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3 January 2013
Joplin Woman Pleads Guilty to Making False Statements to Receive Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., woman pleaded guilty in federal court today to making false statements in order to obtain federal disaster benefits following the May 22, 2011, tornado.
Pamala Ann Shafer, 37, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in an April 3, 2012 federal indictment.
Shafer admitted that she applied for federal disaster benefits by falsely claiming that her residence had been damaged by the tornado. Shafer also filed an application for temporary rental assistance. On the basis of Shafer’s representations, FEMA authorized a $938 payment. Shafer admitted today she did not reside at that address at the time of the tornado. Rather, the apartment had been owned by another individual, who did not know Shafer.
Shafer is the fifth defendant to plead guilty in cases related to fraudulently receiving federal disaster benefits following the tornado. In separate and unrelated cases, Wanda Gail McBride, Ronald Martell Irby and Karen Marie Parks, all of Joplin, pleaded guilty and have been sentenced. Amber Nicole Peters of Joplin pleaded guilty and awaits sentencing.
Under federal statutes, Shafer is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI, Homeland Security Investigations-Office of Inspector General, and the Joplin, Mo., Police Department.Janssen Pharmaceuticals Pleads Guilty and Is Sentenced for MisbrandingRead the Press Release
PHILADELPHIA – Janssen Pharmaceuticals, Inc. (Janssen), a subsidiary of health care giant Johnson & Johnson (J&J), pleaded guilty today to a one count information charging Janssen with introducing a misbranded drug, Risperdal, into interstate commerce. U.S. District Court Judge Timothy J. Savage sentenced the company, ordering payment of a $344 million fine and forfeiture of $66 million.
Risperdal, an atypical anti-psychotic drug, was originally approved only to treat the management of the manifestations of psychotic disorders. On March 3, 2002, the approved use was narrowed to treatment of schizophrenia only. Janssen introduced Risperdal for a new, unapproved use, rendering the product misbranded. In a plea agreement resolving these charges, Janssen admits that between March 3, 2002, and December 31, 2003, it promoted Risperdal to health care providers for treatment of psychotic symptoms and associated disturbances exhibited by elderly, non-schizophrenic dementia patients, uses not approved as safe and effective by the Food and Drug Administration (FDA).
The Federal Food, Drug and Cosmetic Act (FDCA) requires a pharmaceutical company to specify the intended uses of a product in its new drug application to the FDA. Once approved, a drug may not be introduced into interstate commerce for unapproved or “off-label” uses. A manufacturer’s promotional activities of a drug for a use not approved by the FDA are evidence of its intent to distribute the drug for a new, unapproved use, also known as “misbranding.”
The case was investigated by the Health and Human Services-Office of Inspector General, the Food and Drug Administration’s Office of Criminal Investigations, and the Defense Criminal Investigative Service of the Department of Defense.
The criminal case was prosecuted by Assistant U.S. Attorneys Albert Glenn and Scott Cullen.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Philadelphia Man with Four Bank RobberiesRead the Press Release
Kevin Neal, 36, of Philadelphia, PA, was charged today by indictment with four counts of bank robbery, announced United States Attorney Zane David Memeger. According to the indictment, Neal robbed the First Niagara Bank, located at 9869 Bustleton Avenue, Philadelphia, on January 10, 2013; the First Niagara Bank, located at 11730 Bustleton Avenue, Philadelphia, on January 16, 2013; the PNC Bank, located at 123 Old York Road, Jenkintown, on February 16, 2013; and the Trumark Financial Credit Union, located at 7306 Castor Avenue, Philadelphia, on March 13, 2013.
If convicted of all charges, Neal faces a maximum sentence of 80 years in prison, a fine of up to $1 millionod of supervised release of three years, a $1,000,000 fine, a $100 special assessment, and restitution.
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Hyattsville Man Sentenced for Selling Misbranded Prescription and Non-Prescription DrugsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Luis Alberto Jimenez, age 33, formerly of Hyattsville, Maryland, today to 10 months incarceration, with five months of that being home detention with electronic monitoring, followed by two years of supervised release, for selling misbranded, non-FDA approved prescription and non-prescription drugs. Judge Williams also ordered Jiminez to pay a $3,000 fine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“The FDA - Office of Criminal Investigations is committed to working with the DEA and Prince George’s County Police Department to ensure the public is not endangered by pseudo medical practitioners dispensing and administering unapproved medications,” said Special Agent in Charge Antoinette V. Henry of the FDA Office of Criminal Investigations, Metro Washington Field Office.
According to his plea agreement, from 2007 to March 27, 2012, Jimenez purchased misbranded prescription and nonprescription drugs from conspirators who brought the drugs into the United States from El Salvador and elsewhere, and then sold the drugs from his residence. Jimenez is not a doctor licensed to administer prescription drugs, nor a pharmacist, and the drugs Jimenez sold had not been approved by the FDA.
Twice in 2012, Jimenez sold misbranded prescription and nonprescription drugs to an undercover law enforcement agent. According to court documents and testimony at today’s hearing, the undercover agent told Jimenez that she was pregnant and had a history of blood clots. Jimenez provided her medications such as Nomagest, even telling her it would help her blood clots. Nomagest cannot be legally sold in the U.S., can harm unborn babies, and in fact can increase the risk of blood clots. Pregnant woman and individuals with blood clots are warned not to take the active ingredient, Estradiol, found in Nomagest.
Agents executed a search warrant at Jimenez’s residence and seized more than $19,000 worth of prescription and nonprescription drugs, along with documents showing purchases and sales of over $30,000.
United States Attorney Rod J. Rosenstein commended the DEA, FDA - Office of Criminal Investigations and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Ann O’Brien, assigned from the Department of Justice’s Antitrust Division, who prosecuted the case.
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Husband and Wife Sentenced for 10-Year Long Tax Defiance SchemeRead the Press Release
Defendants Claimed Not To Be U.S. Citizens and To Be Exempt from Paying Taxes, Then Falsely Sought Refunds of Over $420,000
ATLANTA – Stephen Paul Thomas, 46, and Patricia Denese Anderson, 51, of Lawrenceville, Georgia, who waged a 10-year tax defiance scheme against the IRS, were sentenced today by United States District Judge Charles A. Pannell. Thomas was sentenced to serve 5 years in federal prison and Anderson was sentenced to 4 years, 3 months in federal prison. On October 16, 2012, after a six-day trial, Thomas and Anderson were convicted by a jury of conspiring to defraud the United States and making false claims upon the Internal Revenue Service.
“For over a decade, Thomas and Anderson waged a campaign of obstruction against the IRS, culminating in filing false tax returns claiming hundreds of thousands of dollars in false refunds,” said United States Attorney Sally Quillian Yates. “They cheated not only the government, but their fellow taxpayers. The sentence in this case demonstrates that those who defy the tax laws by obstructing the IRS and filing false and frivolous tax returns will be prosecuted and punished for their conduct.”“The term voluntary compliance means that each of us are responsible for filing a tax return when required and for paying the correct amount of tax,” stated Acting Special Agent in Charge, IRS Criminal Investigation, Veronica Hyman-Pillot. “That responsibility should not be taken lightly. The defendants chose to take extreme measures in order not to file and pay taxes and they are now convicted felons with a prison term to serve.”
Thomas was sentenced to 5 years in prison, to be followed by 3 years of supervised release, and fined $10,000. Anderson was sentenced to 4 years, 3 months in prison, to be followed by 3 years of supervised release, and fined $10,000.
According to United States Attorney Yates, the charges and other information presented in court: Thomas and Anderson, who were married and jointly owned and operated an outdoor yard furnishing store and general contracting business in Duluth, Georgia, stopped filing federal income tax returns in the 1990s. They then hired American Rights Litigators (ARL), an organization that sold and promoted tax defiance schemes, to send obstructive and harassing materials to the IRS on their behalf. The IRS repeatedly sent notices to Thomas and Anderson notifying them that they had to pay their federal income taxes and that they had to comply with the tax laws.
After the IRS shut down ARL as a result of fraudulent anti-tax actions, Thomas and Anderson continued to send a variety of obstructive, frivolous and harassing documents to IRS and Department of Treasury officials instead of paying their taxes. These documents included statements that they were not United States citizens but instead were “American citizens”; that they were not subject to the federal income tax laws; and that paying income tax was voluntary. Thomas and Anderson also established business bank accounts using fictitious tax identification numbers for the purpose of hiding the money inside the accounts from the IRS. They also instructed a financial institution as well as a bartering exchange company that their business operated solely in Belize, knowing that their business was located and did business throughout the state of Georgia.
Finally, in 2009 after a decade of not filing tax returns, Thomas and Anderson submitted two false tax returns claiming over $420,000 in fraudulent refunds from the IRS. That same year, Thomas and Anderson also submitted fictitious financial instruments to the federal government, including a document purporting to be a $100 billion private registered bond, and instructed the government to use this bogus bond to pay any of their debts to the government.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Thomas J. Krepp and Sally B. Molloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Honduran Citizen Pleads Guilty to Being Present in the United States IllegallyRead the Press Release
Oscar Naun Torres-Hernandez, 22, a citizen of Honduras, pled guilty today in United States District Court in Benton to charges that he was illegally present in the United States after having been previously removed by immigration officials, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment charging Torres-Hernandez was returned by a Federal Grand Jury on November 6, 2012, after he was taken into custody by an Illinois State Police trooper on October 15th at the direction of Immigration and Customs Enforcement agents following a routine traffic stop on Interstate 57 in Effingham County during which the trooper learned that Torres-Hernandez was an illegal alien.
Sentencing was set for April 25, 2013, at 10:30 a.m. at the United States District Courthouse in Benton. Torres-Hernandez faces up to 2 years in prison, a $250,000 fine, and 3 years of supervised release.
Torres-Hernandez has been held in federal custody since his arrest on October 15th and was returned to the custody of the United States Marshal to await sentencing.
The case was investigated by Immigration and Customs Enforcement, which is an agency of the Department of Homeland Security, and the Illinois State Police.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Honduran Charged with Illegally Re-entering U.S. After DeportationRead the Press Release
PITTSBURGH, Pa. - A citizen of Honduras has been indicted by a federal grand jury in Pittsburgh on charges of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The indictment, returned on Jan. 2, named Alex Omar Colindres-Ortiz, formerly from Choluteca, Honduras, as the sole defendant.
According to indictment, Colindres-Ortiz, an alien, was removed from the United States on September 3, 2010. Colindres-Ortiz was found in New Castle, Lawrence County, on Dec. 5, 2012, without having been given permission to re-enter the United States.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hartford Man Pleads Guilty to Federal Drug Distribution ChargesRead the Press Release
January 3, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ANDREW PARENTE, 76, of Hartford, pleaded guilty today before United States District Judge Robert N. Chatigny in Hartford to one count of conspiracy to possess with intent to distribute a Schedule II controlled substance, and one count of possession with intent to distribute and distribution of a Schedule II controlled substance.
According to court documents and statements made in court, in October and November 2011, PARENTE and Robert Gentile conspired to distribute and distributed Schedule II controlled substances, including oxycodone, in a form commonly known as OxyContin, and hydromorphone, in a form commonly known as Dilaudid.
Judge Chatigny has scheduled sentencing for March 22, 2013, at which time PARENTE faces a maximum term of imprisonment of 20 years on each count.
PARENTE has been released on a $50,000 bond since his arrest on February 10, 2012.
Gentile has been detained since his arrest on February 10, 2012. On November 14, 2012, he pleaded guilty to multiple drug and firearms offenses. He is scheduled to be sentenced on April 12.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Health and Human Services, Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Hannibal Man Sentenced to 21 Years in Prison for Illegally Possessing a Sawed-off ShotgunRead the Press Release
JEFFERSON CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Hannibal, Mo., man was sentenced in federal court today for illegally possessing a sawed-off shotgun.
David Lee Ardrey, 45, of Hannibal, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 21 years and 10 months in federal prison without parole.
On June 6, 2012, Ardrey was convicted of being a felon in possession of a firearm and of illegally possessing a sawed-off shotgun.
Ardrey was arrested on June 8, 2011, during a traffic stop in which he was the passenger in the vehicle. Ardrey provided law enforcement officers with false identification, including a driver’s license and Social Security card in the name of another person (who was deceased). Ardrey grabbed the arresting officer’s uniform and ripped his shirt, after which he was subdued and handcuffed. Ardrey refused to get into the patrol vehicle and had to be pulled into the vehicle by an officer in the back seat. While officers searched the vehicle in which Ardrey was riding, he tried to escape from the patrol vehicle by kicking out the window. Officers pushed him back into the vehicle, but when they opened the door he attempted to push past the officers. While officers held him on the ground and placed leg restraints on him, Ardrey continued kicking at the officers. One of the officers went to the hospital for treatment of possible broken fingers after Ardrey caught and held them in the handcuff chain during the struggle.
