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29 January 2013
Charleston Man Pleads Guilty in Federal Court to Possession of Child PornographyRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Charleston man pleaded guilty in federal court to possession of child pornography. Jonathan Douglas Layne, 54, admitted that on February 21, 2008, he knowingly possessed on his computer more than 600 images and videos depicting minors engaged in sexually explicit conduct, that is actual or simulated sexual intercourse and the lascivious exhibition of the genitals and pubic area of the minors. Layne admitted that he knew the images and videos constituted child pornography. The defendant also admitted that many of the images depicted prepubescent minors. Layne lived in St. Albans, West Virginia at the time the crime occurred.
Layne also admitted that in or about October 1987, he committed two or more crimes involving sexual abuse of a minor. Layne was previously convicted in June 1989 in the Circuit Court of Kanawha County, West Virginia of first degree sexual abuse involving a minor.
Layne faces a mandatory minimum of 10 years and up to 20 years in prison because of his previous conviction in 1989 in the Circuit Court of Kanawha County of first degree sexual abuse involving a minor. Layne also faces a $250,000 fine when he is sentenced on May 2, 2013 by United States District Judge John T. Copenhaver, Jr.
The U.S. Marshals Service, the West Virginia State Police, the West Virginia State Police Internet Crimes Against Children Task Force, the Kanawha County Sheriff’s Department, and the Federal Bureau of Investigation West Virginia Cyber Crimes Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
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 http://www.justice.gov/usao/wvs/PSCpage.html. For more information about internet safety education, please visit www.usdoj.gov/psc and follow the link named “Resources.”
Charles Spotted Elk-Booth Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 29, 2013, before Chief U.S. District Judge Richard F. Cebull, CHARLES SPOTTED-ELK BOOTH, JR., a 26-year-old resident of Lame Deer, was sentenced to a term of:
Prison: 100 months
Special Assessment: $100
Supervised Release: 3 years
BOOTH was sentenced in connection with his guilty plea to aiding and abetting assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori H. Suek, the government stated it would have proved at trial the following:
On the evening of November 17, 2007, BOOTH, two adult males, and a juvenile male were driving around Lame Deer on the Northern Cheyenne Indian Reservation in southeastern Montana drinking. The group saw the victim walking down the street and decided to pick her up. She was staggering as she walked, because she was drunk. She got into the car with the men and sat in the back between BOOTH and one of the adult males. The group then bought more alcohol - vodka - and continued to drive around Lame Deer until they parked in a remote area in the hills near Lame Deer.
During the time that the group was parked in the remote area, the victim was repeatedly raped and beaten by various members of the group. At some point, she was naked and placed in the trunk of the car. The group then drove around with her in the trunk for several hours until she was rescued from the trunk by police.
When the victim was found in the trunk, she had extensive bruising on her legs, thighs, buttocks, arms and checks, and lacerations and abrasions all over her body. The victim was taken to the hospital for treatment. Photographs of the victim's body were taken at the hospital and several days later. The injuries shown in the photographs, as well as testimony of the victim and medical personnel, would establish that the victim suffered extreme physical pain from the injuries, and suffered a substantial risk of death from having been locked in the trunk for an extended period of time.
All of the participants in the crime, including BOOTH, were interviewed multiple times during the investigation. Through the testimony of co-defendants and the admissions of the defendant, the United States would prove that BOOTH aided and abetted in the assault of the victim and contributed to the injuries suffered by the victim. Additionally, BOOTH previously pleaded guilty to assaulting the victim in tribal court. Although the United States could not use the admissions made during that plea during its case in chief at a trial, the United States would have been able to use those admissions to impeach any contrary testimony BOOTH would give at trial, if he chose to testify on his own behalf.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BOOTH will likely serve all of the time imposed by the court. In the federal system, BOOTH does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Carrollton Man Sentenced for Counterfeit Cell Phone AccessoriesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, TX – A 54-year-old Carrollton, Texas, man has been sentenced to federal prison for a counterfeiting conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shiraz Sherali Odhwani pleaded guilty on Sep. 9, 2011, to conspiracy to traffic in counterfeit goods and was sentenced to 36 months in federal prison by United States District Judge Michael H. Schneider. Odhwani was also ordered to pay restitution in the amount of $950,000.
According to information presented in court, Odhwani owns and operates a company known as Turtle Wireless, a wholesale outlet and retail point of sale for cellular telephones and wireless device accessories located in Dallas, Texas. In or about 2008, Turtle Wireless began selling counterfeit cellular telephone accessories purchased from suppliers in China. Through Turtle Wireless, Odhwani then sold the counterfeit products to retailers within the Eastern District of Texas and elsewhere. In connection with this case, law enforcement officials seized more than 130,000 counterfeit items from Odhwani’sstore and leased storage space. The infringement amount of that counterfeit merchandise was estimated at between $2.5 million and $7 million. Odhwani and three others were indicted by a federal grand jury in May 2011.
This case is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.The case was investigated by the Federal Bureau of Investigation, the Dallas County Sheriff’s Department, the Longview Police Department, the Baytown Police Department, and the Austin Police Department. The matter was prosecuted by Assistant U.S. Attorney Frank Coan.
####Columbus Man Sentenced to Prison for Selling Crack Cocaine in McDowell County, W.va.Read the Press Release
BLUEFIELD, W.Va. – U.S. Attorney Booth Goodwin announced that a Columbus man was sentenced on Jan. 29 to one year in federal prison for distributing a quantity of crack cocaine. Thomas Jennings, 53, admitted that on June 28, 2012, he sold a quantity of crack cocaine to a person cooperating with law enforcement authorities. The illegal transaction took place at a residence in Maybeury, McDowell County, W.Va. Jennings also admitted that on June 27, 2012, he sold a quantity of crack cocaine and two morphine pills. The defendant further admitted to selling a quantity of crack cocaine on July 2, 2012.
The West Virginia State Police Bureau of Criminal Investigation and the Southern Regional Drug and Violent Crime Task Force handled the investigation. Assistant United States Attorney John File handled the prosecution. The sentence was imposed by United States District Senior Judge David A. Faber.
The case was brought as part of the Bluefield Pill Initiative. The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming Counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments.
Business Owner Sentenced in Federal Crop Insurance Fraud SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday STEVEN M. HARDWICK, 53, of Nichols, South Carolina, was sentenced by Chief United States District Judge James C. Dever III, to 12 months and one day imprisonment, restitution of $171,513, and 5 years of supervised release. HARDWICK previously pled guilty to conspiring to make false statements, to make material false statements, and to commit mail fraud and wire fraud, all in violation of Title 18, United States Code, Section 371 and aiding and abetting these crimes in connection with the Federal Crop Insurance Program, in violation of Title 18, United States Code, Section 1014.
Mr. Walker stated, “As a farmer, Hardwick understood the importance of the federal crop insurance program as a safety net to the community in times of disaster and yet, he helped another steal from that same program. The sentence imposed today reflects the seriousness of his offense and should serve as a deterrent for others.”
According to the investigation, which stems from an ongoing crop insurance investigation, HARDWICK allowed his name to be used in connection with federal crop insurance and tobacco contracts to facilitate the sale of tobacco not reported to the federal government. The Criminal Information, filed on September 16, 2011, alleges that HARDWICK, maintaining dual residences in Clarendon, North Carolina, and Nichols, South Carolina, owned and operated a sole proprietorship which engaged in the business of tree spraying and planting.
The Information goes on to allege, an unnamed farmer devised the scheme to defraud the government and recruited HARDWICK and others to act as nominee farmers, obtaining federal crop insurance policies in their own names for certain crops, even though they did not engage in any farming. From September, 2006, to June, 2010, HARDWICK and others executed applications for crop insurance for tobacco, soybeans, and peanuts, falsely declaring the crop to be their own. HARDWICK and others secured identifying information for various persons in the community, executing contracts with tobacco companies using the stolen names and identifying information. HARDWICK and other co-conspirators secured flue-cured tobacco marketing agreements in their own names even though they were not the bona fide producer of the crop. The unnamed farmer sold his tobacco and other crops on contracts written in the names of other co-conspirators or unknowing victims, profiting under the scheme by being paid twice for each pound of tobacco. HARDWICK and other co-conspirators profited under the scheme because they were paid for the use of their names on the contracts.
As discussed in open court yesterday, HARDWICK also sold tobacco not reported to the federal government for other farmers separate and apart from the conspiracy described above. HARDWICK also lied to the USDA - Farm Service Agency County Committee on two occasions in an effort to conceal the fraud.
IRS-Criminal Investigation Special Agent in Charge Jeannine A. Hammett stated, “Mr. Hardwick manipulated governmental programs to line his own pockets. The object of this fraudulent scheme was to swindle the government and the taxpaying public.” “Once again, IRS criminal investigators along with the United States Attorney’s Office have vindicated the interests of the people of the United States.”
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation; the United States Department of Agriculture - Office of Inspector General, Investigations; and the United States Department of Agriculture - Risk Management Agency, Special Investigations Branch. Assistant United States Attorney Banumathi Rangarajan is serving as prosecutor for the government.
Bookkeeper Sentenced to Prison for Stealing over $150,000 from Employer and Evading TaxesRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Diane Michelle Pimble, age 41, of Washington, D.C., today to 14 months in prison, followed by three years of supervised release, for interstate transportation of stolen money and tax evasion. Judge Messitte also ordered Pimble to pay restitution of $152,918.03 to her employer and $26,697 to the IRS.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; Chief Cathy L. Lanier of the Metropolitan Police Department; and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“IRS Criminal Investigation views embezzlement schemes as a form of organized tax evasion,” said Shelia Olander, Acting Special Agent in Charge, IRS Criminal investigation, Washington DC Field Office. “Tax evasion undermines the integrity of our system of taxation. Today’s sentence ensures the public that offenders of these types of schemes are being caught and punished.”
According to her plea agreement, from early 2008 through late 2011 Pimble worked as a bookkeeper for an individual residing in Maryland. Pimble managed her employer’s accounts, paid bills, organized financial information using an accounting software program called QuickBooks, and prepared reconciliation reports of her employer’s bank accounts. In order to help fulfill these duties, at Pimble’s request, her employer gave her a stamp bearing her employer’s signature that Pimble would use to sign her employer’s checks.
