Quantcast
Channel: Online Criminal Justice News
Viewing all 11362 articles
Browse latest View live
↧

Tampa Man Indicted For Multiple Bank Robberies

February 21, 2019, 1:29 pm
$
0
0

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Terrance Maurice Goss (32, Tampa) with four counts of bank robbery, two counts of attempted bank robbery, and one count of possessing a firearm as a convicted felon. Goss faces a maximum penalty of 20 years in federal prison on each of the robbery and attempted robbery charges, and up to 10 years’ imprisonment for the firearm offense. The indictment also notifies Goss that the United States intends to forfeit the $6,462 he stole from the banks, as well as the firearm he possessed.

According to the indictment, between January 11 and January 25, 2019, Goss robbed four banks. On January 11, 2019, he robbed the Wells Fargo Bank located at 2699 Gulf to Bay Boulevard in Clearwater. He robbed a second Wells Fargo Bank, located at 5250 East Bay Drive in Clearwater, on January 15, 2019. Two days later, he robbed the Centennial Bank on Fruitville Road in Sarasota). On January 25, 2019, Goss robbed a Wells Fargo Bank in Davenport. Additionally, Goss attempted to rob the TD Bank located at 6108 U.S. Highway 98 North in Lakeland on January 17, 2019, and the SunTrust Bank located at 1075 Carpenters Way in Lakeland on January 25, 2019.

Finally, the indictment charges that Goss, a previously convicted felon,  possessed a firearm on January 25, 2019.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the FBI, the Largo Police Department, the Clearwater Police Department, the Sarasota County Sheriff’s Office, the Polk County Sheriff’s Office, the Lakeland Police Department, the U.S. Marshals Service, and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Taylor G. Stout.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
↧
Search

Florida Man Sentenced To One Year In Prison For Insider Trading Scheme Based On Confidential Information Misappropriated From An Investment Bank

February 21, 2019, 1:35 pm
$
0
0

Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that ROBERTO RODRIGUEZ was sentenced today one year and one day in prison for his involvement in an insider trading scheme based on material, nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank.  RODRIGUEZ pled guilty on September 7, 2018, to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer before Magistrate Judge Henry B. Pitman.  His plea was thereafter accepted by U.S. District Judge Alison J. Nathan, who also imposed today’s sentence.

U.S. Attorney Geoffrey Berman said:  “Roberto Rodriguez reaped millions of dollars trading on confidential corporate information stolen by a longtime friend at an investment bank.  Our Office is committed to identifying and prosecuting insider trading networks that undermine our nation’s securities markets.”

According to the Indictment, other filings in Manhattan federal court, and statements made in court filings and proceedings:

In August 2017, RODRIGUEZ, Michael Siva, Rodolfo Sablon, Jhonatan Zoquier, and Jeffrey Rogiers were arrested and charged in a 54-count Indictment for their involvement in three overlapping insider trading schemes, generating more than $5 million in illicit profits, all stemming from information misappropriated by Rivas.  Prior to the unsealing of the Indictment last year, Rivas and an additional participant, James Moodhe, pled guilty and both have been cooperating with the Government in this investigation.  Since the unsealing of the Indictment, all of the charged defendants have pled guilty. 

The Investment Bank and Rivas

From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”).  In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material, nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank.  The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information.  Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information. 

Overview of Insider Trading Schemes

From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material, nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades.  On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities.  In total, the insider trading based on Inside Information misappropriated by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.   

The Rodriguez Tipping Chain

RODRIGUEZ was a member of the second of three tipping chains outlined in the Indictment.  In this tipping chain, Rivas passed inside information to RODRIGUEZ, a childhood friend of Rivas with whom Rodriguez had maintained a close relationship as adults, and Sablon.

Since 2014, RODRIGUEZ lived and worked in Miami, Florida, with Sablon, with whom he was also friends.  In 2015, RODRIGUEZ introduced Rivas to Sablon.  Rivas and Sablon then communicated with each other directly and developed an independent relationship.

In the fall of 2015, Rivas disclosed to RODRIGUEZ that Rivas had access to Inside Information by virtue of his position as a corporate insider at the Investment Bank.  At RODRIGUEZ’s request, Rivas also agreed to share Inside Information with Sablon.  While Rivas had originally agreed to divulge Inside Information to RODRIGUEZ because of their history of friendship, Rivas also learned that RODRIGUEZ and Sablon intended to start an investment fund with the proceeds of the insider trading scheme.  Rivas understood that in exchange for the Inside Information Rivas was providing to RODRIGUEZ and Sablon, Rivas would be invited to join the investment fund as a partner once it was successfully launched.

