Florida Man Arrested
Hidalgo, Texas – U.S. Customs and Border Protection (CBP) officers working at the Hidalgo International Bridge seized 8.2 pounds of Mexican brown heroin Tuesday evening. The estimated street value of the heroin is $663,000.00.
On July 26, CBP officers working at the Hidalgo International Bridge came in contact with a northbound 1997 Toyota Corolla sedan and its male driver, a 40-year-old Mexican citizen from Dade City, Florida. A CBP officer referred the driver and vehicle to secondary for further inspection. In secondary, officers seized five packages containing Mexican brown heroin that were found hidden within the vehicle. Officers also seized the vehicle.
The traveler was transferred to the custody of U.S. Immigration and Customs Enforcement (ICE) special agents for further investigation.
Hector A. Mancha, CBP Port Director, Hidalgo-Pharr said, “Our frontline officers continue working hard to secure our nation’s border and this is an excellent example of the great enforcement work our officers do on a daily basis to prevent this type of contraband from entering our country.”
Saturday, July 31, 2010
Louisiana Vessel Company Pleads Guilty to Dumping Oil on High Seas, Will Pay $2.1 Million in Penalties
WASHINGTON – Offshore Vessels LLC (OSV) has entered a plea of guilty to knowingly discharging waste oil from one of its vessels, in violation of the Act to Prevent Pollution from Ships (APPS), the Justice Department announced today. OSV, based in Louisiana, entered the plea in U.S. District Court in New Orleans.
OSV owned and operated the R/V Laurence M. (L.M.) Gould (R/V Gould). The R/V Gould is a 2,966 gross ton American-flagged vessel that served on a contractual basis as an ice-breaking research vessel for the National Science Foundation on research voyages to and from Antarctica. OSV admitted that on or about Sept. 8, 2005, on the high seas, R/V Gould crew members knowingly discharged oily wastewater from the bilge tank of the ship overboard, in violation APPS. Regulations under APPS require that oily wastewater be discharged only after it has been processed through an oily water separator, to ensure that the concentration of oil in the wastewater is below the legal limit.
OSV’s plea agreement with the Justice Department requires the company to pay a criminal fine of $1.75 million and remit a payment of $350,000 as community service to the National Marine Sanctuary Foundation, to be used for study of polar water pollution and protection of vulnerable marine ecosystems in the Antarctic region. OSV will also serve a period of probation for three years, during which it will be subject to an Environmental Compliance Plan.
"The Department of Justice will vigorously pursue all vessel companies, American and foreign, that deliberately violate the laws enacted to protect the oceans," said Assistant Attorney General Ignacia S. Moreno. "This case is particularly egregious because the defendant is an American company tasked with providing passage for the National Science Foundation in order for it to perform important environmental research in Antarctica."
The case was investigated by the U.S. Coast Guard Investigative Service and was prosecuted by Senior Trial Attorney Daniel Dooher, Environmental Crimes Section, Department of Justice; and Assistant U.S. Attorney Dorothy Manning Taylor, Eastern District of Louisiana.
OSV owned and operated the R/V Laurence M. (L.M.) Gould (R/V Gould). The R/V Gould is a 2,966 gross ton American-flagged vessel that served on a contractual basis as an ice-breaking research vessel for the National Science Foundation on research voyages to and from Antarctica. OSV admitted that on or about Sept. 8, 2005, on the high seas, R/V Gould crew members knowingly discharged oily wastewater from the bilge tank of the ship overboard, in violation APPS. Regulations under APPS require that oily wastewater be discharged only after it has been processed through an oily water separator, to ensure that the concentration of oil in the wastewater is below the legal limit.
OSV’s plea agreement with the Justice Department requires the company to pay a criminal fine of $1.75 million and remit a payment of $350,000 as community service to the National Marine Sanctuary Foundation, to be used for study of polar water pollution and protection of vulnerable marine ecosystems in the Antarctic region. OSV will also serve a period of probation for three years, during which it will be subject to an Environmental Compliance Plan.
"The Department of Justice will vigorously pursue all vessel companies, American and foreign, that deliberately violate the laws enacted to protect the oceans," said Assistant Attorney General Ignacia S. Moreno. "This case is particularly egregious because the defendant is an American company tasked with providing passage for the National Science Foundation in order for it to perform important environmental research in Antarctica."
The case was investigated by the U.S. Coast Guard Investigative Service and was prosecuted by Senior Trial Attorney Daniel Dooher, Environmental Crimes Section, Department of Justice; and Assistant U.S. Attorney Dorothy Manning Taylor, Eastern District of Louisiana.
Agency Chief FOIA Officers Respond to the President’s and Attorney General’s Call for Transparency
July 29th, 2010 Posted by Alisa Finelli
This year, for the first time, all agencies subject to FOIA were required to submit Chief FOIA Officer reports. In those reports, agencies were asked to describe the steps they had taken to improve transparency in accordance with the President’s FOIA Memorandum, and the Attorney General’s FOIA Guidelines. The department’s Office of Information Policy (OIP) has analyzed and prepared a summary of the reports. The reports show that more documents have been released, more information has been made available on websites, and backlogs of pending requests have decreased in the past year.
“These 94 agencies have taken significant steps forward in providing the American people with the transparency they want and deserve,” said Attorney General Eric Holder. “Much work needs to be done in the effort to open up the government’s FOIA process and improve its efficiency, but these results indicate we have made important strides in the right direction.”
Among the results:
•All agencies reported progress in implementing the presumption of openness, with over half having that progress rated as “remarkable.”
•Almost half of the ninety four agencies reported divulging documents in discretionary releases – i.e., the documents were requested under the FOIA and the agency could legally have withheld information, but chose not to. Over half looked for opportunities to do so.
•More information is being released to FOIA requesters. In Fiscal Year 2009, the number of responses with released records, either records released in full or in part, increased overall. The number of partial releases increased by approximately 50,000 documents.
•89% of agencies reported proactively disclosing material on their websites – i.e., producing material that has not (yet) been requested by the public.
•95% of agencies, including all Cabinet agencies, can receive FOIA requests electronically, rather than merely via snail mail or other non-technological methods. 91% track the requests electronically as well.
•60% of agencies either had no backlog in processing FOIA requests or reduced that backlog in Fiscal Year 2009. 85% reduced the age of the oldest request or had no backlogged request to close.
This year, for the first time, all agencies subject to FOIA were required to submit Chief FOIA Officer reports. In those reports, agencies were asked to describe the steps they had taken to improve transparency in accordance with the President’s FOIA Memorandum, and the Attorney General’s FOIA Guidelines. The department’s Office of Information Policy (OIP) has analyzed and prepared a summary of the reports. The reports show that more documents have been released, more information has been made available on websites, and backlogs of pending requests have decreased in the past year.
“These 94 agencies have taken significant steps forward in providing the American people with the transparency they want and deserve,” said Attorney General Eric Holder. “Much work needs to be done in the effort to open up the government’s FOIA process and improve its efficiency, but these results indicate we have made important strides in the right direction.”
Among the results:
•All agencies reported progress in implementing the presumption of openness, with over half having that progress rated as “remarkable.”
•Almost half of the ninety four agencies reported divulging documents in discretionary releases – i.e., the documents were requested under the FOIA and the agency could legally have withheld information, but chose not to. Over half looked for opportunities to do so.
•More information is being released to FOIA requesters. In Fiscal Year 2009, the number of responses with released records, either records released in full or in part, increased overall. The number of partial releases increased by approximately 50,000 documents.
•89% of agencies reported proactively disclosing material on their websites – i.e., producing material that has not (yet) been requested by the public.
•95% of agencies, including all Cabinet agencies, can receive FOIA requests electronically, rather than merely via snail mail or other non-technological methods. 91% track the requests electronically as well.
•60% of agencies either had no backlog in processing FOIA requests or reduced that backlog in Fiscal Year 2009. 85% reduced the age of the oldest request or had no backlogged request to close.
Former Deputy Sheriff from Choctaw County, Oklahoma, Sentenced for Civil Rights Violations
WASHINGTON – Former Choctaw County, Okla., deputy sheriff Ben Westley Milner was sentenced today in Muskogee, Okla., to serve 18 months in prison and two years supervised release for violating the civil rights of three men by assaulting them without legal justification.
In one incident, which took place on Oct. 31, 2005, Milner physically abused a truck driver following a traffic stop. In a second incident on Oct. 18, 2007, Milner assaulted two inmates at the Choctaw County Jail with a large axe handle. Milner was convicted on Sept. 24, 2009, on three counts of violating the civil rights of his victims and two counts of falsifying official reports.
"The investigation and prosecution of this case shows that the Department of Justice does not tolerate abuse of authority by the people we entrust to enforce our laws. The sentence imposed today shows the seriousness of these crimes," said Thomas E. Perez , Assistant Attorney General for the Civil Rights Division.
"Law enforcement officers in the Eastern District of Oklahoma are generally well trained in the exercise of reasonable force. We expect that they will survive the dangers inherent in their shifts of work and return home to their families and loved ones. But when those who swear to obey the law, violate that law, a day of reckoning awaits," said U.S. Attorney Sheldon J. Sperling for the Eastern District of Oklahoma.
The convictions resulted from an investigation by the Oklahoma Division of the FBI, and a prosecution by Assistant U.S. Attorney Dean Burris for the Eastern District of Oklahoma, and Trial Attorney Ryan McKinstry for the Civil Rights Division.
In one incident, which took place on Oct. 31, 2005, Milner physically abused a truck driver following a traffic stop. In a second incident on Oct. 18, 2007, Milner assaulted two inmates at the Choctaw County Jail with a large axe handle. Milner was convicted on Sept. 24, 2009, on three counts of violating the civil rights of his victims and two counts of falsifying official reports.
"The investigation and prosecution of this case shows that the Department of Justice does not tolerate abuse of authority by the people we entrust to enforce our laws. The sentence imposed today shows the seriousness of these crimes," said Thomas E. Perez , Assistant Attorney General for the Civil Rights Division.
"Law enforcement officers in the Eastern District of Oklahoma are generally well trained in the exercise of reasonable force. We expect that they will survive the dangers inherent in their shifts of work and return home to their families and loved ones. But when those who swear to obey the law, violate that law, a day of reckoning awaits," said U.S. Attorney Sheldon J. Sperling for the Eastern District of Oklahoma.
The convictions resulted from an investigation by the Oklahoma Division of the FBI, and a prosecution by Assistant U.S. Attorney Dean Burris for the Eastern District of Oklahoma, and Trial Attorney Ryan McKinstry for the Civil Rights Division.
Thursday, July 29, 2010
Superseding Indictment Charges Romelia Puig and Mission Clinic Staff with Defrauding Medicare and Medicaid
McALLEN, TX—A 13-count superseding indictment charging Romelia Sanchez Puig, 41, of Edinburg, Texas, and two staff members of the Mission Clinic in Mission, Texas, with conspiracy to commit health care fraud, health care fraud arising from a scheme to defraud Medicare and Medicaid from the operation of two clinics and mail fraud has been returned by a Corpus Christi grand jury, United States Attorney José Angel Moreno and Texas Attorney General Greg Abbott announced today.
The two Mission Clinic staff members, Eliza Lozano Lumbreras, 63, and San Juanita Gallegos Lozano, 54, both of Mission, Texas, were arrested this morning and are expected to appear before a U.S. Magistrate Judge in McAllen later today. Their release on bond is expected to be decided then. Romelia Puig, on bond since the return of the first indictment is expected to surrender herself to federal authorities on Friday, July 30, for arraignment on the new charges against her.
Puig was originally indicted along with her husband, Manuel Anthony Puig, 44, of Edinburg, Texas, on March 9, 2010, charged with health care fraud, mail fraud and conspiracy to commit health care fraud arising from their operation of the La Hacienda Family Clinic in Mission, Texas. The superseding indictment, returned by a federal grand jury on July 27, 2010, adds Lumbreras and Lozano as defendants to each of the original counts alleged in the first indictment along with Romelia Puig and adds charges accusing Lumbreras and Lozano of conspiracy to commit health care fraud and five new counts of health care fraud arising from the operation of the Mission Clinic. The superseding indictment also charges all three defendants with four additional counts of mail fraud arising from the operation of both clinics. The Medicare program is also identified as a victim of the alleged fraud scheme.
Puig, along with her husband, a physician assistant, operated La Hacienda Family Clinic in Mission, Texas. By state law, as a physician assistant, Manuel Puig was required to have a licensed physician supervising his work and delegating responsibilities to him. The original indictment accused the Puigs of fraudulently using the Medicaid provider number of R.J.P., a medical doctor who owned the Mission Clinic in Mission, Texas to fraudulently bill Medicaid for services performed by Manuel Puig without required delegation of authority nor supervision. According to the indictment, R. J. P.’s physical and mental condition prevented him from practicing medicine, and R. J. P. had not delegated authority to the Manuel Puig to see patients nor did he supervise Manuel Puig’s activities, yet beginning in or about May 1, 2005, through on or about Jan. 10, 2006, Manuel Puig provided medical care and services for Medicaid beneficiaries without the authority or the supervision of R.J.P. During the same time period, the Puigs alleged sent 6,000 claims to Medicaid fraudulently using the Texas Medical provider number for R.J.P. Medicaid paid over $173,000 as a result of these claims.
The superseding indictment alleges that between September 2001 and January 2006, R. J. P. was physically and mentally unable to practice medicine but that his office staff, Lumbreras and Lozano, kept the Mission Clinic open for patient care. Despite R. J. P.’s inability to practice medicine, the superseding indictment alleges Lumbreras and Lozano took him to the Mission Clinic where they placed him in an office while Lumbreras saw and treated patients. Neither Lumbreras or Lozano were licensed to provide any medical services. Between September 2001 and January 2006, Lumbreras and Lozano allegedly submitted bills to the Medicare and Medicaid programs which fraudulently claimed that R. J. P. had provided patients with over 7,000 medical benefits, items or services when in fact those services had been provided by Lumbreras or not at all. Medicare and Medicaid paid over $195,000 on those claims.
The indictment further alleges that Lumbreras and or Lozano arranged for Manual Anthony Puig to operate La Hacienda Family Clinic in Alton, Texas, beginning in April 2005 and to send bills to Medicare and Medicaid using the provider number of R.J. P. Romelia Puig allegedly did the billing for her husband and La Hacienda Clinic and also gave billing advice to Lumbreras and Lozano.
Lumbreras, according to the indictment, had power of attorney over R. J. P.’s finances and was able to obtain control over the money Medicare and Medicaid paid for the fraudulent bills submitted from the Mission and La Hacienda clinics, which was divided among Lumbreras, Lozano, and the Puigs. The clinic operated by the Puigs and the clinic operated by Lumbreras and Lozano are no longer in operation.
Conspiracy to commit health care fraud, and each count of health care fraud carries a maximum punishment of 10 years’ imprisonment upon conviction. Mail fraud carries a maximum punishment of 20 years’ imprisonment upon conviction. Maximum fines of $250,000 fine can also be imposed upon conviction for each count.
On July 23, 2010, Manuel Anthony Puig pleaded guilty before Chief United States District Judge Ricardo H. Hinojosa to the conspiracy charge of the original incitement and faces up to 10 years in prison and a $250,000 fine for the conviction. Mr. Puig, who is not charged in the superseding indictment, remains on bond pending an Oct. 26, 2010 sentencing hearing.
The investigation leading to the charges was conducted by the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit with the assistance and cooperation of the Mission Police Department. Assistant United States Attorney Casey N. MacDonald and Special Assistant United States Attorney Rex G. Beasley are prosecuting the case.
The two Mission Clinic staff members, Eliza Lozano Lumbreras, 63, and San Juanita Gallegos Lozano, 54, both of Mission, Texas, were arrested this morning and are expected to appear before a U.S. Magistrate Judge in McAllen later today. Their release on bond is expected to be decided then. Romelia Puig, on bond since the return of the first indictment is expected to surrender herself to federal authorities on Friday, July 30, for arraignment on the new charges against her.
Puig was originally indicted along with her husband, Manuel Anthony Puig, 44, of Edinburg, Texas, on March 9, 2010, charged with health care fraud, mail fraud and conspiracy to commit health care fraud arising from their operation of the La Hacienda Family Clinic in Mission, Texas. The superseding indictment, returned by a federal grand jury on July 27, 2010, adds Lumbreras and Lozano as defendants to each of the original counts alleged in the first indictment along with Romelia Puig and adds charges accusing Lumbreras and Lozano of conspiracy to commit health care fraud and five new counts of health care fraud arising from the operation of the Mission Clinic. The superseding indictment also charges all three defendants with four additional counts of mail fraud arising from the operation of both clinics. The Medicare program is also identified as a victim of the alleged fraud scheme.
Puig, along with her husband, a physician assistant, operated La Hacienda Family Clinic in Mission, Texas. By state law, as a physician assistant, Manuel Puig was required to have a licensed physician supervising his work and delegating responsibilities to him. The original indictment accused the Puigs of fraudulently using the Medicaid provider number of R.J.P., a medical doctor who owned the Mission Clinic in Mission, Texas to fraudulently bill Medicaid for services performed by Manuel Puig without required delegation of authority nor supervision. According to the indictment, R. J. P.’s physical and mental condition prevented him from practicing medicine, and R. J. P. had not delegated authority to the Manuel Puig to see patients nor did he supervise Manuel Puig’s activities, yet beginning in or about May 1, 2005, through on or about Jan. 10, 2006, Manuel Puig provided medical care and services for Medicaid beneficiaries without the authority or the supervision of R.J.P. During the same time period, the Puigs alleged sent 6,000 claims to Medicaid fraudulently using the Texas Medical provider number for R.J.P. Medicaid paid over $173,000 as a result of these claims.
