January 19, 2010 - Bernie Madoff stole billions, but two brothers in Michigan recently put a different twist on the traditional Ponzi scheme. They started out as willing participants in a get-rich-quick oil and gas scheme, only to learn it was all a fraud. Then, they decided to turn the tables...Over the years, Jay and Eric Merkle had become well known and well liked in the community of Williamston and the surrounding area. They were successful and charismatic businessmen running their own company. They were active members of their church with plenty of family and friends.
But in 2004, they decided to take their lives in a different direction. That's when they realized that they had invested in an oil and gas exploration venture that was nothing but a scam. Instead of contacting authorities, the brothers chose to take a criminal turn: they continued working with those who had conned them in the first place...in the hopes of keeping the scheme afloat and recouping some of their losses.
They started by setting up their own front company—Platinum Business Industries (PBI)—ostensibly in the business of oil and gas exploration in Texas and Oklahoma. They promised potential investors high rates of return—up to six percent a month or 300 percent over three to five years. And they said that the risk was low, because even if no oil or gas was found, the land could be sold to recoup any money spent.
And where did they turn for their initial investors? To their family, friends, and fellow church members.
In traditional Ponzi style, it was all a house of cards. The investors’ money wasn’t used for oil and gas exploration. Instead, the Merkles used some of the funds to pay initial investors and used much of the rest to gamble on still more bogus get-rich-quick schemes (the brothers apparently didn't learn their lesson as previous Ponzi victims).
After bleeding their own clients dry, the brothers recruited crooked brokers, tax advisors, investment advisors, and other financial representatives—some in other states and even Canada—to find more investors. Eventually, that well also ran dry. To calm investors down, the brothers claimed they had a Nigerian buyer for their previous oil and gas assets and just needed some more money to get his $400 million into the U.S.
Our investigation of the Merkles began when we were tipped off by a bank that noticed more than a million dollars had been moved through an account owned by the brothers. And after painstakingly questioning hundreds of witnesses, examining thousands of bank documents, reviewing e-mail correspondence, and interviewing victims, we determined that the Merkles’ schemes were responsible for about 600 investors in more than 20 shell companies losing upwards of $50 million—many their entire life savings, including IRAs.
In the end, the brothers were convicted in court and given 10-year sentences (two other men who helped them also landed in jail).
Their story is a lesson for us all. First, contact the FBI or other authorities if you suspect criminal activity. And second, beware of scams that sound too good to be true. They always are.
Tuesday, January 19, 2010
Law Enforcement Products Companies Charged
Twenty-Two Executives and Employees of Military and Law Enforcement Products Companies Charged in Foreign Bribery Scheme - Defendants Arrested in Las Vegas and Miami; 21 Search Warrants Executed in United States and United Kingdom
January 19, 2010 - Twenty-two executives and employees of companies in the military and law enforcement products industry have been indicted for engaging in schemes to bribe foreign government officials to obtain and retain business, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Channing Phillips for the District of Columbia; and Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division. Twenty-one defendants were arrested in Las Vegas yesterday. One defendant was arrested in Miami. The indictments stem from an FBI undercover operation that focused on allegations of foreign bribery in the military and law enforcement products industry.
The 16 indictments unsealed today represent the largest single investigation and prosecution against individuals in the history of DOJ’s enforcement of the Foreign Corrupt Practices Act (FCPA), a law that prohibits U.S. persons and companies, and foreign persons and companies acting in the United States, from bribing foreign government officials for the purpose of obtaining or retaining business. The indictments unsealed today were returned on Dec. 11, 2009, by a grand jury in Washington, D.C.
In connection with these indictments, approximately 150 FBI agents executed 14 search warrants in locations across the country, including Bull Shoals, Ark.; San Francisco; Miami; Ponte Vedra Beach, Fla.; Sarasota, Fla.; St. Petersburg, Fla.; Sunrise, Fla.; University Park, Fla.; Decatur, Ga.; Stearns, Ky.; Upper Darby, Penn.; and Woodbridge, Va. Additionally, the United Kingdom’s City of London Police executed seven search warrants in connection with their own investigations into companies involved in the foreign bribery conduct that formed the basis for the indictments.
“This ongoing investigation is the first large-scale use of undercover law enforcement techniques to uncover FCPA violations and the largest action ever undertaken by the Justice Department against individuals for FCPA violations,” said Assistant Attorney General Lanny A. Breuer. “The fight to erase foreign bribery from the corporate playbook will not be won overnight, but these actions are a turning point. From now on, would-be FCPA violators should stop andponder whether the person they are trying to bribe might really be a federal agent.”
“Corrupt payments to foreign officials to obtain or retain business erode public confidence in our free market system and threaten to undermine foreign governments,” said U.S. Attorney Channing Phillips. “These indictments set forth serious allegations and reflect the Department's commitment to aggressively investigate and prosecute those who try to advance their businesses through foreign bribery.”
“Investigating corruption at all levels is the number one priority of the FBI’s Criminal Division,” said Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division. “In this era of global commerce, the FBI is committed to curbing corruption at home or overseas. Companies should prosper through honest business practices, not the practice of back room deals and bribery.”
The indictments allege that the defendants engaged in a scheme to pay bribes to the minister of defense for a country in Africa. In fact, the scheme was part of the undercover operation, with no actual involvement from any minister of defense. As part of the undercover operation, the defendants allegedly agreed to pay a 20 percent “commission” to a sales agent who the defendants believed represented the minister of defense for a country in Africa in order to win a portion of a $15 million deal to outfit the country’s presidential guard. In reality, the “sales agent” was an undercover FBI agent. The defendants were told that half of that “commission” would be paid directly to the minister of defense. The defendants allegedly agreed to create two price quotations in connection with the deals, with one quote representing the true cost of the goods and the second quote representing the true cost, plus the 20 percent “commission.” The defendants also allegedly agreed to engage in a small “test” deal to show the minister of defense that he would personally receive the 10 percent bribe.
The indictments charge the following executives and employees of the various companies in the military and law enforcement product industries:
• Daniel Alvirez, 32, and Lee Allen Tolleson, 25, the president and director of acquisitions and logistics at a company in Bull Shoals, Ark., that manufactures and sells law enforcement and military equipment;
• Helmie Ashiblie, 44, the vice president and founder of a company in Woodbridge, Va., that supplies tactical bags and other security-related articles for law enforcement agencies and governments worldwide;
• Andrew Bigelow, 40, the managing partner and director of government programs for a Sarasota, Fla., company that sells machine guns, grenade launchers and other small arms and accessories;
• R. Patrick Caldwell, 61, and Stephen Gerard Giordanella, 50, the current and former chief executive officers of a Sunrise, Fla., company that designs and manufactures concealable and tactical body armor;
• Yochanan R. Cohen, aka Yochi Cohen, 47, the chief executive officer of a San Francisco company that manufactures security equipment, including body armor and ballistic plates;
• Haim Geri, 50, the president of a North Miami Beach, Fla., company that serves as a sales agent for companies in the law enforcement and military products industries;
• Amaro Goncalves, 49, the vice president of sales for a Springfield, Mass., company that designs and manufactures firearms, firearm safety/security products, rifles, firearms systems and accessories;
• John Gregory Godsey, aka Greg Godsey, 37, and Mark Frederick Morales, 37, the owner and agent of a Decatur, Ga., company that sells ammunition and other law enforcement and military equipment;
• Saul Mishkin, 38, the owner and chief executive officer of an Aventura, Fla., company that sells law enforcement and military equipment;
• John M. Mushriqui, 28, and Jeana Mushriqui, 30, the director of international development and general counsel/U.S. manager of an Upper Darby, Penn., company that manufactures and exports bulletproof vests and other law enforcement and military equipment;
• David R. Painter, 56, and Lee M. Wares, 43, the chairman and director of a United Kingdom company that markets armored vehicles;
• Pankesh Patel, 43, the managing director of a United Kingdom company that acts as sales agent for companies in the law enforcement and military products industries;
Ofer Paz, 50, the president and chief executive officer of an Israeli company that acts as sales agent for companies in the law enforcement and military products industries;
• Jonathan M. Spiller, 58, the owner and president of a Ponte Vedra Beach, Fla., company that markets and sells law enforcement and military equipment;
• Israel Weisler, aka Wayne Weisler, 63, and Michael Sachs, 66, owners and co-chief executive officers of a Stearns, Ky., company that designs, manufactures and sells armor products, including body armor;
• John Benson Wier III, 46, the president of a St. Petersburg, Fla., company that sells tactical and ballistic equipment.
All of the defendants except Giordanella were arrested yesterday by FBI agents in Las Vegas. Giordanella was arrested in Miami, also by FBI agents.
Each of the indictments allege that the defendants conspired to violate the FCPA, conspired to engage in money laundering, and engaged in substantive violations of the FCPA. The indictments also seek criminal forfeiture of the defendants’ ill gotten gains.
The maximum prison sentence for the conspiracy count and for each FCPA count is five years. The maximum sentence for the money laundering conspiracy charge is 20 years in prison.
These cases are being prosecuted by Assistant Chief Hank Bond Walther and Trial Attorney Laura N. Perkins of the Criminal Division’s Fraud Section, and Matthew C. Solomon of the U.S. Attorney’s Office for the District of Columbia. The cases were investigated by the FBI Washington Field Office squad that specializes in investigations into FCPA violations.
January 19, 2010 - Twenty-two executives and employees of companies in the military and law enforcement products industry have been indicted for engaging in schemes to bribe foreign government officials to obtain and retain business, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Channing Phillips for the District of Columbia; and Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division. Twenty-one defendants were arrested in Las Vegas yesterday. One defendant was arrested in Miami. The indictments stem from an FBI undercover operation that focused on allegations of foreign bribery in the military and law enforcement products industry.
The 16 indictments unsealed today represent the largest single investigation and prosecution against individuals in the history of DOJ’s enforcement of the Foreign Corrupt Practices Act (FCPA), a law that prohibits U.S. persons and companies, and foreign persons and companies acting in the United States, from bribing foreign government officials for the purpose of obtaining or retaining business. The indictments unsealed today were returned on Dec. 11, 2009, by a grand jury in Washington, D.C.
In connection with these indictments, approximately 150 FBI agents executed 14 search warrants in locations across the country, including Bull Shoals, Ark.; San Francisco; Miami; Ponte Vedra Beach, Fla.; Sarasota, Fla.; St. Petersburg, Fla.; Sunrise, Fla.; University Park, Fla.; Decatur, Ga.; Stearns, Ky.; Upper Darby, Penn.; and Woodbridge, Va. Additionally, the United Kingdom’s City of London Police executed seven search warrants in connection with their own investigations into companies involved in the foreign bribery conduct that formed the basis for the indictments.
“This ongoing investigation is the first large-scale use of undercover law enforcement techniques to uncover FCPA violations and the largest action ever undertaken by the Justice Department against individuals for FCPA violations,” said Assistant Attorney General Lanny A. Breuer. “The fight to erase foreign bribery from the corporate playbook will not be won overnight, but these actions are a turning point. From now on, would-be FCPA violators should stop andponder whether the person they are trying to bribe might really be a federal agent.”
“Corrupt payments to foreign officials to obtain or retain business erode public confidence in our free market system and threaten to undermine foreign governments,” said U.S. Attorney Channing Phillips. “These indictments set forth serious allegations and reflect the Department's commitment to aggressively investigate and prosecute those who try to advance their businesses through foreign bribery.”
“Investigating corruption at all levels is the number one priority of the FBI’s Criminal Division,” said Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division. “In this era of global commerce, the FBI is committed to curbing corruption at home or overseas. Companies should prosper through honest business practices, not the practice of back room deals and bribery.”
The indictments allege that the defendants engaged in a scheme to pay bribes to the minister of defense for a country in Africa. In fact, the scheme was part of the undercover operation, with no actual involvement from any minister of defense. As part of the undercover operation, the defendants allegedly agreed to pay a 20 percent “commission” to a sales agent who the defendants believed represented the minister of defense for a country in Africa in order to win a portion of a $15 million deal to outfit the country’s presidential guard. In reality, the “sales agent” was an undercover FBI agent. The defendants were told that half of that “commission” would be paid directly to the minister of defense. The defendants allegedly agreed to create two price quotations in connection with the deals, with one quote representing the true cost of the goods and the second quote representing the true cost, plus the 20 percent “commission.” The defendants also allegedly agreed to engage in a small “test” deal to show the minister of defense that he would personally receive the 10 percent bribe.
The indictments charge the following executives and employees of the various companies in the military and law enforcement product industries:
• Daniel Alvirez, 32, and Lee Allen Tolleson, 25, the president and director of acquisitions and logistics at a company in Bull Shoals, Ark., that manufactures and sells law enforcement and military equipment;
• Helmie Ashiblie, 44, the vice president and founder of a company in Woodbridge, Va., that supplies tactical bags and other security-related articles for law enforcement agencies and governments worldwide;
• Andrew Bigelow, 40, the managing partner and director of government programs for a Sarasota, Fla., company that sells machine guns, grenade launchers and other small arms and accessories;
• R. Patrick Caldwell, 61, and Stephen Gerard Giordanella, 50, the current and former chief executive officers of a Sunrise, Fla., company that designs and manufactures concealable and tactical body armor;
• Yochanan R. Cohen, aka Yochi Cohen, 47, the chief executive officer of a San Francisco company that manufactures security equipment, including body armor and ballistic plates;
• Haim Geri, 50, the president of a North Miami Beach, Fla., company that serves as a sales agent for companies in the law enforcement and military products industries;
• Amaro Goncalves, 49, the vice president of sales for a Springfield, Mass., company that designs and manufactures firearms, firearm safety/security products, rifles, firearms systems and accessories;
• John Gregory Godsey, aka Greg Godsey, 37, and Mark Frederick Morales, 37, the owner and agent of a Decatur, Ga., company that sells ammunition and other law enforcement and military equipment;
• Saul Mishkin, 38, the owner and chief executive officer of an Aventura, Fla., company that sells law enforcement and military equipment;
• John M. Mushriqui, 28, and Jeana Mushriqui, 30, the director of international development and general counsel/U.S. manager of an Upper Darby, Penn., company that manufactures and exports bulletproof vests and other law enforcement and military equipment;
• David R. Painter, 56, and Lee M. Wares, 43, the chairman and director of a United Kingdom company that markets armored vehicles;
• Pankesh Patel, 43, the managing director of a United Kingdom company that acts as sales agent for companies in the law enforcement and military products industries;
Ofer Paz, 50, the president and chief executive officer of an Israeli company that acts as sales agent for companies in the law enforcement and military products industries;
• Jonathan M. Spiller, 58, the owner and president of a Ponte Vedra Beach, Fla., company that markets and sells law enforcement and military equipment;
• Israel Weisler, aka Wayne Weisler, 63, and Michael Sachs, 66, owners and co-chief executive officers of a Stearns, Ky., company that designs, manufactures and sells armor products, including body armor;
• John Benson Wier III, 46, the president of a St. Petersburg, Fla., company that sells tactical and ballistic equipment.