Pimble, however, wrote over 100 unauthorized checks to herself, including grossly inflated salary checks for herself, that drew off her employer’s bank accounts. She stamped these unauthorized checks with her employer’s signature, and transported them from Maryland to the District of Columbia, cashing them at her local bank. Pimble concealed her fraud either by falsifying entries in her employer’s QuickBooks accounting program to show that the unauthorized checks had been made to other individuals or entities, or by failing to enter them at all. Pimble also created falsified balance reports so that her employer, when reviewing the documents, would believe that the accounts were balanced. Pimble transported across state lines a minimum of $152,918.03 of her employer’s money that was taken by fraud.
Finally, for the tax years 2008, 2009 and 2010, Pimble filed false federal individual income tax returns with the IRS by not reporting the income she received through her embezzlement, resulting in additional tax owed totaling $26,697.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service, Metropolitan Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Bergen County, N.J., Man Pleads Guilty to Conspiring with Brother to Violate the Federal Election Campaign ActRead the Press Release
NEWARK, N.J. – A Bergen County man admitted today to conspiring with his brother to violate federal election law in connection with contributions to a federal campaign committee, U.S. Attorney Paul J. Fishman announced.
Benedetto Bigica, 45, of Elmwood Park, N.J., pleaded guilty to an Information charging him with one count of conspiring to violate the Federal Election Campaign Act (FECA). Bigica entered his guilty plea before U.S. District Judge Faith S. Hochberg in Newark federal court.According to documents filed in this case and statements made in court:
From April 2005 to April 2008, Benedetto Bigica conspired with his brother, Joseph Bigica, and others to make $21,400 in illegal contributions to the campaign committee of a federal candidate. Benedetto Bigica agreed to serve as a straw contributor along with two other family members for Joseph Bigica, who then reimbursed them for their contributions to the campaign.
Joseph Bigica previously pleaded guilty to an Information charging him with one count of corruptly interfering with the due administration of the internal revenue laws and one count of conspiring to violate the FECA. On Dec. 11, 2012, Judge Hochberg sentenced Joseph Bigica to 36 months on the tax count and 60 months on the FECA conspiracy, to be served concurrently, and ordered $2,141,836 in restitution. No one associated with the campaign has been accused of any wrongdoing.
The conspiracy charge to which Benedetto Bigica pleaded is punishable by a maximum potential penalty of five years in prison and up to a $250,000 fine. Sentencing is currently scheduled for May 7, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, and criminal investigators from the U.S. Attorney’s Office in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Zahid N. Quraishi and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
13-043Defense counsel: Michael Baldassare Esq., Newark
Bigica, Benedetto Information
Bedford County Man Sentenced to 3 Years in Prison for Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Osterburg, Pa., has been sentenced in federal court to 36 months imprisonment, 10 years supervised release, and required to register as a sex offender on his conviction of possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Joseph Yingling, 40.
According to information presented to the court, on Aug. 4, 2009, Yingling knowingly possessed pictures and videos in individual computer graphic files which were produced using minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Homeland Security Investigations for the investigation leading to the successful prosecution of Yingling.
This case was brought as part of Project Safe Childhood. Launched in Feb. 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
BP Exploration and Production Inc. Pleads Guilty, Is Sentencedto Pay Record $4 Billion for Crimes SurroundingDeepwater Horizon IncidentRead the Press Release
BP Exploration and Production Inc. pleaded guilty today to 14 criminal counts for its illegal conduct leading to and after the 2010 Deepwater Horizon disaster, and was sentenced to pay $4 billion in criminal fines and penalties, the largest criminal resolution in U.S. history, Attorney General Holder announced today.
“Today’s guilty plea and sentencing represent a significant step forward in the Justice Department’s ongoing efforts to seek justice on behalf of those affected by one of the worst environmental disasters in American history,” said Attorney General Holder. “I’m pleased to note that more than half of this landmark resolution – which totals $4 billion in penalties and fines, and represents the single largest criminal resolution ever – will help to provide direct support to Gulf Coast residents as communities throughout the region continue to recover and rebuild.”
“The Deepwater Horizon explosion was a national tragedy that resulted in the senseless deaths of 11 people and immense environmental damage,” said Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. “Through the tenacious work of the Task Force, BP has received just punishment for its crimes leading up to and following the explosion. The Justice Department will keep a watchful eye on BP’s compliance with the plea agreement’s terms, including the requirements of full cooperation with the department’s ongoing criminal investigation, implementation of enhanced safety protocols and adherence to the recommendations of two newly installed monitors. Should BP fail to comply, we will act swiftly and firmly.”
BP’s guilty plea was accepted, and the sentence was imposed, by U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana. During the guilty plea and sentencing proceeding, Judge Vance found, among other things, that the consequential fines imposed under the plea agreement far exceed any imposed in U.S. history, and are structured so that BP will feel the full brunt of the penalties. She also noted that the agreement provides just punishment and significant deterrence, requiring detailed drilling safeguards, monitors and other stringent, special conditions of probation so that BP’s future conduct will be closely watched.
BP pleaded guilty to each count charged in an information filed in U.S. District Court in the Eastern District of Louisiana, including 11 counts of felony manslaughter, one count of felony obstruction of Congress and violations of the Clean Water and Migratory Bird Treaty Acts. In its guilty plea today, BP admitted that, on April 20, 2010, the two highest-ranking BP supervisors onboard the Deepwater Horizon, known as BP’s “Well Site Leaders” or “company men,” negligently caused the deaths of 11 men and the resulting oil spill. The company also admitted that on that evening, the two well site leaders observed clear indications that the Macondo well was not secure and that oil and gas were flowing into the well, but chose not to take obvious and appropriate steps to prevent the blowout. Additionally, BP admitted that as a result of the Well Site Leaders’ conduct, control of the Macondo well was lost, resulting in catastrophe.
BP also admitted during its guilty plea that the company, through a senior executive, obstructed an inquiry by the U.S. Congress into the amount of oil being discharged into the Gulf while the spill was ongoing. BP also admitted that the senior executive withheld documents, provided false and misleading information in response to the U.S. House of Representatives’ request for flow-rate information, manipulated internal estimates to understate the amount of oil flowing from the well and withheld data that contradicted BP’s public estimate of 5,000 barrels of oil per day. At the same time that the senior executive was preparing his manipulated estimates, BP admitted, the company’s internal engineering response teams were using sophisticated methods that generated significantly higher estimates. The Flow Rate Technical Group, consisting of government and independent scientists, later concluded that more than 60,000 barrels per day were leaking into the Gulf during the relevant time, contrary to BP’s representations to Congress.
According to the sentence imposed by Judge Vance pursuant to the plea agreement, more than $2 billion dollars will directly benefit the Gulf region. By order of the court, approximately $2.4 billion of the $4.0 billion criminal recovery is dedicated to acquiring, restoring, preserving and conserving – in consultation with appropriate state and other resource managers – the marine and coastal environments, ecosystems and bird and wildlife habitat in the Gulf of Mexico and bordering states harmed by the Deepwater Horizon oil spill. This portion of the criminal recovery is also to be directed to significant barrier island restoration and/or river diversion off the coast of Louisiana to further benefit and improve coastal wetlands affected by the oil spill. An additional $350 million will be used to fund improved oil spill prevention and response efforts in the Gulf through research, development, education and training.
BP was also sentenced to five years of probation – the maximum term of probation permitted under law. The company is also required, according to the order entered by the court pursuant to the plea agreement, to retain a process safety and risk management monitor and an independent auditor, who will oversee BP’s process safety, risk management and drilling equipment maintenance with respect to deepwater drilling in the Gulf of Mexico. BP is also required to retain an ethics monitor to improve its code of conduct to ensure BP’s future candor with the U.S. government.
The charges and allegations pending against individuals in related cases are merely accusations, and those individuals are considered innocent unless and until proven guilty.
The guilty plea and sentence announced today are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Assistant Attorney General Breuer and led by Deputy Assistant Attorney General John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana, as well as other U.S. Attorneys’ Offices; and investigating agents from: the FBI; Environmental Protection Agency, Criminal Investigative Division; Environmental Protection Agency, Office of Inspector General; Department of Interior, Office of Inspector General; National Oceanic and Atmospheric Administration Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Department of Environmental Quality.
This case was prosecuted by Deepwater Horizon Task Force Director John D. Buretta, Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black, and Rohan Virginkar.
Attempted Illegal AK-47 Purchaser Sentenced to 5 YearsRead the Press Release
Jacksonville, FL- U.S. District Judge Marcia Morales Howard yesterday sentenced Antwan Cameron (29, Jacksonville) to 5 years in federal prison for making a false statement to a federally licensed firearms dealer. A federal jury found Cameron guilty on October 17, 2012.
According to testimony presented at trial, Cameron attempted to purchase a Century Arms 7.62 x 39mm rifle from Shooters Firearms and Accessories of Jacksonville. Cameron lied on the required ATF paperwork and claimed that he had never been convicted of a domestic violence offense. A background check by the Florida Department of Law Enforcement (FDLE) confirmed that Cameron was a prohibited person and employees at Shooters stopped the sale. Cameron received a higher sentence after Judge Howard found that he obstructed justice by attempting to contact one of the trial jurors through Facebook.
This case was investigated by the Jacksonville Sheriff's Office Gun Crime Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Andrews Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
United States Attorney Robert Pitman announced that 27-year-old Francisco Jose Cantu, of Andrews, TX, faces five to twenty years in federal prison after pleading guilty to receipt of materials relating to the sexual exploitation of children.
Appearing before United States Magistrate Judge David Counts yesterday, Cantu admitted that in October 2012, he received images of child pornography via the Internet. According to the factual basis filed in this case, Cantu also admitted to distributing images of child pornography via the Internet. On November 29, 2012, Homeland Security Investigations (HSI) agents executed a search warrant at Cantu’s residence and seized several computer devices. A forensics examination of the seized items revealed the presence of more than 600 images of minors engaged in sexually explicit conduct.
Sentencing before United States District Judge Robert A. Junell in Midland has not yet been scheduled.
This case was investigated by Homeland Security Investigations agents. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
Albuquerque Man to Serve Forty-Six Months in Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Christopher Daves, 26, of Albuquerque, N.M., was sentenced to 46 months in prison followed by five years of supervised release for his possession of child pornography conviction. Daves also will be required to register as a sex offender after he completes his prison sentence. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Acting Special Agent in Charge Dennis A. Ulrich, II, with El Paso Homeland Security Investigations (HSI).
