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11 October 2017
Pennsylvania Resident Sentenced for Making False StatementsRead the Press Release
CONCORD, N.H. – Ana Delarosa, 57, of Harrisburg, Pennsylvania was sentenced to serve three years of probation, including six months of home confinement, for submitting forged affidavits to the National Visa Center, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, a limited number of family visas are issued by the U.S. Department of State to citizens of foreign countries. To obtain a family visa, a citizen or legal permanent resident of the United States (a “sponsor”) is required to submit an application for a family visa to the United States Citizenship and Immigration Service (“USCIS”). Citizens of foreign countries are not eligible for a family visa if they are likely to become public charges after they enter the United States. Therefore, under federal law, a sponsor is also required demonstrate his or her ability to provide financial support to the applicant by submitting a financial affidavit, copies of recent federal tax returns, and other personal financial records to the USCIS. All applications for family visas are processed at the National Visa Center (“NVC”) in Portsmouth, New Hampshire.
On June 26, 2017, Delarosa pled guilty to making false statements to a federal agency. In particular, she admitted that from August 2010 to April 2013, she knowingly caused ten financial affidavits containing forged signatures of alleged sponsors to be submitted to the NVC in support of applications for family visas for citizens of the Dominican Republic.
Delarosa was sentenced to three years of probation. As a special condition of her probation, she must serve six months in home confinement. She also was ordered to pay a $1,000 fine.
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The case was investigated by the U.S. Department of State’s Diplomatic Security Service and prosecuted by Assistant United States Attorney Robert Kinsella.
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Pakistani Woman Admits to Marriage Fraud SchemeRead the Press Release
DALLAS — Amna Cheema, 37, a Pakistani national, appeared before U.S. Magistrate Judge Renee Harris Toliver yesterday and pleaded guilty to one count of conspiracy to commit marriage fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Cheema will remain in custody pending sentencing which is set for January 22, 2018 Co-defendant Bilal Khaleeq, 47, is scheduled to begin trial on December 11, 2017 for his role in the conspiracy. If convicted, Khaleeq faces a maximum statutory penalty of five years in federal prison and a $250,000 fine.
According to plea documents filed in the case, in May 2015, Cheema engaged in discussions with Khaleeq and another individual at Khaleeq’s law office to discuss planning Cheema’s marriage to Person A in order for Cheema to obtain legal status in the United States. In exchange for agreeing to marry Cheema, Person A was paid $745 and promised more money after the immigration process was completed. On June 15, 2015, Cheema married Person A to establish eligibility for legal status in the United States.
Cheema, Person A and Khaleeq discussed the filing of the alien relative petition forms (I-130), the permanent residence applications (I-485), and additional evidence needed to ensure approval of those forms, including filing joint tax returns and placing articles of male clothing at Cheema’s house as further evidence of a valid marriage.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Special Assistant U.S. Attorney Lynn Javier is in charge of the prosecution.
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Omaha Man Sentenced for Drug Trafficking and Money LaunderingRead the Press Release
On October 10, 2017, Adalberto Martinez-Ramirez was sentenced by United States District Judge Robert F. Rossiter, Jr. Martinez-Ramirez previously had pled guilty to two counts of a Superseding Indictment: Count I, conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine; and Count X, conspiracy to commit money laundering. Martinez-Ramirez was sentenced to 324 months imprisonment on Count I and 240 months imprisonment on Count X. The sentences are to run concurrently.
This case was investigated by the Drug Enforcement Administration and the Nebraska State Patrol.
North Dakota Man Charged with Violations of the Lacey Act and Bald and Golden Eagle Protection ActRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mandan, North Dakota, man has been indicted by a federal grand jury for violations of the Lacey Act and Bald and Golden Eagle Protection Act.
Sheldon Tree Top, age 43, was indicted on August 22, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 2 years in custody and/or a $250,000 fine, 1 year of supervised release, and up to $150 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 7, 2014, and August 14, 2014, Tree Top knowingly transported, sold, received, acquired, and purchased bald eagle, golden eagle, and various species of hawks, when Tree Top should have known the protected birds were taken, possessed, transported, and sold in violation of, and in a manner unlawful under the laws and regulations of the United States.
The charges are merely accusations and Tree Top is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Tree Top was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
North Carolina Pharmacist Sentenced to Prison for Medicare and Medicaid FraudRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday in federal court, JUSTIN LAWRENCE DANIEL, 35, of Fayetteville, North Carolina, was sentenced to 12 months and a day in federal prison and 3 years of supervised release following his prior guilty plea to Health Care Fraud Conspiracy. DANIEL was also ordered to make restitution of $1,961,176.56 to the Medicare program and $479,923.50 to the North Carolina Medicaid program.
United States Attorney Robert J. Higdon, Jr. stated, “This was a case of a corrupt pharmacist who mixed and sold non-covered pain cremes to the public, but who billed federal taxpayers millions for expensive pain pills through the Medicare and Medicaid programs. I am happy to report not only that this pharmacist will be reporting to federal prison as punishment, but more importantly, that he has surrendered his pharmacy license and has already paid back $2 Million of the money he stole. Mr. Daniels will never again be in a position to defraud patients, or taxpayers, using his pharmacy license. I wish to congratulate our state and federal law enforcement partners on the outcome of this important conviction and sentencing.”
North Carolina Attorney General Josh Stein said, “Cheating Medicaid wastes tax dollars, and it’s unacceptable. My office will continue our work to protect taxpayers and hold the healthcare providers who commit fraud accountable.”
The Criminal Information to which DANIEL pleaded guilty, as well as information provided at the sentencing hearing, provided that between 2011 and 2015, DANIEL owned and operated Old Main Pharmacy, Inc. (“Old Main”) located in Pembroke and Rowland, North Carolina. During that time period, DANIEL directed his staff to fraudulently bill the Medicare program and the North Carolina Medicaid Program for Ketoprofen extended release capsules that his pharmacy did not use when creating a compounded pain-relief cream sold by Old Main.
In addition to being sentenced to federal prison and serving a term of supervised release, DANIEL surrendered his North Carolina pharmacist’s license. Prior to sentencing, DANIEL paid $2,000,000 to the court in anticipation of the sizable restitution judgment.
The investigation of this case was conducted by agents of the Medicaid Investigations Division of the North Carolina Attorney General’s Office; the United States Department of Health and Human Services Office of the Inspector General; with the assistance of the North Carolina Board of Pharmacy. The investigation and prosecution of this matter was handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Special Assistant United States Attorney John Parris of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and Assistant United States Attorney William M. Gilmore of the Economic Crimes Division of the U.S. Attorney’s Office, each represented the United States.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS- TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
New York Man Sentenced to over Six Years’ Imprisonment for Role in Attempted Sex Trafficking of A MinorRead the Press Release
Pennsylvania announced that Adrian Smith, age 22, of New York City, was sentenced to 78 months’ imprisonment today by Senior U.S. District Court Judge Richard P. Conaboy, for his role in the attempted sex trafficking of a minor.
According to United States Attorney Bruce D. Brandler, Smith previously pleaded guilty to assisting others in maintaining and providing security for two minor females who were attempting to engage in commercial sex activities during August 2016, at a hotel in Scranton.
Smith was charged in a criminal information filed in October 2016.
Judge Conaboy also ordered Smith to serve five years on supervised release following his prison sentence. Smith must also register as a sex offender and comply with sex offender notification and registration requirements.
The case was investigated by the Federal Bureau of Investigation and Scranton Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Navajo Woman from Albuquerque Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Kelly James, 35, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., was sentenced today in federal court to three years of probation for her conviction on a misdemeanor child abuse charge. In addition to the mandatory conditions of her probation, James will be required to complete substance abuse counseling, childcare classes and refrain from the use of alcohol.
James was arrested in May 2017, on an indictment charging her with engaging in child abuse by operating a motor vehicle recklessly on Dec. 8, 2016, on the Isleta Pueblo in Valencia County, N.M.
On June 13, 2017, James entered a guilty plea to the indictment. In entering the guilty plea, James admitted that on Dec. 8, 2016, she operated a motor vehicle recklessly within the Isleta Pueblo while under the influence of alcohol. James further admitted that her actions endangered the health and wellbeing of the child who was a passenger in the vehicle.
This case was investigated by the Isleta Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Elisa C. Dimas.
Navajo Man from Shiprock Sentenced to Six Years for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Zachariah Nez, 22, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to six years in prison for his conviction on a voluntary manslaughter charge. Nez will be on supervised release for three years after completing his prison sentence.
Nez was arrested in Oct. 2016, on a criminal complaint charging him with killing a Navajo man on the Navajo Indian Reservation in San Juan County, N.M., on Oct. 17, 2016. According to the complaint, Nez killed the victim by striking him with a rock.
Nez was indicted on Nov. 1, 2016, and charged with second-degree murder on Oct. 17, 2016, in San Juan County.
On June 15, 2017, Nez pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Nez admitted that on Oct. 17, 2016, he killed the victim by striking him several times with a rock.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Joseph M. Spindle.
Monongalia County man admits to drug distribution chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Morgantown, West Virginia man has admitted to a drug distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Codey Bonnette, age 25, pled guilty to one count of “Distribution of Oxycodone.” Bonnette admitted to selling oxycodone in Monongalia County in September 2015.
Bonnette faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mobridge Man and Woman Charged with Violations of the Migratory Bird Treaty ActRead the Press Release
United States Attorney Randolph J. Seiler announced that two Mobridge, South Dakota, residents, a man and a woman, have been indicted by a federal grand jury for a violation of the Migratory Bird Treaty Act.
Jeffrey Jensen, age 53, and Amanda Silbernagel, age 30, both d/b/a Jerry’s Pawn Shop, were indicted on September 12, 2017. They appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for this felony offense is up to two years in custody and/or a $250,000 fine, one year of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 19, 2014, and August 21, 2014, Jensen and Silbernagel, d/b/a Jerry’s Pawn Shop, knowingly offered for sale, sold, offer to barter, bartered, delivered for transportation, transported, and caused to be transported, a migratory bird and parts thereof of any such bird.
The charge is merely an accusation and Jensen and Silbernagel are presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Jensen and Silbernagel were released on bond pending trial. A trial date has not been set.
Mobile County Man Receives Mandatory Minimum Sentence for Gun Use in Furtherance of Drug CrimeRead the Press Release
The United States Attorney, Richard W. Moore, announces that Michael Fleming, Jr., a 40 year old, resident of Prichard, Alabama was sentenced today to 61 months incarceration followed by three years of supervised release.
