Source: United States Attorneys General

Headline: Wheeling man admits to firearm, methamphetamine charges

WHEELING, WEST VIRGINIA – A Wheeling, West Virginia, man has admitted to firearm and drug charges, United States Attorney Bill Powell announced.

Peter Hankish, age 57, was indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession with Intent to Distribute Methamphetamine.” Hankish, having previously been convicted of Theft in the Camp Lejeune Marine Corps General Court, possessed a 7.62 caliber rifle. Hankish admitted to possessing methamphetamine. The crimes occurred in April 2017 in Ohio County.

Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.

Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
 

Source: United States Attorneys General

Headline: Providence Felon Detained on Ammunition Charge

PROVIDENCE, RI –  Eric Valdez, 28, of Providence, was ordered detained in federal custody at his arraignment on Monday in U.S. District Court in Providence on an indictment charging him with being a felon in possession of ammunition.

The indictment, announced United States Attorney Stephen G. Dambruch; Providence Police Chief Colonel Hugh T. Clements, Jr., and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, was brought as a result of a Project Safe Neighborhoods investigation.

 Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.

According to court records, in September 2011, Eric Valdez was convicted in federal court of possession of a stolen firearm, possession of a firearm with an obliterated serial number, and resisting arrest by a federal agent. He was sentenced to 14 months imprisonment, to be followed by 3 years supervised release.

After Valdez was released from prison, in 2013 in Rhode Island state court Valdez was convicted of assault, trafficking cocaine and other offenses.  He received an additional 9 months federal sentence for violating the terms of his supervised release.

According to court records and information presented to the courts, in November 2017, Valdez was in a vehicle with two other men where Providence Police located a loaded 9mm handgun. A court authorized search of Valdez’ residence executed simultaneously resulted in the seizure of two bags containing 9mm ammunition and a digital scale containing drug residue. As a result of the Project Safe Neighborhoods investigation, Valdez was arrested on a state charge of trafficking heroin by the Providence Police.  He was charged by way of a federal indictment with being a felon in possession of ammunition. Valdez pleaded guilty to a lesser drug possession state charge and was sentence to 3 months to serve at the ACI. Valdez appeared for arraignment in U.S. District Court on Monday on the federal indictment and was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of the most recent alleged incident resulting in the federal charge brought in this matter.

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Source: United States Attorneys General

Headline: Bank Teller Pleads Guilty to Conspiracy to Rob Bank

U.S. Attorney Duane A. Evans announced that ZOE WILLIAMS, age 25, has pleaded guilty to one count of Conspiracy to Commit Bank Robbery with a Firearm in violation of Title 18, U.S.C. Section 371.  The defendant faces a maximum sentence of five (5) years in the Bureau of Prisons, three (3) years of supervised release, a fine of up to $250,000, and restitution to the victim bank in this case.

 

WILLIAMS admitted that she was working as a teller at the Chase Bank drive-up location at the intersection of Gentilly Boulevard and Elysian Fields Avenue in New Orleans in December of 2014, when she gave her boyfriend, Casey Johnson, and his associates information on how to rob the bank.  On December 20, 2014, Casey Johnson acted as the get-away driver when his brother, Walter Johnson, and friend, Jay Lyons, entered the Chase Bank drive-up location at the intersection of Gentilly Boulevard and Elysian Fields Avenue and robbed the tellers at gunpoint of $196,715 in cash.               

 

The U.S. Attorney wishes to thank the hard work of the FBI’s Violent Crime Unit in investigating this matter.  Assistant United States Attorneys Myles Ranier and David Haller are in charge of the prosecution.

Source: United States Attorneys General

Headline: Sioux City Man to Federal Prison for Meth Conspiracy

A man who conspired with others to distribute methamphetamine was sentenced January 29, 2018, to more than seven years in federal prison.

 

Daniel Hodges, 35, from Sioux City, Iowa, received the prison term after a September 15, 2017, guilty plea to conspiracy to distribute methamphetamine.

 

At the guilty plea, Hodges admitted he was involved in a conspiracy that distributed more than a pound of methamphetamine in the Sioux City area from January 2017 through about April 29, 2017.  During a traffic stop on April 29, 2017, officers seized over 90 grams of actual (pure) methamphetamine from Hodge’s person.

