District of Columbia
Press releases recorded for this federal judicial district.
Grand Jury Returns 20-Count Indictment Charging Darron Wint in Murders of Four People During Home InvasionRead the Press Release
WASHINGTON – An indictment was returned today charging Darron Dellon Dennis Wint with a total of 20 felony charges, including first-degree murder while armed, burglary, kidnapping, extortion, arson, and theft, in the slayings last May of Savvas Savopoulos, his wife, Amy Savopoulos, their son, Philip Savopoulos, and a household employee, Veralicia Figueroa.
The indictment, returned by a grand jury in the Superior Court of the District of Columbia, was announced by U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Wint, 35, of Lanham, Md., also known as Daron Dylon Wint, was charged with crimes that took place May 13 and May 14, 2015, during a home invasion of the Savopoulos family residence in Northwest Washington. He is to be arraigned on the charges on Friday, Feb. 19, 2016, at a hearing before the Honorable José M. López.
According to the indictment, Wint entered the Savopoulos home, seized and kidnapped the four victims, stole $40,000 through means of extortion, murdered the victims, and set fire to the house. After responding to reports of the fire, authorities discovered the bodies of Savvas Savopoulos, 46, Amy Savopoulos, 47, Philip Savopoulos, 10, and Veralicia Figueroa, 57.
Wint was indicted on a total of 12 counts of first-degree murder while armed, all with aggravating circumstances. The charges include four counts of first-degree murder while armed (felony murder) in the course of a kidnapping; four counts of first-degree murder while armed (felony murder) in the course of a burglary, and four counts of first-degree premeditated murder while armed. In addition, the grand jury indicted Wint on four counts of kidnapping and one count each of first-degree burglary, extortion, arson, and first-degree theft.
In addition to the various substantive crimes specified in the indictment, the indictment charges Wint with specified “aggravating circumstances,” including one finding that the murders were especially heinous, atrocious or cruel. If these are found by a jury at trial, Wint could face a maximum of life imprisonment without the possibility of release on each of the 12 murder charges. Each of the murder charges carries a mandatory minimum prison term of 30 years.
Additionally, each of the kidnapping counts involving the three adult victims carries a maximum sentence of 30 years; the kidnapping count involving Philip Savopoulos carries up to 45 years. First-degree burglary also carries a 30-year maximum prison sentence, and arson, extortion, and first-degree theft have maximum prison terms of 10 years each.
Wint was arrested May 21, 2015 and has been in custody ever since. He initially was charged with one count of first-degree murder while armed in the death of Savvas Savopoulos.
The investigation into the murders is continuing.
An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips and Chief Lanier praised the efforts of those who have investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of the many other agencies that have provided assistance, including the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Secret Service, the District of Columbia Department of Fire and Emergency Medical Services, the Prince George’s County, Md., Department of Fire and Emergency Medical Services, and the District of Columbia Department of Forensic Sciences.
They commended the work of those who are handling the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker and Paralegal Specialists Kendra Johnson and Meridith McGarrity. Finally, they acknowledged the efforts of Assistant U.S. Attorneys Laura R. Bach and Emily A. Miller, who are investigating and prosecuting the case.
Chiropractor Sentenced for Obstructing Investigation of Health Care Fraud Involving D.C. Medicaid ProgramRead the Press Release
WASHINGTON – Rehman Mirza, 43, a chiropractor who practiced in Suitland, Md., was sentenced today to seven months in prison and an additional six months in home confinement after earlier pleading guilty to obstructing a criminal health care fraud investigation, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Mirza, of Woodbridge, Va., pled guilty in May 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Ketanji Brown Jackson, who found Mirza’s conduct “egregious” and held that he had “abused a position of public trust.” In addition to prison and home confinement, the Court ordered Mirza to pay $48,450 in restitution to the D.C. Medicaid program and to perform 40 hours of community service.
The underlying fraud involved D.C. Medicaid payments for home care services to be performed by personal care aides, working for home care agencies. Personal care aides, also known as PCAs, are supposed to assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth. In order to be covered for such benefits, the beneficiaries must get prescriptions from physicians or advanced practice registered nurses. D.C. Medicaid only reimburses for home care services if a physician determines after a physical examination that the beneficiary has functional limitations impairing activities of daily living. The prescriptions, also known as “intakes,” dictate the frequency and duration of the services to be provided. The prescriptions are translated later into plans of care, which also must be signed by the physician.
In the District of Columbia, a typical prescription, or “intake,” calls for eight hours of personal care services per day for five days per week, or eight hours per day for seven days per week. Over the six-month time span authorized by such a prescription, D.C. Medicaid would pay between $16,952 and $23,732 for personal care services provided to one beneficiary.
Mirza is licensed as a chiropractor in Maryland and Virginia, but is not licensed as a chiropractor in the District of Columbia, and is not licensed as a physician. He worked at Capital Health LLC, d/b/a Capitol Health Chiropractic in Suitland, Md. He was not authorized to prescribe personal care services, and he was not enrolled as a provider in D.C. Medicaid.
The scheme: According to a statement of offense, signed by the government as well as the defendant, Mirza and others carried out a scheme to defraud the D.C. Medicaid program from approximately November 2012 through at least June 2013. Personal care aides, working for at least seven home care agencies, brought hundreds of D.C. Medicaid beneficiaries to Mirza, and after brief examinations, Mirza wrote prescriptions and plans of care, listing himself and signing as the “ordering physician” even though he was not a physician and was not legally or medically qualified and could not determine whether the services were medically necessary.
Seeing D.C. Medicaid beneficiaries and signing their intakes and plans of care became Mirza’s primary source of income. Mirza initially was paid $125 for each D.C. Medicaid beneficiary brought to his office by a personal care aide, but he later increased the size of the cash payments to $200. Mirza’s prescriptions, or “intakes,” typically included a diagnosis such as “chronic severe back pain” and called for services for eight hours a day, seven days a week, for six months. The personal care aides would insist that Mirza write the name of the PCA on the intake before it was sent to the home care agency; it was understood this was so the personal care aides would receive their kickback from the home care agency for each D.C. Medicaid beneficiary the PCA brought to Mirza and then to the home care agency.
During the course of the fraud scheme, Mirza signed hundreds of prescriptions and plans of care, and in exchange collected at least $48,450 in cash payments from personal care aides. Home care agencies used Mirza’s prescriptions and plans of care to support and justify their claims for payment to Medicaid – even though the paperwork was invalid on its face because it was not prescribed or signed by a physician as required.
The obstruction: When Mirza was approached by the FBI in his office and questioned about his role, he denied he had any involvement with Medicaid. After the agents served Mirza with a subpoena for his patient files and other documents, the agents told Mirza they planned to interview his office assistant. After the agents left, Mirza offered to drive his assistant home. During that car ride, Mirza attempted to obstruct the government’s investigation, by attempting to influence his 22-year-old assistant’s statements to the FBI, telling the assistant not to use certain words, encouraging and suggesting that she not be fully truthful, and ensuring that their stories would match so that Mirza would not be “implicated” by his assistant. For example, Mirza tried to convince his assistant they had nothing to do with Medicaid and instructed the assistant not to say the word “Medicaid” at least ten times during the course of their 45-minute conversation.
This investigation was conducted by the FBI’s Washington Field Office.
This case is being prosecuted by Assistant U.S. Attorney Ted Radway, and was investigated by Assistant U.S. Attorney Radway and former Special Assistant U.S. Attorney Dangkhoa Nguyen. Assistance was provided by Paralegal Specialist Corinne Kleinman.
The FBI has set up a hotline number to report suspected incidents of Medicaid fraud: 855-281-1242. People can also provide information by e-mail to [email protected].
Numerous agencies are participating in the broader investigation into Medicaid fraud, including the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Social Security Administration, Office of Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office.
Maryland Man Sentenced to 28 Months in Prison for Traveling to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Ravi Singit, 41, of Rockville, Md., has been sentenced to 28 months in prison after earlier pleading guilty to a charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Singit pled guilty in November 2015 in the U.S. District Court for the District of Columbia. He was sentenced on Feb. 11, 2016, by the Honorable Senior Judge John D. Bates. Following his prison term, he will be placed on five years of supervised release. He also will be required to register as a sex offender for a minimum of 15 years upon his release from prison.
According to the government's evidence, on Aug. 26, 2015, Singit contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next several days, Singit engaged in e-mail, phone, and text message conversations with the undercover officer, whom the defendant believed had access to a purported under-age girl. During this period of time, Singit arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On Aug. 31, 2015, Singit traveled from Maryland to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
Former High School Assistant Track Coach Pleads Guilty to Sexually Abusing Seven StudentsRead the Press Release
WASHINGTON - Charles Young, 35, of Washington D.C., pled guilty today to sexually abusing seven different male students at Dunbar Senior High School, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD). The abuse occurred between January 2013 and May 2014, during which time the defendant worked at Dunbar as a business manager and assistant track coach.
Young pled guilty in the Superior Court of the District of Columbia to seven felony counts of sexual abuse, including first-degree child sexual abuse with aggravating circumstances, attempted first-degree sexual abuse of a minor, and multiple counts of attempted second-degree sexual abuse of a minor. Each of the seven counts concerns a different victim. Upon release, Young will be required to register as a sexual offender for the remainder of his life. The Honorable Robert E. Morin has scheduled a sentencing hearing to take place on April 22, 2016.
According to the government’s evidence, from 2012 to 2014, Young was employed as Dunbar’s business manager and was responsible for managing the school’s finances. Although he did not teach any classes, he served as a senior class advisor, designed and distributed Dunbar school apparel, volunteered as an assistant boys’ track coach, and held other responsibilities that regularly put him in contact with students.
Between January 2013 and May 2014, Young sexually abused seven male students, all between the ages of 14 and 17 years old. All the incidents occurred on the Dunbar campus, which is located in the 100 block of N Street NW. In one incident that occurred in the fall of 2013, a 15-year-old came to Young’s office to borrow a shirt to wear at basketball practice. Young led the boy into a closet next to his office that contained Dunbar apparel, closed the door, and eventually began performing oral sex on the student. In another incident that occurred in February or March 2013, a 17-year-old came to Young’s office to pay school fees. Once alone with the student, Young had him lift his shirt and pull down his pants and underwear purportedly so that he could show the student, who was an athlete, muscle groups he needed to strengthen. Young had the student pull down his pants and underwear, began touching the student’s penis with his hand, and pressed his mouth to the student’s penis.
On multiple occasions, Young used his position as a track coach to sexually abuse his juvenile victims. In one incident in November 2013, Young brought a 16-year-old to an empty bathroom after track practice, purportedly to provide him some additional one-on-one coaching. Inside the bathroom, he began touching the student on his stomach, pointing out muscle groups the defendant claimed needed work. Young gradually began lowering the student’s shorts before grabbing the boy’s penis and attempting to pull it out of his pants. In a separate incident that occurred in January or February of 2014, Young called a 14-year-old to his office to try on the new track team uniforms. After the student disrobed, Young began touching the student’s abdomen, pointing out exercises he could do to deepen his abdominal muscles. Young began touching the student near his groin and began pulling the student’s underwear down, exposing his penis. He then touched the boy’s penis with his hand.
The defendant would also voice concerns about student hygiene as a ploy to sexually abuse them. On multiple occasions, Young, while alone with a male student, would claim that the student smelled bad, apply hand sanitizer or lotion to his hand, and begin rubbing the boy’s abdomen, claiming that he was getting rid of the smell. Young would then attempt to reach into the boy’s pants and touch his penis.
The abuse came to light in November 2014 when one of the students reported to Dunbar administrators that the defendant had sexually abused him. That student’s disclosure triggered an investigation that ultimately uncovered seven different students whom Young had sexually abused over the span of just three school semesters. Young has been in custody since his arrest in November 2014.
In announcing the plea, U.S. Attorney Phillips and Chief Lanier commended the work performed by detectives from the Metropolitan Police Department’s Youth and Family Services Division. They also recognized the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins, Victim/Witness Services Coordinator Katina Adams-Washington, Litigation Technical Specialist Jeanie Latimore-Brown, Paralegal Specialist D’Yvonne Key, Criminal Investigators John Marsh and Mark Fitzgerald, former Legal Interns Stephanie Dinan and Emma MacArthur, and Assistant U.S. Attorneys Chrisellen Kolb and Sarah McClellan. Finally, they commended the work of Assistant U.S. Attorney Jodi Lazarus, who conducted much of the investigation, and Assistant U.S. Attorneys Jason Park and Julianne Johnston, who are prosecuting the case.
District Man Sentenced to 17 Years in Prison for Armed Carjacking and Other ChargesRead the Press Release
WASHINGTON – Cephus Hollis, 18, of Washington, D.C., was sentenced today to 17 years in prison on numerous charges stemming from two violent carjackings in Northeast Washington within a four-day period, U.S. Attorney Channing D. Phillips announced.
Hollis was found guilty by a jury in November 2015 of a total of 15 charges, including assault with intent to kill while armed, armed carjacking, and aggravated assault of a senior citizen while armed. The verdicts followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Lynn Leibovitz. Following completion of his prison term, Hollis is to be placed on five years of supervised release.
According to the evidence presented at trial, Hollis and a co-conspirator went out on the evening of Sept. 7, 2014 to steal cars in the Riggs Park neighborhood of Northeast Washington and surrounding areas. After stealing their first car that night, they used it to drive around and steal or attempt to steal numerous other cars.
In the early morning hours of Sept. 8, 2014, Hollis and the co-conspirator saw a 62-year-old man delivering copies of the Washington Post, and followed him as he did this for several stops. At one stop, in the 5800 block of Eastern Avenue NE, the newspaper delivery man got out of his car to throw a paper onto the doorstep. Hollis then got into the front seat. Hollis assumed the victim had left the keys in the ignition. The victim had not, and when he returned to the car, Hollis confronted him and demanded the keys. When the victim would not surrender the keys, Hollis punched and kicked him, and the co-conspirator joined in. They beat the victim until they broke his wrist, dislocated his shoulder, broke the orbital bones around his eye, and caused other injuries. Then, after they beat him, they took the cars he was using to make the deliveries. A few days later, that car ran out of gas and was abandoned in the middle of the street. Fingerprints recovered from it matched the defendant and the co-conspirator.
Four days later on Sept. 12, 2014, at about 5 p.m., Hollis ordered Chinese food to be delivered to his own house in the 400 block of Oneida Street NE. When the delivery driver arrived, he parked in front of the house and called Hollis, who acknowledged ordering the food. As the driver walked up to Hollis’s porch, Hollis came out of the house. Without saying anything, Hollis stabbed the driver in the head. The driver fell to the ground and Hollis kept stabbing him. The driver somehow broke free and fled to his car. He locked the door, hoping the car would keep him safe. But as he looked out the car window, he saw that Hollis had his car keys and was walking towards the car. Using the electronic key fob, Hollis unlocked the car. The driver locked the car again, smearing his own blood over the controls as he did so. Hollis, however, kept coming and unlocked the car again, got inside, and resumed stabbing the driver.
The driver got out of the car. Hollis got out, too, ran around the car, and stabbed the driver again. In total, the driver was stabbed at least seven times, including to the head, face, chest, hands, and arms. In addition to his numerous lacerations and puncture wounds, the victim sustained a partially collapsed lung. Hollis then fled in the delivery driver’s car, which was recovered the next day. DNA evidence tying Hollis to the crime was recovered from inside the car. A phone later recovered from Hollis’s pocket was shown to have placed the call ordering the food, and received the call from the delivery driver when he arrived with the food.
Hollis has been in custody in this case since his arrest in May 2015. At sentencing, prosecutors sought a significant period of incarceration, noting the gruesome nature of the attacks and pointing out that Hollis has shown no remorse for his actions.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Fourth Police District of the Metropolitan Police Department and the Special Agents from the FBI Washington Field Office’s Violent Crime Task Force. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tiffany Fogle and Benjamin Kagan-Guthrie; Lead Paralegal Specialist Kwasi Fields; Paralegal Supervisors Darline Douglas and Anthony Griffith; Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Advocate Diana Lim; Intelligence Analysts Shannon Alexis and Sharon Johnson; Information Technology Specialists Aneela Bhatia, Anisha Bhatia, Paul Howell, Claudia Gutierrez, Jeanie Latimore-Brown, William Henderson, and Leif Hickling; Criminal Investigators Nelson Rhone and Chris Brophy; Elizabeth Trosman, Chief of the Appellate Division; Assistant U.S. Attorneys Stephen Rickard and John Mannarino of the Appellate Division; and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he praised the efforts of Assistant U.S. Attorneys Christopher Bruckmann and Katherine Earnest, who investigated and prosecuted the case.
District Man Pleads Guilty to Sexually Assaulting Woman in 2002 Attack in Northwest WashingtonRead the Press Release
WASHINGTON – Jeremiah Juwley, 30, formerly of Washington, D.C., pled guilty today to sexually assaulting a woman in 2002, U.S. Attorney Channing D. Phillips announced.
Juwley pled guilty in the Superior Court of the District of Columbia to attempted first-degree sexual abuse. The plea, which is subject to the Court’s approval, calls for a sentence of 16 years in prison. The Honorable José M. López scheduled sentencing for April 8, 2016. Upon his release from prison, Juwley is to be required to register as a sex offender for the rest of his life.
According to the government’s evidence, in the early morning hours of Sept. 14, 2002, the victim, then 22, was walking alone to a friend's home on the 1100 block of Columbia Road NW after leaving a nightclub. While in route, Juwley, a stranger to her, began walking behind her. To evade him, she walked to an outdoor stairwell that was somewhat secluded.