Law enforcement officers searched the vehicle and found a loaded, sawed-off Rossi .410 shotgun that belonged to Ardrey, as well as seven shotgun shells.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ardrey has two prior felony convictions for burglary and two prior felony convictions for assault, as well as prior felony convictions for armed criminal action, stealing and receiving stolen property.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Boone County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Centralia, Mo., Police Department, the Hallsville, Mo., Police Department and the Sturgeon, Mo., Police Department.Greenwich Man Sentenced to Federal Prison for Possessing Unregistered Machine GunsRead the Press Release
January 3, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that THOMAS BELLUCI, 51, of Greenwich, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for possessing unregistered machine guns. BELLUCI also was ordered to serve two months of home confinement immediately after his release from prison, perform 100 hours of community service and pay a $6,000 fine.
According to court documents and statements made in court, on August 22, 2011, Greenwich Police officers encountered BELLUCI at his residence on Cutler Road in Greenwich after a neighbor had reported that shots had been fired on BELLUCI’s property. BELLUCI, who was alone in the house, initially stated that he did not hear any gunshots and he allowed officers to enter his home. BELLUCI then showed officers only one side of the house, claimed that the living room encompassed the entire house and that there was no second floor to the house. After BELLUCI led the officers through a door, which he at first stated was to a closet but, in fact, led to a hallway that opened into other rooms, BELLUCI ran into a room and locked the door. Two officers then forced opened the door and spotted BELLUCI bent over several long gun cases that were on the floor.
When the officers asked BELLUCI if he had fired a weapon earlier, he admitted that he had fired a handgun out of his kitchen window. However, he would not tell the officers where the firearm was. The officers then attempted to restrain BELLUCI, but he resisted, struggled with one officer and was tased by the other. BELLUCI was placed into an ambulance and was taken to the hospital.
A subsequent search of BELLUCI’s home revealed more than 160 firearms, including 10 machine guns, at least eight of which were operational and fired multiple rounds with a single squeeze of the trigger. Officers seized the firearms, as well as thousands of rounds of ammunition and other accessories. None of the machine guns were registered in the National Firearms Registration and Transfer Record.
BELLUCI was arrested on federal charges on May 11, 2012, and was detained until his release on a $500,000 surety bond on July 30, 2012. On October 9, 2012, he pleaded guilty to one count of unlawful possession of a machine gun. He has been ordered to report to prison on February 14, 2013.
This matter was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenwich Police Department. The case was prosecuted by Assistant United States Attorney Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]GoDaddy.com Bowl and Pre-Bowl EventRead the Press Release
Kenyen Brown, U.S. Attorney for the Southern District of Alabama, announces that the United States Attorney’s Office for the Southern District of Alabama is collaborating with the GoDaddy.com Bowl, the athletic departments of Arkansas State University and Kent State University, Mt. Hebron Church Ministries as well as other local churches, Team Focus, Volunteers of America, the Mobile Chapter of 100 Black Men, and Mobile Community Action in order to use athletics as a means to reach at-risk youth between the ages of 10-15.
An “Enlarge Your Vision” meeting will be hosted by Mt. Hebron Church Ministries (the event will take place in the Bright Spot behind the main sanctuary) this evening from 6-8pm, where nearly 1000 area children will hear remarks from U.S. Attorney Kenyen Brown, Mobile County Juvenile Judge Edmond Naman, Mike Gottfried of Team Focus, formerly incarcerated football player Henry Tooten, and several of the current football players for Arkansas State University and Kent State University. U. S. Attorney Brown stated, “The purpose of the meeting is to stress the importance of character to the young people in attendance, to encourage them to stay on the right path and to inspire to them to set high goals of achievement.”
Following remarks, the young people will have the opportunity to meet with the players and other speakers. The meeting will culminate with the 1000 young people being broken down into smaller groups to discuss what they might have learned from the meeting with possible mentors.
After tonight’s meeting, the entire group of young people will reconvene again to attend this year’s GoDaddy.com Bowl on Sunday night and will be seated in the south end zone area. The GoDaddy.com Bowl has generously donated nearly 1000 tickets for young people and 150 tickets for chaperones to attend Sunday’s contest between Arkansas State University and Kent State University. In addition to attendance at the game, the GoDaddy.com Bowl has invited the “Enlarge Your Vision” group of young people to participate in tailgate festivities prior to the game in the Kidzone. Within the Kidzone the young people will have the opportunity to climb a rock wall, as well as other activities. The group will also be provided with hot dogs, hamburgers, soft drinks and a GoDaddy.com Bowl tee shirt at no cost.
Over fifteen churches will be participating in the events, with some coming as far away as Washington and Clarke Counties. A similar event will be held prior the Senior Bowl in late January. Additional Note: U.S. Attorney Brown, Judge Edmond Naman, Mike Gottfried, Henry Tooten, and Pastor Joe Johnson of Mt. Hebron Church Ministries will be available for interviews at 5:30pm at the Bright Spot of Mt. Hebron Church Ministries.
Former President of International Outdoor Advertising Company Sentenced in Manhattan Federal Court to Four Months in Prison for Orchestrating $19.75 Million Accounting Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TODD HANSEN, the former President of the United States division of an international outdoor advertising company (the “Company”), was sentenced today in Manhattan federal court to four months in prison, in connection with his participation in a five-year, $19.75 million accounting fraud scheme designed to make it appear that the Company was meeting certain performance targets so that he could receive higher salary increases and bonuses. HANSEN pled guilty in June 2012 to one count of conspiracy to commit wire fraud, and one substantive count of wire fraud. He was sentenced by U.S. District Judge Jed S. Rakoff.
According to the Complaint and the Indictment filed in Manhattan federal court:
From 2004 until 2009, HANSEN served as President of the Company, a wholly-owned subsidiary of a United Kingdom corporation, with its common stock listed on the London Stock Exchange. HANSEN, together with Finance Director, James Buckley, directed the Company’s controller (the “Controller”) to make fictitious accounting entries in the Company’s books and records in order to give the appearance that the Company was meeting its monthly performance targets. To create these inflated income figures, HANSEN directed the Controller to record higher monthly revenues from either false client billings or rebates on certain goods and services that the Company was purportedly receiving from some of its vendors.
The false accounting entries resulted in the preparation of financial statements that reflected artificially inflated monthly income amounts for the Company. HANSEN was thereby able to create the misimpression that the Company was meeting its projected financial performance goals. During this five-year period, the fraudulent entries HANSEN requested resulted in a total overstatement of the Company’s net income by approximately $19.75 million. As a result of meeting these fictitious performance goals, HANSEN was paid approximately $1.1 million in salaries and bonuses over the five-year period.
In addition to the accounting fraud scheme, during this same time period, HANSEN misused tens of thousands of dollars of Company funds to pay for expenses and fees that directly benefitted him, his family, and friends, and that were unrelated to the Company’s legitimate business.
In addition to the prison term, Judge Rakoff sentenced HANSEN, 49, of Bakersfield, California, to three years of supervised release. HANSEN was also ordered to pay $231,000 in restitution and forfeit $173,450.90.
James Buckley, 49, of Westwood, New Jersey, was sentenced by Judge Rakoff on October 16, 2012 to time served, followed by one year of supervised release, and ordered to pay $26,872.22 in restitution.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Christopher D. Frey and Nicole Friedlander are in charge of the prosecution.
Former Odessa Adult Bookstore Owner Sentenced to Federal PrisonRead the Press Release
Today in Midland, 68-year-old Jimmy Wayne Wright, former owner of B & L Bookstore in Odessa, was sentenced to 20 months in federal prison after pleading guilty to possession with intent to distribute Methylenedioxypyrovalerone, or more commonly referred to as “bath salts,” announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Wright be placed under supervised release for a period of three years after completing his prison term. Wright also agreed to forfeit $763,865.20 in cash and his business property to the Government.
In September 2012, Wright admitted that he had marketed “bath salts” under such false descriptive terms as “pipe cleaner,” “stain remover,” “plant food” and others for several months prior to March 2012. On March 6, 2012, DEA agents seized several containers of various types of “bath salts” that Wright had displayed for sale at his business, B & L Bookstore on North Mercury Avenue.
This investigation was conducted by agents with the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation. This matter was prosecuted by Assistant United States Attorneys William Tatum and Brandi Young.
Former La Villa Corrections Officer Sentenced to PrisonRead the Press Release
McALLEN, Texas - Jorge Luis Sandoval, 32, of Pharr, will soon be serving a federal prison sentence for smuggling two cellular telephones into the East Hidalgo Detention Center for an inmate, United States Attorney Kenneth Magidson announced today. Sandoval pleaded guilty to one count of bribery on July 3, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa, who accepted the guilty plea, handed Sandoval a 12-month and one-day prison term which will be followed by two years of supervised release. In handing down the sentence, Judge Hinojosa found that Sandoval was a “public official” under the law and as defined within the United States Sentencing Guidelines. The Judge noted that “by taking a bribe and facilitating the use of the phone” based on greed, Sandoval demonstrated “a total disrespect for the law.” He further noted that “one of the worst damages that comes from a situation like this,” when someone takes on the responsibilities that come with this job (correctional officer), is that “it gives the public the impression that everyone who takes on this job is willing to do the same” and “it hurts the reputation of those that work for the government and law enforcement.”
Sandoval pleaded guilty to the sole count of bribery, admitting to accepting a bribe while working as a corrections officer at the East Hildago Detention Center in La Villa under the authority of the U.S Marshals Service. Sandoval used his official position to enrich himself by accepting a cash payment from an individual acting on behalf of a federal inmate in exchange for smuggling a cellular telephone into the prison on two occasions.
Sandoval was allowed to self-surrender to the U.S. Marshals Service on January 28, 2013, to begin serving his sentence, pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charge in this case was conducted by the FBI and the U.S. Marshals Service. Assistant United States Attorney Casey N. MacDonald prosecuted the case. AUSA Linda Requenez handled the sentencing hearing today.
Former High-Ranking N.J. Department of Corrections Official Sentenced to 46 Months in Prison for ExtortionRead the Press Release
TRENTON, N.J. – Lydell B. Sherrer, a former deputy commissioner of the N.J. Department of Corrections (“NJDOC”), was sentenced today to 46 months in prison for attempting to obtain $10,000 from an employee in exchange for securing that person’s continued employment with the department or its private contractor, U.S. Attorney Paul J. Fishman announced.
Sherrer, 53, of Neptune, N.J., who previously served as deputy commissioner of the NJDOC and as assistant commissioner of its Division of Programs and Community Services, pleaded guilty before U.S. District Judge Joel A. Pisano to Count One of an Indictment charging him with the extortion of a cooperating witness identified in court filings as “Individual One.” Sherrer was previously charged in a 12-count Indictment with extortion and bribery for soliciting money from five separate employees or former employees of NJDOC between February 2010 and October 2010 in exchange for his official action and assistance. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Following Individual One’s layoff notice from the NJDOC in April 2010, Sherrer said he could secure Individual One’s continued employment with the NJDOC or with private entities that contracted with the NJDOC in exchange for $10,000. Sherrer admitted that on May 17, 2010, he accepted $5,000 in cash from Individual One as an installment of the agreed upon $10,000. Sherrer said he solicited and received $69,000 in bribes between 2006 and 2008 from the five individuals identified in the Indictment and from three additional people. Sherrer agreed to forfeit $9,000, which represented proceeds of his criminal activity, and to pay approximately $22,500 in restitution.
In addition to the prison term, Judge Pisano sentenced Sherrer to three years of supervised release and ordered him to pay $22,500 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez, for the investigation leading to today’s sentence. He also thanked the N.J. Department of Corrections Special Investigation Division for their cooperation and assistance throughout the investigation.The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division.
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Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, TrentonFormer Grand Rapids Area Financial Adviser Sentenced to 54 Months in Prison for Wire FraudRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Lawrence Maxwell McCoy of Bitely, Michigan was sentenced by U.S. District Judge Janet T. Neff to 54 months in prison for wire fraud. The U.S. Attorney’s Office filed a one-count Felony Information on September 7, 2012 charging McCoy with a scheme to defraud. McCoy pled guilty to the charge on September 20, 2012 pursuant to a plea agreement.McCoy sold mutual funds and insurance in and around Holland and Grand Rapids, doing business as Hallbrook Asset Management and Hallbrook Group, LLC. Under these auspices, McCoy provided legitimate investment advice and services, but also defrauded six of his clients, causing total losses of $708,267.37 between 1995 and 2009. To perpetrate his fraudulent scheme, McCoy fabricated an investment that he called “Marsico Private Ledger.” He represented to his clients that Marsico Private Ledger was an investment offered through Marsico Capital Management, LLC, a real mutual fund provider based in Colorado. McCoy then induced many of his existing clients, who otherwise had legitimate investments managed by McCoy, to invest in Marsico Private Ledger. After McCoy received his clients’ money under these fraudulent pretenses, he diverted it to his own use. To cover up the fraudulent scheme, McCoy fabricated investment return information and published it to his clients by manually entering the phony returns on a legitimate third-party internet reporting site dedicated to wealth management reporting. McCoy also sent e-mails to his clients to communicate the phony return information and to assure them that their investments in Marsico Private Ledger were safe. McCoy specifically targeted clients that he knew would not have an immediate need for their money. Through his scheme, McCoy stole clients’ nest eggs and money earmarked for college funds.
