Month: June 2022

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Security News: Florida Woman Pleads Guilty to Participating in Nationwide Tax Fraud Scheme

Source: United States Department of Justice News

A Florida woman pleaded guilty today to filing a false tax return with the IRS, whereby she obtained a refund she was not entitled to receive.

According to court documents and statements made in court, Rebecca Cyphers, 65, of Winter Springs, participated in and helped facilitate a nationwide tax fraud scheme. As part of the scheme, individuals prepared and assisted in the filing of tax returns for scheme participants, such as Cyphers, falsely claiming banks and other financial institutions had withheld large amounts of income tax from the participants that entitled them to a refund. In reality, the financial institutions had not paid any income to or withheld any taxes from these individuals.

As part of her plea, Cyphers admitted she filed a false 2013 amended income tax return claiming a refund she was not entitled to receive. As a result, the IRS issued her a refund of approximately $240,000. Cyphers then obstructed the IRS’s efforts to recover this ill-gotten refund by transferring funds into a trust, making a large cash withdrawal from the refund deposit and sending frivolous correspondence to the IRS. Cyphers also admitted to helping others promote the tax fraud scheme and recruit additional participants, even though she knew the scheme was illegal.

In March, the main promoter of the fraud scheme, Iran Backstrom, was sentenced to more than eight years in prison, and Backstrom’s second-in-command, Mehef Bey, was sentenced to 11 years in prison. Another individual, Aaron Aqueron, was sentenced to 51 months in prison for recruiting clients to the scheme and providing information to another co-conspirator for use in the preparation of false tax returns.

Cyphers is scheduled to be sentenced on Aug. 24 and faces a maximum penalty of three years in prison for filing a false tax return. She also faces a period of supervised release, monetary penalties and restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Isaiah Boyd III of the Tax Division and Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida are prosecuting the case.

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Defense News: Gold Star Families Honored at RTC Pass-In-Review

Source: United States Navy

Following the graduation, Naval Station Great Lakes Commanding Officer Capt. Jason Williamson met privately with the Gold Star group to personally thank each family member.

“Today we recognize their sacrifices by listening to their stories, sharing in their pain, and pledging to do all we can to support Gold Star Families,” Williamson said. “We have made a commitment to be there every day and support them through prayers and actions. We all must pledge that their memories and their sacrifices will never be forgotten for the parents, spouses, and children who feel the weight of their loss.”

The purpose of the Navy Gold Star Program is to deliver on the Navy’s commitment to surviving families. Longtime assistance is the goal to foster resiliency for surviving families for as long as they desire. The program accomplishes this by using resources from government and non-government programs.

Throughout the year, Navy Gold Star Program coordinators organize events and group visits to connect survivors and to ensure that the sacrifices of our heroes are never forgotten.

Naval Support Activity Great Lakes Fleet and Family Service Center Gold Star Coordinator Julie Boesel’s father was a World War II veteran making Memorial Day important for her family.

“The families loved everything about the day,” Boesel said. “It meant so much for them to still be part of the Navy family. For many of them it is their first time back since their Sailor graduated here. The dedications from the speakers and applause from the crowd was very special to them.”

On Sept. 22, 2012, James and Janice Roberts received news that their son, Gunner’s Mate 2nd Class Dion Roberts, was killed in Afghanistan.

“I always personally enjoy myself around these young Sailors,” said James Roberts, who attended the Pass-In-Review ceremony. “I get a thrill from that. I will always be surprised by these young people becoming adults and serving in an unpredictable environment that may rise to heights they could have never imagined. So I do feel for them and I have very emotional feelings about them making these kinds of decisions for their future.”

Boot camp training includes physical fitness, seamanship, firearms, firefighting and shipboard damage control along with lessons in Navy heritage and core values, teamwork and discipline. About 40,000 recruits graduate annually from RTC and begin their Navy careers.

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Security News: Schuylkill County Man Charged With Drug Trafficking

Source: United States Department of Justice News

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Javier Guzman, age 50, of Pottsville, Pennsylvania, was indicted on May 17, 2022, by a federal grand jury for methamphetamine trafficking. The indictment was unsealed following Guzman’s arrest.

According to United States Attorney John C. Gurganus, the indictment charges Guzman with one count of distribution of methamphetamine and one count of possession with intent to distribute high-quality crystal methamphetamine on March 2 and 10, 2022, in Schuylkill County. 

The charges against the defendant resulted from an investigation conducted by the Federal Bureau of Investigation and the Schuylkill County Drug Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The charges carry a mandatory minimum sentence of five years in prison. The maximum sentence under federal law is up to forty years in prison, a term of supervised release and a fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

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Security News: Owner of Northeast Philadelphia Pharmacy Charged with Conspiracy to Distribute Oxycodone and Fraud

Source: United States Department of Justice News

The Fox Chase-area Pharmacy is also the subject of a federal civil lawsuit filed earlier this year

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Mitchell Spivack, 62, of Collegeville, PA, was charged by Information with conspiracy to distribute controlled substances and healthcare fraud. These charges are the result of a joint investigation between the United States Attorneys Office for the Eastern District of Pennsylvania and the Pennsylvania Office of Attorney General.

