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17 January 2017
Area Man Sentenced on Mailing Threatening CommunicationsRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Jeffrey Aaron Betrand, of South Carolina, was sentenced late last week to 33 months imprisonment in federal court. In August of 2016, Betrand pled guilty to the sole count in the indictment, Mailing Threatening Communications, in violation of Title 18, United States Code, Section 876. After Betrand completes the term of imprisonment, he will be on federal supervised release for 3 years.
The investigation of the case revealed that Mr. Betrand was incarcerated in a South Carolina state prison for a charge involving a woman who was also one of the victims in this case. He sent several letters to this victim via the U.S. Mail including one in which he threatened a male friend of the victim. After law enforcement was made aware of the letters, investigators with the SC Department of Corrections searched Betrand’s cell and found a drawing depicting a map of the victim’s apartment and a plan to kill a male friend of the victim. The plan included a laundry list of items needed to carry out the violent act.
The case was investigated by the South Carolina Department of Corrections, the Camden Police Department and the US Postal Inspection Service. Assistant United States Attorney John C. Potterfield of the Columbia United States Attorney’s Office prosecuted the case.
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Area Daycare Owner Indicted on Tax ChargesRead the Press Release
St. Louis, MO – Gwendolyn Hampton was indicted on tax evasion charges involving the years 2009-2013. The indictment alleges that during those years she sought to evade $376,463 in tax.
According to the indictment, Hampton owned and operated Hampton Academy, LLC, a daycare center that provided childcare to low income families. Between January 2009 and December 2013, Hampton Academy collected $2,387,386 in revenue. During that time she took $1,338,549 in cash and cashier’s checks from the business. For years 2009 and 2011 she did not file a federal tax return. For the years 2010, 2012 and 2013, Hampton filed false returns understating her income and tax owed.
“CI’s largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.
Hampton, St. Louis City, was indicted by a federal grand jury on January 4 on five felony counts of tax evasion. She was arrested earlier today and expected to appear in federal court this week.
If convicted, each count carries a maximum penalty of five years in prison and/or fines up to $100,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Animal Rights Activist Sentenced to 21 Months for Cross-Country Crime Spree Targeting Fur IndustryRead the Press Release
Assistant U.S. Attorneys John Parmley (619) 546-7957 or Michael Kaplan (619) 546-7927
NEWS RELEASE SUMMARY – January 17, 2017
SAN DIEGO – Animal-rights activist Nicole Kissane was sentenced in federal court today to 21 months in prison for terrorizing the fur industry during cross-country road trips in which she and coconspirator Joseph Buddenberg caused hundreds of thousands of dollars in damage by vandalizing properties and releasing mink from commercial farms.
During today’s sentencing hearing, U.S. District Judge Larry A. Burns described Kissane’s conduct as a “calculated, premeditated reign of terror over those in the fur industry.” Judge Burns also ordered Kissane to pay $423,477 in restitution to the victims.
Kissane pleaded guilty on December 27, 2016, to Conspiracy to Violate the Animal Enterprise Terrorism Act. Buddenberg entered his guilty plea to the same charge earlier in the year, on February 9, 2016. He was sentenced on May 2, 2016 to two years in prison and $398,272 in restitution.
“Vandalizing homes and businesses with acid, glue and chemicals in the dark of night is a form of domestic terrorism,” said Acting U.S. Attorney Alana W. Robinson. “Whatever your feelings about the fur industry, these sentences are a pretty strong signal that this isn’t the right way to effect change.”
“Today’s sentence sends a message to those who commit crimes in an attempt to advance their personal agendas,” stated FBI Special Agent in Charge Eric S. Birnbaum. “The FBI and our Joint Terrorism Task Force (JTTF) partners work together, share intelligence, and are able to connect cases to expose individuals engaged in this, or any, form of domestic terrorism.”
According to her plea agreement, Kissane admitted that during the summer and fall of 2013, she and Buddenberg caused hundreds of thousands of dollars in damage during their crime spree.
The defendants were charged under the Conspiracy to Violate the Animal Enterprise Terrorism Act. They were arrested in Oakland by agents from the FBI’s San Francisco field office.
In one instance described in the indictment, the defendants traveled from Oregon to San Diego in their 2012 Honda Fit on July 15, 2013 and used paint, paint stripper, a super glue-type substance, butyric acid, muriatic acid and glass etchant to vandalize Furs by Graf, a retail furrier located in San Diego, as well as the Spring Valley and La Mesa residences and personal property of the current and former owners of the business.
To publicize their crimes, the defendants drafted “communiqués” describing their conduct and posted them on websites associated with animal rights extremists, the indictment said.
Among some of the incidents of vandalism cited in the indictment: The defendants slashed tires of a meat distributor’s truck in San Francisco; smashed windows and glued the door locks at a furrier business in Minneapolis, Minnesota; vandalized and attempted to flood the Sun Prairie, Wisconsin home of an employee of the North American Fur Auctions.
DEFENDANTS
Nicole Juanita Kissane Age: 30 Oakland, CA
Joseph Brian Buddenberg Age: 32 Oakland, CA
SUMMARY OF CHARGES
Conspiracy to Violate the Animal Enterprise Terrorism Act – Title 18, U.S.C., Section 43 (a) (1), (2) (c) and (b) (3) (A) Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
Federal Bureau of Investigation, San Francisco and San Diego Field Offices
Joint Terrorism Task Force
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Marcos Montoya, Jr., 28, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Montoya was arrested in Dec. 2015, on a two-count indictment charging him with possession of methamphetamine with intent to distribute on Feb. 20, 2015, and maintaining a place for the purpose of storing, distributing and using methamphetamine and marijuana from Dec. 2014 through Feb. 20, 2015. According to the indictment, Montoya committed both crimes in Bernalillo County, N.M.
During today’s change of plea hearing, Montoya pled guilty to possession of methamphetamine with intent to distribute and admitted that on Feb. 20, 2015, he possessed more than 500 grams of methamphetamine which he intended to distribute to other people. Montoya further admitted that he stored most of the methamphetamine in a storage locker, but sold some of the drugs out of his house in Bernalillo County.
The statutory penalty for the crime to which Montoya pleaded guilty is a minimum of ten years and a maximum of life in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorneys Paul Mysliwiec and Letitia C. Simms.
Ahmet Okumus to Pay $180,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Ahmet Okumus for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when he acquired voting securities of Web.com Group, Inc. in 2016. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Okumus has agreed to pay a $180,000 civil penalty to resolve the lawsuit.
The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review. Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the department. The maximum civil penalty for an HSR violation increased from $16,000 per day to $40,000 per day effective Aug. 1, 2016.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Daniel P. Ducore, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Okumus Complaint Okumus CIS Okumus Explanation Okumus Final Judgment Okumus Stipulation
16 January 2017
Member of Dockworkers Union Sentenced to 41 Months in Prison in Scheme Involving Fraudulently Billing for Chiropractic ServicesRead the Press Release
LOS ANGELES – A member of the International Longshore and Warehouse Union (ILWU), Local 13, has been sentenced to 41 months in federal prison for his role in a scheme in which two medical clinics submitted more than a quarter-million dollars in bills to the union’s health care plan for chiropractic services that were not provided or were not medically necessary.
David Gomez, 53, of San Pedro, was sentenced on Monday, January 9, by United States District Judge R. Gary Klausner. Gomez was convicted in October of 20 counts of mail fraud. Gomez has been in custody since a federal jury returned its guilty verdicts.
The ILWU represents dockworkers at the ports of Los Angeles and Long Beach. Members of the union receive benefits, including health care benefits, through the ILWU-Pacific Maritime Association Welfare Plan.
According to the evidence presented at trial, Gomez and his co-defendant, Sergio Amador, opened a clinic in Long Beach in 2009 that operated under the name Port Medical and provided medical and chiropractic care. The next year, they opened a second clinic operating under the same name in San Pedro.
Gomez and Amador also created medical management companies that they used to receive funds generated by the medical clinics, which they then used to pay themselves and to pay incentives to ILWU members. These incentives were often paid as “sponsorships” of basketball or softball teams, with the understanding that the ILWU member receiving the “sponsorship” would visit, and encourage other team members to visit, Port Medical.
According to the evidence presented at trial, Port Medical chart entries were falsified to indicate that ILWU members and their dependents, including children as young as 5, had received repeated chiropractic services, including multiple sessions of massage therapy, that they had not. To accomplish this, ILWU members were asked to sign their names on multiple sign-in stickers that were used to create the fabricated chart entries, or their signatures on stickers affixed to the chart entries were simply forged.
Other evidence at trial related to instructions provided to Port Medical massage therapists on how to craft chart entries to maximize billing and make services appear to be medically necessary, a requirement for them to be covered by the ILWU-PMA Welfare Plan. Included were instructions to massage therapists never to write that a patient had indicated “no complaints,” and to make sure not to copy or write chart entries “exactly the same each time, change things up a little!!!”
According to court documents, a conservative assessment determined that the total amount of fraudulent bills was $258,913, and the health plan paid out $228,440. At last Monday’s sentencing hearing, Judge Klausner ordered Gomez to pay $201,000 in restitution to the health plan.
“This defendant managed a fraudulent scheme that targeted a program designed to provide benefits to Gomez’s fellow union members,” said United States Attorney Eileen M. Decker. “He was driven by his personal greed, and his criminal conduct undermined the union’s intention to bring medical benefits to other union members and their families.”
Amador pleaded guilty last year to one count of mail fraud and is scheduled to be sentenced by United States District Judge John A. Kronstadt on April 6.
The case against Gomez and Amador was investigated by the U.S. Department of Labor – Office of Inspector General, Office of Investigations; the U.S. Department of Labor – Employee Benefits Security Administration; and the Federal Bureau of Investigation.
“By defrauding the health plan of his fellow union members, Gomez betrayed and abused the trust of the very people his clinics purported to serve. Though this case is a sobering reminder of the often shameless nature of fraud schemes, today’s sentence sends a stern warning to those who would line their pockets at the expense of health plan participants and sponsoring employers. The Office of Inspector General will continue to work with our law enforcement partners to investigate the theft of union benefit plan assets,” stated Abel Salinas, Special Agent-in-Charge of the Los Angeles Office, Office of Inspector General, U.S. Department of Labor.
“The Employee Benefits Security Administration is pleased with the outcome of this case and hopes it serves as a warning to other potential bad actors. We will continue to work with our investigative partners to bring justice to those who commit similar crimes against the ILWU-PMA Welfare Plan, or any other employee-benefit plan,” said Crisanta Johnson, Regional Director for the Department of Labor's Employee Benefits Security Administration.
“Defendant Gomez concocted an elaborate scheme to enrich himself at the expense of his colleagues, their families and the insurance plan that protected their health,” said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “This successful prosecution was the result of a long-term effort by agents and prosecutors dedicated to combating health care fraud.”
The case was prosecuted by Assistant United States Attorney George S. Cardona, Chief of the Major Frauds Section.
13 January 2017
Whitefield Man Sentenced to Seven Years for Illegal Possession of a FirearmRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Peter Poland, 44, of Whitefield, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to seven years in prison and three years of supervised release for being a felon in possession of a firearm. He was also sentenced to serve a consecutive term of one year and one day in prison for violating the terms of his supervised release. Poland pleaded guilty to the offense on September 28, 2016.
According to court records, in March 2016, the defendant burglarized a residence in Whitefield and stole three firearms. At the time, he was prohibited from possessing firearms because of a prior felony drug conviction for which he was on supervised release.
The investigation was conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lincoln County Sheriff’s Office.
Valencia County Woman Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Fabrienne Rosalinda Morales, 39, of Peralta, N.M., pled guilty today in federal court to a heroin trafficking charge. Under the terms of her plea agreement, Morales will be sentenced to not more than 24 months in federal prison followed by a term of supervised release to be determined by the court.
