Source: United States Attorneys General

Headline: New York Man Arrested For Role In ‘Shotgun’ Loan Scheme

NEWARK, N.J. – A Bronx, New York, man is charged with carrying out a scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Craig Carpenito announced today.

Saoud “Sam” Rihan, 57, was arrested Jan. 28, 2018 and charged by complaint with one count of conspiracy to commit bank fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

According to the complaint:

Rihan was a business partner of Simon Curanaj, 63, of Yonkers, New York. From 2012 through January 2014, Rihan, Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.

For example, Rihan and Curanaj executed a deed to transfer ownership of a Bronx property to people identified in the complaint as “Individual 1” and “Individual 2,” neither of whom lived at the property. Rihan and Curanaj then applied for three HELOCs from multiple banks in the name of Individual 2.

Rihan and Curanaj hid the fact that the same Bronx property was pledged as collateral in all three applications. The applications also fraudulently inflated Individual 2’s income. In addition, at the time the applications were made, the value of the Bronx property, which was encumbered by a mortgage, was far less than the amount of the HELOC loans that Rihan and the real estate broker applied for.

The victim banks eventually issued loans to Individual 2 in excess of $370,000. After the victim banks funded the HELOCs and deposited money into Individual 2’s bank accounts, Individual 2 disbursed almost all of the funds to Rihan, Curanaj, and others. In 2014, Individual 2 defaulted on all the HELOC loans.

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.

The charge and allegations against Rihan are merely accusations, and he is presumed innocent unless and until proven guilty.

Curanaj previously pleaded guilty to his role in the scheme and awaits sentencing.

U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Steven Perez in Newark; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.

Source: United States Attorneys General

Headline: Former Newark Watershed Conservation And Development Consultant Admits Wire Fraud Scheme

NEWARK, N.J. – A political consultant from Essex County, New Jersey, today admitted her role in a fraud scheme related to contracts with the Newark Watershed Development Corp. (NWCDC) and kickbacks to officials there, U.S. Attorney Craig Carpenito announced.

Dianthe Martinez Brooks, 42, of West Orange, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging her with one count of wire fraud.

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

Martinez Brooks was the owner and proprietor of a consulting company called DMart127 LLC, which provided political consulting services to local candidates and elected officials, among others, in the Essex County area. Between May 2011 and March 2013, she participated in a scheme with Linda Watkins Brashear, the former NWCDC Executive Director, and Donald Bernard, the former Director of Special Projects, to defraud the NWCDC of the honest services of Brashear and Bernard, and of money and property.

Martinez Brooks submitted fraudulent invoices to the NWCDC in the name of DMart127 detailing services that were purportedly performed, but which sought payments that overstated the value of any services she or her company performed. Martinez-Brooks also assisted in obtaining contracts between companies owned by Kevin Gleaton and the NWCDC and contracts between a company owned by her relative and the NWCDC through Bernard and Brashear. Fraudulent invoices were submitted in the name of those companies to the NWCDC detailing services that were purportedly performed, but were never rendered by Gleaton, his companies, or Martinez Brooks’ relative. Based on the fraudulent invoices, the NWCDC issued checks to DMart127, Gleaton’s companies and company belonging to Martinez’s relative totaling $225,666. Martinez Brooks kicked back a substantial amount of those proceeds to Brashear and Bernard.

The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the Special Prosecutions Division.

Defense counsel: Paulette Pitt Esq., Woodbridge, New Jersey

Source: United States Attorneys General

Headline: Nevada Pastor Pleads Guilty to Stealing Social Security Benefits

SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., pastor pleaded guilty in federal court today to fraudulently receiving more than $90,000 in Social Security disability benefits.

Dennis Engelbrecht, 58, of Nevada, pleaded guilty before U.S. Magistrate Judge David P. Rush to the theft of government money.

Engelbrecht admitted that he was employed as a pastor at Pentecostal Assembly of God Church in Nevada, Mo., while receiving disability benefits over an approximately four-year period. Engelbrecht did not report his work activity to the Social Security Administration, as required.

Although Engelbrecht was paid $650 per week by the church, he received a total of $87,705 in disability payments from February 2011 to May 2015. Additionally, his son received a total of $3,220 in auxiliary benefits to which he was not entitled. (Because Engelbrecht was not entitled to benefits, his son was not entitled to auxiliary benefits.)

Under the terms of today’s plea agreement, Engelbrecht must pay restitution to the government of $90,925.

