4 SENTENCED FOR ROBBING JEWELRY COURIER

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, October 27, 2014

Four Men Sentenced to Federal Prison for Robbery of Jewelry Courier

Four members of a robbery crew that targeted jewelry couriers were sentenced to federal prison for their roles in conspiracy to commit a Hobbs Act robbery and related offenses.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sally Quillian Yates of the Northern District of Georgia made the announcement.

Honorio Sanchez-Valenica, 46, of Gwinnett, Georgia, John Rodriguez, 37, of Los Angeles, Ali Alejandro Godoy-Maximo, 25, of Los Angeles, and Michael Alejandro Tovar-Vargas, 37, of Los Angeles, were sentenced to serve 137 months in prison, 63 months in prison, 68 months in prison and 87 months in prison respectively for their involvement in the Jan. 31, 2013, robbery of a jewelry courier at a gas station in Buford, Georgia.  In addition to the prison sentences, the defendants were ordered to pay $122,398 in restitution.  U.S. District Judge Steve C. Jones of the Northern District of Georgia imposed the sentences.  Jose Vicente Ramirez-Rodriguez, 38, of Los Angeles, also pleaded guilty for his role in the robbery and will be sentenced on Dec. 10, 2014.

Court records show that on Jan. 31, 2013, the defendants robbed a jewelry courier while he was putting gas in his car.  Two of the defendants approached the victim, one restrained him with a knife, and the other smashed the car’s window and took a briefcase containing over $125,000 in assorted jewelry.

In his plea agreement, Sanchez-Valencia also admitted to his involvement in a similar robbery in Dallas on Aug. 27, 2012.  In that robbery, Sanchez-Valencia conducted surveillance of two jewelry couriers at a restaurant.  Within minutes after Sanchez-Valencia left, three masked men with a gun came into the restaurant and robbed the jewelry couriers, taking two briefcases containing over $500,000 in jewelry.  Some of that jewelry was later recovered by law enforcement during the execution of a search warrant at a storage unit rented by Sanchez-Valencia.

This case was investigated by the FBI, Immigration and Customs Enforcement, and the Gwinnett County Police Department, with assistance from the Dallas Police Department.  This case is being prosecuted by Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kim Dammers of the Northern District of Georgia.

FORMER RIO GRANDE MAYOR PLEADS GUILTY TO SOLICITING BRIBES

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, October 24, 2014

Former Mayor of Río Grande, Puerto Rico, Pleads Guilty to Soliciting and Accepting Bribes from Contractor

The former mayor of the municipality of Río Grande, Puerto Rico, pleaded guilty today to soliciting and receiving approximately $39,000 in cash bribes from a contractor who sought to be awarded three construction inspection contracts with the municipality of Río Grande.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.

According to his plea agreement, Eduard Rivera-Correa, 61, while mayor of Río Grande in early 2010, requested that a contractor make regular kickback payments in exchange for the award of three construction inspection contracts worth a total of $329,000.  After the contracts were awarded and while payments were being disbursed by the municipality, the contractor delivered envelopes containing approximately $39,000 in cash to Rivera-Correa’s office and placed them in his drawer.

Rivera-Correa pleaded guilty before U.S. Magistrate Judge Marcos E. López to one count of bribery.  Rivera-Correa was arrested on July 10, 2014, after being indicted by a federal grand jury.  His sentencing will be scheduled at a later date.

In his plea agreement, Rivera-Correa admitted to obstructing justice by threatening the contractor who paid him bribes.  On or about April 16, 2012, in a recorded conversation, Rivera-Correa threatened the contractor in an effort to intimidate him and dissuade him from cooperating with law enforcement.

This case was investigated by the FBI and is being prosecuted by Trial Attorney Charles R. Walsh of the Criminal Division’s Public Integrity Section and Criminal Chief Jose Ruíz of the District of Puerto Rico.  The Puerto Rico Office of Government Ethics provided assistance in the investigation.

MAN FROM N.H. PLEADS GUILTY TO FILING FALSE FEDERAL INCOME TAX RETURN

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, October 20, 2014

New Hampshire Man Pleads Guilty to Filing False Tax Return

A Hampton, New Hampshire, man pleaded guilty in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009, the Justice Department and Internal Revenue Service (IRS) announced.

