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Monday 12 December 2016
Pueblo Woman Indicted for Wire and Tax FraudRead the Press Release
DENVER – Kimberly Pitts, age 46, of Pueblo, Colorado was arrested last week on charges of wire fraud and filing a false tax return, Acting United States Attorney Bob Troyer, IRS Criminal Investigation Special Agent in Charge Steven Osborne, and FBI Special Agent in Charge Calvin A. Shivers announced. Pitts was indicted by a federal grand jury on November 30, 2016, which remained sealed until her arrest. Pitts appeared before a U.S. Magistrate Judge this afternoon where she was advised of her rights and the charges pending against her.
According to the indictment, Pitts was hired as the office manager for Associates of Gastroenterology, Professional Corporation (AG) in February 2011. Her duties included being entrusted with AG’s bank accounts, credit cards, and maintaining AG’s accounting ledgers. Pitts was authorized to use AG’s credit cards and funds for business purposes.
Beginning in February 2011 and continuing through May 2015, Pitts devised a scheme in which she used AG funds for her own personal use. This included using AG credit cards to make personal purchases, writing checks from AG’s bank accounts for personal use and wiring funds from AG bank accounts to various financial institutions where Pitts held personal bank accounts.
Pitts disguised many of the fraudulent transactions in AG’s accounting ledgers. On several occasions, Pitts wrote fraudulent business expenses into the accounting ledgers to conceal her use of AG funds. In January 2015, Pitts listed in the accounting ledgers that AG paid $10,000 to Colorado Springs Utilities when in fact she had wired the $10,000 to her TD Ameritrade account. In total, Pitts converted approximately $792,474 of AG’s money for her own personal use.
Additionally, in April 2015, Pitts filed a U.S. Individual Income Tax Return for the 2014 tax year with a written declaration that the return was made under the penalties of perjury, that her total income for 2014 was $88,473. When filed, Pitts knew her total income was greater than the amount she listed on the tax return.
Pitts is charged with eight counts of wire fraud and one count of false tax statement. Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count. False tax statement carries a penalty of not more than 3 years in prison and a fine of up to $100,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation (IRS CI) and the Federal Bureau of Investigation (FBI). This case is being prosecuted by Assistant U.S. Attorney Jeremy Sibert.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Property Manager and Firm Charged with Defrauding Homeowners’ Association of $247,000Read the Press Release
NEWS RELEASE SUMMARY – December 12, 2016
SAN DIEGO – Property manager Robert Walsh and his firm, Cornerstone Management Professionals, were charged with four counts of wire fraud in connection with a scheme to defraud a homeowners’ association of $247,000. Walsh made his first appearance in court today.
The indictment alleges that Cornerstone and Walsh falsely represented that Cornerstone could properly submit bids to the homeowners’ association for construction projects, and in submitting such bids, the defendants concealed the lower bids to make it appear as if Cornerstone was the low bidder in order to be awarded the projects. The indictment seeks forfeiture of $247,000 of illegal proceeds.
The indictment further alleges that on March 26, 2015, the defendants sent an email, seeking a change order from the homeowner’s association to cover the cost of asbestos removal. According to the indictment, the defendants then sent an email to the contractor working on the project on April 28, 2015, falsely representing that there was no asbestos present in order to induce the contractor to conclude the demolition project without involving an asbestos abatement firm so that the defendants could retain the entire value of the change order.
“The public health dangers of asbestos exposure are well known,” said Jay M. Green, Special Agent in Charge of EPA’s criminal enforcement program in California. “Materials containing asbestos must be handled safely – and legally. EPA and its law enforcement partners are committed to protecting the health and safety of workers and the communities in which they live.”
“The FBI remains committed to rooting out fraud that affects homeowners in San Diego,” stated FBI Special Agent in Charge Eric S. Birnbaum. “This indictment is a stark reminder to those who reside in communities governed by Home Owners Associations (HOAs) to remain vigilant and engaged in the financial affairs of your communities.”
After his arraignment today, Robert Walsh was ordered to appear before U.S. District Judge Barry Ted Moskowitz on January 27, 2017 at 2:00 pm for a hearing on all motions. A hearing for the arraignment and status of counsel for the corporate defendant was set for December 22, 2016, at 2:00 pm before U.S. Magistrate Judge Andrew G. Schopler.
*The charges and allegations contained in the Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Criminal Case Number 16cr2872-BTM
DEFENDANTS
Cornerstone Management Professionals, Inc. Incorporated: 2012 San Diego, California
Robert Walsh Age: 37 Ramona, California
SUMMARY OF CHARGES
Counts 1-4
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCIES
U.S. Environmental Protection Agency, Criminal Investigation Division;
Federal Bureau of Investigation
Pocasset Man Pleads Guilty to Theft in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that NAAMAN JOE MCCOY, age 27, of Pocasset, Oklahoma, pled guilty to THEFT IN INDIAN COUNTRY, in violation of Title 18, United States Code, Sections 661 and 1152, punishable by not more than 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about September 13, 2016, in the Eastern District of Oklahoma, within Indian country, as defined in 18 U.S.C. § 1151, the defendant, an Indian, did take and carry away, with the intent to steal and purloin, the personal property of a non-Indian, with a value exceeding $1,000.00.
The charge arose from an investigation by the Choctaw Tribal police, and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Special Assistant United States Attorney Shelly Harrison represented the United States.
Pittsburgh Man Sentenced to Time-Served for Defrauding BanksRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to time served on his conviction of bank fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Alvin R. Simmons, 56.
According to the information presented to the court, Simmons used fraudulent personal checks to buy postage stamps at Post Offices in western Pennsylvania, and committed bank fraud upon Citizens and First Niagara banks.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the U.S. Postal Inspection Service for the investigation leading to the successful prosecution of Alvin R. Simmons.
O’Kreek Woman Sentenced for Possession of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an O’Kreek, South Dakota, woman convicted of Possession of Methamphetamine was sentenced on November 28, 2016, by U.S. District Judge Roberto A. Lange.
Corrine Ford, age 25, was sentenced to 3 years of probation, a $1,000 fine, a special assessment of $25 to the Federal Crime Victims Fund, and the forfeiture of a pistol firearm.
Ford was indicted by a federal grand jury on September 9, 2015, for Possession of a Firearm by a Prohibited Person. She pled guilty to Possession of a Controlled Substance, charged in a Superseding Information, on September 14, 2016.
On or about July 11, 2015, Ford knowingly and intentionally possessed methamphetamine, a Schedule II Controlled Substance, in Todd County, South Dakota. On July 14, 2015, a search warrant was executed at Ford’s residence. Authorities found and seized from Ford’s vehicle a pistol firearm and ammunition. Ford denied ownership of the firearm and ammunition, and denied knowing that they were in her vehicle. Ford admitted to using methamphetamine, and other individuals confirmed that she has used methamphetamine.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Ford was released after sentencing.
Owner of Saga Restaurants Charged with Harboring and Transporting Illegal AliensRead the Press Release
PITTSBURGH – A local restaurateur has been indicted by a federal grand jury in Pittsburgh on charges of harboring and transporting illegal aliens, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on Dec. 6, and unsealed today, named Xing Zheng Lin, aka Steve Lin, age 44, of McKees Rocks, Pa., as the sole defendant.
According to the indictment presented to the Court, from in and around 2009, until on or about Jan. 10, 2014, Lin harbored and transported illegal aliens who were employed at Saga Restaurant in Monroeville, Robinson, and Bethel Park, all of which were owned by Lin.
The law provides for a maximum total sentence at each count of not more than 10 years in prison for each alien, a fine of $250,000 for each alien or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Homeland Security Investigations and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York City Resident Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A New York City resident pleaded guilty today in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Farintong Calderon, 37, pleaded guilty to one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services. Sentencing was set for Feb. 21, 2017, before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Calderon and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Calderon formerly worked for Verizon Wireless installing cellphone towers and equipment and, after leaving his employer, moved to New York City and became involved in the fraud scheme as a “line” supplier. Specifically, Calderon provided his co-conspirators with telecommunications identifying information associated with the accounts of customers of Verizon and other wireless companies. His co-conspirators used that data—as well as other software and hardware—to reprogram cellphones that they controlled. Calderon’s co-conspirators would then transmit thousands of international calls over the Internet through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, Calderon admitted that, from approximately 2010 to 2013, he sent or received emails to co-conspirators with at least 1,408 combinations of telecommunication identifying information for specific cellphone devices or accounts belonging to persons around the United States, and was personally responsible for at least $250,000 in loss resulting from the scheme.
Calderon is the third defendant to plead guilty in the case. Edwin Fana and Jose Santana previously pleaded guilty to similar charges in this matter. Fana is scheduled to be sentenced on Dec. 22, 2016, and Santana is scheduled to be sentenced on Jan. 4, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
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.
New York City Resident Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A New York City resident pleaded guilty today in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Farintong Calderon, 37, pleaded guilty to one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services. Sentencing was set for Feb. 21, 2017, before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Calderon and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Calderon formerly worked for Verizon Wireless installing cellphone towers and equipment and, after leaving his employer, moved to New York City and became involved in the fraud scheme as a “line” supplier. Specifically, Calderon provided his co-conspirators with telecommunications identifying information associated with the accounts of customers of Verizon and other wireless companies. His co-conspirators used that data—as well as other software and hardware—to reprogram cellphones that they controlled. Calderon’s co-conspirators would then transmit thousands of international calls over the Internet through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, Calderon admitted that, from approximately 2010 to 2013, he sent or received emails to co-conspirators with at least 1,408 combinations of telecommunication identifying information for specific cellphone devices or accounts belonging to persons around the United States, and was personally responsible for at least $250,000 in loss resulting from the scheme.