In handing down McCoy’s sentence, Judge Neff pointed out that McCoy’s behavior was “not aberrant” but, rather, “a thread in his history.” In 2009, McCoy was sentenced in 28th Circuit Court in Cadillac, Michigan to five years of probation for embezzling money from investments that he managed for a family member. Judge Neff added: “When people fall prey to this type of financial misconduct, it is really devastating.”
U.S. Attorney Miles stated: “Financial fraud often is a silent crime that can go undetected for months, if not years. When that happens, the impact on a victim’s nest egg is truly devastating. The United States Attorney’s Office for the Western District of Michigan is committed to pursuing and bringing to justice financial professionals who defraud their clients.”
In addition to his 54-month prison sentence, McCoy was also sentenced to two years of supervised release and was ordered to pay restitution in the amount of $690,267.37.
The case was prosecuted by Assistant U.S. Attorney Joel Fauson and was investigated by the Federal Bureau of Investigation, Grand Rapids Resident Agency..
END
Former Financial Services Broker Sentenced to Serve18 Months in Prison for Role in Conspiracies InvolvingInvestment Contracts for the Proceeds of Municipal BondsRead the Press Release
A former financial services broker was sentenced today in U.S. District Court for the Southern District of New York, for his participation in conspiracies related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced.
Adrian Scott-Jones, of Morriston, Fla., a former broker for Tradition N.A., was sentenced by District Court Judge Harold Baer Jr. for his role in the conspiracies. Scott-Jones was sentenced to serve 18 months in prison and to pay a $12,500 criminal fine.
“From soliciting intentionally losing bids for investment agreements to paying out kickbacks to manipulate the competitive bidding process, the conspirators went to great lengths to defraud municipalities across the country,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division's criminal enforcement program. “Today's sentence sends a clear message that the division will continue to hold executives accountable for their anticompetitive conduct.”
On Sept. 8, 2010, Scott-Jones pleaded guilty to participating in multiple conspiracies with executives of General Electric Co. (GE) affiliates, from as early as 1999 until 2006. According to the charges, GE and other financial institutions and insurance companies (providers), offered a type of contract, known as an investment agreement, to state, county and local governments and agencies throughout the United States. The public entities hired brokers like Scott-Jones and Tradition to conduct bidding for contracts to invest money from a variety of sources, primarily the proceeds of municipal bonds issued to raise money for, among other things, public projects. Scott-Jones also participated in a conspiracy with representatives of a second provider located in New York City.According to court documents, in each conspiracy, Scott-Jones gave co-conspirators information about the prices, price levels or conditions in competitors' bids, a practice known as a “last look,” which is explicitly prohibited by U.S. Treasury regulations. Scott-Jones also solicited and received intentionally losing bids for certain investment agreements and other municipal finance contracts. As a result of Scott-Jones’ role in corrupting the bidding process for investment agreements, he and his co-conspirators deprived the municipalities of competitive interest rates for the investment of tax-exempt bond proceeds used by municipalities for various public works projects, such as water pollution abatement projects and low-cost housing. The department said that the conspiracies cost municipalities around the country millions of dollars.
“Today's sentencing reaffirms the ongoing success of our efforts to weed out corruption in the municipal bond market,” said George Venizelos, Acting Director in Charge of the FBI in New York. “The FBI will continue to work closely with our partners from the Antitrust Division to protect the integrity of the competitive bidding process in public finance.”
“Individuals who manipulate the competitive bidding system to benefit themselves will be held accountable for their criminal activity,” said Richard Weber, Chief, Internal Revenue Service Criminal Investigation (IRS-CI). “Quite simply, Mr. Scott-Jones profited at the expense of the towns and cities that needed the money for important public works projects. IRS Criminal Investigation is committed to working with our law enforcement partners to uncover this kind of corruption and secure justice for American taxpayers.”
A total of 20 individuals have been charged as a result of the department's ongoing municipal bonds investigation, 19 of whom have been convicted at trial or pleaded guilty; one is currently awaiting trial. Additionally, one company has pleaded guilty.
The sentences announced today resulted from an ongoing investigation conducted by the Antitrust Division's New York Office, the FBI and IRS-CI. The division is coordinating its investigation with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.
Today's convictions are 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.
Anyone with information concerning bid rigging and related offenses in any financial markets should contact the Antitrust Division's New York Field Office at 212-335-8000, the FBI at 212-384-5000 or IRS-CI at 212-436-1761, or visit www.justice.gov/atr/contact/newcase.htm.Former Bookkeeper Pleads Guilty to Wire Fraud and Tax EvasionRead the Press Release
Oklahoma City, Oklahoma – CAROLYN DAWSON, of Oklahoma City, has pled guilty to using interstate wire communications to defraud her former employer, American Plant Products, and to evading federal payroll taxes, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Until November of 2011, Dawson worked as the bookkeeper for American Plant Products, an Oklahoma City wholesaler of greenhouse and garden supplies. Her duties included maintaining payroll, preparing payroll tax returns, and paying withheld taxes to the IRS. According to a criminal information filed on December 18, 2012, Dawson defrauded the business by using interstate wire communications to pay personal credit card expenses from a business bank account, without the knowledge of the business or its owners. The information also alleges that she treated these payments as business-related expenses to disguise her embezzlement. These payments took place from January of 2007 until November 25, 2011, when Dawson was terminated.
In a separate count, the information alleges that Dawson willfully evaded federal payroll taxes by failing to file a 2010 payroll tax return for the company, failing to make payroll withholding payments to the IRS, and altering the books and records of American Plant Products to conceal her failure to make withholding payments.
Today, Dawson pled guilty to both counts. In a plea agreement, she agreed to pay $1,194,656.15 in restitution to American Plant Products. She has also agreed to pay restitution to the Internal Revenue Service, including restitution for her failure to pay personal income taxes on the embezzled money. The plea agreement provides that the loss to the IRS is more than $200,000 and less than $1,000,000.
Dawson’s punishment for wire fraud could be as much as twenty years in prison, three years of supervised release, and a fine of $250,000. Her punishment for tax evasion could be as much as five years in prison, three years of supervised release, and an additional $250,000 fine. Sentencing will take place in approximately ninety days.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation and the Criminal Investigations Division of the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Scott E. Williams.
Reference is made to court filings for further information.
Former Bank Employee Sentenced for $540,000 Embezzlement, Tax FraudRead the Press Release
JEFFERSON CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a former employee of Jefferson Bank in Jefferson City, Mo., was sentenced in federal court today for embezzling more than $540,000 from the bank and another former employer as well as for tax fraud.
Kelley Lee Steiner, 52, of Jefferson City, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to one year and one day in federal prison without parole. The court also ordered Steiner to pay $664,495 in restitution.
Steiner, who pleaded guilty on Feb. 27, 2012, was employed by Jefferson Bank as vice president and secretary to the board of directors from June 14, 1999 to Nov. 12, 2008. Steiner served as personal executive assistant to former bank president Harold W. Westhues. By pleading guilty today, Steiner admitted that she embezzled a total of $487,199 from both the bank and from Westhues’ personal checking account. Steiner also admitted that she embezzled $54,000 while employed at Modern Business Systems. By failing to report the embezzled funds as income on her federal tax returns from 2005 to 2008, Steiner caused tax harm to the United States in the amount of $143,623.
Steiner had been given authority to write checks on Westhues’ personal account and sign his name to those checks in order to pay his personal expenses. During an audit of Westhues’ personal checking account, the bank discovered that Steiner had, without authority, diverted funds totaling approximately $378,000 for her personal benefit, which included writing checks to herself and paying her personal credit card bills and her children’s college expenses.
Steiner also prepared paperwork for the bank to reimburse Westhues for work-related expenses incurred by him which were typically charged to his credit card. Investigation determined that Steiner had diverted approximately $19,070 in valid reimbursement funds from Westhues, and used them to pay on her personal credit cards. Steiner also submitted false documentation to the bank for work-related expenses purportedly incurred by Westhues, which were then reimbursed by the bank, including the re-submission of valid credit card statements which had already been previously reimbursed by the bank. It was discovered that an additional $29,947 had been diverted by Steiner to pay on her personal credit card accounts.
Steiner was responsible for paying the board of directors for participating in board meetings, audit meetings, and other special bank meetings. Board members were paid $400 in cash for each meeting they attended. During a review of board fees paid by the bank in 2008, a bank officer identified approximately $60,400 in cash embezzled by Steiner that had purportedly been paid as board fees.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, IRS-Criminal Investigation, the Federal Deposit Insurance Corporation and the Missouri Division of Finance.
Florida-Based American Sleep Medicine to Pay $15.3 Million<br /> for Improperly Billing Medicare and Other Federal Healthcare ProgramsRead the Press Release
Florida-based American Sleep Medicine LLC has agreed to pay $15,301,341 to resolve allegations that it billed Medicare, TRICARE – the health care program for Uniformed Service members, retirees and their families worldwide – and the Railroad Retirement Medicare Program for sleep diagnostic services that were not eligible for payment, the Justice Department announced today.
American Sleep, headquartered in Jacksonville, Fla., owns and operates 19 diagnostic sleep testing centers throughout the United States, including in Alabama, California, Delaware, Florida, Illinois, Indiana, Kansas, Kentucky, Maryland, Missouri, New Jersey, Tennessee, Texas and Virginia. The company’s primary business is to provide testing for patients suffering from sleep disorders such as obstructive sleep apnea. The test results are used by doctors to determine the most appropriate course of treatment for patients. The most common tool used to diagnose sleep disorders, particularly sleep apnea, is a procedure called polysomnographic diagnostic sleep testing. Under federal program requirements for the reimbursement of claims submitted for sleep disorder testing, initial sleep studies must be conducted by technicians who are licensed or certified by a state or national credentialing body as sleep test technicians.
The United States contend that Medicare and TRICARE claims submitted by American Sleep during this period were false because the diagnostic testing services were performed by technicians who lacked the required credentials or certifications, when it knew this violated the law. American Sleep submitted false claims to Medicare and TRICARE between Jan. 1, 2004, and Dec. 31, 2011, according to the United States’ allegations.
“Medicare patients and military families deserve to be treated by appropriately credentialed professionals when seeking medical care,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “When companies providing those services seek to skirt the rules, there will be a steep price to pay.”
“Pursuing health care fraud is a priority of my office and the Department of Justice. We will continue to work with the Department of Health and Human Services and the public to ensure that fraudulent claims are investigated and those responsible are required to pay,” stated David J. Hale, U.S. Attorney for the Western District of Kentucky. “Medical providers who overbill Medicare defraud the taxpayers and drive up the cost of health care for us all. Recovering taxpayer dollars lost to fraud helps keep strong those critical public health care programs so many people depend on.”
“Patients seeking care from licensed professionals deserve to receive exactly what was represented, and the taxpayer-funded Medicare program expects no less,” said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General Region IV, which includes Kentucky. “The company has agreed to Federal monitoring and reporting requirements designed to avoid such problems in the future.”
The allegations covered by today’s settlement were raised in a lawsuit filed against American Sleep under the qui tam, or whistleblower, provisions of the False Claims Act. United States ex rel. Daniel Purnell v. American Sleep Medicine LLC, no. 3:07-cv-12-S (W.D. Ky.). The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. Relator Daniel Purnell will receive $2,601,228 as part of today’s settlement.
In addition to the $15.3 million payment, American Sleep entered into a five-year Corporate Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services. The agreement requires enhanced accountability and wide-ranging monitoring activities conducted by both internal and independent external reviewers.
Principal Deputy Assistant Attorney General Delery thanked the Office of the Inspector General for the Department of Health and Human Services, the Medicare Railroad Retirement Program, the Defense Criminal Investigative Service, the FBI, the U.S. Attorney’s Office for the Western District of Kentucky and the Commercial Litigation Branch for the collaboration that resulted in today’s settlement. The claims settled by this agreement are allegations only, and there has been no determination of liability.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.9 billion.
Florida Pharmacist and Web Site Operator Sentenced for Illegally Distributing Prescription DrugsRead the Press Release
PHILADELPHIA - Wayne White, 52, of Miami, Florida, was sentenced today to 108 months in prison for conspiracy to distribute controlled and non-controlled prescription drugs, the distribution of controlled substances, and conspiracy to commit international money laundering, arising from the distribution of prescription drugs without valid prescriptions. Co-defendant Anthony Spence, 46, of Miramar, Florida, was sentenced to 70 months in prison for conspiracy to distribute controlled substances. White and Spence were convicted at trial in October 2012.
White was a pharmacist licensed in the State of Florida and the operator of Superior Drugs, which was located in Miami, Florida. White filled orders for prescription drugs – primarily, the controlled diet drug phentermine – for numerous individuals and entities who operated websites that which sold these drugs over the Internet. Many of White’s online customers were located in the Eastern District of Pennsylvania. White began filling orders for Internet pharmacies early as 2002. He was charged with illegally distributing prescription drugs up to May 2010.