As alleged in the Information, Spivack owned Verree Pharmacy located in the Fox Chase section of Philadelphia and was the pharmacist in charge. Verree operated as a small neighborhood pharmacy for more than thirty years. During that time in business, Spivack and his coconspirators allegedly cultivated Verree’s reputation as an “easy fill” and “no questions asked” pharmacy for oxycodone and other dangerous and addictive opioid drugs. By 2016, Verree was the largest purchaser of oxycodone among retail pharmacies in the entire Commonwealth of Pennsylvania. In furtherance of the conspiracy, Spivack and his coconspirators filled prescriptions for wholesale quantities of high-dose oxycodone despite obvious alterations to the prescriptions and other red flags indicating that the drugs were not for a legitimate medical purpose. In addition, Spivack and other employees of Veree submitted entirely fraudulent claims to health care benefit programs for prescription drugs not dispensed. These drugs were designated in patient profiles as “BBDF” which was an acronym for “Bill But Don’t Fill.” From 2013 through 2019, Medicare and other insurers paid over $450,000 for these bogus claims.

“Pharmacies and pharmacists engage in the deepest violation of the community’s trust when they exploit their access to opioids and other controlled substances and illegally dispense the drugs for their own financial gain,” said U.S. Attorney Williams. “It is even more disturbing when pharmacists take advantage of their position of trust by fraudulently billing Medicare and other federal health care programs for bogus prescription drugs. Our Office will use every resource it has to pursue and hold these individuals accountable. I am grateful for the support and investigative teamwork that the DEA, HHS-OIG, and the Pennsylvania Attorney General’s Office provided in this important matter.”

“We know that nearly 80% of those who use heroin first started with misusing a prescription opioid,” said Attorney General Josh Shapiro. “The defendant is charged with filling prescriptions outside of medical standards for the highly addictive drug oxycodone. Diversion of these drugs perpetuates the existing opioid crisis that killed 5,438 Pennsylvanians last year. Pharmacies and medical professionals have a responsibility under the law to dispense these drugs only when appropriate. Our office is committed to continuing to work with our federal partners to hold medical professionals like Mitchell Spivack accountable to the fullest extent of the law.”

If convicted, the defendant faces a maximum possible sentence of five years in prison, a $250,000 fine, three years of supervised release, a special assessment and an order of restitution.

If the public has any information regarding Verree Pharmacy or any other health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.

Earlier this year, the U.S. Attorney’s Office filed a civil suit against Spivack, his company, and employees alleging healthcare fraud and violations of the Controlled Substances Act. The criminal case was investigated by the Philadelphia Field Division of the Drug Enforcement Administration, HHS-OIG, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the Pennsylvania Department of State’s Bureau of Enforcement and Investigation. The criminal case is being prosecuted by Assistant United States Attorney M. Beth Leahy and Special Assistant United States Attorney Linda Montag, who was specially designated by the AG. The civil case is being handled by Assistant United States Attorney Anthony D. Scicchitano.  

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

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Security News: Edmond Man Sentenced to More Than 12 Years in Federal Prison for Firearms Offenses

Source: United States Department of Justice News

OKLAHOMA CITY – Last Thursday, DEVIN DEWAYNE BENNETT, 31, of Edmond, was sentenced to serve 150 months in federal prison for being a felon in possession of a firearm and ammunition, announced U.S. Attorney Robert J. Troester.

On July 22, 2021, a federal grand jury returned a three-count Indictment against Bennett.  Count 1 charged Bennett possessing a firearm. Counts 2 and 3 charged Bennett with possessing ammunition on two separate occasions.  On September 21, 2021, Bennett pleaded guilty to the Indictment.  Federal law prohibits convicted felons from possessing firearms or ammunition.

On May 20, 2021, officers with the Oklahoma City Police Department responded to a reported shooting at an apartment complex in Oklahoma City.  Officers arrived and learned during their investigation that Bennett was involved.  Officers then arrested Bennett that day after they located him nearby in possession of a firearm and ammunition.  The investigation later determined that the firearm and ammunition found in Bennett’s possession were involved in the shooting.

Public records reflect that Bennett was prohibited from possessing firearms due to his lengthy criminal history. These convictions include: Oklahoma County case CF-2013-6234 – Burglary in the first-degree and felon in possession of firearm; Oklahoma County case CF-2014-6304 – attempted first degree burglary; Oklahoma County case CF-2015-1592 – felon in possession of firearm; Oklahoma County case CF-2018-3777 – domestic assault and battery with dangerous weapon; Oklahoma County case CF-2018-4083 – second-degree robbery and domestic assault and battery; and Oklahoma County case CF-2018-5214 – aggravated eluding a police officer.

At the sentencing hearing, U.S. District Court Judge Patrick Wyrick sentenced Bennett to serve 150 months in federal prison.  In support of his sentence, Judge Wyrick cited, among other reasons, the serious nature of the offense and Bennett’s lengthy criminal history.  Judge Wyrick also ordered Bennett to serve three years of supervised release.  Bennett has been in federal custody since July 23, 2021.

This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department.  Assistant U.S. Attorneys Ashley Altshuler and David Nichols, Jr. prosecuted the case.