Juwley continued to pursue her. When he caught up to her, he grabbed her around the waist. The victim screamed. Juwley told her to shut up and knocked her face down onto the ground. She continued to scream, turning her face towards the apartment building so someone could hear her. The defendant continued to strike her in the face and started banging her head on the ground, eventually knocking her unconscious. Juwley then attempted to sexually assault her.
The victim reported the assault to the Metropolitan Police Department (MPD) and was taken to Howard University Hospital, where she was treated for injuries and swabbed for DNA. The case was cold until April 2014, when the defendant was identified as a suspect through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. Juwley’s DNA was in the system as a result of a 2011 conviction in a carjacking case; he was sentenced to a seven-year prison term in that case. Juwley’s DNA profile matched the DNA left behind by the assailant in 2002. Juwley was arrested in December 2015.
In announcing the plea, U.S. Attorney Phillips commended the work of detectives from the MPD’s Sexual Assault Unit, the Third Police District, and officers from the Forensic Science Division. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson; Paralegal Specialists Jason Manuel, Tiffany Jones, and Tierra Naches, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he expressed appreciation for the work of former Assistant U.S. Attorney Jeff Cook and Assistant U.S. Attorneys Kenya Davis and Nicholas Miranda, who investigated and prosecuted the case.
New York Man Sentenced to over Five Years in Prison for Taking Part in Drug ConspiracyRead the Press Release
WASHINGTON – Edwin A. Henriquez, 36, formerly of Hempstead, N.Y., has been sentenced to a prison term of five years and eight months on a federal charge stemming from his participation in a drug trafficking ring, U.S. Attorney Channing D. Phillips announced today.
Henriquez pled guilty on Feb. 19, 2008, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to possess with intent to distribute 500 grams or more of cocaine. Following his plea, he was released on personal recognizance with a number of conditions, including that he maintain contact with authorities. However, in June 2008, law enforcement was no longer aware of his whereabouts. In July 2008, a warrant was issued for Henriquez’s arrest. He was apprehended on July 1, 2015 in the Dominican Republic and extradited to the United States.
Henriquez was sentenced on Feb. 9, 2016 by the Honorable John D. Bates. Upon completion of his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, in January 2008, Henriquez traveled from New York to Atlanta, Ga., to purchase two kilograms of cocaine. He paid a total of $40,000 for the cocaine, including $30,000 from a co-conspirator and $10,000 of his own money. He then packaged the drugs in a hidden compartment inside of a VCR and purchased a train ticket to return to and deliver the cocaine to New York. On Jan. 17, 2008, a detective with the Amtrak Police Department was on duty and noticed that Henriquez made the train ticket reservation from Atlanta to New York in a suspicious manner. He provided the defendant’s name and train car number to the Metropolitan Police Department (MPD).
On Jan. 18, 2008, while the train was at Union Station in Washington, D.C., MPD officers went to Henriquez’s sleeper car. After a brief conversation, Henriquez gave the officers permission to search the sleeper car and his bag. The officers searched the bag and discovered the cocaine, leading to Henriquez’s arrest.
Following his disappearance from the United States, Henriquez was tracked by the U.S. Drug Enforcement Administration to the Dominican Republic. The Department of Justice’s Office of International Affairs assisted in securing his extradition to the United States, and he was returned to Washington, D.C., by the U.S. Marshals Service.
In announcing the sentence, U.S. Attorney Phillips commended those who investigated the case from the Metropolitan Police Department, the Amtrak Police Department, the New York and Washington, D.C. offices of the Drug Enforcement Administration, and the U.S. Marshals Service. He expressed appreciation for the assistance provided by the Justice Department’s Office of International Affairs as well as the government of the Dominican Republic. Finally, he praised the work of Assistant U.S. Attorney Angela S. George, of the office’s Violent Crime and Narcotics Trafficking Section, who investigated and prosecuted the case.
Virginia Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Wesley Breeden, 30, of Springfield, Va., pled guilty today to traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Breeden entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Tanya S. Chutkan is to sentence him on April 25, 2016. Breeden faces a maximum sentence of 30 years in prison as well as a fine of $250,000.
According to the government's evidence, on July 30, 2015, Breeden contacted an undercover officer with the FBI's Child Exploitation Task Force, through a social network site. Over the course of the next several days, Breeden engaged in e-mail and text-messaging conversations with the undercover officer, whom the defendant believed was the father of an under-aged girl. During the course of these conversations, Breeden arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On Aug. 4, 2015, Breeden traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. He has been in custody ever since.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of the MPD Detectives and Special Agents of the FBI’s Child Exploitation Task Force. They also expressed appreciation for the efforts of Assistant U.S. Attorney Andrea L. Hertzfeld, who is prosecuting the case.
Maryland Man Pleads Guilty to Federal Charges in Contract Kickbacks and Phony Billing SchemesRead the Press Release
WASHINGTON – Bryan D. Wright, 53, of Laytonsville, Md., pled guilty today to taking part in a scheme in which he paid kickbacks to an executive with an investment banking firm in return for construction management contracts, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
In addition, Wright admitted taking part in a related scheme in which he submitted invoices for work that was not performed.
Wright pled guilty to one count of conspiracy to engage in wire fraud and one count of conspiracy to engage in money laundering. Conspiracy to engage in wire fraud carries a statutory maximum of five years in prison and conspiracy to engage in money laundering carries up to 10 years. Both charges also carry potential financial penalties. Under federal sentencing guidelines, Wright faces a likely range of 27 to 33 months in prison and a fine of up to $100,000. The Honorable Amy Berman Jackson is to sentence Wright at a date to be determined later.
The plea agreement calls for Wright to pay restitution to the investment banking firm. He also must pay a forfeiture money judgment of $623,347, representing his share of the illegal proceeds generated by the schemes. The plea agreement further calls for Wright to forfeit his interest in assets seized as part of the investigation, including $320,227.13 from bank accounts and six rare coins.
According to a statement of offense, signed by the defendant as well as the government, Wright is the president of P&E Services, a company used in furtherance of the scheme.
The statement of offense describes these activities from 2011 through 2013:
In mid-2011, Wright was contacted by a person described in court documents as “Co-Conspirator 1.” This person was a vice president in the Washington, D.C. office of an investment banking firm and oversaw the firm’s real estate development investments in the regional area. In that role, “Co-Conspirator 1” was authorized to approve construction-related invoices.
Over the months that followed, “Co-Conspirator 1” steered construction management contracts to Wright, tied to a commercial development project in Hanover, Md. Between October 2011 and May 2013, “Co-Conspirator 1” authorized $760,609 in payments from the investment banking firm to Wright’s company, P&E Services. Additionally, “Co-Conspirator 1” directed a general contracting company hired for the project to make payments to P&E Services; the contractor paid P&E Services $417,708 between January 2012 and January 2013. The investment banking firm reimbursed the contractor for the money that was paid to P&E Services.
In total, Wright and P&E Services received approximately $1,178,317 in payments from the investment banking firm and general contracting company. In turn, Wright paid “Co-Conspirator 1” approximately $588,622 of the funds, retaining the other $589,695.
In a related scheme, Wright conspired with “Co-Conspirator 1” to submit three phony invoices to the investment banking firm. Wright received $114,003 from this scheme. He paid “Co-Conspirator 1” $80,351 of these proceeds, retaining the other $33,652.
Wright retained a total of $623,347 from his participation in the two schemes.
No other charges have been filed in the investigation, which is ongoing.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris and C. Rosalind Pressley and Legal Assistants Angela Lawrence and John Lowell. Finally, they acknowledged the work of Assistant U.S. Attorneys David A. Last and Zia Faruqui, who are investigating and prosecuting the matter.
U.S. Attorney's Office Concludes Investigation into the Death of Bobby GrossRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or local charges against an officer from the Metro Transit Police who was involved in the fatal shooting of Bobby Gross last year in the middle of a Metro tunnel that runs between the Stadium Armory and Potomac Avenue stations.
The U.S. Attorney’s Office for the District of Columbia, the Metropolitan Police Department and the Metro Transit Police conducted a comprehensive review of the incident, which included interviews of over a dozen law enforcement and civilian witnesses; physical evidence collected on the scene; Metro Transit video footage and diagrams; DNA, ballistics and forensics evidence; the autopsy and toxicology reports; photographs, and other evidence. After this thorough review, the U.S. Attorney’s Office concluded that the evidence was insufficient to prove beyond a reasonable doubt that the officer who was involved in the shooting used excessive force or possessed the requisite criminal intent at the time of the events.
According to the evidence, the shooting took place at 9:06 p.m. on March 12, 2015. The Metro Transit Police officer was dispatched to the Potomac Avenue station to respond to a report of an unauthorized person inside one of the Metro tunnels. Metro personnel had seen the individual, later-identified as Mr. Gross, running through the tunnels between the two stations wearing a T-shirt, boxer shorts, no shoes, sweating profusely, and carrying a large branch.
Once inside the tunnel, the officer encountered Mr. Gross. The two were face-to-face on an elevated 21-inch catwalk that is adjacent to the tracks – including a 750-volt “third rail” – on which the Metro trains run. The officer greeted Mr. Gross but he did not reply. When they were within 10 feet of one another, Mr. Gross pulled out a large branch from behind his back, which was later determined to be three feet long, 2.5 inches wide, and approximately three pounds. He held the branch waist high, pointing it at the officer as he continued to advance. Mr. Gross did not comply with the officer’s order to drop the branch and instead advanced more rapidly. Train marker signs protruding from the walls prevented the officer from safely backing up without risking hitting a sign and falling onto the live wire. Drawing a firearm, the officer warned, “Drop the stick or I’ll shoot you!” Mr. Gross continued to advance and the officer fired one round. Mr. Gross then began to sprint toward the officer, who fired three more times. Mr. Gross then used his body weight to thrust the branch at the officer, striking the officer in the hands and arms. The officer fired one more round, and Mr. Gross fell to the tracks. Mr. Gross, 35, was shot a total of five times, with injuries to his chest, abdomen, trunk, chin, and palm.
Under the applicable federal criminal civil rights laws, prosecutors must establish beyond a reasonable doubt not only that an officer’s use of force was excessive, but also that the officer willfully deprived an individual of a constitutional right. Proving “willfulness” is a heavy burden, and means that it must be proven that the officer acted with the deliberate and specific intent to do something the law forbids. Accident, mistake, fear, negligence and bad judgment do not establish such a criminal violation. After a careful, thorough and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officer used excessive force under the circumstances known at the time or acted with the requisite criminal intent. Accordingly, the investigation into this incident has been closed without prosecution.
The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated.
MCC Construction Company Agrees to Pay Nearly $1.8 Million for Conspiring to Illegally Obtain Federal Contracts Meant for Small, Disadvantaged BusinessesRead the Press Release
WASHINGTON – The Justice Department announced today that MCC Construction Company (MCC) has agreed to pay $1,769,294 in criminal penalties and forfeiture for conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses.
The court agreement was announced by U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia; Assistant Attorney General William J. Baer of the Justice Department’s Antitrust Division; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Carol Fortine Ochoa, Inspector General of the U.S. General Services Administration (GSA); Brian J. Reihms, Special Agent in Charge of the Central Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
“This prosecution shows that there will be consequences for companies that violate federal contracting rules meant to assist small, disadvantaged businesses,” said U.S. Attorney Phillips. “MCC Construction Company secured millions of dollars in contracts by hiding behind two small businesses that did not perform labor on the projects. Its conduct took away opportunities that could have gone to companies that truly are socially and economically disadvantaged and deserving of the work.”
“This conspiracy defrauded the government and denied small, disadvantaged businesses the opportunity to compete to do business with the United States,” said Assistant Attorney General Baer of the Antitrust Division. “We will continue to work with U.S. Attorney Phillips and his talented colleagues to protect the integrity of the government contracting process.”
“An uneven marketplace is created when businesses engage in illegal backroom deals to fraudulently obtain government contracts, placing competitors at an unfair disadvantage,” said Assistant Director in Charge Abbate. “In this case, the FBI and our partners moved to protect the American taxpayer and ensure the integrity of the process. Together, we will continue to work to protect federal contract opportunities for socially and economically disadvantaged businesses within our communities from unlawful conduct.”
“Fraudulently passing work through eligible small businesses to a large business does not provide taxpayers the best value and certainly does not support the role of small businesses as engines of economic development and job creation. In fact, it subverts the purpose of SBA’s preferential contracting programs and harms the small businesses the programs are designed to assist,” said SBA Inspector General Gustafson. “I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication to serving justice.”
“We will continue our work on behalf of taxpayers and legitimate small business owners to expose and punish nationwide small business fraud schemes such as this,” said GSA Inspector General Ochoa.
“The Defense Criminal Investigative Service is committed to working with our partner agencies to combat fraud impacting the Department of Defense's vital programs and operations and maintain the integrity of the procurement system," said Special Agent in Charge Reihms.“This settlement is a testament to our steadfast and continued commitment to working closely with our law enforcement partners in rooting out this type of activity, " said Director Robey.
MCC was a construction management company and general contractor headquartered in Colorado.
A criminal Information was filed last month in the U.S. District Court for the District of Columbia charging MCC with one count of knowingly and willfully conspiring to commit major fraud on the United States. MCC waived the requirement of being charged by way of federal indictment, agreed to the filing of the Information, and accepted responsibility for its criminal conduct and that of its employees. U.S. District Judge Ketanji B. Jackson accepted the company’s guilty plea today. The plea agreement is subject to the Court’s approval at a sentencing hearing scheduled for March 15, 2016.
According to court documents, MCC conspired with two companies that were eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that MCC would, illegally, perform all of the work. In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011. The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small and disadvantaged businesses.
Under the illegal agreement, the companies awarded these government contracts were allowed to keep 3 percent of the value of the contracts for allowing MCC to use the companies small business status to win the contracts.
Court documents state that MCC violated the provisions of the SBA 8(a) program. The SBA 8(a) development program is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.” To qualify for the 8(a) program, a business must be at least 51% owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work. For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
MCC, along with the two 8(a) companies used to illegally obtain the contracts, engaged in and executed a scheme to defraud the SBA by, among other things:
- Allowing the two 8(a) companies to retain a guaranteed percentage of each contract for simply obtaining the contracts for MCC;
- Allowing the two 8(a) companies to perform no labor on these projects;
- Performing the accounting and government reporting for the two 8(a) companies on certain projects;
- Falsely representing to the government that MCC employees were in fact employees of the 8(a) companies;
- Obtaining certain contracts on behalf of the 8(a) companies without first informing those 8(a) companies prior to bidding; and
- Conspiring with the 8(a) companies to hire straw employees for the 8(a) companies whose labor and salaries were paid for by MCC.
For the contracts obtained through this scheme on which MCC made a profit, MCC’s profit was at least $1,269,294. The criminal penalty in this case includes a $500,000 fine and a forfeiture money judgment of $1,269,294.
The investigation is being conducted by the FBI’s Washington Field Office, the Inspector General for the Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS), and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The prosecution is being handled by Assistant U.S. Attorneys Matt Graves and John Marston of the U.S. Attorney’s Office for the District of Columbia and Assistant Chief Craig Y. Lee and Trial Attorneys Kevin B. Hart and Justin P. Murphy of the Antitrust Division.
Former White House Employee Pleads Guilty to Taking Part in Time/Attendance SchemeRead the Press Release
WASHINGTON – The former director of switchboard operations at the White House pled guilty today to a charge of theft of government property for a scheme in which she stole over $5,000 through altered time and attendance records, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Andrea Turk, 46, of Upper Marlboro, Md., pled guilty in the U.S. District Court for the District of Columbia. The Honorable Senior Judge Gladys Kessler scheduled sentencing for April 20, 2016. The charge, a felony, carries a statutory maximum of 10 years in prison and potential financial penalties. Under the advisory federal sentencing guidelines, Turk faces up to six months of incarceration and a fine of up to $20,000. She has agreed to pay restitution as well as a forfeiture money judgment of $5,015.
According to a statement of offense, signed by the defendant as well as the government, Turk was the director of switchboard operations at the White House from October 2009 until her termination in August 2013. She was responsible for managing approximately 15 switchboard operators, including oversight of their work schedules and approval of overtime hours. Additionally, she was responsible for final entry and approval of all time and attendance records of the switchboard operators, including one identified in court documents as “Employee A.”
Beginning at least as early as June 2, 2012, through July 27, 2013, Turk used her supervisory position to alter the time and attendance records of “Employee A” to reflect overtime hours that were not actually worked. In turn, “Employee A” paid Turk money generated through the scheme. Over that time-frame, “Employee A” was paid approximately $12,475 for 396 overtime hours, but only actually worked and legitimately earned less than approximately 50 of these hours. As a result, “Employee A” received approximately $10,900 in overtime pay from the United States government to which “Employee A” was not entitled. “Employee A” thereafter paid approximately $5,015 to Turk, mostly through a series of bank transfers.
No other charges were filed in the investigation.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tasha Harris, Legal Assistant Angela Lawrence, and Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues. Finally, they expressed appreciation for the work of Assistant U.S. Attorney David A. Last, who investigated and prosecuted the matter.
Former U.S. Nuclear Regulatory Commission Employee Pleads Guilty to Attempted Spear-Phishing Cyber-Attack on Department of Energy ComputersRead the Press Release
Charles Harvey Eccleston, 62, a former employee of the U.S. Department of Energy (DOE) and the U.S. Nuclear Regulatory Commission (NRC), pleaded guilty today to a federal offense stemming from an attempted e-mail “spear-phishing” attack in January 2015 that targeted dozens of DOE employee e-mail accounts.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Eccleston pleaded guilty in the U.S. District Court for the District of Columbia to one count of attempted unauthorized access and intentional damage to a protected computer. In his guilty plea, Eccleston admitted scheming to cause damage to the computer network of the DOE through e-mails that he believed would deliver a computer virus to particular employees. An e-mail spear-phishing attack involves crafting a convincing e-mail for selected recipients that appears to be from a trusted source and that, when opened, infects the recipient’s computer with a virus.
