Criminal Justice News

Illinois Resident Pleads Guilty to Mailing Threats to Metro-Atlanta Area Schools

2012-01-29T17:58:00.001-08:00

ATLANTA—VALTREZ STEWART, 29, of Oak Lawn, Illinois, pleaded guilty today in federal district court to mailing threats to Atlanta area schools.

Unites States Attorney Sally Quillian Yates said, “School should be a place where students are safe. All threats to harm schools, students, teachers, and school personnel will be taken seriously by law enforcement, regardless of whether the threat later is revealed to be a hoax perpetrated by a person with selfish, ulterior motives.”

According to United States Attorney Yates, the charges, and other information presented in court: STEWART mailed threats to at least four different schools between January 28, 2011, and February 2, 2011. The threats contained collages of newspaper and magazine clippings of words and numbers. The messages claimed, in part, that a bomb would detonate at the school killing at least 20 people, and promised brutal murders if money was not paid to certain individuals by a certain date. STEWART pleaded guilty to mailing the threats to Northview High School, Marietta High School, Stephenson Middle School, and Meadowcreek High School, all in the Atlanta metro area. Further investigation revealed that STEWART made the threats in hopes of getting law enforcement agencies to begin contacting and investigating people who STEWART personally disliked and sought to have targeted for making the deadly threats.

STEWART was indicted in July 2011. Today he pleaded guilty to four counts of mailing threatening communications. He could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Sentencing is scheduled for March 28, 2012, at 10:00 a.m., before United States District Judge Willis B. Hunt.

This case is being investigated by task force officers of the Federal Bureau of Investigation.

Assistant United States Attorney Tracia M. King is prosecuting the case.

For further information, please contact Sally Q. Yates, United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney’s Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is Justice.gov/usao/gan.

Former ANC Commissioner Pleads Guilty to Fraud; Admits Misuse of More Than $28,000 in Government Funds

2012-01-29T17:57:00.000-08:00

Community Leader Used Money for Personal Expenses

WASHINGTON—William Shelton, 42, a community leader in Northeast Washington, pled guilty today to a federal charge of access device fraud for using more than $28,000 in District of Columbia government funding, intended for the community, for his own personal expenses.

The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr.; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; and Charles J. Willoughby, Inspector General for the District of Columbia.

Shelton pled guilty in the U.S. District Court for the District of Columbia. The Honorable Beryl A. Howell scheduled sentencing for May 4, 2012. The charge carries a maximum statutory penalty of 10 years in prison, as well as a potential fine and order of restitution. Under federal sentencing guidelines, the parties have agreed that the applicable range would be six to 12 months in prison and a fine of up to $20,000. Under the plea agreement, Shelton must pay $28,526 in restitution to the District of Columbia government and forfeit proceeds of his crime.

According to a statement of offense signed by the government as well as the defendant, Shelton is the former chairman of the Advisory Neighborhood Commission (ANC) in Ward 5B of the District of Columbia. The D.C. government provides funds to ANCs each year to serve public purposes in the specific ANC area and to help pay for the functioning of the ANC office. Each ANC is permitted to establish a checking account, and any expenditures must be signed by at least two officers of the ANC, one of whom must be the treasurer or chairperson.

Shelton obtained a debit card for the ANC’s bank account, and knowingly used it for personal expenses with the intent to defraud the ANC.

From August 2010 through March 2011, Shelton used the debit card to make approximately 120 cash withdrawals, obtaining $27,129.85 in ANC funds. In addition, between February 2010 and February 2011, he used the debit card to pay directly for a total of $1,396.36 in purchases. None of the withdrawals or direct purchases were approved by the ANC or recorded in its books and records as required by law. All of the money was used by Shelton for personal expenditures.

“With today’s guilty plea, William Shelton became the latest city official to be held accountable for ripping off D.C. taxpayers,” said U.S. Attorney Machen. “There is no excuse for using the public treasury as a personal slush fund. We will continue our aggressive press against public officials who abuse the trust we place in them.”

“Mr. Shelton violated the trust of taxpayers by using government money for his own personal use,” said Assistant Director McJunkin. “His illegal conduct is deeply disappointing to our citizens and to the vast majority of elected officials who carry out their duties in an honest and ethical manner.”

“Today’s plea is demonstrative of how the Office of the Inspector General not only works to safeguard the interests of the District and its citizenry, but how it continues to work together with the Office of the United States Attorney in this worthy and rewarding endeavor,” stated Inspector General Willoughby. “I am and will continue to be proud of the role that the Office of the Inspector General plays in this regard.”

In announcing the guilty plea, U.S. Attorney Machen, Assistant Director McJunkin and Inspector General Willoughby praised the work of those who investigated the case, including the special agents of the FBI’s Washington Field Office and Special Agent Alexander H. Zion II, of the Office of the Inspector General. They also commended the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Shanna Hays, Legal Assistant Krishawn Graham, Assistant U.S. Attorney Scott Sroka of the Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Bridget M. Fitzpatrick, of the Fraud and Public Corruption Section, who is prosecuting the matter.

Federal Judge Sentences Birmingham Man to Five Years in Prison for Mortgage Fraud Scheme

2012-01-29T17:50:00.000-08:00

BIRMINGHAM—A federal judge on Thursday sentenced a Birmingham man to five years in prison for a mortgage fraud scheme in which he sold three houses that he did not own, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Patrick Maley and the inspectors general of the departments of Housing and Urban Development and the Social Security Administration.

U.S. District Judge Sharon Lovelace Blackburn sentenced DARRYL COBB, 54, on two counts of mail fraud in connection to the scheme. Cobb pleaded guilty to the charges in August. The judge also ordered Cobb to pay restitution of $262,861 and to forfeit $262,861 to the government as proceeds of his illegal activity.

“Mortgage fraud is a considerable problem that plagues our communities and damages our country,” Vance said. “We will continue to work tirelessly to uncover, investigate and prosecute any individual committing mortgage fraud. We want to send the clear message that if you lie on mortgage documents, you will be held accountable for your fraud.”

According to Cobb’s plea agreement with the government, his scheme was uncovered after the owner of a home in the 7900 block of 4th Avenue South complained to Birmingham police that someone was living in the house, which should have been vacant. The owner had gotten the house in a will from a deceased parent.

The person living in the house said they had bought it from Cobb. Further investigation showed Cobb had filed false documents in Jefferson County court and with a mortgage company claiming to be the rightful owner of the property, according to the plea agreement. Records searches determined Cobb had conducted two other fraudulent transactions using identical methods to obtain control over two other properties, which he then sold under the false pretense that he was the rightful owner and seller.

Those Birmingham houses are located in the 2700 block of Wood Drive and the 7500 block of 4th Avenue South.

The FBI and inspector general’s offices for both HUD and the Social Security Administration investigated the case. Assistant U.S. Attorney Patrick Carney prosecuted the case.

Camp Buehring, Kuwait Postmaster Convicted of Stealing $565,000 in Money Orders

2012-01-29T16:08:00.000-08:00

HOUSTON—Delmus Eugene Scott, Jr., 34, of Humble, Texas, has pleaded guilty to one count of theft of government money, United States Attorney Kenneth Magidson announced today. Scott was the former custodian of public effects (COPE), which is the equivalent to a postmaster in the United States.

Scott was employed by a contractor of the U.S. Department of Defense responsible for providing postal services to U.S. military personnel deployed in Kuwait. Scott’s responsibilities included conducting and reporting financial transactions at the Army Post Office (APO) on a daily basis, to include the procurement and sale of U.S. Postal Service money orders. As the COPE, Scott had full autonomy to order blank money orders directly from the U.S. Postal Service distribution center.

Scott’s guilty plea today follows his indictment on July 27, 2011, at which time he was charged with one count of theft of government money resulting from a complaint into large deposits of postal money orders into bank accounts in Humble. Investigation determined Scott stole a total of 565 postal money orders, each valued at $1,000, with $181,000 clearing the Federal Reserve. Agents recovered the remaining $384,000 in postal money orders before they could be negotiated.

Further investigation determined that Scott mechanically imprinted the fraudulent amounts on the postal money orders using a money order imprinter exclusive to the Camp Buehring APO, under his custody and control, misrepresenting that they had been properly paid. Scott later deposited $90,000 in fraudulent postal money orders into his personal bank account and directed an additional $91,000 in fraudulent postal money order deposits to his fiancé’s bank account.

U.S. District Judge Sim Lake, who accepted his guilty plea today, has set sentencing for April 19, 2012, at which time he faces a maximum penalty of 10 years’ imprisonment and/or a $250,000 fine.

This case was investigated by the U.S. Postal Inspection Service with the assistance of the Major Procurement Fraud Unit in Kuwait, Department of Defense, U.S. Army Criminal Investigation Command, and the FBI and is being prosecuted by Special Assistant United States Attorney Tammie Y. Moore.

Jury Convicts Former Titusville Man of Child Pornography Offenses

2012-01-29T16:06:00.000-08:00

ERIE, PA—After deliberating approximately three hours, a federal jury found Craig Alan Finley guilty of four counts of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.

Finley, 34, was tried before Senior United States District Judge Maurice B. Cohill, Jr. in Erie, Pennsylvania.

According to Assistant United States Attorney Christian A. Trabold, who prosecuted the case, the evidence presented at trial established that Finley used his cell phone to produce videos of himself sexually assaulting a 10-year-old male. These videos were then distributed on the Internet. The evidence also revealed that Finley received and was in possession of over 30,000 images and movies depicting minors, many younger than 10 years of age, engaged in sexually explicit conduct. Finley also distributed his enormous collection of child pornography to others on the Internet.

Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. 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.

Judge Cohill scheduled sentencing for May 8, 2012 at 3:30 p.m. The law provides for a total sentence of 80 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the criminal history, if any, of the defendant.

The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Finley.

Erie Man Admits Transporting Cocaine from Detroit to Erie

2012-01-29T16:04:00.000-08:00

ERIE, PA—A resident of Erie, Pennsylvania pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.

Ronald Wesley Thomas, 62, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr.

In connection with the guilty plea, the court was advised that Thomas transported a kilogram of cocaine from Detroit, Michigan to Erie, Pennsylvania in June 2008.

Judge Cohill scheduled sentencing for March 5, 2012 at 2:30 p.m. The law provides for a total sentence of forty years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.

Pending sentencing, the court continued Thomas on bond.

Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.

The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Erie Police Department, conducted the investigation that led to the prosecution of Thomas.

Bridgeport Man Sentenced to Federal Prison for Possessing Child Pornography

2012-01-28T20:38:00.000-08:00

David B. Fein, United States Attorney for the District of Connecticut, announced that RAMON PAUL FERNANDEZ, 37, of Bridgeport, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by 10 years of supervised release for possessing child pornography.

According to court documents and statements made in court, on September 19, 2009, a Milford Police detective assigned to the Connecticut Computer Crimes Task Force connected to a peer-to-peer Internet file-sharing network in an effort to identify individuals distributing child pornography. The investigation revealed that images of child pornography had been sent from an Internet Protocol (IP) address assigned to an account holder at an apartment in Ansonia where FERNANDEZ sometimes resided. On December 18, 2009, law enforcement officers executed a federal search and seizure warrant at the apartment and seized a desktop computer. During an interview, FERNANDEZ acknowledged that he used a peer-to-peer program to download images of child pornography.

Subsequent forensic analysis of the hard drive of the seized computer confirmed the existence of child pornography images and videos.

On April 6, 2011, FERNANDEZ pleaded guilty to one count of possession of child pornography.

This case was investigated by the Federal Bureau of Investigation and the Connecticut Computer Crimes Task Force, which includes federal, state, and local law enforcement agencies, including the Milford Police Department. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.

The Connecticut Computer Crimes Task Force investigates crimes occurring over the Internet, including computer intrusion, Internet fraud, copyright violations, Internet threats, and harassment and online crimes against children. The task force also provides computer forensic review services for participating agencies. The task force is housed in the main FBI office in New Haven. For more information about the task force, please contact the FBI at 203-777-6311.

U.S. Attorney Fein noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

To report cases of child exploitation, please visit Cybertipline.com.

Orange County Couple Pleads Guilty to Federal Fraud Charges for Bilking Banks Out of Nearly $5 Million

2012-01-28T20:35:00.001-08:00

SANTA ANA, CA—A Newport Coast couple pleaded guilty this morning to defrauding a consortium of seven banks, including Bank of America, in connection with a $130 million line of credit.

Thomas Chia Fu, 63, and his wife, Cheri L. Shyu (also known as Cheri Fu), 60, owned Anaheim-based Galleria USA, Inc., which imported home decor items manufactured in China. The Fus obtained a $130 million revolving line of credit for Galleria from a consortium of seven banks. In connection with that revolving line of credit, the couple overstated by tens of millions of dollars the accounts receivables of the company—lies they told the banks in order to continue borrowing funds under the revolving line of credit, according to plea agreements filed in this case. The Fus also admitted to falsifying in Galleria’s computer system the accounts receivable amounts by a factor of 10 or more times the actual amount purchased to support the exaggerated numbers and hide Galleria’s true financial status.

The banks suffered an estimated loss of $4.7 million on the revolving line of credit from October 2008 to July 2009.

The Fus pleaded guilty this morning before United States District Judge Cormac J. Carney. Cheri Fu is scheduled to be sentenced by Judge Carney on July 9, and Thomas Fu is scheduled to be sentenced on July 30.

At sentencing, the Fus each face a statutory maximum sentence of 30 years in federal prison.

This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Bureau of Investigation, and the United States Secret Service.

“In 2008, American taxpayers stepped up to help our nation’s banks, while the Fus concocted a scheme to swindle them,” said Christy Romero, Deputy Special Inspector General for SIGTARP. “Today, the Fus pled guilty to using a false second set of books to defraud seven banks, including TARP recipients Bank of America and United Commercial Bank, out of loans that resulted in millions of dollars in bank losses. Defrauding institutions that received TARP funds is simply defrauding American taxpayers. SIGTARP will aggressively uncover and investigate fraud, waste and abuse related to TARP and actively support the prosecution of these crimes to ensure accountability and justice.”

SIGTARP investigates fraud, waste, and abuse in connection with the Troubled Asset Relief Program (TARP). To report suspected illicit activity involving TARP, call the SIGTARP Hotline at 1-877-SIG-2009 (1-877-744-2009).

CONTACT: Assistant United States Attorney Jeannie M. Joseph (714) 338-3576

Two Women Plead Guilty to Health Care Fraud Conspiracy and Related Offenses

2012-01-28T20:28:00.000-08:00

CHARLOTTE, NC—Two women charged with health care fraud related offenses have pled guilty to the charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.

U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Unit (MIU); Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region; Chris Briese, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Sheriff Kevin L. Auten of the Rowan County Sheriff’s Office; Russell F. Nelson, Special Agent in Charge of the United States Secret Service (USSS), Charlotte Field Division; Donnie Varnell, Special Agent in Charge of the Diversion and Environmental Crimes Unit of the North Carolina State Bureau of Investigation (NC SBI); and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD).

