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19 December 2016
Owner of Two Recycling Businesses Arrested in Multi-Million Dollar Fraud Scheme Involving Landfilling and Re-Selling of Potentially Hazardous Electronic WasteRead the Press Release
CHICAGO — The owner of two recycling businesses was arrested today for allegedly operating a multi-million dollar fraud scheme involving the illegal landfilling or re-selling of potentially hazardous electronic waste.
BRIAN BRUNDAGE, the former owner of Intercon Solutions Inc. and the current owner of EnviroGreen Processing LLC, caused thousands of tons of e-waste and other potentially hazardous materials to be landfilled, re-sold to customers who shipped the materials overseas, or stockpiled, according to an indictment returned in U.S. District Court in Chicago. Brundage fraudulently misrepresented to his customers that the materials had been disassembled and recycled in an environmentally sound manner, the indictment states.
The indictment was returned earlier this month and ordered unsealed after Brundage's arrest this morning. The indictment charges Brundage, 45, of Dyer, Ind., with five counts of income tax evasion, four counts of mail fraud and two counts of wire fraud. He is scheduled to make an initial appearance at 3:00 p.m. today before U.S. Magistrate Judge M. David Weisman in Chicago.
The indictment seeks forfeiture of $10 million in cash.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John K. Gauthier, Acting Special Agent-in-Charge the U.S. Environmental Protection Agency’s Criminal Investigation Division in Chicago; James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division; James M. Gibbons, Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Carol Fortine Ochoa, Inspector General of the U.S. General Services Administration.
According to the indictment, several private companies and governmental entities hired Chicago Heights-based Intercon and Gary, Ind.-based EnviroGreen for the disassembly, recycling or destruction of e-waste and other materials. The customer agreements stipulated that Intercon and EnviroGreen would handle all materials in an environmentally sound manner, without landfilling or exporting, and without reselling the materials in whole form. Intercon specifically represented that it engaged in “absolutely no reselling, no remarketing, no landfilling, no incineration, and no exportation,” the indictment states.
Unbeknownst to their customers, Intercon and EnviroGreen for more than a decade knowingly sold the e-waste and other materials, including potentially hazardous glass and batteries, to vendors whom Brundage knew would ship the materials overseas. Some of the materials contained Cathode Ray Tubes, which are the glass video display components of certain electronic devices, such as computer and television monitors, and which contain potentially hazardous amounts of lead, according to the indictment. The indictment further alleges that Brundage caused multiple tons of CRT glass and other potentially hazardous materials to be destroyed in environmentally unsafe ways and later landfilled, all in direct contravention to Intercon’s public representations regarding its recycling practices.
At one point in 2011, Intercon was publicly accused of shipping potentially hazardous materials to Hong Kong. In response, Brundage began a fraudulent effort to publicly deny and conceal Intercon’s involvement in the shipment, the indictment states. Brundage destroyed business records related to the shipment and made efforts to conceal other overseas shipments of large quantities of e-waste, according to the indictment. The fraud scheme continued for another five years, the indictment states.
The tax charges relate to Brundage’s efforts to evade paying thousands of dollars in income taxes during the scheme, according to the indictment. Brundage often caused Intercon to pay his own personal expenses, including wages for his nanny and payments to the Horseshoe Casino in Hammond, Ind., while later deducting the expenditures as business expenses on Intercon’s corporate tax returns, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of income tax evasion is punishable by up to five years in prison. The wire fraud and mail fraud counts each carry a maximum sentence of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Sean J.B. Franzblau and Special Assistant U.S. Attorney Crissy Pellegrin.
Owner of “A Child’s Point of View” Psychotherapy Practice Charged with Possession of Child PornographyRead the Press Release
OAKLAND - A federal grand jury in Oakland indicted psychologist Kenneth Breslin on December 15, 2016, with possession of child pornography, announced United States Attorney Brian J. Stretch and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
For many years, Breslin 68, of Lafayette, Calif., was the Director and Owner of “A Child’s Point of View,” an Orinda-based office that provided adolescent, adult, and family psychotherapy services. Breslin is currently prohibited from practicing psychology pursuant to a Contra Costa Superior Court order issued on November 28, 2016. Breslin was arrested at his residence on December 18, 2016, and made his initial appearance in federal court in San Francisco this morning. According to the indictment, Breslin is alleged to have knowingly possessed, and accessed with intent to view, child pornography. He was charged with one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B).
Breslin is currently being held in the custody of the United States Marshals Service. His next scheduled appearance is at 9:30 a.m. on December 21, 2016, for a detention hearing before the Honorable Jacqueline Scott Corley, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are 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. 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.
Investigators are asking anyone who has further information about the defendant or his activities that may be relevant to this case to call Homeland Security Investigations’ tip line at (866) 347-2423.
Assistant U.S. Attorneys Christina McCall and Erin Cornell are prosecuting the case with the assistance of Vanessa Quant, Trina Khadoo, and Michelle Alter Eck. The prosecution is the result of an investigation by HSI, the Silicon Valley Internet Crimes Against Children's Task Force, and the Contra Costa District Attorney’s Office.
Oilpro.Com Founder Pleads Guilty in Manhattan Federal Court to Hacking into Competitor’s Computer SystemRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DAVID W. KENT, the founder of professional networking website Oilpro.com (“Oilpro”), pled guilty this morning before U.S. District Judge Denise L. Cote in Manhattan federal court to a superseding Information, which charged him with one count of intentionally accessing a protected computer without authorization. The charge stemmed from KENT’s role in repeatedly hacking into a competitor’s database to steal customer information and attempting to sell Oilpro to the same company whose database KENT had hacked.
Manhattan U.S. Attorney Preet Bharara said: “David Kent has admitted to his role in hacking into a competitor’s network and stealing client data in order to boost the value of Oilpro, a company he founded. Kent then attempted to sell Oilpro to the very company he hacked. Using cyber hacking to gain advantage over a competitor is not only an unfair business practice, but is a federal crime for which Kent has now pled guilty.”
FBI Assistant Director William F. Sweeney said: "Today, David Kent pled guilty to intentionally accessing a protected computer without authorization. This is a stern reminder to others that unauthorized access to a computer is a federal crime with severe penalties; even just a quick look at the data on the computer can lead to a prison sentence and that never leads to a leg up in business.”
According to the superseding Information, the previously filed Complaint, and statements made at public court proceedings:
In or about March 2000, KENT founded a website (“Website-1”) that provides, among other things, networking services to professionals working in the oil and gas industry. Website-1 allows its members to create profiles, which includes personal and professional information. As part of their profiles, members can also upload their resumes. The profiles are contained in a database maintained by Website-1 (the “Members Database”). Members are assigned login credentials (i.e., usernames and passwords) when they create their profiles. Members use these login credentials to access their profiles.
In or around August 2010, KENT sold Website-1 for approximately $51 million to a publicly traded company headquartered in New York, NY (“Company-1”). KENT entered into an employment agreement with Company-1 and agreed to continue to serve as the president of Website-1 after the acquisition. However, KENT left Website-1 in September 2011 and launched Oilpro in October 2013. Like Website-1, Oilpro provides networking services to professionals working in the oil and gas industry. Oilpro is headquartered in Houston, Texas.
Between October 2013 and February 2016, KENT conspired to access information belonging to Website-1 without authorization and to defraud Company-1. KENT accessed the Website-1 Members Database without authorization and stole customer information, including information from over 700,000 customer accounts. KENT then exploited this information by inviting Website-1’s members to join Oilpro. Similarly, one of Kent’s employees at Oilpro who previously worked for Website-1 (“CC-1”) accessed information in Website-1’s Google Analytics account without authorization and forwarded the information to KENT. In the meantime, KENT attempted to defraud Company-1 by misrepresenting during discussions about a potential acquisition of Oilpro by Company-1 that Oilpro had increased its membership through standard marketing methods.
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KENT, 41, of Spring, Texas, was arrested on March 30, 2016. KENT pled guilty today to one count of intentionally accessing a protected computer without authorization, which carries a maximum penalty of five years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
KENT is scheduled to be sentenced by Judge Cote on March 17, 2017, at 2:00 p.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. Mr. Bharara also thanked the Office of International Affairs and the United Kingdom’s National Cyber Crime Unit (NCCU), and noted that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Sidhardha Kamaraju and Andrew K. Chan are in charge of the prosecution.
Ohio Insurance Salesman Convicted of Failure to File Income Tax Returns and Failure to Pay TaxesRead the Press Release
An insurance salesman and former resident of Parma, Ohio was convicted today following a five-day jury trial of fifteen counts of willful failure to pay income taxes and five counts of willful failure to file income tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division; U.S. Attorney Carole S. Rendon for the Northern District of Ohio; and Acting Special Agent in Charge Troy N. Stemen for the Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office.
According to the evidence presented at trial, John Christopher Raschella, 57, currently a resident of Estero, Florida, failed to pay more than $1 million in income taxes, interest and penalties that he owed to the IRS for 1995, 1996, and 1998 through 2012. During those years, Raschella sold insurance, and earned additional income working for other insurance salesmen.
Between 1989 and 2012, Raschella failed to timely file income tax returns to report his income to the IRS. For several years, Raschella filed delinquent income tax returns on which he reported that he owed taxes, but failed to make the required payments. For other years, the IRS assessed Raschella’s taxes and sent him letters notifying him of the amount owed, but Raschella still failed to pay. The government’s evidence also demonstrated that between 2010 and 2012, Raschella filed numerous false tax returns on which he, among other falsities, underreported his income and claimed deductions for alimony that he had not paid.
The evidence at trial established that Raschella used a series of nominee entities and individuals to prevent the IRS from collecting his unpaid taxes through liens on his assets and levies on his income or bank accounts. In 2001, Raschella attempted to assign his insurance commissions to American Financial, a company operated by Joseph Flickinger. Flickinger was sentenced to prison after pleading guilty for his role in promoting a tax fraud scheme. Raschella also paid Flickinger to prepare a false tax return for Raschella for the year 2000.
In 2003, Raschella formed two companies, Resource One, Corporation and Legacy Foundation International. Raschella deposited his insurance commissions into bank accounts in the name of these entities. Raschella also purchased, leased and registered vehicles in the names of both Resource One and Legacy Foundation. Raschella incorporated Resource One with the assistance of Carol Sing, who was sentenced to three years in prison in May 2015 after a jury convicted her of promoting a tax fraud scheme. Raschella organized Legacy Foundation with the help of Nancy Lloyd, who was enjoined in December 2005 from promoting abusive tax fraud schemes.
Raschella successfully assigned his insurance commission to Resource One in 2005, which resulted in the insurance company that he sold insurance for issuing a Form 1099-MISC to the company instead of to Raschella individually. The insurance company revoked the assignment after learning that Raschella had made false statements to a county government agency regarding the fact that Resource One was his company. Raschella also hired an individual in Texas who submitted a fraudulent levy release to the insurance company on his behalf. This document was created to appear as if it was issued by the IRS, when, in fact, it was sent by the individual in Texas. The fraudulent document resulted in the insurance company substantially reducing the amount of Raschella’s insurance commissions that it was paying over to the IRS in response to a levy.
“John Raschella willfully failed to pay more than $1 million in income taxes, interest and penalties,” said Principal Deputy Assistant Attorney General Ciraolo. “The jury’s verdict makes clear that dishonest taxpayers who fail to file returns and pay their fair share of taxes cannot escape responsibility for their illegal conduct.”
“While no one looks forward to paying taxes, it is our obligation as citizens,” said U.S. Attorney Rendon. “The jury found this defendant willingly and fraudulently shirked his responsibility.”
“Convictions, like the one returned against Mr. Raschella today, send a clear message that those who willfully defy the tax laws will be fully investigated, prosecuted, and subjected to the full punishment of the law for their actions,” said Chief Richard Weber of IRS-Criminal Investigation. “The overarching principle of IRS’s enforcement strategy is to protect the integrity of the tax system by ensuring everyone pays the right amount of tax. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”
Raschella is the fourth insurance salesman to be convicted of tax crimes in the Northern District of Ohio in recent years. In October 2012, William A. Herder was sentenced to 37 months in prison after a jury convicted him of tax evasion, corruptly endeavoring to impair and impede the IRS, and willful failure to file tax returns. Herder’s son, William R. Herder was sentenced to 20 months in prison in January 2013 after pleading guilty to corruptly endeavoring to impair and impede the IRS and structuring currency transactions. William A. Herder’s brother-in-law, Thomas Mitchell, was sentenced to probation in 2012 after pleading guilty to willful failure to file a tax return. All four men utilized similar schemes to evade their responsibilities under the federal tax laws.