According to court documents, Menashe Cohen, an oriental carpet dealer, and his sister maintained an undeclared bank account at UBS in Switzerland that had a balance of approximately $1.3 million.  Cohen also maintained bank accounts in Israel and in Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France.  Although Cohen’s return for tax year 2009 reported that he had a financial interest in a bank account in Jersey, the return failed to report that he had financial interests in the accounts located in Switzerland and Israel.  In addition, Cohen’s return only reported $350 in interest income, when in fact he had received approximately $66,500 in interest income during 2009.

In total, for tax years 2006 through 2009, Cohen failed to report approximately $170,000 in income earned from offshore bank accounts.  In addition, Cohen filed a false and fraudulent Report of Foreign Bank and Financial Accounts (FBAR) for 2009, wherein Cohen reported he had bank accounts in Israel and Jersey on the FBAR, but failed to report his financial interest in the UBS account in Switzerland.

According to the law, U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns (Forms 1040).  Additionally, U.S. citizens and residents must file a FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest or signature or other authority.

Cohen faces a statutory potential maximum sentence of three years in prison and a maximum fine of $250,000 at his Jan. 26, 2015, sentencing.  In addition, Cohen has agreed to resolve his civil liability for failing to report his financial interest in the UBS account on a FBAR by paying a 50 percent civil penalty to the IRS based on the high balance of his one-half interest in the account.

This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Senior Litigation Counsel John E. Sullivan of the department’s Tax Division and Assistant U.S. Attorney Robert M. Kinsella for the District of New Hampshire.

U.S. MARSHALS FUGITIVE TASK FORCE ARRESTS MURDER SUSPECT WHO FLED FROM PUERTO RICO TO FLORIDA

FROM:  U.S. MARSHALS SERVICE 

October 22, 2014

U.S. Marshals Fugitive Task Force Arrests Murder Suspect Who Fled From Puerto Rico to Florida

Fugitive Located in Ocala Apartment

Gainesville, FL – This morning, the U.S. Marshals Florida Regional Fugitive Task Force located and arrested Jonathan Santiago-Torres in a northeast Ocala apartment complex. Santiago-Torres was wanted by the Caguas Municipal Court in Puerto Rico on an outstanding arrest warrant for homicide and weapons-related charges with a bond of $2 million. Per an investigation by police in Puerto Rico, Santiago-Torres shot and killed a male victim with a handgun on June 25.

U.S. Marshals in Puerto Rico and Task Force members in Gainesville developed information that Santiago-Torres fled to Florida after the murder. Further investigation revealed that Santiago-Torres arrived in the Ocala area within the last couple of days. Task Force members – including investigators from the U.S. Marshals Service, the Marion County Sheriff’s Office, the Alachua County Sheriff’s Office, and the Levy County Sheriff’s Office – continued the investigation in Ocala this morning and determined Santiago-Torres was likely hiding inside the apartment located at 2701 NE 7th Street #601 with a friend. At approximately 9:00 a.m., Task Force members surrounded this apartment and ordered Santiago-Torres to exit. Santiago-Torres exited moments later and Task Force members placed him under arrest. Santiago-Torres was booked into the Marion County Jail on his outstanding arrest warrant.

For additional information, please contact Deputy U.S. Marshal Bryon Carroll at (352) 672-8065.

The Gainesville Division of the U.S. Marshals Florida Regional Fugitive Task Force is sponsored by the U.S. Marshals Service and is comprised of investigators from the U.S. Marshals Service, the Alachua County Sheriff's Office, the Levy County Sheriff's Office, the Marion County Sheriff's Office, the Gainesville Police Department, and the Chiefland Police Department.

LUXURY CAR MECHANIC INDICTED FOR TAX FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, October 20, 2014

Michigan Luxury Car Mechanic Indicted for Tax Fraud

A mechanic who specializes in repairing exotic foreign cars and other high-end luxury vehicles was arrested on Friday after being indicted on tax charges by a grand jury in Detroit, the Justice Department announced.

Terry Myr, a resident of Smith’s Creek, Michigan, was charged with tax evasion and failure to file tax returns.  If convicted, Myr faces a maximum sentence of nine years in prison and a $650,000 fine.

