Task Force 'Operation TOAST' Nets Sex Offenders

The U.S. Marshals Service-led Detroit Fugitive Apprehension Team (DFAT) conducted a three-day sex offender sweep in the City of Detroit from Tuesday through today. DFAT -- comprising the U.S. Marshals, Michigan State Police, Wayne County Sheriff’s Department, Detroit Police Department, Dearborn Police Department, Livonia Police Detroit Department, Sterling Heights Police Department, Macomb County Sheriff’s Department, Oakland County Sheriff’s Department, Hamtramck Police Department, Immigration and Customs Enforcement, and Michigan Department of Corrections -- works in concert to arrest dangerous fugitive felons as well as sex offenders. TOAST, which stands for Tracking Offenders and Apprehending Significant Targets, targeted sex offenders in the Detroit Area. There are currently 800 non-compliant sex offenders within the City of Detroit, 400 of whom have outstanding warrants for criminal offenses.

More than 80 officers worked the sweep that netted 70 Sex Offender Registry Felony arrests. These felonies were for cases that involved violent sexual assaults. Also, there were six Friend of the Court arrests, 19 misdemeanor arrests and 656 potential violations of sex offender laws investigated and cleared. Finally, 83 Detroit Police, 63 Michigan State Police and 22 U.S. Marshals Adam Walsh Act felony investigations have been initiated from information gathered during the sweep.

One case involved Shantee Brown who was wanted for bond jumping. His original charge was for 1st degree sexual assault, kidnapping, assault with a deadly weapon, felony firearm and 3rd degree sexual assault. He was given bond on the case and fled the State of Michigan Sept. 13. DFAT tracked Brown to Birmingham, Ala. The U.S. Marshals-led Gulf Coast Regional Fugitive Task Force worked the case and arrested Brown Sept. 26. Brown attempted to flee from officers on a bike but was apprehended after being chased. He is currently awaiting extradition to Michigan.

The U.S. Marshals were given federal responsibility under the Adam Walsh Act in 2006 to apprehend federal sex offenders. Part of this responsibility is to partner with state and local law enforcement to ensure that sex offenders register under the law and arrest those who do not.

“DFAT is an outstanding example of law enforcement at all levels coming together for the common purpose of removing violent fugitives and sex offenders from the streets and neighborhoods of our communities,” U.S. Marshal Robert M. Grubbs said. Grubbs said he could not be any prouder of the efforts of all the officers involved.

Wayne County Sheriff Benny N. Napoleon echoed Grubb’s comments. “The collaboration that went into getting these violent offenders off the street must be commended,” he said. “I know the effort prevented a number of innocent people from becoming their next victims. We will continue teaming up to send the message that fleeing custody is not an option because you will be caught and face the consequences in court.”

Additional information about the U.S. Marshals Service can be found at http://www.usmarshals.gov.

Four Individuals Convicted of Stealing Interstate Shipment from Railcar

ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that Richard E. Riedman, 39, of Webster, New York; Anthony Toscano, 47, of Rochester, New York; Anthony J. Russell, 39, of Rochester, New York; and Timothy M. Stone, 32, of Chili, New York, were convicted after a jury trial of conspiracy to steal an interstate shipment and theft of an interstate shipment. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000 when the defendants are sentenced by U.S. District Judge Charles J. Siragusa who presided over the trial.

Assistant U.S. Attorney Brett A. Harvey handled the prosecution of the case. As shown by the evidence at the trial, on June 30, 2009, the defendants stole more than 16 gross tons of scrap steel from a railcar at a CSX Transportation rail yard in Batavia, New York. A logging truck was used by the defendants to remove 17 gross-ton bales of processed scrap steel from the railcar. The defendants were apprehended by members of the Genesee County Sheriff’s Office in the logging truck and a pick-up truck as they left the scene of the theft in the early morning hours of June 30. The bales were in the process of being shipped to a steel mill in Pennsylvania when stolen by the defendants.

Previously, Christopher Monfort was convicted of federal charges in connection with the same case and is awaiting sentencing.

The conviction was the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Christopher M. Piehota, and the Genesee County Sheriff’s Office, under the direction of Gary Maha.

All defendants are scheduled to be sentenced in January before Judge Charles J. Siragusa.

Former Clinic Staffers Convicted in Health Care Fraud Conspiracy

MCALLEN, TX—Eliza Lozano Lumbreras, 65, and San Juanita Gallegos Lozano, 56, both of Mission, have entered pleas of guilty to conspiracy to commit health care fraud arising from a scheme to defraud Medicare and Medicaid in the operation of the Mission Clinic and La Hacienda Family Clinic, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott. The pair, who are related by marriage, both pleaded guilty today at the start of the seventh day of trial in McAllen.

Although the government had not concluded its case, six days of testimony had been presented showing Lumbreras and Lozano conspired together and with others to submit claims to Medicare and Medicaid. Evidence proved they fraudulently used the Medicaid provider number of a medical doctor who for years before his death, was unable to practice medicine. Treating doctors provided testimony that the doctor suffered from Parkinson’s disease and associated dementia and had been mentally incompetent to practice medicine since September 2001.

Jurors heard testimony that although the doctor was physically and mentally unable to practice medicine, Lumbreras and Lozano kept the Mission Clinic open for patient care. Lumbreras and Lozano took the doctor to the Mission Clinic and placed him in an office while Lumbreras saw and treated patients. Neither Lumbreras nor Lozano was licensed to provide any medical services. The government’s evidence showed that between September 2001 and January 2006, Lumbreras and Lozano submitted bills to the Medicare and Medicaid programs which fraudulently claimed the doctor had provided patients with more than 13,000 medical benefits, items, or services when, in fact, those services had been provided by Lumbreras or not at all. As a result, Medicare and Medicaid paid more than $344,000 on those claims.

