Gregory Viola Arrested on Federal Criminal Complaint Charging by jennyyingdi

VIEWS: 200 PAGES: 8

									Federal Criminal Defense Lawyers                            Friday, August 12, 2011                                      www.McNabbAssociates.com


Gregory Viola Arrested on a Federal Criminal
Complaint Charging Him with Mail Fraud
McNabb Associates, P.C. (Federal Criminal Defense   with a purported E-Trade account                  regulatory partners announced the
Lawyers)
                                                    statement representing that the investor          formation of the Connecticut Securities,
Submitted at 6:51 AM August 12, 2011
                                                    had in excess of $300,000 on account with         Commodities and Investor Fraud Task
 The U.S. Attorney’s Office District of             VIOLA. Subsequent investigation by law            Force, which is investigating matters
Connecticut on August 11, 2011 released             enforcement has revealed that this                relating to insider trading, market
the following:                                      statement is false, and E-Trade has no            manipulation, Ponzi schemes, investor
“ORANGE RESIDENT CHARGED                            record of an account in the investor’s            fraud, financial statement fraud, violations
WITH DEFRAUDING INVESTORS                           name.                                             of the Foreign Corrupt Practices Act, and
 David B. Fein, United States Attorney for           VIOLA voluntarily surrendered himself            embezzlement. The Task Force includes
the District of Connecticut, and Kimberly           this afternoon and appeared before United         representatives from the U.S. Attorney’s
K. Mertz, Special Agent in Charge of the            States Magistrate Judge William I.                Office; Federal Bureau of Investigation;
New Haven Division of the Federal                   Garfinkel in Bridgeport. He was released          Internal Revenue Service – Criminal
Bureau of Investigation, announced that             on a $100,000 bond, which is secured by           Investigation; U.S. Secret Service; U.S.
GREGORY VIOLA, 59, of Orange, was                   two properties.                                   Postal Inspection Service; U.S.
arrested today on a criminal complaint               U.S. Attorney Fein and FBI Special               Department of Justice’s Criminal
charging him with mail fraud. The charge            Agent in Charge Mertz noted that the              Division, Fraud Section and Antitrust
stems from an alleged scheme to defraud             investigation into this alleged scheme is         Division; U.S. Securities and Exchange
investors of at least hundreds of thousands         ongoing, and asked individuals who                Commission (SEC); U.S. Commodity
of dollars via a Ponzi scheme.                      believe they may be a victim of this              Futures Trading Commission (CFTC);
 According to court documents and                   scheme, or anyone with information                Office of the Special Inspector General for
statements made in court, VIOLA                     related to this scheme, to contact FBI            the Troubled Asset Relief Program
operated an investment business in                  Special Agent Wendy Bowersox at (203)             (SIGTARP); Office of the Chief State’s
Orange. It is alleged that since as early as        777-6311.                                         Attorney; State of Connecticut
2007, VIOLA engaged in a scheme to                   If convicted, of mail fraud, VIOLA faces         Department of Banking; Greenwich Police
defraud multiple investors by not                   a maximum term of imprisonment of 20              Department and Stamford Police
investing funds as he had represented. As           years.                                            Department.”
part of the scheme, it is alleged that               U.S. Attorney Fein stressed that a                To find additional federal criminal news,
VIOLA promised his investors that their             complaint is only a charge and is not             please read Federal Criminal Defense
funds would be invested, and that they              evidence of guilt. The defendant is               Daily.
would receive a specified rate of return on         entitled to have this matter presented to a        Douglas McNabb and other members of
the investments as well as the potential for        grand jury and, in the event an indictment        the U.S. law firm practice and write
the investment to appreciate. Rather than           is returned, he is entitled to a trial at which   extensively on matters involving Federal
invest funds provided by investors, it is           it will be the Government’s burden to             Criminal Defense, INTERPOL Red
alleged that VIOLA engaged in a Ponzi               prove guilt beyond a reasonable doubt.            Notice Removal, International Extradition
scheme in which he used new investor                 This matter is being investigated by the         and OFAC SDN List Removal.
funds to make payments to earlier                   Federal Bureau of Investigation, with the          The author of this blog is Douglas
investors. It is also alleged that VIOLA            assistance of the Stamford Police                 McNabb. Please feel free to contact him
mailed investors fraudulent statements              Department. The case is being prosecuted          directly at
that falsely represented the amount of              by Senior Litigation Counsel Richard J.           mcnabb@mcnabbassociates.com or at one
funds that the investors had on account.            Schechter.                                        of the offices listed above.
 The criminal complaint specifically                 In December 2010, the U.S. Attorney’s
alleges that VIOLA provided one investor            Office and several law enforcement and
Former Member of Virginia House of Delegates                                                          Former NASDAQ Managing
                                                                                                      Director Sentenced to 42 Months
Sentenced to 114 Months in Prison for Bribery and                                                     in Prison for Insider Trading
Extortion                                                                                             (USDOJ: Justice News)
(USDOJ: Justice News)                               exchange for introducing a budget                 Submitted at 11:06 AM August 12, 2011

Submitted at 1:15 PM August 12, 2011                amendment to fund the position,                    Donald Johnson, a former managing
 Phillip A. Hamilton, a former member of            announced Assistant Attorney General              director of the NASDAQ Stock Market,
the Virginia House of Delegates, was                Lanny A. Breuer of the Justice                    was sentenced today to 42 months in
sentenced today to 114 months in prison             Department’s Criminal Division and U.S.           prison for engaging in insider trading on
after he was previously convicted of                Attorney Neil H. MacBride for the                 multiple occasions based on material, non-
soliciting employees of Old Dominion                Eastern District of Virginia.                     public information he obtained in his
University (ODU) for a paid position in                                                               capacity as a NASDAQ executive.
2                Federal Criminal                                                                      Federal Criminal Defense Lawyers