 

Hodges was sentenced in Sioux City by United States District Court Chief Leonard T. Strand.  Hodges was sentenced to 90 months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a 4-year term of supervised release after the prison term.  There is no parole in the federal system.

 

Hodges is being held in the United States Marshal’s custody until he can be transported to a federal prison.

 

The case was prosecuted by Special Assistant United States Attorney Mikala M. Steenholdt and investigated by the Tri-State Drug Task Force consisting of officers from the Sioux City Police Department, South Sioux City Police Department, Woodbury County Sheriff’s Office, Iowa Division of Narcotics Enforcement, Drug Enforcement Administration, Iowa Criminalistics, and Bureau of Alcohol, Tobacco, Firearms and Explosives. 

 

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

The case file number is 17-4044.  Follow us on Twitter @USAO_NDIA.

Source: United States Attorneys General

Headline: Milford Man With Long Criminal History Sentenced to Federal Prison for Methamphetamine Conspiracy

A man who conspired to distribute methamphetamine was sentenced on January 29, 2018, to 15 years in federal prison.

 

Justin Stephen Ries, 49, from Milford, Iowa, received the prison term after a September 15, 2017, guilty plea to one count of conspiracy to distribute methamphetamine.

 

At sentencing and during prior court proceedings, the government presented evidence that on June 12, 2017, law enforcement executed three search warrants and seized a total of 380.5 grams of methamphetamine, 169.76 grams of marijuana, 0.51 grams of fentanyl/heroin, two fentanyl transdermal patches, 29 unused syringes, fifteen shotgun shells, and $24,874.00 in U.S. currency from Ries.  Evidence also showed that Ries accumulated 31 criminal convictions during his lifetime, including convictions for felony drug offenses, violent assaults, and driving while intoxicated.

 

Ries was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Ries was sentenced to 180 months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a 6-year term of supervised release after the prison term.  There is no parole in the federal system.

 

Ries is being held in the United States Marshal’s custody until he can be transported to a federal prison.

 

The case was prosecuted by Special Assistant United States Attorney Ajay J. Alexander and investigated by the Iowa Great Lakes Drug Task Force, specifically the Clay County Sheriff’s Office, the Spencer Police Department, and the Iowa Department of Criminal Investigations. 

 

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

The case file number is 17-CR-4043-LTS.

 

Follow us on Twitter @USAO_NDIA.

Source: United States Attorneys General

Headline: Southern Meat Market Proprietor Indicted on Federal Food Stamp Fraud, Theft and Conspiracy Charges

 

Memphis, TN – On January 11, 2018, a federal grand jury charged one defendant with defrauding the federal Supplemental Nutrition Assistant Program (“SNAP”), formerly known as the food stamp program. United States Attorney D. Michael Dunavant announced the indictment today.

According to the indictment, from at least January 2015 through April 2017, Guy Randal Stockard, 59, a/k/a/ “Randy,” owned and operated Southern Meat Market, a small retail meat market in Memphis, Tennessee. Southern Meat Market was authorized to accept federal SNAP benefits from customers as payment for eligible food items. Customers could access and redeem their benefits using Electronic Benefits Transfer (“EBT”) cards.

During that same period, Stockard allegedly used Southern Meat Market to conduct fraudulent SNAP benefit transactions with an estimated total value of at least $1.2 million. To carry out the fraud, Stockard bought customers’ SNAP benefits at a discount in exchange for cash. Stockard then redeemed those SNAP benefits at their full monetary face value.

Stockard is charged with one count of conspiracy to commit SNAP benefit fraud and theft of government property, one count of SNAP benefit fraud, and one count of theft of government property.

If convicted, the defendant faces a maximum of 20 years imprisonment, a $250,00 fine and 3 years supervised release. The United States is also seeking criminal forfeiture in this case.

This case is being investigated by the United States Department of Agriculture – Office of the Inspector General and the United States Secret Service.

Assistant U.S. Attorney Murre Foster is prosecuting this case on the government’s behalf.

The charges and allegations in this indictment are merely accusations, and the defendant is innocent unless and until proven guilty.

Source: United States Attorneys General

Headline: St. Francis Man Indicted on Assault Charges

United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.