All of the defendants except Giordanella were arrested yesterday by FBI agents in Las Vegas. Giordanella was arrested in Miami, also by FBI agents.
Each of the indictments allege that the defendants conspired to violate the FCPA, conspired to engage in money laundering, and engaged in substantive violations of the FCPA. The indictments also seek criminal forfeiture of the defendants’ ill gotten gains.
The maximum prison sentence for the conspiracy count and for each FCPA count is five years. The maximum sentence for the money laundering conspiracy charge is 20 years in prison.
These cases are being prosecuted by Assistant Chief Hank Bond Walther and Trial Attorney Laura N. Perkins of the Criminal Division’s Fraud Section, and Matthew C. Solomon of the U.S. Attorney’s Office for the District of Columbia. The cases were investigated by the FBI Washington Field Office squad that specializes in investigations into FCPA violations.
Plead Guilty to Tax Conspiracy
Former Owner of New Hampshire Direct Mail Advertising Printing Company Agrees to Plead Guilty to Tax Conspiracy
January 19, 2010 - A former owner of a New Hampshire printing company specializing in direct mail advertisements has agreed to plead guilty to a charge relating to his role in a tax conspiracy, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court in Boston, Ronald Boyarsky of Apollo, Fla., was the president and part-owner of a direct mail advertising printing company located in Pembroke, N.H. As a part of the tax conspiracy, Boyarsky assisted in paying approximately $2.6 million in commissions earned by a printing services broker to third parties, so that the broker and his companies could avoid paying taxes on the income they earned.
The department said in a court document that from 1999 through at least 2004, Boyarsky directed his company to pay the commissions to family, friends and associates of the broker. Many of the third parties typically cashed checks written to them, and then passed the cash back to the broker. As part of this scheme, the printing company paid some of the commissions directly to businesses from which the broker procured personal goods and services.
Direct mail advertising is the process by which companies specifically target potential customers and contact them with custom tailored offers, promotional materials or advertisements using the U.S. mail.
The tax conspiracy charge carries a maximum sentence of five years in prison and a maximum fine of $250,000. The maximum fine for the offense may be increased to twice the gain derived from the offense or twice the loss suffered by the victims of the offense, if either of those amounts is greater than the statutory maximum fine.
Today’s charge arose from an ongoing investigation into the direct mail printing services industry. The investigation is being conducted by the Antitrust Division’s New York Field Office, with the assistance of the Internal Revenue Service (IRS) Criminal Investigation in Springfield, Mass.
Anyone with information concerning antitrust, fraud or tax offenses relating to the direct mail printing services industry should contact the Antitrust Division’s New York Field Office at 212-264-9308 or the IRS Criminal Investigation’s Springfield Office at 413-785-0090.
January 19, 2010 - A former owner of a New Hampshire printing company specializing in direct mail advertisements has agreed to plead guilty to a charge relating to his role in a tax conspiracy, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court in Boston, Ronald Boyarsky of Apollo, Fla., was the president and part-owner of a direct mail advertising printing company located in Pembroke, N.H. As a part of the tax conspiracy, Boyarsky assisted in paying approximately $2.6 million in commissions earned by a printing services broker to third parties, so that the broker and his companies could avoid paying taxes on the income they earned.
The department said in a court document that from 1999 through at least 2004, Boyarsky directed his company to pay the commissions to family, friends and associates of the broker. Many of the third parties typically cashed checks written to them, and then passed the cash back to the broker. As part of this scheme, the printing company paid some of the commissions directly to businesses from which the broker procured personal goods and services.
Direct mail advertising is the process by which companies specifically target potential customers and contact them with custom tailored offers, promotional materials or advertisements using the U.S. mail.
The tax conspiracy charge carries a maximum sentence of five years in prison and a maximum fine of $250,000. The maximum fine for the offense may be increased to twice the gain derived from the offense or twice the loss suffered by the victims of the offense, if either of those amounts is greater than the statutory maximum fine.
Today’s charge arose from an ongoing investigation into the direct mail printing services industry. The investigation is being conducted by the Antitrust Division’s New York Field Office, with the assistance of the Internal Revenue Service (IRS) Criminal Investigation in Springfield, Mass.
Anyone with information concerning antitrust, fraud or tax offenses relating to the direct mail printing services industry should contact the Antitrust Division’s New York Field Office at 212-264-9308 or the IRS Criminal Investigation’s Springfield Office at 413-785-0090.
Community Prevention Grants Program
The U.S. Department of Justice (DOJ), Office of Justice Programs (OJP), ), Office of Juvenile Justice and Delinquency Prevention (OJJDP) is seeking applications for funding under its Fiscal Year (FY) 2010 Title V Community Prevention Grants Program. This program furthers DOJ’s mission by supporting local efforts to reduce risk factors for juvenile delinquency and to enhance protective factors to prevent youth at risk of becoming delinquent from entering the juvenile justice system.
More Information
http://ojjdp.ncjrs.gov/grants/solicitations/FY2010/TitleV.pdf
More Information
http://ojjdp.ncjrs.gov/grants/solicitations/FY2010/TitleV.pdf
Juvenile Accountability Block Grants Program
The U.S. Department of Justice (DOJ), Office of Justice Programs (OJP), Office of Juvenile Justice and Delinquency Prevention (OJJDP) is seeking applications for funding for its Fiscal Year (FY) 2010 Juvenile Accountability Block Grants Program. This program furthers DOJ‘s mission by supporting states and communities in their efforts to develop and implement coordinated delinquency intervention programs and to improve the juvenile justice system.
More Information
http://ojjdp.ncjrs.gov/grants/solicitations/FY2010/JABG.pdf
More Information
http://ojjdp.ncjrs.gov/grants/solicitations/FY2010/JABG.pdf
Forensic Crime Scene and Medicolegal Death Investigations
The U.S. Department of Justice, Office of Justice Programs, National Institute of Justice (NIJ) is pleased to announce that it is seeking applications for funding for research and development to enhance forensic crime scene examinations and forensic medicolegal death investigations. This program furthers the Department’s mission by sponsoring research to provide objective, independent, evidence-based knowledge and tools to meet the challenges of crime and justice, particularly at the State and local levels.
More Information
http://www.ncjrs.gov/pdffiles1/nij/sl000925.pdf
More Information
http://www.ncjrs.gov/pdffiles1/nij/sl000925.pdf
Research and Development on Instrumental Analysis for Forensic Science Applications
The U.S. Department of Justice, Office of Justice Programs, National Institute of Justice (NIJ) is pleased to announce that it is seeking applications for funding for research and development to enhance instrumental methods of analysis employed within forensic science disciplines. This program furthers the Department’s mission by sponsoring research to provide objective, independent, evidence-based knowledge and tools to meet the challenges of crime and justice, particularly at the State and local levels.
More Information
http://www.ncjrs.gov/pdffiles1/nij/sl000926.pdf
More Information
http://www.ncjrs.gov/pdffiles1/nij/sl000926.pdf
Officers in El Paso Seize Weapons, Ammo
January 15, 2010 - U.S. Customs and Border Protection officers working at the Bridge of the Americas International crossing at the El Paso port of entry made a weapons and ammo seizure Wednesday, January 13. CBP officers discovered weapons, ammunition and ammunition magazines inside a vehicle.
The seizure was made at about 5:40 p.m. Wednesday while CBP officers and U.S. Border Patrol agents were conducting southbound operations at BOTA. CBP officers selected a 1993 Ford E150 for an intensive exam. The driver of the vehicle said he had nothing to declare during routine questioning by a CBP officer.
CBP officers initiated an exam and noticed ammunition boxes concealed inside a wall panel of the vehicle. The vehicle was taken to a separate inspection area where an extensive inspection of the vehicle was conducted. CBP officers discovered two AK-47 rifles, 4000 rounds of ammunition and several high capacity magazines concealed throughout the vehicle.
“CBP officers at the port of El Paso are working hard to disrupt the criminal smuggling organizations’ activity. This is another good example of our officers’ vigilance and attention to detail,” said William “Bill” Molaski, CBP port director in El Paso, Texas.
The driver, 24-year-old Daniel Avalos Ruiz was turned over to ICE special agents after federal prosecution was accepted. Avalos Ruiz is a Mexican National who resides in Ciudad Juarez, Mexico. He remains in the El Paso County jail without bond.
The seizure was made at about 5:40 p.m. Wednesday while CBP officers and U.S. Border Patrol agents were conducting southbound operations at BOTA. CBP officers selected a 1993 Ford E150 for an intensive exam. The driver of the vehicle said he had nothing to declare during routine questioning by a CBP officer.
CBP officers initiated an exam and noticed ammunition boxes concealed inside a wall panel of the vehicle. The vehicle was taken to a separate inspection area where an extensive inspection of the vehicle was conducted. CBP officers discovered two AK-47 rifles, 4000 rounds of ammunition and several high capacity magazines concealed throughout the vehicle.
“CBP officers at the port of El Paso are working hard to disrupt the criminal smuggling organizations’ activity. This is another good example of our officers’ vigilance and attention to detail,” said William “Bill” Molaski, CBP port director in El Paso, Texas.
The driver, 24-year-old Daniel Avalos Ruiz was turned over to ICE special agents after federal prosecution was accepted. Avalos Ruiz is a Mexican National who resides in Ciudad Juarez, Mexico. He remains in the El Paso County jail without bond.
Wisconsin Man Indicted for Traveling to Minnesota Intending to Have Sex with Minors
January 19, 2010 - A federal grand jury has returned an indictment against a 27-year-old Wisconsin man for allegedly traveling to Minnesota for the purpose of having sexual relations with two minor females. In the indictment, which was filed with the U.S. District Court earlier today, Gabriel Vitali Matthias, of Madison, Wisconsin, was charged with one count of traveling with intent to engage in illicit sexual conduct and one count of coercion and enticement. The indictment alleges that Matthias, formerly known as Benjamin Wayne Gill, traveled in interstate commerce on February 16, 2009, for the purpose of engaging in illicit sexual conduct with two girls under the age of 16. It also alleges Matthias coerced one of those girls to engage in sexual activity on April 23, 2009.
According to a Federal Bureau of Investigation affidavit, authorities learned about Matthias after one of the victims reported on February 19, 2009, that Matthias had traveled from California to Minnesota to see her. The girls allegedly met Matthias on the Internet in 2008, and they eventually began communicating with him by telephone and text messaging. Many of those communications were of a sexual nature.
In January or February of 2009, Matthias told the girls he was moving from California to Wisconsin and asked to meet them in Minnesota. On February 16, Matthias, the affidavit states, picked up the 13-year-old girl, provided her with alcohol, took her to a Bemidji motel room, and engaged in sexual acts with her.
That same night, the two then left the motel to pick up the 14-year-old girl. After doing so, Matthias allegedly gave both girls alcohol and drove them back to the motel. They attempted to enter the building through a rear entrance but were scared off by a security guard. Subsequently, Matthias took the 13-year-old girl home. Then, while driving the 14-year-old home, he allegedly engaged in sexual conduct with her.
Finally, on April 23, 2009, Matthias allegedly sent multiple text messages to the 14-year-old girl, enticing her to commit sexual acts.
Matthias was arrested on May 1, 2009, in Madison, Wisconsin, and extradited to Minnesota. If convicted, he faces a potential maximum penalty of life in prison on the coercion count and 30 years on the interstate travel count. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the Beltrami County Sheriff’s Office, the Cass County Sheriff’s Office, and the FBI, with assistance from the United States Marshals Service and the Madison, Wisconsin, Police Department. It is being prosecuted by Assistant U.S. Attorney William J. Otteson.
According to a Federal Bureau of Investigation affidavit, authorities learned about Matthias after one of the victims reported on February 19, 2009, that Matthias had traveled from California to Minnesota to see her. The girls allegedly met Matthias on the Internet in 2008, and they eventually began communicating with him by telephone and text messaging. Many of those communications were of a sexual nature.
In January or February of 2009, Matthias told the girls he was moving from California to Wisconsin and asked to meet them in Minnesota. On February 16, Matthias, the affidavit states, picked up the 13-year-old girl, provided her with alcohol, took her to a Bemidji motel room, and engaged in sexual acts with her.
That same night, the two then left the motel to pick up the 14-year-old girl. After doing so, Matthias allegedly gave both girls alcohol and drove them back to the motel. They attempted to enter the building through a rear entrance but were scared off by a security guard. Subsequently, Matthias took the 13-year-old girl home. Then, while driving the 14-year-old home, he allegedly engaged in sexual conduct with her.
Finally, on April 23, 2009, Matthias allegedly sent multiple text messages to the 14-year-old girl, enticing her to commit sexual acts.
Matthias was arrested on May 1, 2009, in Madison, Wisconsin, and extradited to Minnesota. If convicted, he faces a potential maximum penalty of life in prison on the coercion count and 30 years on the interstate travel count. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the Beltrami County Sheriff’s Office, the Cass County Sheriff’s Office, and the FBI, with assistance from the United States Marshals Service and the Madison, Wisconsin, Police Department. It is being prosecuted by Assistant U.S. Attorney William J. Otteson.
FY 2010 National Criminal History Improvement Program (NCHIP) Solicitation
The U.S. Department of Justice, Office of Justice Programs (OJP), Bureau of Justice Statistics (BJS) is pleased to announce that it is seeking applications for funding to administer state-level activities under the 2010 National Criminal History Improvement Program (NCHIP). This program furthers the Department’s mission to enhance the crime fighting and criminal justice capabilities of state governments by improving the accuracy, utility, and interstate accessibility of criminal history records and enhancing records of protective orders involving domestic violence and stalking, sex offender records, automated identification systems and other state systems supporting national records systems and their use for criminal history background checks.