Today, Wendy Gibson (a/k/a Wendy Fitzgerald), 40, of Charlotte, pled guilty to one count of health care fraud conspiracy, one count of paying and receiving illegal kickbacks, and one count of conspiracy to distribute controlled substances. Gibson’s co-defendant, Karen Wills (a/k/a Karen Boykin and Karen Jackson), 43, of Salisbury, entered a guilty plea to the same charges and to one additional count of health care fraud conspiracy on January 12, 2012. The defendants were charged by a criminal bill of indictment on August 17, 2011.

According to filed documents and statements made in court, from around 2008 to January 2011, Wills and others participated in a scheme to defraud Medicare and Medicaid by submitting false and fraudulent claims for medical services which were medically unnecessary, not provided, or both, including but not limited to, electromyography (“EMG”) and anorectal manometry (“AM”) procedures. As a result of this scheme, Medicare and Medicaid paid over $400,000 in reimbursement payments on the fraudulent claims. Court documents indicate that around August 2008, Wills and others became aware of the investigation into this fraudulent billing scheme. In an effort to conceal the fraud, Wills created several false EMG and AM reports and placed them in patient files. As part of her guilty plea, Willis admitted that the amount of loss intended to be caused by the scheme was in excess of $400,000 but less than $1,000,000.

Wills and Gibson also pled guilty to charges of conspiring to pay and receive illegal kickbacks. According to the indictment, from around January 2008 to around 2009, Wills, Gibson, and others engaged in an illegal kickback scheme involving power wheelchairs. According to plea documents, Wills used her position with her employer’s company to submit fictitious referrals for patients to receive medically unnecessary power wheelchairs from Gibson’s employer’s company. In some instances, Wills forged a physician’s signature on required qualification documents, while Gibson tracked and directed payment to those referrals. As part of their plea agreements, the defendants admitted to concealing the illegal kickback payments by falsely representing on invoices and checks that the payments were for nursing and billing services. This scheme resulted in payments for the medically unnecessary equipment from Medicare and Medicaid in excess of $300,000.

Wills and Gibson also pled guilty to charges of conspiracy to distribute controlled substances and to commit health care fraud. In pleading guilty to that charge, Wills admitted that she forged a physician’s signature on prescription pads she misappropriated from her employer, and issued fraudulent prescriptions in Gibson’s name. The prescriptions were written for controlled substances including oxycodone and hydrocodone/acetaminophen pills. In her plea, Gibson admitted that she used her health insurance prescription benefit program to pay for the fraudulent prescriptions resulting in payments in over $30,000 for these fraudulent prescriptions. Wills and Gibson obtained and illegally distributed approximately 3,000 oxycodone pills, and approximately 5,000 hydrocodone/acetaminophen pills.

At sentencing, Gibson and Wills face a maximum statutory sentence of 10 years in prison on the health care fraud conspiracy and a $250,000 fine, and five years in prison and a $25,000 fine for the illegal kickbacks charge. They also face 20 years in prison and a $1 million fine for the conspiracy to distribute controlled substances. Wills also faces a penalty of 10 years of imprisonment and a $250,000 fine for the additional charge of health care fraud conspiracy. Wills has been in federal custody on these charges since August 2011, and Gibson remains on bond. A sentencing date has not been set.

The investigation into Wills and Gibson was handled by HHS-OIG, MIU, FBI, USSS, NC SBI, CPMD, and Rowan County Sheriff’s Office. The prosecution is being handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.

The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is a multi-agency team of experienced federal and state investigators and prosecutors, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations.

The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.

If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at HHSTips@oig.hhs.gov.

American Samoa Department of Education Official Convicted by Federal Jury in District of Columbia of Witness Tampering and Obstruction of Justice

2012-01-28T18:55:00.001-08:00

WASHINGTON—Paul Solofa, the director of the school lunch program for the government of the U.S. Territory of American Samoa, was convicted today in relation to his efforts to obstruct a federal grand jury and law enforcement investigation into a bribery scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.

After a four-day trial, a federal jury in the District of Columbia found Solofa, 50, guilty of one count of witness tampering and one count of obstruction of justice.

According to evidence presented at trial, in approximately early 2008, federal authorities began conducting an investigation into allegations of cash bribes and kickbacks paid by vendors to officials of the American Samoa Government in connection with the government’s purchase of school bus parts and services.

According to the trial evidence, Solofa met on April 3, 2009, with a school bus parts vendor who told Solofa that the FBI was interested in interviewing the vendor regarding the bus parts investigation. Solofa, in a recorded meeting, allegedly told the vendor, “They cannot do anything with cash. Nothing. They cannot do anything with cash. They cannot track down you on cash. Because even if you say you gave me cash I’ll tell them ‘no.’ They cannot take your word on cash. Because that’s hearsay. So you know, but the best thing for you to do is ‘nope, I never give them any cash, I never’—because that will open up the whole operation . . . You get what I am saying. All you do is just tell them ‘no, yes, no, yes,’ period.”

In addition, according to the evidence presented at trial, Solofa met on April 14, 2009, with the same bus parts vendor, who told Solofa that a grand jury subpoena requiring production of specific documents and records, some of which related to Solofa and to the bus parts kickback scheme, would be issued shortly. After discussing how to respond, Solofa told the vendor that, as for documents he did not want to produce, “ [t]he only way to do it with those copies is burn it. That way, they won’t see it, and you won’t worry that they might see it, you know. . . . Just burn it, and nobody has a copy.”

Solofa faces a maximum penatly of 20 years in prison and a $250,000 fine on the witness tampering charge and 10 years in prison and a $250,000 fine on the obstruction of justice charge. Sentencing is scheduled for April 27, 2012.

This case is being prosecuted by Principal Deputy Chief Raymond N. Hulser and Trial Attorney Daniel A. Petalas of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI in Hawaii; the Office of the Inspector General for the U.S. Department of Education; and the Office of the Inspector General for the U.S. Department of the Interior.

Jacksonville Man Found Guilty of Production of Child Pornography and Making False Statements to FBI

2012-01-28T18:49:00.000-08:00

JACKSONVILLE, FL—U.S. Attorney Robert E. O’Neill announced today that a federal jury has found Alberto Martinez Riquene (44, Jacksonville) guilty of using a minor to produce a video of child pornography and of making false statements in connection with matters being investigated by the Federal Bureau of Investigation. Riquene faces up to 30 years in federal prison for the production charge, and up to 10 years in federal prison for making false statements. Riquene is in the custody of the United States Marshals Service pending his sentencing hearing.

According to testimony and evidence presented at trial, between February 24, 2010 and March 31, 2010, Riquene engaged in commercial sex acts on five to 10 occasions with a 15-year-old minor female at Riquene’s residence in Jacksonville. This minor child had become addicted to crack cocaine, and was introduced to prostitution by other individuals as a way to obtain more crack cocaine. On one such occasion, while the minor child and Riquene were engaged in a commercial sex act at his residence, Riquene made a video recording of the minor child engaged in sexually explicit conduct.

According to court records, on July 28, 2010, a special agent with the Federal Bureau of Investigation and three Jacksonville Sheriff’s Office detectives interviewed Riquene at his residence. Riquene acknowledged that he knew the minor child. However, when asked about his relationship with the minor child, Riquene falsely stated that the minor child had never been in his bedroom or in any part of his house, he had never had sex with her, and he had never touched her.

According to testimony and evidence presented at trial, law enforcement officers subsequently received information that the minor child had used Riquene’s computer to access her Myspace account while she was at Riquene’s residence. The FBI then obtained two search warrants for the computer media at the residence. Forensic analysis revealed that the minor child’s Myspace account had been accessed using Riquene’s computer. In addition, several videos were discovered on Riquene’s computer hard disk drive, including a video depicting the minor child and Riquene engaged in sexually explicit conduct.

This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Mac D. Heavener, Diidri W. Robinson, and D. Rodney Brown.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about Internet safety education, please visit www.projectsafechildhood.gov and click on the tab “other resources.”

Founders of McGinn, Smith & Co., Inc. Indicted on Fraud and Tax Charges

2012-01-28T18:47:00.000-08:00

Defendants Timothy M. McGinn and David L. Smith Alleged to Have Engaged in Mail, Wire, and Securities Fraud and to Have Filed False Income Tax Returns

ALBANY, NY—United States Attorney Richard S. Hartunian; Victor W. Lessoff, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, New York Field Office; and Clifford C. Holly, Special Agent in Charge, Federal Bureau of Investigation, Albany Division, announced that a grand jury sitting in the Northern District of New York returned an indictment today charging TIMOTHY M. McGINN, age 63, of Clifton Park, New York, and DAVID L. SMITH, age 66, of Saratoga Springs, New York, with (1) one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349; (2) 17 counts of mail and wire fraud, in violation of Title 18, United States Code, Sections 1341 & 1343; (3) six counts of securities fraud, in violation of Title 15, United States Code, Sections 78j(b) & 78ff and Title 18, United States Code, Section 2; and (4) three counts each of filing a false income tax return, in violation of Title 26, United States Code, Section 7206(1).

Count one charges the defendants with conspiracy to commit mail and wire fraud. The indictment alleges that the purpose of the conspiracy was to mislead investors regarding the safekeeping and use of investor money raised by 17 trusts and one corporation, the risks of the trust offerings, the performance of the underlying income streams, the source of investor payments, and the improper diversion of investor money in order to obtain money from investors and enrich themselves. As a result of the defendant’s conduct, the investors were not aware that the defendants had diverted approximately $4.1 million in connection with transactions related to the trusts for their own benefit and the benefit of another person. If the defendants are convicted of count one, the maximum potential penalties they face include imprisonment for 30 years, to be followed by supervised release for five years, and a fine of the greater of $1,000,000 or twice the gross pecuniary gain or loss.

Counts two through 18 charge the defendants with mail and wire fraud. The maximum potential penalty for each of Counts two through 18 is imprisonment for 30 years, supervised release for five years, and a fine of the greater of $1,000,000 or twice the gross pecuniary gain or loss. Counts two through six and eight through 11 relate to the Firstline Series B Trusts, which raised money from investors in connection with a loan of $2.4 million to Firstline Security, Inc., a company that generated alarm contracts. The Indictment alleges that the defendants knew that Firstline was facing litigation with its dealer, but did not disclose that to investors, or tell them when Firstline filed for bankruptcy and defaulted on loans. Instead, the defendants directed that investors receive $2 million of lulling payments by transferring money from other entities controlled by McGinn and Smith, and their firm sold approximately $600,000 of one of the Firstline investments without any disclosure of the bankruptcy or defaults.

Counts seven and 12 relate to the Integrated Excellence Trusts, for which the defendants raised about $1.2 million from investors in connection with a loan to benefit Integrated Excellence, Inc., which generated alarm contracts. The Indictment alleges that the defendant knew that the payments received from the loan were not sufficient to pay investors, but they directed that investors receive lulling payments by transferring money from other entities controlled by McGinn and Smith.

Counts 13 through 16 and 18 are wire fraud charges related to the misuse of investor money held in escrow accounts. Counts 13 and 14 involve the diversion of approximately $142,000 of investor money from an escrow account to make payments to investors in other trusts. Counts 15, 16, and 18 involve approximately $115,000 that McGinn and Smith took directly from escrow accounts holding investor funds. These transactions violated their duties as officers and owners of the company acting as the trustee for the Trusts, and they failed to disclose these transactions to investors.

Count 17 is a wire fraud charge related to approximately $230,000 McGinn took from McGinn Smith Transaction Funding Corp. between August 22, 2008 and July 8, 2009. McGinn repaid $100,000 of the money. When Smith discovered that McGinn had taken this money, he directed that a false accounting entry be made to conceal it.

Counts 19 through 24 relate to the failure to disclose improperly diverted fees to investors in violation of federal securities laws. Counts 19 and 20 relate to $100,000 in fees paid in connection with TDM Verifier Trust 08, and counts 21 through 24 relate to approximately $855,000 in fees paid in connection with Fortress Trust 08. All of these transaction fees were paid with investor money. The maximum potential penalty for each of Counts 19 through 24 is imprisonment for 20 years, supervised release for three years, and a fine of $5,000,000.

Counts 25 through 30 are tax charges arising from the failure of McGinn and Smith to declare the improperly diverted money on their personal tax returns for 2006 through 2008. McGinn and Smith later described the money as “loans,” but did not list them as such on personal financial statements. When the Financial Industry Regulatory Authority, Inc. (“FINRA”) discovered the false loan accounting entries for the diverted money, the defendants misled FINRA by directing the creation of backdated promissory notes. The maximum potential penalty for each of Counts 25 through 30 is imprisonment for three years, supervised release for one year, and a fine of $100,000.

The Indictment includes allegations for forfeiture of $8 million in proceeds of the offenses charged.

McGINN and SMITH are expected to be arraigned tomorrow, January 27, 2012, at 2:00 p.m. before the Honorable Randolph F. Treece, United States Magistrate Judge at the Federal Courthouse in Albany. The investigation is ongoing.

This case is being investigated by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Elizabeth C. Coombe and Rick Belliss.

The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.

Owner and Employee of Miami Home Health Company Plead Guilty in $22 Million Health Care Fraud Scheme

2012-01-28T18:45:00.000-08:00

The owner and an employee of a Miami health care agency each pleaded guilty for their participation in a $22 million home health Medicare fraud scheme, the Department of Justice, the FBI and the Department of Health and Human Services (HHS) announced yesterday.

Marietha Morales, 38, pleaded guilty on Jan. 24, 2012, before U.S. District Judge Seitz to one count of conspiracy to commit health care fraud and Eduardo Saborit-Dominguez, 48, pleaded guilty yesterday before Judge Seitz to one count of conspiracy to violate the Anti-Kickback Statute. Sentencing for both defendants is scheduled for May 23, 2012. The charge of conspiracy to commit health care fraud carries a maximum prison sentence of 10 years.

According to the court documents, Morales was the president and Saborit-Dominguez was an employee of Prime Home Health Services Inc., a Florida home health agency that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries.

According to plea documents, Morales conspired with patient recruiters for the purpose of billing the Medicare program for unnecessary home health care and therapy services. Morales and her co-conspirators paid kickbacks and bribes to patient recruiters in return for these recruiters providing patients to Prime Home Health, as well as prescriptions, plans of care and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Saborit-Dominguez distributed the kickbacks and bribes to co-conspirator patient recruiters and knew that the payment of kickbacks and bribes was in violation of federal criminal laws. Morales used these prescriptions, plans of care and medical certifications to fraudulently bill the Medicare program for home health care services, which Morales knew was in violation of federal criminal laws.

According to plea documents, at Prime Home Health, nurses and office staff falsified patient files for Medicare beneficiaries to make it appear that such beneficiaries qualified for home health care and therapy services from Prime Home Health. Morales admitted that she knew the beneficiaries did not actually qualify for and did not receive such services. Morales knew that these files were falsified so that the Medicare program could be billed for medically unnecessary therapy and home health related services.

From approximately February 2005 through April 2011, Morales and her co-conspirators submitted approximately $22 million in false and fraudulent claims to Medicare and Medicare paid approximately $14 million on those claims.

The guilty pleas were announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Criminal Division; 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.

This case is being prosecuted by Trial Attorney Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Miami.

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,140 defendants who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, the HHS 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.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to Stopmedicarefraud.gov.

