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Monday 14 November 2016
High-Ranking Gangster Disciple Sentenced to More Than 17 Years in Federal PrisonRead the Press Release
Memphis, TN – A high-ranking member of the Gangster Disciples has been sentenced to 210 months in federal prison for felony possession and distribution of cocaine. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Kevin Coleman aka "Booger," 34, of Covington, Tennessee, holds the rank of chief enforcer for the Covington region of the Gangster Disciples. A violent criminal organization present in more than 30 states, the Gangster Disciples are organized into different positions, including board members and governor-of-governors who each control geographic regions; governors, assistant governors, chief enforcers, and chief of security for each state or regions within the state where the Gangster Disciples are active.
Beginning in July 2014, agents with the Federal Bureau of Investigation (FBI) began investigating members of the Gangster Disciples in the Tipton County area. They later identified Coleman as the Chief Enforcer/Assistant Chief Enforcer for the Covington region.
As the Chief Enforcer, Coleman was tasked with administering punishment to members who violated gang rules. He also permitted other members to illegally possess firearms and commit violent actions when deemed necessary.
Because of his position of authority, Coleman was required to have a firearm at all times, or have another armed gang member accompany him. During the investigation, agents became aware of two instances in which Coleman ordered the physical punishment of two fellow gang members.
Law enforcement also discovered that Coleman regularly conspired with others to obtain cocaine from other high-level members of the Gangster Disciples for distribution.
On November 3, 2015, law enforcement officers conducted a knock-and-talk at Coleman’s residence. At the time, Coleman was on probation and, as part of his probation, agreed to a provision allowing law enforcement to search him or his residence without a warrant.
When Coleman came to the front door, law enforcement asked if he possessed anything illegal. He admitted to having cocaine on his kitchen table. A search was conducted on his residence and the cocaine was recovered. Agents also seized $1,100 in drug proceeds, a scale, and .45 caliber ammunition.
After waiving his Miranda rights, Coleman informed agents that he had been buying and selling cocaine since around 2011. He admitted to purchasing ounce quantities of cocaine once a week for distribution.
In June 2016, Coleman proceeded to trial. However, after the government presented their first witness, he pleaded guilty before U.S. District Judge Samuel H. Mays Jr. to one count of unlawfully possessing with the intent to distribute and distributing more than 500 grams of cocaine.
On Monday, November 14, Judge Mays sentenced Coleman to 210 months in federal prison.
This case was investigated by the Federal Bureau of Investigation, 25th Judicial District Attorney General’s Office, and the Tipton County Sheriffs Office.
Special Assistant U.S. Attorney Samuel Stringfellow prosecuted this case on the government’s behalf.
Hartford Man Sentenced to 10 Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROMANE ST. CHRISTOPHER McKENZIE, also known as “Wookie,” “Rude” and “Rude Boy,” 24, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, on November 18, 2014, a case worker with the Connecticut Department of Children and Families informed the Enfield Police Department that a 15-year-old girl was advertising prostitution services on Backpage.com. The advertisement listed the girl’s location as Enfield. Later that day, Enfield police contacted the number in the advertisement and engaged in a ruse negotiation to purchase the girl’s services. At the conclusion, the police were told to go to a local motel where they encountered the minor victim in a room. The room contained evidence of prostitution and was rented by McKENZIE. McKENZIE, who was present at the motel, was arrested at that time.
The investigation revealed evidence that McKENZIE knew that the minor victim was 15-years-old, that he had paid for Backpage.com advertisements on behalf of the minor victim and others, and that he trafficked the minor victim and others at motels in Enfield and Windsor Locks. The investigation included analysis of numerous text messages between McKENZIE and the minor victim, and between the minor victim and prospective prostitution clients. The investigation also revealed that McKENZIE sold crack cocaine to the minor victim.
McKENZIE has been detained since his arrest. On August 2, 2016, he pleaded guilty to one count of sex trafficking of a minor.
McKENZIE, a citizen of Jamaica, faces immigration proceedings when he is released from prison.
This matter was investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of the Connecticut Department of Children and Families. The case was prosecuted by Assistant U.S. Attorneys Vanessa Richards and David Novick.
Guatemalan man charged with illegally reentering U.S.Read the Press Release
A federal grand jury returned an indictment charging a Guatemalan citizen with re-entering the United States illegally, said said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Julio Lopez-Rodriguez, 41, was found in Cleveland after being deported to Guatemala in 2003 following an aggravated felony conviction, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case following an investigation by the United States Immigration and Custom Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Gary, Indiana Couple Sentenced to Federal Prison for Robbing Bank in Carrizo SpringsRead the Press Release
In Del Rio this morning, 44-year-old Luis Gonzalez of Gary, IN, was sentenced to four years in federal prison followed by three years of supervised release for the robbery of Capital Bank of Texas in Carrizo Springs, TX, in October of last year, announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On August 2, 2016, Gonzalez’s 36–year-old common-law wife Lidia Igartua, who has familial ties to Carrizo Springs, was sentenced to 21 months in federal prison followed by three years of supervised release for her role in the robbery.
On February 25, 2016, both Gonzalez and Igartua pleaded guilty to one count of bank theft. By pleading guilty, Gonzalez admitted that he robbed Capital Bank of Texas in Carrizo Springs on October 14, 2015, by use of force, violence and/or intimidation when he produced a note to a bank teller threatening violence and the use of a firearm. Gonzalez fled the bank with $7,712.00 in U.S. Currency. By pleading guilty, Igartua admitted to planning and purchasing disguises prior to the robbery, and being a recipient of proceeds from the bank robbery.
FBI arrested Igartua on the same day as the bank robbery; Gonzalez, the day after. Both defendants have since remained in federal custody.
Subsequent to the defendants being arrested, FBI agents recovered $7,200 of the stolen funds. At sentencing, United States District Judge Alia Moses ordered that both defendants pay—joint and several—the unrecovered amount of $512.00 in restitution to Capital Bank of Texas.
This case was investigated by FBI and prosecuted by Assistant United States Attorneys Katie Griffin and Lewis Thomas.
Fresno County Felon Convicted of Illegal Possession of FirearmRead the Press Release
FRESNO, Calif. — Gary Lee Ortiz, 41, of Auberry, pleaded guilty today to being a felon in possession of a handgun with an obliterated serial number, Acting United States Attorney Phillip A. Talbert announced.
According to the plea agreement, Ortiz will pay restitution to the U.S. Forest Service for damaging public land and natural resources as a result of marijuana cultivation activities near his residence in the Mill Creek area.
According to court documents, on June 8, 2015, Ortiz possessed the firearm at his residence when law enforcement officers located a marijuana cultivation operation on Ortiz’s property and also on adjacent land in the Sierra National Forest. Law enforcement officers eradicated the plants and seized a total of four firearms. One of the firearms was a Herbert Schmidt, model E 15, .22 LR caliber revolver with the serial number obliterated. At the time, Ortiz was a convicted felon and prohibited from possessing a firearm.
Ortiz is scheduled for sentencing on March 6, 2017, by U.S. District Judge Lawrence J. O’Neil. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco Firearms and Explosives, the California Department of Fish and Wildlife, the Fresno County Sheriff’s Office, and the Fresno County Probation Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Four Southland Residents Sentenced in Scheme to DefraudRead the Press Release
LOS ANGELES – Four defendants were sentenced today in connection with a fraudulent Orange County, California, debt relief firm, the Justice Department and U.S. Postal Inspection Service announced. The defendants all worked at Nelson Gamble and Associates and Jackson Hunter Morris and Knight, companies that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees.
“These scams take advantage of consumers already struggling with debt,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to protect consumers from fraud, especially when they are targeted based on their financially vulnerable conditions.”
“Pretending to operate as a law firm, these defendants falsely promised hope to struggling debtors,” said United States Attorney Eileen M. Decker. “But the promises were empty as the ‘debt relief’ firm was nothing more than an advance fee scheme designed to line the pockets of the defendants.”
“We are gratified by today’s sentencing, on behalf of the many unsuspecting victims who sought financial relief, only to be further burdened by these criminals,” said Inspector in Charge Regina L. Faulkerson of Criminal Investigations, U.S. Postal Inspection Service. “We applaud the work of the Justice Department’s Consumer Protection Branch in bringing these fraudulent credit repair conspirators to justice.”
The sentences were imposed Monday by U.S. District Judge Dale Fischer. The four defendants all previously pleaded guilty for their roles in the scheme.
Jeremy Nelson, 31, of Dana Point, was sentenced to serve 87 months in prison and ordered to pay $4,225,924 in restitution. Nelson admitted to being the owner and CEO of the companies and overseeing the scheme
Elias Ponce, 30, of Santa Ana, was sentenced to serve 42 months in prison and ordered to pay $2,340,373 in restitution. Ponce worked in the “customer service” department and handled complaints.
Christopher Harati, 33, of Long Beach, was sentenced to serve 27 months in prison and ordered to pay $408,403 in restitution. Harati worked with Ponce in customer service at the companies.
Athena Maldonado, 32, of Lake Forest, was sentenced to serve one month in prison and six months home confinement and ordered to pay $130,224 in restitution. Maldonado handled complaints and held herself out as the vice president of the company’s “legal department.”
Nelson and Ponce both pleaded guilty to one count of conspiracy to commit mail and wire fraud. Harati and Maldonado pleaded guilty to a separate Information charging one count of conspiracy to commit wire fraud. A fifth defendant, John Vartanian, 57, of Newport Beach, California, pleaded guilty to conspiracy in July in connection to his role as a salesman at the companies. He is scheduled to be sentenced on Nov. 21.
Members of the conspiracy at times portrayed Nelson Gamble and Jackson Hunter as law firms or attorney-based companies. Clients were told the companies would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. The conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees.
The scheme ran from February 2010 to September 2012. Nelson changed the name of the company from Nelson Gamble to Jackson Hunter in 2011. Nelson and his co-conspirators told victims that Nelson Gamble had gone bankrupt and that Jackson Hunter was an unrelated company that had taken over some of the accounts. Nelson and his co-conspirators blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.
In September 2012, the Federal Trade Commission (FTC) brought a civil case against Nelson and the companies, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.
Principal Deputy Assistant Attorney General Mizer commended the Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts. He thanked the U.S. Attorney’s Office for the Central District of California for their contributions to the case and expressed appreciation to the FTC for referring the case to the Consumer Protection Branch. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Four California Residents Sentenced in Scheme to Defraud Consumers Through Debt Relief FirmsRead the Press Release
Four defendants were sentenced today in connection with a fraudulent Orange County, California, debt relief firm, the Justice Department and U.S. Postal Inspection Service announced. The defendants all worked at Nelson Gamble and Associates and Jackson Hunter Morris and Knight, companies that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees.
“These scams take advantage of consumers already struggling with debt,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to protect consumers from fraud, especially when they are targeted based on their financially vulnerable conditions.”
“We are gratified by today’s sentencing, on behalf of the many unsuspecting victims who sought financial relief, only to be further burdened by these criminals,” said Inspector in Charge Regina L. Faulkerson of Criminal Investigations, U.S. Postal Inspection Service. “We applaud the work of the Justice Department’s Consumer Protection Branch in bringing these fraudulent credit repair conspirators to justice.”
The sentences were imposed Monday by U.S. District Court Judge Dale Fischer of the Central District of California in Los Angeles. The four defendants all previously pleaded guilty for their roles in the scheme.
Jeremy Nelson, 31, of Dana Point, California, was sentenced to serve 87 months in prison and ordered to pay $4,225,924 in restitution. Nelson admitted to being the owner and CEO of the companies and overseeing the scheme
Elias Ponce, 30, of Santa Ana, California, was sentenced to serve 42 months in prison and ordered to pay $$2,340,373 in restitution. Ponce worked in the “customer service” department and handled complaints.
Christopher Harati, 33, of Long Beach, California, was sentenced to serve 27 months in prison and ordered to pay $408,403 in restitution. Harati worked with Ponce in customer service at the companies.
Athena Maldonado, 32, of Lake Forest, California, was sentenced to serve one month in prison and six months home confinement and ordered to pay $130,224 in restitution. Maldonado handled complaints and held herself out as the vice president of the company’s “legal department.”