Roxanne Janel Jones and Taj A. Isaiah Indicted by a Kansas
City Federal Grand Jury for Conspiracy and Wire Fraud. Jones
is also Charged with Mail Fraud and Aggravated Identity Theft.
McNabb Associates, P.C. (Federal Criminal Defense   KU Medical Center, the hospital told the        years in federal prison and a fine up to
Lawyers)
                                                    couple there was no record of Jones             $250,000.
Submitted at 8:35 AM August 12, 2011
                                                    giving birth. When Jones tried to renew          Possession with intent to distribute crack
 The U.S. Attorney’s Office District of             the talk of adoption, she told the couple at    cocaine: A maximum penalty of 20 years
Kansas on August 11, 2011 released the              various times she had been diagnosed with       and a fine up to $1 million.
following:                                          a brain tumor and she had been injured in        Unlawful possession of a firearm in
“Indictment: Adoption Fraud                         a car accident.                                 furtherance of drug trafficking: Not less
 Targeted Would-Be Parents For Cash,                 Upon conviction, the crimes carry the          than five years and not more than life and
Gifts                                               following penalties:                            a fine up to $250,000.
 KANSAS CITY, KAN. – A Kansas City                   Conspiracy: A maximum penalty of 20             Unlawful possession of a firearm after a
woman and a man who allegedly posed as              years in federal prison and a fine up to $1     felony conviction: A maximum penalty of
her boyfriend have been indicted on                 million.                                        10 years and a fine up to $250,000.
charges of running an adoption scam in               Wire fraud: A maximum penalty of 20             The Kansas City, Kan., Police
which she pretended to be pregnant with             years in federal prison and a fine up to $1     Department and the Bureau of Alcohol,
twins and willing to let them be adopted in         million on each count.                          Tobacco, Firearms and Explosives
return for money and gifts, U.S. Attorney            Mail fraud: A maximum penalty of 20            investigated. Assistant U.S. Attorney
Barry Grissom said today.                           years in federal prison and a fine up to $1     Sheri McCracken is prosecuting.
 The indictment alleges the defendants              million on each count.                           John B. Holmes, 34, is charged with one
defrauded 14 couples who spent money                 Aggravated identity theft: A mandatory         count of unlawful possession of a firearm
hiring attorneys and adoption agencies,             two years consecutive to other sentences        in furtherance of drug trafficking, one
purchasing airline tickets, booking hotel           and a fine up to $250,000.                      count of possession with intent to
rooms and making gifts they believed                 The Overland Park Police Department            distribute marijuana within 1,000 feet of
would pave the way for them to adopt.               and the U.S. Secret Service investigated.       Olathe North High School, one count of
 Roxanne Janel Jones, 34, Kansas City,              U.S. Attorney Barry Grissom and                 unlawful possession of a firearm after a
Mo., and Taj A. Isaiah, 28, Kansas City,            Assistant U.S. Attorney Chris Oakley are        felony conviction, and one count of
Mo., are charged with one count of                  prosecuting.                                    maintaining a residence for the purpose of
conspiracy and four counts of wire fraud.            OTHER INDICTMENTS                              drug trafficking. The crimes are alleged to
In addition, Jones is charged with three             A grand jury meeting in Kansas City,           have occurred March 17, 2011, in Johnson
counts of mail fraud and one count of               Kan., also returned the following               County, Kan.
aggravated identity theft.                          indictments:                                     Upon conviction the crimes carry the
 Jones initially was charged in a criminal           Craig Williams, 21, is charged with one        following penalties:
complaint filed April 13, 2011, in U.S.             count of possession with intent to               Unlawful possession of a firearm in
District Court in Kansas City.                      distribute crack cocaine and one count of       furtherance of drug trafficking: Not less
 The indictment alleges Isaiah was an               unlawful possession of a firearm in             than five years and not more than life and
acquaintance of Jones who helped her                furtherance of drug trafficking. The            a fine up to $250,000.
with the scam by pretending at various              crimes are alleged to have occurred April        Possession with intent to distribute within
times to be her husband, her boyfriend or           28, 2011, in Kansas City, Kan.                  1,000 feet of a school: Not less than one
her landlord. The indictment alleges the             If convicted, he faces a penalty of not less   year and not more than 10 years and a fine
defendants defrauded couples from                   than 5 years and not more than 40 years in      up to $50,000.
California, Georgia, Massachusetts,                 federal prison and a fine up to $5 million       Unlawful possession of a firearm after a
Minnesota, New York and Tennessee, as               on the possession with intent to distribute     felony conviction: A maximum penalty of
well as Bonner Springs, Kan., Olathe,               charge, and a penalty of not less than 5        10 years and a fine up to $250,000.
Kan., Shawnee, Kan., Leavenworth, Kan.,             years and not more than life and a fine up       Maintaining a residence in furtherance of
and Florence, Kan.                                  to $250,000 on the firearms charge. The         drug trafficking: Not less than one year
 In one case, the indictment alleges, Jones         Kansas City, Kan., Police Department and        and not more than 40 years and a fine up
contacted American Adoptions, an                    the Bureau of Alcohol, Tobacco, Firearms        to $1 million.
adoption agency in Overland Park, Kan.,             and Explosives investigated. Assistant           The Olathe Police Department and the
claiming to be pregnant with twin boys              U.S. Attorney Scott Rask is prosecuting.        Bureau of Alcohol, Tobacco, Firearms
and willing to give them up for adoption.            Jeffrey Whitmore, 37, Kansas City, Kan.,       and Explosives investigated. Assistant
Jones told the company’s adoption                   is charged with one count of possession         U.S. Attorney Sheri McCracken is
specialist she needed help with rent and            with intent to distribute marijuana, one        prosecuting.
groceries. As a result, a couple in                 count of possession with intent to               Jimmy A. Barnes, 41, Iola, Kan., and
Minnesota wired $16,265 to an escrow                distribute crack cocaine, one count of          Stacy Lynn Burdine, 42, Iola, Kan., are
account in Kansas City and the adoption             unlawful possession of a firearm in             charged with two counts of distributing
agency began drawing from the account to            furtherance of drug trafficking and one         methamphetamine and one count of
make payments to Jones.                             count of unlawful possession of a firearm       possession with intent to distribute
 In another case, the indictment alleges, a         after a felony conviction. The crimes are       methamphetamine. In addition, Barnes is
California couple flew to Kansas City               alleged to have occurred July 20, 2011, in      charged with one count of unlawful
where they took Jones and Isaiah to dinner          Kansas City, Kan.                               possession of a firearm in furtherance of a
and bought Jones massages, a haircut,                Upon conviction, the crimes carry the          drug trafficking crime, one count of
groceries and meals. When Jones sent                following penalties:                            unlawful possession of a sawed off
them texts to say the twins had been born            Possession with intent to distribute                        ROXANNE page 4
and could be picked up at the nursery at            marijuana: A maximum penalty of five
Federal Criminal Defense Lawyers                                                                                     Federal Criminal       3

