PORTLAND, Maine: A Rumford man was sentenced today in U.S. District Court in Portland for willfully evading the payment of employment taxes.U.S. District Judge John A. Woodcock, Jr. sentenced Jeffrey Richard, 50, to 12 months and one day in prison followed by three years of supervised release. He was also ordered to pay $910,980.37 in restitution to the IRS. Richard pleaded guilty on July 17, 2023.According to court records, between 2013 and 2017, Richard willfully attempted to evade payment of employment withholding taxes owed by his company, Black Bear Industrial, Inc. Despite being aware of the company’s unpaid employment tax liability, Richard took a variety of steps to evade payment. He regularly used funds from Black Bear’s business bank account to make business and personal purchases, all while making no payments toward Black Bear’s tax liability. He also created two nominee companies and took steps to disguise his ownership of the companies. He falsely represented to an IRS revenue officer that he had anything to do with one of the companies. The other company did business and had over $174,000 of business income in 2017, but none of the money was used to pay the IRS. Richard never informed the IRS about the company, and the company never filed any corporate or employment tax returns.“Today’s sentencing of Jeffrey Richard sends a strong message to all individuals and businesses that think they are above the law and can evade their obligation to pay their fair share of taxes,” said Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Richard knowingly chose to steal and cheat from every America taxpayer when he selfishly chose to use business funds for personal purchases and took other steps to evade paying his tax liability. Tax evasion is not a victimless crime, it impacts every American by stealing resources vital to fund schools, maintain public infrastructure and enhance social welfare.”IRS Criminal Investigation investigated the case.###
PORTLAND, Maine: United States Attorney Halsey B. Frank today announced that a Bangor ambulance company has agreed to pay $138,285.30 to settle allegations that it violated the federal False Claims Act (“FCA”).
The civil settlement agreement resolves allegations that Meridian Mobile Health, L.L.C., doing business as Capital Ambulance (“Capital”), improperly billed Medicare for nonemergency ambulance transportation of patients discharged from Eastern Maine Medical Center (“EMMC”) from October 2016 through February 2018. The government contended that such patients were not “bed-confined,” and did not otherwise medically require transportation by ambulance. The government also contended that EMMC personnel provided Capital with certification statements containing incomplete or incorrect information about the medical necessity of transporting the patients via ambulance, information Capital later used to bill Medicare.
Prior to the government’s lawsuit, Capital identified instances where it had billed and received payment from Medicare for nonemergency ambulance transports originating at EMMC that were not medically necessary. Capital voluntarily disclosed these results to the U.S. Attorney’s Office for the District of Maine. Capital also cooperated throughout the investigation, and implemented enhanced internal compliance and remedial measures. Federal authorities encourage health care providers to cooperate with investigations involving the possible submission of false claims to federal programs. Entities or individuals that make proactive, timely and voluntary self-disclosures to the U.S. Attorney’s Office may receive credit during the resolution of a later FCA case.
The U.S. Department of Health and Human Services, Office of Inspector General investigated the case. The civil action is docketed United States v. Meridian Mobile Health, L.L.C. d/b/a Capital Ambulance, 19-cv-00440-JDL (D. Me.)
Portland, Maine: More than $65 million in Department of Justice grants is available to help communities combat human trafficking and serve adults and children who are victimized in trafficking operations, U.S. Attorney Halsey B. Frank announced today.
“Our nation is facing difficult challenges, none more pressing than the scourge of human trafficking. Human traffickers pose a dire threat to public safety and countering this threat remains one of the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight against this insidious crime. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs that support human trafficking task forces and services for human trafficking survivors.
A number of funding opportunities are currently open, with several more opening in the near future.
Missing and Exploited Children Training and Technical Assistance Program
PORTLAND, Maine: A Westbrook woman was sentenced in U.S. District Court in Portland for serving as a “money mule” for someone she met online. A money mule is someone who transfers or moves illegally acquired money on behalf of someone else.
Chief U.S. District Judge Jon D. Levy sentenced Cheryl White, 58, to three years of probation. She was also ordered to pay $7,340 in restitution to the Federal Emergency Management Agency (FEMA). White pleaded guilty on May 19, 2022.