More Information
http://bjs.ojp.usdoj.gov/content/pub/pdf/nchip10sol.pdf
More Information
http://bjs.ojp.usdoj.gov/content/pub/pdf/nchip10sol.pdf
Second Chance Act Mentoring Grants to Nonprofit Organizations
FY 2010 Competitive Grant Announcement
The U.S. Department of Justice, Office of Justice Programs (OJP), Bureau of Justice Assistance is pleased to announce that it is seeking applications for funding for mentoring grants to nonprofit organizations under the Second Chance Act. This program furthers the Department’s mission by providing services and programs to facilitate inmates’ successful reintegration into society.
More Information
http://www.ojp.usdoj.gov/BJA/grant/10SecondChanceMentoringSol.pdf
The U.S. Department of Justice, Office of Justice Programs (OJP), Bureau of Justice Assistance is pleased to announce that it is seeking applications for funding for mentoring grants to nonprofit organizations under the Second Chance Act. This program furthers the Department’s mission by providing services and programs to facilitate inmates’ successful reintegration into society.
More Information
http://www.ojp.usdoj.gov/BJA/grant/10SecondChanceMentoringSol.pdf
"Band Aid Bandit" Arrested
January 19, 2010 - Phoenix FBI Special Agent in Charge Nathan Thomas Gray announced today the arrest of Samuel Cresante, age 43. On January 15, 2010, the Phoenix FBI Bank Robbery Task Force arrested Samuel Cresante without incident in Phoenix, Arizona. Cresante is allegedly wanted for numerous bank robberies in Gilbert, Mesa, Phoenix, Scottsdale, and Queen Creek. These bank robberies occurred from June 1, 2009 to January 8, 2010. Cresante allegedly entered a bank at times with a firearm and demanded money while attempting to disguise his self by wearing an arm sling, various bandages on his face, and even using fake blood. In other bank robberies Cresante allegedly used demand notes and continued to alter his appearance.
The FBI Bank Robbery Task Force is comprised of the Phoenix Police Department, the Mesa Police Department, the Maricopa County Sheriff’s Office, the Scottsdale Police Department, and the FBI. Phoenix FBI Special Agent in Charge Gray stated, “Once again, the success of the bank robbery task force is due to our law enforcement partners working effectively with our agents to get serial bank robbers off our city streets.”
The FBI Bank Robbery Task Force is comprised of the Phoenix Police Department, the Mesa Police Department, the Maricopa County Sheriff’s Office, the Scottsdale Police Department, and the FBI. Phoenix FBI Special Agent in Charge Gray stated, “Once again, the success of the bank robbery task force is due to our law enforcement partners working effectively with our agents to get serial bank robbers off our city streets.”
General Manager of Houston Medical Supply Company Pleads Guilty to Conspiracy to Commit Health Care Fraud
Manual Deluna has pleaded guilty to one count of conspiracy to commit health care fraud.
Deluna, 48, pleaded guilty on Jan. 14, 2010, before U.S. District Court Judge Ewing Werlein Jr., in connection with Deluna’s role in Memorial Medical Supply, a Houston durable medical equipment company. Deluna was the general manager of Memorial Medical Supply, and began his association with the company in approximately October 2007. Deluna, along with co-defendants Sunny Robinson, Lisa Jones and Shirley A. Chavis, was originally indicted on July 22, 2009.
In connection with his plea, Deluna admitted that he and others illegally obtained protected Medicare beneficiary health information including names, dates of birth, medical histories, and Medicare and Social Security numbers from individuals and home health agencies. Deluna admitted that this health information was used to submit false and fraudulent claims to Medicare for reimbursement for equipment such as "Arthritis Kits," power wheelchairs, and diabetic and incontinence supplies. Deluna admitted that the Medicare beneficiaries in many instances did not order or even need the medical equipment, nor did a physician actually prescribe these items. Deluna admitted that in several instances, Memorial Medical Supply also submitted false claims to Medicare in the names of Medicare beneficiaries who were deceased. Deluna admitted that from May 2006 through January 2009, Memorial Medical Supply submitted claims to Medicare in excess of $4.3 million.
Deluna remains on bond pending sentence, which is currently scheduled for April 9, 2010. Robinson, Jones and Chavis remain on bond pending trial.
This case is being prosecuted by Special Assistant U.S. Attorney Justin Blan, and was investigated by agents of the HHS-OIG, the Office of Personnel Management, the FBI and the Texas Attorney General’s Office - Medicaid Fraud Control Unit. This prosecution is the latest in the Medicare Fraud Strike Force’s efforts in the Houston area. The Strike Force is supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.
Since the inception of Strike Force operations in March 2007 - Miami (Phase One), Los Angeles (Phase Two), Detroit (Phase Three), Houston (Phase Four), Brooklyn (Phase Five), Tampa (Phase Six) and Baton Rouge (Phase Seven) - the Strike Force has obtained indictments of more than 475 individuals and organizations that collectively have billed the Medicare program for more than $1 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT) go to: http://www.stopmedicarefraud.gov/
Deluna, 48, pleaded guilty on Jan. 14, 2010, before U.S. District Court Judge Ewing Werlein Jr., in connection with Deluna’s role in Memorial Medical Supply, a Houston durable medical equipment company. Deluna was the general manager of Memorial Medical Supply, and began his association with the company in approximately October 2007. Deluna, along with co-defendants Sunny Robinson, Lisa Jones and Shirley A. Chavis, was originally indicted on July 22, 2009.
In connection with his plea, Deluna admitted that he and others illegally obtained protected Medicare beneficiary health information including names, dates of birth, medical histories, and Medicare and Social Security numbers from individuals and home health agencies. Deluna admitted that this health information was used to submit false and fraudulent claims to Medicare for reimbursement for equipment such as "Arthritis Kits," power wheelchairs, and diabetic and incontinence supplies. Deluna admitted that the Medicare beneficiaries in many instances did not order or even need the medical equipment, nor did a physician actually prescribe these items. Deluna admitted that in several instances, Memorial Medical Supply also submitted false claims to Medicare in the names of Medicare beneficiaries who were deceased. Deluna admitted that from May 2006 through January 2009, Memorial Medical Supply submitted claims to Medicare in excess of $4.3 million.
Deluna remains on bond pending sentence, which is currently scheduled for April 9, 2010. Robinson, Jones and Chavis remain on bond pending trial.
This case is being prosecuted by Special Assistant U.S. Attorney Justin Blan, and was investigated by agents of the HHS-OIG, the Office of Personnel Management, the FBI and the Texas Attorney General’s Office - Medicaid Fraud Control Unit. This prosecution is the latest in the Medicare Fraud Strike Force’s efforts in the Houston area. The Strike Force is supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.
Since the inception of Strike Force operations in March 2007 - Miami (Phase One), Los Angeles (Phase Two), Detroit (Phase Three), Houston (Phase Four), Brooklyn (Phase Five), Tampa (Phase Six) and Baton Rouge (Phase Seven) - the Strike Force has obtained indictments of more than 475 individuals and organizations that collectively have billed the Medicare program for more than $1 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT) go to: http://www.stopmedicarefraud.gov/
Enhancing Adult Drug Court Services, Coordination, and Treatment
FY 2010 Competitive Grant Announcement
The U.S. Department of Justice, Office of Justice Programs (OJP) Bureau of Justice Assistance and the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration (SAMHSA), Center for Substance Abuse Treatment (CSAT) are pleased to announce that they are seeking applications for funding for enhancing drug court services, coordination, and substance abuse treatment and recovery support services. This program furthers the Departments of Justice’s and Health and Human Services’ mission by providing resources to state, local, and tribal governments and state, local, and tribal courts to enhance drug court programs and systems for nonviolent substance-abusing offenders. In order to fulfill all of the requirements for this grant program, applicants must comply with the requirements outlined in this grant announcement as well as those, incorporated by reference, in the Drug Court Discretionary Grant Program: FY 2010 Enhancing Adult Drug Court Services, Coordination, and Treatment Solicitation Requirements Resource Guide.
More Information
http://www.ojp.usdoj.gov/BJA/grant/10BJACSATDrugCourtSol.pdf
The U.S. Department of Justice, Office of Justice Programs (OJP) Bureau of Justice Assistance and the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration (SAMHSA), Center for Substance Abuse Treatment (CSAT) are pleased to announce that they are seeking applications for funding for enhancing drug court services, coordination, and substance abuse treatment and recovery support services. This program furthers the Departments of Justice’s and Health and Human Services’ mission by providing resources to state, local, and tribal governments and state, local, and tribal courts to enhance drug court programs and systems for nonviolent substance-abusing offenders. In order to fulfill all of the requirements for this grant program, applicants must comply with the requirements outlined in this grant announcement as well as those, incorporated by reference, in the Drug Court Discretionary Grant Program: FY 2010 Enhancing Adult Drug Court Services, Coordination, and Treatment Solicitation Requirements Resource Guide.
More Information
http://www.ojp.usdoj.gov/BJA/grant/10BJACSATDrugCourtSol.pdf
Residential Substance Abuse Treatment (RSAT) for State Prisoners Program
FY 2010 Formula Grant Announcement
The U.S. Department of Justice's Office of Justice Programs' Bureau of Justice Assistance is pleased to announce that it is seeking applications for funding under the Residential Substance Abuse Treatment for State Prisoners Program. This program furthers the Department’s mission by assisting state, local, and tribal efforts to break the cycle of drugs and violence by reducing the demand for, use, and trafficking of illegal drugs.
More Information
http://www.ojp.usdoj.gov/BJA/grant/10RSATsol.pdf
The U.S. Department of Justice's Office of Justice Programs' Bureau of Justice Assistance is pleased to announce that it is seeking applications for funding under the Residential Substance Abuse Treatment for State Prisoners Program. This program furthers the Department’s mission by assisting state, local, and tribal efforts to break the cycle of drugs and violence by reducing the demand for, use, and trafficking of illegal drugs.
More Information
http://www.ojp.usdoj.gov/BJA/grant/10RSATsol.pdf
Monday, January 18, 2010
Work in Criminal Justice: An A-Z Guide to Careers in Criminal Justice
This career guidebook is unique in that it lists all the possible Criminal Justice jobs alphabetically, as well as information on job searches and job interview tips. Authored by the Department Chair and Dean at one of the largest Criminal Justice programs in the country, this book brings immense experience and value in helping you find your place in the industry. A step-by-step process on how to identify a career or job in Criminal Justice, pursue it, and get it! Helps readers go through the whole job process from start to end, finishing with their choice of career/job in the Criminal Justice field. Ideal for anyone looking to pursue a career in Criminal Justice.
Cops and Crime: What the Hell is Going On?
By Andrew G. Hawkes
As I look at law enforcement headlines across the country on a day to day basis I see the same two topics repeatedly coming to the forefront. Number one is story after freaking’ story of cops committing crimes, from dealing drugs to committing burglaries and armed robberies, not to mention the sexual assaults on duty in squad cars. Number two, right after I read how bad the criminal element is that seems to be steadily creeping into our profession, I read how department after department is lowering their hiring standards. “PD to remove entrance exam”, and “past marijuana usage OK for new recruits”, and “bad credit, no problem”. Am I the only one that wants to raise the question as to whether or not these problems correlate?
“Chief arrested for selling dope”, “sheriff sentenced in conspiracy”, “off-duty officer commits burglaries”, “DUI’s out of control in law enforcement….The newspaper headlines go on and on about cops committing crimes and becoming part of the criminal element. Yet society still holds us to a “higher standard”. If we are continually held to a higher standard, should we not continue to hire new officers that meet that higher standard?
We will never be able to fully stop some bad apples from outsmarting the system, but I don’t think we should be holding the door open for them to step right on in either. Sure it’s tough to find solid recruits, but I think we need to require more than a high school diploma and a driver’s license. The argument about lowering the standards because we cannot get any good qualified candidates because law enforcement doesn’t pay is a bunch of hogwash. Are we underpaid, you’re damn right we are. Would I have become a cop for free? You bet I would have, because I wanted to become a police officer, and I didn’t care how much I made. I believe the “want to” to become a police officer coupled with the desire to do the job no matter what, up to and including laying your life on the line is the intangible trait that we must focus on in the hiring process.
The old cliché of “You get what you pay for” is ringing loud and clear here. Sure it’s up to the city councils and the county commissioner’s court to set our salary, and we always hope they will take care of us, but even if they don’t, it’s our duty as cops, our duty as police agencies to still go the extra mile to find the best recruits that we can.
When I started in law enforcement it was common knowledge that police officer’s in Mexico were all corrupt. The more and more headlines I see about corrupt police officers are happening right here in the homeland. Let’s take back our profession before it get’s out of hand and we get the same reputation across the globe. This is American, we are the trendsetters globally, and it’s our responsibility to keep our badges shiny and polished, not dirty and tarnished.
Is anyone one with me?
Andrew G. Hawkes
About the Author
Sergeant Andrew G. Hawkes has over 17 years of law enforcement experience. He has a BA in Criminal Justice and is currently completing his master’s degree in Public Administration. Additionally, he is a graduate of the Law Enforcement Management Institute of Texas; has a Master Police Peace Officer Certificate from the State of Texas; and, has a Police Instructor’s Licenses from the State of Texas. Currently, Sergeant Andrew G. Hawkes is a member of the Collin County Sheriff’s Office (Texas) where he is a senior sergeant in the patrol operations. Sergeant Andrew G. Hawkes is the author of Secrets of Successful Highway Interdiction. According to Sergeant Andrew G. Hawkes, “After 17 years of highway drug interdiction, 500 felony arrests, 5,100 pounds in drug seizures, and over $20 million (drugs, cash and vehicles), I have learned a lot of drug-busting techniques that I want to share with you.” His book, Secrets of Successful Highway Interdiction, contains eleven chapters on Highway Drug Interdiction. You can find out more about Andrew and his book at http://www.highwaydruginterdiction.com/.
As I look at law enforcement headlines across the country on a day to day basis I see the same two topics repeatedly coming to the forefront. Number one is story after freaking’ story of cops committing crimes, from dealing drugs to committing burglaries and armed robberies, not to mention the sexual assaults on duty in squad cars. Number two, right after I read how bad the criminal element is that seems to be steadily creeping into our profession, I read how department after department is lowering their hiring standards. “PD to remove entrance exam”, and “past marijuana usage OK for new recruits”, and “bad credit, no problem”. Am I the only one that wants to raise the question as to whether or not these problems correlate?
“Chief arrested for selling dope”, “sheriff sentenced in conspiracy”, “off-duty officer commits burglaries”, “DUI’s out of control in law enforcement….The newspaper headlines go on and on about cops committing crimes and becoming part of the criminal element. Yet society still holds us to a “higher standard”. If we are continually held to a higher standard, should we not continue to hire new officers that meet that higher standard?
