WASHINGTON — A federal jury in Philadelphia today convicted Ian P. Norris, the former CEO of The Morgan Crucible Company plc, a United Kingdom corporation, of conspiring with others to obstruct justice, the Department of Justice announced.
In 2004, a federal grand jury indicted Norris, a citizen of the United Kingdom, on one count of fixing prices of carbon brushes and other carbon products, one count of conspiring to obstruct justice, and two counts of obstructing justice in connection with the Department of Justice’s antitrust investigation of price fixing in the carbon products industry. Norris was extradited to the United States in March 2010 on the three obstruction charges. The jury returned a guilty verdict today on the conspiracy to obstruct justice count and not guilty verdicts on the witness tampering count and the count of corruptly persuading others to destroy or conceal documents. Sentencing has been scheduled for Nov. 2, 2010.
The department said that Norris conspired with his subordinates to obstruct the grand jury’s investigation. Morgan Crucible employees conspired with Norris to create a false script that employees of both Morgan Crucible and a competitor were to follow when questioned in the investigation. Also, a document destruction task force was formed to collect and destroy or conceal documents from the grand jury, the department said.
"The Antitrust Division uncovered this elaborate and egregious obstruction of justice scheme," said Christine Varney, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "Today’s verdict holds Norris accountable for his actions and sends a message that corporate leaders must promote a culture of law abiding conduct within their companies or be prepared to face stiff prison sentences. The Antitrust Division will remain vigilant in protecting the integrity of its criminal investigations from obstruction in order to effectively carry out its mandate to protect American businesses and consumers from price-fixing cartels."
Carbon products are used to transfer electrical current in automobiles, trains, public transit vehicles and consumer products and are used in pumps and compressors to contain liquids and gases.
Including today’s conviction, more than $11 million in criminal fines have been obtained and four executives and two companies have pleaded guilty or have been convicted as a result of the department’s antitrust investigation of price fixing in the carbon products industry.
The Morgan Crucible Company plc, based in Windsor, England, pleaded guilty in 2002 to one count of tampering with witnesses and one count of document destruction. The company paid a $1 million criminal fine.
A former subsidiary of the company, Morganite Inc., which was based in Dunn, N.C., pleaded guilty in 2002 to fixing prices of carbon brushes and other carbon products and paid a $10 million fine.
In addition, three subordinates of Norris previously pleaded guilty to obstruction charges. Jacobus Johan Anton Kroef, the former Chairman of the Industrial and Traction Division of The Morgan Crucible Company plc, pleaded guilty in 2003 to witness tampering. Robin D. Emerson, former pricing coordinator at Morganite Electrical Carbon Ltd. of Swansea, U.K., pleaded guilty in 2003 to corruptly persuading another person to destroy or conceal documents in connection with the investigation. F. Scott Brown, the former Global President and a member of the Board of Directors of Morgan Advanced Materials and Technology Inc. (MAMAT), now headquartered in Greenville, S.C., pleaded guilty in 2003 to aiding and abetting document destruction in connection with the investigation. Morganite Electrical Carbon Ltd. and MAMAT are subsidiaries of The Morgan Crucible Company plc.
The conspiracy count carries a maximum penalty of five years in prison and a $250,000 fine.
Trial attorneys Lucy McClain, Richard Rosenberg, and Kimberly Justice of the Antitrust Division’s Philadelphia Field Office prosecuted the case.
Saturday, December 31, 2011
Wednesday, December 28, 2011
Third individual arrested in alleged conspiracy to traffic Haitian nationals
JACKSONVILLE, Fla. - The third individual indicted for conspiracy to commit human trafficking offenses involving Haitian nationals was arrested in Miami on Thursday.
The arrest of Willy Edouard, 47, follows a four-count indictment on June 22 by a federal grand jury in the Northern District of Florida that charged him and two others with forced labor and conspiracy, visa fraud, holding documents and conspiracy, following an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents in Jacksonville and Miami and other state, local and federal agencies.
Edouard and Carline Ceneus, 32, both of Miami, and Cabioch Bontemps, 34, of Gainesville, Fla., were charged with crimes arising from an alleged scheme to coerce the labor and services of Haitian nationals brought by Ceneus and Edouard to northern Florida to work under the federal agricultural guest worker program. Ceneus was also charged with taking the victims' travel and identity documents.
"Targeting human traffickers is a top priority for ICE," said Susan McCormick, ICE special agent in charge of the Office of HSI in Tampa. "Those who are motivated by greed to prey on people have a callous disregard for the value of human life. That is why ICE will continue to aggressively investigate those involved in this kind of criminal activity."
On July 1, ICE special agents in Miami arrested Ceneus after she arrived from Haiti at Miami International Airport. Bontemps was arrested July 6 in Gainesville.
Edouard had been considered a fugitive when he was arrested Thursday by the U.S. Marshal's Service.
If convicted, Ceneus faces a maximum sentence of 25 years and Edouard and Cabioch each face 10 years in prison.
"Human trafficking denies individuals their freedom and their dignity. Those who prey on the most vulnerable through force, fraud or coercion will be prosecuted to the fullest extent of the law," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Civil Rights Division will continue to work with DHS, law enforcement agencies across the globe, and victim assistance organizations to vindicate the rights of victims, bring traffickers to justice and dismantle human trafficking networks."
According to the indictment, Ceneus, Bontemps and Edouard engaged in a conspiracy and devised a scheme to obtain the labor of 34 Haitian nationals by enticing them to the Gainesville area to pick beans and peas with false promises of lucrative jobs over three years culminating in permanent residency.
The three defendants then maintained the victims' labor and services through threats of serious harm, according to the indictment. Ceneus and Edouard arranged for the workers to pay substantial recruitment fees, procured by loans provided by loan sharks and often secured by the victims' property. After arrival in the United States, the defendants confiscated the victims' passports and failed to honor the promised terms of employment. The defendants kept the Haitian nationals in their service by threatening to report them to law enforcement and have them deported or sent home to face their large unpaid debts. The indictment also charges that the defendants engaged in visa fraud by making false statements in documents filed with the U.S. Department of Labor to procure H2A guest worker visas.
The charges set forth in an indictment are merely accusations and the defendants are presumed innocent until proven guilty.
This case is being investigated by ICE; the U.S. Department of Labor, Office of Inspector General; and the Alachua County, Fla., Sheriff's Office.
The case is being prosecuted by trial attorney Susan French of the Human Trafficking Prosecution Unit of the Civil Rights Division, Criminal Section, and Assistant U.S. Attorney Frank Williams of the Northern District of Florida.