“Eccleston admitted that he attempted to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent of allowing foreign nations to gain access to that information or to damage essential systems,” said Assistant Attorney General Carlin. “Protecting our national assets from cyber intrusions is one of our highest priorities. We must continue to evolve and remain vigilant in our efforts and capabilities to confront cyber-enabled threats and aggressively detect, disrupt and deter them.”
“This prosecution underscores our commitment to prosecute those who carry out or plan cyber-attacks against our government, whether they are in the United States or in remote locations overseas,” said U.S. Attorney Phillips. “Thanks to the work of the FBI, this former federal employee was arrested before he could do any damage and he now is being held accountable for actions that could have threatened our national security.”
“Charles Harvey Eccleston is a former U.S. Government employee who, motivated by greed, was thwarted in his attempt to sell information to a foreign intelligence service to enable a cyber-attack against our information systems,” said Assistant Director in Charge Abbate. “Today’s guilty plea is a testament to the dedication of the FBI and prosecutorial team, along with our federal and foreign partners, to relentlessly pursue and bring to justice an individual who sought to misuse his position to betray the country.”
Eccleston, a U.S. citizen who had been living in Davao City in the Philippines since 2011, was terminated from his employment at the NRC in 2010. He was detained by Philippine authorities in Manila, Philippines, on March 27, 2015, and deported to the United States to face U.S. criminal charges. He has been in custody ever since.
According to court documents, Eccleston initially came to the attention of the FBI in 2013 after he entered a foreign embassy in Manila and offered to sell a list of over 5,000 e-mail accounts of all officials, engineers and employees of a U.S. government energy agency. He said that he was able to retrieve this information because he was an employee of a U.S. government agency, held a top secret security clearance and had access to the agency’s network. He asked for $18,800 for the accounts, stating they were “top secret.” When asked what he would do if that foreign country was not interested in obtaining the U.S. government information the defendant was offering, the defendant stated he would offer the information to China, Iran or Venezuela, as he believed these countries would be interested in the information.
Thereafter, Eccleston met and corresponded with FBI undercover employees who were posing as representatives of the foreign country. During a meeting on Nov. 7, 2013, he showed one of the undercover employees a list of approximately 5,000 e-mail addresses that he said belonged to NRC employees. He offered to sell the information for $23,000 and said it could be used to insert a virus onto NRC computers, which could allow the foreign country access to agency information or could be used to otherwise shut down the NRC’s servers. The undercover employee agreed to purchase a thumb drive containing approximately 1,200 e-mail addresses of NRC employees; an analysis later determined that these e-mail addresses were publicly available. The undercover employee provided Eccleston with $5,000 in exchange for the e-mail addresses and an additional $2,000 for travel expenses.
Over the next several months, Eccleston corresponded regularly by e-mail with the undercover employees. A follow-up meeting with a second undercover employee took place on June 24, 2014, in which Eccleston was paid $2,000 to cover travel-related expenses. During this meeting, Eccleston discussed having a list of 30,000 e-mail accounts of DOE employees. He offered to design and send spear-phishing e-mails that could be used in a cyber-attack to damage the computer systems used by his former employer.
Over the next several months, the defendant identified specific conferences related to nuclear energy to use as a lure for the cyber-attack, then drafted emails advertising the conference. The emails were designed to induce the recipients to click on a link which the defendant believed contained a computer virus that would allow the foreign government to infiltrate or damage the computers of the recipients. The defendant identified several dozen DOE employees whom he claimed had access to information related to nuclear weapons or nuclear materials as targets for the attack.
On Jan. 15, 2015, Eccleston sent the e-mails he drafted to the targets he had identified. The e-mail contained the link supplied by the FBI undercover employee which Eccleston believed contained a computer virus, but was, in fact, inert. Altogether, the defendant sent the e-mail he believed to be infected to approximately 80 DOE employees located at various facilities throughout the country, including laboratories associated with nuclear materials.
Eccleston was detained after a meeting with the FBI undercover employee, during which Eccleston believed he would be paid approximately $80,000 for sending the e-mails.
The charge of attempted unauthorized access and intentional damage to a protected computer carries a maximum sentence of 10 years in prison and potential financial penalties. Under the advisory federal sentencing guidelines, Eccleston faces a prison term of 24 to 30 months and a fine of up to $95,000. Sentencing before U.S. District Judge Randolph D. Moss of the District of Columbia is scheduled for April 18, 2016.
The investigation was conducted by the FBI’s Washington Field Office with assistance from the NRC and DOE. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Gillice of the District of Columbia and Trial Attorney Julie A. Edelstein of the National Security Division’s Counterintelligence and Export Control Section. Trial Attorney Scott Ferber of the National Security Division’s Counterintelligence and Export Control Section assisted in the investigation of this matter. The Department of Justice’s Office of International Affairs and the government of the Philippines also provided significant assistance.
Eccleston Plea Agreement
Eccleston Statement of Offense
Former U.S. Nuclear Regulatory Commission Employee Pleads Guilty to Attempted Spear-Phishing Cyber-Attack on Department of Energy ComputersRead the Press Release
WASHINGTON – Charles Harvey Eccleston, 62, a former employee of the U.S. Department of Energy (DOE) and the U.S. Nuclear Regulatory Commission (NRC), pleaded guilty today to a federal offense stemming from an attempted e-mail “spear-phishing” attack in January 2015 that targeted dozens of DOE employee e-mail accounts.
The guilty plea was announced by U.S. Attorney Channing D. Phillips of the District of Columbia, Assistant Attorney General for National Security John P. Carlin, and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Eccleston pleaded guilty in the U.S. District Court for the District of Columbia to one count of attempted unauthorized access and intentional damage to a protected computer. In his guilty plea, Eccleston admitted scheming to cause damage to the computer network of the DOE through e-mails that he believed would deliver a computer virus to particular employees. An e-mail spear-phishing attack involves crafting a convincing e-mail for selected recipients that appears to be from a trusted source and that, when opened, infects the recipient’s computer with a virus.
“This prosecution underscores our commitment to prosecute those who carry out or plan cyber-attacks against our government, whether they are in the United States or in remote locations overseas,” said U.S. Attorney Phillips. “Thanks to the work of the FBI, this former federal employee was arrested before he could do any damage and he now is being held accountable for actions that could have threatened our national security.”
“Eccleston admitted that he attempted to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent of allowing foreign nations to gain access to that information or to damage essential systems,” said Assistant Attorney General Carlin. “Protecting our national assets from cyber intrusions is one of our highest priorities. We must continue to evolve and remain vigilant in our efforts and capabilities to confront cyber-enabled threats and aggressively detect, disrupt and deter them.”
“Charles Harvey Ecceleston is a former U.S. Government employee who, motivated by greed, was thwarted in his attempt to sell information to a foreign intelligence service to enable a cyber-attack against our information systems,” said Assistant Director in Charge Abbate. “Today’s guilty plea is a testament to the dedication of the FBI and prosecutorial team, along with our federal and foreign partners, to relentlessly pursue and bring to justice an individual who sought to misuse his position to betray the country.”
Eccleston, a U.S. citizen who had been living in Davao City in the Philippines since 2011, was terminated from his employment at the NRC in 2010. He was detained by Philippine authorities in Manila, Philippines, on March 27, 2015, and deported to the United States to face U.S. criminal charges. He has been in custody ever since.
According to court documents, Eccleston initially came to the attention of the FBI in 2013 after he entered a foreign embassy in Manila and offered to sell a list of over 5,000 e-mail accounts of all officials, engineers and employees of a U.S. government energy agency. He said that he was able to retrieve this information because he was an employee of a U.S. government agency, held a top secret security clearance and had access to the agency’s network. He asked for $18,800 for the accounts, stating they were “top secret.” When asked what he would do if that foreign country was not interested in obtaining the U.S. government information the defendant was offering, the defendant stated he would offer the information to China, Iran or Venezuela, as he believed these countries would be interested in the information.
Thereafter, Eccleston met and corresponded with FBI undercover employees who were posing as representatives of the foreign country. During a meeting on Nov. 7, 2013, he showed one of the undercover employees a list of approximately 5,000 e-mail addresses that he said belonged to NRC employees. He offered to sell the information for $23,000 and said it could be used to insert a virus onto NRC computers, which could allow the foreign country access to agency information or could be used to otherwise shut down the NRC’s servers. The undercover employee agreed to purchase a thumb drive containing approximately 1,200 e-mail addresses of NRC employees; an analysis later determined that these e-mail addresses were publicly available. The undercover employee provided Eccleston with $5,000 in exchange for the e-mail addresses and an additional $2,000 for travel expenses.
Over the next several months, Eccleston corresponded regularly by e-mail with the undercover employees. A follow-up meeting with a second undercover employee took place on June 24, 2014, in which Eccleston was paid $2,000 to cover travel-related expenses. During this meeting, Eccleston discussed having a list of 30,000 e-mail accounts of DOE employees. He offered to design and send spear-phishing e-mails that could be used in a cyber-attack to damage the computer systems used by his former employer.
Over the next several months, the defendant identified specific conferences related to nuclear energy to use as a lure for the cyber-attack, then drafted emails advertising the conference. The emails were designed to induce the recipients to click on a link which the defendant believed contained a computer virus that would allow the foreign government to infiltrate or damage the computers of the recipients. The defendant identified several dozen DOE employees whom he claimed had access to information related to nuclear weapons or nuclear materials as targets for the attack.
On Jan. 15, 2015, Eccleston sent the e-mails he drafted to the targets he had identified. The e-mail contained the link supplied by the FBI undercover employee which Eccleston believed contained a computer virus, but was, in fact, inert. Altogether, the defendant sent the e-mail he believed to be infected to approximately 80 DOE employees located at various facilities throughout the country, including laboratories associated with nuclear materials.
Eccleston was detained after a meeting with the FBI undercover employee, during which Eccleston believed he would be paid approximately $80,000 for sending the e-mails.
The charge of attempted unauthorized access and intentional damage to a protected computer carries a maximum sentence of 10 years in prison and potential financial penalties. Under the advisory federal sentencing guidelines, Eccleston faces a prison term of 24 to 30 months and a fine of up to $95,000. Sentencing before U.S. District Judge Randolph D. Moss of the District of Columbia is scheduled for April 18, 2016.
The investigation was conducted by the FBI’s Washington Field Office with assistance from the NRC and DOE. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Gillice of the District of Columbia and Trial Attorney Julie A. Edelstein of the National Security Division’s Counterintelligence and Export Control Section. Trial Attorney Scott Ferber of the National Security Division’s Counterintelligence and Export Control Section assisted in the investigation of this matter. The Department of Justice’s Office of International Affairs and the government of the Philippines also provided significant assistance.
Investment Fund Manager Pleads Guilty to Obstructing Justice in SEC Investigation of His Business ActivitiesRead the Press Release
WASHINGTON – Vineet Kalucha, 51, an investment fund manager from Washington, D.C., pled guilty today to obstructing justice in an investigation into his business activities that was being conducted by the U.S. Securities and Exchange Commission, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Kalucha pled guilty in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer scheduled sentencing for June 6, 2016. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under the sentencing guidelines, the parties have agreed that he faces a likely range of 10 to 16 months in prison and a potential fine of $3,000 to $30,000.
A business partner, George Palathinkal, 54, of Singapore, pled guilty in March 2015 to a federal charge of perjury. He is awaiting sentencing before Judge Collyer.
According to the government’s evidence, Kalucha formed Aphelion Fund Management LLC (“Aphelion Management”) in 2012 and was its majority owner, partner and chief investment officer. Palathinkal was the general partner and chief financial officer. The company served as the investment adviser and general partner for two unregistered hedge funds (known as “the Aphelion Funds”).
In 2013, according to the government’s evidence, Kalucha, Palathinkal, and Aphelion Management began soliciting new investors for the Aphelion Funds. Kalucha subsequently provided potential investors with marketing materials for Aphelion Management, using inaccurate performance statistics. Among other things, he altered a report prepared by an accounting firm hired by Aphelion Management to review prior investment performance and caused this report to be sent to prospective investors.
The accounting firm became aware of the misrepresentations and demanded that Kalucha cease distributing the altered report and that he provide notice to those who received it. He incorrectly reported back to the firm that only one copy of the altered report had been distributed.
The U.S. Securities and Exchange Commission began an investigation of Aphelion Management in January 2014, including an investigation into the propriety and reasonableness of payments from Aphelion Management to Kalucha. Kalucha provided investigative testimony before the SEC on Feb. 25, 2014. Among other things, he testified that he had entered into a written promissory note for “about $350,000” with Aphelion Management. Kalucha later told Palathinkal that he had testified before the SEC that there were written promissory notes covering loans that the two of them had purportedly taken from Aphelion Management.
Knowing that these notes did not exist, Kalucha told Palathinkal that he would have Aphelion Management’s outside counsel prepare such written loan documents. Kalucha and Palathinkal later signed two such documents, both said to be promissory notes. One purportedly showed a loan of up to $350,000 for Kalucha and the other was for a loan of up to $200,000 for Palathinkal. Although these documents were actually signed in early March 2014, they were dated January 1, 2013. Kalucha and Palathinkal provided these documents to the SEC.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case for the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the SEC. They acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Document Management Analyst John Lowell and former Assistant U.S. Attorney Bryan Seeley. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who investigated and prosecuted the case.
District Man Sentenced to 10 Years in Prison for Fatally Shooting Man Following Argument About Victim's DogRead the Press Release
WASHINGTON – Rickey Jones, also known as Heritage Rickey Jones, 22, of Washington, D.C., was sentenced today to 10 years in prison for the shooting death of a man last year in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Jones pled guilty in October 2015, in the Superior Court of the District of Columbia to charges of voluntary manslaughter and carrying a pistol without a license. The plea, which was contingent on the Court’s approval, called for a sentence of 10 years in prison. The Honorable Robert E. Morin accepted the plea today and sentenced Jones accordingly. Upon completion of his prison term, Jones will be placed on five years of supervised release.
According to the government’s evidence, on Sunday, Nov. 30, 2014, Jones and the victim, Kirk Perry, 50, got into verbal arguments in the 2400 block of Elvans Road SE over Mr. Perry’s dog. During those arguments, Jones said, “I got a 4-5 with an extended clip for your dog.” Mr. Perry and a family member left the area and went to a nearby laundromat.
About three hours after the argument, Mr. Perry returned to his apartment complex. While bringing laundry into the apartment, he again saw Jones outside. After a mutual associate approached Mr. Perry and suggested that he speak with Jones, Mr. Perry returned outside in hopes of settling their dispute. At approximately 12:35 a.m., on Dec. 1, 2014, Mr. Perry had a conversation with Jones that occurred in between two parked cars in a parking lot of the apartment complex on Elvans Road where they both resided. At the time of that conversation, Mr. Perry had a firearm tucked into his waistband.
Jones, armed with a pistol, fired at Mr. Perry and Mr. Perry was struck multiple times. When Mr. Perry fell to the ground face down, Jones continued firing his weapon. Mr. Perry suffered 13 gunshot wounds, including two in his back. When medical and law enforcement personnel arrived, they transported Mr. Perry to a nearby medical facility where Mr. Perry was pronounced dead.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Seventh Police District of the Metropolitan Police Department. He also expressed appreciation for the work of the D.C. Department of Fire and Emergency Medical Services and the D.C. Office of the Chief Medical Examiner. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Victim/Witness Security Specialist Tanya Via; Paralegal Specialists Zekiah Wright and Debra Joyner; Investigative Analyst Zachary McMenamin, and Assistant U.S. Attorney Natalia Medina. Finally, he praised the work of Assistant U.S. Attorney Robert Eckert, who investigated and prosecuted the case.
District Man Sentenced to Eight Years in Prison for Armed Robbery in Southeast WashingtonRead the Press Release
WASHINGTON – Isaac Williams, 63, of Washington, D.C., has been sentenced to an eight-year prison term for an armed robbery of two armored car guards at a store in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Williams pled guilty in October 2015, in the U.S. District Court for the District of Columbia, to one count of interference with interstate commerce by robbery. He was sentenced on Jan. 21, 2016, by the Honorable Randolph D. Moss. Following his prison term, Williams will be placed on three years of supervised release.
According to the government’s evidence, on the morning of July 21, 2010, Williams, while armed with a firearm and assisted by two accomplices, entered a CVS store in the 500 block of 12th Street SE. Once inside, Williams robbed two armored car security guards who were servicing a TD Bank ATM machine inside the store. Williams and his accomplices took $38,120 from the guards. The next day, Williams used a portion of the stolen money to purchase a 1998 Ford Expedition. Williams was indicted in April 2015 after having been released from prison for violating the terms of his supervised release for two prior convictions. As part of his sentence, Williams was ordered to pay restitution in the amount of $38,120 to TD Bank and to forfeit the vehicle he purchased with the proceeds of the robbery.
In announcing the sentence, U.S. Attorney Phillips commended the work of the FBI’s Washington Field Office and the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Samantha Prinsen, former Assistant U.S. Attorney David Kent, who indicted the matter, and Assistant U.S. Attorneys Kenneth Whitted and Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the case.
