Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
27 September 2017
Live Oak Man Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
In San Antonio today, United States District Judge Xavier Rodriguez sentenced 41-year-old Corey Lee Dorsey to 151 months in federal prison followed by 25 years of supervised release for distribution of child pornography announced United States Attorney Richard Durbin, Jr. and Texas Attorney General Ken Paxton.
On May 11, 2017, Dorsey pleaded guilty to the charge. By pleading guilty, Dorsey admitted that on September 21, 2013, he uploaded a video depicting child pornography to the Internet.
On December 16, 2015, investigative agents from the Texas Attorney’s General’s Office along with Live Oak Police officers executed a search warrant for the defendant’s residence, where they seized the defendant’s computer and related electronic media. A subsequent forensics evaluation of the seized items revealed the presence of 35,945 images and 1,896 videos containing child pornography.
The Cyber Crimes Unit of the Texas Attorney General’s Office conducted this investigation. Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Lexington Men Sentenced for Burglary of Firearms DealerRead the Press Release
Greensboro, N.C. – A Lexington man and two codefendants were sentenced on September 26, 2017, for the theft of firearms from a registered firearms dealer, announced Acting United States Attorney Sandra J. Hairston.
Anthony Derek STEELE, 25, of Salisbury, N.C., was sentenced by the Honorable Catherine C. Eagles, United States District Judge, to imprisonment for 120 months, followed by three years of supervised release and restitution in excess of $15,000.00. On May 11, 2017, STEELE pleaded guilty to a violation of 18 U.S.C. § 922(u) and 924(i)(1) and (2), theft of firearms from a registered firearms dealer.
On December 7, 2016, law enforcement officers responded to Mimi’s Mini Mart located on NC Highway 8, Lexington, North Carolina, after receiving a report that it had been burglarized during the early morning hours. Upon questioning the owner and reviewing surveillance video from the store, investigators determined that two suspects entered the store at approximately 3:49 a.m. and stole 18 firearms after breaking a glass display case. Further investigation lead to the arrests of STEELE and three others involved in the burglary.
STEELE’s codefendants include Shemar Marquise ANDERSON, 21, Jalen Caldwell HAIRSTON (no relation to Acting U.S. Attorney Hairston), 20, and Marcus Davonta MCINTOSH, 22, all of Lexington. All three pleaded guilty to the theft of firearms from a registered firearms dealer. ANDERSON and HAIRSTON were also sentenced yesterday. MCINTOSH is scheduled to be sentenced on November 2, 2017, in Greensboro.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Davidson County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Terry Meinecke.
###
Kent man indicted on tax chargesRead the Press Release
A Kent man was indicted for filing false tax returns, said U.S. Attorney Justin E. Herdman and IRS Special Agent in Charge Ryan L. Korner.
Davood Haghighi, 59, was indicted on two counts of willfully making and subscribing to a false tax return. Haghighi filed false tax returns for calendar years 2010 and 2011, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis.
An indictment is only a charge 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.
Justice Department Requires Divestiture of SGL's U.S. Graphite Electrodes Business in Order for SDK to Proceed with Its Acquisition of SGL's Global Graphite Electrodes BusinessRead the Press Release
Showa Denko K.K. (SDK) will be required to divest SGL Carbon SE’s (SGL) entire U.S. graphite electrodes business in order for SDK to proceed with its proposed $264.5 million acquisition of SGL’s global graphite electrodes business, the Department of Justice announced today.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.
“The acquisition, as originally proposed, would have eliminated one of the three major suppliers of large ultra-high power graphite electrodes to U.S. electric arc furnace steel mills, leaving these mills with limited choices for this important product,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that U.S. electric arc furnace mill operators continue to benefit from robust competition for this critical input in the steelmaking process.”
According to the department’s complaint, SDK and SGL manufacture and sell large ultra-high power graphite electrodes, which are used to generate sufficient heat to melt scrap metal in electric arc furnaces. The complaint alleges that SDK and SGL are two of the three leading suppliers of large ultra-high power graphite electrodes to U.S. electric arc furnace steel mills, and that the two firms together have a combined market share of approximately 56 percent. According to the complaint, the loss of competition between SDK and SGL would likely result in higher prices and lower quality of delivery and service to U.S. electric arc furnace customers.
Under the terms of the proposed settlement, SDK must divest SGL’s entire U.S. graphite electrodes business, including its manufacturing facilities in Ozark, Arkansas and Hickman, Kentucky, to Tokai Carbon Co., Ltd., or an alternate acquirer approved by the United States. The department said that the divestiture will remedy the acquisition’s anticompetitive effects by providing the acquirer with the domestic manufacturing presence and robust local service capabilities that U.S. electric arc furnace steel mills prefer.
SDK, a Japanese corporation headquartered in Tokyo, is one of Japan’s leading chemical companies with operations in approximately 14 countries. In 2016, SDK’s global revenues were $5.8 billion, with approximately $85 million derived from its U.S. graphite electrodes business.
SGL, a German corporation headquartered in Wiesbaden, Germany, is a leading manufacturer of carbon-based products with operations in 34 countries. In 2016, SGL’s global revenues were approximately $885 million, with approximately $58.6 million derived from its U.S. graphite electrodes business.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Justice Department Obtains $700,000 for Servicemembers to Resolve Allegations that Westlake Services and Wilshire Consumer Capital Conducted Illegal Auto RepossessionsRead the Press Release
The Justice Department announced today that Westlake Services LLC and its subsidiary, Wilshire Consumer Capital LLC, have agreed to pay $760,788 to resolve allegations that the companies violated the Servicemembers Civil Relief Act (“SCRA”) by repossessing 70 vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders.
Westlake, which does business as Westlake Financial Services, is a Los Angeles-based auto financing company that specializes in purchasing and servicing subprime and near-subprime retail installment sales contracts. Wilshire, which does business as Wilshire Consumer Credit, originates and services vehicle title loans. Both companies target junior enlisted servicemembers for their loans and products. During its investigation, the department found that Westlake and Wilshire had failed to adopt policies and procedures necessary to ensure that their motor vehicle repossessions complied with the SCRA.
“The members of our armed forces should be able to devote their full attention to their duties without having to worry about whether their legal rights will be violated by creditors,” said Acting Assistant Attorney General John M. Gore. “We honor all servicemembers for their sacrifice and service to our nation, and this settlement signals our ongoing commitment to protecting the rights of our men and women in uniform.”
“The women and men who serve in the armed forces protect our country from danger every day,” said Acting United States Attorney Sandra R. Brown of the Central District of California. “Given the enormous sacrifice they make for all of us, we have a responsibility to ensure that their rights are protected. Westlake and Wilshire did not live up to this responsibility. But the settlement we have reached will fix the lending practices that led to violations, and vindicate the rights of the servicemembers affected.”
The agreement requires Westlake and Wilshire to provide $10,000 in compensation to each of the 70 affected servicemembers, plus any lost equity in the vehicle with interest. Westlake and Wilshire also must repair the credit of all affected servicemembers, pay a $60,788 civil penalty to the United States and determine, in the future, whether any vehicle it is planning to repossess is owned by an SCRA-protected servicemember. If so, Westlake and Wilshire will not repossess the vehicle without first obtaining a court order or valid waiver of SCRA rights. The agreement also contains provisions ensuring that all eligible servicemembers will receive the benefit of the
SCRA’s six percent interest rate cap on their auto loans.
The agreement resolves the claims and causes of action asserted in the United States’ Complaint against Westlake and Wilshire filed in the United States District Court for the Central District of California, and the parties will stipulate to the dismissal of the Complaint once Westlake and Wilshire deposit the funds required by the settlement agreement into an escrow account and pay the civil penalty to the United States. Westlake and Wilshire will contact servicemembers to be compensated through this settlement in the upcoming months. They will locate victims and distribute payments at no cost to servicemembers.
This matter came to the department’s attention in 2016, when the Consumer Financial Protection Bureau’s Office of Servicemember Affairs notified the department that it had received a complaint that Westlake and Wilshire were conducting motor vehicle repossessions in violation of the SCRA.
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, Westlake and Wilshire prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices. Since 2011, the department has obtained over $450 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Justice Department Obtains $700,000 for Servicemembers to Resolve Allegations that 2 Finance Companies Conducted Illegal Auto ReposRead the Press Release
LOS ANGELES – The Justice Department announced today that two Los Angeles-based consumer finance companies have agreed to pay a total of $760,788 to resolve allegations that the companies violated the Servicemembers' Civil Relief Act (SCRA) by repossessing 70 vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders.
Westlake Services, LLC and its subsidiary, Wilshire Consumer Capital, LLC, agreed to pay the settlement in an agreement finalized today.
The agreement resolves the claims made in the United States’ civil complaint against Westlake and Wilshire filed today in federal court in Los Angeles. The parties will stipulate to the dismissal of the lawsuit once Westlake and Wilshire deposit the funds required by the settlement agreement into an escrow account and pay the civil penalty to the United States.
Westlake, which does business as Westlake Financial Services, is an auto financing company that specializes in purchasing and servicing subprime and near-subprime retail installment sales contracts. Wilshire, which does business as Wilshire Consumer Credit, originates and services vehicle title loans. Both companies target junior enlisted servicemembers for their loans and products.
During its investigation, the Justice Department found that Westlake and Wilshire had failed to adopt policies and procedures necessary to ensure that their motor vehicle repossessions complied with the SCRA.
“The women and men who serve in the armed forces protect our country from danger every day,” said Acting United States Attorney Sandra R. Brown. “Given the enormous sacrifice they make for all of us, we have a responsibility to ensure that their rights are protected. Westlake and Wilshire did not live up to this responsibility. But the settlement we have reached will fix the lending practices that led to violations and vindicate the rights of the servicemembers affected.”
“The members of our armed forces should be able to devote their full attention to their duties without having to worry about whether their legal rights will be violated by creditors,” said Acting Assistant Attorney General John M. Gore. “We honor all servicemembers for their sacrifice and service to our nation, and this settlement signals our ongoing commitment to protecting the rights of our men and women in uniform.”
The settlement agreement requires Westlake and Wilshire to provide $10,000 in compensation to each of the 70 affected servicemembers, plus any lost equity in the vehicle with interest.
Westlake and Wilshire also must repair the credit of all affected servicemembers, pay a $60,788 civil penalty to the United States and determine, in the future, whether any vehicle it is planning to repossess is owned by an SCRA-protected servicemember. If so, Westlake and Wilshire will not repossess the vehicle without first obtaining a court order or valid waiver of SCRA rights. The agreement also contains provisions ensuring that all eligible servicemembers will receive the benefit of the SCRA’s 6 percent interest rate cap on their auto loans.
Westlake and Wilshire will contact servicemembers to be compensated through this settlement in the upcoming months. They will locate victims and distribute payments at no cost to servicemembers.
This matter came to the attention of the Justice Department in 2016, when the Consumer Financial Protection Bureau’s Office of Servicemember Affairs notified the Department that it had received a complaint that Westlake and Wilshire were conducting motor vehicle repossessions in violation of the SCRA.
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember.
By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, Westlake and Wilshire prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.
The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices. Housing and Civil Enforcement Section attorneys worked jointly with the Civil Rights Section within the Civil Division of the United States Attorney’s Office to obtain the settlement with Westlake and Wilshire.
Since 2011, the Justice Department has obtained over $450 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Jury Convicts KC Man of Meth, MarijuanaRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted by a federal trial jury today of possessing methamphetamine to distribute and possessing marijuana.
Christopher J. Kessler, 29, of Kansas City, was found guilty of one count of possessing 50 grams or more of methamphetamine with the intent to distribute and one count of possessing marijuana.
Kessler was arrested on March 5, 2016, following a high-speed vehicle pursuit and foot chase by Independence and Kansas City, Mo., police officers. At about 12:37 a.m., an Independence officer attempted to stop a Ford Explorer driven by Kessler, which was traveling at a high rate of speed and made an abrupt turn without signaling. When Kessler pulled over, the officer was notified that the license plate on his vehicle belonged to another vehicle that had been reported as stolen. The officer, using his exterior speaker, twice ordered Kessler to place the vehicle in park. Instead, Kessler rapidly accelerated. The officer pursued Kessler, who reached a speed of 105 miles per hour, at times driving in the opposite lanes of traffic without his vehicle lights on.
