Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 19 October 2016
U.S. Supreme Court Justice Breyer Addresses Latin American Judges at Justice Department’s Judicial Studies InstituteRead the Press Release
Today, U.S. Supreme Court Justice Stephen Breyer addressed 32 judges from Colombia, the Dominican Republic, El Salvador, Mexico, Panama and Peru as part of a Department of Justice training program at the Judicial Studies Institute (JSI) in San Juan, Puerto Rico, for the judiciaries of the Western Hemisphere.
Justice Breyer stressed the importance of their contribution to rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice. Justice Breyer also met separately with a special delegation from Mexico that included a Supreme Court Justice, with whom he discussed their country’s ongoing justice reform.
Through Spanish instruction, practical exercises and opportunities to observe courtroom proceedings, judges who participated in the JSI program learned about evidentiary guidelines, the role of judges and courtroom management in an accusatorial justice system. This capacity building is critical to the region as judges’ roles are drastically different from those in an inquisitorial system, where judges decide cases based on paper files behind closed doors. In an accusatorial system, judges are responsible for writing opinions, weighing evidence and guaranteeing the rights of both the victims and the accused, all in an open courtroom setting.
With the support of U.S. Supreme Court Justice Sonia Sotomayor, and in partnership with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Justice Department’s Office of Prosecutorial Development Assistance and Training (OPDAT) launched JSI in 2012 as a response to the wave of justice sector reforms in Latin America that saw many countries transition to an accusatorial system. Since that time, OPDAT, with its partners at the University of Puerto Rico and Inter-American University law schools, has hosted over 500 Latin American judges.
Please visit https://www.supremecourt.gov/ for more information about the U.S. Supreme Court and https://www.justice.gov/criminal-opdat for more information about OPDAT’s capacity-building efforts around the world.
U.S. Attorney Gregory K. Davis Announces Student Pledge Against Gun ViolenceRead the Press Release
Jackson, Miss – U.S. Attorney Gregory K. Davis announced today that members of the U.S. Attorney’s Office for the Southern District of Mississippi and their law enforcement partners met with students at three Jackson middle schools as part of his office’s annual Student Pledge Against Gun Violence.
Today, middle school students at Peeples Middle School, Whitten Preparatory School, and Siwell Middle School took a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. The pledge was administered by U.S. Magistrate Judge Linda Anderson and Hinds County Circuit Court Judge Winston Kidd.
Before taking the pledge, the students heard presentations from U.S. Attorney Gregory Davis, Jackson Police Chief Lee Vance, Sheriff Victor Mason, Assistant Special Agent in Charge Chris Reed with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Assistant Special Agent in Charge Daniel Comeaux with the Drug Enforcement Administration.
The Student Pledge Against Gun Violence is a national initiative that honors the role that young people, through their own decisions, can play in reducing gun violence. Held in conjunction with the Day of National Concern about Young People and Gun Violence, the initiative provides a means for teachers and community leaders to speak to young people about gun violence. Over 10 million students nationwide have taken the pledge since its inception in 1996.
"Our office is pleased to once again take this opportunity to reach out to local students to engage in a dialogue about gun violence and the importance of making good choices," said U.S. Attorney Gregory K. Davis.
The U.S. Attorney’s Office will continue to coordinate with community leaders and law enforcement agencies to provide speakers at schools to talk to students about what they can do to reduce gun violence in their communities.
If your school is interested in participating in the Student Pledge Against Gun Violence, please contact Sheila Wilbanks at [email protected].
Two Rockford Men Arrested on Drug Trafficking ChargesRead the Press Release
ROCKFORD — Two Rockford men were arrested today on federal drug trafficking charges.
QUINCY L. ATMORE, 44, and MAURICE D. NEAL, 34, both of Rockford, are charged in an eight-count indictment returned by a federal grand jury in Rockford. Both men were charged with conspiracy to distribute a kilogram or more of heroin, in addition to charges of distributing heroin in Rockford from October 2015 through September 2016.
Atmore appeared today for arraignment in federal court in Rockford before U.S. Magistrate Judge Iain D. Johnston. He remains in custody pending a detention hearing scheduled for Oct. 24, 2016, at 3:30 p.m.
Neal will appear for arraignment on Oct. 20, 2016, at 9:30 a.m., before Judge Johnston.
The drug conspiracy charge carries a ten-year mandatory minimum sentence, a maximum potential penalty of up to life in federal prison, and a maximum fine of up to $10 million. Each count of distribution of heroin carries a maximum potential penalty of up to 20 years in prison, and a maximum fine of up to $1 million.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The arrests were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis Wichern, Special Agent in Charge of the Chicago Office of the Drug Enforcement Administration; and Leo P. Schmitz, Director of the Illinois State Police. The case was investigated by the Rockford Resident Agency of the Drug Enforcement Administration’s Chicago Field Office, and the Stateline Area Narcotics Team ("SLANT"), a task force led by the Illinois State Police. The Bureau of Alcohol, Tobacco, Firearms & Explosives, the Federal Bureau of Investigation, the Winnebago County Sheriff’s Department, and the Rockford Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
IndictmentThree Defendants Convicted of Orchestrating Stolen Identity Tax Fraud SchemeRead the Press Release
Following a seven-day trial before United States District Court Judge Donald L. Graham, a jury convicted three defendants for their participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Wolf Obin, 32, and Stanley Moscova, 28, both of Miami-Dade, and Rosny Muller, 29, of Broward County, were convicted of one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3). Obin and Moscova were also convicted of three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing for the defendants is scheduled for January 4, 2017, before Judge Donald L. Graham. At sentencing for their respective convictions, the defendants face up to ten years in prison for each of the conspiracy and access device charges, and two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.