Two Maryland Men Plead Guilty to Federal Charges for Roles in Massive Identify Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – Two Maryland residents pleaded guilty today for their involvement in a far-reaching stolen identity refund fraud scheme in which they worked with others to seek over $700,000 in income tax refunds through the filing of fraudulent federal income tax returns, announced U.S. Attorney Channing D. Phillips of the District of Columbia, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Michael Whittaker, 31, of Cumberland, Maryland, and Wayne Gardner, 49, of Capitol Heights, Maryland, are among approximately 18 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. The two men pleaded guilty to one count of conspiracy to commit theft of public money and one count of theft of public money.
The charges carry statutory maximum prison terms of five years and 10 years, respectively, as well as potential financial penalties. As part of the plea agreements, Whittaker and Gardner agreed to pay restitution to the IRS in the amounts of $397,090 and $158,160, respectively, which represent that value of the U.S. Treasury checks that were negotiated as a result of their conduct. U.S. District Judge Ellen S. Huvelle set sentencing for May 18, 2016.
According to the government’s evidence, Whittaker and Gardner participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people, whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, Whittaker and Gardner obtained the means of identification of third parties, including names and social security numbers and provided them to a co-conspirator for use in the preparation of fraudulent income tax returns. Whittaker admitted to providing 21 means of identification from August 2010 to May 2012. He also permitted various residential addresses that he controlled to be used as purported taxpayer addresses for the delivery of tax refund checks and deposited U.S. Treasury checks that were received as part of this scheme into his bank accounts. Gardner admitted to providing 65 means of identification to a co-conspirator between August and December 2010. Whittaker admitted that he was involved in the filing of 135 fraudulent tax returns that sought refunds of approximately $494,902. Gardner admitted that he was involved in the filing of 116 fraudulent tax returns that sought refunds of approximately $299,984.
The fraudulent tax returns that were filed as part of the scheme included Schedules C or C-EZ that falsely claimed that each “taxpayer” operated a business, such as “barber” or “childcare,” as a sole proprietorship. The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme.
In announcing the pleas, U.S. Attorney Phillips, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Jankowski, Inspector in Charge Kelokates, and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
District Man Sentenced to 18 Months in Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – A resident of the District of Columbia was sentenced today to 18 months in prison for his involvement in a far-reaching stolen identity refund fraud scheme in which he worked with others to obtain over $315,000 in income tax refunds through the filing of fraudulent federal income tax returns, announced U.S. Attorney Channing D. Phillips, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Ezekiel Raspberry, 39, is among approximately 16 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. Raspberry pleaded guilty on Nov. 10, 2015, to conspiracy to defraud the United States with respect to claims. Following his prison term, Raspberry will be placed on three years of supervised release. During that time, he must perform 100 hours of community service. In addition, U.S. District Judge Ellen S. Huvelle of the District of Columbia ordered Raspberry to pay $315,076 in restitution to the IRS.
According to the government’s evidence, Raspberry participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people, whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, from September 2008 through November 2010, Raspberry and others conspired to defraud the IRS of approximately $315,076 through the filing of 145 fraudulent federal income tax returns. Raspberry received refund checks from a co-conspirator and deposited them into his bank account. He would then withdraw the funds and provide them to the co-conspirator, keeping a portion of the proceeds for himself.
The refund checks were generated by filing false federal income tax returns that included Schedules C or C-EZ that falsely claimed that each “taxpayer” operated a business, such as “barber” or “childcare,” as a sole proprietorship. The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme. The businesses listed on the Schedules C and C-EZ were entirely fictitious.
In a related case this week, Rashida King, 41, of Savannah, Georgia, pleaded guilty on Jan. 14 to conspiracy to defraud the United States with respect to claims. According to court documents, King deposited at least 33 fraudulently obtained U.S. Treasury checks into her bank account. A sentencing date has not yet been set.
In announcing the sentence, U.S. Attorney Phillips, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Jankowski, Inspector in Charge Kelokates, and Assistant Inspector General for Investigations Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Two Men Plead Guilty to Charges in Murder of Man in Southwest WashingtonRead the Press Release
WASHINGTON – Dominique Holmes, 25, and Gregory Smithwick, 23, both of Washington, D.C., have pled guilty to charges stemming from the murder of a man in Southwest Washington, U.S. Attorney Channing D. Phillips announced.
Both men pled guilty on Jan. 7, 2016, in the Superior Court of the District of Columbia. Holmes pled guilty to one charge of second-degree murder while armed as well as a charge of armed robbery in an unrelated case. Smithwick pled guilty to acting as an accessory after the fact to armed carjacking in a crime leading up to the murder.
The guilty pleas, which are contingent upon the Court’s approval, call for prison sentences of between 25 and 30 years for Holmes and between five and eight years for Smithwick. The Honorable Lynn Leibovitz scheduled a sentencing hearing for March 18, 2016.
According to the government’s evidence, on Oct. 10, 2014 at approximately 6:30 a.m., Holmes carried out a carjacking in the 2000 block of 37th Street SE. Holmes picked up Smithwick almost immediately after the carjacking. Smithwick got into the driver’s seat and drove away, helping Holmes escape from the area. Approximately 40 minutes after the carjacking, Holmes arrived in the carjacked vehicle in the 100 block of Ivanhoe Street SW. Holmes went up to the apartment unit of the victim, Ricky Kelly. Mr. Kelly, 29, was about to take his children to school, and they were in his car parked just outside of the apartment building. Mr. Kelly was alone inside the apartment. Holmes shot Mr. Kelly nine times with a 9mm handgun inside his apartment. He and Smithwick then fled the scene in the carjacked vehicle.
Shortly after the murder, the carjacked vehicle was spotted, and Smithwick and Holmes led officers on a high-speed chase that ended near Alabama Avenue and 32nd Place SE. Holmes and Smithwick were both immediately arrested.
The armed robbery charge stems from an attack carried out by Holmes early Sept. 27, 2014, in he area of 41st Street and Alabama Avenue SE. The victim was walking toward his parked car. Holmes, who was carrying what appeared to be a firearm, approached the man and demanded that he empty his pockets. The victim turned over his iPhone, some cash, and the keys to the vehicle. Holmes then drove away in the car with the victim’s belongings.
In announcing the pleas, U.S. Attorney Phillips commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels; Victim/Witness Advocates M. Laverne Forrest, Wanda Queen, and Marcia Rinker; Investigative Analyst Zachary McMenamin; Assistant U.S. Attorneys Stephen Rickard and Lauren Bates, who provided appellate guidance, and Assistant U.S. Attorneys Kendra Briggs, Richard DiZinno, and Jeffrey Nestler, who prosecuted the case.
District Man Sentenced to 40 Years in Prison for Two Home Invasions in Northeast WashingtonRead the Press Release
WASHINGTON – Tavon Barber, 20, of Washington, D.C., was sentenced today to 40 years in prison on charges stemming from a pair of home invasions he committed within a roughly 20-hour period in Northeast Washington, including one in which he sexually assaulted a woman, U.S. Attorney Channing D. Phillips announced.
Barber was found guilty in November 2014, following a trial in the Superior Court of the District of Columbia, of 21 counts, including first-degree burglary, first-degree burglary while armed, assault with intent to commit first-degree sexual abuse while armed, three counts of third-degree sexual abuse while armed, three counts of assault with a dangerous weapon, and related offenses. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Barber will be placed on five years of supervised release. He also will be required to register as a sex offender for the rest of his life once he is released from prison.
According to the government’s evidence at trial, on June 4, 2013, between 9:30 a.m. and 11:30 a.m., Barber broke into a home in the 1100 block of 6th Street NE through an unlocked kitchen window. At the time, two people were inside the house asleep. Once inside, Barber stole two laptops, a book bag full of various items and car keys. He then used the car keys to steal the car, which belonged to one of the residents.
Approximately 20 hours later, at approximately 4:30 a.m., Barber and an accomplice broke into a home in the 2400 block of Second Street NE, armed with a loaded .40-caliber, semi-automatic pistol. Wearing something to conceal their faces, they went upstairs to the bedroom where the owners of the home, a husband and wife, were sleeping.
Barber turned on the lights and woke the homeowners from sleep. He demanded money, and told them to put their heads under their pillows. Barber then sexually assaulted the wife, while holding the husband hostage at gunpoint. As Barber sexually assaulted the wife, the husband lunged at him, enabling his wife to escape. Barber and the husband struggled from the second floor, down the stairs, and to the back of the house. Once there, Barber fired a shot at the husband’s head. The bullet missed the husband and entered the wall above his head.
Barber then fled, with his accomplice, out the back of the house. The intruders left with two iPhones, a MacBook, a laptop and the husband’s wallet.
Barber was arrested on June 29, 2013 and has been in custody ever since. The second man earlier pled guilty to charges in the case.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Paralegal Specialists Jason Manuel and Benjamin Kagan-Guthrie; Victim/Witness Advocate Veronica Vaughan; Victim/Witness Security Specialists Katina Adams-Washington, David Foster, and Wanda Queen, and Litigation Technology Specialist Thomas R. Royal. Finally, he commended the work of Assistant U.S. Attorneys Sharon Donovan and Lindsay Suttenberg, who investigated and prosecuted the case.
Maryland Man Pleads Guilty to Federal Charges for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – A resident of Bowie, Maryland, pleaded guilty today to federal charges for his involvement in a far-reaching identity theft and tax fraud scheme in which he assisted in the filing of fraudulent federal income tax returns seeking more than $4.4 million in refunds, announced U.S. Attorney Channing D. Phillips, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas Jankowski of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Marc A. Bell, 49, a former employee of the District of Columbia’s Department of Youth Rehabilitation Services (DYRS), admitted taking part in a massive and sophisticated identity theft and false tax return scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. According to court documents, the scheme involved the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million from the U.S. Treasury. The false tax returns sought refunds for tax years 2005 through 2013 and were often filed in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia. Bell is one of approximately 15 people who have pleaded guilty in the U.S. District Court for the District of Columbia for their roles in this scheme.
“This investigation has successfully targeted two serious crimes that cause great financial harm: identity theft and tax fraud,” said U.S. Attorney Phillips. “This defendant abused his position as a government employee to steal identifying information from young people who had no idea that their names were being used on fraudulent income tax returns. Like the many others prosecuted in this case, he was apprehended by law enforcement and brought to justice.”
“The prosecution of Stolen Identity Refund Fraud is one of the Tax Division’s top priorities,” said Acting Assistant Attorney General Ciraolo. “In addition to costing taxpayers millions of dollars in fraudulent refund claims each year, the perpetrators of these crimes often prey on our country’s most vulnerable citizens. This case is a prime example of the concerted and coordinated efforts of the department, the Internal Revenue Service, the Taxpayer Inspector General for Tax Administration, and our other federal and state law enforcement partners that are essential to combatting this epidemic of fraud.”
“Mr. Bell was a public servant who was trusted to serve the taxpayers of the District of Columbia,” said Special Agent in Charge Jankowski. “He violated that trust by stealing the identities of at least 645 youth and then passing the information to his partners in crime who filed over 12,000 federal income tax returns claiming refunds of over $40 million. Aside from the terrible harm done to the Government by receiving over $4 million in refunds before the scam was stopped, Mr. Bell has caused immeasurable harm to the financial well-being of the youth whose identities he stole. IRS-Criminal Investigation will continue to relentlessly pursue those who prey on innocent taxpayers to satisfy their greed and cheat the honest taxpayers who comply with the tax laws of our nation.”
“Identity theft is an increasing problem,” said Inspector in Charge Bowers. “The U.S. Postal Inspection Service aggressively investigates this type of criminal conduct, especially when it involves the U.S. Mail, and it will not be ignored. This case serves as another example of the significant results of collaborating with our law enforcement partners to achieve justice.”
“This plea agreement reinforces the commitment of Treasury’s Office of Inspector General and its law enforcement partners to pursue criminal charges against individuals and groups that prey on the public by stealing identities and fraud committed against the U.S. taxpayer and Treasury Department in their criminal schemes,” said Assistant Inspector General Phillips.
According to documents filed with the court, from 2005 to 2013, Bell was employed as a program manager, program officer, or placement expeditor at the District of Columbia’s Department of Youth Rehabilitation Services (DYRS). The agency is responsible for the supervision, custody and care of young people charged with a delinquent act in the District of Columbia and either detained in a DYRS facility while awaiting adjudication or committed to DYRS by a District of Columbia Family Court judge following adjudication. In his various capacities at DYRS, Bell had access to the agency’s database system, which contained the personal identifying information of DYRS youth, including their names and social security numbers. Bell admitted that between approximately May 2010 and April 2013, he used his computer access to obtain the personal identifying information of at least 645 then-current and former DYRS youth. Bell admitted that he provided this information to other scheme participants, who used the names and Social Security numbers to file at least 1,160 fraudulent federal income tax returns that claimed refunds of approximately $4,441,194. The IRS issued approximately 700 U.S. Treasury checks, totaling approximately $2,422,211, in the names of the DYRS youth in whose names the tax returns were filed. Bell received financial compensation from co-conspirators for providing the stolen identities.
For his role in the scheme, Bell pleaded guilty to three charges: conspiracy to defraud the government with respect to claims; aiding and abetting in the filing of fictitious or false claims; and aiding and abetting fraud and related activity in connection with identification documents. U.S. District Judge Ellen S. Huvelle set sentencing for April 20, 2016. Bell faces a statutory maximum sentence of up to 10 years in prison for the conspiracy charge, up to five years in prison for the false claims charge and up to 15 years in prison for the charge of fraud related to identification documents. As part of his plea agreement, Bell has also agreed to pay restitution to the IRS in the amount of $1,972,710.
U.S. Attorney Phillips, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Jankowski, Inspector in Charge Bowers and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein, Paralegal Specialists Donna Galindo, Corinne Kleinman and Julie Dailey and Legal Assistant Angela Lawrence. Finally, they thanked Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
District Man Sentenced to Five Years in Prison for Role in Armed Robbery in Northeast WashingtonRead the Press Release
WASHINGTON - Darius Briscoe, 19, of Washington, D.C., has been sentenced to a five-year prison term on charges stemming from an armed robbery that occurred in Northeast Washington last year, announced U.S. Attorney Channing D. Phillips.
Briscoe was found guilty by a jury in October 2015 of one count of armed robbery, one count of assault with a dangerous weapon, and two counts of possession of a firearm during the commission of a crime of violence. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced on Dec. 18, 2015, by the Honorable Milton C. Lee. Following his prison term, Briscoe will be placed on three years of supervised release.
According to the government’s evidence, on June 21, 2015 - Father’s Day - at about 11 p.m., the victim stopped at a convenience store in the 1200 block of Mount Olivet Road NE to play the lottery after spending the day with his daughter. As the victim left the store at approximately 11:30 p.m., he saw Briscoe just outside the establishment on a bicycle.
As he was walking home, the victim was approached by Briscoe near an alley in the rear of 1200 Raum Street NE. Briscoe pointed a handgun in the victim’s face. He then directed the victim to empty his pockets while ordering three accomplices to search him. One of the accomplices loosened the victim’s belt and pulled his shorts partially down while Briscoe continued to point the gun at him. The assailants took a cell phone and a wallet that contained identification cards, credit cards and currency. Once Briscoe realized the victim did not have any additional money, he became frustrated and squeezed the trigger on the handgun. The victim heard the click and quickly fled the scene once he realized the gun had jammed.
Because the victim did not immediately report the robbery, Briscoe was not arrested until several days later. No others have been apprehended. None of the robbery proceeds were recovered.
In announcing the sentence, U.S. Attorney Phillips praised the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Allison Daniels and Victim/Witness Coordinator Diana Lim. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Jennifer Kerkhoff and Nebiyu Feleke, who investigated and indicted the case, as well as Assistant U.S. Attorney Tamika Griffin who prosecuted the matter with Assistant U.S. Attorney Feleke.
Maryland Man Sentenced to Three Years in Prison for Attacking Two Women in Northwest WashingtonRead the Press Release
WASHINGTON – Fernando Salas, 31, formerly of Gaithersburg, Md., was sentenced today to three years in prison after earlier pleading guilty to one count of kidnapping and one count of misdemeanor sexual abuse stemming from his random attack on two different women one night in May 2015, U.S. Attorney Channing D. Phillips announced.
Salas pled guilty in June 2015 in the Superior Court of the District of Columbia, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction. He was sentenced by the Honorable Jennifer Anderson. Upon completion of his prison term, Salas will be placed on five years of supervised release.
According to the government’s evidence, early on May 7, 2015, after a night of heavy drinking and attending a strip club on M Street NW, Salas took to the nearby streets. He first accosted a college student as she was walking home on 19th Street NW, just south of M Street. He grabbed her from behind and tried to drag her into a nearby alley. She was able to get his hand off of her mouth and began screaming for help, at which point Salas fled down the alley.
A few minutes later, Salas came up from behind another young woman who was waiting for an Uber ride at 18th and M Streets NW. Again, Salas approached from behind, grabbed the woman, and tried to drag her to a secluded spot outside a nearby bank. As she struggled to get away, a Good Samaritan saw what Salas was doing and yelled at him. Salas then threw the woman to the ground and ran away.
Salas was apprehended nearby a short while later by officers of the Metropolitan Police Department (MPD), who were responding to the 911 placed by the first victim after she got away.
In announcing the sentence, U.S. Attorney Phillips praised the work of MPD’s Second District officers and detectives from the MPD Sexual Assault Unit, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key and Joyce Arthur; and Victim/Witness Advocate Tracey Hawkins. Finally, U.S. Attorney Phillips commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted the case.