John Matthew Brave Hawk, age 20, was indicted on January 17, 2018.  He appeared before U.S. Magistrate Judge Mark A. Moreno on January 29, 2018, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on November 14, 2017, Brave Hawk assaulted three individuals with a vehicle, with the intent to do bodily harm.

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

The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.   

Brave Hawk was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

Source: United States Attorneys General

Headline: Jamaican National Arrested for Aggravated Identity Theft

BOSTON – A Jamaican national was arrested last night for misuse of a Social Security number and aggravated identity theft.

 

Basil Ledgister, 41, was indicted on one count of misuse of a Social Security number and one count of aggravated identity theft. He will appear in federal court in Boston before U.S. District Court Magistrate Judge Jennifer C. Boal today at 2:45 p.m.

According to the indictment unsealed today, in January 2015, Ledgister falsely represented that a Social Security number belonging to another person was his in an application for a license at the Registry of Motor Vehicles. The indictment further alleges that Ledgister committed aggravated identity theft by using the Social Security number of another person in committing the crime of false representation of a Social Security number.

False representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence, one year of supervised release, and a fine of $250,000. 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; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; Scott Antolik, Special Agent in Charge of the Social Security Administration Office of Inspector General; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Rob Richardson of Lelling’s Major Crimes Unit is 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: 73 Year Old Pennsylvania Woman Sentenced To 21 Months In Prison For Wire Fraud

                                                                        

FOR IMMEDIATE RELEASE                                           Contact ELIZABETH MORSE

www.justice.gov/usao/md                                                     at (410) 209-4885      

Greenbelt, Maryland – On January 26, 2018, United States District Judge Paula Xinis sentenced Margie Lou Franz, age 73, of Warfordsburg, Pennsylvania to 21 months in prison, followed by three years of supervised release, for wire fraud. Xinis also ordered Franz to pay $970,964.76 in restitution. 

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Rene Febles, Deputy Inspector General for Investigations for the Federal Housing Finance Agency, Office of Inspector General.

  

According to her plea agreement,  Franz managed the day-to-day operations of a title company (Title Company A) located in Laurel, Maryland where she prepared paperwork for settlements (including HUD-1s and disbursement statements), conducted settlements, controlled the escrow account, and conducted banking transactions.

  

From at least June 2013 through November 2014, instead of disbursing funds as required by the HUD-1s for those real estate transactions, Franz transferred money through wires or checks to herself and other individuals not listed on the HUD-1s, paid outstanding debts on prior transactions for which Franz had not made proper disbursements, or paid off loans to individuals from whom Franz had previously borrowed money to cover shortfalls in Account 3542. Franz caused at least $970,964.76 in combined losses.

 

In June 2013, Franz used the Title Company A to handle the closing of her house in Annapolis, Maryland.  At the time of the sale of the property, there were three liens on the property, however Franz only disclosed one of the loans. At the time of the closing, the buyers believed that the property was only encumbered by one lien that would be paid off as part of the transaction as reflected on the HUD-1.  The disbursement statement, prepared by Franz, also reflected that a payment was made to the bank. 

 

On June 12, 2013, Franz caused a wire of approximately $502,949.51 to be sent from the buyer’s lender to the Title Company A, with the understanding that a portion of the loan from the bank was supposed to be used to pay off the existing lien on the property. Franz never actually disbursed any money from Title Company A’s escrow account.  Instead, Franz issued a $100,000 check to her husband and a $77,724.65 check jointly to her and her husband.

 

From June 2013 through January 2015, Franz continued to make monthly payments on the existing lien on the property held by Citibank to hide the fact that the lien had not been paid off when the buyers bought the property.  By January 2015, however, Franz could no longer keep up with the payments and the bank sent a foreclosure notice to buyers. 

 

In October 2014, an individual in Derwood, Maryland hired Title Company B to refinance their home loan.  As part of the closing, Title Company B was to pay off five existing liens, held by three separate banks. In October 2014, Franz contacted Employee 1 at Title Company B and instructed Employee 1 to wire a large portion of the proceeds from the individuals refinancing to Title Company A’s escrow account and then permit Franz to handle the disbursements.  This arrangement was contrary to the instructions in the HUD-1 settlement statement for the refinancing.  Neither Franz nor Employee 1 sought Individual 1’s permission for this new arrangement.  Franz told Employee 1 that Franz needed the money in Title Company A’s escrow account for a few days to cover some costs and that Franz then would pay the liens held by CitiMortgage and Chase.