At first, Rivas communicated with RODRIGUEZ and Sablon primarily via phone and text message.  As the scheme progressed, however, RODRIGUEZ and Sablon increased their efforts to hide their illegal activity.  On several occasions, Rivas met personally with RODRIGUEZ and/or Sablon in Miami in order to provide them with Inside Information.  Rivas also provided RODRIGUEZ and Sablon with Inside Information using an encrypted mobile messaging application, which allows users to set a timer to messages to irretrievably “self-destruct.”

In order to maximize the illicit profits that could be earned using Rivas’s Inside Information, RODRIGUEZ and Sablon, in consultation with Rivas, initiated an aggressive strategy of purchasing short-term, out-of-the money call options.  In total, from 2015 through April 2017, RODRIGUEZ and Sablon earned more than $2 million in illicit profits through insider trading in more than two dozen securities based on Inside Information divulged by Rivas.

*                *                *

In addition to the prison term, RODRIGUEZ, 34, of Miami, Florida, was sentenced to two years of supervised release.

Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for their assistance.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant United States Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.  
↧
↧

Wisconsin Resident Involved in Nigerian Identity Theft and Tax Fraud Scheme Sentenced to Federal Prison

February 21, 2019, 1:40 pm
$
0
0

EUGENE, Ore. – Curtis Sherman Pethley, 62, a resident of Wisconsin, was sentenced today to 57 months in federal prison and ordered to pay more than $440,000 for his role in a nationwide conspiracy to commit mail fraud and aggravated identity theft.

According to court documents, IRS-Criminal Investigation began a lengthy investigation into the fraud scheme when, in May 2013, a victim in Medford, Oregon notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s personal identifying information including their social security numbers and dates of birth.

IRS determined the scheme required co-conspirators to amass a large supply of stolen U.S. taxpayer identities; obtain IRS filing PINs using victim identities; acquire prepaid debit cards in victims’ names; use fictitious email addresses; file fraudulent tax returns and conceal refund proceeds by wiring cash to Nigeria. Fraudulent tax returns were filed using the identities of thousands of Oregon and Washington taxpayers. In total, the scheme lasted several years and netted co-conspirators more than $11.6 million in fraudulent tax returns.

Pethley, working along with his Nigerian contact, acquired numerous debit cards for use in the scheme including the card connected with the Medford, Oregon victim. He helped his Nigerian contact by providing information about the preparation of federal income tax returns including how to calculate withholdings on a W-2 form. Pethley withdrew fraudulent tax refunds from the prepaid debit cards and, after taking his 10 to 20 percent cut of the proceeds, wired the money to Nigeria. In addition, he used refund proceeds to purchase merchandise and money orders and sent them to co-conspirators throughout the U.S. as instructed.

When IRS agents executed a search warrant on Pethley’s residence, they discovered approximately 150 prepaid debit cards and seized numerous money orders totaling nearly $50,000.

Pethley previously pleaded guilty to three counts of mail fraud, conspiracy to commit mail fraud and aggravated identity theft on August 27, 2018. He is currently serving a separate 60-month federal prison sentence for distributing child pornography in a case from the Western

District of Wisconsin. The Court ordered that 37 months of Pethley’s Oregon sentence should run consecutively to the sentence he is currently serving.

This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and Homeland Security Investigations with support provided by the Department of Treasury, Inspector General for Tax Administration, the U.S. State Department, and the Oregon Department of Revenue Policy and Systems Unit and was prosecuted by Byron Chatfield and Gavin Bruce, Assistant U.S. Attorneys for the District of Oregon.
↧

Bay Area Contractors Convicted In Scheme To Rig Bids For Department Of Energy Building Contract

February 21, 2019, 1:45 pm
$
0
0

Clifton Burch and Peter McKean Convicted After Trial of Submitting False Bid for Construction of Lawrence Berkeley Lab Facility

SAN FRANCISCO - Clifton Burch and Peter McKean were convicted by a federal jury today of conspiring to defraud the United States in connection and conspiracy to commit mail and wire fraud all in connection with a federal construction contract, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Department of Energy Inspector General Teri L. Donaldson.  The guilty verdicts follow a two-week trial before the Honorable Charles R. Breyer, U.S. District Judge.

The jury found that Burch, 50, of San Lorenzo, and McKean, 50, of San Mateo, conspired with Derf Butler to submit fraudulent bids to construct a building at Lawrence Berkeley National Laboratory (LBNL). 