Daves was arrested on July 11, 2012, as the result of an undercover operation initiated by the New Mexico State Police. Based on that investigation, HSI executed a search warrant at Daves’ residence on May 2, 2012, and seized his laptop computer. While the warrant was being executed, Daves voluntarily agreed to be interviewed, and admitted that he used his laptop to download child pornography on multiple occasions. A forensic examination of Daves’ laptop computer uncovered hundreds of images of child pornography.
The case was investigated by HSI and the New Mexico State Police, and was prosecuted by Assistant U.S. Attorney Charlyn E. Rees.
The 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children Task Force whose mission it is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alamance County Residents Plead to Health Care FraudRead the Press Release
Conducted Fraudulent Medicaid Billing SchemeGREENSBORO, N.C. – United States Attorney for the Middle District of North Carolina Ripley Rand announced today that EVELYN FULLER and MICHAEL MCLEAN pleaded guilty in federal court in Greensboro before United States District Judge Catherine C. Eagles to felony charges of conspiracy to commit health care fraud and health care fraud.
Fuller, age 61, is a resident of Mebane, North Carolina. McLean, age 56, is a resident of McLeansville, North Carolina. Fuller operated a mental health business in Mebane, North Carolina, called Harvest House Community Development Corporation, Inc., which allegedly provided community support services to Medicaid clients. McLean worked as a manager for Harvest House.
Fuller and McLean pleaded guilty to charges that they submitted or aided and abetted the submission of claims to the North Carolina Medicaid program for mental health services which were never provided. Between June 2007 and November 2008, Fuller and McLean submitted approximately $400,000 in claims to the Medicaid program for services that were not provided and paid cash to some Medicaid recipients in order to obtain access to the recipient’s Medicaid numbers. The numbers are required for billing Medicaid and were used in the fraudulent billing scheme.
Each of the defendants faces a maximum penalty of ten years confinement. The plea agreements also require the defendants to make restitution to the Medicaid program. Sentencing will occur in Greensboro on June 13, 2013.
The case was investigated by the Health and Human Services Office of Inspector General and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney Robert Hamilton and Special Assistant United States Attorney/Assistant Attorney General Jacqueline Perez.
###Alabama Woman Indicted for Stolen Identity Refund FraudRead the Press Release
A federal grand jury in Montgomery, Ala., returned an indictment charging LaQuanta Clayton with aggravated identity theft and theft of government money, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to the indictment, Clayton used stolen identity information to facilitate the theft of federal tax refunds. As alleged, Clayton used the stolen identity information to open bank accounts at the bank where she was working and then stole federal tax refunds that were deposited into the bank accounts.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Clayton faces a maximum potential sentence of 10 years in prison for each of the 15 theft of government money counts and a mandatory two-year sentence for the aggravated identity theft counts. She is also subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
Alabama Woman Indicted for Her Role in a Million Dollar Identity Theft SchemeRead the Press Release
A federal grand jury in Montgomery, Ala., returned an indictment charging Scottie Alice Johnson with a conspiracy to commit theft of public funds and to defraud the Internal Revenue Service (IRS) and with theft of public funds, the Justice Department and the IRS announced today.
According to the indictment, between 2006 and 2012, Johnson conspired with others to defraud the IRS and commit theft of public funds. Co-conspirators filed false federal income tax returns with stolen identities and had refunds directly deposited into several bank accounts, including bank accounts in the name of Scottie Alice Johnson and another individual. The bank accounts associated with the conspiracy received at least $1.3 million in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Johnson faces five years in prison for the conspiracy count and 10 years in prison for each theft of public funds count. Johnson is also subject to fines, mandatory restitution and forfeiture.
The case was investigated by Special Agents of the 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 .
Alabama State Employee Indicted for Identity TheftRead the Press Release
Chequ li a Motley, a resident of Montgomery, Ala., was indicted by a federal grand jury for her involvement in a conspiracy to use stolen identities to file fraudulent tax returns, the Justice Department and the Internal Revenue Service (IRS) announced today. Motley was indicted on various charges, including conspiracy, five counts of wire fraud and five counts of aggravated identity theft.
According to the indictment, Motley worked for an Alabama state government agency and had access to individuals’ personal identifying information as part of her job. She stole identities and sold them to several co-conspirators, the indictment alleges. Those co-conspirators used the stolen identities to file false tax returns that fraudulently requested tax refunds from the IRS.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Motley faces a maximum potential sentence of 10 years in prison for the conspiracy charge, up to 20 years in prison for each wire fraud charge and a mandatory two-year sentence for the aggravated identity theft counts. She will also be subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS – Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division are prosecuting the case, with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
Alabama Employee Indicted for Providing Names to a Million Dollar Identity Theft SchemeRead the Press Release
A federal grand jury in Montgomery, Ala., returned an indictment charging Lea’Tice Phillips for conspiring to file false tax returns using stolen identities, the Justice Department and the Internal Revenue Service (IRS) announced today. The 37 count indictment charges Phillips with conspiracy to file false claims, wire fraud, computer fraud and aggravated identity theft.
According to the court documents, Phillips worked for an Alabama state agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification. Phillips used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns. Djonret and her co-conspirators filed most of the tax returns from her residence in Montgomery. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. They recruited individuals to purchase prepaid debit cards and to provide the cards to Djonret and her co-conspirators. The fraudulent tax refunds were directed to the prepaid debit cards. Djonret and her co-conspirators would then use the prepaid debit cards to obtain the proceeds. Some of the prepaid debit cards were in the name of Lea’Tice Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.
On Aug. 9, 2012, a federal grand jury in Montgomery returned a superseding indictment charging Antoinette Djonret, Angelique Djonret, Tabitha Stinson, Melba Wilson, Chantresa Hayes and Corey Means for their roles in the same conspiracy.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the Phillips faces 10 years imprisonment for the conspiracy to file false claims, 20 years for each wire fraud count, 10 years imprisonment for each computer fraud count and a mandatory two-year sentence for the aggravated identity theft counts. She is also subject to fines, mandatory restitution and forfeiture.
The case was investigated by Special Agents of the 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.
12 Georgia Residents Indicted on Tax Fraud and Identity Theft ChargesRead the Press Release
AUGUSTA, GA - An indictment, today unsealed in federal court, has charged 12 Georgia residents for their role in a fraudulent income tax refund ring. The indictment follows a 14-month joint investigation by the IRS Criminal Investigation, the FBI and the Richmond County Sheriff’s Office.
According to the indictment, from 2009 to 20011, the defendants conspired to file at least 90 phony income tax returns on behalf of individuals whose identities had been stolen. The income tax returns fraudulently sought refunds from the IRS totaling more than $500,000.
United States Attorney Edward Tarver said, “These defendants are alleged to have systematically stolen the identities of others, all in an effort to steal from the United States taxpayers. The United States Attorney’s Office will hold identity thieves and fraudsters accountable, and will make sure that the only identity they’ll be able to use will be the one stitched on their prison jumpsuit.”
“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” said Veronica Hyman-Pillot, IRS Criminal Investigation Special Agent in Charge. “Identifying, investigating and vigorously prosecuting those individuals involved in tax related identity theft schemes remains a top priority for IRS Criminal Investigation. The recent indictments and arrests are just a sample of what is to come as we join forces with our law enforcement partners and the United States Attorney’s office to put an end to identity theft.”
The 12 defendants indicted include: ANGELA WILLINGHAM, 40, Hephzibah, Georgia
SANTANA WILLINGHAM, 23, Hephzibah, Georgia
JAMES BUTLER, 21, Hephzibah, Georgia
DENTAVIA MCNAIR, 23, Augusta, Georgia
BRITTNEY WRIGHT, 25, Evans, Georgia
JANICE SMALLEY, 47, Augusta, Georgia
PATRICE ROBERSON, 36, Waynesboro, Georgia
CHERYL WILLINGHAM, 37, Augusta, Georgia
MATTHEW HARRINGTON, 45, Savannah, Georgia
SANTRECE WILLINGHAM, 22, Hephzibah, Georgia
LASANDRA WHITFIELD, 42, Waynesboro, Georgia
KELLY BARTON, 35, Augusta, Georgia.An indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove the Defendants’ guilt beyond a reasonable doubt.
Assistant United States Attorneys Patricia Green Rhodes is prosecuting the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
28 January 2013
Winchester Woman Accused of Making False Statements While Purchasing FirearmRead the Press Release
ALEXANDRIA, Va. – Brita Lanette Jackson, 51, of Winchester, Va., was arrested today accused of making a false statement in connection with the purchase of a firearm.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Jackson’sinitial appearance before United States Magistrate Judge Ivan D. Davis.
Jackson was arrested based on a criminal complaint and faces a maximum penalty of 10 years in prison, if convicted.
According to court documents and court proceedings today, Jackson is alleged to have attempted to purchase a 7.62 x 39mm firearm from a licensed dealer in Manassas, Va., on May 24, 2012. To purchase the firearm, Jackson indicated on official paperwork that she was the actual buyer of the firearm; however, Jackson allegedly intended to transfer the firearm to a male with multiple felony convictions. Court records allege that Jackson previously purchased between 15 and 20 firearms since January 2012 on behalf of the convicted felon.
The investigation was conducted by ATF’s Washington Field Division. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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.Watertown Man Sentenced for Stealing from Iron MountainRead the Press Release
BOSTON - A Watertown man was sentenced today for stealing over $1 million from his former employer.
John J. Palandjian, 35, was sentenced by U.S. District Judge Mark L. Wolf to 41 months in prison, to be followed by three years of supervised release and a $7,500 fine and ordered to pay $1,148,063 in restitution. In October 2012, Palandjian pleaded guilty to 10 counts of wire fraud.Palandjian, a sourcing manager for Iron Mountain, a public company headquartered in Massachusetts, was responsible for purchasing supplies, reviewing credit card statements and requesting wire transfers for payment of credit card bills. From August 2010 to June 2011, Palandjian used Iron Mountain’s credit card to make unauthorized purchases and cash advances in excess of $1,148,000. Palandjian then altered the monthly credit card statements to hide his unauthorized charges and ensured that the bills were paid.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner Edward Davis, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.
