Houston Federal Jury Convicts Patient Recruiter of Medicare Fraud Involving Claims of Hurricane Damage to Power Wheelchairs

To Date, Six Individuals Guilty of Federal Crimes for Roles in Scheme

WASHINGTON—Marion Beverly Metoyer, a patient recruiter for a Houston durable medical equipment (DME) company, was convicted today by a Houston federal jury of health care fraud related to a power wheelchair fraud scheme, the Departments of Justice, Health and Human Services (HHS) and the FBI announced.

After a four-day trial, Metoyer, 57, of Dayton, Texas, was convicted on one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiring to receive illegal kickbacks for referring Medicare beneficiaries, and two counts of receiving illegal kickbacks for referring Medicare beneficiaries.

According to evidence presented at trial, Helen Etinfoh was the owner and operator of Luant & Odera Inc., a Houston-area DME company doing business as Tonni Medical Equipment & Supplies. Metoyer was a recruiter for Luant who was paid kickbacks in exchange for providing the company with beneficiaries in whose names bills could be submitted to Medicare. Etinfoh and other co-conspirators submitted false and fraudulent claims to Medicare for medically unnecessary DME, including power wheelchairs, wheelchair accessories, and motorized scooters.

Evidence at trial showed that based on representations from Metoyer and other recruiters, Luant would bill Medicare under a special code that designated the power wheelchairs as replacements for wheelchairs lost during hurricanes that hit the Houston area in fall 2008. In fact, the hurricanes did not damage the wheelchairs. Certain beneficiaries testified that they did not even have a power wheelchair before receiving the ones provided to them by Luant. Luant used the hurricane code because it allowed the company to submit claims to Medicare without a doctor’s order.

At trial, beneficiaries in whose names claims were submitted to Medicare testified that recruiters whom they had never met, including Metoyer, came to their homes and offered them free power wheelchairs in exchange for their Medicare information. The power wheelchairs were often billed to Medicare at more than $6,000 per chair.

Etinfoh was previously convicted by a federal jury of health care fraud in April 2010, and was sentenced to 41 months in prison. Paula Whitfield, a patient recruiter for Luant, was also convicted by a federal jury in April 2010, and was sentenced to 21 months in prison. Melvin Barnes, Johnnie Lee Andrews, and Monica Rene Perry, each a patient recruiter for Luant, pleaded guilty to conspiracy to commit health care fraud and await sentencing.

At sentencing, Metoyer faces maximum penalties of 10 years in prison for the health care fraud conspiracy; 10 years in prison for committing health care fraud; five years in prison for conspiring to receive illegal kickbacks for referring Medicare beneficiaries; and five years in prison for receiving an illegal kickback for referring a Medicare beneficiary. A sentencing date has not been set.

Today’s guilty jury verdict was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney José Angel Moreno of the Southern District of Texas; Acting Special Agent in Charge Russell D. Robinson of the FBI’s Houston Field Office; Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG), Office of Investigations; and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).

The case was tried by Trial Attorney Laura Cordova and Assistant Chief Sam S. Sheldon of the Criminal Division’s Fraud Section. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.

Since their inception in March 2007, strike force operations in nine locations have obtained indictments of 1,000 individuals who collectively have falsely billed the Medicare program for more than $2.3 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 stopmedicarefraud.gov.

Jury Convicts Mark St. Pierre on All 53 Corruption Counts

NEW ORLEANS, LA—MARK ST. PIERRE, age 47, a resident of Belle Chasse, was convicted today on all counts of a 53-count indictment charging him with conspiracy, wire fraud, bribery concerning programs receiving federal funds, and money laundering, announced U.S. Attorney Jim Letten and FBI Special Agent in Charge David Welker.

Based on the evidence introduced at trial, the jury specifically found that ST. PIERRE committed conspiracy, honest services wire fraud, bribery, and money laundering in connection with his bribery and kickback scheme involving two City of New Orleans public officials, Gregory Meffert and Anthony Jones. Both Meffert and Jones were chief technology officers for the City of New Orleans spanning 2002 - 2008 under then-mayor C. Ray Nagin.

Today’s superseding indictment maintains the charges from the previous indictments against MARK ST. PIERRE and also includes new charges addressing the criminal conduct where MARK ST. PIERRE allegedly bribed former City of New Orleans official Anthony Jones. Specifically, today’s indictment includes 10 additional substantive counts which charge MARK ST. PIERRE with bribing Anthony Jones from May, 2006 to February, 2007. Finally, the new indictment also includes additional overt acts of the criminal conspiracy undertaken by MARK ST. PIERRE.