During the period charged in the indictment, co-defendant Anthony Spence owned and operated the websites PricebusterRX.com and PricebustersUSA.com, which sold prescription drugs – the majority of which were controlled substances – over the Internet. Most of the customers of the websites operated by Spence were only required to complete an online questionnaire, or answer questions over the telephone; none were examined by the physicians who issued their prescriptions. Spence paid physicians to review the customers’ responses to the online or telephone questionnaires and to issue prescriptions based solely upon the customers’ responses. In some instances, customers sent Spence reports of physical examinations allegedly conducted by other healthcare professionals. The doctors who approved the prescriptions never communicated with the customers or the healthcare professionals who allegedly examined the customers. Spence paid Superior Drugs, which was operated by defendant Wayne White, to fill these invalid prescriptions and to ship them to his customers.
Both defendants were also convicted of conspiracy to introduce misbranded drugs into interstate commerce, which applies to the defendants’ distribution of non-controlled prescription drugs, such as carisoprodol, which is commonly sold under the trade name of Soma and is now a controlled substance, and tramadol, which is commonly sold under the trade name of Ultram. Both of these drugs are addictive and frequently abused.
In May 2007, White was sued by the family of a customer who had an online phentermine order filled by Superior Drugs. The customer died of a phentermine overdose; a bottle of phentermine tablets from Superior Drugs was found in her home. The deceased customer resided in Texas; the doctor who wrote the prescription resided in Puerto Rico.
In addition to the prison term, U.S. District Court Judge Juan R. Sànchez ordered White to forfeit $10,254,398.49 and pay a fine of $25,000, and ordered Spence to forfeit $4,912,148.10 and pay a fine of $10,000.
Co-defendant Michael Gibson, who pled guilty before trial, was a physician licensed in the State of Georgia who issued invalid prescriptions for prescription drugs for customers whom he neither saw, spoke to, or examined. He began working for Spence in 2008, after the doctor whom Spence had previously hired was investigated, and eventually prosecuted, for writing invalid prescriptions and tax evasion. Gibson began working for co-defendant Carleta Carolina in 2009. The sentencing hearing for Gibson is scheduled for February 8, 2013 before Judge Sànchez.
Co-defendant Carleta Carolina, who is also charged with illegally operating Internet websites to sell controlled and prescription drugs and hiring White to fill and ship her orders, is a fugitive.
The case was investigated by the Diversion and Enforcement Divisions of the Drug Enforcement Administration, Internal Revenue Service Criminal Investigations, the Food and Drug Administration’s Office of Criminal Investigations, the United States Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Federal Bureau of Investigation’s New York Division. It is being prosecuted by Assistant United States Attorneys Frank R. Costello, Jr. and Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Judge Sentences Former Minister to 25 Years in Prison for Engaging in Illicit Sexual Contact in A Foreign PlaceRead the Press Release
The Gaston County Man Abused Minors While On Mission Trips In Haiti
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced a former minister to 25 years in prison today for engaging in illicit sexual conduct while on mission trips in Haiti, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina and Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas.
Larry Michael Bollinger, 68, of Gastonia, N.C., was also ordered to serve a lifetime under court supervision following his prison term and to register as a sex offender. Bollinger pleaded guilty in January 2013 to two counts of engaging in illicit sexual conduct in a foreign place.
According to filed court documents and today’s sentencing hearing, Bollinger was a former minister who performed missionary work in Haiti. Court records show that Bollinger travelled regularly to Haiti because of his involvement with the Lazarus Project, a charity that supports two charitable organizations in the country, the Hope House and The Village of Hope School. According to court records and court proceedings, from in or about August 2009 to October 2009, Bollinger sexually molested four Haitian females, between the ages of 11 and 16. Court records indicate that one of the victims said that Bollinger offered to pay her food and money in exchange for sexual acts.
“Bollinger is a sexual predator who used his missionary work as a cover to hide the heinous sexual abuse he perpetrated on the innocent children of an impoverished country. Prosecutors and law enforcement worked tirelessly to bring this monster to justice, and even though today’s sentence cannot undo the harm Bollinger inflicted upon his young victims, it is a clear message that our justice system will protect children beyond our borders,” said U.S. Attorney Tompkins.
“The defendant betrayed the trust placed in him by his congregation, his charity and, most importantly, by the children he was supposedly helping in Haiti,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta, who oversees Georgia and the Carolinas. “For the damage he has caused in these young lives, the defendant has earned every minute of this sentence. HSI special agents will continue to stand strong against child predators who prey upon the innocent, no matter where those children might be found.”
Judge Conrad called Bollinger’s crimes “heinous” before handing down the 25 year prison term following a daylong sentencing hearing. The final restitution amount to Bollinger’s victims will be determined by the Court within the next 90 days.
Bollinger has been in federal custody since he was charged in May 2012. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was conducted by ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Michael W. Grant of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
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 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.
Federal Firearms Charges Filed Against Four Mahoning Valley MenRead the Press Release
A grand jury returned indictments charging four Mahoning Valley residents with violating federal firearms and ammunition statutes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“We will continue to go after those who are forbidden by law from carrying firearms or ammunition, but do so anyway,” Dettelbach said.
Those charged in the unrelated indictments are:
Kevin L. Washington, age 26, of Boardman, Ohio, who was charged with being a felon in possession of a firearm and ammunition and possession with the intent to distribute heroin.
The indictment charges that on or about September 21, 2012, Washington possessed a Ceska Zbrojovka,model 75 SP-01, 9mm pistol, serial number A733206 and ammunition, despite having previously been convicted of aggravated robbery and felonious assault in the Common Pleas Court of Franklin County, Ohio.
The indictment further charges that on or about September 21, 2012, Washington possessed with the intent to distribute approximately 26 grams of heroin.
Antonio S. Smith, age 30, of Warren, Ohio, was charged with being a felon in possession of ammunition.
The indictment charges that on or about November 4, 2012, Smith possessed six rounds of .45 caliber CCI ammunition, despite previous convictions for failure to comply with order or signal of police officer, burglary and aggravated assault, in the Common Pleas Court of Trumbull County, Ohio.Anthony J. Schaffer, age 24, of Canfield, Ohio, was charged with being a felon in possession of a firearm and ammunition.
Count 1 of the indictment charges that on or about June 26, 2012, Schaffer possessed one round of Hornady .38 caliber ammunition; five rounds of Remington .38 caliber ammunition; 16 rounds of Remington .380 caliber ammunition; two rounds of Winchester .380 caliber ammunition; 17 rounds of Wolf 9mm ammunition and 30 rounds of CCI .22 caliber ammunition. The indictment further charges in Count 2 that on or about December 11, 2012, Schaffer possessed a Smith & Wesson, model SW40V, .40 caliber pistol, with an obliterated serial number, and 14 rounds of .40 caliber ammunition, after he had been previously convicted of burglary in the Common Pleas Court of Trumbull County, Ohio, and complicity to robbery in the Common Pleas Court of Mahoning County, Ohio.
James L. Mosley, age 32, of Youngstown, Ohio, was charged with being a felon in possession of a firearm and ammunition.
The indictment charges that on or about October 23, 2012, Mosley possessed a Harrington & Richardson, model 999, .22 caliber revolver, and ammunition, after he had been previously convicted of trafficking in crack cocaine and possession of cocaine in the Common Pleas Court of Mahoning County, Ohio.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases are being prosecuted by Assistant United States Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office, the Warren Police Department, the Mahoning Valley Law Enforcement Task Force, the Boardman Police Department and the Ohio Adult Parole Authority.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Authorities Seek Help Identifying Two in Child Sexual Exploitation Case with Photos Likely Taken in Los Angeles AreaRead the Press Release
LOS ANGELES – Seeking leads in an unsolved child sexual exploitation case, federal authorities today announced the filing of a federal criminal complaint against two individuals – known only as “John Doe” and “Jane Doe” – who are charged with producing child pornography.
In relation to the filing of the case against the unidentified man and woman, authorities today released photographs connected to the investigation, which has determined that the child pornography images were likely produced in the Los Angeles area. Authorities hope the photos will prompt members of the public to provide information that will lead to arrests in this case.
The criminal complaint, which was filed Monday, involves a widely circulated series of child pornography images which authorities believe were taken about 11 years ago in the San Fernando Valley. Despite their investigative efforts, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) have been unable to determine the identities of the defendants. While the girl being sexually abused in the images is now likely an adult, authorities continue to pursue the case for several reasons, including bringing the defendants to justice and preventing the abuse of additional victims.
“We need the public’s help in identifying the man and woman responsible for molesting this young girl, whose victimization has continued with the trading of these images by those who collect child pornography,” said United States Attorney André Birotte Jr. “The Justice Department is deeply committed to protecting all of our children by investigating and prosecuting these types of child exploitation crimes.”
The pictures in this case show a male and female adult sexually molesting a girl who appears to be about 13. Although the male’s face has been purposely obscured, the female’s face can be seen in a number of the images. “John Doe” is a 40- to 50-year-old white male, and “Jane Doe” is a 35- to 45-year-old white female. Both defendants would now be approximately 11 years older. The female has several tattoos, including a black tattoo on her right hip resembling a butterfly, a tattoo on her right shoulder blade depicting the outline of a curled up cat, a tattoo with words across the top of her left wrist and a tattoo on the upper portion of her left breast.
“The images in this series have been identified in connection with more than 275 child pornography investigations across the country,” said Claude Arnold, Special Agent in Charge for HSI Los Angeles. “The reality is, every time a photo or a video of an innocent child being sexually exploited is viewed, that victim is violated again. That is why we owe it to all of the juvenile victims in these kinds of cases to work tirelessly to seek answers and, ultimately, justice. Those who produce and trade child pornography over the Internet believe they’re protected by the anonymity of cyberspace. With the public’s help, we’re determined to prove them wrong.”
Based upon forensic analysis conducted by the National Center for Missing & Exploited Children (NCMEC), investigators believe that the images were produced in the Los Angeles area, specifically in the San Fernando Valley. So far, HSI special agents in Los Angeles have interviewed dozens of individuals seeking further leads in the case, but they have yet to identify either the adults or the victim in the photographs.
The child pornography images in this case were first discovered by HSI special agents in Chicago in 2007. The material was submitted to the Child Victim Identification Program operated by NCMEC, which determined the victim had not yet been identified and was not linked with other known child pornography images.
Anyone with information or tips that can assist in this investigation is encouraged to call 1-866-DHS-2ICE or visit http://www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously. Incidents involving suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children through its toll-free 24-hour hotline, 1-800-THE-LOST (1-800-843-5678).
The announcement of the case against John and Jane Doe was made in relation to HSI’s Operation Sunflower, a recently concluded enforcement action aimed at rescuing victims and targeting individuals who own, trade and produce child pornography. In the Los Angeles area, HSI identified several children who had been subjected to ongoing sexual abuse, and those allegedly responsible are now being prosecuted by the Orange County District Attorney’s Office.
Images depicting John Doe and Jane Doe were filed with the criminal complaint earlier this week. Those images and the affidavit in support of the criminal complaint are available for download at: https://www.yousendit.com/dl/UW15Q3R6TStubVdVQU1UQw.
ICE has posted “wanted” posters and selected images on its website – www.ice.gov – and at: http://www.dvidshub.net/unit/ICE.
Media may also request the photos via email from the Public Affairs Office of the United States Attorney’s Office.
Release No. 13-001
Eldridge Man Arrested for Production of Child PornographyRead the Press Release
DAVENPORT, IA – On January 2, 2013, James Edward Hall was arrested on a federal criminal complaint for producing child pornography involving a juvenile male victim. Hall had an initial appearance before United States District Judge John A. Jarvey shortly after his arrest. A preliminary hearing and a detention hearing are scheduled in Hall’s case for Friday, January 4, at 2:30 p.m.
Production of child pornography is punishable by at least 15 years imprisonment up to a maximum of 30 years imprisonment, a $250,000 fine, a minimum of 5 years supervised release up to a maximum term of supervised release of life, and a $100 special assessment to be paid to the crime victims assistance fund.
As in any criminal case, a criminal complaint is merely an accusation, and a defendant is presumed innocent unless and until proven guilty.
(Download Press Release )
Duquesne Man Charged in Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH, Pa. - A resident of Duquesne, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Jan. 2, named Shane Brooks, 26, as the sole defendant.
According to the indictment presented to the court, from December 2010 to January 2012, Brooks conspired with others to distribute and possess with intent to distribute one kilogram or more of heroin.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Columbia Man Sentenced for Possessing Child PornRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for possessing child pornography.
Norman Leroy Troxel, 46, of Columbia, was sentenced by U.S Chief District Judge Fernando J. Gaitan to six years and six months in federal prison without parole.
On Jan. 18, 2012, Troxel pleaded guilty to possessing child pornography. Troxel admitted that he possessed child pornography from Dec. 19, 2009, to June 17, 2010.