A search warrant was executed at Fleming’s residence and seized from his bedroom was a loaded Jennings Arms .25 caliber semi-automatic handgun with two magazines and a loaded Remington 12 gauge semi-automatic shotgun. A search of the shed on his property uncovered a loaded Intratec 9mm with one additional loaded magazine, a loaded Maverick 12 gauge pump shot gun, a loaded Charter Arms .38 special revolver, a loaded .22 Magnum caliber revolver, three digital scales, a bottle of Inositol Powder (used as a cutting agent for the cocaine). Law enforcement officers also seized approximately 195.71 grams of powder cocaine, 27.09 grams of crack cocaine, and 923.67 grams of marijuana.
On June 23, 2017, Fleming pled guilty to possession of the firearms in furtherance of a drug trafficking crime and possession of marijuana with the intent to distribute.
Deputies with the Mobile County Sheriff’s office along with special agents of the Immigration and Customs Enforcement (ICE) arm of the Department of Homeland Security investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.
Mission Man Sentenced to Prison for CocaineRead the Press Release
McALLEN, Texas – A 25-year-old Mission man has received a 10-year prison sentence for transporting cocaine, announced Acting U.S. Attorney Abe Martinez. Mario Alberto Garrido pleaded guilty to possessing with the intent to distribute 23 kilograms of cocaine on Nov. 8, 2016.
Today, U.S. District Judge Ricardo H. Hinojosa sentenced Garrido to 120 months in prison to be immediately followed by five years of supervised release.
On June 2, 2016, authorities stopped Garrido for a traffic violation in Mission. A canine alerted to the presence of narcotics in the vehicle, at which time law enforcement discovered approximately 23 kilograms of cocaine in a hidden compartment in the trunk of the car he was driving.
Garrido admitted he had been involved in transporting and distributing cocaine since he was 12 years old.
Garrido has been and will remain in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Hidalgo County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Mission Man Sentenced to Prison for CocaineRead the Press Release
McALLEN, Texas – A 25-year-old Mission man has received a 10-year prison sentence for transporting cocaine, announced Acting U.S. Attorney Abe Martinez. Mario Alberto Garrido pleaded guilty to possessing with the intent to distribute 23 kilograms of cocaine on Nov. 8, 2016.
Today, U.S. District Judge Ricardo H. Hinojosa sentenced Garrido to 120 months in prison to be immediately followed by five years of supervised release.
On June 2, 2016, authorities stopped Garrido for a traffic violation in Mission. A canine alerted to the presence of narcotics in the vehicle, at which time law enforcement discovered approximately 23 kilograms of cocaine in a hidden compartment in the trunk of the car he was driving.
Garrido admitted he had been involved in transporting and distributing cocaine since he was 12 years old.
Garrido has been and will remain in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Hidalgo County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Mike Hurst Sworn in as U.S. Attorney for the Southern District of MississippiRead the Press Release
Jackson, Miss – On Tuesday, October 10, 2017, D. Michael Hurst, Jr. was sworn in as the United States Attorney for the Southern District of Mississippi by U.S. District Judge Daniel P. Jordan in Jackson, Mississippi. Hurst was nominated by President Donald J. Trump on June 29, 2017, and was unanimously confirmed by the Senate on October 3, 2017.
"I am honored and humbled by this opportunity to return to the U.S. Attorney’s Office to do the work of justice and serve the people of Mississippi. We have some of the hardest working, most caring people in this office, and I look forward to partnering with our state and local law enforcement to make sure people are protected, victims are served, and our communities are safer," said Hurst.
Hurst most recently served as the Director of the Mississippi Justice Institute ("MJI"), a division of the Mississippi Center for Public Policy. Before starting MJI, he was the Republican nominee for Mississippi Attorney General in 2015.
From 2006 until February 2015, Hurst served as an Assistant United States Attorney within the Criminal Division of the U.S. Attorney’s Office in Jackson, where he focused primarily on fighting public corruption. He received numerous awards from the Department of Justice, Homeland Security, and other federal law enforcement agencies.
Before going to work for the US Attorney’s Office, Hurst served on the staff of Congressman Chip Pickering in Washington, DC. Prior to that, he was Counsel to the U.S. House of Representatives Judiciary Committee, Constitution Subcommittee. He practiced law at Troutman Sanders in Washington, DC, after graduating from law school.
Hurst is originally from Hickory, Mississippi, and is a graduate of East Central Community College in Decatur, and Millsaps College in Jackson, as well as The George Washington University Law School in Washington, D.C. Hurst and his wife, Celeste, live in Sandhill, Mississippi, with their five children and Mike’s younger sister.
Mexican National Designated as Key Drug Trafficking Target Indicted on Federal Narcotics Charges Related to High Desert Meth LabRead the Press Release
RIVERSIDE, California – A Mexican national who was previously designated as an important target because of his links to international drug trafficking was indicted today by a federal grand jury on narcotics charges related to a meth lab in Hesperia where multiple pounds of methamphetamine were seized.
Adrian Ulises Garcia-Ruiz, 37, a native of Michoacán, Mexico, was named in a two-count indictment that alleges he supplied liquid methamphetamine that was turned into crystal meth at the San Bernardino County drug lab.
The indictment names a second defendant – Carlos Miguel Gallardo-Valdovinos, also a Mexican national – who allegedly converted the narcotics into crystalline form.
According to the indictment, Garcia-Ruiz coordinated shipments of liquid methamphetamine into the United States, where it was converted into crystalline form for distribution. Gallardo-Valdovinos allegedly purchased acetone which he used to convert the liquid methamphetamine into crystalline form at the Hesperia lab.
In May 2014, authorities executed a search warrant at the Hesperia drug lab, where they seized approximately six gallons of liquid methamphetamine, more than nine pounds of crystal methamphetamine and $60,000 in U.S. currency.
The indictment links Garcia-Ruiz to Gallardo-Valdovinos through a series of intercepted communications, some of which indicate that Gallardo-Valdovinos had received six gallons of methamphetamine prior to the seizure.
Garcia-Ruiz had been placed on the Consolidated Priority Organization Target (CPOT) List by the Organized Crime Drug Enforcement Task Force. The CPOT list targets those who participate in the “command and control” of the most prolific international drug trafficking and money laundering organizations.
Garcia-Ruiz was arrested at Dallas/Fort Worth International Airport on September 20, the day after prosecutors at the United States Attorney’s Office filed a criminal complaint against him. A federal Magistrate Judge in Dallas detained Garcia-Ruiz, and he currently is being transported to Southern California by the United States Marshals Service. Once Garcia-Ruiz arrives in Southern California, he will be arraigned on the indictment.
The indictment charges Garcia-Ruiz and Gallardo-Valdovinos with two counts: conspiracy to manufacture, possess with intent to distribute, and distribute methamphetamine; and possession with intent to distribute methamphetamine.
Each count carries a mandatory minimum penalty of 10 years in federal prison and a statutory maximum sentence of life.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Today’s indictment is the result of an ongoing investigation being conducted by the Drug Enforcement Administration.
This case is being prosecuted by Assistant United States Attorney Tritia L. Yuen and Special Assistant United States Attorney Paul Levers of the Riverside Branch Office.
Metro-Atlanta Chiropractors Charged with Healthcare Fraud SchemeRead the Press Release
ATLANTA – Dr. Allan Spagnardi and Dr. Stacy Spagnardi have been arraigned on conspiracy and fraud charges for using their chiropractic clinic to submit false claims to private insurance providers.
“These two chiropractors are alleged to have reported fake patient visits in order to enrich themselves through fraudulent insurance claims,” said U.S. Attorney Byung J. “BJay” Pak. “Fraudulent healthcare billing threatens the integrity of our healthcare system and is ultimately paid for by the taxpayers.”
“Healthcare providers need to think twice before trying to illegally maximize their profits at the expense of honest citizens,” said David J. LeValley, Special Agent in Charge of the Atlanta FBI. “Bringing this case to federal court is an example of our determination to protect those citizens and root out waste, fraud and abuse of our healthcare system.”
“Healthcare fraud has become a significant problem in the world today” said James Dorsey, Acting Special Agent in Charge for IRS Criminal Investigation. “The Spagnardis’ greed and want of a lavish lifestyle led them to commit healthcare fraud and we will continue to support investigative efforts to deter such actions.”
“I’m thankful for the action by the grand jury and for the work on this case by the U.S. Attorney’s office,” Georgia Insurance Commissioner Ralph Hudgens said. “Alleged actions by the Spagnardis hurt not only Georgia citizens, but citizens across the United States in the form of higher insurance premiums.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Dr. Allan Spagnardi and Dr. Stacy Spagnardi operated a chiropractic clinic located in Marietta, Georgia. Over a period of at least three years, the Spagnardis allegedly submitted numerous fraudulent claims to private insurance providers for procedures that never took place.
The indictment alleges that after the Spagnardis obtained their patients’ personal identifying information, they continued to bill private insurance providers for services that were never actually rendered. On some occasions in which the Spagnardis claimed their clinic was treating patients, those patients were not even in the United States when those treatments were supposedly taking place. In one instance, the Spagnardis allegedly claimed that their clinic had 296 patient visits during a week that they were actually on a Royal Caribbean cruise vacation.
The Spagnardis are alleged to have claimed millions of dollars from private insurance providers. The indictment alleges that Stacy Spagnardi spent much of the fraud proceeds at casinos. Stacy Spagnardi is also alleged to have frequently made cash withdrawals under $10,000, with the purpose of evading banking reporting requirements. For his part, Allan Spagnardi allegedly used a portion of the fraud proceeds to purchase a BMW motorcycle and a 2015 BMW M4.
Allan Spagnardi, 38, and Stacy Spagnardi, 50, both of Atlanta, Georgia, were arraigned today before United States Magistrate Judge Alan J. Baverman.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, the Georgia Office of Commissioner of Insurance, and the Atlanta Police Department.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Manhattan U.S. Attorney Announces Charges Against Massachusetts Businessman for Money Laundering, Financial Support for Manhattan BrothelRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Charles Brandeis, the Special Agent in Charge of the New York Field Office of the U.S. Department of State's Diplomatic Security Service (“DSS”), and Philip Bartlett, the Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced charges today against a Massachusetts businessman, DAVID STASIOR, for providing financing and financial advice to an illegal brothel operating in Manhattan, and conspiring with the brothel owner to use the proceeds from the brothel to promote the brothel’s activities. STASIOR was arrested by agents from DSS, the USPIS, and the U.S. Attorney’s Office for the Southern District of New York this morning and will be presented in federal court in Massachusetts later today.
