Month: August 2022

Source: United States Department of Justice News

BOSTON – A former Massachusetts attorney and his wife have been sentenced in federal court in Boston in connection with various mortgage fraud schemes.

Barry Wayne Plunkett Jr., 62, and Nancy Plunkett, 57, both of Hyannis Port, were sentenced on Aug. 25, 2022 by U.S. Senior District Court Judge Mark L. Wolf. Barry Plunkett was sentenced to 78 months in prison and five years of supervised release. He was also ordered to pay restitution of $3,236,466 and forfeiture of $3,221,403. Nancy Plunkett was sentenced to one year and one day in prison and five years of supervised release. She was also ordered to pay restitution of $3,054,759, jointly and severally with Barry Plunkett, and forfeiture of $3,221,403. On March 4, 2022, Barry Plunkett pleaded guilty to five counts of bank fraud, one count of aggravated identity theft and one count of tax evasion. On the same date, Nancy Plunkett pleaded guilty to five counts of bank fraud.

Prior to being disbarred in October 2017, Barry Plunkett owned and operated the Plunkett Law Firm where his wife, Nancy Plunkett, served as his office assistant and paralegal.

The defendants engaged in several bank fraud schemes. In one scheme, from September 2012 to July 2016, the defendants defrauded six mortgage lenders and 14 homeowners for whom the Plunkett Law Firm handled the closings for new mortgage loans to refinance residential properties. The Plunketts informed the mortgage lenders that pre-existing mortgages were paid off from the new loan proceeds when, in fact, they intentionally failed to pay off the prior liens and instead converted more than $1 million in payoff funds for their own purposes. 

In other bank fraud schemes – between April 2015 and March 2018 – the Plunketts fraudulently used various names, entities and false documents to obtain three successive mortgage loans on their home in Hyannis Port in amounts of $412,000, $470,000 and $1.2 million. The defendants pledged as collateral a property in Hyannis Port that was held in a family trust for which Barry Plunkett was one of three beneficiaries. Both defendants participated in providing false documents to the lenders, including false title reports and other records to falsely represent that the property was free and clear of existing mortgage liens and forged documents in the names of other people. The defendants also made misrepresentations to a lender that Nancy Plunkett was a single woman living in Wellesley who was purchasing the property in her maiden name as a business investment when, in fact, the defendants had been married since 2014 and the property was their residence.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Victor A. Wild and Mackenzie Queenin of Rollins’ Securities, Financial & Cyber Fraud Unit and Carol Head, Chief of Rollins’ Asset Recovery Unit, prosecuted the case.

Source: United States Department of Justice News

Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Jonathan Michael Rouffe (49, Boca Raton) to four years in federal prison for conspiracy to commit health care fraud. The court also ordered Rouffe to forfeit assets from several bank accounts, which are traceable to proceeds of the offense.  As part of his sentence, the court also entered an order of forfeiture in the amount of $3,127,290, the proceeds of the charged criminal conduct, and a restitution order in the amount of $10,725,607.15. Rouffe had pleaded guilty on June 30, 2020.

According to court documents, in 2018, Rouffe and his conspirators established a conglomerate of durable medical equipment (“DME”) supply companies. During the creation of the companies, they lied to Medicare to secure billing privileges, including placing the companies in the names of straw owners. By concealing their true ownership, the conspirators gained control of more companies, which Medicare generally prohibits, enabling them to submit high volumes of illegal DME claims. Through the conglomerate, during the course of one year, Rouffe and his conspirators submitted more than $20 million in illegal DME claims, resulting in over $10 million in payments from Medicare and the Civilian Health and Medical Program of the Department of Veterans Affairs (“CHAMPVA”).

To attain such high volumes of claims, Rouffe and his conspirators used illegal bribes and kickbacks. Specifically, they illegally purchased thousands of DME claims from so-called “marketers.” On invoices, the parties disguised the illegal kickback transactions as marketing services and the conspirators claimed that the DME prescriptions had been generated through “telemedicine.” No telemedicine had actually occurred. Instead, doctors were bribed in exchange for DME approvals.  Rouffe and his conspirators paid millions to secure the illegal DME claims for submission to Medicare and CHAMPVA.

“Today’s sentencing shows that individuals who commit Medicare fraud will be held accountable for their crimes,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency, working closely with our law enforcement partners, will continue to bring those who steal from federal health care programs to justice.”

“Healthcare fraud investigations require lots of patience and skill to follow the money,” said FBI Tampa Special Agent in Charge David Walker. “The FBI has a world class team of special agents, analysts, and forensic accountants determined to protect our nation’s federally funded healthcare systems and bring these heartless, greedy fraudsters to justice.”

This case was investigated by the U.S. Department of Health and Human Services—Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Veterans Affairs. It was prosecuted by Assistant United States Attorney David W.A. Chee.

Source: United States Department of Justice News

Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Daniel Joseph Tisone (35, Naples) has pleaded guilty to wire fraud, bank fraud, illegal monetary transaction, and possession of ammunition by a convicted felon. Tisone faces a maximum penalty of 30 years in federal prison for each wire fraud and bank fraud count, up to 10 years’ imprisonment on the illegal monetary transaction count, and up to 10 years in federal prison on the possession of ammunition charge.