The superseding indictment alleges that between September 2001 and January 2006, R. J. P. was physically and mentally unable to practice medicine but that his office staff, Lumbreras and Lozano, kept the Mission Clinic open for patient care. Despite R. J. P.’s inability to practice medicine, the superseding indictment alleges Lumbreras and Lozano took him to the Mission Clinic where they placed him in an office while Lumbreras saw and treated patients. Neither Lumbreras or Lozano were licensed to provide any medical services. Between September 2001 and January 2006, Lumbreras and Lozano allegedly submitted bills to the Medicare and Medicaid programs which fraudulently claimed that R. J. P. had provided patients with over 7,000 medical benefits, items or services when in fact those services had been provided by Lumbreras or not at all. Medicare and Medicaid paid over $195,000 on those claims.
The indictment further alleges that Lumbreras and or Lozano arranged for Manual Anthony Puig to operate La Hacienda Family Clinic in Alton, Texas, beginning in April 2005 and to send bills to Medicare and Medicaid using the provider number of R.J. P. Romelia Puig allegedly did the billing for her husband and La Hacienda Clinic and also gave billing advice to Lumbreras and Lozano.
Lumbreras, according to the indictment, had power of attorney over R. J. P.’s finances and was able to obtain control over the money Medicare and Medicaid paid for the fraudulent bills submitted from the Mission and La Hacienda clinics, which was divided among Lumbreras, Lozano, and the Puigs. The clinic operated by the Puigs and the clinic operated by Lumbreras and Lozano are no longer in operation.
Conspiracy to commit health care fraud, and each count of health care fraud carries a maximum punishment of 10 years’ imprisonment upon conviction. Mail fraud carries a maximum punishment of 20 years’ imprisonment upon conviction. Maximum fines of $250,000 fine can also be imposed upon conviction for each count.
On July 23, 2010, Manuel Anthony Puig pleaded guilty before Chief United States District Judge Ricardo H. Hinojosa to the conspiracy charge of the original incitement and faces up to 10 years in prison and a $250,000 fine for the conviction. Mr. Puig, who is not charged in the superseding indictment, remains on bond pending an Oct. 26, 2010 sentencing hearing.
The investigation leading to the charges was conducted by the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit with the assistance and cooperation of the Mission Police Department. Assistant United States Attorney Casey N. MacDonald and Special Assistant United States Attorney Rex G. Beasley are prosecuting the case.
Drug Kingpin Sentenced to Life Imprisonment Co-Conspirator Sentenced to 10 Years
Ring Distributed $1 Million of PCP
WASHINGTON - Lonnell Glover, 48, was sentenced today to life imprisonment for his role as leader of a Phencyclidine (PCP) and heroin distribution organization in the District of Columbia and Maryland. The Honorable Thomas F. Hogan, of the U.S. District Court for the District of Columbia, also entered a final order requiring him to forfeit $1,050,000 as proceeds from his drug conspiracy.
The sentencing was announced by United States Attorney Ronald C. Machen Jr., Shawn Henry, Assistant Director in Charge of the FBI’s Washington Field Office, Cathy L. Lanier, Chief of the Metropolitan Police Department, and Edwin D. Sloane, Acting U.S. Marshal for the District of Columbia. Judge Hogan described Glover as “the leader of the largest PCP ring ever in D.C. ”
On June 24, 2010, Glover, of Temple Hills, Md., was sentenced to 20 years’ imprisonment by the Honorable Ellen S. Huvelle, U.S. District Judge for the District of Columbia, for his leadership role in a separate cocaine trafficking organization. These sentences are to run consecutively.
Also today, Jerome Hampton, 51, from Upper Marlboro, Md. was sentenced to 10 years and one month of imprisonment for his role in assisting Glover to obtain multiple gallons of PCP from California, to the Washington D.C. area. Hampton is the owner of Custom Interiors in Upper Marlboro.
In this case, from 2005 to 2007, the FBI conducted a long-term investigation, including months of electronic surveillance, which revealed that Glover was one of the largest regional suppliers of PCP and heroin in the area.
Between February and June of 2007, Glover along with 25 other co-conspirators, obtained and distributed approximately 50 gallons of PCP in various locations in Washington, D.C. and Maryland. The PCP had a wholesale street value of more than $1,000,000.
Hampton permitted Glover to have multiple-gallon shipments of PCP sent to his business office, Custom Interiors. Glover would then retrieve the PCP from Hampton’s business, and Glover would pay Hampton several thousands of dollars for his assistance. Hampton also sold some of Glover’s PCP in the community.
During that same time period, Glover also obtained and distributed multiple kilograms of heroin in the Washington, D.C., area. On June 19, 2007, most of the co-conspirators were arrested in this investigation. More than $400,000 in U.S. currency, numerous firearms, several gallons of PCP, and a large amount of heroin was recovered. As a result of the investigation, approximately 32 individual defendants were charged for conspiracy to commit drug trafficking offenses.
On November 3, 2008, Glover was convicted of conspiracy to distribute and possession with intent to distribute over one kilogram of PCP. Also, on November 23, 2009, after a bench trial, Judge Hogan determined that the defendant’s Brentley Road residence in Temple Hills was used to facilitate the drug conspiracy and therefore forfeited the residence, and also required Glover to forfeit $1,050,000 in proceeds from his drug conspiracy. Hampton was convicted in October 2009 of conspiracy to distribute one kilogram or more of PCP.
In announcing the sentencings, U.S. Attorney Machen noted that this investigation and prosecution was an example of the dedication and resolve of law enforcement, including the FBI, the Metropolitan Police Department, the U.S. Marshals Service, and the U.S. Attorney’s Office to protect our community from those who would prey on it for profit.
Machen commended the work of the FBI agents from the Washington Field Office who investigated the case, as well as Metropolitan Police Department Detective Michael Eames, U.S. Marshals Service deputies Thomas O’Brien, Richard Kelly, and Brendan O’Neill, and U.S. Attorney’s Office Supervisory Paralegal James Mazzitelli, and Assistant U.S. Attorneys John Han and Anthony Scarpelli who investigated and prosecuted the case. This investigation was supported by the Organized Crime Drug Enforcement Task Force.
WASHINGTON - Lonnell Glover, 48, was sentenced today to life imprisonment for his role as leader of a Phencyclidine (PCP) and heroin distribution organization in the District of Columbia and Maryland. The Honorable Thomas F. Hogan, of the U.S. District Court for the District of Columbia, also entered a final order requiring him to forfeit $1,050,000 as proceeds from his drug conspiracy.
The sentencing was announced by United States Attorney Ronald C. Machen Jr., Shawn Henry, Assistant Director in Charge of the FBI’s Washington Field Office, Cathy L. Lanier, Chief of the Metropolitan Police Department, and Edwin D. Sloane, Acting U.S. Marshal for the District of Columbia. Judge Hogan described Glover as “the leader of the largest PCP ring ever in D.C. ”
On June 24, 2010, Glover, of Temple Hills, Md., was sentenced to 20 years’ imprisonment by the Honorable Ellen S. Huvelle, U.S. District Judge for the District of Columbia, for his leadership role in a separate cocaine trafficking organization. These sentences are to run consecutively.
Also today, Jerome Hampton, 51, from Upper Marlboro, Md. was sentenced to 10 years and one month of imprisonment for his role in assisting Glover to obtain multiple gallons of PCP from California, to the Washington D.C. area. Hampton is the owner of Custom Interiors in Upper Marlboro.
In this case, from 2005 to 2007, the FBI conducted a long-term investigation, including months of electronic surveillance, which revealed that Glover was one of the largest regional suppliers of PCP and heroin in the area.
Between February and June of 2007, Glover along with 25 other co-conspirators, obtained and distributed approximately 50 gallons of PCP in various locations in Washington, D.C. and Maryland. The PCP had a wholesale street value of more than $1,000,000.
Hampton permitted Glover to have multiple-gallon shipments of PCP sent to his business office, Custom Interiors. Glover would then retrieve the PCP from Hampton’s business, and Glover would pay Hampton several thousands of dollars for his assistance. Hampton also sold some of Glover’s PCP in the community.
During that same time period, Glover also obtained and distributed multiple kilograms of heroin in the Washington, D.C., area. On June 19, 2007, most of the co-conspirators were arrested in this investigation. More than $400,000 in U.S. currency, numerous firearms, several gallons of PCP, and a large amount of heroin was recovered. As a result of the investigation, approximately 32 individual defendants were charged for conspiracy to commit drug trafficking offenses.
On November 3, 2008, Glover was convicted of conspiracy to distribute and possession with intent to distribute over one kilogram of PCP. Also, on November 23, 2009, after a bench trial, Judge Hogan determined that the defendant’s Brentley Road residence in Temple Hills was used to facilitate the drug conspiracy and therefore forfeited the residence, and also required Glover to forfeit $1,050,000 in proceeds from his drug conspiracy. Hampton was convicted in October 2009 of conspiracy to distribute one kilogram or more of PCP.
In announcing the sentencings, U.S. Attorney Machen noted that this investigation and prosecution was an example of the dedication and resolve of law enforcement, including the FBI, the Metropolitan Police Department, the U.S. Marshals Service, and the U.S. Attorney’s Office to protect our community from those who would prey on it for profit.
Machen commended the work of the FBI agents from the Washington Field Office who investigated the case, as well as Metropolitan Police Department Detective Michael Eames, U.S. Marshals Service deputies Thomas O’Brien, Richard Kelly, and Brendan O’Neill, and U.S. Attorney’s Office Supervisory Paralegal James Mazzitelli, and Assistant U.S. Attorneys John Han and Anthony Scarpelli who investigated and prosecuted the case. This investigation was supported by the Organized Crime Drug Enforcement Task Force.
Distributor of Child Pornography Sentenced to 15 Years in Federal Prison
Defendant Believed to Have Possessed Largest Collection of Child Pornography Prosecuted in the District of Oregon
PORTLAND, OR—U.S. District Judge Robert E. Jones today sentenced Dewey S. Burr, 51, of Hillsboro, Oregon, to 15 years in federal prison, to be followed by a life-term of supervised release. As a condition of supervision, the defendant will have to register as a sex offender.
On March 19, 2010, the defendant pled guilty to one count of distribution of child pornography. The investigation stemmed from an undercover investigation by the Federal Bureau of Investigation (FBI), in June 2009, when an undercover FBI agent in Maryland signed on to a publicly available file sharing program as part of an ongoing child pornography investigation. The agent located an individual using the screen name “Skippy20” who was logged into the same file sharing program. “Skippy20” sent a message to the agent which stated, “Feel free to browse, and take what u like. I do not judge, please do not judge me.” The agent then browsed through “Skippy20’s” shared directories on his computer and observed a number of files depicting images of child pornography, as well as video titles that also appeared to be of child pornography. The agent selected 116 files and proceeded to download copies of them directly from “Skippy20.” A review of the files revealed images of prepubescent children, both male and female, engaged in sexually explicit conduct.
“Child pornography records the sexual exploitation and rape of children and those who distribute, collect, and view such images, like the defendant, continue to further victimize these children and actively encourage the illegal market for these images,” noted United States Attorney Dwight C. Holton. “Because of this, my office remains steadfast in its commitment to prosecute these cases to the fullest extent.”
On July 14, 2009, a federal search warrant was executed at defendant’s residence in Hillsboro, Oregon, and agents seized the defendant’s computer and data storage devices. During questioning, Burr admitted that he viewed and traded child pornography on a daily basis and had been collecting images for a very long time. After a forensic review of the defendant’s computer and digital media storage devices, agents estimated the defendant possessed over 1.1 million images of child pornography, including graphic images of male and female prepubescent children, as well as babies and toddlers being sexually abused.
The defendant’s collection of child pornography is believed to be the most extensive collection of child pornography that has been prosecuted through the United States Attorney’s Office in the District of Oregon.
In imposing the sentence, Judge Jones noted that a “very severe sentence” was warranted in this case because the defendant’s “conduct was very severe.”
The case was investigated by the Innocent Images Task Force, an FBI task force made up of federal and state law enforcement agents who investigate individuals who manufacture and traffic in child pornography and those who prey on children on-line. The case was prosecuted by Assistant U.S. Attorney Scott Kerin, the Deputy Chief of the U.S. Attorney’s Office Violent Crimes Unit.
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 Portland FBI’s Innocent Images Task Force includes representatives from the Hillsboro Police Department.
PORTLAND, OR—U.S. District Judge Robert E. Jones today sentenced Dewey S. Burr, 51, of Hillsboro, Oregon, to 15 years in federal prison, to be followed by a life-term of supervised release. As a condition of supervision, the defendant will have to register as a sex offender.
On March 19, 2010, the defendant pled guilty to one count of distribution of child pornography. The investigation stemmed from an undercover investigation by the Federal Bureau of Investigation (FBI), in June 2009, when an undercover FBI agent in Maryland signed on to a publicly available file sharing program as part of an ongoing child pornography investigation. The agent located an individual using the screen name “Skippy20” who was logged into the same file sharing program. “Skippy20” sent a message to the agent which stated, “Feel free to browse, and take what u like. I do not judge, please do not judge me.” The agent then browsed through “Skippy20’s” shared directories on his computer and observed a number of files depicting images of child pornography, as well as video titles that also appeared to be of child pornography. The agent selected 116 files and proceeded to download copies of them directly from “Skippy20.” A review of the files revealed images of prepubescent children, both male and female, engaged in sexually explicit conduct.
“Child pornography records the sexual exploitation and rape of children and those who distribute, collect, and view such images, like the defendant, continue to further victimize these children and actively encourage the illegal market for these images,” noted United States Attorney Dwight C. Holton. “Because of this, my office remains steadfast in its commitment to prosecute these cases to the fullest extent.”
On July 14, 2009, a federal search warrant was executed at defendant’s residence in Hillsboro, Oregon, and agents seized the defendant’s computer and data storage devices. During questioning, Burr admitted that he viewed and traded child pornography on a daily basis and had been collecting images for a very long time. After a forensic review of the defendant’s computer and digital media storage devices, agents estimated the defendant possessed over 1.1 million images of child pornography, including graphic images of male and female prepubescent children, as well as babies and toddlers being sexually abused.
The defendant’s collection of child pornography is believed to be the most extensive collection of child pornography that has been prosecuted through the United States Attorney’s Office in the District of Oregon.
In imposing the sentence, Judge Jones noted that a “very severe sentence” was warranted in this case because the defendant’s “conduct was very severe.”
The case was investigated by the Innocent Images Task Force, an FBI task force made up of federal and state law enforcement agents who investigate individuals who manufacture and traffic in child pornography and those who prey on children on-line. The case was prosecuted by Assistant U.S. Attorney Scott Kerin, the Deputy Chief of the U.S. Attorney’s Office Violent Crimes Unit.
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 Portland FBI’s Innocent Images Task Force includes representatives from the Hillsboro Police Department.
Spokane, Washington Man Pleads Guilty to Civil Rights Charges Related to Threats to Reproductive Health Services Clinic
WASHINGTON—Donald Hertz, 70, of Spokane, Washington pleaded guilty today in federal court in Spokane to one count of violating the Freedom of Access to Clinic Entrances (FACE) Act and one count of transmitting a threat in interstate commerce. The FACE Act makes it a federal crime to injure, intimidate or interfere with, by force or threat of force, employees of a facility that provides reproductive health services.
During the plea proceedings and in documents filed in court, Hertz admitted that he intentionally intimidated and interfered with employees of the Boulder Abortion Clinic, located in Boulder, Colo., because they were and had been providing reproductive health services. Specifically, on June 23, 2009, approximately three weeks after the murder of Dr. George Tiller, a Kansas physician who provided reproductive health services, Hertz anonymously contacted the Boulder Abortion Clinic and stated that two of his associates were driving to Boulder to kill members of a clinic employee’s family in order to make that employee suffer.
“Threats of violence against facilities that provide reproductive health services are illegal, and they will not be tolerated in this country,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The defendant’s conviction should send a clear message to others who would carry out similar criminal acts that they will be brought to justice and held accountable for their actions.”
Sentencing has been scheduled for Oct. 27, 2010. Hertz faces a maximum prison sentence of up to six years and a fine of up to $350,000.
The case was investigated by special agents from the Denver and Spokane Divisions of the FBI and deputies from the U.S. Marshals Service. The case is being prosecuted by the Civil Rights Division of the Justice Department with the assistance of the U.S. Attorney’s Office for the Eastern District of Washington.
During the plea proceedings and in documents filed in court, Hertz admitted that he intentionally intimidated and interfered with employees of the Boulder Abortion Clinic, located in Boulder, Colo., because they were and had been providing reproductive health services. Specifically, on June 23, 2009, approximately three weeks after the murder of Dr. George Tiller, a Kansas physician who provided reproductive health services, Hertz anonymously contacted the Boulder Abortion Clinic and stated that two of his associates were driving to Boulder to kill members of a clinic employee’s family in order to make that employee suffer.
“Threats of violence against facilities that provide reproductive health services are illegal, and they will not be tolerated in this country,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The defendant’s conviction should send a clear message to others who would carry out similar criminal acts that they will be brought to justice and held accountable for their actions.”
Sentencing has been scheduled for Oct. 27, 2010. Hertz faces a maximum prison sentence of up to six years and a fine of up to $350,000.