According to court records, White met an unknown person on the internet. At their request, White purchased prepaid debit cards and provided the card numbers to the person. She was later contacted by the person and informed that the cards had been loaded with money. In October 2017, White withdrew the money from the cards and used the funds to purchase money orders which she deposited into her bank account. She withdrew the money days later and mailed most of the money to an address provided by the person she met online.
The money loaded onto the prepaid cards came from FEMA, which had issued the money based on false and fraudulent claims for disaster relief filed with the agency. Although White did not file the false claims, she admitted that she knew the money came from some type of crime. Two banks had previously closed her accounts due to similar conduct, with one bank informing her that her deposits and withdrawals were part of a fraud scheme. White nonetheless continued the same conduct.
The Department of Homeland Security, Office of Inspector General (DHS OIG) investigated the case with assistance from FEMA’s Fraud Prevention and Investigations Branch and the Westbrook Police Department.
Money Mule Scams: Acting as a money mule is illegal and punishable even if you aren’t aware that you are committing a crime. If you are a money mule, you could be prosecuted and incarcerated as part of a criminal money laundering conspiracy. Some money mules know they are supporting criminal enterprises; others are unaware that they are helping criminals profit. Criminals often target students, those looking for work, or those on dating websites, but anyone can be approached to be a money mule. Learn more about money mule scams at https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/money-mules.
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Jamie Hussey, 35, of Gorham, Maine, pleaded guilty in U.S. District Court to committing federal program fraud.
Court records show that between February 2014 and September 2016, the defendant embezzled over $91,577 from the South Portland Housing Authority (SPHA), an agency that that administers public housing units and that receives federal benefits each year under programs administered by the U.S. Department of Housing and Urban Development (“HUD”). The defendant was employed as the SPHA Resident Services Coordinator for the Family Self-Sufficiency Program (FSS), a program that promotes the development of local strategies to coordinate public and private resources that help public housing tenants obtain employment that will enable participating families to achieve economic independence. Under this program, a participant can earn monetary credits that are placed in an escrow account based upon the participant meeting certain goals. Upon successfully completing a FSS contract, a participant may claim funds in their escrow account if no family member is receiving welfare assistance. The defendant caused 48 checks to be issued in the names of FSS program participants and deposited into her personal bank account. None of the participants ever requested these checks, nor received any proceeds of the checks.
Hussey faces up to 10 years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by HUD-Office of the Inspector General and the South Portland Police Department.
Wilmington, Del. – A Wilmington man was sentenced today to 80 months in federal prison for leading a fraud scheme that resulted in more than $9.1 million in disaster-relief loans being issued to more than 60 businesses across the country. None of the loans were ever repaid. According to court documents, Jady Solano, 43, was a tax preparer in Wilmington. Solano used his tax expertise to prepare fraudulent applications for loans available under the Paycheck Protection Program—a COVID-19 relief program designed to safeguard workers’ jobs during the pandemic. Solano prepared the applications on behalf of shell companies that, in fact, had no operations or employees. Solano falsely claimed, however, that the companies had substantial payrolls, sometimes north of $1 million annually. Solano also created false documents, including false tax forms and bank statements, to support the applications. In total, Solano prepared 62 fraudulent applications, resulting in more than $9.1 million in wrongful loan disbursements. Solano personally received nearly $1.4 million through the scheme, all of which he must repay to the federal government pursuant to a restitution order to be entered by the U.S. District Court. Across two charging instruments, seven other members of Solano’s scheme have been charged. Those members are:DefendantCase NumberStage of CaseShatoya Moss24-cr-91-2 (JLH)Guilty plea entered; sentenced to 18 months in prison and restitution of $578,133.09Carl Lawrence24-cr-109-1 (JLH)Acceptance of guilty plea recommended by U.S. Magistrate Judge; recommendation now under review by U.S. District JudgeBrigitte Miller-Levy24-cr-109-2 (JLH)Indicted[1]Amber Baldwin24-cr-109-3 (JLH)IndictedMarvin Edwards24-cr-109-4 (JLH)IndictedAnthony McKinzy24-cr-109-5 (JLH)IndictedDevlon Porter24-cr-109-6 (JLH)IndictedJulianne Murray, U.S. Attorney for the District of Delaware, stated, “The American taxpayers work hard for their money. And we will work hard to ensure that, when taxpayer money is misused—through waste, fraud, or