Morales and her co-defendant Christopher Gonzales, 20, of Rio Rancho, N.M., were arrested in Jan. 2016, on a five-count indictment charging Morales and Gonzales with conspiracy, Gonzales with possession of heroin and suboxone with intent to distribute, and Morales with distribution of heroin and suboxone. The indictment was superseded on Feb. 9, 2016, to add a new codefendant, Ismael Vargas, 29, of Belen, N.M., to the conspiracy charge. According to the superseding indictment, the three defendants committed the crimes charged on Aug. 2, 2015, in Sandoval County, N.M. At the time, Gonzales was a corrections officer at the Sandoval County Detention Center.
During today’s proceedings, Morales pled guilty to one count of heroin distribution. In entering the guilty plea, Morales admitted that on Aug. 2, 2015, she smuggled heroin to the Sandoval County Detention Center and gave it to a corrections officer. A sentencing hearing has yet to be scheduled.
Gonzales and Vargas have entered pleas of not guilty and are pending trial, which is currently scheduled for March 2017. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Edward Han is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
United States Attorney’s Office Reaches Settlement with Luzerne County over Polling Place Access for VotersRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today a settlement with Luzerne County under Title II of the Americans with Disabilities Act (ADA) to improve physical accessibility at the county’s polling places for individuals who use wheel chairs and other mobility aids, and for individuals who are blind or have vision impairments.
According to United States Attorney Bruce D. Brandler, in the November 3, 2015 general election, the United States Attorney’s Office along with an architect from the Department of Justice surveyed 52 of the county’s 180 polling place locations. The survey resulted in a finding that many of the county’s polling places contain barriers to access for persons with disabilities.
Title II of the ADA prohibits discrimination on the basis of disability by a state or local
government in any of its programs or services, including its voting program. Thus, the ADA requires Luzerne County to select and use polling places that are accessible.
Luzerne County is working collaboratively with the United States Attorney’s Office to make all polling places accessible. Under the terms of the agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate to ensure accessibility on Election Day.
“The right to vote is the foundation of our democracy,” said U.S. Attorney Bruce D. Brandler. “We applaud Luzerne County’s commitment to ensure that all persons with disabilities have equal opportunities to vote in person at their polling places alongside their neighbors.”
This investigation was handled by Assistant United States Attorney Michael J. Butler with the assistance of the United States Department of Justice, Civil Rights Division (Disability Rights Section).
Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
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Ukrainians Sentenced to 25 Years in Federal Prison for Smuggling $10 Million of Cocaine on “Ghost Ship”Read the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Igor Polshyn (42, Yalta, Ukraine) and Oleskii Tsurkan (52, Moscow, Russia) each to 25 years in federal prison for conspiring to possess and possessing with the intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States. A federal jury found them guilty on September 30, 2016.
According to testimony and evidence presented at trial, on November 7, 2015, a U.S. Customs and Border Protection P-3 Orion aircraft detected a sailboat 56 miles south of the Dominican Republic, traveling at night on the high seas with no lights, and on a course to travel through the Mona Passage between the Dominican Republic and Puerto Rico. The Orion crew alerted the United States Coast Guard, which dispatched the USCG Cutter Bernard C. Webber to interdict the vessel. The Webber interdicted the sailboat 26 miles south of the Dominican Republic, still on a course to take it through the Mona Passage. The sailboat flew the Spanish flag and bore a Spanish registration number on the stern. Polshyn was the master of the vessel and Tsurkan was its sole crew member.
The Coast Guard eventually boarded the sailboat and, during an initial safety sweep, found over 100 kilograms of cocaine over a bilge access. The Coast Guard ultimately recovered an additional 270 kilograms of cocaine, for a total of 370 kilograms (814 lbs.) of cocaine, including cocaine commingled with the food supplies of the crew. Officials from DEA-Madrid and the Coast Guard Investigative Service traced the vessel registration number back to a sailboat near Barcelona, Spain. The sailboat interdicted by the Coast Guard was a “ghost ship,” using the stolen identity of the vessel in Barcelona to mask its true identity. The recovered cocaine had an approximate wholesale value of $10 million.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
U.S. Attorney Joyce White Vance Retiring After 25 Years as Federal ProsecutorRead the Press Release
BIRMINGHAM – U.S. Attorney Joyce White Vance announced today that she will retire from the Department of Justice, effective at midnight Jan. 19, after 25 years as a federal prosecutor.
“It has been an honor to serve the Northern District of Alabama as U.S. Attorney for the past 7½ years,” Vance said. “I thank the dedicated men and women in my office, and our federal, state and local law enforcement partners, for their tireless dedication. They serve with competence, integrity and a commitment to public service, and they honored me with their trust in my leadership. Together, we’ve taken on a full spectrum of challenges and have left our communities safer, while protecting the civil rights of all who live here.”
“Since the first year of the Obama Administration, U.S. Attorney Joyce White Vance has served the people of the Northern District of Alabama – and all of the American people – with compassion and integrity,” said Attorney General Loretta E. Lynch. “During her tenure, she oversaw the development of a comprehensive initiative to tackle opioid and heroin addiction. She helped lead an ongoing investigation into abuse in Alabama prisons. She fought corruption and brought actions to protect the rights of immigrants. And she has been a valuable partner in the department’s efforts to improve relationships between police officers and the people they serve, including by welcoming me to Birmingham in 2015 during my Community Policing Tour. In these and in so many other ways, Joyce has been a dedicated servant of the law and a tireless champion of justice. I thank her for her outstanding contributions to the Department of Justice, and I wish her well in her future endeavors.”
Vance was one of the first five U.S. Attorneys nominated by President Barack Obama. The Senate unanimously confirmed her nomination on Aug. 7, 2009. Before her appointment as U.S. Attorney, Vance spent 18 years in the federal prosecutor’s office, last serving as chief of its Appellate Division. Before that, she served as both an appellate lawyer and as a criminal prosecutor. Vance served on Attorney General Eric Holder’s Advisory Committee from 2009-2011.
During her seven years as the chief federal law enforcement officer for the 31-county Northern District of Alabama, Vance maintained a keen commitment to protecting civil rights. That commitment was reflected in some of the key civil and criminal cases that the office pursued, including the successful challenge of Alabama’s 2011 HB56 immigration law and the first-ever statewide investigation into conditions and sexual abuse in Alabama’s prisons for men. She also worked with the University of Alabama to develop an action plan to increase diversity of the University’s Greek system and entered into a settlement agreement with Jefferson County that rectified violations of the Americans with Disabilities Act at polling places. Vance partnered with the Department of Justice Civil Rights Division to bring Alabama into compliance with the Motor Voter Act.
In criminal civil rights matters, Vance’s office successfully prosecuted a string of “color of law” cases involving violent police misconduct and prosecuted a hate crime involving a defendant who tried to hire an undercover FBI agent, who he believed was a Ku Klux Klan hitman, to murder his African American neighbor.
Vance developed a community-wide initiative to combat heroin and prescription opiate addiction, based on the belief that it was not a problem we could “arrest our way out of.” She combined prosecutions of significant heroin traffickers with the creation of a Pills to Needles Initiative with the University of Alabama at Birmingham School of Public Health and the Jefferson County Department of Health that educated the public about the resurgence of heroin before it was widely recognized, and worked with a broad array of partners to identify and develop prevention and treatment opportunities.
Vance also worked closely with state and local law enforcement, in Birmingham and other cities, to establish violence reduction programs and to improve police-community relationships. Birmingham was one of six pilot cities for the National Initiative for Building Community Trust and Justice.
Recognizing that a smart criminal justice system focuses not only on enforcement work, but also on prevention and successful reentry to the community by former inmates, Vance initiated a project that seeks to identify and remove barriers to successful reentry, in order to reduce recidivism. That work included championing local businesses that successfully adopted ban-the-box employment practices to help people with criminal records find jobs, and creating a legal clinic at the University of Alabama School of Law to help people obtain driver’s licenses and overcome other obstacles to building productive lives.
Among the key criminal prosecutions during Vance’s tenure, the office prosecuted the state’s first material support of terrorism case in 2012. An Uzbek national was convicted and sentenced to more than 15 years in jail for providing material support to terrorism, threatening to kill President Barack Obama and illegally possessing a weapon.
The office also prosecuted Jonathan Dunning who, as the CEO of two non-profit health clinics meant to provide care to low-income individuals, fraudulently diverted $16 million in money and property for his personal benefit. Dunning was sentenced to 18 years in prison. Another of the office’s multi-million-dollar fraud prosecutions saw the conviction of Maurice William Campbell Jr., former state director of a consortium of business development centers, for a scheme to defraud the State of Alabama of more than $7 million. Campbell was sentenced to 15 years in prison.
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U.S. Attorney Files Civil Rights Suit Against National Developer to Remedy Pattern and Practice of Inaccessible Construction of Rental BuildingsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a federal civil rights lawsuit against EQUITY RESIDENTIAL and its affiliate ERP OPERATING L.P. (together, “EQUITY RESIDENTIAL”) to require them to remedy conditions at 170 Amsterdam Avenue, a large rental complex in Manhattan that was completed in 2015, to make the building accessible to people with disabilities and to ensure that EQUITY RESIDENTIAL will take steps to make accessible the multiple rental complexes that it is currently developing.
Manhattan U.S. Attorney Preet Bharara said: “With today’s lawsuit, we seek to ensure that a national developer, Equity Residential, not only will fix the inaccessible conditions at 170 Amsterdam Avenue, but also do what is necessary to ensure accessibility at its ongoing construction projects. This is one of more than a dozen suits this Office has brought in recent years to fulfill the Fair Housing Act’s promise of accessibility for people with disabilities.”
The Fair Housing Act’s (“FHA”) accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities. According to the allegations in the Complaint, EQUITY RESIDENTIAL has engaged in a pattern and practice of FHA violations by designing and constructing numerous rental buildings that contain inaccessible conditions, including 170 Amsterdam Avenue as well as earlier constructions like the 1210 Mass Apartments in Washington, D.C., and The Veridian in Silver Spring, Maryland.
According to the Complaint filed today in Manhattan, in 2015, EQUITY RESIDENTIAL designed and constructed 170 Amsterdam Avenue, a 236-unit rental complex on the upper west side of Manhattan, with inaccessible conditions similar to those present at the 1210 Mass Apartments and The Veridian. As alleged, the inaccessible conditions at 170 Amsterdam Avenue include excessively high thresholds from individual apartments to private gardens, insufficiently wide doorways within individual apartments, and insufficient clear width at the entrance to the on-site fitness center. The Complaint also alleges that EQUITY RESIDENTIAL currently is actively involved in designing and constructing several other rental buildings, including in San Francisco, Washington, D.C., and Seattle.
In the Complaint, the United States seeks a court order requiring EQUITY RESIDENTIAL to make appropriate retrofits at 170 Amsterdam Avenue and to take steps necessary to ensure that the rental buildings EQUITY RESIDENTIAL is currently developing will be designed and constructed in compliance with the FHA’s accessibility requirements.
EQUITY RESIDENTIAL was previously sued in 2006, in Maryland, for not complying with the FHA in constructing rental buildings like the 1210 Mass Apartments and The Veridian. In March 2016, the court presiding over the Maryland lawsuit issued a decision finding that EQUITY RESIDENTIAL had violated the FHA’s accessibility requirements in constructing seven rental buildings, including the 1210 Mass Apartments and The Veridian. In December 2016, EQUITY RESIDENTIAL settled the Maryland lawsuit and agreed to remedy inaccessible conditions at the 1210 Mass Apartments and The Veridian and the other five rental buildings. However, the settlement of the Maryland lawsuit did not address the lack of accessible features at 170 Amsterdam Avenue, which was designed and constructed even while the Maryland suit was pending.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Jacob Lillywhite, Jessica Jean Hu, and Natasha Teleanu are in charge of the case.