District Man Sentenced to 39 Months in Prison for Improper Touching of 16-Year-Old GirlRead the Press Release
WASHINGTON – James Leroy Burney, 33, of Washington, D.C., was sentenced today to 39 months in prison after earlier pleading guilty to one count of sexual abuse of a minor, stemming from his fondling of a 16-year-old girl while she slept at her mother’s home, U.S. Attorney Channing D. Phillips announced.
Burney pled guilty in October 2015 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Rhonda Reid Winston. After his prison term, he will be placed on 10 years of supervised release and will be required to register as a sex offender for 10 years.
According to the government’s evidence, on Aug. 13, 2015, the girl was spending the night with her mother, who she was visiting in Southeast Washington. Twice during the night, Burney slipped into a bedroom and fondled the girl. The Metropolitan Police Department (MPD) got a warrant for Burney’s arrest, and arrested him on Sept. 16, 2015.
In announcing the sentence, U.S. Attorney Phillips praised the work of MPD’s Youth Services Division, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key and Joyce Arthur; Victim/Witness Advocate Veronica Vaughan; and La June Thames and Katina Adams-Washington, both of the Victim Witness Assistance Unit. Finally, U.S. Attorney Phillips commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
District Man Sentenced to 18 Years in Prison for Attacking Woman at Her HomeRead the Press Release
WASHINGTON – Levi Ruffin, 37, of Washington, D.C., was sentenced today to 18 years in prison on charges stemming from a nighttime attack on a woman as she tried to enter her home in Northwest Washington, announced U.S. Attorney Channing D. Phillips.
Ruffin was found guilty in October 2015 by a jury of six counts: kidnapping while armed; third-degree sexual abuse while armed; first-degree burglary while armed; attempted robbery while armed; assault with a dangerous weapon, and assault causing significant bodily injury. The verdict was returned following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, Ruffin will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 10 years and complete a mental health evaluation, sex offender treatment and therapy, and drug and alcohol treatment.
According to the government’s evidence, on Sept. 14, 2013, at about 9 p.m., the victim was entering the door to her home in the 6900 block of Georgia Avenue NW after an outing with her friends. As she entered the residence, she was rushed from behind by Ruffin, who placed his hand over her mouth. Ruffin pulled out a knife, placed it next to the woman’s face, and demanded she drop her belongings. Ruffin then forced her inside her home and demanded money. When the woman told Ruffin she had no money and attempted to give him her credit cards, Ruffin slapped the credit cards away and began to sexually assault her. The woman fought Ruffin when he touched her. During the fight, Ruffin cut the woman on both her hands and bit her face and back.
The bite marks on the woman’s face were swabbed for potential DNA. DNA was recovered from those bite marks and was traced to Ruffin. A warrant for Ruffin’s arrest was issued, and when Ruffin was arrested on Aug. 6, 2014, he was found to have generally matched the description the woman gave of the attacker. Ruffin also had a knife that matched the description provided by the woman of the knife used during the attack.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences and Bode Technologies. In addition, he acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Mark Morse and Wanda Trice; Victim/Witness Advocate Veronica Vaughan; Litigation Technology Specialist Karen McColman; Criminal Investigators Nelson Rhone and Melissa Matthews; Legal Interns Emma McArthur and Meghan Monahan, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he commended the work of Assistant U.S. Attorneys Kenechukwu Okocha and Akhi Johnson, who prosecuted the matter, and Assistant U.S. Attorney Jodi Lazarus, who indicted the case.
District Man Pleads Guilty to Federal Charge for Series of Threats Against Metro Transit SystemRead the Press Release
WASHINGTON – Jerez Nehemiah Coleman, 20, of Washington, D.C., pled guilty today to a federal charge stemming from an investigation into a series of calls he made falsely warning of various threats to the Metro transit system, announced U.S. Attorney Channing D. Phillips and Ron Pavlik, Chief of the Metro Transit Police.
Coleman, also known as Kidd Cole and Jerez Nehemiah Stone-Coleman, was arrested on May 27, 2015 and has been in custody ever since. He pled guilty this afternoon in the U.S. District Court for the District of Columbia to a charge of making threats involving explosive materials. The Honorable Amit P. Mehta scheduled sentencing for Feb. 26, 2016. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. The plea, which is subject to the Court’s approval, calls for a sentence of up to 27 months in prison, to be followed by two years of supervised release.
According to a statement of offense, signed by the defendant as well as the government, Coleman placed over 300 calls to 911 from December 2014 to May 2015. Multiple law enforcement agencies – including the Metro Transit Police, the Metropolitan Police Department (MPD), the FBI Joint Terrorism Task Force, the U.S. Capitol Police, and the U.S. Secret Service - responded to these calls and provided security at the various scenes. These threat and/or hoax calls caused law enforcement to spend hundreds of hours ensuring the public was safe.
In one such call, for example, made on Dec. 12, 2014, Coleman called 911 to report that he and his friends had bombs and were on a Metrobus at the Potomac Avenue Metro station in Southeast Washington. During the call, Coleman stated, “We are going to blow the entire whole bus…everybody is going to die in ten minutes…” This call prompted an immediate emergency response. MPD and Metro Transit Police were diverted from other duties and dispatched, emergency lights on and sirens blaring, to the scene. MPD arrived first and established a perimeter around the bus. There were about 20 passengers on board. When Metro Transit Police officers arrived, they evacuated the passengers. They searched each seat of the bus, the wheel wells, the undercarriage, and the exhaust pipes. Throughout this search, the bus was out of service. After the thorough investigation, police determined that the 911 call was a hoax.
“Jerez Nehemiah Coleman repeatedly disrupted our transit system and put people on edge by calling 911 with false threats of imminent attacks,” said U.S. Attorney Phillips. “Federal and local law enforcement immediately responded to these calls, putting aside other important responsibilities to investigate what turned out to be a hoax. Ultimately, the investigation led to this defendant, and now he is being held accountable for this series of senseless acts.”
“In today’s world, we must take every threat seriously,” said Metro Transit Police Chief Pavlik. “Over a period of several months, the defendant’s actions had the effect of putting at risk many Metro riders and responding police officers. I want to express my sincere gratitude for the efforts of our law enforcement partners on the Joint Terrorism Task Force, as well as the prosecutors who successfully handled this case.”
Coleman earlier was indicted by a federal grand jury on a total of 13 felony counts. In return for his guilty plea, the other charges will be dismissed at sentencing. In his plea today, he admitted to all of the conduct as alleged in the 13 charges.
In announcing the plea, U.S. Attorney Phillips and Metro Transit Police Chief Pavlik commended the work of those who investigated the case for the Metro Transit Police. They also expressed appreciation for the assistance provided by the Metropolitan Police Department, the 911 Office of Unified Communications, the FBI’s Washington Field Office, and other law enforcement agencies. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jorge Casillas, Jessica Moffatt, and Todd McClelland and Criminal Investigator John Marsh. Finally, they commended Assistant U.S. Attorneys Deborah A. Curtis, John L. Hill and John Marston, who investigated and prosecuted the case.
District Man Pleads Guilty to Second-Degree Murder While Armed in Shooting of Cousin in Northeast WashingtonRead the Press Release
WASHINGTON – Roosevelt Robinson, 67, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed stemming from the shooting death last summer of his cousin, U.S. Attorney Channing D. Phillips announced.
Robinson pled guilty in the Superior Court of the District of Columbia. He is to be sentenced on Feb. 26, 2016, by the Honorable Michael Ryan.
According to the government’s evidence, on Friday, Aug. 21, 2015, at approximately 10:35 a.m., Robinson rode his bicycle to the house of his cousin, Loretta Carswell, 63, in the 3700 block of 18th Street NE. He confronted Ms. Carswell outside, accusing her of stealing a ring from him that he intended to give to his daughter. This was an ongoing accusation based on a time when Ms. Carswell safeguarded some of Robinson’s valuables. Every time this issue had been raised, Ms. Carswell denied knowing what Robinson was talking about.
When Robinson confronted Ms. Carswell on Aug. 21, 2015 and asked her about the ring, Ms. Carswell said she did not have it and gave Robinson a look that he interpreted as dismissive. Robinson told her: “Girl, you know I should kill you for doing what you did.” Ms. Carswell responded by saying, “You can go ahead and kill me if you want to, I done told you I don’t have your ring.” At that point, Robinson pulled out a Ruger .357-caliber Magnum revolver and shot Ms. Carswell one time in the head in front of her home. The bullet entered her forehead.
Immediately after the shooting, Robinson rode his bicycle down the street to his home in the 3600 block of 18th Street NE. Robinson barricaded himself inside until the Metropolitan Police Department (MPD) was able to arrest him approximately 30 hours later. In an interview with the police, Robinson confessed to shooting his cousin in the head.
In announcing the guilty plea, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker of the Victim/Witness Assistance Unit and Paralegal Specialist Vanessa Trent-Valentine. He also praised the efforts of Assistant U.S. Attorney Christine Macey, who investigated and prosecuted the case.
U.S. Attorney's Office for the District of Columbia Secures over $462 Million in Financial Recoveries in Fiscal 2015Read the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia collected more than $462.4 million in criminal and civil actions and asset forfeitures during the most recent fiscal year, U.S. Attorney Channing D. Phillips announced today.
All told, the U.S. Attorney’s Office for the District of Columbia has collected over $2.6 billion in criminal and civil actions and asset forfeitures over the past six fiscal years.
The totals for Fiscal Year 2015 include over $261.9 million collected in criminal actions and over $28.9 million in civil actions. Another $171.4 million was collected in criminal and civil asset forfeiture actions. Additionally, the U.S. Attorney’s Office for the District of Columbia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect another $173.3 million in civil actions cases pursued jointly with these offices.
“Our enforcement efforts have restored over $2.6 billion in recent years to taxpayers and victims of crime,” said U.S. Attorney Phillips. “Those who break federal laws or who try to cheat the government contracting process should take note. Working with our law enforcement partners, we will continue to pursue criminal and civil actions to achieve justice.”
Attorney General Loretta E. Lynch earlier announced that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
Nationally, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Additionally, the U.S. Attorneys’ offices nationwide, working with partner agencies and divisions, collected over $5.3 billion in asset forfeiture actions in FY 2015.
The U.S. Attorneys’ offices, along with the department’s litigating divisions, are responsible for enforcing and collecting criminal and civil debts owed to the United States and criminal debts owed to federal crime victims. In the District of Columbia, the Financial Litigation Unit in the Civil Division of the U.S. Attorney’s Office aggressively handles these responsibilities. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Lynch, adding that the collections “demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
Collections in Civil Actions
The collections in civil actions by the U.S. Attorney’s Office for the District of Columbia included more than $94 million generated by a consent decree between auto manufacturers and the EPA for violation of the Clean Air Act. Defendants sold, offered for sale, introduced into commerce, delivered for introduction into commerce, or imported into the United States new 2012 and 2013 motor vehicles that failed to conform to the design specifications in their applications for Certificates of Conformity that purportedly covered these vehicles. In essence, defendants overstated fuel efficiency and greenhouse gas emissions levels.
The amount also included $58 million, plus interest, paid by the Volvo Truck Corporation, to resolve a District Court judgment and an appellate decision. The United States Court of Appeals for the District Of Columbia Circuit affirmed the District Court’s final judgment finding that Volvo Truck violated the stipulated consent decree for violating the Clean Air Act. On April 13, 2012, the District Court ordered Volvo Truck to pay the stipulated penalties. The defendant’s appeal of this decision was unsuccessful.
In another case, Children’s Hospital, Children’s National Medical Center Inc. and Children’s Research Institute, collectively Children’s National Medical Center (CNMC), paid $12.6 million to resolve allegations that they violated the False Claims Act by submitting false cost reports and other applications to the components and contractors of the Department of Health and Human Services (HHS), as well as to Virginia and District of Columbia Medicaid programs. The settlement resolved allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by a former employee of CNMC.
Collections in Criminal Actions
The collections in criminal actions by the U.S. Attorney’s Office for the District of Columbia included $155,138,904 paid in a criminal fine by Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd. This payment covered a portion of a $232,708,356 penalty that the company must pay the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan. The company pled guilty in March 2015 and the penalty was part of a plea agreement later approved by the Court. The monetary penalty also includes an additional payment of $77,569,452 in criminal forfeiture. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.
The collections also included $7.3 million paid on restitution through forfeiture in an investigation that uncovered the largest domestic bribery and bid-rigging scheme in the history of federal contracting cases. The lead defendant was an employee of the U.S. Army Corps of Engineers (USACE), a branch of the United States Army. As part of his official duties, Kerry Khan was responsible for placing orders for products and services for the USACE through federal government contracts and for certifying that products and services provided through government contracts were received by the USACE. From in or about the spring of 2007 through Oct. 4, 2011, Khan along with his co-conspirators devised schemes to obtain USACE contracts from corrupt contractors who paid bribes to receive government contracts. Khan and his co-conspirators defrauded over $30 million from the government. A total of 20 individuals and one corporation, Nova Datacom, LLC, have pled guilty to federal charges. All defendants consented to forfeit properties acquired from their ill-gotten gains. Khan is now serving a prison term of 19 years and seven months for his role in the scheme.
The amount also included $242,000 from defendant Gerry D. Mathews, who was a book keeper working at a law firm and had the responsibilities for managing certain partners’ professional corporations. Beginning in 1995 and continuing every year until May 2005, the defendant embezzled money from the partners and their professional corporations in a variety of ways. Mathews had pleaded guilty and was ordered to pay restitution in the amount of $312,260. The Financial Litigation Unit filed writs of garnishments to collect from her 401k, prior employment unused vacation leave and pension.
In another case, defendant Lindsay Branson III, a former background investigator for the U.S. Office of Personnel Management (OPM), paid $139,819 in restitution. Branson had pleaded guilty to making a false statement, stemming from his falsification of work on background investigations of federal employees and contractors. According to the government’s evidence, in 2010 and 2011, Branson represented that he had interviewed a source or reviewed a record regarding the subject of a background investigation. In fact, he had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by federal agencies requesting background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances. This amount was collected from Branson’s Thrift Savings Plan account and through Treasury Offset Program collections.
Collections in Forfeiture Cases
The U.S. Attorney’s Office for the District of Columbia has emphasized the importance of asset forfeiture to fight crime and criminal organizations and to seek justice for victims. Asset forfeiture is a powerful tool that can deprive criminals and criminal organizations of illegal proceeds and instrumentalities of crimes, recover property that may be used to compensate victims, and deter crime. Federal law provides authority to seize and forfeit the proceeds of virtually all serious federal offenses. Forfeited assets are deposited into the Department of Justice Asset Forfeiture Fund and Department of Treasury Asset Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
In addition to the $77,569,452 in forfeiture collected in the case involving Schlumberger Oilfield Holdings Ltd., the Office’s Asset Forfeiture and Money Laundering Section collected $92 million in fiscal 2015 under a deferred prosecution agreement with Commerzbank AG, a global financial institution headquartered in Frankfurt, and its U.S. branch, Commerzbank AG New York Branch (Commerz New York). All told, Commerzbank agreed in March 2015 to forfeit a total of $563 million and pay a $79 million fine under the agreement with the Justice Department for violations of the International Emergency Economic Powers Act (IEEPA) and the Bank Secrecy Act (BSA). According to admissions contained in the deferred prosecution agreement, from 2002 to 2008, Commerzbank knowingly and willfully moved $263 million through the U.S. financial system on behalf of Iranian and Sudanese entities subject to U.S. economic sanctions. Commerzbank engaged in this criminal conduct using numerous schemes designed to conceal the true nature of the illicit transactions from U.S. regulators.
Former Property Manager Sentenced to 41 Months in Prison for Stealing over $380,000 from Employer and ClientsRead the Press Release
WASHINGTON – Lorraine Cyr, 58, was sentenced today to 41 months in prison for embezzling over $380,000 from her employer and properties that she managed, announced U.S. Attorney Channing D. Phillips, Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI), and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Cyr, of Palm Bay, Fla., pled guilty in July 2015 in the U.S. District Court for the District of Columbia to one count each of wire fraud and income tax evasion. She was sentenced by the Honorable Senior Judge Royce C. Lamberth. Following her prison sentence, Cyr will be placed on three years of supervised release. She also must pay $380,537 in restitution to a property management company and various other victims of her scheme, as well as $96,112 to the IRS. She also must pay a forfeiture money judgment in the amount of $342,917.
According to a statement of offense submitted at the plea hearing, Cyr worked from 2001 until 2009 for a property management company, referred to in court documents as “Property Management Company A,” in Washington, D.C. She was vice president of operations during her last four years of employment, handling duties such as management of payroll, bank accounts, budgeting, invoicing, and tax preparation for the company and its clients. The clients consisted largely of cooperative and condominium apartment buildings in the District of Columbia.
In 2009, Cyr started her own property management company, Lorraine Cyr Management Group, Inc., also in Washington, D.C., in which she performed similar duties for various clients, including some who transitioned to her new firm. In her new role, she had virtually unfettered discretion to manage the business affairs of her clients, who granted her access to bank accounts to manage their operations and expenses.
Between July and November of 2009, prior to resigning from “Property Management Company A,” Cyr embezzled $37,620, which she used for personal purposes, including spending at casinos and various retailers. Then, between March 2010 and April 2011, while at her own firm, she stole $342,917 in funds from eight clients. She used the money for expenses such as spending at casinos, hotels, amusement parks, clothing stores, restaurants, and other retailers.
The tax charge stems from Cyr’s evasion of income taxes on the money that she was stealing, as well as the legitimate income that she was earning, during the course of her scheme.