Numerous non-governmental organizations have provided services to the victims and include: Alachua County Victim Services and Rape Crisis Center; Alachua County Housing Authority; Gainesville Harvest; Alachua County Health Department; Trinity United Methodist Church; Child Advocacy Center of Gainesville; United Way; St. Francis House; Peaceful Paths; Florida Rural Legal Services in Fort Myers, Fla; Florida Freedom Partnership in Miami; and World Relief in Jacksonville.
The arrest of Willy Edouard, 47, follows a four-count indictment on June 22 by a federal grand jury in the Northern District of Florida that charged him and two others with forced labor and conspiracy, visa fraud, holding documents and conspiracy, following an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents in Jacksonville and Miami and other state, local and federal agencies.
Edouard and Carline Ceneus, 32, both of Miami, and Cabioch Bontemps, 34, of Gainesville, Fla., were charged with crimes arising from an alleged scheme to coerce the labor and services of Haitian nationals brought by Ceneus and Edouard to northern Florida to work under the federal agricultural guest worker program. Ceneus was also charged with taking the victims' travel and identity documents.
"Targeting human traffickers is a top priority for ICE," said Susan McCormick, ICE special agent in charge of the Office of HSI in Tampa. "Those who are motivated by greed to prey on people have a callous disregard for the value of human life. That is why ICE will continue to aggressively investigate those involved in this kind of criminal activity."
On July 1, ICE special agents in Miami arrested Ceneus after she arrived from Haiti at Miami International Airport. Bontemps was arrested July 6 in Gainesville.
Edouard had been considered a fugitive when he was arrested Thursday by the U.S. Marshal's Service.
If convicted, Ceneus faces a maximum sentence of 25 years and Edouard and Cabioch each face 10 years in prison.
"Human trafficking denies individuals their freedom and their dignity. Those who prey on the most vulnerable through force, fraud or coercion will be prosecuted to the fullest extent of the law," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Civil Rights Division will continue to work with DHS, law enforcement agencies across the globe, and victim assistance organizations to vindicate the rights of victims, bring traffickers to justice and dismantle human trafficking networks."
According to the indictment, Ceneus, Bontemps and Edouard engaged in a conspiracy and devised a scheme to obtain the labor of 34 Haitian nationals by enticing them to the Gainesville area to pick beans and peas with false promises of lucrative jobs over three years culminating in permanent residency.
The three defendants then maintained the victims' labor and services through threats of serious harm, according to the indictment. Ceneus and Edouard arranged for the workers to pay substantial recruitment fees, procured by loans provided by loan sharks and often secured by the victims' property. After arrival in the United States, the defendants confiscated the victims' passports and failed to honor the promised terms of employment. The defendants kept the Haitian nationals in their service by threatening to report them to law enforcement and have them deported or sent home to face their large unpaid debts. The indictment also charges that the defendants engaged in visa fraud by making false statements in documents filed with the U.S. Department of Labor to procure H2A guest worker visas.
The charges set forth in an indictment are merely accusations and the defendants are presumed innocent until proven guilty.
This case is being investigated by ICE; the U.S. Department of Labor, Office of Inspector General; and the Alachua County, Fla., Sheriff's Office.
The case is being prosecuted by trial attorney Susan French of the Human Trafficking Prosecution Unit of the Civil Rights Division, Criminal Section, and Assistant U.S. Attorney Frank Williams of the Northern District of Florida.
Numerous non-governmental organizations have provided services to the victims and include: Alachua County Victim Services and Rape Crisis Center; Alachua County Housing Authority; Gainesville Harvest; Alachua County Health Department; Trinity United Methodist Church; Child Advocacy Center of Gainesville; United Way; St. Francis House; Peaceful Paths; Florida Rural Legal Services in Fort Myers, Fla; Florida Freedom Partnership in Miami; and World Relief in Jacksonville.
Sunday, December 25, 2011
Former Port Townsend Area Organic Farmer Sentenced to 10 Years in Prison for Bank Robbery Spree
Defendant Robbed Four Banks Across the West Using Fake Bomb
MICHAEL JOHN FENTER, 40, of Port Townsend, Washington, was sentenced today in U.S. District Court in Tacoma to 10 years in prison, five of supervised release, and $86,000 in restitution for three counts of bank robbery, one count of armed bank robbery, and one count of possession of a firearm during a crime of violence. FENTER pleaded guilty March 18, 2010 admitting in his plea agreement that he robbed banks in Seattle, Tacoma, San Francisco, and Sacramento. FENTER was arrested October 8, 2009, following the robbery of a Bank of America branch on South 9th Street in Tacoma. Officers located FENTER following the robbery and recovered $73,000 stolen from the bank. At sentencing U.S. District Judge Benjamin H. Settle noted that one of the victim tellers appropriately called Fenter a “terrorist.” The judge said the tellers “had been given a life sentence of reliving the terror” of the bank robberies.
According to the plea agreement, on February 4, 2009, FENTER entered a Washington Mutual Bank branch on 4th Avenue in Seattle. FENTER asked one of the tellers to meet with him at a desk. FENTER claimed he had highly explosive material in a briefcase he was carrying, and said he could wipe out the bank. FENTER told the teller to fill a black bag he was carrying with money. FENTER threatened to detonate the bomb by remote control if the teller called police. FENTER escaped with $9,200.
FENTER used the same bomb ruse twice in California. On April 15, 2009, he robbed a Bank of America branch in San Francisco. FENTER told the victim teller that his name was “Patrick Henry,” and he represented an organization that was angry about how the government was spending “bail-out” money and that he intended to take the money and give it to people who needed it. The distraught teller filled the bag with $43,000. FENTER told her if she called police too soon after he left, he would detonate the bomb using his cell phone. In August 2009, FENTER robbed a Wells Fargo branch in Sacramento, saying the money was for “The cause.” He claimed to have associates outside the bank and showed the bank manager an ear piece as if he were in touch with conspirators who could detonate the bomb. FENTER escaped from the bank with $34,000.
On October 8, 2009, FENTER entered the Bank of America branch in Tacoma and told the assistant manager that he wanted to make a large transaction. FENTER sat at the manager’s desk, and showed her the contents of a black box that appeared to contain wires and an antenna. FENTER told the assistant manager that he had a triggering device for the bomb. FENTER said that the robbery was not about the bank, but about a fight against the government. FENTER told the assistant manager she had 10 minutes to fill his black bag with money. Another bank employee saw what was going on and called police with his cell phone. FENTER was apprehended a short distance away from the bank. He had a fully loaded Glock .40 caliber pistol in a holster on his hip. The object he claimed was a bomb was disabled and analyzed. The device contained a commercial grade blasting cap and battery. The two were not wired together. Had they been wired, the blasting cap could have exploded injuring anyone nearby.