Virginia Man Sentenced to Serve 168 Months in Prison on Child Pornography ChargesRead the Press Release
An Orange County, Va., man was sentenced today to serve 168 months in prison following his March 2011 guilty plea to child pornography charges that originated in three different federal districts.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Heaphy of the Western District of Virginia, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Anthony C. Jeffries was sentenced by Senior U.S. District Judge Norman K. Moon in the Western District of Virginia. On March 28, 2011, Jeffries pleaded guilty to one count of distributing child pornography and one count of possessing child pornography on charges contained in an indictment filed in the Western District of Virginia and two separate one-count criminal informations originally filed in the Eastern District of Virginia and the Southern District of Florida, each charging him with distributing child pornography. Jeffries was sentenced to 168 months in prison for each count of distributing child pornography and 120 months in prison for possessing child pornography. The prison sentences for each count will be served concurrently. In addition to his prison term, Jeffries was sentenced to serve lifetime supervised release.
According to information presented in court, Jeffries assisted in running an online forum from his Orange County home that was dedicated to posting pictures and chatting about young girls. The defendant was responsible for one-fourth of the images available on the forum.
In February 2010, undercover FBI agents working in Richmond, Va., and Miami logged onto a peer-to-peer file sharing network and downloaded numerous images of child pornography from Jeffries. In June 2010, a search warrant was obtained and computer equipment was seized from the defendant’s Virginia home. A forensic examination of that equipment revealed thousands of image files, including images of young children engaged in sexual acts with adults.
The investigation of the case was conducted by the Orange County Sheriff’s Office, the FBI, the Charlottesville, Va., Police Department, the University of Virginia Police Department and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Assistant U.S. Attorney Nancy Healey and Trial Attorney Darcy Katzin with the Criminal Division’s CEOS are prosecuting the case for the Western District of Virginia. Elizabeth Wu is prosecuting the case for the Eastern District of Virginia.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney's Office Taking Proactive Measures to Address Active Shooter IncidentsRead the Press Release
BUFFALO. N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that the Western District of New York, which covers 17 upstate counties, is sponsoring three upcoming training sessions that will address violent crime, in particular shootings, and how it impacts law enforcement, schools and businesses.
"In light of the recent shootings at Sandy Hook Elementary School in Newtown, Connecticut and Webster, N.Y., the timing of these trainings couldn’t be better," said U.S. Attorney Hochul. "As someone who has worked directly with our local police and federal agencies for the past three decades, the public needs to know that our law enforcement officers are well trained and dedicated when it comes to handling these highly volatile situations. Nevertheless, we must continue to be proactive and do all we can do to educate and prepare not only members of law enforcement, but also the public."
The first training, "Street Survival and Officer Safety," is scheduled for February 8, 2013. Organized specifically for members of law enforcement, this training will focus on three case studies which involved the death or serious injuries of police officers and the safety training that followed these incidents. This training is co-sponsored by the U.S. Attorney's Office, Middle Atlantic-Great Lakes organized Crime Law Enforcement Network (MAGLOCLEN), the Federal Bureau of Investigation, and Hilbert College.
On March 15, 2013, the U.S. Attorney’s Office, together with the United States Secret Service, The University at Buffalo, and the National Center for Missing and Exploited Children, will co-sponsor the 10th Annual Safe Schools Initiative Seminar. This all day program, entitled "Understanding Human Aggression and Violence, and Making Our Schools Safe," is designed for school officials and officers, and will feature Lt. Col. Dave Grossman, one of the world's foremost experts in the field of human aggression and the roots of violence and violent crime.
Finally, the U.S. Attorney's Office, along with other local police agencies, are in the planning stages of a training to be held in April that will focus on active shooters in a business environment. The goal of the training is to educate employees and owners of local businesses and equip them with the tools needed to be protect their staff and operations from a violent crime incident.
"By partnering with law enforcement, the education and business communities on a topic as important as active shooter, I believe we can better protect the public and each other from the many challenges such a scenario presents,” said U.S. Attorney Hochul.
“While no one solution exists which will eliminate all violent crime, by collectively discussing and implementing best practices, we will all be in a better position to ensure that the proper steps are taken to both prevent, and address, such dangerous situations if they ever present themselves again."
For more information about these trainings, please contact Public Affairs Officer Barbara Burns at 716-842-5817.
Two Charged in Bribery Scheme Involving Orange County Company That Sold Components to Panasonic for Use in Personal ComputersRead the Press Release
SANTA ANA, California – Federal prosecutors today filed criminal charges against the chief executive of an Irvine company who for years paid kickbacks to ensure contracts for his firm, as well as an official with Panasonic’s American subsidiary who accepted the bribes from the Californian supplier of electronic components.
The two men who were charged today with “honest services” wire fraud are: William McMahon, 47, of Norco, California, the CEO and co-owner of Trustin Technology, and
Sean Volin, 38, of Oakland, New Jersey, a manager with the Panasonic Corporation of North America in Secaucus, New Jersey.
In addition to criminal informations filed in United States District Court, prosecutors filed plea agreements in which both men admit their criminal conduct and agree to cooperated with investigators in their ongoing probe.
According to the court documents, for the past decade Trustin sold random access memory modules and then hard drives to Panasonic for use in at least one line of laptop computers. Panasonic was Trustin’s largest and most important customer.
Approximately 10 years ago, Volin approached the then-CEO of Trustin to discuss a price reduction for hard drives Trustin was supplying to Panasonic. In response, the then-CEO proposed a kickback scheme in which Panasonic would continue to pay the same price for hard drives, but Trustin would give Volin half of the proposed price reduction for each unit sold. Volin “agreed with [the CEO’s] proposal, did not obtain a price reduction for Panasonic, and a stream of illicit payments between Trustin and [Volin] began,” according to Volin’s plea agreement.
McMahon became CEO of Trustin in 2005, and he learned of the kickback arrangement that had already brought more than $100,000 to Volin. The payments stopped under McMahon’s watch for a period of time, but the payments resumed as McMahon developed a relationship with Volin. Instead of paying a kickback for each hard drive sold to Panasonic, McMahon made regular payments in exchange for Volin “looking out for Trustin’s interests and [as] a reward for defendant’s prior assistance to Trustin,” according to Volin’s plea agreement.
From November 2005 through the end of 2011, McMahon oversaw payments of more than $555,000 that went to a company Volin had established to accept the illicit payments from Trustin. In total, Volin was paid more than $664,900 by Trustin. Volin and McMahon also admit in the court documents that the Panasonic employee received other benefits, including trips to the Kentucky Derby and Napa Valley.
“In exchange for this stream payments, and acting with the intent to defraud Panasonic of [Volin’s] duty of honest services, [Volin] continued to assist Trustin in obtaining additional business from Panasonic, including Panasonic’s designating Trustin a ‘Master Vendor,’” according to court documents, which say that as a result of the scheme “Trustin was able to obtain tens of millions of dollars of business from Panasonic.”
The wire fraud charge alleged in the two cases filed today carries a statutory maximum penalty of 20 years in federal prison.
McMahon and Volin will be summoned to appear in federal court in Orange County in February.
The cases are the result of an ongoing investigation being conducted by U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation.
Panasonic Corporation of North America fully cooperated with the government’s investigation.
Release No. 13-014
Two Brothers Indicted for Tax Fraud and Identity TheftRead the Press Release
Allegedly Used Personal Information Stolen from Puerto Rican Residents To File False Tax Returns from Maryland Seeking RefundsGreenbelt, Maryland - A federal grand jury indicted Ewdy Jose Olivo, age 28, of Rockville, Maryland and his brother Juan Manuel Olivo, age 30, of Hyattsville, Maryland today for obtaining false tax refunds by stealing the identities of others to prepare and file false income tax returns.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “We are aggressively pursuing identify thieves and working with the U.S. Attorney’s Office in bringing to justice those who harm and steal from the American taxpayer.” The Olivo brothers owned and operated Oligil Tax Services located at 8549 Piney Branch Road in Silver Spring, Maryland.
The 18 count indictment alleges that from April 2007 to January 2010, the brothers stole personal identifying information such as social security numbers and birth dates of others, many of whom were residents of Puerto Rico and were not required to file federal income tax returns so long as all of their income was derived from Puerto Rican sources. The brothers allegedly prepared false income tax returns in the victims’ names and filed them electronically with the IRS from Maryland. They requested that the IRS mail tax refund checks to addresses controlled by them and deposited the checks into their bank accounts. The amount of individual refunds claimed ranged from $1,562 to $4,950.
The indictment seeks the forfeiture of $88,960 seized on April 10, 2012 from the defendants’ tax office and the home of Juan Olivo.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit wire fraud and for each of 11 counts for wire fraud; and a mandatory minimum of two years in prison consecutive to any other sentence imposed on each of six counts of aggravated identity theft. Their initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Robert K. Hur, who is prosecuting the case.
Twin Falls Man Sentenced to Six Years for Trafficking MethRead the Press Release
BOISE – Ramon G. Zamarripa, 54, of Twin Falls, Idaho, was sentenced today in United States District Court to 72 months in prison for possession of a controlled substance with intent to distribute and possession of a firearm in furtherance of drug trafficking, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Zamarripa to serve five years of supervised release and forfeit the firearm found in his possession.
Zamarripa was charged in a superseding information with possession with intent to distribute 48.12 grams of methamphetamine and possession of a .25 caliber handgun on March 12, 2012, in furtherance of drug trafficking. At his plea hearing on November 13, 2012, Zamarripa admitted that he possessed the methamphetamine with the intent to distribute it and possessed the firearm to facilitate a drug trafficking crime.
The case was investigated by the Twin Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Three Tax Preparers Indicted for Preparing False Tax ReturnsRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges three Minnesota tax preparers with filing false tax returns on behalf of their customers. Solomon Frank-Sawari, Chasma Dixon, and Tameca Stokes were each indicted on one count of conspiracy to defraud the United States and one count of aggravated identity theft. In addition, Frank-Sawari was charged with nine counts of preparing false income tax returns, and both Dixon and Stokes were charged with five counts of preparing false income tax returns. The indictment, which was filed on January 15, 2013, was unsealed following the defendants’ initial appearance in federal court.
The indictment alleges that from 2007 through February of 2010, the defendants conspired with each other to obstruct the Internal Revenue Service (“IRS”) in its collection of income taxes. At the time, Frank-Sawari owned and operated two tax-return preparation businesses: Merit Tax Service in Robbinsdale and Capitol Income Tax in Minneapolis. Dixon worked at Merit in 2007 and at Capitol in 2008 and 2009. Stokes worked at Capitol. All three prepared and filed federal and state income tax returns on behalf of customers.
Allegedly, the defendants prepared false tax returns that generated excessive refunds, totaling more than $200,000. In turn, those refunds purportedly resulted in excessive fees and other payments to the defendants.For tax years 2006 through 2009, the defendants prepared and filed hundreds of federal and state tax returns.