Drunk Busters of America

2012-01-28T14:51:00.000-08:00

The February 2, 2012, episode of American Heroes Radio features a conversation with former Curt Kindschuh the founder of Drunk Busters of America.

Program Date: February 2, 2012

Program Time: 1500 hours, PACIFIC

Topic: Drunk Busters of America

Listen Live:

http://www.blogtalkradio.com/lawenforcement/2012/02/02/drunk-busters-of-america

About the Program

In 1995, Curt Kindschuh started Drunk Busters of America. Curt and his staff have now worked with over fifteen-thousand customers in 64 countries.

Curt Kindschuh worked in law enforcement for 18 years, and in 1993 was recognized in the Wisconsin Law Enforcement Officer of the Year Awards for his creative approaches to crime prevention. He was one of the first Drug Abuse Resistance Education (D.A.R.E.) Officers in Wisconsin, and worked for 4 years in 23 schools as a D.A.R.E. Officer. He started the “Shop With a Cop” program, which has since been duplicated in others areas of the United States, and also was a bicycle safety officer.

A volunteer with Mothers Against Drunk Driving (MADD) from 1990-2002, he worked full time as the Wisconsin State Executive Director of MADD from 1994-1997. Additionally, for 4 years he was a part-time instructor for the Group Dynamics Traffic Safety Program, which is mandatory for 1st time convicted drunk drivers in Wisconsin. Until his commitment to Drunk Busters of America forced him to cut back, he also taught criminal justice classes at a local college. Curt knows and understands impaired driving. He has arrested drunk drivers, investigated fatal crashes, counseled convicted DUI offenders and worked as an advocate for victims of impaired driving crashes.

Curt completed the National Highway Traffic Safety Administration (NHTSA) certified DWI Detection and Standardized Field Sobriety Testing course, and he is the designer and patent holder for Drunk Busters Impairment Goggles, used worldwide in the fight to stop impaired driving. Curt was a member of the Driving School Association of the Americas (DSAA), American Driver Traffic Safety Education Association (ADTSEA), the Wisconsin D.A.R.E. Officers Association, and the National D.A.R.E. Officers Association. He is a member of the International Association for Driver Education, and he has established a reputation as a creative, innovative, passionate visionary in impaired driving education. Curt has presented at over one-hundred state, national, and international conferences and for hundreds of school districts, universities, and other safety organizations.

About the Watering Hole

The Watering Hole is police slang for a location cops go off-duty to blow off steam and talk about work and life. Sometimes funny; sometimes serious; but, always interesting.

About the Host

Lieutenant Raymond E. Foster was a sworn member of the Los Angeles Police Department for 24 years. He retired in 2003 at the rank of Lieutenant. He holds a bachelor’s from the Union Institute and University in Criminal Justice Management and a Master’s Degree in Public Financial Management from California State University, Fullerton; and, has completed his doctoral course work. Raymond E. Foster has been a part-time lecturer at California State University, Fullerton and Fresno; and is currently a Criminal Justice Department chair, faculty advisor and lecturer with the Union Institute and University. He has experience teaching upper division courses in law enforcement, public policy, law enforcement technology and leadership. Raymond is an experienced author who has published numerous articles in a wide range of venues including magazines such as Government Technology, Mobile Government, Airborne Law Enforcement Magazine, and Police One. He has appeared on the History Channel and radio programs in the United States and Europe as subject matter expert in technological applications in law enforcement.

Listen, call, join us at the Watering Hole:

http://www.blogtalkradio.com/lawenforcement/2012/02/02/drunk-busters-of-america

Listen from the Archive:

http://www.americanheroesradio.com/drunk_busters.html

Program Contact Information

Lieutenant Raymond E. Foster, LAPD (ret.), MPA

editor@police-writers.com

909.599.7530

LinkedIn Event:

http://linkd.in/y2EF6v

Facebook Event:

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Patient Recruiter Sentenced to 30 Months in Prison in Connection with $5.4 Million Medicare Fraud Scheme

2012-01-27T17:30:00.001-08:00

WASHINGTON—A Miami resident was sentenced in Detroit today to 30 months in prison for his participation in a $5.4 million Detroit-area Medicare fraud scheme, announced the Department of Justice, FBI and Department of Health and Human Services (HHS).

Santiago Villa-Restrepo, 34, was sentenced by U.S. District Judge Arthur J. Tarnow of the Eastern District of Michigan. In addition to his prison term, Villa-Restrepo was ordered to pay approximately $2.9 million in restitution, jointly and severally with his co-defendants.

Villa-Restrepo pleaded guilty on Nov. 29, 2011, to one count of health care fraud. According to the plea documents, beginning approximately in 2007, Villa-Restrepo paid Medicare patients to undergo medically unnecessary diagnostic tests at three health care clinics owned by co-conspirators. In exchange for cash and other consideration offered by Villa-Restrepo and his co-conspirators, the Medicare beneficiaries signed documents indicating they had received the services billed to Medicare. Medicare was billed $5.4 million for medically unnecessary diagnostic tests by the clinics associated with the scheme.

The sentencing was 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.

This case is being prosecuted by Assistant U.S. Attorney Philip A. Ross of the Eastern District of Michigan, with assistance from Assistant Chief Benjamin D. Singer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.

Since their inception in March 2007, the Medicare Fraud Strike Force operations in nine districts have charged more than 1,140 individuals who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to Stopmedicarefraud.gov.

Drug Trafficking Conspiracy Indictment Expanded

2012-01-27T16:41:00.001-08:00

ANCHORAGE—United States Attorney Karen L. Loeffler announced today, January 26, 2012, that on January 20, 2012, an Anchorage grand jury expanded a previously charged drug trafficking conspiracy involving Kostas Nikolaos Bairamis, Melissa Dawn Cue, BJ Griffith, William Gilbert, and Justin Clayton Ray Lane to charge three additional defendants: Homer resident Timothy Daniel Cissney, age 33; Christopher Sean Kendrick, age 36, from California; and Aaron O’Kito Dyson, aka “Punchy,” age 37, from Washington. The indictment alleges one count of conspiracy to distribute controlled substances, in violation of 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(C).

According to the indictment presented to the court, defendants conspired to distribute oxycodone and methadone between at least June 17, 2010, and October 5, 2010. Bairamis has been convicted of conspiring to distribute methamphetamine during a different time period and has been sentenced to served 11 years on that separate charge. Both Cue and Griffith have been previously indicted by a grand jury in the District of Nevada. Those charges remain pending.

Assistant United States Attorney Kimberly Sayers-Fay, who presented the case to the grand jury, advised that the maximum penalties for conspiring to distribute oxycodone and methadone are 20 years’ imprisonment, a $1,000,000 fine, three years’ supervised release, and a $100 special assessment.

The Federal Bureau of Investigation and Alaska State Troopers conducted the investigation the led to the indictments in this case.

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilty beyond a reasonable doubt.

Cincinnati Man Receives 37-Month Sentence for Selling More Than $1 Million in Counterfeit Financial and Tax Preparation Software

2012-01-27T16:30:00.000-08:00

CINCINNATI—Brandon C. Davis, 31, of Cincinnati, was sentenced in U.S. District Court to 37 months in federal prison for selling more than $1 million worth of counterfeit financial and tax preparation software through an Internet auction site.

Carter Stewart, U.S. Attorney for the Southern District of Ohio; Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS); Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division; and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence handed down today by Senior U.S. District Judge Herman J. Weber.

Davis pleaded guilty on June 6, 2011 to one count each of mail fraud, copyright infringement, and two counts of filing a false income tax return. His sentence is 37 months for the mail fraud and copyright infringement and 36 months for each of the two counts of filing a false income tax return. Judge Weber ordered the sentences to run concurrently.

According to a court documents, Davis purchased software by download or on a CD, with accompanying label and packaging that was protected by copyright, namely Quicken and Turbo Tax software manufactured by Intuit, Inc. Davis copied each CD of original software multiple times without permission and created counterfeit packaging and labeling for the CDs.

Davis sold the counterfeit Intuit software on eBay, received payment, and then mailed the counterfeit software to the purchaser via the United States Postal Service. Within the packaging, Davis sometimes included a false disclaimer claiming that he was merely acting as a broker for another seller. Davis also falsely represented on the online auctions that he was selling original software, but instead the defendant sold counterfeit software, usually at prices below manufacturer’s suggested retail price.

Davis failed to report the income from the counterfeit software sales when he filed his income tax returns for 2008 and 2009.

“To perpetuate his scheme, [Davis] created 37 different eBay accounts for the illegal sales, typically with false information used to set up the account,” Assistant U.S. Attorney Tim Mangan wrote in a sentencing memorandum filed with the court. “The funds from the sales were processed through… more than 20 different bank accounts controlled by the Defendant. This all stands in contrast to the Defendant’s tax returns, which represented that he made a modest living as an independent photographer.”

Davis was also ordered to pay $80,074.08 in restitution to the IRS, forfeit all computer items used to manufacture and distribute the fake software, as well as forfeiting a 2006 Hummer, and $192,117.31 that U.S. Postal Inspectors seized from his bank accounts. He also has to pay $158,980 in restitution to the software manufacturer.

The case was prosecuted by Assistant U.S. Attorney Timothy S. Mangan of the U.S. Attorney’s Office for the Southern District of Ohio and Trial Attorney Thomas Daugherty of the Criminal Division’s Computer Crime and Intellectual Property Section.

The sentencing announced today is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to Justice.gov/dag/iptaskforce.

New Haven Man Sentenced to Three Years in Federal Prison for Distributing Crack

2012-01-27T16:27:00.000-08:00

David B. Fein, United States Attorney for the District of Connecticut, announced that CHARLES NICHOLS, 45, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 36 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.

This matter stems from a joint law enforcement investigation conducted by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department, and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug-trafficking organization that was centered in the Newhallville section of New Haven and Hamden and was responsible for the distribution of crack cocaine and cocaine throughout the Greater New Haven area. According to court documents and statements made in court, for a period of approximately two weeks in August and September 2010, NICHOLS purchased distribution quantities of crack cocaine from other members of the drug trafficking organization, and then redistributed some of the crack to others.

On November 10, 2011, NICHOLS pleaded guilty to one count of conspiring to distribute cocaine base (“crack cocaine”).

Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation.

This matter was investigated by the Federal Bureau of Investigation’s New Haven Safe Streets Task Force (composed of members of members of the New Haven, Ansonia, Milford, Hamden, and East Haven Police Departments, and the Connecticut State Police and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden, and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.

The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.

This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.

Lancaster Man Pleads Guilty to Federal Child Pornography Offense

2012-01-27T13:45:00.000-08:00

Defendant Downloaded and Shared 800-1,000 Files of Child Pornography

DALLAS—Terry Don Jackson, 55, of Lancaster, Texas, pleaded guilty this afternoon before U.S. District Judge Jorge A. Solis to an information charging one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Jackson, who remains on bond, faces a statutory sentence of not less than five years, nor more than 20 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release. Sentencing is set for April 25, 2012, before Judge Solis.

According to documents filed in the case, Jackson admitted using the Internet and peer-to-peer file-sharing software to share and transmit images of child pornography to undercover agents on at least four separate occasions in 2010. When FBI agents executed a federal search warrant at his home in March 2011, they seized his computer which he used to facilitate his possession, receipt and distribution of child pornography. When interviewed, Jackson admitted that he has downloaded and shared approximately 800-1,000 files of child pornography, including images of children as young as 8 to 10 years old, engaged in sexual acts, and that he had approximately 100 “friends” with whom he was sharing files. He admitted knowing that some of the images and videos included images of prepubescent minors and material that portrayed sadistic and/or masochistic conduct.

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 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 Projectsafechildhood.gov

The investigation is being conducted by the FBI and the Plano, Texas Police Department. Assistant U.S. Attorney Lisa J. Miller is in charge of the prosecution.

Former Executive Director of Children’s Advocacy Center of Tom Green County, Inc. Pleads Guilty in Federal Court

2012-01-27T13:43:00.001-08:00

LUBBOCK, TX—Debra Rucker Brown, the former executive director of the Children’s Advocacy Center (CAC) of Tom Green County, Inc., pleaded guilty today before U.S. District Judge Sam R. Cummings to one count of theft concerning a federally funded program, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Brown faces a maximum statutory sentence of 10 years in prison and a $250,000 fine. In addition, restitution could be ordered. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.

Brown, 51, served as the CAC’s executive director for more than 16 years—from August 1994 through February 2011. The CAC is a non-profit program that operates Court Appointed Special Advocates (CASA); Hope House; Family Enrichment Services (FES); and the Child Fatality Review Team (CFRT). CAC’s funding comes mostly from grants and contracts for services, with the balance coming from charitable contributions and money raised through special events it hosts. A significant source of the grant funding is provided by the U.S. government through Department of Justice and Department of Health and Human Services.

According to documents filed in the case, Brown admitted that from January 1, 2008, through December 31, 2008, she knowingly embezzled or stole from the CAC by submitting and processing several fictitious reimbursement forms seeking reimbursement for items purportedly purchased for the CAC, or one of its programs, and for purported expenses incurred, including travel by her and others for CAC business. Using these fictitious reimbursement forms, Brown then caused CAC checks to be fraudulently issued payable to her or for her benefit. She also caused CAC checks to be issued payable to her without providing any supporting documentation. She tendered the signed fraudulent checks at her bank for deposit to her personal checking account or for cash, or submitted them as payment on her personal credit card accounts.

The case is being investigated by the FBI and the Texas Rangers. Assistant U.S. Attorney Ann C. Roberts of the U.S. Attorney’s Office in Lubbock is in charge of the prosecution.

Bonnie Sweeten Sentenced for Fraud Schemes

2012-01-27T13:42:00.001-08:00

PHILADELPHIA—Bonnie Sweeten, 40, of Pennsylvania, was sentenced today to 100 months in prison for fraud schemes in which she stole in excess of $600,000 from her employer and family members. Sweeten pleaded guilty June 21, 2011 to wire fraud and aggravated identity theft. In addition to the prison term, U.S. District Court Judge William H. Yohn, Jr., ordered Sweeten to pay restitution in the amount of $1,091,831 and a special assessment of $200. Sweeten remains in federal custody.

Sweeten stole funds from family members, from the law office where she had been employed, and from the law firm’s clients. She used the identity of another person and posed as another person while using false identification and forging signatures on various documents including a property settlement. Additionally, Sweeten stole the identity of a friend and fellow employee and used the identity to facilitate her flight from the jurisdiction. She also forged a signature of a judge on a court order for the purpose of fraudulently withdrawing client funds from a bank. As part of her scheme to defraud, Sweeten concocted an elaborate hoax that she and her daughter had been kidnapped in order to deceive family members and law enforcement as to her whereabouts.

The case was jointly investigated by the Federal Bureau of Investigation and the Bucks County District Attorney’s Detectives. It was prosecuted by Assistant United States Attorney Denise S. Wolf.

Officer Wellness: 10-hour Shift is Best

2012-01-27T12:09:00.001-08:00

Police executives can improve morale, make sure officers get more sleep, and reduce overtime costs by offering officers the option of working 10-hour shifts. Importantly, 10-hour shifts do not adversely affect performance, according to NIJ-funded research. Read the final report here: https://www.ncjrs.gov/pdffiles1/nij/grants/237330.pdf.