Health Insurance Executives Indicted in a
Superseding Indictment Unsealed in Boston
Federal Court
McNabb Associates, P.C. (Federal Criminal Defense   references to prospective clients; the          basic scheme is that when Messrs. Gaetani
Lawyers)
                                                    conspirators invented fictitious companies      and Cassandro discovered Mr.
Submitted at 7:06 AM August 12, 2011
                                                    and fabricated documents, including             Brettschneider’s alleged fraud, instead of
 The U.S. Attorney’s Office District of             employee wage reports, in order to              reporting his fraud to law enforcement
Massachusetts on August 11, 2011                    disguise their “carving out” of employees       authorities, they allegedly chose to look
released the following:                             with expensive medical conditions; the          the other way. By doing so, they, and
“HEALTH INSURANCE EXECUTIVES                        conspirators impersonated insured               other employees who also knew of the
INDICTED                                            employees in telephone calls.                   fraud, placed the health and well-being of
 BOSTON, Mass…Seven men and two                      The indictment also charges                    those insured by HMA Direct at risk. The
women have been indicted for a wide                 BRETTSCHNEIDER with intentionally               joint investigation of the financial fraud
array of crimes committed between 2006              misapplying funds that clients had              aspect of this case should be a warning to
and 2010 through a Massachusetts health             entrusted to HMA Direct to pay health           managers in private and public companies
insurance company that did business as              claims. According to the indictment,            that not reporting illegal conduct has
HMA Direct.                                         HMA Direct’s controller calculated that         severe repercussions,” said Richard
 The 29-count superseding indictment                by May 2009, BRETTSCHNEIDER had                 DesLauriers, Special Agent in Charge of
unsealed today in Federal court brings              shortchanged the account that held client       the Federal Bureau of Investigation,
charges against several senior executives           claims moneys by more than $1.7 million.        Boston Field Office.
of the company, including former Chief              At the same time, BRETTSCHNEIDER                “This criminal action demonstrates the
Executive Officer JEDEDIAH L.                       allegedly used money from HMA Direct            Labor Department’s resolve to vigorously
BRETTSCHNEIDER, 35, of Phoenix.                     to purchase the following: a membership         enforce the laws to ensure that those who
The indictment also charges several of the          at an exclusive golf club ($86,945); a          scheme, misappropriate, misrepresent and
principal investors in the company.                 BMW that he used during personal time           deceive small business self-insured health
 At the heart of the conspiracy charged in          ($23,049); clothing from Neiman Marcus,         plans as well as the health insurance
the indictment was HMA Direct’s practice            including Armani and Zegna apparel              market for their own financial gain are
of excluding from coverage, or “carving             ($13,492); cigars ($3,627 over an 18-           brought to justice,” said Edward Maloney,
out,” clients with health risks so severe           month period); and a night at the luxury        Acting Director of the Boston Regional
that they might interfere with HMA                  New York Palace Hotel on New Year’s             Office for the U.S. Department of Labor,
Direct’s bottom line. It is alleged that            Eve 2009 ($1,077).                              Employee Benefits Security
BRETTSCHNEIDER and many of the                       In addition, the indictment charges            Administration.
other defendants knew, such “carving out”           BRETTSCHNEIDER with embezzling a                “The U.S. Postal Inspection Service is
was illegal (albeit not criminal). It is            total of $401,724 from HMA Direct on            proud to join our law enforcement
alleged that BRETTSCHNEIDER and the                 two occasions in the spring of 2010.            partners in announcing this indictment,”
other defendants knew that in order to               Finally, the indictment charges                said Robert Bethel, Inspector in Charge of
succeed with a business model that relied           BRETTSCHNEIDER and co-defendants                the U.S. Postal Inspection Service. “The
on fundamentally unlawful behavior, they            SHELLEY LENKUTIS and RACHEL                     Postal Inspection Service has a long
needed to conceal important aspects of              ANGER with obstruction of justice.              standing commitment protecting
their business from clients, other health           According to the indictment, when HMA           consumers from fraud. This indictment
insurance companies and government                  Direct came under investigation by              sends a clear message to anyone who
agencies.                                           various state insurance regulators in the       would prey on the American consumer:
 The indictment alleges dozens of false             Spring of 2009, the defendants altered,         you will be caught and will be
statements and misrepresentations that the          destroyed, mutilated, and concealed             prosecuted.”
conspirators made in furtherance of their           documents in the company’s files that           “Today’s indictment serves as a stern
scheme. This includes that                          referred to “carve-outs.” For example, it is    warning to those who would commit
BRETTSCHNEIDER made false                           alleged that the defendants moved some          health care fraud against Employee
statements to several government agencies           incriminating documents – which they            Retirement Income Security Act covered
about his criminal background in order to           referred to as the “secret James Bond           employer benefit plans. The OIG remains
obtain insurance producer licenses; after           files” – to secluded parts of the building or   firmly committed to work with our law
BRETTSCHNEIDER’s criminal history                   to locations off-site. It is further alleged    enforcement partners to investigate these
received widespread publicity, he made              that the defendants and others also used        types of crimes,” stated Robert Panella,
further false statements about his                  white-out to cover up the word “carve-          Special Agent-in-Charge for the New
background to business associates in order          out”; shredded incriminating documents;         York Region of the U.S. Department of
to perpetuate the scheme; the conspirators          forged signatures; and created fake             Labor’s Office of Inspector General,
made false statements to clients in order to        documents.                                      Office of Labor Racketeering and Fraud
obtain health information to facilitate the          U.S. Attorney Carmen M. Ortiz noted,           Investigations.
“carving out” employees with expensive              “At a time when health insurance costs are       If convicted, BRETTSCHNEIDER faces
medical conditions; the conspirators                straining American workers and                  up to 20 years imprisonment on the
arranged for two HMA Direct investors,              businesses, we put a high priority on those     obstruction of justice count and on each
FRANCIS GAETANI, a/k/a “FRAN,” a/k                  who would profit by manipulating the            count of wire fraud; up to 10 years
/a “GUIDO” and RONALD ANGER, to                     system and by fraudulently dumping              imprisonment for each count of health
pretend that they were satisfied customers          expenses on others.”                                          HEALTH page 5
of the company and to provide fake                  “What is noteworthy about this otherwise
4                Justice FBI                                                                         Federal Criminal Defense Lawyers
ROXANNE
continued from page 2

