Latest Updates:
- Criminal Division~Virginia Man Pleads Guilty to Child Pornography Charges
- Criminal Division~Two Brothers Plead Guilty in Miami HIV Infusion Medicare Fraud Scheme
- Criminal Division~Florida Businessman Sentenced to 57 Months in Prison for Role in Foreign Bribery Scheme
- Civil Division~Freight Forwarder Panalpina Pays U.S. $375,000 to Settle False Claims and Kickbacks Allegations
- Antitrust~Northwest Airlines LLC Agrees to Plead Guilty for Fixing Prices on Air Cargo Shipments
ISSUED BY: GCIS Communications Command Center
SOURCE: DOJ Office Of Public Affairs
31July2010 10:50amPDT
GCIS INTELLIGENCE UPDATE:
Virginia Man Pleads Guilty to Child Pornography Charges
WASHINGTON � A Virginia man pleaded guilty today to charges related to his possession and distribution of images containing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Timothy J. Heaphy for the Western District of Virginia.
Gary Lee Rimmer, 55, was indicted in June 2010 and charged with one count of possession of child pornography and one count of distribution of child pornography. The defendant pleaded guilty to both counts in U.S. District Court of the Western District of Virginia.
At the plea hearing, Rimmer admitted that while living in Greene County, Va., in 2006, he started an online relationship with a 13-year-old girl from Florida. Throughout their internet conversations and subsequent cellular phone conversations, Rimmer portrayed himself as a 20-year-old man named "Jason." The defendant posted images of a young man and claimed they were of himself. Rimmer had conversations with the girl, whom he ultimately learned was under the age of 16, about starting a sexual relationship. Rimmer mailed the victim sexual items and sent her sexual images via the Internet. When investigators searched the contents of Rimmer�s computer, they found images of child pornography, including images of the victim from Florida with the items he previously mailed to her. Search terms associated with child pornography were also found on the defendant�s computer. A forensic examination of Rimmer�s computer also revealed that he distributed child pornography to a person outside of Virginia during a chat session using Yahoo Messenger.
At sentencing, scheduled for Nov. 1, 2010, the defendant faces a maximum penalty of 20 years in prison for the distribution count and 10 years in prison for the possession count. Each count carries a maximum fine of up to $250,000.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys� Offices and the Criminal Division�s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being prosecuted by CEOS Trial Attorney James Silver and Assistant U.S. Attorney Nancy S. Healey of the Western District of Virginia. This case was investigated by the Virginia State Police and the Citrus County Florida Sheriff�s Department.
[Image: Sunbeam Television Corp.]
Two Brothers Plead Guilty in Miami HIV Infusion Medicare Fraud Scheme
WASHINGTON � Two brothers pleaded guilty today in U.S. District Court in Miami for participating in a $13.7 million HIV infusion Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS).
Rolando Nogueira, 48, and his brother, Jose Nogueira, 52, pleaded guilty before U.S. District Court Judge Adalberto Jordan in the Southern District of Florida to one count of conspiracy to defraud the United States, to cause submission of false claims to Medicare, and to pay health care kickbacks; one count of conspiracy to commit health care fraud; and three counts of submitting false claims. Rolando and Jose Nogueira were originally charged in a March 2010 indictment. At sentencing, scheduled for Nov. 5, 2010, the Nogueiras each face a maximum penalty of five years in prison for the conspiracy to defraud the United States count and each false claims count, and 10 years in prison for the health care fraud conspiracy count.
According to plea documents, Rolando Nogueira was an owner and operator of T&R Rehabilitation Professional Corp., a Miami clinic that purported to provide expensive injection and infusion treatments to patients with HIV. Jose Nogueira worked at T&R. Rolando Nogueira admitted at his plea hearing that he agreed with his co-defendants and others to have them enlist patient recruiters and patients, among others, into a scheme to defraud Medicare. Rolando and Jose Nogueira admitted that they knew the patients at T&R did not need and/or did not receive the purported services, and that it would be necessary to pay kickbacks and bribes to the patients so that T&R could bill the Medicare program for the HIV infusion services that were not medically necessary and/or were not provided.
The defendants admitted that from approximately January 2003, through approximately July 2005, they and their co-defendants caused T&R to submit fraudulent claims to the Medicare program in the amount of approximately $13.7 million. Medicare paid approximately $4.1 million of these fraudulent claims.