Speaking to today’s conviction, U.S. Attorney Jim Letten stated: “Mark St. Pierre bought his way into New Orleans City Hall with money, yachts, dancers, parties, credit cards, and more. For his ultimate greed, avarice, and arrogance, he will now pay a high price to the citizens he stole from. Today’s verdict is extraordinarily important because through the outstanding work of the investigation and prosecution team, the citizens of this city and the region were permitted to see the ugly workings of a scheme by a businessman to corruptly buy wealth, power, and influence through equally corrupt high government officials. It is also important, because it sends a clear and unmistakable message to those corrupt business people out there who would attempt to similarly purchase influence corruptly, that no government is for sale in the Eastern District of Louisiana. This investigation continues.”

Special Agent in Charge David Welker, FBI, stated: “The only things needed for public corruption to flourish are greed and opportunity and an apathetic public. This verdict sends a clear message that it is no longer business as usual in the City of New Orleans. The public has spoken in the form of the jury—corruption will no longer be tolerated!”

James C. Lee, Special Agent in Charge of Internal Revenue Service Criminal Investigation, New Orleans Field Office, added: “We are pleased with today’s verdict. The Internal Revenue Service Criminal Investigation will continue to aggressively work with the United States Attorney’s Office, the FBI, and our other law enforcement partners to identify and prosecute those individuals who violate the public trust through investigations that ultimately lead to violations of the tax or money laundering statutes.”

The U.S. Attorney expressed his deepest gratitude to the Assistant U.S. Attorneys and the U.S. Attorney’s Office support personnel; to the men and women of the FBI and IRS Criminal Investigations Division; and to Inspector General Ed Quatrevaux and his investigators who worked seamlessly together for untold hours to uncover evidence of the intricate relationships and transactions of this critical case.

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation Division, and the New Orleans Inspector General’s Office. The case is being prosecuted by Assistant U.S. Attorneys Matthew Coman, Richard Pickens, Jon Maestri, and Matthew Chester.

Hayward Woman Charged with Misappropriating Veteran's Benefits

Karen C. Demain, 43, Hayward, Wis., is charged with misappropriating money coming into her control while serving as a Department of Veterans Affairs fiduciary for a military veteran beneficiary. The indictment alleges that she misappropriated such money from June 2006 to August 2009.

If convicted, Demain faces a maximum penalty of five years in federal prison. The charges against her are the result of an investigation by the Department of Veterans Affairs, Office of Inspector General. The prosecution of this case has been assigned to Assistant U.S. Attorney Robert A. Anderson.

Seeking Information on Westminster Bank Robbery

The Westminster Police Department and the FBI Rocky Mountain Safe Streets Task Force (RMSSTF) are investigating a bank robbery.

Premier Credit Union

8440 Federal Boulevard

Westminster, Colorado

05/24/2011, 9:15 a.m.

The suspect is described as a black male, 25 to 30 years of age, approximately 6’2” to 6’3” in height, approximately 160 to 180 pounds, with a thin mustache.

The suspect presented a demand note for money and then fled from the bank.

Bank robbery is punishable by a 20-year prison sentence for each offense and increases if a dangerous weapon is used in the commission of the crime.

The FBI continues to provide financial institutions with the best practices for security to make them less vulnerable to robberies.

If anyone has any information on the bank robbery above, or any bank robbery, please call the FBI Rocky Mountain Safe Streets Task Force at 303-629-7171; or, you can remain anonymous and earn up to two thousand dollars ($2,000) by calling CRIMESTOPPERS at 720-913-STOP (7867).

EVA AIRWAYS CORPORATION AGREES TO PLEAD GUILTY AND TO PAY $13.2 MILLION FINE FOR PRICE FIXING ON AIR CARGO SHIPMENTS

WASHINGTON — EVA Airways Corporation has agreed to plead guilty and to pay a $13.2 million criminal fine for its role in a conspiracy to fix prices in the air cargo industry, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the District of Columbia, Taiwan-based EVA participated in a conspiracy to fix particular cargo base rates or fees charged to customers for certain international air shipments, including to and from the United States from at least as early as January 2003 until at least Feb. 14, 2006. Under the plea agreement, which is subject to court approval, EVA has agreed to cooperate with the department's antitrust investigation.

As a result of the department's investigation into price fixing in the air transportation industry, including EVA, a total of 22 airlines and 21 executives have been charged. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against the remaining executives.

EVA transports a variety of cargo shipments, including sensitive equipment used to manufacture liquid crystal display (LCD) panels, perishable commodities such as cherries and pet food, and consumer goods, on scheduled flights within Taiwan and internationally, including to and from the United States.

According to the charges, EVA and co-conspirators carried out the conspiracy by agreeing during meetings, conversations and other communications on particular cargo base rates or fees to be charged for certain international air shipments. As part of the conspiracy, the department said that EVA and co-conspirators levied cargo rates in accordance with the agreements reached, and monitored and enforced adherence to the agreed-upon cargo rates.

EVA is charged with price fixing in violation of the Sherman Act, which carries a maximum fine for corporations of $100 million. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today's charge is the result of a joint investigation into the air transportation industry being conducted by the Antitrust Division's National Criminal Enforcement Section, the FBI's Washington Field Office, the Department of Transportation's Office of Inspector General and the U.S. Postal Service's Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the air transportation industry is urged to call the Antitrust Division's National Criminal Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.htm or call the FBI's Washington Field Office at 202-278-2000.