According to evidence presented at trial, beginning in October 2011, Obin, Moscova, and Muller fraudulently obtained Electronic Filing Identification Numbers (EFINs) in the names of other individuals who acted as “straw” EFIN holders which allowed the defendants to submit tax returns in the names of other individuals. The defendants then used those EFINs, as well as EFINs in their own names, to file fraudulent federal income tax returns with the IRS using the stolen personal identifying information (PII) of other individuals without their knowledge and authority. During a search warrant of the defendants’ Aventura apartment, law enforcement discovered the PII of more than 1,600 individuals. Through their tax filings, the defendants claimed approximately $2,300,000 in fraudulent federal tax refunds from the IRS.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department. The case is being prosecuted by Assistant U.S. Attorneys Matthew J. Langley and Luis M. Perez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Third Defendant in North Idaho Drug Trafficking Organization Pleads GuiltyRead the Press Release
COEUR D'ALENE – Augustine Jackson, 32, of Williston, North Dakota, pleaded guilty yesterday to conspiracy to distribute heroin, oxycodone and methamphetamine, U.S. Attorney Wendy J. Olson announced. Jackson was indicted by a federal grand Jury in Coeur d'Alene on April 19, 2016.
During the court hearing, Jackson admitted that she was part of a drug trafficking organization. The organization sold heroin, oxycodone and methamphetamine in Idaho, Montana, North Dakota and Eastern Washington. Jackson helped the organization by selling and transporting controlled substances and by making sure the profits went to the appropriate co-conspirator. In addition to pleading guilty, Jackson agreed to forfeit any interest she has in real property, jewelry or cash held by herself or by conspirators as outlined in the indictment.
In addition to Jackson, two other co-defendants have pleaded guilty. Geena Lauren Milho, 25, of Williston, North Dakota pleaded guilty on September 14, 2016, to conspiracy to distribute heroin, oxycodone and methamphetamine. Milho will be sentenced on January 18, 2017. Sherlann Simon, 34, of North Las Vegas, Nevada, pleaded guilty on October 11, 2016, to conspiracy to launder money. Simon will be sentenced on January 19, 2017.
The charge of conspiracy to distribute controlled substance is punishable by up to 20 years in prison, a maximum fine of $1,000,000, and at least 3 years supervised release.
Sentencing is set for March 7, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by CDA Police, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Internal Revenue Service, Criminal Investigations (IRS-CI), Kootenai County Sheriff, North Idaho Violent Crimes Task Force (NIVCTF), and U.S. Customs and Border Protection.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service. The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Third Chicago woman sentenced for credit card fraudRead the Press Release
CHARLESTON, W.Va. – A Chicago woman was sentenced today to five years of probation, with the first eight months to be served on home confinement, for credit card fraud, announced United States Attorney Carol Casto. Crystal Merritt, 29, previously entered her guilty plea to possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered so that it contains stolen information that has been re-encoded on the magnetic strip on the back of the card.
Merritt admitted that she, along with three codefendants, Wynesha Wilson-Robinson, Christine Johnson, and Stephanie Stevenson, possessed over 100 counterfeit access devices. Merritt, along with the other codefendants, drove from Chicago to attempt to use these credit cards. On June 5, 2015, they were observed at the South Charleston Target and Walmart attempting to use the counterfeit cards. The four were arrested by law enforcement after store employees became suspicious of the multiple attempts to use credit cards to complete a purchase.
The South Charleston Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
One remaining codefendant is awaiting sentencing. Stephanie Stevenson is scheduled to be sentenced on November 3, 2016. Wilson-Robsinson was sentenced in August 2016 to five months in federal prison, to be followed by five years of probation. Wilson-Robinson was further ordered to serve the first five months of her probation on home confinement. Johnson was sentenced on October 3, 2016, to six months of home confinement, to be followed by three years of probation.
- Follow us on Twitter: SDWVNews
Texas Man Sentenced to 10 Years in Prison for Attempting to Arrange Sex with a MinorRead the Press Release
PITTSBURGH - A former resident of Arlington, Texas, has been sentenced in federal court to 120 months imprisonment, followed by 10 years of supervised release, on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Ray Wickliffe Howland, 57, of Arlington, Texas.
According to information presented to the court, the court was advised that on or about June 25, 2015, Howland used facilities and means of interstate and foreign commerce, specifically a computer, an iPad, the internet and the telephone, to knowingly attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Office of the Pennsylvania Attorney General and the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Howland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Taney County Business Owner Sentenced for Failure to Pay $500,000 in Payroll TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Taney County, Mo., business owner has been sentenced in federal court for failing to pay over more than $500,000 in taxes he withheld from his employees’ paychecks.
Carl Justin Gage, 42, of Ridgedale, Mo., was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, Oct. 18, 2016, to a year and a day in federal prison without parole. The court also ordered Gage to pay $627,000 in restitution.
On Jan. 15, 2016, Gage pleaded guilty to the willful failure to pay over taxes.
Gage owned and operated multiple businesses in Taney County, including Eagle Construction and Excavating, LLC, Gage Excavating, LLC, Gage Family Entertainment, LLC, and Hollister Pizza Company, LLC. Based on his theft of the employee taxes from those businesses (including the employer’s matching portions), Gage embezzled approximately $503,000 (which does not include statutory interest owed) from 2008 to 2011.
Gage admitted he was aware of these requirements and willfully did not pay over the tax even though he withheld the taxes from the employees’ paychecks. Gage hired a bookkeeper to manage the finances of his businesses, including the payroll and preparation of payroll tax returns. The bookkeeper notified Gage of the payroll tax due and owning, but Gage willfully made the decision each quarter to not pay over the taxes withheld from his employees’ paychecks to the Internal Revenue Service.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FDIC Office of Inpsector General and IRS-Criminal Investigation.