Calderon is the third defendant to plead guilty in the case. Edwin Fana and Jose Santana previously pleaded guilty to similar charges in this matter. Fana is scheduled to be sentenced on Dec. 22, 2016, and Santana is scheduled to be sentenced on Jan. 4, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
New Century Coal Fraud Ends in Lengthy Prison Sentences for Ten IndividualsRead the Press Release
GREENEVILLE, Tenn. – U.S. District Judge J. Ronnie Greer has sentenced 10 men to a collective total of 284 months in federal prison for their roles in the operation of a fraudulent investor scheme which defrauded 168 investors of more than $14 million dollars. The judge also ordered terms of supervised release by the U.S. Probation office, special assessments and $14,092,205 in restitution to the victims of the scheme.
The 10 men and their prison sentences include: Brian C. Rose, 37, Piney Flats, Tenn., 108 months; Hugh Sackett, 86, Anderson, S.C., 12 months; Robert McGregor, 38, Bowling Green, Ky., 12 months; Johnny D. Phillips, 35, Bowling Green, Ky., 30 months; Dallas McRae, 46, Orlando, Fla., 24 months; Thomas Berry, 36, Bowling Green, Ky., 27 months; Jason Smith, 41, Franklin, Ky., 27 months; David Rose, 66, Louisville, Ky., 18 months; Jim Robinson, 57, New Albany, Ind., two months; and Brent Loveall, 33, Louisville, Ky., 24 months.
Brian Rose led New Century Coal, which advertised that it developed Blue Gem coal, a special type of coal used in the manufacture of computer electronics. New Century Coal staff sold shares in nine different limited partnerships and falsely represented the existence of coal reserves, profitability, and ownership of the coal mines. No coal was ever developed and 90 percent of the investor funds was diverted to support the extravagant lifestyles of the men referenced above, including thoroughbred horses, multiple homes, ARCA Truck Racing, and extensive travel.
U.S. Attorney Nancy Stallard Harr said, “As a result of the investigation efforts and joint aggressive collection by the federal agencies involved with this case, the Department of Justice expects to be able to return some of what they lost to the victims of this fraud.” U.S. Attorney Harr added that federal agents seized homes, cars, horses, cash, and personal property which was purchased with investor funds.
Agencies involved in this investigation included the U.S. Secret Service, Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigations, and Securities & Exchange Commission Enforcement Division. Assistant U.S. Attorneys Helen Smith, Corey Shipley, and Anne-Marie Svolto represented the United States.
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Morgantown man sentenced for synthetic marijuana distribution, money launderingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Kocan, 59, of Morgantown, West Virginia, was sentenced in federal court today to 108 months in prison for synthetic marijuana distribution and money laundering charges, United States Attorney William J. Ihlenfeld, II, announced.
Kocan was the owner of Mid Nite Adult in Morgantown, West Virginia where he sold synthetic cannabinoids, commonly referred to as “spice”, “K2”, “incense”, or “fake weed” for nearly two years. Synthetic cannabinoids are designer drugs that resemble a controlled substance in molecular structure and actual or intended physiological effect.
He pled guilty in July 2016 to one count of “Conspiracy to Distribute Synthetic Cannabinoids and Schedule I Controlled Substance Analogue,” and one count of “Engaging in a Monetary Transaction with Cash Derived from Specified Unlawful Activity.”
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Three Rivers Drug Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Mission Man Sentenced for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on December 6, 2016, by U.S. District Judge Roberto A. Lange.
Robert Chauncey, age 66, was sentenced to 25 months in custody, followed by 6 years of supervised release, a $1,000 fine, forfeiture of $1,701.63, and a special assessment of $100 to the Federal Crime Victims Fund.
Chauncey was indicted by a federal grand jury on November 10, 2015. He pled guilty to Possession with Intent to Distribute a Controlled Substance (methamphetamine), on September 14, 2016.
The conviction stemmed from a traffic stop on December 2, 2014, in which the Rosebud Sioux Tribe Law Enforcement Services stopped a vehicle owned and driven by Chauncey. Marijuana, methamphetamine, drug paraphernalia and digital scales, as well as $1,701.63 in United States currency, was found on Chauncey’s person. Chauncey admitted that he intended to distribute the 11.89 grams of methamphetamine, a Schedule II Controlled Substance, within the State of South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Chauncey was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on December 5, 2016, by U.S. District Judge Roberto A. Lange.
Thomas Small Bear, age 42, was sentenced to 33 months in custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Small Bear was indicted by a federal grand jury on December 8, 2015. He pled guilty on September 8, 2016.
The conviction stemmed from an incident that occurred on November 17, 2015. Small Bear had been drinking with his girlfriend and some friends at his residence in the Ring Thunder Community. At one point, Small Bear and his girlfriend gave a ride to another friend. While still in the vehicle, Small Bear’s girlfriend confronted him about sending text messages to other women. Small Bear got angry, grabbed her and started punching her in the face and kicking her. As a result of the incident, Small Bear’s girlfriend suffered a cut, bruising, and a bump on the left side of her face. At the time of this incident, Small Bear had three prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse. He also had a prior conviction in federal court for Domestic Assault by an Habitual Offender, and was on federal probation when he committed the offense on November 17, 2015.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Small Bear was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on December 6, 2016, by U.S. District Judge Roberto A. Lange.
Jodie Brave, age 46, was sentenced to 27 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Brave was indicted by a federal grand jury on January 21, 2016. He pled guilty on September 14, 2016.
The conviction stemmed from an incident that occurred on December 1, 2015, wherein Brave assaulted his son at their home in Mission. Brave had been drinking and got in an argument with his domestic partner. At some point Brave began assaulting his domestic partner, and Brave’s son tried to intervene and stop the assault. Brave retaliated by pushing his son to the floor. At the time of this incident, Brave had two prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse, and was on federal supervised release.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Brave was immediately turned over to the custody of the U.S. Marshals Service.
Milford Realtor Sentenced to 97 Months for Fraudulant Investment SchemeRead the Press Release
CINCINNATI – Brenda Ashcraft, 46, of Milford, Ohio was sentenced to 97 months in prison and ordered to pay restitution to 34 victims of a fraudulent investment scheme she operated between 2009 and 2013. The victims lost more than $4.2 million according to government calculations.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Mark Porter, Special Agent in Charge, U.S. Secret Service and Jacqueline T. Williams, Director of the Ohio Department of Commerce, announced the sentence imposed today by Senior U.S. District Judge Sandra S. Beckwith.
According to court documents, Ashcraft operated a “Ponzi scheme” through her real estate company called French Manor Properties. Ashcraft would tell prospective investors that she had relationships with various banks which provided her with exclusive access to properties in foreclosure.
Ashcraft said she identified properties that she could purchase for a small amount from the bank, and also had a buyer for a much higher price, allowing for a quick and sizable profit. Ashcraft asked investors to contribute funds towards the initial purchase of the property, and the funds plus a large profit would be returned in approximately 2-3 months. These representations were false.
Bank records show that Ashcraft did not use investment funds to buy any properties. Ashcraft used the money to pay back earlier investors who were seeking the return of their money. Ashcraft also used the stolen funds to pay for personal expenses, including numerous trips to Cancun and Diamond Seat tickets to the Cincinnati Reds.
Ashcraft created a fake employee for her company to handle investor complaints and sent emails to investors and to herself under the fake name. Ashcraft also remotely “wiped” the contents of a cell phone FBI agents seized during the investigation in an attempt to hide the fraud.
“This case is an example of the harm that financial fraud causes,” U.S. Attorney Glassman said. “She preyed on friends, family, and the relationships she developed with other parents at her kids’ school. It's important to punish crimes like this with significant sentences, not only to achieve some measure of justice for the victims, but also to deter others who might be tempted to commit similar crimes.”
Ashcraft pleaded guilty in April 2015 to one count of wire fraud, one count of securities fraud one count of destruction of evidence, and one count of money laundering.
Glassman commended the cooperative investigation of this case by FBI and Secret Service agents, Ohio Department of Commerce, Division of Securities staff, and Assistant U.S. Attorney Timothy Mangan and Deputy Criminal Chief Emily Glatfelter, who prosecuted the case.
Mexican National Sentenced to 135 Months in Prison for Conspiring to Launder $20 Million in Drug Trafficking ProceedsRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – December 12, 2016
SAN DIEGO –A Culiacan, Mexico, man was sentenced today to 135 months in prison for conspiring to launder $20 million worth of drug trafficking proceeds.
Joel Acedo-Ojeda, 32, was sentenced today by U.S. District Judge Roger T. Benitez, who also ordered Acedo-Ojeda to forfeit $20 million and to pay a fine of $20,000. Acedo-Ojeda pleaded guilty to conspiracy to commit international money laundering on June 23, 2015.
According to admissions made in connection with his guilty plea, between approximately April 2013 and April 2015, Acedo-Ojeda and his co-conspirators coordinated the smuggling of $20 million in bulk U.S. currency, which he knew to be the proceeds of drug trafficking, from the United States to Mexico. Upon arrival in Mexico, the bulk currency was transferred to the drug smugglers who were supplying the narcotics either directly or by being smuggled back into the United States, placed into the financial system and then wired back into Mexico.