The case was investigated by special agents from the Denver and Spokane Divisions of the FBI and deputies from the U.S. Marshals Service. The case is being prosecuted by the Civil Rights Division of the Justice Department with the assistance of the U.S. Attorney’s Office for the Eastern District of Washington.
Former Contract Dispatcher Pleads Guilty to Accepting Kickbacks
NEW ORLEANS, LA—HULON EUGENE PARSONS, a/k/a/ Gene Parsons, age 60, of Hammond, Louisiana, a former employee of Boh Brothers Construction Company, Inc., pled guilty today before U.S. District Judge Ivan L. R. Lemelle to illegally accepting kickbacks relating to a prime contract with the United States, announced United States Attorney Jim Letten.
According to court documents, PARSONS’ former employer was awarded a subcontract to perform asphalt work on the Naval Air Station Joint Reserve Base Belle Chasse in Belle Chasse, Louisiana. The prime contract on that job was awarded by an agency of the Department of the Navy, the Naval Facilities Engineering Command Southeast. PARSONS was employed as a dispatcher in the trucking department and was responsible for awarding trucking business to various trucking subcontractors on that other jobs.
A principal in a trucking company, which sought and received work as a trucking subcontractor, reported to law enforcement that for a period of ten years, he dealt almost exclusively with PARSONS, who required him to pay kickbacks to obtain work as a subcontractor. He estimated that over a ten-year time span, he paid about $200,000 in kickbacks to PARSONS. In December, 2008, the individual decided he no longer was willing to pay kickbacks to PARSONS, so he stopped paying kickbacks and the amount and frequency with which he was awarded work by PARSONS decreased dramatically. Because Boh Brothers was the trucker’s only client, the decrease in work led him to having to dispose of several trucks and his company was on the verge of bankruptcy.
The trucker reported to the Federal Bureau of Investigation that he had been required to pay kickbacks to PARSONS in order to be awarded trucking work. The FBI provided cash to the trucker from which he paid three kickbacks to PARSONS. The trucker also recorded conversations between PARSONS and himself relating to those payments. In September, 2009, after the trucker had been paid $1,110 for work his company performed on the NAS Belle Chasse subcontract, he paid PARSONS a $300 kickback. PARSONS then awarded the trucker an additional $3,000 in trucking work on the Belle Chasse subcontract, and the trucker paid PARSONS an additional $600 in kickbacks. During the same time period, PARSONS awarded the trucker a total of $20,460 in trucking work on various jobs. Of that amount, the sum of $4,020 related to work on the Belle Chasse job.
During the court proceedings, it was noted that PARSONS previously had turned over to the Government a $50,000 check payable to the trucker as an immediate payment of restitution. The final amount of restitution owed will be determined by the court.
The defendant faces a maximum term of imprisonment of ten (10) years' imprisonment, a fine of $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. Sentencing has been scheduled for October 27, 2010.
Speaking to today’s conviction, U.S. Attorney Jim Letten stated:
“It is important that our citizens know that successful cases such as this one are often difficult if not impossible without the courageous assistance of individuals such as the trucking company executive who worked with the FBI to assist in addressing this corrupt scheme. Thanks to his efforts, this investigation continues.”
The case was investigated by the Federal Bureau of Investigation and the Louisiana State Police. The case was prosecuted by Assistant U.S. Attorney Eileen Gleason.
According to court documents, PARSONS’ former employer was awarded a subcontract to perform asphalt work on the Naval Air Station Joint Reserve Base Belle Chasse in Belle Chasse, Louisiana. The prime contract on that job was awarded by an agency of the Department of the Navy, the Naval Facilities Engineering Command Southeast. PARSONS was employed as a dispatcher in the trucking department and was responsible for awarding trucking business to various trucking subcontractors on that other jobs.
A principal in a trucking company, which sought and received work as a trucking subcontractor, reported to law enforcement that for a period of ten years, he dealt almost exclusively with PARSONS, who required him to pay kickbacks to obtain work as a subcontractor. He estimated that over a ten-year time span, he paid about $200,000 in kickbacks to PARSONS. In December, 2008, the individual decided he no longer was willing to pay kickbacks to PARSONS, so he stopped paying kickbacks and the amount and frequency with which he was awarded work by PARSONS decreased dramatically. Because Boh Brothers was the trucker’s only client, the decrease in work led him to having to dispose of several trucks and his company was on the verge of bankruptcy.
The trucker reported to the Federal Bureau of Investigation that he had been required to pay kickbacks to PARSONS in order to be awarded trucking work. The FBI provided cash to the trucker from which he paid three kickbacks to PARSONS. The trucker also recorded conversations between PARSONS and himself relating to those payments. In September, 2009, after the trucker had been paid $1,110 for work his company performed on the NAS Belle Chasse subcontract, he paid PARSONS a $300 kickback. PARSONS then awarded the trucker an additional $3,000 in trucking work on the Belle Chasse subcontract, and the trucker paid PARSONS an additional $600 in kickbacks. During the same time period, PARSONS awarded the trucker a total of $20,460 in trucking work on various jobs. Of that amount, the sum of $4,020 related to work on the Belle Chasse job.
During the court proceedings, it was noted that PARSONS previously had turned over to the Government a $50,000 check payable to the trucker as an immediate payment of restitution. The final amount of restitution owed will be determined by the court.
The defendant faces a maximum term of imprisonment of ten (10) years' imprisonment, a fine of $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. Sentencing has been scheduled for October 27, 2010.
Speaking to today’s conviction, U.S. Attorney Jim Letten stated:
“It is important that our citizens know that successful cases such as this one are often difficult if not impossible without the courageous assistance of individuals such as the trucking company executive who worked with the FBI to assist in addressing this corrupt scheme. Thanks to his efforts, this investigation continues.”
The case was investigated by the Federal Bureau of Investigation and the Louisiana State Police. The case was prosecuted by Assistant U.S. Attorney Eileen Gleason.
Investment Manager Pleads Guilty in Manhattan Federal Court to Several Hundred Million-Dollar Fraud
PREET BHARARA, the United States Attorney for the Southern District of New York, announced that PAUL GREENWOOD pled guilty today in Manhattan federal court to a six-count Indictment charging him with conspiracy, securities fraud, commodities fraud, wire fraud, and money laundering for running a fraudulent commodities trading and investment advisory scheme while a principal of WG Trading Company and WG Trading Investors. GREENWOOD, 63, of North Salem, New York, pled guilty before United States District Judge MIRIAM GOLDMAN CEDARBAUM.
According to the Indictment, other documents filed in Manhattan federal court, and statements made at the plea proceeding:
From at least 1996 through February 2009, GREENWOOD and others ran a fraudulent commodities trading and investment advisory scheme using an entity they controlled called WG Trading Investors. Through a marketer, GREENWOOD and others solicited $7.6 billion in investor funds on the understanding that they would invest the funds in a program called "equity index arbitrage," which they represented was a conservative trading strategy that had outperformed the results of the S&P 500 Index for more than 10 years. As a result, several institutional investors -- including charitable and university foundations, retirement and pension plans, and other institutions -- invested billions of dollars with GREENWOOD and others. Investors either became limited partners in WG Trading Company, LP, or received promissory notes issued by WG Trading Investors that the defendants represented would pay interest at a rate equal to the investment returns earned by a limited partner of WG Trading Company. Contrary to their representations to their investors, GREENWOOD and others misappropriated at least $331 million in investor funds. Among other things, GREENWOOD used the funds to construct his home, purchase expensive collectible items, and operate a horse farm. GREENWOOD and others also diverted investor funds to satisfy obligations on investments that were unrelated to the "equity index arbitrage" trading business.
GREENWOOD and others executed promissory notes in favor of WG Investors to, among other things, conceal trading losses and their misappropriation of investor funds. These promissory notes totaled approximately $554 million, of which approximately $293 million was GREENWOOD's. GREENWOOD and others also created and caused others to create false account statements that were sent to clients to reflect fictitious returns consistent with the returns that had been promised to those clients.
GREENWOOD pled guilty to each of the six charges in the Indictment, which carry the following maximum penalties:
Count Charge Penalty
• One Conspiracy 5 years in prison; fine of $250,000, or twice the gross gain or loss fromthe crime
• Two Securities Fraud 20 years in prison; fine of $5 million, or twice the gross gain or loss from the crime
• Three Commodities Fraud 10 years in prison; fine of $1 million, or twice the gross gain or loss from the crime
• Four Wire Fraud 20 years in prison; fine of $250,000, or twice the gross gain or loss from the crime
• Five Wire Fraud 20 years in prison; fine of $250,000, or twice the gross gain or loss from the crime
• Six Money Laundering 10 years in prison; fine of $250,000, or twice the gross gain or loss from the crime, or twice the amount of criminally derived property involved in the transaction
Pursuant to a plea agreement, GREENWOOD agreed to forfeit a sum of money equal to at least $331 million, which represents the amount of funds that GREENWOOD and others personally misappropriated and diverted to make an investment in Signal Apparel Company, Inc., which was not disclosed to investors.
On July 21, 2009, DEBORAH DUFFY, the former Chief Compliance Officer of WG Trading Company, pled guilty to conspiracy, securities fraud, and money laundering, for her role in the fraud scheme.
STEPHEN WALSH, another principal of WG Trading Company and WG Trading Investors, is charged with conspiracy, securities fraud, commodities fraud, wire fraud, and money laundering for his role in orchestrating and perpetrating the fraud scheme. WALSH allegedly used investor funds for himself and to make large cash payments to his ex-wife and, like GREENWOOD, executed $261 million worth of promissory notes in favor of WG Investors to conceal trading losses and the misappropriation of investor funds. The charges against WALSH remain pending, and he is presumed innocent unless and until proven guilty.
Mr. BHARARA praised the work of the Federal Bureau of Investigation, and thanked the United States Securities and Exchange Commission, the United States Commodity Futures Trading Commission, and the National Futures Association, for their assistance. He added that the investigation is continuing.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant United States Attorneys JOHN J. O’DONNELL, MARISSA MOLÉ, and AMY LESTER are in charge of the prosecution.
According to the Indictment, other documents filed in Manhattan federal court, and statements made at the plea proceeding:
From at least 1996 through February 2009, GREENWOOD and others ran a fraudulent commodities trading and investment advisory scheme using an entity they controlled called WG Trading Investors. Through a marketer, GREENWOOD and others solicited $7.6 billion in investor funds on the understanding that they would invest the funds in a program called "equity index arbitrage," which they represented was a conservative trading strategy that had outperformed the results of the S&P 500 Index for more than 10 years. As a result, several institutional investors -- including charitable and university foundations, retirement and pension plans, and other institutions -- invested billions of dollars with GREENWOOD and others. Investors either became limited partners in WG Trading Company, LP, or received promissory notes issued by WG Trading Investors that the defendants represented would pay interest at a rate equal to the investment returns earned by a limited partner of WG Trading Company. Contrary to their representations to their investors, GREENWOOD and others misappropriated at least $331 million in investor funds. Among other things, GREENWOOD used the funds to construct his home, purchase expensive collectible items, and operate a horse farm. GREENWOOD and others also diverted investor funds to satisfy obligations on investments that were unrelated to the "equity index arbitrage" trading business.
GREENWOOD and others executed promissory notes in favor of WG Investors to, among other things, conceal trading losses and their misappropriation of investor funds. These promissory notes totaled approximately $554 million, of which approximately $293 million was GREENWOOD's. GREENWOOD and others also created and caused others to create false account statements that were sent to clients to reflect fictitious returns consistent with the returns that had been promised to those clients.
GREENWOOD pled guilty to each of the six charges in the Indictment, which carry the following maximum penalties:
Count Charge Penalty
• One Conspiracy 5 years in prison; fine of $250,000, or twice the gross gain or loss fromthe crime
• Two Securities Fraud 20 years in prison; fine of $5 million, or twice the gross gain or loss from the crime
• Three Commodities Fraud 10 years in prison; fine of $1 million, or twice the gross gain or loss from the crime
• Four Wire Fraud 20 years in prison; fine of $250,000, or twice the gross gain or loss from the crime
• Five Wire Fraud 20 years in prison; fine of $250,000, or twice the gross gain or loss from the crime
• Six Money Laundering 10 years in prison; fine of $250,000, or twice the gross gain or loss from the crime, or twice the amount of criminally derived property involved in the transaction
Pursuant to a plea agreement, GREENWOOD agreed to forfeit a sum of money equal to at least $331 million, which represents the amount of funds that GREENWOOD and others personally misappropriated and diverted to make an investment in Signal Apparel Company, Inc., which was not disclosed to investors.
On July 21, 2009, DEBORAH DUFFY, the former Chief Compliance Officer of WG Trading Company, pled guilty to conspiracy, securities fraud, and money laundering, for her role in the fraud scheme.
STEPHEN WALSH, another principal of WG Trading Company and WG Trading Investors, is charged with conspiracy, securities fraud, commodities fraud, wire fraud, and money laundering for his role in orchestrating and perpetrating the fraud scheme. WALSH allegedly used investor funds for himself and to make large cash payments to his ex-wife and, like GREENWOOD, executed $261 million worth of promissory notes in favor of WG Investors to conceal trading losses and the misappropriation of investor funds. The charges against WALSH remain pending, and he is presumed innocent unless and until proven guilty.
Mr. BHARARA praised the work of the Federal Bureau of Investigation, and thanked the United States Securities and Exchange Commission, the United States Commodity Futures Trading Commission, and the National Futures Association, for their assistance. He added that the investigation is continuing.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant United States Attorneys JOHN J. O’DONNELL, MARISSA MOLÉ, and AMY LESTER are in charge of the prosecution.
Manassas Teacher Charged with Child Pornography Offenses
ALEXANDRIA, VA—Kevin Garfield Ricks, 50, of Federalsburg, Md., was charged in a criminal complaint today on charges of transporting and possessing child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Shawn Henry, Assistant Director in Charge of the FBI Washington Field Office; and Douglas W. Keen, Chief of Police for the City of Manassas, made the announcement. Ricks faces a minimum of five years and a maximum of 30 years in prison and up to a lifetime of supervision if convicted on all charges.
According to an affidavit filed with the complaint, between about September 2007 and his arrest on Feb. 18, 2010, the defendant was a teacher at a high school in Manassas, Va. After his arrest on local charges stemming from allegations that Ricks had sexual relations with a 16-year-old boy, Ricks’s laptop computer was searched. The search allegedly uncovered several images of child pornography. The affidavit alleges that further investigation revealed that Ricks brought the laptop from his residence in Virginia to his residence in Maryland when he returned on weekends.
The investigation into the case remains ongoing. Ricks is currently incarcerated in the Prince William County Adult Detention Center.
This case is being investigated by the FBI Washington Field Office and Manassas Police Department. Assistant United States Attorneys John Eisinger and Jerry Smagala are prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Shawn Henry, Assistant Director in Charge of the FBI Washington Field Office; and Douglas W. Keen, Chief of Police for the City of Manassas, made the announcement. Ricks faces a minimum of five years and a maximum of 30 years in prison and up to a lifetime of supervision if convicted on all charges.
According to an affidavit filed with the complaint, between about September 2007 and his arrest on Feb. 18, 2010, the defendant was a teacher at a high school in Manassas, Va. After his arrest on local charges stemming from allegations that Ricks had sexual relations with a 16-year-old boy, Ricks’s laptop computer was searched. The search allegedly uncovered several images of child pornography. The affidavit alleges that further investigation revealed that Ricks brought the laptop from his residence in Virginia to his residence in Maryland when he returned on weekends.
The investigation into the case remains ongoing. Ricks is currently incarcerated in the Prince William County Adult Detention Center.
This case is being investigated by the FBI Washington Field Office and Manassas Police Department. Assistant United States Attorneys John Eisinger and Jerry Smagala are prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Wednesday, July 21, 2010
Pensacola man sentenced to 360 months for distribution of child pornography
PENSACOLA, Fla. - Norman L. Morin, 47, of Pensacola, was sentenced today to 360 months in federal prison for distribution, receipt and possession of child pornography, following an investigation by U.S. Immigration and Customs Enforcement (ICE), the Pensacola Police Department, the Keene Police Department in New Hampshire and the North Florida Internet Crimes against Children Task Force.
Between Feb. 12 and March 9, Morin used a peer-to-peer file sharing program and email to receive and distribute child pornography over the Internet.
A search of Morin's Pensacola home in March disclosed that he was in possession of a computer, hard drive and thumb drive containing more than 3,000 images and over 300 videos of child pornography. A number of the images depicted children under the age of 12 and involved sadomasochistic conduct.
At the time of his arrest, Morin was on probation for two counts of lewd and lascivious assault upon a child under the age of 16.
"This case demonstrates that there are serious consequences for possessing and distributing illegal images of innocent children being sexually exploited and traumatized," said Susan McCormick, ICE special agent in charge of the Office of Homeland Security Investigations (HSI) in Tampa. "All children have an absolute right to grow up free from the fear of sexual exploitation. Through our partnerships with state, local and other federal law enforcement agencies, ICE will continue to police cyber space to investigate predators and ensure that they feel the full weight of the law."
The investigation that led to this case was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers, and foreign-national predators whose crimes make them deportable.
Launched in July 2003, ICE agents have arrested more than 12,800 individuals through Operation Predator. ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423. This hotline is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U. S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to 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 prosecuted by Assistant U.S. Attorneys Tiffany Eggers and Lorena Vollrath-Bueno.