Two Plead Guilty to Bank Robbery

HOUSTON—Two Houston men accused of robbing several area banks through the use of force and intimidation been convicted of bank robbery after pleading guilty, United States Attorney José Angel Moreno announced today.

Terrance Posey, 27, and Artee Clark, 44, each pleaded guilty to bank robbery this afternoon before U.S. District Judge Lee H. Rosenthal. Both men were indicted in January 2011 by a Houston federal grand jury. Posey was charged with and today pleaded guilty to the robbery of the Bank of American located on the 3900 block of Richmond Ave. in Houston on Oct. 4, 2010. The same indictment charged Clark with the robbery of the same Bank of America branch as Posey and three additional banks—Chase Bank located on the 10400 block of Westheimer on Sept. 8, 2010; Bank of America located on the 7500 block of Fondren on Sept. 15, 2010; and Capital One Bank located on the 11400 block of Gulf Freeway on Sept. 28, 2010. Today, Clark pleaded guilty to robbing all four banks as charged.

The arrests of Clark and Posey are the result of an intensive robbery investigation conducted jointly by the FBI and Houston Police Department (HPD) Bank Robbery Task Force initiated in the early fall of 2010. The investigation uncovered a scheme where individuals where robbing banks in Southwest Houston by presenting threatening notes to bank tellers demanding money. Clark was apprehended after he was observed by a bank security guard exhibiting suspicious behavior as he was leaving the Chase Bank located on the 9700 block of Bellaire Blvd. in Houston. A bank teller thereafter told the security guard the bank had just been robbed. HPD apprehended Clark at the scene. Posey was subsequently arrested for his involvement as a lookout and getaway driver for this robbery. Eyewitness identifications and surveillance evidence connected Clark to the robbery of three additional banks. The crime spree resulted in more than $60,000 in losses to area banks.

In federal custody without bond since their arrest on the federal charges, Posey and Clark will remain in custody pending sentencing. Judge Rosenthal has set sentencing for both men for Sept. 28, 2011. Each faces a maximum statutory penalty of up to 20 years’ imprisonment without parole and a maximum fine of $250,000. A third defendant charged in this case, George Winters, 36, pleaded guilty on May 9, 2011, to the Sept. 8, 2010 robbery of the Chase Bank located on the 10400 block of Westheimer. He, too, remains in federal custody without bond pending his sentencing set for Sept. 8, 2011. Assistant U.S. Attorneys Suzanne Elmilady and Craig Feazel are prosecuting the case on behalf of the United States.

Kootenai Tribe Member Indicted

Twyla Dawn Basil, 32, was arraigned today in U.S. District Court in Coeur d'Alene for misprision of a felony, the U.S. Attorney’s Office announced. Basil was indicted by a federal grand jury on May 17.

The indictment alleges that Basil concealed from authorities her knowledge of a burglary that had occurred on or around December 23, 2010, on the Kootenai Indian Reservation.

A jury trial is set for July 12, 2011, before U.S. District Judge Edward J. Lodge at the U.S. Courthouse in Coeur d'Alene.

The case was investigated by the Bonner County Sheriff’s Office and the Federal Bureau of Investigation.

An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

New Haven Woman Sentenced to 30 Months in Federal Prison for Bank Robbery

David B. Fein, United States Attorney for the District of Connecticut, announced that MARTA LOZADA, 43, of New Haven, was sentenced today by United States District Judge Janet C. Hall in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for bank robbery. Judge Hall also ordered that LOZADA must reside in community confinement (halfway house) during the first six months of her term of supervised release.

According to court documents and statements made in court, on February 4, 2010, LOZADA robbed a Bank of America branch located at 100 Amity Road in New Haven of approximately $4,858.

This case was investigated by the New Haven Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Edward Chang and Calvin Kurimai, with the assistance of law student intern Alexandra Bonneau.

New Jersey U.S. Attorney Highlights His Office's Commitment to Combating the Exploitation of Children

NEWARK, NJ—New Jersey U.S. Attorney Paul J. Fishman today reiterated his office’s commitment to protect children and prosecute those who do them harm. The U.S. Attorney’s Office for the District of New Jersey is a leader in the prosecution of child exploitation cases, building cases not only against offenders within the District, but also initiating prosecutions that have nationwide and international reach.

On May 19, 2011, Attorney General Eric Holder spoke at the Department of Justice’s first-ever National Strategy for Child Exploitation Prevention Conference in San Jose, Calif. The conference united law enforcement officials, advocates, investigators and prosecutors in the shared mission of keeping children out of harm’s way. Attorney General Holder said, “By bringing together so many law enforcement officials, advocates, investigators, and prosecutors—we are signaling that, when it comes to keeping our children from harm, a new era of collaboration has begun,” and noted that in recent years, a record number of offenders have been brought to justice.