At sentencing, Assistant U.S. Attorney Larry Casper told the court that Acedo-Ojeda is believed to have laundered funds for Sinaloa Cartel drug traffickers. The Sinaloa Cartel is one of the most notorious drug trafficking organizations operating in Mexico and imports and distributes hundreds of tons of cocaine, methamphetamine and marijuana into the United States each year. Casper also noted that the investigation of this matter resulted in the seizure by U.S. law enforcement of more than $5 million dollars in United States currency as well as several hundred pounds each of cocaine and methamphetamine.
“Those who launder drug monies to further the flow of narcotics that have a devastating impact on our communities and citizens should pay a stiff price” said U.S. Attorney Laura Duffy. “We will continue to aggressively pursue those individuals, wherever they may be located, who attempt to employ any means, financial or otherwise, in aid of efforts to move narcotics through our Southwestern border.”
“HSI is committed to stopping the flow of illicit drug proceeds across our borders that fill the coffers of the world’s most violent drug trafficking organizations,” said Michael Carney, acting special agent in charge of ICE Homeland Security Investigations (HSI) in San Diego. “Today’s sentencing highlights the commitment of HSI and our agents to bring these international money launderers to justice.”
HSI investigated the case. Assistant U.S. Attorney Larry Casper of the Southern District of California and Senior Trial Counsel Mark Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
DEFENDANTS Case Number 15cr0950-BEN
Joel Acedo-Ojeda Age: 32 Culiacan, Mexico
SUMMARY OF CHARGES
Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h).
Maximum Penalties: 20 years in prison; $500,000 fine or twice the value of the funds involved in the offense.
AGENCY
Homeland Security Investigations
Mexican National Sentenced to 135 Months in Prison for Conspiring to Launder $20 Million in Drug Trafficking ProceedsRead the Press Release
A Culiacan, Mexico, man was sentenced today to 135 months in prison for conspiring to launder $20 million worth of drug trafficking proceeds.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura Duffy of the Southern District of California and Acting Special Agent in Charge Michael Carney of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
Joel Acedo-Ojeda, 32, was sentenced today by U.S. District Judge Roger T. Benitez of the Southern District of California, who also ordered Acedo-Ojeda to forfeit $20 million and to pay a fine of $20,000. Acedo-Ojeda pleaded guilty to conspiracy to commit international money laundering on June 23, 2015.
According to admissions made in connection with his guilty plea, between approximately April 2013 and April 2015, Acedo-Ojeda and his co-conspirators coordinated the smuggling of $20 million in bulk U.S. currency, which he knew to be the proceeds of drug trafficking, from the United States to Mexico. Upon arrival in Mexico, the bulk currency was transferred to the drug smugglers who were supplying the narcotics either directly or by being smuggled back into the United States, placed into the financial system and then wired back into Mexico.
At sentencing, the government told the court that Acedo-Ojeda laundered funds for drug traffickers associated with the Sinaloa Cartel, one of the most notorious drug trafficking organizations operating in Mexico that imports and distributes hundreds of tons of cocaine, methamphetamine and marijuana into the United States each year. As a result of the investigation, law enforcement seized more than $5 million dollars in U.S. currency as well as several hundred pounds each of cocaine and methamphetamine.HSI investigated the case. Senior Trial Counsel Mark Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Larry Casper of the Southern District of California prosecuted the case.
McLaughlin Man Charged with First Degree Murder, Second Degree Murder, Assault Resulting in Serious Bodily Injury to a Child, and Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been charged with the federal offenses of First Degree Murder, Second Degree Murder, Assault Resulting in Serious Bodily Injury to a Child, and Child Abuse by a Superseding Indictment filed October 18, 2016.
Matthew St. Pierre, appeared before U.S. Magistrate Judge William D. Gerdes on December 6, 2016, and pled not guilty to the Superseding Indictment.
The maximum penalty upon conviction is a mandatory sentence of life imprisonment and/or a $1,000,000 fine, 5 years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Superseding Indictment alleges that on or about between October 11th and October 12th, 2016, St. Pierre repeatedly struck a child, causing injuries which led to the child’s death. It is further alleged that such acts resulted in serious bodily injury to the child and were committed while St. Pierre was committing the act of Felony Child Abuse.
The charges are merely accusations and St. Pierre is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs – Standing Rock Agency and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
St. Pierre was remanded to the custody of the U.S. Marshals Service pending trial, which is set for February 6, 2017.
Maryland Man Indicted for Conspiracy to File False Claims, Wire Fraud, Aggravated Identity Theft and False PersonationRead the Press Release
A federal grand jury sitting in Washington D.C. returned an indictment on Dec. 7, which was unsealed today, charging a Maryland resident with conspiracy to file false claims, wire fraud, aggravated identity theft, and false personation, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Anthony Ferguson of Temple Hills, Maryland, was arrested on the charges Dec. 8 and had his initial court appearance today before U.S. District Court Judge Royce C. Lamberth, who ordered him held without bond. According to the indictment, from January 2012 through May 2016, Ferguson participated in a stolen identity refund fraud conspiracy. Ferguson and his co-conspirators obtained personal identifying information from several sources and used those identities to file fraudulent tax returns and obtain false refunds from the Internal Revenue Service (IRS). The indictment also alleges that in 2016, Ferguson pretended to be a Treasury Department employee and sent text messages to a witness in an attempt to obtain the details of an ongoing criminal investigation into his conduct.
If convicted, Ferguson faces a statutory maximum sentence of 10 years in prison for conspiring to file false claims for refund, a maximum sentence of 20 years in prison for each count of wire fraud, a mandatory sentence of two years in prison for each count of aggravated identity theft and a maximum sentence of three years in prison for false personation. In addition, Ferguson faces a term of supervised release, restitution and monetary penalties.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo thanked agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Mark McDonald and Sean Green of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Lake Mary Man Pleads Guilty to Investment FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Irwin Charles Ager (84, Lake Mary) has pleaded guilty to conspiracy to commit mail fraud and wire fraud. He faces a maximum penalty of 20 years in federal prison. Ager has agreed to pay more than $10.3 million in restitution to his victims. His sentencing hearing has been set for February 17, 2017.
According to court documents, Ager and his conspirators defrauded over 200 victims out of more than $10.3 million through investments offered in connection with a company called Tri-Med Corporation. Ager was one of the Marketing Directors for Tri-Med Associates, the “marketing arm” of Tri-Med. He was responsible for soliciting investors, as well as recruiting and managing many of the sales people who sold investments in Tri-Med.
The investment fraud scheme involved the alleged purchase of medical receivables by Tri-Med related to services provided to accident victims represented by personal injury attorneys. Payment of those medical receivables was supposed to be made from the proceeds of litigation or an insurance claim made against a general liability or automobile insurance policy. Each of the medical receivables was supposed to be secured by a “letter of protection,” provided by a patient’s personal injury attorney to a medical services professional as an incentive to provide services to a patient. A letter of protection is a contract involving a patient, the patient's attorney, and the medical services provider where the patient and attorney agree to pay all or part of the total billed by the medical services provider from the proceeds of any pre-suit settlement, lawsuit settlement, or judgment that the patient may obtain.
To fund Tri-Med’s alleged purchases of medical receivables, Ager and his conspirators solicited individuals to participate in an “investment program” where investors’ money would be used by Tri-Med to buy medical receivables “backed” by letters of protection. As part of their solicitations, Ager and his conspirators represented to investors that that their investments were safe and that investor funds would be held in a trust account that was controlled by an attorney. To assure investors that their investments were secure, Tri-Med claimed that it would transfer its interest in the letter of protection to the investor in a document called an “Assignment of Interest Certificate.”
Those representations were false. Of the more than $17 million raised from over 200 investors, only approximately $2.7 million was ever transferred from Tri-Med to the attorney’s trust account. The majority of the funds raised from investors never made it to that account. Over $6.5 million was paid to the sales people and the operators of Tri-Med or was used by them to benefit themselves or pay business expenses. Approximately $2.3 million was paid as distributions to investors to make them believe that their investments were profitable. In fact, Tri-Med did not purchase enough medical receivables to secure the incoming investments, so it fabricated “Assignment of Interest Certificates.”
Ager’s brother, Eric Leon Ager (78, Stuart) has also been charged with conspiracy. If convicted, he faces a maximum penalty of 20 years in federal prison. His trial is set for February 2017.
This case was investigated by the United States Secret Service and the State of Florida’s Office of Financial Regulation. It is being prosecuted by Assistant United States Attorneys Shawn P. Napier and Roger B. Handberg.
KCK Man Pleads Guilty to Enticing a Minor for Sex, Faces at Least 10 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man pleaded guilty in federal court today to enticing a child victim, whom he met online, into engaging is illegal sexual activity.
Nathan R. Caylor, 42, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to one count of enticing a minor to engage in illegal sexual activity and one count of receiving child pornography.
By pleading guilty today, Caylor admitted that he communicated online with a 14-year-old victim, identified in court documents at “Jane Doe,” and traveled to her home to engage in sexual intercourse on at least eight separate occasions.
Caylor initially contacted Jane Doe in May 2013. He used the false name “Justin” and told her he was 17 years old. They exchanged photos of each other electronically and communicated via Skype. Caylor told Jane Doe that he had been diagnosed with cancer when he was 14 years old and that the chemotherapy and radiation he had to undergo for cancer made him look older. In reality, Caylor had never been diagnosed with cancer.
Caylor eventually turned the topic of their communications to graphic conversations of a sexual nature and made arrangements to meet Jane Doe in person. Caylor traveled to her home for the first time in November 2013 when her parents were not home. Between May 2013 and July 2014 Caylor also electronically sent pornographic photos of himself to Jane Doe.