abuse—the wrongdoers are brought to justice. Jady Solano led a nationwide scheme to steal more than $9 million from the federal government. And the funds he stole were meant for an especially important purpose: helping American workers keep their jobs during a deadly pandemic. Solano’s egregious misconduct warranted the substantial prison sentence the Court handed down today. We hope that sentence sends a message to other potential white-collar criminals: in this District, financial crimes simply will not pay. We thank our law enforcement partners at IRS-CI and the FBI for their tireless and terrific work on this important case.” “Today's sentencing of Jady Solano again emphasizes that the Internal Revenue Service-Criminal Investigation will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system,” stated Yury Kruty, Special Agent in Charge, IRS-Criminal Investigation, Philadelphia Field Office.“62 times – over and over and over again – Solano fabricated, embellished and lied to steal millions from the government and ultimately, every taxpaying citizen. Now he will pay for each of those lies with this lengthy sentence,” said FBI Baltimore Special Agent in Charge William J. DelBagno. “The FBI will continue to partner with our fellow agencies to identify and unravel these fraud schemes and bring criminals to justice.”First Assistant U.S. Attorney Benjamin L. Wallace prosecuted the case. Agents of the Internal Revenue Service, Criminal Investigation and the FBI Baltimore Field Office’s Wilmington Resident Agency investigated the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information are located on the website of the U.S. District Court for the District of Delaware or on PACER by searching for Case Nos. 24-cr-91 and 24-cr-109. [1] For all defendants who have been indicted and not adjudicated guilty, their involvement in the fraud scheme described above is merely an allegation, and they are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
PORTLAND, Maine: A Rumford man pleaded guilty today in U.S. District Court in Portland to willfully evading the payment of employment taxes.
According to court records, between 2013 and 2017, Jeffrey Richard, 48, willfully attempted to evade payment of employment withholding taxes owed by his company, Black Bear Industrial, Inc. Despite being aware of the company’s unpaid employment tax liability, Richard took a variety of steps to evade payment. He regularly used funds from Black Bear’s business bank account to make business and personal purchases, all while making no payments toward Black Bear’s tax liability. He also created two nominee companies and took steps to disguise his ownership of the companies. He falsely represented to an IRS revenue officer that he had anything to do with one of the companies. The other company did business and had over $174,000 of business income in 2017, but none of the money was used to pay the IRS. Richard never informed the IRS about the company, and the company never filed any corporate or employment tax returns.
Richard faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
PORTLAND, Maine: A Falmouth man pleaded guilty today in U.S. District Court in Portland to tax evasion.According to court records, Jeffrey Riddle, 58, filed federal income tax returns for 2006 through 2014, reporting that he owed substantial federal tax. Despite reporting that he owed taxes, Riddle did not pay.The IRS began trying to collect Riddle’s back taxes in 2010, filing notices of federal tax liens on property and levies on his bank account. In 2015, while still owing substantial back taxes, Riddle created a new business, Silica Marketing LLC, and entered into a lucrative consulting agreement with a large tire retailer. Riddle put the ownership of the company under his then-wife’s name despite the company’s sole revenue coming from his consulting work and using the proceeds to pay personal expenses. When meeting with the IRS revenue officer assigned to collect his back taxes, Riddle stated that he earned $6,000 a month in wages from Silica and provided the IRS with a falsified letter showing he would be paid a $3,000 bi-monthly salary. He failed to disclose that he had signed a consulting agreement as Silica’s president and CEO and that Silica was receiving substantial income from that contract. Riddle also failed to disclose that money paid to Silica was being used to pay his personal expenses. Among the expenses paid for with Silica funds was the down payment on a home on Great Diamond Island in 2016, purchased in Silica’s name. In 2017, Riddle created a new company to replace Silica, continuing to consult with the same tire retailer. In 2020, Riddle sold part of the company for $400,000, and $250,000 was placed in escrow for the purpose of satisfying Riddle’s tax debt. None of the funds were paid to the IRS. On the day the partial sale of his company closed, Riddle purchased a Corvette, titling it in his company’s name.Riddle faces up to five years imprisonment and a fine up to $250,000 to be followed by up to three years of supervised release.IRS Criminal Investigation investigated the case.###
PORTLAND, Maine: U.S. Attorney Darcie N. McElwee joined Maine Attorney General Aaron Frey today to affirm their commitment to ensuring safe, unfettered access to reproductive health care services in Maine for all who seek it.