Between Feb. 12 and March 9, Morin used a peer-to-peer file sharing program and email to receive and distribute child pornography over the Internet.
A search of Morin's Pensacola home in March disclosed that he was in possession of a computer, hard drive and thumb drive containing more than 3,000 images and over 300 videos of child pornography. A number of the images depicted children under the age of 12 and involved sadomasochistic conduct.
At the time of his arrest, Morin was on probation for two counts of lewd and lascivious assault upon a child under the age of 16.
"This case demonstrates that there are serious consequences for possessing and distributing illegal images of innocent children being sexually exploited and traumatized," said Susan McCormick, ICE special agent in charge of the Office of Homeland Security Investigations (HSI) in Tampa. "All children have an absolute right to grow up free from the fear of sexual exploitation. Through our partnerships with state, local and other federal law enforcement agencies, ICE will continue to police cyber space to investigate predators and ensure that they feel the full weight of the law."
The investigation that led to this case was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers, and foreign-national predators whose crimes make them deportable.
Launched in July 2003, ICE agents have arrested more than 12,800 individuals through Operation Predator. ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423. This hotline is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U. S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to 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 prosecuted by Assistant U.S. Attorneys Tiffany Eggers and Lorena Vollrath-Bueno.
Phoenix Licensed Gun Dealer Sentenced for Trafficking Firearms to California
PHOENIX — Shawn Michael Nealon, 38, of Mesa, Ariz., a federal firearms licensee and owner of Cavalry Arms Corp., was sentenced earlier this month to three years probation, 300 hours of community service, and a $10,000 fine after pleading guilty on Feb. 18 to illegal firearms sales by a federally licensed firearms dealer to an out-of-state resident.
Calvary Arms, of Gilbert, Ariz. and holding a separate federal firearms license (FFL), was also placed on probation and fined $10,000 resulting in a loss of license to sell, manufacture, and a prohibition from possessing firearms.
Nealon sold four firearms to an out-of-state resident, knowing that the individual, at the time of sale, resided in the state of Calif. and not in the state of Ariz. Calvary Arms also sold 36 firearms to that same individual from Calif., which included AK-47 and AR-15 type rifles, shotguns and handguns. This investigation was initiated by ATF’s Los Angeles Field Division and prosecuted in the state of Ariz.
“Today’s sentencing assures that neither Nealon nor his company, Calvary Arms, will be able to legally sell firearms,” said John A. Torres Special Agent in Charge (SAC) of the Los Angeles Field Division of ATF. “This is an example of solid investigative work by ATF agents targeting an individual responsible for illegally trafficking firearms into the state of California.”
ATF is the federal agency responsible for licensing persons engaged in manufacturing, importing, and dealing in firearms. It is critical for FFLs to comply with the Gun Control Act and regulations in order to assist law enforcement efforts, prevent the diversion of firearms from lawful commerce to the illegal market, ensure successful tracing of firearms, and to protect the public.
ATF has a responsibility to the public to revoke FFLs in cases of willful violations of the law and regulations, intentional disregard for regulatory requirements, or knowing participation in criminal acts.
Relevant Questions Answered by SAC John A. Torres
Reference the Shawn Nealon and Cavalry Arms investigation
What was the significance of this case for ATF?
The importance of this case for ATF was the fact that we were able to identify and then stop a firearms trafficker from selling firearms illegally to out of state residents. Statistically, a very small percentage of licensed firearms dealers go astray of the law. Mr. Nealon was one of that small group and through good police work, we were able to identify his illegal activities and take action. He was trafficking firearms to California and we were able to stop him from selling guns illegally, period. Specifically this case had an impact on diminishing one source of guns to the criminal element. Generally, it is good for the public to know that we are enforcing federal firearms laws currently on the books and that anyone supplying guns illegally to gang members or others will be held accountable.
How does the conviction of Shawn Nealon impact the “big picture” of firearms trafficking?
Anytime we can keep one firearms trafficker from violating federal law and from trafficking in firearms, we will do it. In this case, Mr. Nealon sold different types of firearms to a California resident illegally, thirty-six (36) high caliber firearms to be exact. These specific laws have been on the books for over 40 years and it was apparent he knew he was not complying with federal laws. He sold various firearms (AR-15’s and AK-47’s) to a Californian dozens of times. This needed to stop and we were able to do so.
Did this conviction have an impact on violent crime?
This conviction was a good thing for all law abiding citizens of the United States, as was the sentencing. Nealon is now a felon who can no longer possess or own firearms. He cannot continue in the business of being a Federally Licensed Firearms Dealer nor can he sell firearms at gun shows. The system worked and I applaud the efforts of the ATF agents who investigated Shawn Nealon’s illegal activities and the prosecutors who perfected the court case. They all had a role in keeping the citizens safe!
Anyone with information about firearms trafficking or the illegal possession of firearms is encouraged to call ATF at 1-800-ATF-GUNS (800-283-4867). Callers can remain anonymous.
Calvary Arms, of Gilbert, Ariz. and holding a separate federal firearms license (FFL), was also placed on probation and fined $10,000 resulting in a loss of license to sell, manufacture, and a prohibition from possessing firearms.
Nealon sold four firearms to an out-of-state resident, knowing that the individual, at the time of sale, resided in the state of Calif. and not in the state of Ariz. Calvary Arms also sold 36 firearms to that same individual from Calif., which included AK-47 and AR-15 type rifles, shotguns and handguns. This investigation was initiated by ATF’s Los Angeles Field Division and prosecuted in the state of Ariz.
“Today’s sentencing assures that neither Nealon nor his company, Calvary Arms, will be able to legally sell firearms,” said John A. Torres Special Agent in Charge (SAC) of the Los Angeles Field Division of ATF. “This is an example of solid investigative work by ATF agents targeting an individual responsible for illegally trafficking firearms into the state of California.”
ATF is the federal agency responsible for licensing persons engaged in manufacturing, importing, and dealing in firearms. It is critical for FFLs to comply with the Gun Control Act and regulations in order to assist law enforcement efforts, prevent the diversion of firearms from lawful commerce to the illegal market, ensure successful tracing of firearms, and to protect the public.
ATF has a responsibility to the public to revoke FFLs in cases of willful violations of the law and regulations, intentional disregard for regulatory requirements, or knowing participation in criminal acts.
Relevant Questions Answered by SAC John A. Torres
Reference the Shawn Nealon and Cavalry Arms investigation
What was the significance of this case for ATF?
The importance of this case for ATF was the fact that we were able to identify and then stop a firearms trafficker from selling firearms illegally to out of state residents. Statistically, a very small percentage of licensed firearms dealers go astray of the law. Mr. Nealon was one of that small group and through good police work, we were able to identify his illegal activities and take action. He was trafficking firearms to California and we were able to stop him from selling guns illegally, period. Specifically this case had an impact on diminishing one source of guns to the criminal element. Generally, it is good for the public to know that we are enforcing federal firearms laws currently on the books and that anyone supplying guns illegally to gang members or others will be held accountable.
How does the conviction of Shawn Nealon impact the “big picture” of firearms trafficking?
Anytime we can keep one firearms trafficker from violating federal law and from trafficking in firearms, we will do it. In this case, Mr. Nealon sold different types of firearms to a California resident illegally, thirty-six (36) high caliber firearms to be exact. These specific laws have been on the books for over 40 years and it was apparent he knew he was not complying with federal laws. He sold various firearms (AR-15’s and AK-47’s) to a Californian dozens of times. This needed to stop and we were able to do so.
Did this conviction have an impact on violent crime?
This conviction was a good thing for all law abiding citizens of the United States, as was the sentencing. Nealon is now a felon who can no longer possess or own firearms. He cannot continue in the business of being a Federally Licensed Firearms Dealer nor can he sell firearms at gun shows. The system worked and I applaud the efforts of the ATF agents who investigated Shawn Nealon’s illegal activities and the prosecutors who perfected the court case. They all had a role in keeping the citizens safe!
Anyone with information about firearms trafficking or the illegal possession of firearms is encouraged to call ATF at 1-800-ATF-GUNS (800-283-4867). Callers can remain anonymous.
Tuesday, July 20, 2010
31 arrested in San Diego-area ICE-led anti-gang crackdown
SAN DIEGO -U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) announced on July 19 the arrest of 31 men following a multi-agency enforcement operation targeting transnational gang members in the San Diego area. The week-long operation, which concluded on July 16, is the latest local effort as part of Operation Community Shield, an ongoing ICE HSI initiative to target, investigate and arrest gang members and gang associates operating in our local communities.
Of the 31 individuals taken into custody during the operation, 22 are members or associates of street gangs based in the San Diego, Vista, Escondido and San Marcos. Ten of those individuals are being prosecuted on federal or state criminal charges. The remaining 12 have been charged with administrative immigration violations and are being processed for removal from the United States.
In the course of conducting the operation, authorities also encountered and took custody of nine individuals, who were not documented gang members, but are suspected of criminal charges or administrative immigration violations.
In all, 12 of the 31 persons arrested during the enforcement action are being criminally prosecuted. The charges range from drug offenses and violation of a gang injunction to obstructing law enforcement and illegally reentering the United States after deportation. Four of those arrested are U.S. citizens. The remainder are foreign nationals from five countries, including Mexico, Iraqi, Thailand, Indonesia and the Philippines.
Among the five suspects charged with re-entry after deportation, two are known gang members from the "South Los" street gang in North County and the "Shelltown 38th Street" in San Diego. Both have violent criminal histories that include possession of a controlled substance, unlawful sexual intercourse with a minor and possession of a concealed weapon.
"Street gangs pose a growing public safety threat to San Diego-area communities," said Mike Carney, acting special agent in charge for ICE HSI in San Diego. "By working closely with our local law enforcement partners and taking deportable gang members off of the street, we are disrupting the gangs' operations and the accompanying scourge of crime and violence."
As part of Operation Community Shield, ICE partners with federal, state and local law enforcement agencies to target the significant public safety threat posed by transnational criminal street gangs. Since the initiative began in February 2005, ICE agents nationwide have arrested more than 18,000 gang members and associates linked to more than 900 different gangs.
The National Gang Unit at ICE identifies violent street gangs and develops intelligence on their membership, associates, criminal activities and international movements to deter, disrupt and dismantle gang operations by tracing and seizing cash, weapons and other assets derived from criminal seized activities.
Of the 31 individuals taken into custody during the operation, 22 are members or associates of street gangs based in the San Diego, Vista, Escondido and San Marcos. Ten of those individuals are being prosecuted on federal or state criminal charges. The remaining 12 have been charged with administrative immigration violations and are being processed for removal from the United States.
In the course of conducting the operation, authorities also encountered and took custody of nine individuals, who were not documented gang members, but are suspected of criminal charges or administrative immigration violations.
In all, 12 of the 31 persons arrested during the enforcement action are being criminally prosecuted. The charges range from drug offenses and violation of a gang injunction to obstructing law enforcement and illegally reentering the United States after deportation. Four of those arrested are U.S. citizens. The remainder are foreign nationals from five countries, including Mexico, Iraqi, Thailand, Indonesia and the Philippines.
Among the five suspects charged with re-entry after deportation, two are known gang members from the "South Los" street gang in North County and the "Shelltown 38th Street" in San Diego. Both have violent criminal histories that include possession of a controlled substance, unlawful sexual intercourse with a minor and possession of a concealed weapon.
"Street gangs pose a growing public safety threat to San Diego-area communities," said Mike Carney, acting special agent in charge for ICE HSI in San Diego. "By working closely with our local law enforcement partners and taking deportable gang members off of the street, we are disrupting the gangs' operations and the accompanying scourge of crime and violence."
As part of Operation Community Shield, ICE partners with federal, state and local law enforcement agencies to target the significant public safety threat posed by transnational criminal street gangs. Since the initiative began in February 2005, ICE agents nationwide have arrested more than 18,000 gang members and associates linked to more than 900 different gangs.
The National Gang Unit at ICE identifies violent street gangs and develops intelligence on their membership, associates, criminal activities and international movements to deter, disrupt and dismantle gang operations by tracing and seizing cash, weapons and other assets derived from criminal seized activities.
Architect Pleads Guilty to Possession of Child Pornography
HOUSTON—John Robert Dossey, 62, a Houston area architect, has pleaded guilty to possession of child pornography, United States Attorney José Angel Moreno announced today.
Dossey pleaded guilty today before United States District Judge David Hittner, who accepted the guilty plea, convicted Dossey of possessing child pornography and set sentencing for Oct. 12, 2010. Dossey has been and will remain in federal custody without bond since his arrest in March of 2010. The federal charges brought against Dossey are the result of an investigation by the FBI’s Innocence Lost Task Force which includes members of both the FBI and the Houston Police Department.
At today’s hearing, Dossey admitted to taking sexually charged photographs of 16-year-old girls, some of which are pornographic under federal law. Search warrants executed at Dossey’s home and office in March 2009 resulted in the seizure of computers. A forensic analysis of the computers by FBI’s Houston Regional Computer Forensic Laboratory found pornographic photographs of one of the minor girls.
Dossey faces a sentence of up to 10 years’ imprisonment for the possession of child pornography and a maximum fine of $250,000 as well as up to a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children including registration as a sex offender.
This case 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, Project Safe Childhood marshals federal, statem and local resources to better locate, apprehendm 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.
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
Dossey pleaded guilty today before United States District Judge David Hittner, who accepted the guilty plea, convicted Dossey of possessing child pornography and set sentencing for Oct. 12, 2010. Dossey has been and will remain in federal custody without bond since his arrest in March of 2010. The federal charges brought against Dossey are the result of an investigation by the FBI’s Innocence Lost Task Force which includes members of both the FBI and the Houston Police Department.
At today’s hearing, Dossey admitted to taking sexually charged photographs of 16-year-old girls, some of which are pornographic under federal law. Search warrants executed at Dossey’s home and office in March 2009 resulted in the seizure of computers. A forensic analysis of the computers by FBI’s Houston Regional Computer Forensic Laboratory found pornographic photographs of one of the minor girls.
Dossey faces a sentence of up to 10 years’ imprisonment for the possession of child pornography and a maximum fine of $250,000 as well as up to a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children including registration as a sex offender.
This case 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, Project Safe Childhood marshals federal, statem and local resources to better locate, apprehendm 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.
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
Monday, July 19, 2010
Myrtle Beach Woman Pleads Guilty to Bank Fraud Charges
COLUMBIA, SC—United States Attorney William N. Nettles stated today that Jill Diane Brennan, age 44, of Myrtle Beach, SC, pled guilty today in federal court in Florence, to conspiracy to commit bank fraud, a violation of Title 18, United States Code, Section 1349. United States District Judge Terry L. Wooten of Florence accepted the plea and will impose sentence after he has reviewed a presentence report prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Brennan was a Bank of America employee in Myrtle Beach, South Carolina. As such, she became acquainted with mortgage brokers employed by Dunes Mortgage as they came into Bank of America to conduct business. Brennan began to certify Bank of America Verification of Deposit forms for Dunes Mortgage employees either by fax or in person. This was not a part of Brennan’s official duties and was done as a favor to Dunes Mortgage employees. A Verification of Deposit form certifies that an individual has an account at the bank and has a certain amount of funds in that account. Brennan knew as a bank employee that Verification of Deposit forms were used in support of loan applications. She certified these forms sometimes without checking and other times with the knowledge that the person was added to the account of the Dunes Mortgage employee. Darin Epps previously pled guilty to related charges and admitted he added names to his personal account to make it appear that the borrowers had funds when in fact they did not. Brennan certified Verification of Deposit forms to Royal Bank of Canada - Centura on false loan packages valued at $1,364,500.00.
Mr. Nettles stated the maximum penalty Brennan can receive is a fine of $1,000,000.00 and/or imprisonment for 30 years, plus a special assessment of $100.00.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney William E. Day, II of the Florence office handled the case.
Evidence presented at the change of plea hearing established that Brennan was a Bank of America employee in Myrtle Beach, South Carolina. As such, she became acquainted with mortgage brokers employed by Dunes Mortgage as they came into Bank of America to conduct business. Brennan began to certify Bank of America Verification of Deposit forms for Dunes Mortgage employees either by fax or in person. This was not a part of Brennan’s official duties and was done as a favor to Dunes Mortgage employees. A Verification of Deposit form certifies that an individual has an account at the bank and has a certain amount of funds in that account. Brennan knew as a bank employee that Verification of Deposit forms were used in support of loan applications. She certified these forms sometimes without checking and other times with the knowledge that the person was added to the account of the Dunes Mortgage employee. Darin Epps previously pled guilty to related charges and admitted he added names to his personal account to make it appear that the borrowers had funds when in fact they did not. Brennan certified Verification of Deposit forms to Royal Bank of Canada - Centura on false loan packages valued at $1,364,500.00.
Mr. Nettles stated the maximum penalty Brennan can receive is a fine of $1,000,000.00 and/or imprisonment for 30 years, plus a special assessment of $100.00.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney William E. Day, II of the Florence office handled the case.