U.S. Attorney Fishman stated: “Today, National Missing Children’s Day, provides an opportunity for reflection on the importance of protecting our children from predators. Child pornography isn’t entertainment—it is a permanent recording of the sexual abuse of children that re-injures its victims every time it is downloaded or watched. That anyone would prey on children in this way is appalling. Yet, these crimes are on the rise as modern technology affords easier access to children and communication among like-minded offenders. We have made a promise to criminals and concerned citizens: no matter how determined perpetrators are to abuse children, we are more determined to stop them.”

In pursuit of these cases, both within and outside of New Jersey, the office has worked closely with the FBI; the Department of Homeland Security’s Immigration and Customs Enforcement - Homeland Security Investigations (ICE HSI); the United States Postal Inspection Service, and the United States Secret Service. In just this calendar year to date, those collaborative efforts have yielded significant results, some of which are summarized below. In addition to these joint initiatives, the office is pursuing public awareness and community outreach efforts in a comprehensive approach.

Former Manassas School Teacher Sentenced to 25 Years for Producing Child Pornography

ALEXANDRIA, VA—Kevin Garfield Ricks, 51, of Federalsburg, Md., was sentenced today to 300 months in prison, followed by a lifetime of supervised release, for producing and possessing child pornography over a 17-year period.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; and Douglas W. Keen, Manassas City Chief of Police, made the announcement after the plea was accepted by United States District Judge James C. Cacheris.

“In his journals, Kevin Ricks calls himself the devil, a molester so depraved that he is beyond rehabilitation and said that his soul was corrupt,” said U.S. Attorney MacBride. “Mr. Ricks was every parent’s worst nightmare: a master manipulator child predator who sexually abused while leading a double life as a beloved teacher and counselor more than three decades. There is no question that his pattern of abuse would have continued if it weren’t for the heroic intervention of a concerned parent and the tremendous efforts of the Manassas City Police Department and the FBI in bringing him to justice.”

“Though we are pleased with this sentence, hindsight shows this case is like many others and involves a sad pattern of victims skillfully manipulated by a predator,” said FBI ADIC McJunkin. “We urge parents and others to be more vigilant in protecting our most innocent of citizens, our children. It’s easy sometimes not to hear or believe our children because their statements are too vague or too few. We in the law enforcement community commit to work harder, better and faster to protect those who cannot protect themselves.”

“The initial investigation and arrest of Mr. Ricks by Manassas City Police uncovered evidence that led to identification of additional victims nationally and internationally,” said Chief Keen. “With the cooperation of the FBI, U.S. Attorney’s Office, and the Manassas City Police Department, a joint investigation was opened and we were able to take a career child predator off the street and help prevent other innocent lives from being taken advantage of.”

On March 3, 2011, Ricks pled guilty to six counts of production of child pornography and one count of possession of child pornography. As part of the plea agreement, four other federal jurisdictions have relinquished jurisdiction over their child pornography offenses, which occurred between 1994 and 2010.

According to court records, Ricks engaged in illegal sexual contact with minor boys dating back more than three decades. As a junior camp counselor at Camp Holiday Trails near Charlottesville, Va., in 1979, Ricks took an 11-year-old camper to a home in Roanoke Rapids, N.C., over part of the summer and performed sexual acts on the victim. In 1981, while attending college at the University of North Carolina, Ricks befriended a 12-year-old boy and performed sexual acts on the young boy at another home near Conway, N.C.

In 1988, Ricks moved to Japan to teach English. Ricks admitted that, while in Japan, he used large quantities of tequila to get victims drunk. After they passed out, he would photograph or film himself performing sexually explicit conduct with the victims. One of the victims accompanied Ricks on a trip to the United States during which Ricks got the victim drunk in a San Francisco hotel room and filmed himself performing sexually explicit conduct with the victim. The victims in Japan ranged in age from 15 to 17 years old and were students of Ricks.

After leaving Japan in 1995, Ricks moved to Danville, Va. Ricks began hosting male foreign exchange students for several student exchange programs and working in local schools teaching English. In 1997 and 1999, Ricks filmed and photographed himself engaging in sexually explicit conduct with two different 17-year-old exchange students after getting them drunk and having them pass out. The conduct occurred in Danville as well as on a road trip in a hotel in Nevada.

In 2001, Ricks moved to Federalsburg, Md., where he continued to host exchange students and teach English at local schools. In 2004, Ricks filmed and photographed himself engaging in sexually explicit conduct with another 17-year-old exchange student after getting the boy drunk on tequila to the point that the boy passed out.

In 2007, Ricks began teaching in Manassas, Va., during the week and spending the weekends in Federalsburg, Md. In December 2009, Ricks engaged in sexually explicit conduct with a 16-year-old former student after getting the boy drunk with beer and approximately 10 shots of tequila. Ricks was arrested Feb. 18, 2010 by the Manassas City Police and pled guilty to state charges of indecent liberties, for which he received a sentence of five years with four suspended.