The investigation arose out of the investigation of Senator Leland Yee, Raymond “Shrimp Boy” Chow, and others.  In the course of that investigation, Derf Butler was overheard discussing a bid-rigging opportunity.  Butler stated that he had contractors who would “play ball” and help with a scheme to commit bid-rigging.  Butler’s comments led to an undercover investigation of bid-rigging in the Bay Area.  Building contracts at LBNL are paid for and overseen by the U.S. Department Energy (DOE).  Contractors seeking construction work with LBNL and the DOE are legally required to obtain work through a competitive bidding process.  In this case, Burch and McKean agreed with Butler to submit, or participate in the submission of, fraudulent and non-competitive bids to perform the renovation of LBNL Building 84.  Specifically, Butler agreed to take steps to ensure that a particular “developer” – in reality, an undercover agent – won the contract by ensuring the lowest bid on the renovation project was provided by the developer.  Butler helped to orchestrate the submission of bids by Burch and McKean in amounts dictated by Butler and the developer.  The evidence at trial showed that Burch and McKean understood the bids were not genuine bids and were intended to be higher than the bid submitted to the DOE by the developer.  Burch and McKean expected to get payment and work after the developer secured the contract.

Butler met with the developer in July of 2013, at which time Butler agreed to locate contractors to submit bids for the DOE contract in amounts higher than the contractor’s bid.  On July 30, 2013, Butler met with Burch and McKean, each of whom agreed to submit a separate bid that would be higher than $5.7 million, the amount of the bid that would be submitted by the developer. 

Butler also was given additional payments after Burch and McKean submitted the fraudulent bids.  Specifically, on August 26, 2013, Burch mailed a bid for the contract to the LBNL in the amount of $7,125,000 and on October 3, 2013, McKean emailed a bid in the amount of $6,300,000.  Burch and McKean both were told they would be given work as a sub-contractor and the construction manager on the project after the developer was awarded the bid.

A federal grand jury handed down a superseding indictment on November 8, 2018. Burch and McKean both were charged with one count of conspiracy to defraud the Unite States, in violation of 18 U.S.C. § 371, and one count of conspiracy to commit mail and wire fraud, in violation of 18 U.S. C. § 1349.  Pursuant to today’s verdict, the defendants were convicted on all counts.

Butler pleaded guilty to his role in the scheme on October 17, 2018.  Judge Breyer scheduled Butler’s sentencing hearing for March 27, 2019.

Judge Breyer scheduled the defendants’ sentencing hearing for June 19, 2019.  The maximum statutory penalty for conspiring to defraud the United States is five years in prison and a $250,000 fine.  The maximum statutory penalty for the conspiracy to commit mail and wire fraud count is 20 years in prison and a $250,000 fine.  Further, additional periods of supervised release, fines, and restitution also may be imposed, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  

Assistant U.S. Attorneys Cynthia Frey and William Frentzen are prosecuting the case with the assistance of Helen Yee, Rosario Calderon, Bridget Kilkenny, and Danielle Allison.  The prosecution is the result of an investigation by the Federal Bureau of Investigation and the DOE Office of the Inspector General
↧

Hartford Man Charged with Narcotics and Firearms Offenses

February 22, 2019, 9:03 am
$
0
0

John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned an indictment yesterday charging ORLANDO SOTO, 27, of Hartford, with narcotics and firearms offenses.

As alleged in the indictment, on July 9, 2018, Soto possessed fentanyl and crack cocaine, which he intended to distribute, along with three handguns.  Prior to July 2018, Soto had been convicted in state court of felony narcotics, larceny and firearm offenses. 

Soto has been detained in state custody since his arrest by Hartford Police on July 9, 2018.

The indictment charges Soto with one count of possession with intent to distribute fentanyl and crack cocaine, which carries a maximum term of imprisonment of 20 years, and one count of possession of firearms by a convicted felon, which carries a maximum term of imprisonment of 10 years.

U.S. Attorney Durham stressed that an indictment is not evidence of guilt.  Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the FBI’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford PoliceDepartment.  The case is being prosecuted by First Assistant U.S. Attorney Leonard C. Boyle and Assistant U.S. Attorney Lauren C. Clark.

This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
↧
↧

Nevada, Iowa Man Sentenced to Prison for Mailing Powder Letter to School

February 22, 2019, 9:08 am
$
0
0

DES MOINES, Iowa – On February 19, 2019, Mondell V. Olson, age 67, of Nevada, was sentenced to 18 months in federal prison to be followed by three years of supervised release for the offense of false information and hoaxes, or mailing a ‘powder letter’ to the Nevada Schools, announced United States Attorney Marc Krickbaum. Olson was sentenced by United States District Court Senior Judge Robert W. Pratt, in the United States District Court for the Southern District of Iowa.