Allen Man Pleads Guilty to Abusive Sexual Contact with Young Girl
U.S. Attorney Brendan V. Johnson announced that Ralph Charles Bear Killer, age 59, of Allen, South Dakota, appeared before Chief U.S. District Judge Karen E. Schreier on July 16, 2010, and pled guilty to an information that charged him with abusive sexual contact of a child. The maximum penalty upon conviction is six years of imprisonment, a $250,000 fine, or both; and any term of supervised release. On or about between June 1, 2005, and December 31, 2005, Bear Killer engaged in sexual contact with a girl who had not reached the age of 12 years. The young girl was spending the night with the defendant's child when the acts occurred. The investigation was conducted by the Federal Bureau of Investigation, and the case is being prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri. A presentence investigation was ordered, and a sentencing date was set for October 8, 2010. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Houston Man Found Guilty of Bankruptcy Fraud and Mail Fraud by Running Internet Gold Scam
HOUSTON, TX—A federal jury has convicted a Houston man of 25 counts of bankruptcy fraud and mail fraud arising from a an Internet scam to sell gold.
The jury returned its verdicts this afternoon finding James Maceo Ramey, 63, of Houston, Texas guilty on all 25 counts alleged in an indictment relating to bankruptcy fraud and for operating a fraudulent Internet gold sales company in which victims lost in excess of $300,000. Seventeen counts of conviction were for conspiracy to commit bankruptcy fraud, concealment of assets, false oaths, and false declarations relating to the filings of 15 bankruptcies in various jurisdictions. The remaining eight counts of conviction arose from a mail fraud scheme arising from the operation by Ramey of Internet gold sales through auctions and The Manhattan Gold, Inc. website between August 2003 and May 2004.
Ramey’s convictions came after a five-day trial before U. S. District Judge Keith P. Ellison during which testimony and evidence proved Ramey, who had filed 15 bankruptcy cases between August 2001 and December 2005, made false statements regarding his address and residence and failed to state that he had repeatedly filed for bankruptcy in various jurisdictions. Witness testimony also established that Ramey intentionally ignored and refused to comply with orders issued by the bankruptcy court prohibiting him from filing additional bankruptcy cases.
During the period of the bankruptcy scheme, Mr. Ramey set up and operated a fraudulent Internet gold website using the U.S. Mail. Ramey set up a business in the name of Manhattan Gold, Inc. and solicited purchases of gold coins, including American Gold Eagles, Australian Kangaroos, South African Kruegerands, Canadian Maple Leafs, and Credit Suisse gold bars. Ramey concealed in his numerous bankruptcy petitions the more than $300,000 in income he received from the sale of gold, not to mention the fact that he never had gold to sell and did not provide gold nor a refund to any of the victims whom he had defrauded.
After five hours of deliberations, the jury returned its verdicts of guilty this afternoon. Sentencing is scheduled for Oct. 12, 2010. Ramey faces up to five years' imprisonment for of the 17 bankruptcy fraud convictions, and up to 20 years for the eight mail fraud convictions.
The investigation leading to the charges was conducted by the Houston offices of the FBI, the U.S. Trustee’s Office, and the United States Postal Inspection Service. Assistant United States Attorneys Quincy L. Ollison and Cedric L. Joubert prosecuted the case.
The jury returned its verdicts this afternoon finding James Maceo Ramey, 63, of Houston, Texas guilty on all 25 counts alleged in an indictment relating to bankruptcy fraud and for operating a fraudulent Internet gold sales company in which victims lost in excess of $300,000. Seventeen counts of conviction were for conspiracy to commit bankruptcy fraud, concealment of assets, false oaths, and false declarations relating to the filings of 15 bankruptcies in various jurisdictions. The remaining eight counts of conviction arose from a mail fraud scheme arising from the operation by Ramey of Internet gold sales through auctions and The Manhattan Gold, Inc. website between August 2003 and May 2004.
Ramey’s convictions came after a five-day trial before U. S. District Judge Keith P. Ellison during which testimony and evidence proved Ramey, who had filed 15 bankruptcy cases between August 2001 and December 2005, made false statements regarding his address and residence and failed to state that he had repeatedly filed for bankruptcy in various jurisdictions. Witness testimony also established that Ramey intentionally ignored and refused to comply with orders issued by the bankruptcy court prohibiting him from filing additional bankruptcy cases.
During the period of the bankruptcy scheme, Mr. Ramey set up and operated a fraudulent Internet gold website using the U.S. Mail. Ramey set up a business in the name of Manhattan Gold, Inc. and solicited purchases of gold coins, including American Gold Eagles, Australian Kangaroos, South African Kruegerands, Canadian Maple Leafs, and Credit Suisse gold bars. Ramey concealed in his numerous bankruptcy petitions the more than $300,000 in income he received from the sale of gold, not to mention the fact that he never had gold to sell and did not provide gold nor a refund to any of the victims whom he had defrauded.
After five hours of deliberations, the jury returned its verdicts of guilty this afternoon. Sentencing is scheduled for Oct. 12, 2010. Ramey faces up to five years' imprisonment for of the 17 bankruptcy fraud convictions, and up to 20 years for the eight mail fraud convictions.
The investigation leading to the charges was conducted by the Houston offices of the FBI, the U.S. Trustee’s Office, and the United States Postal Inspection Service. Assistant United States Attorneys Quincy L. Ollison and Cedric L. Joubert prosecuted the case.
Cahokia Man Sentenced in Child Pornography Case
A. Courtney Cox, United States Attorney for the Southern District of Illinois, announced today that on July 16, 2010, KEVIN T. DUNIGAN, age 54, of Cahokia, Illinois, was sentenced in East St. Louis, Illinois. DUNIGAN had after previously pled guilty on April 12, 2010, to a two-count indictment charging him with knowingly receiving child pornography and knowingly possessing child pornography. The violation took place throughout 2009 in Cahokia, Illinois. DUNIGAN was sentenced to 168 months’ imprisonment, followed by 10 years of supervised release. In addition, the court imposed restitution in the amount of $576 and a special assessment of $200.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed 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 investigation in this case was conducted by the Cahokia Police Department, and the Federal Bureau of Investigations Cybercrimes Task Force. The case was prosecuted by Assistant United States Attorney Nicole E. Gorovsky.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed 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 investigation in this case was conducted by the Cahokia Police Department, and the Federal Bureau of Investigations Cybercrimes Task Force. The case was prosecuted by Assistant United States Attorney Nicole E. Gorovsky.
Friday, July 16, 2010
United States v. Jason David Willis
BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Jason David Willis, 38, of Gasport, New York, pleaded guilty before Chief District Judge William M. Skretny to a felony charge of transportation of child pornography. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Charles B. Wydysh, who is handling the case, stated that on February 23, 2007, special agents of the Federal Bureau of Investigation (FBI) executed a search warrant issued by the Honorable H. Kenneth Schroeder, Jr., U.S. Magistrate Judge, authorizing the search of defendant's computer. A subsequent search of the computer by the Regional Computer Forensic Laboratory disclosed the presence of numerous child pornography images and files and disclosed that the defendant traded in these files over the Internet.
This case was brought as part of Project Safe Childhood. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea was the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge James Robertson, and the New York State Police, under the direction of Major Christopher Cummings.
Sentencing is scheduled for November 17, 2010, at 9:00 a.m., in Buffalo, New York, in front of Chief Judge Skretny.
Assistant U.S. Attorney Charles B. Wydysh, who is handling the case, stated that on February 23, 2007, special agents of the Federal Bureau of Investigation (FBI) executed a search warrant issued by the Honorable H. Kenneth Schroeder, Jr., U.S. Magistrate Judge, authorizing the search of defendant's computer. A subsequent search of the computer by the Regional Computer Forensic Laboratory disclosed the presence of numerous child pornography images and files and disclosed that the defendant traded in these files over the Internet.
This case was brought as part of Project Safe Childhood. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea was the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge James Robertson, and the New York State Police, under the direction of Major Christopher Cummings.
Sentencing is scheduled for November 17, 2010, at 9:00 a.m., in Buffalo, New York, in front of Chief Judge Skretny.
Pittston Man Charged as Part of an Ongoing Public Corruption Investigation Pleads Guilty
Federal officials announced today that a Pittston man charged as part of an ongoing public corruption investigation pled guilty yesterday in federal court.
Peter J. Smith, United States Attorney for the Middle District of Pennsylvania; Janice Fedarcyk, Special Agent in Charge, Federal Bureau of Investigation; Troy Stemen, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation Division; and Kathy Tighe, Inspector General of the U.S. Department of Education, Office of Inspector General, jointly announced that Barton Weidlich, age 41, of Pittston, Pennsylvania, pled guilty yesterday to obstruction of justice.
During the plea proceeding, Weidlich acknowledged that FBI agents obtained information that Weidlich may have received several no-bid county contracts in Luzerne County and made payments to one or more public officials for the award of the no-bid contracts. At the direction of the agents, a cooperating witness wore a recording device during several conversations with Weidlich.
Barton Weidlich further acknowledged that during the conversations, he took measures designed to thwart any possible recording of the conversations. Although Weidlich took these measures, portions of the conversations were still audible, including a statement by Weidlich indicating that it was necessary for the cooperating witness to lie on the stand, referring to the witness’ appearance at the Federal Grand Jury empaneled in Scranton.
Weidlich also admitted that on September 28, 2009, he approached the cooperating witness and asked, repeatedly, whether the cooperating witness was “wearing a wire” during their previous meetings.
On October 1, 2009, Weidlich made threatening statements referring to the cooperating witness’ cooperation with law enforcement. The statements were made with the intent to influence the cooperating witness’ testimony before the Federal Grand Jury and obstruct and impede the official proceeding.
The charge carries a maximum 20-year term of imprisonment, a fine of $250,000 and up to three years of supervised release.
This case is part of an ongoing investigation by the Federal Bureau of Investigation, the Internal Revenue Service and the United States Department of Education and is being prosecuted by a team of federal prosecutors led by Senior Litigation Counsel Gordon Zubrod and includes Assistant U.S. Attorneys William Houser, Michael Consiglio, Amy Phillips, John Gurganus, and Criminal Division Chief Christian Fisanick. Anyone with information is asked to call the public corruption task force toll free at 1-866-996-4320.
Peter J. Smith, United States Attorney for the Middle District of Pennsylvania; Janice Fedarcyk, Special Agent in Charge, Federal Bureau of Investigation; Troy Stemen, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation Division; and Kathy Tighe, Inspector General of the U.S. Department of Education, Office of Inspector General, jointly announced that Barton Weidlich, age 41, of Pittston, Pennsylvania, pled guilty yesterday to obstruction of justice.
During the plea proceeding, Weidlich acknowledged that FBI agents obtained information that Weidlich may have received several no-bid county contracts in Luzerne County and made payments to one or more public officials for the award of the no-bid contracts. At the direction of the agents, a cooperating witness wore a recording device during several conversations with Weidlich.
Barton Weidlich further acknowledged that during the conversations, he took measures designed to thwart any possible recording of the conversations. Although Weidlich took these measures, portions of the conversations were still audible, including a statement by Weidlich indicating that it was necessary for the cooperating witness to lie on the stand, referring to the witness’ appearance at the Federal Grand Jury empaneled in Scranton.
Weidlich also admitted that on September 28, 2009, he approached the cooperating witness and asked, repeatedly, whether the cooperating witness was “wearing a wire” during their previous meetings.
On October 1, 2009, Weidlich made threatening statements referring to the cooperating witness’ cooperation with law enforcement. The statements were made with the intent to influence the cooperating witness’ testimony before the Federal Grand Jury and obstruct and impede the official proceeding.
The charge carries a maximum 20-year term of imprisonment, a fine of $250,000 and up to three years of supervised release.
This case is part of an ongoing investigation by the Federal Bureau of Investigation, the Internal Revenue Service and the United States Department of Education and is being prosecuted by a team of federal prosecutors led by Senior Litigation Counsel Gordon Zubrod and includes Assistant U.S. Attorneys William Houser, Michael Consiglio, Amy Phillips, John Gurganus, and Criminal Division Chief Christian Fisanick. Anyone with information is asked to call the public corruption task force toll free at 1-866-996-4320.
Lubbock Man Indicted on Bank Theft Charge
LUBBOCK, TX—A federal grand jury in Lubbock, Texas has indicted Lubbock resident Darrell Eugene Cartwright, 29, on one count of bank theft, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Cartwright was arrested on June 18, 2010, on a charge outlined in a related federal criminal complaint and released on a personal recognizance bond.
According to the affidavit filed with the criminal complaint, on June 17, 2010, the Slaton, Texas Police Department advised the FBI that approximately $36,000 in cash had been stolen from the Citizens Bank in Slaton. They advised that the money had disappeared from a table in the bank. Cartwright, who had been working in the bank performing contract maintenance, was approached at his home later by law enforcement. He directed them to the missing cash. Cartwright advised that he found the money underneath the liner of a trash can in the men’s room of the bank.
An indictment is an accusation by a grand jury and a defendant is presumed innocent unless proven otherwise. Upon conviction, however, the bank theft count carries a maximum statutory sentence of 10 years in prison and a $250,000 fine.
The case is being investigated by the FBI, the Slaton Police Department, and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, is in charge of the prosecution.
According to the affidavit filed with the criminal complaint, on June 17, 2010, the Slaton, Texas Police Department advised the FBI that approximately $36,000 in cash had been stolen from the Citizens Bank in Slaton. They advised that the money had disappeared from a table in the bank. Cartwright, who had been working in the bank performing contract maintenance, was approached at his home later by law enforcement. He directed them to the missing cash. Cartwright advised that he found the money underneath the liner of a trash can in the men’s room of the bank.
An indictment is an accusation by a grand jury and a defendant is presumed innocent unless proven otherwise. Upon conviction, however, the bank theft count carries a maximum statutory sentence of 10 years in prison and a $250,000 fine.
The case is being investigated by the FBI, the Slaton Police Department, and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, is in charge of the prosecution.
Federal Indictment Charges San Angelo, Texas Man with Producing Child Pornography
SAN ANGELO, TX—A federal grand jury returned an indictment today charging Warren Elton Wittcop, 51, of San Angelo, Texas, with eight counts of production of child pornography, announced U.S. Attorney James T. Jacks, of the Northern District of Texas.
According to a federal criminal complaint filed last month, law enforcement executed a search warrant at Wittcop’s residence early last month and discovered sexually explicit images of an underage female stored on a memory card hidden in the inside band of a hat located in Wittcop’s bedroom. Investigators were able to determine that images located on the memory card were produced in Wittcop’s residence. Wittcop is also charged in the indictment with producing a sexually explicit image of a second underage female.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Wittcop faces a penalty of not less than 15 years’ imprisonment, nor more than 30 years’ imprisonment, and a $250,000 fine per count. In addition, if convicted, Wittcop could be ordered to serve a lifetime of supervised release.
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 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 is being investigated by the FBI; the Metro-East Cybercrimes and Analysis Task Force, East St. Louis, Illinois; the Troy, Illinois Police Department; the Tom Green County Sheriff’s Office; and the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
According to a federal criminal complaint filed last month, law enforcement executed a search warrant at Wittcop’s residence early last month and discovered sexually explicit images of an underage female stored on a memory card hidden in the inside band of a hat located in Wittcop’s bedroom. Investigators were able to determine that images located on the memory card were produced in Wittcop’s residence. Wittcop is also charged in the indictment with producing a sexually explicit image of a second underage female.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Wittcop faces a penalty of not less than 15 years’ imprisonment, nor more than 30 years’ imprisonment, and a $250,000 fine per count. In addition, if convicted, Wittcop could be ordered to serve a lifetime of supervised release.
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 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 is being investigated by the FBI; the Metro-East Cybercrimes and Analysis Task Force, East St. Louis, Illinois; the Troy, Illinois Police Department; the Tom Green County Sheriff’s Office; and the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Former U.S. Army Contracting Official Sentenced to 42 Months in Prison for Bribery and Unlawful Salary Supplementation in Off-post Housing Scheme
WASHINGTON – A former U.S. Army contracting official was sentenced today to 42 months in prison in connection with two schemes to solicit more than $30,000 in bribes and other payments from an Egyptian businessman in Kuwait, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.
William Rondell Collins, 46, of Bartlett, Tenn., was also ordered by U.S. District Court Judge Liam O’Grady to forfeit $5,775, to pay a fine of $1,725 and to serve three years of supervised release following his prison term. Collins pleaded guilty on April 21, 2010, to one count of bribery and one count of unlawful salary supplementation. Collins was originally charged in an indictment filed on Feb. 18, 2010.
Collins was employed by the U.S. Army Area Support Group-Kuwait (ASG-KU). The ASG-KU is responsible for maintaining Camp Arifjan, a U.S. military installation providing support for operations in Afghanistan, Iraq and other locations in the Southwest Asian Theater. As part of those responsibilities, the ASG-KU maintains an off-post housing office, located in downtown Kuwait City, which procures, leases and supervises off-post housing for government employees and military service members stationed at Camp Arifjan. According to court documents, Collins worked in the ASG-KU’s off-post housing office as a housing specialist responsible for supervising private contractors and procuring off-post apartment rentals.
According to court documents, Collins agreed to submit an inflated off-post apartment lease to the United States for approval and then split with an Egyptian businessman more than $23,100 that resulted from the inflated lease payments. According to sentencing documents, Collins also solicited approximately $8,400 from the Egyptian businessman between July and December 2009 and agreed in return to provide advice and preferential treatment in connection with a fixed-price U.S. government contract awarded to the Egyptian businessman’s company. The contract was for maintenance services for off-post housing supervised by Collins and the ASG-KU off-post housing office.
The case was prosecuted by Special Assistant U.S. Attorney Ryan S. Faulconer and Fraud Section Senior Trial Attorney James J. Graham. The investigation was conducted by the Defense Criminal Investigative Service, the FBI, the U.S. Army Criminal Investigative Division, and members of the National Procurement Fraud Task Force (NPFTF) and the International Contract Corruption Task Force (ICCTF).