The tax returns also allegedly contained false or inflated income figures as well as false dependents, whose identities the defendants used unlawfully. The false dependents fraudulently qualified the customers for a more favorable filing status, allowed them to take dependent exemptions, and inflated their refundable earned income and child tax credits.
The indictment alleges that the defendants recruited customers, instructing them to sign false income declarations and other paperwork. In many instances, one of the defendants reportedly accompanied the customers to check-cashing businesses to ensure that the defendants would receive some portion of the fraudulent tax refund checks.
If convicted, the defendants face a potential maximum penalty of five years in federal prison for conspiracy, three years on each count of preparing false tax returns, and a mandatory minimum penalty of two years on each count of aggravated identity theft. All sentences will be determined by a federal district court judge.
This case is being investigated by the IRS-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney William J. Otteson.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Suburban Chicago Lawyer Who Hosts National Radio Talk Show Indicted in $9.7 Million Mortgage Fraud SchemesRead the Press Release
CHICAGO — A suburban Chicago lawyer who hosts a national radio talk show was indicted on federal charges for allegedly engaging in two mortgage fraud schemes that defrauded lenders of a total of approximately $9.7 million. The defendant, WARREN BALLENTINE, allegedly schemed with others to obtain more than two dozen fraudulent mortgage loans and represented buyers at multiple closings, knowing that they were fraudulently qualified for loans to purchase homes in Chicago and various southern suburbs.
Ballentine, 41, of Durham, N. Car., and formerly of Country Club Hills, owns the Law Office of Warren Ballentine, LLC, in Country Club Hills. He was charged with two counts of bank fraud, two counts of making false statements to lenders, and one count each of mail fraud and wire fraud in a six-count indictment returned last Thursday by a federal grand jury. The indictment also seeks forfeiture of approximately $9,775,000 in alleged fraud proceeds.
Ballentine is scheduled to be arraigned at 9:30 a.m. on Feb. 5 before U.S. District Judge Matthew Kennelly in Federal Court in Chicago.
The indictment was announced today 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 the Federal Bureau of Investigation; and Thomas P. Brady, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
According to the indictment, between December 2004 and February 2005, Ballentine schemed with others to fraudulently cause various lenders to make at least eight loans totaling approximately $3.6 million by making false statements in loan documents, including applications, HUD-1 settlement statements, and occupancy statements concerning the buyers’ intention to occupy the homes they purchased as a primary residence. Ballentine then represented buyers recruited by others at real estate closings, knowing that they had signed and submitted false documents and had been fraudulently qualified to purchase the properties in Chicago, Monee, Woodridge, and Mokena.
Between February 2005 and May 2006, Ballentine allegedly engaged in a similar, separate scheme with others to fraudulently cause various lenders to make at least 20 loans totaling approximately $6.1 million by making false statements in mortgage documents, including the buyers’ intention to occupy the homes as a primary residence. Ballentine also represented these buyers at closings, knowing that they had been fraudulently qualified for the loans based on false documents, including some that Ballentine advised them to sign at closings. These homes were scattered throughout Chicago and other suburbs, including Country Club Hills, Richton Park, and Markham.
Each count of the indictment carries a maximum penalty of 30 years in prison and a $1 million fine or, as an alternative, the Court may impose a fine of twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Jason Yonan.
The Financial Fraud Enforcement 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. For more information on the task force, visit: www.StopFraud.gov.
Indictment
South Shore Drug Traffickers Charged in Oxycodone Distribution RingRead the Press Release
BOSTON - Seven individuals were charged today in federal court with conspiracy to distribute Oxycodone.
Charged in a criminal complaint with the drug conspiracy, Steven Dunn, 47, of Brockton; Robert Henriques, 55, of Brockton; Jodi Kilday, 46, of Brockton; Jose Silva, 34, of Whitman; Gail Fitzgibbons, 30, of Abington; Gennaro “Jerry” Dellatorre, 35, of Abington; and Adam Roberts, 29, of Brockton. Dunn, Henriques, Kilday, Fitzgibbons, Dellatorre were all arrested this morning. Silva was previously in state custody.
According to the criminal complaint affidavit, a Court-authorized wiretap was utilized to intercept communication between the defendants over the course of approximately eight months. It is alleged that Roberts sold and distributed wholesale quantities of Oxycodone to Dunn and others throughout the South Shore. On Aug. 21, 2012, shortly after purchasing a quantity of Oxycodone from Fitzgibbons, Roberts was arrested and 274 Oxycodone pills were seized. Dunn purchased wholesale quantities of Oxycodone from Roberts, Kilday and others, and then distributed the pills to “street level” customers through Henriques. Silva sold wholesale quantitites of Oxycodone to Fitgibbons and Dellatorre. On Dec. 8, 2012 Silva was arrested while returning from New York and 1,744 Oxycodone pills were seized.
U.S. Attorney Carmen M. Ortiz said, “I want to acknowledge the unprecedented cooperation in this investigation between federal, state and local authorities, which reached from Southeastern Massachusetts to New York to Florida.”
“These arrests demonstrate the commitment of DEA and our law enforcement partners in targeting and bringing to justice those responsible for illegally supplying and distributing Oxycodone in our neighborhoods,” said Special Agent in Charge John Arvanitis. “We are steadfast in our commitment to assisting communities who suffer through the abuse of diverted prescription medicines.”
According to court documents, from June 2012 through December 2012, Dunn, Henriques, Kilday, Silva, Fitzgibbons, Dellatorre and Roberts purchased, sold, and distributed wholesale quantities of Oxycodone.
If convicted, the maximum penalties for each defendant is up to 20 years in prison, to be followed by up to lifetime supervised release and a $1 million fine.United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent-in-Charge of the Drug Enforcement Administration - Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Colonel Timothy Alben, Superintendent of the Massachusetts State Police made the announcement today.
The case was investigated by the DEA Cape Cod Task Force and the Massachusetts State Police Detective Unit assigned to the Plymouth County District Attorney’s Office. Substantial assistance was provided by the Police Departments of Brockton, Marshfield, Wareham, Plymouth, and Barnstable; MSP Cape and Islands Detective Unit; DEA New York Field Division Strike Force Group 23 and West Palm Beach, Fla. Resident Office; Del Ray Beach, Fla. Police Department; and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys James E. Arnold and Michael I. Yoon of Ortiz's Organized Crime Drug Enforcement Task Force.
The details contained in complaint affidavit the are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Smithfield Man Convicted of Federal Drug ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on Friday, January 25, 2013 GREGORY DEVON OBEY, 28, of Smithfield, North Carolina, was convicted for his role in a drug trafficking conspiracy as well as multiple counts of distributing cocaine and crack cocaine.
On August 8, 2012, a Federal Grand Jury returned a Criminal Indictment that charged OBEY with one count of conspiring to distribute and possess with the intent to distribute 280 grams or more of crack cocaine and 5 kilograms or more of powder cocaine. The Indictment also charged OBEY with 7 counts of distributing powder cocaine and 28 grams or more of crack cocaine from August 30, 2011, up to and including June 13, 2012. On January 25, 2013, after a three-day trial, a jury found OBEY guilty on all counts. Based on these convictions, OBEY faces up to a life sentence in prison.
The evidence in the case demonstrated that from at least March 2011, up to and including June 12, 2012, OBEY and at least seven other individuals conspired to distribute crack and powder cocaine. In his statement, OBEY admitted that he had obtained over 55 kilograms of crack cocaine and over 79 kilograms of powder cocaine from his sources of supply for re-distribution. During the investigation, seven controlled buys of cocaine and crack cocaine were conducted from OBEY, each recorded with an audio/video device. In addition, the evidence established that, upon his arrest, OBEY confessed to being a drug dealer and named approximately seven other co-conspirators with whom he had been trafficking cocaine and crack cocaine. The evidence developed also revealed that, shortly before his arrest, OBEY threatened a witness in the case.
Investigation of this case was conducted by the Smithfield Police Department, the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Sioux Falls Man Indicted for Wire FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls man has been indicted by a federal grand jury for Wire Fraud.
Terry Stimpert, age 37, was indicted by a federal grand jury on December 4, 2012 for Wire Fraud. He appeared before US Magistrate Judge John E. Simko on January 24, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 20 years imprisonment and/or a $250,000 fine. The charge is merely an accusation and Stimpert is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Assistant United States Attorney Jeffrey C. Clapper is prosecuting the case. Stimpert was released on bond pending trial.
Sheyenne Man Sentenced for Damaging Law Enforcement VehicleRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on Jan. 28, 2013, Weldon Littleghost, 21, of Sheyenne, N.D., was sentenced before U. S. District Judge Ralph R. Erickson on charges of damage to government property, possession of stolen firearms, and escape by prisoner.
Judge Erickson sentenced Littleghost to one year and nine months in prison. The sentence is to be followed by three years of supervised release. Littleghost was ordered to pay restitution, joint and several with co-defendant Lucas Little, in the amount of $42,358.19, and to pay a $225 special assessment to the Crime Victim's Fund. Littleghost pleaded guilty to the charges on Sept. 26, 2012.
Co-defendant Lucas Little of Tokio, N.D., pleaded guilty to the same charges on Sept. 25, 2012. Little was sentenced on Dec. 18, 2012, to one year and 10 months in prison to be followed by two years of supervised release. Little was ordered to pay restitution, joint and several with co-defendant Weldon Littleghost, in the amount of $42,358.19, and to pay a $225 special assessment to the Crime Victim's Fund.
On Aug. 24, 2011, Little and Littleghost were arrested on tribal charges on the Spirit Lake Indian Reservation and placed in the back seat of a Bureau of Indian Affairs police vehicle. While the arresting officer was tending to the medical needs of another person arrested with Little and Littleghost, Little managed to gain access to the front seat of the police vehicle and drove away with Littleghost in the vehicle.The two men drove a distance and were able to remove their handcuffs. Then Little and Littleghost severely damaged the vehicle by destroying the digital video and radio systems, and shooting the back window and the exterior of the vehicle. Finally, the vehicle was eventually recovered from Horseshoe Lake when the pair missed a curve in the road and drove into the lake. During the search for the escaped prisoners, a U.S. Border Patrol helicopter with thermal imaging capabilities was used to locate Little along the shore. Littleghost was apprehended at the home of a relative.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs with assistance from the United States Border Patrol.
Assistant U. S. Attorney Janice M. Morley prosecuted the case.