A man who was performing repairs on Troxel’s computer discovered 50-100 videos of suspected child pornography while he was working on the laptop. When law enforcement officers examined the computer, they identified 31 of 79 videos of children as child pornography and many of the 192 photographs of children as child erotica. When officers searched Troxel’s residence, they found a Sony camcorder and an 8mm tape that had been created by recording from his television as it displayed images and videos of children being sexually molested. The videotape contained an hour and 30 minutes of images and videos of children as young as three years of age being sexually molested.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Boone County Sheriff’s Department Cyber Crimes Task Force and the FBI.
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."Columbia Man Charged with Distributing Heroin to a Minor who may have Died from OverdoseRead the Press Release
May 17, 2014JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was charged in federal court today with distributing heroin to a 16-year-old minor who died of a suspected heroin overdose.
Jon Patrick Washington, also known as “Doom,” 27, of Columbia, was charged in a federal criminal complaint filed in the U.S. District Court in Jefferson City, Mo. A warrant has been issued for the arrest of Washington, who remains at large.
Today’s complaint alleges that Washington distributed heroin to a minor on April 2, 2014.
According to an affidavit filed in support of the criminal complaint, Columbia police officers responded to a suspected heroin overdose death at the Providence Suites, 1718 N. Providence Rd., in Columbia on April 3, 2014. The victim was a 16-year-old female.
A confidential informant later reported that the heroin had been supplied by Washington and another person. Washington was located and brought to the Columbia police department for questioning.
The Boone County Medical Examiner has not released an official cause of death.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.Colorado Man Pleads Guilty to Conspiracy to Defraud the IRS out of $1.8 Million DollarsRead the Press Release
Thomas William Quintin, 65, formerly of Denver, pleaded guilty to one count of conspiracy to defraud the United States with respect to claims, and one count of misuse of a Social Security number (SSN), before U.S. District Court Judge R. Brooke Jackson, the U.S. Department of Justice and Internal Revenue Service (IRS) announced. Quintin is scheduled to be sentenced by Judge Jackson on April 2, 2013.
Quintin and a co-conspirator were indicted by a federal grand jury in Denver on Feb. 8, 2012. According to the stipulated facts contained in the plea agreement, starting in July 2009, Quintin participated in a conspiracy to submit to the IRS thousands of false federal individual income tax returns claiming a total of $1,834,011 in refunds in the names of deceased individuals. As part of the scheme, the conspirators established, controlled, and operated a Colorado entity known as Total Tax Services and/or Total Tax and Accounting (TTS), which maintained an office location in Englewood, Colo. They hired other individuals to work at TTS, which they used during the period of July 2009 through October 2009 to prepare and file the false tax returns.
According to court records, Quintin and his coconspirator obtained from an online database the names, dates of birth, SSNs and other identifying information of deceased individuals which they used to prepare and file tax returns in their names. They hired at least one individual whose job was to create email accounts for those deceased individuals; establishing email accounts in the names of the deceased individuals was necessary in order to file the tax returns on-line. They also obtained employer identification numbers (EINs) for various businesses, which they used to claim falsely on tax returns that the deceased individuals had worked at those businesses during the year 2008, earned income, and had taxes withheld from that income; all to allow Quintin and his coconspirator to claim false refunds based on that false income tax withholding.
“The investigation and prosecution of those who commit stolen identity refund fraud is a top priority of the Justice Department,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The theft of deceased persons’ identities to steal money from the Treasury victimizes all honest taxpayers, and adds to the burdens of grieving family members.”
“ Identity theft creates a significant hardship for many American families, and robs our Nation of taxpayer dollars,” stated Richard Weber, Chief, IRS Criminal Investigation. IRS remains vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and have a blatant disregard for the victims of their schemes.”
Quintin faces a maximum potential sentence of 10 years in federal prison on the conspiracy charge, and five years on the misuse of a SSN charge. On both charges, he faces a fine of up to $250,000.
This case was investigated by IRS-Criminal Investigation, and is being prosecuted by Tax Division Trial Attorney John Scully with the assistance of the U.S. Attorney’s Office for the District of Colorado.
Clarence “Killer” Broady Sentenced to 372 Months for Drug Conspiracy, Violent CrimesRead the Press Release
Memphis, TN – Clarence Broady, a.k.a. “Killer,” 39, of Memphis, TN was sentenced today by U.S. District Judge Samuel H. Mays, Jr. to 372 months in prison for his role in the Craig Petties Drug Trafficking Organization (DTO), announced U.S. Attorney Edward L. Stanton III and Resident Agent-in-Charge of the Drug Enforcement Administration’s Memphis office Brian Chambers.
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On November 22, 2011, Broady pleaded guilty to one count of RICO conspiracy; four counts of violent crime in aid of racketeering activity for his role in the kidnapping of Marcus Turner and the murders of Mario Stewart, Latrell Small and Kalonji Griffen; two counts of conspiracy to commit murder for hire for his role in the murders of Mario Stewart and Latrell Small; and conspiracy to possess with intent to distribute more than five kilograms of cocaine.
As outlined in the indictment, Broady was a member of a criminal racketeering enterprise, the Petties DTO, whose members conspired with cocaine traffickers in Mexico, Texas, Mississippi, North Carolina, Georgia, Tennessee, and elsewhere. As part of the conspiracy, cocaine was prepared, packaged and/or stored, prior to distribution to buyers in “stash houses.” The defendant and the co-conspirators used these “stash houses” to avoid detection by law enforcement authorities. It was further part of the conspiracy that the defendants and their co-conspirators sorted, counted, packaged, and stored large amounts of cash derived from the sale of controlled substances in various co-conspirators’ premises in the Western District of Tennessee. The co-conspirators delivered large amounts of currency derived from the sale of cocaine from the Western District of Tennessee and elsewhere to Texas and Mexico. In order to facilitate continued drug trafficking and in order to prevent others from cooperating with law enforcement authorities, it was further part of the conspiracy that the defendant and the co-conspirators did kill other people. Over thirty people have been charged and convicted as part of this investigation.
In addition to the prison sentence, Mays also ordered Broady to serve five years of supervised release and ordered him to pay $33,000 in restitution. There is no parole in the federal prison system.
The case was investigated by the Drug Enforcement Administration, the United States Marshals Service, the Memphis Police Department, the Shelby County Sheriff’s Department and the Olive Branch Police Department. The case is being prosecuted by Assistant United States Attorney David Pritchard on behalf of the government.Child Porn Charges Filed Against Philadelphia ManRead the Press Release
Wei Qin, 23, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of transportation of child pornography and one count of possession of child pornography, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 13, 2012, Qin, an alien, and native and citizen of China, transported images of minors engaging in sexually explicit conduct, and that on or about February 7, 2013, Qin possessed more than 600 images of child pornography.
If convicted the defendant faces a maximum possible sentence of 30 years.
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.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Child Counselor Sentenced to 30 Years in Prison for Medicaid Fraud and ArsonRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday evening, United States District Judge James C. Fox sentenced MICHAEL SHAWN BROWN, 47, of Selma, to 30 years in prison, followed by a 3 year term of supervised release, and restitution totaling $345,302, on charges of Wire Fraud and Aiding and Abetting in violation of Title 18, United States Code, Section 1343, and Arson to Commit a Federal Offense, in violation of Title 18, United States Code, Section 844(h). United States Attorney Walker is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division.
Pursuant to BROWN’s plea of guilty to counts 20 and 24 of the Indictment, BROWN, was a Licensed Professional Counselor employed at the Chadbourne Elementary School, in Chadbourne, North Carolina, while operating a separate counseling business allegedly providing “free” teacher-supervised tutoring services, snacks, transportation services, and youth activities and games to lower income individuals. As part of the process for registering each new participant at BROWN’s separate business, BROWN required his employees to obtain a copy of the participant’s Medicaid card. After the initial meeting during which the Medicaid participants gave over their Medicaid card, however, some participants had no further contact with BROWN. BROWN billed Medicaid as though he had performed “individual psychotherapy” or “group” behavioral health counseling and therapy sessions on the children for as long as two hours on a single day. BROWN pled guilty to wire fraud in connection with a fraudulent billing transmission that occurred on April 13, 2011.
The evidence established that on April 14, 2011, investigators requested access to BROWN’s counseling records. BROWN initially refused, but agreed to meet with investigators at his business on April 18, 2011. The business burned on the night before the meeting. During an interview, BROWN told investigators that the last time he was in his business was at 2:30 pm on the afternoon before the fire. The evidence also established that, BROWN had a relative drive him to the business on the night that the business burned. As a result of the fire investigators were unable to examine whatever records, if any, were located in the business. BROWN’s guilty plea to arson was in aid of the federal felony of obstruction of justice.
As a part of the sentence, BROWN was ordered to make payment of $257,802 in restitution to the North Carolina Fund For Medical Assistance, and $87,500 to the owner of the building that BROWN burned in connection with the offense.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the North Carolina State Bureau of Investigation; the Medicaid Investigation Division of the North Carolina Attorney General’s Office; and the Columbus County Sheriff’s Office. Assistant United States Attorney William Gilmore and Special Assistant United States Attorney Erica Bing represented the government. Ms. Bing is a prosecutor with the North Carolina Department of Justice, Medicaid Investigation Division. Attorney General Roy Cooper has assigned her to the United States Attorney’s Office to prosecute federal health care fraud criminal matters.
Charges Allege Philadelphia Pharmacist Filled Forged Prescriptions and Laundered the ProfitsRead the Press Release
PHILADELPHIA – An information was unsealed today charging Bevis Vanterpool, 35, of Philadelphia, with conspiring to distribute oxycodone, a Schedule II narcotic controlled substance, and money laundering, in violation of federal drug and money laundering laws, announced United States Attorney Zane David Memeger. Vanterpool is a pharmacist who owned and operated Tracemark Pharmacy at 4839 North Broad Street in Philadelphia. According to the charges, from May 2010 until December 19, 2011, Vanterpool accepted and filled nearly 5,000 fraudulent prescriptions for at least 447,761 mg. of oxycodone, when he knew that the prescriptions were forged and fraudulent, as they had not been written by physicians. It is further alleged that from May 2010 until December 19, 2011, Vanterpool laundered proceeds of this illegal activity totaling at least $1,180,000.
If convicted, Vanterpool faces a maximum possible sentence of 40 years in prison, 3 years of supervised release up to a lifetime of supervised release, a fine of up to $1.25 million, and a $200 special assessment, along with forfeiture of money and property totaling $822,428.58 in drug proceeds and $1,180,000 as the proceeds of money laundering.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration Diversion Unit, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cedar Rapids Man Sentenced for Federal Firearms OffensesRead the Press Release
Jesse Raymond Akers, 20, of Cedar Rapids, Iowa, was sentenced today to serve 148 months’ in federal prison for possessing firearms as an unlawful drug user, and for possessing stolen firearms. Akers had pled guilty to both offenses on August 17, 2012.
On June 20, 2010, Curtis Grandon, James Porchia Frazier, Sakariya Muhidin, and Jesse Akers burglarized a residence in Marion, Iowa, and stole several items, including seventeen firearms. Only three of the guns were recovered after the burglary. One gun was recovered after being used in a shooting in Michigan. Two guns were recovered in a residence in Marion, Iowa. One of the guns that has not yet been recovered is a SKS semi-automatic assault rifle. Frazier, Muhidin and Grandon have previously pleaded guilty and been sentenced to prison on federal charges related to the theft of the guns.
Akers was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. The sentence was ordered to be served consecutive to a five-year prison sentence Akers is now serving in the State of Iowa for committing several burglaries and aggravated theft in Linn County and Jones County, Iowa. In addition to being sentenced to serve 148 months’ in federal prison, Akers was ordered to pay a special assessment of $200 and to serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Judge Reade noted that she increased Akers’ sentence due to a variety of factors including Akers’ dangerousness to the community; likelihood to re-offend; his extensive criminal record and his history of substance abuse. The case was prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Marion, Iowa, Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 11-00164 LRR.
Canton Man Sentenced to 27 Years in Prison for Producing Child PornographyRead the Press Release
A Canton man was sentenced to more than 27 years in prison for producing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Ortiz, age 24, of Canton, Ohio, was sentenced to 327 months in prison by U.S. District Judge Christopher Boyko.
From on or about December 1, 2010, through on or about October 1, 2011, Ortiz knowingly permitted a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate or foreign commerce, according to court documents.
This case was prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Department of Homeland Security, Homeland Security Investigations
Bonner Pleads Guilty to Identity Theft and Using Debit Cards to Steal Income Tax RefundsRead the Press Release
Montgomery, Alabama - Robert Bonner, 29, of Montgomery, Alabama, pled guilty to charges stemming from his part in a fraudulent income tax refund scheme, announced U.S. Attorney George L. Beck, Jr. Specifically, Bonner pled guilty to one count of identity theft and one count of access device fraud.
This fraudulent tax ring stole people’s names, dates of birth and social security numbers and used those stolen identities to file fraudulent tax returns. They then received the tax refunds from the IRS on pre-paid debit cards and cashed the money out on the pre-paid debit cards for their own use. Bonner’s role in this scam was to cash out the pre-paid debit cards that had the fraudulent tax returns on them.