Nelson and Ponce both pleaded guilty to one count of conspiracy to commit mail and wire fraud. Harati and Maldonado pleaded guilty to a separate Information charging one count of conspiracy to commit wire fraud. A fifth defendant, John Vartanian, 57, of Newport Beach, California, pleaded guilty to conspiracy in July in connection to his role as a salesman at the companies. He is scheduled to be sentenced on Nov. 21.
Members of the conspiracy at times portrayed Nelson Gamble and Jackson Hunter as law firms or attorney-based companies. Clients were told the companies would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. The conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees.
The scheme ran from February 2010 to September 2012. Nelson changed the name of the company from Nelson Gamble to Jackson Hunter in 2011. Nelson and his co-conspirators told victims that Nelson Gamble had gone bankrupt and that Jackson Hunter was an unrelated company that had taken over some of the accounts. Nelson and his co-conspirators blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.
In September 2012, the Federal Trade Commission (FTC) brought a civil case against Nelson and the companies, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.
Principal Deputy Assistant Attorney General Mizer commended the Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts. He thanked the U.S. Attorney’s Office for the Central District of California for their contributions to the case and expressed appreciation to the FTC for referring the case to the Consumer Protection Branch. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Former KC Postal Carrier Pleads Guilty to Conspiracy to Distribute PCP Through the MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., postal carrier pleaded guilty in federal court today for her role in a conspiracy to distribute multi-kilogram quantities of PCP through the mail.
Carol Barfield, 65, pleaded guilty before U.S. District Judge Howard F. Sachs to the her role in the drug-trafficking conspiracy. Co-defendant Michael Garrett, 57, of Victorville, Calif., pleaded guilty on Sept. 1, 2016, to his role in the conspiracy and to using a telephone to distribute PCP.
Barfield and Garrett participated in a conspiracy to distribute PCP from Nov. 2, 2015, to March 4, 2016. Garrett mailed bottles of PCP from California to separate addresses on Barfield’s Kansas City, Mo., postal route. Barfield, at Garrett’s instruction, would then deliver the packages to their intended recipients rather than to the false addresses provided on the labeling.
According to today’s plea agreement, Garrett mailed a total of 15 parcels to separate addresses on Barfield’s carrier route from Nov. 2 to Dec. 16, 2015. Each of the parcels weighed in excess of 10 pounds. Barfield scanned all of the suspicious mailings as “delivered” on her route.
During the approximate time period these suspicious packages were being delivered, there were numerous phone calls between Barfield and Garrett, including several phone calls on the mailing and the delivery dates of all the suspicious packages.
On March 1, 2016, surveillance video identified Garrett mailing four parcels at the Victorville post office. The four parcels, which listed a false name and address for the sender, were mailed to separate addresses on Barfield’s postal route, but were addressed to individuals who did not reside at those addresses. On March 4, 2016, federal agents set up surveillance on Barfield’s postal route. Barfield loaded the parcels into her postal vehicle. She scanned the first parcel as delivered, but she did not actually deliver the parcel.
Barfield became suspicious that she might be under surveillance, according to the plea agreement, so she scanned another parcel as undeliverable. Barfield delivered one of the parcels as addressed and left it at the front steps of the residence. However, shortly after delivery, the actual homeowner arrived. Noticing he was not the listed recipient on the package, the homeowner picked up the package and, upon finding Barfield still in the neighborhood, returned it to her. For the last parcel, Barfield scanned the package as “no secure location” and left a delivery notice receipt at the listed address. Barfield subsequently rescanned the first parcel as “undeliverable as addressed,” returning all four packages to the post office.
Agents opened the suspicious parcels, which each contained two 64-ounce plastic Welch’s Grape Juice bottles of PCP. The total weight of the liquid from the eight bottles was approximately 13.45 kilograms.
Barfield told investigators that Garrett had mailed packages to her route five or six different times, and that it was usually three packages each time. Barfield stated that on some occasions Garrett would fly into Kansas City after mailing the packages and she would hand them directly to him. Other times, she would give them to an acquaintance of Garrett. If she did not give the packages to Garrett or his acquaintance, she would leave them at the address on the package, knowing Garrett or one of his people would come by and pick it up.
Barfield told investigators that, in exchange, Garrett bought her clothes, fixed her car, and provided her with spending money. She stated Garrett basically took care of her and gave her money to help out. Barfield said that the most money Garrett gave her at one time was $500, but she did not know how much total cash she had received from him.
Under federal statutes, Barfield is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration.
Former High-Ranking Louisiana Army National Guardsman Indicted on Fraud and False Statements ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RANDY M. KILEY, SR., 63, of Slidell, a former Sergeant Major in the Louisiana Army National Guard, was charged Thursday, November 10th, with wire fraud and making false statements in furtherance of an alleged scheme to defraud the United States Department of Defense.
According to the Indictment, KILEY devised a scheme to defraud the U.S. Department of Defense by misrepresenting his marital status to receive increased Basic Allowance for Housing and Family Separation Allowance pay. In furtherance of his scheme, KILEY knowingly submitted false documents.
The Indictment alleges that in or about July 2005, KILEY and his former spouse divorced, and KILEY failed to immediately notify officials at the Louisiana Army National Guard of the change in his marital status as required. The Indictment also alleges that between in or about July 2005 through in or about July 2014, KILEY submitted four forms requesting Basic Allowance for Housing and Family Separation Allowance pay and falsely claimed that he was either married or not divorced. Based on these misrepresentations, which KILEY knew to be false at the time, he received more Basic Allowance for Housing and Family Separation Allowance pay than he was entitled.
KILEY faces a possible maximum sentence of twenty years of imprisonment, a $250,000 fine, and/or five years of supervised release.
U. S. Attorney Kenneth Allen Polite, Jr. reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service in investigating this matter. Assistant U.S. Attorney Marquest J. Meeks is in charge of the prosecution.
Former Fresno Business CFO Sentenced to over 5 Years in Prison for Embezzlement and Money LaunderingRead the Press Release
Fresno, Calif. —Anthony Lester, 53, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to five years and four months for mail fraud and money laundering in connection with his embezzlement of $306,000 from a Fresno business, Acting U.S. Attorney Phillip A. Talbert announced.
On August 19, 2016, after a four-day trial, a jury found Lester guilty on all seven counts charged in the indictment. According to evidence at trial, between August 2010 and January 2012, Lester embezzled and stole money from his former employer. While an employee at Century Builders and Highlands Energy Services, he held supervising positions in the accounting department, including Chief Financial Officer. In those capacities, Lester had responsibilities regarding management of the companies’ finances and financial transactions and had access to and control over some of the companies’ checking accounts and credit cards. Lester used this access to defraud the companies. He also attempted to frame his predecessor and other employees of the companies by falsely associating them with the PayPal accounts.
According to court documents, Lester transferred money from one of the companies’ checking accounts into what purported to be the companies’ PayPal account. Then he transferred the money to one of his own personal PayPal accounts. Additionally, he transferred money from two of the companies’ credit cards to his personal PayPal account. Thereafter, he attempted to launder the proceeds of his fraudulent scheme and conceal his embezzlement by transferring money from his personal PayPal account to his personal bank accounts. None of these transactions were authorized by the companies, and none were for legitimate business purposes of the companies. In total, Lester embezzled approximately $306,000 from his former employer.
“Financial crimes are a concern in every type and size of business, and sadly it often involves the most trusted individuals,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “The crimes not only rob businesses of vital revenue, but they also undermine the trust of employees and customers alike.”
In addition to prison sentence, Lester was ordered to pay $306,319 in restitution to the companies.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno Police Department. Assistant United States Attorneys Patrick R. Delahunty and Patrick J. Suter prosecuted the case.
Former Federal Contract Employee Pleads Guilty to Falsifying Timesheets at Two AgenciesRead the Press Release
WASHINGTON – Daniel J. Glauber, who worked as a federal contract employee, pled guilty today to a charge of making a false statement for falsifying timesheets while working at two separate federal agencies, announced U.S. Attorney Channing D. Phillips, Norbert E. Vint, Deputy Inspector General for the Office of Personnel Management (OPM), and Russell Decker, Acting Inspector General of the National Security Agency (NSA).
Glauber, 44, who now resides in Fort Worth, Texas, pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a likely range of six to 12 months of incarceration and a fine of up to $20,000. The plea agreement calls for him to pay $70,646 in restitution. The Honorable Richard J. Leon scheduled sentencing for Feb. 17, 2017.
According to the government’s evidence, Glauber was hired in April 2012, under contract, as a systems administrator at OPM. He was required to perform his duties on-site and work a standard 40-hour work week. Additionally, and unbeknownst to OPM, in May of 2012, he was hired as a subcontractor to work at NSA on computer systems. Here, too, his duties called for him to work a standard 40-hour work week and on-site.
From May through August of 2012, Glauber worked at both OPM and NSA, but neither agency was aware that he was working for the other. OPM’s Office of the Inspector General reviewed building access reports and confirmed that Glauber billed 323.75 hours for the time period ranging from May through August 2012 in which he was not actually present at his work site. He was paid $43,706 for these hours, and subsequently was terminated by OPM. However, it was only after his termination that OPM learned of the other employment at NSA.
NSA investigators later reviewed building records and uncovered a discrepancy of 269.5 hours in which Glauber had submitted timesheets for hours in which he did not work on-site. He was paid $26,940 for these hours.
In announcing the plea, U.S. Attorney Phillips, Deputy Inspector General Vint, and Acting Inspector General Decker commended the work of Special Agent Christopher Sulhoff, OPM, Office of the Inspector General, and the investigators who worked on the case from the National Security Agency, Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kaitlyn Krueger, Christopher Toms, and Jessica Mundi, and Assistant U.S. Attorney Teresa A. Howie, who is prosecuting the case.
Former Bibb County Bank President Charged with Bank Fraud for Creating Fraudulent Loans for HimselfRead the Press Release
BIRMINGHAM –Federal prosecutors today charged a former Bibb County bank president with bank fraud for issuing 31 fraudulent loans in the names of other people or businesses and using the proceeds for himself, announced U.S. Attorney Joyce White Vance and the U.S. Secret Service Special Agent in Charge Michael Williams.
The U.S. Attorney’s Office filed a 31-count information in U.S. District Court charging JOHN KEVIN VANN, 55, of Tuscaloosa, with devising a scheme to defraud his employer, BankTrust Bank, which became Trustmark National Bank, of more than $100,000 between Oct. 11, 2011, and March 7, 2014.
In a plea agreement filed in conjunction with the information, Vann agrees to plead guilty to one count of bank fraud, pay $120,774 in restitution to Trustmark National Bank, and consent to forfeit the same amount to the government as proceeds of illegal activity. Vann acknowledges in the plea agreement that he has worked in the banking industry for more than 20 years and served as the community bank president of Bibb County, or in an equivalent position, between 2011-2014. In that role, Vann had access to customer names, addresses and other personal information, and used that information to execute his fraud, according to the plea agreement.
Vann took out 31 loans from the bank using the names of other individuals or business entities without their permission, and forged bank paperwork in his capacity as community president, he acknowledges in his plea agreement. Vann redirected the proceeds of the loans to himself, to businesses he controlled, and to his creditors, according to the plea agreement.
The maximum penalty for bank fraud is 30 years in prison and a $1 million fine.
The U.S. Secret Service investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes is prosecuting.
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Former Autonomy CFO Charged with Wire FraudRead the Press Release
Defendant Allegedly Defrauded Hewlett-Packard Company in the Acquisition of Autonomy for $11 Billion
A federal grand jury indicted Sushovan Hussain, 52, a citizen and resident of the United Kingdom, with conspiracy to commit wire fraud and multiple counts of wire fraud. According to the indictment filed last Nov. 10, Hussain allegedly engaged in a scheme to defraud purchasers and sellers of securities of Autonomy Corporation plc (Autonomy) and Hewlett-Packard Company about the true performance of Autonomy’s business, its financial condition and its prospects for growth.
According to the indictment, Hussain, was the former Chief Financial Officer (CFO) of Autonomy, a company incorporated in the United Kingdom. Autonomy maintained dual headquarters in San Francisco and Cambridge. In 2010, about 68 percent of Autonomy’s reported revenues came from the United States and other countries in the Americas.