shotgun, and one count of unlawful              Investigations investigated. Assistant U.S.    Michael E. Best, 46, Scammon, Kan., is
possession of a firearm while a user of         Attorney Jabari Wamble is prosecuting.        charged with one count of distributing
controlled substances. The crimes are            Manuel Amparan-Mendoza, a citizen of         Hydrocodone within 1,000 feet of a public
alleged to have occurred in January and         Mexico, is charged with three counts of       school and one count of possessing
February 2011 in Allen County, Kan.             possession and use of false documents and     Hydrocodone within 1,000 feet of a public
 Upon conviction, the crimes carry the          three counts of aggravated identity theft.    school. The crimes are alleged to have
following penalties:                            The crimes are alleged to have occurred at    occurred in June and July 2011 in
 Distributing methamphetamine: A                various times in 2008, 2010 and 2011 in       Cherokee County, Kan.
maximum penalty of 20 years and a fine          Sedgwick County, Kan.                          If convicted, he faces a penalty of not less
up to $1 million.                                If convicted, he faces a maximum penalty     than one year and not more than 20 years
 Possession with intent to distribute           of 10 years without parole and a fine up to   without parole and a fine up to $1 million
methamphetamine: A maximum penalty              $250,000 on each false document charge        on each count. The Cherokee County
of 20 years and a fine up to $1 million.        and a mandatory two years consecutive to      Sheriff’s Department and the Kansas
 Unlawful possession of a firearm in            any other sentence on each aggravated         Bureau of Investigation investigated.
furtherance of drug trafficking: Not less       identity theft count. The Wichita Police      Assistant U.S. Attorney Brent Anderson is
than 10 years and not more than life and a      Department and Immigration and Customs        prosecuting.
fine up to $4 million.                          Enforcement’s Homeland Security                Larry L. Lyons, 57, Wichita, Kan., is
 Unlawful possession of a sawed off             Investigations investigated. Assistant U.S.   charged with one count of fraudulently
shotgun: A maximum penalty of 10 year           Attorney Brent Anderson is prosecuting.       receiving Social Security Disability
and a fine up to $250,000.                       Laura Velasquez-Galvan, 26, a citizen of     Insurance benefits. The crime is alleged to
 Unlawful possession of a firearm by a          Mexico, is charged with one count of          have occurred Dec. 20, 2010, in Sedgwick
user of controlled substances: A                possession of false documents, three          County, Kan.
maximum penalty of 10 year and a fine up        counts of aggravated identity theft, one       If convicted, he faces a maximum penalty
to $250,000.                                    count of making a false statement on an I-    of five years without parole and a fine up
 The Kansas Bureau of Investigation             9 Employment Eligibility Verification         to $250,000. The Social Security
investigated. Special Assistant U.S.            form, and one count of misusing a Social      Administration – Office of Inspector
Attorney Aaron Smith is prosecuting.            Security card. The crimes are alleged to      General and the Kansas Department of
 Leon Smith, 54, is charged with one            have occurred in 2007 in Saline County,       Revenue investigated. Assistant U.S.
count of distributing child pornography         Kan.                                          Attorney Brent Anderson is prosecuting.
and one count of possessing child                Upon conviction, the crimes carry the         In all cases, defendants are presumed
pornography. The crimes are alleged to          following penalties:                          innocent until and unless proven guilty.
have occurred in June and November               Possession of false documents: A             The indictments merely contain
2010 in Leavenworth, Kan.                       maximum penalty of 10 years in federal        allegations of criminal conduct.”
 If convicted, he faces a penalty of not less   prison without parole and a fine up to         To find additional federal criminal news,
than five years and not more than 20 years      $250,000.                                     please read Federal Criminal Defense
and a fine up to $250,000 on the                 Aggravated identity theft: A mandatory       Daily.
distribution charge, and a maximum              two years in prison to run consecutively to    Douglas McNabb and other members of
penalty of 10 years and a fine up to            any other sentence on each count and a        the U.S. law firm practice and write
$250,000 on the possession charge. The          fine up to $250,000.                          extensively on matters involving Federal
FBI investigated. Assistant U.S. Attorney        False statement on an I-9 form: A            Criminal Defense, INTERPOL Red
Scott Rask is prosecuting.                      maximum penalty of five years without         Notice Removal, International Extradition
 Raul Zapata-Martinez, 35, a citizen of         parole and a fine up to $250,000.             and OFAC SDN List Removal.
Mexico, is charged with unlawfully re-           Misusing a Social Security number: A          The author of this blog is Douglas
entering the United States after being          maximum penalty of five years without         McNabb. Please feel free to contact him
deported. He was found July 20, 2011, in        parole and a fine up to $250,000.             directly at
Wyandotte County, Kan.                           The Salina Police Department and             mcnabb@mcnabbassociates.com or at one
 If convicted, he faces a maximum penalty       Immigration and Customs Enforcement’s         of the offices listed above.
of 20 years without parole and a fine up to     Homeland Security Investigations
$250,000. Immigration and Customs               investigated. Assistant U.S. Attorney
Enforcement’s Homeland Security                 Brent Anderson is prosecuting.
Former Owners of Florida Airline Fuel Supply and         FBI’s Top Ten News
Indiana Flight Management Services Companies Plead       Stories for the Week
Guilty in Schemes to Defraud Ryan International Airlines Ending August 12, 2011
(USDOJ: Justice News)                           services company pleaded guilty today to      fbi (Current)
Submitted at 2:47 PM August 12, 2011            participating in separate schemes to          Submitted at 6:00 AM August 12, 2011