In July 2014 the Blue Springs, Mo., Police Department was notified about Caylor’s contact with Jane Doe. A Blue Springs detective assumed Jane Doe’s identity on Facebook and began communicating with Caylor. Caylor asked if he could visit, and was told that her parents were not home. Caylor told Jane Doe that he would see her that same day. He traveled by bus from Kansas City, Kan., to Independence, Mo., then walked several miles to her home. Caylor was arrested while he was walking to the victim’s home.
Investigators also found images of child pornography on Caylor’s computer, including images of a 3-to-4-year-old victim and a 10-to-12-year-old victim.
Under federal statutes, Caylor is subject to a mandatory minimum sentence of 10 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. Attorney David Luna. It was investigated by the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Woman Sentenced for Pharmacy Robberies, Fake Oxycodone PrescriptionsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for her role in conspiracies to pass fraudulent prescriptions and to steal thousands of oxycodone pills in a series of pharmacy robberies.
Danielle Bradbury, 27, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to five years and 10 months in federal prison without parole.
On May 23, 2016, Bradbury pleaded guilty to participating in a conspiracy to distribute Oxycodone and to participating in a conspiracy to commit robbery. Bradbury admitted that she was involved with others in passing numerous fraudulent prescriptions for oxycodone from May 1, 2013, to July 16, 2015, and either using or distributing those pills for money. Once it became more difficult to fill those fraudulent prescriptions, Bradbury agreed with others to begin robbing pharmacies in the metro area for oxycodone.
Bradbury specifically admitted that she participated in the robbery of a Walgreens pharmacy at 1191 W. Kansas St., Liberty, Mo., on June 9, 2015. In that robbery, a female conspirator loitered briefly in the store, asked where the tampons were located, and then left the store without making a purchase. At approximately 3:49 a.m., Bradbury and a co-conspirator entered the store wearing hooded sweatshirts and hospital surgical-style masks and gloves. They made their way directly to the pharmacy, where they jumped over the pharmacy counter, grabbed the pharmacist by the shirt, and forced him to identify where the oxycodone was stored and unlock the shelf. During this time the pharmacist reported that the male suspect held him by the shirt collar from behind and was holding something in the small of the victim’s back that the victim perceived to be a gun. The pharmacist did not actually see a weapon. The suspects then removed approximately 2,911 oxycodone pills of various strengths from the shelves and placed them into plastic Walgreens shopping bags that they removed from the counter. The suspects then fled the store through a rear exit.
According to court documents, conspirators were also responsible for robing the Walgreens at 2630 N.E. Vivion Rd., Kansas City, Mo., on May 5, 2015, and a Walgreens at 3915 S. Noland Rd., Independence, Mo., on May 16, 2015. Conspirators attempted to rob the Independence Walgreens again on Sept. 9, 2015, but were detained by store personnel until officers arrived and arrested co-defendants Melinda Backhus, 24, of Gladstone, Mo., and Julian King, 22, of Kansas City, Mo. The getaway driver, Aaron Anderson, 26, of Kansas City, Mo., fled the scene before officers arrived.
Bradbury is the third defendant to plead guilty and be sentenced in this case. Anderson was sentenced to four years and three months in federal prison without parole. Backhus was sentenced to three years in federal prison without parole. Co-defendants Austin T. Bradbury (Danielle Bradbury’s husband), 27, Christa M. O’Dell, 21, and Matthew Larson, 25, all of Kansas City, Mo., and Michael C. Bellinghausen, 33, and Tara D Childress, 31, both of Gladstone, have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the FBI.
KC Woman Sentenced for Her Role in $1.2 Million Oxycodone ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for her role in a $1.2 million conspiracy to distribute oxycodone that was obtained by using forged and fraudulent prescriptions.
Michelle C. Newton, 46, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to three years and 10 months in federal prison without parole.
On June 23, 2016, Newton pleaded guilty to participating in a conspiracy from Dec. 6, 2013, to January 2016 to distribute, and to possess with the intent to distribute, oxycodone. Conspirators obtained prescription-quality paper commonly used by authorized health care providers to write prescriptions. They also obtained the DEA registration numbers of health care providers, which they used to prepare fraudulent prescriptions for oxycodone.
Conspirators took the false prescriptions to pharmacies in Kansas City, Drexel, Riverside, Independence, Lee’s Summit, Blue Springs, Kearney, Butler, Odessa, Higginsville and Nevada, Mo. Conspirators commonly sold the oxycodone 30mg pills for between $15 to $25 per pill.
According to court documents, Newton’s role in the conspiracy was primarily as a “runner” – she was responsible for taking the false prescriptions for oxycodone to a pharmacy, attempting to pass the false prescriptions and obtain oxycodone. Newton then returned some or all of the oxycodone to others in the conspiracy; in exchange, she received either cash and/or a portion of the oxycodone pills.
Newton was arrested when she attempted to pass a false prescription at a Walgreens at 3845 Broadway, Kansas City, Mo., on Dec. 20, 2013.
Newton is the first defendant to be sentenced in this case. Four co-defendants have pleaded guilty so far, including Katherine E. Beaven, 33, Felicita A. San Miguel, also known as “Cassandra Jasso,” “Susan Hernandez,” and “Sarah Buckner,” 38, and Jermaine C. Brooks, 29, all of Kansas City, Mo., and Christopher J. Neale, 27, of Harrisonville, Mo.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the Missouri State Highway Patrol, and the police departments of Riverside, Blue Springs, Independence, Kearney, Odessa, Nevada, Higginsville, Drexel Lee’s Summit and Butler.
Justice Department Wins Breach of Contract Lawsuit Against Nebraska-Based Meat Packing CompanyRead the Press Release
The Justice Department announced today that on Dec. 9, 2016, the U.S. District Court for the District of Nebraska ruled in the department’s favor in its breach of contract claim against Nebraska Beef Ltd., a meat packing company based in Omaha.
In October 2015, the department filed a lawsuit against Nebraska Beef claiming that the company had refused to comply with several terms of the parties’ settlement agreement. In August 2015, the parties had entered into an agreement to resolve the department’s investigation into whether Nebraska Beef was discriminating against work-authorized immigrants. When Nebraska Beef refused to pay the agreed-upon $200,000 civil penalty and initiate the required backpay claims process, the United States filed suit to enforce the agreement. On Friday, the court ordered the company to pay the $200,000 it owed and comply with all of the terms of the agreement.
“The department looks forward to working with Nebraska Beef to ensure that it complies with all of the provisions of the settlement agreement,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The court’s ruling, and the underlying agreement, further our efforts to protect the federal employment rights of individuals with legal authorization to work in the United States.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation and intimidation.To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact the OSC worker hotline for assistance.
Justice Department Opens Investigation into Hampton Roads Regional Jail in Portsmouth, VirginiaRead the Press Release
The Justice Department announced today that it has opened an investigation into the conditions at the Hampton Roads Regional Jail in Portsmouth, Virginia.
The investigation will focus on whether the jail violates the constitutional rights of inmates to adequate medical and mental health care; violates the constitutional rights of inmates who have mental illness by secluding them in isolation for prolonged time periods; and violates the rights of inmates who have mental illness by denying them access to services, programs and activities because of their disability.
“All prisoners, including those with mental illness, have a constitutional right to receive necessary medical care, treatment and services,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will conduct a thorough investigation, led by the facts and the law, to review conditions in the jail.”
“We are committed to protecting the civil rights of all citizens, including those who are incarcerated,” said U.S. Attorney Dana J. Boente of the Eastern District of Virginia. “Prisoners with mental illness are a particularly vulnerable population, and their rights must be safeguarded. We look forward to conducting a full and fair investigation of this matter in partnership with the Civil Rights Division.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and under Title II of the Americans with Disabilities Act (ADA). Under CRIPA, the department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the Eastern District of Virginia are conducting this investigation. Individuals with relevant information are encouraged to contact the department via phone at 844-664-0225 or by email at [email protected].
Justice Department Files Suit Against Culpeper County, Virginia, for Blocking Mosque ConstructionRead the Press Release
The Justice Department filed a lawsuit today against Culpeper County, Virginia, alleging that the county violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied a sewage permit application to the Islamic Center of Culpeper (ICC), effectively preventing the ICC from building a small mosque on land that it had purchased in the county. The land is located in a zoning district where religious land use is permitted by right.
The complaint, filed in the U.S. District Court for the Western District of Virginia, alleges that the county imposed a substantial burden on the Muslim congregation’s exercise of religion and discriminated against the ICC based on religion when it refused to grant a “pump and haul” permit to allow the ICC to transport sewage from the ICC’s property to a point of disposal. The county had told the ICC that such a permit was necessary because its soil, like much soil in the area, could not support a septic system. The complaint alleges that since 1992, the county has considered 26 applications and never denied a pump and haul permit to a commercial or religious use prior to the ICC.
“The Constitution and federal law specifically protect the freedom of religious communities to establish houses of worship,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue to work tirelessly to protect every person’s right to assemble for religious exercise.”
“Religious liberty is a fundamental right in our country and this case seeks to uphold that right,” United States Attorney John P. Fishwick Jr. of the Western District of Virginia said today. “We will continue to work with the experienced lawyers with the Civil Rights Division of the Department of Justice to protect the residents of the Western District of Virginia from unlawful discrimination.”RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religion exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743.
More information about RLUIPA, including a 2016 report on the Department of Justice’s enforcement of this important law, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Justice Department Files Suit Against Culpeper County, Virginia, for Blocking Mosque ConstructionRead the Press Release
The Justice Department filed a lawsuit today against Culpeper County, Virginia, alleging that the county violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied a sewage permit application to the Islamic Center of Culpeper (ICC), effectively preventing the ICC from building a small mosque on land that it had purchased in the county. The land is located in a zoning district where religious land use is permitted by right.