This case was investigated by the FBI’s Washington Field Office and Manassas City Police Department. Assistant United States Attorneys John Eisinger and Jerry Smagala are prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://plcl.uscourts.gov.

Former Detroit Public Schools Bookkeeper Pleads Guilty to Federal Program Fraud

Allen Swayze, 34, of Detroit, a former Detroit Public Schools (“DPS”) bookkeeper, pleaded guilty today to embezzling over $148,000 from the Breithaupt Career and Technical Center, the DPS school where he was employed.

United State Attorney Barbara L. McQuade was joined in this announcement by Andrew G. Arena, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Defendant Swayze admitted in court today that between August, 2006 and May, 2009, he wrote fraudulent and unauthorized checks drawn on Breithaupt bank accounts in the amount of $148,772.86 to himself and then deposited them in his bank accounts.

Under the terms of the agreement, Swayze faces a maximum penalty of 18 months and a $250,000 fine. He must also pay DPS restitution in the amount of $148,772.86. Sentencing has been set for August 23, 2011 at 10:30 a.m.

United State Attorney Barbara L. McQuade said, “We hope that this case will deter others from stealing money intended to benefit our school children. Officials who steal school funds will be caught and brought to justice.”

Special Agent Andrew G. Arena, stated, “Public schools are one of the largest recipients of federal funding. The FBI continues to aggressively investigate individuals who steal funds originally designated for the Detroit Public Schools and the children of the City of Detroit.”

The investigation of this case was conducted by the Federal Bureau of Investigation and the DPS Office of Inspector General and prosecuted by Assistant United States Attorney Pamela Thompson.

CBP Officers in Southern California Stop Smuggling Attempt Of More Than 500 Pounds Of Marijuana

Otay Mesa, Calif. — U.S. Customs and Border Protection officers at the Otay Mesa cargo facility Friday seized more than 500 pounds of marijuana hidden in a shipment of ceramic tiles.

At about 1:00 p.m. on Friday, May 20, a driver with a shipment of ceramic tiles arrived at the Otay Mesa cargo facility and the CBP officer referred the driver, truck and shipment for a more intensive inspection.

While screening the truck with an imaging device, similar to an x-ray, CBP officers noticed anomalies with the shipment.

The cargo was unloaded onto the dock, and screened by a CBP officer with a human/narcotic detector dog. The canine alerted to the boxes of ceramic tiles.

CBP officers found 56 packages hidden inside the ceramic tile shipment, with a total weight of about 530 pounds, worth an estimated $318,000.

The driver, a 31-year-old male Mexican citizen, was arrested, turned over to U.S. Immigration and Customs Enforcement agents, and booked into the Metropolitan Correctional Center.

CBP seized the truck, shipment and narcotics.

The U.S. Attorney’s Office in San Diego accepted the case for prosecution.

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

East St. Louis Man Pleads Guilty to Firearm Offenses

An East St. Louis man pled guilty on May 25, 2011, to a two-count indictment charging, in count one, the unlawful possession of a firearm by an unlawful user of a controlled substance, and, in count two, possession of an unregistered firearm, namely a sawed-off shotgun, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.

Louis Johnson, 70, East St. Louis, Illinois, faces a term of imprisonment of not more than 10 years’ imprisonment, a $250,000 fine, or both, and a term of supervised release of not more than three years on each count. A total of four guns that Johnson illegally possessed will be forfeited as a result of his conviction. Sentencing is scheduled for September 2, 2011, in East St. Louis, Illinois.

The violations occurred on March 5, 2010, when members of a WAVE Detail asked Johnson for consent to search his home after receiving an anonymous tip that the resident might be selling drugs from the home. Johnson voluntarily consented to a search. During the search, officers recovered a stolen handgun, two rifles, and a sawed-off shotgun. Officers also recovered marihuana, 10 Oxycontin pills, and assorted drug paraphernalia from the residence. In a voluntary, videotaped statement, the Johnson admitted possession of all of the recovered firearms and he admitted being a habitual user of crack cocaine and marihuana while the officers were collecting his personal history.

The case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. WAVE was formed in November 2009, and is a collaboration of law enforcement officers from the Illinois State Police, the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI), the St. Clair County Sheriff’s Department, the East St. Louis Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshals Service. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence. The case is assigned to Assistant United States Attorney Angela Scott.

Seattle Businessman Sentenced to 13 Years in Prison for Mail Fraud and Tax Evasion

Used False Financial Statements on Oil Exploration and Development to Fleece Investors

ROBERT MIRACLE, 50, of Bellevue, Washington, was sentenced today in U.S. District Court in Seattle to 13 years in prison and three years of supervised release for mail fraud and tax evasion. The amount of restitution MIRACLE owes will be determined at a hearing July 25, 2011. MIRACLE and two Malaysian nationals, Mukhtar Kechik and Fahimi Fisal, were charged in February 2009, in a 23-count indictment charging conspiracy, mail fraud, wire fraud, money laundering, and tax evasion on a $65 million Ponzi scheme. At the sentencing hearing U.S. District Judge James L. Robart said the investments “were triggered by outright misrepresentations.... and ruined people’s lives.”