According to the indictment, the Internal Revenue Service (IRS) assessed Myr approximately $195,000 in taxes, interest and penalties for his failure to report all of his income for the years 2000 through 2003.  To avoid the IRS collecting this money, Myr transferred property that he owned to a third party, used nominee companies to conceal his income and assets, and otherwise dealt in cash.  The indictment alleges that Myr failed to file tax returns from 2002 through 2010.

The case was investigated by special agents of the IRS – Criminal Investigation.  Trial Attorneys Tiwana Wright and Kenneth Vert from the Justice Department’s Tax Division are prosecuting the case.

An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

MEDICAL CLINIC MANAGER INDICTED IN MEDICARE FRAUD CONSPIRACY WHICH INCLUDED ILLEGAL KICKBACKS

FROM:  U.S. JUSTICE DEPARTMENT  

Wednesday, October 8, 2014

Manager of Three Los Angeles Medical Clinics Indicted in $4 Million Medicare Fraud Scheme

An indictment was unsealed today charging two managers and operators of three Los Angeles medical clinics with Medicare fraud and conspiracy to pay illegal kickbacks for medical procedures that were never actually provided.  

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephanie Yonekura of the Central District of California; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.

Hovik Simitian, 47, of Los Angeles, and Anahit Shatvoryan, 49, of Glendale, California, were each charged in the Central District of California with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of conspiracy to pay health care kickbacks.

According to allegations in the indictment, Simitian and and Shatvoryan managed and operated three medical clinics – Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic – out of two suites in the same Los Angeles office building.  From approximately February 2010 through June 2014, Simitian and Shatvoryan paid marketers illegal kickbacks to recruit Medicare beneficiaries to the clinics.  They then submitted false claims to Medicare for services – including procedures such as anorectal manometry and nerve conduction tests – that were not medically necessary and never actually provided.

From approximately February 2010 through June 2014, the clinics allegedly submitted a total of $4,526,791 in false and fraudulent claims to Medicare, and Medicare paid $1,668,559 on those claims.

The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.  This case is being prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

INMATE SENTENCED TO LIFE FOR MURDER OF ANOTHER INMATE

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, October 8, 2014

Federal Inmate Sentenced to Life in Prison for Murdering Another Inmate
Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was sentenced today to life in prison for the murder of another inmate.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney William J. Ihlenfeld II, for the Northern District of West Virginia made the announcement after sentencing by U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.

Bellinger was convicted by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.

According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack.  In less than a minute, an officer approached, and the attackers fled.  Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon.  Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them.

At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000.

This case was investigated by the FBI and the U.S. Bureau of Prisons.  The case was prosecuted by Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Andrew Cogar and former Assistant U.S. Attorney Brandon Flower of the Northern District of West Virginia.

FIVE ARYAN BROTHERHOOD OF TEXAS MEMBERS SENTENCED TO PRISON FOR RACKETEERING CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, October 8, 2014

Five Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering Conspiracy

Five Aryan Brotherhood of Texas (ABT) gang members from Dallas were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Today, James Lawrence Burns, 44, and Kenneth Hancock, 34, high-ranking members in the ABT’s hierarchical structure, were ordered to serve respective terms of 20 and 15 years in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas.  Yesterday, Dustin Harris, 30, and Christopher Morris, 39, were each ordered to serve 10 years in prison, while Clay Kirkland, 35, received a sentence of more than 11 years in prison.  An additional defendant – Bill Frank Weatherred, 29 – will be sentenced tomorrow.

According to information presented in court, the six men were admitted members of ABT, a powerful race-based, statewide organization that operates inside and outside of state federal prisons throughout Texas and the United States.  Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang.  ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.

The ABT was established in the early 1980s within the Texas prison system.  The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s.  Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise.  Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

In order to be considered for ABT membership, a person must be sponsored by another gang member.  Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

The defendants sentenced this week are six of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges.    

This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.

The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas.

THREE COLOMBIANS PLEAD GUILTY FOR ROLES IN MARITIME DRUG TRAFFICKING CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, October 3, 2014

Colombian Traffickers Plead Guilty to International Maritime Drug Trafficking Conspiracy

Three Colombian citizens pleaded guilty today for conspiring to transport more than 1,000 kilograms of cocaine on board “go-fast boats” from the north coast of Colombia into international waters on vessels subject to the jurisdiction of the United States.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the U.S. Drug Enforcement Administration (DEA) made the announcement.