The prevalence of sleep disorders in police officers may be as high as 40 percent, almost twice the estimated rate of sleep disorders in the general population, according to NIJ-funded research. These disorders are associated with an increased risk of safety violations and adverse health conditions among police officers. Read about the results of the study in the Journal of the American Medical Association: http://jama.ama-assn.org/content/306/23/2567.full.pdf.

Former Little Rock Banker Pleads Guilty to Bank Fraud, Money Laundering, and Social Security Charges

2012-01-26T23:10:00.001-08:00

LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Kelly Harbert, age 46, formerly of Little Rock, Arkansas, plead guilty today to a three-count superseding felony information charging her with a single count of bank fraud, a single count of money laundering and a single count Social Security violation. She had previously been indicted by a federal grand jury in a 22-count indictment charging her with 17 counts of bank fraud, two counts of money laundering, and one count of aggravated identity theft.

Harbert previously worked for One Bank and Trust, N.A. (One Bank) as a vice president and commercial loan officer and then later as a senior vice president in Little Rock. In her guilty plea today before United States Chief Judge J. Leon Holmes, Harbert admitted to devising a scheme to defraud various financial institutions by obtaining funds under false pretenses and then converting the proceeds from these fraudulent loans and lines of credit to her own personal use. As a loan officer Harbert had authority to approve unsecured loans in amounts up to $50,000. Using her position at One Bank, Harbert approved various types of unsecured loans and lines of credit in the names of her parents without their knowledge or authorization.

Harbert also used her business relationships with other financial institutions in the Little Rock, Arkansas area to arrange for various types of unsecured loans and lines of credits at these banks in the names of her parents and in the names of some of Harbert’s bank clients, using their personal identifiers all without their knowledge or authorization.

Harbert admitted to money laundering by converting proceeds through deposits and transfers in amounts in excess of $10,000 from one account to another. Lastly, Harbert admitted to willfully and knowingly disclosing and using the Social Security number of another person to commit the bank fraud which is, by itself, a Social Security violation.

Harbert will be sentenced at a later date to be determined by the Court. The maximum statutory penalty for bank fraud is not more than 30 years’ imprisonment and up to a $1,000,000 fine or both with five years’ supervised release. The maximum statutory penalty for money laundering is up to10 years’ imprisonment and a fine of $250,000 with three years’ supervised release. The Social Security violation is not more than five years’ imprisonment, a fine of not more $250,000 or both and one year of supervised release.

This investigation was conducted by agents from the Little Rock Field Office of the Federal Bureau of Investigation, the Social Security Administration Office of Inspector General, and Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Angela S. Jegley.

Kailua Man Indicted for Hurricane Katrina Fraud

2012-01-26T23:07:00.000-08:00

HONOLULU—A federal grand jury returned a 28-count indictment today against Kailua (Oahu) resident Dan Doyle, age 54, for an investment fraud scheme marketed primarily on AM radio financial shows airing in California. Florence T. Nakakuni, United States Attorney for the District of Hawaii, and Frank Montoya, Jr., Honolulu FBI Special Agent in Charge, announced the indictment of Doyle on 27 counts of wire fraud and one count of mail fraud relating to real estate projects designed to rebuild affected areas of Mississippi following the destruction of Hurricane Katrina.

The indictment describes a program known as the “Gulf Opportunity Zone” (“GO Zone”) implemented by the federal government to provide tax incentives to real estate investors and developers seeking to build affordable housing in the Gulf region following the August 2005 devastation of Hurricane Katrina.The indictment also alleges:

■Doyle owned and operated a business in Kailua using names including Investment Real Estate Network and Investment Radio Network. From late 2007 through December 2009, DOYLE allegedly purchased air-time on California talk radio stations to broadcast “radio infomercials” that he hosted and produced touting the benefits of Mississippi “GO Zone” real estate investments. Listeners to the programs were encouraged to call DOYLE’s office in Kailua for investment information.

■When potential investors called Doyle’s Kailua office, they were allegedly encouraged to wire transfer a refundable deposit to Doyle’s business bank account in Hawaii.
■Seventeen individuals wire transferred or mailed over $890,000 to DOYLE in Hawaii as deposits for “GO Zone” investments that were never built.
■Instead of preserving the money for potential refunding, DOYLE spent investor money on unrelated personal and business obligations including mortgage payments on his Kailua home and yachting expenses, according to the indictment.

For each of the wire and mail fraud counts, DOYLE faces a maximum period of imprisonment of 20 years, plus possible fines of up to $250,000 and terms of supervised release of up to three years. The court issued a penal summons for DOYLE to appear in federal court for arraignment An indictment is only an accusation and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

The investigation of this case was conducted by the Honolulu office of the FBI. The prosecution is being handled by Assistant United States Attorney Larry Tong. The public is reminded that charges in an indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.

Fall River Man Pleads Guilty to Child Pornography Charge

2012-01-26T22:34:00.000-08:00

BOSTON—A Fall River man was convicted yesterday in federal court on child pornography charges.

RICHARD A. DOHERTY, JR, 22, pleaded guilty before U.S. District Judge Denise J. Casper to one count of possession of child pornography. Had the case proceeded to trial, the government’s evidence would have proven that DOHERTY used a peer-to-peer software trade child pornography online. Over 10,000 images and videos depicting minors engaged in sexually explicit conduct, were found on DOHERTY’s computer.

Judge Casper scheduled sentencing for April 24, 2012. DOHERTY faces up to 10 years in prison, to be followed by up to a lifetime of supervised release and a $250,000 fine.

U.S. Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation-Boston Division made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michael Yoon, Chief of Ortiz’s Major Crimes Unit, and Trial Attorney Thomas Franzinger of the Department of Justice’s Child Exploitation & Obscenity Section.

This case is being prosecuted as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood to protect children from online exploitation and abuse. 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 Projectsafechildhood.gov/.

Three Men Charged with Conspiring to Rob a Norwood Check-Cashing Business

2012-01-26T22:32:00.001-08:00

BOSTON—Three men were arrested and charged today in federal court with conspiring to rob a Norwood check-cashing business.

JOHN SALVUCCI, 65, of Medford, GEORGE WHALEN, 55, of Winthrop and JAMES CHAMBERS, 53, of Stoneham were arrested early this morning pursuant to federal arrest warrants.

United States Attorney Carmen Ortiz said, “The actions alleged in the complaint involved a dangerous and violent plot to commit a robbery and kidnap a store owner. Thanks to the diligence and hard work of the investigative team, the plot was thwarted and the defendants now face federal criminal charges.”

“Early this morning, when the FBI and Massachusetts State Police SWAT teams arrested Mr. Salvucci, Mr. Whalen and Mr. Chambers, after a round-the-clock investigation by the FBI’s Violent Crimes Task Force, the violent conspiracy allegedly hatched by the trio was interdicted and halted, preventing harm to the intended victims,” said Richard DesLauriers, the FBI Special Agent in Charge. “The victims targeted in this plot, and the community at large, were spared needless violence because of the resolve of the FBI, United States Attorney’s Office, Massachusetts State Police, Boston, Medford, Saugus, Somerville, Norwood, Canton, and Malden Police Departments to ensure the plot never came to fruition. The Commonwealth should derive comfort from our combined day-to-day efforts to prevent, detect, and deter violent criminal activity, as exemplified by these arrests.”

The complaint alleges that the three defendants conspired to rob Forest Hills Check Cashing in Norwood. It is alleged that in order to further the robbery conspiracy, in January 2012, Salvucci sought to obtain the assistance of an individual, who subsequently informed the FBI about the planned robbery and agreed to cooperate in the investigation of the robbery. In a series of recorded meetings, Salvucci told the cooperator that he, along with Whalen and Chambers, were going to rob Forest Hills Check Cashing because the defendants believed that the business carried a significant amount of cash. During these meetings, Salvucci allegedly discussed kidnaping the owner of the check-cashing business in order to use the owner to help them commit the robbery. According to the complaint, Salvucci also told the cooperator that Whalen and Chambers would kidnap the owner from the owner’s home the morning of the intended robbery.

It is alleged that Salvucci told the cooperator that the three defendants were going to case the Norwood business on Jan. 21, 2012, in anticipation of the robbery. On Jan. 21, federal agents and law enforcement officers followed the three defendants as they traveled from north of Boston to the targeted business in Norwood. Agents and officers observed the three engage in various acts related to their gathering information about the business, including Whalen and Chambers entering the business itself.

If convicted on this charge, Salvucci, Whalen, and Chambers each face up to 20 years in prison to be followed by three years of supervised release and a $250,000 fine.

U.S. Attorney Ortiz and SAC DesLauriers made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Nadine Pellegrini and Michael Crowley of Ortiz’s Major Crimes Unit.

The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

New York Men Sentenced in Health Care Fraud Wheelchair Scam

2012-01-26T22:30:00.001-08:00

OKLAHOMA CITY—Today, ADEDAYO O. ADEGBOYE and OLALEKAN RUFAI, both age 48 and both of Brooklyn, New York, were each sentenced by United States District Judge Timothy D. DeGiusti to serve 12 months and one day in prison for health care fraud in connection with the sale of power wheelchairs and wheelchair accessories to Medicare beneficiaries, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Judge DeGiusti ordered that the men pay restitution in the amount of $299,624.

Adegboye and Rufai opened First Century Medical Supply, Inc., located in Oklahoma City, to engage in the business of selling power wheelchairs and wheelchair accessories to Medicare beneficiaries. Evidence presented at trial last August showed that from 2007 through 2009 the business obtained identification numbers and personal information from Medicare beneficiaries and used that information to submit claims to Medicare for power wheelchairs and wheelchair accessories. Evidence also showed that the defendants billed Medicare for some beneficiaries who did not receive a power wheelchair at all, some who received a less expensive motorized scooter, and for others who did not have a medical need for a wheelchair or did not even request a wheelchair. In all, the evidence showed that through First Century the defendants submitted over $1.1 million in fraudulent claims to Medicare.

Adegboye and Rufai were indicted by a federal grand jury in January of 2011. Following a six-day trial last August, a jury found both men guilty of committing five counts of health care fraud.

This case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. This case was prosecuted by Assistant United States Attorneys Amanda L. Maxfield Green and Vicki Zemp Behenna.

Rochester Man Sentenced in Computer Intrusion Case

2012-01-26T21:54:00.001-08:00

ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that David George Smith, 47, of Rochester, N.Y., who was convicted of wrecklessly causing damage to a computer domain, was sentenced to pay a fine of $500 and to pay restitution to the victim company in the amount of $4,671 by U.S. Magistrate Judge Jonathan W. Feldman.

Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that the defendant had been convicted of illegally accessing the computer system of a local company, and wrecklessly causing damage to that computer system.

The sentencing is the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction Special Agent in Charge Christopher M. Piehota.

Jefferson County Man Charged in Armed Carjacking

2012-01-26T21:53:00.000-08:00

BEAUMONT, TX—An 18-year-old Beaumont man has been charged with federal firearms and carjacking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Charles James Mishaw, III, was indicted on Jan. 11, 2012, and charged with carjacking and possession of a firearm during a violent crime. Mishaw made an initial appearance today and was ordered detained. He will appear before U.S. Magistrate Judge Zachary J. Hawthorn on Jan. 30, 2012, for arraignment.

According to information presented in court, on Nov. 15, 2011, Mishaw approached a 69-year-old woman as she was entering her gated apartment complex in Orange, Texas. As the victim rolled down her car window to access the security key pad, Mishaw approached and placed a small caliber hand gun to her head and ordered her to surrender the car and her purse. She complied. Law enforcement officers arrived almost immediately and were able to locate and stop the vehicle in Bridge City, Texas. Mishaw was still driving the vehicle and was in possession of the victim’s credit cards and the firearm he had used to steal the vehicle. The victim’s purse was recovered from where it had been thrown by the side of the road.

If convicted, Mishaw faces up to 15 years for the carjacking and a minimum of seven years for the firearms violation.

This case is being investigated by the FBI, the Orange Police Department, and the Bridge City Police Department and is being prosecuted by Assistant U.S. Attorney John Craft.

A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

City Man Who Shot at Oklahoma City Police Helicopter in Flight to Serve 46 Months in Prison

2012-01-26T21:38:00.000-08:00

OKLAHOMA CITY—MICHAEL P. McMICHAEL, 19, from Oklahoma City, was sentenced by United States District Judge Joe Heaton to serve 46 months in prison for being a habitual user of methamphetamine unlawfully in possession of a firearm, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.

McMichael was originally indicted by a federal grand jury on January 18, 2011, and charged with shooting at an Oklahoma City Police helicopter while in flight on June 25 or 26, 2010, damaging the vertical stabilizer bar of the aircraft. McMichael eventually pled guilty on April 11, 2011, to a superseding information charging him with being a habitual user of methamphetamine unlawfully in possession of a firearm.

At the sentencing hearing today, Judge Heaton specifically found that McMichael shot at an Oklahoma City Police helicopter while in flight prior to imposing the 46-month prison term.

This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Oklahoma City Police Department. The case is being prosecuted by Assistant U.S. Attorney Randy Sengel.

Hogsett Keeps Promise to Prioritize Public Safety of Employees of Terre Haute Prison

2012-01-26T18:29:00.000-08:00

Four Federal Inmates Sentenced After Possessing Dangerous Contraband in Terre Haute Federal Prison

TERRE HAUTE—Joseph H. Hogsett, United States Attorney, announced today the sentencing of four inmates of the Federal Correctional Complex in Terre Haute following their guilty pleas to possession of contraband in prison. These unrelated cases were all the result of investigations by the Federal Bureau of Investigation and Federal Bureau of Prisons.

“On May 25, 2011, I met with Warden Lockett and his staff, toured the facility, and left making public a commitment that our office will do all that it can to protect the 700 employees of the Federal Correctional Complex,” Hogsett said. “This federal facility is an economic engine for this region, and prosecutions such as these help ensure the safety of those who work there. These prosecutions also serve as a powerful message to other federal inmates that criminal activity will not go unpunished.”

Hogsett discussed the zero-tolerance approach his office has toward the possession of weapons in the federal prison system because of the inherent danger to corrections officers who already face challenging situations in their day to day employment, as well as other prisoners. Hogsett noted that in the past, correctional officers in Terre Haute have been assaulted by inmates who manage to craft a weapon from something as common as a pen, a kitchen utensil, or a piece of fence.

“If smuggled inside the complex, contraband becomes power,” Hogsett added. “We will do everything that we can to ensure that the power stays firmly in the hands of those who run the prison, not in the hands of those who reside there.”

Hogsett also pledged that the U.S. Attorney’s Office will continue to prosecute inmates and visitors who introduce marijuana and other drugs into the prison system. Such drugs create chaos among the prisoners and create additional dangers for prison employees.

On April 30, 2011, Ernesto Abeyta, age 36, an inmate serving a sentence related to drug trafficking with a firearm, was observed with marijuana after a visit with his wife. Abeyta’s wife brought the marijuana into the prison in over 20 small, multi-colored balloons which Abeyta attempted to consume while visiting with his children in the prison visitation room. Prison officials successfully intervened and prevented the marijuana from being introduced further into the prison. U.S. District Judge Jane Magnus-Stinson sentenced Abeyta to nine months to be served consecutive to any sentence previously imposed. Ernesto Abeyta’s wife, Tina Abeyta, will be separately prosecuted.