MIRACLE operated a variety of companies allegedly involved in oil development in Indonesia. MIRACLE sold shares in the companies with these names: Laramie Petroleum, Inc. ("Laramie"); MCube Petroleum, Inc. ("MCube"); Diski Limited Liability Company ("Diski LLC"); Basilam Limited Liability Company ("Basilam LLC"); and Halmahera-Rembang Limited Liability Company ("Hal-Rem LLC"). MIRACLE and his co-defendants represented to investors that various companies were making money from oil field development and services on oil and gas fields in Indonesia. In fact, the proceeds of later investors were used to pay off the investments of earlier investors in the form of a “ponzi” scheme. Between September 2004 and October 2007, MIRACLE took in more than $65.3 million and paid out $36.7 million as dividends to investors. The bulk of the remaining funds were used to develop oil and gas fields in Indonesia, as well as to pay for a lavish lifestyle for MIRACLE. In pleading guilty MIRACLE admits that he used the mail to send investors fraudulent statements, certificates and to send and receive funds involved in the scheme.

In his plea agreement, MIRACLE admitted he owes the U.S. Treasury $326,650 in back taxes from 2003-2005. MIRACLE admitted that in 2005, he transferred more than $500,000 from the company accounts to his personal bank accounts for his own use. MIRACLE claimed these transfers were “loans,” and claimed his actual income for the year was only $32,000. MIRACLE under reported his income by some $530,000, avoiding taxes of nearly $150,000.

In his plea agreement, MIRACLE agreed to pay restitution to the investors as well as to the United States for back taxes. MIRACLE agreed to forfeit a two-carat diamond ring MIRACLE purchased for more than $38,000 and a painting purchased in Italy for $27,000.

MIRACLE was initially released pending trial, but was taken into custody in late May 2009, when he failed to comply with the conditions of his release. MIRACLE remains in custody at the Federal Detention Center at SeaTac, Washington. Mukhtar Kechik and Fahimi Fisal remain fugitives who have yet to appear for arraignment on the indictment.

The case was investigated by the FBI, the Internal Revenue Service Criminal Investigation (IRS-CI), and the Washington State Department of Financial Institutions (DFI).

The case is being prosecuted by Assistant United States Attorneys Andrew Friedman and Carl Blackstone.

For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney’s Office, at (206) 553-4110 or Emily.Langlie@USDOJ.Gov.

ICE puts the summer heat on counterfeiters

WASHINGTON – As the summer months begin in the United States, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) is keeping the heat on counterfeiters by seizing domain names of websites used to sell counterfeit goods and illegally distribute copyrighted materials. This operation marks the fifth phase of "Operation In Our Sites," a sustained law enforcement initiative aimed at counterfeiting and piracy over the Internet.

The websites seized during this phase of "Operation In Our Sites" include:

•Mygolfaccessory.com

•Freshkicks4u.com

•Freshcaps4u.com

•Watchnewfilms.com

•Re1ease.net

During the course of the operation, ICE HSI agents investigated websites suspected of selling counterfeit goods and illegally distributing copyrighted material in the United States. Once the materials were confirmed as counterfeit or otherwise illegal, seizure orders for the domain names of the websites that sold or distributed the items were obtained from federal magistrate judges. Individuals accessing the websites will now find a banner notifying them that the domain name of that website has been seized by federal authorities.

"American business is threatened by those who produce counterfeit trademarked goods and pirate copyrighted materials," said ICE Director John Morton. "From counterfeit pharmaceuticals and electronics to pirated movies, music, and software, IP thieves undermine the U.S. economy and jeopardize public safety. That is why the Operation In Our Sites initiative will continue through 2011 and beyond. Our efforts through this operation successfully disrupt the ability of criminals to purvey counterfeit goods and copyrighted materials illegally over the Internet."

This nationwide operation was spearheaded by the ICE HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in coordination with U.S. Attorneys' Offices for the Northern District of California, Southern District of Texas, and Western District of Washington and HSI offices in Houston, San Francisco and Seattle.

In June 2010, ICE HSI and the IPR Center began "Operation In Our Sites." Since the launch of this operation, ICE HSI and the IPR Center have seized a total of 125 domain names and redirected those domain names to a seizure banner. Seventy-six of the 125 domain names seized have now been forfeited to the United States government. Through the forfeiture process, individuals who have an interest in the seized domain names are provided a period of time after the "Notice of Seizure" to file a petition with a federal court and additional time after the "Notice of Forfeiture" to contest the forfeiture. If no petitions or claims are filed, the domain names become property of the U.S. government.