This case arises from a multiple-year-long investigation in which 17 additional individuals have previously been charged with conspiracy to commit money laundering and conspiracy to violate the Travel Act. The previously charged individuals have included the owners of a network of at least 10 brothels in Manhattan, and individuals who provided advertising services for these brothels. These brothels were independently owned but worked cooperatively, and employed prostitutes who typically came to the United States from South Korea pursuant to fraudulently obtained visas or visa waivers. STASIOR allegedly provided financing for one of these brothels, whose owner was previously charged and pled guilty to money laundering conspiracy.
Acting U.S. Attorney Joon H. Kim stated: “For years, the defendant allegedly helped launder the proceeds of an illegal brothel operation in Manhattan, providing start-up money, ongoing financial advice, and record-keeping services. As alleged, the defendant financially supported and profited from this business that exploited vulnerable women and laundered money.”
Special Agent in Charge Charles Brandeis stated: “DSS continues to disrupt and dismantle transnational criminal organizations seeking to profit from the entry and illicit activities of vulnerable foreign nationals. This investigation demonstrates the global reach of the Diplomatic Security Service.”
Inspector in Charge Philip R. Bartlett stated: “This arrest represents the continued effort of law enforcement to put a stop to illegal activity wherever it is found. Many claim prostitution is the oldest profession in the world. The anonymity of the internet was used to hide the identity of its operators, keeping law enforcement in the dark. As in this case, what is done in the dark will always be revealed in the light.”
According to the Complaint[1]:
Since 2012, DSS, USPIS, and the U.S. Attorney’s Office for the Southern District of New York have been investigating a group of brothels (the “Brothels”) operating in and around New York. Each of the Brothels was independently owned and operated, but the owners of the Brothels worked cooperatively through, among other things, the sharing of approved customer lists and information. STASIOR started out as a customer of the Brothels. In 2013, he provided a co-conspirator (“CC-1”)[2] with financing to open a brothel (the “Brothel”), while requiring the co-conspirator to make periodic payments from the Brothel’s proceeds in return for his investment.
The Brothel used a website to advertise the women prostituted in the Brothel, as well as an online aggregator of advertisements to advertise the Brothel. The management of online advertising and payment for this advertising was coordinated by the defendant and CC-1, among others. STASIOR sent multiple emails to CC-1 in which he provided business advice to the Brothel, including advice on how to use online advertising for the Brothel to increase the Brothel’s profits. STASIOR’s emails included spreadsheets that listed him as a “Partner” in the business and itemized the Brothel’s prostitution revenues and the various expenses involved in running the Brothel, including the cost of advertising. In these emails, STASIOR also itemized the payments made to him out of the Brothel’s proceeds, and stated that he was concerned about the Brothel’s profitability to ensure that CC-1 would be able to “pay back” the “debt” that had been incurred by his investment in the Brothel.
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STASIOR, 53, of Concord, Massachusetts, is charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to violate the Travel Act, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html
Mr. Kim praised the outstanding efforts of DSS, USPIS, and the criminal investigators working in the United States Attorney’s Office for the Southern District of New York. He added that the investigation is ongoing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Danielle R. Sassoon and Thane Rehn are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] CC-1 has been separately charged in the Southern District of New York with money laundering conspiracy and Travel Act conspiracy, and has pleaded guilty to money laundering conspiracy.
Manhattan Tax Attorney Sentenced to Two Years in Prison for Participation in Multimillion-Dollar Tax Evasion Scheme and Lying to the IRSRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that HAROLD LEVINE, a Manhattan tax attorney, was sentenced today by U.S. District Judge Jed S. Rakoff to 24 months in prison for tax evasion and obstruction of the Internal Revenue Service (“IRS”), stemming from his scheme to siphon millions of dollars of tax shelter fee income from the law firm at which he worked and failing to report the diverted fees as income. LEVINE’s scheme also involved making false statements to IRS auditors, and urging a witness to provide false testimony to the same IRS auditors who were investigating LEVINE’s receipt of the fees.
Acting U.S. Attorney Joon H. Kim said: “Harold Levine stole first from his law firm partners and then from American taxpayers by filing tax returns that left out millions of dollars of income. As if tax evasion by a tax attorney were not bad enough, Levine tried to get out of it by lying to the IRS during an audit and urging a witness to give false testimony. Levine’s jail sentence should serve as a reminder that everyone – including tax lawyers – must be truthful in reporting their income, and deal honestly with, the tax authorities.”
According to the Indictment, LEVINE’s guilty plea, and statements made during the plea proceedings and other court proceedings:
Between 2004 and 2012, LEVINE, a tax attorney and former head of the tax department at a major Manhattan Law Firm (the “Law Firm”), schemed with co-defendant Ronald Katz, a certified public accountant, to obstruct and impede the due administration of the Internal Revenue laws by evading income taxes on millions of dollars of fee income generated from tax shelter and related transactions that LEVINE worked on while a partner of the Law Firm. Specifically, LEVINE failed to report approximately $3 million in income to the IRS on his personal tax returns during the period 2005-2011. Most of the fee income LEVINE failed to report was routed by him through a limited liability company LEVINE controlled, which was nominally owned by a family member.
As part of the scheme, for example, LEVINE caused tax shelter fees paid by a Law Firm client to be routed from the Law Firm’s escrow account to a partnership entity he co-owned with Katz and thereafter used those fees – totaling approximately $500,000 – to purchase a home in Levittown, on Long Island. LEVINE caused the home to be purchased as a residence for a Law Firm employee (the “Law Firm Employee”) with whom he then enjoyed a close personal relationship. Although LEVINE allowed the Law Firm Employee to reside in the Levittown house for over five years without paying rent, LEVINE and Katz prepared tax returns for the entity through which the home was purchased that claimed false deductions as a rental property.
In February 2013, LEVINE was questioned by IRS agents concerning his involvement in certain tax shelter transactions and the fees received by LEVINE from those transactions. During that questioning, LEVINE falsely told the IRS that the Law Firm Employee paid him $1,000 per month in rent while living in the Levittown home. In addition, when the Law Firm Employee was contacted by the IRS and summoned to appear for testimony, LEVINE urged the employee to falsely tell the IRS that she had paid $1,000 per month in rent to LEVINE.
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In imposing sentence today, Judge Rakoff said, “There was no one in the world who knew better that he was committing a crime than Harold Levine.”
In addition to the 24-month prison sentence, LEVINE, 59, of New York, New York, was sentenced to three years of supervised release, and ordered to pay restitution to the IRS in an amount to be determined at a hearing on November 13, 2017.
Co-defendant Ronald Katz, who also pled guilty in June 2017, is scheduled to be sentenced on November 13, 2017.
Mr. Kim thanked the IRS for its assistance in this investigation and praised the outstanding investigative work of both IRS-CI and IRS Civil – Large Business & International.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Stanley J. Okula and Assistant United States Attorney Daniel S. Noble are in charge of the prosecution.
Man Sentenced to 6 Years in Prison for Transportation and Possession of Child PornographyRead the Press Release
BINGHAMTON, NEW YORK - Nicholas Feminella, 21, formerly of Danby, New York, was sentenced today to serve 72 months in prison for transporting and possessing child pornography, announced Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent-in-Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Feminella admitted that he transported videos of child pornography by uploading them from his computer to a Drop Box account. On November 3, 2015, investigators searched Feminella’s residence in Danby, New York and recovered thousands of images and hundreds of videos depicting child pornography.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Feminella is released from prison, and ordered him to pay $20,000.00 in restitution to the victims, and a $200 special assessment. As a result of his conviction, Feminella will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI, the New York State Police-Computer Crime Unit and Investigators from the New York State Police, Troop C.
This case was prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Local Man Set to Appear in Court on Allegations of Trafficking a Minor for SexRead the Press Release
HOUSTON – A federal grand jury has indicted a 31-year-old Missouri City man for allegedly trafficking a 12-year old girl, announced Acting U.S. Attorney Abe Martinez.
Eddie Larue is expected to appear before U.S. Magistrate Judge Dena Hanovice Palermo at 10:00 a.m. today.
According to the indictment returned last week, Larue allegedly recruited a 12-year old girl to engage in commercial sex acts for money along the 1.3 mile stretch of Bissonnet St., commonly referred to as “The Track.” Larue also allegedly used force and threats of force to compel his victim into prostitution and took all of the money she received.
If convicted, Larue faces a mandatory minimum of 15 years and up to life in federal prison as well as a $250,000 fine.
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation. HTRA law enforcement includes members of the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Houston Police Department, sheriff’s offices in Harris and Montgomery counties, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Department of Labor, IRS and the Texas Department of Public Safety.
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sebastian Edwards and Sharad Khandelwal are prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Lexington County Man Sentenced to 66 Months in Federal Prison on Methamphetamine and Gun ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Ryan L. Childs, age 29, of West Columbia, was sentenced in Columbia to 66 months imprisonment followed by a five-year term of supervised release. On June 7, 2017, Childs entered a guilty plea in federal court to one count of Possession with intent to Distribute Methamphetamine and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. United States District Judge Mary Geiger Lewis imposed the sentence.
The evidence presented at the guilty plea hearing and sentencing hearing established that, on October 27, 2016, Lexington County Sheriff’s Department officers executed an outstanding General Sessions Bench Warrant for Mr. Childs at a residence in Lexington County. As officers approached the residence, they saw Childs reach into his waistband, remove an item and place it in the passenger side of a vehicle. Officers located a Glock Model 19, 9mm handgun containing 11 rounds of ammunition and a bag of methamphetamine under the front passenger seat.
The case was investigated by agents with the Lexington County Sheriff’s Department, South Carolina Law Enforcement Division, and the Bureau of Alchohol Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Nancy Wicker of the Columbia office prosecuted the case.
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Leader of “2Fly” Street Gang Sentenced to over 16 Years in Prison on Racketeering and Firearms ChargesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that LAQUAN PARRISH, a/k/a “MadDog,” a/k/a “Quanzaa,” a leader of a violent street gang in the Bronx called the “2Fly YGz” (“2Fly”), was sentenced today to 195 months in prison on racketeering and firearms charges. PARRISH was sentenced by United States District Judge Lewis A. Kaplan.
Acting U.S. Attorney Joon H. Kim said: “Laquan Parrish led the violent 2Fly street gang, and participated in the gang’s violence. In August 2012, Parrish and other 2Fly members opened gunfire at a group of rival gang members sitting in a playground. By good fortune, no one was killed, but a bullet struck one rival gang member in the chest and another in the leg, and a 14-year-old girl was wounded in the crossfire. Today’s sentence holds Parrish accountable for this senseless violence.”