The case involves the acquisition by Palo Alto-based Hewlett-Packard Company and Hewlett-Packard Vision B.V., a wholly-owned subsidiary of HP (collectively HP), of Autonomy. On Aug. 18, 2011, HP entered into an offer agreement with Autonomy and publicly announced its offer to acquire Autonomy for approximately $11 billion. On Oct. 3, 2011, HP’s acquisition of Autonomy closed and HP acquired control of Autonomy.
According to the indictment, between 2009 and 2011, Hussain artificially inflated Autonomy’s revenues by backdating written agreements to record revenue in prior periods; recorded revenue on contracts that were subject to side letters or other contingencies that impacted revenue recognition; improperly recorded revenue for reciprocal or roundtrip transactions; and made false and misleading statements to Autonomy’s independent auditor about transactions allegedly supporting the recognition of revenue and other items in Autonomy’s financial statements. In so doing, Hussain allegedly issued materially false and misleading quarterly and annual financial statements on behalf of Autonomy. The indictment further alleges that defendant and others provided these financial statements to HP during the time that HP was considering whether to purchase Autonomy.
In addition, the indictment alleges that Hussain caused Autonomy to make materially false and misleading statements directly to HP regarding Autonomy’s financial condition, performance and business during the negotiations between HP and Autonomy leading up to the Aug. 18, 2011, acquisition announcement. Allegedly, Hussain made false and misleading statements about the nature of Autonomy’s products, concealed Autonomy’s non-appliance hardware sales and made other false and misleading statements during HP’s “due diligence” of Autonomy. In sum, the indictment charges Hussain with one count of conspiracy to commit wire fraud and 14 counts of wire fraud.
No federal court appearance has yet been scheduled for the defendant.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution, for each count of wire fraud and for the conspiracy count. 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.
Assistant U.S. Attorneys Robert S. Leach and Adam A. Reeves are prosecuting the case with the assistance of Phillip Villanueva and Bridget Kilkenny. The prosecution is the result of a multi-year investigation involving the FBI and the U.S. Securities and Exchange Commission.
Former Autonomy CFO Charged with Wire FraudRead the Press Release
SAN FRANCISCO - A federal grand jury indicted Sushovan Hussain with conspiracy to commit wire fraud and multiple counts of wire fraud. According to the indictment filed last Thursday, November 10, 2016, Hussain allegedly engaged in a scheme to defraud purchasers and sellers of securities of Autonomy Corporation plc (“Autonomy”) and Hewlett-Packard Company about the true performance of Autonomy’s business, its financial condition, and its prospects for growth.
According to the indictment, Hussain, 52, a citizen and resident of the United Kingdom, was the former Chief Financial Officer (CFO) of Autonomy, a company incorporated in the United Kingdom. Autonomy maintained dual headquarters in San Francisco and Cambridge. In 2010, about 68% of Autonomy’s reported revenues came from the United States and other countries in the Americas.
The case involves the acquisition by Palo Alto-based Hewlett-Packard Company and Hewlett-Packard Vision B.V., a wholly-owned subsidiary of HP (collectively HP), of Autonomy. On August 18, 2011, HP entered into an Offer Agreement with Autonomy and publicly announced its offer to acquire Autonomy for approximately $11 billion. On October 3, 2011, HP’s acquisition of Autonomy closed and HP acquired control of Autonomy.
According to the Indictment, between 2009 and 2011, Hussain artificially inflated Autonomy’s revenues by backdating written agreements to record revenue in prior periods; recorded revenue on contracts that were subject to side letters or other contingencies that impacted revenue recognition; improperly recorded revenue for reciprocal or roundtrip transactions; and made false and misleading statements to Autonomy’s independent auditor about transactions allegedly supporting the recognition of revenue and other items in Autonomy’s financial statements. In so doing, Hussain allegedly issued materially false and misleading quarterly and annual financial statements on behalf of Autonomy. The indictment further alleges that defendant and others provided these financial statements to HP during the time that HP was considering whether to purchase Autonomy.
In addition, the indictment alleges that Hussain caused Autonomy to make materially false and misleading statements directly to HP regarding Autonomy’s financial condition, performance, and business during the negotiations between HP and Autonomy leading up to the August 18, 2011, acquisition announcement. Allegedly, Hussain made false and misleading statements about the nature of Autonomy’s products, concealed Autonomy’s non-appliance hardware sales, and made other false and misleading statements during HP’s “due diligence” of Autonomy. In sum, the indictment charges Hussain with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and fourteen (14) counts of wire fraud, in violation of 18 U.S.C. § 1343.
No federal court appearance has yet been scheduled for the defendant.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for each count of wire fraud and for the conspiracy count. 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. Attorneys Robert S. Leach and Adam A. Reeves are prosecuting the case with the assistance of Phillip Villanueva and Bridget Kilkenny. The prosecution is the result of a multi-year investigation involving the FBI and the United States Securities and Exchange Commission.
Federal Jury Convicts Two Former Postal Employees in Scheme to Defraud Worker's Compensation ProgramRead the Press Release
DALLAS — Following a nearly one-week trial before U.S. District Judge Sam A. Lindsay, two former employees of the U.S. Postal Service were convicted on felony offenses stemming from their scheme to defraud the Department of Labor’s (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
McArthur Baker, 69, and Tonya Evans, 52, both of Dallas, were each convicted on one count of conspiracy to defraud the U.S. with respect to claims and one count of false statements or fraud to obtain federal employees’ compensation. The conspiracy count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The false statements or fraud count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Both will remain on bond pending sentencing, which is set for March 6, 2017.
The government presented evidence at trial that Baker and Evans engaged in a scheme to receive kickbacks in exchange for their completion of falsified medical documentation that was used by co-conspirators to defraud DOL’s OWCP. The government presented further evidence that Baker also falsified forms related to travel he purportedly made for medical services, and as a result, received funds from DOL to which he was not entitled.
Baker began working for the U.S. Postal Service in 1982; he was assigned to work as a mail handler equipment operator. Between 1984 and 2007, Baker filed eight different claims for disability, claiming he suffered from various injuries. As a result of these claims, Baker stopped working in approximately December 2007. He never returned to work but continued to receive disability compensation from December 2007 until at least October 2009. He received more than $68,000 in worker’s compensation payments. He retired from the U.S. Postal Service in October 2009 but he continued to receive disability medical care paid for through DOL, and he continues to be eligible for disability medical care.
Evans began working for the U.S. Postal Service in November 1985; she worked as a clerk primarily with the parcel post distribution machine. She filed disability claims in August 2001, August 2003, and August 2008 claiming that she suffered from various injuries. As a result of these claims, Evans was placed on worker’s compensation in 2001. She received more than $340,000 in worker’s compensation payments. In March 2010, she applied for disability retirement that was approved in October 2011.
Convicted co-conspirator, Larry Washington, was a licensed professional counselor and ran several businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion. Through these businesses, Washington purportedly provided patients with counseling, pain management, chiropractic services, physical therapy, and massage services. His patients were former postal and Veterans Administration employees who had suffered on-the-job injuries and were eligible to receive medical services and worker’s compensation related to those injuries. Earlier this year, Washington pleaded guilty to one count of conspiracy to commit health care fraud and was sentenced in May 2016 to 78 months in federal prison and ordered to pay $7.7 million in restitution.
To maintain and enhance his billings with OWCP, Washington asked claimants, including Baker and Evans, to falsify medical documentation, called “mood inventories,” that indicated they had received services on days they had not. Baker and Evans completed numerous mood inventory forms that contained false information about the days on which Baker and Evans received treatment from Washington or someone working for Washington. Baker and Evans received approximately $100 for each form they completed.
Over the course of the fraud, Baker received a total of $3,000 from Washington; Evans received $6,000.
As a result of Baker’s falsified documentation, Washington was able to fraudulently bill $105,125 from OWCP. As a result of Evans’ falsified documentation, Washington was able to bill $202,438 from OWCP.
The government presented further evidence that Baker submitted falsified documentation related to travel he purportedly made to receive medical services from Washington and others. He also requested reimbursement for twice the amount of mileage he would have received had he actually received the purported services. As a result, based on fraudulent travel forms he submitted, Baker received more than $3,000.
In addition to Baker and Evans, 20 claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, a Postal employee detailed to the Postal Service Health Resource Management Office, and a medical provider’s employee were charged and convicted in the scheme.
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorneys Nicole Dana and Jennifer Bray are in charge of the prosecution.
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El Departamento De Justicia Interpone Demanda Contra Las Empresas Washington Potato Company Y Pasco Processing Acusándolas De Discriminación Contra InmigrantesRead the Press Release
El Departamento de Justicia interpuso hoy una demanda contra dos empresas con sede en el estado de Washington—Washington Potato Company y Pasco Processing LLC—alegando que violaron la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar contra empleados inmigrantes durante el proceso de verificación de la elegibilidad para trabajar con base en su estatus de ciudadanía.
Según la denuncia, desde al menos noviembre del 2013 hasta al menos octubre del 2016, Washington Potato y Pasco Processing solicitaron documentación limitada específica correspondiente al Formulario I-9 y/o E-Verify a los empleados que no eran ciudadanos de EE.UU., mientras le permitieron a empleados ciudadanos de EE.UU. la flexibilidad de presentar una variedad de documentos. Según INA, se debe permitir a todos los trabajadores, incluso los que no son ciudadanos de EE.UU., que elijan libremente entre la documentación válida para comprobar su autorización para trabajar. INA prohíbe que los empleadores discriminen al limitar ilícitamente las opciones que se les permite a los trabajadores con base en su estatus de ciudadanía.
"Las leyes federales protegen a las personas con autorización legal para trabajar ante los obstáculos discriminatorios durante la verificación de la elegibilidad para trabajar," dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, encargada de la División de Derechos Civiles del Departamento de Justicia. "Todas las personas con estatus legal para trabajar en los Estados Unidos deben tener igualdad de oportunidades para comprobar que pueden trabajar, independientemente de su estatus de ciudadanía o estatus migratorio."
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) es responsable de hacer cumplir la disposición antidiscriminatoria de INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; las prácticas documentales injustas; las represalias y la intimidación.
Para mayor información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración, llame a la línea directa de la OSC para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para las personas con dificultades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con dificultades auditivas); inscríbase a un seminario gratis en línea al www.justice.gov/crt/about/osc/webinars.php, correo electrónico [email protected]; o visite el sitio web de la OSC al www.justice.gov/crt/about/osc.
Los postulantes o empleados que crean que les han obligado a cumplir con requisitos documentales diferentes con base en su estatus de ciudadanía, estatus migratorio u origen nacional; o que hayan sufrido discriminación por motivos de su estatus de ciudadanía, estatus migratorio u origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; deben comunicarse con la línea directa de la OSC para trabajadores para solicitar ayuda.
District Man Sentenced to 12 Years in Prison for Sexual Abuse of 7-Year-Old GirlRead the Press Release
WASHINGTON - A 37-year-old man from Washington, D.C. was sentenced today to 12 years in prison for sexually abusing a seven-year-old child, announced U.S. Attorney Channing D. Phillips.
The man, who is not identified here to protect the privacy of the victim, pled guilty in September 2016, in the Superior Court of the District of Columbia, to one count of attempted first-degree child sexual abuse with aggravating circumstances and one count of second-degree child sexual abuse with aggravating circumstances. He was sentenced by the Honorable José M. Lopez. Following his prison term, the man will be placed on five years of supervised release. He also must register as a sex offender for the remainder of his life.
According to the government’s evidence, the defendant moved into his girlfriend’s home in Southeast Washington around December 2015, and sexually abused her daughter on multiple occasions until he was discovered by a family member on Aug. 14, 2016. When interviewed by Metropolitan Police Department (MPD) detectives, the defendant admitted to the abuse.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Youth and Family Services Division. He also commended those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan, Paralegal Specialist Angelina Slagle, and Assistant U.S. Attorney Julianne Johnston, who prosecuted the case.