 A former owner and operator of a Florida       defraud Ryan International Airlines, a        — Washington, D.C.
-based airline fuel supply service              charter airline company located in
company and a former owner and operator         Rockford, Ill.
of an Indiana-based flight management
Federal Court Shuts Down Chicago-Area Tax Return Preparer
(USDOJ: Justice News)                           A federal court has permanently barred a      business from preparing federal tax
Submitted at 3:42 PM August 12, 2011            woman and her suburban Chicago                returns for others.
Federal Criminal Defense Lawyers                                                                                      Federal Criminal        5
HEALTH
continued from page 3

care fraud, intentional misapplication of           institution by false representation,           charges, she faces up to 20 years
funds of a health care benefit program,             aggravated identity theft, and conspiracy.     imprisonment for obstruction of justice
theft or embezzlement in connection with            If convicted, O’BRIEN faces up to 20           and up to five years imprisonment for
health care, and making false material              years imprisonment on each count of wire       conspiracy.
statements to an insurance regulatory               fraud; up to10 years imprisonment for           RACHEL ANGER, 23, of Sutton,
agency; mandatory two year sentence,                each count of health care fraud; a             worked in the sales, third party
consecutive to the sentence he would                mandatory two year sentence, consecutive       administrative, and underwriting arms of
otherwise receive, for aggravated identity          to the sentence he would otherwise             the company. She is charged with health
theft; and up to five years imprisonment            receive, for aggravated identity theft; and    care fraud, wire fraud, obstruction of
on each of the remaining crimes.                    up to five years imprisonment for              justice and conspiracy. If convicted on
 MICHAEL CASSANDRO, 44, of                          conspiracy and obtaining customer              these charges, she faces up to 20 years
Middleton, R.I., owned part of HMA                  information from a financial institution by    imprisonment for wire fraud and
Direct and variously oversaw the sales and          false representation.                          obstruction of justice, up to 10 years
third party administrative arms of the               MARK CELENTANO, 60, of Ipswich,               imprisonment for health care fraud, and
company. CASSANDRO is charged with                  Mass., was both a sales agent for HMA          up to five years imprisonment for
health care fraud and conspiracy. If                Direct and a manager of other sales            conspiracy.
convicted on these charges, he faces up             agents. CELENTANO is charged with               U.S. Attorney Ortiz; SAC Panella; Acting
to10 years imprisonment for each count of           two counts of health care fraud, one count     Director Maloney; SAC DesLauriers; and
health care fraud and up to five years              of obstruction of a criminal investigation     Inspector in Charge Bethel made the
imprisonment on the conspiracy count.               of health care offenses and one count of       announcement today.
CASSANDRO is also subject to a fine of              conspiracy. If convicted on these charges,      The details contained in the indictment
up to $250,000 and up to three years of             CELENTANO faces up to 10 years                 are allegations. The defendants are
supervised release on each count.                   imprisonment for each count of health          presumed to be innocent unless and until
 FRANCIS GAETANI, a/k/a “FRAN,” a/                  care fraud and up to five years                proven guilty beyond a reasonable doubt
k/a “GUIDO”, 56, of Sutton, Mass., was              imprisonment on the obstruction and            in a court of law.”
an investor in HMA Direct. GAETANI is               conspiracy counts.                              To find additional federal criminal news,
charged with wire fraud and conspiracy. If           KEVIN BROWN, 46, of Stuart, Fla.,             please read Federal Criminal Defense
convicted on these charges, he faces up to          oversaw the underwriting arm of HMA            Daily.
20 years imprisonment for each count of             Direct. BROWN is charged with two               Douglas McNabb and other members of
wire fraud and up to five years                     counts of health care fraud, one count of      the U.S. law firm practice and write
imprisonment on the conspiracy count.               aggravated identity theft and one count of     extensively on matters involving Federal
 RONALD ANGER, 54, of Sutton, was an                conspiracy. If convicted on these charges,     Criminal Defense, INTERPOL Red
investor in HMA Direct. He is charged               he faces up to 10 years imprisonment for       Notice Removal, International Extradition
with wire fraud and one count of                    each count of health care fraud, up to five    and OFAC SDN List Removal.
conspiracy. If convicted on these charges,          years imprisonment on the conspiracy            The author of this blog is Douglas
he faces up to 20 years imprisonment for            count and a mandatory two year sentence,       McNabb. Please feel free to contact him
the wire fraud count and up to five years           consecutive to the sentence he would           directly at
imprisonment on the conspiracy count.               otherwise receive, for aggravated identity     mcnabb@mcnabbassociates.com or at one
 WILLIAM O’BRIEN, 47, of West                       theft.                                         of the offices listed above.
Barnstable, Mass. was both a sales agent             SHELLEY LENKUTIS, 37, of Waltham,
for HMA Direct and a manager of other               Mass., oversaw the underwriting arm of
sales agents. O’BRIEN is charged with               HMA Direct. LENKUTIS is charged with
wire fraud, health care fraud, obtaining            one count of obstruction of justice and one
customer information from a financial               count of conspiracy. If convicted on these


Richard Rufo Charged in a Federal Criminal
Complaint Alleging Disability Fraud
McNabb Associates, P.C. (Federal Criminal Defense    Richard Rufo, 49, was taken into custody      today:
Lawyers)
                                                    by special agents of the U.S. Treasury          In September 2008, Rufo reported that he
Submitted at 9:17 AM August 12, 2011
                                                    Department’s and Department of Labor’s         injured his back closing a gate at the mint,
 The U.S. Attorney’s Office District of             Offices of Inspector General, and is           and was unable to perform his duties as a
New Jersey on August 11, 2011 released              expected to make an initial appearance         result. He also declined an offer to take a
the following:                                      this afternoon before U.S. Magistrate          sedentary job at the mint, claiming it
“MINT POLICE OFFICER ARRESTED,                      Judge Ann Marie Donio in Camden                would be too strenuous. From September
CHARGED IN NEW JERSEY FOR                           federal court.                                 2008 through August 2011, Rufo received
ALLEGED DISABILITY FRAUD                             Rufo is charged by Complaint with one         compensation benefits of more than
 CAMDEN, N.J. – A police officer                    count of fraud against the United States,      $173,000.
employed by the U.S. Treasury at the                filed in connection with his alleged receipt    On three separate occasions since the
Philadelphia Mint was arrested this                 of approximately $173,000 in federal           reported injury, Rufo completed forms to
morning at his Mt. Laurel, N.J., residence          workers’ compensation benefits while           obtain federal workers’ compensation
for allegedly defrauding the government             making hundreds of thousands in                benefits on which he fraudulently claimed
by collecting disability benefits to which          unreported income running a memorabilia        that he had not worked for any employer
he was not entitled, U.S. Attorney                  business on the side.                                       RICHARD page 6
Fishman announced.                                   According to the Complaint unsealed
6               Federal Criminal                                                                      Federal Criminal Defense Lawyers