According to the Indictment and other documents filed in the case, as well as statements made during the public proceedings in this case:
PARRISH was a leader of 2Fly, a subset of the “Young Gunnaz,” or “YGz” street gang, which operates throughout New York City. 2Fly is based in the Bronx, within and around the Eastchester Gardens public housing development (“ECG”) and in an area called the “Valley” or the “V,” which is in the vicinity of Gun Hill Road. ECG is a rectangular complex of residential buildings bordered by Burke, Adee, Yates, and Bouck Avenues, in the middle of which is a playground. The gang war between 2Fly and rival street gangs has led to an enormous amount of fatal and non-fatal violence between 2007 and 2016 in the Northern Bronx, including shootings, stabbings, slashings, beatings, and robberies. Members and associates of 2Fly controlled the narcotics trade at ECG, which took place in the open air at the playground and in apartments at ECG. 2Fly primarily sold marijuana and crack cocaine, but also sold powder cocaine and prescription pills, such as oxycodone. 2Fly members and associates stored guns at the playground or in nearby apartments or cars in order to protect the narcotics business and for protection against rival gangs.
In addition to leading 2Fly, PARRISH personally participated in a number of acts of violence with the Gang, including a shootout with rival gang members on August 7, 2012, in a public park in the Bronx. Three victims were shot, including a 14-year-old girl caught in the crossfire.
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PARRISH, 27, of the Bronx, New York, was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. On April 27, 2016, the Indictment captioned United States v. Laquan Parrish et al., 16 Cr. 212 (LAK) was unsealed, charging 57 members and associates of 2Fly with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and/or firearms charges. To date, 54 of these defendants have pled guilty.
Mr. Kim praised the outstanding work of NYPD’s Bronx Gang Squad, HSI, DEA, and ATF. He also thanked the Bronx County District Attorney’s Office, the Department of Investigation, NYCHA Inspector General’s Office, and the New York State Department of Parole for their ongoing support in this investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Skinner are in charge of the prosecution.
Laveen Man Sentenced to 87 Months for Illegally Possessing Firearm on ReservationRead the Press Release
PHOENIX – Yesterday, Anthony James Kyyitan, 38, of Laveen, Ariz., was sentenced by U.S. District Judge David G. Campbell to 45 months in prison for recklessly handling a firearm on the Gila River Indian Community. Kyyitan had previously pleaded guilty to disorderly conduct.
In imposing the sentence, Judge Campbell noted that Kyyitan was a prohibited possessor who had improperly possessed firearms on two occasions while living on the reservation. Kyyitan is an enrolled member of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine D. Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00161-PHX-DGC
RELEASE NUMBER: 2017-097_Kyyitan
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Laredo Resident Indicted in Enticement of a Minor ChargeRead the Press Release
LAREDO, Texas – A Laredo resident has been indicted on charges related to the enticement of a minor, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned an indictment today against Ruben Morin, 22, of Laredo. The two-count indictment charges Morin with coercion and enticement of a minor and transfer of obscene materials to a minor.
Between Aug. 30, 2017, to Sept. 15, 2017, Morin allegedly communicated with whom he thought was a 13-year-old girl through an online messaging application and text messages. During these communications, Morin sent several pictures of his genitals, according to th charges. Morin then travelled locally to a location in Laredo for the alleged purpose of engaging in a sexual act with the girl. Upon his arrival, law enforcement took him in to custody.
If convicted of the coercion and enticement charge, Morin faces a mandatory minimum of 10 years and up to life in prison. For the transfer of obscene materials, he faces up to 10 years in prison. Both counts also carry a possible $250,000 fine, upon conviction.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Webb County Sheriff’s Department, Laredo Police Department and the United Independent School District Police.
The case, prosecuted by Assistant U.S. Attorney Christopher dos Santos, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Kerr County Man Sentenced for Sending Threatening Letters to President Obama an U.S. Attorney and a FBI Field OfficeRead the Press Release
SAN ANTONIO, Texas — Gavin Friedman, 21, of Austin, Texas, was sentenced yesterday by U.S. District Judge David A. Ezra to 63 months in federal prison for sending threatening communications to President Obama, and the U.S. Attorney for the Western District of Texas, as well as threats to destroy the FBI field office in Houston. The announcement was made today by U.S Attorney John Parker of the Northern District of Texas.
Friedman pleaded guilty to one count of making a threat against the president, one count of mailing – concerning an explosive and two counts of mailing threatening communications. He has been in custody since the time of his arrest in December 2016.
“Threats such as these have no place in a civilized society and will be vigorously prosecuted,” said U.S. Attorney Parker.
According to plea documents filed in the case, on January 22, 2016, Friedman wrote and mailed a letter which contained a threat to take the life of the President Barack Obama. The letter stated that President Obama would be killed so Friedman could be martyred in the name of Allah.
On September 19, 2016, according to plea documents, Friedman made a threat, by mail, to damage and destroy the Federal Bureau of Investigation Field Office in Houston, Texas and the White House in Washington, D.C., by means of an explosive. Also on September 19, 2016 and again on September 27, 2016, Friedman wrote and mailed two separate letters addressed to the United States Attorney for the Western District of Texas, which contained threats to injure the United States Attorney and stating that he was going to kill, and had hired people to kill, the United States Attorney, and to kidnap and kill his family.
The U.S. Secret Service and the U.S. Marshals Service investigated the case. Assistant U.S. Attorney Mark Penley of the Northern District of Texas prosecuted the case, as the U.S. Attorney’s Office for the Western District of Texas is recused from the matter.
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Justice Department to Award $1 Million Grant to the State of Nevada in Response to the Las Vegas Mass ShootingRead the Press Release
The Department of Justice today announced it will offer a $1 million award to the State of Nevada in order to assist with the immediate costs of responding to the mass shooting in Las Vegas, Nevada. The grant is drawn from emergency response funds within the Bureau of Justice Assistance.
The grant funds announced today recognize the hard work and dedication of law enforcement officers across Las Vegas and the State of Nevada, who worked tirelessly in the wake of the tragic shooting last week. The Justice Department is continuing to work with Las Vegas officials to address law enforcement and public safety costs related to this tragedy.
Justice Department Settles Immigration-Related Retaliation Claim Against Texas CompanyRead the Press Release
The Justice Department announced today that it has reached a settlement with InMotion Software LLC (InMotion), a software developer and recruiter in Texas, resolving the department’s investigation into whether the company violated the Immigration and Nationality Act’s (INA) anti-discrimination provision.
Based on its investigation, the department concluded that InMotion retaliated against a work-authorized job applicant after she protested InMotion’s requirement that she provide a Permanent Resident Card even though she had a valid employment authorization card issued by the U.S. Citizenship and Immigration Services. After the worker complained that InMotion’s request constituted discrimination under the INA, InMotion removed her from its pool of candidates available for job placement. The INA’s anti-discrimination provision prohibits employers from retaliating against or intimidating workers because they have opposed employer conduct that may violate that provision or have participated in the department’s activities to enforce it.
Under the settlement agreement, InMotion will pay the maximum civil penalty for an instance of retaliation, post notices informing workers about their rights under the INA’s anti-discrimination provision, train its staff, and be subject to departmental monitoring and reporting requirements for one year.
“Employees must be able to assert their rights without fear of reprisal,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “Employers should familiarize themselves with the law and ensure that they do not engage in retaliatory conduct against workers who raise concerns about compliance.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation, different documentary requirements based on their citizenship/immigration status or national origin, or discrimination based on their citizenship/immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
IRS Cooperator Pleads Guilty to Falsifying Digital Audio Tape in a Federal Investigation for Financial GainRead the Press Release
BOSTON – A Lawrence man who was working as a paid cooperator for the Internal Revenue Service’s Criminal Investigation (IRS-CI) pleaded guilty yesterday in federal court in Boston in connection with falsifying audio recordings in a federal investigation.
Erick Santiago-Then, 36, pleaded guilty to 10 counts of falsifying records in a federal investigation. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 3, 2018.
In February 2014, Santiago-Then was working as a paid cooperator for IRS-CI. As part of his work uncovering evidence against the perpetrators of a stolen identity refund fraud scheme, Santiago-Then was given IRS-CI funds and authorized to set up a controlled meeting for the purpose of purchasing fraudulently-obtained tax refund checks. However, Santiago-Then set up a sham meeting with a cohort during which time he obtained a list of personal identifying information, rather than tax refund checks. Following the controlled meeting, and unbeknownst to IRS-CI, Santiago-Then split the IRS-CI funds with his cohort. Santiago-Then subsequently engineered several recorded phone calls during which his cohort posed as someone else and purportedly gave Santiago-Then the run around concerning the purported mix up regarding the tax refund checks.
The charge of falsifying records in a federal investigation provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Ryan M. DiSantis of Weinreb’s Public Corruption Unit is prosecuting the case.
Harrison County man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia man has admitted to a firearm charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Ryan Matthew Smith, age 40, pled guilty to one count of “Unlawful Possession of a Firearm.” Smith, having been previously convicted of a felony and a misdemeanor in the Circuit Court in Harrison County, West Virginia, admitted to possessing a .357caliber revolver in Harrison County in September 2016.
Smith faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national charged with a federal immigration crime pleaded guilty and was sentenced yesterday in federal court in Boston.
Juan Chilel-Sandoval, a/k/a Jose Bartolome Chilel Sandoval, 28, pleaded guilty to one count of illegal re-entry of a deported alien before U.S. District Court Judge Rya W. Zobel, who sentenced Chilel-Sandoval to time-served (approximately 15 days). Chilel-Sandoval will be subject to deportation proceedings.
On Aug. 31, 2017, law enforcement in Lynn encountered Chilel-Sandoval and determined him to be unlawfully present in the United States. Chilel-Sandoval had been previously deported on Oct. 22, 2010.
Acting United States Attorney William Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Guatemalan Man Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Celso Diaz Ramirez, 39, of Guatemala, was sentenced today to time served (34 days), for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), Field Office Director Thomas E. Feeley, Buffalo, New York Field Office.
As part of his guilty plea, Diaz Ramirez admitted that he was an alien, a citizen of Guatemala, and that he illegally returned to the United States after he was removed to Guatemala on July 8, 2014.
Diaz Ramirez was previously removed on May 27, 2011, February 1, 2012, April 9, 2012 and May 13, 2013.