We will never be able to fully stop some bad apples from outsmarting the system, but I don’t think we should be holding the door open for them to step right on in either. Sure it’s tough to find solid recruits, but I think we need to require more than a high school diploma and a driver’s license. The argument about lowering the standards because we cannot get any good qualified candidates because law enforcement doesn’t pay is a bunch of hogwash. Are we underpaid, you’re damn right we are. Would I have become a cop for free? You bet I would have, because I wanted to become a police officer, and I didn’t care how much I made. I believe the “want to” to become a police officer coupled with the desire to do the job no matter what, up to and including laying your life on the line is the intangible trait that we must focus on in the hiring process.
The old cliché of “You get what you pay for” is ringing loud and clear here. Sure it’s up to the city councils and the county commissioner’s court to set our salary, and we always hope they will take care of us, but even if they don’t, it’s our duty as cops, our duty as police agencies to still go the extra mile to find the best recruits that we can.
When I started in law enforcement it was common knowledge that police officer’s in Mexico were all corrupt. The more and more headlines I see about corrupt police officers are happening right here in the homeland. Let’s take back our profession before it get’s out of hand and we get the same reputation across the globe. This is American, we are the trendsetters globally, and it’s our responsibility to keep our badges shiny and polished, not dirty and tarnished.
Is anyone one with me?
Andrew G. Hawkes
About the Author
Sergeant Andrew G. Hawkes has over 17 years of law enforcement experience. He has a BA in Criminal Justice and is currently completing his master’s degree in Public Administration. Additionally, he is a graduate of the Law Enforcement Management Institute of Texas; has a Master Police Peace Officer Certificate from the State of Texas; and, has a Police Instructor’s Licenses from the State of Texas. Currently, Sergeant Andrew G. Hawkes is a member of the Collin County Sheriff’s Office (Texas) where he is a senior sergeant in the patrol operations. Sergeant Andrew G. Hawkes is the author of Secrets of Successful Highway Interdiction. According to Sergeant Andrew G. Hawkes, “After 17 years of highway drug interdiction, 500 felony arrests, 5,100 pounds in drug seizures, and over $20 million (drugs, cash and vehicles), I have learned a lot of drug-busting techniques that I want to share with you.” His book, Secrets of Successful Highway Interdiction, contains eleven chapters on Highway Drug Interdiction. You can find out more about Andrew and his book at http://www.highwaydruginterdiction.com/.
2010 American Heroes Air Show
Buckle up for excitement when you join us at an American Heroes Air Show during 2010. Land with your entire team at the nation’s premier helicopter-only, admission-free aviation event designed to profile the dynamic mission of rotary-wing aviation in law enforcement, fire service, Search & Rescue as well as homeland security and national defense
Schedule
• Austin, TX April 17
• Seattle, WA June 19
• Los Angeles, CA July 24
• Atlanta, GA Sept 11
• St. Louis, MO TBD
• Frederick, MD TBD
• Denver, CO TBD
• Coral Gables, FL TBD
Originating in Los Angeles in 1993, the Heroes event features a host of event elements to highlight public service, aviation and careers in community safety. Our event model features several distinct elements:
AMERICAN HEROES Air Show presents static displays and flight demos of helicopters from law enforcement, fire service, military, corporate and the media.
CODE3 CAREER Fair delivers information on careers in law enforcement, fire service, the military, public safety and community service.
FIRST PROMISE Emergency Preparedness Fair offers information, products from private vendors and resources from public agencies for communities and business to prepare for, respond to and recover from emergencies, natural disasters and homeland defense incidents.
SAR TEAM1 – Introduce your family to the best local teams from Mountain, Urban, Canine, Swiftwater and Military / SWAT Search & Rescue groups with technical rescue demos, outdoor family safety tactics, gear layouts along with specialized equipment and SAR vehicles.
Presentation space is available and free to public service agencies and community service, nonprofit organizations. There is a modest fee for private vendors.
Contact point:
• James D. Paules Volunteer, Executive Producer Email: Jim @ Heroes-airshow.com
Fax (818) 347.4577 Cell (818) 631 – 8132
Schedule
• Austin, TX April 17
• Seattle, WA June 19
• Los Angeles, CA July 24
• Atlanta, GA Sept 11
• St. Louis, MO TBD
• Frederick, MD TBD
• Denver, CO TBD
• Coral Gables, FL TBD
Originating in Los Angeles in 1993, the Heroes event features a host of event elements to highlight public service, aviation and careers in community safety. Our event model features several distinct elements:
AMERICAN HEROES Air Show presents static displays and flight demos of helicopters from law enforcement, fire service, military, corporate and the media.
CODE3 CAREER Fair delivers information on careers in law enforcement, fire service, the military, public safety and community service.
FIRST PROMISE Emergency Preparedness Fair offers information, products from private vendors and resources from public agencies for communities and business to prepare for, respond to and recover from emergencies, natural disasters and homeland defense incidents.
SAR TEAM1 – Introduce your family to the best local teams from Mountain, Urban, Canine, Swiftwater and Military / SWAT Search & Rescue groups with technical rescue demos, outdoor family safety tactics, gear layouts along with specialized equipment and SAR vehicles.
Presentation space is available and free to public service agencies and community service, nonprofit organizations. There is a modest fee for private vendors.
Contact point:
• James D. Paules Volunteer, Executive Producer Email: Jim @ Heroes-airshow.com
Fax (818) 347.4577 Cell (818) 631 – 8132
Saturday, January 16, 2010
Project Safe Neighborhoods: Bridgeport Man Pleads Guilty to Federal Gun and Drug Charges
Nora R. Dannehy, United States Attorney for the District of Connecticut, today announced that GEORGE MORALES, 47, formerly of Park Street, Bridgeport, pleaded guilty yesterday, January 14, before United States District Judge Christopher F. Droney in Hartford to one count of possession of a firearm by a previously convicted felon, and one count of distribution of heroin.
This matter stems from “Operation Young Gunz,” a Project Safe Neighborhoods investigation conducted by members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bridgeport Police Department, Drug Enforcement Administration, and U.S. Marshals Service. The investigation, which included numerous purchases of firearms, heroin and crack cocaine, targeted young, repeat offenders who are alleged to have sold and conspired to sell firearms for profit. Analysis of the firearms purchased during this investigation has revealed that several of the firearms were reported stolen and/or have been used in other crimes.
On April 2, 2009, while executing a state arrest warrant at MORALES’ residence, law enforcement officers observed MORALES exiting a bathroom carrying a plastic bag, which he then threw in a closet. After MORALES was taken into custody, officers seized 70 blue folds of heroin from his closet. MORALES then gave officers a key to a safe in the closet, which contained a .380 caliber semi-automatic pistol with an obliterated serial number, a magazine containing five rounds of Remington .380 caliber ammunition, and $5,775 in cash. Inside the residence, officers also found 10 blue folds of heroin in the toilet, and 20 blue folds of heroin and a baggy that contained marijuana in a kitchen cabinet.
Prior to April 2009, MORALES sustained several felony convictions in Connecticut Superior Court. It is a violation of federal law for a convicted felon to possess a firearm that has moved in interstate or foreign commerce.
Judge Droney has scheduled sentencing for April 2, 2010, at which time MORALES faces a maximum term of imprisonment of 10 years and a fine of up to 250,000 on the gun charge, and a maximum term of imprisonment of 20 years and a fine of up to $1 million on the heroin distribution charge.
MORALES has been detained since his arrest on April 2, 2009.
This case was investigated by the Bridgeport Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney Felice Duffy as part of the Project Safe Neighborhoods Initiative.
The Project Safe Neighborhoods Initiative is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents of Connecticut’s cities. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This matter stems from “Operation Young Gunz,” a Project Safe Neighborhoods investigation conducted by members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bridgeport Police Department, Drug Enforcement Administration, and U.S. Marshals Service. The investigation, which included numerous purchases of firearms, heroin and crack cocaine, targeted young, repeat offenders who are alleged to have sold and conspired to sell firearms for profit. Analysis of the firearms purchased during this investigation has revealed that several of the firearms were reported stolen and/or have been used in other crimes.
On April 2, 2009, while executing a state arrest warrant at MORALES’ residence, law enforcement officers observed MORALES exiting a bathroom carrying a plastic bag, which he then threw in a closet. After MORALES was taken into custody, officers seized 70 blue folds of heroin from his closet. MORALES then gave officers a key to a safe in the closet, which contained a .380 caliber semi-automatic pistol with an obliterated serial number, a magazine containing five rounds of Remington .380 caliber ammunition, and $5,775 in cash. Inside the residence, officers also found 10 blue folds of heroin in the toilet, and 20 blue folds of heroin and a baggy that contained marijuana in a kitchen cabinet.
Prior to April 2009, MORALES sustained several felony convictions in Connecticut Superior Court. It is a violation of federal law for a convicted felon to possess a firearm that has moved in interstate or foreign commerce.
Judge Droney has scheduled sentencing for April 2, 2010, at which time MORALES faces a maximum term of imprisonment of 10 years and a fine of up to 250,000 on the gun charge, and a maximum term of imprisonment of 20 years and a fine of up to $1 million on the heroin distribution charge.
MORALES has been detained since his arrest on April 2, 2009.
This case was investigated by the Bridgeport Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney Felice Duffy as part of the Project Safe Neighborhoods Initiative.
The Project Safe Neighborhoods Initiative is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents of Connecticut’s cities. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The Web for Leaders
An ignorance of the language and capabilities of Internet-based tools creates a situation where today’s leader cannot see how their organization’s website can be fully integrated into their current organizational practices or integrated into their vision of the future.
More Information
http://leadership-online.blogspot.com/2010/01/web-for-leaders.html
More Information
http://leadership-online.blogspot.com/2010/01/web-for-leaders.html
Officers Take Custody of Wanted Fugitive at Brownsville Port of Entry
January 15, 2010 - U.S. Customs and Border Protection officers working at the Brownsville and Matamoros International Bridge took custody of an extradited U.S. citizen wanted on warrants for sex-related violations involving children. Mexico law enforcement authorities arrived at the B&M port of entry where they surrendered the fugitive to U.S. authorities.
On January 14, Mexican law enforcement authorities arrived at the Brownsville and Matamoros International Bridge and surrendered Richard Louis Cedor to CBP officers. Checks of a CBP database by CBP officers identified Richard Louis Cedor, the subject of a U.S. Marshals Service arrest warrant for child pornography and a second arrest warrant form the Nueces County Sheriff’s Office in Corpus Christi, Texas for indecency with a child.
Cedor is a 54-year-old U.S. citizen from Corpus Christi, Texas. After his arrest, Cedor was transferred to the custody of the U.S. Marshals Service. Richard Louis Cedor was transported to the Cameron County Jail to await extradition to Corpus Christi, Texas.
“CBP officers working with the U.S. Marshals Service and Mexican law enforcement authorities have helped facilitate the return of another wanted person to face pending charges in the United States,” Michael Freeman, CBP port director in Brownsville said. “This arrest is a result of the continued cooperation between federal, state and local law enforcement agencies working with the Mexican authorities, with great results for all agencies involved.”
On January 14, Mexican law enforcement authorities arrived at the Brownsville and Matamoros International Bridge and surrendered Richard Louis Cedor to CBP officers. Checks of a CBP database by CBP officers identified Richard Louis Cedor, the subject of a U.S. Marshals Service arrest warrant for child pornography and a second arrest warrant form the Nueces County Sheriff’s Office in Corpus Christi, Texas for indecency with a child.
Cedor is a 54-year-old U.S. citizen from Corpus Christi, Texas. After his arrest, Cedor was transferred to the custody of the U.S. Marshals Service. Richard Louis Cedor was transported to the Cameron County Jail to await extradition to Corpus Christi, Texas.
“CBP officers working with the U.S. Marshals Service and Mexican law enforcement authorities have helped facilitate the return of another wanted person to face pending charges in the United States,” Michael Freeman, CBP port director in Brownsville said. “This arrest is a result of the continued cooperation between federal, state and local law enforcement agencies working with the Mexican authorities, with great results for all agencies involved.”
Three-Time Convicted Felon sentenced to 15 Years in Federal Prison For Gun Possession
MARCUS LAMAR HARDY, 30, of Atlanta, Georgia, was sentenced today by United States District Judge Beverly B. Martin to serve 15 years in federal prison on charges of possession of a firearm by a convicted felon.
Acting United States Attorney Sally Quillian Yates said, “Felons who possess firearms pose a grave danger to our community. This defendant, who had three previous felony convictions, showed his complete and continuing disregard for the law by possessing a loaded handgun. The law rightly demands that he face the consequences and return to prison.”
“We want people to know about Marcus Hardy,” said Special Agent in Charge Gregory Gant of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Atlanta. “After leading a felonious life of drugs and violence, he remained on our streets. Yet, his gun proved to be his Achilles’ heel. Armed felons should be aware that cooperation among ATF, street cops and our prosecutors is at an all-time high. Mr. Hardy learned that today.”
According to Acting United States Attorney Yates, the charges and other information presented in court: On August 11, 2006, HARDY, a three-time convicted felon, was approached by officers while in a parking lot at 2980 Donald Lee Hollowell Drive in Atlanta, Georgia. As officers approached HARDY, they observed that he reached into his waistband and deposited an item onto the driver’s seat of his vehicle, closed the door of the vehicle and attempted to walk away. The officers intercepted HARDY, held him, and observed a Glock .45 caliber loaded handgun lying on the drivers seat of the vehicle. Law enforcement authorities found that the weapon was stolen from another vehicle. HARDY’s record showed had several felony convictions, including cocaine trafficking and robbery, and therefore was prohibited from possession of a weapon or ammunition. HARDY was arrested.
This case was investigated by Special Agents of the Bureau of Alcohol, Firearms and Tobacco and Explosives (ATF).
Assistant United States Attorney Stephanie Gabay-Smith prosecuted the case.
For further information please contact Sally Q. Yates, Acting 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 www.usdoj.gov/usao/gan
Acting United States Attorney Sally Quillian Yates said, “Felons who possess firearms pose a grave danger to our community. This defendant, who had three previous felony convictions, showed his complete and continuing disregard for the law by possessing a loaded handgun. The law rightly demands that he face the consequences and return to prison.”
“We want people to know about Marcus Hardy,” said Special Agent in Charge Gregory Gant of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Atlanta. “After leading a felonious life of drugs and violence, he remained on our streets. Yet, his gun proved to be his Achilles’ heel. Armed felons should be aware that cooperation among ATF, street cops and our prosecutors is at an all-time high. Mr. Hardy learned that today.”