Serial Sex Offender from Utah Sentenced to Eight Years in PrisonRead the Press Release
BOISE – Bo B. Burdick, 21, of Tremonton, Utah, was sentenced today in United States District Court in Boise to 96 months in prison followed by ten years of supervised release for travel with intent to engage in illicit sexual contact, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also imposed a no contact order and ordered Burdick to pay $21,683.83 in restitution to the victim. Burdick pleaded guilty to the charge on August 20, 2012.
According to the plea agreement, in January 2011, Burdick solicited a “Facebook” friend request from a 13-year-old girl living in Idaho. The girl accepted and learned that Burdick was a volunteer firefighter and EMT living in Utah. Burdick and the girl began to chat via text messaging, using cellular telephones and an iPod. Early in their online relationship, Burdick sent the girl a nude picture of himself, and the girl complied with Burdick's request to send him sexually provocative pictures of herself, including pictures of her in underwear and fully nude. The girl e-mailed the pictures from her e-mail account to the e-mail address provided by Burdick.
Idaho State Police Cyber Crimes Unit recovered text messages and e-mail sent in January 2011 from the girl to Burdick, and from Burdick to the girl. The messages clearly show that the girl told Burdick she was 13 years old. They also show Burdick giving the girl instructions about the kinds of pictures he wanted her to send.
According to the plea agreement, Burdick was interviewed by agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations in Utah in March 2012. At the interview, Burdick admitted that he traveled from Utah to Idaho to visit the girl on four separate occasions in 2011; that he rented hotel rooms and that he and the girl engaged in sexual intercourse. Burdick also told investigators that he had saved nude pictures of the girl on his laptop computer. Initial forensic analysis of the computer by Idaho State Police identified files in folders containing digital images of the girl in various stages of undress, images of other young females, and pictures of recognizable locations in three Idaho towns. An SD card contained many of the same images recovered from the laptop. Examination of Burdick's cellular phone also found thumbnail images of the girl, which were transferred to the laptop.
According to court documents, during the investigation, investigators discovered that the 13-year-old in this case is not Burdick's only victim. Burdick admitted that between the ages of 17 and 20, he had sexual encounters with 11 females in Utah whom he had met online. Burdick told investigators four of the females were under the age of 16, including the Idaho victim. Burdick admitted that when he was age 19, he had a sexual relationship with a 14-year-old female in Utah and fathered a child with her.
“Mr. Burdick’s eight year sentence sends the strong message that those who sexually exploit children will receive significant punishment,” said Olson. “The criminal conduct in this case is tragic for the victim and her family. The dangers of sexual predators who lurk on the internet is real and persistent. Idaho law enforcement at all levels will work together to aggressively pursue these offenders.”
“This case illustrates the importance of parental involvement in a child's digital life,” said Brad Bench, special agent in charge of HSI Seattle, who oversees HSI investigations in Idaho. “If not for the intervention of the girl's parents who discovered and reported the illicit activity, Burdick could be free to victimize others. While parents are the first line of defense in protecting children, they are not alone. Every day HSI and its law enforcement partners work tirelessly to investigate, arrest and prosecute child predators.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Idaho State Police.
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, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Samurai Sword Wielding Palm Coast Man Sentenced to 10 Years in Federal Prison for Receiving Child PornographyRead the Press Release
Jacksonville, Florida - U.S. District Judge Marcia Morales Howard today sentenced Kamil Mezalka (21, Palm Coast) to 10 years in federal prison for receiving child pornography over the Internet. As part of his sentence, Mezalka is also required to serve a 10-year term of supervised release, following his release from prison, and ordered to forfeit his computers and other digital media.
According to court documents, in March 2012, an agent with the Federal Bureau of Investigation (FBI) in Philadelphia began an Internet undercover investigation to identify persons using a particular file sharing program to obtain and share child pornography. Using a computer, the agent logged into this file sharing program and observed that an individual using a particular screen name was logged into the network. The agent browsed the user’s shared directory and observed that over 4,000 files were being shared therein, many of which contained titles and descriptors indicative of child pornography and the sexual abuse of children. The investigation revealed that during the time frame of these two download sessions, this particular IP address was issued to an account registered to an individual at a residence in Palm Coast, Florida. Subsequent investigation revealed that Kamil Mezalka was an occupant of this residence.
On May 8, 2012, FBI agents executed a federal search warrant at Mezalka’s residence. As agents gained entry to the residence, Mezalka came out of a second floor bedroom, observed the agents, and quickly turned and went back inside the same bedroom and closed the door. Despite repeated commands to come out of the bedroom, Mezalka remained in the bedroom and proceeded to use a samurai sword to attempt to destroy his computers and compact disks. Agents made entry into Mezalka’s bedroom, where he was eventually arrested. During an interview, Mezalka admitted to, among other things, having a file sharing program on his computer which he used to download pornography that included child pornography. He further stated that most of it would be on the laptop computer and that some of the images might be on the desktop computer.
During the search, the agents seized, among other things, a desktop computer and a laptop computer. Both of these computers were damaged by Mezalka’s use of the samurai sword. Subsequent forensic analysis revealed that one hard drive contained over 12,000 images and over 3,000 videos, of which at least 500 images and 100 videos depicted child pornography.
This case was investigated by the Federal Bureau of Investigation in Philadelphia and Jacksonville, the Florida Department of Law Enforcement, and the Flagler County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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."
Rosebud Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Failure to Register as a Sex Offender was sentenced on January 23, 2013 by United States District Judge Roberto A. Lange. Darrell Bear Robe, age 23, was sentenced to 15 months in custody, 5 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
Bear Robe was indicted by a federal grand jury on July 18, 2012 and pled guilty to the charge on October 29, 2012.
On April 13, 2009 Darrell Bear Robe was convicted of Abusive Sexual Contact. The Court sentenced Bear Robe to 24 months in custody and five years of supervised release and also ordered that he register as a sex offender. Bear Robe began his term of supervised release on July 12, 2010 and absconded from supervised release on June 15, 2011. During the time he absconded from supervised release until he was apprehended in Oregon on May 9, 2012, Bear Robe failed to complete his bi-annual sex offender registration requirement.
The investigation was conducted by the United States Marshal Service. The case was prosecuted by Assistant United States Attorney Marie H. Ruettgers.
Bear Robe was remanded to the custody of the United States Marshal.
Rapid City Woman Charged with Concealing Person from ArrestRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota woman has been indicted by a federal grand jury for Concealing Person From Arrest. Megan Crazy Thunder, age 24, was indicted on January 16, 2013.
She appeared before United States Magistrate Judge Mark A. Moreno on January 23, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Crazy Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal Service. Assistant United States Attorney Marie H. Ruettgers is prosecuting the case.
Crazy Thunder was released on bond pending trial. A trial date has not been set.
Puerto Rican Man Sentenced to Two Years in Prison for Distributing Counterfeit, Chinese-Made Pharmaceuticals Across United StatesRead the Press Release
LOS ANGELES – A Puerto Rican man was sentenced today to two years in federal prison for being a key member of an organization that distributed large quantities of Chinese-made, counterfeit pharmaceuticals across the United States.
Francis Ortiz Gonzalez, 36, was sentenced late this morning by United States District Judge George H. Wu, who also ordered the defendant to pay $324,530 in restitution to the pharmaceutical companies that manufacture brand name products such as Lipitor, Viagra, Xanax and Cialis.
In September 2009, federal agents executed a search warrant at Ortiz Gonzalez’s residence in Trujillo Alto, a suburb of San Juan, Puerto Rico. Inside the home, investigators found more than 100,000 pills that resembled a variety of popular prescription medications made by companies such as Pfizer Inc. and Eli Lilly and Company. Investigators developed evidence that Ortiz Gonzalez obtained the counterfeit pills from China and had shipped more than 140,000 of them to individuals throughout the United States. If the drugs had been authentic, the retail value of the pills shipped throughout the United States by Ortiz Gonzalez and possessed in his home would be more than $1 million.
After a six-day trial last summer, Ortiz Gonzalez was convicted on one count of conspiracy and seven counts of trafficking in counterfeit pharmaceuticals. Ortiz Gonzalez was acquitted on three charges. His wife, Ideliz Aleman-Valentin, was acquitted on all charges.
Ortiz Gonzalez packaged and shipped more than 140,000 counterfeit tablets during a seven-month period in 2009 while working as a “dropshipper” for a counterfeit drug ring allegedly headed by Bo Jiang, 34, a Chinese national whose last known residence was in New Zealand. In January 2011, Jiang was taken into custody on a provisional arrest warrant by New Zealand law enforcement authorities, but he fled shortly after being released on bond. Jiang remains a fugitive.
In a related case before Judge Wu, a North Hollywood man was found guilty on January 11 of federal charges involving the trafficking of counterfeit pharmaceuticals.
Edward Alarcon, 44, was convicted of two counts of trafficking in counterfeit OxyContin and Cialis (he was acquitted on two other counts). The evidence presented during a three-day jury trial showed that Alarcon had purchased the counterfeit OxyContin from
Bo Jiang, the same man who allegedly supplied Ortiz Gonzalez. On November 10, 2009, federal agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) found approximately 237 counterfeit OxyContin pills and approximately 1,592 counterfeit Cialis pills in Alarcon’s car and house. Investigators also found hundreds of other counterfeit pills, including Viagra and Levitra. Only a month before the federal search, Alarcon had been convicted in state court on counterfeit drug charges for selling counterfeit Cialis to an undercover Los Angeles Police Department officer in 2008.
Alarcon is scheduled to be sentenced by Judge Wu on April 4. At that time, Alarcon faces a statutory maximum sentence of 20 years in federal prison.
The cases against Ortiz Gonzalez and Alarcon are the result of investigations by HSI; the Food and Drug Administration, Office of Criminal Investigations; and the United States Postal Inspection Service.Release No. 13-013
Preschool Teacher Pleads Guilty to Producing Child PornographyRead the Press Release
ALEXANDRIA, Va. – James Douglas Manring, 54, of Fredericksburg, Va., pleaded guilty today to producing child pornography by filming his sexual abuse of several five-year-old students while teaching in Japan.Manring taught preschool in Bethesda, Md., prior to his arrest on Nov. 13, 2012.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after the guilty plea was accepted by United States District Judge Claude M. Hilton.
Manring pleaded guilty to two counts of production of child pornography, which carry a mandatory minimum penalty of ten years and a maximum penalty of 20 years in prison, for each count.