 

Engelbrecht has worked as a pastor since 2000. His first application for disability benefits in 2009 was denied, but a second application was approved in 2011. Engelbrecht did not report any current employment on either application.

Under federal statutes, Engelbrecht is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Social Security Administration, Office of Inspector General.

Source: United States Attorneys General

Headline: Accountant Charged with Conspiring to Defraud the IRS

BOSTON – John H. Nardozzi, a certified public accountant, was charged in an indictment unsealed today with assisting former State Senator Brian Joyce with preparing and filing false income tax returns.

Nardozzi, 66, of Waltham, was indicted on one count of conspiring to defraud the IRS and eight counts of aiding and assisting in the filing of false tax returns.  Nardozzi will appear this afternoon in federal court in Worcester.

 

The indictment alleges that Nardozzi, Joyce’s accountant, secretly conspired with Joyce and others to defraud the IRS for tax years 2011 to 2014 by:

 

• Fraudulently deducting millions of dollars of personal expenses for Joyce as legitimate business expenses of Joyce’s corporation, Brian A. Joyce, Attorney at Law, P.C., (“BAJPC”);
• Fraudulently inflating self-employment income for Joyce and his spouse, by more than $2 million in order to maximize retirement plan contributions and falsely reduce taxable personal income;
• Fraudulently reporting a rollover of more than $400,000 in retirement savings when, in fact, it was a taxable event subject to early withdrawal penalties;
• Fraudulently deducting a corporate dividend of approximately $56,000 as a “legal expense” attributable to Joyce in order to falsely reduce the taxable income of BAJPC; and
• Fraudulently omitting a dividend of approximately $100,000 from Joyce’s personal tax return in order to reduce Joyce’s taxable income.

In addition to the conspiracy charge, the indictment also alleges that Nardozzi aided and assisted Joyce in preparing and filing false corporate and personal income tax returns between 2011 and 2014. 

  

The charge of conspiracy to defraud the United States provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000.  The charge of aiding and assisting in filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of up to $100,000.  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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys William F. Bloomer and Dustin Chao of Lelling’s Public Corruption and Special Prosecutions Unit are prosecuting the case.

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

Source: United States Attorneys General

Headline: Man Sentenced to Federal Prison for Meth Conspiracy

A man in possession of stolen handguns, who also conspired to distribute methamphetamine was sentenced January 24, 2018, to 12 years in federal prison.

 

Stephen Scott Smith, 30, from Austin, Texas, received the prison term after a September 7, 2017, guilty plea to conspiracy to distribute methamphetamine.

 

Smith was involved in a conspiracy that distributed more than 500 grams of methamphetamine from May 2016 through November 23, 2016.  On November 23, 2016, after receiving information from a confidential source, Smith was arrested and discovered to possess two stolen Glock handguns.  In addition, during a vehicle search, agents discovered Smith possessed a third handgun and approximately 1/4 pound of crystal methamphetamine.  Smith was bringing methamphetamine in large quantities from Texas for resale in Sioux City. 

 

Smith was sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Smith was sentenced to 144 months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a five-year term of supervised release after the prison term.  There is no parole in the federal system.  Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.

 

The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Tri State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.. 

 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 17-4018.  Follow us on Twitter @USAO_NDIA.

 

Source: United States Attorneys General

Headline: Mt. Pleasant, Iowa Man Sentenced to Federal Prison for Meth Conspiracy

A man who conspired to distribute methamphetamine was sentenced January 18, 2018, to over 8 years in federal prison.

 

Richard Helfrich, 34, from Mt. Pleasant, Iowa, received the prison term after a January 19, 2017, guilty plea to conspiracy to distribute methamphetamine.

 

At the guilty plea, Helfrich admitted his involvement in a conspiracy that distributed at least 5 grams of actual (pure) methamphetamine between January 2016 and July 2016.  In May, 2016, law enforcement executed a search warrant at defendant’s residence in Coulter, Iowa, locating methamphetamine and marijuana.  Helfrich admitted to selling methamphetamine and owning a lockbox that previously contained methamphetamine.

 

Helfrich was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade.  Helfrich was sentenced to 100 months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a five-year term of supervised release after the prison term.  There is no parole in the federal system.  Helfrich is being held in the United States Marshal’s custody until she can be transported to a federal prison.

 

The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Franklin County Sheriff’s Office, and Butler County Sheriff’s Office. 