Angel Javier Varon Castro, 43; Luis Delio Herrera Astudillo, 45; and Eusebio David Webster Archbold, 33, all Colombian nationals, pleaded guilty before U.S. District Judge Beryl A. Howell of the District of Columbia to one count of conspiracy to distribute cocaine and possess with intent to distribute cocaine on board a vessel subject to the jurisdiction of the United States.  Sentencing is set for Jan. 9, 2015.

“Today’s guilty pleas highlight our successful and vigorous partnership with Colombian law enforcement as we work to halt the flow of drugs heading north from the coast of Colombia,” said Assistant Attorney General Caldwell.  “These defendants and their drug trafficking partners used seagoing vessels to inject vast quantities of cocaine into international commerce.  But while drug traffickers may believe they can operate on the high seas with impunity, today’s convictions prove otherwise.  Working with our international partners, we will bring to justice those who would flood our ports and, ultimately, our communities with dangerous narcotics.”

“The arrests and guilty pleas of these three international drug smugglers are the direct result of the resolute partnership between the DEA and our Colombian law enforcement partners,” said DEA Administrator Leonhart.  “This is another example of the fine work that DEA, prosecutors, and our partners around the globe accomplish every day.”

According to their plea agreements, the defendants worked for a drug-trafficking organization responsible for transporting cocaine aboard go-fast vessels leaving from the area of Cartagena, Colombia, to Central America, and traveling in international waters on vessels subject to the jurisdiction of the United States.  During the investigation, pursuant to Colombian judicial authority, law enforcement recorded the defendants’ telephone conversations in which they planned the operation, including the use of two 40-foot go-fast vessels.  These boats were later intercepted in February and April 2010 in international waters by the United States Coast Guard.  Go-fast vessels are specially equipped speed boats designed to transport large quantities of narcotics.    

This Organized Crime Drug Enforcement Task Force (OCDETF) case, called Operation Pacific Empire, is being investigated by DEA’s Cartagena Country Office, assisted by DEA’s offices in Miami and Puerto Rico.  The Cartagena office worked in partnership with the Judicial Police of the Prosecutor General’s Office in Colombia (CTI) and the Colombian National Police.

The case is being prosecuted by Trial Attorneys Meredith Mills, Brad Price and Paul Laymon of the Criminal Division’s Narcotic and Dangerous Drug Section, with significant assistance from the Judicial Attachés in Bogotá, Colombia, the Criminal Division’s Office of International Affairs, and the Prosecutor General’s Office of the Republic of Colombia.  

FORMER KLANSMAN PLEADS GUILTY IN CROSS BURNING CASE

FROM:  U.S. JUSTICE DEPARTMENT

Tuesday, September 30, 2014

Former Klansman Pleads Guilty to Federal Hate Crime for Cross Burning
Timothy Flanagan, 33, pleaded guilty today in federal court in Nashville, Tennessee, for his role in the April 30, 2012, cross burning in front of an interracial family’s home in Minor Hill, Tennessee, the Department of Justice announced.  Flanagan pleaded guilty to one count of conspiring with others to threaten, intimidate and interfere with an African-American man’s enjoyment of his housing rights, and one count of interfering with those housing rights.

Flanagan—a former member of the Church of the National Knights, a Ku Klux Klan affiliate—admitted during the plea hearing that on the night of April 30,2012, he and two other individuals devised a plan to burn a cross in the yard of an African American man in Minor Hill, Tennessee. Flanagan’s co-conspirator, Timothy Stafford, constructed a wooden cross in a workshop behind his house.  Using Flanagan’s credit card, Stafford and co-conspirator Ivan “Rusty” London then purchased diesel-fuel with which to soak the cross.  Flanagan and the other co-conspirators then drove the cross to the victim’s residence and upon arriving at the residence, Flanagan and London exited the truck.  The cross was placed in the driveway leading up to the house and was ignited.  The co-conspirators burned the cross with the purpose of intimidating the African-American male who resided at that residence.

Ivan “Rusty” London IV, 21, of Lexington, Kentucky, and Timothy Stafford, 41, of Minor Hill, Tennessee, previously pleaded guilty for their roles in the conspiracy, and are currently awaiting sentencing.

“Hate-motivated crimes will not be tolerated in our country,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department will vigorously prosecute individuals who violate the rights of others because of race.”