On September 7, 2017, Diaz Ramirez was encountered and arrested by ICE officers in Middleburgh, New York.
Following the sentencing, Diaz Ramirez was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
The case was investigated by United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Former President of Harris County Medical Society and Affiliated Facilities Settle Allegations of Medicare FraudRead the Press Release
HOUSTON – Dr. Gurunath Thota Reddy, Memorial Hermann Endoscopy and Surgery Center North Houston, United Surgical Partners International and Digestive & Liver Disease Consultants P.A. have entered into an agreement to pay $1,575,000 to settle allegations of Medicare fraud, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge C.J. Porter of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG). The claims resolved by this settlement are only allegations and there has been no determination of liability.
The Medicare claims included in the settlement date from April 1, 2007, through Nov. 30, 2014.
An endoscopy nurse formerly employed by Memorial Hermann Endoscopy and Surgery Center initialed the matter. She alleged that Reddy and other physicians who performed colonoscopies at Memorial Hermann Endoscopy and Surgery Center North Houston failed to meet established medical standards. She claimed Reddy and other physicians performed procedures at the center so quickly that they were essentially worthless. By failing to take the necessary amount of time to closely examine the colon, precancerous lesions could be missed.
She also claimed that, in the interest of saving time, the physicians would not always examine the entire colon and would sometimes spend as little as two minutes on a colonoscopy. She also alleged the surgery center did not follow established guidelines for sanitation, claiming Reddy would not put on a clean gown prior to each procedure in order to save money.
“When Medicare pays for a patient to undergo a medical procedure, Medicare expects the health care provider to follow established medical standards of care and sanitation,” said Martinez. “There is no excuse for shortcutting quality in order to increase revenues.”
“Boosting profits with shortcuts to standard medical procedures is unacceptable and at the expense of patient safety,” said Porter. “Working with our law enforcement partners, we will continue to protect Medicare and Medicaid patients from substandard care.”
The experienced endoscopy nurse who brought the allegations further claimed she was fired the day after she complained to the Regional Vice President of United Surgical Partners about the problems she observed.
The FBI, DHHS-OIG and investigators for the U.S. Attorney’s Office conducted the investigation. Assistant U.S. Attorney Michelle Zingaro handled the litigation on this matter.
Former NYS Deputy Secretary of State Sentenced to Serve Thirty Months in Prison for PerjuryRead the Press Release
ALBANY, NEW YORK – Joseph Felix Strevell, 56, of Castleton, New York, was sentenced today to serve 30 months in prison, to be followed by a three-year term of supervised release, in connection with his guilty plea to five counts of perjury.
The announcement was made by Acting United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach, II, and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Strevell admitted that from 1997 to 1999, he served as a Deputy Secretary of State for the State of New York. He left that position in December 1999 to serve as the head of the state-funded Institute for Entrepreneurship, which he led until July 2001. In 2007, Strevell pled guilty in federal court to defrauding New York State while leading the Institute, including using Institute funds to give himself a $95,000.00 lump-sum raise without the approval of the Institute’s Board of Directors. He also admitted to improperly using Institute funds to pay for his personal expenses and those of his family.
In March 2009, the United States District Court for the Northern District of New York entered a judgment against Strevell for this conviction, requiring him to pay $111,500.00 in restitution to New York State, the victim of his offense. The judgment required Strevell to pay restitution at a minimum rate of $100 per month, or 10 percent of his gross monthly earnings, whichever was greater, and to pay full restitution immediately if at any time he had the resources to do so.
In December 2014, the Civil Division of the U.S. Attorney’s Office for the Northern District of New York deposed Strevell under oath to determine whether he was complying with his restitution obligation. When questioned about how he was able to make a $75,440.00 down payment on a lease with an option to purchase a 138.55-acre horse farm in Rensselaer County in April and May 2013, Strevell falsely testified that his mother and aunt provided most of the funds to make the down payment. In fact, neither Strevell’s mother, nor aunt, contributed any money toward the down payment.
Strevell also lied during that deposition about whether he had paid for his daughter’s wedding in May 2014, falsely testifying that he contributed only “a couple thousand dollars” toward wedding expenses. In fact, Strevell paid for most of the wedding, contributing more than $30,000.00, including $10,435.00 in cash to one vendor directly, and transferring tens of thousands of dollars from his business to his daughter.
This case was investigated by the New York State Police and the FBI, and was prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Michael Barnett.
Former Detroit Deputy Chief of Police and Legal Advisor Charged with Bribery and Bribery ConspiracyRead the Press Release
A former Deputy Chief of Police for the Detroit Police Department was indicted today for bribery and conspiracy to commit bribery, in connection with the corruption of towing permits in Detroit, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
Charged was Celia Washington, 57, of Detroit.
According to the indictment, while serving as a Deputy Police Chief and the legal advisor to the Chief of Police, Washington’s responsibilities included overseeing the Detroit Police Department’s permitting, licensing, and use of private towing companies. As a Deputy Police Chief, Washington conspired to commit bribery with the owner of several towing companies to assist the owner with the placement of his various companies on the Detroit Police Department’s towing rotation. Under the city’s towing rotation, private towing companies are called by the police to tow cars that are seized by the police or had been stolen. Washington was aware that the owner of the towing companies was violating the City of Detroit’s rules prohibiting a towing company owner from having more than one company in the rotation for a particular police precinct or district. As part of the conspiracy, Washington accepted at least $3,000 in cash as a bribe from the owner of the towing companies in February 2016. In June 2016, Washington assisted in issuing a police towing rotation that continued to allow the owner to violate the city’s towing rules. During the conspiracy, Washington directed the owner and his associate and relative to communicate with her concerning the towing rotations that he wanted using Washington’s private e-mail account.
The bribery charge carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000. The bribery conspiracy count carries a maximum sentence of 5 years’ imprisonment and a fine of $250,000.
Acting United States Attorney Lemisch said, “Given her role and importance to the operation of the Detroit Police Department, it is critical that the activities of Ms. Washington are free of corruption and bribery. We thank Chief of Police James Craig for his assistance in this investigation.”
"Today's indictment establishes that former Deputy Police Chief Celia Washington betrayed the men and women of the Detroit Police Department and the citizens of Detroit when she prioritized personal gain over policing excellence which will always place neighborhoods and people first", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "The FBI wants the public to know that this conduct is not representative of the Detroit Police Department and we remain grateful for the support of Chief Craig and our law enforcement partners to address corrupt practices wherever those practices exist".
"This is extremely troubling, stated Detroit Police Chief Craig. “It’s certainly a betrayal, not only to the men and women of this police department and my office, but the citizen of this city. We want to acknowledge both the work of the FBI and US Attorney Office in bringing closure to this matter. This was certainly a team effort and we applaud their work. The stain is present and a significant betrayal to this organization."
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
An indictment is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Former D.C. Schools Employee and Business Owner Accused of Carrying Out Bid-Rigging SchemeRead the Press Release
WASHINGTON – A former employee of the District of Columbia Public Schools and a business owner, her longtime friend, have been indicted on charges stemming from an alleged bid-rigging scheme involving contracts for administrative assistants valued at nearly $300,000.
The indictments were announced today by U.S. Attorney Jessie K. Liu, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Daniel W. Lucas, Inspector General for the District of Columbia.
Amber R. Crowder, 39, of Washington, D.C., the former schools employee, and Shauna Marie Brumfield, 39, of Sacramento, Calif., the business owner, were indicted on Oct. 10, 2017, in the U.S. District Court for the District of Columbia. Both were indicted on five counts of mail fraud, three counts of wire fraud, one count of engaging in a money laundering conspiracy, three counts of money laundering, and one count of first-degree fraud. The indictment also includes a forfeiture allegation seeking all proceeds of the alleged crimes.
Crowder was arrested today in Washington, D.C., and Brumfield was arrested today in Sacramento. Crowder pled not guilty at her first appearance this afternoon in the U.S. District Court for the District of Columbia and was released on personal recognizance pending further court proceedings. Brumfield is expected to make her first appearance later today in the U.S. District Court for the Eastern District of California.
According to the indictment, Crowder held various positions with the Office of Special Education (OSE), a part of the District of Columbia Public Schools. The charges involve the school system’s awarding of two contracts for administrative assistants to a company called A Simple Solution. Brumfield was identified as the firm’s registered agent and her residence, then in Northeast Washington, was listed as its principal place of business. According to the indictment, Crowder and Brumfield were close personal friends since childhood.
In the summer of 2012, according to the indictment, Crowder was tasked with identifying and recommending a company to provide temporary administrative assistants for the Office of Special Education to aid in the scheduling of meetings related to services being provided for special education students in the 2012-2013 school year. The indictment alleges that she took a series of steps to steer two administrative assistant contracts to A Simple Solution, including falsely representing during the selection process that A Simple Solution had staff with educational experience and specialized in providing staff to educational institutions throughout the United States when in fact it had no staff and had never performed any work.
The indictment also alleges that Brumfield used Crowder’s knowledge of the estimated cost of the project to submit a price quote for A Simple Solution. Additionally, the indictment alleges Brumfield used the alias “Marie Matthews” when communicating with the school system on behalf of A Simple Solution, and Crowder referred to “Marie Matthews” as the contact person for A Simple Solution, to conceal the fact that Crowder was recommending the awarding of the contracts to her close personal friend.
According to the indictment, from October 2012 until March 2014, the District of Columbia Public Schools mailed approximately $222,000 in checks to A Simple Solution. From January 2013 until August 2013, the indictment alleges, Brumfield transferred approximately $19,164 from the bank account for A Simple Solution to Crowder’s own bank account.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The FBI’s Washington Field Office and the District of Columbia Office of the Inspector General are investigating the case. The case is being prosecuted by Assistant U.S. Attorney Anthony Saler, with assistance from Assistant U.S. Attorney Diane Lucas and Paralegal Specialists Jessica Mundi, Kristy Penny, Joshua Fein, and Aisha Keys.
Former Congressional Staffer Pleads Guilty to Extensive Fraud and Money Laundering SchemeRead the Press Release
HOUSTON - A former congressional staffer pleaded guilty today for his role in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to pay for personal expenses and to illegally finance a former congressman’s campaigns for public office, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Jason T. Posey, 46, formerly of Houston and currently residing in Mississippi, pleaded guilty to one count of mail fraud, one count of wire fraud and one count of money laundering before Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. Sentencing is set for March 29, 2018.