According to Acting United States Attorney Yates, the charges and other information presented in court: On August 11, 2006, HARDY, a three-time convicted felon, was approached by officers while in a parking lot at 2980 Donald Lee Hollowell Drive in Atlanta, Georgia. As officers approached HARDY, they observed that he reached into his waistband and deposited an item onto the driver’s seat of his vehicle, closed the door of the vehicle and attempted to walk away. The officers intercepted HARDY, held him, and observed a Glock .45 caliber loaded handgun lying on the drivers seat of the vehicle. Law enforcement authorities found that the weapon was stolen from another vehicle. HARDY’s record showed had several felony convictions, including cocaine trafficking and robbery, and therefore was prohibited from possession of a weapon or ammunition. HARDY was arrested.
This case was investigated by Special Agents of the Bureau of Alcohol, Firearms and Tobacco and Explosives (ATF).
Assistant United States Attorney Stephanie Gabay-Smith prosecuted the case.
For further information please contact Sally Q. Yates, Acting 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 www.usdoj.gov/usao/gan
Friday, January 15, 2010
Nampa Residents Indicted on Gun Charges
January 15, 2010 - Six Nampa residents were indicted by a federal grand jury on firearms-related charges in Boise on January 12, 2010. The indictments were returned in three separate cases. In the first case, Juan Carlos Ortiz, 18, is charged with two counts of unlawful transfer of a firearm. Ortiz is accused of transferring a firearm to an individual with knowledge that the individual was prohibited from possessing firearms. Ortiz faces a maximum punishment of 20 years in prison, 10 years on each count.
In the second case, Yesenia Clara Ortiz, 32, and Emiliano Tito Cortez, 25, are charged with unlawfully possessing firearms. Ortiz and Cortez are accused of possessing firearms after being convicted of crimes punishable by imprisonment exceeding one year. Yesenia Clara Ortiz was indicted on two counts of unlawful possession of a firearm, and Emiliano Tito Cortez was indicted on three counts of unlawful possession of a firearm, and one count of unlawful possession of ammunition. Each count carries a maximum term of imprisonment of 10 years. Ortiz faces a maximum term of imprisonment of 20 years, and Cortez faces a maximum term of imprisonment of 40 years.
In the third case, Elyze Monique Zuniga, 24, Jesus Manuel Zuniga, 25, and Zaul Zuniga, 38, are each charged with two counts of unlawful transfer of an unregistered firearm. All three are accused of selling two shotguns that had been modified to an illegal length. Jesus Manuel Zuniga and Zaul Zuniga were also indicted on two counts of possession of an unregistered firearm and two counts of unlawful possession of a firearm. Both are accused of possessing two shotguns that had been modified to an illegal length after being convicted of crimes punishable by imprisonment exceeding one year. Each count carries a maximum term of imprisonment of 10 years. Elyze Monique Zuniga faces a maximum term of imprisonment of 20 years. Jesus Manuel Zuniga and Zaul Zuniga each face a maximum term of imprisonment of 60 years.
These cases have been assigned to U.S. District Judge Edward J. Lodge. The Court will set each defendant’s initial appearance date.
These cases were investigated by the Treasure Valley Metro Violent Crimes Task Force, which includes detectives and agents from local and federal law enforcement agencies throughout the Treasure Valley. An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In the second case, Yesenia Clara Ortiz, 32, and Emiliano Tito Cortez, 25, are charged with unlawfully possessing firearms. Ortiz and Cortez are accused of possessing firearms after being convicted of crimes punishable by imprisonment exceeding one year. Yesenia Clara Ortiz was indicted on two counts of unlawful possession of a firearm, and Emiliano Tito Cortez was indicted on three counts of unlawful possession of a firearm, and one count of unlawful possession of ammunition. Each count carries a maximum term of imprisonment of 10 years. Ortiz faces a maximum term of imprisonment of 20 years, and Cortez faces a maximum term of imprisonment of 40 years.
In the third case, Elyze Monique Zuniga, 24, Jesus Manuel Zuniga, 25, and Zaul Zuniga, 38, are each charged with two counts of unlawful transfer of an unregistered firearm. All three are accused of selling two shotguns that had been modified to an illegal length. Jesus Manuel Zuniga and Zaul Zuniga were also indicted on two counts of possession of an unregistered firearm and two counts of unlawful possession of a firearm. Both are accused of possessing two shotguns that had been modified to an illegal length after being convicted of crimes punishable by imprisonment exceeding one year. Each count carries a maximum term of imprisonment of 10 years. Elyze Monique Zuniga faces a maximum term of imprisonment of 20 years. Jesus Manuel Zuniga and Zaul Zuniga each face a maximum term of imprisonment of 60 years.
These cases have been assigned to U.S. District Judge Edward J. Lodge. The Court will set each defendant’s initial appearance date.
These cases were investigated by the Treasure Valley Metro Violent Crimes Task Force, which includes detectives and agents from local and federal law enforcement agencies throughout the Treasure Valley. An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Los Angeles CBP Seizes $7 Million Worth of DVDs with Counterfeit Trademarks
January 15, 2010 - U.S. Customs and Border Protection officials seized 252,968 DVDs with counterfeit trademarks. The manufacturer’s suggested retail price of the shipment was estimated to be more than $7.1 million and the domestic value was $204,904. On January 7, CBP officials from Los Angeles/Long Beach seaport complex seized a shipment which arrived on a sea container from South Korea. The shipment consisted of movies and music DVDs destined to an importer in the Los Angeles County. When CBP officials inspected the shipment, they discovered counterfeit “DVD,” “Dolby,” and “DTS” trademark designs on the packaging. The shipment was seized for illegal importation of merchandise bearing counterfeit trademarks.
CBP has a multi-layered enforcement approach to prevent the flow of fake goods. This multi-layered includes seizing the counterfeit items at the ports of entry, conducting audits of infringing importers, collaborating with international organizations and foreign governments, partnering with industry and other government agencies to enhance these efforts.
In fiscal year 2009, CBP and U.S. Immigration and Customs Enforcement seized more than $260.6 million worth of counterfeit items nationwide. Media items were among the top 10 commodities seized with a total domestic value of $11 million, which accounted for 4 percent of the entire value of goods seized.
Douglas Station Border Patrol Arrests 5 Sex Offenders in Week
January 15, 2010 – In five separate incidents over the past week, U.S. Border Patrol agents assigned to the Douglas Station apprehended illegal aliens who had prior arrests for sex crimes. Agents quickly identified these criminal aliens using the Integrated Automated Fingerprint Identification System.
On Saturday, Douglas agents apprehended a Mexican male with a felony conviction for rape. Agents then arrested two illegal aliens from Mexico on Monday; one who had been arrested for “rape,” the other for “sex with a minor under 18.” On Wednesday, agents apprehended a Mexican alien who had been previously arrested for “sexual assault on a child.” Thursday, agents arrested an illegal alien from the Dominican Republic who had also been convicted of “rape.”
Sex offenders are among the criminal aliens attempting to enter the United States on a daily basis. “Because IAFIS can access criminal records from across the nation, this technology has been a key factor in rapidly identifying criminal aliens,” said Douglas Station Patrol Agent in Charge Timothy Sullivan. “Removing the criminal element is one of our highest priorities,” he said.
Criminal aliens threaten the safety of communities nationwide. With a larger number of criminals attempting illegal entry, Border Patrol agents are more determined than ever to deter and apprehend these individuals to enhance the quality of life of our communities.
IAFIS is a national fingerprint and criminal history system maintained by the FBI. IAFIS provides automated fingerprint search capabilities, latent searching capability, electronic image storage, and electronic exchange of fingerprints and responses, 24 hours a day, 365 days a year.
On Saturday, Douglas agents apprehended a Mexican male with a felony conviction for rape. Agents then arrested two illegal aliens from Mexico on Monday; one who had been arrested for “rape,” the other for “sex with a minor under 18.” On Wednesday, agents apprehended a Mexican alien who had been previously arrested for “sexual assault on a child.” Thursday, agents arrested an illegal alien from the Dominican Republic who had also been convicted of “rape.”
Sex offenders are among the criminal aliens attempting to enter the United States on a daily basis. “Because IAFIS can access criminal records from across the nation, this technology has been a key factor in rapidly identifying criminal aliens,” said Douglas Station Patrol Agent in Charge Timothy Sullivan. “Removing the criminal element is one of our highest priorities,” he said.
Criminal aliens threaten the safety of communities nationwide. With a larger number of criminals attempting illegal entry, Border Patrol agents are more determined than ever to deter and apprehend these individuals to enhance the quality of life of our communities.
IAFIS is a national fingerprint and criminal history system maintained by the FBI. IAFIS provides automated fingerprint search capabilities, latent searching capability, electronic image storage, and electronic exchange of fingerprints and responses, 24 hours a day, 365 days a year.
Seeking Public’s Assistance in Locating Beneficial Bank Branch Robber
January 15, 2010 - The FBI and the Philadelphia Police Department are seeking the public's assistance to identify and locate the subject responsible for the robbery of the Beneficial Bank branch located at 6401 Woodland Avenue earlier today.
At approximately 4:09 p.m. today, the subject entered the Beneficial Bank branch and presented a threatening demand note to a teller. After obtaining an undisclosed amount of cash, the subject fled the area of the bank on foot.
The subject is described as a black male, 40 to 50 years old, 5’5” to 5’6” tall, medium build, with a bald or shaved head, a mustache, wearing a black zippered hooded sweatshirt, and carrying a black bag with an Adidas logo on the side. The subject may have red dye stains on his clothing and/or skin.
Three photographs from the bank’s security cameras are below. This subject is considered armed and dangerous, and anyone with information is asked to call the FBI at 215-418-4000 or the Philadelphia Police Department. There may be a reward for information leading to the identification and apprehension of this subject. Tipsters can remain anonymous.
To view flyers of this and other bank robbery subjects wanted by the FBI/Major Crimes Task Force, please visit www.ppdonline.org and click on the Detectives Box and the Violent Crimes Task Force link.
Local Spine Surgeon Sentenced for Concealing Felony Involving Local Doctors and Lawyers
January 15, 2010 - Las Vegas orthopaedic spine surgeon, Mark B. Kabins, M.D., was sentenced today by Senior U.S. District Judge Justin L. Quackenbush to five years of probation, six months of home confinement, 250 hours of community work service, and ordered to pay $3.5 million in restitution to victim Melodie Simon for his guilty plea to concealing a fraud committed by his co-defendants, local lawyer Noel Gage and medical consultant Howard Awand, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Dr. Kabins, 49, pleaded guilty on November 23, 2009, to one count of misprision of felony, which is defined under federal law as knowing that another person committed a felony and not notifying appropriate authorities about the crime as soon as possible. In his guilty plea agreement, Dr. Kabins admitted that on August 3, 2000, in Las Vegas, he assisted another orthopedic surgeon, John Thalgott, M.D. in performing spine surgery on patient Melodie Simon. Simon became paralyzed from complications that arose after the surgery. Dr. Kabins knew that experts could say that he fell below the standard of care in his treatment of Simon, and that he could be sued. To avoid being sued, Dr. Kabins asked Howard Awand, a medical consultant who referred personal injury cases to him and to lawyers, to persuade Simon’s attorney, Noel Gage, not to sue him and Dr. Thalgott. Dr. Kabins believed that Awand would corruptly attempt to persuade Gage by referring lucrative personal injury cases to Gage. After receiving referrals from Awand, Gage chose not to sue Dr. Kabins or Dr. Thalgott. Instead, he sued an anesthesiologist. Dr. Kabins believed that Gage did not sue him because Awand had referred cases to him. To help Gage sue the anesthesiologist, Dr. Kabins drafted a “Letter of Complaint” from which he intentionally omitted information about his secret dealings with Gage and information about Simon’s medical condition following her surgery.
Trial in the fraud case against Gage and Awand is scheduled to begin on Wednesday, February 10, 2010.
The case is being investigated by the FBI, IRS Criminal Investigation, and the Nevada Attorney General’s Office, and prosecuted by Assistant United States Attorneys Steven W. Myhre and Daniel R. Schiess.
Dr. Kabins, 49, pleaded guilty on November 23, 2009, to one count of misprision of felony, which is defined under federal law as knowing that another person committed a felony and not notifying appropriate authorities about the crime as soon as possible. In his guilty plea agreement, Dr. Kabins admitted that on August 3, 2000, in Las Vegas, he assisted another orthopedic surgeon, John Thalgott, M.D. in performing spine surgery on patient Melodie Simon. Simon became paralyzed from complications that arose after the surgery. Dr. Kabins knew that experts could say that he fell below the standard of care in his treatment of Simon, and that he could be sued. To avoid being sued, Dr. Kabins asked Howard Awand, a medical consultant who referred personal injury cases to him and to lawyers, to persuade Simon’s attorney, Noel Gage, not to sue him and Dr. Thalgott. Dr. Kabins believed that Awand would corruptly attempt to persuade Gage by referring lucrative personal injury cases to Gage. After receiving referrals from Awand, Gage chose not to sue Dr. Kabins or Dr. Thalgott. Instead, he sued an anesthesiologist. Dr. Kabins believed that Gage did not sue him because Awand had referred cases to him. To help Gage sue the anesthesiologist, Dr. Kabins drafted a “Letter of Complaint” from which he intentionally omitted information about his secret dealings with Gage and information about Simon’s medical condition following her surgery.
Trial in the fraud case against Gage and Awand is scheduled to begin on Wednesday, February 10, 2010.
The case is being investigated by the FBI, IRS Criminal Investigation, and the Nevada Attorney General’s Office, and prosecuted by Assistant United States Attorneys Steven W. Myhre and Daniel R. Schiess.
Seven Indicted in Mortgage Fraud Scheme
January 15, 2010 - A federal grand jury here has indicted six members of a family and one of their employees charging them with operating a mortgage fraud conspiracy between 2004 and 2009. Carter M. Stewart, United States Attorney for the Southern District of Ohio, Keith L. Bennett, Special Agent in Charge, Federal Bureau of Investigation (FBI), Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation, and Gerald A. O’Farrell, Assistant Inspector in Charge, announced the indictment returned yesterday against the following individuals:
- Debbie Sferrazza, 45, of West Chester,
- Salvatore Sferrazza, 70, the husband of Debbie Sferrazza,
- Keiron Ashurst, 44, Fairfield, a brother of Debbie Sferrazza,
- Whitney Bonapfel, 21, Cincinnati, a daughter of Debbie Sferrazza,
- James Ashurst, 26, West Chester, a son of Debbie Sferrazza,
- Heather Ashurst, 26, the wife of James Ashurst,
- Tabatha Sturgill, 34, Hamilton, an employee of Debbie Sferrazza.