 

Employee 1 made two separate wire transfers from Title Company B’s escrow account to Title Company A’s escrow account.  On October 6, 2014, Franz caused Title Company B to wire $328,277.36 from a Virginia bank to a North Carolina account held by Title Company A.  On October 23, 2014, Franz caused Title Company B to wire $121,751.67 from another Virginia bank to a North Carolina account held by Title Company A.  Franz did not pay off the existing liens on Individual 1’s properties.  Instead, Franz paid off some of the existing debts on prior transactions and paid off some loans Franz had taken for prior shortfalls. 

 

Acting United States Attorney Stephen M. Schenning praised Federal Housing Finance Agency, Office of Inspector General for their work in the investigation.  Mr. Schenning thanked Assistant United States Attorney’s Kristi O’Malley and Kelly O’Connell Hayes, who prosecuted the case.

 

Source: United States Attorneys General

Headline: Tampa’s Largest Ambulance Providers Agree To Pay $5.5 Million To Resolve False Claims Act Allegations Regarding Medically Unnecessary Ambulance Transports

Tampa, FL – United States Attorney Maria Chapa Lopez announces that AmeriCare Ambulance Service, Inc. and its sister company, AmeriCare ALS, Inc. (collectively, AmeriCare), have agreed to pay approximately $5.5 million to resolve allegations that they defrauded Medicare by billing for medically unnecessary ambulance transportation services.

 

“Fraudulently billing the government for medically unnecessary ambulance transports poses a heavy drain on the Treasury, deprives federal health care programs of valuable resources, and will not be tolerated,” said U.S. Attorney Chapa Lopez. “This lawsuit and today’s settlement evidence our office’s ongoing efforts to safeguard federal health care program beneficiaries from the effects of this type of unlawful conduct.”

 

According to a complaint filed by the government last year, from January 2008 through December 2016, AmeriCare submitted fraudulent claims to Medicare and TRICARE for Basic Life Support (BLS), non-emergency ambulance transports that were not medically justified. In support of these allegations, the government cited information regarding unwarranted ambulance transports it had received from numerous AmeriCare employees, as well as audits conducted by the agencies that administer Medicare and TRICARE. The government also cited damaging testimony it had elicited under oath from members of AmeriCare’s management team during the course of the investigation. This testimony, along with the other evidence obtained by the government, revealed that AmeriCare had engaged in a systemic practice – over many years – of submitting fraudulent claims to the government falsely attesting to the medical necessity of its non-emergent, BLS ambulance transports. That proof also revealed that AmeriCare had created thousands of false reports and other documentation during this time period, in a failed effort to support this illicit practice. 

 

In addition to paying approximately $5.5 million, AmeriCare has also agreed to enter into an integrity agreement with the Inspector General of the U.S. Department of Health and Human Services. 

 

“Medical service providers who engage in systemic fraud at the core of their business levy an assault on federal health care programs and the American taxpayer,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “In spite of often false medical documents, the OIG and our partners will not be deterred in our efforts to root out this type of fraud and protect the American public.”

 

“This settlement demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service and our law enforcement partners to ensure that medical service providers do not bill for unnecessary services that divert and waste precious taxpayer dollars,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse that negatively impacts critical programs such as TRICARE.” 

           

This settlement concludes a lawsuit originally filed by a former AmeriCare employee, Ernest Sharp. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act that permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did here. Mr. Sharp will receive roughly $1.15 million of the proceeds of the settlement with AmeriCare. 

 

This settlement illustrates the government’s emphasis on combating health care fraud and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800.447.8477). 

           

The case is captioned United States, et al. ex rel. Sharp v. AmeriCare Ambulance, Case No. 8:13-cv-1171-T-33AEP. The settlement resolves the United States’ claims in that case.  The claims resolved by the settlement are allegations only and there has been no determination of liability.

The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the HHS-OIG and the Defense Criminal Instigative Service. It was handled by Assistant United States Attorney Christopher P. Tuite.