According to admissions made in connection with Posey’s plea, Posey served as director of special projects for former U.S. Congressman Stephen E. Stockman, 60, of the Houston area, from in or around January 2013 until in or around November 2013. Posey admitted that, at Stockman’s direction, he and another congressional staffer, Thomas Dodd, 38, also of the Houston area, illegally funneled $15,000 of charitable proceeds into Stockman’s campaign bank account and caused the campaign to file reports with the Federal Election Commission (FEC) that falsely stated that the money was a contribution from their parents and from the staffers themselves. According to Posey’s admissions, Stockman also directed Posey to send a letter to a charitable donor that falsely stated the donor’s $350,000 donation had been used to support a charitable endeavor, when the funds were actually used for other purposes to include Stockman’s campaigns for public office.
In connection with his plea, Posey also admitted he and Stockman raised $450,571.65 to support Stockman’s 2014 Senate campaign by falsely representing to a donor that the funds would be used to support a legitimate independent expenditure by an independent advocacy group Posey headed. In fact, according to Posey, Stockman personally directed and supervised the activities of the purportedly independent group, including the printing and mailing of hundreds of thousands of copies of a pro-Stockman publication to Texas voters. Posey also admitted he submitted a false affidavit to the FEC in order to conceal the scheme.
Dodd pleaded guilty on March 20 to conspiracy to commit mail and wire fraud and conspiracy to make illegal conduit contributions and false statements to the FEC.
Stockman’s trial is scheduled to begin on Jan. 29, 2018. The charges and allegations against him are merely accusations. He is presumed innocent until and unless proven guilty.
The FBI and IRS-CI are investigating the case. Assistant U.S. Attorney Melissa Annis is prosecuting the case along with Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Former Congressional Staffer Pleads Guilty to Extensive Fraud and Money Laundering SchemeRead the Press Release
A former congressional staffer pleaded guilty today for his role in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to pay for personal expenses and to illegally finance a former congressman’s campaigns for public office, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Abe Martinez of the Southern District of Texas.
Jason T. Posey, 46, formerly of Houston, and currently residing in Mississippi, pleaded guilty to one count of mail fraud, one count of wire fraud and one count of money laundering before Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. Sentencing is set for March 29, 2018.
According to admissions made in connection with Posey’s plea, Posey served as director of special projects and treasurer of the congressional campaign committee for former U.S. Congressman Stephen E. Stockman, 60, of the Houston, Texas area, from in or around January 2013 until in or around November 2013. Posey admitted that, at Stockman’s direction, he and another congressional staffer, Thomas Dodd, 38, of the Houston, Texas area, illegally funneled $15,000 of charitable proceeds into Stockman’s campaign bank account and caused the campaign to file reports with the Federal Election Commission (FEC) that falsely stated that the money was a contribution from their parents and from the staffers themselves. According to Posey’s admissions, Stockman also directed Posey to send a letter to a charitable donor that falsely stated that the donor’s $350,000 donation had been used to support a charitable endeavor, when in fact the funds were actually used for other purposes, including Stockman’s campaigns for public office.
In connection with his plea, Posey also admitted that he and Stockman raised $450,571.65 to support Stockman’s 2014 Senate campaign by falsely representing to a donor that the funds would be used to support a legitimate independent expenditure by an independent advocacy group Posey created. In fact, Posey admitted that Stockman personally directed and supervised the activities of the purportedly independent group, including the printing and mailing of hundreds of thousands of copies of a pro-Stockman publication to Texas voters. Posey also admitted that he submitted a false affidavit to the FEC in order to conceal the scheme.
Dodd pleaded guilty on March 20 to conspiracy to commit mail and wire fraud and conspiracy to make illegal conduit contributions and false statements to the FEC. Stockman’s trial is scheduled to begin on Jan. 29, 2018. The charges and allegations in this case are merely accusations. Stockman is presumed innocent until proven guilty.
The FBI and IRS-CI are investigating the case. Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas are prosecuting the case.
Florida Businessman Pleads Guilty to Foreign Bribery Charges in Connection with Venezuela Bribery SchemeRead the Press Release
A partial owner of several Florida-based energy companies pleaded guilty today to foreign bribery charges for his role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston office made the announcement.
Fernando Ardila Rueda (Ardila), 49, of Miami, pleaded guilty in federal court in Houston, to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted the guilty plea. Sentencing is scheduled for Feb. 8, 2018.
According to admissions made in connection with his plea, Ardila conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. The bribes were paid to ensure that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels and in order to obtain or retain business with PDVSA. From 2008 through 2014, while he was sales director, manager and partial owner of several of Shiera’s companies, Ardila provided entertainment and offered bribes to PDVSA officials based on a percentage of the value of contracts the officials helped to award to Shiera’s companies.
Rincon, Shiera and two other former employees of Shiera’s companies have also pleaded guilty in the case. Including Ardila, the Justice Department has announced a total of 10 individuals have pleaded guilty and are pending sentencing as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
ICE-HSI is conducting the ongoing investigation with assistance from IRS-Criminal Investigation. Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. AUSA Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Florida Businessman Pleads Guilty in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON – A partial owner of several Florida-based energy companies pleaded guilty today to foreign bribery charges for his role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston office made the announcement.
Fernando Ardila Rueda (Ardila), 49, of Miami, Florida, pleaded guilty in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Gray H. Miller accepted the guilty plea. Sentencing is scheduled for Feb. 8, 2018.
According to admissions made in connection with his plea, Ardila conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. The bribes were paid to ensure that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels and in order to obtain or retain business with PDVSA. From 2008 through 2014, while he was sales director, manager and partial owner of several of Shiera’s companies, Ardila provided entertainment and offered bribes to PDVSA officials based on a percentage of the value of contracts the officials helped to award to Shiera’s companies.
Including Ardila, the Justice Department has announced a total of 10 individuals have pleaded guilty and are pending sentencing as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
ICE-HSI is conducting the ongoing investigation with assistance from IRS - Criminal Investigation. Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case along with Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Federal Jury Convicts Titusville Man in Stolen Identity Refund Fraud SchemeRead the Press Release
Orlando, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Trayone Lefferio Bell guilty of one count of fraudulent possession of access devices (credit card), two counts of theft of government money, and three counts of aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for each of the first three counts, followed by two years in federal prison for the aggravated identity theft counts. His sentencing hearing has been set for January 4, 2018. Bell was indicted on December 21, 2016.
According to evidence presented at trial, Bell used stolen names, dates of birth, and Social Security numbers to file false 2011 federal tax returns. The fraudulent returns requested that the refunds be issued via prepaid debit cards in the victims’ names. Bell obtained the cards and used them in a series of large cash withdrawals and purchases.
This case was investigated by the St. Cloud Internal Revenue Service-Secret Service Financial Crimes Task Force, which includes representatives from the Internal Revenue Service - Criminal Investigation, the U.S. Secret Service, the St. Cloud Police Department, the Osceola County Sheriff’s Office, the Brevard County Sheriff’s Office, the Palm Bay Police Department, the Casselberry Police Department, the Kissimmee Police Department, the Winter Park Police Department, and the Maitland Police Department. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
El Departamento de Justicia Resuelve Una Denuncia de Represalias Relacionada con la Inmigración contra Una Empresa de TejasRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con InMotion Software LLC (InMotion), una compañía que se dedica al reclutamiento y desarrollo de software en Tejas, lo que resuelve la investigación iniciada por el Departamento con el fin de determinar si tal compañía había vulnerado la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
Con base en su investigación, el Departamento concluyó que InMotion tomó represalias contra un solicitante de empleo, autorizada a trabajar en los EEUU, después de que protestara contra el requisito de InMotion que presentara una tarjeta de residencia permanente aunque ella disponía de una tarjeta de autorización para trabajar válida, emitida por los Servicios de Ciudadanía e Inmigración de los EE. UU. Tras quejarse de que el requisito de InMotion constituya discriminación conforme a la INA, InMotion la eliminó de su lista de posibles candidatos para empleo. La disposición antidiscriminatoria de la INA prohíbe que los empleadores intimiden o tomen represalias contra los trabajadores porque estos se opongan a una conducta del empleador que podría representar una vulneración de la disposición o porque participen en las actividades del Departamento para hacer cumplir la ley.
Conforme al acuerdo, InMotion pagará la sanción civil máxima por haber tomado represalias. Asimismo, publicará avisos para informar a sus trabajadores acerca de sus derechos al amparo de la disposición antidiscriminatoria de la INA, capacitará a su personal y se someterá a la supervisión y los requisitos de declaración del Departamento durante un año.
«Es de primordial importancia que los empleados puedan hacer valer sus derechos sin temer represalias», declaró el Fiscal General Auxiliar en funciones, John M. Gore, de la División de Derechos Civiles. «Los empleadores deben familiarizarse con la ley y asegurar que no tomen represalias contra aquellos trabajadores que vocalicen sus preocupaciones acerca del cumplimiento».
La Sección para los Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Eight Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury returned a second superseding indictment on September 27, 2017 and it was unsealed today. The second superseding indictment charges the following defendants in connection with a conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:
Carlos Roberto Tejada Cruz, a/k/a “Krusty,” age 20, of Beltsville, Maryland;
Kevin Alexis Hernandez-Guevara, a/k/a “Stop,” age 20, of Landover Hills, Maryland;
Rolando Aristides Juarez-Vasquez, a/k/a “Virus,” a/k/a “Daffy,” age 22, of Hyattsville, Maryland;
Jeffry Rodriguez, a/k/a “Hyper,” age 21, of Beltsville, Maryland;
Junior Noe Alvarado-Requeno, a/k/a “Insolente,” a/k/a “Trankilo,” age 20, of Landover, Maryland;
Michael Eduardo Contreras, a/k/a “Katra,” a/k/a “Insoportable,” age 22, of Silver Spring, Maryland;
Luis Fernando Orellana-Estrada, a/k/a “Pinguino,” age 18, of Hyattsville, Maryland; and
Donald Roberto Mendez-Lopez, a/k/a “Chuckie,” age 18, of Hyattsville, Maryland.
All of the defendants are in custody.
The second superseding indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General Kenneth A. Blanco; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Assistant Director in Charge Andrew W. Vale of FBI Washington Field Office; Special Agent in Charge of DEA Karl C. Colder; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. The defendants were allegedly members of the Sailors Clique of MS-13. The four count superseding indictment alleges that from at least 2015 through September 2017, the defendants were members and associates of MS-13 who planned and committed murders, drug and gun trafficking, and extortions.