“There can be no tolerance for such acts of intimidation when innocent persons are targeted simply because of their race,” said U.S. Attorney David Rivera for the Middle District of Tennessee.  “The U.S. Attorney’s Office and our law enforcement partners will work tirelessly to protect the civil rights of all persons and bring to justice, anyone who would attempt to impede the constitutionally protected right to liberty of any person.”

Timothy Flanagan faces up to 20 years in prison and fines up to $500,000.  Timothy Stafford faces up to 10 years in prison and fines of up to $250,000.  Ivan London faces up to 5 years in prison and fines of up to $250,000. Sentencing for Flanagan is set for January 8, 2015.

This case was investigated by the Columbia, Tennessee, Division of the FBI and is being prosecuted by Trial Attorney Jared Fishman of the Civil Rights Division and by Assistant U.S. Attorney Hal McDonough of the Middle District of Tennessee.

U.S. MARSHALS ANNOUNCE CAPTURE OF FOREIGN FUGITIVE, SUSPECTED MS-13 GANG MEMBER

FROM:  U.S. MARSHALS SERVICE 

Contact:  October 01, 2014 Joseph Palmer, Deputy U.S. Marshal

Northern District of California 

USMS Office of Public Affairs 

U.S. Marshals Task Force Nabs Foreign Fugitive

MS-13 Gang Member Wanted for Homicide, Arrested on Immigration Charges

Vallejo, CA – U.S. Marshal Don O’Keefe is proud to announce the arrest of Fermin Aguilar-Agueta, 26, a suspected MS-13 gang member, who is wanted in El Salvador for aggravated homicide.

Aguilar-Agueta is suspected by Salvadorian authorities of being involved in a drunken altercation between rival gang factions, which resulted in the shooting death of an individual in March 2007. He was formally charged with aggravated homicide in El Salvador in 2009. An Interpol Red Notice was issued by El Salvador in 2013 for Aguilar-Agueta initiating an international manhunt.

On September 22, Aguilar-Agueta was spotted in a vehicle by Concord Police Department officers during a routine traffic stop. Officers gathered information about him, as well as his associates, and forwarded the information to the U.S. Marshals Fugitive Task Force, which specializes in the apprehension of domestic and foreign fugitives.

The following day, based on the information from the Concord Police, and in coordination with Deputy U.S. Marshals at Interpol Washington, the U.S. National Central Bureau (USNCB), in Washington, D.C., the U.S. Marshals Service Pacific Southwest Regional Fugitive Task Force in the Bay Area, which consists of several federal, state, and local agencies, to include officers from Immigration and Customs Enforcement (ICE), were able to determine that Aguilar-Agueta was residing illegally in the U.S., and that he had no record of legal entry.

U.S. Marshals Task Force members located the vehicle associated with the traffic stop at the 1200 block of Georgia Street, Vallejo, CA, and established surveillance. Soon after, Aguilar-Agueta was spotted getting into the vehicle. A traffic stop was conducted and he was taken into custody without incident. Aguilar-Agueta is currently in immigration custody pending deportation.

To find more information on fugitives currently being sought by the U.S. Marshals in Northern California, or to submit an anonymous tip on the whereabouts of a fugitive, please visit: http://northerncaliforniamostwanted.org. The U.S. Marshals Service is the primary federal agency charged with conducting fugitive investigations throughout the country. The U.S. Marshals regularly works in concert with other federal, state, and local law enforcement agencies to seek out and arrest violent fugitives and sex offenders, and has established task forces throughout the nation to facilitate the apprehension of fugitives.

SEC BRINGS CHARGES AGAINST ALLEGED INTERNATIONAL PYRAMID SCHEME OPERATORS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

SEC Announces Cases Targeting International Pyramid Scheme Operators

09/26/2014 11:30 AM EDT

The Securities and Exchange Commission today announced charges against the operators of an international pyramid scheme that raised more than $129 million from investors worldwide, primarily in the U.S., China, and Taiwan.  The case follows another against a separate pyramid scheme that lured investors in the U.S., China, and Korea with seminars, webinars, and YouTube videos.