 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 16-3046.

 

Follow us on Twitter @USAO_NDIA.

Source: United States Attorneys General

Headline: District Woman Sentenced to Six Years in Prison for Robbing Man in Northeast Washington

            WASHINGTON – Shelia Rogers, 62, also known as Sheila Rogers, of Washington, D.C., has been sentenced to six years of incarceration for robbing a man who was walking home from a trip to buy medicine for his sick children, U.S. Attorney Jessie K. Liu announced.

            Rogers was found guilty by a jury in November 2017 of charges of robbery and felony threats. The verdict followed a trial in the Superior Court of the District of Columbia. She was sentenced on Jan. 26, 2018, by the Honorable Ronna L. Beck. Judge Beck sentenced Rogers to a total of 15 years in prison, but suspended all but six years of that time. Upon completion of her prison term, Rogers will be required to successfully complete five years of supervised release.

            According to the government’s evidence, on Oct. 1, 2016, at approximately 7:35 p.m., the victim had just walked to a grocery store to buy medicine for his two sick children.  While returning home, he encountered Rogers and an unidentified man on the sidewalk in the 1800 block of I Street NE. Rogers bumped into the man and demanded his money. When he tried to plead with her, she put her hand in her pocket, appeared to hold an item inside of it, and threatened to use that item to harm him.  Thinking that Rogers could have a gun or knife, the man complied, and Rogers took every dollar he had, a total of $15.

            After Rogers and the unidentified man, who took no part in the crime, walked away, the victim called police. Officers with the Metropolitan Police Department (MPD) quickly responded and located and apprehended Rogers a couple of blocks away.

            The case marked the sixth time that Rogers had been convicted of robbery and robbery-related offenses, dating to the late 1970s.

            In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Eric Hansford and Kristina Wolf. Finally, she commended the work of Assistant U.S. Attorney Matthew R. Palmer-Ball, who investigated and prosecuted the matter.

Source: United States Attorneys General

Headline: Man Convicted of Armed Robberies, Carjacking

ALEXANDRIA, Va. – A federal jury convicted a Washington, D.C. man today for his participation in three armed robberies and an armed carjacking.

 

According to court records and evidence presented at trial, Lamont Kortez Gaines, 28, participated in the armed robbery of an Advance America Cash Advance store in Alexandria and two 7-Eleven convenience stores in Arlington. In addition, Gaines participated in an armed carjacking in Alexandria. Three of Gaines’ co-conspirators—Andrew Bernard Duncan, 27, Desmar Rashad Gayles, 25, and Anton Durrell Harris, 27, all of Washington, D.C.—previously pleaded guilty to charges of brandishing a firearm during and in relation to crimes of violence.

 

Gaines was convicted of conspiring to obstruct commerce by robbery, obstructing commerce by robbery, carjacking, brandishing a firearm during and in relation to crimes of violence, and unlawful possession of a firearm by a convicted felon. He faces up to life in prison and a mandatory minimum of 82 years in prison when sentenced on April 27. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Michael L. Brown, Alexandria Chief of Police, Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, M. Jay Farr, Arlington County Chief of Police, Henry P. Stawinski III, Chief of Prince George’s County Police, and Peter Newsham, Chief of Police, made the announcement after U.S. District Judge T.S. Ellis, III accepted the verdict. Assistant U.S. Attorneys Alexander E. Blanchard and Rebeca H. Bellows are prosecuting the case.

 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-106.

Source: United States Attorneys General

Headline: Tennessee Chiropractor Pays More Than $1.45 Million To Resolve False Claims Act Allegations

A Lenior City, Tennessee, chiropractor has paid $1.45 million, plus interest, to resolve False Claims Act violations, announced U.S. Attorney General Jeff Sessions and U.S. Attorney Don Cochran of the Middle District of Tennessee. The settlement also calls for a Cookeville, Tennessee, pain clinic nurse practitioner to pay $32,000 and surrender her DEA registration to settle allegations that she violated the Controlled Substances Act.

Matthew Anderson and his management company, PMC LLC, managed four pain clinics in Tennessee, most recently known as; Cookeville Center for Pain Management; Spinal Pain Solutions in Harriman; Preferred Pain Center of Grundy County in Gruetli Laager; and McMinnville Pain Relief Center.    All of these clinics are now closed.