Police officers called off the pursuit but helicopter surveillance observed Kessler enter a hotel. Kessler led officers on a pursuit through the hotel and back out to the street. An officer eventually tackled Kessler to the ground; he continued to resist officers by placing his hands around and under his face. Kessler bit one of the officers in the finger and wrist, breaking the skin. Additional officers assisted in securing Kessler in handcuffs.
Officers searched Kessler and found a clear plastic baggie that contained at least 50.9 grams of pure methamphetamine in his right front pocket, as well as a smaller clear plastic baggie that contained seven grams of marijuana.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about two hours before returning the guilty verdicts to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Sept. 25, 2017.Under federal statutes, Kessler is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Emily A. Morgan and Patrick Edwards. It was investigated by the Independence, Mo., Police Department and the Kansas City, Mo., Police Department.
Idaho State Inmate Sentenced to 33 Months for Sending Threats to JudgeRead the Press Release
BOISE – Brian Ray McClure, 55, an inmate of the Idaho Department of Corrections, was sentenced yesterday to 33 months in federal prison for mailing threatening communications to a Washington state judge, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge B. Lynn Winmill ordered that the federal sentence begin if McClure is granted parole by the Idaho Commission on Pardons and Parole or on March 1, 2019, whichever is earlier.
On August 10, 2017, McClure pleaded guilty to mailing threatening communications in violation of 18 U.S.C. § 876(c). According to his plea agreement, on April 15, 2015, he mailed two nearly identical letters to a state judge in King County, Washington threatening to kill the judge and his family. The judge received the letters and reported the matter to law enforcement. McClure, who is serving a sentence for prior crimes committed in Idaho, had no connection to the judge.
The case was investigated by the United States Postal Inspection Service, the United States Secret Service, and the Idaho Department of Corrections.
High-Ranking “YGz” Gang Member Sentenced to 42 Years in Prison for Murder of 17-Year-Old and Other CrimesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JASON MOYE, a/k/a “Tall Jay,” was sentenced this afternoon to a term of 444 months in prison, which must run consecutive to a prior prison sentence of five years, for his crimes as a high-ranking member of the “Young Gunnaz” or “YGz” gang, including the December 22, 2011, murder of Taisheem Ferguson, a/k/a “Trey,” 17. MOYE was sentenced in Manhattan federal court by United States District Judge Valerie E. Caproni, before whom he previously pled guilty.
Acting Manhattan U.S. Attorney Joon H. Kim said: “A few days before Christmas in 2011, in broad daylight on a busy street, Moye ordered a fellow YGz gang member to shoot into a crowd, senselessly killing 17-year-old Taisheem Ferguson. With today’s sentence, Moye has been held to account for this tragic murder and for his other crimes. We hope that today’s sentence brings some consolation and justice to the victims of Moye’s crimes, in particular the family of Taisheem Ferguson. Together with our law enforcement partners, we will continue to aggressively investigate and prosecute gang violence in our community.”
According to the charging and other documents filed in the case, and statements made during MOYE’s guilty plea and sentencing proceedings and other court proceedings in this case:
MOYE was a high-ranking member of the Bronx-based street gang known as the YGz. From 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committed numerous acts of violence, including the murder of both rivals and innocent bystanders.
As part of his involvement in the YGz gang, MOYE participated in numerous acts of violence in the South Bronx. In particular, on the afternoon of December 22, 2011, MOYE ordered a member of the YGz to shoot into a crowd of rival gang members who were approaching them on Morris Avenue near 151st Street in the Bronx. The YGz member fired several gunshots as directed, one of which killed Ferguson.
* * *
MOYE, 29, of the Bronx, is the sixth defendant to be sentenced this year by Judge Caproni for participation in a YGz-related murder.
Mr. Kim praised the outstanding work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department in the investigation of this case. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by this Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Gina M. Castellano, and Andrew C. Adams are in charge of the prosecution.
Government contractor admits to charge involving the theft and sale of government propertyRead the Press Release
CLARKSBURG, WEST VIRGINIA - A Virginia man has admitted to the theft and sale of government property, Acting United States Attorney Betsy Steinfeld Jividen announced.
Richard Alan Millette, of Winchester, Virginia, age 30, pled guilty to one count of “Unauthorized Sale, Conveyance, and Disposition of Government Property.”
From 2011 to May 2017, Millette was a government contractor with the U.S. Department of State (DOS). At DOS, Millette worked as a special skills tactics instructor at the DOS Diplomatic Security Interim Training Facility, located at Summit Point, Jefferson County, West Virginia.
Millette admitted to acquiring ballistic vests and combat helmets valued at more than $16,000. He is accused of selling them online and trading them for other items. The crime occurred from March 2016 to March 2017.
Assistant U.S. Attorney Anna Z. Krasinski and U.S. Department of Justice Attorney Jennifer Ballantyne prosecuted the case on behalf of the government. The Department of State Office of Inspector General, led by Steve A. Linick, investigated this matter.
U.S. Magistrate Judge Robert W. Trumble presided.
Fourth Bandido Pleads Guilty to Federal Charge in Connection with the Murder of Hells Angel Anthony Benesh in 2006Read the Press Release
In San Antonio today, 35-year-old Bandido Outlaw Motorcycle Organization (OMO) San Antonio Centro Chapter member Norberto Serna, Jr. (aka “Hammer”) of San Antonio pleaded guilty to a federal charge in connection with the murder of Hells Angel Anthony Benesh in 2006 announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Austin Police Chief Brian Manley; and, San Antonio Police Chief William McManus.
Appearing before United States Magistrate Judge Elizabeth S. Chestney, Serna pleaded guilty to one count of Aiding and Abetting Using and Discharging a Firearm During and In Relation to a Crime of Violence, specifically Murder in Aid of Racketeering.
Court records allege that Benesh was attempting to start a Texas Chapter of the Hell’s Angels OMO in Austin, Texas in 2006. Members of the Bandidos OMO warned Benesh to cease his activities and recruitment, which Benesh ignored. Serna and others then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise. Bandidos National Sergeant at Arms Johnny Romo, Bandidos San Antonio Centro Chapter Sergeant at Arms Jesse James Benavidez and Bandidos Centro Chapter Member Robert Romo have all pleaded guilty to related federal charges for their roles in the incident.
Serna, who remains in federal custody, faces up to life in federal prison. Sentencing is scheduled for June 4, 2018, before Senior U.S. District Judge David A. Ezra in San Antonio.
The FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office are conducting this ongoing investigation.
Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Jose Coronado-Garcia, age 36, of Mexico, was previously deported from the United States to Mexico on four prior occasions, March 16, 2009, March 20, 2009, May 30, 2011 and December 25, 2015. He is alleged to have illegally re-entered the United States sometime after December 2015, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Jesus Vergara-Ponce, age 35, of Mexico, was previously deported from the United States to Mexico in January 2000. He is alleged to have illegally re-entered the United States sometime after January 2000, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.
Alix Masias-Serrano, age 43, of Honduras, was previously deported from the United States to Honduras in August 2008 and February 2009. He is alleged to have illegally re-entered the United States sometime after February 2009 and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Coronado-Garcia, Vergara-Ponce, and Masias-Serrano face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Antonio Mendez-Garcia, age 52, of Mexico, was previously deported from the United States to Mexico on five occasions, April 2003, March 2006, December 2006, June 2007, and August 2010. He is alleged to have illegally re-entered the United States sometime after August 2010, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers. In August 2010, he was convicted in the Middle District of Pennsylvania of illegal reentry by a previously deported alien, an offense which subjects him to enhanced penalties in the current case.
Because of Mendez-Garcia’s previous conviction, under federal law he faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Prosecution has been assigned to Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Four Albuquerque Residents Charged with Federal Conspiracy and Bank Fraud Charges Arising Out of Mail Theft SchemeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Inspector in Charge Keith Fixel of the Phoenix Division of the U.S. Postal Inspection Service (USPS) announced the arraignment this morning of four Albuquerque, N.M., residents in federal court on an indictment alleging conspiracy and bank fraud charges. The charges arise out of an alleged scheme to steal mail from USPS collection boxes at U.S. Post Offices in the Albuquerque area in July and Aug. 2017.
The four defendants, Jorge R. Cabrera, 19, Hector Lau, 21, Yarelys Marquez, 19, and Fernando Cairo-Rosell, 29, are charged with conspiracy and nine counts of bank fraud in a ten-count indictment, which was filed on Sept. 21, 2017. All four defendants entered not guilty pleas to the indictment during the arraignment hearings.
U.S. Postal Inspectors arrested the four defendants on Aug. 30, 2017, based on criminal complaints charging them with theft of mail and bank fraud charges. The criminal complaint alleged that in July and Aug. 2017, mail collection boxes at USPS stations in Albuquerque repeatedly were broken into and mail was stolen. The U.S. Postal Inspection Service initiated an investigation into the scheme after receiving complaints that checks deposited in the mail collection boxes had been stolen, altered and deposited into accounts allegedly held by the defendants.
According to the indictment, the four defendants participated in a conspiracy to commit bank fraud that began in July 2017 and continued until Aug. 2017, and operated in Bernalillo County, N.M. The indictment also charges the four defendants with committing bank fraud against four credit unions that maintain branches in Albuquerque. The indictment alleges that the defendants conspired to commit bank fraud by stealing checks that had been deposited in U.S. mail depositories, altering the checks, and attempting to pass the checks off as legitimate to banking institutions. The indictment alleges that as part of their bank fraud scheme, the defendants deposited checks, which had been altered to make them payable to members of their conspiracy and in amounts ranging from $500 to $4,754, into bank accounts held by members of the conspiracy.
If convicted, the defendants each face a statutory maximum penalty of five years in federal prison on the conspiracy charge and 30 years in prison on the bank fraud charges. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque offices of the U.S. Postal Inspection Service and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley.
Former South Carolina DJJ Lieutenant Pleads Guilty to Civil Rights ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Nicole Jenice Samples, age 35, of Columbia, pleaded guilty in federal court to two counts of deprivation of civil rights, in violation of Title 18, United States Code, Sections 242 and 2. United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose a sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Facts presented at the change of plea hearing established that on January 1, 2017, Nicole Jenice Samples directed the use of excessive force as punishment for two juveniles housed at the Department of Juvenile Justice (DJJ). In response to juveniles making noise, Samples, a Lieutenant at DJJ, ordered two of her subordinate correctional officers to apply mechanical restraints to the two juveniles, directing that the leg restraints be connected to the hand restraints, a practice known as “hogtying.” Samples physically assisted in the hogtying of at least one of the juveniles and oversaw the application of the restraints on both juveniles. At Samples’ direction, the juveniles were left in the hogtied position for over two hours as punishment and suffered pain. DJJ policy forbids the use of restraints as punishment and specifically forbids the practice of “hogtying.”
Ms. Drake stated that the maximum penalty Samples could receive is ten years imprisonment on each Section 242 offense, along with a fine of $250,000.00 and three years of supervised release.
This case was investigated by the Federal Bureau of Investigation and SLED at the request of, and with the assistance of, the Department of Juvenile Justice and Acting Director Freddie Pough. It is being prosecuted by Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office.
#####
Former NYPD Police Officer Sentenced to 66 Months in Prison for Conspiring to Engage in Sex Trafficking of A MinorRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, former New York City Police Department officer Eduardo Cornejo was sentenced to 66 months in prison, five years of supervised release, and sex offender registration, following his September 21, 2016 guilty plea to conspiracy to engage in sex trafficking of a minor. Cornejo was ordered to pay $5,000 in forfeiture. The sentence was imposed by United States District Judge Brian M. Cogan.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), and James P. O’Neill, Commissioner, NYPD.