Detroit man sentenced to federal prison for role in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who participated in a heroin conspiracy in 2014 was sentenced today to three years and 10 months in federal prison, announced United States Attorney Carol Casto. Rasheed T. Latham, 28, previously pleaded guilty to conspiracy to distribute heroin.
Between March and July 2014, Latham conspired with other individuals to distribute heroin in the Point Pleasant area of Mason County. During the conspiracy, Latham and others would frequently transport heroin from Columbus and Chillicothe to a residence in Gallipolis where they would store and prepare it for distribution. Members of the conspiracy would then distribute the heroin to customers in Gallipolis and to customers who traveled from Point Pleasant. Latham and others also frequently traveled to Point Pleasant where they used various residences to distribute the drugs.
The Drug Enforcement Administration Task Force, which includes the Putnam County Sheriff’s Department and the Gallia-Meigs County, Ohio, Major Crimes Task Force, conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Defendant Sentenced to 12 Months for Gun ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Kalvin Johnson, 35, of Pine Hill, Alabama, was sentenced today to 12 months of imprisonment by Senior U.S. District Judge Callie V. S. Granade for being a felon in possession of a firearm. The judge ordered that Johnson undergo 3 years of supervised release upon completing his term of imprisonment, undergo substance abuse testing and treatment, and pay a $100 mandatory special assessment.
On January 8, 2014, Johnson was convicted of dog fighting, a felony offense, in Circuit Court in Jefferson County, Alabama. On September 30, 2014, Thomasville Police Department officers found Johnson in possession of a loaded Glock model 19 semiautomatic pistol, marijuana, oxymorphine, and digital scales in his truck on Highway 5 in Clarke County, Alabama. In January 2016, Johnson was indicted by a Federal Grand Jury for the Southern District of Alabama for being a felon in possession of a firearm. On August 15, 2016, Johnson pled guilty to the gun charge.
The case was investigated by the Thomasville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Sinan Kalayoglu.
Dallas Woman Sentenced to 150 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
DALLAS — A Dallas woman, Manuela Esperanza Pavon, 35, was sentenced this morning by U.S. District Judge David C. Godbey to 150 months in federal prison, following her guilty plea in April 2016 to one count of conspiracy to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on November 10, 2015, Pavon, who admits that her license was suspended, was stopped by the Dallas County Sheriff’s Office for a traffic violation. The deputy advised her that he was going to tow her vehicle since she did not have a valid driver license.
During an inventory of her vehicle, the deputy located a purse on the front passenger floorboard area, and he asked if it belonged to Pavon. She said that it did. Inside the purse, the deputy located a plastic bag containing a crystal-like substance that later tested positive for one kilogram of methamphetamine. Pavon admitted she possessed the methamphetamine with the intent to distribute it.
The Drug Enforcement Administration and the Dallas County Sheriff’s Office investigated the case. Assistant U.S. Attorney Phelesa Guy was in charge of the prosecution.
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Dallas Methamphetamine Traffickers SentencedRead the Press Release
DALLAS — Two Dallas men who were convicted on methamphetamine trafficking conspiracy charges were sentenced last week by Chief U.S. District Judge Barbara M. G. Lynn to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Mario Chavez-Bravo, a/k/a “Rafael Lua-Maguna” and “Mickey,” 27, was sentenced to 200 months in federal prison. Rafael Hurtado, a/k/a “Rafi,” and “Ralphie,” was sentenced to 135 months in federal prison. Each pleaded guilty in May 2016 to one count of conspiracy to distribute a controlled substance.
Chavez-Bravo admitted that during the conspiracy, he possessed with the intent to distribute and/or distributed at least eight kilograms of methamphetamine. On February 9, 2015, Chavez-Bravo spoke to a male over his cell phone about turning over some drug proceeds (“about $300”) to the male. The next day, Chavez met with the male at the Texas Motel on West Davis Street in Dallas and delivered to him a box containing approximately $300,000 in cash drug proceeds. In fact, Chavez-Bravo admitted that during the conspiracy, he collected or delivered a total of $569,305 in drug proceeds.
Hurtado admitted that on several occasions during the conspiracy, he received quantities of methamphetamine from methamphetamine distributor, Tommy Rodriguez, and then distributed the drugs in exchange for payment. In fact, during the conspiracy, Hurtado possessed with the intent to distribute and/or distributed 11 kilograms of methamphetamine.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Phelesa Guy prosecuted the case.
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DEA to Announce Comprehensive Strategy to Address Fentanyl/Heroin Abuse, Opioid Misuse, and Violent Crime in Manchester, NHRead the Press Release
Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration (DEA) New England Field Division, announced today that Manchester, New Hampshire, will be the first city in the Northeast where the DEA will implement the new, comprehensive 360 Degree Strategy to address prescription opioid misuse, heroin abuse and violent crime.
A news conference announcing Manchester’s selection as the first city in the region for the DEA strategy is scheduled for Tuesday, November 15, 2016 at 10:00 A.M. at the Manchester Boys & Girls Club, 555 Union Street, Manchester, NH 03104
Moderator Jon C. DeLena, Assistant Special Agent in Charge, DEA Manchester District Office
Speakers at the announcement include:
- Michael J. Ferguson, Special Agent in Charge, DEA New England Field Division
- Emily Gray Rice, United States Attorney, District of New Hampshire
- Joseph Foster, Attorney General, State of New Hampshire
- Ted Gatsas, Mayor of Manchester
- James Vara, Governor’s Advisor on Addiction and Behavioral Health
- Nick Willard, Chief of Police, City of Manchester
- William Goodman, MD, MPH, FCCP, Chief Medical Officer and VP Medical Affairs, Catholic Medical Center
- Mary Forsythe-Taber, Executive Director, Makin It Happen Coalition for Resilient Youth
- Tracy Bachert, Parent/Community Volunteer
The goals of the new strategy include stopping the deadly cycle of prescription opioid misuse and heroin abuse by dismantling the drug trafficking organizations and gangs fueling violence on the streets and addiction in communities. The strategy importantly includes partnerships with healthcare professionals, social service organizations and government service agencies that are best positioned to provide long-term help and support to effectuate drug-free communities.
Just some of the national and local partners that are participating in the new strategy include the U.S. Attorney’s Office District of New Hampshire, New Hampshire Attorney General Office, Manchester Police Department, Makin It Happen Coalition, Manchester Boys & Girls Club, Partnership for Drug Free New Hampshire and many others.
Members of the media wishing to attend the press conference are asked to contact DEA Public Information Officer/Special Agent Timothy Desmond by Monday, November 14, at desk (617) 557-2463.
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Compton Man Sentenced to over 13 Years in Federal Prison in Sex Trafficking Case Involving Sexual Assault of a Minor GirlRead the Press Release
LOS ANGELES – A Compton man who admitted to sex trafficking a 15-year-old girl, subjecting her to a month of sexual abuse, and advertising the victim as a prostitute was sentenced today to 160 months in federal prison.
Darrius Marques Sutton, also known as “Biz,” 26, was sentenced by United States District Judge Terry J. Hatter Jr., who said he would have imposed a longer sentence had Sutton not been sentenced previously to more than four years in state prison on related pimping charges.
“This defendant’s conduct was horrific and warranted the lengthy sentence imposed by the court today,” said United States Attorney Eileen M. Decker. “He repeatedly sexually assaulted children, and he filmed the assaults – at times laughing during the attacks. His callous behavior and willingness to sell the bodies of his young victims for his own financial gain is abhorrent and demonstrates a complete lack of respect for all women and girls.”
In the federal case, Sutton pleaded guilty in June to one count of sex trafficking of a child.
Over the course of month-long spree in 2011, Sutton “repeatedly engaged in violent sexual assaults on young women, and [he] appears to have taken delight in subjecting his victims to inhumane and humiliating treatment while breaking them into his stable of prostitutes,” prosecutors wrote in a sentencing memorandum filed with the court.
At today’s sentencing hearing, prosecutors said that, over a five-month period, Sutton had posted at least 60 advertisements for prostitution on Backpage.com, some of which offered minor victims.
“It is difficult to imagine sexual assaults more egregious than defendant’s. As defendant admits, he repeatedly raped…a 15-year-old girl, and recorded himself and others doing so – at times while she was unconscious, including on at least one occasion with a vodka bottle,” prosecutors wrote in court papers, which noted a video recorded by Sutton in which he violently punches a young woman in the face, apparently breaking her nose.
Sutton is one of four men who were indicted by a federal grand jury in August 2015. The federal case followed a state court prosecution of the men in which Sutton was convicted of conspiracy to pimp a minor. In the state case, Sutton was sentenced to 52 months in prison.
The three other men named in the indictment are:
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Darius Dajohn Burks, 28, of Los Angeles, who pleaded guilty earlier this year;
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Edwin Donnell Franklin, 29, of Bellflower, who pleaded guilty earlier this year; and
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Leprinceton Dewon Burks, also known as “Dapper P” and “Pete Williams,” 32, of Carson, who is scheduled to go on trial before Judge Hatter on March 28.
This case was investigated by the FBI’s Innocence Lost Task Force and the Los Angeles Police Department Detective Support and Vice Division, Human Trafficking Unit.
This case was prosecuted by Assistant United States Attorney David M. Herzog of the Violent and Organized Crime Section and Assistant United States Attorney Jennie L. Wang of the Cyber and Intellectual Property Crimes Section
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Cleveland man charged with enticement, sexual exploitation of a childRead the Press Release
A Cleveland man was charged with enticement, sexual exploitation of a child and receiving visual depictions of a minor engaged in sexually explicit conduct, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Kevin D. Wyrock, 49, knowingly used a cellular phone with Internet connectivity, to persuade, induce, entice, coerce and attempt to persuade, induce, entice and coerce a 12-year-old girl, to engage in sexual activity for which Wyrock could be charged with a criminal offense. This took place in October 2015, according to the indictment.
The indictment also charges that during that same time period, Wyrock used, persuaded, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transported and transmitted, using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, and such visual depiction was actually transported and transmitted, using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment also charges that during that same time period, Wyrock knowingly received, using any means and facility of interstate and foreign commerce, numerous digital files, which files contained visual depictions of a real minor engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland and Miami offices of the Federal Bureau of Investigation and the Juniper (Florida) Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man charged for bank robberies and escapeRead the Press Release
A federal grand jury indicted Derrick Swinney, 46, of Cleveland, on one count of escape and two counts of bank robbery, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about January 13, 2016, Swinney walked away from the Oriana House, a correctional halfway house in Cleveland, after having been released from federal prison following a 2005 conviction for bank robbery.
The indictment further alleges that Swinney robbed the Key Bank at 3110 W. 117th Street, in Cleveland, on September 20, and again on October 4, 2016, of a total of $4,870.
The U.S. Marshal Service conducted the investigation in conjunction with the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Karrie D. Howard.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chicago Drug Dealer Sentenced to 35 Years in Prison for Trying to Kill a Federal InformantRead the Press Release
CHICAGO — A drug dealer who sold crack cocaine and heroin on Chicago’s West Side and western suburbs was sentenced today to 35 years in prison for trying to murder a federal informant who was assisting law enforcement.
KELSEY JONES and his associates tried to kill the informant on two occasions in the spring of 2014 in retaliation for the informant’s cooperation with the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. In the first attempt, Jones’ younger brother, TOBY JONES, fired several shots through the front door of an apartment in the informant’s building in Oak Park. The informant was not injured, but an innocent victim was wounded. The second attempt occurred a week later, when Kelsey Jones approached the informant’s vehicle outside of the same building and fired several shots, wounding the informant and another occupant. Both victims survived, as did the victim of the first shooting.
Kelsey Jones, 40, and Toby Jones, 39, both of Chicago, were convicted earlier this year of conspiring with each other in the attempted murder of the informant, as well as gun and drug charges. Toby Jones was sentenced in May to 40 years in prison.
“Defendant’s crimes are among the most serious of federal offenses,” Assistant U.S. Attorney Sean J.B. Franzblau argued in the government’s sentencing memorandum in Kelsey Jones’ case. “When a federal undercover operation disrupted his drug trade, defendant had the audacity to join his brother Toby in an attempt to murder the informant.”