In an additional case, prison officials determined that Wilbert Lowe, age 26, currently serving a sentence related to his illegal possession of a firearm as a convicted felon, possessed marijuana within the prison on January 22, 2011. Lowe alleged that he purchased the marijuana from another inmate, and stated he carried it around with him to prevent it from being stolen by other inmates. Judge Magnus-Stinson sentenced Lowe to 15 months in prison consecutive to his current sentence.

On January 27, 2011, a wooden object, nine inches in length, sharpened to a deadly point, and designed to be a weapon, was found on the person of inmate Michael Toombs, age 27, who is currently serving a sentence for armed robbery. Following an investigation and subsequent guilty plea, Judge Magnus-Stinson sentenced Toombs to 27 months in prison consecutive to any previously imposed sentence.

Jeremy Johnson, age 22, who is currently serving a sentence for armed robbery, was also sentenced by U.S. District Judge William T. Lawrence to 20 months in prison for the possession of contraband in prison. During a random search at the prison on January 24, 2011, Johnson was found to be in possession of a homemade metal weapon described as “shank”—a piece of metal approximately six inches long and sharpened to a deadly point.

“I want to offer my sincere thanks to the corrections officers and support staff at the Federal Correctional Complex for all that they do to serve their country and defend this community,” Hogsett said. “And today, I reaffirm my office’s commitment to doing all that we can to help defend them.”

According to Assistant U.S. Attorney James M. Warden, who prosecuted the cases for the government, Abeyta, Lowe, and Toombs will also serve terms of supervised release at the conclusion of their prison terms.

Granite City Man Charged with Attempted Extortion by Means of Threatening Physical Violence

2012-01-26T18:05:00.000-08:00

The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Brett L. Nash, 45, of Granite City, was arraigned in federal district court in East St. Louis yesterday on charges that he attempted to extort a targeted individual by threatening physical violence. The charges were alleged in a criminal complaint filed on January 24, 2012.

The criminal complaint charges Nash with attempted extortion, by use of threats of violence, under the Hobbs Act. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine, and up to five years of supervised release.

The complaint alleges that on January 9, 2012, Nash tried to recruit an acquaintance’s assistance in carrying out an extortion scheme aimed at obtaining money from a targeted individual through threats of violence. After Nash obtained the money, it is alleged that Nash planned on killing the targeted individual in a manner which would look like an accident. The acquaintance reported the scheme to the Federal Bureau of Investigation and remained in contact with Nash in an undercover capacity.

The complaint alleges that over the course of the next two weeks, Nash had multiple meetings with the undercover acquaintance for the specific purpose of planning out the extortion scheme. Nash’s plan focused on the seizure of the targeted individual and the use of threats and force to get the individual to withdraw large amounts of money from his personal bank account and from a safe in the individual’s home. Nash planned on splitting the proceeds of the extortion with his undercover acquaintance. It is further alleged that Nash gathered many of the items needed for the operation including a head covering mask, a set of handcuffs and a CO2 Gun.

It is alleged that on January 23, 2012, the date of Nash’s arrest, he and his undercover acquaintance made a dry run to the targeted individual’s house to scout the location, for the planned operation. The complaint alleges that Nash had planned to execute his scheme later on that very evening.

The case was investigated by agents of the Federal Bureau of Investigation and officers of the Madison County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Stephen B. Clark and Special Assistant U.S. Attorney Christopher C. Heery.

A criminal complaint is a charge against the defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.

Wife in Bank-Robbing Duo Sentenced to Nearly Six Years in Prison

2012-01-26T18:03:00.000-08:00

BIRMINGHAM—A federal judge today sentenced a Sarasota, Fla., woman to nearly six years in prison for a bank robbery spree she undertook with her husband, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Patrick Maley.

U.S. District Judge L. Scott Coogler sentenced Angela Shuttleworth, 21, to 70 months in prison for robbing or attempting to rob six banks in Alabama, Ohio, North Carolina, South Carolina, and Florida. She pleaded guilty to the six bank robbery counts in October. Her husband, Neil Shuttleworth, 27, has pleaded guilty to bank robberies in Alabama, North Carolina, South Carolina, and Florida. Those cases are being prosecuted in federal court in South Carolina, where he will be sentenced.

“This duo fashioned themselves as a modern-day version of Bonnie and Clyde, traveling the Eastern seaboard and the Midwest, robbing or attempting to rob banks as they went,” Vance said. “Angela Shuttleworth showed no regard for the well-being of the innocent people inside the banks she robbed or for the peace and security of the cities and towns where she committed her crimes.”

“This defendant and her husband spread their crimes across several states, but the FBI and its law enforcement partners worked together to track the couple’s string of bank robberies and bring the pair to justice,” Maley said.

The Alabama bank the Shuttleworths have pleaded guilty to robbing was a Compass Bank in Florence. According to court documents, Angela Shuttleworth entered that bank on Jan. 7, 2011, and robbed it of $4,276 by using a demand note. She was arrested after an off-duty Florence police officer caught her outside of the bank.

In the Florence robbery, as in all others for which Angela Shuttleworth is charged, Neil Shuttleworth wrote the threatening demand note and drove his wife to the bank where she went in and presented it to a bank teller. Angela Shuttleworth received money from the teller in five of the six cases she pleaded guilty to.

The FBI and Florence Police investigated the case. Assistant U.S. Attorney Terence M. O’Rourke prosecuted the case.

Wantage Man Sentenced to Nine Years in Prison for Trying to Rob Two Banks in One Week

2012-01-26T18:01:00.001-08:00

NEWARK, NJ—William R. Carberry Jr. was sentenced today to 108 months in prison for robbing TD Bank in Jersey City, N.J., on June 25, 2010, and attempting to rob Chase Bank in Franklin, N.J., on June 28, 2010, U.S. Attorney Paul J. Fishman announced.

Carberry, 32, of Wantage, N.J., previously pleaded guilty to an information charging him with one count of bank robbery and one count of attempted bank robbery. Carberry entered his guilty plea before U.S. District Judge Stanley R. Chesler, who also imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

On June 25, 2010, Carberry entered a TD Bank in Jersey City and told a bank teller that he had a gun in his bag and to give him the money in the bank teller’s drawer. The bank teller complied, and Carberry left with the money.

On June 28, 2010, Carberry entered a Chase Bank in Franklin and passed a bank teller a note stating that he had a gun and demanding money. Before the bank teller handed him any money, Carberry retrieved the note and fled.

The banks’ video surveillance cameras recorded both incidents.

In addition to the prison term, Judge Chesler sentenced Carberry to three years of supervised release.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorneys Amy Luria and Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Assistant Federal Public Defender David Holman Esq., Newark

Active Duty Army Recruiter Pleads Guilty in Texas for Role in Scheme to Illegally Obtain Military Recruiting Bonuses

2012-01-26T16:51:00.000-08:00

A U.S. military recruiter pleaded guilty today to conspiracy to obtain approximately $190,000 in fraudulent recruiting bonuses from various U.S. military components and their contractor, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.

Sergeant First Class Jesus Torres-Alvarez, 31, of El Paso, Texas, was indicted on Sept. 13, 2011, along with former Specialist Xavier Aves, 40, of San Antonio; former Corporal Christopher Castro, 30, of San Antonio; former Staff Sergeant Grant E. Bibb, 40, of Eagle Pass, Texas; Specialist Paul Escobar, 31, of San Antonio; and Specialist Richard Garcia Jr., 28, of San Antonio.

According to court documents filed in U.S. District Court for the Western District of Texas, between approximately 2005 and 2008, the U.S. Army, the U.S. Army Reserves and the National Guard Bureau entered into contracts with Document and Packaging Broker Inc., to administer recruiting bonus programs designed to offer monetary incentives to U.S. soldiers who referred others to join the U.S. military. In addition, the Army managed its own recruiting programs that offered bonuses to soldiers who referred other individuals to join the Army or the Army Reserves.

Through these recruiting programs, a participating soldier could receive up to $2,000 in bonus payments for every person he referred to join the U.S. military. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payments in the form of direct deposits and pre-paid debit card payments.

According to court documents, Torres-Alvarez has served as an active duty Army recruiter since August 2005. Torres-Alvarez admitted that he provided certain co-conspirators with the names and Social Security numbers of at least 15 potential soldiers in exchange for a total of at least $10,000 in payments. Torres-Alvarez also admitted that he understood at the time that his co-conspirators planned to use this information to obtain recruiting bonuses by falsely claiming credit for referring these potential soldiers to join the U.S. military.

Through the scheme, Torres-Alvarez’s co-conspirators allegedly obtained a total of at least approximately $190,000 in fraudulent recruiting bonuses.

The charge of conspiracy to commit wire fraud carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing has been scheduled for May 25, 2012, before Chief U.S. District Judge Fred Biery in San Antonio.

The case against Torres-Alvarez arises from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio area engaged in a wide-ranging scheme to obtain fraudulent recruiting bonuses, which, to date, has led to charges against seven individuals.

On Jan. 28, 2010, Sergeant Ernest Gonzales, 50, of San Antonio, pleaded guilty before Chief Judge Biery to a one-count criminal information charging him with conspiracy to commit wire fraud. According to court documents, Gonzales admitted to participating in the fraudulent bonus scheme. Gonzales has not yet been sentenced.

On Nov. 3, 2011, Castro pleaded guilty before Chief Judge Biery to one count of conspiracy to commit wire fraud. According to court documents, Castro admitted that he participated in the scheme to defraud the Army’s recruiting bonus programs of at least approximately $164,000 in fraudulent recruiting bonuses. Castro has not yet been sentenced.

The case against Aves, Bibb, Escobar and Garcia is scheduled for trial on April 23, 2012, in San Antonio. These defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The case is being prosecuted by Trial Attorneys Edward J. Loya Jr. and Brian A. Lichter of the Criminal Division’s Public Integrity Section. The case is being investigated by agents from the San Antonio Fraud Resident Agency of the Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command.

U.S. Marshals Arrest Abuser of the Elderly

2012-01-25T20:26:00.001-08:00

Albuquerque, NM – On January 23, 2012, United States Marshals arrested Penelope Wronski, 54, for failing to appear in court on charges of Abuse and Neglect Resulting in Death. The charge stems from a June 2010 incident where Wronski failed to care for her elderly mother resulting in her mother’s death. Wronski was arrested in the 11000 block on Montgomery NE and booked into the Metropolitan Detention Center.

Annually, investigations carried out by the U.S. Marshals result in the apprehension of approximately 34,000 federal fugitives. More federal fugitives are arrested by Marshals than all other federal agencies combined. The task force objective is to seek out and arrest all Violent Offenders. Last year, U.S. Marshals task forces across the country arrested more than 27,000 state and local fugitives on felony charges.

Additional information about the U.S. Marshals Service can be found at USmarshals.gov.

ICE returns art stolen from French museum in 1981

2012-01-25T20:25:00.000-08:00

WASHINGTON — An art piece stolen from a French museum more than 30 years ago is finally on its way home to France. On Wednesday, U.S. officials repatriated "Le Marché aux Poissons" (The Fish Market), a monotype by Camille Pissarro, to French Ambassador François Delattre.

Officials from U.S. Immigration and Customs Enforcement (ICE); the U.S. Attorney's Office for the Southern District of New York (SDNY); and Interpol Washington, U.S. National Central Bureau; attended a ceremony on Jan. 25 at The Kreeger Museum in the District of Columbia to return the stolen art.

The monotype, which is a one-of-a-kind print made by painting on a sheet or slab of glass and transferring the still-wet painting to a sheet of paper, was stolen in 1981 by a man named Emile Guelton, who walked out of the Faure Museum in Aix-les-Bains, France, with the work under his jacket. The museum guard and another witness provided descriptions of the thief to French law enforcement authorities, but no one was apprehended.

In 1985, Guelton sold the monotype to a gallery in San Antonio, Texas, where it was immediately purchased by Sharyl Davis, a gallery employee, for $8,500. In 2003, Davis consigned the artwork to Sotheby's New York for auction, where it was expected to sell at an estimated price of $60,000 to $80,000.

Just prior to the auction, the Art Loss Register discovered the stolen work in the auction catalogue and notified Interpol. Interpol passed the information through ICE's Cultural Property, Art and Antiquities Unit to ICE's Homeland Security Investigations (HSI) office in New York. ICE HSI special agents in New York then initiated an investigation, and on Nov. 20, 2006, executed a federal seizure warrant and took possession of the monotype.

In January 2010, Davis contested the seizure in a civil trial in the Southern District of New York, and an eight-member jury voted unanimously in favor of the government. Following the appeals process, the monotype was officially forfeited to the United States on Nov. 22, 2011, in order to be repatriated to France.

"Returning this piece of art to the people of France is another great example of the ongoing work ICE HSI agents are doing to investigate the theft of cultural treasures and return them to their rightful owners," said ICE Director John Morton. "ICE's Homeland Security Investigations remains committed to combating cultural heritage crimes and righting the wrongs committed by the perpetrators of this illicit activity."

Nogales CBP Officers Seize Cocaine

2012-01-25T20:22:00.001-08:00

Drugs Valued at more than $440,000

Nogales AZ. — Customs and Border Protection officers assigned to Tucson Field Operations seized nearly 50 pounds of cocaine at the Dennis DeConcini Port Friday.

A 42-year-old Mexican man attempting to enter the United States was selected for a secondary inspection of his Chevrolet truck. Subsequently, the truck was taken to a vehicle lift where officers located 19 packages of cocaine concealed inside the gas tank.

The drugs and vehicle were processed for seizure. The man was arrested and turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Individuals arrested are charged with a criminal complaint, which raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

CBP's Office of Field Operations is the primary organization within Homeland Security tasked with an anti-terrorism mission at our nation’s ports. Officers screen all people, vehicles and goods entering the United States while facilitating the flow of legitimate trade and travel. Their mission also includes carrying out border-related duties, including narcotics interdiction, enforcing immigration and trade laws, and protecting the nation's food supply and agriculture industry from pests and diseases.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Timeshare Marketing Scams

2012-01-25T19:23:00.001-08:00

Timeshare owners across the country are being scammed out of millions of dollars by unscrupulous companies that promise to sell or rent the unsuspecting victims' timeshares. In the typical scam, timeshare owners receive unexpected or uninvited telephone calls or e-mails from criminals posing as sales representatives for a timeshare resale company. The representative promises a quick sale, often within 60-90 days. The sales representatives often use high-pressure sales tactics to add a sense of urgency to the deal. Some victims have reported that sales representatives pressured them by claiming there was a buyer waiting in the wings, either on the other line or even present in the office.

Timeshare owners who agree to sell are told that they must pay an upfront fee to cover anything from listing and advertising fees to closing costs. Many victims have provided credit cards to pay the fees ranging from a few hundred to a few thousand dollars. Once the fee is paid, timeshare owners report that the company becomes evasive – calls go unanswered, numbers are disconnected, and websites are inaccessible.

