Month: February 2023

Source: United States Department of Justice News

NEWARK, N.J. – A former office manager of a New Jersey medical practice admitted conspiring with the doctor who owned the practice to distribute prescription amphetamine to patients without a legitimate medical reason, U.S. Attorney Philip R. Sellinger announced. 

Noel DeLeon, 55, of North Arlington, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of knowingly and intentionally conspiring to distribute dextroamphetamine-amphetamine (brand name Adderall), a Schedule II controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose.

According to documents filed in this case and statements made in court:

From January 2018 to March 2021, DeLeon worked as an office manager for a New Jersey medical practice owned by a doctor. The doctor performed no meaningful evaluation of patients and the interactions between the doctor and patients generally took less than five minutes. The medical practice kept inadequate patient medical records. For some patients, the patient files only contained contact and prescription information, but did not detail any meaningful evaluation or assessment. For other patients, no patient files were kept. 

After prescribing medications to a patient, including high dosage amphetamines, DeLeon or the doctor would typically collect a cash payment from the patient before providing the prescription. For prescription refills, patients would also contact DeLeon directly by sending text messages to his personal cellular phone. DeLeon would order the prescription refill at the patient’s pharmacy and collect payment from the patient, typically through an electronic payment application on DeLeon’s personal cellular phone. At times, certain patients provided cash bribes to DeLeon in order to receive their prescription refills faster.

The charge of conspiracy to distribute amphetamines carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for June 22, 2023.

U.S. Attorney Sellinger credited diversion investigators and special agents of the Drug Enforcement Administration, under the direction of Acting SAC Daniel J. Kafafian, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Adam Baker of the Opioid Abuse Prevention and Enforcement Unit in Newark.

Defense counsel: Tess Cohen Esq., New York

Source: United States Department of Justice News

This morning, U.S. federal law enforcement arrested two U.S. citizens and a legal permanent resident living in South Florida and one U.S. citizen living in Tampa pursuant to criminal complaints on charges relating to their participation in the events leading to the July 7, 2021, assassination of President Jovenel Moïse of Haiti. Following the arrests, a South Florida grand jury returned a third superseding indictment charging these four individuals, along with seven others previously arrested and charged in the United States for their alleged roles in the plot.

The four men arrested in Florida today are: Arcangel Pretel Ortiz, 50, a Colombian national and U.S. permanent resident of Miami; Antonio Intriago 59, a Venezuelan-American of Miami; Walter Veintemilla, 54, of Weston; and Frederick Bergmann, 64, of Tampa.

They made their initial federal court appearances today at 2:00 p.m. in Miami before U.S. Magistrate Judge Lauren Louis.

“Today, individuals who we allege participated in the planning, financing, and orchestration of the assassination of Haitian President Jovenel Moïse will face justice in an American courtroom,” said Attorney General Merrick B. Garland. “The court documents unsealed today outline an alleged plan by the defendants, some of whom were operating within the United States, to remove President Moise from office by either killing or kidnapping him in order to replace him with a candidate who would serve their political goals and financial interests. The Justice Department will not tolerate individuals plotting violent attacks from U.S. soil that undermine the rule of law abroad.”

“Today’s arrests show the FBI’s commitment to vigorously pursue the individuals involved in the brazen plot to kidnap or kill the former Haitian president,” said FBI Director Christopher Wray. “As demonstrated by this case, the men and women of the FBI will work tirelessly across borders and oceans to uphold the rule of law. The FBI will not tolerate these acts of violence perpetrated abroad against our international partners.”

“Today marks the culmination of a nearly two-year investigation into the assassination of President Moïse. Homeland Security Investigations special agents leveraged their authority to further investigative efforts with whole-of-government partners to bring justice to the Moïse family and people of Haiti,” said Deputy Secretary John K. Tien of the Department of Homeland Security. “The Department of Homeland Security is deeply committed to combating transnational organized crime. To those engaged in illicit activities, let today stand as a reminder that we remain relentless and vigilant in holding you accountable and dismantling your unlawful operations.”

With today’s arrests, 11 people now face charges in the Southern District of Florida in connection with the assassination. The third superseding indictment charges Ortiz, Intriago, and Veintemilla as well as James Solages, 37, Joseph Vincent, 57, and German Alejandro Rivera Garcia, 44, who were transferred into U.S. custody last month; Mario Antonio Palacios Palacios, 43, arrested January 2022; Rodolphe Jaar, 49, arrested January 2022; and Joseph Joel John, 51, arrested May 2022. These defendants – Ortiz, Intriago, Veintemilla, Solages, Vincent, Rivera, Palacios, Jaar and John – are charged with conspiracy to provide material support and resources to a conspiracy to kidnap or kill outside the United States, resulting in death; providing material support and resources to a conspiracy to kidnap or kill outside the United States, resulting in death; and conspiracy to kill or kidnap a person outside the United States.

