efforts in the investigation of this case. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb.
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.
Nicaraguan National Sentenced on Drug Trafficking ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Miami Field Division, announce the conviction and sentencing of Franklin William McField-Bent, a/k/a “Buda.” McField-Bent, 55, a Nicaraguan national, was sentenced yesterday by U.S. District Judge K. Michael Moore to a 235-month term of incarceration on drug trafficking conspiracy charges in violation of Title 21, United States Code, Section 963, and a 180-month term of incarceration for his participation in a conspiracy to provide weapons to a designated terrorist organization in violation of Title 18, United States Code, Section 2339B. The 180-month term of incarceration –the highest possible sentence allowable under the statute – was ordered to run concurrent to the 235-month term of incarceration. McField-Bent had previously agreed to plead guilty on November 8, 2012.
McField-Bent conceded in a factual proffer that, during the time of the charged conspiracy, he had had numerous meetings and phone calls with Colombian law enforcement officers who, posing as members of a foreign terrorist organization, sought to obtain weapons that they intended to use to launch attacks on the Colombian government. McField-Bent arranged for the March 2010 sale of six grenade launchers, 20 grenades, an Uzi submachine gun and 100 rounds to the Colombian law enforcement officers. McField-Bent also admitted to participating in the shipment of three multi-hundred kilogram loads of cocaine to Central America knowing that the cocaine would be unlawfully imported into the United States.
U.S. Attorney Wifredo A. Ferrer stated, “International drug traffickers, like this defendant, continue to pose a direct and immediate threat to our national security. Through proactive efforts and dedicated resources of our office, together with considerable international and domestic cooperation, we will continue to combat those who threaten the welfare of our citizens.”
DEA Special Agent in Charge Mark R. Trouville stated, “The sentence of Nicaraguan National William McField-Bent highlights the DEA’s commitment to target the highest level of drug traffickers regardless of their nationality. There is no danger greater than the marriage of drug trafficking and terrorism.”
“The arrest, conviction and subsequent sentencing of McField-Bent is an important accomplishment for the U.S. Government and its international partners due to the magnitude of his criminal violations and threat to the homeland,” said Alysa D. Erichs, Special Agent in Charge of ICE-HSI in Miami. “We will continue to work shoulder to shoulder with our domestic and international law enforcement partners to identify and dismantle drug and weapons trafficking organizations.”
The extradition of McField-Bent is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA and HSI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commends the outstanding investigative efforts of DEA and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Adam Fels.
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.
Nampa Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
BOISE – Jesus Manuel Zuniga, 28, of Nampa, Idaho, pleaded guilty yesterday in United States District Court to an information charging him with one count of unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on October 30, 2012, a Nampa Police officer initiated a traffic stop on a vehicle pursuant to a warrant for Zuniga’s arrest for violating his federal supervised release. After the vehicle stopped, Zuniga, who was a passenger in the vehicle, attempted to elude two Deputy U.S. Marshals. He was apprehended and arrested in possession of a firearm, later identified as a Phoenix Arms .22 semi-automatic pistol. Because Zuniga had previously been convicted in 2010 of unlawful possession of a firearm, a federal offense punishable by a term of imprisonment exceeding one year, he is prohibited from possessing firearms.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and at least three years of supervised release.
Sentencing is set for April 10, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Nampa Police Department, and the U.S. Marshals Service.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.