U.S. District Judge Dan Aaron Polster set sentencing for April 13, 2017. Raschella faces a statutory maximum sentence of one year in prison for each willful failure to pay and willful failure to file conviction. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Rendon and Acting Special Agent in Charge Stemen thanked agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division, who prosecuted the case. They also thanked Assistant U.S. Attorney Robert J. Patton of the Northern District of Ohio who provided substantial assistance in this prosecution.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
North Carolina Woman Indicted for Conspiracy to Defraud the IRS, Assisting in the Preparation of False Tax Returns, Wire Fraud and Aggravated Identity TheftRead the Press Release
A federal grand jury sitting in Greensboro, North Carolina, returned an indictment today charging Jessica Shanice Taylor, a Rockingham, North Carolina resident, with conspiracy to defraud the Internal Revenue Service (IRS), assisting in the preparation of false tax returns, wire fraud and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
According to the indictment, from at least January 2012 through April 2016, Taylor worked in a tax preparation business in Rockingham, preparing and filing income tax returns. The indictment alleges that Taylor conspired with the owner of the business and others to prepare and file fraudulent federal income tax returns that included false business income and losses, false wages, false dependents and false deductions. The indictment further alleges that Taylor and her co-conspirators purchased, and sometimes stole, the personal identifying information of individuals, including minor children, and listed these individuals as false dependents on returns in order to generate larger fraudulent refunds for her clients. According to the indictment, Taylor and her co-conspirators directed some of their clients’ refunds into their own bank accounts.
If convicted, Taylor faces a statutory maximum sentence of 5 years in prison for conspiring to defraud the IRS, a maximum sentence of 3 years in prison for each count of assisting in the preparation of false tax returns, a maximum sentence of 20 years in prison for each count of wire fraud, and a mandatory sentence of two years in prison for each count of aggravated identity theft. In addition, Taylor faces a term of supervised release, restitution and monetary penalties.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kathryn A. Kimball of the Tax Division and Assistant U.S. Attorney Clifton Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Woman Indicted for Conspiracy to Defraud the IRS, Assisting in the Preparation of False Tax Returns, Wire Fraud and Aggravated Identity TheftRead the Press Release
WASHINGTON – A federal grand jury sitting in Greensboro, North Carolina, returned an indictment today charging Jessica Shanice Taylor, a Rockingham, North Carolina resident, with conspiracy to defraud the Internal Revenue Service (IRS), assisting in the preparation of false tax returns, wire fraud and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
According to the indictment, from at least January 2012 through April 2016, Taylor worked in a tax preparation business in Rockingham, preparing and filing income tax returns. The indictment alleges that Taylor conspired with the owner of the business and others to prepare and file fraudulent federal income tax returns that included false business income and losses, false wages, false dependents and false deductions. The indictment further alleges that Taylor and her co-conspirators purchased, and sometimes stole, the personal identifying information of individuals, including minor children, and listed these individuals as false dependents on returns in order to generate larger fraudulent refunds for her clients. According to the indictment, Taylor and her co-conspirators directed some of their clients’ refunds into their own bank accounts.
If convicted, Taylor faces a statutory maximum sentence of 5 years in prison for conspiring to defraud the IRS, a maximum sentence of 3 years in prison for each count of assisting in the preparation of false tax returns, a maximum sentence of 20 years in prison for each count of wire fraud, and a mandatory sentence of two years in prison for each count of aggravated identity theft. In addition, Taylor faces a term of supervised release, restitution and monetary penalties.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kathryn A. Kimball of the Tax Division and Assistant U.S. Attorney Clifton Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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North Carolina Owner of Tax Preparation Business Pleads Guilty to Conspiracy to Defraud the IRSRead the Press Release
A North Carolina man, who owned a tax preparation business in Rockingham, North Carolina, pleaded guilty today in the U.S. District Court for the Middle District of North Carolina to one count of conspiracy to defraud the Internal Revenue Service (IRS) and two counts of assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
According to documents filed with the court, from at least January 2012 through April 2016, Herbert Lee Martin, 53, of Rockingham, North Carolina, owned and operated a tax preparation business known as “Herb’s Helping Hands,” where he prepared and filed false electronic federal income tax returns that claimed fraudulent refunds for clients. Martin also taught his three nieces how to prepare false tax returns and supervised their preparation of these returns. Martin and his co-conspirators reported fictitious or inflated income and dependency exemptions to generate false or inflated Earned Income Tax Credits, false business income and losses, and false deductions. On occasion, Martin and his co-conspirators purchased, and sometimes stole, personal identifying information of individuals, including minor children, and listed these individuals as false dependents on returns to generate larger fraudulent refunds for their clients. Martin would, on occasion, direct some of the clients’ refunds into his own bank account or a bank account he controlled.
Chief U.S. District Judge William L. Osteen, Jr., set sentencing for May 12, 2017. Pursuant to the terms of his plea agreement, Martin will be sentenced to 132 months in prison and ordered to pay restitution to the IRS of at least $10,705,968.00. He also faces a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kathryn A. Kimball of the Tax Division and Assistant U.S. Attorney Clifton Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Sentenced to Lengthy Prison Term for Selling Unsafe Dietary Supplements OnlineRead the Press Release
ATLANTA - Chenhsin Chan, a/k/a Paul Chan, 44, of Elmhurst, N.Y., was sentenced to a prison term of 11 years, 3 months late Friday in connection with his online marketing and sale of dietary supplements containing ephedrine notwithstanding a federal ban. Chan was found guilty of 30 felony counts following a three-day jury trial in May 2016.
"Today’s sentence reflects the serious implications of distributing substances like ephedrine on the Internet. Not only was he selling unsafe products, but he was marketing them online with false and misleading statements about their legality and efficacy,” said United States Attorney John Horn. “We urge members of the public to do their homework before purchasing dietary supplements from any source, especially online."
"Distributing unlawful, adulterated dietary supplements fraudulently marketed and sold as ‘legal’ products place the U.S. public health at risk," said Justin Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. "We will remain vigilant in our efforts to protect American consumers from these fraudulent and potentially dangerous products."
According to United States Attorney Horn, the charges, and other information presented in court: Paul Chan owned and operated The Wholesale Source, LLC, a company that marketed and sold dietary supplements, primarily through affiliated websites including www.thatswholesale.com and www.ephedrawholesale.com. From at least July 2005 through August 2012, Chan marketed and sold dietary supplements that contained ephedrine alkaloids on his websites. In April 2004, the FDA published a final rule declaring dietary supplements containing ephedrine alkaloids to be adulterated because they present an unreasonable risk of illness or injury. Chan was warned by FDA investigators and others that it was illegal to sell dietary supplements containing ephedrine alkaloids, but he continued to do so.
Chan’s websites made materially false and misleading claims concerning the use of ephedrine, such as that ephedrine has been approved by the FDA for treatment of any disease, and that ephedrine has “never been illegal.” The jury found that these false and misleading claims were designed to lure customers into believing that it was legal to purchase adulterated dietary supplements containing ephedrine, when it was not. Chan sold over $4.5 million in dietary supplements with ephedrine alkaloids, including to customers in the Northern District of Georgia.
Chan was charged by a federal grand jury on May 29, 2014, with ten counts of mail fraud, ten counts of introducing adulterated food (namely, dietary supplements containing ephedrine alkaloids) into interstate commerce, five counts of knowingly distributing a listed chemical (namely, ephedrine) without obtaining the required registration, and five counts of money laundering. The jury rendered a guilty verdict on all thirty counts of the indictment.
United States District Judge Orinda D. Evans sentenced Chan late Friday to serve 11 years, 3 months in prison, followed by three years of supervised release. Judge Evans also entered a final order forfeiting Chan’s assets, which the jury found Chan had purchased with proceeds from his crimes, including real property in New York that had been purchased for $950,000, a Mercedes Benz purchased for over $50,000, and a Lamborghini Gallardo purchased for approximately $117,000. The Court also forfeited over $666,000 in cash.
This case was investigated by the FDA’s Office of Criminal Investigations. The Drug Enforcement Agency provided valuable assistance.
Assistant United States Attorneys Steven D. Grimberg and Kelly K. Connors prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
New York Man Sentenced to 30 Years for Plot to Kill MuslimsRead the Press Release
Glendon Scott Crawford, 52, of Galway, New York, was sentenced today to 30 years in prison and lifetime supervised release, for plotting to kill Muslims with a weapon of mass destruction.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Richard S. Hartunian of the Northern District of New York and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Divison.
On Aug. 21, 2015, following a week-long trial, a jury voted to convict Crawford on all charges of a 3-count indictment: attempting to produce and use a radiological dispersal device, conspiracy to use a weapon of mass destruction and distributing information relating to weapons of mass destruction. He is the first person in the U.S to be found guilty of attempting to acquire and use a radiological dispersal device, in violation of the “dirty bomb” statute passed by Congress in 2004. Senior U.S. District Judge Gary L. Sharpe imposed today’s sentence.
"Glendon Scott Crawford is an extremist who planned to use a radiological dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation,” said Acting Assistant Attorney General McCord. “The National Security Division’s highest priority is counterterrorism, and we will continue to pursue justice against anyone who seeks to perpetrate attacks against Americans on our soil. I want to thank the many agents, analysts, and prosecutors who worked on this case and are responsible for this result.”
“This case shows both the dangers we face from extremist views, and our resolve to stop those who plan to act on those views. Crawford planned to kill Muslims on account of their religion and other people whose political and social beliefs he disagreed with, including government officials. Our Albany FBI Joint Terrorism Task Force prevented Crawford and his co-conspirator Eric Feight from carrying out their diabolical plan. Counter-terrorism is our highest priority, and we will continue to identify and hold accountable all those who seek to commit acts of terrorism within our borders,” said U.S. Attorney Richard S. Hartunian.
“Today’s sentencing is as much a victory for the community as it is for law enforcement. It is a powerful reminder of the strength and solidarity of our communities. When confronted with Crawford’s deadly intentions, concerned citizens came forward and alerted law enforcement of Crawford’s plans. While we enjoy today’s success, it is important that we continue in the diligent effort to identify and disrupt those who would go beyond hateful rhetoric to commit violent, criminal acts,” said Special Agent in Charge Andrew W. Vale.
The evidence presented at trial showed that in April 2012, Crawford approached local Jewish organizations seeking financial support for his plan to acquire a device to be used against people he described as being “enemies of Israel.” Crawford, a self-professed member of the Ku Klux Klan, drove from the Albany area to North Carolina to directly solicit funding for his plan from senior members of the Ku Klux Klan. Crawford was an industrial mechanic working in Schenectady, New York. His goal was to acquire and modify an industrial-grade x-ray radiation device and use it to cause death or injury by exposing people to lethal doses of ionizing radiation.
Crawford, with help from co-conspirator Eric J. Feight, took steps to design, acquire parts for, build and test a remote-control unit that would activate a radiation dispersal device from a distance. Evidence presented at trial showed that Crawford sought and eventually received a radiation dispersal device from people he believed were businessmen affiliated with the Ku Klux Klan, but were, actually, FBI Special Agents acting in an undercover capacity. Before providing the device to Crawford, FBI Agents had rendered it safe.
Feight, acting at Crawford’s direction, built and delivered a remote-control unit. Crawford wanted the lethal radiation device to be used against Muslim Americans, and he scouted mosques in Albany and Schenectady, New York, and an Islamic community center and school in Schenectady, as possible target locations. Other targets considered by Crawford included the White House and the New York Governor’s Mansion in Albany.
Feight pleaded guilty to providing material support to terrorists. Judge Sharpe sentenced him to a 97-month term of imprisonment, to be followed by 3 years of supervised release.
The case was investigated by the Albany FBI Joint Terrorism Task Force, which includes FBI Special Agents as well as members of the New York State Police, the U.S. Department of Homeland Security, the Albany Police Department, the Troy Police Department in New York and the New York City Police Department.
The case was prosecuted by Assistant U.S. Attorneys Stephen C. Green and Richard D. Belliss of the Northern District of New York, who represented the U.S. during trial, and Senior Trial Attorney Joseph Kaster of the National Security Division’s Counterterrorism Section, with support from the U.S. Department of Justice Criminal Division.