In his sentencing memo, Special Assistant United States Attorney Jerry Costello noted that the robberies were prompted by greed, and that they traumatized the bank employees. “The victims understandably feared being blown to bits or being maimed for life—along with others—by the apparent bomb defendant carried. One of the victims was so frightened that she lost emotional control. Creating intense, palpable fear is exactly what defendant wanted, and his motivations are reprehensible. The victims will never forget the day that defendant both threatened their lives and invaded their psyches,” Mr. Costello wrote in his sentencing memo.
The case was investigated by the FBI and the Tacoma Police Department. The case is being prosecuted by Special Assistant United States Attorney Jerry Costello. Mr. Costello is a Deputy Pierce County Prosecutor, specially designated to prosecute gun crimes in federal court.
MICHAEL JOHN FENTER, 40, of Port Townsend, Washington, was sentenced today in U.S. District Court in Tacoma to 10 years in prison, five of supervised release, and $86,000 in restitution for three counts of bank robbery, one count of armed bank robbery, and one count of possession of a firearm during a crime of violence. FENTER pleaded guilty March 18, 2010 admitting in his plea agreement that he robbed banks in Seattle, Tacoma, San Francisco, and Sacramento. FENTER was arrested October 8, 2009, following the robbery of a Bank of America branch on South 9th Street in Tacoma. Officers located FENTER following the robbery and recovered $73,000 stolen from the bank. At sentencing U.S. District Judge Benjamin H. Settle noted that one of the victim tellers appropriately called Fenter a “terrorist.” The judge said the tellers “had been given a life sentence of reliving the terror” of the bank robberies.
According to the plea agreement, on February 4, 2009, FENTER entered a Washington Mutual Bank branch on 4th Avenue in Seattle. FENTER asked one of the tellers to meet with him at a desk. FENTER claimed he had highly explosive material in a briefcase he was carrying, and said he could wipe out the bank. FENTER told the teller to fill a black bag he was carrying with money. FENTER threatened to detonate the bomb by remote control if the teller called police. FENTER escaped with $9,200.
FENTER used the same bomb ruse twice in California. On April 15, 2009, he robbed a Bank of America branch in San Francisco. FENTER told the victim teller that his name was “Patrick Henry,” and he represented an organization that was angry about how the government was spending “bail-out” money and that he intended to take the money and give it to people who needed it. The distraught teller filled the bag with $43,000. FENTER told her if she called police too soon after he left, he would detonate the bomb using his cell phone. In August 2009, FENTER robbed a Wells Fargo branch in Sacramento, saying the money was for “The cause.” He claimed to have associates outside the bank and showed the bank manager an ear piece as if he were in touch with conspirators who could detonate the bomb. FENTER escaped from the bank with $34,000.
On October 8, 2009, FENTER entered the Bank of America branch in Tacoma and told the assistant manager that he wanted to make a large transaction. FENTER sat at the manager’s desk, and showed her the contents of a black box that appeared to contain wires and an antenna. FENTER told the assistant manager that he had a triggering device for the bomb. FENTER said that the robbery was not about the bank, but about a fight against the government. FENTER told the assistant manager she had 10 minutes to fill his black bag with money. Another bank employee saw what was going on and called police with his cell phone. FENTER was apprehended a short distance away from the bank. He had a fully loaded Glock .40 caliber pistol in a holster on his hip. The object he claimed was a bomb was disabled and analyzed. The device contained a commercial grade blasting cap and battery. The two were not wired together. Had they been wired, the blasting cap could have exploded injuring anyone nearby.
In his sentencing memo, Special Assistant United States Attorney Jerry Costello noted that the robberies were prompted by greed, and that they traumatized the bank employees. “The victims understandably feared being blown to bits or being maimed for life—along with others—by the apparent bomb defendant carried. One of the victims was so frightened that she lost emotional control. Creating intense, palpable fear is exactly what defendant wanted, and his motivations are reprehensible. The victims will never forget the day that defendant both threatened their lives and invaded their psyches,” Mr. Costello wrote in his sentencing memo.
The case was investigated by the FBI and the Tacoma Police Department. The case is being prosecuted by Special Assistant United States Attorney Jerry Costello. Mr. Costello is a Deputy Pierce County Prosecutor, specially designated to prosecute gun crimes in federal court.
Thursday, December 22, 2011
ICE arrests 22 in Idaho immigration enforcement surge
All had been previously deported or had criminal convictions in the United States
BOISE, Idaho - Two previously deported felons were among the 22 immigration violators arrested by officers with U.S. Immigration and Customs Enforcement (ICE) during a three-day enforcement surge in Idaho's Magic Valley and the surrounding area.
During the operation, which began July 20, ICE arrested 15 immigration fugitives who had outstanding orders of deportation or had been previously deported and returned to the United States illegally. Six of the immigration fugitives had criminal histories ranging from drug possession, assault, theft, driving under the influence and domestic violence.
Two of the previously deported felons will be federally prosecuted in the District of Idaho on charges of illegal re-entry after deportation. Francisco Garcia-Ramirez, 34, of Mexico has a prior conviction for possession of cocaine and has previously been deported four times. Jesus Jaimes-Flores, 32, of Mexico has criminal convictions for DUI and assault and was previously convicted on federal charges of illegal entry. He has been previously deported once.
"ICE is committed to smart and effective immigration enforcement that targets individuals who pose a threat to public safety," said Steven M. Branch, field office director for ICE's Enforcement and Removal Operations (ERO) in Idaho. "ICE is committed to identifying those who come to the United States, commit crimes and blatantly disregard our nation's laws."
ICE officers made the arrests in nine Idaho communities including Burley, Buhl, Castleford, Hailey, Jerome, Rupert, Shoshone, Twin Falls, and Wendell. Those arrested are from Mexico (18), Nicaragua (1), Honduras (1), Peru (1) and Russia (1).
The arrests were made by ERO Fugitive Operations Teams (FOTs) based in Boise, Idaho, and Salt Lake City. The teams, two of 104 deployed nationwide, are responsible for locating, arresting, and removing criminal aliens and immigration fugitives who have ignored final orders of deportation handed down by the nation's immigration courts.
In fiscal year 2009, the FOTs made 35,904 arrests. More than 31,000 of those arrests, nearly 90 percent involved immigration fugitives and aliens with prior criminal convictions. Criminal aliens accounted for about 45 percent of the overall total, including more than 3,600 individuals with prior convictions for violent crimes such as murder and assault.
BOISE, Idaho - Two previously deported felons were among the 22 immigration violators arrested by officers with U.S. Immigration and Customs Enforcement (ICE) during a three-day enforcement surge in Idaho's Magic Valley and the surrounding area.
During the operation, which began July 20, ICE arrested 15 immigration fugitives who had outstanding orders of deportation or had been previously deported and returned to the United States illegally. Six of the immigration fugitives had criminal histories ranging from drug possession, assault, theft, driving under the influence and domestic violence.