In March 2018, Olson mailed an envelope addressed to a teacher at the Nevada Schools. Inside the envelope was a white powdery substance, and a note indicating the substance was anthrax. The investigation revealed the substance was not toxic. Olson admitted to sending the teacher the envelope. Olson was previously convicted of harassment charges in Story County for leaving threatening voice mails with the Nevada High School and a teenage student at the school.

This matter was investigated by the United States Postal Inspection Service, Federal Bureau of Investigation, and Nevada Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
↧

Buffalo Man Indicted In Connection With Violent Home Invasion Of An Elderly Tonawanda Couple

February 22, 2019, 9:56 am
$
0
0

BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Todd Laraba, 41, of Buffalo, NY, with Hobbs Act robbery and conspiracy, and marijuana conspiracy. The charges carry a maximum penalty of 20 years in prison.

Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the indictment and a previously filed complaint, on September 28, 2017, shortly before 9:00 p.m., two men entered the residence at 540 Harrison Avenue in Buffalo, NY, and went to the family room where an elderly couple (victims) was watching television. The complaint states that the men were wearing black hooded sweat shirts, black pants, black gloves and skeleton masks, and one of the men had a husky or larger build. One of the men stated to the victims, "This isn't going to hurt, or take long. You won't get hurt, just relax." The men zip tied the victims’ hands and ankles with black zip ties and placed duct tape across the victims’ mouth and eyes. One of the men stayed with the victims while the other went to the attic of the residence. After approximately ten minutes the victims heard the rear door close. At this time they removed the duct tape from their eyes and mouth. One of the victims observed one of the men fleeing while carrying what appeared to be a lockbox.

The Town of Tonawanda Police Department responded and while processing the scene, officers recovered four black zip ties, four pieces of glossy duct tape, and other items.

Subsequent DNA testing determined that the major DNA profile obtained from the zip ties obtained from the ankles and wrists of one of the victims matched the DNA of Laraba.
In addition, between April and November 2017, the defendant conspired with others to possess and distribute marijuana.

“I applaud the dogged efforts of investigators from the Tonawanda Police and the Erie County Sheriff’s Departments, who, along with the federal partners at HSI and the FBI, never gave up on identifying and tracking down the person responsible for terrorizing these elderly victims in the serenity of their own home,” stated U.S. Attorney Kennedy. “The arrest of this defendant should send a strong message to anyone thinking about preying on those most vulnerable—you will be discovered; you will be apprehended; and you will be brought to justice.”      

The indictment is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Town of Tonawanda Police Department, under the direction of Jerome C. Uschold, III; U.S. Department of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. 
↧

Michigan Man Pleads Guilty in Multi-Jurisdictional Investigation into Drug Trafficking

February 22, 2019, 10:02 am
$
0
0

PITTSBURGH, PA - A Michigan resident pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

Victor Burnett, Jr., 38, of Oak Park, Michigan, pleaded guilty to one count before United States District Judge Nora Barry Fischer.

In connection with the guilty plea, the court was advised that Burnett conspired to possess with intent to distribute and distribution of heroin. Specifically, the court was advised that Burnett, who was intercepted over a Title III wiretap, possessed approximately 1,366 grams of heroin, five firearms, ammunition, a money counter, multiple cell phones, and over $20,000 in US currency in his residence on the date of his arrest on September 1, 2016. In addition, the court was advised that approximately 100 grams of heroin, originally supplied by Burnett, was sent via the United States mail and seized by agents on August 22, 2016 prior to reaching its final destination in the Western District of Pennsylvania where it was to be further distributed.

Judge Fischer scheduled sentencing for July 18, 2019. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.

An OCDETF task force headed by the Federal Bureau of Investigation and comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including the Pittsburgh Bureau of Police, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, and the Allegheny County Police Department conducted the investigation leading to the prosecution. Substantial assistance was provided by FBI San Juan, Puerto Rico (St. Thomas Resident Agency, U.S. Virgin Islands) and the United States Postal Inspection Service. Numerous other FBI field offices, including Detroit, Cleveland, New York, and Atlanta, in addition to the Bureau of Alcohol, Tobacco, and Firearms, also assisted with this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

This investigation which utilized Title III wiretap intercepts and other investigative techniques that established the existence of a several overlapping and interrelated drug distribution networks with tentacles in the Western District of Pennsylvania, Northern District of Ohio, Eastern District of Michigan and the District of the Virgin Islands. The FBI Greater Pittsburgh Safe Streets

Task Force’s focus began in early 2015 investigating a drug trafficking organization operating on Pittsburgh’s North Side and thereafter they were able to track drug suppliers beyond the borders of the Western District of Pennsylvania and the Eastern District of Michigan and across the Caribbean Sea.
↧
Search

Jamestown Man Pleads Guilty For His Role In Methamphetamine Ring

February 22, 2019, 10:06 am
$
0
0

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ernest Clayburn Cauley, Jr., 27, of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.

Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that between March 2017 and November 7, 2017, the defendant conspired with co-defendant Zakiel Fields, and others, to sell methamphetamine in the Jamestown, NY area. Cauley and Fields were the main suppliers of methamphetamine to a drug trafficking organization that was being investigated by the Federal Bureau of Investigation and the Jamestown Metro Drug Task Force (JMDTF).

On April 26, 2017, Cauley met with an individual working with the task force, and exchanged methamphetamine for $120.00 in cash. The defendants were subsequently arrested on November 6, 2017, following a drug transaction during which Cauley and Field received a quantity of methamphetamine. Cauley and Fields, driving in separate cars, were pulled over by police and arrested. Methamphetamine was found in the car in which Fields was riding.

Co-defendant Zakiel Leonard Fields, Jr. was previously convicted and is awaiting sentencing.    

The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Jamestown Police Department, under the direction of Chief Harry Snellings.

Cauley is scheduled to be sentenced on July 2, 2019, at 9:30 am before Judge Vilardo.

↧
↧

Federal Judge Sentences Former Berkeley County School District Chief Financial Officer To More Than Five Years For Embezzlement, Money Laundering, And Public Corruption

February 22, 2019, 10:15 am
$
0
0

CHARLESTON, S.C. – Today, U.S. District Judge David C. Norton sentenced the former Chief Financial Officer (CFO) of the Berkeley County School District, Brantley Denmark Thomas, III, to 63 months in prison on charges of embezzlement, money laundering, and public corruption, announced the U.S. Attorney’s Office for the Western District of North Carolina.  Judge Norton also ordered Thomas, 61, of Charleston, South Carolina, to serve three years under court supervision after he is released from prison, and to pay a total of $1,232,106.08 as restitution to Berkeley County School District (BCSD).

According to filed court documents and today’s sentencing hearing, from at least 2010 to December 2016, Thomas served as CFO of BCSD. As the School District’s CFO, Thomas was responsible for, among other things, reviewing invoices and authorizing payments to BCSD vendors. Court records show that, during the relevant time period, Thomas executed an embezzlement scheme by which he, among other things, intentionally overpaid certain BCSD vendors. When those vendors issued refund checks resulting from the overpayments, Thomas converted the checks issued to School District for his own use. Court records also show that, at times, Thomas deposited the refund checks directly into a personal bank account. At other times, Thomas converted the refund checks into cashier’s checks, which he then deposited into a personal bank account. Over the course of at least sixteen years, Thomas also used other methods to embezzle from BCSD, and stole at least $1.2 million of School District funds. Thomas used the stolen money on personal expenditures, including to pay for personal travel, jewelry and private club memberships.

According to court records and plea related documents, Thomas also admitted to taking at least $32,000 in bribes and kickbacks from an insurance broker in exchange for Thomas’ help in securing millions of dollars in BCSD’s insurance business.

In imposing the sentence, Judge Norton highlighted the serious nature of Thomas’ crimes, and noted its negative impact on the students of BCSD, the need to protect the public from Thomas, and the need to deter Thomas and others from committing such crimes in the future.  Judge Norton also commented upon Thomas’ apparent “OPM Addiction,” – referencing Thomas’ repeated thefts of “Other people’s money.”

In January 2018, Thomas pleaded guilty to a total of twenty federal charges involving embezzlement, money laundering and public corruption. Thomas is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons, upon designation of a federal facility. All federal sentences are served without the possibility of parole.

The investigation was conducted by the FBI and the South Carolina Law Enforcement Division. In making today’s announcement, the U.S. Attorney’s Office thanked the South Carolina Attorney General’s Office for its assistance.

The prosecution was handled by Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
↧

Miami Medical Clinic Owner Pleads Guilty to Health Care Fraud Scheme

February 22, 2019, 10:22 am
$
0
0

A Miami, Florida-area medical clinic owner pleaded guilty today for her role in a scheme to defraud Medicare by submitting fraudulent billings from the clinic and by supplying patients to three home health agencies that submitted fraudulent bills for home health services.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement. 

Juliette Anais Tamayo, 53, of Miami, pleaded guilty to count two of a superseding indictment charging her with conspiracy to commit health care fraud and wire fraud.  Tamayo previously pleaded guilty to count one of the superseding indictment, charging a conspiracy to pay and receive kickbacks and to defraud the United States.  Her sentencing has been scheduled for April 30, 2019 by U.S. District Judge Cecelia Altonaga of the Southern District of Florida, who accepted both pleas.