Co-defendants Modesto and Victoria de la Vega pleaded guilty on July 23, 2010, and are scheduled to be sentenced on Nov. 5, 2010. Co-defendant Gladis Badia is awaiting trial.
Today�s guilty pleas and sentences were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies , Special Agent-in-Charge of the FBI�s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The cases were prosecuted by attorneys from the Criminal Division�s Fraud Section, including Trial Attorneys N. Nathan Dimock, Joseph Beemsterboer, and former Trial Attorney Michael Padula. The cases were investigated by the FBI and HHS-OIG and were 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 Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 810 individuals and organizations that collectively have billed the Medicare program for more than $1.85 billion. In addition, HHS's Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
�
Florida Businessman Sentenced to 57 Months in Prison for Role in Foreign Bribery Scheme
WASHINGTON � A Miami businessman was sentenced today to 57 months in prison for his participation in a conspiracy to pay bribes to former officials of the Republic of Haiti, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; and Daniel W. Auer, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) Miami Field Office.
Juan Diaz, 52, was also ordered by U.S. District Court Judge Jose E. Martinez to serve three years of supervised release following his prison term. Judge Martinez ordered Diaz to pay $73,824 in restitution and to forfeit $1,028,851. Diaz pleaded guilty on May 15, 2009, to a one-count information charging him with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and money laundering.
In his plea, Diaz admitted to conspiring to make corrupt payments to foreign government officials for the purpose of securing business advantages for three different Miami-Dade County telecommunications companies from the Republic of Haiti�s state-owned national telecommunications company, Telecommunications D�Haiti. Diaz concealed these payments in part by laundering the funds through his company, J.D. Locator Services. According to court documents, Diaz paid and concealed $1,028,851 in bribes to former Haitian government officials while serving as an intermediary for the three private telecommunications companies. One of these officials, Robert Antoine, admitted his acceptance of bribes, including bribes from Diaz and pleaded guilty on March 12, 2010, to money laundering conspiracy. Antoine was sentenced to four years in prison.
A portion of the J.D. Locator funds was also laundered by Jean Fourcand of Fourcand Enterprises, who pleaded guilty on Feb. 19, 2010, to money laundering, and was sentenced to six months in prison for his involvement in the scheme. Antonio Perez was, at times, the controller of one of the Miami-Dade County telecommunications companies. Perez pleaded guilty on April 27, 2009, to conspiring to commit FCPA violations and money laundering and is awaiting sentencing.
Joel Esquenazi and Carlos Rodriguez, the owners of one of the Miami-Dade County telecommunications companies; Jean Rene Duperval, who was director of international relations of Haiti Teleco from June 2003 to April 2004; and Duperval�s sister, Marguerite Grandison, were indicted along with Antoine on Dec. 4, 2009. Trial for these remaining defendants is scheduled to begin Dec. 6, 2010, in U.S. District Court in Miami. An indictment is merely an accusation, and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The Department of Justice is grateful to the government of Haiti for providing substantial assistance in gathering evidence during this investigation. In particular, Haiti�s financial intelligence unit, the Unit� Centrale de Renseignements Financiers, the Bureau des Affaires Financi�res et Economiques, which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation.
The case was prosecuted by Assistant U.S. Attorney Aurora Fagan of the U.S. Attorney�s Office for the Southern District of Florida, Senior Trial Attorney Nicola J. Mrazek of the Criminal Division�s Fraud Section and Trial Attorney Kevin Gerrity of the Criminal Division�s Asset Forfeiture and Money Laundering Section. The Criminal Division�s Office of International Affairs also provided assistance in this matter. The case was investigated by the IRS-CI Miami Field Office.
[Image: Kiev Ukraine News Blog]
Freight Forwarder Panalpina Pays U.S. $375,000 to Settle False Claims and Kickbacks Allegations
WASHINGTON � Swiss-based freight forwarder Panalpina Inc. has agreed to pay the United States $375,000 to settle allegations that the company paid kickbacks to employees of Kellogg Brown & Root Inc. (KBR). The kickbacks, which related to shipping orders issued in connection with KBR�s contract with the U.S. Army to provide logistical support to the U.S. military in Iraq and elsewhere, are alleged to violate the False Claims Act and the Anti-Kickback Act.
The settlement resolves allegations that Panalpina provided kickbacks in the form of meals, drinks, tickets to sports events and golf outings to employees in KBR�s transportation department in order to gain favorable treatment on subcontracts under the U.S. military�s Logistics Civil Augmentation Program (LOGCAP III). Under the LOGCAP III contract, KBR was to provide logistical support for U.S. military operations abroad.