The complaint, filed in the U.S. District Court for the Western District of Virginia, alleges that the county imposed a substantial burden on the Muslim congregation’s exercise of religion and discriminated against the ICC based on religion when it refused to grant a “pump and haul” permit to allow the ICC to transport sewage from the ICC’s property to a point of disposal. The county had told the ICC that such a permit was necessary because its soil, like much soil in the area, could not support a septic system. The complaint alleges that since 1992, the county has considered 26 applications and never denied a pump and haul permit to a commercial or religious use prior to the ICC.
“The Constitution and federal law specifically protect the freedom of religious communities to establish houses of worship,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue to work tirelessly to protect every person’s right to assemble for religious exercise.”
“Religious liberty is a fundamental right in our country and this case seeks to uphold that right,” United States Attorney John P. Fishwick Jr. of the Western District of Virginia said today. “We will continue to work with the experienced lawyers with the Civil Rights Division of the Department of Justice to protect the residents of the Western District of Virginia from unlawful discrimination.”RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religion exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743.
More information about RLUIPA, including a 2016 report on the Department of Justice’s enforcement of this important law, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Culpeper ComplaintInmate at USP Pleads Guilty to Possessing MethamphetamineRead the Press Release
ABINGDON, VIRGINIA – A federal inmate at United States Penitentiary at Lee County, Virginia, pled guilty today to illegal possessing of a prohibited item, United States Attorney John P. Fishwick Jr. announced.
Antonio Stitt, 37, waived his right to be indicted and pled guilty to a one count Information charging him with knowingly possessing a prohibited object, methamphetamine.
“Methamphetamine is a dangerous and addictive substance that ruins the lives of users,” United States Attorney Fishwick said today. “This sort of drug has absolutely no place inside the walls of a prison and anyone who brings meth, or other illegal substances inside prison walls, will be held accountable.”
At sentencing, Gillom faces up to twenty years in prison and a fine of $250,000.
The investigation of the case was conducted by the United States Bureau of Prisons and the Bristol office of the Federal Bureau of Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Gulf Breeze Attorney Pleads Guilty to Bank Fraud, Embezzlement, and Money Laundering ChargesRead the Press Release
PENSACOLA, FLORIDA – Richard Michael Colbert, 55, of Pensacola Beach, pled guilty last week to 13 felony counts, including one count of conspiracy to commit bank fraud and/or mail fraud affecting a financial institution, one count of false statement to a federally insured financial institution, nine counts of money laundering, and two counts of theft, embezzlement or misapplication by a person connected with a financial institution. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Colbert pled guilty surrounding conduct he committed while he was the manager of Beach Title Services, a subsidiary of Beach Community Bank. That is, Colbert participated in a scheme to defraud and obtain money and/or property by fraudulent means from the federally insured financial institutions Bank of America, Beach Community Bank, and, the now defunct, Premier Community Bank. As a part of the scheme, Colbert signed and submitted false HUD-1s to Bank of America and Beach Community Bank. Colbert also signed and submitted a false HUD-1 to the now defunct GulfSouth Private Bank so former builder Lawrence Wright could obtain a loan. Additionally, while acting as an escrow agent for Beach Community Bank, Colbert embezzled and misapplied funds being held at Beach Community Bank. Thereafter, Colbert conducted a series of financial transactions, thereby laundering the funds he had embezzled.
For each of the conspiracy, false statement, and theft/embezzlement/misapplication of funds charges, Colbert faces a maximum of 30 years in prison. For each of the money laundering charges, Colbert faces a maximum of 10 years in prison.
Colbert is scheduled to be sentenced on March 2, 2017, at the U.S. Courthouse in Pensacola.
The case was investigated by Internal Revenue Service-Criminal Investigation with assistance from the Federal Bureau of Investigation, Federal Deposit Insurance Corporation-Office of Inspector General, and the Okaloosa County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
The U.S. 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 U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Fort Thompson Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 28, 2016, by U.S. District Judge Roberto A. Lange.
Jordan Traversie, age 26, was sentenced to 12 months and a day in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on July 19, 2016. He pled guilty on September 14, 2016.
The conviction stemmed from an incident wherein Traversie failed to register as a sex offender from June 1, 2016, and June 14, 2016. Traversie was initially convicted in federal court in 2014 for Sexual Abuse of a Minor and was sentenced to 18 months of custody, as well as being required to register as a sex offender. After being released from prison, he updated his registration several time as required. But on Mother’s Day weekend 2016, he went to Sioux Falls to visit his mother, and was told by his probation officer that if he planned on staying in Sioux Falls, he would need to register an address. Traversie understood his requirement, stayed in Sioux Falls but did not register.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.
Former President of St. Louis Law Enforcement Officer Association Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Darren Randal Wilson was sentenced to 12 months and one day in federal prison, and a three-year term of supervised release, for his misappropriation of over $80,000 from the Ethical Society of Police.
As part of the guilty plea in September, Wilson acknowledged that he abused his position of public and private trust. He agreed to a money judgment against him of $80,934, to account for the losses to ESOP associated with the fraud scheme. He also agreed to surrender his law enforcement certification and to no longer work or seek employment as a law enforcement officer.
According to court documents, Wilson was president of the Ethical Society of Police (ESOP) in 2013 and 2014. As president of ESOP, Wilson had access to funds in the ESOP bank account, which consisted primarily of the monthly dues contributed by the police officer members of ESOP.
Between July 2013 and December 2014, Wilson engaged in a fraud scheme to misappropriate money from the ESOP bank account and to use the money for his own purposes, including funding his business promoting comedy shows featuring nationally known comedians at local night clubs. To further the fraud scheme, Wilson transmitted some of the misappropriated money by Fed Wire, PayPal and Western Union wire transfers. To conceal his fraudulent activity, Wilson presented false information to ESOP officers and members.
Wilson, St. Louis, Missouri, pled guilty to all nine counts of wire fraud in September. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Cristian M. Stevens handled the case for the U.S. Attorney’s Office.
Former Labor Union Officer Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – A former officer in a local labor union pled guilty today to federal embezzlement charges, United States Attorney John P. Fishwick Jr. announced.
William Dixon, 41, of Castlewood, Virginia, waived his right to be indicted and pled guilty today to a one count Information charging him with embezzling funds from a labor organization.
“Labor unions have been in place for centuries to ensure fair working conditions for employees, not to line the pockets of union officers,” United States Attorney Fishwick said today.
Dixon admitted today that from October 2015 through April 2016, while serving as the secretary/treasurer for a labor union in Lebanon, Virginia, of which he was a member of, he embezzled $4,338.
At sentencing, Dixon faces a maximum sentence of imprisonment for a term of five years and a fine of $250,000.
The investigation of the case was conducted by the United States Department of Labor, Office of Labor-Management Standards. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former Head of Non-Profit Organization Pleads Guilty in Theft of More Than $250,000Read the Press Release
WASHINGTON – Blair Wynkoop, 58, the former executive director of a non-profit organization, pled guilty today to a charge stemming from the theft of at least $250,000 from the charity, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Deputy Inspector General for the U.S. Office of Personnel Management (OPM).
Wynkoop, of Portland, Oregon, pled guilty in the U.S. District Court for the District of Columbia to a charge of interstate transportation of stolen property. The Honorable Reggie B. Walton scheduled sentencing for March 17, 2017. Under federal sentencing guidelines, Wynkoop faces a likely range of 24 to 46 months in prison and potential financial penalties. He has agreed to pay $425,249 in restitution to a number of charitable organizations and must pay a forfeiture money judgment.
According to a statement of offense, signed by the defendant as well as the government, Wynkoop became executive director of the charity, identified in court documents as “Company A,” in 2008. The non-profit sought to address the needs of people with HIV or AIDS. It operated as a consortium of independent charities and received charitable donations itself and functioned as a pass-through for donations to its member charities.
At the outset of his tenure as executive director, Wynkoop caused “Company A” to make many of the required distributions of contributions to the member charities. However, from 2010 through 2012, he did not distribute all of the money and used funds for his own benefit.
While he was executive director, Wynkoop wrote checks and made wire transfers from the bank accounts of “Company A” to himself. For some, but not all, of these payments, he provided the non-profit’s part-time bookkeeper with justifications for expenses; many of these justifications were fabricated and designed to conceal the fraud. In the course of the scheme, Wynkoop defrauded the non-profit of more than $250,000.
In announcing the plea, U.S. Attorney Phillips and Deputy Inspector General Vint expressed appreciation for the work of Special Agent Christopher Sulhoff and others who assisted with investigating the case from the OPM Inspector General’s Office. They also commended the efforts of those who handled the case for the U.S. Attorney’s Office, including former Document Management Analyst John Lowell and Assistant U.S. Attorney Thomas Swanton, who is handling forfeiture issues. Finally, they acknowledged the work of Peter C. Lallas, who is prosecuting the case.
Former Division of Highways employee admits guilt in pay-to-play schemeRead the Press Release
WHEELING, WEST VIRGINIA – Bruce E. Kenney, III, 60, of Norfolk, Virginia, pled guilty in federal court today to wire and tax fraud charges, United States Attorney William J. Ihlenfeld, II, announced.
Kenney admitted today that he used his position in the Traffic Engineering Division of the West Virginia Division of Highways to bypass normal state procedures and funnel structure inspection work to the Dennis Corporation in exchange for covert payments totaling approximately $200,000. He entered a guilty plea to one count of “Honest Services Wire Fraud Conspiracy,” and also to one count of “Conspiracy to Impede the Internal Revenue Service.”