Two of the previously deported felons will be federally prosecuted in the District of Idaho on charges of illegal re-entry after deportation. Francisco Garcia-Ramirez, 34, of Mexico has a prior conviction for possession of cocaine and has previously been deported four times. Jesus Jaimes-Flores, 32, of Mexico has criminal convictions for DUI and assault and was previously convicted on federal charges of illegal entry. He has been previously deported once.
"ICE is committed to smart and effective immigration enforcement that targets individuals who pose a threat to public safety," said Steven M. Branch, field office director for ICE's Enforcement and Removal Operations (ERO) in Idaho. "ICE is committed to identifying those who come to the United States, commit crimes and blatantly disregard our nation's laws."
ICE officers made the arrests in nine Idaho communities including Burley, Buhl, Castleford, Hailey, Jerome, Rupert, Shoshone, Twin Falls, and Wendell. Those arrested are from Mexico (18), Nicaragua (1), Honduras (1), Peru (1) and Russia (1).
The arrests were made by ERO Fugitive Operations Teams (FOTs) based in Boise, Idaho, and Salt Lake City. The teams, two of 104 deployed nationwide, are responsible for locating, arresting, and removing criminal aliens and immigration fugitives who have ignored final orders of deportation handed down by the nation's immigration courts.
In fiscal year 2009, the FOTs made 35,904 arrests. More than 31,000 of those arrests, nearly 90 percent involved immigration fugitives and aliens with prior criminal convictions. Criminal aliens accounted for about 45 percent of the overall total, including more than 3,600 individuals with prior convictions for violent crimes such as murder and assault.
Monday, December 19, 2011
13 indicted for selling counterfeit documents at Houston flea markets
HOUSTON - Thirteen individuals were charged by indictment on Monday for allegedly conspiring to possess or obtain counterfeit identity documents. The indictments were announced by U. S. Attorney José Angel Moreno, Southern District of Texas, and Michael Fienberg, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) acting special agent in charge.
"The sale of counterfeit identification documents is a matter of national security," said U. S. Attorney José Angel Moreno. "These types of enforcements actions are necessary to secure our borders and protect our citizens."
Two indictments charging a total of 20 persons returned under seal by a Houston grand jury on July 22 resulted from an 18-month investigation dubbed "Operation Fake I. D.," conducted by the ICE-HSI-led Document and Benefit Fraud Task Force (DBFTF), which includes special agents from the Department of State Diplomatic Security Service and officers of the Houston Police Department. "Operation Fake I. D." focused its investigative efforts on individuals allegedly involved in trafficking counterfeit government identity documents, including U.S. permanent resident cards, at the Sunny, La Tia Pancha and Cintas flea markets in north Houston.
Warrants issued following the return of the indictments were executed by investigating agents beginning July 23 through the weekend, including arrests July 24 at the Sunny, La Tia Pancha and Cintas flea markets. So far, 13 defendants have been arrested. Warrants remain outstanding for those charged but not yet in custody. All defendants in custody are expected to appear before U. S. Magistrate Judge Mary Milloy July 26 when the issue of bond is expected to be raised. The indictments have been ordered unsealed.
"ICE's HSI-led Document and Benefit Task Force provides a comprehensive approach in targeting criminal organizations and individuals involved in illegally manufacturing and selling fraudulent documents," said Michael Fienberg, acting special agent in charge of ICE-HSI in Houston. "HSI and its agency partners are committed to stopping this threat that undermines our nation's security."
The first of the two indictments charges a total of 17 defendants. All 17 are accused of being involved in a conspiracy to solicit customers at the various flea markets in north Houston to purchase counterfeit U.S. permanent resident cards and other identifying documents beginning in or about February 2009 through June 2010. The customers were allegedly photographed and asked to provide other information necessary to complete the counterfeit immigrant and non-immigrant government documents. Once the photograph and information was obtained, the information was communicated via telephone, text messaging or courier to other co-conspirators operating a counterfeit government document production mill which produced the counterfeit documents which were then sold to customers. A conviction for this conspiracy charge carries a maximum punishment of five years imprisonment and a $250,000 fine.
The remaining nine counts of the indictment charges individual defendants separately for alleged specific instances of fraud and misuse of visas - knowingly possessing a forged, counterfeited, altered or falsely made form I-551 or U.S. Permanent Resident card - between July 26, 2009 through July 10, 2010. A conviction for any one of these offenses carries a maximum punishment of 10 years imprisonment and a $250,000 fine.
Two defendants charged in the second indictment and charged in all three counts - conspiracy to solicit customers at the various flea markets in north Houston to purchase counterfeit U.S. Permanent Resident cards and other identifying documents beginning in or about January 2009 through July 2010 and two substantive counts for alleged specific instances of fraud and misusing visas in April and July 2010 - were also arrested on July 24. Both defendants face the same statutory penalties as the defendants in the first indictment upon conviction and are also in federal custody pending a detention hearing.
The defendants charged in the 10 count indictment are ("*" denotes in federal custody): Name, Age, Nationality (LNU = "last name unknown")
•Israel Arroyo-Mora, 37, Mexico "El Tio," true name Salvador Cobos-Lima, 59,
•Mexico Valentin Romero-Cortez, aka "Carlos," 50, Mexico
•Claudia Perez-Luna aka Claudia Del Villar, 53, Mexico
•Juan Carlos Morales-Garcia, aka "Toto," 38, Mexico
•Erika Cortez-Lopez, 35, Mexico
•Leonardo LNU
•"Gordo," true name Dagoberto Cacares, 33, Honduras
•"Baina," true name Carlos Joel Rosario-Solis, 21, Dominican Republic
•Raul Martin Puga, 41, Mexico
•Zeferino Romero-Cortez, 35, Mexico
•FLU LNU (star tattoos on elbows), true name
•Valentin Leonardo Romero-Cortez, 29, Mexico
•Jairo Bravo Luna, 23, U. S. citizen
•Suzanne Marie Ortegon, 23, U. S. citizen
•Cesar Llaguno-Romero, 23, Mexico
•Eulalio David Velazquez-Garduno, 23, Mexico
•Rodolfo Heredia Monroy, 34, Mexico
"The sale of counterfeit identification documents is a matter of national security," said U. S. Attorney José Angel Moreno. "These types of enforcements actions are necessary to secure our borders and protect our citizens."
Two indictments charging a total of 20 persons returned under seal by a Houston grand jury on July 22 resulted from an 18-month investigation dubbed "Operation Fake I. D.," conducted by the ICE-HSI-led Document and Benefit Fraud Task Force (DBFTF), which includes special agents from the Department of State Diplomatic Security Service and officers of the Houston Police Department. "Operation Fake I. D." focused its investigative efforts on individuals allegedly involved in trafficking counterfeit government identity documents, including U.S. permanent resident cards, at the Sunny, La Tia Pancha and Cintas flea markets in north Houston.