In some cases, timeshare owners who have been defrauded by a timeshare sales scheme have been subsequently contacted by an unscrupulous timeshare fraud recovery company as well. The representative from the recovery company promises assistance in recovering money lost in the sales scam. Some recovery companies require an up-front fee for services rendered while others promise no fees will be paid unless a refund is obtained for the timeshare owner. The IC3 has identified some instances where people involved with the recovery company also have a connection to the resale company, raising the possibility that timeshare owners are being scammed twice by the same people.

If you are contacted by someone offering to sell or rent your timeshare, the IC3 recommends using caution. Listed below are tips you can use to avoid becoming a victim of a timeshare scheme:

•Be wary if a company asks you for up-front fees to sell or rent your timeshare.

•Read the fine print of any sales contract or rental agreement provided.
•Check with the Better Business Bureau to ensure the company is reputable.

To obtain more information on Internet schemes, visit www.LooksTooGoodToBeTrue.com.

Anyone who believes they have been a victim of this type of scam should promptly report it to the IC3's website at www.IC3.gov. The IC3's complaint database links complaints together to refer them to the appropriate law enforcement agency for case consideration.

Nine Health Care Professionals, Including Five Doctors, Charged in Kickback Scheme

2012-01-25T19:21:00.001-08:00

GRAND RAPIDS, MI—U.S. Attorney Donald A. Davis and Michigan Attorney General Bill Schuette announced today the federal indictment of eight individuals, including four licensed physicians and one licensed physician’s assistant, for conspiracy to violate the federal Anti-Kickback Statute. Additionally, a state charge was filed against a Jackson, Michigan physician for allegedly accepting kickbacks to refer his patients to certain rehabilitation facilities. All eight federally charged defendants appeared today before U.S. Magistrate Judge Hugh W. Brenneman for an initial appearance on the charge, which carries a penalty of up to five years’ imprisonment, a $250,000 fine, three years of supervised release, and restitution.

The federal indictment alleges that Babubhai Rathod owned and operated medical clinics, outpatient rehabilitation facilities, and home health care companies that paid employees and outside health care providers for the referral of patients. The Indictment identifies many of Rathod’s companies, which include Lakeshore Spine & Pain, P.C., with clinics in cities including Ludington and Edmore, Michigan, and U.S. Rehab Services, P.C., with facilities around the state, including in Mt. Pleasant, Michigan. The indictment identifies Rajesh Makwana as an administrator of Lakeshore Spine & Pain and Raju Nakum as a manager of U.S. Rehab Services.

The indictment alleges that Rathod, Makwana, and Nakum paid health care providers agreed rates for the referral of patients for electrodiagnostic testing, physical therapy, and home health care services. The indictment identifies Lino S. Dial, Jr., D.O., Natalie Schutte, P.A., Niti Thakur, M.D., Andre Blair Smith, M.D., and Muhammad Salman Rais, M.D. as health care providers who referred Medicare and Medicaid patients to companies operated by Rathod in return for illegal kickback payments. The indictment further alleges that the kickback payments were falsely disguised as reimbursement for other purported expenses, including mileage, medical director fees, continuing medical education, and contractual labor.

Kevin S. Witt, D.O., 51, is charged in 54B District Court in East Lansing, Michigan with two felony violations of MCL 400.604, which makes it a crime to receive kickbacks in exchange for referring patients for treatment elsewhere. The charge is a four-year felony. Witt was arrested this morning by Attorney General investigators and was arraigned this afternoon.

U.S. Attorney Davis stated that the state and federal charges result from a joint investigation with the Health Care Fraud Division of Michigan Attorney General Bill Schuette’s office. Special agents from the Bay City, Michigan Office of the Federal Bureau of Investigation and the Grand Rapids, Michigan Office of the U.S. Department of Health and Human Services, Office of Inspector General are coordinating the federal investigation.

U.S. Attorney Davis noted, “The federal Anti-Kickback Statute prohibits the payment of any remuneration that is designed to induce or reward medical referral decisions involving Medicare, Medicaid, and other federally-funded health care programs. In passing the anti-kickback legislation, Congress intended that medical decisions be made with the patient’s best interest in mind and not because the referral of a patient will result in a financial benefit to the referring physician. Because our health care system relies heavily on the trust and integrity of medical professionals to provide services under the appropriate conditions and in the interests of patients, we will continue to aggressively investigate allegations of fraud and kickbacks and prosecute cases where professionals have abused this trust.”

“Patients deserve to know that when a doctor refers them for additional treatment, the decision to do so is based upon quality health advice—not what is best for the doctor’s bank account,” said Attorney General Schuette. “Kickbacks with the Medicaid program don’t just hurt patients, they affect the taxpayers who support the bottom line. Medically unnecessary treatments drive up the costs of Medicaid, and taxpayers ultimately pay the price.”

Lamont Pugh III, Special Agent in Charge of the Chicago Region of the U.S. Department of Health & Human Services, Office of Inspector General echoed U.S. Attorney Davis and Attorney General Schuette’s comments. “Patients trust that their physicians are making referrals to other health care providers so they can obtain the highest quality of care, not because they financially benefit from it,” said Pugh. “Paying kickbacks and bribes in exchange for such referrals is illegal, and the OIG will aggressively investigate allegations of this nature in order to protect Medicare and Medicaid beneficiaries and taxpayer dollars.”

Andrew G. Arena, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division emphasized that, “The FBI will remain vigilant in stopping health care fraud in the State of Michigan. This type of crime affects all of our health care premiums and serves as a drain on society. The indictments of these physicians and others send a strong message that abuse of the health care system will not be tolerated.”

The charges in an indictment, as well as state charges, are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.

Jeremiah Chance Stallans Sentenced to 15 Years in Federal Prison for Child Pornography Production

2012-01-25T19:19:00.001-08:00

GREENEVILLE, TN—Jeremiah Chance Stallans, 31, of Talbott, Tenn., was sentenced to serve 15 years in federal prison by the Honorable J. Ronnie Greer, U.S. District Judge, in the U.S. District Court for the Eastern District of Tennessee at Greeneville. Stallans pleaded guilty on August 17, 2011, to a federal indictment charging him with producing child pornography. He has remained in federal custody since his arrest on the federal charges. In addition to his prison term, Judge Greer ordered Stallans to remain on supervised release for the remainder of his life and pay a $100 special assessment. The court also ordered the forfeiture of the fruits and instrumentalities of his offense.

The investigation began when two undercover law enforcement agents received images and movies of child rape from Stallans via the Internet. The Morristown Police Department found homemade child pornography when its officers executed a search warrant at Stallans’s home. A forensic examination of his hand-built computer found 254 still images and 83 videos of child pornography. 32 of the children in the images were identified victims. Many of the depicted children were as young as babies.

The indictment and subsequent conviction of Stallans was the result of an investigation conducted by the Knox County Sheriff’s Office, Morristown Police Department, and Federal Bureau of Investigation. Attorneys for the Tennessee Department of Children’s Services assisted in the protection of specific children from Stallans. Assistant U.S. Attorney Helen Smith represented the United States.

“Fortunately, the federal criminal justice system has adequate sentences to punish this type of conduct. The local and federal law enforcement cooperative work, along with AUSA Helen Smith, resulted in this conviction and sentence,” said U.S. Attorney Bill Killian.

This case was brought as part of Project Safe Childhood (PSC), a Department initiative launched in 2006 that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal, 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 visit ProjectSafeChildhood.gov.

ASIS International and (ISC)2® to Colocate Annual Conferences Again

2012-01-25T15:07:00.000-08:00

Alexandria, Va. (Jan. 25, 2012) – Plans are well underway for the ASIS International 58th Annual Seminar and Exhibits (ASIS 2012), September 10-13, 2012 in Philadelphia. ASIS, the largest organization of security management professionals worldwide, and (ISC)2, the largest not-for-profit membership body of certified information security professionals worldwide, are pleased to announce that the second annual (ISC)2 Security Congress will be colocated with the ASIS Annual Seminar again this year.

“As the industry’s leading certification and education organizations, we can strengthen and serve the broader security community best by working together. By aligning our organizational resources strategically, our combined memberships gain access to core knowledge and best practices across the full spectrum of information and traditional security disciplines,” said W. Hord Tipton, CISSP-ISSEP, CAP, CISA, executive director of (ISC)2.

Building on the overwhelmingly positive response from attendees from both organizations last year in Orlando, ASIS and (ISC)2 will continue to collaborate on ways to optimize expertise and leverage resources to present two events in the same location with one focus: to provide traditional and information security professionals with the knowledge, technology, and networking opportunities they need to excel in their careers and secure their organizations’ people, property, and data.

“The integration of traditional and information security is a critical issue affecting the practice of security management,” stated ASIS president, Eduard J. Emde, CPP. “Our members are experiencing an increasing rate of assimilation of a variety of technologies into their functions along with the continuing emphasis on cyber security. Our goal is to help them to become better equipped to succeed in the future.”

Once again, registrants of either conference will gain access to each event’s education sessions, the exhibit hall, and most of the networking events. Both organizations also will offer review courses for their respective certifications, as well as separate, members-only activities.

Attendees can anticipate an expanded presence of information security-focused companies on the exhibit floor (in 2011, there were more than 75 companies), and the information security education tracks will nearly double from five to nine.

ASIS and (ISC)2 expect the Philadelphia location to attract very strong attendance. Both organizations have heavy concentrations of members in the U.S. Northeast Corridor. With Philadelphia’s easy accessibility, there is little doubt that ASIS 2012 and the (ISC)2 Security Congress will draw record numbers to these world-class security events.

Mark your calendar now—September 10-13, 2012, Philadelphia, Pa., USA. Registration and housing for ASIS 2012 and the (ISC)2 Security Congress are now open.

# # # #

About ASIS International

ASIS International is the leading organization for security professionals, with more than 37,000 members worldwide. Founded in 1955, ASIS is dedicated to increasing the effectiveness and productivity of security professionals by developing educational programs and materials that address broad security interests, such as the ASIS Annual Seminar and Exhibits, as well as specific security topics. ASIS also advocates the role and value of the security management profession to business, the media, government entities and the public. By providing members and the security community with access to a full range of programs and services, and by publishing the industry’s No. 1 magazine—Security Management—ASIS leads the way for advanced and improved security performance.

About (ISC)2

(ISC)² is the largest not-for-profit membership body of certified information security professionals worldwide, with over 80,000 members in more than 135 countries. Globally recognized as the Gold Standard, (ISC)² issues the Certified Information Systems Security Professional (CISSP®) and related concentrations, as well as the Certified Secure Software Lifecycle Professional (CSSLP®), Certified Authorization Professional (CAP®), and Systems Security Certified Practitioner (SSCP®) credentials to qualifying candidates. (ISC)²’s certifications are among the first information technology credentials to meet the stringent requirements of ISO/IEC Standard 17024, a global benchmark for assessing and certifying personnel. (ISC)² also offers education programs and services based on its CBK®, a compendium of information security topics. More information is available at www.isc2.org

ASIS Media Contact:

Leigh A. McGuire; phone: +1.703.518.1465
Email: leigh.mcguire@asisonline.org
Online: www.asisonline.org/newsroom

(ISC)2 Media Contact:

Michelle Schafer; phone: +1.703.390.1525
Email: schafer@merrittgrp.com
Online: https://www.isc2.org/news-and-media.aspx

Man Sentenced for Bribing a Public Official

2012-01-25T14:40:00.000-08:00

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Joe Phouthavongsa, 49, of Rochester, NY, who pleaded guilty to bribing a public official, was sentenced to five months in prison, five months of home confinement, and one year of supervised release by U.S. District Court Judge Richard J. Arcara.

Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Phouthavongsa gave an immigration official $5,000 in cash to pass two other unnamed individuals on an English language proficiency examination used in the naturalization process to obtain United States citizenship. Undercover law enforcement officers acted as immigration officials who were willing to accept a cash bribe in return for facilitating the naturalization of the associates of the two men. Phouthavongsa was arrested outside the U.S. Courthouse, along with co-defendant Sengchanh Sengsavath, after being told to appear there for a feigned naturalization ceremony for their associates. Phouthavongsa is a United States citizen who was originally born in the country of Laos.

Sengchanh Sengsavath, 48, of Rochester, also pleaded guilty to bribing a public official and will be sentenced on February 3, 2012 by Judge Arcara.

The sentencing is the culmination of an investigation by special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Gregory K. Null and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.

Eagle Butte Man Pleads Guilty to Sexual Contact

2012-01-25T14:38:00.000-08:00

U.S. Attorney Brendan V. Johnson announced that Daniel Red Horse, Jr., age 41, of Eagle Butte, appeared before U.S. District Judge Roberto A. Lange on January 19, 2012, and pled guilty to count two of the indictment that charged him with sexual contact. The maximum penalty upon conviction is two years’ imprisonment, a $250,000 fine, and five years of supervised release.

The conviction stems from a report on March 31, 2011, in which the Cheyenne River Sioux Department of Social Services received information that a minor had disclosed that the minor had been sexually abused by Daniel Red Horse, Jr. in 2009. A forensic interview was completed, and the victim indicated that the abuse occurred while the victim was sleeping.

Red Horse later admitted during an interview with a Federal Bureau of Investigation (FBI) agent that he sexually abused the victim while the victim was sleeping.

The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Britt M. Haxton.

A presentence investigation was ordered, and a sentencing date was set for April 16, 2012. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.

Minnesota Man Sentenced for Social Security Fraud

2012-01-25T14:36:00.001-08:00

U.S. Attorney Brendan V. Johnson announced that a Cloquet, Minnesota man charged with Social Security fraud was sentenced on January 23, 2012, by Chief U.S. District Judge Karen E. Schreier. Christopher Curtis, age 41, was sentenced to 15 months in prison, three years of supervised release, a $100 assessment to the Victim Assistance Fund, and restitution to health care providers in the total amount of $146,604.14.

Curtis was indicted for Social Security fraud by a federal grand jury on December 8, 2010. Between March 1, 2010, and April 30, 2010, Curtis falsely represented that a certain Social Security number was assigned to him, when such number was not assigned to him. During the relevant dates, Curtis received treatment at Avera McKennan Hospital and University Health Center in Sioux Falls. His treatment included an approximate two-week in-patient stay and several follow up treatments. He registered under a false name and a false Social Security number. Curtis pled guilty to the charge on November 2, 2011.

This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kevin Koliner prosecuted the case.

Curtis was immediately turned over to the custody of the U.S. Marshal.

Naples Man Pleads Guilty to Wire Fraud in Investment Fraud Scheme

2012-01-25T13:32:00.001-08:00

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Henry Gutierrez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announced that Anthony Zito, 64, of Naples, pled guilty to charges of conspiring to commit wire fraud related to an investment fraud scheme, in violation of Title 18, United States Code, Section 371. Zito is facing up to five years of prison time, along with a maximum of three years of supervised release. He is scheduled to be sentenced in front of U.S. District Court Judge Kathleen M. Williams on March 30, 2012.