Assistant U.S. Attorneys Jarod J. Douglas and Sarah W. Montoro prosecuted the case on behalf of the government. The case was investigated by the U.S. Attorney’s Public Corruption Unit, which includes the Federal Bureau of Investigation, the West Virginia Commission on Special Investigations, Internal Revenue Service-Criminal Investigation, and the West Virginia State Police.
Citizens with information regarding public corruption in their community are encouraged to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS (855-982-3337), or to send an email to [email protected].
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Former Congressman Chaka Fattah Sentenced to 10 Years in Prison for Participating in Racketeering ConspiracyRead the Press Release
Former Congressman Chaka Fattah Sr., 60, of Philadelphia, was sentenced to 120 months in prison for participating in a racketeering conspiracy involving several schemes intended to further his political and financial interests by misappropriating federal, charitable and campaign funds, among other things.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Division and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) Philadelphia Field Office made the announcement.
Fattah was sentenced by U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania, who also ordered Fattah to pay $600,000 in restitution and to forfeit $14,500. On June 21, 2016, Fattah was convicted of participating in racketeering, bribery, wire fraud, honest services fraud and money laundering conspiracies, and for bribery, mail fraud and money laundering.
“Chaka Fattah was a long-serving and powerful member of the U.S. House of Representatives who was entrusted by his constituents with serving their best interests,” said Assistant Attorney General Caldwell. “Instead, he perverted that trust and turned his office into a criminal organization designed to support his own political and financial interests.”“As a former congressman, Fattah conspired with his co-defendants in a series of schemes to use his position for personal gain at the expense of the public good,” said U.S. Attorney Memeger. “We are pleased with today’s outcome while also recognizing the tragedy of this defendant’s fall from grace. We hope that the lengthy prison sentence imposed today deters those public officials who might be tempted to engage in corruption, as our office remains committed to investigating and prosecuting public corruption at all levels of government.”
“Chaka Fattah represented his district in Congress for over 20 years,” said Special Agent in Charge Harpster. “And, if not for his sheer greed and venality, probably could have kept his seat for 20 more. He's repeatedly deemed this case a ‘witch hunt’ against him by the government. But in truth, Mr. “Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of position or power,” said Chief Weber. “Public officials who fail to faithfully discharge the duties of their office will be investigated, prosecuted and subjected to the full punishment of the law for their actions.”
According to the evidence presented at trial, Fattah and certain associates borrowed $1 million from a wealthy supporter for his failed 2007 campaign for mayor of Philadelphia, and disguised the funds as a loan to a consulting company. After he lost the election, Fattah returned $400,000 of unused campaign funds to the donor and arranged for Educational Advancement Alliance (EAA), a non-profit entity founded and controlled by Fattah, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by co-defendant Robert Brand. To conceal the contribution and repayment scheme, Fattah, his co-conspirators, and others created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.
Following his election defeat, Fattah also sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. Fattah directed the consultant to apply for a $15 million grant (which ultimately he did not receive) on behalf of a then-non-existent non-profit entity. In exchange for Fattah’s efforts to arrange the award, the consultant agreed to forgive the campaign debt.
In addition, Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt. To execute the scheme, Fattah arranged for his campaigns to make payments to a political consulting company, which the company used to make 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000, between 2007 and 2011.
Beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for co-defendant Herbert Vederman an ambassadorship or an appointment to the U.S. Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale.
Fattah’s four co-defendants Vederman, Brand, Karen Nicholas and Bonnie Bowser were convicted alongside Fattah for charges in connection with the schemes on June 21, 2016. Judge Bartle also sentenced Vederman today to 24 months in prison and ordered him to pay a $50,000 fine. Sentencing is set for Dec. 13, 2016 for Brand and Nicholas and Dec. 14, 2016 for Bowser.
The FBI and IRS-CI investigated the case with assistance from the Justice Department’s Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce’s Office of Inspector General. Trial Attorneys Eric L. Gibson and Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania are prosecuting the case.
Former Congressman Chaka Fattah Sentenced to 10 Years in Prison for Participating in Racketeering ConspiracyRead the Press Release
Philadelphia – Former Congressman Chaka Fattah Sr., 60, of Philadelphia, was sentenced to 120 months in prison for participating in a racketeering conspiracy involving several schemes intended to further his political and financial interests by misappropriating federal, charitable and campaign funds, among other things.
U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Division and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) Philadelphia Field Office made the announcement.
Fattah was sentenced by U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania, who also ordered Fattah to pay $600,000 in restitution and to forfeit $14,500. On June 21, 2016, Fattah was convicted of participating in racketeering, bribery, wire fraud, honest services fraud and money laundering conspiracies, and for bribery, mail fraud and money laundering.
“As a former congressman, Fattah conspired with his co-defendants in a series of schemes to use his position for personal gain at the expense of the public good,” said U.S. Attorney Memeger. “We are pleased with today’s outcome while also recognizing the tragedy of this defendant’s fall from grace. We hope that the lengthy prison sentence imposed today deters those public officials who might be tempted to engage in corruption, as our office remains committed to investigating and prosecuting public corruption at all levels of government.”
“Chaka Fattah was a long-serving and powerful member of the U.S. House of Representatives who was entrusted by his constituents with serving their best interests,” said Assistant Attorney General Caldwell. “Instead, he perverted that trust and turned his office into a criminal organization designed to support his own political and financial interests.”
“Chaka Fattah represented his district in Congress for over 20 years,” said Special Agent in Charge Harpster. “And, if not for his sheer greed and venality, probably could have kept his seat for 20 more. He's repeatedly deemed this case a ‘witch hunt’ against him by the government. But in truth, Mr. Fattah and his co-defendants have no one to blame but themselves. Tackling public corruption remains an FBI priority, for the simple fact that no one is above the law.”
“Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of position or power,” said Chief Weber. “Public officials who fail to faithfully discharge the duties of their office will be investigated, prosecuted and subjected to the full punishment of the law for their actions.”
According to the evidence presented at trial, Fattah and certain associates borrowed $1 million from a wealthy supporter for his failed 2007 campaign for mayor of Philadelphia, and disguised the funds as a loan to a consulting company. After he lost the election, Fattah returned $400,000 of unused campaign funds to the donor and arranged for Educational Advancement Alliance (EAA), a non-profit entity founded and controlled by Fattah, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by co-defendant Robert Brand. To conceal the contribution and repayment scheme, Fattah, his co-conspirators, and others created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.
Following his election defeat, Fattah also sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. Fattah directed the consultant to apply for a $15 million grant (which ultimately he did not receive) on behalf of a then-non-existent non-profit entity. In exchange for Fattah’s efforts to arrange the award, the consultant agreed to forgive the campaign debt.
In addition, Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt. To execute the scheme, Fattah arranged for his campaigns to make payments to a political consulting company, which the company used to make 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000, between 2007 and 2011.
Beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for co-defendant Herbert Vederman an ambassadorship or an appointment to the U.S. Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale.
Fattah’s four co-defendants Vederman, Brand, Karen Nicholas and Bonnie Bowser were convicted alongside Fattah for charges in connection with the schemes on June 21, 2016. Judge Bartle also sentenced Vederman today to 24 months in prison and ordered him to pay a $50,000 fine. Sentencing is set for Dec. 13, 2016 for Brand and Nicholas and Dec. 14, 2016 for Bowser.
The FBI and IRS-CI investigated the case with assistance from the Justice Department’s Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce’s Office of Inspector General. Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania, and Trial Attorneys Eric L. Gibson and Jonathan Kravis of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Bank Employee in Great Bend Pleads Guilty to Embezzling More Than $73,600Read the Press Release
KANSAS CITY, KAN. - A former employee of a bank in Great Bend pleaded guilty Monday to stealing more than $73,600 from the bank, U.S. Attorney Tom Beall said.
Kaden Herman, 19, Great Bend, Kan., pleaded guilty to one count of embezzlement by a bank employee. In his plea, he admitted he was working for Landmark National Bank in Great Bend, Kan., in May 2016 when the crime occurred. Herman gained access to a key and code that he used to open an ATM at a branch at 1623 Main Street in Great Bend and remove the cash.
When questioned, Herman denied involvement, but witnesses said they saw him when he took the key in to be duplicated. Investigators served a search warrant at his home and found the money.
Sentencing is set for Feb. 27. The government has agreed to recommend three years supervised release. Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Final Person Sentenced to More Than 8 Years’ Imprisonment in Scheme to Smuggle Guns to LebanonRead the Press Release
Bassem Afif Herz, age 31, from Cedar Rapids, Iowa, was sentenced today following his pleas of guilty to various charges related to a scheme to illegally export hundreds of firearms to Lebanon.
Herz previously pleaded guilty to one count of conspiring to deal in firearms without a license and to illegally ship firearms in interstate and foreign commerce; one count of conspiracy to commit money laundering; and one count of violating the Arms Export Control Act.
The defendant was sentenced by Linda R. Reade, Chief Judge, United States District Court for the Northern District of Iowa, in Cedar Rapids, Iowa, following three prior hearings at which the Court received evidence concerning the sentencing issues.
Herz was sentenced to serve 97 months’ imprisonment, to be followed by a 3- year term of supervised release. Herz was ordered to forfeit $48,575 in proceeds of criminal activity. The forfeiture order was made joint and several with the other defendants in the case.