For a period of time beginning at least in 2015 through September 2017, the Sailors Clique is alleged to have extorted owners of illegal businesses in the Langley Park and Wheaton areas of Maryland, with the extortion proceeds being sent to El Salvador to benefit MS-13. In addition, members of the Sailors Clique allegedly trafficked narcotics, including marijuana and cocaine in Langley Park, Maryland, with the proceeds benefiting the gang.
More specifically, the superseding indictment alleges that on June 16, 2016, Alvarado-Requeno, planned with and directed other MS-13 members and associates to murder an individual who was thought to be a member of the rival 18th Street gang in Gaithersburg, Maryland.
On July 29, 2016, Tejada-Cruz, Hernandez-Guevara and other members and associates of MS-13 planned another murder. After luring the victim to a secluded location, Tejada-Cruz attempted to shoot the victim, and Tejada-Cruz and others stabbed the victim to death.
On March 27, 2017, Contreras arranged for members of the Sailors Clique to travel from Maryland to Lynchburg, Virginia where they murdered a victim in Bedford County.
The indictment further alleges that on August 9, 2016, Tejada-Cruz, Hernandez-Guevara and Rodriguez planned a drug deal to purchase marijuana. Hernandez-Guevara and Rodriguez attempted to steal the marijuana by brandishing a gun and knife, and in the course of the robbery shot and stabbed two individuals.
According to the indictment, on June 1, 2017, Juarez-Vasquez and other members and associates of MS-13 exchanged words with an individual in the Adelphi area of Maryland, and threw MS-13 gang signs. Juarez-Vasquez shot the victim in the head, killing him.
Alvarado-Requino, Tejada-Cruz, Hernandez-Guevara, and Juarez-Vasquez face a maximum sentence of life in prison. Rodriguez, Contreras, Orellana-Estrada and Mendez-Lopez face a maximum sentence of twenty years in prison for conspiring to participate in a racketeering enterprise. Tejada-Cruz and Hernandez-Guevara also face a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Orellana-Estrada and Mendez-Lopez also face a maximum of twenty years in prison for conspiring to interfere with interstate commerce by extortion.
Contreras is also charged with conspiracy to distribute and possession with intent to distribute controlled substances, which carries a penalty of up to 20 years in prison. Orellana-Estrada and Mendez-Lopez have been charged with conspiracy to interfere with interstate commerce by extortion, which carries a possible sentence of 20 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning thanked the FBI Washington Field Office, HSI, DEA, the Prince George’s County Police Department, the Hyattsville Police Department, the Montgomery County Police Department, the State’s Attorney’s Office of Prince George’s County, and the State’s Attorney’s Office of Montgomery County. Mr. Schenning also commended Assistant United States Attorneys William D. Moomau and Daniel C. Gardner of the United States Attorney’s Office for the District of Maryland and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Eagle Butte Woman Charged with Violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty ActRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman, has been indicted by a federal grand jury for violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act.
Wanda Dupris, age 44, was indicted on August 22, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to two years in custody and/or a $250,000 fine, one year of supervised release, and up to $125 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 30, 2015, Dupris did knowingly, and with wanton disregard for the consequences of her actions, possess, sell, barter, and offer to sell and barter a bald eagle and a golden eagle and parts thereof, and other migratory birds and parts thereof.
The charges are merely accusations and Dupris is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Dupris was released on bond pending trial. A trial date has not been set.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston for illegally reentering the United States after being deported.
Teddy Leonel Cruz-Velez, 44, pleaded guilty to one count of illegal re-entry of a deported alien before U.S. District Court Judge George A. O’Toole Jr. Sentencing is scheduled for Jan. 11, 2018.
In December 2016, law enforcement in Middleton encountered Cruz-Velez and determined that he was illegally present in the United States. Cruz-Velez had previously been deported on July 2, 2013.
Cruz-Velez faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
Dominican National Involved in Federal Fentanyl Sweep in Lawrence Pleads GuiltyRead the Press Release
BOSTON - A Dominican national pleaded guilty yesterday in federal court in Boston to federal drug offenses.
Oscar Francisco Marcano Valverde, a/k/a Oscar Marcado, a/k/a Oscar Malcano, 38, a Dominican national formerly residing in Haverhill, pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine, and fentanyl and one count of being an alien unlawfully present in the United States in possession of a firearm and ammunition. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 10, 2018.
On May 30, 2017, after a year-long investigation aimed at attacking the fentanyl and heroin crisis in Lawrence and surrounding areas, more than 200 federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Marcano Valverde was arrested and charged along with Patrone and approximately 30 co-conspirators.
Marcano Valverde worked part-time at a stash house where he prepared and packaged drugs as well as picked up and delivered drugs and drug proceeds at Patrone’s direction.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. The charge of being an alien unlawfully present in the United States in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Marcano Valverde will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James Fitzpatrick made the announcement today. The DEA Cross Border Initiative, comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Departments of Justice and State Partner to Protect U.S. Workers from Discrimination and Combat FraudRead the Press Release
The Departments of Justice and State announced today that they have formalized a partnership aimed at protecting U.S. workers from discrimination and combatting fraud by employers that misuse visas. The partnership, memorialized by a Memorandum of Understanding (MOU) between the Department of Justice’s Civil Rights Division and the Department of State’s Bureau of Consular Affairs, facilitates information sharing in an effort to help each agency advance its mission.
Under the MOU, the Civil Rights Division and the Bureau of Consular Affairs will share information about employers that may be engaging in unlawful discrimination, committing fraud, or making other misrepresentations in their use of employment-based visas, such as H-1B, H-2A, and H-2B visas. The agencies will also provide each other with technical assistance and training to encourage complaint referrals and effective collaboration.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, enforces the anti-discrimination provision of the Immigration and Nationality Act (INA). The provision prohibits, among other things, citizenship and national origin discrimination in hiring, firing, or recruiting.
In February 2017, IER launched its Protecting U.S. Workers Initiative, an initiative aimed at targeting, investigating, and bringing enforcement actions against companies that discriminate against U.S. workers in favor of foreign visa workers. The Initiative filed its first lawsuit last week against a Loveland, Colorado company for allegedly discriminating against U.S. workers.
“Employers that discriminate against qualified U.S. workers by favoring foreign visa workers will be held accountable,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “Today’s agreement reflects the Civil Rights Division’s commitment to use all available tools, including collaboration with other federal agencies, to protect U.S. workers from discrimination. The Division welcomes the Department of State as a partner in this effort.”
“The Department of State’s Bureau of Consular Affairs is pleased to have joined forces with the Department of Justice to protect U.S. workers, combat fraud, and facilitate legitimate international travel,” said Assistant Secretary of State for Consular Affairs, Carl C. Risch.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status or national origin in hiring, firing, recruitment or referral, or during the employment eligibility verification process (Form I-9 and E-Verify), should contact IER’s worker hotline for assistance.
For additional information on U.S. visas and other U.S. consular services, please see the State Department's website at travel.state.gov.
Department of Justice Awards over $18 Million to Oklahoma TribesRead the Press Release
The Department of Justice has awarded more than $18 million in grants to Oklahoma tribal governments to enhance public health and safety, announced R. Trent Shores, U.S. Attorney for the Northern District of Oklahoma; Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma; and Brian J. Kuester, U.S. Attorney for the Eastern District of Oklahoma.
These grants are part of more than $100 million in grants to 125 American Indian tribes, Alaska Native villages, tribal consortia, and tribal designees, announced today by Associate Attorney General Rachel Brand. Many of these awards were made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
CTAS grants are designed to enhance law enforcement practices, expand victim services, and sustain crime prevention and intervention efforts. Awards cover nine areas: public safety and community policing, justice systems planning, alcohol and substance abuse, corrections and correctional alternatives, children’s justice act partnerships, services for victims of crime, violence against women, juvenile justice, and tribal youth programs.
“Reducing violent gang and gun crimes in Indian Country is crucial to protecting citizens who live in and around tribal communities. The justice community must also look to help those with mental health and substance abuse issues to re-enter society as productive citizens. These Federal grant allocations will help to further those goals,” said U.S. Attorney Shores of the Northern District of Oklahoma.
The Oklahoma CTAS recipients are:
Cherokee Nation (total: $3,087,900)
Public Safety and Community Policing: $565,241
Comprehensive Tribal Justice Systems Strategic Planning: $74,995
Justice Systems and Alcohol and Substance Abuse: $749,993
Violence Against Women Tribal Governments Program: $898,100
Comprehensive Tribal Victim Assistance Program: $449,925
Tribal Youth Program: $349,646
Choctaw Nation of Oklahoma (total: $1,994,588)
Violence Against Women Tribal Governments Program: $897,851
Comprehensive Tribal Victim Assistance Program: $449,999
Juvenile Healing to Wellness Courts: $350,000
Tribal Youth Program: $296,738
Citizen Potawatomi Nation (total: $1,098,106)
Justice Systems and Alcohol and Substance Abuse: $749,593
Tribal Youth Program: $348,513
Comanche Nation (total: $749,348)
Justice Systems and Alcohol and Substance Abuse: $749,348
Delaware Tribe of Indians (total: $424,845)
Violence Against Women Tribal Governments Program: $424,845
Muscogee Creek Nation (total: $803,912)
Violence Against Women Tribal Governments Program: $803,912
Pawnee Nation (total: $700,000)
Violence Against Women Tribal Governments Program: $700,000
Ponca Tribe of Oklahoma (total: $1,800,000)
Corrections and Correctional Alternatives: $1,000,000
Comprehensive Tribal Victim Assistance Program: $450,000
Tribal Youth Program: $350,000
Quapaw Tribe of Oklahoma (total: $4,590,422)
Public Safety and Community Policing: $232,929
Justice Systems and Alcohol and Substance Abuse: $446,714
Corrections and Correctional Alternatives: $3,910,779
Seminole Nation of Oklahoma (total: $900,000)
Violence Against Women Tribal Governments Program: $900,000
Seneca Cayuga Nation (total: $825,000)
Violence Against Women Tribal Governments Program: $825,000
Wyandotte Nation (total: $200,189)
Public Safety and Community Policing: $200,189
In addition to CTAS grants, the Department awarded $889,975 to four Oklahoma tribes under the Adam Walsh Act Implementation grant program, part of the Office of Justice Program’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. These grant awards enable states, the District of Columbia, territories, and tribal jurisdictions to develop and enhance programs that implement the requirements of the federal Sex Offender Registration and Notification Act. Funding supports staff, information-sharing technology, infrastructure development, law enforcement training, and stakeholder collaboration.