In handing down the sentence today for Kelsey Jones, Judge Amy J. St. Eve also found that he obstructed justice by lying at a 2015 suppression hearing in a failed effort to prevent the jury from hearing about admissions he made to ATF agents after his arrest.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and George Lauder, Acting Special Agent in Charge of the Chicago Field Division of ATF. The Oak Park Police Department assisted in the investigation.
Testimony at trial revealed that Toby Jones led a small group of cocaine and heroin dealers, and actively sought to obtain firearms in connection with his drug dealing activities. In December 2013, a confidential informant introduced an undercover ATF agent to Toby Jones, and for the next several months the agent and the informant purchased crack cocaine from him. Toby Jones also planned to purchase from the undercover agent a firearm with a high-capacity magazine in exchange for crack cocaine.
On March 26, 2014, Toby Jones sent one of his drug dealers, WESLEY FIELDS, to meet with the undercover agent and purchase the gun. Fields was arrested by federal authorities shortly after he arrived at the meeting. Toby Jones thereafter began a week-long effort to track down and murder the confidential informant who set up the deal, culminating in the shootings in Oak Park.
Fields, of Chicago, pleaded guilty to participating in a drug conspiracy and possessing a firearm. He was sentenced in May to nine years and nine months in prison.
The government is represented by Mr. Franzblau and Assistant U.S. Attorney Brian Hayes.
Bradenton Man Convicted of Possessing Firearm, Ammunition, and HeroinRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Brandon Williams (31, Bradenton) guilty of possessing a firearm and ammunition as a convicted felon and possessing heroin with the intent to distribute it. He faces a maximum penalty of 10 years in federal prison for the firearm count and up to 20 years in federal prison for the heroin count. His sentencing is scheduled for February 17, 2017. Williams was indicted on July 28, 2015.
According to evidence presented at trial, on June 13, 2015, Williams possessed a loaded .40 caliber firearm and approximately 2 grams of heroin. He attempted to dispose of both as law enforcement authorities arrived at the scene. As a previously convicted felon, Williams was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Carlton C. Gammons.
Bank CEO Sentenced to PrisonRead the Press Release
Brian Hartline, 52, of Collegeville, PA, was sentenced today by U.S. District Court Judge C. Darnell Jones, II, to a term of imprisonment of 14 months and fined $50,000 for his role in a fraud conspiracy to obtain $13.5 million in public funds for NOVA Bank. On April 27, 2016, Hartline and co-defendant Barry Bekkedam were found guilty of conspiracy to defraud the United States, TARP fraud, and two counts of false statements to the federal government. Hartline had served as President and Chief Executive Officer of NOVA Bank and co-defendant Bekkedam had served as Board Chairman. Their scheme involved the Troubled Asset Relief Program (TARP) and was devised to defraud the government of more than $13 million.
Bekkedam and Hartline, with others, formed NOVA Bank in 2002. Bekkedam also owned and operated a financial advisory company, Ballamor Capital Management, and advised Ballamor clients to invest in NOVA. But in 2008, NOVA faced risk of failure because of bad loans and investments. In October 2008, NOVA Financial Holdings, Inc., of Berwyn, Penn., the parent company of NOVA Bank, applied for approximately $13.5 million through the U.S. Department of the Treasury Troubled Asset Relief Program. In June 2009, NOVA Bank was approved to receive the TARP funds on the condition that the bank raised $15 million in additional, private capital.
Bekkedam and Hartline devised a scheme to make NOVA bank appear more financially sound than it was – that new money was being invested in the bank. As part of the scheme, the defendants arranged for NOVA Bank to loan money to three individuals to transfer to NOVA’s parent company so it would appear as though the bank had new capital from an outside investor. In fact, the “new money” investment was the bank’s own money.
The bank ultimately did not receive TARP funds, and in October 2012, the bank failed and was closed by state and federal banking regulators.
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service Criminal Investigations, the Federal Deposit Insurance Corporation Office of Inspector General, the Office of Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. This case was prosecuted by Assistant United States Attorney David J. Ignall.
Amherst man charged with mailing threatening communicationRead the Press Release
A federal grand jury indicted Michael G. Roby, 46, of Amherst, on charges of mailing a letter threatening the lives of a male victim and his family, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about June 15, 2016, Roby knowingly caused to be delivered by the United States Postal Service a letter to the victim that contained threats to injure the victim as well as the victim’s mother, brother, wife, and son.
The Amherst Police Department and the Federal Bureau of Investigation conducted the investigation. The case is being prosecuted by Assistant United States Attorney Ranya Elzein.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Friday 11 November 2016
U.S. Attorney speaks at two Lafayette ceremonies honoring military on Veterans DayRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley was guest speaker at two Veterans Day events dedicated to those who serve our nation’s military.
The U.S. Attorney was keynote speaker at the Lafayette Memorial Park Cemetery annual Veterans Day Service at 3 p.m. The event featured Junior ROTC members, a singer, pledge recitation, invocation and the placing of a wreath to honor fallen soldiers. She was also guest speaker at Honorfest at 6 p.m. at Parc International hosted by Townsquare Media that featured inspirational messages, a video presentation and country music star Trace Adkins. It also featured local music artists such as Kipp Sonnier, Steve Grisaffe and Jeff Dugan who entertained the veterans and visitors. A portion of the proceeds of Honorfest goes to American Legion Post 69 in Lafayette. Finley spoke about sacrifices that military members and their families makes every day. She reminded those attending that we owe thanks to them for the freedoms they protect.
Assistant U.S. Attorney Daniel J. McCoy spoke on Thursday, November 10, 2016 at the St. Thomas More High School Veterans Day ceremony. McCoy served as guest speaker addressing the student about the importance of veterans to our nation. The event also featured patriotic music being played by the high school band and a mass.
“Our military members should never be forgotten,” Finley stated. “We don’t always acknowledge the soldiers, sailors and airman who continue to serve and sacrifice. They come from all walks of life and many backgrounds and are bonded by their dedication to our nation.”
A 1991 Cum Laude graduate of SULC, Finley was recommended by Senator Mary Landrieu and appointed by President Barack Obama on Jan. 20, 2010 to serve as the top federal law enforcement officer in the Western District of Louisiana. She was confirmed by the U.S. Senate on May 28, 2010, and took the oath of office on June 2, 2010, as the first woman appointed to serve as U.S. Attorney in the State of Louisiana.
Finley is responsible for overseeing federal criminal prosecutions occurring in 42 of the 64 parishes in the State for crimes ranging from acts of terrorism to public corruption, complex white collar crimes, investment schemes, organized crimes and gang activities, civil rights, internet-related crimes, drug trafficking, firearms violations, violent crimes, child exploitation, environmental crimes, tax evasion, illegal immigration and alien smuggling, among other criminal activity. She is also charged with defending the United States in civil cases and collecting debts owed to the United States.
Before joining the U.S. Attorney's Office, Finley was on active duty with the U.S. Air Force, stationed at England Air Force Base in Louisiana and Shaw Air Force Base in South Carolina. She served as a Lieutenant Colonel in the U.S. Air Force Reserves where she was a Judge Advocate assigned to the 8th Air Force Global Strike Command located at Barksdale Air Force Base. Prior to being at the 8th Air Force, she was assigned to the 2nd Bomb Wing Judge Advocate General's Office at Barksdale Air Force Base. Her duties as a JAG officer have included serving as a hearing officer for criminal cases and administrative discharge boards, working in the areas of contract and labor law and military justice as well as providing legal assistance services for active duty, reservists and dependents of the military.
Daniel J. McCoy serves as the Executive Officer of the Navy Reserve, Defense Institute of International Legal Studies unit in Newport, R.I., in addition to being an assistant U.S. Attorney in Lafayette. He attended the U.S. Naval Academy and received a bachelor’s degree of science in political science, with distinction, in May 1996. Following his graduation, McCoy was commissioned as an ensign, and completed Surface Warfare Officer’s School in Newport, R.I., in March 1997. He has served in various operations and missions all over the world throughout his career. He was selected for the Law Education Program early in his career and attended Tulane University School of Law in New Orleans. He received the degree of Juris Doctor, cum laude, in May 2004. In addition to his work as an attorney in the Navy, he also served as an instructor and has earned numerous medals for his service.
Topsfield Attorney Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – A Topsfield man was sentenced in U.S. District Court in Boston late yesterday for filing false tax returns with the Internal Revenue Service (IRS) over the course of four years.
John H. Molloy, Jr., 53, was sentenced by U.S. District Court Judge George A. O’Toole, Jr., to one year of probation and ordered to pay restitution of $332,019 to the IRS, a fine of $5,000, and complete 100 hours of community service. In August 2016, Molloy pleaded guilty to four counts of filing false tax returns.
Molloy, an attorney, maintains offices in Jamaica Plain and Revere. A substantial portion of Molloy’s law practice involved representing victims of automobile accidents. From 2006 to 2009, Molloy deposited settlement checks from automobile insurers into his business accounts, but used these business accounts to pay personal expenses. All of these funds were income to Molloy and should have been reported to the IRS; however, Molloy actively concealed almost
$1 million of income from the IRS over a four-year period. When accountants asked Molloy which funds in his business accounts should be reported to the IRS, Molloy told them that substantial chunks of money were not income and did not need to reported—even though he knew this was untrue. From 2006 to 2009, Molloy failed to report $979,341 of income to the IRS, failing to pay $332,019 in taxes.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau, made the announcement. Assistant U.S. Attorney David S. Schumacher of Ortiz’s Criminal Division prosecuted the case.
Jury Convicts Home Health Agency Owner in $13 Million Medicare Fraud ConspiracyRead the Press Release
A federal jury in the Southern District of Texas convicted a Houston-based home-health agency owner for her role in a $13 million Medicare fraud scheme and money laundering.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge D. Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in Charge C.J. Porter of the Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Marie Neba, 52, of Sugarland, Texas, co-owner of Fiango Home Healthcare Inc. (Fiango) was convicted yesterday of one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, one count of payment and receipt of health care kickbacks, one count of conspiracy to launder monetary instruments and one count of making false statements. A week into the trial, her co-owner and husband, Ebong Tilong, 52, also of Sugarland, pleaded guilty to one count of conspiracy to commit health care fraud, three counts of healthcare fraud, one count of conspiracy to pay and receive healthcare kickbacks, three counts of payment and receipt of healthcare kickbacks and one count of conspiracy to launder monetary instruments. Neba and Tilong are scheduled to be sentenced on Feb. 17, 2017.
According to the evidence presented at trial and admissions made in connection with Tilong’s plea, from February 2006 through June 2015, Neba, Tilong and others conspired to defraud Medicare by submitting over $13 million in false and fraudulent claims for home-health services to Medicare through Fiango. Neba and Tilong paid illegal kickbacks to physicians in exchange for authorizing medically unnecessary home-health services for Medicare beneficiaries. Using the money that Medicare paid for such fraudulent claims, Neba and Tilong paid illegal kickbacks to patient recruiters for referring Medicare beneficiaries for home-health services. Neba and Tilong also paid illegal kickbacks to Medicare beneficiaries for allowing them to bill Medicare using their Medicare information for home-health services that were not medically necessary or not provided. Neba and Tilong falsified medical records to make it appear as though the Medicare beneficiaries qualified for and received home-health services.
According to the evidence presented at trial and Tilong’s admissions, from February 2006 to June 2015, Neba and Tilong received more than $13 million from Medicare for home-health services that were not medically necessary or not provided to Medicare beneficiaries.
To date, three others have pleaded guilty in connection with the scheme: Nirmal Mazumdar, M.D., the former medical director of Fiango, pleaded guilty to a scheme to commit health care fraud; and Daisy Carter and Connie Ray Island, two patient recruiters for Fiango, pleaded guilty to conspiracy to commit health care fraud. Mazumdar, Carter and Island all await sentencing.