Herschel A. Breig and James Cheek Indicted by
a Lubbock Federal Grand Jury
McNabb Associates, P.C. (Federal Criminal Defense   and Secretary.                                 indictment further alleges that Breig and
Lawyers)
                                                     From March 2006 to May 2008, Cheek            Cheek continued to deduct the premiums
Submitted at 11:32 AM August 12, 2011
                                                    acted as HMC’s CEO, exercising control         from employees’ pay until June 2008,
 The U.S. Attorney’s Office Northern                over every aspect of HMC’s business            even though the Plans had been
District of Texas on August 11, 2011                affairs. During that same time period,         terminated.
released the following:                             Breig acted as HMC’s Senior Vice-               An indictment is an accusation by a
“FEDERAL GRAND JURY INDICTS                         President of Cash Management,                  federal grand jury, and a defendant is
FORMER OPERATORS OF                                 exercising control over HMC’s financial        entitled to the presumption of innocence
HIGHLAND MEDICAL CENTER IN                          business affairs, including the payment of     unless proven guilty. However, if
LUBBOCK, TEXAS, ON TAX AND                          taxes owed by HMC.                             convicted, each of the seven tax counts
EMBEZZLEMENT CHARGES                                 During this March 2006 to May 2008            carries a maximum statutory sentence of
 LUBBOCK, Texas — A federal grand                   time frame, according to the indictment,       five years in prison and a $250,000 fine.
jury in Lubbock, Texas, returned an                 Breig and Cheek caused HMC to make             The theft or embezzlement in connection
indictment yesterday afternoon charging             thousands of dollars of expenditures for       with health care count carries, upon
Herschel A. Breig and James Cheek with              their personal benefit, while at the same      conviction, a maximum statutory sentence
various offenses related to their operation         time, failed to pay over to the U.S. payroll   of 10 years in prison and a $250,000 fine.
of Highland Medical Center in Lubbock,              taxes withheld from HMC’s employees’           Restitution could also be ordered.
announced U.S. Attorney James T. Jacks              paychecks and failed to remit monies            The case is being investigated by the IRS
of the Northern District of Texas.                  withheld from HMC’s employees’                 – Criminal Investigation and the U.S.
Specifically, the indictment charges each           paychecks for various employee benefits,       Department of Labor. Assistant U.S.
defendant with seven counts of failing to           including health insurance, dental             Attorney Ann C. Roberts of the U.S.
pay over payroll taxes to the Internal              coverage and group life insurance.             Attorney’s Office in Lubbock, is in charge
Revenue Service (IRS) and one count of               The indictment alleges that as responsible    of the prosecution.”
theft or embezzlement in connection with            parties for HMC, the defendants failed to       To find additional federal criminal news,
health care. It is expected that Breig and          pay over $1,856,529 in payroll taxes to        please read Federal Crimes Watch Daily.
Cheek will surrender to authorities within          the IRS.                                        Douglas McNabb and other members of
the next few weeks.                                  With regard to the theft or embezzlement      the U.S. law firm practice and write
 According to the indictment, in March              in connection with health care charge, the     extensively on matters involving Federal
2006, Breig and Cheek acquired control of           indictment alleges that from April 2007 to     Criminal Defense, INTERPOL Red
Highland Medical Center (HMC). HMC                  June 2008, Breig and Cheek embezzled           Notice Removal, International Extradition
was purchased by Shiloh Health Services,            $135,079 from Shiloh Health Services,          and OFAC SDN List Removal.
which involved other individuals, but was           Inc. Medical and Drug Plans, in that they       The author of this blog is Douglas
essentially controlled by Breig and Cheek.          did not forward or remit the Plan’s            McNabb. Please feel free to contact him
Cheek was Shiloh’s founder, Chief                   premiums, which had been withheld from         directly at
Executive Officer (CEO) and President;              employees’ pay, thereby causing the Plans      mcnabb@mcnabbassociates.com or at one
Breig served as Shiloh’s Vice-President             to be terminated in December 2007. The         of the offices listed above.
RICHARD
continued from page 5

in the past 15 months, been self-                   in gross receipts and netted approximately      The charges and allegations contained in
employed, nor received any income or                $318,000 through his company.                  the Complaint are merely accusations, and
actual earnings outside of the disability            The count with which Rufo is charged          the defendant is considered innocent
payments.                                           carries a maximum potential penalty of         unless and until proven guilty.”
 In reality, Rufo operated United Safety            five years in prison and a $250,000 fine,       To find additional federal criminal news,
Supply Co. (“USS”) – which sells law                or twice the gross gain or loss from the       please read Federal Crimes Watch Daily.
enforcement badges, pins, patches, coins, t         offense.                                        Douglas McNabb and other members of
-shirts, and hats – out of his residence. In         U.S. Attorney Fishman credited special        the U.S. law firm practice and write
telephone calls monitored during the                agents of the Department of Treasury           extensively on matters involving Federal
investigation, Rufo stated that he has been         Office of Inspector General, under the         Criminal Defense, INTERPOL Red
so busy that trucks had routinely been at           direction of Special Agent in Charge John      Notice Removal, International Extradition
his house twice a day for deliveries and            L. Phillips; and the U.S. Department of        and OFAC SDN List Removal.
boasted that USS had a long list of federal         Labor, Office of Inspector General, Office      The author of this blog is Douglas
clients.                                            of Labor Racketeering and Fraud                McNabb. Please feel free to contact him
 Rufo was also observed by law                      Investigations, under the direction of         directly at
enforcement selling memorabilia from a              Special Agent in Charge Robert L.              mcnabb@mcnabbassociates.com or at one
booth at the annual Police Week in                  Panella, with the investigation leading to     of the offices listed above.
Washington, D.C., in May 2010, and                  the arrest.
setting up tables and selling at the same            The government is represented by V.
event in May 2011.                                  Grady O’Malley, Senior Litigation
 Between September 2008 and November                Counsel, of the U.S. Attorney’s Office
2010, Rufo made more than $1.1 million              Organized Crime\Gangs Unit in Newark.
Federal Criminal Defense Lawyers                                                                                     Federal Criminal       7