Two Men Pleaded Guilty to Armed Robbery of Multiple Bay Area BusinessesRead the Press Release
OAKLAND, Calif. – Shawan I. Spragans and Merl J. Simpson each pleaded guilty in federal court in Oakland today to robbery affecting interstate commerce (Hobbs Act robbery), conspiracy to commit Hobbs Act robbery, attempted Hobbs Act robbery, discharging a firearm in furtherance of Hobbs Act robbery, and being a felon in possession of firearms, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
In pleading guilty, Spragans, 41, of Oakland, and Simpson, 47, of Antioch, admitted to participating in a conspiracy to commit robberies in Northern District of California from around February 2016 until April 2016. The pair specifically admitted to committing the armed robbery of a Walgreens pharmacy in Berkeley, Calif.; a bar-b-que restaurant on Shattuck Avenue in Berkeley, Calif.; an Ethiopia food restaurant on Telegraph Avenue in Berkeley, Calif.; and the attempted robbery of a bar on Dolores Street in San Francisco. Spragans and Simpson also admitted that Spragans discharged a firearm during and in furtherance of the robbery of the Ethiopian restaurant.
Further, according to the plea agreements, Spragans, Simpson, and a co-conspirator agreed to rob all of these businesses at gunpoint. On March 3, 3016, Spragans and a co-conspirator entered the Walgreens wearing masks, gloves, and dark-colored clothing, pointed a firearm at Walgreens employees and customers, and stole cash from the Walgreens. Simpson drove the getaway vehicle. On March 20, 2016, Spragans and a co-conspirator entered the bar-b-que restaurant wearing masks and dark clothing, and forced three employees at gunpoint to stand still while Spragans and his co-conspirator robbed the restaurant. They fled the restaurant with the stolen cash, and Simpson drove them all away in the getaway vehicle. On April 7, 2016, Spragans and a co-conspirator entered the Ethiopian food restaurant wearing masks and dark clothing. They each pointed revolvers at two female employees and robbed them of the restaurant’s cash. Spragans entered the kitchen and encountered another employee, who struggled with Spragans as the employee attempted to escape. During that physical encounter, Spragans revolver was fired while pointed in the direction of the employee. The bullet missed the employee. Spragans and his co-conspirator then fled the restaurant with the stolen cash, and Simpson drove them all away in the getaway vehicle. In addition, on April 21, 2016, Spragans and Simpson attempted to rob the bar on Dolores at gunpoint; however, they were encountered by police who were already in place conducting surveillance on the location. The police apprehended and arrested Spragans and Simpson as they attempted to flee the area. The police also arrested a co-conspirator who was waiting in the getaway car.
Spragans and Simpson were arrested on April 21, 2016, by local law enforcement and initially remained in state custody. Spragans and Simpson were indicted federally on June 30, 2016, and made their initial appearance in federal court on July 7, 2016. They have since remained in federal custody.
Spragans’s and Simpson’s sentencing hearings are scheduled for April 5, 2017, before U.S. District Judge Yvonne Gonzalez Rogers. The maximum statutory penalties are (1) life in prison for discharging a firearm in relation to a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A)(iii); (2) twenty years in prison for Hobbs Act robbery, in violation of 18 U.S.C. § 1951(a); and (3) ten years in prison for being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Bill Gullotta is prosecuting the case with the assistance of Michelle Alter Eck and Trina Khadoo. The prosecution is the result of an investigation by the FBI and the Berkeley Police Department.
Two Louisiana Men Sentenced for Roles in On-line Pharmacy SchemeRead the Press Release
PITTSBURGH – Two Louisiana residents have been sentenced in federal court to three years of probation, a forfeiture of $433,833.00 and $2,000 fine on their convictions of fraud conspiracy, wire fraud, mail fraud and money laundering, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Anthony Rouse III, 40, of Thibodaux, Louisiana, and Troy Tapia, 46, of Morgan City, Louisiana.
According to the information presented to the court, the court was informed that Anthony Rouse III and Troy Tapia fulfilled US orders from Duangthip Chutivaraporn who operated a series of online pharmacy web sites that offered a wide variety of prescription drugs for sale to United States customers without the need of a prescription or a medical history. There was no physician monitoring drugs used by the customers or requirement of any diagnosis in order to purchase or receive these prescription drugs. The site defrauded customers with false representations as to the legality of obtaining prescription drugs without a prescription. Rouse and Tapia fulfilled orders for Nubain and Fioricet and received payment for their services by means of deposits of their portion of the sale proceeds to foreign bank accounts accessible to them by debit cards.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the U.S. Food and Drug Administration, Office of Criminal Investigations; the U.S. Immigration Customs Enforcement, Homeland Security Investigations; the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation; for the investigation leading to a successful prosecution.
Two Defendants Sentenced in $4 Million, Armed, Multistate Jewelry Store RobberiesRead the Press Release
PANAMA CITY, FLORIDA – Abigail Lee Kemp, 25, of Smyrna, GA, was sentenced to 10 years in prison today for conspiracy, interfering with commerce by robbery, and using a firearm during a crime of violence. Larry Bernard Gilmore, 43, of Atlanta, GA, was sentenced to 32 years in prison. They were ordered to pay $1,499,690 in restitution. The sentencing hearings for co-conspirators Lewis Jones III, 36, and Michael Bernard Gilmore, 47, both of Atlanta, GA, were continued to February 16 at 2:00 p.m. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between April 2015 and January 2016, the conspirators committed armed robberies of six jewelry stores in Panama City Beach, Florida; Woodstock and Dawsonville, Georgia; Bluffton, South Carolina; Sevierville, Tennessee; and Mebane, North Carolina. More than $4 million of jewelry was stolen during the time frame of the conspiracy.
After the April 2015 robbery, Jones and the Gilmores began training Kemp to rob the jewelry stores on her own. The training took place at the Gilmore's window tint shop in Atlanta, Georgia. Jones and the Gilmores reviewed jewelry store layouts with Kemp and taught her how to handle a gun, secure employees with zip ties, and what merchandise to steal. They also gave Kemp various code words, decided her clothes and disguises, and then purchased supplies for her. Jones and the Gilmores always selected the dates and locations of the jewelry stores to be robbed.
Thereafter, Kemp would enter an outlet mall jewelry store at approximately the same time of day, brandish a firearm, order the employees to the back of the store, and force them to lie face down while she zip tied their hands behind their backs. Hundreds of thousands of dollars-worth of jewelry was then removed from the jewelry display cases. Kemp would use an earpiece to communicate with her conspirators while Jones and the Gilmores conducted surveillance and security outside.
In December 2015, a jewelry store manager believed Kemp matched the description of the white female who was previously linked to the armed robberies of various jewelry stores in the southeast. The store manager requested that another employee contact the police. The conspirators decided to call off the robbery and left the store. Five days later, they robbed the Mebane, North Carolina, jewelry store.
This case resulted from an investigation by the Federal Bureau of Investigation and the Panama City Beach Police Department. Assistant United States Attorneys Kathryn D. Risinger and Michael J. Frank prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer(850) 216-3854, [email protected]
Three Corporate Executives Sentenced to Federal Prison for Bribing Dekalb County & Georgia World Congress Center Authority OfficialRead the Press Release
ATLANTA – Anthony Lepore, John Rife, and Brian Domalik, the former President, Regional Vice President, and Division Manager for Rite Way Service, Inc., have been sentenced for conspiracy, bribery and honest services fraud for their roles in a multi-year, multi-million-dollar scheme to bribe a public official who was employed with DeKalb County government and the Georgia World Congress Center Authority.
“Public corruption, whether it’s corrupt officials who take bribes or the boardroom executives who pay them, is absolutely unacceptable,” said U.S. Attorney John Horn. “These sentences should provide a measure of justice to the businesses across the State of Georgia that do business honestly, ethically, and lawfully.”
“This sentencing of three corporate executives brings to close an extensive federal public corruption investigation conducted by the FBI with assistance from the GBI. This case makes it very clear to all that those engaged in enticing public officials via bribes, kickbacks or quid pro quos, are subject to investigation and prosecution as well. The FBI asks that anyone with information regarding similar such activities involving public corruption to contact their nearest FBI field office,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Lepore was the President and CEO of Rite Way Service, Inc., an Alabama-based company that sought to do business with both DeKalb County and the Georgia World Congress Center Authority (GWCCA), a state government entity that manages the Georgia World Congress Center, the Georgia Dome, Atlanta’s Centennial Olympic Park, and other properties. Rife was the Rite Way Regional Vice President who oversaw the company’s Georgia Division, based in Norcross, Georgia. Domalik was the Division Manager in charge of Rite Way’s Georgia Division between 2010 and 2014.
Beginning in the summer of 2005, Lepore, Rife, and former Rite Way Georgia Division Manager Cecil Clark conspired to bribe Patrick Jackson, a public official who was simultaneously working full time as a contracting official for DeKalb County and the GWCCA, in connection with janitorial services contracts with those government entities. The government contracts were worth millions of dollars. The bribes amounted to over $100,000 in payments for Jackson’s rent, utilities, and a garage lease for a luxury apartment over a six-year period in downtown Atlanta, as well as cash payments, over $24,000 in furniture for the apartment, a $5,100 deposit for event space for a party that that Jackson threw, and other benefits. Domalik joined the conspiracy in late 2010, when Clark resigned from Rite Way, and continued the scheme with Lepore and Rife through 2012.
In exchange for the payments and other benefits from Rite Way, Jackson used his position as a public official to help Rite Way win, maintain and increase profits from multi-year janitorial services contracts with DeKalb County and the GWCCA worth millions of dollars.
Patrick Jackson, 55, of Loganville, Georgia, was indicted by a federal grand jury on September 9, 2014 on one count of conspiracy to commit honest services fraud, and nine counts of honest services fraud. Jackson pleaded guilty to one count of conspiracy, and was sentenced to four years, three months in federal prison, ordered to pay restitution to DeKalb County and GWCCA, and fined $20,000.
Cecil Clark, 55, of Jonesboro, Georgia, waived indictment and pleaded guilty to a Criminal Information charging him with conspiracy to commit bribery on May 26, 2015. Ultimately, Clark was sentenced to serve one year, one month in federal prison, ordered to pay restitution to DeKalb County and GWCCA, and fined $20,000.
Anthony Lepore, 64, of Birmingham, Alabama, was sentenced to nine years in prison, to be followed by two years of supervised release. He was fined $115,000, and ordered to pay $165,415 in restitution.
John Rife, 66, of Cumming, Georgia, was sentenced to three years, one month in prison, to be followed by three years of supervised release. He was fined $100,000, and ordered to pay $168,715 in restitution.
Brian Domalik,49, of Kennesaw, Georgia, was sentenced to one year, eight months in prison, to be followed by two years of supervised release. He was fined $25,000, and ordered to pay $45,408 in restitution.
This case was investigated by the Federal Bureau of Investigation. Valuable assistance was also provided by the Georgia Bureau of Investigation.
Assistant U.S. Attorney Kamal Ghali prosecuted the case. Former Assistant U.S. Attorneys Jamie L. Mickelson and David M. Chaiken previously prosecuted this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
The Justice Department and EPA Reach Clean Water Act Settlement with Pepco to Reduce Pollution to Anacostia RiverRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency announced today a settlement with the Potomac Electric Power Company (Pepco) for alleged violations of Pepco’s Clean Water Act permit at its service center located in Anacostia. Under the settlement, Pepco will implement a number of measures to reduce metals in stormwater entering into its drainage system and will install an in-pipe treatment system to further treat the stormwater, which discharges into the Anacostia River. Pepco also will pay a civil penalty of $1.6 million. Pepco also agreed to perform a mitigation project to eliminate stormwater discharges from another outfall at the facility, and will pay an additional stipulated penalty of $500,000 if it fails to put the project into operation.
