Former Navy Sailor Charged in Virginia with Attempted Espionage

NORFOLK, VA—Robert Patrick Hoffman, II, 39, of Virginia Beach, Virginia, has been indicted by a federal grand jury for attempting to provide classified information to individuals who he believed to be representatives of the Russian Federation.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; Lisa Monaco, Assistant Attorney General for the Justice Department’s National Security Division; Juan C. Molina, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; and Charles T. May, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after the indictment was unsealed.
Hoffman was charged in an indictment returned yesterday with attempted espionage, which carries the penalty of imprisonment for any term up to life, if convicted. Hoffman was arrested this morning without incident and is scheduled to make his initial appearance at 2:30 p.m. in federal court in Norfolk before U.S. Magistrate Judge Tommy Miller.
According to the indictment, Hoffman is a U.S. citizen born in Buffalo, New York, who served for 20 years in the U.S. Navy until his retirement on November 1, 2011. While serving in the navy, Hoffman held security clearances that granted him access to classified and national defense information relating to programs and operations in which he participated, and he repeatedly signed agreements to not disclose that sensitive information.
The indictment alleges that on October 21, 2012, Hoffman attempted to deliver to the Russian Federation classified documents that revealed national security information. He is alleged to have carried out this activity with the intent to cause injury to the United States and to give an advantage to the Russian Federation. In fact, Hoffman delivered the information to the FBI, which was conducting an undercover operation, according to the indictment.
The indictment does not allege that the Russian Federation committed any offense under U.S. laws in this case.
This case was investigated by the FBI and NCIS. Assistant U.S. Attorneys Robert J. Krask and Alan M. Salsbury and Trial Attorney Heather M. Schmidt of the Counterespionage Section of the Justice Department’s National Security Division, are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

All Defendants Sentenced in More Than $20 Million Mortgage Fraud Scheme Led by Former Dallas Cowboy Eugene Lockhart

DALLAS—Eugene Lockhart, Jr. was sentenced this week by U.S. District Judge Jorge A. Solis to 54 months in federal prison and ordered to pay approximately $2.4 million in restitution following his guilty plea to one count of conspiracy to commit wire fraud, stemming from his leadership role in a massive mortgage fraud scheme that he and others ran in the Dallas area from approximately 2002 to 2005. Lockhart, of Carrollton, Texas, is the last of 10 defendants who were convicted in the scheme to be sentenced. Lockhart played for the Dallas Cowboys from 1984 to 1990 and used his name and fame, according to evidence in the case, to get business and further the scheme. Judge Solis ordered that Lockhart, who has been on home confinement, surrender to the Bureau of Prisons on January 16, 2012. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement.
Others convicted and sentenced are:

• William Randolph Tisdale, of Dallas, also considered a leader of the scheme along with Lockhart, was convicted at trial on one count of conspiracy to commit wire fraud and one count of bank fraud. He was sentenced to 10 years in federal prison and ordered to pay approximately $1.1 million in restitution.
• Hubert Jones, III, of Garland, Texas, who acted as a lieutenant for Tisdale, was convicted on one count of conspiracy to commit wire fraud, one count of bank fraud, and one count of wire fraud. He was sentenced to 58 months in federal prison and ordered to pay $681,545 in restitution.
• Lendell Beacham, of Desoto, Texas, a mortgage company owner, was convicted on one count of conspiracy to commit wire fraud and one count of wire fraud. He was sentenced to 36 months in federal prison and ordered to pay $947,700 in restitution.
• Patricia Ortega Suarez, of Dallas, an escrow officer, pleaded guilty to two counts of making a false statement to the U.S. Department of Housing and Urban Development (HUD) and was sentenced to 18 months in federal prison and ordered to pay approximately $1 million in restitution.
• Michael Anthony Caldwell, of Arlington, Texas, who was a manager for a title company, pleaded guilty to one count of making a false statement to HUD. He was sentenced to one year and one day in federal prison and ordered to pay $445,100 in restitution.
• Donna Lois Kneeland, of Grand Prairie, Texas, also an escrow officer, pleaded guilty to one count of making a false statement to HUD. She was sentenced to a three-year term of probation and ordered to pay $135,000 in restitution.
• Bryan J. Moorman, of Mesquite, Texas, who acted as a real estate appraiser, pleaded guilty to one count of wire fraud and was also sentenced to a three-year term of probation. He was also ordered to pay $281,200 in restitution.
• Jermaine Frederick Frazier, of Desoto, who acted as a loan processor and lieutenant for Lockhart, pleaded guilty to one count of conspiracy to commit wire fraud. He was sentenced to 46 months in federal prison and ordered to pay approximately $2 million in restitution.
• Scott David Eller, 45, of Mansfield, Texas, a CPA, was convicted on one count of conspiracy to commit wire fraud. He was sentenced to 18 months in federal prison and ordered to pay approximately $1.7 million in restitution.