South Suburban Man Charged with Transporting a Minor from Illinois to Wisconsin to Engage in ProstitutionRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a south suburban man on sex trafficking charges for allegedly bringing a minor to Wisconsin to engage in prostitution.
DERONARTE NORWOOD, 30, of Harvey, forced the minor to engage in a commercial sex act, according to the indictment. In May 2015 he brought the minor to Wisconsin from Illinois for the purpose of engaging in prostitution, the indictment states.
Norwood was arrested last night in Waukegan. He pleaded not guilty during an arraignment in Chicago this afternoon before U.S. Magistrate Judge Mary M. Rowland. Judge Rowland ordered Norwood held in custody until a detention hearing on Oct. 24, 2016, at 2:00 p.m.
The two-count indictment charges Norwood with sex trafficking and knowingly transporting a minor to engage in prostitution. Both counts are punishable by a maximum sentence of life in prison.
The indictment 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. Substantial assistance was provided by the Lake County Gang Task Force, a multi-jurisdictional task force with federal and local law enforcement members.
The government is represented by Assistant U.S. Attorneys Nicole M. Kim and Abigail Peluso.
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. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, 7 days a week.
IndictmentShreveport optometrist sentenced to six months in prison for illegally writing prescriptionsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport optometrist was sentenced Monday to six months in prison for writing prescriptions for non-patients and non-medical purposes.
Charles D. Shanks, 64, of Shreveport, was sentenced by U.S. District Judge Donald E. Walter on one count of distributing or dispensing a controlled substance. He was also sentenced to three years of supervised release. According to the September 14, 2015 guilty plea, Shanks wrote dozens of prescriptions for codeine and hydrocodone in 2012 and 2013 from pharmacies and wholesale distributors that were for non-patients and not for valid medical purposes.
The DEA conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Second Orange County Man Who Participated in Conspiracy to Provide Support to ISIL Sentenced to 30 Years in Federal PrisonRead the Press Release
SANTA ANA, California – An Orange County man was sentenced this afternoon to 30 years in federal prison for conspiring with another man to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Muhanad Elfatih M.A. Badawi, 25, of Anaheim, was sentenced by United States District Judge David O. Carter, who called the defendant “extraordinarily dangerous.”
At the conclusion of a trial in June, Badawi was found guilty of conspiring with another man to provide material support to a foreign terrorist organization, as well as aiding and abetting his codefendant’s attempt to provide support to ISIL, and federal financial aid fraud designed to generate funds for the scheme.
Three weeks ago, Judge Carter sentenced Badawi’s codefendant – Nader Elhuzayel, 25, also of Anaheim – to 30 years in prison.
“Defendant Badawi was a radicalizer, recruiter and facilitator, and like codefendant Elhuzauyel, defendant Badawi aspired to die a martyr fighting jihad for ISIL,” prosecutors wrote in a sentencing memorandum filed with the court.
“The lengthy sentence imposed today results from the defendant’s acceptance of ISIL’s murderous ideology and his participation in a scheme designed to betray the United States,” said United States Attorney Eileen M. Decker. “Badawi and Elhuzayel wanted to fight for ISIL, desired to become so-called martyrs, and supported ISIL’s terrorist activities. Prosecutions such as this are critically important to our national security.”
The evidence at trial showed Badawi and Elhuzayel used social media to discuss ISIL and terrorist attacks, repeatedly expressed support for ISIL, and made arrangements for Elhuzayel to leave the United States to join the terrorist organization. In recorded conversations, Elhuzayel and Badawi discussed how “it would be a blessing to fight for the cause of Allah, and to die in the battlefield,” and they referred to ISIL as “we.” Badawi maintained a Facebook account, on which he made posts that supported ISIL and violence aimed at non-Muslims. Badawi used social media to communicate with ISIL supporters to distribute pro-ISIL propaganda.
According to the trial exhibits, on October 21, 2014, defendant Badawi made a video of defendant Elhuzayel swearing allegiance to the leader of ISIS and pledging to travel to join ISIS to be a fighter for the organization.
Badawi and Elhuzayel were arrested on May 21, 2015, as Elhuzayel attempted to board a plane at Los Angeles International Airport to travel to Turkey to join ISIL. Badawi had purchased Elhuzayel’s one-way ticket on Turkish Airlines for Elhuzayel to travel to Israel, with a layover in Istanbul. In an interview with the FBI, Elhuzayel admitted that he intended to deplane in Turkey and seek contacts to facilitate joining ISIL.
“The defendant, like his co-conspirator, pledged his allegiance to a terrorist organization instead of the United States, as he attempted to recruit and radicalize others to support the group, which calls for the murder of Americans,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Office. “The investigative efforts by Joint Terrorism Task Force partners are commendable and the significant sentence the defendant received illustrates the gravity of this crime and the threat the defendants posed to the United States.”
Badawi and Elhuzayel have been held in federal custody without bond since their arrests.
“With this sentence, Muhanad Badawi is being held accountable for conspiring to provide material support to ISIL and other federal offenses,” said Acting Assistant Attorney General for National Security Mary B. McCord. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who conspire to provide material support to designated foreign terrorist organizations.”
The investigation in this case was conducted by the FBI’s Joint Terrorism Task Force in Orange County, which includes the Anaheim Police Department, the California Highway Patrol, the Orange County Sheriff’s Department, the Orange County Intelligence Assessment Center, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Secret Service, IRS Criminal Investigation, the City of Orange Police Department, the Irvine Police Department, the Naval Criminal Investigative Service, the Orange County Regional Computer Forensics Laboratory, the United States Attorney’s Office, and the Federal Bureau of Investigation.