“Cornejo conspired to engage in the sex trafficking of a 16-year-old girl during his off-duty time, a violation of his oath to protect the community and uphold the law,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners, this Office will continue to address and bring to justice those who occupy positions of trust at any level and who engage in criminal conduct.”“The subject in this case used information he knew from being a sworn member of law enforcement to elude officers who would know he was doing something illegal,” stated Assistant Director-in-Charge Sweeney. “He was aware of the laws, and continued to break them even after being arrested. We wear badges as law enforcement to serve and protect our communities, not to endanger and exploit children for financial gain.”
According to court documents, then-NYPD police officer Cornejo engaged in an interstate prostitution scheme that involved at least 10 different women. Cornejo transported the women to motels throughout the New York metropolitan area, including New Jersey and Long Island, often immediately upon completing a tour of duty with the NYPD. Judicially authorized interceptions of communications inside Cornejo’s vehicle confirmed the illegal purpose of his activities. For example, Cornejo stated, “The girls is at the [a motel] so it nice and clean, it’s picking up now it was alright last night.” Soon thereafter, he stated, “That might make it hot though, standing outside with a bunch of girls. . . . [Members of law enforcement] going to know what’s up real quick.”
In January 2016, members of law enforcement observed that at least one of the women transported by Cornejo (“Jane Doe”) appeared to be particularly young. Concerned about the possibility that Cornejo might be trafficking a minor, members of law enforcement interviewed Jane Doe shortly after members of law enforcement observed Cornejo transport her to a motel. Jane Doe presented an identification document reflecting that she had turned 18 years old approximately two months earlier. Further investigation revealed that Cornejo began transporting Jane Doe to participate in prostitution activity when she was just 16 years old and that she engaged in commercial sexual acts at Cornejo’s direction. In his post-arrest statement, Cornejo confirmed that he had transported Jane Doe for numerous months with the intent that she engage in prostitution.
Cornejo has been in custody since August 10, 2016, when Judge Cogan revoked Cornejo’s bond. After his arrest and release on bond, Cornejo had been continuing to promote prostitution by driving multiple women to motels throughout the New York metropolitan area.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant U.S. Attorney Alexander A. Solomon is in charge of the prosecution.
The Defendant:
EDUARDO CORNEJO
Age: 35
Staten Island, New YorkE.D.N.Y. Docket No. 16-CR-96 (BMC)
Former Mayor of Stillwater Sentenced to A Year and A Day in Prison for Tax Fraud ConspiracyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of KENNETH FRANK HARYCKI, 54, to a year and a day in prison for his involvement in a tax conspiracy. HARYCKI, who pleaded guilty to one count of conspiracy to defraud the United States in the ascertainment and collection of taxes on January 15, 2015, was sentenced today before U.S. District Judge Ann D. Montgomery in Minneapolis, Minn.
“Mr. Harycki, a former elected official and certified public accountant, consciously chose to assist a criminal conspiracy,” said Assistant U.S. Attorney Robert Lewis. “He later made the right choice to plead guilty and assist in the investigation. Today’s sentencing should serve as a reminder that anyone who attempts to cheat the tax system, regardless of their position or status, will be held accountable for their actions.”
According to his guilty plea and documents filed in court, during the course of the conspiracy, HARYCKI owned and operated two businesses that provided bookkeeping, payroll, and accounting services, including tax-related services, to clients. In mid-2007, the defendant began providing payroll services for Model Health Care (Model). HARYCKI quickly learned that while payroll taxes were being withheld from the wages of employees, those taxes were not being paid over to the government. HARYCKI learned, in fact, there was a standing order that the payroll withholdings not be paid to the government but instead be used for other purposes, including compensating the co-conspirators and their family members and funding other businesses operated by the co-conspirators.
According to the defendant’s guilty plea and documents filed in court, in February 2010, HARYCKI formed a company of his own, MKH Holdings, to assume control over bank accounts receiving Medicare and Medicaid funds the government paid for claims submitted by his co-conspirators’ companies. MKH Holdings furthered the conspiracy by causing funds falsely reported on income tax returns to be funneled to the co-conspirators and others. During the course of the conspiracy, HARYCKI used his business and accounting skills for the conspiracy as well, incorporating businesses and obtaining employer identification numbers and new bank accounts, in order to avoid payment of all taxes due and owing on income. In total, HARYCKI’S offense led to a criminal tax loss of more than $2 million.
On September 14, 2017, the operator of Model, THURLEE BELFREY, pleaded guilty in a related case to conspiracy to defraud the federal-state Medicaid program and failing to withhold and pay over payroll taxes for his employees. On the same day, ROYLEE BELFREY pleaded guilty to failing to withhold and pay over payroll taxes for employees at related companies.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, and Department of Health and Human Services Office of the Inspector General.
This case was prosecuted by Assistant U.S. Attorney Robert Lewis.
Defendant Information:
KENNETH FRANK HARYCKI, 54
Stillwater, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
Sentenced:
- 12 months and one day in prison
- Three years of supervised release
- $2,176,126.86 in restitution to the IRS
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Maryland Cabinet Secretary Indicted for Bribery ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury indicted Isabel FitzGerald, age 47, of Annapolis, Maryland, Kenneth Coffland, age 62, of Riva, Maryland, Steven Maudlin, age 59, of Indianapolis, Indiana, and James Pangallo, age 57, of Greenwood, Indiana, on charges related to a bribery conspiracy involving information technology contracts with the State of Maryland Department of Human Services, formerly known as the Department of Human Resources.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the six-count indictment, from February 2007 through December 2014, FitzGerald held several offices in the State of Maryland government, including Department of Human Resources (DHR), Chief Information Officer (CIO), Executive Consultant to the DHR Secretary, DHR Deputy Secretary of Operations, and the Secretary of the Department of Information Technology. In January of 2011, while serving as DHR CIO, FitzGerald incorporated Aeon Consulting and Technical Services Inc. (Aeon) in Maryland. In February 2012, she incorporated Aeon in Indiana. Between 2009 and 2013, Kenneth Coffland held various positions on DHR contracts including with a contractor identified in the indictment as Company #1. Coffland incorporated Blue Northern Consulting, LLC (“Blue Northern”) in November 2012.
Steven Maudlin was the CEO and majority shareholder of The Consultants Consortium Inc. (TCC), a small Indiana company that provided IT consulting services as a subcontractor. James Pangallo was the Chief Financial Officer, Principal, and shareholder in TCC.
In 2008, DHR awarded Company #1 two contracts through a competitive bidding process known as a Request for Proposal. One contract was a five-year, eight-month hosting contract that was worth up to approximately $129 million. The second contract was a five-year, six-month applications contract that was worth up to approximately $229 million.
According to the indictment, FitzGerald and Coffland received and agreed to receive a stream of financial benefits from Maudlin and Pangallo in exchange for FitzGerald’s performance of official acts for TCC’s benefit.
Benefits to FitzGerald and Coffland
The indictment alleges that FitzGerald and Coffland solicited and demanded that, at various different times, Maudlin and Pangallo pay Coffland and FitzGerald one-third of TCC’s profits on specified subcontracts with Company #1. The defendants agreed that, in order to conceal the nature of these payments, TCC would pay FitzGerald under the guise of consulting work performed by Aeon, and Coffland under the guise of consulting work performed by Blue Northern.
While FitzGerald served as a consultant to the Secretary of DHR, in order to conceal the nature of payments from TCC to FitzGerald, TCC agreed to pay Aeon for purportedly providing and supervising the work of two workers identified in the indictment as Person #1 and Person #2. However, both people had already been working under TCC’s supervision on that contract, and continued to be supervised by TCC employees, not by FitzGerald.
In November 2012, shortly before FitzGerald began work as DHR Deputy Secretary of Operations, she directed Maudlin to transfer the Aeon contract covering the work of Person #1 to Coffland via Blue Northern. In December 2012, TCC agreed to pay Blue Northern $20 per hour worked by Person #1. However, Coffland did not supervise Person #1, who continued to be supervised by TCC employees.
On February 25, 2013, Pangallo directed TCC to issue a $10,000 check to Blue Northern, and ordered a TCC employee to book the payment internally at TCC as consulting work.
Official Actions Taken By FitzGerald
The indictment alleges between October and December of 2011, FitzGerald and Mauldin negotiated an agreement whereby FitzGerald was compensated for using her influence to convince another Company #1 subcontractor on a $27.6 million DHR project (CARES Modernization) to further subcontract work under that project to TCC.
Between December 2011 and August 2013, FitzGerald allegedly caused Company #1 to issue a task order to TCC that had no specified work obligations in the approximate amount of $253,000 by threatening to use her influence to cause the DHR Secretary and Acting DHR CIO to withhold funding approval of the CARES Modernization project if Company #1 did not comply. She also caused Company #1 to give a fixed price subcontract to TCC worth approximately $23.72 million over six years by threatening to use her influence to cause DHR not to renew Company #1’s prime hosting contract if Company #1 did not comply. In addition, FitzGerald directed a Company #1 executive to hire Coffland as the Hosting Director on the hosting contract at an annual salary, including bonuses, of approximately $500,000.
FitzGerald concealed her and Coffland’s financial agreements with TCC from high-ranking personnel in the government of the State of Maryland and DHR with whom she worked, including the DHR Secretary and the Acting DHR CIO.
The maximum possible penalty for conspiracy is 5 years imprisonment, a $250,000 fine, and 3 years supervised release; for Bribery Involving Agent of Program Receiving Federal Funds, the maximum penalty is 10 years imprisonment, $250,000 fine, and 3 years supervised release; for false statements, the maximum penalty is 5 years imprisonment, $250,000 fine, and 3 years supervised release.
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 commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Sean R. Delaney and Jefferson M. Gray, who are prosecuting the case.
Former Johns Hopkins Physician Sentenced to One Year in Federal Prison for Fraud SchemeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Dr. Jean-Francois Geschwind, age 53, of Westport, Connecticut, to one year and one day in federal prison, followed by three years supervised released for four counts of mail fraud arising from a multi-year scheme to unlawfully obtain travel expense reimbursements from his former employer, the Johns Hopkins University School of Medicine. Judge Motz also ordered restitution of $583,484.31, which Geschwind paid in full. Geschwind was employed as a physician in the Division of Vascular and Interventional Radiology between 1998 and 2015.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation - Baltimore Field Office; and Marilyn J. Mosby, the State’s Attorney for Baltimore City.
According to his plea agreement, between 2007 and July 2015, Geschwind made material misrepresentations and omissions in travel expense statements that he submitted or caused to be submitted to the JHU-SOM, for the purpose of obtaining travel expense reimbursements to which he was not entitled. During this time period, Geschwind submitted multiple travel expense statements for purported business expenses, when he knew that the claimed expenses were personal, such as family vacations and meals. For example, during the summer of 2013, Geschwind obtained reimbursement from the JHU-SOM for a 13-day vacation to the United Kingdom and France by falsely representing that the he traveled to those locations to give lectures in connection with his work for the JHU-SOM. As a result of Geschwind’s material misrepresentations, the JHU-SOM issued three separate checks that included reimbursements for his family vacation.
Geschwind also obtained reimbursement from the JHU-SOM for expenses that he knew had already been paid, or would later be paid, by a second (and in some cases a third) entity. In seeking reimbursement for such expenses, Geschwind did not disclose to the JHU-SOM that he was seeking two (and in some cases three) reimbursements for the same expense.
For example, between July 1 and July 5, 2015, Geschwind traveled to Japan to attend the Asia Pacific Primary Liver Cancer Expert (APPLE) meeting. By the time he attended the APPLE meeting, Geschwind had joined the Yale School of Medicine faculty as Chair of the Department of Diagnostic Radiology. Prior to his departure for the APPLE meeting, Geschwind arranged for reimbursement of his round-trip airfare to Japan by Company No. 1, a life-sciences company based in France. Notwithstanding this arrangement, on May 8, 2015, Geschwind sought reimbursement for the same expense from the JHU-SOM but did not disclose that he had already sought reimbursement for his round-trip airfare from Company No. 1. As a result of this material omission, the JHU-SOM issued a check to Geschwind that included reimbursement for his round-trip airfare to and from Japan.