The IRS-CI, FBI and HHS-OIG investigated the case under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas. Trial Attorney William S.W. Chang and Senior Trial Attorney Jonathan T. Baum of the Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Thursday 10 November 2016
York Man Indicted for Distributing Large QuantitiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeff Smith, age 29, of York, Pennsylvania, was indicted on November 9, 2016, by a federal grand jury on drug trafficking charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Smith possessed with the intent to distribute over 280 grams of crack cocaine from 2014 through his arrest on October 5, 2016. The distribution of 280 grams or more of crack cocaine carries a mandatory minimum sentence of 10 years in prison.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the York City Police Department and is being prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wheeling Island man pleads guilty to crack cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Clarence William Bertram, 24, of Wheeling, West Virginia, pled guilty to crack cocaine distribution in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Bertram pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” He admitted to selling crack cocaine near Madison Elementary School in Ohio County, West Virginia. He faces up to sixty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge James E. Seibert presided.
Warden, Washington Man Sentenced to 15 Years in Federal Prison for Production of Child Pornography and Firearm OffensesRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Alfredo Mendoza, age 34, of Warden, Washington, was sentenced today after having previously plead guilty on August 30, 2016, to Production of Child Pornography and to being a Felon in Possession of a Firearm. United States District Judge Salvador Mendoza, Jr. sentenced Mendoza to a 15-year term of imprisonment, to be followed by a ten-year term of court supervision after he is released from Federal prison. In addition, Mendoza will be required to register as a sex offender.
According to information disclosed during the court proceedings, in November 2015, Mendoza was under investigation for his potential involvement in a series of gang-related drive-by shootings that had occurred in Grant County, Washington. Law enforcement officers obtained a search warrant for Mendoza’s residence. Upon executing the warrant, they discovered a loaded 9mm revolver in Mendoza’s bedroom. The firearm was forensically examined and Mendoza’s thumb print was found on it. His cellular telephone was also seized from the bedroom, which telephone was thereafter examined pursuant to a court-authorized search warrant to look for evidence of the earlier gang-related shootings.
When law enforcement officers discovered images of child pornography while examining Mendoza’s phone, they obtained a second search warrant. The officers’ follow-on investigation revealed that Mendoza had directed an underage girl to take pornographic photos of herself and text them to him. He had also created videos of sexual acts with the girl. Some of the images were taken in Mendoza’s bedroom and, in one video, he can be seen setting up the camera. Mendoza knew the victim was a minor at the time. The girl was a friend of Mendoza’s daughter and lived with him for a time.
At the sentencing hearing today, the Judge emphasized that the victim “was a child” and that he was troubled by “the manner in which [Mendoza] manipulated” her. The Judge also stated that Mendoza “had an opportunity to right this ship” and step away from his long history of gang-related violence, telling him “you created this and now you have theability to change.”
Michael C. Ormsby said, “This case is a superb example of the excellent work that can be accomplished when state and federal law enforcement work together. I commend the Grant County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Today’s sentence should serve as a warning that child pornography and firearm offenses will be actively and aggressively pursued by federal and state law enforcement officers.”
This investigation was conducted by the Grant County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Alison L. Gregoire and Allyson Edwards, Assistant United States Attorneys for the Eastern District of Washington.
Utah Man Pleads Guilty in Manhattan Federal Court to Commodities Fraud in Connection with Foreign Exchange TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SCOTT A. BEATTY pled guilty in Manhattan federal court today to commodities fraud in connection with his scheme to defraud at least 49 investors of more than $825,000 through a scheme in which BEATTY solicited investments for off-exchange foreign currency contracts known as “forex.” BEATTY was arrested on April 21, 2016, and pled guilty today before United States Magistrate Judge Sarah Netburn.
U.S. Attorney Preet Bharara said: “Scott Beatty admitted today that he purposely cheated dozens of investors out of hundreds of thousands of dollars. He lied about his abilities to generate returns on foreign exchange investments, and then used investors’ money to pay his own bills and to pay back other investors.”
According to the Complaint, the Information, and other statements made in open court:
From January 2011 through June 2014, BEATTY, through his investment companies Peak Capital Management Group, Inc., and Peak Capital Group, Inc., engaged in a fraudulent scheme to obtain investments from individual investors purportedly for the purpose of trading in forex. In connection with the scheme, BEATTY made a series of false and misleading representations to investors, on a website he created and maintained (the “Website”) and through email, including: (a) that BEATTY was using investors’ funds to conduct forex trading when, in fact, BEATTY used just $125,000 of the $825,00 in investor funds for trading; (b); that BEATTY’s forex trading was generating consistently positive annualized returns as high as 43.9 percent when, in fact, his limited trading was consistently unsuccessful; and (c) that BEATTY had created individual accounts for each investor, in which BEATTY purported to execute forex trading when, in fact, BEATTY failed to create such individualized accounts. In addition to false and misleading representations made on the Website and over email, BEATTY generated wholly fictitious account statements that he provided to his clients through a client portal on the Website.
As a result of these misrepresentations, BEATTY obtained more than $825,000 in investments from more than 49 investors, the majority of whom were Japanese citizens who were not authorized to trade leveraged, margined, or financed forex in individually managed accounts under the Commodity Exchange Act. Of the money he did not lose in commodities trading, BEATTY routinely converted investor funds to his own use in the form of cash withdrawals and debit card purchases, including at least $517,000 for, among other things, BEATTY’s personal expenses such as restaurant bills and retail purchases. In addition, to hide his trading losses and continue to fund his personal lifestyle, BEATTY used new investor funds to pay back other investors in a Ponzi-like fashion. In total, BEATTY distributed approximately $184,000 back to investors.
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BEATTY, 41, of Roy, Utah, pled guilty to one count of commodities fraud, which carries 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 sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. The defendant will be sentenced at a future date by United States District Judge Paul G. Gardephe.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the U.S. Commodity Futures Trading Commission for their assistance with the investigation.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
U.S. Attorney’s Office recognizes Western District of Louisiana veteransRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: United States Attorney Stephanie A. Finley would like to honor the men and women of the Western District of Louisiana and their family members who have served in the U.S. Armed Forces.
Western District of Louisiana employees being honored for their service are:
United States Army - Kevin Bodden, F. Michael Campbell, U.S. District Judge Dee D. Drell, Robert W. Gillespie Jr., U.S. District Judge Richard T. Haik (retired), David C. Joseph, Deborah Ritchey Mahony, C. Vincent Mangum, Joseph T. Mickel, Howard C. Parker, Edward Prokopf, U.S. District Judge Tom Stagg (deceased), Fifth Circuit Chief Judge Carl E. Stewart, Chris Turner and U.S. District Judge Donald E. Walter.
United States Navy - Joseph G. Jarzabek, Daniel J. McCoy and Ryan Turner.
United States Coast Guard - Dennis K. Austin and U.S. Magistrate Judge Patrick Hanna.
United States Marine Corps – Jerry Stanley Hayden and Angelo Iorio.
United Stated Air Force - Mitzie Cochrane, U.S. Attorney Stephanie A. Finley, Samuel W. Glass Sr., John S. Odom Jr., F. Michael O’Mara, Ryan Peck, Charlene Pullum, U.S. District Judge James T. Trimble Jr. and U.S. Marshal Henry L. Whitehorn Sr.
Immediate family members of the personnel in the Western District of Louisiana U.S. Attorney’s Office and U.S. District Court System being honored for their service are:
United States Army – Alan Carpenter, Steven Carpenter, Gerald Champagne, Andrea Doucet, Steven L. Dupont, Garnett L. Gilreath, Doyce Ray Hebert, Eddie Hutchens, Eric Iorio, Shelton Julian, Joseph LeJeune, David A. McBride, Joseph R. Nolan, Michael E. Schaff, Barney W. Skipper and Fritz L. G. Trappey.
United States Navy - Kyle Alwert, Thomas P. Cagney, David Cochrane, Leon Gordon Jones, Joseph R. Namie Jr. and John L. Witt.
United States Air Force - John T. Julian, Russell Pullum and Alan Williams.
United States Marine Corps - Stephen Box, Enoch L. Drost, Will L. Hayden and Richard L. Hayden.
Of those listed above, three have received Purple Hearts and other medals for their actions during various wars. Shelton Julian, the grandfather of Assistant U.S. Attorney Karen King, served in the U.S. Army during World War II. He was assigned to the 92nd Infantry, Buffalo Division. During his service, he received the Purple Heart and one Oak Leaf Cluster. United States District Court Judge Tom Stagg served in the U.S. Army during WWII in Europe from 1944-1946. During his service, he received the Combat Infantry Badge, the Bronze Star for Valor, the Bronze Star for Meritorious Service and two Purple Hearts. Judge Stagg died on June 23, 2015. Steven Dupont, son of FDA Investigator Charles Dupont, served in the U.S. Army from 2008 until 2010 and was stationed at Headquarters and Headquarters Company, 3d Squadron, 2d Stryker Cavalry Regiment at Rose Barracks in Vilseck, Germany. He was assigned to Ghostrider Company as a Forward Observer during Operation Enduring Freedom in Afghanistan. Dupont was killed in action on October 24, 2010, in Rangrizan, Afghanistan. Specialist Dupont was awarded the Bronze Star, the Purple Heart, the NATO Medal and the Combat Action Badge, posthumously. While on active duty, he received the National Defense Service Medal, Afghanistan Campaign Medal, Global War on Terrorism Service Medal, Army Service Ribbon and the Overseas Service Ribbon.
The Purple Heart is given to military members who are wounded or killed in action. The Bronze Star of Valor is awarded for acts of heroism, acts of merit or meritorious service in a combat zone and is the fourth highest combat decoration awarded to military members. The Oak Leaf Cluster denotes subsequent decorations and awards.
“There is no ceremony or monument that can ever show enough gratitude or tell the stories of every member of our military who has given so much in the service to our country,” Finley stated. “Rarely does anyone recount the struggle of the service member who leaves his or her family behind to serve overseas in support of a military operation, the sailor who risks his or her life traveling through dangerous waters for weeks, or the soldier or airman who works sun up to sun down to ensure our country’s safety. Their deeds of heroism will never be fully told, but today we can remember, then we can honor them, and celebrate those who continue to serve this nation with dedication, courage and sacrifice. It is their contributions of time, effort, emotion, patriotism and sometimes even their lives that we can live free. Today is about thank you!”
U.S. Attorney's Office and ATF Announce $500,000 PSN Federal Grant at Morning Press ConferenceRead the Press Release
FORT WORTH, Texas – John Parker, U.S. Attorney for the Northern District of Texas, and William Temple, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives Dallas Field Division, joined Ken Shetter, President of One Safe Place, and Joel Fitzgerald, Fort Worth Chief of Police, at a press conference this morning to announce a $500,000 federal grant that has been awarded to One Safe Place to implement the Project Safe Neighborhoods (PSN) initiative in two Fort Worth neighborhoods.
PSN is a nationwide commitment to reduce gang and gun crime in the U.S. by networking existing local programs that target gun and gang crime and providing these programs with additional tools for success. PSN’s strategic approach brings more “science” into criminal justice operations by leveraging innovative applications of analysis, technology and evidence-based practices to improve performance and effectiveness while containing costs.
The grant is one of only seven half-million dollar grants awarded by the Justice Department’s Office of Justice Programs Bureau of Justice Assistance and funded under the 2016 Violent Gang and Gun Crime Reduction/Project Safe Neighborhoods initiative. This grant also addresses domestic violence, which, according to many statistics, is a major contributing factor for the increase in gun and violent crimes.
The funds from this grant will be specifically used in the Stop Six/Poly and the Las Vegas Trail Corridor in Fort Worth. Following this morning’s press conference, volunteers and neighborhood police officers with the Fort Worth Police Department will distribute door hangers in those neighborhoods. Each “Not on My Block” door hanger provides resources for reporting criminal activity, to include the Crime Stoppers anonymous tip line phone number.
“My office is committed to working side by side with the people who live in these neighborhoods, our partners at One Safe Place, and our partners in law enforcement to stop the destructive cycle of gun and gang violence that terrorizes our communities,” said U.S. Attorney Parker. “This grant funding significantly enhances that effort in Fort Worth by providing additional tools for success.”
“With the additional grant funding for One Safe Place, another great step in the holistic approach in tackling the gun and gang problem that plagues many cities is taking place here in Fort Worth,” SAC Temple said. “It is through community based organizations working with law enforcement at every level that this problem can be addressed and make life better for our citizens.”