The Department of Education’s Office of Inspector General provided significant assistance in the investigation and at trial.
This case was prosecuted by Assistant United States Attorneys Judith A. Heinz and Deirdre Z. Eliot of the Terrorism and Export Crimes Section, and Julius J. Nam of the General Crimes Section. Trial Attorney Michael Dittoe of the Justice Department’s Counterterrorism Section provided substantial assistance.
Second California Man Who Participated in Conspiracy to Provide Support to ISIL Sentenced to 30 Years in Federal PrisonRead the Press Release
Muhanad Elfatih M.A. Badawi, 25, of Anaheim, California, was sentenced to 30 years in federal prison for conspiring with another man to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Eileen M. Decker of the Central District of California and Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Office. The sentence was issued by U.S. District Judge David O. Carter.
At the conclusion of a trial in June, Badawi was found guilty of conspiring with another man to provide material support to a foreign terrorist organization, as well as aiding and abetting his codefendant’s attempt to provide support to ISIL, and for federal financial aid fraud designed to generate funds for the scheme.
Three weeks ago, Judge Carter sentenced Badawi’s codefendant – Nader Elhuzayel, 25, also of Anaheim, California – to 30 years in prison.
“Defendant Badawi was a radicalizer, recruiter and facilitator, and like codefendant Elhuzauyel, defendant Badawi aspired to die a martyr fighting jihad for ISIL,” prosecutors wrote in a sentencing memorandum filed with the court.
“With this sentence, Muhanad Badawi is being held accountable for conspiring to provide material support to ISIL and other federal offenses,” said Acting Assistant Attorney General McCord. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who conspire to provide material support to designated foreign terrorist organizations.”
“The lengthy sentence imposed today results from the defendant’s acceptance of ISIL’s murderous ideology and his participation in a scheme designed to betray the United States,” said U.S. Attorney Decker. “Badawi and Elhuzayel wanted to fight for ISIL, desired to become so-called martyrs, and supported ISIL’s terrorist activities. Prosecutions such as this are critically important to our national security.”
“The defendant, like his co-conspirator, pledged his allegiance to a terrorist organization instead of the United States, as he attempted to recruit and radicalize others to support the group, which calls for the murder of Americans,” said Assistant Director in Charge Fike. “The investigative efforts by Joint Terrorism Task Force partners are commendable and the significant sentence the defendant received illustrates the gravity of this crime and the threat the defendants posed to the United States.”
The evidence at trial showed Elhuzayel and Badawi used social media to discuss ISIL and terrorist attacks, repeatedly expressed support for ISIL and made arrangements for Elhuzayel to leave the U.S. to join the terrorist organization. In recorded conversations, Elhuzayel and Badawi discussed how “it would be a blessing to fight for the cause of Allah, and to die in the battlefield,” and they referred to ISIL as “we.” Badawi maintained a Facebook account on which he made posts that supported ISIL and violence aimed at non-Muslims. Badawi used social media to communicate with ISIL supporters to distribute pro-ISIL propaganda.
According to the trial exhibits, on Oct. 21, 2014, Badawi made a video of Elhuzayel swearing allegiance to the leader of ISIS and pledging to travel to join ISIS to be a fighter for the organization.
Badawi and Elhuzayel were arrested on May 21, 2015, as Elhuzayel attempted to board a plane at Los Angeles International Airport in California to travel to Turkey to join ISIL. Badawi purchased Elhuzayel’s one-way ticket on Turkish Airlines for Elhuzayel to travel to Israel, with a layover in Istanbul, Turkey. In an interview with the FBI, Elhuzayel admitted that he intended to deplane in Turkey and seek contacts to facilitate joining ISIL.
Badawi and Elhuzayel have been held in federal custody without bond since their arrests.
The investigation in this case was conducted by the FBI’s Joint Terrorism Task Force in Orange County, which includes the Anaheim Police Department, the California Highway Patrol, the Orange County Sheriff’s Department, the Orange County Intelligence Assessment Center, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Secret Service, IRS Criminal Investigation, the City of Orange Police Department, the Irvine Police Department, the Naval Criminal Investigative Service, the Orange County Regional Computer Forensics Laboratory, the U.S. Attorney’s Office and the FBI. The Department of Education’s Office of Inspector General provided significant assistance in the investigation and at trial.
This case was prosecuted by Assistant U.S. Attorneys Judith A. Heinz and Deirdre Z. Eliot of the Terrorism and Export Crimes Section, and Julius J. Nam of the General Crimes Section. Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section provided substantial assistance.
Scranton Man and Virginia Man Plead Guilty to Firearms Charge in Connection with Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Scranton man and a Virginia man pleaded guilty in United States District Court in Scranton on October 18, 2016, before United States District Judge Malachy E. Mannion, to a firearms charge filed in connection with the armed robbery of the Econo Lodge located on Kane Street in Scranton, which occurred on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Rodney Whiting, age 23, of Scranton, and Tracy Whiting, age 24, of Newport News, Virginia, admitted to the charge of brandishing a firearm in furtherance of a crime of violence. Rodney Whiting and Tracy Whiting, along with Kelvin Robinson, age 24, also of Newport News, Virginia, and Kwa’shon Roane, age 24, of Gloucester, Virginia, were indicted by a grand jury in March 2016 for the armed robbery of the Econo Lodge.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office and numerous local law enforcement agencies, including the Taylor Borough and Moosic Borough Police Departments. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Kelvin Robinson previously pleaded guilty on October 5, 2016, to the charge of brandishing a firearm in furtherance of a crime of violence and is awaiting sentencing.