The NPFTF, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The ICCTF is a joint law enforcement agency task force that seeks to detect, investigate, and dismantle corruption and contract fraud resulting from U.S. Overseas Contingency Operations worldwide, including in Kuwait, Afghanistan and Iraq.
William Rondell Collins, 46, of Bartlett, Tenn., was also ordered by U.S. District Court Judge Liam O’Grady to forfeit $5,775, to pay a fine of $1,725 and to serve three years of supervised release following his prison term. Collins pleaded guilty on April 21, 2010, to one count of bribery and one count of unlawful salary supplementation. Collins was originally charged in an indictment filed on Feb. 18, 2010.
Collins was employed by the U.S. Army Area Support Group-Kuwait (ASG-KU). The ASG-KU is responsible for maintaining Camp Arifjan, a U.S. military installation providing support for operations in Afghanistan, Iraq and other locations in the Southwest Asian Theater. As part of those responsibilities, the ASG-KU maintains an off-post housing office, located in downtown Kuwait City, which procures, leases and supervises off-post housing for government employees and military service members stationed at Camp Arifjan. According to court documents, Collins worked in the ASG-KU’s off-post housing office as a housing specialist responsible for supervising private contractors and procuring off-post apartment rentals.
According to court documents, Collins agreed to submit an inflated off-post apartment lease to the United States for approval and then split with an Egyptian businessman more than $23,100 that resulted from the inflated lease payments. According to sentencing documents, Collins also solicited approximately $8,400 from the Egyptian businessman between July and December 2009 and agreed in return to provide advice and preferential treatment in connection with a fixed-price U.S. government contract awarded to the Egyptian businessman’s company. The contract was for maintenance services for off-post housing supervised by Collins and the ASG-KU off-post housing office.
The case was prosecuted by Special Assistant U.S. Attorney Ryan S. Faulconer and Fraud Section Senior Trial Attorney James J. Graham. The investigation was conducted by the Defense Criminal Investigative Service, the FBI, the U.S. Army Criminal Investigative Division, and members of the National Procurement Fraud Task Force (NPFTF) and the International Contract Corruption Task Force (ICCTF).
The NPFTF, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The ICCTF is a joint law enforcement agency task force that seeks to detect, investigate, and dismantle corruption and contract fraud resulting from U.S. Overseas Contingency Operations worldwide, including in Kuwait, Afghanistan and Iraq.
New Data Reveal 400% Increase in Substance Abuse Treatment Admissions for People Abusing Prescription Drugs
WASHINGTON—Today, Gil Kerlikowske, Director of National Drug Control Policy (ONDCP), and Thomas McLellan, Deputy Director of ONDCP, joined Peter Delany, Director of Substance Abuse and Mental Health Services Administration's (SAMHSA) Office of Applied Studies, and Michele M. Leonhart, Acting Administrator of the Drug Enforcement Administration (DEA), to release a new study showing a 400 percent increase in substance abuse treatment admissions for prescription pain relievers. Governor Jack Markell of Delaware and Chris Kennedy Lawford were also in attendance.
The study, Substance Abuse Treatment Admissions Involving Abuse of Pain Relievers: 1998-2008, conducted by the SAMHSA, and based on the agency's Treatment Episode Data Set (TEDS) reveals a 400 percent increase between 1998 and 2008 of substance abuse treatment admissions for those aged 12 and over reporting abuse of prescription pain relievers. The increase in the percentage of admissions abusing pain relievers spans every age, gender, race, ethnicity, education, employment level, and region. The study also shows a more than tripling of pain reliever abuse among patients who needed treatment for opioid dependence.
"The TEDS data released today highlights how serious a threat to public health we face from the abuse of prescription drugs", said Gil Kerlikowske, National Drug Policy Director. "The spikes in prescription drug abuse rates captured by this study are dramatic, pervasive, and deeply disturbing."
"The non-medical use of prescription pain relievers is now the second-most prevalent form of illicit drug use in the Nation, and its tragic consequences are seen in substance abuse treatment centers and hospital emergency departments throughout our Nation" said SAMHSA Administrator Pamela S. Hyde, J.D. "This public health threat demands that we follow the President's National Drug Control Strategy's call for an all-out effort to raise awareness of this risk and the critical importance of properly using, storing, and disposing of these powerful drugs."
"The data released today is alarming and shows the tremendous damage being caused by prescription drug abuse all across this country each and every day," said DEA Acting Administrator Michele M. Leonhart. "The effective enforcement of laws regulating the distribution of controlled substances, coupled with their lawful disposal are essential parts of a comprehensive strategy to reduce drug abuse. DEA is committed to being part of the solution, however it will take all of us working together to prevent the tragedies that inevitably come with drug abuse."
"This rise in prescription drug abuse is no surprise to the doctors and law enforcement professionals who see its effects in our communities," said Governor Markell. "We have been focused on making sure that health care professionals have the best tools available to detect and prevent this kind of abuse before it ruins lives. Delaware's new legislation to authorize a prescription monitoring program is one of those tools and an important component of the President's National Drug Control Strategy."
"Our national prescription drug abuse problem cannot be ignored. I have worked in the treatment field for the last 35 years, and recent trends regarding the extent of prescription drug abuse are startling," said A. Thomas McLellan, Deputy Director of ONDCP. "We must work with prescribers, the pharmaceutical industry, law enforcement, and families to help us fight this scourge."
The National Drug Control Strategy, released in May, outlines several steps to address what Director Kerlikowske calls "the fastest-growing drug problem in the United States"—prescription drug abuse.
They include:
•Increasing prescription drug return, take-back, and disposal programs. Prescription drugs that are commonly abused are often found in the family medicine cabinet, and individuals should get rid of unused or expired prescription drugs to prevent diversion and abuse.
•Educating physicians about opiate painkiller prescribing. The Administration's FY 2011 Budget request proposes funding for a program to train prescribers on how to instruct patients in the use and proper disposal of painkillers, to observe signs of dependence, and to use prescription drug monitoring programs to detect when an individual is going from doctor to doctor in search of prescriptions (also called "doctor shopping").
•Expanding prescription drug monitoring programs. Currently, these programs are operating in 34 states. The Administration supports establishment of these programs in every state, and is seeking to ensure new and existing monitoring programs effectively use the data they acquire and share information across state lines.
•Assisting states in addressing doctor shopping and pill mills. Criminal organizations have established thriving businesses of transporting people to states with little regulation to obtain prescription drugs from multiple doctors or from pill mills, which distribute drugs indiscriminately. Federal, state, local, and tribal authorities are working together to address this problem.
•Driving illegal Internet pharmacies out of business.
•Cracking down on rogue pain clinics that do not follow appropriate prescription practices.
The National Drug Control Strategy provides a blueprint for reducing prescription drug abuse. Parents, law enforcement, the medical community, and all levels of government have a role to play in reducing prescription drug abuse.
Later today, Director Kerlikowske will travel to Delaware to attend Governor Markell's bill signing for the Delaware Prescription Drug Monitoring Program.
The study, Substance Abuse Treatment Admissions Involving Abuse of Pain Relievers: 1998-2008, conducted by the SAMHSA, and based on the agency's Treatment Episode Data Set (TEDS) reveals a 400 percent increase between 1998 and 2008 of substance abuse treatment admissions for those aged 12 and over reporting abuse of prescription pain relievers. The increase in the percentage of admissions abusing pain relievers spans every age, gender, race, ethnicity, education, employment level, and region. The study also shows a more than tripling of pain reliever abuse among patients who needed treatment for opioid dependence.
"The TEDS data released today highlights how serious a threat to public health we face from the abuse of prescription drugs", said Gil Kerlikowske, National Drug Policy Director. "The spikes in prescription drug abuse rates captured by this study are dramatic, pervasive, and deeply disturbing."
"The non-medical use of prescription pain relievers is now the second-most prevalent form of illicit drug use in the Nation, and its tragic consequences are seen in substance abuse treatment centers and hospital emergency departments throughout our Nation" said SAMHSA Administrator Pamela S. Hyde, J.D. "This public health threat demands that we follow the President's National Drug Control Strategy's call for an all-out effort to raise awareness of this risk and the critical importance of properly using, storing, and disposing of these powerful drugs."
"The data released today is alarming and shows the tremendous damage being caused by prescription drug abuse all across this country each and every day," said DEA Acting Administrator Michele M. Leonhart. "The effective enforcement of laws regulating the distribution of controlled substances, coupled with their lawful disposal are essential parts of a comprehensive strategy to reduce drug abuse. DEA is committed to being part of the solution, however it will take all of us working together to prevent the tragedies that inevitably come with drug abuse."
"This rise in prescription drug abuse is no surprise to the doctors and law enforcement professionals who see its effects in our communities," said Governor Markell. "We have been focused on making sure that health care professionals have the best tools available to detect and prevent this kind of abuse before it ruins lives. Delaware's new legislation to authorize a prescription monitoring program is one of those tools and an important component of the President's National Drug Control Strategy."
"Our national prescription drug abuse problem cannot be ignored. I have worked in the treatment field for the last 35 years, and recent trends regarding the extent of prescription drug abuse are startling," said A. Thomas McLellan, Deputy Director of ONDCP. "We must work with prescribers, the pharmaceutical industry, law enforcement, and families to help us fight this scourge."
The National Drug Control Strategy, released in May, outlines several steps to address what Director Kerlikowske calls "the fastest-growing drug problem in the United States"—prescription drug abuse.
They include:
•Increasing prescription drug return, take-back, and disposal programs. Prescription drugs that are commonly abused are often found in the family medicine cabinet, and individuals should get rid of unused or expired prescription drugs to prevent diversion and abuse.
•Educating physicians about opiate painkiller prescribing. The Administration's FY 2011 Budget request proposes funding for a program to train prescribers on how to instruct patients in the use and proper disposal of painkillers, to observe signs of dependence, and to use prescription drug monitoring programs to detect when an individual is going from doctor to doctor in search of prescriptions (also called "doctor shopping").
•Expanding prescription drug monitoring programs. Currently, these programs are operating in 34 states. The Administration supports establishment of these programs in every state, and is seeking to ensure new and existing monitoring programs effectively use the data they acquire and share information across state lines.
•Assisting states in addressing doctor shopping and pill mills. Criminal organizations have established thriving businesses of transporting people to states with little regulation to obtain prescription drugs from multiple doctors or from pill mills, which distribute drugs indiscriminately. Federal, state, local, and tribal authorities are working together to address this problem.
•Driving illegal Internet pharmacies out of business.
•Cracking down on rogue pain clinics that do not follow appropriate prescription practices.
The National Drug Control Strategy provides a blueprint for reducing prescription drug abuse. Parents, law enforcement, the medical community, and all levels of government have a role to play in reducing prescription drug abuse.
Later today, Director Kerlikowske will travel to Delaware to attend Governor Markell's bill signing for the Delaware Prescription Drug Monitoring Program.
Medicare Fraud Strike Force Charges 94 Doctors, Health Care Company Owners, Executives and Others for More Than $251 Million in Alleged False Billing
WASHINGTON – Ninety-four people have been charged for their alleged participation in schemes to collectively submit more than $251 million in false claims to the Medicare program in the continuing operation of the Medicare Fraud Strike Force in Miami; Baton Rouge, La.; Brooklyn, N.Y.; Detroit and Houston, announced Attorney General Eric Holder, Department of Health and Human Services (HHS) Secretary Kathleen Sebelius, FBI Director Robert Mueller and Daniel R. Levinson, Inspector General of HHS. The operation announced today is the largest federal health care fraud takedown since Medicare Fraud Strike Force operations began in 2007.
The joint DOJ-HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing. More than 360 law enforcement agents from the FBI, HHS-Office of Inspector General (HHS-OIG), multiple Medicaid Fraud Control Units, and other state and local law enforcement agencies participated in today’s operation.
"Our continued Strike Force operations reflect the unprecedented commitment that inspired the creation of the Health Care Fraud Prevention and Enforcement Action Team in May 2009," said Attorney General Holder. "With today’s arrests, we’re putting would-be criminals on notice: Health care fraud is no longer a safe bet. The federal government is working aggressively – and collaboratively – to pursue health care criminals around the country and to bring these offenders to justice."
"Today’s arrests send a strong message that attempts to defraud Medicare will not be tolerated," said Secretary Sebelius. "With the help of new tools in the Affordable Care Act, including stiffer penalties and better information sharing, we will continue to work with our federal, state and local partners to stamp out Medicare fraud and protect beneficiaries and the American taxpayer."
Charges were unsealed today against 94 individuals who are accused of various Medicare fraud-related offenses, including conspiracy to defraud the Medicare program, criminal false claims, violations of the anti-kickback statutes and money laundering. The charges are based on a variety of fraud schemes, including physical therapy and occupational therapy schemes, home health care schemes, HIV infusion fraud schemes and durable medical equipment (DME) schemes. Thirty-six defendants charged in these schemes have been arrested in Miami, New York, Baton Rouge and Detroit and additional arrests are expected throughout the day.
According to the court documents, the defendants charged today participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and oftentimes, never provided. In many cases, indictments and complaints allege that beneficiaries accepted cash kickbacks in return for allowing providers to submit forms saying they had received the treatments that, in reality, were unnecessary or never provided. Collectively, the doctors, health care company owners, executives and others charged in the indictments and complaints are accused of conspiring to submit more than $251 million in false claims to the Medicare program.
In Miami, 24 defendants were charged for allegedly participating in various fraud schemes that led to approximately $103 million in false billings. According to court documents, the fraud schemes involved fraudulent billing for HIV infusion services, home health care and physical therapy services, DME and pharmaceutical medications. The defendants include owners and operators of companies, doctors, nurses, and patient recruiters, as well as a medical biller who is alleged to have billed approximately $49 million for fraudulent services.
Thirty-one defendants were charged in Baton Rouge for various schemes allegedly involving fraudulent claims for DME totaling approximately $32 million. The defendants include the owners and operators of nine different purported medical services companies and four doctors, 14 patient recruiters and other individuals who allegedly worked at the medical services companies.
Twenty-two defendants were charged in Brooklyn for their alleged participation in schemes to submit fraudulent claims totaling approximately $78 million. These fraud schemes involved false billing for physical and occupational therapy and DME. The defendants include the owners and operators, patient recruiters and employees at three different purported medical clinics and a medical equipment company, as well as three doctors. According to court documents, six of the defendants charged are serial Medicare beneficiaries, who purported to seek medical treatment from numerous providers, causing the submission of multiple claims to Medicare for purported medical treatments.
In Detroit, 11 defendants were charged for their alleged roles in schemes to submit fraudulent claims to Medicare for home health services, nerve conduction tests and injection and infusion therapy sessions. The schemes involved a total alleged fraud of approximately $35 million and five different purported medical services companies.
Four defendants were also charged in Houston for their alleged roles in a $3 million scheme to submit fraudulent claims for DME.
In addition to making arrests around the country, law enforcement agents are executing search warrants in connection with ongoing health care fraud investigations.
"Today’s charges allege attempts by individuals to defraud the Medicare program of $251 million," said FBI Director Robert S. Mueller, III. "Countless Americans rely on Medicare for their well-being, and the FBI, working in conjunction with our federal agency partners, is resolute in its commitment to stop those who would illegally manipulate the system."
"Today’s arrests illustrate how health care fraud schemes can replicate virally and migrate rapidly across communities," said Daniel R. Levinson, Inspector General of HHS. "To combat this fraud, the government’s response must also be swift, agile, and organized – a HEAT initiative goal which is well illustrated by today’s Strike Force actions."
The Strike Force operations in Miami, Baton Rouge, Brooklyn, Detroit and Houston are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The HEAT task force, co-chaired by Acting Deputy Attorney General Gary G. Grindler and Deputy Secretary Bill Corr, is made up of top-level law enforcement agents, prosecutors and staff from both departments and their operating divisions. In the May 2009 announcement, Attorney General Holder and Secretary Sebelius announced the expansion of the Strike Force into Detroit and Houston to build upon existing partnerships between the agencies in a heightened effort to reduce fraud and recover taxpayer dollars. In December 2009, Strike Force operations were expanded to Brooklyn, Baton Rouge and Tampa.
Since its inception in March 2007 with Phase One in South Florida and continuing through its most recent expansion into Tampa, Fla., the Strike Force has obtained indictments of more than 810 individuals and organizations that collectively have billed the Medicare program for more than $1.85 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The cases announced today are being prosecuted and investigated by Strike Force teams comprised of attorneys from the Fraud Section in the Justice Department’s Criminal Division and from the U.S. Attorneys’ Offices for the Southern District of Florida, the Eastern District of New York, the Middle District of Louisiana, the Eastern District of Michigan and the Southern District of Texas; and agents from the FBI and HHS-OIG.
The Railroad Retirement Board Office of Inspector General and the Office of Personnel Management-Office of Inspector General also participated in today’s operation.
An indictment is merely an allegation, and defendants are presumed innocent until and unless proven guilty.
The joint DOJ-HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing. More than 360 law enforcement agents from the FBI, HHS-Office of Inspector General (HHS-OIG), multiple Medicaid Fraud Control Units, and other state and local law enforcement agencies participated in today’s operation.