Tamayo owned Sunshine Medical Care Group Inc. (Sunshine), a medical clinic in Miami.  According to admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine.  The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare  beneficiaries.  Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions, she admitted.

The superseding indictment alleged that the losses to Medicare as a result of the scheme were approximately $3.7 million.

The principals of the home health agencies and one of the Sunshine physicians who wrote fraudulent prescriptions previously pleaded guilty to conspiracy to commit health care fraud in separate matters.

The case was investigated by the FBI, HHS-OIG and the U.S. Secret Service. Trial Attorneys Adam G. Yoffie and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case.

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
↧

Former Bank Employee Pleads Guilty to Embezzlement

February 22, 2019, 10:26 am
$
0
0

BOSTON – A former bank employee pleaded guilty today in federal court in Worcester in connection with embezzling money from client accounts held by the bank by which she was employed.

Jessica Vargas, 35, of Athol, pleaded guilty to one count of bank fraud and two counts of bank embezzlement. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 15, 2019. Vargas was charged by criminal complaint and arrested in March 2018.

Vargas was an employee of a federally-insured bank when she embezzled approximately $108,000 by making unauthorized cash withdrawals from customer accounts. Bank documentation showed that Vargas made unauthorized withdrawals from the accounts of various customers, including more than $53,000 from the account of an 84-year-old bank customer and almost $13,000 from the account of an 88-year-old customer.

For each count, Vargas faces a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Bill Abely and Kristen Noto of Lelling’s Criminal Division are prosecuting the case.
↧

Louisiana Teacher Pleads Guilty to Child Enticement

February 22, 2019, 10:31 am
$
0
0

BOSTON - A Louisiana teacher pleaded guilty today in federal court in Boston to child enticement related offenses.

Logan Procell, 25, pleaded guilty to one count of coercion and enticement of a minor and one count of transfer of obscene material to a minor. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 3, 2019. Procell was indicted in October 2017 and has been in custody since.

Procell first contacted an 11-year-old Massachusetts girl via Snapchat after seeing her on a different online application that allows users to publish videos in real time. After obtaining her phone number, Procell began communicating with her by text. The child’s parent discovered approximately one month’s worth of their communications in September 2017. The exchange of more than 1600 messages contained sexually explicit images and messages sent by Procell to the child, including pictures of his penis, requests for her to send him pornographic images of herself, and discussions about meeting her to have sex. At the time of the offense, Procell was a chemistry teacher at a high school in Noble, La.

The charge of coercion and enticement of a minor carries a minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of transfer of obscene material to a minor provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Valuable assistance was provided by the Louisiana State Police and the Waltham Police Department. Assistant U.S. Attorneys Anne Paruti and Mackenzie Queenin are prosecuting the case.
↧
↧

Pittsburgh Man Pleads Guilty to Committing Federal Drug and Gun Offenses in Project Safe Neighborhoods Prosecution

February 22, 2019, 10:38 am
$
0
0

PITTSBURGH, PA – Marvin Dennis was convicted of committing heroin and crack cocaine trafficking and firearm crimes, United States Attorney Scott W. Brady announced today.

Dennis, age 23 of Pittsburgh, pled guilty to conspiring to distribute heroin and crack cocaine from September 2017 to April 3, 2018, and to possessing a firearm in furtherance of the drug trafficking conspiracy from September 2017 to April 3, 2018. He pled guilty before United States District Judge Arthur J. Schwab. Judge Schwab scheduled sentencing to occur on June 24, 2019, at 9:00 a.m.

The law provides for a maximum total sentence of at least 5 years and up to life in prison and a fine of up to $1,250,000. Under the Federal Sentencing Guidelines, the actual sentences imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.

The Pittsburgh Bureau of Police, the Federal Bureau of Investigation, and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions in this case. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
↧

Olean Man Arrested For Production Of Child Pornography

February 22, 2019, 10:50 am
$
0
0

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jacob Tunison, 29, of Olean, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a minimum penalty of 15 years in prison, a maximum penalty of 30 years, and a $250,000 fine.

Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the complaint, on January 14, 2019, the Cuba, NY Police Department alerted the FBI regarding the possible sexual exploitation of a child using social media. Subsequent investigation determined that in November of 2018, Tunison used one or more social media applications to communicate with a 13 year old female. The defendant sent numerous lewd images of himself to the minor, and solicited the minor to produce and send various images of herself to him.

Tunison made an appearance before U.S. Magistrate Judge Michael J. Roemer and is being held following a detention hearing.