The charges against Kwa’shon Roane are still pending.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Rodney Whiting and Tracy Whiting each face a mandatory penalty of at least seven years in prison for the charge of brandishing a firearm in furtherance of a crime of violence.
The maximum penalty under federal law is up to life in prison, a term of supervised release following imprisonment and a fine. According to the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Remon Daniel Sentenced to 41 Months for Defrauding Produce Vendors of Millions of Dollars Worth of Fruits and VegetablesRead the Press Release
SAN JOSE – Remon Issa Daniel was sentenced in federal court this morning to 41 months’ imprisonment for his scheme to defraud produce vendors, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Over a two-year period, Daniel obtained more than $2 million of produce from almost 40 vendors by pretending to be employed by reputable produce companies and ordering loads of fruits and vegetables on credit, when he knew he did not have the funds to pay for the goods and had no intention of paying for them.
On July 7, 2016, Daniel, 35, of Redwood City, pleaded guilty to wire fraud and admitted that between 2014 and his arrest on February 25, 2016, he defrauded at least 38 different businesses in an effort to obtain approximately $2 million worth of fruits and vegetables. Daniel ordered produce primarily from companies in California, Arizona, and Texas, and usually claimed to be from Bay Produce, New San Jose Wholesale, or General Produce, each a genuine produce wholesaler in Northern California. In fact, Daniel had no association with any of these companies. Daniel admitted to sending some of the vendors a copy of a deposit slip as proof that he had made a payment for the product. Only after the vendor released the produce to Daniel, did the vendor learn that the deposited check was returned for insufficient funds. Daniel was indicted by a grand jury on March 10, 2016, and was charged with 14 counts of wire fraud, in violation of 18 U.S.C. § 1343. Pursuant to his plea agreement, Daniel pleaded guilty to three of the counts in the indictment and the remaining counts were dismissed.
The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge. In addition to the prison term, Judge Koh ordered Daniel to pay $1,696,445.70 in restitution to his victims and to serve three years of supervised release. Daniel is currently in custody and will begin serving his sentence immediately.
Assistant U.S. Attorney Amber Rosen prosecuted the case with the assistance of Susan Kreider, Yolanda Singletary, and Nina Williams. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Pittsburgh Man Pleads Guilty to Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Pittsburgh, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Warren Charles Green, IV, 30, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Apr. 5, 2013, Green possessed with the intent to distribute one kilogram or more of heroin.
Judge Gibson scheduled sentencing for Feb. 28, 2017, at 1:30 p.m. The law provides for a maximum total sentence of life in prison and a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Somerset Turnpike Barracks, and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Green.
Pine Ridge Shooting DeathsRead the Press Release
United States Attorney Randolph J. Seiler announced today that federal authorities are investigating two fatal shootings which recently occurred on the Pine Ridge Reservation in South Dakota.
The United States Attorney’s Office, the Rapid City Resident Agency of the Federal Bureau of Investigation, and the Bureau of Indian Affairs, Office of Justice Services, Pine Ridge Agency, are investigating the September 29, 2016, fatal shooting of Chunta Suta Wi Colhoff, aka Annie Colhoff, a 34-year-old citizen of the Pine Ridge Reservation. Ms. Colhoff was shot and killed in Pine Ridge village. The agencies are also investigating the October 16, 2016, shooting death of Vincent Brewer, III, age 29, outside Pine Ridge village.
Authorities do not believe these shootings were random acts, but stem from disputes law enforcement authorities are investigating. Leads are being followed, persons are being interviewed, and search warrants are being executed. Seiler affirmed the investigation of these two shootings is a top priority for federal law enforcement authorities in South Dakota.
Authorities appreciate any and all assistance members of the community might be able to provide.
Members of the public wishing to provide information should call the BIA Office of Justice Services at (605) 867-2931, tribal dispatch at 911, or the FBI in Rapid City at (605) 343-9632.
If a member of the public wishes to remain anonymous, you may also contact the BIA OJS Tip line at 1-888-668-0661.
Phoenix Woman Sentenced to over 12 Months for Failure to Pay Taxes and WagesRead the Press Release
PHOENIX – On Oct. 17, 2016, Ismary Diaz, 56, of Phoenix, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 12 months and 1 day of imprisonment. Diaz had previously pleaded guilty to willful failure to collect or pay tax and failure to pay minimum wage.
Diaz, from at least 2009 through March, 2013, failed to file accurate tax returns, in order to hide the fact that she was illegally employing undocumented aliens in her five Phoenix area restaurants. Diaz also failed to pay her employees the federal minimum wage required by law. Diaz failed to pay over $288,000 in taxes and over $89,000 in wages.
The investigation in this case was conducted by a collaborative team consisting of multiple agencies, including IRS-CI, DOL, HSI, FBI and the Phoenix Police Department. The prosecution was handled by Monica Edelstein and Robert Brooks, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-455-PHX-DLR
RELEASE NUMBER: 2016-091_Diaz
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Parker Man Pleads Guilty to Money Laundering in Connection with Stock Trading SchemeRead the Press Release
DENVER – Corey Earl Engelen, age 47, of Parker, Colorado pled guilty last week before U.S. District Court Judge Christine M. Arguello to money laundering announced Acting United States Attorney Robert C. Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Engelen and his co-defendant Michael Todd Osborn were indicted by a federal grand jury in Denver on February 11, 2015. Engelen is scheduled to be sentenced by Judge Arguello on January 31, 2017.