Naturalized U.S. Citizen from Bosnia Arrested on Charge of Fraudulently Obtaining CitizenshipRead the Press Release
Indictment alleges series of lies in naturalization process, including failure to disclose Serbian-militia service and murder charges during Bosnian Conflict
GRAND RAPIDS, MICHIGAN — Alexander KNEGINICH, 56, of Crown Point, Indiana, was arrested on December 19, 2016 near Kalamazoo, Michigan by special agents of Homeland Security Investigations (HSI), U.S. Immigration and Customs Enforcement, after being indicted on a felony charge of having fraudulently obtained U.S. citizenship after he emigrated from Bosnia-Herzegovina to the United States.
The indictment, which was returned by a grand jury for the Western District of Michigan on December 15, 2016, alleges that KNEGINICH told a series of lies to U.S. immigration authorities in the course of obtaining authority to enter the United States as a refugee, subsequently obtaining permanent-resident status, and ultimately obtaining U.S. citizenship. Specifically, the indictment asserts that, when he applied for refugee status, KNEGINICH falsely stated that his wife was an ethnic Croatian and that, because he is Serbian, they had to flee Bosnia to avoid the persecution experienced by persons in ethnically-mixed marriages; that KNEGINICH knowingly failed to disclose in both his refugee application and his permanent-resident application that he had served in Bosnian Serb military units during the Balkans Conflict of the early 1990’s; that KNEGINICH knowingly failed to disclose in those applications that he had been charged, jailed and tried in Bosnia for the 1994 murders of two Muslim civilians; and, finally, that KNEGINICH falsely stated in his naturalization application that he had never lied to U.S. immigration authorities to obtain immigration benefits.
The case is being jointly prosecuted by the U.S. Attorney’s Office and the Human Rights and Special Prosecutions Section (HRSP) of the Justice Department’s Criminal Division. “For persons who immigrate into the United States, citizenship is the brass ring,” stated U.S. Attorney Pat Miles, “and this Office will zealously pursue any case where that prized status appears to have been obtained through fraud and deceit.” “Cases where people lie about their past in order to cheat the nation’s immigration system are among HSI’s highest investigative priorities,” said Steve Francis, acting Special Agent-in-Charge of HSI Detroit. “As an agency, these cases take particular precedence when the individual’s past may include human-rights violations.”
If convicted, KNEGINICH faces up to ten years in federal prison. Conviction would also result in automatic revocation of KNEGINICH’s U.S. citizenship, and likely deportation and/or extradition back to Bosnia-Herzegovina. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
HSI investigated the case. It is being prosecuted by HRSP Trial Attorney Jamie Perry and Assistant U.S. Attorney Hagen W. Frank. The Criminal Division’s Office of International Affairs provided assistance in this matter.
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Mobile Man Sentenced for Possessing Drugs and FirearmsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that United States District Judge Kristi K. DuBose sentenced Kenneth Lebarron Williams, age 28, a resident of Mobile, Alabama, to serve 24 months in prison for his involvement in a conspiracy to distribute more than 50 pounds of high-grade marijuana. The evidence at the sentencing hearing established that Williams, as part of the conspiracy, possessed two loaded firearms and obstructed the administration of justice as officers investigated the case. Williams’ sentence included a 3-year term of supervised release. His sentence was imposed as a result of his guilty plea in September 2016.
This case was investigated by the Mobile County Sheriff’s Office Narcotics and Vice Unit, and prosecuted by Assistant United States Attorney Donna B. Dobbins with the United States Attorney’s Office for the Southern District of Alabama.
Mexican Citizen Sentenced for Possessing Firearm Connected to HomicideRead the Press Release
WICHITA, KAN. - A Mexican woman was sentenced Monday to time served for unlawful possession of a firearm connected to a homicide case in Salina, U.S. Attorney Tom Beall said. She will be placed in the custody of Immigration and Customs Enforcement for deportation.
Azucena Garcia-Ferniza, 22, spent about 15 months in jail. She pleaded guilty in U.S. District Court in Wichita to one count of possession of a firearm while unlawfully in the United States. In her plea, she admitted that on May 7, 2015, she unlawfully possessed a Glock .45 caliber pistol. Her visitor’s visa had expired in February 1998.
In July 2016, Garcia-Ferniza was sentenced in Saline County District Court to18 months on probation for attempting to hide the gun that killed 17-year-old Allie Saum. The gun belonged to her boyfriend, Macio D. Palacio, Jr. Saum was killed by gunfire when Palacio fired at a pickup he mistakenly believed was driven by rival gang members.
Palicio was convicted in Saline County District Court and sentenced to more than 50 years for the killing.
Beall commended Immigration and Customs Enforcement’s Enforcement and Removal Operations, the Salina Police Department, the Saline County Sherriff’s Office, the Saline County Attorney’s Office and Assistant U.S. Attorney Brent Anderson for their work on the case.
Mentally Defective South Burlington Man Charged with Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on December 15, 2016, at the intersection of Shelburne Road and Prospect Parkway, federal and local law enforcement authorities arrested a twenty-year-old South Burlington man, Randy McEntee, for the unlawful possession of a 9 mm pistol and related ammunition. McEntee, who has been diagnosed with significant mental health and developmental issues, has been under the legal guardianship of his mother, also of South Burlington, since May 2014, and is therefore prohibited by federal law from possessing any firearms or ammunition.
Later on December 15, the defendant appeared in District Court in Burlington before Magistrate Judge John M. Conroy and entered a plea of not guilty to the federal complaint charging him with the unlawful possession of a firearm and ammunition by a mentally defective person. On December 19, following a hearing, Magistrate Judge Conroy ordered the defendant detained.
According to the criminal complaint, law enforcement became aware of McEntee after a series of threats and online activity was reported. Thereafter, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives commenced an investigation that includes the preservation of several Facebook posts and photographs wherein McEntee documented his enjoyment of handguns and shooting.
On December 15, agents from ATF observed McEntee ride his bicycle from his home on Farrell Street to Shelburne Road. With the assistance of members of the South Burlington Police Department, law enforcement detained McEntee, and ultimately recovered a loaded Hi-Point pistol, 9 millimeter Luger, from inside McEntee’s pants pocket.
Immediately following the defendant’s arrest, federal ATF agents executed a search warrant on the defendant’s home that he shares with his mother and legal custodian. Inside the home, fifty rounds of 9 mm ammunition were recovered from what is believed to be his mother’s bedroom, one loose 9 mm round was recovered from what is believed to be McEntee’s bedroom, and thirty-two rounds of 9 mm ammunition and a Hi-Point firearm box were recovered from a drawer in what is believed to be McEntee’s bedroom.
If convicted, McEntee faces up to ten years of imprisonment. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the complaint are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
The United States is represented in this matter by Assistant U.S. Attorney Abigail Averbach. Randy McEntee is represented by the Office of the Federal Public Defender. The case is currently under investigation by federal ATF agents.
Medical Imaging Provider Charged with Federal Health Care FraudRead the Press Release
TOPEKA, KAN. - A man who owned a medical imaging business was charged in federal court here today with collecting more than $1.5 million from a health care fraud scheme, U.S. Attorney Tom Beall said.
Cody Lee West, 38, Paragould, Ark., owner of C & S Imaging, Inc., was charged with one count of health care fraud. C & S Imaging was a mobile independent diagnostic testing facility that provided ultra sound diagnostic testing to health care providers.
West solicited chiropractors and told them he could provide equipment and an operator at no cost to them. West fraudulently billed Medicare for musculoskeletal exams and Doppler scans that allowed him to receive up to $410 per patient for services that were not ordered by a physician, not medically necessary, not performed or not documented. He also used fraudulent methods to attempt to provide documentation for some of his bills.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Department of Health and Human Services and the Kansas Attorney General’s Medicaid Fraud Division investigated. Assistant U.S. Attorney Tanya Treadway is prosecuting.
McAllen Man Sent to Federal Prison for Brokering Cocaine Transaction in ChicagoRead the Press Release
McALLEN, Texas – A 37-year-old McAllen man has been sentenced following his conviction of conspiracy to possess with intent to distribute cocaine and being unlawfully present in the country, announced U.S. Attorney Kenneth Magidson. Levi Galvan-Galvan pleaded guilty Sept. 12, 2016.
Today, U.S. District Judge Ricardo Hinojosa sentenced Galvan-Galvan to 60 months in prison for both offenses. In handing down the sentence, the court took into consideration Galvan-Galvan’s role in coordinating a drug transaction between co-conspirators and that he committed the offense after a prior conviction for possession of drugs in 2009. As an illegal alien, Galvan-Galvan is expected to face deportation proceedings following his release from prison.
Galvan-Galvan admitted to brokering a one kilogram cocaine transaction between a supplier in Mexico and a distributor in Chicago, Illinois. On Oct. 21, 2015, Galvan-Galvan coordinated the delivery of cocaine from a supplier in Mexico to a buyer in Chicago from his residence in McAllen by phone. Once delivered to the buyer in Chicago, law enforcement was able to seize the cocaine and arrest the buyer and two others. Galvan-Galvan was to receive payment via Western Union from the buyer in Chicago.
The illegal transaction not only led to this sentencing, but also the arrest and prosecution of three individuals in the Northern District of Illinois.
Galvan-Galvan will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation known as Operation Red-Eye. Assistant U.S. Attorneys Juan F. Alanis is prosecuting the case.
Maryville Sex Offender Sentenced to 19 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Maryville, Mo., man who is a registered sex offender was sentenced in federal court today on charges related to child pornography.
Edward Grimes, 58, of Maryville, was sentenced by U.S. Chief District Judge Greg Kays to 19 years in federal prison without parole. Grimes, a registered sex offender, has prior felony convictions in New York for sexual abuse of a child and for a criminal sexual act against a child under the age of 14 – for which he is subject to lifetime sex offender registration – and for endangering the welfare of a child (related to a sexual act against a 4-year-old victim).
On July 6, 2015, Grimes pleaded guilty to one count of attempting to distribute child pornography over the Internet, one count of attempting to receive child pornography over the Internet and one count of possessing child pornography. Grimes admitted that he attempted to distribute child pornography over the Internet on March 29, 2013; that he attempted to receive child pornography over the Internet on Dec. 31, 2013; and that he possessed child pornography on Feb. 12, 2014. Grimes must forfeit to the government two desktop computers, a laptop computer, four hard drives and a thumb drive that were used to commit the offenses.
Court documents cite a pattern of activity by Grimes involving the sexual abuse or exploitation of a minor. According to court documents, Grimes created a photo album on a file-sharing website on March 29, 2013. He posted 65 images depicting clothed, semi-nude to full nude images of both adult females and young girls ranging in age from 8 to 25 years of age. Among the images were three pornographic photographs depicting girls approximately 12 to 13 years of age.
Law enforcement officers executed a search warrant at Grimes’s residence on Feb. 12, 2014. A firearm was recovered and Grimes was arrested on state charges for being a felon in possession of a firearm. Investigators also seized electronic media that contained child pornography movie files depicting nude girls approximately 3 to 6 years of age. Two hard drives and one thumb drive had a total of 132 child pornography images. Almost all of the images were of prepubescent children.
Investigators also found four movie files, recorded by Grimes, of an approximately 10-year-old girl. Law enforcement believes it is possible Grimes was grooming the child for sexual activity.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Man Posing as a Highly Decorated Navy Seal Sentenced to Federal PrisonRead the Press Release
ROCKFORD — A California man claiming to have been a Navy SEAL was sentenced today by U.S. District Judge Philip G. Reinhard to federal prison for defrauding non-profit organizations.
WILLIAM J. BURLEY, 36, formerly of Yucaipa, Calif., was sentenced to three years in federal prison, to be followed by three years of supervised release for defrauding International Aid Services – USA Inc. (IAS America), a non-profit organization located in Crystal Lake, and International Aid Services (IAS International), a non-profit organization based in Stockholm, Sweden. Burley was also ordered to pay full restitution of $32,454 to IAS America. Burley pleaded guilty on Aug. 30, 2016, to wire fraud.
In his written plea agreement, Burley admitted that between July 17, 2012, and Oct. 8, 2012, he devised a scheme to defraud IAS America and IAS International. The two non-profit organizations provided relief to, and assistance in, the economic development of poverty-stricken individuals in Africa. On July 11, 2012, while doing humanitarian work, four IAS International workers were ambushed and assaulted in Somalia. Three of the workers, including a woman, were kidnapped. The fourth worker was shot and left behind.