The United States filed its complaint in October, 2015, in the US District Court for the District of Columbia and alleged violations of limits in the EPA Clean Water Act Permit for metals, including copper, zinc, iron and nickel, and total suspended solids (TSS). The consent decree filed with the court today requires Pepco to put into place Best Management Practices or BMPs to prevent the metals and other pollutants from entering into Pepco’s stormwater drainage system, including booms and filters at each drain leading into the system, as well as enhanced inspections and other measures. In addition, Pepco will install in-pipe treatment systems in several areas to remove the metals from the stormwater in the drainage system until the permit limits are met. Pepco also will implement a mitigation project using vegetation and a holding pond to capture and treat stormwater that currently drains from the Benning Street facility into the Anacostia River.
At 8.7 miles, the Anacostia River is a major tributary of the Potomac River, which ultimately flows into the Chesapeake Bay. The Anacostia River is impaired for organics, heavy metals and sediment. EPA and its state partners, including the District of Columbia, have focused efforts on addressing pollution in the Anacostia River in the past decade, through Clean Water Act permits, judicial consent decrees and other regulatory mechanisms.
“This agreement will aid the continuing recovery of the Anacostia River by cleaning up contaminated stormwater from this Pepco facility,” said Assistant Attorney General John C. Cruden. “This is part of the ongoing and substantial efforts by EPA and the Department of Justice to address sources of water pollution and bring great American rivers like the Anacostia back to health. I have personally kayaked the River and know its importance in our Washington, D.C. ecosystem.”
“Controlling stormwater runoff is essential to protecting and restoring our urban waterways” said EPA Regional Administrator Shawn M. Garvin. “This settlement underscores EPA’s commitment to continuing the progress that we and our partners have made along the Anacostia.”
The Pepco facility historically included a power plant that was shut down in 2012 and has been removed. The property is also the subject of an on-going study and clean-up of soil and other contamination being performed under a consent decree with the District of Columbia Department of Energy and Environment.
On March 28, 2016, the District Court granted the request of the Anacostia Riverkeeper, an environmental organization, to intervene in the lawsuit.
The consent decree was lodged in the District Court for the District of Columbia. Notice of the lodging will appear in the Federal Register. The Decree is subject to a public comment period of not less than 30 days before the consent decree can be entered by the court. The consent decree can be viewed at www.justice.gov/enrd/consent-decrees.
Takata Corporation Agrees to Plead Guilty and Pay $1 Billion in Criminal Penalties for Airbag SchemeRead the Press Release
Three Takata Executives Charged with Wire Fraud and Conspiracy
Tokyo-based Takata Corporation, one of the world’s largest suppliers of automotive safety-related equipment, agreed to plead guilty to wire fraud and pay a total of $1 billion in criminal penalties stemming from the company’s fraudulent conduct in relation to sales of defective airbag inflators. An indictment was also unsealed charging three Takata executives with wire fraud and conspiracy in relation to the same conduct.
U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Chief Andrew Weissmann of the Fraud Section of the Justice Department’s Criminal Division, Special Agent in Charge David P. Gelios of the FBI’s Detroit Field Office and Inspector General Calvin L. Scovel III of the U.S. Department of Transportation Office of Inspector General made the announcement.
“Automotive suppliers who sell products that are supposed to protect consumers from injury or death must put safety ahead of profits,” said U.S. Attorney McQuade. “If they choose instead to engage in fraud, we will hold accountable the individuals and business entities who are responsible.”
“For more than a decade, Takata repeatedly and systematically falsified critical test data related to the safety of its products, putting profits and production schedules ahead of safety,” said Fraud Section Chief Weissmann. “This announcement is the latest in the automotive industry enforcement actions the Fraud Section has taken to protect U.S. consumers against fraud.”
“Today’s criminal charges of the Takata Corporation and three of its employees should be a reminder to other corporations and their employees that if they commit fraud, the FBI and its law enforcement partners will ensure they are held accountable for their actions,” said Special Agent in Charge Gelios. “Whether it is the manipulation of test results which impact customer safety, defective product development or any other type of fraud, we will continue to aggressively investigate corporate fraud allegations to protect consumers in the United States and elsewhere.”
“I offer my deepest sympathies to the families and friends of those who died and to those who were injured as a result of the Takata Corporation’s failure to fulfill its obligation to ensure the safety of its airbag systems,” said Inspector General Scovel. “Because safety is and will remain the highest priority for my office, we will continue to work tirelessly with our law enforcement and prosecutorial partners in pursuing those who commit criminal violations of transportation-related laws and regulations. Along with similar settlements with General Motors in September 2015 and Toyota in March 2014, today’s agreement makes clear to all auto manufacturers and parts suppliers their duty in keeping the public safe.”
According to the company’s admissions, in the late 1990s, Takata began developing airbag inflators that relied upon ammonium nitrate as their primary propellant. From at least in or around 2000, Takata knew that certain ammonium nitrate-based inflators were not performing to the specifications required by the auto manufacturers. Takata also knew that certain inflators had sustained failures, including ruptures, during testing. Nevertheless, Takata induced its customers to purchase these airbag systems by submitting false and fraudulent reports and other information that concealed the true condition of the inflators. This fraudulent data made the performance of the company’s airbag inflators appear better than it actually was, including by omitting that, in some instances, inflators ruptured during testing. Takata employees – including a number of key executives – routinely discussed the falsification of test reports being provided to Takata’s customers in email and in verbal communications. Even after the inflators began to experience repeated problems in the field – including ruptures causing injuries and deaths – Takata executives continued to withhold the true and accurate inflator test information and data from their customers.
In addition, Takata took no disciplinary actions against those involved in the falsification of test data until 2015, despite the fact that senior executives had been made aware of the fraudulent conduct years earlier.
Takata has agreed to plead guilty to a one-count criminal information filed today in the Eastern District of Michigan and assigned to U.S. District Judge George Caram Steeh, charging the company with one count of wire fraud. Under the terms of the agreement, Takata will pay a total criminal penalty of $1 billion, including $975 million in restitution and a $25 million fine. Two restitution funds will be established: a $125 million fund for individuals who have been physically injured by Takata’s airbags and who have not already reached a settlement with the company, and a $850 million fund for airbag recall and replacement costs incurred by auto manufacturers who were victims of Takata’s fraud scheme. A court-appointed special master will oversee administration of the restitution funds. Takata has also agreed to implement rigorous internal controls, retain a compliance monitor for a term of three years and cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
The three Takata executives – Shinichi Tanaka, 59; Hideo Nakajima, 65; and Tsuneo Chikaraishi, 61, all Japanese citizens – were each charged in an indictment filed on Dec. 7, 2016, in the Eastern District of Michigan with one count of conspiracy to commit wire fraud and five counts of wire fraud for their alleged conduct in connection with the above-described fraud scheme.
The department reached this resolution based on a number of factors, including Takata’s extensive cooperation with the government’s investigation. However, the company did not receive more significant mitigation credit, either in the penalty or the form of resolution, because of the nature of the conduct to which the company is pleading guilty, including the approximate 15-year duration of the fraud, the pervasiveness of the scheme into the executive level of management and the potential risk the fraud posed to drivers and passengers.
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.
The FBI and the U.S. Department of Transportation’s Office of Inspector General investigated the case. Assistant Chief Robert Zink and Trial Attorneys Brian K. Kidd, Christopher D. Jackson and Andrew R. Tyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John K. Neal, Erin S. Shaw and Andrew J. Yahkind of the Eastern District of Michigan are prosecuting the case. The Criminal Division’s Office of International Affairs also provided assistance.
Takata Corporation Agrees to Plead Guilty and Pay $1 Billion in Criminal Penalties for Airbag SchemeRead the Press Release
Three Takata Executives Charged with Wire Fraud and Conspiracy
Tokyo-based Takata Corporation, one of the world’s largest suppliers of automotive safety-related equipment, agreed to plead guilty to wire fraud and pay a total of $1 billion in criminal penalties stemming from the company’s fraudulent conduct in relation to sales of defective airbag inflators. An indictment was also unsealed charging three Takata executives with wire fraud and conspiracy in relation to the same conduct.
U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Chief Andrew Weissmann of the Fraud Section of the Justice Department’s Criminal Division, Special Agent in Charge David P. Gelios of the FBI’s Detroit Field Office and Inspector General Calvin L. Scovel III of the U.S. Department of Transportation Office of Inspector General made the announcement.
“Automotive suppliers who sell products that are supposed to protect consumers from injury or death must put safety ahead of profits,” said U.S. Attorney McQuade. “If they choose instead to engage in fraud, we will hold accountable the individuals and business entities who are responsible.”
“For more than a decade, Takata repeatedly and systematically falsified critical test data related to the safety of its products, putting profits and production schedules ahead of safety,” said Fraud Section Chief Weissmann. “This announcement is the latest in the automotive industry enforcement actions the Fraud Section has taken to protect U.S. consumers against fraud.”
“Today’s criminal charges of the Takata Corporation and three of its employees should be a reminder to other corporations and their employees that if they commit fraud, the FBI and its law enforcement partners will ensure they are held accountable for their actions,” said Special Agent in Charge Gelios. “Whether it is the manipulation of test results which impact customer safety, defective product development or any other type of fraud, we will continue to aggressively investigate corporate fraud allegations to protect consumers in the United States and elsewhere.”
“I offer my deepest sympathies to the families and friends of those who died and to those who were injured as a result of the Takata Corporation’s failure to fulfill its obligation to ensure the safety of its airbag systems,” said Inspector General Scovel. “Because safety is and will remain the highest priority for my office, we will continue to work tirelessly with our law enforcement and prosecutorial partners in pursuing those who commit criminal violations of transportation-related laws and regulations. Along with similar settlements with General Motors in September 2015 and Toyota in March 2014, today’s agreement makes clear to all auto manufacturers and parts suppliers their duty in keeping the public safe.”
According to the company’s admissions, in the late 1990s, Takata began developing airbag inflators that relied upon ammonium nitrate as their primary propellant. From at least in or around 2000, Takata knew that certain ammonium nitrate-based inflators were not performing to the specifications required by the auto manufacturers. Takata also knew that certain inflators had sustained failures, including ruptures, during testing. Nevertheless, Takata induced its customers to purchase these airbag systems by submitting false and fraudulent reports and other information that concealed the true condition of the inflators. This fraudulent data made the performance of the company’s airbag inflators appear better than it actually was, including by omitting that, in some instances, inflators ruptured during testing. Takata employees – including a number of key executives – routinely discussed the falsification of test reports being provided to Takata’s customers in email and in verbal communications. Even after the inflators began to experience repeated problems in the field – including ruptures causing injuries and deaths – Takata executives continued to withhold the true and accurate inflator test information and data from their customers.
- addition, Takata took no disciplinary actions against those involved in the falsification of test data until 2015, despite the fact that senior executives had been made aware of the fraudulent conduct years earlier.
Takata has agreed to plead guilty to a one-count criminal information filed today in the Eastern District of Michigan and assigned to U.S. District Judge George Caram Steeh, charging the company with one count of wire fraud. Under the terms of the agreement, Takata will pay a total criminal penalty of $1 billion, including $975 million in restitution and a $25 million fine. Two restitution funds will be established: a $125 million fund for individuals who have been physically injured by Takata’s airbags and who have not already reached a settlement with the company, and a $850 million fund for airbag recall and replacement costs incurred by auto manufacturers who were victims of Takata’s fraud scheme. A court-appointed special master will oversee administration of the restitution funds. Takata has also agreed to implement rigorous internal controls, retain a compliance monitor for a term of three years and cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
The three Takata executives – Shinichi Tanaka, 59; Hideo Nakajima, 65; and Tsuneo Chikaraishi, 61, all Japanese citizens – were each charged in an indictment filed on Dec. 7, 2016, in the Eastern District of Michigan with one count of conspiracy to commit wire fraud and five counts of wire fraud for their alleged conduct in connection with the above-described fraud scheme.