In announcing the sentence, U.S. Attorney Phillips, Special Agent in Charge Jankowski and Chief Lanier commended the work of those who investigated the case from IRS-CI and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Thomas Swanton and Anthony Saler, who handled forfeiture issues; former Assistant U.S. Attorney Mary Chris Dobbie; Paralegal Specialist Tasha Harris; Legal Assistant Angela Lawrence, and former Paralegal Specialists Heather Sales and Nicole Wattelet. Finally, they expressed appreciation for the work of Trial Attorney Jeffrey McLellan, of the Department of Justice’s Tax Division, who assisted on the tax matter, and Assistant U.S. Attorney David A. Last, who investigated and prosecuted the case.
Former President of Investment Services Company Indicted on Charges That He Stole over $1 Million from ClientsRead the Press Release
WASHINGTON – Brian J. Ourand, 54, the former president of a company that provides financial services and investment advice, has been indicted by a federal grand jury on charges that he embezzled more than $1 million from his clients’ bank and credit card accounts.
The indictment was announced today by U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Ourand, formerly of Washington, D.C. and Chicago, was arrested on Dec. 8, 2015, by the FBI in Chicago. He made his first appearance later that day in the U.S. District Court for the U.S. District Court for the Northern District of Illinois and was released pending further proceedings. The indictment, which was unsealed today, was returned on Dec. 3, 2015, in the U.S. District Court for the District of Columbia, where Ourand is to appear on Dec. 21, 2015.
The indictment charges Ourand with two counts of mail fraud, nine counts of wire fraud, two counts of aggravated identity theft, and four counts of first-degree theft. It also includes a forfeiture allegation seeking all proceeds from the crimes.
According to the indictment, Ourand began working for the Washington D.C.-based financial services company in 1986, and later became a vice president and eventually president of the firm. The company terminated his employment in August of 2011.
As alleged in the indictment, Ourand and the company provided advisory and financial management services to high net-worth individuals, most of whom were current and former professional athletes. Among the services they provided were paying invoices and bills, coordinating tax preparation, and providing estate planning on behalf of individual clients. The charges involve Ourand’s activities involving four clients, all of whom were current or former professional athletes. According to the indictment, beginning as early as May of 2003, and continuing through July of 2011, Ourand schemed to embezzle money from these clients.
The indictment alleges that Ourand diverted at least $1 million in total funds from the clients’ bank accounts and credit card accounts to himself and for the benefit of those close to him. It also alleges that Ourand sought to conceal his embezzlement by generating false documentation in support of purported business-related and other authorized expenses.
Among other things, the indictment alleges, Ourand used the stolen money to pay for hotel stays, meals at restaurants, retail purchases, gym memberships, and other expenses.
The Securities and Exchange Commission has a separate case pending against Ourand that is awaiting administrative proceedings. The SEC charged Ourand with fraud.
Charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
In announcing the indictment, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office for the District of Columbia, including Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorney Kevin Lowell, also of the Asset Forfeiture and Money Laundering Section; Paralegal Specialist Tasha Harris; Legal Assistant Angela Lawrence, and former Paralegal Specialist Heather Sales. Finally, they commended the work of Assistant U.S. Attorney David A. Last, who is prosecuting the case.
District Man Sentenced to over 19 Years in Prison for Shooting Friend and Setting His Body on FireRead the Press Release
WASHINGTON – Zacchaeus “Zack” Blanding, 19, of Washington, D.C., was sentenced today to 19 years and four months in prison on charges stemming from the shooting death of his friend, Heineken McNeil, U.S. Attorney Channing D. Phillips announced.
Blanding pled guilty in October 2015, in the Superior Court of the District of Columbia, to second-degree murder while armed. The plea, which was contingent on the Court’s approval, called for a sentencing range of 18 to 26 years in prison, the exact amount of time to be determined by the judge. The Honorable Rhonda Reid Winston accepted the plea today and sentenced Blanding accordingly. Following his prison term, Blanding will be placed on five years of supervised release.
According to the government’s evidence, on Tuesday, June 23, 2015, at approximately 5:25 a.m., the District of Columbia Department of Fire and Emergency Medical Services was sent to the alley behind the 1200 block of Holbrook Terrace NE. The fire department was dispatched due to a fire involving brush, a melting trash can, and a dead human body. There were small flames approximately one to two feet high around the body and brush. The body of Mr. McNeil, 19, was later transported to the District of Columbia Office of the Chief Medical Examiner, where an autopsy was performed. Two bullets that were removed from the head appeared to be from a small caliber firearm. The cause of death was determined to be gunshot wounds to the head and the manner of death was by homicide.
During the course of the investigation, Blanding was interviewed by homicide detectives from the Metropolitan Police Department (MPD). During these interviews, he admitted to shooting Mr. McNeil and then setting his body on fire.
The investigation revealed that in June 2015, Mr. McNeil lived with Blanding in Blanding’s apartment in the 1200 block of Meigs Place NE. On or about June 21, 2015, Blanding decided to kill Mr. McNeil. He video-recorded himself with his cell phone on June 21, 2015, at approximately 9:17 a.m., saying, “This is going to be the last video I’ll ever make. I plan on killing three people – my best friend, my mother and her girlfriend . . .” After the murder, Blanding told detectives multiple times that Mr. McNeil was his best friend.
Approximately 24 hours after the video was recorded, on or about the morning of June 22, 2015, Blanding shot Mr. McNeil twice in the head with a .22-caliber firearm inside Blanding’s bedroom. He then wrapped the body in a blue blanket. Blanding then made multiple trips throughout the day on June 22 to conceal the murder he just committed. He went to a nearby store and bought duct tape to secure the body. On his way back to his apartment, he found a large garbage can, which he dragged into his apartment. He placed Mr. McNeil’s body in the garbage can and dragged the can into the back alley of his apartment building. The body remained in the garbage can most of the day.
Later that same day, Blanding made another trip to another store to buy shoes and returned to his apartment. He also went outside for a while in an attempt to “play off” that he had just committed a murder. On another trip from his apartment, he went to an Auto Zone and purchased a gas canister. He then returned to his apartment again and took a nap. Later that evening, he went to a neighboring gas station and filled the gas canister with gas.
At approximately 5:23 a.m. on June 23, 2015, almost 24 hours after he killed Mr. McNeil, Blanding went into the alley, where the body was still concealed in the garbage can. He doused the body in gasoline and then set it on fire. He left the body to burn where the Fire and Emergency Medical Services located it. Blanding was arrested on July 8, 2015, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation for the work of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the D.C. Department of Fire and Emergency Medical Services and the D.C. Office of the Chief Medical Examiner. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Jennifer Clark and Jennifer Allen of the Victim/Witness Assistance Unit; Paralegal Specialist Vanessa Trent-Valentine, and Investigative Analyst Zachary McMenamin. Finally, he praised the work of Assistant U.S. Attorneys Shana Fulton and Christine Macey, who investigated and prosecuted the case.
District Man Sentenced to 37 Years in Prison for 2010 Murder in Northeast WashingtonRead the Press Release
WASHINGTON - Emanuel “Manny” Guzeh, 29, of Washington, D.C., was sentenced today to 37 years in prison for a 2010 murder in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Guzeh was found guilty by a jury on Sept. 29, 2015, following a trial in the Superior Court of the District of Columbia, of second-degree murder while armed and possession of a firearm during a crime of violence. He was sentenced by the Honorable Jennifer Anderson. Following his prison term, Guzeh will be placed on eight years of supervised release.
At trial, the government’s evidence showed that on Feb. 15, 2010, at approximately 11:30 p.m., officers with the Metropolitan Police Department (MPD) were called to an apartment in the 900 block of 48th Street NE, and discovered the body of Michaeldeon Talley, 33, who was dead on the hallway floor of the apartment, having been shot several times.
MPD homicide detectives learned, and the subsequent investigation revealed, that on the night of the murder, Mr. Talley was inside the apartment with his male friend, a girlfriend, and (later) two prostitutes who had advertised on “Backpage.com.” The two prostitutes knew Mr. Talley and were invited over to “party” with the group. One of the prostitutes had recently begun dating the defendant, who accompanied the prostitutes to the apartment, but remained outside. The prostitutes went over to the apartment, socialized with the group, and looked around the apartment for money or valuables to later take with them. They did not find anything of value at first but, while the prostitutes were still inside, Guzeh decided to bust inside the apartment. He then went to the back bedroom, kicked open the bedroom door, and shot Mr. Talley in the torso. Mr. Talley, after pushing his girlfriend out of harm’s way, lunged for the gun and the two men fought. During the struggle, Guzeh shot Mr. Talley three more times. Guzeh and the prostitutes then fled the apartment.
In announcing the sentence, U.S. Attorney Phillips expressed his appreciation for the work of the Metropolitan Police Department. He also commended the efforts of Paralegal Specialists Debra Joyner, Meridith McGarrity, and Zekiah Wright; Paralegal Supervisor Sharon Newman; Victim/Witness Advocate Marcey Rinker; Information Technology Specialist Leif Hickling; Investigative Analyst Zachary McMenamin; Victim/Witness Specialists Wanda Queen and M. LaVerne Forrest; Supervisory Victim/Witness Specialist Michael Hailey; Victim/Witness Services Coordinator Katina Adams-Washington; Supervisory Victim/Witness Services Coordinator David Foster, and Homicide Section Law Clerk Adam Bereston. Finally, U.S. Attorney Phillips commended former Assistant U.S. Attorney Holly Shick, who assisted in the investigation of this case, and Assistant U.S. Attorneys David Gorman and Robert Eckert, who investigated and prosecuted the case at trial.
Texas Man Sentenced to 21 Days in Prison on Federal Charge Stemming from Disturbance at U.S. Supreme CourtRead the Press Release
WASHINGTON – Rives M. Grogan, 50, of Mansfield, Texas, was sentenced today to 21 days of incarceration on a federal charge stemming from a disturbance that he caused on April 28, 2015, at the United States Supreme Court, U.S. Attorney Channing D. Phillips announced.
Grogan pled guilty on Sept. 25, 2015, in the U.S. District Court for the District of Columbia to a charge of picketing or parading in violation of 18 U.S.C. § 1507, which covers illegal demonstrations within federal court buildings. He was sentenced by the Honorable Randolph D. Moss. Upon completion of his prison term, Grogan will be placed on one year of supervised release. During that time, he is ordered to stay away from the Supreme Court.
Grogan has a history of convictions for disorderly conduct and similar offenses, including cases involving other disturbances over the years at the U.S. Capitol and the Supreme Court and on Capitol grounds during the 2013 Presidential inauguration. The guilty plea in this case stems from his actions on the morning of April 28, 2015, as the Supreme Court was in session, with all nine Justices present and presiding.
According to a statement of offense submitted as part of the guilty plea, on the date of the disturbance, the Justices were considering whether a state’s constitutional and statutory bans on recognition of marriages of same-sex couples validly entered in other jurisdictions violate the Due Process and Equal Protection clauses of the U.S. Constitution and whether a state’s refusal to recognize a judgment of adoption of a child issued to a same-sex couple by the courts of a sister state violates the Full Faith and Credit Clause of the U.S. Constitution.
Due to the historical significance of the issues before the Supreme Court that day, the courtroom was full with civilians, members of the Supreme Court bar, and other professional attendees.
Grogan entered the courtroom at about 10:30 a.m., as arguments were under way. A short time later, he stood and began yelling statements in a very loud, forceful voice toward the front of the courtroom, where the Justices were seated at the court bench. Among other things, he stated that “the Bible teaches if you support gay marriage, you could burn in hell for eternity.” Police officers attempted to detain him, but Grogan refused to leave his bench. Then, as officers attempted to grab him and take him out of the courtroom, he continued to shout statements. This continued as he was escorted through the building and to a holding area. He could still be heard by attendees in the courtroom.
In announcing the sentence, U.S. Attorney Phillips expressed appreciation for the work of the Police Department of the U.S. Supreme Court, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Derek Starliper; Paralegal Specialist Carolyn Carter-McKinley, and Legal Assistant Holly Crouse. Finally, he commended the work of Assistant U.S. Attorney Angela S. George, who prosecuted the case.
District Man Pleads Guilty to Sexually Assaulting Two Women in Attack in Alley in Northwest WashingtonRead the Press Release
WASHINGTON - Hassain Smart, 20, of Washington, D.C., has pled guilty to charges stemming from sexual assaults he committed against two women in an alley in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Smart pled guilty on Dec. 9, 2015, in the Superior Court of the District of Columbia, to charges of first-degree sexual abuse while armed, first-degree sexual abuse with aggravating circumstances, robbery while armed, and kidnapping while armed. The plea, which is contingent upon the Court’s approval, calls for a prison term of 27 to 33 years. Upon release, Smart would be required to register as a sex offender for the remainder of his life. The Honorable Jennifer Anderson scheduled sentencing for March 4, 2016.
According to the government’s evidence, at about 1 a.m. on June 25, 2015, the two victims began to open the door to their home in the unit block of T Street NW when Smart, a stranger, approached from behind and brandished what appeared to be a black handgun. He led both women through a dark alley into a muddy area between a fence and a vacant house under construction. Smart raped both women in the alley while continuing to brandish the weapon.
After the sexual assaults, Smart refused to allow the victims to leave until they surrendered their cell phones and a debit card to him. When he finally left, the victims contacted law enforcement, and detectives from the Sexual Assault Unit of the Metropolitan Police Department (MPD) responded and immediately began an investigation.
An MPD patrol officer in the Seventh District spotted the defendant, who matched the description given by the victims. Smart was arrested after police found the victims’ cell phones and debit card and the weapon in his possession. Smart then confessed to kidnapping, robbing, and sexually assaulting both women while brandishing the weapon.
After reporting the assault to the police, the victims were transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE), which included collection of forensic evidence. Bode Technologies later conducted DNA testing and concluded that the major male profile found on intimate swabs from a victim’s SANE kit matched the DNA profile of the defendant.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit, the Fifth and Seventh Police Districts, and crime scene technicians. He also expressed appreciation to Bode Technologies. He also commended those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan and Paralegal Specialists Tierra Nanches and Jason Manuel. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Amy Zubrensky and Julianne Johnston, who are prosecuting the case.
Campaign Finance Investigation ConcludedRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia announced today that the investigation into corrupt spending in federal and local political campaigns, including the 2010 mayoral election in the District of Columbia, has concluded.
No additional charges are expected to be filed in the investigation related to the federal and local political campaigns, which uncovered evidence of over $3.3 million in illegal contributions to various campaigns between 2006 and 2011. A total of 12 people pled guilty to charges in the investigation, including seven who pled guilty to offenses directly involving or connected to the 2010 District of Columbia mayoral election.
In a related action, the U.S. Attorney’s Office today filed motions asking judges to begin setting sentencing dates for the seven people who have pled guilty but have yet to be sentenced in the investigation.
In every criminal trial, the government bears the burden of proving a defendant’s guilt beyond a reasonable doubt. Department of Justice policy provides that no prosecution should be initiated against any person unless the government believes that the person probably will be found guilty beyond a reasonable doubt by a jury, sitting as an unbiased trier of fact, and that the jury’s guilty verdict probably will be sustained by a reviewing court. In this investigation, based on a thorough review of the available evidence and applicable law, the U.S. Attorney’s Office has concluded that the admissible evidence is likely insufficient to obtain and sustain a criminal conviction against any other individuals related to the federal and local political campaigns.
The U.S. Attorney’s Office for the District of Columbia worked with the FBI’s Washington Field Office and the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI) on the investigation, which began in 2011. In addition to campaign-related offenses, the investigation uncovered numerous instances of obstructive conduct by several of the defendants, as described further below, to conceal the extent of the wrongdoing.
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Those who have pleaded guilty to charges involving the mayoral election were the following:
Jeffrey E. Thompson: Thompson pled guilty in March 2014 and admitted taking part in a scheme in which he and his companies, Thompson, Cobb, Bazilio and Associates (TCBA) and D.C. Healthcare Systems, Inc. (DCHSI), secretly channeled more than $3.3 million in illegal contributions to at least 28 political candidates and their campaigns, including candidates for the offices of President of the United States and Mayor of the District of Columbia. In his guilty plea, Thompson admitted, among other things, to secretly channeling more than $668,800 to pay for campaign activities in connection with a mayoral campaign in the 2010 District of Columbia mayoral election.
Eugenia C. Harris: Harris, the owner of two businesses in the District of Columbia, pled guilty in July 2012 and admitted to conspiring to disguise the source of campaign contributions in federal and local elections, including the 2010 District of Columbia mayoral campaign. As part of her guilty plea, she also admitted taking part in steps to conceal the illegal activities, such as causing others to shred and destroy a large volume of paper records maintained by her businesses because they could have revealed the extent of her involvement in the mayoral election.
Vernon Hawkins: Hawkins pled guilty in August 2013 to making a false statement to federal authorities investigating allegations involving the 2010 District of Columbia mayoral campaign. Among other things, Hawkins twice gave cash that he obtained from Harris to persuade a potential witness to leave the area so that he would be unavailable to speak with federal agents.
Mark Long: Long pled guilty in September 2014 to conspiring to defraud the District of Columbia’s Office of Campaign Finance by funding and concealing contributions in excess of those permitted under D.C. campaign finance laws. In his plea, Long admitted that he received payment for campaign-related work during the 2010 District of Columbia mayoral campaign from Harris, who had received the funds from Thompson.
Howard L. Brooks: Brooks pled guilty in May 2012 to making a false statement to federal agents investigating activities in the 2010 District of Columbia mayoral campaign. He was sentenced to probation and community service.
Thomas W. Gore: Gore pled guilty in May 2012 to obstructing justice by destroying records in the federal investigation and making campaign contributions in the name of another person related to the 2010 District of Columbia mayoral campaign. He was sentenced to six months in prison.