“Identity theft is a rising problem in this district and across the country,” stated U.S. Attorney Beck. “Businesses that store the personal information of employees, clients, or customers must protect it. We must train and carefully screen those who have access to personal names, addresses and social security numbers. Much identity theft can be prevented if businesses, agencies and individuals act together.”
“Identity theft is an ongoing problem in the United States and the Montgomery, Alabama area is one of the top cities where the stolen identities are being used to file fraudulent tax returns”, stated Resident Agent in Charge Clayton Slay, U.S. Secret Service in Montgomery, Alabama. Slay continued by saying “This was a collaborative effort between the Montgomery Police Department, local bank investigators, the U.S. Attorney’s Office, Internal Revenue Criminal Investigative Division and the U.S. Secret Service dating back to October 2010. The stolen identities in this case were obtained from local Montgomery high schools and from hospitals in Montgomery and Troy, Alabama, and the Atlanta, Georgia, area through collusive employees, security guards and U.S. Postal Delivery Personnel. The stolen identities were then utilized to file fraudulent tax returns which were distributed through U.S. Treasury checks or through pre-paid debit cards. These funds were then converted to cash or used to make lavish purchases by the defendants in this case. With the 2013 tax filing season approaching, the U.S. Secret Service, along with the Internal Revenue Criminal Investigative Division, will remain proactive in the investigation of individuals and groups associated with these types of crimes.”
“IRS, Criminal Investigation, along with our federal, state and local law enforcement partners will continue to pursue individuals and organizations that are determined to benefit from the fruits of their illegal activity.” said Veronica Hyman-Pillot, Acting Special Agent in Charge of IRS-Criminal Investigation. “We are very serious about enforcing the laws against those who attempt to defraud our nation’s tax system.”
At sentencing, Bonner faces a possible sentence of 15 years’ imprisonment, a fine of up to $250,000, and a term of supervised release of up to three years for the access device fraud charge. On the identity theft fraud charge, Bonner faces a two-year sentence in addition to any sentence he receives for the access device fraud, a fine of up to $250,000 and a term of supervised release of up to one year. This case was investigated by the United States Secret Service and the Internal Revenue Service. Assistant United States Attorney Brent Woodall is prosecuting the case.
PRESS CONTACT: Clark Morris
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Telephone: (334) 551-1755
Fax: (334) 223-7617Baltimore Man Sentenced for Social Security and Medicare FraudRead the Press Release
Defendant Collected SSA Disability Benefits While Employed By SSA
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Christopher George Perry, age 50, of Baltimore, today to two years in prison followed by three years of supervised release for social security disability fraud, federal health benefit program fraud and health care fraud. Judge Bennett also ordered Perry to pay restitution totaling $154,234.54 to the Social Security Administration and Medicare.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.“Christopher Perry defrauded the Social Security Administration and Medicare by collecting disability benefits for more than a decade although he was able to work, and he continued his scheme even while he was working as a Social Security Administration employee,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at the four day trial, Perry was receiving social security- long term disability benefits since 1996. In 1998, he began receiving Medicare benefits as a result of his disability. In 2007, Perry also applied for and received a low income subsidy for his prescription drug benefits under Medicare.
Perry returned to work in 1996. Perry worked at various jobs and attended college without disclosing his work activities to the disability section of the Social Security Administration (SSA) or to Medicare. In June 2007, Perry was hired to be a benefits authorizer with the SSA where he worked on cases pertaining to long term disability benefits. His salary was approximately $38,000. Perry continued to receive disability benefits, prescription drug benefits and the low income subsidy, and never disclosed that he was fully employed to the disability section of SSA or to Medicare. In 2002 and 2007, Perry purchased new automobiles while receiving disability benefits.
According to evidence introduced at trial, SSA and Medicare collectively overpaid Perry more than $150,000 in benefits.
United States Attorney Rod J. Rosenstein praised the Social Security Administration - OIG and Department of Health and Human Services - OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who prosecuted the case.Baltimore Man Exiled to 10 Years in Prison on Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Corey Brian Barnes, age 28, of Baltimore, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Judge Bredar also found that Barnes is a career offender based on two previous drug trafficking 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; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Barnes’ plea agreement, in January 2012, Corey Barnes and two co-conspirators, Edward Ellis and Dominic Thompson, were introduced to an undercover Bureau of Alcohol, Tobacco and Firearms (ATF) agent who proposed robbing a large scale drug trafficker of multiple kilograms of narcotics. Barnes and his co-conspirators agreed to commit the robbery and to resell the stolen narcotics to customers in the Baltimore area.
On February 2, 2012, Barnes, Ellis and Thompson met with the undercover agent to make their final preparations to commit the robbery. Barnes knew that Ellis and Thompson were armed, and they all expected the weapons to be used to commit the robbery. After confirming that they were ready to rob the stash house, Barnes and his co-conspirators followed the agent to a location in Baltimore where they were subsequently arrested.. Barnes fled as an arrest team approached, but was quickly apprehended.
Ellis, age 37, and Thompson, age 22, both of Baltimore, previously pleaded guilty to their roles in the scheme. Thompson was sentenced to 78 months in prison on December 21, 2012. Ellis is awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Clinton J. Fuchs, who prosecuted the case.
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Baltimore Cocaine Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Timothy Joseph Carr, age 29, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiring to distribute five kilograms or more of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcements (ICE) Homeland Security Investigations (HSI).
According to his guilty plea, on November 10, 2011 Louisiana State Police seized approximately five kilograms of cocaine from a vehicle driven by co-defendant Daniel Bois in Louisiana, who was driving the cocaine from Texas to its destination of Baltimore. After arresting Bois, law enforcement continued its investigation into the cocaine organization based in Baltimore and conducted a controlled delivery of the cocaine the following day. The cocaine was replaced with “sham cocaine” and delivered to 3501 8th Avenue in Baltimore, where co-defendants Timothy Dennison and Anthony Taylor accessed the vehicle where law enforcement had concealed the sham cocaine. Law enforcement arrested Dennison and Taylor.
Further investigation revealed that Carr had also driven, in a separate rental car from Bois, another load of five kilograms of cocaine back to Baltimore from McAllen, Texas on November 10, 2011. According to travel records, Carr rented a car on November 7, 2011 after flying to McAllen from BWI Airport. Additionally, Carr and other members of the cocaine organization had made several trips between Baltimore and Texas in the past year to transport several additional kilograms of cocaine for distribution in the Baltimore area.
In all, Carr conspired to distribute between five and 15 kilograms of cocaine.
Timothy Lee Dennison, age 22, Daniel Bois, age 26, and Anthony Fraser Taylor, age 29, all of Baltimore, and two other co-defendants pleaded guilty to their participation in the conspiracy. Dennison was sentenced to 15 years in prison, and the other defendants remain to be sentenced.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore and the Louisiana State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Brooke Carey and Christopher Romano, who prosecuted the case.
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Avon Lake Man Indicted for Paying Bribes to Get $11 Million as Part of Credit-Union CollapseRead the Press Release
An Avon Lake man was charged today with 28 criminal counts for illegally receiving more than $11 million from the St. Paul Croatian Federal Credit Union, actions which played a role in the credit union’s collapse, law enforcement officials said.
Gezim Selgjekaj, 41, was charged with one count of conspiracy, six counts of bribery, six counts of money laundering and 15 counts of financial institution fraud.
Also charged were Arthur Hoxha, 40, of Rocky River (one count of financial institution fraud) and Judmir Capoj, 36, of North Olmsted (two counts of submitting false statements to a financial institution).
St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.
“This case is yet another sad chapter in the story of the demise of an important community institution,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The credit union’s leader and his associates enriched themselves on the backs of thousands of honest and hard-working members.”
“This defendant created several fictitious businesses as safe havens for the illegal siphoning of fraudulently obtained loan proceeds,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to seek justice for the shareholders that placed their trust and faith in the management of this lending institution.”
Selgjekaj owned, operated and controlled, in whole or in part, several business entities, which were created either primarily as “safe havens” for credit union proceeds or that performed little or no legitimate business despite receiving loan proceeds intended for Selgjekaj’s “business” ventures, according to the indictment.
Those business included: Jimmy’s Trucking; Top Quality Produce; RGV Enterprises; Alba Logistics; GPA Transport; J&F Properties; Lake County Farmers Market; Albkos Properties LLC; G&M Truck Repairs; Produce, Inc.; Fresh Fruit; Fresh Start Co.; East Side Farmers Market; RGA Enterprises, LLC and Ristorante Luciano, according to the indictment.
From 2003 through April 2010, Selgjekaj conspired with Anthony Raguz, who at the times was chief operating officer at SPCFCU, and others, to defraud the credit union, according to the indictment.
Selgjekaj submitted false and fraudulent loan applications to Raguz, including submitting loan requests in nominee’s names when Selgjekaj’s aggregate loan balances reached a level that could have drawn attention from auditors or members of the credit union’s board, according to the indictment.
From March 2003 through July 2004, for example, Selgjekaj received approximately $5 million in fraudulent loan proceeds from SPCFCU. Selgjekaj received another $3.6 million between 2004 and 2008, despite the fact that Selgjekaj was in federal prison for unrelated conduct. Even after defaulting on the $8.6 million in loans, Selgjekaj received an additional $2.9 million in loans from SPCFCU between 2008 and 2010, according to the indictment.
To influence and reward Raquz for providing him with the fraudulently obtained money from SPCFCU, Selgjekaj gave Raguz $40,000 in cash and five checks totaling $66,000, according to the indictment.
Overall, Selgjekaj’s conduct resulted in a loss to the credit union of more than $11 million, according to the indictment.To date, 24 people have been indicted for criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year. Koljo Nikolovski was sentenced to 18 years in prison for his role in the credit-union collapse.
This case is being handled by Assistant United States Attorneys Bridget M. Brennan and Justin E. Herdman following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
An indictment is merely an accusation. All defendants are presumed innocent of the charges until proven guilty beyond a reasonable doubt in court.
Armored Car Robber SentencedRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that EMMANUEL WALLACE III, of Hurdle Mills, North Carolina, was sentenced yesterday by Senior United States District Judge James C. Fox for his role in the June 23, 2011 robbery of approximately $1,210,440 from a Garda armored vehicle when it was located adjacent to the Washington, North Carolina, Bank of America automated teller machine.
On April 23, 2012 WALLACE pled guilty to Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Senior Judge Fox sentenced WALLACE to 252 months (21 years) in prison and 5 years of supervised release. WALLACE was also ordered to pay $963,766.00 in restitution, which reflects the almost $250,000.00 in robbery proceeds recovered to date.
Two other defendants, Charles Moore, Jr. and Lenard Smith, also pled guilty in the case and are pending sentencing at a future date.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Washington Police Department. Assistant United States Attorney John Bennett is prosecuting the case.
American Sleep Medicine Pays $15.3 Million to Settle Improper Billing of Medicare and Other Federal Healthcare ProgramsRead the Press Release
– Sleep diagnostic tests were performed by individuals who lacked required credentials
LOUISVILLE, Ky. – The United States Department of Justice, the United States Attorney’s Office for the Western District of Kentucky, and the Office of Inspector General of the Department of Health and Human Services, today announced a $15,301,341 settlement with American Sleep Medicine, LLC (ASM) to resolve claims that the company improperly billed Medicare and other federal healthcare programs for sleep diagnostic services that were not eligible for payment.
“Pursuing health care fraud is a priority of my Office and the Department of Justice. We will continue to work with the Department of Health and Human Services and the public to ensure that fraudulent claims are investigated and those responsible are required to pay,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “Medical providers who overbill Medicare defraud the taxpayers and drive up the cost of health care for us all. Recovering taxpayer dollars lost to fraud helps keep strong those critical public health care programs so many people depend on,” stated Hale.
“Medicare patients and military families deserve to be treated by appropriately credentialed professionals when seeking medical care,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “When companies providing those services seek to skirt the rules, there will be a steep price to pay.”
According to the agreement between ASM and the United States, ASM agreed to pay and has paid $15.3 million to settle claims arising from reimbursement requests for sleep diagnostic testing services, which ASM submitted or caused to be submitted to Medicare Part B, TRICARE, and the Railroad Retirement Medicare Programs. The United States contended that the reimbursement claims submitted during this period were false because the diagnostic testing services were performed by technicians who lacked the required credentials and/or certifications. The alleged improper billing covered by the settlement agreement occurred between January 1, 2004, and December 31, 2011.
ASM, headquartered in Jacksonville, Florida, owns and operates 19 diagnostic sleep testing centers throughout the United States, including Kentucky. The company’s primary business is to provide testing for patients suffering from sleep disorders such as obstructive sleep apnea (OSA). The most common tool used to diagnose sleep disorders, particularly OSA, is polysmnographic diagnostic sleep testing. Federal program requirements for the reimbursement of sleep disorder testing require that initial sleep studies be conducted by technicians who are licensed or certified as sleep test technicians. As a result of ASM’s conduct, Medicare and other federally funded healthcare programs were routinely billed for, and paid, technical and professional fees for diagnostic sleep study services that were not properly payable.