The department reached this resolution based on a number of factors, including Takata’s extensive cooperation with the government’s investigation. However, the company did not receive more significant mitigation credit, either in the penalty or the form of resolution, because of the nature of the conduct to which the company is pleading guilty, including the approximate 15-year duration of the fraud, the pervasiveness of the scheme into the executive level of management and the potential risk the fraud posed to drivers and passengers.
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.
The FBI and the U.S. Department of Transportation’s Office of Inspector General investigated the case. Assistant Chief Robert Zink and Trial Attorneys Brian K. Kidd, Christopher D. Jackson and Andrew R. Tyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John K. Neal, Erin S. Shaw and Andrew J. Yahkind of the Eastern District of Michigan are prosecuting the case. The Criminal Division’s Office of International Affairs also provided assistance.
Court Documents:
Takata Information Takata Plea Agreement Tanaka et al IndictmentStatement by Attorney General Loretta E. Lynch on the Departure of John Leonardo, U.S. Attorney for the District of ArizonaRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the departure of Judge John Leonardo, U.S. Attorney for the District of Arizona:
“During his four and a half years as United States Attorney for the District of Arizona, Judge John Leonardo has worked tirelessly to uphold our laws and defend our values,” said Attorney General Loretta E. Lynch.
“During his tenure, he oversaw a number of significant cases, including the first jury trial involving a domestic attack committed in the name of ISIL and the government’s successful prosecution of the perpetrator of the 2011 mass shooting in Tucson. He was also a steadfast partner to Arizona’s 22 federally recognized Indian tribes, working closely with tribal officials to combat violent crime in Indian Country. John has served the people of Arizona – and all of the American people – with integrity and distinction. I want to thank him for his exceptional contributions, and I wish him the best in his future endeavors.”
Shreveport man sentenced to more than 11 years in prison for methamphetamine, firearm chargesRead the Press Release
SHREVEPORT, La. – U.S. Attorney Stephanie A. Finley announced that a Shreveport man was sentenced Thursday to 135 months in prison for methamphetamine distribution and handgun possession.
Paul Matthew Garza, 35, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of drug trafficking. He was also sentenced to five years of supervised release. According to the September 20, 2016, guilty plea, Garza’s vehicle was pulled over during a traffic stop on May 25, 2016, near the Louisiana-Texas border in Caddo Parish. Upon searching his vehicle, law enforcement found 408 grams of methamphetamine and 142.73 grams of Xanax bars. Upon searching his home, additional methamphetamine and Xanax were found. A Ruger LCP .380 semi-automatic handgun, digital scales and $17,400 were also found in his home.
The DEA and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
Shreveport man sentenced to 60 months in prison for child pornography chargeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced Monday to five years in prison for possessing child pornography.
Ronald Wilson, 54, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of child pornography. He was also sentenced to five years of supervised release and must register as a sex offender. According to the April 14, 2016 guilty plea, law enforcement officers searched the Wilson’s Shreveport residence in March of 2015. Officers found 19 videos of child pornography stored on several electronic devices in his bedroom.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations, Louisiana State Attorney General’s Office and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Second Haitian National Sentenced to 19 Years in Prison for International Hostage Taking of U.S. CitizenRead the Press Release
Marcus Noel, 40, of Port-au-Prince, Haiti, was sentenced by U.S. District Court Judge Joan A. Lenard to 235 months’ imprisonment after having previously pled guilty to the international hostage taking of a United States citizen in Haiti. Co-defendant Moises Louinis, 24, also of Port-au-Prince, was previously sentenced to 144 months’ imprisonment for his participation in the scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to statements made and documents filed in court, defendants Noel and Louinis were charged with the armed hostage taking of a United States citizen on July 5, 2014, in Petion-ville, a neighboring suburb of Port-au-Prince, Haiti. Noel and Louinis approached the victim as she stood by the side of the road and forced her into her car at gunpoint. The defendants then drove with the victim around Port-au-Prince and forced her to place ransom calls to various family members in Haiti. The victim was eventually taken to a school operated by Noel, where she was kept blindfolded, gagged and handcuffed inside a locked room for three days. In addition, the victim was forced to sleep on dirt floors and given only minimal food and water. During the victim’s captivity, Noel continued to call the victim’s family members to demand a $150,000 ransom and made threats to kill the victim and her children if the ransom was not paid. On July 7, 2014, the victim was rescued by Haitian law enforcement officials.
Mr. Ferrer commended the investigative efforts of the FBI, Haitian National Police and the Central Directorate of the Judicial Police (DCPJ) Anti-Kidnapping Unit. Mr. Ferrer thanked the Haitian Government, including the Haitian Ministry of Justice for their assistance with this matter. The case was prosecuted by Assistant U.S. Attorney Cristina M. Moreno.
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.
Schenectady Felon Convicted of Illegally Possessing Handgun and AmmunitionRead the Press Release
ALBANY, NEW YORK – A jury yesterday voted to convict Tameen “Nitty” Johnson, age 39, of Schenectady, New York, of illegally possessing a loaded handgun.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Andrew W. Vale of the Albany Division of the Federal Bureau of Investigation.
Johnson could not possess the handgun or ammunition because of prior felony convictions for firearm, drug and assault offenses. He faces at least 15 years and up to life in prison when he is sentenced by Senior United States District Judge Thomas J. McAvoy.
The evidence at trial showed that Johnson possessed a Hi-Point JCP .40 caliber firearm loaded with seven rounds of .40 caliber ammunition. The handgun had a defaced serial number. Johnson sold the loaded firearm to another man inside a convenience store in Schenectady, New York, for $200. Johnson, after asking if the firearm would be used “to book somebody,” showed the man how to operate the firearm so that he could “handle his business,” and repeatedly warned him not to lose the “hammer.”This prosecution resulted from an investigation by the Capital District Safe Streets Task Force, which includes members of the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives, the New York State Police, the Schenectady Police Department, the Schenectady County District Attorney’s Office, the New York State Department of Corrections and Community Supervision, the Albany County Sheriff’s Office, and the New York Air National Guard.
The case is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Savannah Man Convicted of Armed Robbery of Wells Fargo Bank BranchRead the Press Release
SAVANNAH, GA: On January 11, 2017, following a two-day trial before U.S. District Judge William T. Moore, Jr., a federal jury convicted Lamarlvin Arkeena Watts, 22, of armed bank robbery and brandishing a firearm during a crime of violence.
According to the evidence presented at trial, Watts veiled himself with a camouflage bandana and invaded the Wells Fargo branch at 1900 E. Victory Drive in Savannah at approximately 10:10 a.m. on July 14, 2015. With his finger on the trigger of a semiautomatic pistol, Watts threatened to shoot two of the bank’s tellers if they refused to surrender the cash in their control. Although Watts made off with more than $2,300.00, he was quickly identified as the perpetrator and arrested the following day. Searches of Watts’ house and vehicle revealed the shoes and one of the disposable gloves worn during the robbery, several hundred dollars of cash, and more than a dozen rounds of ammunition compatible with the gun Watts used to threaten the tellers. Hours after the robbery, Watts hired a convicted felon to cover up distinctive tattoos on his throat and forehead that were visible in the bank’s surveillance video footage, which law enforcement had disseminated through the media to enlist the public’s assistance in identifying the robber.
For his commission of armed bank robbery, Watts faces a term of imprisonment of up to 25 years, a fine of up to $250,000, and up to five years of supervised release. He must also make restitution to Wells Fargo. For brandishing a firearm during the bank robbery, Watts will be required to serve at least 7 additional years in prison. There is no parole in the federal system.
United States Attorney Edward J. Tarver stated, “Savannah is the Hostess City of the South; not the Wild West. This office will continue to aggressively prosecute violent offenders who endanger the community through their criminal misuse of firearms.”
The Federal Bureau of Investigation, the FBI’s Southeast Georgia Violent Crimes Task Force, and the Savannah-Chatham Metropolitan Police Department investigated the robbery with substantial assistance from the ATF and the GBI’s Division of Forensic Sciences.
Assistant United States Attorneys Theodore S. Hertzberg and Tania D. Groover prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Rochester Man Sentenced to Prison in Jamaican Lottery Scam CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Roydel Nicholson, 64, of Rochester, NY, was convicted following a jury trial of mail fraud and international money laundering for his role as a money-mule in the Jamaican lottery scam, was sentenced by U.S. District Judge David G. Larimer to 87 months in prison. The defendant will also be required to pay restitution in the amount of $145,794.
Assistant U.S. Attorney John J. Field, who prosecuted the case, stated that between December 2012 and January 2014, Nicholson acted as a money-mule in the Jamaican lottery scam, which targeted the elderly and vulnerable. In this role, the defendant received packages of cash and bank checks via the U.S. mail totaling more than $145,000. The cash and checks came from a 95-year-old victim in California. Nicholson then forwarded some of the money to other members of the scam in Jamaica and elsewhere, and kept the remainder for himself.
The Jamaican Lottery Scam is a widespread fraud that targets the vulnerable elderly in this country. Typically, telemarketers based in Jamaica call victims while disguising their true telephone numbers using various techniques, tell the victims that they have won a multimillion dollar lottery prize, and tell them that in order to receive their winnings they need to send money to pay for taxes, fees, or other purported expenses. The victim is commonly directed to send the money to a U.S.-based person, the money-mule, who collects the money, takes a cut of the proceeds, and forwards the rest to the organizers of the fraud. According to estimates published by news outlets, American victims have been sending approximately $300 million a year to Jamaica as a result of this fraud.
The sentencing is the result of an investigation by Inspectors with the United States Postal Inspection Service, acting under the direction of Shelly Binkowski, Inspector-In- Charge, Boston Division, and Special Agents with Immigration and Customs Enforcement, Homeland Security Investigations, acting under the direction of James Spero, Special Agent-In-Charge, Buffalo Division.
Rochester Man Sentenced for Failing to Pay Federal Income TaxesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Mura, 67, of Rochester, NY, who was convicted of failing to file federal income tax returns, was sentenced by U.S. Magistrate Judge Marian W. Payson to one year in prison. The defendant was also ordered to pay the Internal Revenue Service $300,636.82.
According to Assistant U.S. Attorney John Field, who handled the case, Mura worked as an investment advisor with local brokerage firms, and earned significant money in commissions and other income. Despite knowing that he was required to report such income, and pay taxes on it, the defendant failed to file any federal tax returns for 2009, 2010, 2011, and 2012.
The sentencing is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigations, under the direction of Acting Special Agent-in-Charge Kathy A. Enstrom, New York Field Office.
Remarks by U.S. Attorney Zachary T. Fardon at News Conference on Investigation of Chicago Police DepartmentRead the Press Release
Thank you Vanita. I am grateful to you, Attorney General Lynch, and to all of the outstanding women and men from the Civil Rights Division and my Office who have spent the last 13 months working so hard to make today happen.
Today, history is made, and it couldn’t come at a more important time. The past year has been among the most brutal in Chicago memory. Gun violence has overwhelmed us. We have been thunderstruck with grief and heartbreak, fear and confusion, uncertainty and sadness. Today’s findings, coupled with the City and Chicago Police Department’s commitment to work with us toward sustained change, are an historic turning point, a major step forward.
This is hard. I’m in law enforcement and have spent much of my career working with CPD. They are a noble institution with thousands of wonderful and brave public servants. The bad officers are fewer; the good officers are many.
But the institution as a whole has some challenges, and those challenges are getting in the way of being as good as we can be at fighting crime. I have seen that first hand.