Burley approached IAS International and offered to assist it in negotiating with the Somali captors for the release of the employees and, if necessary, to assist in the rescue of the captives. In so doing, Burley claimed to have been a former Navy SEAL and to have received numerous citations while in the Navy, including a Presidential Unit Citation, an Afghanistan Campaign Medal, a Silver Lifesavings Medal, and a Global War on Terrorism Medal.
All of those claims were false. The defendant also falsely claimed to have attended the University of Delaware and University of Maryland and to have been a consultant for the Navy, the Department of Defense, and the Department of State.
Burley was able to convince IAS America to pay him $30,000 and to pay for his travel expenses to Kenya. At Burley’s request, IAS America also paid for another individual to fly to Kenya to assist Burley in Burley’s efforts to either negotiate with the Somali pirates or to arrange for a rescue operation. When he was unable to obtain the release of the hostages, Burley returned to the United States. In September 2012 he went to Crystal Lake, where he presented a “rescue plan” for the hostages to IAS America and made additional false representations about his past achievements. When IAS America learned that Burley was not a SEAL, it ended its relationship with him.
The three hostages in Somalia were not released until May 2014.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney John G. McKenzie.
Man Admits Using Stolen Identity to Try to Buy $52,000 CarRead the Press Release
WICHITA, KAN. - An Arizona man pleaded guilty Monday to using a stolen identity in an effort to buy a $52,000 car from a Wichita auto dealer, U.S. Attorney Tom Beall said.
Thomas Rye, 36, Phoenix, Ariz., pleaded guilty to one count of wire fraud. In his plea, he admitted that on Jan. 2, 2016, he called Eddy’s Chrysler Dodge Jeep Ram in Wichita and applied for a pre-approved line of credit to purchase a car. He used a stolen identity for a credit check and tried to use the victim’s credit to buy a Dodge Challenger Hellcat valued at $52,725. Mistakes in the credit application paperwork caused employees of the dealership to become suspicious and they called police. Rye was arrested at the scene.
Rye was one of 13 defendants named in an indictment in May alleging they were part of an organization that attempted to fraudulently obtain a total of $3.5 million in credit and cash. The indictment alleged the conspirators divided up the work of stealing mail from mailboxes, fraudulently applying for credit and shopping with stolen identities.
Sentencing is set for March 6. He faces up to 20 years in federal prison and a fine up to $250,000. Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant U.S. Attorney Alan Metzger and Assistant U.S. Attorney Debra Barnett for their work on the case.
Kern County Man Pleads Guilty to Possessing Methamphetamine with the Intent to Distribute ItRead the Press Release
FRESNO, Calif. — Jose Soto, 36, of Lamont, pleaded guilty today to possession with intent to distribute methamphetamine, United States Attorney Phillip A. Talbert announced.
According to court documents, on May 5, 2016, at his residence, Soto possessed over two pounds of methamphetamine that he intended to sell. At the time of his arrest, Soto was on Kern County Mandatory Supervision for a prior narcotics trafficking offense.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Probation Department. Assistant United States Attorney Angela Scott is prosecuting the case.
Soto is scheduled to be sentenced on March 6, 2017, by U.S. District Judge Dale A. Drozd. Soto faces a maximum statutory penalty of life in prison and a $10 million 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.
Justice Department Reaches Agreement with Princeton University to Resolve Americans with Disabilities Act Compliance ReviewRead the Press Release
The Justice Department announced today that it reached an agreement with Princeton University to resolve a compliance review initiated in May 2014 regarding Princeton’s treatment of students with mental health disabilities and its policies and practices related to requests for reasonable modifications, withdrawals and leaves of absences.
The agreement details specific steps Princeton will take to strengthen its policies, practices and training to benefit all current and future Princeton students with disabilities. Under the agreement, Princeton will:
- revise its policies to explicitly describe the types of accommodations students with disabilities may request, including modifications to university policies, rules and regulations; where students may submit each type of accommodation request; and how Princeton will evaluate those requests;
- revise the websites for its Office of Disability Services and its Office of the Dean of Undergraduate Students to direct students to relevant policies and procedures related to requesting reasonable accommodations;
- revise its leave policy and practices, consistent with regulations implementing Title III of the Americans with Disabilities Act (ADA); and
- provide annual training, including references to updated policies, on Title III of the ADA, with a focus on mental health disability discrimination, to all faculty and staff responsible for evaluating and/or deciding requests from students for reasonable accommodations.
“This agreement reflects the critical role that colleges and universities play in fulfilling the ADA’s promise of equal opportunity, full participation, independent living and economic self-sufficiency,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “By working directly with students with disabilities to determine appropriate accommodations, colleges and universities can meet their obligations under the ADA.”
“The ADA, which is one of this country's most comprehensive pieces of civil rights legislation, prohibits discrimination and guarantees that people with disabilities have the same opportunities as everyone else to participate in the mainstream of American life,” said U.S. Attorney Paul J. Fishman of the District of New Jersey. “Through this agreement, students with disabilities move closer to achieving full equality and integration into places of higher education.”
For more information please visit the department’s website www.ada.gov. Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
The compliance review was conducted jointly by the Civil Rights Division’s Disability Rights Section and the U.S. Attorney’s Office of the District of New Jersey. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office of the District of New Jersey is available on its website at www.justice.gov/usao/nj.
Princeton University
Justice Department Reaches Agreement with Princeton University to Resolve Americans with Disabilities Act Compliance ReviewRead the Press Release
NEWARK, N.J. – The Justice Department and the U.S. Attorney’s Office, District of New Jersey, announced today that they have reached an agreement with Princeton University to resolve a compliance review initiated in May 2014 regarding Princeton’s treatment of students with mental health disabilities and its policies and practices related to requests for reasonable modifications, withdrawals, and leaves of absences.
The agreement details specific steps Princeton will take to strengthen its policies, practices, and training to benefit all current and future Princeton students with disabilities. Under the agreement, Princeton will:
- revise its policies to explicitly describe: the types of accommodations students with disabilities may request, including modifications to University policies, rules, and regulations; where students may submit each type of accommodation request; and how Princeton will evaluate those requests;
- revise the websites for its Office of Disability Services and its Office of the Dean of Undergraduate Students to direct students to relevant policies and procedures related to requesting reasonable accommodations;
- revise its leave policy and practices, consistent with regulations implementing Title III of the Americans with Disabilities Act (ADA); and
- provide annual training, including references to updated policies, on Title III of the ADA, with a focus on mental health disability discrimination, to all faculty and staff responsible for evaluating and/or deciding requests from students for reasonable accommodations.
“The ADA, which is one of this country's most comprehensive pieces of civil rights legislation, prohibits discrimination and guarantees that people with disabilities have the same opportunities as everyone else to participate in the mainstream of American life,” U.S. Attorney Paul J. Fishman, District of New Jersey, said. “Through this agreement, students with disabilities move closer to achieving full equality and integration into places of higher education.”
“This agreement reflects the critical role that colleges play in fulfilling the promise of the ADA: equality of opportunity, full participation, independent living, and economic self-sufficiency,” Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, said. “By working directly with students with disabilities to determine appropriate accommodations, colleges and universities can meet their obligations under the ADA.”
For more information or for a copy of the agreement, please visit the department’s website www.ada.gov. Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
The compliance review was conducted jointly by the Civil Rights Division’s Disability Rights Section and the U.S. Attorney’s Office for the District of New Jersey. Additional information about the Civil Rights Division is available on its websites at www.justice.gov/crt . Additional information about the U.S. Attorney’s Office/District of New Jersey’s Civil Rights Unit is available on its website at: https://www.justice.gov/usao-nj/civil-rights-enforcement .
The government is represented by Assistant U.S. Attorney Michael E. Campion, chief of the U.S. Attorney’s Office/District of New Jersey’s Civil Rights Unit, and Erin Richmond, trial attorney, U.S. Department of Justice, Civil Rights Division, Disability Rights Section.
- revise its policies to explicitly describe: the types of accommodations students with disabilities may request, including modifications to University policies, rules, and regulations; where students may submit each type of accommodation request; and how Princeton will evaluate those requests;
Justice Department Announces Findings of Investigation into Ville Platte, Louisiana, Police Department and Evangeline Parish Sheriff’s OfficeRead the Press Release
The Justice Department announced today that it found reasonable cause to believe that the Ville Platte, Louisiana, Police Department (VPPD) and the Evangeline Parish Sheriff’s Office (EPSO) engage in a pattern or practice of conduct that violates the Fourth Amendment to the Constitution.
The department found that VPPD and EPSO used a procedure the agencies called an “investigative hold” to detain individuals without probable cause during criminal investigations. As a result of this pattern or practice, people in Louisiana’s Evangeline Parish have been arrested and placed in holding cells without probable cause. Often, individuals were in holding cells for several days at a time, where they were unable to contact family, friends or employers and had limited access to food and personal items.
“When police officers investigate criminal activity, they must do so responsibly and within the boundaries of the law,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The violations we found in Ville Platte and Evangeline Parish demonstrate a disturbing pattern of officers overstepping legal boundaries by placing residents in holding cells for days at a time without probable cause. We look forward to working with both agencies and the local municipalities to ensure that officers can effectively protect their communities and safeguard the liberties of the residents they serve.”
The Justice Department’s findings result from a comprehensive review of EPSO and VPPD’s relevant policies, procedures, training and accountability systems. The review included meetings with the leadership of both agencies and the city of Ville Platte, interviews with officers throughout the chain of command at both agencies and conversations with other members of the local community. Throughout the department’s investigation, VPPD, EPSO and the city of Ville Platte provided their full cooperation and were receptive to the department’s initial feedback. VPPD and EPSO leadership acknowledged that the investigative holds are unconstitutional and have taken laudable steps to begin eliminating their use. The department will continue to work closely with these law enforcement agencies and municipalities to remedy the issues identified in the report.
The Civil Rights Division’s Special Litigation Section conducted the investigation. Since the start of the administration, the Special Litigation Section has opened 25 investigations into law enforcement agencies. The department is enforcing 19 agreements with law enforcement agencies, including 14 consent decrees and one post-judgment order.
For additional information, please visit the Civil Rights Division’s website at www.justice.gov/crt.
Ville Platte and Evangeline Parish FindingsJersey City, New Jersey, Man Indicted for $3.5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man was indicted today on charges that he fraudulently obtained $3.5 million from two investors by falsely representing that his businesses had secured lucrative contracts to sell olive oil to major retailers, U.S. Attorney Paul J. Fishman announced.
Antonio Fasolino, 60, who was originally charged by complaint with one count of wire fraud in June 2016, is now charged by indictment with three counts of wire fraud and one count of transacting in criminal proceeds.
According to the indictment:
Fasolino owned several companies that were purportedly involved in the manufacture, sale and distribution of pasta, tomato sauce, olive oil and other food products. In 2012, Fasolino allegedly obtained approximately $3.5 million from two victims by falsely representing that Fasolino’s companies had been awarded lucrative contracts to sell olive oil. In fact, there were never any such contracts, and Fasolino spent the money on himself, including car and mortgage payments, apartment rentals, a wedding, college tuition and credit card payments.
Each count of wire fraud carries a maximum potential penalty of 20 years in prison. The transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison. Each charge in the indictment is also punishable by a potential $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Lakshmi Herman and Deputy Chief Zach Intrater of the U.S. Attorney’s Office’s Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Alan Silber Esq., Roseland, New Jersey
Indiana Man Arrested and Charged with Fraudulently Obtaining Citizenship for Failure to Disclose Alleged Crimes Committed in Bosnia and Military Service During Bosnian ConflictRead the Press Release
A Crown Point, Indiana, man was arrested today after being charged with unlawfully procuring U.S. citizenship by allegedly failing to disclose during his naturalization process his Bosnian Serb Military service and charges of murder during the Bosnia Conflict in the 1990s.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Pat Miles of the Western District of Michigan and Acting Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Detroit made the announcement.
Alexander Kneginich, 56, was indicted under seal by a federal grand jury on Dec. 15, 2016, with fraudulently obtaining U.S. citizenship after he emigrated from Bosnia-Herzegovina to the United States. Kneginich was arrested in Kalamazoo, Michigan, this morning, and the indictment was unsealed after his initial appearance.