Lockhart was involved with real estate entities, some formed by him and Tisdale, which had names that were often derived in some fashion from a reference to the Dallas Cowboys, including America’s Team Mortgage; America’s Team Realty; America’s Team Funding Group; Ace Mortgage; Cowboys Realty; Cowboys Mortgage; and KLT Properties. Tisdale was involved with Pinnacle Development and Realty Corporation; Atilla Capital Corporation; and KLT Properties. Jones was involved with Pinnacle Development and Realty Corporation and Atilla Capital Corporation.
The defendants ran a scheme in which they located single-family residences for sale in the Dallas area, including distressed and pre-foreclosure properties, and negotiated a sales price with the seller. They created surplus loan proceeds by inflating the sales price to an arbitrary amount substantially more than the fair market value of the residence.
Generally, they recruited individuals to act as nominee or “straw purchasers” or “straw borrowers,” promising to pay them a bonus or commission of between $10,000 and $20,000 for their participation in a particular real estate transaction. The conspirators caused the loan applications for each straw borrower to include false financial information, often including inflated false income figures to conceal the borrower’s true financial condition so that the lender would more likely approve the loan. The conspirators concealed from the lenders the true status, financial conditions, and intentions of the named borrowers, knowing that loans would not likely be approved if the lender knew the true role, credit worthiness, and risk of each straw borrower. The conspirators falsely represented in loan documents that the straw purchaser intended to use the property as their primary residence, intentionally concealing from the lender that each straw borrower viewed himself as an “investor,” who never intended to occupy the home.
Some of the conspirators also caused bogus and fraudulent “marketing fees” to be listed on loan closing documents to provide a means for the conspirators to receive surplus/excess loan proceeds.
The scope of the conspiracy involved approximately 54 fraudulent residential property loan closings resulting in the funding of approximately $20.5 million in fraudulent loans. The actual loss to lenders is nearly $3 million.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case was investigated by the FBI. Assistant U.S. Attorneys David L. Jarvis and Mark Penley prosecuted.

Suspect Wanted for Five Bank Robberies

Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation (FBI) for the Northern District of Ohio, is seeking information regarding an individual suspected of being responsible for five area bank robberies since October 26, 2012.
The five bank robberies have occurred at the following locations: Dollar Bank, 5201 Wilson Mills Road, Richmond Heights, Ohio, on October 26, 2012; PNC Bank, 2233 Warrensville Center Road, University Heights, Ohio, on October 30, 2012; Ohio Savings Bank, 14033 Cedar Road, South Euclid, Ohio, on November 19, 2012; Dollar Bank, 6563 Brecksville Road, Independence, Ohio, on November 26, 2012; and US Bank, 2211 Lee Road, Cleveland Heights, Ohio, on December 13, 2012.
The subject is believed to be Cetric Sumpter. Sumpter is described as a black male with brown eyes and black hair, 28-years-old, approximately 5’8” tall, and weighing approximately 165 lbs.
Any information regarding the location of Cetric Sumpter should be directed to the Cleveland FBI Field Office at 216-522-1400. Tips can remain anonymous.
A reward is being offered for information leading to the identification and arrest of Cetric Sumpter, the individual believed to be responsible for these five bank robberies.
Any questions regarding this press release should be directed to SA Vicki D. Anderson at 216-522-1400 or vicki.anderson@ic.fbi.gov.
Photos of the suspect, including at robberies, are below.

Robbery at Dollar Bank at 5201 Wilson Mills Rd., Richmond Heights, Ohio, on October 16, 2012
Robbery at PNC Bank st 2233 Warrensville Ctr. Rd. in University Heights, Ohio, on October 30, 2012
Robbery at Ohio Savings Bank at 14033 Cedar Rd., South Euclid, Ohio, on November 19, 2012
Robbery at Dollar Bank at 6563 Brecksville Rd., Independence, Ohio, on November 26, 2012
Robbery at U.S. Bank at 2211 Lee Rd., Cleveland Heights, Ohio, on December 13, 2012

Houston-Area Doctor Convicted in $17.3 Million Medicare Fraud Scheme Involving Fraudulent Claims for Home Health Care Services