According to the indictment and plea agreement, Engelen and Osborn were introduced to each other in approximately July 2009. Beginning immediately, Engelen began assisting Osborn by finding and providing funds to pay his bail bondsman on charges in cases unrelated to the crimes charged in the District of Colorado. In October, the two stayed for an extended period in a California hotel. During that time, Engelen helped pay Osborn’s living expenses and began the process of finding an off-shore trust for their future use.
Meanwhile, Osborn developed a scheme to defraud investors. He falsely represented to them that he would use their funds to trade stocks on their behalf. Beginning in December 2009, Osborn instructed investors to wire their funds to accounts held in the name of Infinite One, LLC, which he represented to be the trading accounts he would use for the trades. In fact, the accounts were not trading accounts and were never used for trading. They were merely checking accounts opened and held by Engelen. All of the investors’ funds, $695,000, were deposited directly to Engelen’s Infinite One, LLC accounts, and the investors got nothing in return.
Engelen and Osborn used investors’ funds for their own personal benefit. Engelen used his share of the funds to make his home mortgage and car payments, to cover his day-to-day living expenses, and to travel to Europe and Africa. In June 2010, Engelen engaged in monetary transactions using the investors’ funds, knowing that the funds were the proceeds of some criminal activity. The funds he used were in fact the proceeds of Osborn’s wire fraud. Engelen admitted that on June 2, 2009, when he wired $44,915.76 from the Infinite One account to the account of Dream Motor Cars for the purchase of a Mercedes Benz for Osborn, he chose to avoid learning about what Osborn was actually doing to acquire those funds, and committed the felony offense of engaging in a monetary transaction in property derived from specified unlawful activity, wire fraud.
“If you buy luxury cars with money you know is criminal proceeds, you are laundering money, and we will prosecute you for it,” said Acting U.S. Attorney Bob Troyer.
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Steven Osborne, IRS Criminal Investigation, Special Agent in Charge, Denver Field Office. "IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime."
Engelen pled guilty to one count of money laundering which carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000. Osborn pled guilty on February 9, 2016 to wire fraud and money laundering and is scheduled to be sentenced by Judge Arguello on December 1, 2016.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service. This case is being prosecuted by Assistant U.S. Attorneys Linda Kaufman and Bishop Grewell.
Oklahoma City Daycare Worker and Babysitter Sentenced to 30 Years for Producing Child PornographyRead the Press Release
Oklahoma City, Oklahoma – JASON MARC JANATSCH, 26, of Oklahoma City, was sentenced today to 30 years’ imprisonment for producing child pornography depicting an approximately 18-month-old toddler whom he babysat, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to court records, in September 2015, undercover Homeland Security Investigations (HSI) agents downloaded child pornography via Kik, a smartphone instant messaging application, from a man in Christchurch, New Zealand. After New Zealand authorities located the man, forensic analysis of his Kik account revealed that he had exchanged child pornography with a Kik user with the screen name "TheLoverOfTheLittle." HSI agents in the United States traced this Kik screen name to Janatsch, who worked at an Oklahoma City daycare center. Janatsch also freelanced as a babysitter who advertised his services on www.sitter.com and www.care.com.
Janatsch was indicted by a federal grand jury on January 6, 2016. During the plea hearing on February 29, 2016, before United States District Judge Stephen P. Friot, Janatsch admitted that on June 11, 2015, he used a female toddler whom he was babysitting to engage in sexually explicit conduct and took photographs with his iPhone. Janatsch had used an online babysitting service to gain access to the child. Then Janatsch, using his iPhone, transmitted the photographs to the New Zealand man. According to court records, he also received child pornography from the New Zealand man in return. In sentencing Janatsch, Judge Friot took into consideration evidence that he had also molested a three-year-old girl on a previous occasion and had performed Google searches using queries such as "having sex with a special needs child" and "how do I adopt a baby."
After serving his sentence, Janatsch will be required to register as a sex offender and will be on supervised release for life. The court also ordered Janatsch to pay a $5,000 special assessment under the Justice For Victims of Trafficking Act of 2015.
This case is the result of an investigation by Homeland Security Investigations and the New Zealand Police Online Child Exploitation Across New Zealand team. The case was prosecuted by Assistant U.S. Attorney Brandon Hale, Project Safe Childhood Coordinator.
Ohio Couple Sentenced for Tax EvasionRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that owners of a cemetery business in Pennsylvania and Ohio were sentenced October 18, 2016 by United States District Court Judge John E. Jones, III in Harrisburg for tax evasion charges.
Judge Jones sentenced both Theodore Martin, age 51, and his wife, Arminda Martin, age 44, both of Ravenna, Ohio (formerly of York County, Pennsylvania), to one year and one day in federal prison. Judge Jones also ordered the Martins to pay the Internal Revenue Service restitution in the amount of $304,837.
According to United States Attorney Bruce D. Brandler, Theodore and Arminda Martin operated three cemeteries, including Suburban Memorial Gardens in Dover, Pennsylvania, and Grandview Memorial Park and Fairview Memorial Park in Ohio. The Martins failed to report to the Internal Revenue Service $786,533 they received from the operations of the cemeteries located in Ohio during the years 2008, 2009, 2010 and 2011.
The investigation was conducted by the Internal Revenue Service, Criminal Investigations and prosecuted by Assistant U.S. Attorney Joseph J. Terz.