The indictment alleges that Kneginich told a series of lies to U.S. immigration authorities in the course of obtaining authority to enter the United States as a refugee, that enabled him to subsequently get permanent-resident status and ultimately attain U.S. citizenship. Specifically, when he applied for refugee status, Kneginich is alleged to have falsely stated that his wife was an ethnic Croatian and that, because he is Serbian, they had to flee Bosnia to avoid the persecution experienced by persons in ethnically-mixed marriages. In addition, the indictment alleges that Kneginich knowingly failed to disclose in both his refugee application and his permanent-resident application that he had served in Bosnian Serb Military units during the Balkans Conflict of the early 1990s; that he knowingly failed to disclose in those applications that he had been charged, jailed and tried in Bosnia for the 1994 murders of two Muslim civilians; and that he falsely stated in his naturalization application that he had never lied to U.S. immigration authorities to obtain immigration benefits.
HSI investigated the case. Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Hagen W. Frank of the Western District of Michigan are prosecuting the case. The Criminal Division’s Office of International Affairs provided assistance in this matter.
INTERPOL Washington Provides Critical Support to Cold Case MurderRead the Press Release
On December 8, 2016, a U.S. federal grand jury returned an indictment against Silas Duane Boston, charging him with two counts of first degree maritime murder. He is accused of killing British tourists, Christopher Farmer and Peta Frampton, aboard his boat in the Caribbean Sea in the summer of 1978. Boston ran a charter boat company that was hired by the two victims who were vacationing in the Caribbean. According to the indictment, Boston murdered the couple and dumped their weighted bodies overboard. The boat, known as the Justin B. was owned by Boston, a U.S. citizen; therefore, maritime and territorial laws of the United States apply and the case is being prosecuted under federal jurisdiction. Boston was arrested on December 1, 2016, in Paradise, California, and was arraigned before U.S. Magistrate Judge Carolyn K. Delaney in the U.S. District Court Eastern District of California. Boston entered a plea of not guilty.
INTERPOL Washington—the U.S. National Central Bureau (USNCB)--has been supporting this cold case investigation since 2012. Since 2015, INTERPOL Washington has worked with INTERPOL Manchester, NCB; the Sacramento Police Department; the FBI Sacramento; and the Manchester (United Kingdom) Police Department. INTERPOL Washington facilitated contacts between the Sacramento and Manchester (United Kingdom) police department investigators; passed witness statements from Sacramento to Manchester; and circulated requests for information to NCBs worldwide. The bureau also researched correspondence and documentation filed with USNCB at the time the victims were reported to have been murdered. The Manchester UK Police Department expressly thanked the USNCB staff on behalf of the victims’ families for their support of the joint investigation, reinforcing the value of international police cooperation and coordination between INTERPOL member countries.
There is also a separate investigation into the disappearance and suspected murder of Boston’s wife in 1968. Boston’s next court appearance is scheduled for January 10, 2017. To read the full indictment, click here: https://www.justice.gov/usao-edca/pr/former-sacramento-resident-charged-murdering-british-couple-1978
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Huntington woman sentenced to over six years in federal prison for heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman caught with heroin was sentenced today to six years and eight months in federal prison, announced United States Attorney Carol Casto. Misty Renee Wentz, 38, previously pleaded guilty to possession with intent to distribute heroin.
On September 1, 2015, Wentz was approached and interviewed by Drug Enforcement Administration agents in Huntington. Wentz admitted to the agents that she was concealing heroin on her person. Wentz then provided the heroin to agents and admitted that she possessed the heroin for purposes of distribution. Wentz further admitted that she had conspired with multiple individuals over the previous year to distribute up to three kilograms of heroin that was transported to the Huntington area from Detroit.
The Drug Enforcement Administration 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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Highland Man Sentenced to Five Years for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Neil Rothfeder, age 58, of Highland, New York, was sentenced today to 5 years in prison, to be followed by a lifetime term of supervised release, for distributing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Angel M. Melendez, Special Agent in Charge of Homeland Security Investigations (HSI), New York.
As part of his sentence, Rothfeder will also be required to register as a sex offender upon his release from prison.
As part of his July 6, 2016 plea, Rothfeder admitted to emailing child pornography to others in 2012.
The case was investigated by HSI New York and prosecuted by Assistant United States Attorney Katherine Kopita.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Henley Man Sentenced to 11 Years for Meth ConspiracyRead the Press Release
JEFFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Henley, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Michael Raymond Robinett, 38, of Henley, was sentenced by U.S. District Judge Stephen R. Bough to 11 years in federal prison without parole.
On July 25, 2016, Robinett pleaded guilty to participating in a conspiracy to distribute 500 grams or more of methamphetamine in Moniteau County.
On July 9, 2015, law enforcement officers stopped a Chevrolet Impala in which Robinett was a passenger. Robinett had a .22-caliber pistol in his back pocket. The owner of the vehicle, who was driving, gave officers permission to search the vehicle and they found more than 500 grams of methamphetamine in a black bag behind the passenger seat, along with a digital scale and a glass pipe.
Robinett admitted that he and a co-conspirator had distributed several pounds of methamphetamine over the past year. According to court documents, Robinett had made three trips to Kansas City, Mo., in the week before his arrest and obtained 600 grams of methamphetamine for $10,000 on each trip. Robinett committed the federal offense while on parole for an unrelated state felony conviction.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mid-Missouri Drug Task Force and the Moniteau County, Mo., Sheriff’s Department.
Hartford Man Found Guilty of Gang-Related MurderRead the Press Release
United States Attorney Deirdre M. Daly and Chief State’s Attorney Kevin T. Kane announced that a federal jury in New Haven has found ARTHUR STANLEY, also known as “Wiggs,” 27, guilty of committing the July 15, 2011 murder of Keith Washington, 23, of Windsor. The trial before U.S. District Judge Jeffrey A. Meyer began on December 5 and the jury returned its verdict this afternoon.
This matter stems from a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of the Westhell and Team Grease street gangs and gang-related violent activity. Officers and inspectors of the Cold Case Homicide Unit of the Office of the Chief State’s Attorney are participating in the investigation.
At approximately 9:28 p.m. on July 15, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 67 Oakland Terrace in Hartford. Officers responding to the scene located an unconscious person lying on the front porch of the residence with an apparent gunshot wound to the head. The victim, who was subsequently identified as Keith Washington, was transported to the hospital where he succumbed to his injuries on July 17, 2011.
According to the trial evidence and testimony, STANLEY, a member of the Westhell street gang, attempted to shoot and kill a member of a rival street gang who was talking with Washington on the front porch of 67 Oakland Terrace. He missed his intended target and shot Washington instead.
STANLEY has been detained in federal custody since April 2014 when he was arrested on federal narcotics charges. On October 27, 2015, a federal grand jury in New Haven returned an indictment charging STANLEY with engaging in a Violent Crime in Aid of Racketeering.
Judge Meyer scheduled sentencing for March 14, 2017, at which time STANLEY faces a mandatory term of imprisonment of life. STANLEY previously pleaded guilty to a crack cocaine conspiracy charge, and also will be sentenced for that offense.
This ongoing investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and the Cold Case Homicide Unit of the Office of the Chief State’s Attorney. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorneys Peter S. Jongbloed and John H. Durham with the assistance of New Haven State’s Attorney Patrick Griffin, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
General Electric to Pay $2.5 Million to Resolve Claims Concerning Military Aircraft Engine ComponentsRead the Press Release
BOSTON – General Electric Corporation (GE), headquartered in Boston, has entered into an agreement to resolve violations concerning Department of Defense (DOD) contractual requirements.
GE will pay $2,550,180 to resolve claims that from July 1, 2010, through April 30, 2014, GE’s subsidiary, Avio Aero, in Italy, failed to consistently perform interim pressure tests on gearboxes used in T700 and F110 engines in DOD helicopters and fighter jets, respectively. The government alleges that Avio’s failure to conduct the pressure tests violated provisions of contracts GE entered into with the Army, Navy and Air Force. The United States further alleges that Avio did not provide notice of the skipped tests, but rather stamped documents to indicate that such testing had been conducted.
“By failing to conduct these pressure tests consistently, and representing that the tests had been completed, Avio deprived the United States military of the necessary information to evaluate whether or not to accept Avio’s parts for use in important military equipment,” said United States Attorney Carmen M. Ortiz. “We commend GE for bringing this issue to the government’s attention and for working proactively with us to resolve it.”
U.S. Attorney Ortiz; Michael Connor, Resident Agent in Charge of the U.S. Army Criminal Investigation Command; Leo Lamont, Special Agent in Charge of the U.S. Naval Criminal Investigative Service, Northeast Field Division; David Priest, Special Agent in Charge of the U.S. Air Force Office of Special Investigations; and Craig Rupert, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office. The case was handled by Assistant U.S. Attorney Sonya A. Rao of Ortiz’s Civil Division.
Four Facing Federal Robbery, Prescription Opioid and Firearms Charges Arising Out of Armed Robbery of Pharmacy in RatonRead the Press Release
ALBUQUERQUE – Four men made their initial appearances in federal court in Albuquerque, N.M., this morning on a criminal complaint charging them with crimes arising out of the Dec. 3, 2016, armed robbery of a pharmacy in Raton, N.M. The four men, who were arrested on the federal charges on Dec. 16, 2016, remain in custody pending preliminary and detention hearings scheduled for later this week.
The federal charges against Antoine Mitchell, 28, Moses Dickens, 30, and Justin Harris, 25, all of Albuquerque, and Christopher Dominguez, 26, of Mountainair, N.M., were announced by U.S. Attorney Damon P. Martinez, 8th Judicial District Attorney Donald Gallegos, Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division, Chief John Garcia of the Raton Police Department and Colfax County Sheriff Rick Sinclair.
The criminal complaint charges Mitchell, Dickens, Dominguez and Harris with conspiring to rob a business engaged in interstate commerce, possessing Oxycodone with intent to distribute, and brandishing firearms during a crime of violence. According to the criminal complaint, which is attached, the four defendants committed the offenses by robbing the Medicine Shoppe Pharmacy located at 1275 S. 2nd Street in Raton, at gunpoint on Dec. 3, 2016.
The four defendants were charged with local charges by the 8th Judicial District Attorney’s Office following their arrests on Dec. 3, 2016. The state charges will be dismissed in favor of federal prosecution.
The federal charges in the criminal complaint carry the following statutory maximum penalties on conviction: 20 years of imprisonment for conspiracy to rob a business engaged in interstate commerce, and 20 years of imprisonment for possession of Oxycodone with intent to distribute. The penalty for a conviction for brandishing a firearm during a crime of violence is a mandatory minimum of seven years in prison to be served consecutive to any prison sentence imposed on the other charges.
Charges in complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque, Raton Police Department, Colfax County Sheriff’s Office and the Trinidad (Colorado) Police Department, with assistance from the 8th Judicial District Attorney’s Office. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Mitchell ComplaintFort Myers Man Sentenced to Federal Prison for Credit Card Fraud and Identity TheftRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Edrey Santo Rojas (31, Fort Myers) to three years and nine months in federal prison for access device (credit card) fraud and aggravated identity theft. He pleaded guilty on August 31, 2016.
According to the plea agreement, between December 9, 2014, and August 8, 2015, Santo Rojas used unauthorized credit card information at retail establishments, including the Nike Factory Store, Target, Kay Jewelers, McDonalds, and the Home Depot to acquire items using the credit card information of others without lawful authority.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael C. Baggé-Hernández.
Former Suny Buffalo State Graduate Student Sentenced for Transmitting Threatening CommunicationsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Benjamin Bolton, 32, of Glendale, Colorado, who was convicted of transmitting interstate communications containing threats to injure the person of another was sentenced to 30 months in prison by U.S. District Court Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that the defendant was admitted to SUNY Buffalo State College as a graduate student for the Fall 2013 semester. As a result of incidents at the school that included disputes with faculty members, Bolton was suspended from the college in April 2014. Beginning in June 2015 and continuing until August 5, 2015, the defendant made numerous telephone calls to faculty and staff personnel employed at SUNY Buffalo State, and to officers of the Buffalo State University Police Department. During many of these calls, Bolton threatened to assault police officers, faculty, and staff members, whom the defendant identified by name.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Buffalo State University Police Department, under the direction of Chief Peter Carey.Former Olympic Gymnastics Doctor Indicted on Federal Child Pornography ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – A federal grand jury indicted Lawrence Gerard Nassar on federal child pornography charges. As recently as last year, Nassar was a physician for the U.S. Gymnastics Team. The grand jury alleges in the indictment that Nassar received and attempted to receive child pornography in 2004, and that he possessed thousands of images of child pornography between February of 2003 and September of 2016. If convicted of both of these charges, Nassar faces a mandatory minimum of five years’ imprisonment and up to 40 years of imprisonment, and up to lifetime supervised release after release from custody.