McElwee and Frey have committed to open lines of communications and, when appropriate, to share intelligence and information in order to facilitate efficient decision-making in protecting reproductive rights. They also committed resources of their respective offices to work together to conduct a series of outreach sessions with stakeholders, such as reproductive service providers and advocates, to send a clear message that law enforcement at all levels will protect reproductive rights in Maine.
“In Maine, there is a legal right to choose whether to have an abortion, and we are committed to ensuring that anyone who seeks reproductive care in Maine has unobstructed access to consultation with the medical providers and health services they choose,” said U.S. Attorney Darcie N. McElwee.
“We want it known that our offices will not allow any interference in the rights of citizens to access abortion services in Maine,” said Attorney General Aaron Frey. “Our offices will not hesitate to take every legal action to ensure the free access to reproductive health care and legal abortion services.”
U.S. Attorney McElwee emphasized that the right to safe reproductive health services in Maine extends to those who travel from states where abortion access is limited or nonexistent.
“Restricting access to safe abortions provided by caring and qualified health care providers has the greatest impact on people of color and those with limited financial resources,” McElwee said. “Millions of Americans are being deprived of the right to make personal choices that are available here in Maine. If they chose to come to Maine, we will do everything within the law to ensure they have safe access to the health care services that brought them here.”
The federal government may bring criminal charges under the Freedom of Access to Clinic Entrances (“FACE”) Act, which prohibits obstructing access to reproductive health services through violence, threats of violence, or property damage. The statute protects all patients, providers, and facilities that provide reproductive health services, including pro-life pregnancy counseling services and any other pregnancy support facility providing reproductive health care. Both the federal government and state attorneys general may file civil actions for FACE Act violations to obtain remedies not available through a criminal prosecution.
The State also has authority under the Maine Civil Rights Act to bring a civil or criminal enforcement action against individuals who intentionally interfere with a patient’s access to reproductive healthcare by obstructing access to the clinic or knowingly entering the medical safety zone around the entrance to the clinic.
Anyone with knowledge of FACE Act violations in Maine can contact the local office of the FBI at 207-541-0700.
“In collaboration with the Maine Attorney General’s Office, the U.S. Attorney’s Office for the District of Maine will continue to do everything within our legal authority to protect reproductive freedom,” McElwee said. “And we will use every tool available to keep Maine patients and health care providers safe.”
BANGOR, Maine: A Guatemalan national pleaded guilty in federal court today to entering the United States after a prior removal, U.S. Attorney Darcie N. McElwee announced.
According to court records, in June 2022, the Hancock County Sheriff’s Office detained seven individuals following a traffic stop in Dedham. Records revealed that none of the subjects had legal status in the U.S., and all seven admitted crossing from Mexico on foot. Upon arrival at the Calais Border Patrol Station, an immigration database search confirmed that the seven individuals were illegally present in the U.S. and further revealed that Cruz Isabel Mayen-Dubon, 35, a citizen and national of Guatemala, had previously been removed from the U.S. in June 2007, May 2010, August 2012, October 2012 and January 2016.
Mayen-Dubon faces up to two years in prison and a $250,000 fine. He also faces not more than one year of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Border Patrol and the Hancock County Sheriff’s Office investigated the case.