“More Americans are dying because of drugs today than ever before—a trend that is being driven by opioids,” said Attorney General Jeff Sessions. “If we’re going to end this unprecedented drug crisis, which is claiming the lives of 64,000 Americans each year, doctors must stop overprescribing opioids and law enforcement must aggressively pursue those medical professionals who act in their own financial interests, at the expense of their patients’ best interests.  Today’s settlement is a positive step that will help save lives, as well as protect taxpayers’ money, in Tennessee and across the United States.”

“As evidenced here, we will use all available resources, including civil remedies, to pursue those whose actions continue to fuel the opioid epidemic plaguing our nation,” said U.S. Attorney Cochran.  “In this case, a concerned whistleblower brought a civil suit which has ultimately held those responsible for the illicit prescribing of opioids and at the same time cheating the taxpayers by causing federal healthcare programs to pay for such highly addictive drugs.  We will continue to give the highest priority to fighting opioid abuse on all fronts.”

The settlement with Anderson and PMC resolves the governments’ claims that from 2011 through 2014, they caused pharmacies to submit requests for Medicare and TennCare payments for pain killers, including opioids, which were dispensed based upon prescriptions written at the Cookeville Center for Pain Management and which had no legitimate medical purpose.  The United States also contended that Anderson caused all four clinics to bill Medicare for upcoded claims for office visits that were not reimbursable at the levels sought.  In addition, the United States claimed that Anderson and PMC caused the submission of Medicare claims by the Cookeville and Harriman clinics for services provided by two nurse practitioners who were not collaborating with a physician as required by Tennessee law during parts of 2011 and 2012.

Under the settlement agreement, Anderson and PMC paid a total of $1,450,000, plus interest.  Of that amount, the United States will receive $1,040,275, and the State of Tennessee will receive $163,225.  Anderson and PMC also agreed to be excluded from billing federal health care programs for five years.  Three of the clinics will also forfeit $53,840, which the United States seized from the clinics’ bank accounts.

The settlement agreement also calls for Cindy Scott, a nurse practitioner from Nashville, to pay $32,000 and to surrender her DEA registration until October 2021.  Scott is prohibited from prescribing medications until her DEA registration is renewed.

“The opioid epidemic has had a crushing effect on patients and families across middle Tennessee,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “Pill mills like these billed medically unnecessary services to Medicare and TennCare and contributed to problems of opioid abuse and addiction.”

The United States and Tennessee initiated this investigation after a former office manager for the Cookeville Center for Pain Management filed a qui tam lawsuit against Anderson, Scott, three pain clinics, and others.  The qui tam, or whistleblower, provisions of the False Claims Act allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery.   The whistleblower will receive $246,500 under the settlement with Anderson and lesser amounts under the settlements with Scott and the three pain clinics.

The case was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office and investigated by the Department of Health and Human Services – Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit.  Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States, and Assistant Attorney General Philip Bangle represented the State of Tennessee.

The case is docketed as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.).  The claims in the complaint are allegations only, and there has been no determination of liability.

Source: United States Attorneys General

Headline: Rapid City Woman Indicted for Defrauding the Rapid City Club for Boys

United States Attorney Ronald A. Parsons, Jr. announced that a Rapid City, South Dakota, woman was charged in federal district court with 20 counts of Wire Fraud and 5 counts of Money Laundering.

Olivia Kuehner, age 48, was charged on January 23, 2018. She appeared before U.S. Magistrate Judge Daneta Wollmann on January 26, 2018, and pleaded not guilty to the charges. The maximum penalty on each count upon conviction is 20 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.

The indictment alleges that Kuehner, between September 2012 and June 2017, while employed as the accounting manager for the Rapid City Club for Boys, Inc. (“Club for Boys”), devised a scheme to defraud the Club for Boys of more than $120,000.00. The indictment alleges Kuehner embezzled money belonging to the Club for Boys by making fraudulent payments to herself, family members, and a nominee entity she controlled, and then omitted the fraudulent payments from the Club for Boys’ accounting records or misclassified the payments to make it appear vendors or other employees had been paid. After receiving the fraudulently obtained funds, Kuehner transferred a portion of the funds to other bank accounts she controlled in order to conceal the nature, source and ownership of the embezzled proceeds.

The charges are merely an accusation and Kuehner is presumed innocent until and unless proven guilty.

The investigation is being conducted by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and Rapid City Police Department. Assistant United States Attorney Benjamin Patterson is prosecuting the case.

Kuehner was detained pending a hearing on Monday, January 29, 2017. A trial date has not been set.