In sentencing Herz, the Court found the aggravating factors included the defendant’s false testimony that on the day of his arrest he had been beaten up by police officers who also threw his infant son to the floor. The court also noted the large number of guns involved in the schemes, the fact that military style assault rifles were involved, and that some of the guns were shipped to and sold in southern Lebanon in an area controlled by Hezbollah.
Ali Afif Al Herz, the brother of Bassem Afif Herz, was previously sentenced to serve 342 months’ imprisonment.
Adam Al Herz, the son of Ali Afif Al Herz, was sentenced to serve 240 months’ imprisonment, to be followed by a three-year term of supervised release.
Defendant and his relatives were charged following an investigation triggered in early 2014 by a report from a firearms dealer concerning suspicious firearms transactions conducted by the group.
The initial investigation led to the March 2015 seizure of 53 guns and thousands of rounds of ammunition concealed inside Bobcat skid loaders packed inside a shipping container at the Norfolk, Virginia seaport. The container was destined for Lebanon. Subsequent investigation led to the May 2015 seizure of a second shipping container in Cedar Rapids, which was also destined for Lebanon. Ninety-nine guns and thousands more rounds of ammunition were found concealed inside Bobcat skid loaders packed inside the second container. Further investigation disclosed the group had previously sent two similar shipments to Lebanon in March and August 2014. Each of the containers had been loaded and shipped from Midamar Corporation in Cedar Rapids.
The cases were prosecuted by Assistant United States Attorney Richard L. Murphy and were investigated by Homeland Security Investigations, Bureau of Alcohol Tobacco and Firearms, Federal Bureau of Investigation, and U.S. Customs and Border Protection, with assistance from the Diplomatic Security Service, United States Marshals Service, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Iowa Bureau of Investigation and Identity Protection, Iowa Department of Inspections and Appeals, Fayette County Sheriff’s Office, Iowa County Sheriff’s Office, Linn County Sheriff’s Office, Vinton Police Department, University of Iowa Police Department, Iowa City Police Department, Cedar Rapids Police Department, Marion Police Department, and Hiawatha Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00054-LRR.
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Federal Jury Finds Shiprock Woman Guilty on Assault ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Santa Fe, N.M., returned a verdict this afternoon finding Cornelia Tom Tapaha, 40, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., guilty on assault charges after a six-day trial. The verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Tapaha was arrested in June 2016, on an indictment charging her with assault with a dangerous weapon, a vehicle, and assault resulting in serious bodily injury. The indictment alleged that Tapaha committed the crimes on July 8, 2015, on the Navajo Indian Reservation in San Juan County, N.M.
Trial of Tapaha began on Dec. 5, 2016, and concluded this afternoon when the jury returned a verdict finding Tapaha guilty of assault and assault resulting in serious bodily injury.
The evidence at trial established that on the evening of July 8, 2016, Tapaha, the victim and another individual consumed alcohol while driving on the Navajo Indian Reservation. While Tapaha was driving and the victim was in the front passenger seat, Tapaha and the victim began arguing. Eventually Tapaha pulled over, and the victim and the other individual got out of the vehicle and began walking away. Tapaha remained in the vehicle and proceeded to run over the victim. As a result of this assault, the victim’s ribs, collar bone and ankle were broken and required surgical repair. The victim also suffered multiple lacerations requiring stitches.
At sentencing, Tapaha faces a statutory maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Department of Public Safety. Assistant U.S. Attorneys Joseph Spindle and Novaline D. Wilson are prosecuting the case.
Federal Inmate Pleads Guilty to Illegal Possession of MarijuanaRead the Press Release
ABINGDON, VIRGINIA – An inmate at United States Penitentiary at Lee County, Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to illegally possessing a prohibited object, United States Attorney John P. Fishwick Jr. announced.
Stanley Curtis Gillom, 32, waived his right to be indicted and pled guilty today in District Court to a one count Information charging him with one count of knowingly possessing a prohibited object, marijuana.
“Those who break the law while inside a federal prison will be held accountable for their actions,” United States Attorney Fishwick said today. “Maintaining order and keeping prohibited items, including substances such as marijuana, out of the penitentiary, is imperative to keeping all inmates safe.”
At sentencing Gillom faces up to five years in prison and a fine of $250,000.
The investigation of the case was conducted by the United States Bureau of Prisons and the Bristol office of the Federal Bureau of Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
FCI-Greenville Inmate Pleads Guilty to Assult with a Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on December 12, 2016, Billy Evans, 26, pled guilty to an indictment charging him with Assault with a Dangerous Weapon with Intent to do Bodily Harm. Both Evans and the victim were inmates at the Federal Correctional Institution located in Greenville, Illinois, commonly known as FCI-Greenville, at the time the offense was committed. Evans faces a term of imprisonment of not more than ten years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. The sentencing has been scheduled for March 31, 2017, in East St. Louis, Illinois.
On July 6, 2016, Evans assaulted another inmate with a weapon made by tying a combination lock to a belt. Immediately after the assault ended, Evans turned himself into staff at FCI-Greenville. Evans later admitted the assault when interviewed by the FBI, as well to constructing the weapon used to commit the assault. The victim suffered a 3 cm laceration to his head that needed staples to close, as well as abrasions and bruising to his right shoulder.
The case was investigated by the Bureau of Prisons’ Special Investigation Section and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
FCI-Greenville Inmate Pleads Guilty to Assult with a Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on December 12, 2016, Billy Evans, 26, pled guilty to an indictment charging him with Assault with a Dangerous Weapon with Intent to do Bodily Harm. Both Evans and the victim were inmates at the Federal Correctional Institution located in Greenville, Illinois, commonly known as FCI-Greenville, at the time the offense was committed. Evans faces a term of imprisonment of not more than ten years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. The sentencing has been scheduled for March 31, 2017, in East St. Louis, Illinois.
On July 6, 2016, Evans assaulted another inmate with a weapon made by tying a combination lock to a belt. Immediately after the assault ended, Evans turned himself into staff at FCI-Greenville. Evans later admitted the assault when interviewed by the FBI, as well to constructing the weapon used to commit the assault. The victim suffered a 3 cm laceration to his head that needed staples to close, as well as abrasions and bruising to his right shoulder.
The case was investigated by the Bureau of Prisons’ Special Investigation Section and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
East Windsor Woman Pleads Guilty to Committing Multiple Crimes after Sentencing for Prior OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALIYAH THERESA JULIATE DAVIS, also known as Theresa Juliate Sutherland, 36, of East Windsor, waived her right to indictment and pleaded guilty today in New Haven federal court to multiple offenses that she committed while awaiting incarceration after a prior federal conviction.
According to court documents and statements made in court, on December 17, 2014, DAVIS, who was then known as Theresa Sutherland, was sentenced in Hartford federal court to 51 months of imprisonment, followed by three years of supervised release, for engaging in a fraud and identity theft scheme at an insurance company where she was employed. As part of her sentence, DAVIS was ordered to pay total restitution of $400,000 to the victim insurance company and three previous employers that she defrauded.
Beginning in January 2015, DAVIS, through her attorney, made five separate motions to postpone her prison report date based on her claims of a diagnosis of terminal cancer and heart conditions. In association with her court motions, DAVIS submitted letters from various medical professionals detailing her claimed medical conditions. DAVIS created the letters and forged the medical professionals’ signatures. DAVIS’s prison report dates were continued based on these fraudulent submissions.
In March 2015, DAVIS changed her name from Theresa Juliate Sutherland to ALIYAH THERESA JULIATE DAVIS. DAVIS subsequently received a new Social Security number and Connecticut driver’s license under her new identity.
On April 19, 2016, DAVIS submitted an application for a U.S. passport at the U.S. Postal Service facility on Weston Street in Hartford. On the application where it states “Have you ever applied for or been issued a U.S. Passport Book or Passport Card?” DAVIS marked an “X” in the “No” box. In 2007, DAVIS applied for and received a U.S. passport when she was known as Theresa Juliate Sutherland.
At various times between December 2014 and September 2016, DAVIS was employed at a local insurance company and local hospitals. From May 28, 2016 to September 10, 2016, while she was employed at an insurance company and then a hospital under her new identity, DAVIS received $9,808 in unemployment compensation from the State of Connecticut under her previous identity.
DAVIS pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years; one count of knowingly making a false statement on a passport application, which carries a maximum term of imprisonment of 10 years; one count of making a false statement, which carries a maximum term of imprisonment of five years, and one count of aggravated identity theft, which carries a mandatory two-year term of imprisonment. She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 17, 2017.
DAVIS has been detained since her arrest on September 17, 2016.
This matter is being investigated by the U.S. Department of State, Diplomatic Security Service, U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor and East Windsor Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Eagle Butte Man Sentenced for Second Degree MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Second Degree Murder was sentenced on December 5, 2016, by U.S. District Judge Roberto A. Lange.
Corbyn Big Eagle, age 22, was sentenced to 180 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Big Eagle was indicted by a federal grand jury on July 14, 2015. He pled guilty on September 7, 2016.
The conviction stemmed from an incident on June 16, 2015. During a social gathering at Big Eagle’s residence in Eagle Butte, a misunderstanding between the victim and another male at the gathering resulted in the victim punching the other man. A third man at the party then intervened and took the victim to the floor, restraining him. Big Eagle went to the kitchen, grabbed a large knife, and stabbed the victim once in the chest. The stab wound was fatal and the victim died.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Big Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 21, 2016, by U.S. District Judge Roberto A. Lange.
Wambli Meeter, age 34, was sentenced to time served, which had been approximately 12 months in custody and treatment, 2 years of supervised release, a $1,000 fine, a $100 special assessment to the Federal Crime Victims Fund, and the forfeiture of $185 in U.S. currency.