Last month, the IPR Center launched a public service announcement (PSA) that appears on each of the 76 forfeited domain names. Since the launch of this PSA on ICE's YouTube page, this video has received nearly 100,000 individual views, educating the public about the economic impact of trademark counterfeiting and copyright infringement. The PSA on forfeited websites is a significant benefit of this enforcement operation in deterring future crimes and in raising awareness.

In December 2010, the New York City Mayor's Office of Media and Entertainment launched the PSA campaign entitled "Piracy Doesn't Work in NYC," which targets digital piracy. The goal of the campaign is to reinforce to the public that the jobs of New Yorkers who work in and support the creative industries in the city are threatened when digital entertainment such as books, movies and songs are illegally downloaded.

"A significant amount of the creative entertainment that gets produced each year is made in New York City whether it's books, music, films or television shows," said Katherine Oliver, commissioner of New York City Mayor's Office of Media and Entertainment. "The City is home to nearly 700,000 New Yorkers who make their living either working in or supporting those creative industries so when people illegally download their entertainment, lost revenue from those actions could mean lost jobs in the City."

Intellectual property rights violators unfairly devalue America's contributions, compromise American jobs, and put consumers, families, and communities at risk. They also protect the actor, director, writer, musician, artist, and countless others who labor in and around America's entertainment industry from having a movie, manuscript, song or design illegally sold by someone who had no part in the artistry of creating it. Intellectual property rights are intended to discourage thieves from selling cheap imitations of products that are often far less safe or reliable than the original products. More importantly, intellectual property rights protect public safety by preventing the proliferation of counterfeit pharmaceuticals and other materials that are potentially harmful.

It is estimated that intellectual property thefts costs American industry billions of dollars and hundreds of thousands of jobs every year. Additionally, "Operation In Our Sites" is also targeting counterfeit pharmaceuticals, software, electronics, games and other products that threaten public health and safety.

The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. The IPR Center is led by ICE HSI and includes partners from U.S. Customs and Border Protection; FBI; Food and Drug Administration, Office of Criminal Investigations; Postal Inspection Service; Department of Commerce, International Trade Administration; Patent and Trademark Office; Naval Criminal Investigative Service; Defense Criminal Investigative Service; Army Criminal Investigative Command, Major Procurement Fraud Unit; General Services Administration, Office of Inspector General; Consumer Product Safety Commission; Defense Logistics Agency, Office of the Inspector General; Air Force Office of Special Investigations; Department of State, Office of International Intellectual Property Enforcement; INTERPOL; Government of Mexico, Tax Administration Service; and Royal Canadian Mounted Police.

As a task force, the IPR Center uses the expertise of its member agencies to share information, develop initiatives, coordinate enforcement actions, and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.

To report IP theft, visit IPRCenter.gov.

Murder Imitates Art

In preparation to interview retired LAPD Homicide Detective Steven Hodel on American Heroes Radio (June 2, 1600 Hours Pacific), I read his book Black Dahlia Avenger: A Genius for Murder. Frankly, I started out a skeptic and not long into the book was intrigued and shortly became converted.

Steve Hodel raises the bar in the true crime genre. Generally, true crime books recap an investigation completed by the police. In this case, Hodel investigates the case and documents his journey for us to experience. His investigative work is solid, compelling and ultimately conclusive. His father, Dr. George Hodel, murdered Elizabeth Short, commonly known as the Black Dahlia.

As fascinating as the murder investigation is, Steve Hodel’s journey is as interesting. Why did he start this? How did he handle the ramifications? Simply, why did he keep going? How and why Hodel begins sets the stage and I am not going to ruin it for you. The beginning introduces a tension and suspense that pushes the book along.

It is a good read and Steven Hodel just an excellent job of bringing together a nearly overwhelming stream of often subtle clues. And, if you want to know how murder imitates art you’ll just have to read the book

Mission Man Pleads Guilty to Sexual Abuse

U.S. Attorney Brendan V. Johnson announced that Chester Dennis Marshall, a/k/a Dennis C. Marshall, age 45, of Mission, appeared before U.S. District Judge Roberto A. Lange on May 24, 2011, and pled guilty to count two of the indictment that charged him with sexual abuse. The maximum penalty upon conviction is any term of years or life imprisonment.

During the evening hours of September 10, 2010, and into the early morning hours of September 11, 2010, the victim was visiting at the home of her mother and Marshall. The victim had consumed alcohol and decided to spend the night. Early the next morning, the victim awoke with the defendant attempting to engage in a sexual act with her, while she was incapable of appraising the nature of the conduct and physically incapable of declining participation in and communicating unwillingness to engage in the sexual act.

The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Meghan N. Dilges.

A presentence investigation was ordered, and a sentencing date was set for August 15, 2011. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.

Eight Members of the Spirit Lake Tribe Indicted in Federal Court

GRAND FORKS—United States Attorney Timothy Q. Purdon announced today that eight members of the Spirit Lake Tribe have been indicted by a federal grand jury and charged with conspiracy to embezzle from an Indian tribal organization and aiding and abetting.