# # #
October Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 13 indictments charging 14 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Miguel Contreras-Mariscal , age 39, of Hastings, Nebraska, is charged with illegal reentry after deportation on or about October 6, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ronald Frazier, age 35, of Winnebago, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with assault of an Intimate Partner and Dating Partner by attempted strangulation and suffocation on or about the July 6, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Frazier with Domestic Assault by a Habitual Offender on or about July 6, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* John M. Hall, age 30, is charged in a two-count Indictment. Count I of the Indictment charges Hall with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine between on or about May 2015 and June 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with felon in possession of ammunition on or about June 3, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Michael Halstead, age 51, of Gretna, Nebraska, is charged with receiving and attempting to receive child pornography from on or about May, 2016, and continuing to on or about June 4, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Mario Jimenez-Rivera, age 29, of Lexington, Nebraska, is charged with illegal reentry after deportation after a felony conviction on or about September 21, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Arbelio Lopez-Cabrera, age 25, of York, Nebraska, is charged with illegal reentry after deportation on or about September 11, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Oscar Mayorga is charged in a five-count Indictment. Counts I, II and IV of the Indictment charge Mayorga with distribution of 50 grams or more of methamphetamine on or about January 4, February 4, and February 25, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges the defendant with carrying and use of a firearm during and in relation to a drug trafficking crime on or about February 4, 2016. The maximum possible penalty if convicted is 5 years to life imprisonment consecutive, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment. Count V of the Indictment charges Mayorga with distribution of methamphetamine on or about March 23, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Anthony McQuinn, age 31, of Omaha is charged in a two-count Indictment. Count I of the Indictment charges McQuinn with conspiracy to distribute and possess with intent to distribute a mixture containing methamphetamine beginning on or about January 31, 2016, and continuing to on or about February 13, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with possession with intent to distribute a mixture containing methamphetamine on or about February 13, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Jose L. Morales-Flores, age 23, of Omaha, is charged with illegal reentry after deportation on or about October 14, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Miguel Nicolas-Francisco, a/k/a Mario F. Gaspar, age 40, of Omaha, is charged with illegal reentry after deportation after a felony conviction on or about February 11, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Carlos Ramos, a/k/a Mateo Bautista, a/k/a Angel Rodriguez Velasquez, age 27, of Omaha, is charged with illegal reentry after deportation after a felony conviction on or about September 29, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Monica Martinez Vera, age 34, of Compton, California and Lizbeth Vizcarra, age 23, of Hemet, California, are charged in a two-count Indictment. Count I of the Indictment charges Vera with possession with intent to distribute 100 grams or more of a mixture containing heroin on or about September 12, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $1,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Vizcarra with misprision of a felony on or about September 12, 2016. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 1 year term of supervised release and a $100 special assessment.
* Scott Wellensiek, age 43, of Dunbar, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt of child pornography on or about September 23, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $250,000 fine, supervised release for life, a $100 special assessment, and $5,000 restitution. Count II of the Indictment charges Wellensiek with access with intent to view child pornography from on or about August 7, 2016, and continuing to on or about September 5, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life, a $100 special assessment, and $5,000 restitution.
New Orleans Business Owner and Doctor Sentenced to Prison for Roles in $34 Million Medicare Fraud SchemeRead the Press Release
WASHINGTON – The owner of a New Orleans medical service company and a doctor who served as the company’s medical director were sentenced today to prison today for their involvement in a $34 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Elaine Davis, 60, of New Orleans, and Pramela Ganji, M.D., 67, of Harahan, Louisiana, were sentenced to 96 months and 72 months in prison, respectively. Chief U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana imposed the sentences and scheduled a hearing to determine restitution owed by both defendants for Dec. 7, 2016. On March 17, 2016, a jury convicted Davis and Ganji each of one count of conspiracy to commit health care fraud and one count of health care fraud.
According to evidence introduced at trial, Davis directed a massive fraud scheme through Christian Home Health Inc. (Christian), a company that used elderly and disabled Medicare recipients in New Orleans and adjacent communities to fraudulently bill Medicare for purported home health care services. Ganji served as Christian’s medical director from 2010 through 2015. Evidence presented at trial showed that the vast majority of these patients did not require home health care services, and that Ganji falsely claimed that beneficiaries she had never examined were qualified to receive these services.
The evidence at trial demonstrated that Davis and Ganji caused Christian to bill Medicare for more than $34.4 million in claims, a vast percentage of which were fraudulent. Medicare paid more than $29.6 million on these claims.
The FBI and HHS-OIG investigated the case. Trial Attorneys William Kanellis, Antonio Pozos and Drew Bradylyons of the Criminal Division’s Fraud Section prosecuted the case.
New Orleans Business Owner and Doctor Sentenced to Prison for Roles in $34 Million Medicare Fraud SchemeRead the Press Release
The owner of a New Orleans medical service company and a doctor who served as the company’s medical director were sentenced to prison today for their involvement in a $34 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Elaine Davis, 60, of New Orleans, and Pramela Ganji, M.D., 67, of Harahan, Louisiana, were sentenced to 96 months and 72 months in prison, respectively. Chief U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana imposed the sentences and scheduled a hearing to determine restitution owed by both defendants for Dec. 7, 2016. On March 17, 2016, a jury convicted Davis and Ganji each of one count of conspiracy to commit health care fraud and one count of health care fraud.
According to evidence introduced at trial, Davis directed a massive fraud scheme through Christian Home Health Inc. (Christian), a company that used elderly and disabled Medicare recipients in New Orleans and adjacent communities to fraudulently bill Medicare for purported home health care services. Ganji served as Christian’s medical director from 2010 through 2015. Evidence presented at trial showed that the vast majority of these patients did not require home health care services, and that Ganji falsely claimed that beneficiaries she had never examined were qualified to receive these services.
The evidence at trial demonstrated that Davis and Ganji caused Christian to bill Medicare for more than $34.4 million in claims, a vast percentage of which were fraudulent. Medicare paid more than $29.6 million on these claims.
The FBI and HHS-OIG investigated the case. Trial Attorneys William Kanellis, Antonio Pozos and Drew Bradylyons of the Criminal Division’s Fraud Section prosecuted the case.