On or about June 22, 2015, Geschwind sought reimbursement from the Yale School of Medicine for the above-referenced round-trip airfare to Japan. Geschwind did not disclose to Yale that he had already arranged for payment of the same expense by Company No. 1, or that he had in fact been reimbursed for that expense by the JHU-SOM. On or about July 21, 2015, as a result of Geschwind’s material omissions, Yale University issued a check to Geschwind for the cost of the round-trip airline ticket.
In July of 2015, Company No. 1 initiated a wire transfer to Geschwind’s Bank of America checking account that included reimbursement for his round-trip airline ticket to Japan. Accordingly, as a result of the material omissions, Geschwind obtained three separate payments, from three separate entities, for the round-trip airfare to Japan in July of 2015.
Through the various methods identified above, Geschwind obtained money with an aggregate value of hundreds of thousands of dollars, in the form of travel expense reimbursements by the JHU-SOM.
Johns Hopkins investigators in the Office of Hopkins Internal Audit (OHIA) conducted an extensive audit of Geschwind’s reimbursement requests and upon discovering he had requested and received significant sums of inappropriate payments, they referred the case to law enforcement. Hopkins investigators worked closely with authorities to assist with their investigation.
Geschwind is scheduled to self-surrender on December 4, 2017.
Acting United States Attorney Stephen M. Schenning commended the FBI and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Peter J. Martinez and Special Assistant United States Attorney Alexander Huggins, who prosecuted the case.
Former Head of SoCal Software Firm and IT Executive at Australian Bank Charged in Bribery Scheme to Inflate Revenues and Trigger $98 Million Bonus Payment Related to Purchase of Software CompanyRead the Press Release
LOS ANGELES – A federal grand jury today returned an indictment that alleges the former head of Santa Monica-based ServiceMesh, Inc. paid bribes to former IT executives at Commonwealth Bank of Australia to approve millions of dollars in contracts that inflated ServiceMesh revenues and fraudulently caused Computer Sciences Corporation (CSC) to pay a nearly $100 million incentive bonus as part of CSC’s purchase of the cloud software company.
The 15-count indictment details a bribery and kickback scheme that developed over several years and involved two shell corporations.
The indictment charges Eric Pulier – the founder, CEO and largest shareholder of ServiceMesh – with orchestrating the international fraud scheme involving his payment of approximately $2.5 million in bribes to two senior technology executives at Commonwealth Bank of Australia (CBA). In exchange for the bribes, the indictment alleges, the IT executives facilitated $10.4 million in contracts for the sale of software from ServiceMesh to CBA in late 2013 and January 2014. The CBA contracts triggered an “Earnout” payment as part of a sale agreement with CSC that caused CSC to pay an additional $98 million to ServiceMesh shareholders, about $30 million of which went directly to Pulier.
The indictment also charges Jon Waldron, a former IT manager at CBA, with participating in the scheme by facilitating the approval of contracts with ServiceMesh in exchange for approximately $1.9 million in bribes, most of which was paid to him through a shell company in New Zealand.
Warrants for the arrest of Pulier, 50, of Los Angeles, and Waldron, 47, of Sydney, Australia, have been issued. Pulier is expected to surrender to authorities in the coming days. Waldron remains in Australia facing related charges brought by Australian authorities.
The 42-page indictment details an elaborate scheme in which Pulier agreed to pay bribes to Waldron and another CBA IT executive, Keith Hunter, in exchange for their assistance in facilitating contracts to help boost ServiceMesh revenue. The contracts were needed to push ServiceMesh revenues over $20 million – the threshold that triggered CSC paying the incentive bonus. As a result, CSC paid ServiceMesh shareholders, of which Pulier was the largest, an Earnout payment of $98 million in March 2014.
A portion of Pulier’s ServiceMesh shares were held by a company called TechAdvisors. The indictment alleges that after TechAdvisors received its Earnout payment, Pulier caused TechAdvisors to transfer $4.8 million to a purported nonprofit company named Ace, Inc., which was later renamed The Ace Foundation. Ace was headed by a childhood friend of Pulier, who transferred $2.5 million to accounts held by Waldron and Hunter in Australia, New Zealand and the United States.
The indictment filed today charges Pulier and Waldron with conspiracy to commit securities fraud and wire fraud, one count of securities fraud and four counts of wire fraud.
Pulier alone is further charged with six counts of interstate travel and use of interstate facility in aid of commercial bribery, obstruction of justice, and two counts of filing a false tax return. The obstruction of justice charge relates to Pulier’s alleged effort to influence a former ServiceMesh executive to provide false information to the FBI and Grand Jury about payments made by Pulier through TechAdvisors. The tax fraud charges relate to charitable deductions taken by Pulier for payments by Ace made to Waldron, Hunter, and others.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The statutory maximum penalties for the charges in the indictment are: 25 years in federal prison for the conspiracy and securities fraud counts, 20 years for each count of wire fraud, five years for each count of interstate travel in aid of commercial bribery, 10 years for the obstruction of justice count, and three years for each of the filing false tax return charges.
Hunter was previously charged in a two-count information with conspiracy to commit securities fraud and wire fraud.
The United States Securities and Exchange Commission today filed a civil action against Pulier and Waldron that charges them with securities fraud.
The criminal case stemming from the ServiceMesh fraud scheme is being investigated by the Federal Bureau of Investigation and IRS Criminal Investigation.
The United States Attorney’s Office expressed appreciation to the New South Wales Police Force, Fraud and Cybercrime Squad, for their assistance in this investigation.
This case is being prosecuted by Stephen A. Cazares and Scott Paetty of the Major Frauds Section.
Former Executive Director of New York City Non-Profit Organization Sentenced to Four Years in Prison for Corruption OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that KWAME INSAIDOO, the former executive director of United Block Association (“UBA”), a New York-based non-profit organization, was sentenced to 48 months in prison and his wife ROXANNA INSAIDOO was sentenced to 30 months in prison, in connection with their embezzlement of over $580,000 from UBA, defrauding their mortgage lender of approximately $200,000, and related crimes. They were convicted on May 2, 2017, following a one-week jury trial before United States District Judge Valerie E. Caproni, who also imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “As a Manhattan jury found, Kwame Insaidoo and Roxanna Insaidoo stole hundreds of thousands of dollars from a government-funded non-profit organization dedicated to serving senior citizens. The Insaidoos enriched themselves and their family with taxpayer money that was supposed to support four senior centers in Upper Manhattan. Now this husband-and-wife crime duo will serve time in prison for those crimes.”
In imposing sentence, Judge Caproni stated that the “message has to be sent” that “it is not acceptable to steal money from the City that is designed for charitable goals to line your own pockets.”
According to the Indictment, other filings in Manhattan federal court, and the evidence admitted at trial:
UBA was a non-profit organization headquartered in New York, New York, that was controlled by KWAME INSAIDOO, its former Executive Director. UBA had contracts with New York City through which it received taxpayer funds, including federal funds, to operate and provide healthy meals and programming to the elderly at four senior centers in Upper Manhattan.
As the jury found, KWAME INSAIDOO abused his authority as UBA’s Executive Director to embezzle, with the assistance of his wife, ROXANNA INSAIDOO, over $580,000 of UBA’s funds for his own benefit and that of his wife and son. KWAME INSAIDOO and ROXANNA INSAIDOO concealed their embezzlement by laundering the money, in part, through a shell company that they had created. KWAME INSAIDOO and ROXANNA INSAIDOO used the embezzled funds to pay for personal expenses, including the mortgage for their Long Island residence and the purchase of a Mercedes Benz and a Cadillac. They also wired more than $300,000 to family members living abroad.
In an effort to evade scrutiny regarding the embezzled funds, KWAME INSAIDOO repeatedly lied to the City, including to its auditors, in order to maintain UBA’s funding and to conceal the funds he and his wife had diverted to their shell company.
In 2011, KWAME INSAIDOO and ROXANNA INSAIDOO also engaged in a scheme to defraud their mortgage lender in connection with a modification of their mortgage under the federally-sponsored Home Affordable Modification Program, by underreporting their income and assets, including the hundreds of thousands of dollars they had embezzled from UBA. This scheme led to a write-off of almost $200,000 from KWAME INSAIDOO and ROXANNA INSAIDOO’s home mortgage.
* * *
In addition to the prison terms imposed today by Judge Caproni, KWAME INSAIDOO, 61, and ROXANNA INSAIDOO, 63, both of Bay Shore, Long Island, were ordered to forfeit a sum of $779,039.62.
Mr. Kim praised the outstanding investigative work of the New York City Department of Investigation and the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark and David Zhou are in charge of the prosecution.
Former Commercial Director of Essex Holdings Inc. Charged in $30 Million Ponzi Scheme and Separate $2.7 Million Scheme Related to South Carolina Development FundsRead the Press Release
The former Commercial Director of Essex Holdings, Inc., was charged in two separate fraud schemes totaling more than $33 million in fraudulently obtained funds. The first scheme involved nearly 100 investors who purchased $30 million of promissory notes purportedly secured by interests in iron ore mining in Chile. The second scheme involved unlawfully obtaining $1.2 million in economic development funds as well as valuable industrial property from the State of South Carolina.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Anthony Joseph Baker, 37, formerly a resident of Miami-Dade County, Florida, was charged with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and six counts of wire fraud, in violation of Title 18, United States Code, Section 1343. The case is assigned to United States District Judge Robert N. Scola in Miami. In related cases, Navin Shankar Subramaniam Xavier, a/k/a "Navin Xavier," 44, formerly of Miramar, was convicted in Case No. 16-20685-CR-DPG of related charges and was sentenced on May 16, 2017 to 180 months imprisonment. Charles E. Ashby, 46, of Pembroke Pines, was convicted in Case No. 17-20478 –CR-UU and is scheduled to be sentenced before U.S. District Judge Ursula Ungaro on October 17, 2017 in Miami.
According to documents filed in court, from October 2012 through May 2014, Xavier, Baker, Ashby and others operated Essex Holdings, Inc. (“Essex Holdings”) from an office in Miami Gardens. Xavier was the Chief Executive Officer, Baker was the Commercial Director and second most senior employee, and Ashby was the head of IT operations. Xavier, Baker and others raised more than $30 million from nearly 100 investors for supposed investments in sugar transportation and shipping, as well as iron ore mining in Chile. The conspirators used a false financial statement, forged documents, and false promises of fixed rates of return, to induce investors to invest with Essex Holdings. Most of the money was used for purposes other than what was promised, including to support lavish spending by the conspirators. Eventually, Essex Holdings used new investor money to pay old investors in a Ponzi-like fashion before the scheme collapsed. Evidence filed in court in a related criminal case showed that actual investor losses from the scheme exceeded $29 million.
The second scheme involved Xavier using Essex Holdings to obtain $1.2 million in payments and approximately $1.5 million worth of commercial real estate from the South Carolina Coordinating Council for Economic Development (“SCCCED”), a division of the South Carolina state government, that was supposed to be used to develop a dilapidated industrial property into a diaper plant and rice packaging facility. According to documents filed in court, Baker provided false financial documentation to SCCCED in order to obtain the contract. In order to get paid under the contract, according to the Indictment, Baker and Ashby participated in the falsification of invoices and bank statements to make it appear that Essex Holdings had performed work at the site and paid a contractor for that work. These false documents were then provided to South Carolina authorities so that the conspirators could get paid under the contract. Funds from the South Carolina fraud were then diverted to the personal benefit of the conspirators, and were used to make payments in relation to the Essex Holdings iron-ore scheme.
Mr. Greenberg commended the investigative efforts of the FBI, the Miami Regional Office of the U.S. Securities and Exchange Commission, and the South Carolina Office of Inspector General, for assisting with this matter. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison W. Lehr.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Chief Engineer for Macomb County Public Works Department Pleads Guilty to Bribery ConspiracyRead the Press Release
A former Chief Engineer for Macomb County’s Public Works Department, James Pistilli, 68, of Holly, pleaded guilty today to conspiracy to commit bribery, 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.
The charge to which Pistilli pleaded guilty occurred in 2014. At that time, Pistilli worked for a private engineering firm. Pistilli conspired with fellow engineer Paulin Modi and others to pay a $2,000 cash bribe to Steven Hohensee, who was then the Superintendent of the Department of Public Works for Washington Township. Unbeknownst to Pistilli, Hohensee was cooperating with the FBI.