The first step is taking an honest look at what’s wrong. And to be clear, that doesn’t mean pointing fingers or casting blame; that’s not what this is about. It’s about what an incredibly challenging job it is to be a police officer, and making sure that our police officers have what they need to do the job right.
As Vanita and the Attorney General both mentioned, the City and CPD have not stood still while we conducted this review. I want to thank and commend the City, Mayor Emanuel, Superintendent Johnson, and the many others at CPD and the City who have worked hard and thoughtfully over this past year or more. They have led, and are leading a number of new reforms and efforts to address some of these deficiencies.
In our report, we address each of those new measures -- in some cases simply with applause, because we agree with them; in other cases, by pointing out how or where we find the measures to be insufficient or inadequate. Those critiques, while important, do not detract from the reality that the City and CPD have leaned forward and are pushing for change. And with the City and CPD’s agreement today, we now have a framework – an anticipated Consent Decree that will include an Independent Monitor – for not only making sure change happens, but making sure it sticks.
Let me emphasize that point. The deficiencies we found are longstanding, some decades old. Prior reform efforts in Chicago’s history -- and there have been many -- have not gotten the job done. And over the years, these festering problems have impacted and to a degree even come to define CPD’s culture.
CPD officers need and deserve what the citizens of Chicago want and deserve: a culture of excellence; a culture of integrity; a culture of altruism; a culture of pride in public service. Today is a big step toward manifesting that culture. And I again thank the Superintendent and the Mayor, as well as their leadership teams, for being part of that.
There has been, over the past couple years, a lot of pain and polarization about policing. There are those who are very skeptical about police and want a complete overhaul. And there are those who think that police, particularly in a violence-ridden city, don’t need any reform and should be unfettered by scrutiny.
Neither. There is so much about CPD that is great and worthy of our deepest respect. And yet no one is above scrutiny, especially our public institutions. This report is balanced, and the truth lies in the balance. Today’s findings are consistent with a police force that is proactive, vigilant and effective. One is a means to the other. I strongly believe implementing these findings is a necessary precursor to our long-term fight against violent crime in Chicago.
Chicago is a world class city that faces a tragic and challenging reality in the form of our gun violence epidemic. Especially last year, but for decades now, we have had too many people die from gun violence; too many kids struck by errant bullets; and entire neighborhoods on the south and west sides unfairly, disproportionately afflicted by gun violence. I spend a large chunk of every day working with CPD and others to stop gun violence in those neighborhoods. For over three years, that is what has kept me up at night. And one thing I have learned is that for us to succeed, we need to fix these systemic issues at CPD.
When officers do bad things and there’s no accountability, that hurts us all. It erodes trust. And when you repeat that pattern year after year, that breaks trust. Broken trust seriously impairs law enforcement. As Superintendent Johnson has said, if folks don’t trust and respect CPD, they won’t work with CPD. If victims, victims’ families, and witnesses across entire communities won’t provide information to help solve crimes and take violent criminals off the street, then crimes don’t get solved, and violence continues.
Today, with the City and CPD, we begin to fix that paradigm. By providing CPD officers first-class training, proper supervision, a promotion system that is fair and is perceived to be fair. By having an accountability system, with consistent rules and results, that holds officers accountable when they violate law or policy. By doing those things we rebuild trust and repair relationships, and make Chicago safer and stronger.
I am a public servant who believes police officers are the noblest of our public servants. They are women and men who’ve taken a job at modest pay where every day they wake up not knowing if they may get hurt or even killed. I’ve been in law enforcement most of my career, and I know that the vast majority of officers do that for this simple reason: they are good people; they care; they want to serve and protect; they want to love and live impactful lives as part of our community.
It’s time to give them what they need to succeed, and in doing so, help all of Chicago shine.
I’d like to turn it over to Mayor Rahm Emanuel, who’ll make some remarks, followed by Superintendent Eddie Johnson.
Remaining Two "Snap" Fraud Conspirators Sentenced to Prison and Ordered to Pay over $700k in RestitutionRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced that Cruz Gonzalez, of Shelby, Michigan, was sentenced to 33 months in prison and ordered to pay restitution of $722,149 to the Department of Agriculture by U.S. District Court Judge Gordon J. Quist. Her daughter, Fabiola Garcia, was sentenced the same day to 20 months in prison and also ordered to pay $722,149 in restitution. The two conspired to defraud the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program, by illegally exchanging SNAP benefits for cash, cell phones, and other ineligible items at La Fortuna Carniceria in Shelby, Michigan. The total amount of fraud was determined to be $722,149, covering the period of February 2008 through January 2014.
U.S. Attorney Miles stated, "The federal government cannot tolerate the theft of federal program benefits meant to aid low income individuals meet daily nutritional needs. Such theft undermines the public’s confidence in the SNAP program and diminishes the government’s ability to provide food assistance to those citizens most in need."
Gonzalez and Garcia were two of three conspirators charged and convicted in the conspiracy. The third, Gisela Mendoza, also a daughter of Gonzalez, was sentenced in November to six months in prison, two months of home detention, and restitution of $722,149.
A joint investigation led by the U.S. Department of Agriculture Office of Inspector General and the Michigan State Police SSCENT team resulted in the federal charges.
END
Registered Sex Offender with Two Prior Convictions Sentenced to 15 Years in Prison for Receipt of Images of Child RapeRead the Press Release
A 52-year-old registered sex offender was sentenced today in U.S. District Court in Seattle to 15 years in prison for receipt of child pornography, announced U.S. Attorney Annette L. Hayes. SCOTT MITCHELL COHEN of Seattle was arrested on January 16, 2016, following an investigation by the Seattle Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation. The investigation revealed that COHEN had more than 600 images and videos of child pornography and had twice been convicted of crimes involving the sexual abuse of children. At sentencing Chief U.S. District Judge Ricardo S. Martinez imposed a lifetime period of supervised release.
According to records filed in the case, the investigation began when Google alerted the National Center for Missing and Exploited Children (NCMEC) the images of child sexual abuse had been uploaded via a google email account. The IP address used was a Seattle Public Library address and later a University District Café wifi site. Through diligent police work tracing false identities used for on line and cell phone accounts detectives were ultimately able to identify COHEN as the user of the email account. When a search warrant was executed on his University District apartment, law enforcement discovered more than 600 images of child pornography on various computers, phones and other electronic devices. COHEN was convicted in 2005 of molesting a female under the age of 12. COHEN was ordered into extensive sexual deviancy treatment. Following treatment, he was convicted in 2010 of a second sex offense, possession of child pornography. COHEN was on state probation for that offense when arrested in this case. The investigation also uncovered that COHEN had been texting with a Texas teenager, attempting to get her to send him sexually explicit images.
In asking for lifetime supervised release, prosecutors wrote to the court: “The defendant has demonstrated that he poses a threat to the safety and well-being of minors in our communities. Despite negative contact with law enforcement and convictions for sex offenses, the defendant has demonstrated that he is either unwilling or unable to abide by society’s rules concerning sexual contact and interactions with minors. The defendant has demonstrated nearly two decades of unacceptable criminal sexual behaviors towards minors. Anything less than lifetime supervision inadequately protects the community.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by the Seattle Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) as part of the Internet Crimes against Children Task Force (ICAC).
The case was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.
Preston County man sentenced for unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Scott Alan Thomas, 53, of Masontown, West Virginia, was sentenced in federal court today to 41 months incarceration for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Thomas, who had previously been convicted of felony offenses in Ohio and Florida, was discovered in possession of a .22 caliber revolver in December 2015. He pled guilty to one count of “Felon in Possession of a Firearm” in September 2016.
Assistant United States Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, and the Masontown Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
Pollock prisoner from Texas pleads guilty to assaulting fellow inmateRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Pollock prisoner pleaded guilty Wednesday to assaulting another inmate.
John Garza, 33, a prisoner at the U.S. Penitentiary in Pollock, La., who is from Gonzales, Texas, pleaded guilty before U.S. District Judge Dee D. Drell, to one count of assault resulting in serious bodily injury. According to the guilty plea, Garza assaulted a fellow inmate on July 31, 2016, by stabbing him in the neck and back area. Video cameras showed Garza attacking a fellow inmate pushing him to the ground. He then stabbed and tramped on the inmate. The inmate was later brought to a local hospital where he was treated for severe injuries.
Garza faces up to 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date of April 12, 2017 was set.
The FBI and U.S. Bureau of Prisons investigated the case. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Pittsburgh Man Sentenced to Prison for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – Eric Wormsley was sentenced to 93 months in prison for heroin trafficking and firearms crimes, Acting United States Attorney Soo C. Song announced today.
Wormsley, age 38 of Pittsburgh, Pennsylvania, was also sentenced to serve six years of supervised release following his prison term. He was convicted of possession of over 50 grams of heroin with intent to distribute and possession of a loaded and stolen .45 caliber pistol in furtherance of that drug trafficking crime on Feb. 6, 2015. On that date, probation officers found Wormsley’s loaded pistol and his heroin stored in his young children’s bedroom within feet of where the children slept. Wormsley was on probation at the time following a prior conviction for simple assault of a police officer. He was previously convicted in federal and state court of committing heroin trafficking and firearms crimes in several cases over the last 20 years.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Allegheny County Probation Office, and the Drug Enforcement Administration conducted the investigation leading to the convictions in this case. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pensacola Man Sentenced to 3 Years for Making False Statements Regarding His Support and Promotion of ISILRead the Press Release
PENSACOLA, FLORIDA – Robert Blake Jackson, 31, of Pensacola, was sentenced to 3 years in federal prison today for making materially false statements in a federal investigation. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2014, Jackson’s Facebook profile contained comments, photos, and videos expressing support for extremist terrorist groups such as the Islamic State of Iraq and the Levant (ISIL, also known as ISIS). This included graphic ISIL videos promoting the execution of those who oppose ISIL. In January 2015, a Pensacola telemarketing corporation reported they had recently fired Jackson for viewing ISIL related and other terrorist related websites and videos on his work computer.
In June 2015, during an interview with the FBI, Jackson stated that he never posted any pro-ISIL or violent content, and that he only used the internet at work to search news sites. Upon his arrest in July 2016, Jackson was in possession of an electronic tablet that contained the most recent addition of Dabiq, an ISIL recruitment magazine, as well as audio lectures of Anwar al-Awalki. At his plea hearing on September 23, 2016, Jackson admitted that the statements he made to federal agents were false.
“Our law enforcement agencies work around the clock to keep us safe,” said U.S. Attorney Canova. “The United States Attorney’s Office will vigorously prosecute those who provide false statements to federal agents, because false statements divert precious time and resources from the furtherance of important criminal investigations.”
This case resulted from an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, and the other members of the FBI Joint Terrorism Task Force. Assistant United States Attorney David L. Goldberg prosecuted the case, with the assistance of David Cora of the National Security Division.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer(850) 216-3854, [email protected]
Paramedic Pleads Guilty to Tampering with DrugsRead the Press Release
TULSA, Okla.— Sara Nicole Hogsett, 26, plead guilty to Tampering with Consumer Products, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. United States District Court Judge James H. Payne will sentence Hogsett on April 26, 2017.
From April 2016 to May 2016, Hogsett, a paramedic, took pain medication: fentanyl, morphine and diazepam, from her assigned ambulances by removing the liquid drugs from their vials. Hogsett used the drugs on herself and replaced the removed liquid with saline solution. Agents from the United States Food and Drug Administration (FDA) confronted Hogsett about the vials and she admitted to the agents that she tampered with them.
"FDA oversees the U.S. supply of medicines to ensure that they are safe and effective, and those who knowingly tamper with medicines for patients put their health at risk," said Spencer E. Morrison, Special Agent in Charge, FDA Office of Criminal Investigations' Kansas City Field Office. "Our office will continue to pursue and bring to justice those who violate laws designed to protect the public health."