“As longstanding partners with One Safe Place in the effort to reduce violent crime in Tarrant County, we are extremely pleased the DOJ chose to fund their efforts to reduce gang and gun violence,” said Chief Fitzgerald. “We are steadfast in our commitment to meaningful partnerships in the community to make Fort Worth the safest large city in America. This grant award will certainly bring us closer to that reality.”
“PSN has helped ensure a very effective collaboration between local, federal and community based partners, which has reduced gun and gang violence in Fort Worth,” said Mr. Shetter. “Funding under the 2016 PSN Program will allow us to take this partnership to the next level, build on the knowledge and best practices that have already been developed, and target resources on hot spots for gun and gang violence. We are particularly excited that the One Safe Place strategy addresses domestic violence as a significant contributor to gun and gang violence in the community.”
One Safe Place, in collaboration with partner agencies, will use the new grant to focus on targeted enforcement, prevention, community outreach, and reentry programs, with an emphasis on interrupting the cycle of violence in order for communities to sustain crime reduction.
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U.S. Attorney StatementRead the Press Release
TOPEKA, KAN. – U. S. Attorney Tom Beall made the following statement:
Based on information known to the U.S. Attorney’s Office we have closed our inquiry into the Oct. 29, 2011, explosion of a grain elevator at 324 Riverfront Road in Atchison, Kan. We have determined there is not sufficient evidence to support criminal charges against the owner, Bartlett Grain Company. This announcement does not dismiss pending enforcement actions by the Occupational Safety and Health Administration.
U.S. Attorney General Honors Fata Prosecution TeamRead the Press Release
The team responsible for the investigation and prosecution of Dr. Farid Fata was among 376 employees recognized by Attorney General Loretta E. Lynch today for their distinguished public service at the 64th Annual Attorney General’s Awards Ceremony. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the mission of the Department of Justice.
Among the employees recognized were Linda Aouate, Sarah Resnick Cohen, John K. Neal and Wayne F. Pratt, Assistant United States Attorneys, and Sandy Palazzolo, Victim-Witness Coordinator, from the U.S. Attorney’s Office for the Eastern District of Michigan; Gejaa T. Gobena, former Deputy Chief, and Catherine K. Dick, Supervisory Trial Attorney, of the Fraud Section, Criminal Division; Joan E. Hartman, Trial Attorney, Fraud Section, Commercial Litigation Branch, Civil Division; Bryan Drake, William Brian Fairweather, Kevin J. Swanson, Special Agents, and LaFell D. Peoples, Forensic Accountant, Detroit Field Office, Federal Bureau of Investigation; Abhijit Dixit and Michael Fairbanks, Special Agents, Office of Inspector General, U.S. Department of Health and Human Services; and Kevin Nalu, Special Agent, Internal Revenue Service, Criminal Investigations, U.S. Department of Treasury.
The team was presented the Attorney General’s Award for Fraud Prevention. This award recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption. The team received this award for its work on the case of United States v. Farid Fata.
Fata was a licensed medical doctor who owned and operated a cancer treatment clinic, Michigan Hematology Oncology P.C. (MHO), which had locations in Rochester Hills, Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park, Michigan. He also owned a diagnostic testing facility, United Diagnostics PLLC, located in Rochester Hills.
Fata was sentenced to 45 years in prison for his role in a health care fraud scheme that included prescribing and administering unnecessary aggressive chemotherapy, cancer treatments, intravenous iron and other infusion therapies to 553 individual patients to increase his billings to Medicare and other insurance companies. Fata submitted fraudulent claims totaling approximately $34 million. The team was successful in seizing approximately $11.9 million and put together a team of specialists to assist former patients and family members of Dr. Fata in submitting claims for restitution.
“We are grateful for the work of the agents, prosecutors and victim coordinators who investigated and prosecuted the case against Dr. Fata.” McQuade said. “This group worked around the clock to investigate allegations promptly and thoroughly to stop Dr. Fata from harming patients and bring him to justice.”
“Dr. Fata prioritized greed for monetary gain over his oath to provide patients lifesaving care by deceitfully diagnosing cancer. He subsequently prescribed toxic treatments to hundreds of individuals who suffered catastrophic harm and loss which will impact them and their families for decades”, said David P. Gelios, Special Agent in Charge, Detroit Division of the Federal Bureau of Investigation. “I am so proud of the men and women of the Detroit FBI, Health and Human Services Office of the Inspector General, Department of Justice Medicare Fraud Strike Force and the U. S. Attorney’s Office for their recognition by Attorney General Lynch for the work they did to bring an end to this chapter of outrageous medical malpractice. While this case shocked the nation’s conscience, it is important for the public to know the FBI and our partners will remain vigilant in keeping the people of the state of Michigan safe from unethical health care providers.”
Two Nashville Men Plead Guilty to Gun and Drug CrimesRead the Press Release
George Ivory aka GI, 27, and Anthony Laquesha Coleman aka Scrappy, 30, both of Nashville, Tenn., pleaded guilty today to gun and drug offenses which they committed in the area of 16th Avenue North and Buchanan Street in North Nashville, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
George Ivory admitted that he was selling crack cocaine in that area on May 1, 2015, when he and another drug dealer got into a verbal dispute about who could sell drugs in that area. During that argument, a 62-year-old man tried to buy about $60 of crack cocaine from the other drug dealer. Ivory demanded that the man buy crack from him instead, but the man declined. Ivory then struck that man and his female companion with a gun and demanded the man’s money. Ivory then shot the man three times, with at least one shot striking him in the head. Ivory then fled the area and threw the firearm into the Cumberland River. The victim survived, but was blinded and suffers from other serious long term health effects.
Ivory was later arrested and charged federally with committing a robbery affecting interstate commerce, discharging a firearm during a violent or drug related felony, possessing ammunition as a felon, and possession of cocaine with intent to distribute. Ivory’s previous felony convictions include two state convictions in 2010 for facilitation of second degree murder and sexual battery without consent. Ivory has entered into a plea agreement which calls for a sentence of 25 years in prison. There is no parole from federal sentences.
An investigation into Ivory’s conduct led to federal charges against Anthony Laquesha Coleman aka Scrappy. Coleman pleaded guilty to being a felon in possession of a firearm and possession of cocaine with intent to distribute. According to the statement of facts, Coleman was selling crack cocaine near a residence located in the 16th Avenue North and Buchanan Street area of Nashville on March 23, 2015. The person who lived in that home asked Coleman not to sell drugs around her house. Coleman began arguing with that woman and one of her female friends. Coleman then obtained a loaded pistol from one of his friends and continued threatening the women. He eventually went into a rooming house across the street. One of the women called police for assistance and reported that children were in the area during this incident. Metro Nashville police officers responded and arrested Coleman, who had attempted to discard the gun and drugs.
Coleman has also entered into a plea agreement which calls for a sentence of 20 years in prison, since Coleman’s prior felony convictions make him a Career Offender under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. The case is being prosecuted by Assistant United States Attorneys Sunny A.M. Koshy and Ahmed Safeeullah.
Two Arrested for Committing $295,000 Armed Bank RobberyRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Ricardo Rodriguez, Jr. (24) and Brandon Mojica (23), both of Deltona, with armed bank robbery. If convicted, each faces a maximum penalty of 25 years in federal prison.
According to the
complaint , on the morning of November 8, 2016, Rodriguez displayed a firearm and forced two bank employees, including Mojica, to provide access to the safe of a bank in Lake Mary, Florida. Rodriguez took approximately $295,000 from the safe and physically restrained both employees before fleeing the bank. Responding officers from the Lake Mary Police Department quickly located, pursued, and apprehended Rodriguez. They also recovered the cash that Rodriguez had stolen from the bank and the firearm used during the robbery. Further investigation revealed that Mojica had assisted Rodriguez in planning the robbery by providing information concerning the bank and its employees in advance.Rodriguez and Mojica made their initial appearances in federal court yesterday. Following a detention hearing, Rodriguez was ordered detained pending further proceedings. Mojica was ordered temporarily detained until his formal detention hearing, which has been scheduled for November 17, 2016.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Lake Mary Police Department and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Emily C.L. Chang.
Three Individuals in District of New Jersey Receive Attorney General AwardsRead the Press Release
NEWARK, N.J. – Attorney General Loretta E. Lynch recognized 376 department employees for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony. Forty-seven other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
In the District of New Jersey, three individuals – Counsel to the U.S. Attorney John M. Fietkiewicz and Assistant U.S. Attorneys Dennis C. Carletta and Peter W. Gaeta – were honored with awards.
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” Attorney General Lynch said. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
“I’m enormously proud of the three attorneys from our office who are being honored with these awards,” U.S. Attorney Paul J. Fishman, District of New Jersey, said. “John, Dennis and Peter exemplify the outstanding professionalism and commitment to justice we strive for every day. These awards honor them, but also all of the men and women in our office, who work so hard every day on behalf of the people of New Jersey and across the country.”
In the District of New Jersey, the following individuals were recognized for the following awards:
The Claudia J. Flynn Award for Professional Responsibility recognizes a department attorney who has made significant contributions in the area of professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that department attorneys carry out their duties in accordance with the rules of professional conduct.
Fietkiewicz is recognized for his sustained, outstanding leadership and invaluable contributions to ensure that department prosecutors carry out their duties in compliance with the highest ethical standards. With superior dedication and effort, he has gone to extraordinary lengths to advise and train innumerable department prosecutors, providing the tools and resources necessary to perform their work in the most ethical and professional way possible. With his considerable experience and exceptional judgment, he is leading the district in successfully addressing the overlap between the legal and ethical duty of disclosure, one of the most important professional responsibility issues facing federal prosecutors in decades. His unfailing commitment to upholding and inspiring others to the highest standards of professionalism has been a model to his peers within and outside the department. He worked closely with Claudia Flynn during her service at the department, and he embodies the integrity, professionalism and strength of character that marked Flynn’s life and work.
The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice.
The award recognizes, from the U.S. Attorney’s Office of the District of New Jersey, Assistant U.S. Attorneys Carletta and Gaeta.
In December 2011, the FBI opened a five-year investigation into ABN Universal Inc. Early investigative techniques revealed the U.S.-based owner and operator of ABN was Alexander Brazhnikov. Through an exhaustive use of human sources, video surveillance, forensic reconstruction, grand jury subpoenas, search warrants, Title III surveillance of emails and computer analysis, the investigation revealed that ABN was procuring dual-use microelectronics from U.S.-based manufacturers on behalf of Russian companies directly associated with the Russian military and intelligence services. Moreover, employees of ABN were devaluing the price of exported products to Russia and using front company addresses in Moscow, an offshore virtual private network and an international network of shell companies to conceal the intended end-users from U.S. law enforcement. The investigative team worked diligently to overcome each of these obfuscation techniques to ultimately reveal the totality of Brazhnikov’s criminal offenses. As a result of the investigation, in June 2014, an arrest warrant for Brazhnikov was issued for his illegal smuggling of export controlled U.S.-sourced goods to Russia and for conducting $65 million in money laundering. In June 2015, Brazhnikov pleaded guilty to conspiracy to smuggle goods from the U.S., conspiracy to commit money laundering and conspiracy to violate the International Emergency Economic Powers Act. Brazhnikov also admitted to smuggling microelectronics to Russian defense contractors known to supply the Russian military and intelligence services, to include two Russian nuclear warhead design institutes. As a result of his guilty plea, the District Court of New Jersey issued a money judgment against Brazhnikov for $65 million.
Three Individuals Found Guilty of Violating the Rico Act, Drug Trafficking and MurderRead the Press Release
SAN JUAN, Puerto Rico – Yesterday evening, after a 17-day trial, a jury found three members of the violent drug trafficking organization known as La Rompe ONU guilty of drug trafficking and murder charges. Namely, the jury found defendants Rubén Cotto-Andino, a.k.a. “Rubén El Negro”, José D. Resto-Figueroa, a.k.a. “Tego”, and Carlos Velázquez-Fontánez guilty of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), conspiracy to possess with intent to distribute controlled substances, carrying firearms during and in relation to a drug trafficking offense, drive-by shooting murders and related firearm offenses, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Jay García Gregory presided over the trial.