According to the Information, court records, and statements in court, Zito owned and operated a firm titled Gladius Investments (Gladius) (which was also known as Maximus Holdings and Gladius International, S.A.). Zito founded Gladius in 2004 and acted as the officer, director, and president of Gladius since that time. From at least 2006 through November 3, 2011, Gladius purported to invest in silver bullion on behalf of investors. Investors would give Gladius money to invest in silver on the commodities market. Since approximately January 2009, Zito used a trading account at Berkeley Futures Limited (Berkeley) in London, England in the name of Gladius to invest in silver bullion. Between approximately January 2009 and July 2009, Gladius deposited $650,000.00 into the Berkeley trading account to buy silver on behalf of the company’s investors. On December 31, 2009, Gladius transmitted by electronic mail account statements to investors. The account statements contained the following information: (a) what the investor was investing in (silver); (b) the quantity of the silver that Gladius invested on behalf of the investor; (c) the current market price of the silver; (d) the value of the silver Gladius had invested in; and (e) the value of the Gladius account held by the investor. Collectively, Gladius advised the investors that Gladius had invested in 115,000 ounces of silver on the investors’ behalves. However, Gladius’ trading account statement from Berkeley for that same day showed that Gladius had no current or pending silver investments. On March 30, 2010, Gladius transmitted by electronic mail account statements to investors. Gladius told investors that it had invested in 20,000 ounces of silver on their behalves. However, Gladius’ trading account statement from Berkeley for that same day showed that Gladius had no current or pending silver investments. In addition to account statements, Gladius made available to its investors an internal database documenting the amount of silver held by Gladius, which provided a purported total value of the investors’ investment. For example, on June 8, 2010, Gladius’ internal database showed that the company had approximately 130 investors. According to the June 8, 2010 internal database, Gladius had invested in 1,271,500 ounces of silver on behalf of its investors, and the total value of that silver was $19,708,250. However, according to the June 2010 account statement for Gladius’ Berkeley trading account, Gladius had no more than 50,000 ounces of silver investments that month, and the total value of the trading account was approximately $672,000.00.

Mr. Ferrer commended the efforts of the FBI, the Postal Inspection Service, and Florida’s Office of Financial Regulation for their efforts in the investigation and prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Robert J. Luck.

Former Farmington Resident Admits Robbing Branford Bank

2012-01-25T13:31:00.000-08:00

David B. Fein, United States Attorney for the District of Connecticut, announced that JAMES BIEU, 51, formerly of Farmington, pleaded guilty today before Senior United States District Judge Ellen Bree Burns in New Haven to one count of bank robbery.

According to court documents and statements made in court, at approximately 11:40 a.m. on January 3, 2011, BIEU entered the Peoples United Bank located in a Super Stop & Shop grocery store at 22 Leetes Island Road in Branford. He then approached a bank teller and demanded, “Give me good money or die.” The teller gave BIEU $8,439.

Judge Burns has scheduled sentencing for April 20, 2012, at which time WOODWARD faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

BIEU has been incarcerated since January 29, 2011, after he was arrested by the West Haven Police Department.

This case is being investigated by the Federal Bureau of Investigation, with the assistance of the Branford, Hamden and West Haven Police Departments. The case is being prosecuted by Assistant United States Attorney Elizabeth A. Latif.

Sean Widmer Sentenced for Receipt of Child Pornography

2012-01-25T13:28:00.000-08:00

KNOXVILLE, TN—Sean Jay Widmer, 41, of Concord, Tenn., was sentenced today in U.S. District Court in Knoxville, to serve 97 months in federal prison and supervised release for five years upon his release from prison. Widmer pleaded guilty on February 22, 2011, to an indictment charging him with receipt of child pornography. The sentencing was held before U.S. District Court Judge Thomas W. Phillips.

Widmer came to the attention of law enforcement through an online investigation conducted by the Knoxville Police Department, Internet Crimes Against Children Task Force (ICAC). A subsequent forensic examination found seven images and 134 videos of child pornography on his computer.

This conviction was the result of an investigation by the ICAC Units of the Knoxville Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.

Nebraska Man Pleads Guilty to Cattle Theft

2012-01-24T20:54:00.001-08:00

JEFFERSON CITY, MO—Beth Phillips, United States Attorney for the Western District of Missouri, announced today that a Smithfield, Nebraska man has pleaded guilty in federal court today to a cattle scheme in Callaway County, Mo.

Allen John Foos, 47, of Smithfield, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Monday, Jan. 23, 2012, to transporting stolen livestock across state lines.

Foos admitted that he used an alias to order cattle from the Callaway Livestock Center using order buyers (middlemen). In some cases, Foos obtained the cattle then sold them without paying the sale barn. In other cases, Foos eventually paid the sale barn for the cattle by using the proceeds from a later cattle transaction. The government contends that the amount of loss in the cattle scheme exceeded $200,000, including similar purchases made in other states.

For example, according to his plea agreement, Foos purchased 167 head of cattle using the alias of J&M Cattle Company of Shelton, Kan. A $116,944 check for payment bounced; although $49,995 was later paid by wire transfer, the remaining balance has never been paid. This is the transaction related to the specific charge contained in the April 4, 2011, indictment to which Foos pleaded guilty today.

Under federal statutes, Foos is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the U.S. Department of Agriculture-Packers and Stockyards Administration and the Missouri State Highway Patrol.

Ramah Navajo Man Pleads Guilty to Federal Assault Charge

2012-01-24T20:34:00.001-08:00

ALBUQUERQUE—This morning in federal court in Albuquerque, Kerley K. Biggs, 22, entered a guilty plea to a federal assault with a deadly weapon charge under a plea agreement with the U.S. Attorney’s Office. Biggs, an enrolled member of the Navajo Nation who resides in Ramah, N.M., faces a maximum penalty of 10 years in prison. Biggs has been in federal custody since his arrest on October 3, 2011, and remains detained pending his sentencing hearing.

U.S. Attorney Kenneth J. Gonzales said that Biggs was charged in a two-count indictment that was filed on September 27, 2011. The indictment charged Biggs with (1) assault with a dangerous weapon, and (2) assault resulting in serious bodily injury. According to the indictment, the assault occurred on September 25, 2010 on the Navajo Indian Reservation in Cibola County, N.M.

During today’s hearing, Biggs plead guilty to count one of the indictment. According to the plea agreement, on September 25, 2010, Biggs assaulted another Navajo man by beating him about the head and face with a metal expandable baton at Biggs’ residence in Ramah, N.M., As a result of the assault, the victim required medical treatment for numerous injuries to his head, left cheek, and left eye. The victim sustained a significant wound to the back of his head that required 12 staples to repair.

The case was investigated by the Federal Bureau of Investigation and Navajo Nation Department of Public Safety, Ramah Navajo Division, and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.

Topsham Woman Sentenced to Almost Three Years for Stealing Money from Credit Union

2012-01-24T20:33:00.001-08:00

PORTLAND, ME—United States Attorney Thomas E. Delahanty II announced today that Marsha Richard, 42, of Topsham, Maine, was sentenced by U.S. District Judge D. Brock Hornby in U.S. District Court in Portland to 33 months’ imprisonment for theft by a credit union employee. In addition, Judge Hornby sentenced Richard to serve a five-year term of supervised release and to pay restitution in an amount to be determined in a future proceeding. Richard pleaded guilty to the charge on September 23, 2011.

According to court records, from about November of 2004 to October of 2010, Richard, who was an employee of Atlantic Regional Federal Credit Union in Brunswick, engaged in a scheme to steal credit union funds. Richard manipulated accounting entries for checks that credit union members had deposited but that had been returned for insufficient funds. Instead of crediting the appropriate internal account, Richard credited accounts of family members or friends, or other accounts to which she had access. She then accessed the funds that she had wrongfully diverted for her own use. Richard stole over $500,000 of Atlantic Regional funds through her scheme. The credit union, not the individual members whose checks had been returned for insufficient funds, suffered the loss from Richard’s theft.

The investigation that led to today’s proceeding was conducted by the Federal Bureau of Investigation and the Brunswick Police Department.

IPR Center welcomes Europol as its 20th partner agency

2012-01-24T20:32:00.000-08:00

WASHINGTON – In an effort to bolster international police partnerships and information sharing on intellectual property crime, the European Police Office (Europol) joined the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations-led National Intellectual Property Rights Coordination Center (IPR Center) to become the center's 20th partner agency.

During today's ceremony marking the alliance, IPR Center Director Lev Kubiak and Europol Operations Department Assistant Director Troels Oerting signed an agreement, outlining the collaborative investigative efforts and cooperation protocols.

"I'm excited about this new partnership with Europol, which greatly enhances cooperation and leverages greater resources, skills and authorities," said Kubiak. "We will continue to work closely with our international and domestic law enforcement partners to facilitate global investigations and continue to crack down on transnational IP theft."

"I very much welcome this closer and improved link with the ICE IPR Coordination Center," said Europol Director Rob Wainwright. "Intellectual property theft is a rapidly growing and evolving area of criminal activity, with a massive economic cost to business and society, which we must work hard to minimize. By sharing intelligence and best practices, the cooperation between our two agencies will inevitably lead to future operational successes."

Founded in 2000, the IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. The center uses the expertise of its 20 member agencies to share information, develop initiatives, coordinate enforcement actions, and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.

Europol is the European law enforcement agency whose mission is to support the European Union (EU) Member States in preventing and combating all forms of serious transnational crime and terrorism. Europol received the mandate to work on intellectual property-related crime in 2002. For years now, Europol has improved operational expertise and networking facilities in EU Member States and beyond. In 2010, for example, a key operation was coordinated by Europol and the EU's Judicial Cooperation Unit, covering 10 different EU countries, and led to the dismantling of an organized criminal network linked to the Camorra in Naples, Italy.

The center employs a true task force model to optimize the roles and enforcement efforts of member agencies, while enhancing government-industry partnerships to support ongoing IPR enforcement initiatives.

Europol is the fourth international partner agency and joins the center's other 19 partner agencies, which include:

• U.S. Immigration and Customs Enforcement's Homeland Security Investigations

•           U.S. Customs and Border Protection
•           Federal Bureau of Investigation
•           U.S. Postal Inspection Service
•           Food and Drug Administration, Office of Criminal Investigations
•           Department of Commerce, International Trade Administration
•           Naval Criminal Investigative Service
•           Defense Criminal Investigative Service
•           U.S. Army Criminal Investigative Command, Major Procurement Fraud Unit
•           Defense Logistics Agency, Office of Inspector General
•           Air Force Office of Special Investigations
•           U.S. Patent and Trademark Office
•           General Services Administration, Office of Inspector General
•           Consumer Product Safety Commission
•           National Aeronautics and Space Administration, Office of Inspector General
•           U.S. Department of State, Office of International Intellectual Property Enforcement
•           International Criminal Police Organization
•           Mexican Revenue Service
•           Royal Canadian Mounted Police

To report IP theft or to learn more about the IPR Center, visit IPRCenter.gov.

Hogsett Announces 25-Year Sentence for Indianapolis Cocaine Kingpin

2012-01-23T22:15:00.000-08:00

Federal-Local Collaboration Results in Dismantling of Organized Crime Ring

INDIANAPOLIS—Joseph H. Hogsett, United States Attorney, announced that Juan Carlos Adame-Hernandez, a/k/a Armando Maldonado-Bernave, age 41, of Indianapolis, has been sentenced to 25 years in federal prison by U.S. District Judge Sarah Evans Barker following his guilty plea to conspiracy to distribute cocaine.

“This investigation and prosecution is the direct result of collaboration between federal and local law enforcement,” Hogsett said. “Working together, we’ve dismantled a dangerous cocaine trafficking operation in Indianapolis. Mr. Adame-Hernandez has been given an appropriate prison sentence that fits the serious nature of such organized violent crime. He will not walk the streets of Indianapolis for a long, long time.”

The prosecution was the result of an investigation directed by the Federal Bureau of Investigation’s Safe Streets Task Force and assisted by the Drug Enforcement Administration. Other law enforcement agencies that participated in the investigation included the Internal Revenue Service, Indianapolis Metropolitan Police Department, Speedway Police Department, and other federal, state, and local law enforcement agencies.

Adame-Hernandez was the leader of a cocaine trafficking organization that operated throughout Indianapolis, distributing between four and five kilograms of cocaine per week from January 2007 through his arrest on December 15, 2009.

The Adame-Hernandez organization supplied Ramone Mockabee with powder cocaine. Mockabee then converted that powder cocaine into crack cocaine and distributed the crack cocaine to from a “crack house” located on West 25th Street. Adame-Hernandez, Mockabee, and eighteen other co-defendants were indicted by a federal grand jury in January 2010 on charges of conspiracy to distribute cocaine and related offenses.

According to Assistant U.S. Attorney Bradley A. Blackington, who prosecuted the case for the government, a number of defendants have received significant sentences as a result of this investigation, including Kenneth Jones (life imprisonment), Mockabee (360 months), Devon Young (360 months), Elisha Drake (240 months), Damon Luter (210 months), and Lonnie Belmar (200 months).

Former Fulton County Detention Officer Pleads Guilty to Public Corruption and Drug Trafficking Charges

2012-01-23T22:13:00.001-08:00

Anthony is Fourth Jail Employee to be Convicted Recently in Federal Court of Accepting Bribes to Smuggle Contraband into County Jail

ATLANTA—Former Fulton County Jail Detention Officer BRIAN SHELBY ANTHONY, 31, of Atlanta, Georgia, pleaded guilty today in federal district court to attempted possession with intent to distribute cocaine and marijuana, and to accepting bribes of more than $26,000 to facilitate the distribution of drugs inside the county jail and other locations in the Atlanta metropolitan area.

United States Attorney Sally Quillian Yates said, “It is bad enough when a law enforcement officer falls to the temptation to cash in on his badge, even once. This former officer sold his badge over and over again in different types of crimes without any apparent regard for the public’s safety. This repeated criminal activity is the opposite of what an officer with a conscience stands for. Both in and outside the jail, there are hundreds of good and respected officers who will not trade the public’s trust for a payoff.”

Brian D. Lamkin, Special Agent in Charge, FBI Atlanta Field Office, said, “Today’s plea brings to a quick close one man’s career in law enforcement. This defendant was not only willing to profit from his position of trust on the streets, but was also willing to place his peers in harm’s way by undermining rules, regulations, and the law by allowing contraband into the Fulton County Detention Facility. The FBI will continue to work with the Fulton County Sheriff on such matters and asks that anyone with information regarding public corruption, to include that of law enforcement officers, contact their nearest FBI field office.”

Fulton County Sheriff Theodore “Ted” Jackson said, “This individual disgraced the uniform by taking bribes and egregiously disregarding his oath which endangered the public that he swore to protect and serve with integrity. The Fulton County Sheriff’s Office owes a great deal of gratitude to the Federal Bureau of Investigation for helping this agency be rid of corrupt individuals such as Brian Shelby Anthony. There is zero tolerance for the smuggling of contraband at the Fulton County Jail. Internal procedures have been established to address this issue as well as improving security for our employees, inmates, and visitors.”

According to United States Attorney Yates, the charges, and other information presented in court: On February 18, 2011, ANTHONY, while employed as a detention officer at the Fulton County Jail, accepted $950 from an individual working with the FBI in an undercover capacity to deliver an ounce of fake marijuana along with four cellular telephones and cigarettes to a specific inmate inside the jail. Then on April 19, 2011, ANTHONY accepted $1000 to deliver another ounce of fake marijuana, three cellular telephones and cigarettes to the same inmate. On each occasion, after accepting the bribes, ANTHONY made the deliveries to the specific inmate as planned. The contraband was then collected by investigators.