This case was investigated by the FDA. Assistant United States Attorney Neal C. Hong prosecuted the case.
Panama City Title Agent Pleads Guilty to Bank Fraud and Conspiracy ChargesRead the Press Release
PANAMA CITY, FLORIDA – Patricia Lynn Smith, 55, of Panama City Beach, pled guilty today to six felony counts, including one count of conspiracy to commit bank fraud and/or mail fraud affecting a financial institution and five counts of bank fraud. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Smith pled guilty surrounding conduct she engaged in while she was the manager of Northwest Florida Title Services. Smith participated in a scheme to defraud and obtain money and/or property by fraudulent means from the federally insured financial institutions Bank of America, First Tennessee Bank, JP Morgan Chase Bank, MetLife Bank, and Wells Fargo Bank. As a part of the scheme, Smith signed HUD-1 forms and caused them to be submitted to these financial institutions. The forms falsely claimed buyers were providing cash to purchase residences located in Panama City Beach and elsewhere, when this money was actually coming from a third party. During the course of the scheme, mortgage loans totaling in excess of $6 million on at least 18 pieces of real property were closed by Smith and Northwest Florida Title Services.
On each count, Smith faces a maximum of 30 years in prison, a maximum of a $1 million fine, and restitution. Smith is scheduled to be sentenced on March 30, 2017.
The case was investigated by the Office of Inspector General, Federal Housing Finance Agency and the Florida Department of Law Enforcement. This case is being prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Palm Beach County Resident Sentenced to 5 Years in Prison for Attempting to Receive Child PornographyRead the Press Release
Daniel Tyler Morgan, 30, of Jupiter, Florida, was sentenced today by United States District Judge Robin Rosenberg to 60 months in prison, to be followed by 5 years of supervised release for attempting to receive sexually explicit images of a child. Previously, on October 12, 2016, Morgan pled guilty to one count of attempting to receive sexually explicit images of a child.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), and Chief John Bolduc, Port St. Lucie Police Department, made the announcement.
According to the court record, Morgan was a history teacher at St. Lucie West Centennial High School in Port St. Lucie, Florida, when he began communicating over the internet with a minor student whom he had taught the previous year. Over a period of three months, Morgan cultivated an increasingly personal online relationship with the student. Morgan began soliciting sexually explicit photographs from the minor and sent the student a sexually explicit image of himself. Morgan also encouraged the minor to join him in smoking marijuana. Morgan is no longer employed as a teacher with the school district.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the Port St. Lucie Police Department. The case was prosecuted by Special Assistant U.S. Attorney Ryan Butler and Assistant U.S. Attorney Daniel Funk.
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.
Ocean County, New Jersey, Man Sentenced to 10 Years in Prison for Robbing Eight BanksRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 120 months in prison for robbing eight banks in New Jersey and New York, U.S. Attorney Paul J. Fishman announced.
Steven Wisnowski, 33, of Barnegat, New Jersey, previously pleaded guilty before U.S. District Judge Peter J. Sheridan in Trenton federal court to an eight-count superseding information charging him with the bank robberies.
According to documents filed in this case and statements made in court:
Wisnowski admitted that between Oct. 30, 2013, and Jan. 7, 2014, he robbed eight banks, seven of which were in New Jersey, and one of which was in New York:
Bank Name
Location
Date
PNC Bank
Edison
Oct. 30, 2013
TD Bank
Brick
Nov. 7, 2013
Santander Bank
Brick
Nov. 15, 2013
Ridgewood Savings Bank
Bayside (NY)
Nov. 22, 2013
Columbia Bank
Edison
Nov. 27, 2013
TD Bank
Toms River
Dec. 2, 2013
PNC Bank
Aberdeen
Dec. 9, 2013
Fulton Bank
Edison
Jan. 7, 2014
Wisnowski used a similar procedure for each robbery: he entered the banks wearing hats, hooded jackets, and wigs to conceal his identity, approached the bank tellers, and demanded money. In some instances, Wisnowski made the tellers believe he was armed and also threatened some tellers with violence.
During the Columbia Bank robbery, Wisnowski appeared to point something at the teller from under his clothing, as if he had a gun. Wisnowski then demanded money, stating: “Give me all your hundreds.” As the teller gathered the money, Wisnowski counted backwards from 10. He then fled with the money.
During the Fulton Bank robbery, Wisnowski gave a teller a manila envelope and stated, “Give me what I want and nobody gets hurt. I want large bills.” He then pulled up his sweatshirt as if he had a gun. The teller gathered the money and placed it in the envelope, after which Wisnowski fled.
Law enforcement tracked Wisnowski’s vehicle to the scene of the Fulton Bank robbery. Officers approached Wisnowski as he exited the bank and ordered him to the ground at gunpoint. Wisnowski threw the envelope filled with cash and fled. Law enforcement officers pursued Wisnowski and apprehended him moments later.
In addition to the prison term, Judge Sheridan sentenced Wisnowski to three years of supervised release and ordered to pay restitution of $22,240.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencing. He also thanked the Edison, Aberdeen, Brick, Toms River, and New York City police departments, and the Middlesex, Ocean, and Monmouth County prosecutors’ offices for their contributions to the case.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Nassau County Man Sentenced for Receiving Child Sex Abuse Videos over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Clement Ashford Reeves, Jr. (74, Yulee) to five years in federal prison for receiving videos over the Internet depicting children being sexually abused. He was also ordered to serve a five-year term of supervised release upon his release, to forfeit his computer media, and to register as a sex offender.
According to court documents, an agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations began an undercover operation to identify persons using the Internet to receive and share child pornography. The agent learned that a host computer in Florida had been sharing child pornography since December 15, 2011. That computer was traced to Reeves’s residence.
On June 3, 2015, agents met with Reeves at his home. During an interview, Reeves stated that he had downloaded depictions of prepubescent children, but his preference was for young girls. He also said that he had been using the file sharing program for 10-15 years. Agents seized several computer devices that contained 22 videos depicting young children being sexually abused.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.justice.gov/psc.
Montana Man Sentenced in Second Attempt to Hire Someone to Kill His Former WifeRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Shane Douglas Sichting, Jr., age 48, originally from Montana, and recently serving a 10-year sentence at Federal Correctional Institute, Edgefield, South Carolina, was sentenced in federal court by United States District Judge Bruce Howe Hendricks of Charleston, to 135 months imprisonment, on charges of use of interstate commerce facilities in the commission of murder for hire and retaliating against an informant, violations of Title 18, United States Code, Section 1958(a) and 1513(a)(1).
On September 1, 2016, Sichting entered a guilty plea to the charges. Evidence presented at the change of plea hearing established that Sichting was tried, convicted and sentenced in United States District Court for the District of Montana on a murder for hire charge in 2007. Sichting’s intended victim was his now former wife. The individual he hired to kill his wife reported Sichting’s actions to the FBI and testified at his trial in Montana. Following his conviction, Sichting was sentenced to 10 years imprisonment and was serving the last part of that sentence at FCI, Edgefield in July 2015.
During July 2015, Sichting approached another inmate at FCI, Edgefield about killing his former wife and the person he hired to kill her. The inmate agreed to help Sichting but instead contacted the FBI and advised them of Sichting’s intentions to hire someone to kill his former wife and the informant/witness against him. Sichting specifically wanted the murders to take place prior to his anticipated release to a halfway house in January 2016.
The FBI devised a plan to have the inmate provide Sichting with a telephone number for a “hitman” that was willing to do the murders. Sichting was to contact the hitman by telephone to make arrangements for the murders. In actuality, the hitman was an FBI employee acting in an undercover capacity.
Through these telephone calls and mail correspondence, Sichting provided the hitman with confidential information relating to the intended victims. Sichting used predetermined coded language to communicate with the hitman, referring to each of the intended victims as certain makes of cars. He also negotiated the price to be paid for each of the murders.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the Bureau of Prisons. Assistant United States Attorney Jeanne Howard of the Greenville office handled the case.
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Monroeville Resident Sentenced to 10 Months for Witness TamperingRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Arthur Leyon Penn, 39, of Monroeville, Alabama, was sentenced today by Senior U.S. District Judge Callie V. S. Granade to 10 months imprisonment for tampering with a witness in his tax fraud case in U.S. District Court for the Southern District of Alabama. Senior Judge Granade ordered that 6 months of Penn’s prison term run concurrently with his 48-month sentence in his tax fraud case, that 4 months run consecutively with the sentence in his tax fraud case, and that he pay a $100 mandatory special assessment. Before imposing her sentence, Senior Judge Granade underscored the serious nature of the witness tampering conduct.
Penn led The Penn Agency LLC, a company based in Monroeville, Alabama that provided insurance and fraudulent tax preparation services. He co-owned The Penn Agency with his wife, co-defendant Oleavia Mitchell Penn, who operated another fraudulent tax preparation business, Quick Tax, in Camden, Alabama. In January 2016, Arthur Penn and five co-defendants were indicted by the Federal Grand Jury for the Southern District of Alabama. The indictment alleged that between 2011 and 2015, Penn orchestrated a fraudulent tax scheme and sought personal financial gain by defrauding the Treasury Department through the preparation and filing of fraudulent federal tax returns. On August 22, 2016, Arthur Penn pled guilty to two counts of aggravated identity theft in connection with the unlawful use of individuals’ social security numbers and the preparation and submission of fraudulent tax returns. That same day, Oleavia Penn also pleaded guilty before Senior Judge Granade to committing aggravated identity theft.
Later in August 2016, Arthur Penn was indicted by the Federal Grand Jury for the Southern District of Alabama on two counts of tampering with a material witness in his tax fraud case. On December 14, 2016, Arthur Penn pleaded guilty before Senior Judge Granade to one count of witness tampering. As part of his plea, he admitted to attempting to bribe a former employee at The Penn Agency to prevent her from testifying against him at trial in his tax fraud case. After Arthur Penn pleaded guilty to witness tampering, Senior Judge Granade sentenced him to 48 months imprisonment in his tax fraud case. Oleavia Penn’s sentencing date in the tax fraud case is March 15, 2017.
The tax fraud and witness tampering cases were investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, and the 35th Judicial Circuit Task Force in Monroeville, Alabama. The cases were prosecuted by Assistant United States Attorneys Sinan Kalayoglu and Greg Bordenkircher.
Mission Man Charged with Assaulting a Federal Officer and Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer, and Domestic Assault by an Habitual Offender.
Quentin Provancial, II, age 31, was indicted on December 13, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 29, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction of Assault of a Federal Officer is up to 8 years in custody and/or a $250,000 fine, and 3 years of supervised release. The maximum penalty upon conviction of Domestic Assault by an Habitual Offender is up to 5 years in custody and/or a $250,000 fine, and 3 years of supervised release. A special assessment of $100 to the Federal Crime Victims Fund applies to each charge. Restitution may also be ordered.
The Indictment alleges that on October 15, 2016, Provancial did forcibly assault, resist, oppose, impede, intimidate, and interfere with a law enforcement officer from the Rosebud Sioux Tribe while he was engaged in the performance of his official duties. On that same day, Provancial did unlawfully commit a domestic assault upon an intimate partner, when at the time of the assault he had two final convictions for domestic abuse.
The charges are merely accusations and Provancial is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Provancial was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 7, 2017.
Minnesota Man Sentenced to 20 Years in Prison for Extortion Scheme That Spanned over Twenty YearsRead the Press Release
PHOENIX– Yesterday, U.S. District Judge Steven P. Logan sentenced Steven Dale Audette, 59, of Duluth, MN, to 240 months in prison and three years of supervised release for stealing approximately $3.5 million through an elaborate extortion scheme. Audette was found guilty by a federal jury on March 24, 2016, of one count of conspiracy and ninety counts of wire fraud. His co-defendant and wife, Mary Roach, had previously pleaded guilty to conspiracy and was sentenced to 33 months in prison.