Pistilli is scheduled to be sentenced on January 30, 2018 at 1:30 p.m., and faces up to 5 years’ imprisonment and a fine of $250,000.
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
Florida Resident Sentenced to 7 Years in Federal Prison for Role in Stock "Pump and Dump" SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAMIAN DELGADO, also known as “Michael Neumann,” 44, of Orlando, Florida, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 84 months of imprisonment, followed by three years of supervised release, for his role in a securities fraud scheme.
According to court documents and statements made in court, between approximately 2009 and July 2016, DELGADO conspired with others, including Christian Meissenn and William Lieberman, to defraud investors through a stock “pump and dump” scheme. DELGADO and his co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others. They included Terra Energy Resources Ltd. (stock symbol “TRRE”); Mammoth Energy Group, Inc. (stock symbol “MMTE”), a company that later became Strategic Asset Leasing Inc. (stock symbol “LEAS”); Trilliant Exploration Corporation (stock symbol “TTXP”); Hermes Jets, Inc. (stock symbol “HRMJ”), which later became Continental Beverage Brands Corporation (stock symbol “CBBB”); Dolat Ventures, Inc. (stock symbol “DOLV”), and Fox Petroleum, Inc. (stock symbol “FXPT”).
DELGADO used pseudonyms in his communications with investors in order to conceal his prior felony convictions and his permanent bar by the Securities and Exchange Commission from participating in any offering of penny stocks. His numerous misrepresentations induced investors to purchase securities, thus causing the share price of the securities to become artificially inflated. Certain of DELGADO’s co-conspirators then sold their own preexisting positions in the securities at a profit. They then allowed the price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.
DELGADO received approximately 25 percent of all money that he induced individuals to invest. His personal gain from the scheme totaled $346,652.18. DELGADO disguised the income by having the funds flow through the trust accounts of various attorneys, including Corey Brinson in Connecticut, to bank accounts in the name of DELGADO’s wife, his stepdaughter and various shell entities he and his wife controlled. DELGADO’s failure to pay taxes on this income resulted in a loss of $54,080 to Internal Revenue Service.
On May 12, 2017, DELGADO pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion.
Judge Meyer will issue a restitution order after further submissions by the parties. In addition to making restitution to his victims, DELGADO is required to pay back taxes, interest and penalties to the Internal Revenue Service.
DELGADO, who is released on bond, was ordered to report to prison on November 8.
On January 20, 2017, Brinson, of Hartford, pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity. On April 13, 2017, he was sentenced to 36 months of imprisonment.
Meissenn, Lieberman and two other individuals involved in this scheme have pleaded guilty to conspiracy and tax offenses and await sentencing.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Peter S. Jongbloed.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Felon in Possession of a Gun Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Terrance Dees, 34, of Mobile, was sentenced yesterday in federal court on a charge involving his illegal possession of two firearms. The indictment alleged and Dees admitted that he had three prior convictions for drug felonies when the authorities found him in possession of the guns. Court documents reflect that Mobile police executed a search warrant at Dees’ residence where they found marijuana, pills and the guns. Dees pled guilty to the gun charge in December of 2016.
United States District Court Judge Kristi K. Dubose sentenced Dees to 60 months imprisonment, to be followed by a three-year term of supervised release. Dees will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, but the judge ordered that Dees pay the mandatory $100 special assessment.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Felon from Socorro Arraigned on Federal Commercial Robbery and Firearms Charges Arising Out of Aug. 29, 2017 Crime SpreeRead the Press Release
ALBUQUERQUE – Martin Garcia, 37, of Socorro, N.M., was arraigned this morning on a five-count indictment charging him with violating the Hobbs Act and federal firearms laws. The charges in the indictment arise out of an Aug. 29, 2017 crime spree during which Garcia allegedly robbed two commercial businesses at gunpoint, attempted to run over an officer, and shot a firearm in the direction of an officer who was trying to apprehend him. Garcia entered a not guilty plea to the indictment.
The indictment, which was filed on Sept. 21, 2017, charges Garcia with violating the Hobbs Act by robbing two Albuquerque-area businesses engaged in interstate commerce, a wireless communications service provider and a pizza restaurant, at gunpoint on Aug. 29, 2017. It also charges Garcia with brandishing a firearm during the first robbery and discharging a firearm during the second robbery, and with being a felon in possession of a firearm. The indictment alleges that Garcia committed the five crimes in Bernalillo County.
According to court filings, Garcia robbed two employees of a wireless communications service provider at gunpoint on Aug. 29, 2017, and robbed two employees at a pizza restaurant at gunpoint later that same day. Following the second robbery, a high-speed pursuit occurred as officers of the Albuquerque Police Department (APD) attempted to apprehend Garcia. During the pursuit, Garcia allegedly rear-ended a civilian vehicle, attempted to run over an officer who was deploying a spike strip across the road, and discharged a firearm. Officers arrested Garcia after he crashed his vehicle and ran into an abandoned residence. Following the arrest, officers allegedly seized a loaded firearm from a closet in the abandoned residence, a shell casing on the floorboard of the vehicle Garcia had been driving, and a second shell casing on the ground near the driver’s side door of the vehicle.
The FBI arrested Garcia on a federal criminal complaint on Sept. 8, 2017, and the related state charges subsequently were dismissed in favor of federal prosecution. Garcia remains in federal custody pending trial based on judicial findings that he poses a risk of flight and a danger to the community.
If convicted on the Hobbs Act robbery charges, Garcia faces a statutory maximum penalty of 20 years of imprisonment. If convicted on the felon in possession of a firearms charge, Garcia faces a statutory maximum sentence of ten years of imprisonment unless he is deemed to be an armed career criminal, in which case, he faces an enhanced sentence of not less than 15 years of imprisonment. Garcia also faces up a mandatory minimum of seven years of imprisonment for brandishing a firearm in relation to the first robbery and a mandatory minimum of 25 years of imprisonment for discharging a firearm in relation to and during the flight from the commission of the second robbery; these sentences must be served consecutive to any sentence imposed on the other charges.
Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
East Texas Men Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – Two East Texas men were sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Quentin Leonta Brown, 40, of Gilmer, Texas, pleaded guilty on May 30, 2017, to conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine and was sentenced to 144 months in federal prison on Sep. 26, 2017, by U.S. District Judge Thad Heartfield.
Saihaine Nijel Freeman, 23, of Longview, Texas, pleaded guilty on May 30, 2017, to possession with intent to distribute crack cocaine and was sentenced to 57 months in federal prison on Sep. 26, 2017, by Judge Heartfield.
According to information presented in court, on Jan. 18, 2017, a federal grand jury returned an indictment charging Brown and Freeman with multiple drug trafficking and firearms violations.
This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety, the Gregg County CODE Unit and the Longview Police Department. This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby
East Texas Men Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – Two East Texas men were sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Quentin Leonta Brown, 40, of Gilmer, Texas, pleaded guilty on May 30, 2017, to conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine and was sentenced to 144 months in federal prison on Sep. 26, 2017, by U.S. District Judge Thad Heartfield.
Saihaine Nijel Freeman, 23, of Longview, Texas, pleaded guilty on May 30, 2017, to possession with intent to distribute crack cocaine and was sentenced to 57 months in federal prison on Sep. 26, 2017, by Judge Heartfield.
According to information presented in court, on Jan. 18, 2017, a federal grand jury returned an indictment charging Brown and Freeman with multiple drug trafficking and firearms violations.
This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety, the Gregg County CODE Unit and the Longview Police Department. This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby
East Stroudsburg Man Convicted of Assaulting and Fleeing from Federal Park RangerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Damari Roulhac, age 26, of East Stroudsburg, Pennsylvania, was convicted on September 26, 2017, of charges arising from the hit and run of a United States Park Ranger. The two-day trial was held before United States District Court Judge James M. Munley in Scranton.
According to United States Attorney Bruce D. Brandler, the jury returned the guilty verdict after approximately three hours of deliberation. Roulhac was charged with and convicted of one count of assaulting a law enforcement official, and one count of fleeing from a law enforcement official.
The evidence presented during the trial showed that on the evening of July 1, 2016, United States Park Rangers patrolling the Delaware Water Gap National Recreation Area, encountered Roulhac and ordered him to stop his vehicle. Roulhac refused to obey the Rangers’ instructions and accelerated his vehicle towards one of the Rangers, causing him to jump out of the way. When the Ranger then attempted to detain Roulhac, he accelerated again, striking the Ranger with the vehicle while fleeing the scene of the incident.
Roulhac was able to evade apprehension on July 1, 2016. However, Rangers tracked him down days later, at the Pike County Courthouse, when Roulhac was sentenced for an unrelated DUI conviction.
The case was investigated by Rangers from the National Park Service. Assistant United States Attorneys Phillip Caraballo and Evan Gotlob prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The combined maximum penalty under federal law is 10 years of imprisonment. There is also a term of supervised release following imprisonment, and up to $250,000 in fines. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
District Court Enters Permanent Injunction Against Illinois Caviar Supplier to Prevent Distribution of Adulterated FoodRead the Press Release
WASHINGTON – A federal court in Illinois permanently enjoined a Metropolis, Illinois caviar supplier from distributing adulterated food, the Department of Justice announced today.
In a complaint filed on Sept. 20 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Mary Parrish, doing business as Fort Massac Fish Market, violated the Federal Food, Drug, and Cosmetic Act. According to the complaint, the defendant caused ready-to-eat caviar to become adulterated by being prepared, packed, or held under insanitary conditions and by failing to comply with seafood Hazard Analysis and Critical Control Point regulations, which are designed to mitigate food safety hazards associated with the processing of fish and fishery products.
"Consumers should be able to trust that their food is produced under safe and sanitary conditions," said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. "Where food manufacturers prepare food using substandard practices, the Department of Justice will work aggressively with the FDA to enforce our nation’s food safety laws."
The complaint, filed with the U.S. District Court for the Southern District of Illinois, alleged that two FDA inspections of Fort Massac in 2016 revealed poor sanitation practices, including failures to sanitize hands, utensils, and food surfaces; insect residue throughout the building; and a pet dog in the facility. According to the complaint, Parrish also failed to ensure the temperature of ready-to-eat caviar remained at a level low enough to control Clostridium botulinum growth and toxin formation, which can cause botulism. The complaint states that FDA warned Parrish of these violations in April 2016, but observed similar deficiencies during a December 2016 inspection.
"Consumers should be able to trust that the food they buy is safe," said U.S. Attorney Donald S. Boyce for the Southern District of Illinois. "We will continue to work with the FDA to combat and deter conduct that leads to the distribution of contaminated food."
"By violating food safety regulations, Fort Massac Fish Market put people at unnecessary risk for serious food poisoning," said FDA Associate Commissioner for Regulatory Affairs Melinda K. Plaisier. "The FDA took action to protect public health by requiring that the
defendant cease operations until they can demonstrate that they can produce food that meets important safety requirements."
The defendant agreed to be bound by a consent decree of permanent injunction. As part of that settlement, Parrish stated that she no longer processes or distributes food. Under the terms of the consent decree as entered by the court, Parrish may not resume such activity before taking steps to ensure the safety of her food and receiving FDA authorization.
This matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Nicholas Biersbach of the U.S. Attorney’s Office for the Southern District of Illinois, with the assistance of Associate Chief Counsel for Enforcement Yen Hoang of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Illinois, visit its website at https://www.justice.gov/usao-sdil.
District Court Enters Permanent Injunction Against Illinois Caviar Supplier to Prevent Distribution of Adulterated FoodRead the Press Release
A federal court in Illinois permanently enjoined a Metropolis, Illinois caviar supplier from distributing adulterated food, the Department of Justice announced today.
In a complaint filed on Sept. 20 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Mary Parrish, doing business as Fort Massac Fish Market, violated the Federal Food, Drug, and Cosmetic Act. According to the complaint, the defendant caused ready-to-eat caviar to become adulterated by being prepared, packed, or held under insanitary conditions and by failing to comply with seafood Hazard Analysis and Critical Control Point regulations, which are designed to mitigate food safety hazards associated with the processing of fish and fishery products.