The criminal complaint is the result of an investigation by the Cuba Police Department, under the direction of Chief Dustin Burch, and the Federal Bureau of Investigation, Jamestown Office, under the direction of Special Agent-in-Charge Gary Loeffert.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
↧
Search

Serial Bank Robber Pleads Guilty to Indictment

February 22, 2019, 10:54 am
$
0
0

A Jupiter resident pled guilty yesterday to committing a string of robberies in Palm Beach and Martin Counties in 2017 and 2018.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Bruce H. Colton, State Attorney for Indian River, Martin, Okeechobee, and Saint Lucie Counties, Dave Aronberg, State Attorney for Palm Beach County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) and Daniel J. Kerr, Chief, Jupiter Police Department (JPD), made the announcement.

On the scheduled trial date, Ronnie Montsdeoca, age 59, of Jupiter, Florida, pled guilty to the superseding indictment, which charged three counts of bank robbery and one count of attempted bank robbery. At sentencing, the defendant faces a combined maximum statutory sentence of 80 years in prison and a fine of $1,000,000.00.  Montsdeoca is scheduled to be sentenced by U.S. District Judge Donald M. Middlebrooks on April 16, 2019, in Miami, Florida.

According to the court record, including the indictment and the defendant’s admissions at the time of the plea, Montsdeoca robbed a TD Bank in Jupiter Florida on April 21, 2017, a Wells Fargo Bank in West Palm Beach, Florida on August 27, 2018, and another TD Bank in Stuart, Florida, on September 10, 2018.  Montsdeoca also attempted to rob a Bank United in Hobe Sound, Florida, shortly before the TD Bank robbery on September 10, 2018.

The defendant took, by means of intimidation during the course of the bank robberies, in excess of $37,000 from the institutions whose deposits were insured by the Federal Deposit Insurance Corporation.

U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, MCSO, PBSO and JPD in this matter. She thanked the State Attorney’s Office for Saint Lucie County and State Attorney’s Office for Palm Beach County for their assistance.  The case is being prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney Christopher Hudock. 

↧

Three Florida Residents Charged with Armed Robbery

February 22, 2019, 11:05 am
$
0
0

Three Florida residents have been arrested and charged with conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and brandishing a firearm in furtherance of a crime of violence.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Anthony Rosa, Chief, Sunrise Police Department, made the announcement.

Zyheem Ian Smith, of Orlando, Gedeon Joseph, of Clermont, and Watverly Mortimer, of West Park, were charged by indictment with offenses related to the December 24, 2018 armed robbery of the Yard House restaurant at the Sawgrass Mills Mall in Sunrise, Florida (Case No. 19-CR-60055-UNGARO).  The defendants have been arrested and had their initial hearings.  Mortimer was detained after a detention hearing on February 15, 2019, before U.S. Magistrate Judge Patrick M. Hunt in Ft. Lauderdale.  Smith and Joseph are currently being detained, following a hearing before U.S. Magistrate Judge Thomas B. Smith in Orlando.  They are awaiting transport to the Southern District of Florida for a subsequent hearing.

According to court records, including allegations contained in the complaint and indictment, Smith and Joseph entered the Yard House on the morning of December 24, 2018, before the restaurant had opened, through a back door that was opened by Mortimer, a Yard House employee.  Smith and Joseph went upstairs to the manager’s office, pointed a Glock 19X handgun at the manager, and grabbed the manager’s cellphone.  They threatened to shoot the manager if he did not empty the safe.  Smith and Joseph left with approximately $22,000.

An indictment is only an accusation and every defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and the Sunrise Police Department in this matter.  This case is being prosecuted by Assistant U.S. Attorney Robert Juman.
↧
↧

Two Individuals Charged with Attempted Robbery of Smithgall’s Pharmacy in Lancaster, PA

February 22, 2019, 11:11 am
$
0
0

PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Brandon Galette, 24, of Harrisburg, PA, and Andrew Garrett, 24, of Steelton, PA, were charged today by Indictment with one count of attempted robbery which interferes with interstate commerce and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence.  Galette is also charged with possession of a firearm by a convicted felon.  The Indictment charges Galette and Garrett for their alleged participation in the October 23, 2018 attempted robbery of Smithgall’s Pharmacy in Lancaster, PA, during which they allegedly attempted to steal prescription opioids.

If convicted, the defendants each face a maximum penalty of lifetime imprisonment, with a mandatory minimum of seven years in prison, to be served consecutive to any other sentence imposed, plus five years of supervised release.  Additionally, Galette faces a $750,000 fine and a $300 special assessment, while Garrett faces a $500,000 fine and a $200 special assessment.

“Stemming the tide of violent crime in our communities is a top priority of the Department of Justice and my Office,” said U.S. Attorney McSwain.  “People looking to make a quick buck by robbing convenience stores, pharmacies, and other businesses beware: this conduct is a federal crime, and if you are convicted, you will face stiff penalties under federal law.”