"Our continued Strike Force operations reflect the unprecedented commitment that inspired the creation of the Health Care Fraud Prevention and Enforcement Action Team in May 2009," said Attorney General Holder. "With today’s arrests, we’re putting would-be criminals on notice: Health care fraud is no longer a safe bet. The federal government is working aggressively – and collaboratively – to pursue health care criminals around the country and to bring these offenders to justice."
"Today’s arrests send a strong message that attempts to defraud Medicare will not be tolerated," said Secretary Sebelius. "With the help of new tools in the Affordable Care Act, including stiffer penalties and better information sharing, we will continue to work with our federal, state and local partners to stamp out Medicare fraud and protect beneficiaries and the American taxpayer."
Charges were unsealed today against 94 individuals who are accused of various Medicare fraud-related offenses, including conspiracy to defraud the Medicare program, criminal false claims, violations of the anti-kickback statutes and money laundering. The charges are based on a variety of fraud schemes, including physical therapy and occupational therapy schemes, home health care schemes, HIV infusion fraud schemes and durable medical equipment (DME) schemes. Thirty-six defendants charged in these schemes have been arrested in Miami, New York, Baton Rouge and Detroit and additional arrests are expected throughout the day.
According to the court documents, the defendants charged today participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and oftentimes, never provided. In many cases, indictments and complaints allege that beneficiaries accepted cash kickbacks in return for allowing providers to submit forms saying they had received the treatments that, in reality, were unnecessary or never provided. Collectively, the doctors, health care company owners, executives and others charged in the indictments and complaints are accused of conspiring to submit more than $251 million in false claims to the Medicare program.
In Miami, 24 defendants were charged for allegedly participating in various fraud schemes that led to approximately $103 million in false billings. According to court documents, the fraud schemes involved fraudulent billing for HIV infusion services, home health care and physical therapy services, DME and pharmaceutical medications. The defendants include owners and operators of companies, doctors, nurses, and patient recruiters, as well as a medical biller who is alleged to have billed approximately $49 million for fraudulent services.
Thirty-one defendants were charged in Baton Rouge for various schemes allegedly involving fraudulent claims for DME totaling approximately $32 million. The defendants include the owners and operators of nine different purported medical services companies and four doctors, 14 patient recruiters and other individuals who allegedly worked at the medical services companies.
Twenty-two defendants were charged in Brooklyn for their alleged participation in schemes to submit fraudulent claims totaling approximately $78 million. These fraud schemes involved false billing for physical and occupational therapy and DME. The defendants include the owners and operators, patient recruiters and employees at three different purported medical clinics and a medical equipment company, as well as three doctors. According to court documents, six of the defendants charged are serial Medicare beneficiaries, who purported to seek medical treatment from numerous providers, causing the submission of multiple claims to Medicare for purported medical treatments.
In Detroit, 11 defendants were charged for their alleged roles in schemes to submit fraudulent claims to Medicare for home health services, nerve conduction tests and injection and infusion therapy sessions. The schemes involved a total alleged fraud of approximately $35 million and five different purported medical services companies.
Four defendants were also charged in Houston for their alleged roles in a $3 million scheme to submit fraudulent claims for DME.
In addition to making arrests around the country, law enforcement agents are executing search warrants in connection with ongoing health care fraud investigations.
"Today’s charges allege attempts by individuals to defraud the Medicare program of $251 million," said FBI Director Robert S. Mueller, III. "Countless Americans rely on Medicare for their well-being, and the FBI, working in conjunction with our federal agency partners, is resolute in its commitment to stop those who would illegally manipulate the system."
"Today’s arrests illustrate how health care fraud schemes can replicate virally and migrate rapidly across communities," said Daniel R. Levinson, Inspector General of HHS. "To combat this fraud, the government’s response must also be swift, agile, and organized – a HEAT initiative goal which is well illustrated by today’s Strike Force actions."
The Strike Force operations in Miami, Baton Rouge, Brooklyn, Detroit and Houston are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The HEAT task force, co-chaired by Acting Deputy Attorney General Gary G. Grindler and Deputy Secretary Bill Corr, is made up of top-level law enforcement agents, prosecutors and staff from both departments and their operating divisions. In the May 2009 announcement, Attorney General Holder and Secretary Sebelius announced the expansion of the Strike Force into Detroit and Houston to build upon existing partnerships between the agencies in a heightened effort to reduce fraud and recover taxpayer dollars. In December 2009, Strike Force operations were expanded to Brooklyn, Baton Rouge and Tampa.
Since its inception in March 2007 with Phase One in South Florida and continuing through its most recent expansion into Tampa, Fla., the Strike Force has obtained indictments of more than 810 individuals and organizations that collectively have billed the Medicare program for more than $1.85 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The cases announced today are being prosecuted and investigated by Strike Force teams comprised of attorneys from the Fraud Section in the Justice Department’s Criminal Division and from the U.S. Attorneys’ Offices for the Southern District of Florida, the Eastern District of New York, the Middle District of Louisiana, the Eastern District of Michigan and the Southern District of Texas; and agents from the FBI and HHS-OIG.
The Railroad Retirement Board Office of Inspector General and the Office of Personnel Management-Office of Inspector General also participated in today’s operation.
An indictment is merely an allegation, and defendants are presumed innocent until and unless proven guilty.
Former Tennessee Inmate Charged with Filing False Tax Returns While in Jail
WASHINGTON – A Tennessee grand jury has indicted Walter Allen Johnson, aka "Beau" Johnson, of Sevierville, Tenn., for filing false claims against the United States as well as conspiring to defraud the United States, the Justice Department and Internal Revenue Service (IRS) announced today.
The indictment alleges that Johnson, while incarcerated with the Tennessee Department of Corrections, conspired to defraud the United States by submitting false tax returns claiming refunds on behalf of inmates from February of 2006 through January of 2007. The indictment further alleges that Johnson collected social security numbers from inmates and recruited other inmates to collect social security numbers for him. According to the indictment, Johnson used those social security numbers to file false income tax forms with the IRS in the names of inmates, claiming refunds to which the inmates were not entitled.
The indictment alleges that Johnson and his co-conspirators collected approximately 88 U.S. Treasury checks as a result of the returns that were filed, totaling approximately $58,651.80.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Johnson faces a maximum of 65 years in prison and a maximum fine of $3 million.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Michelle M. Petersen and Kathryn B. Ward.
The indictment alleges that Johnson, while incarcerated with the Tennessee Department of Corrections, conspired to defraud the United States by submitting false tax returns claiming refunds on behalf of inmates from February of 2006 through January of 2007. The indictment further alleges that Johnson collected social security numbers from inmates and recruited other inmates to collect social security numbers for him. According to the indictment, Johnson used those social security numbers to file false income tax forms with the IRS in the names of inmates, claiming refunds to which the inmates were not entitled.
The indictment alleges that Johnson and his co-conspirators collected approximately 88 U.S. Treasury checks as a result of the returns that were filed, totaling approximately $58,651.80.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Johnson faces a maximum of 65 years in prison and a maximum fine of $3 million.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Michelle M. Petersen and Kathryn B. Ward.
Thursday, July 15, 2010
Blue Springs Man Pleads Guilty to Child Pornography Charge
KANSAS CITY, MO—Beth Phillips, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., pleaded guilty in federal court today to receiving child pornography over the Internet.
Michael Sottilare, 43, of Blue Springs, pleaded guilty before U.S. District Judge Greg Kays to the charge contained in a June 2, 2009, federal indictment.
By pleading guilty today, Sottilare admitted that he received child pornography over the Internet on March 23, 2008.
An undercover FBI agent in Maryland, using file-sharing software, conducted an Internet search on Nov. 19, 2007, using a term commonly associated with child pornography. Sottilare’s computer was sharing image files that included child pornography, and the undercover FBI agent downloaded a sample of six child pornography images, five of which matched identified victims of child pornography.
While executing a search warrant at Sottilare’s residence, law enforcement officers recovered a computer with two hard drives. They also recovered more than 100 CDs and DVDs from a locked safe. A forensic examination of Sottilare’s electronic media uncovered more than 700 images of child pornography and more than 100 videos of child pornography. Many of the images, both photos and videos, were of prepubescents. There were multiple images of bondage and other sadistic images, including a few movies.
Links to several apparent child pornography websites were found in the “favorite places” file of Sottilare’s AOL archives.
Under federal statutes, Sottilare is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 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.
his case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Federal Bureau of Investigation.
Michael Sottilare, 43, of Blue Springs, pleaded guilty before U.S. District Judge Greg Kays to the charge contained in a June 2, 2009, federal indictment.
By pleading guilty today, Sottilare admitted that he received child pornography over the Internet on March 23, 2008.
An undercover FBI agent in Maryland, using file-sharing software, conducted an Internet search on Nov. 19, 2007, using a term commonly associated with child pornography. Sottilare’s computer was sharing image files that included child pornography, and the undercover FBI agent downloaded a sample of six child pornography images, five of which matched identified victims of child pornography.
While executing a search warrant at Sottilare’s residence, law enforcement officers recovered a computer with two hard drives. They also recovered more than 100 CDs and DVDs from a locked safe. A forensic examination of Sottilare’s electronic media uncovered more than 700 images of child pornography and more than 100 videos of child pornography. Many of the images, both photos and videos, were of prepubescents. There were multiple images of bondage and other sadistic images, including a few movies.
Links to several apparent child pornography websites were found in the “favorite places” file of Sottilare’s AOL archives.
Under federal statutes, Sottilare is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 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.
his case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Federal Bureau of Investigation.
Former Edison Little League Coach Pleads Guilty to Possession of Child Pornography
NEWARK, NJ—A former Edison, New Jersey Little League coach pleaded guilty today to possession of child pornography, United States Attorney Paul J. Fishman announced.
Everett Abney, 42, of Edison, pleaded guilty before United States District Judge Stanley R. Chesler to an Information charging him with possessing the criminal images.
According to documents filed in this case and statements made in Newark federal court:
Abney was a coach for Edison’s Midtown National Little League at the time federal agents interviewed him at his home February 4, 2009. During a review of Abney’s computer subsequent to the interview, law enforcement officers found several hundred images of child pornography, including multiple depictions of prepubescent minors.
At his plea, Abney admitted that for approximately a year and a half, he regularly searched the Internet for images of child pornography, using sexually suggestive terms such as “pedo,” “teen,” and “youngteen,” to find the images. He downloaded the images from the Internet or through file-sharing software and saved them to his computer.
Judge Chesler continued Abney’s $100,000 bail until sentencing, scheduled for October 14, 2010. A condition of Abney’s bail is that he have no contact with minors. At sentencing, Abney faces up to 10 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited the Federal Bureau of Investigation, under the direction of Special Agent in Charge Michael B. Ward in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant United States Attorney Lee Vartan of the U.S. Attorney’s Office Criminal Division in Newark.
Everett Abney, 42, of Edison, pleaded guilty before United States District Judge Stanley R. Chesler to an Information charging him with possessing the criminal images.
According to documents filed in this case and statements made in Newark federal court:
Abney was a coach for Edison’s Midtown National Little League at the time federal agents interviewed him at his home February 4, 2009. During a review of Abney’s computer subsequent to the interview, law enforcement officers found several hundred images of child pornography, including multiple depictions of prepubescent minors.
At his plea, Abney admitted that for approximately a year and a half, he regularly searched the Internet for images of child pornography, using sexually suggestive terms such as “pedo,” “teen,” and “youngteen,” to find the images. He downloaded the images from the Internet or through file-sharing software and saved them to his computer.
Judge Chesler continued Abney’s $100,000 bail until sentencing, scheduled for October 14, 2010. A condition of Abney’s bail is that he have no contact with minors. At sentencing, Abney faces up to 10 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited the Federal Bureau of Investigation, under the direction of Special Agent in Charge Michael B. Ward in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant United States Attorney Lee Vartan of the U.S. Attorney’s Office Criminal Division in Newark.
Former Missouri County Chief Deputy Charged with Civil Rights Violations
WASHINGTON – A federal grand jury has charged Vernon Wilson, former Chief Deputy of the Washington County, Mo., Sheriff’s Department, in a six-count indictment stemming from four separate incidents in which Wilson allegedly assaulted inmates or caused the assault of inmates in the Washington County Jail in the summer and fall of 2005, the Justice Department today announced. The indictment charges Wilson with felony civil rights violations and with making false statements to the F BI.
According to the indictment, on July 27, 2005, Wilson caused an inmate, identified in the indictment by the initials J.T., to be assaulted when he placed J.T. in a cellblock that housed an inmate whom Wilson knew was dangerous and would likely assault J.T. On Aug. 14, 2005, Wilson repeatedly slapped another inmate, identified in the indictment by the initials J.G., causing J.G.’s head to hit a concrete wall, according to the indictment. The indictment also alleges that on Sept. 29, 2005, Wilson caused an inmate, identified in the indictment by the initials G.G., to be assaulted when he allowed G.G. to remain in a cellblock that housed the same inmate who had assaulted J.T. several weeks before. The indictment further alleges that Wilson repeatedly slapped an inmate, identified in the indictment by the initials W.H., causing W.H.’s head to hit a concrete wall. The indictment also alleges that the assaults resulted in bodily injury to all four inmates.
The indictment also alleges that Wilson lied to a special agent of the FBI.
"Law enforcement officers are the first line of defense for the U.S. Constitution," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Civil Rights Division and the U.S. Department of Justice will aggressively prosecute any person who abuses his or her official authority by deliberately subjecting persons in his or her custody to physical assaults."
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
If convicted, Wilson faces a maximum penalty of 40 years in prison for the civil rights charges and 10 years in prison for the false statement charges.
On July 14, 2010, Wilson’s daughter, Valeria Wilson Jackson, a former corrections officer at Washington County Jail, who worked under her father at the time of these alleged offenses, pleaded guilty in U.S. District Court in St. Louis to one count of obstruction of justice for intentionally misleading the FBI about her role in one of the assaults at the jail.
This case is being investigated by the FBI’s St. Louis office and is being prosecuted by Civil Rights Division Trial Attorneys Patricia Sumner and Fara Gold.
According to the indictment, on July 27, 2005, Wilson caused an inmate, identified in the indictment by the initials J.T., to be assaulted when he placed J.T. in a cellblock that housed an inmate whom Wilson knew was dangerous and would likely assault J.T. On Aug. 14, 2005, Wilson repeatedly slapped another inmate, identified in the indictment by the initials J.G., causing J.G.’s head to hit a concrete wall, according to the indictment. The indictment also alleges that on Sept. 29, 2005, Wilson caused an inmate, identified in the indictment by the initials G.G., to be assaulted when he allowed G.G. to remain in a cellblock that housed the same inmate who had assaulted J.T. several weeks before. The indictment further alleges that Wilson repeatedly slapped an inmate, identified in the indictment by the initials W.H., causing W.H.’s head to hit a concrete wall. The indictment also alleges that the assaults resulted in bodily injury to all four inmates.
The indictment also alleges that Wilson lied to a special agent of the FBI.
"Law enforcement officers are the first line of defense for the U.S. Constitution," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Civil Rights Division and the U.S. Department of Justice will aggressively prosecute any person who abuses his or her official authority by deliberately subjecting persons in his or her custody to physical assaults."
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
If convicted, Wilson faces a maximum penalty of 40 years in prison for the civil rights charges and 10 years in prison for the false statement charges.
On July 14, 2010, Wilson’s daughter, Valeria Wilson Jackson, a former corrections officer at Washington County Jail, who worked under her father at the time of these alleged offenses, pleaded guilty in U.S. District Court in St. Louis to one count of obstruction of justice for intentionally misleading the FBI about her role in one of the assaults at the jail.
This case is being investigated by the FBI’s St. Louis office and is being prosecuted by Civil Rights Division Trial Attorneys Patricia Sumner and Fara Gold.
Andover Man Charged with Concealing Lottery Ticket Proceeds from Bankruptcy Creditors
BOSTON, MA—An Andover man, formerly of Wakefield, was charged today in federal court with two counts of bankruptcy fraud for concealing his interest in two $1 million winning lottery scratch tickets, as well as one count of filing a false tax return.
United States Attorney Carmen M. Ortiz, Susan Dukes, Special Agent in Charge of the Internal Revenue Service - Criminal Investigations, Boston Field Office and James C. Burrell, Acting Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office announced today that JAMES S. GREGSON, 40, of Andover, and formerly of Wakefield, has been charged in an Information with two counts of bankruptcy fraud and one count of filing a false tax return.
The Information alleges that in 2002 GREGSON had purchased a $1 million winning lottery ticket that paid $35,000 annually after-taxes, and in 2002 had purchased the right to at least 15 $35,000 annual payments from a second $1 million winning lottery ticket, but that GREGSON failed to disclose either in his 2005 bankruptcy filing. In addition, the Information alleges that when his bankruptcy trustee received information about one of the lottery tickets, GREGSON testified falsely under oath that his parents had funded the purchase of the first ticket when in fact GREGSON himself had done so. Finally, the Information alleges that GREGSON filed a 2003 federal income tax return which falsely stated his total taxable income as $0, when in fact it was at least $452,332.69 during that year.
If convicted on these charges, GREGSON faces up to five years' imprisonment, to be followed by three years of supervised release, and a $250,000 fine on each of the bankruptcy fraud charges; and three years' imprisonment, to be followed by one year of supervised release and a $100,000 fine on the false tax return count.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Carmen M. Ortiz, Susan Dukes, Special Agent in Charge of the Internal Revenue Service - Criminal Investigations, Boston Field Office and James C. Burrell, Acting Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office announced today that JAMES S. GREGSON, 40, of Andover, and formerly of Wakefield, has been charged in an Information with two counts of bankruptcy fraud and one count of filing a false tax return.