Under the terms of the settlement agreement, Panalpina will pay the United States $375,000 to resolve its potential liability under the False Claims Act, the Anti-Kickback Act and common law theories. The United States previously settled claims with Eagle Global Logistics (EGL) (now CEVA) related to the same lawsuit for a total of $5,050,000. The government is continuing to pursue claims against KBR based on its employees taking kickbacks from Panalpina and EGL.
"Kickbacks paid for military subcontracts undermine the integrity of the government contracting process," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will not tolerate wartime profiteering at the expense of taxpayer dollars."
The allegations against Panalpina were originally raised in the course of a lawsuit filed in the U.S. District Court for the Eastern District of Texas by David Vavra and Jerry Hyatt, two individuals active in the air cargo business. Under the qui tam, or whistleblower, provisions of the False Claims Act, private citizens can file suit on behalf of the United States and share in any recovery. Vavra and Hyatt will receive $78,750 as their share of this settlement.
This case is being prosecuted as part of a National Procurement Fraud Initiative. In October 2006, the Deputy Attorney General announced the formation of a National Procurement Fraud Task Force designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force is chaired by the Assistant Attorney General for the Criminal Division and includes the Civil Division, U.S. Attorneys� Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. The Defense Criminal Investigative Service and FBI participated in the investigation of this matter. This case, as well as others brought by members of the task force, demonstrates the Department of Justice�s commitment to ensuring the integrity of the government procurement process.
[Image: Jobstreet.com]
Northwest Airlines LLC Agrees to Plead Guilty for Fixing Prices on Air Cargo Shipments
WASHINGTON � Northwest Airlines LLC has agreed to plead guilty and to pay a $38 million criminal fine for its role, through Northwest Airlines Cargo, in a conspiracy to fix prices in the air transportation industry, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the District of Columbia, Northwest Airlines Cargo, which is no longer in operation, engaged in a conspiracy to fix the cargo rates charged to customers in the United States and elsewhere for international air cargo shipments from at least July 2004 until at least February 2006. Under the plea agreement, which is subject to court approval, Northwest Airlines LLC has agreed to cooperate with the department�s ongoing antitrust investigation.
Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights. During the time period covered by the felony charge, Northwest Airlines Cargo earned more than $80 million from its air cargo services between the United States and Japan.
According to the charge, Northwest Airlines Cargo carried out the conspiracy by agreeing during meetings, conversations and communications on certain components of cargo rates for shipments on routes between the United States and Japan and by levying cargo rates in accordance with the agreements reached. As a part of the conspiracy, Northwest Airlines Cargo monitored and enforced adherence to the agreed-upon rates.
Northwest Airlines LLC is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today�s charge, as a result of this investigation, a total of 16 airlines have pleaded guilty or have agreed to plead guilty in the Justice Department�s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.6 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against a fifth executive.
The airlines that have pleaded guilty as a result of the department�s ongoing investigation into the air transportation industry are: British Airways Plc, Korean Air Lines Co. Ltd., Qantas Airways Limited, Japan Airlines International Co. Ltd., Martinair Holland N.V., Cathay Pacific Airways Limited, SAS Cargo Group A/S, Soci�t� Air France, Koninklijke Luchtvaart Maatschappij N.V. (KLM Royal Dutch Airlines), EL AL Israel Airlines Ltd., LAN Cargo S.A., Aerolinhas Brasileiras S.A., Cargolux Airlines International S.A., Nippon Cargo Airlines Co. Ltd. and Asiana Airlines Inc. Airline executives who have pleaded guilty as a result of the investigation are Bruce McCaffrey of Qantas, Keith Packer of British Airways, Franciscus Johannes de Jong of Martinair and Timothy Pfeil of SAS. On Aug. 12, 2009, Jan Lillieborg, a citizen and resident of Sweden and former vice president of global sales for SAS Cargo, was indicted for participating in a conspiracy to suppress and eliminate competition by allocating customers and coordinating surcharge increases for international air shipments to and from the United States.
Today�s charge is the result of a joint investigation into the air transportation industry being conducted by the Antitrust Division�s National Criminal Enforcement Section, the FBI�s Washington Field Office, the Department of Transportation�s Office of Inspector General and the U.S. Postal Service�s Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the air transportation industry is urged to call the Antitrust Division�s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm or call the FBI�s Washington Field Office, Northern Virginia Resident Agency at 202-278-2000.