WASHINGTON—A federal jury in Houston today convicted Ben Harris Echols, 63, of Houston, for conspiring to commit health care fraud by falsifying plans of care for Medicare beneficiaries, including patients whom he did not treat. After a four-day trial, the jury convicted Echols of one count of conspiracy to commit health care fraud and six counts of false statements relating to health care matters.
Today’s verdict was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office; Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of Inspector General, Office of Investigations; and the Texas Attorney General’s Medicaid Fraud Control Unit.
According to evidence presented at trial, Echols was a physician practicing in the Houston area. The evidence showed that Echols signed plans of care for Medicare beneficiaries so that fraudulent claims could be billed by Family Healthcare Group Inc. and Houston Compassionate Care. Echols would sign plans of care for Medicare beneficiaries who were not under his care and about whose conditions he had no knowledge. In many instances, the evidence showed, Echols would sign plans of care even though other doctors were listed as the attending physician on the documents.
Evidence presented at trial showed that Family Healthcare Group Inc. and Houston Compassionate Care fraudulently billed Medicare for home health services and were paid approximately $17.3 million by Medicare, including $5.5 million for beneficiaries for whom Echols signed a plan of care.
At trial, doctors in whose names claims were submitted to Medicare testified that they were treating the patients on plans of care signed by Echols, and that the patients did not need the care that had been billed to Medicare based on the plans. Two Medicare beneficiaries for whom Echols signed plans of care testified at trial that they had never seen Echols, that they had different primary care physicians, and they did not want or need home health care.
The conspiracy count carries a maximum potential penalty of 10 years in prison and a $250,000 fine; each of the false statements counts carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 14, 2013.
The case was tried by Trial Attorneys Alexander H. Berlin, Abigail B. Taylor and Senior Trial Attorney Joseph S. Beemsterboer, with assistance from Trial Attorneys Kyle Maurer and Alison Anderson of the Criminal Division’s Fraud Section.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and 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 more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is 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

Aurora Man Convicted of Sexual Contact with Female Passenger Aboard Airline Flight to Chicago

CHICAGO—An Aurora man was convicted today of sexually groping the inner thigh of a Chicago-area woman while they were seated next to each other aboard an airplane from Las Vegas to Chicago in June 2011. The defendant, Srinivasa S. Erramilli, who was convicted twice previously of nearly identical crimes, was found guilty of felony abusive sexual contact by a federal jury following a three-day trial in U.S. District Court.
Erramilli, 45, a software consultant, remains free on bond pending sentencing, which was set for April 26, 2013, by U.S. District Judge Joan H. Lefkow. He faces a maximum sentence of two years in prison and a $250,000 fine.
Evidence at the trial showed that Erramilli was the last passenger to board a Southwest Airlines flight to Chicago’s Midway Airport on June 14, 2011, and was seated in the only open seat available between the victim, who had chosen a window seat to sleep during the flight, and her husband, who had chosen an aisle seat to enable easier access during the flight. The couple had traveled to Las Vegas for their 34th wedding anniversary.
The victim, who was wearing shorts during the flight, testified that Erramilli groped her three times aboard the plane. The first time, she awoke to feeling something brush against her thigh; the second time, she testified that she awoke to feeling “pressure” on her thigh. The third time, the victim testified that Erramilli placed his hand up the leg of her shorts and then rubbed and grabbed her inner thigh. She struck Erramilli and yelled at him after realizing that he had been groping her. Other passengers and flight attendants also testified during the trial.
The jury also heard testimony from another victim who was seated in the row in front of Erramilli when he fondled her breast on a flight from Detroit to Chicago in August 1999. Erramilli pleaded guilty to battery in Cook County in 2000 and was sentenced to two years’ probation and five days’ community service. In 2002, Erramilli was sentenced in Federal Court in Detroit to three years’ probation after he was convicted of abusive sexual contact for groping the breast of yet another woman aboard a flight from San Jose, California to Detroit.
The government is being represented by Assistant U.S. Attorneys Bolling W. Haxall and Heather K. McShain.
The verdict was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and Thomas R. Trautmann, Acting Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago Police Department assisted in the investigation.