The Oklahoma recipients of Adam Walsh Act Implementation grants are:
Caddo Nation: $200,000
Cheyenne and Arapaho Tribes: $400,000
Seneca Cayuga Nation: $198,181
United Keetoowah Band of Cherokee Indians: $91,794
Finally, through the Office of Justice Programs, the University of Oklahoma Health Sciences Center will receive $1.5 million under the Office of Juvenile Justice and Delinquency Prevention’s Fiscal Year 2017 Tribal Youth Program Training and Technical Assistance grant. This program provides culturally-sensitive, trauma-informed and developmentally-appropriate training, support, resources, information, and related technical assistance to help tribes meet the needs of their youth.
The Department of Justice’s national press releases on these and related grants are available at:
- www.justice.gov/tribal/awards, www.justice.gov/ovw/page/file/1000416 /download
- www.justice.gov/opa/press-release/file/1000981/download.
David A. Hickman Pleads Guilty to Using Fire or Explosives to Damage or Destroy Buildings Used in Interstate CommerceRead the Press Release
ALBUQUERQUE – David A. Hickman, 28, of Albuquerque, N.M., pleaded guilty today in federal court to five counts of damaging and destroying buildings used in interstate commerce by fire or explosive. Although Hickman pled guilty to five arson counts, in his plea agreement, Hickman acknowledged igniting arson fires that damaged or destroyed nine businesses engaged in interstate commerce in Albuquerque between Nov. 16, 2016 and Nov. 26, 2106. The plea agreement includes a recommendation that Hickman be sentenced to a term of imprisonment within the range of five to 20 years.
Hickman’s guilty plea was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Gorden E. Eden Jr., of the Albuquerque Police Department (APD), and Captain Jackie Lance of the Albuquerque Fire Department, Fire Investigation Division (FID).
“Arson is a crime of extreme violence that puts the lives of the public and first responders in grave danger, and arsonists must understand that their crimes will evoke a serious response from the law enforcement community,” said Acting U.S. Attorney James D. Tierney. “The U.S. Attorney’s Office commends the dedicated men and women of the FBI, ATF, the Albuquerque Police Department, and the Albuquerque Fire Department for working together to protect our community by apprehending David Hickman and bringing him to justice before his criminal conduct resulted in human injury and loss of life.”
“A series of arsons in Albuquerque almost a year ago not only endangered the lives of firefighters and other innocent people, but also jeopardized the paychecks of numerous hard-working employees at the damaged businesses,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “The FBI is proud to have been part of the team of local and federal law enforcement and fire investigators who came together to solve this case. We congratulate the U.S. Attorney’s Office on a successful prosecution, and we hope it sends a clear message that those responsible for this kind of criminal behavior will be held accountable.”
“I would like to compliment the investigative efforts of all the agencies that lead to Hickman’s arrest,” said Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the ATF. “The Albuquerque Fire Investigation Division in partnership with the ATF National Response Team were able to determine the cause and origin of the Carlisle Condominiums fire started by Hickman on November 23, 2016.”
“This guilty plea ensures justice in a very disturbing case. We are appreciate the hard work and diligence of our law enforcement partners,” said Albuquerque Police Chief Gorden E. Eden Jr.
“The successful investigation and prosecution of David Hickman brings great pride to the Albuquerque Fire Department, especially its Fire Investigation Division (FID). Through a community approach, the men and women of the FID, together with APD, ATF and FBI worked diligently to close this case while continuing to keep our community safe,” said Albuquerque Fire Captain Jackie Lance. “We would like to express our gratitude to everyone who contributed to the successful resolution of this complex case. Please remember if you see something suspicious, say something.”
Hickman was arrested on Nov. 28, 2016, on a criminal complaint charging him with maliciously damaged and destroyed, and attempted to damage and destroy, by means of fire, a building, an Old Navy store located in Albuquerque, used in interstate commerce on Nov. 26, 2016. APD officers arrested Hickman in the early hours of Nov. 26, 2016, and later transferred him into the custody of the FBI. Hickman was arrested shortly after an APD officer responded to the Pavilions at San Mateo shopping center after hearing “small explosions” coming from the area. When the officer arrived at the shopping center, he observed Hickman running into and out of the Old Navy store located in the shopping center, which was on fire. Hickman subsequently was indicted on one count of maliciously damaging a building, the Old Navy store, by fire on Dec. 20, 2016.
During today’s change of plea hearing, Hickman pled guilty to the one-count indictment and to a felony information charging him with four additional counts of arson. In entering the guilty plea, Hickman admitted that, between Nov. 16, 2016 and Nov. 26, 2016, he ignited and attempted to ignite nine separate fires at the following businesses in Albuquerque:
- Starbucks Coffee Shop, located at 800 Broadway Blvd. NE;
- Project Defending Life, located at 625 San Mateo Blvd. NE;
- Carlisle Condominiums, located at 3600 Central Ave. SE;
- Starbucks Coffee Shop, located at 5301 Gibson Blvd. SE;
- Starbucks Coffee Shop, located at 4407 Lomas Blvd. NE;
- Starbucks Coffee Shop, located at 3400 Central Ave. SE;
- Barnes & Noble Bookstore, located at the Coronado Mall at 6600 Menaul Blvd. NE;
- “Shred It,” located at 1415 Broadway Blvd. NE; and
- Old Navy, located at 4900 Cutler Ave. NE.
However, Hickman entered guilty pleas to committing five arsons that damaged and destroyed the following businesses:
- Igniting the fire at the Carlisle Condominiums located at 3600 Central Ave. SE, on Nov. 23, 2016, by using glass mason jars filled with ignitable liquid. The Carlisle Condominiums were under construction and approximately 80% complete when Hickman broke into the construction site and ignited the fire. The damages caused by the fire exceeded $8 million.
- Setting the fire at the Starbucks Coffee Shop located at 5301 Gibson Blvd. SE, on Nov. 25, 2016, by firing a gun into a glass door so he could enter the shop and throwing glass mason jar devices into the building together with firecrackers and a kerosene container that would ignite and fuel the fire.
- Setting the fire at the “Shred It” building located at 1415 Broadway Blvd NE, on Nov. 26, 2016, by firing a gun into a glass door so he could enter the building and use glass mason jar devices and road flares to ignite fires in the building.
- Setting the fire at the Barnes & Noble bookstore building located at the Coronado Mall at 6600 Menaul Blvd. NE, on Nov. 26, 2016, by firing a gun into a glass door so he could enter the building and use glass mason jar devices and a road flare to ignite fires in the store. The damages caused by the fire exceeded $800,000.
- Setting the fire at the Old Navy store located in Albuquerque on Nov. 26, 2016, by shooting several rounds from an assault rifle into the windows of the store so he could enter the store and ignite several fires inside the store using glass mason jar devices with a road flare. The damages caused by the fire exceeded $690,000.
Hickman was arrested shortly after departing the Old Navy store. When he was arrested, Hickman was wearing a holster with a handgun and had a flare in his belt. In Hickman’s vehicle, officers found an assault rifle in his vehicle, glass mason jar devices, tape, ammunition, kerosene, tannerite, and motor oil. Officers also found similar materials, including firecrackers, inside Hickman’s residence while executing a search warrant.
Hickman has been in federal custody since his arrest and remains in custody pending a sentencing hearing, which has yet to be scheduled.
The Albuquerque Division of the FBI, the Albuquerque office of the ATF, ATF’s National Response Team, APD and the Albuquerque Fire Department conducted the investigation of this case. Assistant U.S. Attorney Fred J. Federici is prosecuting the case.
Hickman Indictment Hickman Information Hickman Plea AgreementCongressional Staffer Charged with Filing False Security Clearance FormRead the Press Release
WASHINGTON – A congressional staffer was charged today with filing a false security clearance form, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Jessie K. Liu for the District of Columbia, and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office.
According to the indictment, Issac Lanier Avant, a resident of Arlington, Va., was a staff member employed by the House of Representatives since approximately 2000. Since 2002, Avant has been the Chief of Staff for a member of Congress. In approximately December 2006, he began an additional position for the House Committee on Homeland Security, including Deputy Staff Director and Staff Director. The indictment charges that from 2008 through 2012, Avant earned wages of approximately $170,000 and failed to file an individual income tax return with the Internal Revenue Service (IRS) during those years. Avant allegedly had no federal income withheld during those years because in May 2005, he caused a form to be filed with his employer that falsely claimed he was exempt from federal income taxes. According to the indictment, Avant did not have any federal tax withheld from his paycheck until the IRS mandated that his employer begin withholding in January 2013.
In 2008 and again in 2013, for his position with the Committee on Homeland Security, Avant allegedly completed a Standard Form 86, “Questionnaire for National Security Positions” (SF-86), in order to receive a Top Secret security clearance. The indictment charges that on Sept. 18, 2013, Avant willfully made a false statement by responding “no” to the following question on a SF-86: “In the past seven (7) years have you failed to file or pay federal, state, or other taxes when required by law or ordinance?”
If convicted, Avant faces a statutory maximum prison term of five years, as well as a term of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Liu thanked special agents of the FBI, who conducted the investigation, and Assistant U.S. Attorney John Marston and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Congressional Staffer Charged with Filing False Security Clearance FormRead the Press Release
A congressional staffer was charged today with filing a false security clearance form, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Jessie K. Liu for the District of Columbia and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office.
According to the indictment, Issac Lanier Avant, a resident of Arlington, Virginia, was a staff member employed by the House of Representatives since approximately 2000. Since 2002, Avant has been the Chief of Staff for a member of Congress. In approximately December 2006, he began an additional position for the House Committee on Homeland Security, including Deputy Staff Director and Staff Director. The indictment charges that from 2008 through 2012, Avant earned wages of approximately $170,000 and failed to file an individual income tax return with the Internal Revenue Service (IRS) during those years. Avant allegedly had no federal income withheld during those years because in May 2005, he caused a form to be filed with his employer that falsely claimed he was exempt from federal income taxes. According to the indictment, Avant did not have any federal tax withheld from his paycheck until the IRS mandated that his employer begin withholding in January 2013.
In 2008 and again in 2013, for his position with the Committee on Homeland Security, Avant allegedly completed a Standard Form 86, “Questionnaire for National Security Positions” (SF-86), in order to receive a Top Secret security clearance. The indictment charges that on Sept. 18, 2013, Avant willfully made a false statement by responding “no” to the following question on a SF-86: “In the past seven (7) years have you failed to file or pay federal, state, or other taxes when required by law or ordinance?”
If convicted, Avant faces a statutory maximum prison term of five years, as well as a term of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Liu thanked special agents of the FBI, who conducted the investigation, and Assistant U.S. Attorney John Marston and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.