Stephanie Reich: Reich pled guilty in August 2015 to a charge of making a false statement to obtain unemployment compensation. The offense involved claims for unemployment compensation that she submitted for a time period in which she was working on the 2010 District of Columbia mayoral campaign. She was sentenced to probation.
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Those who have pleaded guilty in the broader investigation were the following:
Lee A. Calhoun: Calhoun, an executive for one of Thompson’s companies, pled guilty in June 2013 to a federal charge of knowingly and willfully permitting the name of one or more persons to be used to make campaign contributions in the name of another person and aiding and abetting campaign contributions to be made in the name of another. The offense stemmed from a scheme in which he and others helped disguise that Thompson and Thompson’s company were the actual source of more than $150,000 in contributions to federal, District of Columbia, and other political campaign committees and political action committees.
Stanley Straughter: Straughter, the owner of a business based in Philadelphia, Pa., pled guilty in June 2013 to a federal charge of knowingly and willfully making, and aiding and abetting and causing to be made, unlawful corporate campaign contributions to federal campaigns. The offense stemmed from a scheme in which he and others helped conceal the fact that Thompson and one of Thompson’s companies were the actual source of more than $125,000 in contributions to various federal, state and local campaigns.
Troy White: White, the owner of a marketing company based in New York, pled guilty in September 2013 to a federal tax charge stemming from his failure to file corporate income tax returns, including failing to report more than $600,000 his company received for services it provided in support of a 2008 presidential campaign. He was sentenced to probation.
Kelvin Robinson: Robinson, a former candidate for the Council of the District of Columbia, pled guilty in June 2014 to a charge of conspiring to violate District of Columbia campaign finance laws by defrauding the District of Columbia’s Office of Campaign Finance. The charge involved $33,500 in secret contributions from Thompson to Robinson’s 2010 campaigns for At-Large Member and Ward 6 seats on the Council of the District of Columbia.
Jeff Smith: Smith, a former candidate for the Council of the District of Columbia, pled guilty in June 2014 to filing a false and misleading report with the District of Columbia’s Office of Campaign Finance that concealed campaign contributions in excess of those permitted under D.C. campaign finance laws. The charge involved $140,000 in secret contributions from Thompson to Smith’s 2010 campaign for the Ward 1 seat on the Council of the District of Columbia. Smith was sentenced to 60 days in jail, in addition to community service, probation, and a $10,000 fine.
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The U.S. Attorney’s Office remains committed to investigating alleged violations of federal and District of Columbia laws governing the financing of political campaigns in addition to all matters involving allegations of public corruption within the local government.
District Men Sentenced to Prison Terms for 2013 Killing in Southeast WashingtonRead the Press Release
WASHINGTON – Carlos Parks, 19, was sentenced today to 22 years in prison and Troy Robinson, 21, was sentenced to 15 years in prison for their roles in the slaying of a man outside a housing complex in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Parks pled guilty on July 22, 2015, in the Superior Court of the District of Columbia, to second-degree murder while armed for the death of Tywayne Thompson. The plea, which was contingent on the Court’s approval, called for 12 to 24 years of incarceration. Robinson pled guilty to the charge of voluntary manslaughter while armed for the same murder. His plea, also contingent on the Court’s approval, called for 10 to 15 years of incarceration. The Honorable Jennifer Anderson accepted the pleas today. Parks and Robinson, both of Washington, D.C., will be placed on five years of supervised release following their prison terms.
According to the government’s evidence, on June 24, 2013, at approximately 1:20 a.m., Parks and Robinson were outside in the Potomac Gardens Housing Complex in the 700 block of 12th Street SE. At that time, Parks and Robinson were each armed with semi-automatic pistols. A few minutes later, they approached Mr. Thompson, 25, who was also outside in the Potomac Gardens Housing Complex. They began to speak with him.
Robinson then began shooting at Mr. Thompson. At least one bullet from Robinson’s gun hit the victim. Parks then also began shooting at Mr. Thompson, and at least one bullet from Parks’s gun hit Mr. Thompson in his buttocks and exited through his abdomen. Mr. Thompson was taken by ambulance to a local hospital, where he died as a result of the wound from the shot fired by Parks through his buttocks and abdomen. Mr. Thompson was unarmed, and neither defendant was acting in self-defense.
In announcing the sentences, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the First Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, La June Thames, M. Laverne Forrest, David Foster, and Michael Hailey of the Victim/Witness Unit; former Paralegal Specialist Mia Beamon; Paralegal Specialist Sandra Lane; and Litigation Technology Specialist Leif Hickling. Finally, he praised the efforts of former Assistant U.S. Attorney Jonathan Kravis, who investigated and indicted the case, and Assistant U.S. Attorneys Michael Liebman and Christopher Bruckmann, who prosecuted the case.
District Man Sentenced to 22 Years in Prison for Production of Child Pornography and First-Degree Sexual Abuse of GirlRead the Press Release
WASHINGTON – Rolando de la Rocha, 42, of Washington, D.C., was sentenced today to 22 years in prison on one charge of production of child pornography and another charge of first-degree child sexual abuse, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
De la Rocha pled guilty in August 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable James E. Boasberg. Upon completion of his prison term, de la Rocha will be placed on 25 years of supervised release. He also will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, de la Rocha was the former boyfriend of the girl’s mother, and lived with the family in Northwest Washington until January 2014. In May of 2015, the girl’s mother called the Metropolitan Police Department to report that she had discovered a recording in which de la Rocha is seen sexually assaulting her child. A subsequent examination of de la Rocha’s cellphone led to the discovery of videos depicting two such incidents.
A warrant was issued for the defendant’s arrest, and de la Rocha was arrested on May 29, 2015. He admitted to police that he produced the recordings and said that he had set up an iPad to film the sexual acts in the girl’s room without her knowledge. The girl told police about several incidents that took place when she was 12 or 13, and that ended in 2013. She expressed a fear of talking to police but ultimately agreed to an interview about the defendant’s conduct.
De la Rocha has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department, including those from the Third District and the Youth Investigations Division. They also expressed appreciation for the work of the FBI’s Child Exploitation Task Force. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joyce Arthur and Criminal Investigator John Marsh. Finally, they commended the work of Assistant U.S. Attorney Andrea L. Hertzfeld, who prosecuted the case.
District Man Pleads Guilty to Murder in Shooting in Southeast WashingtonRead the Press Release
WASHINGTON - Jamil Betts, 24, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed for fatally shooting a man earlier this year in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Betts pled guilty in the Superior Court of the District of Columbia to the murder charge as well as to a charge of assault with a dangerous weapon stemming from a separate, unrelated attack. The Honorable Michael Ryan scheduled sentencing for Feb. 5, 2016. The plea, which is contingent upon the Court’s approval, calls for a prison term of 20 years on both charges.
According to the government’s evidence, the murder victim, Andre McConnell, 26, was with friends in the 3100 block of Buena Vista Terrace SE on April 27, 2015. At around 8:30 that night, Mr. McConnell engaged in a brief verbal argument with an unidentified individual. Shortly thereafter, Betts approached Mr. McConnell and the group with whom Mr. McConnell was gathered. Betts took out a gun, aimed and fired it at Mr. McConnell, and struck Mr. McConnell twice in the lower back. A second individual also was hit with one gunshot wound to the leg. Mr. McConnell was transported to Prince George’s Hospital Center, where he was pronounced dead a short time later.
In the second case, the government’s evidence showed, on the afternoon of May 29, 2015, Betts and another individual approached a woman and her daughter at gunpoint in the area of the 3400 block of A Street SE. Betts, holding the gun, and the other individual attempted to force their way into the woman’s apartment, which was occupied by other individuals. After realizing that the victims called 911, Betts and the other individual attempted to leave the area by car. In the process of driving away from the scene, Betts, who was seated in the front passenger side of the vehicle, aimed his gun at one of the victims outside the apartment building and fired one shot, nearly hitting the victim.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the Sixth and Seventh Police District of the Metropolitan Police Department (MPD). He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Jennifer Clark and Christina Principe; Victim/Witness Services Coordinator David Foster; Supervisor Security Specialist Michael Hailey; Victim/Witness Program Specialists Lesley Slade, Laverne Forest, and Wanda Queen; and Paralegal Specialist Lashone Samuels. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Julianne Johnston and Sumit Mallick, who investigated and prosecuted the assault case, and Assistant U.S. Attorneys Richard DiZinno and Robert Eckert, who investigated and prosecuted the homicide case.
Real Estate Agent/Broker Sentenced to a Year in Prison for Embezzling over $100,000 of Clients' MoneyRead the Press Release
WASHINGTON – Mark Alan Wall, 57, a real estate agent and broker from Washington, D.C., was sentenced today to a year and a day in prison on a theft charge stemming from the embezzlement of over $100,000 of his clients’ money, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Wall pled guilty to first-degree theft in May 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amy Berman Jackson. The judge sentenced Wall to a total of 24 months in prison, but suspended all but a year and a day of that time on the condition that he successfully complete three years of supervised release. Also, Wall was ordered to pay $117,000 in restitution to three victims of his crime.
According to a statement of the offense, signed by the defendant as well as the government, from about July 2010 to at least May 2013, Wall stole from real estate clients who had entrusted their money to him. He entered into agreements with clients to serve as their agent in purchasing residential property in the District of Columbia. The agreements stated that the clients would not be paying Wall an advance fee, nor did they agree to pay him a percentage of the purchase price. Instead, as in an arrangement typical of residential real estate sales of existing homes, Wall would be paid his commission by the seller of the property upon the completion of the transaction.
Wall convinced his clients to provide as their earnest money deposit an amount of money greater than typically used, saying that he would hold it in escrow for their benefit to demonstrate that they had sufficient money to close on future sales. He assured his clients that the money remained theirs unless and until they purchased a property. If the clients were unable to quickly succeed with an offer to purchase a home, Wall convinced them to deposit additional money telling them that it would strengthen their negotiating power for future offers.
As a licensed real estate agent and broker, Wall had a fiduciary duty to keep earnest money deposit client funds in a separate escrow bank account. Agents/brokers may not commingle the escrow funds with their own funds, use the escrow funds for a purpose other than the purpose for which they were entrusted to them, or fail to return the money when directed by the client.
Wall deposited the clients’ earnest money deposit checks into his operating account, rather than his escrow account. If the clients became dissatisfied with him and asked about their money, he assured them that their earnest money deposit money was maintained in an escrow account held at a federally insured bank. Wall did not maintain his clients’ money for their benefit; rather, he spent their money on himself and his expenses within a few weeks or months of receiving the funds. He also borrowed money from another person, falsely representing that he needed money to pay expenses of a real estate closing; having received the money, Wall used the money to replace the money he had stolen from clients in order that the settlement on their District of Columbia home may proceed. After the closing on the home, Wall falsely stated that the settlement did not occur and that buyers were forced to file a lawsuit against the sellers of the property. He did not repay the loan.
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier expressed appreciation for the work performed by detectives from the Metropolitan Police Department’s Criminal Investigation Division-Financial Crimes Section as well as by Special Agent Juan Juarez of the Fraud and Public Corruption Section of the U.S. Attorney’s Office. They also acknowledged the efforts of Paralegal Specialists Kristy Penny and Corinne Kleinman, and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
Maryland Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Ravi Singit, 41, of Rockville, Md., pled guilty today to a charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Singit pled guilty in the U.S. District Court for the District of Columbia. He is to be sentenced Feb. 11, 2016 by the Honorable Senior Judge John D. Bates. Singit faces a statutory maximum of 30 years in prison and a potential fine of up to $250,000. He also will be required to register as a sex offender for a minimum of 15 years upon his release from prison.
According to the government's evidence, on Aug. 26, 2015, Singit contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next several days, Singit engaged in e-mail, phone, and text message conversations with the undercover officer, whom the defendant believed had access to a purported under-age girl. During this period of time, Singit arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On Aug. 31, 2015, Singit traveled from Maryland to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts Assistant U.S. Attorney Cassidy Kesler Pinegar, who is prosecuting the case.
Two Men Sentenced to Prison Terms for Violent Home Invasion in Northeast WashingtonRead the Press Release
WASHINGTON – Rashad Hough, 25, was sentenced today to 17 years and 11 months in prison and Larnell Wilkerson, 21, was sentenced to a 14 ½-year prison term for committing a violent home invasion earlier this year in Northeast Washington in which one victim was shot, U.S. Attorney Channing D. Phillips announced.
Hough and Wilkerson, both of Washington, D.C., each pled guilty in September 2015, in the Superior Court of the District of Columbia, to armed robbery, first-degree burglary while armed, armed kidnapping, and unlawful possession of a firearm. Hough also pled guilty to aggravated assault while armed. The Honorable Patricia A. Broderick sentenced both defendants today. After their prison terms, each man will be placed on five years of supervised release.
According to the government’s evidence, on March 6, 2015, at about 10:40 p.m., Hough and Wilkerson robbed two men at gunpoint outside of an apartment building in the 1300 block of Holbrook Street NE. They then forced the two victims inside an apartment, intending to steal additional property. Two grandparents and their 12- and 14-year-old grandchildren were inside the apartment. Hough and Wilkerson demanded property from the six victims while holding them at gunpoint. Despite pleas not to hurt anyone, Hough shot one victim in the leg, causing him extreme pain and permanent disfigurement.
In announcing the sentences, U.S. Attorney Phillips praised the work of those who investigated the case from the Fifth District of the Metropolitan Police Department (MPD). He also expressed appreciation to Assistant U.S. Attorneys Kondi Kleinman, who investigated and indicted the case, and Adrienne Gurley, who also investigated the matter.
Maryland Man Sentenced to 10 Years in Prison for Traffic Fatality on Suitland ParkwayRead the Press Release
WASHINGTON – Robert Paris, 52, of Temple Hills, Md., was sentenced today to a 10-year prison term on charges of voluntary manslaughter and driving under the influence of alcohol and PCP, stemming from a crash that killed a woman who was standing beside a disabled van along the roadway of Suitland Parkway, U.S. Attorney Channing D. Phillips announced.
Paris pled guilty in September 2015, in the Superior Court of the District of Columbia, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction; Paris entered an Alford plea because of his intoxication by alcohol and PCP at the time of the crash, and his inability to recollect events. He has been in custody since his arrest. The Honorable Jennifer Anderson sentenced him today. Following his prison term, Paris will be placed on five years of supervised release.
According to the government’s evidence, at about 10:15 p.m. on Tuesday, July 14, 2015, Paris was seen by an off-duty officer from the Metropolitan Police Department (MPD) driving a Ford Ranger truck from a ramp onto eastbound Suitland Parkway in Southeast Washington. The officer observed the Ford Ranger merge at a high rate of speed, far in excess of the 45 mph speed limit, and swerve over to the left lane.
While attempting to catch up to Paris’s truck, the officer saw the truck sideswipe a disabled van that was straddling the right lane and shoulder of Suitland Parkway. The victim, Tomika Early, 32, had been standing next to the driver’s side of the van, and was struck by Paris’s truck and thrown approximately 160 feet forward and to the right. Ms. Early was immediately killed by the extensive impact injuries.
After sideswiping the van and killing Ms. Early, Paris continued to speed eastbound on Suitland Parkway, and struck second vehicle and then a street light pole before coming to a stop.
The officer immediately stopped and approached Paris’s wrecked truck, and saw Paris in the driver’s seat. The officer attempted to talk to Paris, and it was apparent to the officer that Paris was under the influence of alcohol and/or drugs. The officer also saw an opened beer can on the floorboard of the truck, and a number of additional crushed empty beer cans in the bed of the truck. Paris was taken to Prince George’s Hospital Center to be treated for minor injuries. There, his blood was drawn. His blood was later analyzed and it was determined that Paris’s blood alcohol concentration was 0.131 g/100mL. A driver whose blood alcohol concentration is 0.08 g/100mL or greater is considered under District of Columbia law to be per se driving under the influence of alcohol. Paris’s blood was also found to contain a concentration of 25 ng/mL of PCP, which indicates that he was actively under the influence of PCP when the crash occurred.
In announcing the sentence, U.S. Attorney Phillips praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit, the Driver Impairment Unit and the Seventh District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Marcia Rinker. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
Florida Man Pleads Guilty to Felony Charge for Flying Gyrocopter to U.S. Capitol GroundsRead the Press Release
WASHINGTON – Douglas Hughes, 62, of Ruskin, Fla., pled guilty today to a federal charge stemming from the April 15, 2015 incident in which he flew a gyrocopter into Washington, D.C., and landed on the Front Lawn of the Capitol, announced U.S. Attorney Channing D. Phillips, Kim C. Dine, Chief of the United States Capitol Police, and David C. Williams, Inspector General for the United States Postal Service.
Hughes pled guilty in the U.S. District Court for the District of Columbia to a charge of operating as an airman without an airman’s certificate. The charge is a felony that carries a statutory maximum of three years in prison and a fine of up to $250,000. The Honorable Colleen Kollar-Kotelly scheduled sentencing for April 13, 2016. As part of the plea agreement, Hughes has agreed to the forfeiture of his gyrocopter, which was seized on the day of the incident.
“Douglas Hughes put himself and countless others in danger when he flew his gyrocopter without a license into our country’s national defense airspace, and through the three no-fly zones protecting the nation’s capital,” said U.S. Attorney Phillips. “Douglas Hughes’s flight also caused a lockdown of the U.S. Capitol Building, and traffic delays in downtown Washington, D.C. With the defendant pleading guilty to the lead charge of his indictment, a felony, this prosecution will hopefully deter others from violating the highly restricted airspace surrounding Washington, D.C.”