The superseding indictment additionally charges Christian Emmanuel Sanon, 64, and Bergmann with conspiracy to commit export violations; submitting false and misleading export information; and smuggling ballistic vests from the United States to Haiti. As with Solages, Vincent and Rivera, Sanon was transferred from Haitian custody into U.S. custody last month.

“A central tenet of every democracy in the world is that those who want to change their government, must do so peacefully — through ballots, not bullets. These defendants thought they could secure immunity for their crimes,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will now deliver justice in a U.S. courtroom.”

“Haiti is no stranger to hardship and suffering. While most human beings would consider events that destroy hundreds of thousands of lives, homes, schools and infrastructure tragedies, there are others who consider them opportunities to gain money and power,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “When greed and ambition lead to violations of U.S. law, we will prosecute.” 

“Homeland Security Investigations (HSI) leveraged its expertise in investigating transnational crime to identify the international network of co-conspirators who allegedly sought to overthrow the Haitian government through violence,” said Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson of the U.S. Immigration and Customs Enforcement. “HSI continues to work with domestic and international law enforcement partners to investigate transnational criminal organizations that pose a significant threat to global security.”

According to court documents, from at least February 2021 to July 2021, South Florida served as a central location for planning and financing the plot to oust President Moïse from power and replace him with someone who would serve the coconspirators’ political goals and financial interests.

Ortiz and Intriago are principals of Counter Terrorist Unit Federal Academy and Counter Terrorist Unit Security (collectively, CTU), and Veintemilla is a principal of Worldwide Capital Lending Group (Worldwide). CTU and Worldwide are South Florida companies. According to charging documents, Bergmann, who lived in Tampa, had ties to Sanon, a dual Haitian-American citizen who held political aspirations in Haiti.

As alleged, in April 2021, Ortiz, Intriago, John, Solages and Sanon met in South Florida and agreed to a plan: Ortiz and Intriago – through CTU – would support ousting Haitian President Moïse and replacing him with Sanon. In exchange, once Sanon became President, he would award lucrative contracts to CTU for infrastructure projects in Haiti, the provision of security forces, and the provision of military type equipment to a Sanon-led Haitian government, according to the allegations.

It is alleged that in late April 2021, Veintemilla and his company Worldwide, agreed to help finance the coup d’etat, extending a $175,000 line of credit to CTU and sending money to co-conspirators in Haiti to purchase ammunition. Veintemilla expected to reap significant financial benefits through Worldwide should President Moïse be replaced as president, as did Ortiz and Intriago through CTU.

Further planning and spending continued in South Florida from April to June 2021, according to the charging documents. For example, Ortiz and Intriago, as principals of CTU, retained a group of about 20 Colombian nationals with military training (including Rivera and Palacios) to provide security to Sanon. Bergmann became a supporter and investor who helped fund the Colombians’ lodging in Haiti and worked with Sanon and Intriago to ship 20 CTU-branded ballistic vests from South Florida to Haiti by falsifying the required export documentation.

By June 2021, the plan evolved as Ortiz, Intriago, Veintemilla and others apparently realized that Sanon had neither the constitutional qualifications nor the popular support of the Haitian people to become President. They shifted their support from Sanon to a former Haitian Supreme Court judge. This new candidate contracted with CTU and Worldwide to serve the companies’ financial interests upon becoming President.

It is also alleged that by June 2021, the plot progressed from forcibly removing Moïse from power to assassinating him. In particular, the conspiracy began to focus on assassination after an unsuccessful effort to seize President Moïse on a return trip to Haiti and spirit him away by airplane to a location outside the country.

According to the charging documents, from South Florida, Ortiz and Intriago managed and directed other members of the conspiracy – including Solages, a CTU representative in Haiti (who coordinated with Vincent and Sanon) and the Colombian nationals who participated in the assassination (through Rivera and/or another Colombian leader in Haiti who was killed while attempting to leave the scene of the assassination).

It is alleged that John, a former Haitian Senator, and Jaar both helped secure weapons and provided other support.

On July 6, 2021, co-conspirators met at a house near President Moïse’s residence, where firearms and equipment were distributed, and it was announced that the mission was to kill President Moïse, according to the allegations. On July 7, 2021, several individuals arrived outside President Moïse’s residence, some of whom were wearing CTU-branded ballistic vests. They entered the President’s home and killed him.

If convicted, Ortiz, Intriago, Veintemilla, Solages, Vincent, Garcia, Palacios, Jaar and John face up to life in prison. Bergmann and Sanon face up to 20 years if convicted. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office, and Acting Special Agent in Charge Michael E. Buckley of HSI Miami made the announcement.

The FBI and HSI investigated these cases, with valuable assistance provided by the Department of State; Bureau of Alcohol, Tobacco, Firearms and Explosives; the Department of Commerce, Bureau of Industry and Security Office of Export Enforcement; and the Department of Defense’s Criminal Investigative Service.