According to statement of facts and other court records, Manring filmed himself performing sexual acts on several students who were approximately five years of age while teaching at a preschool in Japan from 1996 till 1999. In 1999, Manring returned the United States and brought DVDs containing the child pornography he produced with him.
Between April 2010 and February 2011, Manring purchased approximately 46 “naturist” videos for more than $2,000. These videos depict the graphic and simulated lascivious exhibition of the genitals and pubic areas of minor boys and were mailed from New York to Manring’s residence in Fredericksburg.
This case was investigated by the U.S. Postal Inspection Service’s Washington Division’s Child Exploitation Investigations. Special Assistant United States Attorney Alicia J. Yass is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov..
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.Permanent Injunction Entered Against Michigan-Based Manufacturer of Soy ProductsRead the Press Release
U.S. District Judge David M. Lawson, of the Eastern District of Michigan, entered a consent decree of permanent injunction against Ann Arbor, Michigan-based Green Hope LLC, dba Rosewood Products, and its president, Phil G. Ye, the Justice Department announced today.
The company manufactures and sells ready-to-eat organic tofu and soy milk products to businesses in Michigan and Minnesota, including organic supermarket chains. As alleged in the complaint filed against the company and Ye, numerous Food and Drug Administration (FDA) inspections since 2009 found persistent violations at the company’s manufacturing facility involving insanitary conditions. FDA’s inspections found that Green Hope did not store food properly, did not address employee cleanliness issues, permitted waste water to come into contact with tofu during processing and failed to clean all food-contact surfaces and equipment. These violations raised the possibility of contamination of the company’s food products.
The consent decree orders Green Hope and Ye to take a wide range of actions to correct the violations and ensure that they do not happen again. Among other actions, Green Hope must develop and implement sanitation control programs; provide FDA the opportunity to inspect the facilities to assure Green Hope’s compliance with the consent decree, the Food, Drug and Cosmetic Act, and applicable regulations; and receive written authorization from FDA to resume operations. Green Hope must also make structural repairs to its facility necessary to protect against contamination of raw ingredients, in-process and finished articles of food, containers and packaging materials.
“This company has a long history of not complying with federal statutes and regulations intended to protect the public health,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “Consumers expect, and deserve, that their food be safe to eat, and the Department of Justice will continue to take enforcement action against food manufacturers whose conduct can endanger public safety.”
This case was litigated by Dan Baeza of the Consumer Protection Branch in the Department of Justice’s Civil Division in conjunction with Assistant U.S. Attorney Peter A. Caplan of the U.S. Attorney’s Office for the Eastern District of Michigan and Christopher Fanelli of the FDA’s Office of Chief Counsel. The case was investigated by the FDA’s Detroit District Office.
The FDA Warning Letter against Green Hope can be found at: www.fda.gov/ICECI/EnforcementActions/WarningLetters/2011/ucm254923.htm
Parmelee Woman Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota woman has been indicted by a federal grand jury for Involuntary Manslaughter.
Kamelia Ione No Moccasin, age 28, was indicted by a federal grand jury on January 16, 2013. She appeared before United States Magistrate Judge Mark A. Moreno on January 24, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 8 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and No Moccasin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. Assistant United States Attorney Marie H. Ruettgers is prosecuting the case.
No Moccasin was released on bond pending trial. A trial date has not been set.
Oxon Hill Man Exiled to 16 Years in Prison on Gun and Drug ChargesRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Antonio Timothy Bailey, age 34, of Oxon Hill, Maryland, today to 16 years in prison followed by five years of supervised release for possession with intent to distribute crack cocaine base, and being a felon in possession of a firearm. Chief Judge Chasanow enhanced Bailey’s sentence upon finding that he is an armed career criminal based on three previous narcotics and gun convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to Bailey’s plea agreement, on November 8, 2011, Bailey was sitting in his car, parked outside a known open air drug market, when he was approached by officers with the Prince George’s County Police Department (PGPD). As officers approached his vehicle, Bailey jumped out and ran away, followed by police. During the chase, Bailey threw a plastic bag containing 29 blue glassine baggies, containing a total of 3.06 grams of crack cocaine. Bailey was arrested and charged in the District Court for Prince George’s County, Maryland, with possession with intent to distribute crack cocaine, among other charges.
After additional investigation, on February 3, 2012, PGPD officers searched Bailey’s apartment in Oxon Hill. Bailey was found in the apartment and officers recovered: a loaded 9 mm caliber, semi-automatic pistol; 20.65 grams of crack cocaine, packaged in small glassine baggies; approximately 11 grams of marijuana; and drug distribution paraphernalia, including two electronic scales, empty glassine baggies, a cooking cup, baking soda, and a razor blade.
During a subsequent interview with police, Bailey admitted to purchasing two ounces of powder cocaine every two weeks, cooking it into crack cocaine at his apartment, packaging it for sale, and selling it at various locations in Prince George’s County. Bailey stated that he kept the gun in his apartment for protection.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Steven E. Swaney and Special Assistant U.S. Attorneys Jonathan Ophardt, assigned from the U.S. Department of Justice, and Paul Nitze, assigned from the Social Security Administration, who prosecuted the case.
Owings Mills Woman Indicted in Tax Fraud SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Karen Kimble, a/k/a âKaren Kimble-Mamah,â and âKaren Mamah,â age 38, of Owings Mills, Maryland, on charges of wire fraud, subscribing to a false tax return, aiding in the filing of a false tax return, aggravated identity theft and visa fraud. The indictment was returned on January 24, 2013. Kimble has an initial appearance scheduled today at 2:15 p.m. in U.S. District Court in Baltimore, Courtroom 7B before U.S. Magistrate Judge Susan K. Gauvey.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcementâs (ICE) Homeland Security Investigations (HSI); Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.
âFraud schemes involving identity theft cause tremendous financial damage and can make honest taxpayers face a more difficult time obtaining their lawful refund,â said Shelia Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. âMs. Kimbleâs refund fraud scheme victimized innocent taxpayers and tampered with the integrity of our nationâs tax system. The IRS will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.â
The 21-count indictment alleges that from February 2008 through at least April 2012, Kimble, who falsely held herself out to others as a âcertified tax preparer,â conducted a tax fraud scheme by submitting fraudulent tax returns for clients. Specifically, the indictment alleges that Kimble falsely inflated credits and deductions and clientsâ tax returns, as well as on her own tax returns, in order to fraudulently increase the tax refund. Kimble provided her clients with a tax return that did not reflect the false deductions and credits, nor did she inform them of the fraudulent deductions/credits. Kimble filed the fraudulent returns without her clientsâ knowledge or permission, using their personally identifiable information. Kimble directed that the tax refunds be mailed or directly deposited with all of the refund sent to Kimble, or with some of the refund sent to the taxpayer and some to Kimble. The indictment alleges that Kimble received a total of over $221,000 in fraudulent federal and tax refunds, none of which she reported as income on her own tax returns. The indictment seeks forfeiture of $221,698, alleged to be the proceeds of the scheme.
The indictment also alleges that on February 14, 2008, Kimble married a Ghanian citizen, knowing that the marriage was not valid because the Ghanian was not legally divorced from his first wife.
Kimball faces a maximum sentence of 30 years in prison for each of six counts of wire fraud; three years in prison for each of five counts of subscribing to a false tax return, and for each of five counts of aiding in the filing of a false tax return; a mandatory two years in prison, consecutive to any other sentence, for each of four counts of aggravated identity theft; and 10 years in prison for visa fraud.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, IRS-Criminal Investigation and the USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who is prosecuting the case.
Orlando Man Pleads Guilty to Tax Fraud Scheme Involving RefundsRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces that Salvador Cuevas (Orlando) today pleaded guilty to conspiring to defraud the government with respect to false claims. Cuevas faces a maximum penalty of 10 years in federal prison.
Cuevas is part of a fraudulent tax refund scheme using the stolen identities of Puerto Rican residents to obtain paper refund checks. The refunds (Treasury checks) were delivered to various addresses in the Orlando area.
According to the plea agreement, in September 2007, Cuevas opened a checking account at Washington Mutual (now known as JP Morgan Chase). Cuevas was the only signatory on the account. About that same time, he paid another individual $300 to use the individual's address on Venezia Plantation Drive, in Orlando, Florida to receive “mail,” referring to U.S. Treasury checks. ln October 2007, Cuevas began depositing Treasury refund checks into the account. After the checks cleared, large cash withdrawals and/or personal expenditure purchases were made against the account. According to the WAMU bank records, the third-party Treasury checks that were deposited represented 75% of the total credits into the account. Cuevas admitted to depositing the refund checks, which were in the names of other people, into his bank account.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
Omaha Man Sentenced for Possession of Stolen ExplosivesRead the Press Release
United States Attorney Deborah R. Gilg announced that Travis McQueen, age 28 of Omaha, was sentenced today in Omaha by Chief United States District Judge Laurie Smith Camp to 63 months in federal prison followed by 3 years of supervised release. Mr. McQueen had previously pleaded guilty to one count of knowing possession of stolen explosives.
On August 11, 2011, one or more persons broke into storage units at the Buckley Powder Company in rural Cass County, Nebraska, and stole 100 pounds of blasting agent, 3,000 feet of detonating cord and two cases of boosters. A lengthy investigation into the matter eventually led investigators to place reward flyers in various locations in eastern Nebraska. An anonymous caller contacted authorities and suggested Travis McQueen might be involved. Investigators following up on the lead were able to determine that Mr. McQueen had been involved in disposing of the materials by throwing them into the Missouri river. Excavating equipment was brought in by the Bureau of Alcohol, Tobacco and Firearms and investigators were able to locate some of the materials. Investigators believe the bulk of the stolen materials were, in fact, thrown into the river.
The investigation of this matter was conducted by the Bureau of Alcohol, Tobacco and Firearms.
Ohio Woman sentenced for role in drug and money laundering conspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that, Brenna Sue Hauenstein of Columbus, Ohio, was sentenced in federal court in Juneau for her role in a drug and money-laundering conspiracy.
Hauenstein, 31, was sentenced by United States District Court Judge Timothy M. Burgess to 24 months in prison and 3 years of supervised release.