In agreeing to the settlement, ASM made no admission of liability. No issues concerning quality of patient care were raised as part of this settlement.
This matter arose as a complaint for damages and other relief under the qui tam provisions of the Federal False Claims Act. The relator, Daniel Purnell, a former employee of ASM, filed a qui tam action on February 4, 2010, in the United States District Court for the Northern District of California. In April, 2011, the lawsuit was transferred to the United States District Court for the Western District of Kentucky. Purnell will receive $2,601,228 as part of today’s settlement.
The matter was handled by Assistant United States Attorney L. Jay Gilbert of the U.S. Attorney’s Office for the Western District of Kentucky, and the Department of Justice Commercial Litigation Branch. The investigation was conducted by the Office of Inspector General of the U.S. Department of Health and Human Services with assistance from the Federal Bureau of Investigation, Defense Criminal Investigative Service and the Office of Inspector General of the Railroad Retirement Board.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.9 billion.
Alleged Al-qaeda Operative Extradited to United States for Role in International Terrorism Plot Targeting New York City, United Kingdom, and ScandinaviaRead the Press Release
Abid Naseer, a Manchester-based United Kingdom resident, was extradited from the United Kingdom to Brooklyn, New York, today to face charges for his alleged role in an international al-Qaeda plot to attack targets in the United States and Europe. Naseer will make his initial appearance on Monday, January 7, at 2:00 p.m., before The Hon. Raymond J. Dearie of the United States District Court for the Eastern District of New York. Naseer is the eighth defendant to face charges in Brooklyn federal court related to the al-Qaeda plot involving Adis Medunjanin, Najibullah Zazi, and Zarein Ahmedzay.
The extradition was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Lisa O. Monaco, Assistant Attorney General for the National Security Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department.
According to the indictment, other court filings, evidence presented to the court in support of Naseer’s extradition, and evidence from the trials of Adis Medunjanin and Mohammed Wali Zazi in the Eastern District of New York, in approximately September 2008, al-Qaeda leaders in Pakistan recruited Medunjanin, Najibullah Zazi, and Zarein Ahmedzay, three friends from New York City, to conduct a suicide bombing attack in New York City.1 The al- Qaeda leaders, including Adnan El-Shukrijumah and Saleh al-Somali, communicated with Zazi about the plot through an al-Qaeda facilitator named “Ahmad” in Peshawar, Pakistan. In early September 2009, after Medunjanin, Zazi, and Ahmedzay had selected the New York City subway system as their target, Zazi emailed with “Ahmad” in Pakistan about the proper ingredients for the main charge explosive, which included flour and oil. Zazi pleaded guilty to his role in the plot on February 22, 2010; Ahmedzay pleaded guilty on April 23, 2010; and Medunjanin was convicted after trial on May 1, 2012.
The investigation by authorities in the United States and United Kingdom revealed that “Ahmad” was also communicating with Naseer. Naseer, like Zazi, was in Peshawar, Pakistan in November 2008, according to the court filings. After returning to the United Kingdom, Naseer sent messages back and forth to the same email account that “Ahmad” was using to communicate with the American-based al-Qaeda cell on behalf of Saleh al-Somali, the indictment and court filings allege. In the messages, Naseer used coded language to refer to different types of explosives. At the culmination of the plot, in early April 2009, Naseer, again using coded language, told “Ahmad” that he was planning a large “wedding” for numerous guests between April 15 and 20, 2009, and that “Ahmad” should be ready. Notably, evidence at Medunjanin’s trial established that “Ahmad” and Zazi had agreed on a similar code to mean the New York City attack was ready to be executed, and that Zazi emailed Ahmad that “the marriage is ready” just before he drove to New York in early September 2009.
On April 8, 2009, Naseer and several associates were arrested in the United Kingdom. In connection with these arrests, U.K. authorities conducted searches of the plotters’ homes, where they found large quantities of flour and oil, as well as surveillance photographs of public areas in Manchester and maps of Manchester’s city center posted on the wall, with one of the locations from the surveillance photographs highlighted.
On January 30, 2012, three defendants were also convicted in a Norwegian court of plotting a similar terrorist attack in Denmark as part of the same overall multinational al- Qaeda conspiracy. During that trial, the United States made available to the Norwegian prosecutors three witnesses who also pleaded guilty to terrorism offenses in the Eastern District of New York: Najibullah Zazi, Zarein Ahmedzay, and Bryant Neal Vinas.
Naseer is charged with providing and conspiring to provide material support to al-Qaeda and conspiracy to use a destructive device in relation to the U.K. branch of the plot. He faces a maximum sentence of life imprisonment if convicted of all counts.
“The defendant is one of a long line of terrorist suspects extradited to these shores and this courthouse to face justice for their efforts to wreak havoc here and overseas. As alleged, this defendant was instrumental in one tentacle of an international plot that reached to New York, Norway, and the United Kingdom,” said United States Attorney Lynch. “Those responsible for terrorist plots or attacks will be investigated, charged, and prosecuted, whether they are arrested here in the United States, or abroad.” Ms. Lynch also expressed her gratitude to the law enforcement personnel, both domestic and foreign, who took part in the investigation.
“Today’s extradition underscores the importance of international cooperation in disrupting transnational terrorism threats. I thank our counterparts in the United Kingdom for their assistance in this investigation as well as the many U.S. agents, analysts, and prosecutors who helped bring about these charges,” said Assistant Attorney General for National Security Monaco.
FBI Assistant Director-in-Charge Venizelos said, “The extradition of Naseer demonstrates not only the long arm of American justice. It also shows the determination and commitment of governments around the world to work in common cause to thwart alleged international terrorist conspiracies. Plotting in one country to do harm in another does not provide cover for terrorists. It makes them targets in two countries.”
Police Commissioner Kelly said, “Here’s to our special relationship. New York and London, and now Manchester, share a history of terrorism and outstanding law enforcement cooperation in bringing those allegedly responsible to justice, as this case illustrates. Al-Qaeda has attacked on both sides of the Atlantic, and it has been brought to justice on both shores too.”
The government’s case is being prosecuted by David Bitkower, James P. Loonam, Berit W. Berger, and Zainab Ahmad of the U.S. Attorney’s Office for the Eastern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Assistance was also provided by Lystra Blake, Associate Director of the Office of International Affairs.
The Defendant:
ABID NASEER
Age: 26_____________________________
1 The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
2 January 2013
U.S. Attorney’S Office for the Southern District of New York Recovers over $3.5 Billion from Criminal and Civil Cases in FY 2012Read the Press Release
In Largest Single-Year Recovery Since Forfeiture Funds Were Established, Office Collected 68% of the National Total For All Asset Forfeiture Actions
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the Office collected more than $2.98 billion in forfeiture actions in Fiscal Year (FY) 2012, representing the largest amount collected in a given year by any office since the United States’ asset forfeiture funds were established in the 1980s. The office also collected $526.7 million from civil actions and $76.8 million in restitution, criminal fines, and special assessments in FY 2012.
Manhattan U.S. Attorney Preet Bharara said: “Effective law enforcement punishes those who break laws and sends a message of deterrence whenever possible. As part of that effort, it is critical to strip defendants of their ill-gotten money and property, and where appropriate, impose fines and penalties. Our aim is not only to take the profit out of crime and the profit incentive away from civil offenders, but also to compensate victims and put money back into government. As this year’s record-setting asset forfeiture numbers reflect, our commitment to these law enforcement principles is unrelenting. The assets we collected also fund vital law enforcement programs at both the state and local levels. It is extremely gratifying that our Office, teamed with our agency partners, has been so successful at taking away the proceeds of crime and compensating victims.”
U.S. Attorney’s offices nationwide collected $4.389 billion in asset forfeiture actions in FY 2012. Of that $4.389 billion, 68% was collected by the U.S. Attorney’s Office for the Southern District of New York. Forfeited funds are deposited into the Department of Justice Assets Forfeiture Fund (the “Assets Forfeiture Fund”) and the Department of Treasury Forfeiture Fund. The forfeited funds are used to restore money to crime victims and for a variety of law enforcement purposes. In FY 2012, the U.S. Attorney’s Office for the Southern District of New York returned more than $1.24 billion to crime victims, 79% of the national total.
The $526.7 million collected by the Office’s Civil Frauds Unit came primarily from affirmative civil actions in which the Office collected government money lost due to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws.
Nationwide, the U.S. Attorneys’ offices collected $13.1 billion in criminal and civil actions during FY 2012, more than doubling the $6.5 billion collected in FY 2011. A portion of this amount, $5.3 billion, was collected in shared cases in which one or more U.S. Attorneys’ offices or department litigating divisions were also involved. The $13.1 billion represents more than six times the appropriated budget of the combined 94 offices for FY 2012.
Below are summaries of some of the cases in which the Office obtained substantial forfeitures or provided significant restoration to victims in FY 2012:
Madoff Ponzi Scheme
The Asset Forfeiture Unit has collected approximately $2.35 billion to date in connection with the massive fraud perpetrated through Bernard L. Madoff Investment Securities (BLMIS), and continues to preserve and recover assets that ultimately will be used to compensate victims of the massive fraud. The amount collected in FY 2012 - $2.222 billion - came from two major settlements:
Jeffry Picower
$2.2 billion forfeited
In December 2010, the estate of BLMIS longtime, high-wealth customer Jeffry Picower, agreed to the forfeiture of more than $7.2 billion. The Office agreed to credit to the forfeiture a $5 billion payment to settle claims brought by Securities Investor Protection Corporation (“SIPC”) Trustee Irving Picard. In August 2012, the Court of Appeals issued a mandate rejecting the objections to the Picower settlement, making final the forfeiture of approximately $7,209,742,817 from the Picower Estate and providing for the deposit of more than 2.2 billion in the Assets Forfeiture Fund.
Carl Shapiro
$22 million forfeited
In December 2010, BLMIS longtime, high-wealth customer Carl Shapiro, agreed to the forfeiture of $625 million. The Office agreed to credit to the forfeiture a $550 million payment to settle claims brought by Securities Investor Protection Corporation (“SIPC”) Trustee Irving Picard. Approximately $22 million of the remaining forfeiture obligation was collected by the Office and deposited to the Assets Forfeiture Fund in FY2012, bringing the total forfeited by Shapiro to approximately $60 million.
Monies collected by the Office in connection with the Madoff cases will be distributed to victims in accordance with the Department of Justice remission process. Richard C. Breeden was recently retained to serve as Special Master on behalf of the Department to administer that process and we expect the victim claims process to begin shortly.
CityTime Fraud
500.3 million forfeited; $466 million remitted to the City of New York
In March 2012, as part of a Deferred Prosecution Agreement, Science Applications International Corporation (SAIC), the primary contractor on New York City's “CityTime” payroll project, forfeited $500,392,977 in connection with its role in a fraud and kickback scheme. As compensation for its losses on the CityTime project, $466,093,333.53 was remitted to the City. The mayor’s office stated that this compensation enabled the City to fill more than 2,500 teaching positions that were to be eliminated in the budget for the coming fiscal year, while avoiding tax increases or layoffs of police officers or firefighters.
Adelphia Securities Fraud
More than $728.9 million remitted to victims
In April and May 2012, more than $728.9 million forfeited in connection with the Office’s investigation and prosecution of the Adelphia Communications Corporation securities fraud was distributed to victims who suffered financial losses as a direct result of the fraud. In July
2004, John Rigas, the founder and former Chairman and Chief Executive Officer of Adelphia, and Timothy Rigas, the former Chief Financial Officer, were convicted in Manhattan federal court for their participation in a massive securities fraud scheme to defraud investors, creditors, and the public concerning the financial condition and operating performance of Adelphia. Following the convictions of John and Timothy Rigas, the Office negotiated a settlement that created a fund to compensate defrauded investors. As part of the settlement, the Rigases, as well as other members of the family, agreed to forfeit more than 95% of the family’s assets to the Government. The Adelphia distribution is the largest single distribution of forfeited assets to victims in Department of Justice history.
PokerStars
$158.5 million forfeited
In July 2012, the United States reached an agreement with the two largest online poker companies in the United States, Full Tilt Poker and PokerStars. The United States had brought a civil forfeiture and money laundering action brought by this Office against these companies and their assets. Under the terms of the settlement, Full Tilt forfeited essentially all of its assets to the United States. PokerStars agreed to forfeit $547 Million, to be paid in several installments, and to reimburse the approximately $184 million owed by Full Tilt to foreign players. In order to fully resolve the action, the settlement further provides that PokerStars will acquire the Forfeited Full Tilt Assets from the Government. To date, $158.5 million in funds resulting from the settlement has been received and fully forfeited.