According to the government’s evidence, on April 15, 2015, Hughes drove to the Gettysburg Regional Airport in Pennsylvania and unpacked his gyrocopter for a flight to Washington, D.C. Hughes had never had an airman’s certificate (pilot’s license) and he did not license his aircraft with the Federal Aviation Administration. Hughes also did not file a flight plan with the FAA or any other governmental agency, and he did not seek to obtain any official authorization before or during his flight. Hughes had modified his aircraft and placed a U.S. Postal Service insignia on it. Although Hughes worked for the U.S. Postal Service, and was wearing an agency jacket, he was not acting in any official capacity at the time.
Hughes placed two bins into the gyrocopter, carrying letters addressed to members of the U.S. Congress. He then flew the gyrocopter into Washington, D.C. from Gettysburg, Pa., passing through three no-fly zones. This federally restricted airspace includes, among other places, the National Mall, the White House, and the U.S. Capitol area.
Hughes flew over the National Mall and landed his gyrocopter in the early afternoon on the Front Lawn of the U.S. Capitol. He was quickly arrested, and the gyrocopter was seized as evidence. No weapons were found on Hughes or his aircraft.
A federal grand jury indicted Hughes on May 20, 2015, on a total of six charges. In return for pleading guilty to the lead count of the indictment, the U.S. Attorney’s Office has agreed to dismiss the remaining charges.
In announcing the plea, U.S. Attorney Phillips, Chief Dine, and Inspector General Williams commended the work of those who investigated the case from the U.S. Capitol Police and the Office of the Inspector General for the U.S. Postal Service. They also expressed appreciation for the assistance provided by the United States Park Police and the Federal Aviation Administration. Finally, they praised the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Devron Elliott and Michelle Holland; Legal Assistants Bianca Evans and Donice Adams, and Assistant U.S. Attorneys Tejpal S. Chawla and Michael J. Friedman, who investigated and prosecuted the case.
District Man Pleads Guilty to Assault with Intent to Kill for Stabbing His Ex-GirlfriendRead the Press Release
WASHINGTON – Donta Winslow, 32, of Washington, D.C., pled guilty today to one count of assault with intent to kill while armed for stabbing his ex-girlfriend while they were in her car in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Winslow pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a prison sentence to be set within the range of 13 to 16 years. The Honorable Michael Ryan scheduled sentencing for Feb. 26, 2016.
According to the government’s evidence, Winslow was previously in a romantic relationship with the victim. She had ended the romantic relationship, however. In the late morning of Aug. 14, 2015, Winslow approached and then got into the victim’s car. At one point, near the intersection of 46th and Meade Streets NE, Winslow forced the victim to pull the car onto a curb. The victim was in the driver’s seat, and Winslow was in the passenger seat.
Winslow took out a knife and stabbed the victim multiple times in the body, including in the back of her neck, back, and chest. The victim was curled down, facing forward in the seat, when Winslow stabbed her. A witness approached the car and confronted Winslow, causing him to get out of the car and run away.
When officers with the Metropolitan Police Department (MPD) responded to the scene, they found the victim motionless on her side. She was transported to the hospital via ambulance. She had approximately 11 stab wounds to her body, and two collapsed lungs. She was admitted to the hospital for almost two months. She has severe spinal cord damage from the stabbing that initially left her paralyzed. Through extensive physical therapy, she has regained some of her motor skills, but remains significantly impaired and unable to walk on her own.
Winslow fled the scene and was apprehended in Washington, D.C., shortly after the incident. He has been in custody ever since.
In announcing the plea, U.S. Attorney Phillips commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department and the U.S. Marshals Service. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Erica Vample and Joyce Arthur, and Victim/Witness Advocate Meshall Thomas. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
U.S. Joins Lawsuit Alleging that Inchcape Shipping Services Overcharged the United States Navy for Ship Husbanding ServicesRead the Press Release
WASHINGTON – The government announced today that it has joined a lawsuit alleging that Inchcape Shipping Services Holdings Limited and certain of its subsidiaries (collectively, Inchcape) violated the False Claims Act by knowingly overbilling the U.S. Navy for ship husbanding services from years 2005 to 2014. Inchcape is a marine services contractor headquartered in the United Kingdom.
As a ship husbanding services provider, Inchcape arranged for the provision of goods and services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico. Inchcape’s services typically included the provision of food and other subsistence items, arrangement of local transportation, waste removal, telephone services, ship-to-shore transportation and force protection services. The lawsuit, which was unsealed today, alleges that Inchcape knowingly overbilled the Navy by submitting invoices that overstated the quantity of goods and services provided, billed at rates in excess of applicable contract rates and double-billed for certain goods and services.
“Those who contract with the federal government and accept taxpayer dollars must follow the rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will not tolerate contractors who submit false claims to defraud the armed forces or any other agency of the United States.”
“Ensuring that federal contractors deliver the goods and services at the agreed upon prices in return for receiving the taxpayers’ money is a priority for the U.S. Attorney’s Office,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “This lawsuit reflects our commitment to combat fraud against federal government agencies.”
“The Department of the Navy continues to hold contractors accountable for the agreements they have made to supply our fleet,” said Captain Amy Derrick, a senior spokeswoman for the Department of the Navy. “We also continue to expect strict adherence to higher standards within the Department and expect the same from industry.”
The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act by three former employees of Inchcape, Noah Rudolph, Andrea Ford and Lawrence Cosgriff. Under the act, a private citizen may bring suit on behalf of the United States and share in any recovery. The government may intervene in the case, as it has done here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it.
The case is being handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the District of Columbia, with assistance from the Department of the Navy and the Naval Criminal Investigative Service.
The case is captioned United States ex rel. Rudolph v. Inchcape Shipping Services Holdings Limited, et al., No. 1:10-cv-01109 (D.D.C). The claims alleged in the case are allegations only, and there has been no determination of liability.
District Man Sentenced to Six Years in Prison for Burglary and Assault in Southeast WashingtonRead the Press Release
WASHINGTON – Kenneth Gaines, 51, of Washington, D.C., has been sentenced to a six-year prison term for a violent burglary of a home in Southeast Washington, U.S. Attorney Channing D. Phillips announced today.
Gaines pled guilty in July 2015, in the Superior Court of the District of Columbia, to one count of first-degree burglary, one count of assault with a dangerous weapon, and one count of unlawful possession of a firearm. He was sentenced on Nov. 16, 2015, by the Honorable Juliet McKenna. After his prison term, Gaines will be placed on three years of supervised release.
According to the government’s evidence, on April 4, 2015, at about 11:15 p.m., Gaines entered the apartment of one of the victims, in the 3900 block of Fourth Street SE. While inside, Gaines took out a .40 caliber Glock semi-automatic handgun and a .40 caliber Beretta semi-automatic handgun, and ordered the victim and his two houseguests to give him all their money and car keys. One of the victims was able to wrestle the handguns from Gaines and sustained an injury to the head during the struggle. The victims were able to subdue Gaines shortly before police arrived on scene.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department’s Seventh District. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Daphne Nelson and Assistant U.S. Attorneys Sarah C. Santiago and Kondi Kleinman, of the Felony Major Crimes Trial Section, who prosecuted the matter.
Pennsylvania Man Sentenced to 37 Months in Prison for Traveling to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Daniel Savage, 33, of Chester Springs, Pa., was sentenced today to 37 months in prison on a federal charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Savage pled guilty in September 2015, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, Savage will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 25 years.
According to the government's evidence, on April 14, 2015, Savage contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next several days, Savage engaged in e-mail, phone, and text message conversations with the undercover officer, whom the defendant believed had access to a purported under-age boy. During this period of time, Savage arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On April 18, 2015, Savage traveled from his residence in Pennsylvania to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Joyce Arthur and Tiffany Jones, Victim/Witness Advocate Yvonne Bryant, and Assistant U.S. Attorneys Andrea L. Hertzfeld and Lindsay Suttenberg, who prosecuted the case.
Owners of Home Health Care Agency Found Guilty of Taking Part in $80 Million Medicaid FraudRead the Press Release
WASHINGTON –Florence Bikundi, and her husband, Michael Bikundi, the owners of Global Healthcare, Inc., a home care agency, have been found guilty by a jury of health care fraud, money laundering, and other charges stemming from a scheme in which they and others defrauded the District of Columbia Medicaid program of over $80 million.
The verdicts were announced by Channing D. Phillips, U.S. Attorney for the District of Columbia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; James M. Murray, Special Agent in Charge, Washington Field Office, U.S. Secret Service; and Daniel W. Lucas, Inspector General for the District of Columbia.
The verdicts were returned on Nov. 12, 2015, and followed more than four weeks of trial in the U.S. District Court for the District of Columbia. The Honorable Beryl A. Howell scheduled sentencing for Feb. 26, 2016. The charges carry statutory maximums of decades in prison. In addition to prison terms, Florence and Michael Bikundi are subject to a forfeiture money judgment equal to the total proceeds they acquired as a result of this scheme. Judge Howell also will determine if the Bikundis must forfeit $11 million seized from various bank accounts, their home in Mitchellville, Md., and five luxury vehicles.
“Over a period of more than four years, Florence and Michael Bikundi raided the Medicaid program of $80 million through massive and systematic fraud,” said U.S. Attorney Phillips. “The money they stole for their own benefit could and should have been used to help others who were truly in need. Instead, they used the proceeds to finance a lavish lifestyle, including a million-dollar home, a $140,000 Land Rover, a $120,000 Porsche, and a $75,000 Mercedes Benz. This prosecution reflects our determination to protect taxpayer dollars and the citizens of the District of Columbia. Together with our law enforcement partners, we will actively combat health care fraud.”
“These defendants defrauded government health care programs designed to provide for those in need,” said Assistant Director in Charge Abbate of the FBI. “The relentless work of agents, analysts, and prosecutors exposed this conspiracy to steal government funds and brought to justice those responsible. The FBI and our law enforcement partners will continue to work aggressively to prevent and uncover fraud targeting the Medicaid program and maintain the integrity of our nation’s health care system.”
“It’s outrageous that these fraudsters would steal tens of millions of Medicaid dollars meant to provide health care services to poor and disabled individuals just to enrich themselves,” said Special Agent in Charge DiGiulio, of the HHS Office of Inspector General. “Our agency is dedicated to uprooting such fraud schemes and bringing criminals to justice.”
“The recent verdicts in this Medicaid fraud case demonstrate the effectiveness of law enforcement partnerships in the dismantling of criminal enterprises defrauding American health care systems which ultimately impact American citizens,” said Special Agent in Charge Murray of the U.S. Secret Service. “This investigation and the resulting arrests should alert criminals that law enforcement will not cease to pursue them.”
“My Office is fully committed to defending the public from people seeking to defraud the District government,” said Inspector General Lucas of the District of Columbia. “This verdict demonstrates that the OIG plays a lead role, in concert with our District, state, and federal partners, in aggressively investigating and prosecuting health care providers who unlawfully enrich themselves at D.C. taxpayers’ expense. I would like to thank all of the staff from my Medicaid Fraud Control Unit for having tirelessly pursued this case since 2009. Without their tenacity through this long investigation and trial, the District would not be able to recoup the money fraudulently paid to Global and its principals.”
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Florence Bikundi, 52, also known as Florence Ngwe and Florence Igwacho, has been in custody since her arrest in February 2014. She was found guilty by the jury of 12 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, two counts of health care fraud; one count of Medicaid fraud; and seven counts of money laundering. Michael D. Bikundi, Sr., 63, was found guilty of 10 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, one count of health care fraud; and seven counts of money laundering.
According to evidence presented at trial, Florence Bikundi, a former nurse, and her husband owned Global Healthcare, Inc. According to the government’s evidence, Florence Bikundi was not entitled to take part in the Medicaid program and fraudulently got approval as a provider. Then, the government’s evidence showed, she and her husband led a scheme to bill Medicaid for services that never were provided – recruiting others, including family members, into the scam, and creating fraudulent paperwork to hide the illegal activity.
The D.C. Medicaid program is funded jointly by District of Columbia tax dollars and federal tax dollars. Medicaid provides for home care services to be performed by personal care aides, working for eligible home care agencies. Doctors or advanced practice registered nurses must examine beneficiaries and authorize them to receive these services. The aides are to follow a plan of care and assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth.
In 1999, Florence Bikundi went by her maiden name of Florence Igwacho. In August 1999, the Virginia Board of Nursing revoked the nursing license of Florence Igwacho. In March 2000, the U.S. Department of Health and Human Services, Office of Inspector General notified Florence Igwacho in writing that she was excluded from participation in Medicare, Medicaid, and all federal health care programs due to the revocation.
Florence Bikundi subsequently concealed her past – namely, the Medicaid exclusion and the revocation of her nursing license - when she applied for a Medicaid provider number for Global Healthcare in June 2009 using the name of Florence Bikundi. She also used three forged signatures on her Medicaid provider application. Florence Bikundi married Michael Bikundi in September 2009.
From August 2009 through February 2014, Florence and Michael Bikundi used Global HealthCare to carry out a massive fraud, the government’s evidence showed. Year after year, the D.C. Medicaid program was billed for personal home health aide services that were not provided to Medicaid beneficiaries. Phony time sheets, patient files and employment files were created. Global Healthcare generated increasing amounts of payments as the years continued, going from roughly $1.35 million in 2009 to $14.27 million in 2011 to $27.16 million in 2013.
According to the government’s evidence, the Bikundis used the proceeds to finance a lavish lifestyle. In just over three years, they spent $1.3 million to purchase and renovate a newly built home. They also used the proceeds for a $140,000 Land Rover, a $120,000 Porsche, a $75,000 Mercedes Benz, a $70,000 Cadillac and a $36,000 BMW.
Seven others earlier pled guilty to charges in the investigation, including Florence Bikundi’s son, and Florence Bikundi’s two sisters.
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Bikundi was among 25 people charged in February 2014 following a wide-ranging investigation that uncovered numerous, separate schemes involving fraud, kickbacks, and false billings in the growing field of home care services for D.C. Medicaid beneficiaries. So far, 23 defendants have either pled guilty or been found guilty of charges. Those pleading guilty include people who worked as personal care aides in the home care industry, patient recruiters who demanded money for access to Medicaid beneficiaries, and others.
The various investigations were conducted by the FBI’s Washington Field Office; the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; the Social Security Administration, Office of Inspector General, and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office. Assistance was provided by the District of Columbia’s Department of Health Care Finance and other agencies.
This case was prosecuted by Assistant U.S. Attorneys Lionel A. André, Anthony Saler, and Michelle Bradford, of the Office’s Fraud and Public Corruption Section. Assistant U.S. Attorney Christopher B. Brown, of the Asset Forfeiture and Money Laundering Section, is assisting during the forfeiture proceedings. Criminal Investigator Nicole Hinson, also of the U.S. Attorney’s Office, was the prosecution’s law enforcement representative during the trial.
Assistance in this case and the other investigations was provided by Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorneys Zia Faruqui, Ted Radway, Michael Friedman, Chrisellen Kolb, and Michelle Zamarin; Financial Analyst Bryan J. Snitselaar; Deputy U.S. Marshal Wayne Rollock of the U.S. Marshals Service; Paralegal Specialists Toni Donato, Donna Galindo, Krishawn Graham, Tasha Harris, Corinne Kleinman, and Kristy Penny; Legal Assistants Angela Lawrence, Jessica McCormick, and Christopher Samson; Litigation Support Specialist Ron Royal, and former Forensic Accountant Maria Boodoo.
Maryland Man Sentenced to 45 Years in Prison for 2012 Killing of Taxicab Driver in Northeast WashingtonRead the Press Release
WASHINGTON – Joshua Mebane, 20, of Waldorf, Md., was sentenced today to 45 years in prison for the November 2012 killing of a taxicab driver in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Mebane was found guilty by a jury in September 2015, following a trial in the Superior Court of the District of Columbia, of first-degree murder while armed and nine other charges, including conspiracy, assault with intent to commit robbery while armed, and firearms offenses. He was sentenced by the Honorable Jennifer Anderson.
A co-defendant, Linda Bury, also 20, earlier pled guilty to charges of second-degree murder while armed and conspiracy to commit armed robbery. She is awaiting sentencing.
According to the government’s evidence, Mebane and Bury, both 17 years old at the time, met online in October of 2012. Dissatisfied with their respective home environments, they made a plan to run away together. On Nov. 1, 2012, Mebane took a taxi from his family home in Waldorf, Md., to Bury’s family home in Parkton, Md. They then took a cab into the District of Columbia, and they stayed at a motel in Northeast Washington from Nov. 2 to Nov. 7, 2012.
In light of a dwindling money supply, Mebane and Bury devised a plan to commit a robbery of a taxicab driver on the evening of Nov. 7, 2012. A few minutes before 9 p.m., they randomly hailed a taxicab and instructed the driver, Muhammad Quadeer, to drive them to the rear of Hamilton Junior High School in the 1400 block of Brentwood Parkway NE. Once in the rear of the building, Mebane put on a black latex glove, pulled a 9mm pistol from a nylon bag, and fatally shot Mr. Quadeer, 44, once to the back of his head.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences; Bode Technologies; the Charles County, Md. Sheriff’s Department; the Baltimore County, Md. Police Department, and the Gallaudet University Department of Public Safety. In addition, he acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Sharon Donovan; Litigation Technology Specialist Leif Hickling; Paralegal Specialists Kwasi Fields and Benjamin Kagan-Guthrie; Investigative Analyst Zachary McMenamin; Victim/Witness Advocate Marcia Rinker, and Victim/Witness Security Specialist David Foster. Finally, he commended the work of Assistant U.S. Attorney George A. Pace, who investigated and prosecuted the case.