The indictment alleges that Debbie Sferrazza worked in the mortgage lending and real estate industry through her management of several different companies, including Alpha Mortgage Lending, LLC; Alpha Mortgage Exchange, LLC; S.D.S. Processing LLC (also known as S.D.S. Inc.); and Target Loan Packaging (also known as Target Loan Processing). The indictment accuses the seven of operating a mortgage fraud conspiracy that involved family members and mortgage brokerage businesses from at least 2004 to 2009. The charges center around 14 real estate transactions involving eight residential properties during that time period.
“The 33-count indictment charges the defendants with conspiracy, wire fraud, mail fraud, money laundering, and the filing of false tax returns,” Stewart said.
Each count is punishable by a maximum sentence of 20 years' imprisonment, except for filing false income tax returns, which is punishable by up to three years' imprisonment.
According to the indictment, Debbie Sferrazza, Tabatha Sturgill, and the others used their mortgage lending companies to submit fraudulent loan applications for herself, her family, and her customers. The loan applications showed a pattern of inflating the borrower’s income by, among other methods, creating false Verifications of Employment, fake paystubs, fake Social Security benefit letters, and fake W-2 forms. The loan applications sometimes misrepresented the borrower’s assets, supported by fake bank statements or Verifications of Deposit. The loan applications allegedly misrepresented the identity of the mortgage broker or contained forged signatures for the borrower or other names involved in the loan application process. The loan applications sometimes misrepresented whether the property would be used as a primary residence or whether another property had been sold by the borrower.
In one allegation, a false and forged rental agreement was submitted to the lender relating to the property to be purchased. In another instance, property was transferred to an unemployed mother-in-law who had no intention of paying for or ever living in the property. At the closings, the defendants would often misrepresent the source of the borrower’s funds at closing and divert the sale proceeds back through Debbie Sferrazza’s family. The scheme also included the sale of properties at inflated values in order to obtain additional funds from the mortgage lenders.
The gross funds that were allegedly fraudulently obtained in these 14 transactions is in excess of $3 million, and the net amount of funds laundered through the Sferrazza family is allegedly in excess of $900,000.
Stewart commended the investigation which was by the Greater Cincinnati Mortgage Fraud Task Force, primarily through the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Postal Inspection Service.
In addition to the FBI, IRS, and Postal Inspection Service, agencies participating in the Task Force include Ohio Attorney General Rich Cordray’s Office, U.S. Housing and Urban Development Office of Inspector General, the Cincinnati Police Department, the U.S. Secret Service, the Springdale Police Department, Warren County Prosecutor Rachel Hutzel, Hamilton County Prosecutor Joe Deters, the U.S. Attorney’s Office in the Eastern District of Kentucky, the West Chester Police Department, the Middletown Police Department, Hamilton County Sheriff Simon Leis, the FDIC, and the Ohio Department of Commerce Division of Financial Institutions.
Agents began arresting the defendants this morning. They will have an initial appearance before a U.S. Magistrate Judge in Cincinnati later today.
An indictment is merely an accusation. A defendant should be presumed innocent until and unless proven guilty in court.
- Debbie Sferrazza, 45, of West Chester,
- Salvatore Sferrazza, 70, the husband of Debbie Sferrazza,
- Keiron Ashurst, 44, Fairfield, a brother of Debbie Sferrazza,
- Whitney Bonapfel, 21, Cincinnati, a daughter of Debbie Sferrazza,
- James Ashurst, 26, West Chester, a son of Debbie Sferrazza,
- Heather Ashurst, 26, the wife of James Ashurst,
- Tabatha Sturgill, 34, Hamilton, an employee of Debbie Sferrazza.
The indictment alleges that Debbie Sferrazza worked in the mortgage lending and real estate industry through her management of several different companies, including Alpha Mortgage Lending, LLC; Alpha Mortgage Exchange, LLC; S.D.S. Processing LLC (also known as S.D.S. Inc.); and Target Loan Packaging (also known as Target Loan Processing). The indictment accuses the seven of operating a mortgage fraud conspiracy that involved family members and mortgage brokerage businesses from at least 2004 to 2009. The charges center around 14 real estate transactions involving eight residential properties during that time period.
“The 33-count indictment charges the defendants with conspiracy, wire fraud, mail fraud, money laundering, and the filing of false tax returns,” Stewart said.
Each count is punishable by a maximum sentence of 20 years' imprisonment, except for filing false income tax returns, which is punishable by up to three years' imprisonment.
According to the indictment, Debbie Sferrazza, Tabatha Sturgill, and the others used their mortgage lending companies to submit fraudulent loan applications for herself, her family, and her customers. The loan applications showed a pattern of inflating the borrower’s income by, among other methods, creating false Verifications of Employment, fake paystubs, fake Social Security benefit letters, and fake W-2 forms. The loan applications sometimes misrepresented the borrower’s assets, supported by fake bank statements or Verifications of Deposit. The loan applications allegedly misrepresented the identity of the mortgage broker or contained forged signatures for the borrower or other names involved in the loan application process. The loan applications sometimes misrepresented whether the property would be used as a primary residence or whether another property had been sold by the borrower.
In one allegation, a false and forged rental agreement was submitted to the lender relating to the property to be purchased. In another instance, property was transferred to an unemployed mother-in-law who had no intention of paying for or ever living in the property. At the closings, the defendants would often misrepresent the source of the borrower’s funds at closing and divert the sale proceeds back through Debbie Sferrazza’s family. The scheme also included the sale of properties at inflated values in order to obtain additional funds from the mortgage lenders.
The gross funds that were allegedly fraudulently obtained in these 14 transactions is in excess of $3 million, and the net amount of funds laundered through the Sferrazza family is allegedly in excess of $900,000.
Stewart commended the investigation which was by the Greater Cincinnati Mortgage Fraud Task Force, primarily through the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Postal Inspection Service.
In addition to the FBI, IRS, and Postal Inspection Service, agencies participating in the Task Force include Ohio Attorney General Rich Cordray’s Office, U.S. Housing and Urban Development Office of Inspector General, the Cincinnati Police Department, the U.S. Secret Service, the Springdale Police Department, Warren County Prosecutor Rachel Hutzel, Hamilton County Prosecutor Joe Deters, the U.S. Attorney’s Office in the Eastern District of Kentucky, the West Chester Police Department, the Middletown Police Department, Hamilton County Sheriff Simon Leis, the FDIC, and the Ohio Department of Commerce Division of Financial Institutions.
Agents began arresting the defendants this morning. They will have an initial appearance before a U.S. Magistrate Judge in Cincinnati later today.
An indictment is merely an accusation. A defendant should be presumed innocent until and unless proven guilty in court.
Conspiracy and Fraud Charges
January 15, 2010 - Two area men have been indicted on charges of conspiracy to give and accept bribes in connection with bank loans, Acting United States Attorney Michael W. Reap announced today. According to the indictment, the conspiracy lasted from July 2006 to July 2008. Yuriy Shrifteylik offered bribes to David Ryan Hunt, a financial services manager with Commerce Bank, in return for Hunt’s assistance in facilitating four loans. The four loans total approximately two million dollars. Additionally, the indictment alleges that Shrifteylik submitted various false documents to obtain two of the loans, which were for the purchase of MRI machines. The indictment charges that the funds were used for other purposes.
YURIY SHRIFTEYLIK, St. Louis, Missouri, was indicted by a federal grand jury on one felony count of conspiracy and one felony count of giving a bribe in connection with the loans, two felony counts of bank fraud and four felony counts of wire fraud.
DAVID RYAN HUNT, Eureka, Missouri, was indicted by a federal grand jury on one felony count of conspiracy and one felony count of receiving a bribe in connection with the loans.
If convicted, the conspiracy count carries a maximum penalty of five years in prison and/or fines up to $250,000; each of the other counts carry a maximum penalty of 30 years in prison and/or fines up to $1,000,000.
Reap commended the work performed on the case by the Federal Bureau of Investigation and Assistant United States Attorney Rosemary Meyers, who is handling the case for the U.S. Attorney’s Office.
The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty.
YURIY SHRIFTEYLIK, St. Louis, Missouri, was indicted by a federal grand jury on one felony count of conspiracy and one felony count of giving a bribe in connection with the loans, two felony counts of bank fraud and four felony counts of wire fraud.
DAVID RYAN HUNT, Eureka, Missouri, was indicted by a federal grand jury on one felony count of conspiracy and one felony count of receiving a bribe in connection with the loans.
If convicted, the conspiracy count carries a maximum penalty of five years in prison and/or fines up to $250,000; each of the other counts carry a maximum penalty of 30 years in prison and/or fines up to $1,000,000.
Reap commended the work performed on the case by the Federal Bureau of Investigation and Assistant United States Attorney Rosemary Meyers, who is handling the case for the U.S. Attorney’s Office.
The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty.
Johnstown Man Indicted on Drug and Gun Charges
January 15, 2010 - Acting United States Attorney Robert S. Cessar announced today, January 14, 2010, that on January 12, Dorian D. Stephens, of Johnstown, Pennsylvania, was indicted by a federal grand jury in Johnstown on charges of violating various federal laws.
The three-count indictment named Stephens, age 23, as the sole defendant.
According to the indictment presented to the court, on November 13, 2008, Stephens distributed five grams or more of cocaine base, commonly known as "crack," and on October 6, 2009, he possessed five grams or more of cocaine base with the intent to distribute it.
The indictment further alleges that on October 6, 2009, Stephens, who had been convicted in 2008 in Cambria County, Pennsylvania, of Drug Act Delivery, unlawfully possessed two handguns. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Drug Act Delivery is such a crime.
Assistant United States Attorney John J. Valkovci, Jr., who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 90 years in prison, a fine of $4,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
According to Mr. Cessar, Stephens is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Cambria County Drug Task Force and the Federal Bureau of Investigation (Laurel Highlands Resident Agency) conducted the investigation leading to the indictment 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 guilt beyond a reasonable doubt.
The three-count indictment named Stephens, age 23, as the sole defendant.
According to the indictment presented to the court, on November 13, 2008, Stephens distributed five grams or more of cocaine base, commonly known as "crack," and on October 6, 2009, he possessed five grams or more of cocaine base with the intent to distribute it.
The indictment further alleges that on October 6, 2009, Stephens, who had been convicted in 2008 in Cambria County, Pennsylvania, of Drug Act Delivery, unlawfully possessed two handguns. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Drug Act Delivery is such a crime.
Assistant United States Attorney John J. Valkovci, Jr., who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 90 years in prison, a fine of $4,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
According to Mr. Cessar, Stephens is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Cambria County Drug Task Force and the Federal Bureau of Investigation (Laurel Highlands Resident Agency) conducted the investigation leading to the indictment 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 guilt beyond a reasonable doubt.
Metairie Man Sentenced for Bank Wire Fraud
January 15, 2010 - HUBERT EDWARD ELLZEY, Jr., age 68, a resident of Metairie, Louisiana, was sentenced today in federal court by U.S. District Court Judge Eldon E. Fallon to thirty-five (35) months in prison for bank wire fraud, announced U.S. Attorney Jim Letten.
In addition, Judge Fallon imposed three (3) years of supervised release following the term of confinement, during which time the defendant will be under federal supervision and risks an additional term of confinement should he violate any terms of his supervised release. ELLZEY was also ordered to pay $777,000.00 to Commonwealth Land Title Insurance Company of Louisiana in restitution.
According to court documents, ELLZEY was employed as an independent title agent for Commonwealth Land Title Insurance Company of Louisiana and as such was responsible for disbursing funds from the sale of refinanced property. Usually these funds were wired to ELLZEY into a special escrow account. At some point after June of 2005, ELLZEY began to use the funds provided and wired by the lenders to close out mortgages for his own personal use and would then float the funds from subsequent closings to pay off the prior refinanced mortgages. The scheme was discovered when after Hurricane Katrina hit New Orleans in August, 2005 all closings came to a halt and ELLZEY was unable to cover some of the funds converted for his own use and to close the pending mortgages. During the course of the scheme ELLZEY defrauded Commonwealth Land Title Insurance Company of Louisiana of approximately $77,000.00.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Juan M. Masini.
In addition, Judge Fallon imposed three (3) years of supervised release following the term of confinement, during which time the defendant will be under federal supervision and risks an additional term of confinement should he violate any terms of his supervised release. ELLZEY was also ordered to pay $777,000.00 to Commonwealth Land Title Insurance Company of Louisiana in restitution.
According to court documents, ELLZEY was employed as an independent title agent for Commonwealth Land Title Insurance Company of Louisiana and as such was responsible for disbursing funds from the sale of refinanced property. Usually these funds were wired to ELLZEY into a special escrow account. At some point after June of 2005, ELLZEY began to use the funds provided and wired by the lenders to close out mortgages for his own personal use and would then float the funds from subsequent closings to pay off the prior refinanced mortgages. The scheme was discovered when after Hurricane Katrina hit New Orleans in August, 2005 all closings came to a halt and ELLZEY was unable to cover some of the funds converted for his own use and to close the pending mortgages. During the course of the scheme ELLZEY defrauded Commonwealth Land Title Insurance Company of Louisiana of approximately $77,000.00.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Juan M. Masini.
Hammond Woman Sentenced for Defrauding American Red Cross
January 15, 2010 - CYNTHIA McGOWAN, 27, a resident of Hammond, LA, was sentenced in federal court today before U.S. District Judge Frederic Block to three (3) years' probation and six (6) months home incarceration after pleading guilty to one count of wire fraud related to fraudulent applications for financial assistance that she submitted to the American Red Cross after Hurricane Katrina, announced U.S. Attorney Jim Letten. In addition, McGOWAN has been ordered to pay $7,825 in restitution to the Red Cross. According to court documents, McGOWAN applied for and received disaster assistance funds from the American Red Cross nine (9) times. The Red Cross made disaster assistance money of up to $1565 available to those affected by the hurricanes of 2005 on a one-time only basis. McGOWAN repeatedly applied for these funds in September and October of 2005, indicating on several occasions that she had not received any money from the Red Cross.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Sharan E. Lieberman.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Sharan E. Lieberman.