According to the plea agreement, between March 2020 and April 2021, Tisone, a convicted felon, submitted false and fraudulent Economic Injury Disaster Loan (EIDL), Main Street Lending Program (MSLP), and Paycheck Protection Program (PPP) loan applications to the Small Business Administration, as well as PPP and MSLP approved lenders. The loan applications contained numerous false representations, including the criminal history, average monthly payroll, number of employees, and gross revenues of the applicant, Tisone.

 In support of the fraudulent EIDL, PPP, and MSLP applications, Tisone submitted false and fictitious payroll and tax documents, as well as a fake commercial lease. Further, Tisone fraudulently used the means of identification of individuals who purported to work for Tisone’s companies, including their names, dates of birth, and Social Security numbers (SSN) to submit false and fraudulent payroll and payroll tax documents. Tisone also fraudulently used the means of identification of an individual, including the individual’s name, date of birth, driver license information, and SSN to submit a false and fraudulent EIDL application.

Tisone’s false and fraudulent representations caused the SBA, PPP, and MSLP lenders to approve and fund one MSLP, four EIDL, and five PPP loans, resulting in the deposit of approximately $2,617,447.17 into bank accounts controlled by Tisone. Tisone then unlawfully used the funds for unauthorized purposes and for his own personal enrichment, including the purchase of residences in Naples, Florida, stocks and investment securities, a 2019 Tiara 34LS boat, a 4.02 carat engagement ring, and ammunition.

Additionally, on March 20, 2022, while executing a search warrant at Tisone’s residence, FBI and SIGPR agents discovered rounds of assorted ammunition in Tisone’s master bedroom and garage. Specifically, more than 800 rounds of assorted .223/5.56 caliber ammunition and 9mm ammunition was found in his home. Tisone, a convicted felon, was prohibited from possessing ammunition.

As part of his guilty plea, Tisone agrees to forfeit his interest in a 2019 Tiara 34LS boat, two real properties located in Naples, a 4.02 carat solitaire engagement ring, approximately $65,645.69 seized from two bank accounts, and approximately $2,617,447.17, which are traceable to proceeds of the offense. 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.

The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds. 

The MSLP was designed to provide support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. The program was intended to help companies, that were in sound financial condition prior to the onset of the pandemic, maintain their operations and payroll until conditions normalized.

This case was investigated by the FBI, Special Inspector General for Pandemic Recovery (SIGPR), the IRS – Criminal Investigation, with the assistance from the Federal Reserve Board – Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.

Source: United States Department of Justice

Del 23 al 25 de agosto, una delegación de fiscales, sus jefes de división penal, y jefes de fuerzas de tarea contra el crimen organizado y la droga (OCDETF) de ocho distritos fronterizos viajaron a la Ciudad de México para participar en una serie de reuniones sobre cooperación en seguridad incluyendo esfuerzos para combatir organizaciones del crimen transnacional y esfuerzos el tráfico ilegal de armas, narcóticos y personas. La última reunión de fiscales estadounidenses del suroeste en México se llevó a cabo en marzo de 2020.

El fiscal Gary Restaino del distrito de Arizona, la fiscal en funciones Stephanie Christensen del distrito central de California, el fiscal Randy Grossman del distrito sur de California, el fiscal Alexander Uballez del distrito de Nuevo México, el fiscal Brit Featherstone del distrito este de Texas, el fiscal Chad E. Meacham del distrito norte de Texas, la fiscal Jennifer Lowery del distrito sur de Texas y la fiscal Ashley Hoff del distrito oeste de Texas fueron parte de la delegación estadounidense que comenzó su viaje con una reunión con el embajador de Estados Unidos en México Ken Salazar.

La agregaduría del Departamento de Justicia en la embajada en México organizó las reuniones. La delegación participó en una reunión con varios funcionarios de la Fiscalía General de la República (FGR), incluyendo al subdirector de la oficina de asuntos internacionales y agregadurías Humberto Trujillo Ramos, la subprocurador general especializada en combate a la corrupción Luz Mijangos Borga, el subprocurador para investigaciones penales Felipe de Jesús Gallo Gutiérrez, y el subprocurador para oficinas regionales Germán Adolfo Castillo Banuet. Ambas delegaciones dialogaron sobre cómo pueden fortalecer la coordinación actual en procuración de justicia e intercambio de información.

Además, la Secretaría de Relaciones Exteriores (SRE) recibió a los fiscales y les informó sobre el Marco Bicentenario Estados Unidos-México para la Seguridad, la Salud Pública y Comunidades Seguras. El jefe de la Unidad para América del Norte Roberto Velasco, y el Subsecretario de Seguridad Ciudadana Ricardo Mejía estuvieron presentes por parte de México.

La delegación de fiscales también sostuvo reuniones con cada agencia estadounidense de procuración de justicia representada en la embajada en la Ciudad de México sobre oportunidades y retos. Dialogaron sobre estrategias investigativas y sus compromisos compartidos por proteger la seguridad de nuestra frontera compartida y los ciudadanos en ambos países.

La relación México-Estados Unidos en procuración de justicia es una de nuestras asociaciones más importantes para combatir al crimen transnacional. La delegación estadounidense reiteró el compromiso de Estados Unidos por proteger a ciudadanos estadounidenses y mexicanos, y los líderes de ambos países reafirmaron su compromiso con la cooperación bilateral en procuración de justicia.