Warrants issued following the return of the indictments were executed by investigating agents beginning July 23 through the weekend, including arrests July 24 at the Sunny, La Tia Pancha and Cintas flea markets. So far, 13 defendants have been arrested. Warrants remain outstanding for those charged but not yet in custody. All defendants in custody are expected to appear before U. S. Magistrate Judge Mary Milloy July 26 when the issue of bond is expected to be raised. The indictments have been ordered unsealed.
"ICE's HSI-led Document and Benefit Task Force provides a comprehensive approach in targeting criminal organizations and individuals involved in illegally manufacturing and selling fraudulent documents," said Michael Fienberg, acting special agent in charge of ICE-HSI in Houston. "HSI and its agency partners are committed to stopping this threat that undermines our nation's security."
The first of the two indictments charges a total of 17 defendants. All 17 are accused of being involved in a conspiracy to solicit customers at the various flea markets in north Houston to purchase counterfeit U.S. permanent resident cards and other identifying documents beginning in or about February 2009 through June 2010. The customers were allegedly photographed and asked to provide other information necessary to complete the counterfeit immigrant and non-immigrant government documents. Once the photograph and information was obtained, the information was communicated via telephone, text messaging or courier to other co-conspirators operating a counterfeit government document production mill which produced the counterfeit documents which were then sold to customers. A conviction for this conspiracy charge carries a maximum punishment of five years imprisonment and a $250,000 fine.
The remaining nine counts of the indictment charges individual defendants separately for alleged specific instances of fraud and misuse of visas - knowingly possessing a forged, counterfeited, altered or falsely made form I-551 or U.S. Permanent Resident card - between July 26, 2009 through July 10, 2010. A conviction for any one of these offenses carries a maximum punishment of 10 years imprisonment and a $250,000 fine.
Two defendants charged in the second indictment and charged in all three counts - conspiracy to solicit customers at the various flea markets in north Houston to purchase counterfeit U.S. Permanent Resident cards and other identifying documents beginning in or about January 2009 through July 2010 and two substantive counts for alleged specific instances of fraud and misusing visas in April and July 2010 - were also arrested on July 24. Both defendants face the same statutory penalties as the defendants in the first indictment upon conviction and are also in federal custody pending a detention hearing.
The defendants charged in the 10 count indictment are ("*" denotes in federal custody): Name, Age, Nationality (LNU = "last name unknown")
•Israel Arroyo-Mora, 37, Mexico "El Tio," true name Salvador Cobos-Lima, 59,
•Mexico Valentin Romero-Cortez, aka "Carlos," 50, Mexico
•Claudia Perez-Luna aka Claudia Del Villar, 53, Mexico
•Juan Carlos Morales-Garcia, aka "Toto," 38, Mexico
•Erika Cortez-Lopez, 35, Mexico
•Leonardo LNU
•"Gordo," true name Dagoberto Cacares, 33, Honduras
•"Baina," true name Carlos Joel Rosario-Solis, 21, Dominican Republic
•Raul Martin Puga, 41, Mexico
•Zeferino Romero-Cortez, 35, Mexico
•FLU LNU (star tattoos on elbows), true name
•Valentin Leonardo Romero-Cortez, 29, Mexico
•Jairo Bravo Luna, 23, U. S. citizen
•Suzanne Marie Ortegon, 23, U. S. citizen
•Cesar Llaguno-Romero, 23, Mexico
•Eulalio David Velazquez-Garduno, 23, Mexico
•Rodolfo Heredia Monroy, 34, Mexico
Saturday, December 17, 2011
Activity in the United States Attorney’s Office
Sentences
Michael St. Angelo, 33, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 15, 2010, for conspiracy to steal firearms from a licensed federal firearms dealer, and to stealing from a licensed federal firearms dealer and for possession of stolen firearms. St. Angelo received 121 months of imprisonment, restitution in the amount of $6,436.89 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Scott Dodge, 22, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 19, 2010, for felon in possession of firearms and possession of stolen firearms. Dodge received 60 months of imprisonment, a fine of $500.00 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lester Robinson, 56, of Ranier, Washington, was sentenced by Federal District Court Judge Clarence A. Brimmer. The Washington State Patrol, Investigative Service Bureau, executed a search warrant at a residence in Ranier, Washington owned by the Defendant, Lester B. Robinson. The search warrant authorized the seizure of child pornography and electronic storage media upon which child pornography might be stored. During the course of the search, the investigators seized a computer and digital camera. A forensic analysis of the computer revealed images of child pornography including images of a child that investigators were able to determine lived in Wyoming. The Washington state authorities referred the matter to the Wyoming Internet Crimes Against Children Task Force (ICAC). An FBI agent who is a member of the ICAC task force went to the victim’s residence and was able to determine that the pornographic images of the victim were taken in her bedroom and recovered bedding and other articles that appeared in some of the images. The victim was interviewed by FBI agents it was confirmed that she had been sexually abused by the Defendant and he had taken pictures of that sexual abuse. As a result of this conduct on July 20, 2010, Robinson received 240 months of imprisonment, a fine of $2,300.00 and a life term of supervised release. This case was investigated by the Federal Bureau of Investigation, Internet Crimes Against Children Task Force.
William DeJesus, 30, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 21, 2010, for conspiracy to steal firearms from a licensed federal firearms dealer, and to stealing from a licensed federal firearms dealer and for possession of stolen firearms. DeJesus received 121 months of imprisonment, restitution in the amount of $6,436.89 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michael St. Angelo, 33, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 15, 2010, for conspiracy to steal firearms from a licensed federal firearms dealer, and to stealing from a licensed federal firearms dealer and for possession of stolen firearms. St. Angelo received 121 months of imprisonment, restitution in the amount of $6,436.89 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Scott Dodge, 22, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 19, 2010, for felon in possession of firearms and possession of stolen firearms. Dodge received 60 months of imprisonment, a fine of $500.00 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lester Robinson, 56, of Ranier, Washington, was sentenced by Federal District Court Judge Clarence A. Brimmer. The Washington State Patrol, Investigative Service Bureau, executed a search warrant at a residence in Ranier, Washington owned by the Defendant, Lester B. Robinson. The search warrant authorized the seizure of child pornography and electronic storage media upon which child pornography might be stored. During the course of the search, the investigators seized a computer and digital camera. A forensic analysis of the computer revealed images of child pornography including images of a child that investigators were able to determine lived in Wyoming. The Washington state authorities referred the matter to the Wyoming Internet Crimes Against Children Task Force (ICAC). An FBI agent who is a member of the ICAC task force went to the victim’s residence and was able to determine that the pornographic images of the victim were taken in her bedroom and recovered bedding and other articles that appeared in some of the images. The victim was interviewed by FBI agents it was confirmed that she had been sexually abused by the Defendant and he had taken pictures of that sexual abuse. As a result of this conduct on July 20, 2010, Robinson received 240 months of imprisonment, a fine of $2,300.00 and a life term of supervised release. This case was investigated by the Federal Bureau of Investigation, Internet Crimes Against Children Task Force.