Las Vegas Man Sentenced to 15 Years in Prison for Robbing Three Banks in May 2011

ALBUQUERQUE—This morning in federal court in Santa Fe, New Mexico, Justin A. Wolaver, 27, of Las Vegas, Nevada, was sentenced to 15 years of imprisonment for robbing three banks, including a bank in Raton, New Mexico, in May 2011. Wolaver will be on supervised release for five years after he completes his prison sentence. He also was ordered to pay full restitution to each of the three victim banks.
U.S. Attorney Kenneth J. Gonzales said that Wolaver pled guilty on July 27, 2012, to (1) the armed robbery of Bank of America in Hudson, Florida, on May 2, 2011; (2) the robbery of Chase Bank in Flagstaff, Arizona, on May 9, 2011; and (3) the armed robbery of the Bank of America in Raton on May 23, 2011.
Court records reflect that Wolaver was arrested after robbing the Bank of America in Raton at gunpoint on May 23, 2011. Wolaver walked into the bank, approached the bank teller, displayed what appeared to be a handgun, and verbally demanded money. After the bank teller provided cash to Wolaver, he fled in a small, white sedan. Officers of the Raton Police Department followed the sedan with lights and sirens as it left the bank. Officers of the New Mexico State Police and Colfax County Sheriff’s Office joined the pursuit when Wolaver tried to outrun the police. Wolaver was apprehended approximately 40 miles south of Raton. After his arrest, Wolaver confessed to robbing the Bank of America in Raton. He also confessed to robbing two other banks earlier that month.
Wolaver has been in federal custody since May 24, 2011. On July 27, 2012, Wolaver agreed to waive his right to be prosecuted in the judicial districts where he committed the out of state crimes and to plead guilty to the bank robberies in Florida and Arizona in the U.S. District Court for the District of New Mexico.
The case was investigated by the Albuquerque Field Office of the FBI, the Raton Police Department, the New Mexico State Police, and the Colfax County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Shammara H. Henderson.

FBI Atlanta Presents Director’s Community Leadership Award

ATLANTA—Today, Special Agent in Charge (SAC) Mark F. Giuliano, FBI Atlanta, presented the Director’s Award for Community Leadership for 2012 to Soumaya Khalifa, founder and executive director of the Islamic Speakers Bureau of Atlanta (ISB). In this role, Ms. Khalifa has facilitated numerous interactive presentations and workshops within the community to provide for a better understanding of American Muslims and how they live their lives. On April 5, 2013, FBI Director Robert S. Mueller will host all of the FBI’s 56 selectees from around the country at a national ceremony to be held at FBI Headquarters with Ms. Khalifa present as Atlanta FBI’s honoree.
Ms. Khalifa, born in Alexandria, Egypt, raised in Texas, and earning degrees at the University of Houston and Georgia State University, saw the need to educate and inform others unfamiliar with the Islamic faith based communities. As an extension of her duties at the ISB, Ms. Khalifa is president of her consulting firm, Khalifa Consulting, which specializes in various diversity based training.
Ms. Khalifa is a recent graduate of the FBI’s Citizens Academy and has added valuable insight into various issues surrounding her community and serves as a conduit to other communities within the Atlanta area. Under her leadership, the ISB is committed to upholding the right to freedom of expression and unconditionally condemns any use of violence as a means to protest offensive or hateful speech.
In addition, Ms. Khalifa works with students, business executives, and even military members in providing an informative lunch time program used to address common stereotypes regarding the Muslim community.

Four-Time Fraudster Sentenced to 44 Months in Prison

BALTIMORE—U.S. District Judge Marvin J. Garbis sentenced Ronald Louis Coleman, age 65, of Baltimore, today to 44 months in prison, followed by three years of supervised release, for using one or more unauthorized credit and/or debit cards. Judge Garbis also ordered Coleman to pay restitution of $102,314.54.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Coleman’s plea agreement, from March through December 9, 2011, Coleman possessed a skimmer device, which he provided to an employee of a popular Baltimore restaurant so that the employee could obtain the credit card numbers from patrons of the restaurant as they paid their bills. The employee skimmed a number of cards each week and then turned the skimmer over to Coleman, who downloaded the information using a computer. Coleman used the information to encode blank cards with the stolen credit card account number and then he and others used the cards to obtain cash at ATMs and to purchase merchandise and services.
During the same time, Coleman directed other individuals to call American Express, posing as an American Express employee, to obtain access to active and closed accounts in the American Express computer system. In this way, Coleman caused American Express to remove holds that were placed on accounts, to issue unauthorized credit cards, and to have those cards mailed to an address provided by Coleman. Coleman removed the cards from the mail, or directed others to do so, and then he and others used the unauthorized cards to make purchases. A search of Coleman’s home on December 9, 2011, recovered three blank cards encoded with different American Express credit card numbers belonging to individuals living outside Maryland. The investigation showed that at least 10 American Express accounts were compromised, and the total loss to American Express is between $70,000 and $120,000.
At the time of this activity, Coleman was on supervised release for a previous federal conviction related to credit card fraud and had been convicted of similar crimes two other times.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Richard C. Kay, who is prosecuting the case.