Beginning in April 2005, Lumbreras and Lozano also arranged for Manual Puig, a physician assistant, to operate La Hacienda Family Clinic in Alton and to send bills to Medicare and Medicaid using the provider number of that same unpracticing doctor. By state law, as a physician assistant, Puig was required to have a licensed physician supervising his work and delegating responsibilities to him.

Further, Lumbreras had access to the doctor’s bank accounts and was able to obtain control over the money Medicare and Medicaid paid for the fraudulent bills submitted from the Mission and La Hacienda clinics, which was divided among Lumbreras, Lozano, their families, Puig, and Puig’s wife Romelia Puig.

Romelia Puig, 44, and Manuel Anthony Puig, 45, both of Edinburg, pleaded guilty in advance of trial and are awaiting sentencing. All defendants remain free on bond. Sentencing for Lumbreras and Lozano is scheduled for December 28, 2012.

La Hacienda Family Clinic and Mission Clinic are no longer in operation.

Conspiracy to commit health care fraud carries a maximum punishment of 10 years’ imprisonment and a maximum fine of $250,000.

The investigation leading to the charges was conducted by the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit with the assistance and cooperation of the Mission Police Department. Assistant United States Attorney Casey N. MacDonald and Special Assistant United States Attorney Rex G. Beasley are prosecuting the case.

Jeri Lynn Milheim Sentenced in U.S. District Court

The United States Attorney’s Office announced that during a federal court session in Billings on August 30, 2012, before Chief U.S. District Judge Richard F. Cebull, Jeri Lynn Milheim, a 32-year-old resident of Billings, appeared for sentencing. Milheim was sentenced to a term of:

■Prison: 70 months

■Special assessment: $200

■Restitution: $1,934

■Supervised release: four years

Milheim was sentenced in connection with her guilty plea to conspiracy to possess methamphetamine with intent to distribute and uttering counterfeit obligations.

In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:

Between February 12, 2011 and May 16, 2011, a total of $2,637 in counterfeit Federal Reserve Notes were passed and/or seized ($1,590 passed, $1,047 seized) in and around Billings, Montana. The Federal Reserve Notes passed from February to May 2011 involved 10 different serial numbers on the counterfeit money, in denominations of $1, $5, $20, and $100 bills.

During its investigation, law enforcement learned that two individuals linked to Milheim were responsible for manufacturing the counterfeit money that was passed in Billings from February to May 2011. Additionally, law enforcement learned that Milheim was present when counterfeit Federal Reserve Notes were manufactured by others during a stay at a Billings motel in mid-February 2011. The cleaning staff at the motel confirmed for law enforcement that a printer/scanner was found in a room in February, along with a page of uncut counterfeit Federal Reserve Notes.

On February 22, 2011, Milheim sent a Western Union from Billings, Montana to Las Vegas, Nevada. Milheim presented $340 in counterfeit $20 bills to Western Union to pay for the wire. Each of the $20 bills presented to Western Union were counterfeit Federal Reserve Notes. Four of the counterfeit Federal Reserve Notes presented to Western Union were marked with Serial No. II08725279A. Milheim knew the bills she presented were counterfeit.

During the same period of time Milheim was involved with counterfeiting, summer of 2009 to spring of 2011, she was also obtaining methamphetamine from a source of supply in Las Vegas. The investigation discovered that Milheim personally transported quantities of methamphetamine for redistribution in Yellowstone County from Las Vegas, Nevada, in vehicles and on her person. Once the methamphetamine was transported to Billings, Montana, Milheim conspired with others in Yellowstone County to redistribute the methamphetamine. The investigation uncovered that from the summer of 2009 to the spring of 2011, Milheim conspired with others to redistribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine.

Because there is no parole in the federal system, the “truth in sentencing” guidelines mandate that Milheim will likely serve all of the time imposed by the court. In the federal system, Milheim does have the opportunity to earn a sentence reduction for “good behavior.” However, this reduction will not exceed 15 percent of the overall sentence.

The investigation was conducted by a cooperative effort between the United States Secret Service, the Federal Bureau of Investigation, Billings High Intensity Drug Trafficking Area (HIDTA) Task Force, Billings Big Sky Safe Streets Task Force, and U.S. Department of Homeland Security-Homeland Security Investigations.

Petersburg Man Indicted for Impersonating CIA Officer, Directing Attempted Robberies of Three Banks

ALEXANDRIA, VA—Joshua Brady, 28, of Petersburg, Virginia, was indicted by a federal grand jury yesterday, accused of masquerading as a Central Intelligence Agency (CIA) officer and using that role to recruit others to rob banks.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Earl C. Cook, Chief of Alexandria Police; Colonel David Rohrer, Fairfax County Chief of Police; and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the indictment was publicly filed today.

Brady was indicted on September 27, 2012, on one count of false impersonation of a government official and three counts of attempted bank robbery. He faces a maximum penalty of 20 years in prison for each count, if convicted.

According to the indictment, Brady allegedly pretended to be an officer and employee of the CIA and solicited others to rob banks on behalf of the United States government. In June 2012, he is alleged to have directed the attempted robbery of a bank located in Fairfax County and two banks located in the city of Alexandria.

This case was investigated by Alexandria and Fairfax County Police Departments and the FBI’s Washington Field Office, with assistance from the FBI’s Richmond Field Office. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.

Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.