William DeJesus, 30, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 21, 2010, for conspiracy to steal firearms from a licensed federal firearms dealer, and to stealing from a licensed federal firearms dealer and for possession of stolen firearms. DeJesus received 121 months of imprisonment, restitution in the amount of $6,436.89 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Wednesday, December 14, 2011
Thirteen People Indicted on Conspiracy to Distribute Methamphetamine
Thirteen people were indicted this week by a federal grand jury for conspiracy to distribute methamphetamine, the U.S. Attorney’s Office announced. All thirteen have been arrested. Initial appearances were held for 12 of the 13 defendants on July 20, 2010. A trial has been scheduled for September 13, 2010.
The defendants have been identified as:
•Jose Gallardo-Dedios, 36, Nampa, Idaho
•Guadalupe Valenzuela, 42, Nampa, Idaho
•Heidi Tucker, 42, Meridian, Idaho
•Quentin Mick, 27, Boise, Idaho
•Jason Marr, 24, Boise, Idaho
•Francisco Quinones, 47, Los Angeles, California
•Jorge Valdez, 31, Nampa, Idaho
•Haylee Lindauer, 31, Boise, Idaho
•Kalli Lindauer, 28, Boise, Idaho
•Juan Antonio Arvizu-Betancourt, 63, Nampa, Idaho
•Shawn Peterson, 32, American Falls, Idaho
•Fortino Bastidas, 31, Los Angeles, California
•Nabor Martinez-Herrera, 47, Salt Lake City, Utah
According to the indictment, between March 2009 and July 2010, the defendants knowingly and intentionally conspired to distribute at least five hundred grams or more of methamphetamine.
The defendants each face a mandatory minimum sentence of ten years in federal prison, up to life, and a fine of up to $4,000,000.
The Boise Police Department’s Bandit Drug Unit and the Drug Enforcement Administration, as part of the Organized Crime and Drug Enforcement Task Force (OCDETF) led the investigation. The OCDETF program is a federal multi-agency, multi-jurisdictional task force which supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Nampa Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, Idaho State Police, and Meridian Police Department assisted in the investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The defendants have been identified as:
•Jose Gallardo-Dedios, 36, Nampa, Idaho
•Guadalupe Valenzuela, 42, Nampa, Idaho
•Heidi Tucker, 42, Meridian, Idaho
•Quentin Mick, 27, Boise, Idaho
•Jason Marr, 24, Boise, Idaho
•Francisco Quinones, 47, Los Angeles, California
•Jorge Valdez, 31, Nampa, Idaho
•Haylee Lindauer, 31, Boise, Idaho
•Kalli Lindauer, 28, Boise, Idaho
•Juan Antonio Arvizu-Betancourt, 63, Nampa, Idaho
•Shawn Peterson, 32, American Falls, Idaho
•Fortino Bastidas, 31, Los Angeles, California
•Nabor Martinez-Herrera, 47, Salt Lake City, Utah
According to the indictment, between March 2009 and July 2010, the defendants knowingly and intentionally conspired to distribute at least five hundred grams or more of methamphetamine.
The defendants each face a mandatory minimum sentence of ten years in federal prison, up to life, and a fine of up to $4,000,000.
The Boise Police Department’s Bandit Drug Unit and the Drug Enforcement Administration, as part of the Organized Crime and Drug Enforcement Task Force (OCDETF) led the investigation. The OCDETF program is a federal multi-agency, multi-jurisdictional task force which supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Nampa Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, Idaho State Police, and Meridian Police Department assisted in the investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sunday, December 11, 2011
Mexican Citizen Sentenced to 20 Years in Federal Prison for Drug Conspiracy and Money Laundering
Anchorage, Alaska — United States Attorney Karen L. Loeffler announced that on July 16, 2010, Gilberto Gonzalez, a.k.a. “Toro,” a.k.a. Victor Manuel Reyes, a citizen of Mexico who illegally returned to the United States after a prior conviction for drug trafficking, was sentenced in federal court in Anchorage to 20 years of imprisonment for his conviction of conspiracy to distribute cocaine and methamphetamine, and money laundering.
United States District Court Judge John W. Sedwick imposed the sentence on Gonzalez, 35.
According to information presented to the court by Lead Organized Crime and Drug Enforcement Task Force AUSA Stephan A. Collins, Gonzalez was a manager of a conspiracy that trafficked in cocaine and methamphetamine between Nevada, California, Alaska, and Hawaii. During a four-month period, the conspiracy distributed multiple kilograms of cocaine and methamphetamine in Alaska and transfered drug proceeds through fictitious bank accounts from Alaska to Nevada. Other members of the conspiracy were previously convicted and sentenced included Alfonso Acosta Ruiz, 32, Mirina Millan Guitierrez, 47, Martin Ochoa Valara, 36, Jose Mata-Linares, 24, and Jose Inoa-Ramos, 34. With the exception of Inoa-Ramos, who is a citizen of the Dominican Republic, all of the conspirators are citizens of Mexico. The Court ordered that all fo the defendants were to be deported from the United States after they complete their respective sentences.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Gonzalez and his co-conspirators.
United States District Court Judge John W. Sedwick imposed the sentence on Gonzalez, 35.
According to information presented to the court by Lead Organized Crime and Drug Enforcement Task Force AUSA Stephan A. Collins, Gonzalez was a manager of a conspiracy that trafficked in cocaine and methamphetamine between Nevada, California, Alaska, and Hawaii. During a four-month period, the conspiracy distributed multiple kilograms of cocaine and methamphetamine in Alaska and transfered drug proceeds through fictitious bank accounts from Alaska to Nevada. Other members of the conspiracy were previously convicted and sentenced included Alfonso Acosta Ruiz, 32, Mirina Millan Guitierrez, 47, Martin Ochoa Valara, 36, Jose Mata-Linares, 24, and Jose Inoa-Ramos, 34. With the exception of Inoa-Ramos, who is a citizen of the Dominican Republic, all of the conspirators are citizens of Mexico. The Court ordered that all fo the defendants were to be deported from the United States after they complete their respective sentences.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Gonzalez and his co-conspirators.