“Consumers should be able to trust that their food is produced under safe and sanitary conditions,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Where food manufacturers prepare food using substandard practices, the Department of Justice will work aggressively with the FDA to enforce our nation’s food safety laws.”
The complaint, filed with the U.S. District Court for the Southern District of Illinois, alleged that two FDA inspections of Fort Massac in 2016 revealed poor sanitation practices, including failures to sanitize hands, utensils, and food surfaces; insect residue throughout the building; and a pet dog in the facility. According to the complaint, Parrish also failed to ensure the temperature of ready-to-eat caviar remained at a level low enough to control Clostridium botulinum growth and toxin formation, which can cause botulism. The complaint states that FDA warned Parrish of these violations in April 2016, but observed similar deficiencies during a December 2016 inspection.
“Consumers should be able to trust that the food they buy is safe,” said U.S. Attorney Donald S. Boyce for the Southern District of Illinois. “We will continue to work with the FDA to combat and deter conduct that leads to the distribution of contaminated food.”
“By violating food safety regulations, Fort Massac Fish Market put people at unnecessary risk for serious food poisoning,” said FDA Associate Commissioner for Regulatory Affairs Melinda K. Plaisier. “The FDA took action to protect public health by requiring that the defendant cease operations until they can demonstrate that they can produce food that meets important safety requirements.”
The defendant agreed to be bound by a consent decree of permanent injunction. As part of that settlement, Parrish stated that she no longer processes or distributes food. Under the terms of the consent decree as entered by the court, Parrish may not resume such activity before taking steps to ensure the safety of her food and receiving FDA authorization.
This matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Nicholas Biersbach of the U.S. Attorney’s Office for the Southern District of Illinois, with the assistance of Associate Chief Counsel for Enforcement Yen Hoang of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Illinois, visit its website at https://www.justice.gov/usao-sdil.
Department of Justice Awards more than $1.1 Million to Programs to Help Protect Washington Children from Sexual ExploitationRead the Press Release
The Department of Justice is sending more than $1.1 million to programs in Washington State that protect children from sexual exploitation, announced U.S. Attorney Annette L. Hayes. The largest grant, just over $450,000 will go to the Seattle Internet Crimes Against Children Task Force (ICAC), a Seattle Police based organization that assists with investigations across the region.
“Our ICAC task force in Western Washington is a critical tool in stopping the sexual exploitation of children,” said U.S. Attorney Annette L. Hayes. “These grant dollars will provide cutting edge software and training for detectives and forensic investigators who work every day to identify those using the internet to abuse and sexually molest our children.”
In 2016, ICAC task forces across the country conducted more than 61,000 investigations and about 78,000 forensic exams, which led to more than 9,300 arrests.
In addition to the ICAC funds, three Indian Tribes and Washington State received grants to assist with programs to monitor and track sex offenders under the Adam Walsh Child Protection and Safety Act of 2006. The grants include:
- $292,711 to the Skokomish Indian Tribe to implement the Sex Offender Notification Act (SORNA).
- $228,850 to the Nooksack Tribe for officer training on SORNA and on responding to incidents involving sex offenses.
- $35,081 to the Port Gamble S’Klallam Tribe to replace equipment and provide training for those working in sex offender notifications.
- $145,918 to Washington State to enhance sex offender notification programs.
The Office of Justice Programs (OJP), headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.
DOJ, EPA Team Receive Top Honors for Public ServiceRead the Press Release
Today members of the Department of Justice and the Environmental Protection Agency (EPA) will receive one of the most prestigious awards for their achievements in public service.
Senior Trial Attorney Josh Van Eaton of the Justice Department’s Environment and Natural Resources Division (ENRD), Director Phillip Brooks of the EPA’s Air Enforcement Division, and Director Byron Bunker of the EPA’s Compliance Division will be honored with the Samuel J. Heyman Service to America Medal (Sammies) as the Federal Employees of the Year.
“The investigation and trial team in the Volkswagen case, from both the Justice Department and EPA, put forth exemplary efforts and achieved results that are worthy of this prestigious award,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “We are particularly proud that ENRD attorney Josh Van Eaton is being recognized at the ceremony with this well deserved honor.”
Van Eaton, Brooks, and Bunker headed an interagency and intergovernmental team made up of scientists, engineers, and attorneys that investigated and built the landmark civil case against German automaker Volkswagen for violations of U.S. environmental laws. Volkswagen’s violations included the installation of software used to fool federal and state regulators, and selling diesel vehicles that did not meet U.S. pollution standards.
“Volkswagen’s prolonged deception and subsequent cover-up really offend the moral compass,” Van Eaton said. “This was an opportunity to do something historic and also achieve a just result for the environment and our country and I am proud to say our team did just that.”
With Van Eaton leading civil litigation, Bunker directing EPA’s office that conducts tests for compliance with clean air regulations, and Brooks leading the EPA office of air quality enforcement, their teams were able to develop comprehensive, long term, and environmentally meaningful terms of settlement.
Through their coordination and persistent negotiations, Volkswagen agreed to the largest legal settlement ever secured against a car manufacturer. The settlement includes the largest ever civil penalty under the Clean Air Act and programs to remediate environmental harm, buy back offending cars, and compensate car owners.
Correctional Officer Charged with Violating an Inmate's Civil RightsRead the Press Release
PANAMA CITY, FLORIDA – Michael J. Baxter, 49, of Grand Ridge, Florida, was arraigned today in the U.S. District Court in Panama City after a federal grand jury returned an indictment, unsealed today, charging him with falsifying records and depriving an inmate of his constitutional rights. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, in July 2015, Baxter, while acting as a state correctional officer at the Apalachee Correctional Institution, assaulted an inmate, resulting in bodily injury. The indictment further alleges that, in July 2015, Baxter knowingly falsified an incident report to obstruct the investigation.
The trial is scheduled for December 4, 2017, at 8:15 a.m.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The case is being investigated by the Federal Bureau of Investigation, the Florida Department of Corrections – Office of Inspector General, and the Florida Department of Law Enforcement. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Convicted Heroin Dealer Pleads Guilty to Trafficking Heroin and Deadly FentanylRead the Press Release
PITTSBURGH – Henry T. Little-Proctor a/k/a “Bundles”, of McKeesport, Pennsylvania, pleaded guilty in federal court, on September 26, 2017, to multiple charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
Henry T. Little-Proctor a/k/a Bundles, age 27, formerly of McKeesport, Pennsylvania, pleaded guilty to five counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Little-Proctor conspired to distribute and possessed with intent to distribute both heroin and the even more potent synthetic opiate fentanyl, from late 2015 through July 20, 2016. Specifically, the investigation revealed that Little-Proctor was involved with a fentanyl sale on July 13, 2016, and a heroin sale on July 18, 2016. DEA then executed a federal search warrant on July 20, 2016 at a residence utilized by Little-Proctor. There, federal agents located Full Metal Jacketed ammunition for a .223 Rem caliber assault-style rifle and .22 caliber ammunition, as well as 25 “bundles” (250 stamp bags) of heroin. A receipt for the purchase of the .223 Rem caliber ammunition from Gander Mountain was located in the residence and showed that it was purchased on May 14, 2016, along with two extended length magazines for a AR-15 assault-style rifle and a $100 tactical light. The firearms themselves have yet to be located.
Federal law prohibits a person convicted of a prior felony offense from possessing either a firearm or ammunition and the Court was advised that Little-Proctor had been convicted of multiple crimes, including two prior convictions for heroin dealing.
The defendant specifically admitted to selling the fentanyl that caused the July 2016 death of a young woman.
Judge Cathy Bissoon scheduled sentencing for February 7, 2018, at 2:15 p.m. and remanded the defendant back to the custody of the United States Marshal Service pending the sentencing. The Court ordered a Pre-Sentence Report to be prepared by the United States Probation Office detailing the defendant’s background including his criminal, family, educational and work histories in order to determine if the proposed sentence of 10 years in prison, at least 6 years of Supervised Release and restitution to the victim’s family should be approved by the Court.
Assistant United States Attorney Ross E. Lenhardt, of the Violent Crime Section of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration and law enforcement officers from the Duquesne Police Department, Homestead Police Department, and Allegheny County Sheriff’s Office conducted the investigation that led to the prosecution of Little-Proctor.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal, state, and local agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Columbia Wal-Mart Cashier Guilty of Passing Counterfeit MoneyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Courtney Thomas, age 22, of Columbia, pled guilty in federal court in Columbia to Conspiracy, a violation of Title 18, United States Code, § 371. United States District Judge Mary G. Lewis accepted the guilty plea and will sentence her at a later date.
On multiple dates in October 2014, Wal-Mart cashier Courtney Thomas accepted a total of $4,850 in counterfeit money from her co-defendant. Her co-defendant would call or text to learn what register Thomas was working at the Killian Road location. He then went through her line and purchased items of nominal value, paying for them with the counterfeit money. Thomas accepted the counterfeit money and loaded the remaining balance onto Visa cards for their mutual benefit.
Ms. Drake stated the maximum statutory penalty faced by Thomas is imprisonment for five years and a fine of $250,000.
The United States Secret Service, assisted by the Richland County Sheriff’s Office, investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
#####
Cleveland man indicted for firing shotgun in Euclid carjackingRead the Press Release
A Cleveland man was indicted in federal court for firing a shotgun during a carjacking in Euclid, law enforcement officials said.
Cody M. Coats, 25, was charged in a three-count indictment with carjacking, discharging a firearm during a crime of violence and being a felon in possession of a firearm.
Coats used an Itahca short-barreled shotgun when he carjacked someone and stole their 2005 Chrysler Crossfire outside a Euclid bar on Aug. 14, 2017, according to the indictment.
He ultimately crashed the car on East 222nd Street near Lakeshore Boulevard following a police chase and was arrested.
Coats possessed a shotgun and 20 12-gauge shotgun shells despite a prior conviction for burglary, according to the indictment.
“In the course of committing a robbery, this defendant fired a shotgun and crashed a stolen car near a busy intersection,” U.S. Attorney Justin E. Herdman said. “We will work with all of our law enforcement partners to ensure violent individuals with firearms cannot prey on law-abiding citizens.”
“ATF is committed to combating gun violence in our communities,” said Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division. “We will continue to work with our law enforcement partners, including the Euclid Police Department, to arrest violent criminals and make our communities safer.”
“We are pleased that the U.S. Attorney’s Office has adopted this case,” Euclid Police Chief Scott Meyer said. “The officers and detectives of the Euclid Police Department did an outstanding job with the apprehension and investigation. We must all work together to send the message that violent crime will not be tolerated in our communities.”
This case was investigated by the ATF and Euclid Police Department. It is being prosecuted by Assistant U.S. Joseph M. Pinjuh.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violations.
An indictment is only a charge 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.
California Man Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Jamell Damian Harris, Jr., 38, of Los Angeles, Calif., pled guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office
The DEA arrested Harris in July 2017, after seizing approximately 470 grams (1.04 pounds) of heroin from him during an interdiction investigation at the Amtrak Train Station in Albuquerque. The criminal complaint setting forth the charge against Harris indicated that the heroin was contained in a bundle that was concealed in a suitcase belonging to Harris’ travel companion.
Harris subsequently was indicted on Aug. 8, 2017, and was charged with conspiracy and possession of heroin with intent to distribute on July 13, 2017, in Bernalillo County, N.M.
During today’s change of plea hearing, Harris pled guilty to Count 2 of the indictment charging him with possession of heroin with intent to distribute. In entering the guilty plea, Harris admitted transporting approximately 390.90 grams of heroin from Victorville, Calif., to Albuquerque on a on the Amtrak train by concealing the heroin in a bundle contained inside a shopping bag of men’s clothing in a suitcase belonging to another person with whom Harris was traveling. Harris further admitted that he intended to give the heroin to another individual for further distribution once he reached his final destination of Chicago.
At sentencing, Harris faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Buffalo Man Who Led Police on High Speed Chase Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Amani Johnson, 21, of Buffalo, NY, who was convicted of possession with intent to distribute crack cocaine, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A, Wolford.