The case is being investigated by the Federal Bureau of Investigation and the Lancaster City Bureau of Police, and it is being prosecuted by Assistant United States Attorney Timothy M. Stengel.

An Indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.
↧

United States Attorney Mike Stuart Forms Health Care Abuse, Recovery and Response Team ("ARREST") To Intensify Response to Opioid Epidemic and Health Care Fraud

February 22, 2019, 11:16 am
$
0
0

ARREST Team is New Approach to Solving Crisis

Medicaid Fraud Estimated at More Than $150 Billion Annually in U.S.

CHARLESTON, W.Va. – United States Attorney Mike Stuart, joined by Assistant Special Agent in Charge Mary Ann Withrow, U.S. Department of Health and Human Services Office of Inspector General (OIG), Supervisory Senior Resident Agent Wes Quigley, Federal Bureau of Investigation (FBI), Group Supervisor Jim Hischar, Drug Enforcement Administration and Director Mike Malone and Investigative Supervisor Jason Fisher, West Virginia Medicaid Fraud Control Unit, announced the formation of a Health Care Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic.

All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, will be directed through ARREST.  Included within the purview of the Team are the:

    Opioid Fraud and Abuse Detection Unit;
    Affirmative Civil Enforcement Unit;
    Appalachian Regional Prescription Opioid Task Force;
    Medicare and Medicaid Fraud; and
    Asset Forfeiture efforts related to all healthcare matters.

“The formation of ARREST is unique in the country,” said United States Attorney Mike Stuart.  “To my knowledge, this is the first district in the country that has broken down all barriers between civil and criminal efforts to ensure a comprehensive and intense approach to ending the opioid crisis and rooting out health care related fraud.  Health care and Medicaid fraud is a crisis in the country, for taxpayers, and for rate payers, with an estimated $150 billion in fraud annually.  I intend to turn a microscope on fraudulent activities in the Southern District of West Virginia.”

“ARREST is simple,” continued United States Attorney Mike Stuart.  “We are establishing a level of teamwork, cooperation, and communication that is an unparalleled approach to health care related enforcement efforts across all disciplines.  The creation of ARREST formalizes our commitment to an aggressive, organized and strategic approach to attacking the opioid epidemic as well as targeting health care fraud and abuse both civilly and criminally.”

“The FBI and our partners are using every tool we have to fight health care fraud and opioid abuse in West Virginia,” said Special Agent in Charge Robert Jones. “The FBI works tirelessly to make sure medical professionals who contribute to the drug crisis tearing families apart and putting patients at risk are brought to justice."

“The newly formed team will combine the talents, dedication, and resources of federal law enforcement and the State of West Virginia to fight healthcare fraud and dismantle drug diversion,” said Maureen R. Dixon, Special Agent in Charge for the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We look forward to working with the U.S. Attorney and our fellow law enforcement partners to take illegal prescriptions drugs off our streets, protect Medicare and Medicaid beneficiaries from harm, and ensure the integrity of U.S. taxpayer funds.”

“The Drug Enforcement Administration remains committed to fighting the opioid crisis with every available resource,” said D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Field Division, which covers West Virginia, Kentucky, and Tennessee.   “The strategic partnership created by the ARREST initiative will help DEA and our partners better channel those resources to great effect for the people of West Virginia,” Evans added.

“The Medicaid Fraud Control Unit of the Office of Inspector General within the West Virginia Department of Health and Human Resources is proud to be part of the U.S. Attorney’s Health Care Abuse, Recovery and Response Team,” said Michael Malone, Director of the Medicaid Fraud Control Unit. “We look forward to playing an important role in combating the opioid crisis and protecting the integrity of all health care programs for West Virginia citizens and their tax dollars.”

Assistant United States Attorney Alan McGonigal is serving as the Chair of ARREST.  He will work in conjunction with Assistant United States Attorney Haley Bunn, who will head up the team’s criminal drug diversion efforts, and Assistant United States Attorney Meredith George Thomas, who will oversee the team’s criminal health care fraud matters.  In addition, a Health Care Fraud Prevention Partnership is being established, which consists of voluntary public/private partnerships between the federal government, state agencies, law enforcement, private health insurance plans, employer organizations and health care anti-fraud associations.  The purpose of the partnership is to exchange data and information between partners to help improve capabilities to fight fraud, waste and abuse in the health care system.
↧

Read Article about Georgia's C.H.A.M.P.S. Program on SchoolSafetyInfo.org

February 22, 2019, 11:23 am
↧
Viewing all 11362 articles
Browse latest View live
Search
<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>