Below are summaries of some of the civil actions in which the Office has obtained substantial recoveries:
Deutsche Bank & MortgageIT Fraud
$202.3 million paid to the United States
In May 2012, the Office reached a settlement with Deutsche Bank and MortgageIt for $202.3 million that resolved a civil fraud Complaint alleging that MortgageIT, and later Deutsche Bank AG, made repeated false certifications to the U.S. Department of Housing and Urban Development (“HUD”) to obtain approval of mortgages that MortgageIT underwriters recklessly endorsed for Federal Housing Administration (“FHA”) insurance. The Complaint also alleged that defendants falsely certified to HUD that MortgageIT maintained a compliant quality control program when it did not. The defendants also admitted, acknowledged, and accepted responsibility for certain misconduct outlined in the Complaint.
CitiMortgage Fraud
$158.3 million paid to the United States
In February 2012, the Office filed, and simultaneously settled, a civil fraud lawsuit for $158.3 million against CitiMortgage, Inc., a subsidiary of CitiBank, N.A., for over six years of misconduct in connection with CitiMortgage’s participation in the FHA’s Direct Endorsement Lender Program. The Complaint alleged that CitiMortgage submitted false certifications stating that certain loans were eligible for FHA mortgage insurance when in fact, they were not. This caused HUD to incur losses when the loans defaulted. In addition, CitiMortgage admitted and accepted responsibility for certain conduct alleged in the Complaint.
City of New York - Personal Care Services Fraud
$70 million paid to the United States
In October 2011, the Office reached a settlement with the City of New York for $70 million in connection with the City’s operation of the Personal Care Services (PCS) program - a Medicaid funded program designed to provide cleaning, shopping, grooming, and basic aid services to eligible Medicaid beneficiaries. The civil health care fraud Complaint alleged that for 10 years, the City improperly overcharged the Medicaid program for the provision of 24-hour personal care services by routinely re-authorizing 24-hour continuous PCS for applicants without the required local medical director assessment; that in some cases, City administrators overruled the findings of the local medical director that PCS services were inappropriate for the patient; and that the City knowingly re-authorized 24-hour care for patients where the nursing and social worker assessments were missing or were not reviewed by the City.
Beth Israel Medical Center Fraud
$13 million paid to the United States
In March 2012, this Office filed, and simultaneously settled, a civil health care fraud lawsuit against Beth Israel Medical Center (“Beth Israel”), recovering $13,031,355 in damages and penalties under the False Claims Act from the hospital. The Complaint alleged that Beth Israel fraudulently inflated its charges to Medicare patients to obtain larger “outlier” reimbursements, which are supplemental reimbursements made in cases where the cost of care is unusually high, from Medicare. In the settlement, Beth Israel admitted, acknowledged, and accepted responsibility for having selectively increased its charges to obtain more outlier payments than it
The Office’s Asset Forfeiture Unit is led by Sharon Cohen Levin and handles all criminal and civil forfeiture actions for the U.S. Attorney’s Office for the Southern District of New York. Civil recoveries are handled by the Office’s Civil Division, which is led by Sara Shudofsky. Criminal and civil collections are handled by the Office’s Financial Litigation Unit, which is led by Kathleen Zebrowski.
For further information, the United States Attorneys’ Annual Statistical Reports can be found online at http://www.justice.gov/usao/resources/reports/.
Six Individuals Sentenced During the Month of December for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of December, 2012, six individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
ANTOINE ALLEN a/k/a “BONES,” age 41, of Cleveland, Ohio, was sentenced to 24 months imprisonment to be followed by 36 months of supervised release for a conviction in Cuyahoga County, Ohio, of drug trafficking and drug possession; failure to report the arrest to his probation officer and submission of a false monthly supervision report. ALLEN was originally sentenced on May 6, 2003, to 100 months imprisonment and 5 years of supervised release for the distribution of crack cocaine within 1,000 feet of a protected location. In 2008, ALLEN’s sentence was reduced to 84 months pursuant to the crack re-sentencing guidelines. ALLEN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MARK MCCANN, age 46, of Wheeling, was sentenced to 18 months imprisonment for failure to report for sex offender evaluation; failure to make third-part risk notification; possession of pornography; failure to attend sex offender counseling; and, second offense domestic battery. MCCANN was originally sentenced on November 13, 2007, to 68 months imprisonment and 3 years of supervised release for the distribution of crack cocaine. On November 1, 2011, MCCANN’s sentence was reduced to 38 months pursuant to the crack re- sentencing guidelines. MCCANN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
ROBERT EUGENE PHILLIPS, age 43, of Colliers, West Virginia, was sentenced to
14 months imprisonment for testing positive for the use of marijuana; possession of a firearm; and, possession of marijuana and drug paraphernalia. PHILLIPS was originally sentenced on August 22, 2004, to 120 months imprisonment and 3 years of supervised release for possession of a firearm by a convicted felon. PHILLIPS’ supervised release was previously revoked on July 1, 2008, for violations and he was sentenced to 5 months imprisonment and
31 months of supervised release. On January 3, 2011, PHILLIPS’ supervised release was again revoked for violations and he was sentenced to 5 months imprisonment and 26 months of supervised release. PHILLIPS was remanded to the custody of the United States Marshal pending designation to a Federal institution.The United States was represented at the Wheeling revocation hearings by Assistant
United States Attorneys John C. Parr and Randolph J. Bernard.CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
JOSH MURRAY, age 34, of Spring Hill Township, Pennsylvania, was sentenced to 24 months imprisonment for his arrest in Monongalia County, West Virginia, for driving under the influence 2nd offense; driving under the influence with injury; driving under the influence on a suspended/revoked license 1st offense; driving on a suspended/revoked license, leaving the scene of an accident, expired registration, no proof of insurance and no or expired motor vehicle inspection sticker. MURRAY was originally sentenced on April 20, 2007, to 70 months imprisonment and 3 years of supervised release for the distribution of crack cocaine. MURRAY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
CHARLES FREEMAN ECHOLS, age 56, of Fairmont, West Virginia, was sentenced to 8 months imprisonment for testing positive for the use of marijuana and possession of marijuana and heroin. ECHOLS was originally sentenced on March 6, 2011, to 151 months imprisonment and 3 years of supervised release for bank robbery. ECHOLS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JAMIE T. WEEKLY, age 32, of Enterprise, West Virginia, was sentenced to 3 months imprisonment to be followed by 33 months of supervised release for testing positive for the use of marijuana. WEEKLY was originally sentenced on June 29, 2010, to 24 months imprisonment and 3 years of supervised release for possession of a machine gun. WEEKLY, who is on bond, will self-report to the designated Federal institution on January 14, 2013.
The United States was represented at the Clarksburg revocation hearings by Assistant
United States Attorney Zelda E. Wesley.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Saline County Man Sentenced to 11+ Years for Methamphetamine TraffickingRead the Press Release
TOPEKA, KAN. – A Saline County man has been sentenced to more than 11 years in federal prison for trafficking in methamphetamine, U.S. Attorney Barry Grissom said today.
Shane Curtis Sheets, 33, New Cambria, Kan., was sentenced to 140 months in federal prison. Sheets pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted to conspiring with co-defendants Lisandro Clara-Fernandez, Kevin Dale Ashcraft and Dennis Augustine to distribute methamphetamine in the metropolitan area of Salina, Kan.
The investigation began when the 1-35/I-70 Drug Task Force based in Salina developed information that Augustine and Ashcraft were operating a drug trafficking organization. Investigators learned that on Nov. 27, 2011, Ashcraft was meeting Clara-Fernandez on I-70 in Wabaunsee County, Kan. At the meeting approximately 1.4 kilograms of methamphetamine was transferred to Ashcraft. Shortly afterwards, law enforcement officers arrested Ashcraft with the drugs.
Investigators learned that Ashcraft regularly received methamphetamine from Clara-Fernandez and that for every pound of methamphetamine he received he distributed a quarter pound to Sheets on credit. Sheets was distributing to other dealers and users down the line.
Co-defendants included the following: Lisandro Clara-Fernandez, who was sentenced to 54 months.
Kevin Dale Ashcraft, who was sentenced to 94 months.
Dennis Augustine, who was sentenced to 240 months.Grissom commended the 1-35/I-70 Drug Task Force and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Ridgeway Man Pleads Guilty to Marijuana Manufacturing OffensesRead the Press Release
Paul E. Reynolds, 36, of Ridgeway, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with one count of conspiring with two other individuals to grow more than 100 marijuana plants and one count of actually growing more than 100 marijuana plants, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on September 5, 2012, alleged that the offenses occurred in Gallatin County between April, 2012 and August 29, 2012.
Sentencing was set for April 25, 2013, at the United States District Court in Benton. Reynolds faces between 5 and 40 years imprisonment, up to a $5 million fine, and 4 years to life on supervised release to follow incarceration on each count.
Reynolds’ codefendant, Daniel J. Fulkerson, 39, also from Ridgeway, pled guilty to the same charges last month. His sentencing was set for April 11, 2013.
Reynolds has been held without bond on the federal charges since September 11, 2012, and was again remanded to the custody of the United States Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Priest Sentenced to 8 Years in Prison for Possessing Pornographic Images of ChildrenRead the Press Release
PITTSBURGH, Pa. - A suspended Catholic priest was sentenced in federal court for violating federal child sexual exploitation laws, United States Attorney David J. Hickton announced today.
Bartley Sorensen, 63, was sentenced by United States District Judge Alan N. Bloch to serve 97 months in prison followed by five years of supervised release for receiving and possessing thousands of visual depictions of minors engaged in sexually explicit conduct. Sorensen was also ordered to pay a $25,000 fine.
On Dec. 9, 2011, Sorensen was a Catholic priest assigned to Saint John Fisher Parish in Churchill, Pa. On that day, a parish employee observed Sorensen viewing an image on the screen of his computer of a young boy wearing nothing but a shirt. The employee promptly reported what she observed to the Catholic Child Abuse Hotline. Search warrants were thereafter served at the rectory that resulted in the seizure of, among other things, over 100 CD's most of which were loaded with thousands of images of children being sexually abused, including one that depicted a nude male child with a rope around his genitals and what appeared to be blood on his genitals.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Allegheny County District Attorney's Office, the Allegheny County Police Department, the Federal Bureau of Investigation, and the Churchill Police Department for the successful investigation leading to the conviction and sentence in this case.
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.justice.gov/psc.
Paul Roy Schmidt Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on December 28, 2012, before Senior U.S. District Judge Charles C. Lovell, PAUL ROY SCHMIDT, a 57-year-old resident of Helena, appeared for sentencing. SCHMIDT was sentenced to a term of:
- Prison: 12 months
- Special Assessment: $300
- Money Judgment: $750,000
- Supervised Release: 4 years
SCHMIDT was sentenced in connection with his guilty plea to manufacturing marijuana and money laundering.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On May 20, 2011, a federal search warrant was executed. During the search law enforcement seized 289 marijuana plants, three gallon-size bags of marijuana, other marijuana ready for distribution, $913 taken from a cash register, assorted edibles - brownies, rice crispy treats, oatmeal bars, marijuana oils, lotions, soaps, creams; a ledger and a log book of items sold, and receipts for marijuana transactions.
During the investigation, law enforcement determined that SCHMIDT obtained money from the sale of marijuana. SCHMIDT had a bank account at Mountain West Bank. SCHMIDT knew the money was from the sale of marijuana. SCHMIDT deposited the money made from the sale of the marijuana into the bank account at Mountain West Bank. SCHMIDT then used the money he deposited from marijuana sales to promote the continuing marijuana grow and marijuana distribution center near Helena. SCHMIDT also wrote checks on this account for the purchase of marijuana.
The DEA laboratory tested some of the substances recovered from this investigation. The result of the testing confirmed that items seized from SCHMIDT on May 20, 2011, did contain marijuana.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SCHMIDT will likely serve all of the time imposed by the court. In the federal system, SCHMIDT 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 conducted by the Drug Enforcement Administration.
Nebraska Man to Federal Prison for Iowa Crack ConspiracyRead the Press Release
A man who conspired to distribute crack cocaine was sentenced December 28, 2012, to more than 10 years in federal prison.
Jason Martinez, 30, from Omaha, Nebraska, received the prison term after a June 28, 2012, guilty plea to distribution of crack cocaine, possessing marijuana with intent to distribute, and illegal possession of a firearm. Martinez was previously convicted of possession with intent to distribute in Douglas County Court for Nebraska in 2008, and in 2002, Martinez was convicted of criminal sale of controlled substance in New York.
At the guilty plea, Martinez admitted his involvement in a conspiracy that distributed more than 280 grams of crack cocaine from 2010 through June 2011. Martinez admitted to obtaining crack cocaine from sources in Omaha, Nebraska, and reselling it in Sioux City. On November 23, 2011, in Sac County, Iowa, Martinez was stopped by law enforcement officers and subject to a search, officers located over 72 grams of marijuana, over 3 grams of crack cocaine and a .22 caliber pistol. On two occasions in May 2011, and June 2011, Martinez distributed, in total, over 10 grams of crack cocaine to an individual cooperating with law enforcement.
Martinez was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Martinez was sentenced to 130 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system. Martinez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, which consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Bureau of Immigration and Customs Enforcement; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office, the Sac County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 11-4143.