Wednesday, December 7, 2011
Brooklyn, New York Man Sentenced 13 Years for Transporting 16-Year-Old for Prostitution
ALEXANDRIA, VA—Marc Shawn Brickhouse, 32, of Brooklyn, N.Y., was sentenced today to 156 months in prison, followed by five years of supervised release, for transporting a 16-year-old girl across state lines for the purpose of prostitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Shawn Henry, the Assistant Director in Charge of the FBI Washington Field Office, made the announcement after sentencing by United States District Judge Liam O’Grady.
Brickhouse pled guilty on May 11, 2010. According to court documents, Brickhouse was a pimp operating in Virginia, Maryland, and New York. Brickhouse and one of his prostitutes, Julie McKenna, 21, lured a 16-year-old girl from California to the East Coast to work as a prostitute. McKenna befriended the teen earlier when both McKenna and the juvenile lived in California. They kept in contact via MySpace. When the girl contacted McKenna saying she wanted to run away from home, Brickhouse and McKenna agreed for the girl to join them as long as she worked as a prostitute. McKenna flew to California. Then, McKenna and the girl rode a Greyhound bus back to Maryland where they were met by Brickhouse.
From late December 2009 to February 2010, Brickhouse and McKenna transported the 16-year-old between Virginia, Maryland, and New York to engage in prostitution. The girl was prostituted in each location. They posted prostitution advertisements for the girl on Craigslist and operated out of hotels, including the Quality Inn and Marriot Residence Inn in Woodbridge, Va. Finally, on Feb. 20, 2010, the girl ran from the Marriot Residence Inn to a nearby Babies 'R Us, where she asked a store employee to call the police.
On July 9, 2010, McKenna was sentenced to 71 months in prison.
This case was investigated by the FBI Washington Field Office and the Prince William County Police Department. Assistant United States Attorney Patricia Giles is prosecuting the case on behalf of the United States.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Shawn Henry, the Assistant Director in Charge of the FBI Washington Field Office, made the announcement after sentencing by United States District Judge Liam O’Grady.
Brickhouse pled guilty on May 11, 2010. According to court documents, Brickhouse was a pimp operating in Virginia, Maryland, and New York. Brickhouse and one of his prostitutes, Julie McKenna, 21, lured a 16-year-old girl from California to the East Coast to work as a prostitute. McKenna befriended the teen earlier when both McKenna and the juvenile lived in California. They kept in contact via MySpace. When the girl contacted McKenna saying she wanted to run away from home, Brickhouse and McKenna agreed for the girl to join them as long as she worked as a prostitute. McKenna flew to California. Then, McKenna and the girl rode a Greyhound bus back to Maryland where they were met by Brickhouse.
From late December 2009 to February 2010, Brickhouse and McKenna transported the 16-year-old between Virginia, Maryland, and New York to engage in prostitution. The girl was prostituted in each location. They posted prostitution advertisements for the girl on Craigslist and operated out of hotels, including the Quality Inn and Marriot Residence Inn in Woodbridge, Va. Finally, on Feb. 20, 2010, the girl ran from the Marriot Residence Inn to a nearby Babies 'R Us, where she asked a store employee to call the police.
On July 9, 2010, McKenna was sentenced to 71 months in prison.
This case was investigated by the FBI Washington Field Office and the Prince William County Police Department. Assistant United States Attorney Patricia Giles is prosecuting the case on behalf of the United States.
Sunday, December 4, 2011
Miami-Area Husband and Wife Plead Guilty in $13.7 Million HIV Infusion Clinic Fraud Scheme
Two Individuals Sentenced to Prison for Separate HIV Infusion Scheme in Miami
WASHINGTON – Miami-area husband and wife Modesto and Victoria de la Vega pleaded guilty today in U.S. District Court in Miami for their participation in a $13.7 million HIV infusion Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS). Also today, two Miami-area residents were sentenced to prison for their participation in a separate HIV infusion Medicare fraud scheme.
Modesto de la Vega, 59, and his wife, Victoria de la Vega, 59, pleaded guilty before U.S. District Court Judge Adalberto Jordan to one count of conspiracy to defraud the United States, to cause submission of false claims to Medicare, and to pay health care kickbacks; one count of conspiracy to commit health care fraud; and three counts of submitting false claims, as charged in a March 2010 indictment. At sentencing, scheduled for Nov. 5, 2010, Modesto and Victoria de la Vega each face a maximum penalty of five years in prison for the conspiracy to defraud the United States count and each false claims count, and 10 years in prison for the health care fraud conspiracy count.
According to plea documents, Modesto de la Vega was an owner and operator of T&R Rehabilitation Professional Corp., a Miami clinic that purported to provide expensive injection and infusion treatments to patients with HIV. Victoria de la Vega was an office assistant at T&R. Modesto de la Vega admitted at his plea hearing that he agreed with his co-defendants and others to enlist patient recruiters and patients, among others, into a scheme to defraud Medicare. Modesto and Victoria de la Vega admitted that they knew the patients at T&R did not need and/or did not receive the purported services, and that it would be necessary to pay kickbacks and bribes to the patients so that T&R could bill the Medicare program for the HIV infusion services that were not medically necessary and/or were not provided.
The defendants admitted that from approximately January 2003, through approximately July 2005, they and their co-defendants caused T&R to submit fraudulent claims to the Medicare program in the amount of approximately $13.7 million. Medicare paid approximately $4.1 million of these fraudulent claims.
In a separate and unrelated case, two Miami-area residents were sentenced today by U.S. District Judge Ursulla Ungaro in the Southern District of Florida for their participation in a similar HIV infusion Medicare fraud scheme. Keith Earnest Humes, a patient recruiter for a fraudulent HIV/AIDS infusion clinic known as Tendercare Medical Center Inc., was sentenced to 84 months in prison and three years of supervised release, and was ordered to pay restitution jointly and severally with co-defendants in the amount of $539,485. Lawrence Edward Humes, also a patient recruiter for Tendercare, was sentenced to 33 months in prison and three years of supervised release, and was ordered to pay restitution jointly and severally with co-defendants in the amount of $222,967. In addition, based on the court’s consideration of relevant conduct, Keith Humes was ordered to pay further restitution in the amount of $346,889.
According to court documents, Keith Humes and Lawrence Humes admitted that they conspired with each other and other individuals to defraud Medicare by submitting false claims for injection and infusion treatments that were medically unnecessary and that in most instances were not provided. Keith Humes and Lawrence Humes paid kickbacks to beneficiaries in return for their Medicare numbers and signatures, which Tendercare used to submit the false claims. Between January 2005 and December 2007, Tendercare submitted approximately $5.8 million in false and fraudulent claims to Medicare for treatments that were medically unnecessary or never provided. Medicare paid Tendercare approximately $2.7 million.