Nassar appeared in federal court to hear the charges against him on Friday, December 16, 2016. A hearing on whether he should receive bond pending trial is pending. The federal investigation that led to the charges is ongoing. Anyone with information about additional child pornography offenses, or criminal sexual conduct Dr. Nassar may have committed outside Michigan or abroad, should contact the Detroit FBI Office at (313) 965-2323. Anyone with information about alleged sexual assaults Dr. Nassar committed within the State of Michigan should contact Michigan State University Police at 844-99-MSUPD (67873).
The charges are the result of a joint investigation by the Federal Bureau of Investigation (FBI) and the Michigan State University Police Department (MSUPD), and this case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The charges in the indictment are only allegations and are not evidence of guilt. The defendant is presumed innocent unless and until proven guilty, and the government has the burden of proving his guilt beyond a reasonable doubt.
END
Former Burien Store Owner Sentenced to 14 Months in Prison for Food Stamp TraffickingRead the Press Release
The former owner of Cynthia’s Polynesian Market in Burien, Washington was sentenced today in U.S. District Court in Seattle to 14 months in prison and three years of supervised release for food stamp benefit fraud, announced U.S. Attorney Annette L. Hayes. ROHIT REDDY, 43, pleaded guilty to Supplemental Nutrition Assistance Program (SNAP) fraud on July 1, 2016. In his plea agreement, REDDY admitted that he allowed SNAP recipients to exchange their benefits for cash, while his store kept about 50 percent of the amount fraudulently redeemed on the benefit card. In imposing the sentence, U.S. District Judge James L. Robart encouraged REDDY, a native of Fiji, to “Please go back and preach the message to your community that the law applies to everyone.”
According to records filed in the case and evidence presented to the court, between March 2014 and June 2015 Cynthia’s Polynesian Market conducted more than 7600 transactions using food stamp debit cards. Of those transactions more than 2000 were for a dollar amount above $120. Investigators believe that is an unusually high number given the size and product selection at the market. Additionally, on 11 different occasions undercover agents were able to redeem benefits for cash while providing the store with the 50 percent premium. Finally, using a surveillance camera, investigators were able to link the processing of large dollar amounts from food stamp cards with the customers leaving the store. Investigators determined that the customers ‘spent’ as much as $600 but left the store with no or very few grocery bags – an indicator that the card benefits had been illegally exchanged for cash. On many of the higher transactions, the debit card was first checked to determine the balance, and the next transaction was to reduce the balance to almost zero – another sign of fraud.
At the sentencing hearing, prosecutors asked that the court determine the fraud was more than $250,000, while the defense argued it could be less than $10,000. Noting that REDDY had little ability to pay back the loss, Judge Robart set the loss and the restitution to be paid to the government of just more than $95,000.
The case was investigated by the U.S. Department of Agriculture Office of Inspector General (USDA-OIG) and the FBI. The case was prosecuted by Assistant United States Attorneys Rebecca Cohen and Thomas Woods.
Former Bank Teller Sentenced for EmbezzlementRead the Press Release
BOSTON – A former teller at Lenox National Bank in Lenox, Mass. was sentenced today in U.S. District Court in Springfield in connection with embezzling almost $300,000 from the bank.
Bernadine M. Powers, 41, of Becket, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison, three years of supervised release, and ordered to pay $299,793 in restitution. In September 2016, Powers pleaded guilty to one count of conspiracy to embezzle funds from a bank.
Powers, a bank teller at Lenox National Bank, conspired with another bank teller, Melissa Scolforo, to embezzle money from the teller drawers and make false entries in bank records to hide the thefts. In January 2009, Scolforo began stealing the money, and Powers joined the scheme about a year later. The two tellers stole a total of $378,000 before the embezzlement was brought to light during a bank audit in November 2013. Lenox National Bank has since been acquired by Adams Community Bank.
Scolforo previously pleaded guilty to the same charge and is scheduled to be sentenced on Jan. 30, 2017.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office prosecuted the case.
Former Attorney Indicted on Bankruptcy Fraud ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Josiah Hutton (60, Winter Haven) with concealment of assets and embezzlement from a bankruptcy estate. If convicted, he faces a maximum penalty of five years in federal prison on each count.
According to the indictment, Hutton was retained to represent a debtor who was planning to file for bankruptcy. In anticipation of filing a bankruptcy petition, Hutton received a settlement check, which was the property of the debtor’s bankruptcy estate, that he deposited into his attorney escrow account. Hutton prepared and certified the debtor’s bankruptcy petition but failed to list the settlement check as an asset, thereby concealing it from creditors and the bankruptcy court. Subsequent to the filing of the debtor’s petition, Hutton embezzled a large portion of the settlement check for his own personal use.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation and the Florida Department of Law Enforcement, with assistance from the Office of the United States Trustee for the Middle District of Florida, Tampa Division. It will be prosecuted by Special Assistant United States Attorney Chris Poor.
Farmington Man Pleads Guilty to Violating Federal Drug Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – David Kingsbeck 43, of Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal drug trafficking and firearms laws under a plea agreement with the U.S. Attorney’s Office.
Kingsbeck was arrested on March 4, 2016, on a criminal complaint charging him with trafficking methamphetamine in San Juan County, N.M. According to the complaint, Kingsbeck sold approximately 57 grams of methamphetamine to an undercover law enforcement agent on Feb. 16, 2016.
Kingsbeck and his co-defendant Rupesh Bhakta, 38, also of Farmington, were subsequently indicted on March 23, 2016. Kingsbeck was charged individually with being a felon in possession of a firearm on July 1, 2015 and Dec. 30, 2015, and distribution of heroin on Dec. 30, 2015. Bhakta and Kingsbeck were charged jointly with conspiracy and distribution of methamphetamine on Feb. 16, 2016. According to the indictment, the offenses took place in San Juan County. Kingsbeck was prohibited from possessing firearms and ammunition because of his prior felony convictions for criminal conspiracy theft and escape attempt from felony.
During today’s proceedings, Kingsbeck pled guilty to distributing heroin and being a felon in possession of a firearm and ammunition. In entering the guilty plea Kingsbeck admitted that on Dec. 29, 2015, he sold approximately 12.8 grams of heroin and a firearm and ammunition to an undercover law enforcement agent. Kingsbeck further admitted that he was prohibited from possessing firearms or ammunition on Dec. 29, 2015, because of his prior felony convictions.
At sentencing, Kingsbeck faces a statutory maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
On Dec. 8, 2016, Bhakta pled guilty to an information charging him with distribution of methamphetamine. In entering the guilty plea, Bhakta admitted that on Feb. 16, 2016, he distributed methamphetamine to an undercover law enforcement agent. Under the terms of his plea agreement, Bhakta will be sentenced within the range of 24 to 60 months in federal prison. Bhakta remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Fairfield, Illinois Man Sentenced on Child Pornography ChargesRead the Press Release
Zachary R. Wheeler, 23, of Fairfield, IL, was recently sentenced to federal prison on child pornography related charges, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
On December 15, 2016, Wheeler was sentenced to 180 months’ imprisonment and five years’ supervised release following his imprisonment. Wheeler had previously pleaded guilty to a federal indictment charging him with five counts of production of child pornography. All five counts charge Wheeler with the production of child pornography involving a minor girl under the age of 18. The dates on which Wheeler is charged with production of child pornography, all of which occurred in 2014, are May 31, June 12, June 13, June 16, and June 17.
The investigation in this case was conducted by the Franklin County Sheriff’s Office. The Franklin County State’s Attorney Office assisted in the investigation of this case.
El Paso Woman Pleads Guilty to Participating in Doña Ana County Cocaine Trafficking RingRead the Press Release
ALBUQUERQUE – Gabriela Castro, 24, a legal permanent resident from El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to participating in a conspiracy to distribute cocaine in Doña Ana County, N.M.
Castro was arrested in Sept. 2016, on an indictment alleging cocaine trafficking charges. The 18-count indictment is the result of a six-month investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, targeting a drug trafficking organization allegedly led by Joel Ibarra-Torres, 46, a Mexican national, that allegedly distributed cocaine in Doña Ana County.
The indictment alleged that Ibarra-Torres and seven co-conspirators, including several members of Ibarra-Torres’ family, participated in a cocaine trafficking conspiracy that existed from at least March 31, 2016 until Sept. 20, 2016. The indictment also alleged that Ibarra-Torres and two of his co-defendants participated in an international money laundering conspiracy. It also charged certain of the defendants with substantive cocaine trafficking offenses and with using telephones to facilitate their drug trafficking activity. The indictment included forfeiture provisions that seek the forfeiture of at least $31,620, constituting proceeds of the defendants’ alleged criminal activities, to the United States.
During today’s proceedings, Castro pled guilty to Count 1 of the indictment charging her with conspiracy to distribute cocaine. In entering the guilty plea, Castro admitted that on Aug. 26, 2016, she attempted to smuggle approximately 250 grams of cocaine into the United States from Mexico in exchange for payment. At sentencing, Castro faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
The remaining co-defendants with the exception of Ibarra-Torres who has yet to be arrested and is considered a fugitive, have entered pleas of not guilty pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation leading to the indictment was conducted by the Las Cruces office of the DEA, the U.S. Border Patrol and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Terri J. Abernathy and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch office.
Edgewater Man Pleads Guilty to Bank Fraud Scheme Involving over $1.3 Million in LossesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Mrugesh G. Patel (38, Edgewater) today pleaded guilty to bank fraud. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, beginning in February 2011 and continuing until December 2012, Patel participated in a scheme to defraud federally insured banks, including TD Bank and Centerstate Bank. Specifically, he opened numerous bank accounts under the names of various Florida-based companies that he had established. Patel then used these bank accounts to make bulk deposits of fraudulent bank drafts made payable to his companies. The bank drafts were made using the unauthorized account information of other individuals, businesses, and entities. Patel also made false representations to bank representatives when he opened the accounts and during the time period that he was making the deposits.
Patel’s fraud scheme caused over $1,352,956 in losses to those whose account information was used to create the fraudulent bank drafts. He used some of this money for personal expenditures and to pay third parties. During the investigation of Patel’s scheme, law enforcement seized over $400,000 in illegal proceeds from bank accounts that Patel controlled.
This case was investigated by the United States Secret Service and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and Nicole Andrejko.
Eastern District of Oklahoma, U.S. Attorney’s Office Collects $2,091,906 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
MUSKOGEE, OKLAHOMA – U.S. Attorney Mark Green announced today that the Eastern District of Oklahoma collected $2,091,906 in criminal and civil actions in Fiscal Year 2016. Of this amount, $940,502 was collected in criminal actions and $1,151,404 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016, that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“Collection of monies due the United States of America in both criminal and civil matters is a responsibility of this U.S. Attorney’s office as well as those across our nation. We here in the Eastern District of Oklahoma are committed to fulfilling that responsibility,” said U.S. Attorney Mark Green.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
District Man Sentenced to 50 Years in Prison for Sexually Abusing 11-Year-Old GirlRead the Press Release
WASHINGTON - Robert Kelsey, 29, of Washington, D.C., was sentenced today to 50 years in prison for sexually abusing an 11-year-old girl he met through Instagram when he was 26 years old, U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD), announced.
Kelsey was found guilty by a jury on Aug. 29, 2016, following a trial in the U.S. District Court for the District of Columbia, of transportation of a minor with intent to engage in criminal sexual activity, aggravated sexual abuse of a child, and first-degree child sexual abuse with aggravating circumstances. He was sentenced by the Honorable Reggie B. Walton. Following his prison term, Kelsey will be placed on supervised release for the rest of his life. Also, Kelsey, a convicted felon, will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, Kelsey met the girl during the summer of 2014 on Instagram, concealing his true identity, posing as a 19-year-old and using a fictitious name. He suggested that they begin communicating by text via Kik Messenger. He flirted with her and told her that he wanted to have sex with her. On July 25, 2014, Kelsey arranged to pick up the girl from her summer camp, which was held at an elementary school in Bowie, Md. He told the camp staff that he was the child’s cousin so that he could take her from camp early that day.