In the weeks between April 19, 2011 and May 4, 2011, an FBI undercover agent spoke with ANTHONY about protecting drug deals outside of the jail. ANTHONY expressed interest and agreed to provide protection for cocaine deliveries.

On three occasions between May 4, 2011 and June 2, 2011, ANTHONY, dressed in his Fulton County Sheriff’s Office uniform, provided protection for undercover transactions which he believed to be drug deals involving multiple kilograms of cocaine. The transactions occurred in Atlanta, Lawrenceville and Norcross. ANTHONY agreed to protect each drug deal in exchange for a cash payment and accepted three bribes totaling $25,000.

ANTHONY was indicted in June, 2011. He could receive a maximum sentence of 40 years in prison and a fine of up to $5,000,000 for each cocaine offense, a maximum sentence of five years in prison and a fine of up to $250,000 for each marijuana offense and a maximum sentence of 20 years in prison and a fine of up to $250,000.00 for the extortion offenses. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. Sentencing for ANTHONY is set for March 26, 2012, at 10 a.m., before United States District Judge Steve C. Jones.

ANTHONY is the fourth former Fulton County law enforcement officer to recently plead guilty in federal court.

■On November 29, 2011, former Detention Officer Ail Scott, 32, of Atlanta, pleaded guilty to two counts of attempted possession with the intent to distribute cocaine inside the county jail and two counts of extortion under color of official right for accepting $650 to smuggle drugs into the jail.

■On November 8, 2011, former Deputy Sheriff Marcie Thriven Dingle, Jr., 34, of Lithonia, Georgia, pleaded guilty to two counts of attempted possession with the intent to distribute cocaine inside and outside the county jail and two counts of extortion under color of official right for accepting more than $2,000 to smuggle drugs into the jail and to protect a drug transaction outside of the jail.

■On October 24, 2011, former Detention Officer Derrick Dasheen Frazier, 32, of Stock bridge, Georgia, pleaded guilty to one count of extortion under color of official right for accepting $300 to smuggle mobile telephones into the county jail.

This case is being investigated by special agents of the Federal Bureau of Investigation.

Assistant United States Attorney Brent Alan Gray is prosecuting the case.

Baltimore Drug Trafficker Sentenced to 10 Years in Prison

2012-01-23T22:11:00.001-08:00

Drug Organization Processed and Sold Heroin Near a Charter School in Baltimore

BALTIMORE—U.S. District Judge J. Frederick Motz sentenced Lamont Causion, age 40, of Baltimore, today to 10 years in prison followed by eight years of supervised release for conspiracy to possess with the intent to distribute heroin.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; Baltimore Police Commissioner Frederick H. Bealefeld III; Major Michael Kundrat, Senior Commander of the Maryland Transportation Authority Police; Michael A. Pristoop, Chief of the Annapolis Police Department; Anne Arundel County Police Chief James Teare, Sr.; Colonel Marcus Brown, Superintendent of the Maryland State Police; Special Agent in Charge Ava Cooper-Davis of the Drug Enforcement Administration-Washington Field Division; and Chief James W. Johnson of the Baltimore County Police Department.

According to his guilty plea, Causion was intercepted on his cellular telephone making arrangements to purchase heroin from Christian Gettis, which Causion then sold to his own customers. For example, on August 10, 2010, Causion called Gettis to question whether Gettis had sold 100 grams of heroin since Causion’s scale read only 99 grams. On October 9, 2010, Causion and Gettis were overheard complaining about the quality of heroin that Gettis received and sold to Causion. On November 6, 2010, Causion was overheard making arrangements to meet Gettis to buy heroin. Causion conspired with Gettis and others to distribute between 700 grams and one kilogram of heroin.

Causion was part of a drug trafficking organization which used a location that was less than 1,000 feet from a charter school in Baltimore City to process and distribute heroin. The investigation revealed that the conspirators distributed heroin in Baltimore, Baltimore County, Anne Arundel County, and a housing project in Annapolis.

To date, 12 defendants, including the ringleader, Christian Devlon Gettis, a/k/a “Cutty Rock,” “C,” and “Chris,” age 39, of Baltimore, have pleaded guilty to their participation in the drug trafficking conspiracy. Judge Motz has scheduled Gettis’ sentencing for February 17, 2012.

United States Attorney Rod J. Rosenstein praised the FBI and FBI agents in Baltimore, Annapolis, and Washington, D.C.; the Baltimore Police Department; MdTA Police; the Annapolis Police Department; the Anne Arundel County Police Department; the Maryland State Police; FBI agents in New York, New Jersey, and Pennsylvania; the DEA; and the Baltimore County Police Department for their work in the arrest of the defendants, the searches, and the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Norfolk Man Pleads Guilty to Health Care Fraud and Bank Fraud

2012-01-23T17:07:00.000-08:00

On January 19, 2012, Mark Koehler, 52 years old, of Norfolk, Nebraska, appeared before Magistrate Judge Cheryl Zwart in federal court in Lincoln, Nebraska, waived indictment, and pled guilty to an information charging health care fraud and bank fraud. The information charged, and Koehler admitted, that between January 2007 and January 2010, in his position as bookkeeper and accountant for Heartland Physical Therapy (HPT) in Norfolk, he submitted false claims to Medicare, Nebraska Medicaid, and to various private insurance companies totaling slightly more than $1.4 million. The information further charged, and Koehler admitted, that during the same time period he submitted false information to a Norfolk bank in connection with a business lending program, resulting in the bank advancing to HPT approximately $500,000 more than HPT was actually entitled to receive under the program. Sentencing was scheduled for April 24, 2012.

Koehler self-reported his crimes and cooperated in the investigation. As a consequence, his plea agreement provides that the defendant will be sentenced to three years’ incarceration, along with an order of full restitution. The case was investigated by the U.S. Department of Health & Human Services and the Federal Bureau of Investigation, with assistance from the Nebraska Medicaid program.

Loan Officer Sentenced for Role in Mortgage Fraud Scheme

2012-01-23T17:05:00.001-08:00

TAMPA, FL—U.S. Attorney Robert E. O’Neill announces that U.S. District Judge Steven D. Merryday today sentenced Andrew F. Vulpis (30, Gibsonton) to 30 months in federal prison for conspiracy to commit bank fraud. As part of his sentence, the court also entered a money judgment in the amount of $1,245,145.26, the proceeds of the charged criminal conduct. Vulpis forfeited a 2007 Volvo S40-5 sedan as a substitute asset in partial satisfaction of the money judgment.

Vulpis pleaded guilty on November 4, 2011.

According to court documents, from May 2007 through December 2007, Vulpis, who was then employed as an officer of Wachovia Bank in Tampa, Florida, played a role in 12 residential real estate transactions in Hillsborough and Pasco Counties. All of the transactions involved fraud.

With respect to 11 of the real estate transactions, Vulpis, in his capacity as an officer of Wachovia Bank, caused the submission of false and fraudulent loan applications to Wachovia Bank. Specifically, Vulpis knew that the income of the applicants stated on all 11 loan applications was materially inflated. As to 10 of these real estate transactions, he knew that the applicants failed to qualify for the particular Wachovia Bank loan program. In four instances, Vulpis caused the disbursement of loan proceeds to his co-conspirator, who was the seller of the subject properties.

In one of the real estate transactions, which took place on December 28, 2007, Vulpis purchased a residential property owned by a co-conspirator—a residence located at 7326 Sheffield Road, Tampa, Florida 33615. The sales price was $200,000, and Vulpis applied for a $180,000 mortgage loan from the Bank of America. In the loan application, Vulpis falsely inflated his income and assets, as well as the amount of money that he would contribute toward the down payment. A co-conspirator provided Vulpis with the money for the down payment, but neither Vulpis nor the co-conspirator disclosed to the Bank of America, a FDIC-insured institution, the fact that the co-conspirator was the source of the down payment.

Co-conspirator Sang Min Kim pleaded guilty on June 15, 2010 and was sentenced to 41 months’ imprisonment. Another co-conspirator, Francisco Acevedo, Jr., pleaded guilty for his role on September 9, 2011 and is awaiting sentencing.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.

Individuals Plead Guilty in Two Detroit Medicare Fraud Cases

2012-01-23T17:04:00.000-08:00

WASHINGTON—Four individuals pleaded guilty today in Detroit for their roles in a $14 million Medicare fraud scheme. In a separate case, the owner of a Detroit psychotherapy clinic also pleaded guilty today for his role in a $3 million Medicare fraud scheme.

The guilty pleas were announced by the Department of Justice, the FBI and the Department of Health and Human Services (HHS).

Curtis Mallory, 38, Theodore Haile, 33, Maira Suleman, 31, and John Thomas, 33, each pleaded guilty before U.S. District Judge Denise Page Hood of the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Gerald R. Funderburg Jr., 32, pleaded before U.S. District Judge Stephen Murphy in the Eastern District of Michigan to one count of health care fraud.

According to court documents, Mallory, Haile, Suleman, and Thomas participated in a fraud scheme at two Oakland County, Mich., home health agencies, Patient Choice Home Care Inc. and All American Home Care Inc. Mallory and Haile were patient recruiters for the home health agencies and admitted to paying kickbacks to Medicare beneficiaries in exchange for the beneficiaries’ Medicare information and signatures on therapy documents. The owners and operators of Patient Choice and All American paid Mallory and Haile for each patient they recruited, and then billed Medicare for physical therapy services that were medically unnecessary and never provided.

Thomas was a physical therapist for Patient Choice and All American and admitted that he was paid to fabricate therapy documents at the home health agencies for patients who did not receive and/or did not need the services billed by the agencies to Medicare. According to court documents, Suleman was the office manager at Patient Choice. Suleman admitted that she oversaw data entry at Patient Choice and designed various systems to facilitate the entry of false billing data into electronic databases used to bill Medicare. Suleman also admitted that she worked with recruiters and physical therapists to collect and maintain pre-signed visit forms used by the therapists to fabricate false therapy visit documents.

According to court documents in the separate case against Funderberg, from November 2006 to April 2011, Funderberg knowingly used the Medicare information of approximately 476 beneficiaries, without their consent, to bill Medicare for psychotherapy services purportedly rendered by his company, Funderburg Clinical and Community Services Inc. (FCCS). These services were medically unnecessary and/or were never provided. To implement the scheme, Funderburg admitted that he obtained the Medicare information of licensed social workers without their knowledge and used this information at FCCS to claim that these social workers provided individual and group psychotherapy sessions.

Funderburg admitted that he caused FCCS to submit approximately 4,658 claims to Medicare, totaling approximately $3.3 million, for psychotherapy and related services that were not provided and/or were not medically necessary.

Sentencing for Mallory, Haile, Suleman and Thomas is scheduled for April 19, 2012. Sentencing for Funderberg is scheduled for June 8, 2012. Each defendant faces a maximum penalty of 10 years in prison and a $250,000 fine.

Today’s pleas 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 (HHS-OIG) Chicago Regional Office.

The cases are being prosecuted by Assistant Chief Gejaa T. Gobena and Trial Attorney William Kanellis 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, the strike force operations in nine districts have charged more than 1,160 individuals who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to Stopmedicarefraud.gov.

Federal Jury Convicts Fayetteville Bank Robbers

2012-01-23T17:02:00.000-08:00

GREENVILLE—United States Attorney Thomas G. Walker announced that in federal court on January 19, 2012, a jury found two defendants guilty of charges related to the November 1, 2010, bank robbery of a Fayetteville, North Carolina, bank. LARRY RODGERS, JR., 30, and RODNEY ANTAWAN BROWN, also 30, were each found guilty of conspiring to commit bank robbery, in violation of Title 18, United States Code, Section 371; armed bank robbery, in violation of Title 18, United States Code, Sections 2113(a) and (d); and using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c).

According to the July 27, 2011 criminal indictment, on November 1, 2010, following their discussion of the bank robbery, RODGERS and BROWN traveled to the First Citizens Bank on Ramsey Street in Fayetteville. Evidence presented at trial showed that RODGERS, carrying a duffel bag, and BROWN, holding a black semiautomatic handgun, both approached the teller counter. BROWN vaulted the teller counter, threatened to shoot the tellers, and started pulling money from the teller drawers. Both bait bills and dye packs were placed in the duffel bag. Both robbers left the bank and got into the getaway car, with BROWN driving. RODGERS was in the passenger seat with the duffel bag, containing $20,700, on his lap. As they left the scene, a dye pack went off, staining RODGERS’ jeans. Shortly after the robbery, law enforcement located the getaway car and attempted a stop of the vehicle. Following an automobile and foot chase, RODGERS was located hiding in a trash can. Brown was located and arrested seven days later in South Carolina after leading officers on a high-speed chase.

At sentencing, set for the May 8, 2012, term of court, each defendant faces up to five years’ imprisonment for the conspiracy charge. For the armed bank robbery charge, each defendant faces up to 25 years’ imprisonment and for the firearm charge, each defendant faces up to a life-term of imprisonment consecutive to any other sentence imposed.

Investigation of this case was conducted by the Federal Bureau of Investigation and the Fayetteville Police Department. Thank you to the Fort Bragg Military Police for their assistance during the search of the defendants. Assistant United States Attorney Felice McConnell Corpening is prosecuting the case.

Border Patrol Seizes Pot Valued at $1.6+ Million

2012-01-23T16:45:00.000-08:00

Tucson, Ariz. – Seven narcotics smugglers and 126 bundles of marijuana worth in excess of $1.6 million were picked up yesterday by Tucson Sector Border Patrol agents working in multiple locations throughout southern Arizona.

Casa Grande agents aided by detection technology apprehended five Mexican nationals and seized 11 backpacks of marijuana weighing 571 pounds. The subjects were transported to the station for processing and will face federal charges. The narcotics, valued at $285,500, will be turned over to the Drug Enforcement Administration.

Two smugglers attempting to elude authorities by splitting up and abandoning their vehicles were apprehended by agents from the Nogales Station. The vehicles contained a total of 82 bundles of marijuana weighing 1,985 pounds and worth an estimated $992,500. The vehicles were seized and the subjects will face federal charges. The narcotics will be turned over to DEA.

In a third incident, agents from Ajo Station’s All Terrain Unit responded to a report of narcotics smuggling four miles north of the border, east of the Lukeville port. Agents assisted by a Border Patrol canine team discovered 33 bundles of abandoned marijuana weighing 765 pounds. The drugs, valued at $382,500, will be turned over to the DEA.

Transnational criminal organizations are using various methods in attempts to commit illegal activity. However, with an adequate deployment of technology, infrastructure and manpower, the Tucson Sector Border Patrol is significantly disrupting their efforts.

Customs and Border Protection welcomes assistance from the community. Citizens can report suspicious activity to the Border Patrol and remain anonymous by calling (877) 872-7435 toll free.

All CBP assets in Arizona were realigned under a unified command structure in February 2011. Joint Field Command – Arizona unifies the Tucson and Yuma Border Patrol Sectors and Air Branches, as well as the Tucson Field Office, to enhance border security, commercial enforcement and trade facilitation missions to meet Arizona’s unique challenges. Follow us on Twitter @CBPArizona or visit CBP Arizona for more information.