Today’s guilty pleas and sentences were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies , Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The cases were prosecuted by attorneys from the Criminal Division’s Fraud Section, including Trial Attorneys N. Nathan Dimock, Joseph Beemsterboer, Charles D. Reed, former Trial Attorney Michael Padula, former Fraud Section Assistant Chief John S. (Jay) Darden and former Fraud Section Special Trial Attorney Martha Talley, on detail from HHS-OIG. 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 Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force operations in seven districts have 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.
WASHINGTON – Miami-area husband and wife Modesto and Victoria de la Vega pleaded guilty today in U.S. District Court in Miami for their participation in a $13.7 million HIV infusion Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS). Also today, two Miami-area residents were sentenced to prison for their participation in a separate HIV infusion Medicare fraud scheme.
Modesto de la Vega, 59, and his wife, Victoria de la Vega, 59, pleaded guilty before U.S. District Court Judge Adalberto Jordan to one count of conspiracy to defraud the United States, to cause submission of false claims to Medicare, and to pay health care kickbacks; one count of conspiracy to commit health care fraud; and three counts of submitting false claims, as charged in a March 2010 indictment. At sentencing, scheduled for Nov. 5, 2010, Modesto and Victoria de la Vega each face a maximum penalty of five years in prison for the conspiracy to defraud the United States count and each false claims count, and 10 years in prison for the health care fraud conspiracy count.
According to plea documents, Modesto de la Vega was an owner and operator of T&R Rehabilitation Professional Corp., a Miami clinic that purported to provide expensive injection and infusion treatments to patients with HIV. Victoria de la Vega was an office assistant at T&R. Modesto de la Vega admitted at his plea hearing that he agreed with his co-defendants and others to enlist patient recruiters and patients, among others, into a scheme to defraud Medicare. Modesto and Victoria de la Vega admitted that they knew the patients at T&R did not need and/or did not receive the purported services, and that it would be necessary to pay kickbacks and bribes to the patients so that T&R could bill the Medicare program for the HIV infusion services that were not medically necessary and/or were not provided.
The defendants admitted that from approximately January 2003, through approximately July 2005, they and their co-defendants caused T&R to submit fraudulent claims to the Medicare program in the amount of approximately $13.7 million. Medicare paid approximately $4.1 million of these fraudulent claims.
In a separate and unrelated case, two Miami-area residents were sentenced today by U.S. District Judge Ursulla Ungaro in the Southern District of Florida for their participation in a similar HIV infusion Medicare fraud scheme. Keith Earnest Humes, a patient recruiter for a fraudulent HIV/AIDS infusion clinic known as Tendercare Medical Center Inc., was sentenced to 84 months in prison and three years of supervised release, and was ordered to pay restitution jointly and severally with co-defendants in the amount of $539,485. Lawrence Edward Humes, also a patient recruiter for Tendercare, was sentenced to 33 months in prison and three years of supervised release, and was ordered to pay restitution jointly and severally with co-defendants in the amount of $222,967. In addition, based on the court’s consideration of relevant conduct, Keith Humes was ordered to pay further restitution in the amount of $346,889.
According to court documents, Keith Humes and Lawrence Humes admitted that they conspired with each other and other individuals to defraud Medicare by submitting false claims for injection and infusion treatments that were medically unnecessary and that in most instances were not provided. Keith Humes and Lawrence Humes paid kickbacks to beneficiaries in return for their Medicare numbers and signatures, which Tendercare used to submit the false claims. Between January 2005 and December 2007, Tendercare submitted approximately $5.8 million in false and fraudulent claims to Medicare for treatments that were medically unnecessary or never provided. Medicare paid Tendercare approximately $2.7 million.
Today’s guilty pleas and sentences were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies , Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The cases were prosecuted by attorneys from the Criminal Division’s Fraud Section, including Trial Attorneys N. Nathan Dimock, Joseph Beemsterboer, Charles D. Reed, former Trial Attorney Michael Padula, former Fraud Section Assistant Chief John S. (Jay) Darden and former Fraud Section Special Trial Attorney Martha Talley, on detail from HHS-OIG. 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 Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force operations in seven districts have 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.
Thursday, December 1, 2011
Two Individuals Plead Guilty to Participating in International Child Pornography Group
WASHINGTON – Two individuals have pleaded guilty to charges related to their participation in an international group of child pornography traffickers who used a social networking site to share thousands of sexually explicit images, announced Assistant Attorney General Lanny A. Breuer for the Criminal Division and Acting U.S. Attorney Robert Cessar for the Western District of Pennsylvania.
Fred Woolum, 58, of Lexington, Va., pleaded guilty today before U.S. District Judge Arthur A. Schwab to one count of engaging in a child exploitation enterprise. Daniel Cox, 54, of Houston, pleaded guilty Wednesday before Judge Schwab to one count of conspiring to distribute and receive child pornography. Information presented at court established that from January 2007 to September 2009, Woolum, Cox and others distributed images and videos of children being sexually abused to other members of an international group that had restricted membership and was formed on a social networking website. Members of the group distributed to one another thousands of sexually explicit images and videos of children, many of which graphically depicted prepubescent, male children, including some infants, being sexually abused and sometimes sodomized or subjected to bondage.
Sentencing has been set for Feb. 18, 2011, for Woolum and March 4, 2011, for Cox. At sentencing, Woolum faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, with the possibility of lifetime supervised release. Cox faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, with the possibility of lifetime supervised release. Woolum and Cox both face a fine of up to $250,000.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Immigration and Customs Enforcement and the High Tech Investigative Unit of CEOS conducted the investigation that led to the prosecution of Woolum and Cox. CEOS Trial Attorney Barak Cohen and Assistant U.S. Attorney Craig W. Haller prosecuted the cases.
Fred Woolum, 58, of Lexington, Va., pleaded guilty today before U.S. District Judge Arthur A. Schwab to one count of engaging in a child exploitation enterprise. Daniel Cox, 54, of Houston, pleaded guilty Wednesday before Judge Schwab to one count of conspiring to distribute and receive child pornography. Information presented at court established that from January 2007 to September 2009, Woolum, Cox and others distributed images and videos of children being sexually abused to other members of an international group that had restricted membership and was formed on a social networking website. Members of the group distributed to one another thousands of sexually explicit images and videos of children, many of which graphically depicted prepubescent, male children, including some infants, being sexually abused and sometimes sodomized or subjected to bondage.
Sentencing has been set for Feb. 18, 2011, for Woolum and March 4, 2011, for Cox. At sentencing, Woolum faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, with the possibility of lifetime supervised release. Cox faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, with the possibility of lifetime supervised release. Woolum and Cox both face a fine of up to $250,000.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Immigration and Customs Enforcement and the High Tech Investigative Unit of CEOS conducted the investigation that led to the prosecution of Woolum and Cox. CEOS Trial Attorney Barak Cohen and Assistant U.S. Attorney Craig W. Haller prosecuted the cases.
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