Rubén Cotto-Andino was a leader of La Rompe ONU and oversaw the organization’s drug trafficking activities at the Jardines de Cupey and Brisas de Cupey Public Housing Projects. Jose Resto Figueroa, an enforcer for the organization, was found guilty of participating in a drive-by shooting that occurred on August 28, 2012, in which enforcers of La Rompe ONU shot and killed Luis Ojeda-Andino, a.k.a. “Pollo,” Luis Velázquez-Aquino, a.k.a. “Urraca,” and José Ayala-García. These murders are known as the “Jardines de Cupey Massacre.”
Carlos Velázquez-Fontánez, a San Juan Municipal Police Agent, who supplied members of La Rompe ONU with ammunition and engaged in drug trafficking, was also found guilty of a drive-by shooting murder. Namely, he participated in a drive-by shooting on June 25, 2011, during which enforcers of La Rompe ONU shot and killed Edwin Díaz-Cruz, Hervin Valcarcel-Martínez, a.k.a. “Prieto,” Javier Catala-Bermúdez, and Orlando Meléndez-Villegas. These murders are known as the “Tortuguero Massacre.”
During trial, the government presented the testimony of cooperating witnesses, law enforcement officials, forensic science technicians, experts and physical evidence such as firearms, ammunition, and narcotics seized, which proved that the defendants were guilty beyond a reasonable doubt.
“The Rompe ONU gang ruled certain neighborhoods in San Juan, spreading violence and fear in their communities,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “This extensive investigation has taken dangerous Rompe ONU leaders, members and associates off the streets and put them in prison, where they belong. Violent street gangs should take note, and know that we are determined to break their grip on our communities, and that they will face justice for their crimes.”
Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández were in charge of the prosecution of the case. The defendants face sentences of up to life imprisonment.
Tennessee Couple Indicted for Veteran’s Unemployment Compensation Fraud and Money LaunderingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Tennessee couple were indicted by a federal grand jury on November 9, 2016, for fraudulently obtaining $98,165 in veterans’ unemployment compensation benefits.
According to United States Attorney Bruce D. Brandler, Earl Lafayete Hall, III, age 35, and his wife, Renita Blunt, age 31, both of Arlington, Tennessee, are charged in a second superseding indictment with mail fraud, money laundering, aggravated identity theft, and conspiracy to commit mail fraud.
According to the second superseding indictment, with Blunt’s assistance, Hall allegedly applied for veteran’s unemployment compensation benefits in three states under the false name and identity of 11 individuals (ten men and one women) between January 2013 and March 2015. One claim was submitted to the Hawaii Department of Labor and Industrial Relations, three claims were submitted to the Utah Department of Workforce Services, and seven claims were submitted to the Pennsylvania Department of Labor and Industry.
Hall and Blunt allegedly received the benefits under the Unemployment Compensation for Ex-Service Members Program, commonly known as “The UCX Program,” a federally-funded U.S. Department of Labor program administered by the individual states. Under this federal-state partnership, the states pay out unemployment insurance benefits to the veterans and are subsequently reimbursed by the various branches of the military. Benefits are based upon the military wages and pay grade of the serviceman at the time of his or her separation from military service.
Hall and Blunt were previously indicted by a Middle District of Pennsylvania grand jury on June 22, 2016. Today’s second superseding indictment adds Blunt as a defendant on the ten money laundering counts, adds a count of conspiracy to commit money laundering against both defendants, and alleges the three false Utah claims for UCX benefits, which paid out approximately $10,000 in benefits, were also part of the mail fraud scheme. No date has yet been scheduled for the defendants’ arraignment on the new charges.
The investigation is being conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, U.S. Defense Criminal Investigative Service, U.S. Postal Inspection Service with assistance from Pennsylvania Department of Labor and Industry, Internal Audits Division, Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of the Treasury, Office of Unemployment Compensation Disbursements. The case is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tax Defier and Member of Freedom Law School Sentenced to Prison for Tax EvasionRead the Press Release
Used Warehouse Bank, Prepaid Debit Cards, Cashier’s Checks, and Postal Money Orders to Conceal Income and Assets From IRS
A Point Richmond, California man was sentenced to serve 33 months in prison yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Brian J. Stretch of the Northern District of California.
In June, Richard Thomas Grant, 63, was found guilty of three counts of tax evasion following a jury trial in Oakland, California. In 2001, Grant stopped filing individual income tax returns and paying income taxes despite the fact that he received significant income as a partner with Grant Engineering & Manufacturing, an engineering company in Richmond. In 2003, Grant stopped filing annual partnership returns for Grant Engineering, even though he continued to pay a CPA to prepare these returns. That same year, Grant became a member of Freedom Law School and paid thousands of dollars in yearly membership fees. While the Internal Revenue Service (IRS) attempted to collect unpaid taxes owed by Grant for 2001 and 2002, and attempted to examine Grant’s taxes for subsequent years, Grant, with the assistance of Freedom Law School and its founder, Peymon Mottahedeh, attempted to frustrate the IRS’s actions by, among other things, filing multiple and ultimately unsuccessful law suits in various jurisdictions.
For the charged years 2005 through 2009, Grant’s partnership income was $509,339, $566,741, $486,062, $598,977 and $604,706, respectively.
In an effort to conceal his assets and income, in 2005, Grant significantly curbed the use of his checking accounts and began depositing his partnership distributions at a warehouse bank known as MyICIS in Berryville, Arkansas. Warehouse banks can be used to conceal ownership of funds in part by commingling such funds with those of other individuals. Between April 2005 and October 2006, Grant wrote hundreds of checks drawn on the MyICIS account and funded multiple prepaid debit cards. Grant used the checks and debit cards to pay his mortgage and other personal expenses.
After the federal government shut down MyICIS, Grant used another bank to convert his partnership distributions to cashier’s checks and cash in order to avoid depositing the funds into a bank account and used the cashier’s checks to pay his mortgage and other high-dollar personal expenses. He also used cash to purchase dozens of U.S. Postal money orders to pay other bills and expenses, including utilities, taxes and expenses related to his classic aircraft.
In addition to the term of prison imposed, Grant was also ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $402,457.39.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Stretch commended agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew Kluge of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tax Defier and Member of Freedom Law School Sentenced to Thirty-Three Months’ Imprisonment for Tax EvasionRead the Press Release
Oakland – A resident of Point Richmond, Calif. was sentenced late yesterday to serve 33 months in prison for tax evasion, announced U.S. Attorney Brian J. Stretch, Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and Special Agent in Charge of Internal Revenue Service-Criminal Investigation (IRS-CI) Michael T. Batdorf.
In June, Richard Thomas Grant, 63, was found guilty of three counts of tax evasion following a jury trial in Oakland, California.
According to evidence presented at trial, in 2001, Grant stopped filing individual income tax returns and paying income taxes despite the fact that he received significant income as a partner with Grant Engineering & Manufacturing, an engineering company in Richmond. In 2003, Grant stopped filing annual partnership returns for Grant Engineering, even though he continued to pay a CPA to prepare these returns. That same year, Grant became a member of Freedom Law School, and paid thousands of dollars in yearly membership fees. While the IRS attempted to collect unpaid taxes owed by Grant for 2001 and 2002, and attempted to examine Grant’s taxes for subsequent years, Grant, with the assistance of Freedom Law School, attempted to frustrate the IRS’s actions by, among other things, filing multiple law suits in various jurisdictions. These lawsuits were unsuccessful.
For the charged years 2005 through 2009, Grant’s partnership income was $509,339, $566,741, $486,062, $598,977, and $604,706, respectively.
In an effort to conceal his assets and income, in 2005, Grant significantly curbed the use of his checking accounts and began depositing his partnership distributions at a warehouse bank known as MyICIS in Berryville, Arkansas. Warehouse banks can be used to conceal ownership of funds in part by commingling such funds with those of other individuals. Between April 2005 and October 2006, Grant wrote hundreds of checks drawn on the MyICIS account and funded multiple prepaid debit cards. Grant used the checks and debit cards to pay his mortgage and other personal expenses.
After the federal government shut down MyICIS, Grant used another bank to convert his partnership distributions to cashier’s checks and cash in order to avoid depositing the funds into a bank account and used the cashier’s checks to pay his mortgage and other high-dollar personal expenses. He also used cash to purchase dozens of U.S. Postal money orders to pay other bills and expenses, including utilities, taxes, and expenses related to his classic aircraft.
“Mr. Grant spent years trying to devise and implement ways to avoid paying his taxes,” said U.S. Attorney Stretch. “In the end, his violations of the law equated to three years in jail and substantial monetary penalties. Similar results await those who cheat on their taxes.”
“This was not a case about someone who simply fell behind in a good faith effort to keep up with their taxes, rather someone who earned millions of dollars and paid no taxes,” said Special Agent in Charge Michael T. Batdorf. “Mr. Grant moved his funds out of the traditional banking system which enabled him conceal ownership and hide his income. Today’s sentencing sends a message that those who intentionally undermine our tax system will not go undetected and will be held accountable.”
In addition to the term of prison imposed, Grant was also ordered to serve three years of supervised release, as well as pay restitution to the IRS in the amount of $402,457.39, costs of prosecution of $4,400.90, and a fine of $7,500. Grant was ordered to appear to begin serving his sentence on January 9, 2016,
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Stretch commended agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Colin Sampson, and Trial Attorney Matthew Kluge of the Tax Division, who prosecuted the case.
Tampa Man Sentenced to More Than Six Years for Credit Card Fraud and Identity TheftRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Alberto Yuniel Garcia (31, Tampa) to six years and two months in federal prison for engaging in the manufacture and use of counterfeit credit cards and identity theft. He pleaded guilty on July 7, 2016.
According to court documents, from as early as 2013, and continuing through 2015, Garcia and others possessed and used counterfeit credit cards to purchase items, including gift cards, at retail stores throughout the Tampa Bay area. They obtained stolen credit and debit card numbers from unsuspecting account holders in a variety of ways, including from skimmers placed on gas station pumps. They then re-encoded gift cards with the stolen account numbers in order to create counterfeit credit cards, which they used to purchase merchandise and gift cards that they used for their own benefit or sold for cash. Garcia and those working with him used the stolen account numbers without the account holders’ knowledge or permission and shared in the proceeds of the fraud and identity theft.
On February 19, 2014, law enforcement officers removed four skimmers from gas pumps at a Hess Station in Brooksville. Members of the U.S. Secret Service’s Financial Investigation Strike Team determined that the Hess Station was a common point of compromise for credit card fraud victims. Once investigators obtained store surveillance videos and receipts for the fraudulent transactions, they discovered that Garcia and his co-conspirators were the individuals using the counterfeit credit cards that had been re-encoded with the stolen account information skimmed from customers at the Hess Station.
During yesterday’s sentencing hearing, the Court found that Garcia was involved in various conspiracies to commit credit card fraud and identity theft that affected more than 35 financial institutions and over 1,000 victims. The government estimates the actual loss to individuals as a result of these conspiracies was over $700,000.
This case was investigated by the Tampa Police Department, the United States Secret Service, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Eric Gerard.
Statement of U.S. Attorney Preet Bharara on the Presentment of Ahmad Khan Rahami on Terrorism Charges in Manhattan Federal CourtRead the Press Release
“Ahmad Khan Rahami, the alleged Chelsea bomber, was brought today to Manhattan to face terrorism charges. Allegedly driven by a commitment to violent jihad, Rahami planted bombs in the heart of Manhattan and in New Jersey. One of the bombs exploded on a Saturday evening in Chelsea, injuring over 30 people and shattering windows hundreds of yards away. For his alleged acts of terror, Rahami will now face justice in a federal courthouse just blocks south of where he allegedly planted his bombs. Rahami will be presented on his federal terrorism charges today in the Southern District of New York before United States Magistrate Judge Sarah Netburn.”
Statement from U.S. Attorney Regarding Fox School DistrictRead the Press Release
The United States Attorney’s Office has closed its investigation into certain spending issues regarding the Fox School District and former Fox Superintendent Dianne Critchlow. The investigation was triggered by a report issued by the Missouri State Auditor in May of this year. The investigation has concluded with the finding that there is no basis for criminal charges. The School District has been notified.