Debra Rucker Brown Indicted by a Lubbock
Federal Grand Jury with Theft Concerning
Programs Receiving Federal Funds
McNabb Associates, P.C. (Federal Criminal Defense   -profit program that operates Court            personal credit card accounts.
Lawyers)
                                                    Appointed Special Advocates (CASA);             An indictment is an accusation by a
Submitted at 10:29 AM August 12, 2011
                                                    Hope House; Family Enrichment Services         federal grand jury, and a defendant is
 The U.S. Attorney’s Office Northern                (FES); and the Child Fatality Review           entitled to the presumption of innocence
District of Texas on August 11, 2011                Team (CFRT). CAC’s funding comes               unless proven guilty. If convicted,
released the following:                             mostly from grants and contracts for           however, each of the counts carries a
“FEDERAL GRAND JURY INDICTS                         services, with the balance coming from         maximum statutory sentence of 10 years
FORMER EXECUTIVE DIRECTOR OF                        charitable contributions and money raised      in prison and a $250,000 fine. In addition,
CHILDREN’S ADVOCACY CENTER                          through special events it hosts. A             restitution could be ordered.
OF TOM GREEN COUNTY, INC.                           significant source of the grant funding is      The case is being investigated by the FBI
 Defendant Allegedly Stole More than                provided by the U.S. government through        and the Texas Rangers. Assistant U.S.
$237,000 From Center                                Department of Justice and Department of        Attorney Ann C. Roberts of the U.S.
 LUBBOCK, Texas — A federal grand                   Health and Human Services.                     Attorney’s Office in Lubbock is in charge
jury in Lubbock returned an indictment               According to the indictment, from             of the prosecution.”
yesterday afternoon charging San Angelo,            January 2005 through December 31, 2010,         To find additional federal criminal news,
Texas, resident, Debra Rucker Brown,                Brown stole approximately $237,013 from        please read Federal Crimes Watch Daily.
with six counts of theft concerning                 the CAC. She submitted and processed            Douglas McNabb and other members of
programs receiving federal funds,                   fictitious reimbursement forms for items       the U.S. law firm practice and write
announced U.S. Attorney James T. Jacks              she supposedly purchased for CAC, or           extensively on matters involving Federal
of the Northern District of Texas. Brown            one of its programs, and for supposed          Criminal Defense, INTERPOL Red
is expected to surrender to authorities             CAC-related expenses, including travel         Notice Removal, International Extradition
within the next few weeks.                          expenses she and others incurred. She          and OFAC SDN List Removal.
 Brown, 51, served as the Executive                 caused CAC checks to be issued to her           The author of this blog is Douglas
Director of the Children’s Advocacy                 without any supporting documentation           McNabb. Please feel free to contact him
Center (CAC) of Tom Green County for                and either deposited the checks into her       directly at
more than 16 years — from August 1994               personal checking account, cashed them         mcnabb@mcnabbassociates.com or at one
through February 2011. The CAC is a non             or submitted them as payment on her            of the offices listed above.

Dr. Eugene Demczuk and Nicholas Cukier
Charged in a Federal Criminal Complaint with
Conspiring to Distribute Oxycodone
McNabb Associates, P.C. (Federal Criminal Defense   in Manhattan federal court before U.S.          Mr. BHARARA praised the investigative
Lawyers)
                                                    Magistrate Judge KEVIN NATHANIEL               work of the FBI and the NYPD, and
Submitted at 9:02 AM August 12, 2011
                                                    FOX.                                           thanked the New York State Bureau of
 The U.S. Attorney’s Office Southern                 According to the Complaint unsealed           Narcotics Enforcement for their assistance
District of New York on August 11, 2011             today in Manhattan federal court:              in the investigation. He added that the
released the following:                              On numerous occasions from November           investigation is continuing.
“MANHATTAN U.S. ATTORNEY                            2010 to April 2011, DEMCZUK and                 This case is being handled by the Office’s
CHARGES DOCTOR AND                                  CUKIER sold 30 mg prescriptions of             Narcotics Unit. Assistant U.S. Attorneys
ASSOCIATE WITH ILLEGALLY                            oxycodone pills to an undercover FBI           RYAN P. POSCABLO and JESSICA
DISTRIBUTING OXYCODONE                              officer for $150 a prescription. Before        ORTIZ are in charge of the prosecution.
 PREET BHARARA, the United States                   providing the prescription, DEMCZUK             The charges contained in the Complaint
Attorney for the Southern District of New           did not perform a medical examination          are merely accusations, and the defendants
York, JANICE K. FEDARCYK, the                       nor did he request additional medical          are presumed innocent unless and until
Assistant Director-in-Charge of the New             information from the undercover officer.       proven guilty.”
York Office of the Federal Bureau of                DEMCZUK also provided the undercover            To find additional federal criminal news,
Investigation (“FBI”), and RAYMOND                  officer with prescriptions for other           please read Federal Crimes Watch Daily.
W. KELLY, the Police Commissioner of                individuals.                                    Douglas McNabb and other members of
the City of New York (“NYPD”),                       Oxycodone is a powerful painkiller with       the U.S. law firm practice and write
announced the arrests today of Dr.                  a high potential for addiction and abuse. It   extensively on matters involving Federal
EUGENE DEMCZUK, a Brooklyn and                      is sold on the street as a substitute for      Criminal Defense, INTERPOL Red
New Jersey medical physician, and his               heroin and other illegal drugs.                Notice Removal, International Extradition
associate NICHOLAS CUKIER with                       DEMCZUK, 66, of Livingston, New               and OFAC SDN List Removal.
conspiring to distribute oxycodone, a               Jersey, and CUKIER, 24, of Edison, New          The author of this blog is Douglas
prescription painkiller, for cash, without a        Jersey, are each charged with one count of     McNabb. Please feel free to contact him
legitimate medical purpose. DEMCZUK                 conspiracy to distribute oxycodone and                          DR. page 8
and CUKIER will be presented later today            one count of distributing oxycodone.
8                                       Federal Criminal Defense Lawyers
DR.
continued from page 7

directly at
mcnabb@mcnabbassociates.com or at one
of the offices listed above.

								
To top