U.S. Marshals Assist San Francisco Police to Capture Sex Offender
January 15, 2010 - A joint effort by the U.S. Marshals Northern California Fugitive Task Force, Fugitive Recovery Enforcement Team, and the San Francisco Police Department resulted in the arrest Wednesday of one of the San Francisco Police Department’s top 10 most wanted fugitives.
Steve A. Bahr, 52, wanted for failure to register as a sex offender and an additional sex offense in Mendocino County, was arrested without incident and booked into the San Francisco County jail.
The U.S. Marshals Service is committed to the pursuit of justice put forth in the U.S. Constitution. With a legacy dating back to 1789, our mission has remained steadfast.
Steve A. Bahr, 52, wanted for failure to register as a sex offender and an additional sex offense in Mendocino County, was arrested without incident and booked into the San Francisco County jail.
The U.S. Marshals Service is committed to the pursuit of justice put forth in the U.S. Constitution. With a legacy dating back to 1789, our mission has remained steadfast.
Border Patrol Finds Nearly a Ton of Marijuana in Southern Texas Apartment
January 14, 2010 - U.S. Border Patrol agents assigned to the Rio Grande City station seized more than $1.5 million in marijuana in Escobares, Texas. Rio Grande City Station Border Patrol agents observed a suspicious vehicle Wednesday morning leaving the area of the Rio Grande. The vehicle’s description was relayed to agents in the surrounding area. Moments later, agents spotted a vehicle matching the description of the suspicious vehicle entering the parking lot of a nearby apartment complex. As the agents approached to investigate, the vehicle quickly left the area.
The agents continued to drive through the complex and spotted what appeared to be large bundles of narcotics near the entrance of an apartment. The agents approached the bundles and spotted several more through the open door of the vacant apartment. Rio Grande City agents seized 253 bundles of marijuana weighing a total of 1,908 pounds.
The Drug Enforcement Administration assumed custody of the narcotics.
To report suspicious activity, contact the Rio Grande Valley Border Patrol Sector’s toll free telephone number at 1-800-863-9382.
Officer at Douglas Port Apprehend Teen Smuggling Marijuana
January 14, 2010 - U.S. Customs and Border Protection officers stopped a drug smuggling attempt when they apprehended a 17-year-old boy trying to smuggle marijuana. On January 12 at about 3 p.m., CBP officers were screening travelers when a special trained CBP K-9 Team showed interest in a 1992 Buick Regal being driven by a 17-year-old boy. The boy was identified as a resident of Agua Prieta, Sonora, Mexico. The CBP officers searched the vehicle and discovered packages of marijuana concealed in the front bumper. The marijuana weighed about 18 pounds and had an estimated street value of over $40,000.
CBP officers seized the marijuana and the vehicle. The boy was turned over to the custody of Immigration and Customs Enforcement for further investigation and prosecution.
“Smuggling of any contraband into the United States is a very serious offense” said Ernestine Morris, Assistant Port Director for the Douglas port of entry,” these young kids think that because they are minors, that the consequences of breaking the law will be minimal; they couldn’t be more wrong. Even a minor can face criminal charges that can have an adverse affect on future goals and opportunities for the rest of their life. When it comes to securing our nation’s borders age plays no factor.”
CBP officers seized the marijuana and the vehicle. The boy was turned over to the custody of Immigration and Customs Enforcement for further investigation and prosecution.
“Smuggling of any contraband into the United States is a very serious offense” said Ernestine Morris, Assistant Port Director for the Douglas port of entry,” these young kids think that because they are minors, that the consequences of breaking the law will be minimal; they couldn’t be more wrong. Even a minor can face criminal charges that can have an adverse affect on future goals and opportunities for the rest of their life. When it comes to securing our nation’s borders age plays no factor.”
Two Brothers Plead Guilty in Conspiracy to Hold Thai Workers in Forced Labor in Hawaii
Defendants Alec Sou and Mike Sou, co-owners of Aloun Farm, pleaded guilty on Jan.13, 2010, in federal district court in Honolulu, to conspiring to commit forced labor. The two defendants, who are brothers, each face up to five years in prison for their respective roles in a labor trafficking scheme that held Thai agricultural workers in service at Aloun Farm through a scheme of debts, threats, and restraint.
During their respective plea hearings, the defendants acknowledged that they conspired with one another and with others to hold 44 Thai men in forced labor on a farm operated by the defendants, using a scheme of physical restraint and threats of serious harm to intimidate the workers and hold them in fear of attempting to leave the defendants’ service.
“Holding other human beings in servitude against their will is a violation of individual rights that is intolerable in a free society,” stated Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “This prosecution demonstrates our commitment to combating human trafficking in all its forms, vindicating the rights of trafficking victims, and bringing human traffickers to justice.”
“Labor traffickers prey on vulnerable victims and their dreams of a better life. Those who conspire to hold workers in forced labor undermine this country's promise of liberty and opportunity,” said Florence T. Nakakuni, U.S. Attorney for the District of Hawaii. “We will continue to hold accountable those who seek to enrich themselves at the expense of the freedom, rights, and dignity of others.”
In the past fiscal year, the Civil Rights Division, in partnership with U.S. Attorney’s Offices, brought a record number of human trafficking cases, including the highest number of labor trafficking cases ever brought in a single year.
The government’s case is being prosecuted by trial attorneys Susan French and Kevonne Small of the Criminal Section of the Civil Rights Division and its Human Trafficking Prosecution Unit and by Assistant U.S. Attorney Susan Cushman.
This case was investigated by FBI Special Agents Gary Brown in Honolulu and Tricia Whitehill in Los Angeles, with support from ICE Special Agents Frank Kalepa and Daniel Kenney.
During their respective plea hearings, the defendants acknowledged that they conspired with one another and with others to hold 44 Thai men in forced labor on a farm operated by the defendants, using a scheme of physical restraint and threats of serious harm to intimidate the workers and hold them in fear of attempting to leave the defendants’ service.
“Holding other human beings in servitude against their will is a violation of individual rights that is intolerable in a free society,” stated Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “This prosecution demonstrates our commitment to combating human trafficking in all its forms, vindicating the rights of trafficking victims, and bringing human traffickers to justice.”
“Labor traffickers prey on vulnerable victims and their dreams of a better life. Those who conspire to hold workers in forced labor undermine this country's promise of liberty and opportunity,” said Florence T. Nakakuni, U.S. Attorney for the District of Hawaii. “We will continue to hold accountable those who seek to enrich themselves at the expense of the freedom, rights, and dignity of others.”
In the past fiscal year, the Civil Rights Division, in partnership with U.S. Attorney’s Offices, brought a record number of human trafficking cases, including the highest number of labor trafficking cases ever brought in a single year.
The government’s case is being prosecuted by trial attorneys Susan French and Kevonne Small of the Criminal Section of the Civil Rights Division and its Human Trafficking Prosecution Unit and by Assistant U.S. Attorney Susan Cushman.
This case was investigated by FBI Special Agents Gary Brown in Honolulu and Tricia Whitehill in Los Angeles, with support from ICE Special Agents Frank Kalepa and Daniel Kenney.
Thirteen Detroit-Area Individuals Arrested and Charged for $14.5 Million Medicare Fraud
Thirteen Detroit-area residents were arrested today by federal agents from the Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and FBI in connection with an alleged home health care scheme to defraud the Medicare program of more than $14.5 million, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Special-Agent-in-Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special-Agent-in-Charge Lamont Pugh of the Chicago Regional Office.
In a six-count indictment returned on Jan. 12, 2009, and unsealed today, the 13 individuals are alleged to have participated in a Medicare fraud scheme operated out of Patient Choice Home Healthcare (Patient Choice) and All American Home Care (All American), two Oakland County, Mich., home health agencies that purported to provide in-home health services. Muhammad Shahab, 50; Christopher Collins, 38; Hassan Akhtar, 26; Curtis Mallory, 35; Mohammed El-Fallal, 55; Jessica Vigil, 34; Tariq Chaudhary, 36; Faisal Chaudray, 31; and Visnhu Meda, 29, were all indicted for conspiracy to commit health care fraud. In addition, Shahab; Pramod Raval, M.D., 56; Guy Ross, 48; Lura Barrett, 61; and Stephen Cartier, 50, were charged with conspiracy to violate the Anti-Kickback Statute. Shahab and Akhtar were also each charged with two counts of money laundering. The indictment seeks the forfeiture of assets from all the defendants.
According to the indictment, Shahab, Akhtar and Collins owned and operated Patient Choice and All American. The home health agencies purported to provide home health therapy services to Medicare beneficiaries. The indictment alleges that Patient Choice and All American billed for home health therapy services that were unnecessary and were never performed. In addition, it alleges that Collins and Mallory recruited patients and paid them kickbacks for their Medicare information and signatures on documents. These false documents were then used to bill Medicare for home health services that were not rendered. The indictment also alleges that El-Fallal used the identity of a licensed physician to sign physician referrals for home health therapy services that were medically unnecessary and not performed. The indictment charges Vigil, Chaudhary, Chaudary and Meda with falsifying medical records to make it appear that home health therapy services were provided.
In addition, the indictment alleges that Shahab, Dr. Raval, Ross, Barrett and Cartier engaged in a conspiracy where Shahab would pay kickbacks to the others in exchange for patient referrals and access to Medicare beneficiaries under Dr. Raval, Ross, Barrett and Cartier’s care.
The indictment alleges that Medicare paid Patient Choice and All American more than $14.5 million for services that were medically unnecessary and not provided between August 2007 and September 2009. The charge of health care fraud conspiracy carries a maximum penalty of 10 years in prison and a $250,000 fine. The charge of violating the Anti-Kickback Statute carries a maximum prison sentence of five years and a fine of up to $25,000. Each violation of 18 USC 1956 (money laundering) carries a maximum prison sentence of 20 years and a maximum fine of $500,000. Each violation of 18 USC 1957 (money laundering) carries a maximum prison sentence of 10 years in prison and a maximum fine of $250,000.
An indictment is merely a charge and defendants are presumed innocent until proven guilty.
The case is being prosecuted by Deputy Chief Kirk Ogrosky, Senior Trial Attorney John Neal and Trial Attorney Gejaa Gobena of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG. This prosecution is the latest in the Medicare Fraud Strike Force’s efforts in the Detroit area. The Strike Force is supervised by the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of Michigan.
Since the inception of Strike Force operations in March 2007—Miami (Phase One), Los Angeles (Phase Two), Detroit (Phase Three), Houston (Phase Four), Brooklyn (Phase Five), Tampa (Phase Six), and Baton Rouge (Phase Seven)—the Strike Force has obtained indictments of more than 475 individuals and organizations that collectively have billed the Medicare program for more than $1 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: http://www.stopmedicarefraud.gov/.
In a six-count indictment returned on Jan. 12, 2009, and unsealed today, the 13 individuals are alleged to have participated in a Medicare fraud scheme operated out of Patient Choice Home Healthcare (Patient Choice) and All American Home Care (All American), two Oakland County, Mich., home health agencies that purported to provide in-home health services. Muhammad Shahab, 50; Christopher Collins, 38; Hassan Akhtar, 26; Curtis Mallory, 35; Mohammed El-Fallal, 55; Jessica Vigil, 34; Tariq Chaudhary, 36; Faisal Chaudray, 31; and Visnhu Meda, 29, were all indicted for conspiracy to commit health care fraud. In addition, Shahab; Pramod Raval, M.D., 56; Guy Ross, 48; Lura Barrett, 61; and Stephen Cartier, 50, were charged with conspiracy to violate the Anti-Kickback Statute. Shahab and Akhtar were also each charged with two counts of money laundering. The indictment seeks the forfeiture of assets from all the defendants.
According to the indictment, Shahab, Akhtar and Collins owned and operated Patient Choice and All American. The home health agencies purported to provide home health therapy services to Medicare beneficiaries. The indictment alleges that Patient Choice and All American billed for home health therapy services that were unnecessary and were never performed. In addition, it alleges that Collins and Mallory recruited patients and paid them kickbacks for their Medicare information and signatures on documents. These false documents were then used to bill Medicare for home health services that were not rendered. The indictment also alleges that El-Fallal used the identity of a licensed physician to sign physician referrals for home health therapy services that were medically unnecessary and not performed. The indictment charges Vigil, Chaudhary, Chaudary and Meda with falsifying medical records to make it appear that home health therapy services were provided.
In addition, the indictment alleges that Shahab, Dr. Raval, Ross, Barrett and Cartier engaged in a conspiracy where Shahab would pay kickbacks to the others in exchange for patient referrals and access to Medicare beneficiaries under Dr. Raval, Ross, Barrett and Cartier’s care.
The indictment alleges that Medicare paid Patient Choice and All American more than $14.5 million for services that were medically unnecessary and not provided between August 2007 and September 2009. The charge of health care fraud conspiracy carries a maximum penalty of 10 years in prison and a $250,000 fine. The charge of violating the Anti-Kickback Statute carries a maximum prison sentence of five years and a fine of up to $25,000. Each violation of 18 USC 1956 (money laundering) carries a maximum prison sentence of 20 years and a maximum fine of $500,000. Each violation of 18 USC 1957 (money laundering) carries a maximum prison sentence of 10 years in prison and a maximum fine of $250,000.
An indictment is merely a charge and defendants are presumed innocent until proven guilty.
The case is being prosecuted by Deputy Chief Kirk Ogrosky, Senior Trial Attorney John Neal and Trial Attorney Gejaa Gobena of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG. This prosecution is the latest in the Medicare Fraud Strike Force’s efforts in the Detroit area. The Strike Force is supervised by the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of Michigan.
Since the inception of Strike Force operations in March 2007—Miami (Phase One), Los Angeles (Phase Two), Detroit (Phase Three), Houston (Phase Four), Brooklyn (Phase Five), Tampa (Phase Six), and Baton Rouge (Phase Seven)—the Strike Force has obtained indictments of more than 475 individuals and organizations that collectively have billed the Medicare program for more than $1 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: http://www.stopmedicarefraud.gov/.
Haitian Earthquake Relief Fraud Alert
The FBI today reminds Internet users who receive appeals to donate money in the aftermath of Tuesday’s earthquake in Haiti to apply a critical eye and do their due diligence before responding to those requests. Past tragedies and natural disasters have prompted individuals with criminal intent to solicit contributions purportedly for a charitable organization and/or a good cause.
Therefore, before making a donation of any kind, consumers should adhere to certain guidelines, to include the following:
• Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages.
• Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via e-mail or social networking sites.
• Verify the legitimacy of nonprofit organizations by utilizing various Internet-based resources that may assist in confirming the group’s existence and its nonprofit status rather than following a purported link to the site.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf to ensure contributions are received and used for intended purposes.