Assistant U.S. Attorney Patricia Astorga, who handled the prosecution of the case, stated that in the early morning hours of August 5, 2016, Buffalo Police officers received a report of a shooting. A vehicle matching the description of a vehicle that the officers had just observed driving around slowly was reported as being involved in the shooting. A short time later, the officers again saw the same vehicle, a white Ford Fusion, run a stop sign without coming to a complete stop. The officers pulled over the vehicle, which was being driven by the defendant. As officers attempted to communication with Johnson, he drove away from the traffic stop at a high rate of speed. The officers engaged in a high-speed chase of the vehicle for several city blocks. The vehicle then crashed into a large tree and the defendant and three passengers ran from the vehicle. Johnson was taken into custody a short distance from the vehicle.
A loaded revolver was recovered in a garbage can near the car crash and a short distance from where the defendant was apprehended. More than 50 bags of crack cocaine were found in the defendant's pockets.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Brooke County man sentenced for tax fraudRead the Press Release
WHEELING, WEST VIRGINIA – Vaughn C. Hone, Jr., of Wellsburg, West Virginia, was sentenced to 12 months incarceration for failing to file tax returns, Acting United States Attorney Betsy Steinfeld Jividen announced.
Hone, age 55, pled guilty to one count of “Failure to File a Personal Income Tax Return for Tax Year 2010” and one count of “Failure to File a Personal Income Tax Return for Tax Year 2011” in March 2017. Hone admitted to failing to file income tax in 2010 and 2011 in Brooke County.
Hone was also ordered to pay $170,066 in restitution.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Internal Revenue Service investigated.
U.S. District Judge John Preston Bailey presided.
Bridgeport Heroin Trafficker Sentenced to 70 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALBERTO COLBERG, 45, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 70 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police into a drug trafficking organization led by Wilfredo Gutierrez, also known as “Bean” and “Big Pun,” and his brother, Bobby Gutierrez, also known as “B.O.” The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that Wilfredo Gutierrez, Bobby Gutierrez and others, including COLBERG, conspired to distribute heroin in Fairfield County.
In January and February 2016, investigators made several controlled purchases of heroin from COLBERG. In addition, COLBERG was recorded on prison calls speaking to Wilfredo Gutierrez while Gutierrez was incarcerated. The recordings confirmed that COLBERG helped run the Gutierrez drug trafficking operation while Gutierrez was in prison, or was in a halfway house and his movements were restricted. A wiretap also confirmed that COLBERG assisted Bobby Gutierrez’s narcotics trafficking activities.
As part of his sentence, COLBERG was ordered to forfeit $7,081 that was seized from his residence.
COLBERG has been detained since his arrest on May 27, 2016. On January 3, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin.
Nine individuals were charged as a result of the investigation. All pleaded guilty.
On March 16, 2017, Wilfredo Gutierrez was sentenced to 180 months of imprisonment and, on April 24, 2017, Bobby Gutierrez was sentenced to 160 months of imprisonment. Bobby Gutierrez also was ordered to forfeit $171,462 in cash.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Heather Cherry.
Benin Man Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
A Republic of Benin man unlawfully residing in Philadelphia, Pennsylvania was sentenced today to 48 months in prison, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
Abdou Koudos Adissa was convicted on March 31 of conspiring to commit access device fraud following a jury trial in the Eastern District of Pennsylvania. According to the indictment and evidence presented at trial, from February through June 2014, Adissa was engaged in a conspiracy in which stolen identities were used to file tax returns claiming refunds with the Internal Revenue Service (IRS). Co-conspirators filed fraudulent tax returns seeking more than $800,000 in refunds, which were loaded onto Green Dot prepaid debit cards and sent via Western Union to Nigeria. During a search of the apartment Adissa shared with a co-conspirator, special agents found 106 Green Dot cards in Adissa’s room. Adissa registered the Green Dot cards using stolen IDs and provided his co-conspirators with the direct deposit information related to the cards so that fraudulently obtained refunds could be directed to them. According to the evidence produced at trial, he called Western Union 63 times in three months to facilitate transferring these fraudulent refunds to Nigeria.
In addition to the term of prison imposed, U.S. District Court Judge Gene E. K. Pratter ordered Adissa to serve three years of supervised release and to pay $252,840 in restitution to IRS. Adissa is pending immigration removal proceedings.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney David J. Ignall and Trial Attorney Carl F. Brooker, IV of the Tax Division, who prosecuted the case.
Benin Man Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
WASHINGTON – A Republic of Benin man unlawfully residing in Philadelphia, Pennsylvania was sentenced today to 48 months in prison, announced Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania. And Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Abdou Koudos Adissa was convicted on March 31 of conspiring to commit access device fraud following a jury trial in the Eastern District of Pennsylvania. According to the indictment and evidence presented at trial, from February through June 2014, Adissa was engaged in a conspiracy in which stolen identities were used to file tax returns claiming refunds with the Internal Revenue Service (IRS). Co-conspirators filed fraudulent tax returns seeking more than $800,000 in refunds, which were loaded onto Green Dot prepaid debit cards and sent via Western Union to Nigeria. During a search of the apartment Adissa shared with a co-conspirator, special agents found 106 Green Dot cards in Adissa’s room. Adissa registered the Green Dot cards using stolen IDs and provided his co-conspirators with the direct deposit information related to the cards so that fraudulently obtained refunds could be directed to them. According to the evidence produced at trial, he called Western Union 63 times in three months to facilitate transferring these fraudulent refunds to Nigeria.
In addition to the term of prison imposed, U.S. District Court Judge Gene E. K. Pratter ordered Adissa to serve three years of supervised release and to pay $252,840 in restitution to IRS. Adissa is pending immigration removal proceedings.
Acting U.S. Attorney Lappen and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney David J. Ignall and Trial Attorney Carl F. Brooker, IV of the Tax Division, who prosecuted the case.
Baltimore Man Convicted of Murdering A Witness in Exchange for Money and DrugsRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – Baltimore, Maryland – On September 26, 2017, a jury convicted Troy Allen Lucas a/k/a “Troy Madron,” age 49, of Southwest Baltimore, Maryland of charges relating to the murder-for-hire of Robert Long, who was a cooperating witness in a case pending in the Circuit Court for Baltimore City.
The conviction was announced by the Acting United States Attorney for the District of Maryland Steven M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“This investigation is the final chapter in an extended federal investigation resulting in several convictions and the exoneration of an innocent man who was wrongly convicted and sentenced to life in state prison,” said Acting United States Attorney Stephen M. Schenning.
According to evidence presented at the two-week trial, Lucas was a member of "Dead Man Inc." (DMI), a criminal street and prison gang. Lucas symbolized his allegiance to DMI while in prison in 2007 by having a large tattoo of a hangman’s noose around his neck and on his chest.
Jose Morales solicited Lucas and his now deceased brother to kill Morales’s employee, Robert Long, in order to retaliate for Long’s cooperation with the police and to prevent Long from testifying against Morales. Morales paid Lucas in cash and cocaine to kill Long. The federal case focused on the use of cellular telephones with the intent to have Long murdered and the evidence showed that Lucas and Morales used cell phones to contact one another regarding Long’s cooperation and Long’s whereabouts. Minutes after the murder, Lucas called Morales to advise that the “job” was done.
Long was shot twice in the head on March 24, 2008, in an open area behind Traci Atkins Park in southwest Baltimore known as the “Lumber Yard.” The evidence presented at trial showed that Long was shot with a .25 caliber handgun at close range and that Lucas used, carried, and discharged the gun that caused Long’s death.
Judge Roger W. Titus scheduled sentencing for January 3, 2018, and Lucas faces a mandatory minimum sentence of life in prison for murder-for-hire conspiracy and use of interstate commerce facilities in the commission of murder-for-hire. Lucas also faces a maximum life sentence for discharging the firearm during a crime of violence resulting in death.
Jose Joaquin Morales, age 40, of Baltimore, Maryland, was convicted at trial by a federal jury for using a cell phone to arrange the murder-for-hire of Robert Long, and was sentenced to life in prison on December 9, 2013.
Stanley Needleman, age 75, of Baltimore, Maryland was convicted by guilty plea of underreporting $1.2 million in cash on his income tax returns and for failing to file federal forms disclosing the receipt of $10,000 in more or in cash from clients. Needleman testified at both trials reference Morales’s confession to him about the DMI hit.
The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit.
Acting United States Attorney Stephen M. Schenning commended the DEA, Maryland Transportation Authority Police and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Sandra Wilkinson and Martin Clarke, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Attorney General Jeff Sessions Welcomes Makan Delrahim as Assistant Attorney General for the Antitrust DivisionRead the Press Release
Attorney General Jeff Sessions today welcomed the confirmation of Makan Delrahim as the Department of Justice’s Assistant Attorney General for the Antitrust Division.
“Makan is an outstanding lawyer with a deep devotion to the integrity of our free market system,” said Attorney General Sessions. “His expertise in antitrust enforcement will enable him to follow legal requirements and effectively promote competition to the benefit of consumers and the American economy.”
Mr. Delrahim’s rich antitrust background covers the full range of industries, issues, and institutions touched upon by the critical work of the Antitrust Division. He previously served in the Antitrust Division from 2003 to 2005 as a Deputy Assistant Attorney General, overseeing the Appellate, Foreign Commerce, and Legal Policy sections. During that time, he played an integral role in building the Antitrust Division’s engagement with its international counterparts and was involved in civil and criminal matters. He has also served on the Attorney General’s Task Force on Intellectual Property and as Chairman of the Merger Working Group of the International Competition Network. Mr. Delrahim also served as a Commissioner on the Antitrust Modernization Commission from 2004 to 2007. Earlier in his career, Mr. Delrahim served as antitrust counsel, and later as the Staff Director and Chief Counsel of the U.S. Senate Judiciary Committee.
Prior to his nomination by the President to serve as the Assistant Attorney General for the Antitrust Division, Mr. Delrahim served as Deputy Assistant to the President and Deputy White House Counsel. He is a former partner in the Los Angeles office of the law firm of Brownstein Hyatt Farber Schreck. Mr. Delrahim received his J.D., with high honors, from the George Washington University School of Law, his M.S. from Johns Hopkins University, and his B.S. from the University of California, Los Angeles.
Armed Drug Trafficker Pleads Guilty to Cocaine and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Tyree Williams, 34, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession with intent to distribute cocaine and possession of firearms in furtherance of a drug trafficking crime. The firearm charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $250,000 or both. The drug charge carries a maximum penalty of 20 years, and a fine of $1,000,000 or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that Williams was arrested following the execution of a search warrant at 56 Rauber Street in Rochester. During the search, officers recovered a Jimenez Arms, model J.A. Nine, 9mm pistol, on the attic stairs. Above the doorway to the attic, officers recovered a stolen Walther model CCP, 9 mm pistol. On the attic floor, officers found a Glock model 19, 9 mm pistol. All three firearms were loaded. In addition, the police found over 107 grams of cocaine and over 5 grams of heroin throughout the residence, together with packaging, scales, grinders, glassine bags, and a money-counting machine.
The plea is the result of an investigation by the Greater Rochester Area Narcotics Enforcement Team (“GRANET”), under the direction of Rochester Police Department Lieutenant David Gebhardt, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for January 9, 2018, at 9:15 a.m. before Judge Siragusa.
Armed Career Criminal Sentenced to 300 Months in Federal Prison for Possessing Methamphetamine and Possessing a Loaded FirearmRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Christopher Allen Cain, age 52, of Spokane, Washington, was sentenced today for being in possession of methamphetamine with the intent to distribute and being a previously convicted felon in possession of a firearm and ammunition. United States District Court Judge Rosanna Malouf Petersen sentenced Cain, an armed career criminal, to a 300-month term of imprisonment and a five-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, a Washington State Patrol Trooper, during the course of a traffic stop of Cain, observed a glass-smoking device commonly used for smoking methamphetamine in close proximity to Cain. Upon further investigation, the Washington State Patrol Trooper observed, in plain view, a handgun on the driver’s side floor board. After securing a search warrant for the vehicle Cain was driving, Washington State Patrol Troopers located a handgun with one round of ammunition loaded in the chamber and another nine rounds of ammunition in the magazine. In close proximity to this firearm were two plastic bags containing methamphetamine. Also located in the vehicle were digital scales, small plastic bags, and additional rounds of ammunition. After a three-day jury trial, the jury return verdicts of guilty to both counts.