Meeter was indicted by a federal grand jury on October 14, 2015, for Possession with Intent to Distribute a Controlled Substance. He pled guilty to the charge on December 15, 2015.
Between June 2, 2015 and June 10, 2015, Meeter knowingly and intentionally distributed and possessed with the intent to distribute methamphetamine, a Schedule II Controlled Substance, in South Dakota. On June 2, 2015, in Eagle Butte, Meeter possessed 4.47 grams of methamphetamine in six individual baggies, a syringe fully loaded with a clear liquid that field-tested positive for opiates, and brass knuckles. On June 10, 2015, in and around the Standing Rock Reservation in South Dakota, Meeter used, purchased, and distributed methamphetamine.
This case was investigated by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Meeter was released after sentencing.
District Man Pleads Guilty to Second-Degree Murder While Armed in November 2015 StabbingRead the Press Release
WASHINGTON -- Daniel Scott, 36, of Washington, D.C. pled guilty today to a charge stemming from an incident in November 2015 in which he stabbed another man in the face, causing the victim’s death, U.S. Attorney Channing D. Phillips announced.
Scott pled guilty in the Superior Court of the District of Columbia to second-degree murder while armed. The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 15 years. The Honorable Michael Ryan scheduled sentencing for Feb. 24, 2017.
According to the government’s evidence, during the early evening hours of Nov. 21, 2015, Scott became involved in an argument with a female panhandler over money she had received from a patron while standing outside of the 7-Eleven store in the 1100 block of South Capitol Street SW. At some point during this dispute, Scott obtained a knife and began swinging it at the female panhandler, who was also with a male companion. Shortly thereafter, the pair left the 7-Eleven property and began traveling towards M Street SE.
Unbeknownst to them, Scott followed the pair as they left the 7-Eleven and crossed the street. Scott then confronted them and lunged at the male, James Michael Neal, stabbing him once in the face with a butcher’s knife. Scott then threw the knife to the ground and fled the area. After a look-out was given, Scott was apprehended a short distance away at a nearby McDonald’s restaurant. Mr. Neal, 54, was transported to a local hospital to receive further medical treatment for the stab wound to the face, which was determined to have penetrated his nasal cavity, causing hemorrhaging throughout his brain and skull. Over the course of the night, his condition progressively deteriorated and on Nov. 22, 2015, he died from the injuries.
Scott has been in custody since his arrest.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of Assistant U.S. Attorney Charles J. Willoughby, Jr., who investigated and prosecuted the matter.
Developer Indicted for Embezzling from A Bankruptcy EstateRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Clark D. East (59, Sugarland, TX) with embezzlement from a bankruptcy estate. If convicted, he faces a maximum penalty of five years in federal prison.
According to the indictment, East obtained a loan from Stearns Bank, a member bank of the Federal Home Loan Bank of Minneapolis, to develop a property located at 3700 Ulmerton Road Plaza in Clearwater. East subsequently defaulted on the loan and Stearns Bank obtained approval to sell the property at foreclosure on March 27, 2012. The day before the scheduled foreclosure sale, East filed for bankruptcy protection with the United States Bankruptcy Court through his company, 3700 Ulmerton Road, LLC. During the bankruptcy proceedings, East was ordered by the Court to sell the property and pay $1.2 million in sales proceeds to Stearns Bank. Rather than repaying Stearns Bank, East embezzled $828,854.66 of proceeds that were part of the bankruptcy estate and due to Stearns Bank.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The Office of the United States Trustee for the Middle District of Florida, Tampa Division, also provided substantial assistance. The case will be prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay G. Trezevant.
Columbus, Ohio woman guilty of transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Marilyn Whatley, 38, of Columbus, Ohio, pled guilty in federal court today to transporting stolen goods across state lines, United States Attorney William J. Ihlenfeld, II, announced.
Whatley admitted to conspiring to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. She faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Chelsea Man Arrested for Multiple Bank RobberiesRead the Press Release
BOSTON – A Chelsea man, dubbed the “Spelling Bee Bandit,” was arrested and charged today in connection with four bank robberies in the Greater Boston area.
Jason S. Englen, 34, was charged with the robberies of: TD Bank in Arlington on Oct. 31, 2016; TD Bank in Reading on Nov. 5, 2016; Salem Five in Burlington on Nov. 7, 2016; and TD Bank in Peabody on Nov. 13, 2016. A probable cause and detention before U.S. District Court Magistrate Judge Marianne B. Bowler will continue tomorrow.
According to court documents, on Oct. 31, 2016, a man entered a branch of TD Bank in Arlington, approached a teller and presented a note written on a deposit slip with the word “ROBERY” written on it. The teller handed the man money from the drawer and he fled the bank. Following the robbery, the man’s image was circulated on public websites seeking information about his identity. Nearly identical incidents occurred on Nov. 5th at a branch of TD Bank in Reading, on Nov. 7th at a branch of Salem Five in Burlington, and on Nov. 13th at a branch of TD Bank in Peabody. During each robbery, the man handed the teller a note with the word “ROBERY” or “ROBERT” demanding cash. During the last robbery, the man told the teller he wanted $20 and $50 dollar bills. Following each robbery, the man’s image was circulated on public websites seeking information about his identity.
Based on the similarity of the robberies and the physical description of the robber provided by the bank tellers, a bulletin was circulated seeking the public’s help in identifying the perpetrator. As a result, law enforcement received information that the individual involved in the robberies was Englen. Englen, who was already in state custody on unrelated charges, was arrested by federal authorities today.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge bases upon the US Sentencing guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Suffolk County Sheriff Steven Tompkins; Arlington Police Chief Frederick Ryan; Reading Police Chief Mark D. Segalla; Burlington Police Chief Michael Kent; and Peabody Police Chief Thomas Griffin, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit is prosecuting the case.
Charleston drug dealer sentenced to federal prison for heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to two years and eight months in federal prison for a drug crime, announced United States Attorney Carol Casto. Antonio Tarvares Johnson, 39, previously pleaded guilty to distribution of heroin.
Johnson admitted that on September 28, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at the Motel 6 in Cross Lanes. Johnson additionally admitted that on November 9, 2015, he sold heroin to a confidential informant at America’s Best Value Inn in St. Albans. Following that drug deal, law enforcement arrested Johnson and recovered over $6,000 in cash from his pocket and wallet, which included $100 in prerecorded buy money from the November 9, 2015, controlled purchase. Johnson further admitted that he also sold drugs to a confidential informant on September 29, 2015, and on December 16, 2015.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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California Man Pleads Guilty to Perpetrating Trademark Scam and Money LaunderingRead the Press Release
Associate Pleads Guilty to Helping Launder Proceeds of Scam
A Southern California man who masterminded a $1.66 million mass-mailing scam targeting trademark applicants pleaded guilty today to charges of mail fraud and money laundering and his associate pleaded guilty to helping launder the scam’s proceeds.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Inspector in Charge Robert Wemyss of the United States Postal Inspection Service (USPIS) Los Angeles Division and Acting Special Agent in Charge Anthony J. Orlando of the Internal Revenue Service Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
Artashes Darbinyan, 37, of Glendale, pleaded guilty to one count of mail fraud and one count of conspiracy to launder monetary instruments before U.S. District Judge Stephen V. Wilson of the Central District of California. Orbel Hakobyan, 42, also of Glendale, pleaded guilty to one count of conspiracy to launder monetary instruments before Judge Wilson. Sentencing for both has been set for June 19, 2017.
As part of his guilty plea, Darbinyan admitted that he ran a mass-mailing scam through companies called Trademark Compliance Center (TCC) and Trademark Compliance Office (TCO). The scam involved fraudulent offers of a service in which TCC and TCO promised to monitor an applicant’s trademark for infringing marks and to register the trademark with U.S. Customs and Border Protection (CBP), which offers a real service that screens imports for possibly infringing trademarks. The offers were made via mail solicitations to applicants for U.S. trademarks for $385. Darbinyan never registered, nor ever intended to register, any of the trademarks with CBP for the customers who paid the fee.
Darbinyan also admitted to concealing his control over the scam through elaborate measures in which he illegally used the identities of other people to open accounts at virtual office centers in the Washington, D.C., area, which received and then forwarded victims’ payments to other virtual office centers in the Los Angeles area. Using those same illicit identities, Darbinyan then opened bank accounts at Wells Fargo through which he laundered the proceeds of the scam. To further avoid detection, Darbinyan paid virtual office fees with money orders; used bogus email accounts, which he would only log into using prepaid wireless modems; and regularly changed cell phone numbers.
As part of his guilty plea, Hakobyan admitted to helping launder the proceeds of the trademark scam. Specifically, Hakobyan deposited victims’ checks into bank accounts at Wells Fargo that had been opened under false names. Hakobyan misrepresented his identity to withdraw funds from the accounts at Wells Fargo in the form of cash and cashier’s checks, which he then used to purchase gold. In total, he admitted to helping launder approximately $1.29 million of the scam’s proceeds.
In total, Darbinyan admitted, the trademark scam defrauded approximately 4,446 victims of $1.66 million.
Darbinyan and Hakobyan were charged along with Albert Yagubyan, 36, of Burbank, California, in a second superseding indictment unsealed on July 19, 2016. Yagubyan, the former branch manager of the Wells Fargo branch where the majority of the scam’s proceeds were laundered, is awaiting trial. 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.
USPIS and IRS-CI investigated the case. Trial Attorneys William Johnston and Brian Kidd of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Today’s pleas are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.