Kelsey drove the victim to his house in Washington, D.C., where he sexually abused her, and then returned her to the vicinity of the camp. By that time, the victim’s father, who was at the camp to pick up his daughter, learned that she had been taken from the camp by a man, and the father summoned police. The victim disclosed what happened and Prince George’s County, Md. Police began an investigation. The case was referred to the Metropolitan Police Department, and an investigation by MPD and the FBI’s Child Exploitation Task Force led to Kelsey’s arrest. DNA analysis of evidence obtained from a medical examination of the victim also linked Kelsey to the crime.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Interim Chief Newsham commended the work of those who investigated the case from the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD’s Youth Investigations Division. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Elizabeth Trosman, Chief of the Appellate Division; Assistant U.S. Attorney Sharon Donovan; Victim/Witness Advocate Lezlie Richardson; Paralegal Specialists Joyce Arthur, Troy Griffith, and Tiffany Jones; Litigation Technology Specialists Aneela Bhatia and Anisha Bhatia, and Intern Wendy Acquazzino. Finally, they commended the work of Assistant U.S. Attorneys Andrea L. Hertzfeld and Kenya Davis, who prosecuted the case.
Deputy Attorney General Sally Q. Yates Statement on the President's Recent CommutationsRead the Press Release
Deputy Attorney General Sally Q. Yates released the following statement after President Obama granted commutation of sentence to 153 individuals:
“Today, another 153 individuals were granted commutations by the President. Over the last eight years, President Obama has given a second chance to over 1,100 inmates who have paid their debt to society. Our work is ongoing and we look forward to additional announcements from the President before the end of his term.”
Cushing Man Charged with Seaman’s ManslaughterRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Christopher A. Hutchinson, 28, of Cushing, Maine was arrested today and charged by indictment in U.S. District Court with Seaman’s Manslaughter.
According to court records, on November 1, 2014, the lobster boat, No Limits, sank off of the Maine coast resulting in the loss of two crew members. Hutchinson was the owner and captain of the boat. The indictment alleges that his negligent and unsafe operation of the boat in forecasted dangerous weather and sea conditions and after using controlled substances and alcohol caused the loss of life.
The defendant is scheduled to make an initial appearance today in U.S. District Court at 4:00 p.m. If convicted, he faces up to ten years in prison and a $250,000 fine.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
Couple Sentenced to Serve a Combined Total of over Fifty-Three Years in Federal Prison for Producing Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – On Dec. 16, 2016, Wesley Thomas Ryan, 28, of Fayetteville, Tenn., and Rachael Gabrielle Boyett, 21, of Taft, Tenn., were sentenced by the Honorable Travis R. McDonough, U.S. District Court Judge, for production of child pornography. Ryan was ordered to serve 360 months and Boyett was ordered to serve 280 months. Upon their release from prison, both will be under the supervision of the U.S. Probation Office for at least 10 years as well as be required to register as sexual offenders.
An investigation by the Federal Bureau of Investigation revealed that both Ryan and Boyett had recorded themselves and two local children engaging in sexual activity. Assistant U.S. Attorney Terra L. Bay represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Construction Companies, Senior Corporate Officers to Pay $1M to Settle False Claims Act AllegationsRead the Press Release
PROVIDENCE – United States Attorney Peter F. Neronha announced today that Rhode Island-based Rosciti Construction Corporation and Wallace Construction Corporation, together with four of the companies’ current and former owners and officers, will pay $1 million dollars to resolve civil allegations that they violated the Federal False Claims Act by submitting, or causing the submission of, claims for reimbursement for funding earmarked for minority, women-owned, or small business that they were not entitled to receive.
The federally funded contracts for roadway, water system, and parking improvements in communities throughout the state and at Rhode Island College were financed by the Environmental Protection Agency, the United States Department of Education, and the United States Department of Transportation. The contracts contained specific requirements that subcontractors on these projects must include minority-owned, women-owned, or small businesses (commonly known as “disadvantaged business enterprises”). Rosciti Construction served as the prime contractor for the projects; Wallace Construction, a sub-contractor on all of the projects hired by Rosciti, was purported to be a disadvantaged business enterprise. In fact, the government alleges that Wallace was not at the time a legitimate disadvantaged business enterprise, and lacked the capacity to perform necessary work on the projects.
Each of the four senior officers and the owners of the two firms is individually contributing to the settlement.
“Disadvantaged business enterprise requirements exist to make sure that small companies owned by women and by minorities have a fair shot to compete for, and benefit from, the economic opportunities provided by federal grants and contract dollars,” said U.S. Attorney Peter F. Neronha. “That opportunity is lost when companies manipulate the process to secure federally funded work in place of those that are legitimately deserving. This Office will continue to use all means at our disposal to ensure that contractors who receive federal dollars play by the rules,” said Neronha.
In addition to paying a $1million dollar civil settlement, Rosciti and Wallace have entered into administrative agreements with the Environmental Protection Agency to resolve potential claims that could have resulted in suspension or debarment from participation in federal contracts and programs. Additionally, under the terms of these agreements, Rosciti and Wallace will appointment internal compliance officers and a neutral, third-party external monitor to ensure compliance with disadvantaged business enterprise requirements in the future; conduct training on these issues; and take additional steps to foster and maintain a culture of compliance. The costs of both the compliance officer and the monitor will be paid for by the companies.
This matter was handled by Assistant U.S. Attorneys Zachary A. Cunha and Richard W. Rose, and was investigated by the United States Environmental Protection Agency, the United States Department of Transportation, the United States Department of Education and the United States Attorney’s Office.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Chinese National Admits to Stealing Sensitive Military Program Documents from United TechnologiesRead the Press Release
Yu Long, 38, a citizen of China and lawful permanent resident of the U.S., waived his right to be indicted and pleaded guilty today in New Haven federal court to charges related to his theft of numerous sensitive military program documents from United Technologies and transporting them to China.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Agent in Charge Patricia M. Ferrick of the New Haven Division of the Federal Bureau of Investigation, Special Agent in Charge Matthew Etre of Homeland Security Investigations (HSI) in Boston, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, and Special Agent in Charge Danielle Angley of the U.S. Air Force Office of Special Investigations.
“Long admitted to stealing and exploiting highly sensitive military technology and documents, knowing his theft would benefit China’s defense industry and deliberately contravene the embargo on U.S. Munitions List technology the United States has imposed on China,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and disrupting and prosecuting this kind of economic espionage is one of the National Security Division’s highest priorities.”
“In an effort to further his own career, this defendant stole an extraordinary amount of proprietary military program information from United Technologies and transported much of that stolen information to China,” said U.S. Attorney Deirdre M. Daly. “His actions, which he knew would benefit China, not only violated his employment agreement and damaged the company, but have threatened our country's national security interests. U.S. companies continue to be targeted by those who seek to steal intellectual property, trade secrets and advanced defense technology – whether through a computer hack or cyber intrusion, or through a rogue employee. Working closely with our nation’s defense contractors, we will relentlessly investigate and prosecute those who steal, or attempt to steal, trade secrets and sensitive military information, whether for their own personal gain or for the benefit of foreign actors.”
“This case highlights the complexity in which the FBI and law enforcement are being challenged to keep the integrity of our industry intellectual property intact,” said Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation. “Investigating criminal activity of this nature will continue to be a priority.”
“These sophisticated technologies are highly sought after by our adversaries,” said Special Agent in Charge Matthew Etre of HSI Boston. “They were developed to give the United States and its allies a distinct military advantage, which is why HSI and our law enforcement partners will continue to aggressively target the individuals who steal the ideas of others and sell these items.”
“Today’s plea demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our federal law enforcement partners to identifying those who illegally export sensitive defense information to adversarial Foreign governments,” said Craig W. Rupert, Special Agent in Charge, DCIS, Northeast Field Office. “DCIS will continue to safeguard sensitive technology and to shield America's investment in national defense by disrupting efforts of groups and individuals who try to illegally acquire our national security assets.”
“This case was enabled by the outstanding teamwork of the FBI, DCIS, HSI, AFOSI and the U.S. Attorney's office,” said Danielle Angley, Special Agent-in-Charge with the Air Force Office of Special Investigations. “In addition, it demonstrates the focus of law enforcement agencies to protect our nation's critical resources.”
According to court documents and statements made in court, from approximately May 2008 to May 2014, Long worked as a Senior Engineer/Scientist at United Technologies Research Center (UTRC) in Connecticut. Long’s employment at UTRC included work on F119 and F135 engines. The F119 engine is employed by the U.S. Air Force F-22 Raptor fighter aircraft, and the F135 engine is employed by the U.S. Air Force F-35 Lightning II fighter aircraft.
Beginning in 2013, Long expressed his intent to individuals outside UTRC to return to China to work on research projects at certain state-run universities in China using knowledge and materials he had acquired while employed at the UTRC. To that end, Long interacted with several state-run institutions in China, including the Chinese Academy of Science (CAS) and the Shenyang Institute of Automation (SIA), a state-run university in China affiliated with CAS.
During 2013 and 2014, Long was recruited by SIA and other state-run universities, during which he leveraged information that he had obtained while working at UTRC to seek employment in China, culminating in his travel to China in the possession of voluminous documents and data containing highly sensitive intellectual property, trade secrets and export controlled technology, which he had unlawfully stolen from UTRC.
In December 2013, after Long agreed in principle to join SIA, an SIA-CAS Director and an SIA-CAS Recruiter asked Long to provide documents from his work at UTRC and examples of projects on which he had worked to substantiate the claims Long made in his application, and interview with SIA. Long agreed.
On Dec. 24, 2013, Long emailed several documents to the SIA-CAS Director, including a document that contained the cover page of an export controlled UTRC presentation on Distortion Modeling dated Sept. 30, 2011.
While negotiating with SIA, Long also continued to explore other opportunities at other state-run institutions in China. In one email, Long stated: “I have made my mind to return to China, so have prepared a research plan based on my industry experience and current projects.” In the research plan, Long stated: “In the past five years, I have been working with Pratt Whitney, also other UTC business units, like UTAS (including Hamilton Sundstrand and Goodrich), Sikorsky, CCS (including Carrier and Fire & Security), and Otis. These unique working experiences have provided me a great starting point to perform R&D and further spin off business in China. I believe my efforts will help China to mature its own aircraft engines.”
On May 30, 2014, Long left UTRC. In June 2014, Long traveled to China and began working for SIA. Beginning in July 2014, digital evidence and forensic analysis indicated that Long brought with him and accessed in China a UTRC external hard drive that had been issued to him and that he unlawfully retained.
In July 2014, Long was listed as the project leader on a lengthy research plan for CAS involving fourteen other individuals. The plan was replete with references to how the proposed research and development would benefit China. The plan stated: “The three major engine companies in the world, i.e. GE, Pratt & Whitney in the US and Rolls-Royce in the UK, are all using this technology. . . Our nation lacks the ability to process high performance components, such as airplane wings, tail hooks on carrier aircrafts, and blisks . . . Because of the technology embargo imposed by western developed countries, it is very difficult for us to obtain more advanced design and manufacturing technology . . . This research project will increase our independent ability, efficiency and quality in key component manufacturing.”
On or about Aug. 12, 2014, the Document on Distortion Modeling – the same document from which Long had sent the cover page to the SIA-CAS Director on Dec. 24, 2013 – was accessed on the external hard drive. Travel records and forensic analysis confirmed that both Long and the external hard drive were in China when this file was accessed.
On Aug. 19, 2014, Long returned to the U.S. from China through John F. Kennedy International Airport in New York. During a secondary inspection screening by U.S. Customs and Border Protection (CBP) officers, Long was found in the possession of a largely completed application for work with a state-controlled aviation and aerospace research center in China. The application highlighted certain parts of Long’s work related to the F119 and F135 engines while at UTRC.
On or about Aug. 20, 2014, Long emailed an individual at a university in China, attaching an updated “achievement and future plan.” In the plan, Long discussed his work related to the F119 and F135 U.S. military fighter jet engines and stated that he also had knowledge of unpublished UTRC projects in which the U.S. Air Force had shown interest.
On Nov. 5, 2014, Long boarded a flight from Ithaca, New York to Newark Liberty International Airport in Newark, New Jersey, with a final destination of China. During Long’s layover in Newark, CBP officers inspected Long’s checked baggage and discovered that it contained sensitive, proprietary and export controlled documents from another defense contractor, Rolls Royce.
Further investigation determined that the U.S. Air Force had convened a consortium of major defense contractors, including Pratt and Rolls Royce, to work together to see whether they could collectively lower the costs of certain metals used. As part of those efforts, members of the consortium shared technical data, subject to restrictions on further dissemination. Rolls Royce reviewed the documents found in Long’s possession at Newark Liberty Airport and confirmed that it provided the documents to members of the consortium, which included Pratt. Rolls Royce further confirmed that Long was never an employee of Rolls Royce. A review of UTRC computer records indicated that Long had printed the documents while employed at UTRC.