The indictment alleges that as part of the conspiracy, the defendants did willfully embezzle, steal, and misapply property, moneys, funds, and credits belonging to the Vocational Rehabilitation Program, a program administered by the Spirit Lake Tribe, Fort Totten, North Dakota.

The eight defendants—Martina Kazena, William Kazena, Raymond Jetty, III, Tanya Jetty, Shaela Jetty, Lorna Walking Eagle, Rochelle Walking Eagle, and Bruce Walking Eagle—made their initial appearances on May 7, 2011, before United States Magistrate Judge Alice R. Senechal in United States District Court in Grand Forks, ND.

The eight defendants appeared at various times for arraignment. Raymond and Tanya Jetty pleaded not guilty on May 7, 2011. Bruce Walking Eagle, Rochelle Walking Eagle, and Lorna Walking Eagle pleaded not guilty on May 16, 2011. William Kazena and Shaela Jetty pleaded not guilty on May 17, 2011, and Martina Kazena pleaded not guilty on May 24, 2011.

The statutory maximum sentence for conspiracy to embezzle from an Indian tribal organization is five years in prison and a $250,000 fine.

The case is being investigated by the Federal Bureau of Investigation.

Purdon stressed that an indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

A trial for all defendants is scheduled for July 12, 2011, in United States District Court in Grand Forks, North Dakota.

Assistant United States Attorney Janice M. Morley is prosecuting the cases.

North Carolina Pilot Indicted for Filing False Tax Returns and Obstructing the IRS

WASHINGTON – Charles Alexander Davis formerly of Mooresville, N.C., was indicted by a federal grand jury in Charlotte, N.C., on 10 counts of willfully filing materially false tax returns and one count of obstructing and impeding the Internal Revenue Service (IRS), the Department of Justice and the IRS announced.   The indictment was returned on May 19, 2011, and was unsealed today in U.S. District Court for the Western District of North Carolina.

According to the indictment, Davis’s employer, an international airline carrier, withheld little or no federal income tax from Davis’s wages for years 1997 through 2005 because Davis previously had falsely represented that he was exempt from income tax withholding.   The department said, in April 2006, Davis filed five fraudulent amended income tax returns for 1996 through 2000, falsely claiming that he earned little or no adjusted gross income in each of those years.  

The indictment further alleges that subsequently, from April 2008 to February 2009, Davis filed five fraudulent individual income tax returns for 2004 through 2008, reporting false amounts of federal income tax withheld for each of those years and requesting fraudulent refunds from the IRS in amounts up to approximately $1.5 million.   During IRS efforts to collect Davis’s tax debt, the indictment alleges, Davis obstructed and impeded the IRS in numerous ways, including submitting fraudulent payment documentation to the IRS and concealing his assets and income in a nominee bank account.  

Davis had his initial appearance on May 20, 2011, in Puerto Rico, where he was apprehended.  

If convicted, Davis faces a maximum potential sentence of 33 years in prison and a maximum fine of $2.75 million. An indictment is merely an allegation, and Davis is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.  

The case is being prosecuted by Assistant U.S. Attorney Jenny Grus Sugar and Tax Division Trial Attorney Kevin C. Lombardi.   The case was investigated by the IRS-Criminal Investigation Division.

More information about the Department of Justice’s Tax Division and its enforcement efforts can be found at www.usdoj.gov/tax.

Former White Mountain Apache Tribal Police Officer Charged with Civil Rights Violations

WASHINGTON—A federal grand jury in Phoenix returned a two-count indictment today charging former White Mountain Apache Tribal police officer Glenn Cromwell with federal crimes in connection with maliciously abandoning Anthony Archuleta and Barry Lowe in dangerously cold weather conditions in December 2008.

Today’s indictment was announced by Thomas E. Perez, Assistant Attorney General for the Civil Rights Division of the Department of Justice; Dennis K. Burke, U.S. Attorney for the District of Arizona; and Robert C. Rudge Jr., Acting Special Agent in Charge of the FBI Phoenix Field Office.

The indictment alleges that on Dec. 2, 2008, Cromwell transported a 29-year-old man who was in custody to a remote area, and then abandoned him in extreme cold weather conditions, resulting in bodily injury. The indictment also charges that on Dec. 6, 2008, Cromwell transported a 56-year-old man, who was also in custody, to a remote location, and then abandoned him in extreme cold weather conditions, resulting in bodily injury.

The indictment charges Cromwell with two counts of deprivation of civil rights. Cromwell faces a possible maximum sentence of 20 years in prison.

The ongoing case is being investigated by the Phoenix Field Office of the FBI and is being prosecuted by Trial Attorney D.W. Tunnage of the Justice Department’s Civil Rights Division, along with Assistant U.S. Attorney Alison S. Bachus for the District of Arizona.

An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.