The newest case, filed in federal court in San Francisco, charges Hong Kong-based eAdGear Holdings Limited and California-based eAdGear, Inc., along with operators Charles S. Wang and Qian Cathy Zhang, of Warren, N.J., and Francis Y. Yuen, of Dublin, Calif.  According to the SEC complaint, even though eAdGear claimed to be a successful Internet marketing company, nearly all of its revenue was generated by investors, not its products or services.

The complaint alleges that eAdGear’s operators used money from new investors to pay earlier investors as well as to repay a personal loan and purchase million-dollar homes for themselves. It alleges the operators concealed and perpetuated the scheme by displaying sham websites on eAdGear’s own site to make it appear as if it had real, paying customers and manipulated revenue distributions to investors to appear profitable.

“eAdGear and its operators falsely claimed that they were running a profitable Internet marketing company when in reality, they were operating a Ponzi and pyramid scheme that preyed on Chinese communities and caused investors to lose millions of dollars,” said Jina L. Choi, director of the SEC’s San Francisco Regional Office.

The eAdGear case follows one filed Monday in federal court in Georgia against Zhunrize Inc. and CEO Jeff Pan for allegedly defrauding investors of more than $105 million since 2012.  Despite its claims to be a legitimate multi-level marketing company, Zhunrize derived most of its funds from selling memberships, not products, according to the SEC complaint.

“Zhunrize claimed to offer investors the opportunity to be an ‘e-commerce Business Owner’ selling products to customers through a website.  In fact, it was a pyramid and ‘profits’ came from fees paid by later investors,” said William Hicks, associate regional director of the SEC’s Atlanta Regional Office.

In both cases, the courts granted the SEC’s request for an asset freeze and issued a temporary restraining order.  In the case of eAdGear, that order bars the defendants from soliciting investors, including through websites they have used until now – www.eadgear.com, www.eadgear.net, www.winteam777.com, and www.winteam168.com.  A court hearing has been scheduled for October 10.

Jessica W. Chan, John A. Roscigno, and Jason M. Habermeyer of the SEC’s San Francisco Regional Office conducted the eAdGear investigation.  Erin E. Schneider and Cary S. Robnett supervised the investigation.  Ms. Chan and Susan F. LaMarca will lead the SEC’s litigation.  The SEC appreciates the assistance of the United States Attorney’s Office for the Northern District of California and the Federal Bureau of Investigation.  It also appreciates the assistance of the Hong Kong Securities and Futures Commission, the China Securities Regulatory Commission, the Ontario Securities Commission, and the Financial Conduct Authority in the United Kingdom.

Michael E. Mashburn and Kristin Wilhelm of the SEC’s Atlanta Regional Office conducted the Zhunrize investigation, supervised by Peter J. Diskin.  Ms. Wilhelm is leading the SEC’s litigation.

FORMER OWNER MEDICAL EQUIPMENT SUPPLY COMPANY SENTENCED FOR FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, September 22, 2014

Former Owner of Los Angeles-Area Medical Equipment Supply Company Sentenced for $2.6 Million Medicare Fraud Scheme

The former owner of a Long Beach, California, medical supply company was sentenced today to serve 30 months in prison and ordered to pay $1,490,532 in restitution for his role in a scheme to provide unnecessary power wheelchairs to Medicare patients, resulting in $2.6 million in fraudulent claims to Medicare.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.  U.S. District Judge Philip S. Gutierrez of the Central District of California imposed the sentence.

According to court documents, Akinola Afolabi, 55, of Long Beach, California, was the owner and president of Emmanuel Medical Supply, a durable medical equipment supply company in Long Beach.  From June 2006 through September 2009, Afolabi provided medically unnecessary power wheelchairs and other medical equipment to Medicare beneficiaries, and submitted fraudulent claims to Medicare for this equipment.  Afolabi admitted that he paid “marketers” to obtain Medicare beneficiary information that he used on the false claims.  Afolabi admitted that prescriptions for the equipment and related medical documents were fraudulent, and that some of the beneficiaries did not even receive the wheelchairs or other medical supplies that were billed.

From June 2006 through September 2009, Afolabi submitted approximately $2,668,384 in fraudulent claims to Medicare for power wheelchairs and related services, and Medicare paid approximately $1,490,532 on those claims.

The case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.  This case is being prosecuted by Trial Attorney Fred Medick of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the U.S. Department of Health and Human Services’ (HHS) Centers for Medicare and Medicaid Services, working in conjunction with HHS’ Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.