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. email@example.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 firstname.lastname@example.org 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 email@example.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 firstname.lastname@example.org 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. email@example.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 firstname.lastname@example.org 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 email@example.com or at one of the offices listed above.
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