Long was arrested on a federal criminal complaint on Nov. 7, 2014. A review of Long’s digital media seized at the time of his arrest revealed voluminous files protected by the International Traffic in Arms Regulations and Export Administration Regulations, and voluminous files proprietary to various U.S. companies. In short, the investigation revealed that Long took his laptop and the UTRC external hard drive with him to China in 2014, at which time there was a substantial body of highly sensitive, proprietary and export controlled materials present on that digital media. UTRC has confirmed that the hard drive that Long unlawfully retained and accessed in China contained not only documents and data from projects on which Long worked while employed at the company, but also from projects on which he did not work to which he would have had access.
Long pleaded guilty to one count of conspiracy to engage in the theft of trade secrets knowing that the offense would benefit a foreign government, foreign instrumentality or foreign agent, an offense that carries a maximum term of imprisonment of 15 years. He also pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act, an offense that carries a maximum term of imprisonment of 20 years.
Long, who has been detained since his arrest, will be sentenced by U.S. District Judge Robert N. Chatigny in Hartford. A sentencing date has not been scheduled.
This investigation is being led by the FBI in New Haven in coordination with Homeland Security Investigations in New Haven and Newark; the Defense Criminal Investigative Service in New Haven; the U.S. Air Force’s Office of Special Investigations in Boston, Massachusetts; and, the Department of Commerce’s Boston Office of Export Enforcement. U.S. Attorney Daly and Acting Assistant Attorney General McCord also thanked the FBI in Newark, Ithaca and Syracuse, New York, the U.S. Customs and Border Protection Service in New York and Newark, and the U.S. Attorney’s Offices for the Northern District of New York and the District of New Jersey, for their efforts and assistance in this matter.
This case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Stephen B. Reynolds of the District of Connecticut, and Trial Attorneys Brian Fleming and Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
Chinese National Admits to Stealing Sensitive Military Program Documents from United TechnologiesRead the Press Release
Yu Long, 38, a citizen of China and lawful permanent resident of the U.S., waived his right to be indicted and pleaded guilty today in New Haven federal court in Connecticut, to charges related to his theft of numerous sensitive military program documents from United Technologies and transporting them to China.
Long pleaded guilty to one count of conspiracy to engage in the theft of trade secrets knowing that the offense would benefit a foreign government, foreign instrumentality or foreign agent, an offense that carries a maximum term of imprisonment of 15 years. He also pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act, an offense that carries a maximum term of imprisonment of 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Deirdre M. Daly for the District of Connecticut, Special Agent in Charge Matthew Etre of Homeland Security Investigations (HSI) in Boston, Massachusetts, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division and Special Agent in Charge Danielle Angley with the Air Force Office of Special Investigations (AFOSI).
“Long admitted to stealing and exploiting highly sensitive military technology and documents, knowing his theft would benefit China’s defense industry and deliberately contravene the embargo on U.S. Munitions List technology the United States has imposed on China,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and disrupting and prosecuting this kind of economic espionage is one of the National Security Division’s highest priorities.”
“In an effort to further his own career, this defendant stole an extraordinary amount of proprietary military program information from United Technologies and transported much of that stolen information to China,” said U.S. Attorney Daly. “His actions, which he knew would benefit China, not only violated his employment agreement and damaged the company, but have threatened our country's national security interests. U.S. companies continue to be targeted by those who seek to steal intellectual property, trade secrets and advanced defense technology – whether through a computer hack or cyber intrusion, or through a rogue employee. Working closely with our nation’s defense contractors, we will relentlessly investigate and prosecute those who steal, or attempt to steal, trade secrets and sensitive military information, whether for their own personal gain or for the benefit of foreign actors.”
“These sophisticated technologies are highly sought after by our adversaries,” said Special Agent in Charge Etre. “They were developed to give the United States and its allies a distinct military advantage, which is why HSI and our law enforcement partners will continue to aggressively target the individuals who steal the ideas of others and sell these items.”
"Today's plea demonstrates the commitment of the Defense Criminal Investigative Service and our federal law enforcement partners to identifying those who illegally export sensitive defense information to adversarial Foreign governments," said Special Agent in Charge Rupert. "DCIS will continue to safeguard sensitive technology and to shield America's investment in national defense by disrupting efforts of groups and individuals who try to illegally acquire our national security assets."
“This case highlights the complexity in which the FBI and law enforcement are being challenged to keep the integrity of our industry intellectual property intact,” said Special Agent in Charge Ferrick. “Investigating criminal activity of this nature will continue to be a priority.”
“This case was enabled by the outstanding teamwork of the FBI, DCIS, HSI, AFOSI and the U.S. Attorney's office,” said, Special Agent in Charge Angley. “In addition, it demonstrates the focus of law enforcement agencies to protect our nation's critical resources.”
According to court documents and statements made in court, from approximately May 2008 to May 2014, Long worked as a Senior Engineer/Scientist at United Technologies Research Center (UTRC) in Connecticut. Long’s employment at UTRC included work on F119 and F135 engines. The F119 engine is employed by the U.S. Air Force F-22 Raptor fighter aircraft, and the F135 engine is employed by the U.S. Air Force F-35 Lightning II fighter aircraft.
Beginning in 2013, Long expressed his intent to individuals outside UTRC to return to China to work on research projects at certain state-run universities in China using knowledge and materials he had acquired while employed at the UTRC. To that end, Long interacted with several state-run institutions in China, including the Chinese Academy of Science (CAS) and the Shenyang Institute of Automation (SIA), a state-run university in China affiliated with CAS.
During 2013 and 2014, Long was recruited by SIA and other state-run universities, during which he leveraged information that he had obtained while working at UTRC to seek employment in China, culminating in his travel to China in the possession of voluminous documents and data containing highly sensitive intellectual property, trade secrets and export controlled technology, which he had unlawfully stolen from UTRC.
In December 2013, after Long agreed in principle to join SIA, an SIA-CAS Director and an SIA-CAS Recruiter asked Long to provide documents from his work at UTRC and examples of projects on which he had worked to substantiate the claims Long made in his application, and interview with SIA. Long agreed.
On Dec. 24, 2013, Long emailed several documents to the SIA-CAS Director, including a document that contained the cover page of an export controlled UTRC presentation on Distortion Modeling dated Sept. 30, 2011.
While negotiating with SIA, Long also continued to explore other opportunities at other state-run institutions in China. In one email, Long stated: “I have made my mind to return to China, so have prepared a research plan based on my industry experience and current projects.” In the research plan, Long stated: “In the past five years, I have been working with Pratt Whitney, also other UTC business units, like UTAS (including Hamilton Sundstrand and Goodrich), Sikorsky, CCS (including Carrier and Fire & Security), and Otis. These unique working experiences have provided me a great starting point to perform R&D and further spin off business in China. I believe my efforts will help China to mature its own aircraft engines.”
On May 30, 2014, Long left UTRC. In June 2014, Long traveled to China and began working for SIA. Beginning in July 2014, digital evidence and forensic analysis indicated that Long brought with him and accessed in China a UTRC external hard drive that had been issued to him and that he unlawfully retained.
In July 2014, Long was listed as the project leader on a lengthy research plan for CAS involving fourteen other individuals. The plan was replete with references to how the proposed research and development would benefit China. The plan stated: “The three major engine companies in the world, i.e. GE, Pratt & Whitney in the US and Rolls-Royce in the UK, are all using this technology. . . Our nation lacks the ability to process high performance components, such as airplane wings, tail hooks on carrier aircrafts, and blisks . . . Because of the technology embargo imposed by western developed countries, it is very difficult for us to obtain more advanced design and manufacturing technology . . . This research project will increase our independent ability, efficient and quality in key component manufacturing.”
On or about Aug. 12, 2014, the document on Distortion Modeling – the same document from which Long had sent the cover page to the SIA-CAS Director on Dec. 24, 2013 – was accessed on the external hard drive. Travel records and forensic analysis confirmed that both Long and the external hard drive were in China when this file was accessed.
On Aug. 19, 2014, Long returned to the U.S. from China through John F. Kennedy International Airport in New York. During a secondary inspection screening by U.S. Customs and Border Protection (CBP) officers, Long was found in the possession of a largely completed application for work with a state-controlled aviation and aerospace research center in China. The application highlighted certain parts of Long’s work related to the F119 and F135 engines while at UTRC.
On or about Aug. 20, 2014, Long emailed an individual at a university in China, attaching an updated “achievement and future plan.” In the plan, Long discussed his work related to the F119 and F135 U.S. military fighter jet engines and stated that he also had knowledge of unpublished UTRC projects in which the U.S. Air Force had shown interest.
On Nov. 5, 2014, Long boarded a flight from Ithaca, New York to Newark Liberty International Airport in Newark, New Jersey, with a final destination of China. During Long’s layover in Newark, CBP officers inspected Long’s checked baggage and discovered that it contained sensitive, proprietary and export controlled documents from another defense contractor, Rolls Royce.
Further investigation determined that the U.S. Air Force had convened a consortium of major defense contractors, including Pratt and Rolls Royce, to work together to see whether they could collectively lower the costs of certain metals used. As part of those efforts, members of the consortium shared technical data, subject to restrictions on further dissemination. Rolls Royce reviewed the documents found in Long’s possession at Newark Liberty Airport and confirmed that it provided the documents to members of the consortium, which included Pratt. Rolls Royce further confirmed that Long was never an employee of Rolls Royce. A review of UTRC computer records indicated that Long had printed the documents while employed at UTRC.
Long was arrested on a federal criminal complaint on Nov. 7, 2014. A review of Long’s digital media seized at the time of his arrest revealed voluminous files protected by the International Traffic in Arms Regulations and Export Administration Regulations, and voluminous files proprietary to various U.S. companies. In short, the investigation revealed that Long took his laptop and the UTRC external hard drive with him to China in 2014, at which time there was a substantial body of highly sensitive, proprietary and export controlled materials present on that digital media. UTRC has confirmed that the hard drive that Long unlawfully retained and accessed in China contained not only documents and data from projects on which Long worked while employed at the company but also from projects on which he did not work to which he would have had access.
A sentencing date has not been set. Long has been detained since his arrest.
This investigation is being led by the FBI in New Haven in coordination with Homeland Security Investigations in New Haven and Newark; the Defense Criminal Investigative Service in New Haven; the U.S. Air Force’s Office of Special Investigations in Boston, Massachusetts; and, the Department of Commerce’s Boston Office of Export Enforcement. U.S. Attorney Daly and Acting Assistant Attorney General McCord also thanked the FBI in Newark, Ithaca and Syracuse, New York, the U.S. Customs and Border Protection Service in New York and Newark, and the U.S. Attorney’s Offices for the Northern District of New York and the District of New Jersey, for their efforts and assistance in this matter.
This case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Stephen B. Reynolds of the District of Connecticut, and Trial Attorneys Brian Fleming and Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.Charleston man sentenced to federal prison for role in drug conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Charleston man who participated in a multistate drug ring was sentenced today to a year and a half in federal prison, announced United States Attorney Carol Casto. Matthew Michael Meadows, 31, previously pleaded guilty to conspiracy to distribute heroin.
From the summer of 2014 to March 2016, Meadows conspired with codefendant Corey Bruce Toney and other individuals to distribute heroin in the Huntington and Charleston areas. Meadows frequently met with Toney at various locations in Huntington and received quantities of heroin ranging from five grams to an ounce. Meadows would subsequently distribute the heroin in the Charleston area and then return the proceeds back to Toney.
Toney pleaded guilty in September 2016 to distributing heroin. Toney admitted that he conspired with others to distribute large quantities of drugs that were transported from California and Michigan to Huntington, including heroin, crack, marijuana, and Xanax.
This prosecution arose out of a long-term investigation led by the Drug Enforcement Administration, with assistance from the West Virginia State Police, the Putnam County Sheriff’s Department, the Huntington Police Department, the Huntington FBI Drug Task Force, the Ohio Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service.
Nine additional defendants have been convicted for their roles in this drug ring. In addition to Toney, Atari Seantay Brown, Parker Wyatt Mays, Sean Lee Braggs, Samuel E. Nelson, III, Tanisha Lynette Wooding, Deandra Sheen Jones, and Roy Bills have all pleaded guilty to federal drug charges and are awaiting sentencing. Arthur James Canada was previously sentenced to 46 months in federal prison for his role in the conspiracy.
Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences and is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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