The Information alleges that in 2002 GREGSON had purchased a $1 million winning lottery ticket that paid $35,000 annually after-taxes, and in 2002 had purchased the right to at least 15 $35,000 annual payments from a second $1 million winning lottery ticket, but that GREGSON failed to disclose either in his 2005 bankruptcy filing. In addition, the Information alleges that when his bankruptcy trustee received information about one of the lottery tickets, GREGSON testified falsely under oath that his parents had funded the purchase of the first ticket when in fact GREGSON himself had done so. Finally, the Information alleges that GREGSON filed a 2003 federal income tax return which falsely stated his total taxable income as $0, when in fact it was at least $452,332.69 during that year.
If convicted on these charges, GREGSON faces up to five years' imprisonment, to be followed by three years of supervised release, and a $250,000 fine on each of the bankruptcy fraud charges; and three years' imprisonment, to be followed by one year of supervised release and a $100,000 fine on the false tax return count.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mt. Pleasant Woman Charged with Wire Fraud
COLUMBIA, SC—United States Attorney William N. Nettles stated today that Amelia Ackerman, age 55, of Mt. Pleasant, was charged in a five-count indictment with wire fraud in violation 18 U.S.C. § 1343. The indictment alleges that from 2006 to 2008, Ackerman, a comptroller at a company in Charleston, embezzled more than $340,000 from her employer by means of interstate wire transfers. U.S. Attorney Nettles stated the maximum penalty that Amelia Ackerman could receive is a fine of $250,000 and/or imprisonment of five years.
Mr. Nettles stated that the case was investigated by agents of the Federal Bureau of Investigation (FBI) and that he has assigned the case to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
Mr. Nettles stated that the case was investigated by agents of the Federal Bureau of Investigation (FBI) and that he has assigned the case to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
Detroit-Area Physical Therapist and Physician’s Assistant Plead Guilty in Medicare Home Health Fraud Scheme
Patient Recruiter Sentenced to Two Years in Prison for Participating in Separate Fraud Scheme
WASHINGTON—Detroit-area residents Faisal Chaudry and Guy Ross pleaded guilty today in U.S. District Court in Detroit for their participation in a fraudulent Medicare home health scheme, the Departments of Justice and Health and Human Services (HHS) announced. Also today, a Detroit-area patient recruiter was sentenced to two years in prison for his role in a separate Medicare fraud scheme.
Chaudry, 32, pleaded guilty before U.S. District Court Judge Denise Page Hood in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Ross, 49, pleaded guilty before Judge Hood to one count of conspiracy to receive health care kickbacks. At sentencing, scheduled for Oct. 21, 2010, Chaudry faces a maximum penalty of 10 years in prison and a $250,000 fine; Ross faces a maximum penalty of five years in prison and a $250,000 fine.
According to the plea documents, Chaudry was a physical therapy assistant who worked for All American Home Care Inc., and other affiliated entities. All American purported to provide home health services, including physical therapy services, to Medicare beneficiaries. Chaudry admitted that he signed documents, including therapy visit and revisit notes, that purported to document home health visits to Medicare beneficiaries. The documents were then used by All American to bill Medicare. Chaudry admitted in court documents that a large majority of these home health visits never occurred. Chaudry also admitted that he was paid approximately $45 by the owners of All American for each document he signed. According to court documents, Chaudry signed documents used to justify approximately $917,394 in home health claims by All American for patients he either never saw or for whom home health services were medically unnecessary. Chaudry admitted that he knew the files he helped falsify were used to justify fraudulent billings to Medicare.
Ross, a medical assistant, admitted that he received kickbacks from the owners and operators of Patient Choice Home Healthcare Inc., and All American in exchange for referring home health patients to those entities. Ross admitted to receiving $500 per patient, paid either by check or in cash, in exchange for providing co-conspirator Mohammed Shahab with Medicare beneficiary information for various patients he recruited. After paying the kickbacks to Ross, Shahab, an owner of Patient Choice and All-American, billed Medicare for home health visits purportedly made to the beneficiaries recruited by Ross. During the course of the conspiracy, Ross referred 21 patients to Patient Choice and All American. Shahab pleaded guilty in February 2010 to health care fraud charges in connection with this case.
According to court documents, Ross also admitted to engaging in a similar scheme with a home health agency called Visiting Nurses Services (VNS), also a home health agency that purportedly provided physical therapy services. Ross admitted he accepted money in exchange for providing patient referrals to VNS. According to court documents, Ross referred approximately 80 patients to VNS and VNS submitted claims for $300,050 as a result of those referrals. In total, Ross’s kickback arrangements with these home health agencies resulted in $472,623 in improper benefits paid by Medicare to the home health agencies.
In a separate health care fraud case in Detroit, patient recruiter Dwight Armstrong was sentenced by U.S. District Court Judge Lawrence Zatkoff to serve two years in prison and three years of supervised release. Armstrong was also ordered to pay $250,000 in restitution. Armstrong, 32, pleaded guilty on April 8, 2010, to one count of conspiracy to commit health care fraud. According to the plea documents, Armstrong began recruiting patients for Careplus LLC in approximately June 2008. Armstrong admitted that he paid kickbacks to the Medicare beneficiaries he recruited, and later transported, to Careplus using money provided by the owners and operators of Careplus. Armstrong admitted he kept part of the funds he received as a kickback for referring the Medicare beneficiaries he recruited. According to court documents, the owners and operators of Careplus typically paid $100-$150 per patient Armstrong recruited, with Armstrong retaining $50-$75 of that amount as a kickback for the referral. Armstrong also admitted he instructed the beneficiaries he recruited, based on instructions from the owners and operators of Careplus, to claim they had certain symptoms to trigger medically unnecessary tests.
Today’s guilty pleas and sentencing were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
These cases were prosecuted by Assistant Chief John K. Neal and Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section. The cases were investigated by the FBI and HHS-OIG, and were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 635 individuals who collectively have falsely billed the Medicare program for more than $1.4 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
WASHINGTON—Detroit-area residents Faisal Chaudry and Guy Ross pleaded guilty today in U.S. District Court in Detroit for their participation in a fraudulent Medicare home health scheme, the Departments of Justice and Health and Human Services (HHS) announced. Also today, a Detroit-area patient recruiter was sentenced to two years in prison for his role in a separate Medicare fraud scheme.
Chaudry, 32, pleaded guilty before U.S. District Court Judge Denise Page Hood in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Ross, 49, pleaded guilty before Judge Hood to one count of conspiracy to receive health care kickbacks. At sentencing, scheduled for Oct. 21, 2010, Chaudry faces a maximum penalty of 10 years in prison and a $250,000 fine; Ross faces a maximum penalty of five years in prison and a $250,000 fine.
According to the plea documents, Chaudry was a physical therapy assistant who worked for All American Home Care Inc., and other affiliated entities. All American purported to provide home health services, including physical therapy services, to Medicare beneficiaries. Chaudry admitted that he signed documents, including therapy visit and revisit notes, that purported to document home health visits to Medicare beneficiaries. The documents were then used by All American to bill Medicare. Chaudry admitted in court documents that a large majority of these home health visits never occurred. Chaudry also admitted that he was paid approximately $45 by the owners of All American for each document he signed. According to court documents, Chaudry signed documents used to justify approximately $917,394 in home health claims by All American for patients he either never saw or for whom home health services were medically unnecessary. Chaudry admitted that he knew the files he helped falsify were used to justify fraudulent billings to Medicare.
Ross, a medical assistant, admitted that he received kickbacks from the owners and operators of Patient Choice Home Healthcare Inc., and All American in exchange for referring home health patients to those entities. Ross admitted to receiving $500 per patient, paid either by check or in cash, in exchange for providing co-conspirator Mohammed Shahab with Medicare beneficiary information for various patients he recruited. After paying the kickbacks to Ross, Shahab, an owner of Patient Choice and All-American, billed Medicare for home health visits purportedly made to the beneficiaries recruited by Ross. During the course of the conspiracy, Ross referred 21 patients to Patient Choice and All American. Shahab pleaded guilty in February 2010 to health care fraud charges in connection with this case.
According to court documents, Ross also admitted to engaging in a similar scheme with a home health agency called Visiting Nurses Services (VNS), also a home health agency that purportedly provided physical therapy services. Ross admitted he accepted money in exchange for providing patient referrals to VNS. According to court documents, Ross referred approximately 80 patients to VNS and VNS submitted claims for $300,050 as a result of those referrals. In total, Ross’s kickback arrangements with these home health agencies resulted in $472,623 in improper benefits paid by Medicare to the home health agencies.
In a separate health care fraud case in Detroit, patient recruiter Dwight Armstrong was sentenced by U.S. District Court Judge Lawrence Zatkoff to serve two years in prison and three years of supervised release. Armstrong was also ordered to pay $250,000 in restitution. Armstrong, 32, pleaded guilty on April 8, 2010, to one count of conspiracy to commit health care fraud. According to the plea documents, Armstrong began recruiting patients for Careplus LLC in approximately June 2008. Armstrong admitted that he paid kickbacks to the Medicare beneficiaries he recruited, and later transported, to Careplus using money provided by the owners and operators of Careplus. Armstrong admitted he kept part of the funds he received as a kickback for referring the Medicare beneficiaries he recruited. According to court documents, the owners and operators of Careplus typically paid $100-$150 per patient Armstrong recruited, with Armstrong retaining $50-$75 of that amount as a kickback for the referral. Armstrong also admitted he instructed the beneficiaries he recruited, based on instructions from the owners and operators of Careplus, to claim they had certain symptoms to trigger medically unnecessary tests.
Today’s guilty pleas and sentencing were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
These cases were prosecuted by Assistant Chief John K. Neal and Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section. The cases were investigated by the FBI and HHS-OIG, and were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 635 individuals who collectively have falsely billed the Medicare program for more than $1.4 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Killeen Woman Indicted in Kidnapping Case
United States Attorney John E. Murphy and Cory B. Nelson, Special Agent in Charge of the Federal Bureau of Investigation - San Antonio Division, announced the indictment of 34-year-old Courtney Elizabeth Hernandez of Killeen, Texas, in connection with the kidnapping of 2 ½-year-old girl earlier this month.
The indictment—returned this afternoon by a federal grand jury in Waco—charges Hernandez with one count of kidnapping. The indictment alleges that on July 5, 2010, Hernandez kidnapped the child and transported her from Texas to Georgia. On Sunday, Georgia State Patrol officers in Augusta initiated a traffic stop after matching a description of the defendant’s vehicle. The officers successfully recovered the abducted child and arrested Hernandez.
Conviction on each count is punishable by a mandatory minimum 20 years to life in federal prison and up to a $250,000 fine. Hernandez remains in federal custody in Georgia awaiting transfer to the Western District of Texas.
This case is being investigated by special agents with the Federal Bureau of Investigation together with the Temple Police Department, Teague (TX) Police Department and the Georgia State Patrol. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
The indictment—returned this afternoon by a federal grand jury in Waco—charges Hernandez with one count of kidnapping. The indictment alleges that on July 5, 2010, Hernandez kidnapped the child and transported her from Texas to Georgia. On Sunday, Georgia State Patrol officers in Augusta initiated a traffic stop after matching a description of the defendant’s vehicle. The officers successfully recovered the abducted child and arrested Hernandez.
Conviction on each count is punishable by a mandatory minimum 20 years to life in federal prison and up to a $250,000 fine. Hernandez remains in federal custody in Georgia awaiting transfer to the Western District of Texas.
This case is being investigated by special agents with the Federal Bureau of Investigation together with the Temple Police Department, Teague (TX) Police Department and the Georgia State Patrol. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Tuesday, July 13, 2010
Hartford Man Involved in Bank Fraud Scheme is Sentenced
David B. Fein, United States Attorney for the District of Connecticut, announced that TYLON MIMS, 36, of Hartford, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 20 months of imprisonment for his involvement in a bank fraud scheme. On September 28, 2009, MIMS pleaded guilty to two counts of bank fraud.
According to court documents and statements made in court, MIMS’ co-defendant, Troy Moody, conspired with two Bank of America employees, Brenda Jones and Lakisha Williams, to steal business checks from the Bank of America lockbox processing center in East Hartford. The employees provided Moody with at least three checks totaling approximately $390,000 that were stolen from the lockbox. Moody then provided two of the stolen checks to MIMS.
In April 2007, Patricia May, at MIMS’ direction, registered with the City of Hartford a business in the name of “Health New England Services.” The real Health New England, located in Springfield, Massachusetts, did not give May permission to use its name or to open any account in its name. Shortly thereafter, Miosotis Garcia, also at MIMS’ direction, registered a business with the City of Hartford in the name of “Health New England Gym.” Garcia then opened a business checking account at a branch of Bank of America in Hartford in the name of “Health New England Gym,” and May opened a business checking account at a branch of New Alliance Bank in Hartford under the name “Health New England Services.”
On April 13, 2007, Garcia, at MIMS’ direction, deposited a stolen check in the amount of $156,601.96, payable to “Health New England,” into the business checking account at Bank of America. On April 19, 2007, MIMS and Garcia withdrew $60,000 in cash and $96,620.96 in cashiers’ checks from the account before the bank realized the check was stolen.
On April 27, 2007, Patricia May, at MIMS’s direction, deposited a stolen check in the amount of $116,349.89, payable to “Health New England,” into the fraudulent checking account at New Alliance Bank. May subsequently was able to withdraw $22,000 in cash from the account before the bank realized the fraud and froze the account.
At the time of his involvement in this conspiracy, MIMS was on supervised release following a previous federal conviction for conspiring to distribute heroin. On September 13, 2000, MIMS was sentenced to 110 months of imprisonment, followed by five years of supervised release. MIMS was released from the custody of the Bureau of Prisons on March 11, 2007.
MIMS was initially found to be in violation of his supervised release following an August 5, 2008, arrest on by the Hartford Police on various narcotics charges.
On June 11, 2010, U.S. District Judge Christopher F. Droney sentenced MIMS to 46 months of imprisonment for violating the conditions of his supervised release. Today, Judge Arterton ordered the 20-month sentence on the bank fraud convictions to run consecutively with the 46-month sentence imposed last month, for a total effective sentence of 66 months of imprisonment. Judge Arterton also ordered MIMS to pay, jointly and severally with other members of the conspiracy, restitution in the amount of $178,601.96.
MIMS has been detained since his federal arrest on April 21, 2009.
Moody, May, Garcia, Jones, and Williams have each pleaded guilty to bank fraud charges stemming from this scheme. May and Garcia have received a sentence of two years of probation and an order to pay restitution to Bank of America. Moody, Jones and Williams await sentencing.
This matter was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys David E. Novick and Paul H. McConnell.
According to court documents and statements made in court, MIMS’ co-defendant, Troy Moody, conspired with two Bank of America employees, Brenda Jones and Lakisha Williams, to steal business checks from the Bank of America lockbox processing center in East Hartford. The employees provided Moody with at least three checks totaling approximately $390,000 that were stolen from the lockbox. Moody then provided two of the stolen checks to MIMS.
In April 2007, Patricia May, at MIMS’ direction, registered with the City of Hartford a business in the name of “Health New England Services.” The real Health New England, located in Springfield, Massachusetts, did not give May permission to use its name or to open any account in its name. Shortly thereafter, Miosotis Garcia, also at MIMS’ direction, registered a business with the City of Hartford in the name of “Health New England Gym.” Garcia then opened a business checking account at a branch of Bank of America in Hartford in the name of “Health New England Gym,” and May opened a business checking account at a branch of New Alliance Bank in Hartford under the name “Health New England Services.”
On April 13, 2007, Garcia, at MIMS’ direction, deposited a stolen check in the amount of $156,601.96, payable to “Health New England,” into the business checking account at Bank of America. On April 19, 2007, MIMS and Garcia withdrew $60,000 in cash and $96,620.96 in cashiers’ checks from the account before the bank realized the check was stolen.
On April 27, 2007, Patricia May, at MIMS’s direction, deposited a stolen check in the amount of $116,349.89, payable to “Health New England,” into the fraudulent checking account at New Alliance Bank. May subsequently was able to withdraw $22,000 in cash from the account before the bank realized the fraud and froze the account.
At the time of his involvement in this conspiracy, MIMS was on supervised release following a previous federal conviction for conspiring to distribute heroin. On September 13, 2000, MIMS was sentenced to 110 months of imprisonment, followed by five years of supervised release. MIMS was released from the custody of the Bureau of Prisons on March 11, 2007.
MIMS was initially found to be in violation of his supervised release following an August 5, 2008, arrest on by the Hartford Police on various narcotics charges.
On June 11, 2010, U.S. District Judge Christopher F. Droney sentenced MIMS to 46 months of imprisonment for violating the conditions of his supervised release. Today, Judge Arterton ordered the 20-month sentence on the bank fraud convictions to run consecutively with the 46-month sentence imposed last month, for a total effective sentence of 66 months of imprisonment. Judge Arterton also ordered MIMS to pay, jointly and severally with other members of the conspiracy, restitution in the amount of $178,601.96.
MIMS has been detained since his federal arrest on April 21, 2009.
Moody, May, Garcia, Jones, and Williams have each pleaded guilty to bank fraud charges stemming from this scheme. May and Garcia have received a sentence of two years of probation and an order to pay restitution to Bank of America. Moody, Jones and Williams await sentencing.
This matter was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys David E. Novick and Paul H. McConnell.
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