Joseph H. Harrington said, “Prosecuting drug-trafficking and firearms-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. In addition to mandatory terms of imprisonment for methamphetamine-trafficking offenses, previously convicted felons and violent felons should be aware that there are serious criminal penalties connected with possessing any firearm, ammunition and body armor and that this office is committed to prosecuting aggressively firearm-related cases in the Eastern District of Washington.”
This case was investigated by the Washington State Patrol and the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Earl A. Hicks and Patrick J. Cashman, Assistant United States Attorneys for the Eastern District of Washington.
AnMed Health Agrees to Pay $7 Million to Settle False Claims Act AllegationsRead the Press Release
Columbia, South Carolina------AnMed Health, a South Carolina hospital based in Anderson, South Carolina, has agreed to pay over $7 million to resolve allegations that it violated the False Claims Act by submitting false Medicare claims. The settlement announced today resolves allegations that AnMed Health knowingly disregarded the statutory conditions for submitting claims to the Medicare program for a variety of services, including radiation oncology services, emergency department services, and clinic services.
Specifically, the United States alleged that AnMed Health billed for radiation oncology services for Medicare patients when a qualified practitioner was not immediately available to provide assistance and direction throughout the radiation procedure, as required by Medicare regulations. The settlement also resolves allegations that AnMed Health systematically billed a minor care clinic as if it was an Emergency Department, and billed Emergency Department services as if they were provided by a physician when, in fact, the services were rendered by mid-level providers. Each of these billing practices resulted in higher reimbursements to AnMed Health.
“Our goal in pursuing Medicare fraud is not only to protect taxpayers, but also to ensure that Medicare beneficiaries receive the quality care they deserve,” said Barbara Bowens, Civil Chief for the U.S. Attorney’s Office for the District of South Carolina.
“This is another example of how the False Claims Act whistleblower provisions help protect the public’s interest,” said U. S. Attorney John Horn. “It also reflects our ongoing commitment to safeguard our federal health care programs and the vital care that they provide.”
“Protecting people with Medicare and guarding health resources are top priorities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Provider organizations seeking to increase profits at the expense of patients and taxpayers should expect such plans to be costly.”
The allegations settled today arose from a lawsuit filed in the Northern District of Georgia by a whistleblower formerly employed by AnMed Health, Linda Jainniney, under the whistleblower provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The lawsuit is captioned United States ex rel. Jainniney v. Anmed Health, et al., 1:12-cv-2941 (N.D. Ga.). Ms. Jainniney will receive $1,202,500 of the United States’ False Claims Act recovery. Ms. Jainniney will also receive $850,136.50 from AnMed Health to resolve her wrongful termination claims under the False Claims Act.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the District of South Carolina, and the Department of Health and Human Services Office of the Inspector General.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
#####
Amerisourcebergen Specialty Group Pleads Guilty to Distributing Misbranded Drugs and is Sentenced to Pay $260 Million to Resolve Criminal LiabilityRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, AmerisourceBergen Specialty Group (ABSG), a wholly-owned subsidiary of AmerisourceBergen Corporation (NYSE: ABC), one of the nation’s largest wholesale drug companies and number 11 on the Fortune 500 list, pled guilty to illegally distributing misbranded drugs. ABSG agreed to pay a total of $260 million to resolve criminal liability for its distribution of oncology supportive-care drugs from a facility that was not registered with the Food and Drug Administration (FDA). The guilty plea and sentencing took place before United States District Judge Nina Gershon.
The criminal resolution was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; Mark S. McCormack, Special Agent-in-Charge, FDA Office of Criminal Investigations Metro Washington Field Office; Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG), New York Region; Leigh-Alistair Barzey, Special Agent-in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office; and Scott Rezendes, Special Agent-in-Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG).
“Today’s guilty plea demonstrates our commitment to investigating and holding accountable any pharmaceutical company that fails to ensure the health and safety of the public. This Office will continue to work actively with the FDA to ensure that those responsible for America’s drug supply scrupulously comply with the law and provide safe products that doctors and patients can trust,” said Acting United States Attorney Rohde. Ms. Rohde expressed her grateful appreciation to the Department of Justice Consumer Protection Branch, the FDA Office of the Chief Counsel and the Alabama Board of Pharmacy.
“Injectable drugs prescribed for patients – especially vulnerable cancer patients – must be pure, sterile and produced in an FDA-compliant facility that is within the supply chain that FDA oversees,” stated Special Agent-in-Charge McCormack. “We will continue to pursue and bring to justice those manufacturers who would violate the public’s trust and endanger their health by attempting to avoid FDA’s oversight authority.”
“Companies that sell oncology drugs from a facility not registered with the FDA threaten the health and safety of cancer patients,” stated HHS OIG Special Agent-in-Charge Lampert. “We will continue to work closely with our law enforcement partners to protect patients from such shortcuts.”
“The illegal misbranding and distribution of drugs threatens the health and safety of U.S. military members, retirees and their dependents,” stated DCIS Special Agent-in-Charge Barzey. “Today’s guilty plea is demonstrative of DCIS’s ongoing commitment to work jointly with the USAO EDNY, FDA, HHS OIG and OPM-OIG, in order to protect members of the Armed Forces and to ensure the integrity of the Defense Department’s TRICARE healthcare system.”
“OPM-OIG agents will continue to work with our law enforcement partners to protect Federal employees, annuitants and their families from companies that would put the health of vulnerable cancer patients at risk,” stated OPM-OIG Special Agent-in-Charge Rezendes.
As set forth in court records, between 2001 and 2014, two of ABSG’s Alabama-based subsidiaries, Medical Initiatives Inc. (MII) and Oncology Supply Company (OSC), prepared millions of syringes that had been pre-filled with oncology supportive care drugs — specifically, Aloxi®, Anzemet®, generic versions of granisetron injection, Kytril®, Neupogen® and Procrit®. Those syringes were shipped to oncology centers, medical practices and physicians for administration to immunocompromised cancer patients undergoing chemotherapy treatment in all 50 states, including to approximately 37 healthcare providers located in the Eastern District of New York.
To prepare pre-filled syringes (PFS), MII removed FDA-approved drug products from their original glass vials and repackaged them into plastic syringes through a process that allowed MII to access and sell excess drug product in the vials, known as “overfill,” that MII was able to extract from the vials. As alleged in the Information, however, MII prepared PFS in an unclean, unsterile environment. Accordingly, MII’s process for creating PFS resulted in some PFS that contained particles or foreign matter, which MII employees identified and termed “floaters.” PFS were also at times not of the quality or purity that MII and OSC represented them to be to their customers.
MII’s business model was to combine the contents of multiple vials in a process known as “pooling.” However, as set forth in the Information, many of the vials used by MII to prepare PFS were designated by the drug manufacturer as “single use” vials, meaning that the manufacturer could not guarantee the sterility of the drug product if the vials were breached. However, in the pooling process, MII’s technicians frequently breached drug vials multiple times, thereby increasing the risk of contamination.
In order to avoid the FDA’s regulatory oversight, ABSG did not register MII as a re-packager or manufacturer with the FDA as required by the Federal Food, Drug and Cosmetic Act. Instead, ABSG inaccurately portrayed MII to its customers and to state agencies as a state-regulated pharmacy in the business of dispensing drugs pursuant valid prescriptions and claimed that MII was otherwise in compliance with state pharmacy laws. By holding MII out as a pharmacy, ABSG unlawfully exploited an exemption to the FDA registration requirement that is reserved for legitimate pharmacies, not for manufacturers or re-packagers.
In connection with the guilty plea, ABSG filed a Statement of Facts setting forth those facts which it is admitting.
As part of its guilty plea, ABSG has agreed to pay a $208 million criminal fine, plus $52 million in criminal forfeiture, for a total financial penalty of $260 million. In addition, ABSG has entered into an agreement with the Office and the Department of Justice’s Consumer Protection Branch to maintain a compliance and ethics program designed to increase accountability of individuals and corporate board members, to increase transparency, and to strengthen ABSG’s compliance with the FDCA. The compliance and ethics program requires corporate board members to review annually the effectiveness of the company’s compliance program and for ABSG to maintain a hotline that will receive and process complaints about any improper practices.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra E. Smith and Ameet B. Kabrawala are in charge of the prosecution. Senior Litigation Counsel Patrick Jasperse of the Department of Justice Consumer Protection Branch also provided assistance.
Albany Man Pleads Guilty to Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Michael Gullinese, age 47, of Albany, New York, pled guilty yesterday to distributing, receiving, and possessing child pornography.
The announcement was made by 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, Gullinese admitted that between January 23, 2017 and his arrest on March 14, 2017, he used his cell phone to send and receive images of child pornography over the Kik instant-messaging application. Gullinese saved to his phone approximately 600 image files and 150 video files of child pornography, some depicting children as young as infants.
Gullinese has a 2010 federal child pornography conviction. He was serving a life term of supervised release at the time of his arrest, having been released from prison in August 2014.
Gullinese is scheduled to be sentenced on January 25, 2018 by Senior United States District Judge Norman A. Mordue. He faces at least 15 years and up to 40 years in prison, at least 5 years and up to lifetime post-imprisonment supervised release, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/
Adult Daycare Facility Agrees to $2.72 Million Settlement to Resolve Allegations of Violating False Claims ActRead the Press Release
NEWARK, N.J. – Edison Adult Medical Daycare (Edison), its former owner, Dinesh Patel, and current owners, Daxa Patel and Satish Mehtani, have agreed to pay the United States and the State of New Jersey $2.72 million to resolve allegations that Edison improperly billed and received payments from Medicaid despite Dinesh Patel having been excluded from participating in Medicaid following his 2012 conviction for accepting kickbacks, Acting U.S. Attorney William E. Fitzpatrick announced today.
On Sept. 19, 2012, Dinesh Patel pleaded guilty to accepting cash kickback payments from Orange Community MRI LLC in exchange for patient referrals. He was later sentenced to three months in jail and two years of supervised release.
On March 17, 2012, Dinesh Patel was excluded by the State of New Jersey from participating in any capacity in the Medicaid program. Later, on Feb. 20, 2014, Dinesh Patel was excluded by the U.S. Department of Health and Human Services from participating in Medicare, Medicaid, and all federal health care programs for a period of five years. Five days after Dinesh Patel’s Medicaid exclusion in 2012, he transferred his 50 percent ownership interest in Edison to his wife, Daxa Patel.Today’s settlement resolves federal and state government allegations that from March 17, 2012, through Aug. 4, 2015, Dinesh Patel violated his exclusion by not ceasing his involvement in the adult daycare facility, and that Edison violated the False Claims Act by submitting claims to and receiving payments from Medicaid while Dinesh Patel directed, managed and supervised activities at Edison. The settlement also resolves allegations that owners Daxa Patel and Satish Mehtani had full knowledge that Dinesh Patel was managing Edison while he was an excluded Medicaid provider.
Dinesh Patel, Daxa Patel, Satish Mehtani, and Edison have agreed to pay $2.72 million plus interest to be split equally between United States and State of New Jersey. Dinesh Patel has also agreed to another five-year exclusion precluding him from participating in all federal health care programs, including Medicaid and Medicare, until 2022.Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG), under the direction of Special Agent in Charge Scott J. Lampert, New York Region, and the N.J. Office of the State Comptroller, Medicaid Fraud Division, under the direction of State Comptroller Philip James Degnan, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark. David Fuchs of the HHS-OIG negotiated the additional period of exclusion.The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.37 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Defense counsel:
Edison Adult Medical Daycare: Robert Fogg Esq., Princeton
Dinesh Patel: Steven D. Feldman Esq., New York, and Melissa L. Jampol Esq., New York
Daxa Patel: Nicholas C. Harbist Esq., Princeton
Satish Mehtani: Denis F. Driscoll Esq., Parsippany