According to information presented to the court by Assistant U.S. Attorney Jack S. Schmidt, the defendant was a member of a large scale drug conspiracy operation where oxycodone was delivered to Juneau, Alaska, from sources located in Sacramento, California, through commercial package delivery services and drug couriers flying on commercial flights. Oxycodone was delivered to other members of the conspiracy in Juneau for subsequent distribution and drug proceeds were sent back to other co-conspirators located in Sacramento, California, via bank deposits, wire remittance services, or drug couriers. Hauenstein had lived in Juneau, Alaska, between January 2010 and June 2010, during which time she distributed oxycodone and laundered drug proceeds through local banks with the intent to conceal and disguise the nature, location, source, ownership, and control of the drug proceeds.
Prior to imposing sentence, Judge Burgess indicated the extreme seriousness of the offense and the substantial need to deter the defendant and others from engaging in such criminal behavior.
Ms. Loeffler commended the Drug Enforcement Agency (DEA), Internal Revenue Service Criminal Investigations, Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit for the investigation leading to the successful prosecution of the above listed defendants.
Mount Olive Inmate Pleads Guilty to Mailing Threatening CommunicationsRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Mt. Olive Correctional Complex inmate pleaded guilty in federal court for mailing threatening communications. Joseph Michael Pettaway, 38, admitted that beginning around 2000 and continuing until 2012, he wrote several letters that contained threats to harm a former acquaintance.
Specifically, Pettaway admitted that on approximately October 6, 2011, he mailed a letter to his former acquaintance. The defendant was incarcerated Mt. Olive Correctional Complex at the time the letter was mailed. Pettaway admitted that the letter contained descriptions of violent acts that he intended to commit, including beating and raping his former acquaintance, following his release from prison. The letter was mailed from Mount Olive Correctional Complex and delivered to the individual’s Huntington residence.
Pettaway admitted that along with the letter was an attached violation report containing information about an incident at the prison. The violation report provided details of an incident in which the defendant was reprimanded for throwing boiling water onto another inmate. The inmate suffered second degree burns as a result of the incident.
Pettaway faces up to five years in prison and a $250,000 fine when he is sentenced on May 1, 2013 by United States District Judge John T. Copenhaver, Jr.
The FBI conducted the investigation. Assistant United States Attorney Blaire Malkin is in charge of the prosecution.
Monett Man Sentenced for Obscenity; Possessed Cartoons of Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Monett, Mo., man was sentenced in federal court today for possessing cartoons that depicted child pornography.
Christjan Bee, 36, of Monett, was sentenced by U.S. District Judge Dean Whipple to three years in federal prison without parole, followed by five years of supervised release.
On Oct. 15, 2012, Bee pleaded guilty to possessing an obscene image of the sexual abuse of children. The pornographic cartoon, which depicted children engaging in sexual behavior, is categorized as obscene and therefore illegal. The original indictment, which charged Bee with receiving child pornography, was dismissed today as part of the plea agreement.
On Aug. 8, 2011, Bee’s wife contacted the Monett Police Department and reported that she had found files she believed to be child pornography on a computer used by her husband. Police officers executed a search warrant at Bee’s residence and seized his computer.
During the forensic examination of Bee’s computer, a collection of electronic comics, entitled “incest comics,” were discovered on the computer. These comics contained multiple images of minors engaging in graphic sexual intercourse with adults and other minors. The depictions clearly lack any literary, artistic, political or scientific value.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Monett, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Michigan Man Pleads Guilty to Tax ChargesRead the Press Release
Steven Kern of Marine City, Mich., pleaded guilty today before U.S. District Court Judge Arthur J. Tarnow in the Eastern District of Michigan to eight counts of filing false corporate tax returns and eight counts of failing to file his individual tax returns, the Justice Department and Internal Revenue Service (IRS) announced today.
According to filed court documents and court proceedings, Kern operated the Kern Chiropractic Center from Marine City and diverted cash and check payments from the business for his own personal use. The indictment alleges that Kern failed to file individual tax returns for tax years 2003 to 2010, despite earning more $1.2 million in gross income during that time period. According to filed court documents and court proceedings, Kern told IRS-Criminal Investigation Special Agents he believed signing and filing a completed tax return was a violation of his constitutional rights.
Each count of filing a false corporate tax return carries a maximum penalty of three years in prison and a $250,000 fine. Each count of failing to file an individual tax return carries a maximum penalty of twelve months imprisonment and a fine of up to $100,000. Kern is scheduled to be sentenced on April 30, 2013.
The case is being prosecuted by Trial Attorneys Mark McDonald and Jeff Bender of the Justice Department’s Tax Division. The investigation was conducted by IRS Criminal Investigation.
Miami-Area Therapist Sentenced to Prison in Florida in $205 Million Community Mental Health Fraud SchemeRead the Press Release
Miami-area resident Nichole Eckert, former therapist at the mental health care company American Therapeutic Corporation (ATC), was sentenced today to serve 48 months in prison for participating in a $205 million Medicare fraud scheme.
The sentence was announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent-in-Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the Health and Human Services’ Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Eckert, 35, was sentenced by U.S. District Judge Patricia A. Seitz in the Southern District of Florida. In addition to the prison term, Judge Seitz sentenced Eckert to serve three years of supervised release and ordered her to pay more than $72 million in restitution, jointly and severally with her co-defendants.On Nov. 15, 2012, a federal jury in the Southern District of Florida found Eckert guilty of one count of conspiracy to commit health care fraud after a 16-day trial. She has been in federal custody since her conviction.
Evidence at trial demonstrated that the defendant and her co-conspirators caused the submission of false and fraudulent claims to Medicare through ATC, a Florida corporation headquartered in Miami that operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness. The defendant and her co-conspirators also used a related company, American Sleep Institute, to submit fraudulent Medicare claims.Evidence at trial revealed that ATC secured patients by paying kickbacks to assisted living facility owners and halfway house owners who would then steer patients to ATC. These patients attended ATC, where they were ineligible for the treatment ATC billed to Medicare and where they did not receive the treatment that was billed to Medicare. After Medicare paid the claims, some of the co-conspirators then laundered the Medicare money in order to create cash to pay the patient kickbacks.
Eckert was a therapist at ATC’s Ft. Lauderdale, Fla., center from September 2005 to September 2007, and returned to ATC as a therapist from late 2009 to October 2010, when ATC closed its doors as a result of federal charges. Evidence at trial revealed that Eckert fabricated therapist notes and other documents for patient files and submissions, and taught others to fabricate them, to make it appear both that ATC patients were qualified for PHP treatment and that they were receiving the intensive, individualized treatment PHP is supposed to be. ATC used those patient files to substantiate false and fraudulent claims to Medicare. Included in these submissions were claims for patients who were in the late stages of diseases causing permanent cognitive memory loss and patients who had substance abuse issues and were living in halfway houses. These patients were ineligible for PHP treatments, and because they were forced by their assisted living facility owners and halfway house owners to attend ATC, they were not receiving treatment for the diseases they actually had.
ATC and related company Medlink pleaded guilty in May 2011 to conspiracy to commit health care fraud. ATC also pleaded guilty to conspiracy to defraud the United States and to pay and receive illegal health care kickbacks. On Sept. 16, 2011, the two corporations were sentenced to five years of probation per count and ordered to pay restitution of $87 million. Both corporations have been defunct since their owners were arrested in October 2010. Dozens of individuals have been convicted at trial or pleaded guilty for their participation in the scheme.
Evidence at trial showed that the ATC scheme resulted in a total of $205 million in fraudulent Medicare billings.
The cases were prosecuted by Senior Trial Attorney Jennifer L. Saulino and Trial Attorney Laura M.K. Cordova of the Justice Department Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Mexican National Sentenced to 14 Years for Distributing Meth in the Magic ValleyRead the Press Release
POCATELLO – Jose Tapia-Lopez, 29, a Mexican national formerly living in Heyburn, Idaho, was sentenced today in United States District Court to 168 months in prison for possession with intent to distribute 50 grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Tapia-Lopez to serve five years of supervised release. He pleaded guilty to the charge on November 5, 2012.
According to the plea agreement, on April 11, 2012, Tapia-Lopez arranged to distribute a half pound of methamphetamine to an individual in Twin Falls, Idaho. While en route to the meeting, law enforcement officers attempted to stop Tapia-Lopez’s vehicle. Tapia-Lopez tried to elude the officers, during which he threw methamphetamine from the car’s window. The officers recovered the substance. Forensic analysis later determined the substance contained in excess of fifty grams of actual methamphetamine.
On November 5, 2012, Tapia-Lopez’s co-defendant, Eulalio Loya, 56, of Rupert, Idaho, pleaded guilty to possession with intent to distribute 50 grams or more of actual methamphetamine. According to the plea agreement, on February 16, 2012, Loya arranged to distribute a quarter pound of methamphetamine in Fort Hall, Idaho, and subsequently met and sold the individual in excess of 50 grams of actual methamphetamine. Loya is scheduled to be sentenced on February 11, 2013, at the federal courthouse in Pocatello. He faces a minimum sentence of ten years up to life in prison, a maximum fine of $10 million, and at least five years of supervised release.
The case was investigated by the Drug Enforcement Administration and the Idaho State Police, with assistance by the Minidoka County Sheriff’s Office and Cassia County Sheriff’s Office.
Mexican Man Sentenced to 12+ Years for Drug Trafficking in WichitaRead the Press Release
WICHITA, KAN. – A Mexican citizen has been sentenced to 151 months in federal prison for his role in a drug trafficking organization that distributed heroin, cocaine and methamphetamine in Wichita, U.S. Attorney Barry Grissom said today.
Juan Arellano Padilla, 36, Kansas City, Kan., pleaded guilty to one count of conspiracy to distribute heroin, one count of conspiracy to distribute methamphetamine, one count of conspiracy to distribute cocaine and one count of distributing methamphetamine.
Beginning in late 2009, the Wichita Police Department began conducting an investigation into suspected drug trafficking involving a number of persons, some of who had ties to Mexico. During the investigation: – Oklahoma City Police stopped a van in Norman, Okla., and seized 137.5 pounds of marijuana bound for Wichita.
– Investigators obtained wiretaps to monitor traffickers’ phones.
– Investigators monitored global positioning devices on specified cell phones.
– Investigators arranged to buy drugs from conspirators.In his plea, Padilla admitted that in 2010 he was part of the trafficking organization and conspired with others to distribute drugs.
Co-defendants include: Carlos Ramirez, who was sentenced to 96 months in federal prison.
Alejandro R. Hernandez, who was sentenced to 87 months in federal prison.
Ponciano Munoz-Meraz, who was sentenced to 70 months.
Guillermo Amparan, who was sentenced to 24 months in federal prison.Grissom commended the Wichita Police Department, the Oklahoma City Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.