• Do not give your personal or financial information to anyone who solicits contributions: Providing such information may compromise your identity and make you vulnerable to identity theft.
Anyone who has received an e-mail referencing the above information or anyone who may have been a victim of this or a similar incident should notify the IC3 via http://www.ic3.gov/
Therefore, before making a donation of any kind, consumers should adhere to certain guidelines, to include the following:
• Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages.
• Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via e-mail or social networking sites.
• Verify the legitimacy of nonprofit organizations by utilizing various Internet-based resources that may assist in confirming the group’s existence and its nonprofit status rather than following a purported link to the site.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf to ensure contributions are received and used for intended purposes.
• Do not give your personal or financial information to anyone who solicits contributions: Providing such information may compromise your identity and make you vulnerable to identity theft.
Anyone who has received an e-mail referencing the above information or anyone who may have been a victim of this or a similar incident should notify the IC3 via http://www.ic3.gov/
Forensic Microscopy Training Delivery Program Funded by the National Institute of Justice (NIJ)
The National Institute of Justice has awarded The College of Microscopy funds to train 200 forensic trace evidence examiners over a two year period. The available funds cover tuition for any of eleven select courses, and all travel, lodging and per diem expenses.
Forensic trace evidence examiners employed in state or local crime laboratories are eligible to enroll in any of the courses listed below. For course dates and descriptions, please click on the courses below.
General Microscopy Courses:
COM100: Modern Polarized Light
COM200: Scanning Electron Microscopy
COM300: Particle Isolation, Manipulation and Mounting
COM600: Infrared Microscopy (FTIR)
COM610: Raman Microscopy
Forensic Trace Evidence Courses:
COM400: Examination of Forensic Trace Evidence Particles
COM401: Hair Comparisons
COM402: Fiber Identification
COM406: Forensic Soil Examination
COM430: Identification of White-Powder Unknowns
More Information
http://www.collegeofmicroscopy.com/nij/index.asp
Forensic trace evidence examiners employed in state or local crime laboratories are eligible to enroll in any of the courses listed below. For course dates and descriptions, please click on the courses below.
General Microscopy Courses:
COM100: Modern Polarized Light
COM200: Scanning Electron Microscopy
COM300: Particle Isolation, Manipulation and Mounting
COM600: Infrared Microscopy (FTIR)
COM610: Raman Microscopy
Forensic Trace Evidence Courses:
COM400: Examination of Forensic Trace Evidence Particles
COM401: Hair Comparisons
COM402: Fiber Identification
COM406: Forensic Soil Examination
COM430: Identification of White-Powder Unknowns
More Information
http://www.collegeofmicroscopy.com/nij/index.asp
Thursday, January 14, 2010
Board of Inquiry Report
Independent Board of Inquiry into the March 2009 murder of four Oakland Police Officers was published in December 2009. A copy is available here.
Border Patrol Agents Arrest Juvenile Carrying 22 Pound Marijuana Backpack
January 14, 2010: U.S. Border Patrol agents arrested a juvenile Wednesday who was carrying a backpack-style bundle of marijuana valued at approximately $17,792.
Border Patrol agents detected an illegal crossing of the International Boundary into the United States which led to the apprehension of a 16-year-old male who is in the country illegally. The juvenile was carrying a 22 pound bundle of marijuana on his back at the time of apprehension.
Agents brought the subject back to the Yuma Border Patrol station for processing and turned him and the marijuana over to the Imperial County Sheriff’s Office Narcotics Taskforce.
Border Patrol agents detected an illegal crossing of the International Boundary into the United States which led to the apprehension of a 16-year-old male who is in the country illegally. The juvenile was carrying a 22 pound bundle of marijuana on his back at the time of apprehension.
Agents brought the subject back to the Yuma Border Patrol station for processing and turned him and the marijuana over to the Imperial County Sheriff’s Office Narcotics Taskforce.
Wednesday, January 13, 2010
Spring 2010 Rural Law Enforcement Technology Institute
May 2-7, 2010, Coronado (San Diego), Calif.
Application Deadline: Extended! February 8, 2010
Description:
For the eighth year, the National Institute of Justice (NIJ) is sponsoring a Rural Law Enforcement Technology Institute. This technology institute will be held May 2-7, 2010, in Coronado (San Diego), Calif., and is targeted/designed for the command staff/supervisory personnel of rural and small law enforcement agencies containing fewer than 50 sworn officers. Law enforcement personnel will learn about and discuss technology initiatives and issues affecting the rural and small law enforcement community. Participants will receive information and assistance on existing and developing technologies, work through problems relating to technology implementation, and exchange technology lessons learned that are important to the rural and small law enforcement community.
As part of the program, participants are required to give a brief (no more than 15 minutes) PowerPoint presentation on a technology issue that their department has encountered or is in the process of implementing (e.g., implementation of a crime mapping program, new communications system or automated booking station). The presentation can be either an issues to be dealt with or a lessons-learned format, depending on whether the program has been completed, and must be submitted on CD-ROM with the application.
There is no registration cost and all travel, food and lodging expenses are paid. However, only 35 individuals will be selected to attend. Previous attendees of the NIJ Rural Law Enforcement Technology Institute or the NIJ Technology Institutes for Law Enforcement or Corrections are not eligible to attend.
For a copy of the application form go to:
http://www.ojp.usdoj.gov/nij/training/rural-institute.htm
The deadline for submitting an application is February 1, 2010. Applications not received by that date and/or applications submitted without a CD-ROM containing the PowerPoint presentation will not be considered. The application and PowerPoint CD-ROM should be mailed to the following address:
Rural Law Enforcement Technology Center
ATTN: Rural LE Tech Institute
101 Bulldog Lane
Hazard, KY 41701
For additional information, please contact Scott Barker, Deputy Director-Rural Law Enforcement Technology Center, at (866) 787-2553 or e-mail ruletc1@aol.com.
Application Deadline: Extended! February 8, 2010
Description:
For the eighth year, the National Institute of Justice (NIJ) is sponsoring a Rural Law Enforcement Technology Institute. This technology institute will be held May 2-7, 2010, in Coronado (San Diego), Calif., and is targeted/designed for the command staff/supervisory personnel of rural and small law enforcement agencies containing fewer than 50 sworn officers. Law enforcement personnel will learn about and discuss technology initiatives and issues affecting the rural and small law enforcement community. Participants will receive information and assistance on existing and developing technologies, work through problems relating to technology implementation, and exchange technology lessons learned that are important to the rural and small law enforcement community.
As part of the program, participants are required to give a brief (no more than 15 minutes) PowerPoint presentation on a technology issue that their department has encountered or is in the process of implementing (e.g., implementation of a crime mapping program, new communications system or automated booking station). The presentation can be either an issues to be dealt with or a lessons-learned format, depending on whether the program has been completed, and must be submitted on CD-ROM with the application.
There is no registration cost and all travel, food and lodging expenses are paid. However, only 35 individuals will be selected to attend. Previous attendees of the NIJ Rural Law Enforcement Technology Institute or the NIJ Technology Institutes for Law Enforcement or Corrections are not eligible to attend.
For a copy of the application form go to:
http://www.ojp.usdoj.gov/nij/training/rural-institute.htm
The deadline for submitting an application is February 1, 2010. Applications not received by that date and/or applications submitted without a CD-ROM containing the PowerPoint presentation will not be considered. The application and PowerPoint CD-ROM should be mailed to the following address:
Rural Law Enforcement Technology Center
ATTN: Rural LE Tech Institute
101 Bulldog Lane
Hazard, KY 41701
For additional information, please contact Scott Barker, Deputy Director-Rural Law Enforcement Technology Center, at (866) 787-2553 or e-mail ruletc1@aol.com.
Arizona CBP Officers Arrest Juvenile Drug Smuggler
January 12, 2010:U.S. Customs and Border Protection officers at the San Luis port of entry foiled a marijuana smuggling attempt by a 16-year-old United States citizen. On January 11, the 16-year-old juvenile attempted to bypass the CBP officers by posing as a regular law abiding citizen. The officers suspected the young man was hiding something due to his demeanor and referred him into the passport control secondary office for further inspection.
In the secondary area the officers noticed a bulge around his torso area and immediately took him into custody. The packages were found to contain more than five pounds of marijuana.
The marijuana was seized and the young man was turned over to the San Luis, Ariz. Police Department for further investigation and processing.
The marijuana has an estimated street value of $11,827.20
In the secondary area the officers noticed a bulge around his torso area and immediately took him into custody. The packages were found to contain more than five pounds of marijuana.
The marijuana was seized and the young man was turned over to the San Luis, Ariz. Police Department for further investigation and processing.
The marijuana has an estimated street value of $11,827.20
Tuesday, January 12, 2010
Project Lifesaver
To help combat the issue of wandering, and the money and resources spent on excruciatingly long searches to help find those that go missing due to cognitive conditions, Project Lifesaver International started a program in 1999. Project Lifesaver is a non-profit organization that is committed to helping families quickly find their loved ones that wander due to Alzheimer's disease, autism, dementia, Down syndrome, and other cognitive conditions. Project Lifesaver trains agencies on how to search for individuals who become lost by utlitizing search and rescue techniques and equipment, as well as how to interact with individuals once they are found to help facilitate a safe escort home. Clients enrolled in the program wear a small, wrist-watch sized transmitter that emits an individualized tracking signal and should the individual wander, public safety agencies are able to rapidly locate them. These efforts have drastically reduced search and rescue times for public safety officials, and they have helped find loved ones quicker and easier with an average search time of 30 minutes or less. To date, Project Lifesaver agencies have rescued over 2,000 missing people on the program, with over 1,100 particpating public safety agencies in 45 states, Canada, and Australia. For more information, please visit http://www.projectlifesaver.org/ or call 1.877.580.LIFE(5433). - Chief Gene Saunders, Founder and CEO, Project Lifesaver International
CBP Officers in Naco Seize $51,000 in Marijuana from Center Console
January 11, 2010: U.S. Customs and Border Protection officers stopped a marijuana smuggling attempt when they seized $51,000 of marijuana concealed in the center console of a vehicle. On January 7 at about 7 a.m. CBP officers became suspicious of a 2007 Tahoe that was being driven by a 22-year-old man. The man was identified as a United States citizen and resident of Naco, Ariz. CBP officers searched the vehicle and discovered that the center console was filled with approximately 32 pounds of marijuana. The marijuana had an estimated street value of $51,000. CBP officers seized the vehicle and marijuana. The man was turned over to the custody of Immigration and Customs Enforcement for further investigation and prosecution.
CBP Intercepts Heroin, Marijuana at Calexico Ports Over Weekend
January 11, 2010: U.S. Customs and Border Protection officers working passenger operations at the Calexico ports over the weekend foiled three narcotic smuggling attempts worth over $200,000, officials announced today. On Sunday, January 10, at about 10:30 a.m. at the Calexico east port of entry a detector dog alerted to a blue 1988 Volkswagen Jetta as it slowly drove past. The driver, a 41-year-old male Mexican citizen and vehicle were referred for a more in-depth inspection.
The driver was escorted to a private room where a pat down was conducted for concealed weapons and contraband. The pat down resulted in the discovery of two small packages of heroin, concealed inside the driver’s shoes, weighing two pounds with a street value of $26,000.
The driver, a resident of Mexicali, was arrested for the smuggling attempt and turned over to the custody of Immigration and Customs Enforcement agents for further disposition.
The second seizure occurred later in the day at about 2 p.m. when officers arrested a 21-year-old female U.S. citizen and a 22-year-old male U.S. citizen who allegedly attempted to smuggle 80 pounds of marijuana concealed in a grey 2004 Dodge Dakota pick-up truck.
A canine officer and his detector dog were conducting an enforcement operation when the dog alerted to the Dakota pick-up truck. Officers subsequently discovered 37 wrapped packages of marijuana concealed inside the dashboard with a street value of $72,340.
The driver, a resident of El Monte, Calif., and the passenger, a resident of Los Angeles, were turned over to the custody of ICE agents for further investigation.
The largest seizure occurred on Saturday, January 9, at about 8 am at the Calexico downtown port when CBP officers arrested a 43-year-old male Mexican citizen who allegedly attempted to smuggle 138 pounds of marijuana concealed inside a green 1998 Ford Windstar van.
The driver had been referred to the secondary inspection area for further examination. Closer examination and canine screening of the vehicle resulted in the discovery of 80 wrapped packages of marijuana concealed in the vehicle’s dashboard and passenger door. The street value of the marijuana is $125,240.
The driver, a permanent resident of Calexico, was turned over to the custody of ICE agents for further disposition. CBP placed an immigration hold on the Mexican citizens to initiate possible removal from the United States at the conclusion of their criminal proceedings.
In all three incidents, CBP seized the narcotics and vehicles.
The driver was escorted to a private room where a pat down was conducted for concealed weapons and contraband. The pat down resulted in the discovery of two small packages of heroin, concealed inside the driver’s shoes, weighing two pounds with a street value of $26,000.
The driver, a resident of Mexicali, was arrested for the smuggling attempt and turned over to the custody of Immigration and Customs Enforcement agents for further disposition.
The second seizure occurred later in the day at about 2 p.m. when officers arrested a 21-year-old female U.S. citizen and a 22-year-old male U.S. citizen who allegedly attempted to smuggle 80 pounds of marijuana concealed in a grey 2004 Dodge Dakota pick-up truck.
A canine officer and his detector dog were conducting an enforcement operation when the dog alerted to the Dakota pick-up truck. Officers subsequently discovered 37 wrapped packages of marijuana concealed inside the dashboard with a street value of $72,340.
The driver, a resident of El Monte, Calif., and the passenger, a resident of Los Angeles, were turned over to the custody of ICE agents for further investigation.
The largest seizure occurred on Saturday, January 9, at about 8 am at the Calexico downtown port when CBP officers arrested a 43-year-old male Mexican citizen who allegedly attempted to smuggle 138 pounds of marijuana concealed inside a green 1998 Ford Windstar van.
The driver had been referred to the secondary inspection area for further examination. Closer examination and canine screening of the vehicle resulted in the discovery of 80 wrapped packages of marijuana concealed in the vehicle’s dashboard and passenger door. The street value of the marijuana is $125,240.
The driver, a permanent resident of Calexico, was turned over to the custody of ICE agents for further disposition. CBP placed an immigration hold on the Mexican citizens to initiate possible removal from the United States at the conclusion of their criminal proceedings.
In all three incidents, CBP seized the narcotics and vehicles.
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