Evidence at trial showed that Audette stole nearly $3.5 million from three victims in Scottsdale, Ariz., by falsely representing that Audette was on the run from the mafia and needed funds to pay the CIA and FBI for protection. Audette tormented the victims by threatening that if they did not provide money their family members, including children, would be murdered. The victims’ money was spent by Audette on cars, travel, homes, gifts to family and friends, and other personal items.
The scheme continued for over twenty years, with Audette escalating the threats and harm to the victims if they did not comply with his demands for money. Audette operated the scheme from Arizona, Minnesota, Texas, and Alabama, among other states.
“Through lies, deceit, and threats Audette took advantage of the generosity and vulnerability of the victims. We will vigorously pursue and bring to justice those who would defraud the public,” stated United States Attorney John S. Leonardo.
The investigation in this case was conducted by ATF, IRS and the Marion Country Sherriff’s Office in Chattanooga, Tenn. The prosecution was handled by Kevin M. Rapp and Andrew C. Stone, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00858-PHX-STL
RELEASE NUMBER: 2017-002_ Audette etal
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Meridian Man Pleads Guilty to Possession of Firearm While Under IndictmentRead the Press Release
Jackson, Miss – Javeon Malik Davis, 20, from Meridian, Mississippi, pleaded guilty before Senior U.S. District Judge David C. Bramlette III on January 10, 2017 to possessing a firearm while under felony indictment, announced U.S. Attorney Gregory K. Davis.
Javeon Davis admitted to possessing a firearm on May 19, 2016 in Meridian, at a time in which he was under felony indictment in Lauderdale County for having possessed a stolen firearm. Officers with the Meridian Police Department responded to a shots fired call and saw the defendant, Javeon Davis, toss a firearm into the back seat of a nearby vehicle. Officers located the weapon and the defendant admitted to possessing the firearm.
Davis will be sentenced on April 4, 2017, and faces a maximum penalty of 5 years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives along with the Meridian Police Department. It is being prosecuted by Assistant U.S. Attorney Abe McGlothin, Jr.
Medstar Ambulance to Pay $12.7 Million to Resolve False Claims Act Allegations Involving Medically Unnecessary Transport Services and Inflated Claims to MedicareRead the Press Release
Medstar Ambulance Inc., including four subsidiary companies and its two owners, Nicholas and Gregory Melehov, have agreed to pay $12.7 million to resolve allegations that the Massachusetts-based ambulance company knowingly submitted false claims to Medicare, the Department of Justice announced today.
“We expect those who participate in the Medicare program to provide services, including ambulance services, based on the medical needs of patients rather than their desire to maximize profits,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice is committed to ensuring that those who abuse the Medicare program will be held accountable for their actions.”
The settlement resolves allegations that from Jan. 1, 2011, through Oct. 31, 2014, Medstar submitted false claims to Medicare for ambulance transport services. Specifically, the United States alleged that Medstar routinely billed for services that did not qualify for reimbursement because the transports were not medically reasonable and necessary, billed for higher levels of services than were required by patients’ conditions, and billed for higher levels of services than were actually provided.
“Our office is committed to finding and eradicating Medicare fraud wherever it occurs,” said U.S. Attorney Carmen Ortiz for the District of Massachusetts. “While we recognize that Medicare does and should pay for medically necessary ambulance services, it is our job to ensure that ambulance providers do not take advantage of the system or the patients. This settlement is part of the office’s ongoing effort to eradicate health care fraud, and return money to the taxpayers.”
As part of the settlement today, Medstar has agreed to a corporate integrity agreement with the U.S. Department of Health and Human Services (HHS).
“Ambulance service companies should be focused on the needs of the patients,” said HHS Office of Inspector General Special Agent in Charge Phillip Coyne. “Billing Medicare for ambulance rides that were unnecessary or at a higher rate than could be medically justified is unacceptable. Together with our law enforcement partners, we will seek out and stop this fraudulent behavior.”
The allegations were filed in a lawsuit by Dale Meehan, a former employee in Medstar’s billing office, under the whistleblower provisions of the False Claims Act. Those provisions allow private individuals to sue on behalf of the United States and to share in the proceeds of any settlement or judgment. Meehan will receive approximately $3.5 million.
This settlement is the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Massachusetts, the FBI, and HHS, Office of Audit Services and Office of Inspector General.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.4 billion through False Claims Act cases, with nearly $19.6 billion of that amount recovered in cases involving fraud against federal health care programs.” Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case is captioned United States ex rel. Meehan v. Medstar Ambulance. Inc., et al., No. 13-CV-12495-IT (D. Mass). The claims settled by this agreement are allegations only; there has been no determination of liability.
Medical Imaging Provider Sentenced for Federal Health Care FraudRead the Press Release
TOPEKA, KAN. B A man who owned a medical imaging business was sentenced Thursday to 18 months in federal prison for health care fraud, U.S. Attorney Tom Beall said. In addition, the defendant was ordered to pay more than $1.5 million in restitution to Medicare and Medicaid.
Cody Lee West, 38, Paragould, Ark., owner of C & S Imaging, Inc., pleaded guilty to one count of health care fraud. C & S Imaging was a mobile independent diagnostic testing facility that provided ultra sound diagnostic testing to health care providers.
In his plea, West admitted he solicited chiropractors and told them he could provide equipment and an operator at no cost to them. West fraudulently billed Medicare for musculoskeletal exams and Doppler scans that allowed him to receive up to $410 per patient for services that were not ordered by a physician, not medically necessary, not performed or not documented. He also used fraudulent methods to attempt to provide documentation for some of his bills.
Beall commended the Department of Health and Human Services, the Kansas Attorney General’s Medicaid Fraud Division and Assistant U.S. Attorney Tanya Treadway for their work on the case.
McLaughlin Man Sentenced for Tampering with a WitnessRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Tampering with a Witness, Victim, or an Informant was sentenced on January 5, 2017, by U.S. District Judge Charles B. Kornamnn.
Todd Stands Alone, f/k/a Todd Brave Crow, age 37, was sentenced to 36 months in custody, 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Stands Alone was indicted by a federal grand jury on February 11, 2015. He pled guilty on July 18, 2016.
The conviction stems from an incident on the evening of January 23, 2015, when the juvenile victim reported to her family that she had been beaten up by an adult family member while she was babysitting. Upon relaying these events to her family, the victim was immediately told not to report this incident to anyone. Stands Alone told the victim on numerous occasions not to speak to anyone about the incident, harassing the victim to the point that she did not know who she could trust. Stands Alone also persuaded his mother and others in the family to pressure the victim into not speaking to authorities or contact anyone regarding the incident. This harassing behavior continued for multiple days.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Stands Alone was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on January 5, 2017, by U.S. District Judge Charles B. Kornmann.
Jason Martinez, age 41, was sentenced to 120 months in custody, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Martinez was indicted by a federal grand jury on January 21, 2016. A Superseding Indictment was filed on July 19, 2016. He pled guilty on August 15, 2016.
The conviction stems from an incident on December 8, 2016, when Martinez and his girlfriend, the victim, were socializing with several friends at a residence in McLaughlin.
Following an argument, the victim returned to her residence and went down to the basement to gather her belongings. As she was in the basement gathering her things, the victim heard a noise behind her and when she turned and looked, she saw Martinez standing there. Martinez made a disparaging remark to the victim and he started to hit her repeatedly. He hit her all about her head, face, and legs. In addition, Martinez repeatedly threw her down to the ground and struck her repeatedly in the back.
The victim tried to remain curled up in a ball in the corner to avoid further injury, however, Martinez grabbed her, tearing a portion of the victim’s clothes. Martinez continued to strike her about the head, and as a result there was so much blood coming down her face that she was having a hard time seeing. Martinez would not stop hitting her.
As a result of the assault, the victim sustained multiple cuts, bruises, scrapes, and abrasions. The lacerations to her scalp were so deep that her skull was visible through the wound site. The victim needed stitches to close the wound from the various lacerations she had sustained.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Martinez was immediately turned over to the custody of the U.S. Marshals Service.
Master’s Degree Student Pleads Guilty to Attempting to Entice a MinorRead the Press Release
A Rome, New York, man pleaded guilty today to charges of attempted coercion and enticement of a minor to engage in unlawful sexual activity.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County, Virginia, Police Department made the announcement.
Julio Perez-Torres, 26, pleaded guilty before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. Sentencing is scheduled for May 12, 2017.
According to admissions made in connection with his plea agreement, in early February 2016, Perez-Torres, a master’s degree candidate at American University, posted a Craigslist ad, expressing an interest in sex with children. When an undercover Fairfax County police officer replied to the ad, portraying himself as the father of two children, five and seven years old, Perez-Torres discussed performing graphic sexual acts on the children. On Feb. 18, 2016, after weeks of corresponding with the officer via sexually explicit emails, text messages and telephone calls, the defendant traveled to meet the undercover officer with the intent to engage in sexual acts with the children. Perez-Torres was arrested at that time.
Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Kellen Dwyer of the Eastern District of Virginia are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Manhattan Woman Pleads Guilty in Manhattan Federal Court to Commodities Fraud in Connection with Scheme to Defraud Investors of More Than $23 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HAENA PARK pled guilty in Manhattan federal court today to commodities fraud. The charge relates to PARK’s scheme to defraud more than 40 individual investors out of more than $23 million. PARK solicited investments for the purpose of trading in a variety of securities and commodities, including off-exchange foreign currency contracts, through the use of false and misleading statements about, among other things, her historical trading performance. PARK was arrested on June 2, 2016, in Manhattan, New York, and pled guilty today before United States District Judge Ronnie Abrams.
U.S. Attorney Preet Bharara said: “Through her guilty plea today, Haena Park has admitted to commodities fraud, lying about her rates of return and trading expertise to lure prospective investors to her fund and then losing almost all of the $23 million she raised through her lies. To keep her fraud scheme alive, Park sent fake account statements to her investors and used new investor money to pay back old ones.”
According to the Indictment and statements made at today’s plea hearing:
From September 2009 through June 2016, PARK raised more than $23 million from more than 40 individual investors, purportedly for the purpose of trading in a variety of securities and commodities, including equities, futures, and off-exchange foreign currency (“forex”) transactions, through the use of her firms, Phaetra Capital Management LP and Argenta Group, LLC. In connection with the scheme, PARK made a series of false and misleading representations to investors, including that PARK was an accomplished forex trading adviser earning annualized returns as high as 48.9 percent for her investors. In truth and in fact, PARK was not an accomplished forex trader, her trading was consistently unsuccessful, and the trading results emailed to investors by PARK were false and did not reflect the trading losses actually incurred by PARK. Rather, from September 2009 through June 2016, PARK lost approximately $19.5 million of the $20 million that she traded, including in commissions and fees, principally in highly leveraged futures and forex transactions.
To prevent or forestall redemptions by investors, and to continue to raise money from investors to fund her scheme, PARK generated fictitious account statements, which she sent to investors on a monthly basis. Instead of accurately reporting the trading losses PARK was suffering, the account statements indicated that the investors were making money nearly every month. To hide her trading losses, PARK used new investor funds to pay back other investors in a Ponzi-like fashion. In total, PARK distributed approximately $3 million back to investors from funds deposited by new investors.
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PARK, 41, of Manhattan, New York, faces a maximum sentence of 10 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. PARK is scheduled to be sentenced by Judge Abrams on April 28, 2017, at 2:30 p.m.
Mr. Bharara praised the work of the Department of Homeland Security, Homeland Security Investigations and the El Dorado Task Force. He also thanked the Commodity Futures Trading Commission and the Securities and Exchange Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.