Assistant U.S. Attorneys Andrea Goldbarg and Monica Castro for the Southern District of Florida, Trial Attorneys Frank Russo and Jessica Fender of the National Security Division’s Counterterrorism Section, and Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture. The Justice Department’s Office of International Affairs provided valuable assistance.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice

A federal grand jury in Miami returned an indictment today charging a Florida man with willfully failing to pay over employment taxes and to file individual income tax returns.

According to the indictment, from 2009 to 2019, Paul Walczak of Palm Beach Gardens owned multiple health care companies, including NuVista, Palm Health Partners and a health care employment company called PHP Employment Services, LLC (PHPES), which he formed in July 2010. As the owner of PHPES, Walczak allegedly exercised control over the business’s finances and was responsible for paying over to the IRS the employment taxes, including federal income, Social Security, and Medicare taxes, withheld from his employees’ wages. The indictment alleges that from 2016 to 2019, Walczak did not pay over to the IRS more than $6 million in withholdings.  

The indictment further charges that from 2016 through 2018 Walczak received a gross annual salary of at least $360,000 from the health care companies. In addition to his salary, he allegedly received significant wire transfers from his companies. Rather than pay over the withheld funds to the IRS, the indictment alleges Walczak used funds to invest in his businesses, purchase a yacht, lease luxury vehicles and charter private international flights.

Finally, the indictment charges Walczak with not filing personal income tax returns for 2018, 2019 and 2020.

If convicted, Walczak faces a maximum penalty of five years in prison for each employment tax count and one year for each failure to file a tax return count. He also faces a period of supervised release, restitution, and monetary penalties. 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 made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Francesca Bartolomey and Mitchell Galloway of the Justice Department’s Tax Division are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice

A Michigan man was convicted today of filing false tax returns and making false statements to both a bankruptcy court and the Department of Justice.

According to court documents and evidence presented at trial, Donald Stanley LaVigne, formerly of Lake Orion, did not report insurance commissions and other income on tax returns he filed with the IRS for the years 2013 through 2019. In letters he sent to the IRS, LaVigne also falsely claimed that these commissions were not income to him.

When LaVigne filed for bankruptcy in 2018, he did not list the IRS as a creditor on the schedules attached to his bankruptcy petition even though he owed taxes to the IRS for the years 2008 and 2009 and 2013 through 2015. On one document he filed in the bankruptcy case, LaVigne also understated his income for the years 2016 and 2017.

Finally, LaVigne made a false statement to the Department of Justice. After he was notified that he was the target of a federal grand jury investigation, LaVigne sent a letter to the Department of Justice in which he falsely claimed that his bankruptcy attorney had reviewed his 2017 income tax return and advised him that it was “correct and complete.” In fact, his bankruptcy attorney testified that he had never advised LaVigne that his 2017 income tax return was accurate. 

Sentencing is scheduled for June 1. LaVigne faces a maximum penalty of three years in prison on each of seven counts of filing false tax returns, five years in prison on each of two counts of making false statements in bankruptcy, and five years in prison for making a false statement to the Department of Justice. He also faces a period of supervised release, restitution and monetary penalties. 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 made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Melissa S. Siskind and Catriona M. Coppler of the Justice Department’s Tax Division are prosecuting the case.

Source: United States Department of Justice News

Michigan man pleaded guilty today to money laundering and obstructing the IRS.

According to court documents and statements made in court, from approximately 2008 through 2017, Matthew D. Adams, of Grosse Point Park, owned a property management company, MDA Property Services. Adams sold illegal narcotics to the president of Company A, who paid for the drugs using Company A’s funds. The buyer paid Adams with checks made out to MDA Property Services, and other entities Adams owned, so that they would appear to be legitimate payments for purported services rendered by Adams. From 2013 through 2017, the buyer paid Adams more than $10 million for illegal narcotics. 

Adams deposited some of the checks into his personal and business bank accounts, and cashed the remainder, totaling approximately $5.3 million, at a local liquor store. For tax years 2013 through 2016, Adams caused his tax return preparer to prepare false business and individual tax returns by providing the return preparer solely business bank records, knowing that they did not reflect all of the illicit proceeds. In 2017 and 2018, during an audit of Adams’s business and individual tax returns, Adams falsely told the IRS that all income his business received was deposited into business bank accounts and that 90% percent of the funds MDA Property Services received from Company A through the buyer was for legitimate work, whereas Adams knew only three percent was, in fact, business-related.

During the course of his criminal conduct, Adams withdrew more than $1 million in cash of his illegal narcotics proceeds from business bank accounts and also used funds to acquire real estate.  In addition, he spent over $1.25 million on private flights, golfing, jewelry, gambling, court-ordered child support, hotel stays and to purchase a firearm. Adams also bought a Cadillac Escalade, a Hummer and multiple classic cars.

Adams is scheduled to be sentenced on June 21, 2023 and faces a maximum penalty of three years in prison for obstructing the IRS and ten years in prison for money laundering. He also faces a period of supervised release, restitution, and monetary penalties. 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 Goldberg of the Justice Department’s Tax Division made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Sam Bean and Jeffrey McLellan of the Justice Department’s Tax Division are prosecuting the case.