New Charges Filed in Northfield Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a grand jury sitting in Burlington has returned a five count Superseding Indictment against five people relating to the arson that occurred in Northfield on December 14, 2015. According to the Superseding Indictment, Howard Hoisington, 32, of Berlin and Jonathan Zampieri, 34, of Montpelier, have been charged with arson with death resulting for the fire that killed Brittany Burt. Howard Hoisington, Jonathan Zampieri, Tammy Wilder, 45, of Berlin, and Kimberly Hoisington, 57, of Berlin, have been charged with conspiracy to commit robbery. Richard Hoisington, 69, of Berlin and Kimberly Hoisington have been charged with conspiracy to distribute crack cocaine. Richard Hoisington and Kimberly Hoisington have been charged maintaining a crack house. Richard Hoisington has been charged with distribution of crack cocaine. The government has determined that it may seek a maximum penalty of life in prison on the arson charge. The remaining charges each carry a maximum possible penalty of 20 years in prison.
Richard and Kimberly Hoisington were arraigned today in federal court and both pleaded not guilty to the charges. Richard and Kimberly were detained pending full detention hearings. The arraignments for Howard Hoisington, Jonathan Zampieri and Tammy Wilder are scheduled for November 10, 2016.
According to court documents, on December 14, 2015, Howard Hoisington, Jonathan Zampieri, Tammy Wilder, Kevin Atwood, Howard’s mother, Kimberly Hoisington, and Tammy’s daughter, Amanda Wilder, traveled to 258 Union Street in Northfield, the residence of Brittany Burt. Howard Hoisington, Zampieri and Atwood went inside Burt’s apartment, doused Burt and her boyfriend, Efren Serrano, with gasoline and lit them on fire. Burt died in the fire and Serrano was seriously injured. Court documents reveal that the group went to Northfield to rob Serrano of his money and drugs, and that gasoline was used as a fear tactic.
Three days after the fire, on December 17, 2015, Howard Hoisington, Jonathan Zampieri and Tammy Wilder were charged with conspiracy to commit robbery. Howard Hoisington, Jonathan Zampieri and Tammy Wilder were detained in December 2015 and are still in custody. Kevin Atwood was later charged with lying to law enforcement. Kevin Atwood is now deceased.
In the course of the investigation into the arson, investigators determined that Richard Hoisington (Howard’s father) and Kimberly Hoisington had conspired to distribute cocaine base throughout 2013 and 2014. During this same period, Richard and Kimberly also maintained a crack house by permitting crack cocaine dealers from the New York City area to stay and deal drugs out of their residence. In August 2016, the Vermont Drug Task Force developed a confidential informant who ultimately purchased crack cocaine from Richard Hoisington at the Hoisington residence in Berlin.
The charges against the defendants are merely accusations and the defendants are presumed innocent until proven guilty.
This case was jointly investigated by the Vermont State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Vermont State Police Lieutenant Colonel Matthew Birmingham stated: “Today’s charges are the result of tireless work by investigators over the past 10 months and would not be possible without the collaborative efforts of those involved, specifically detectives from the Vermont State Police Major Crime Unit, Bureau of Criminal Investigation, arson investigators, federal agents from the ATF, and the Vermont Drug Task Force. I am extremely appreciative of everyone’s willingness to work together towards a common goal and to help provide closure for victims and their families.”
Mickey D. Leadingham, ATF Special Agent in Charge, Boston Field Division stated: “These new charges filed are very serious in nature and something ATF does not take lightly. The ATF Vermont Field Office, Vermont State Police, Vermont Drug Task Force and the U.S. Attorney's Office, have worked vigorously at this investigation, leading to these new charges and I commend the efforts by all the agencies involved.”
The United States is represented in this case by Assistant United States Attorney Wendy G. Fuller. Howard Hoisington is represented by Assistant Public Defender Steven Barth. Jonathan Zampieri is represented by Robert Katims. Tammy Wilder is represented by Ian Carleton. Kimberly Hoisington is represented by Peter Langrock. Richard Hoisington is represented by Mary Kehoe.
Mortgage Lender and CEO Agree to Settle to Resolve Allegations of False Insurance ClaimsRead the Press Release
BOSTON – The U.S. Attorney’s Office has reached a $1,025,000 civil settlement with First American Mortgage Trust, d/b/a NXTLoan.com, a small mortgage lender based in Brighton, Mass., and its founder and CEO, Barry S. Polack, in connection with allegations that they submitted false insurance claims on mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA).
The settlement resolves allegations that NXTLoan.com, at Polack’s direction, ignored FHA’s due diligence requirements and falsely certified that NXTLoan.com loans qualified for FHA insurance when they did not. The settlement also resolves allegations that Polack falsely certified to FHA that NXTLoan.com complied with quality control requirements and failed to report known loan defects.
“This settlement is another example of the government’s efforts to hold mortgage lenders and individuals accountable for fraudulent underwriting of government-insured mortgages,” said United States Attorney Carmen M. Ortiz. “In order to obtain HUD insurance, NXTLoan.com certified that its loans complied with HUD’s quality standards while ignoring defects that made the loans ineligible for FHA insurance.”
“This settlement agreement resolves allegations that First American Mortgage Trust, entrusted by American taxpayers to comply with FHA regulations, failed to conform with certain FHA requirements in connection with submission of insurance claims insured by FHA,” said Inspector General David A. Montoya for HUD. “This settlement demonstrates a continued commitment to address business practices that potentially harm the FHA program and its participants.”
“We will not tolerate the reckless disregard for FHA’s underwriting standards,” said Tonya Robinson, Acting General Counsel for the U.S. Department of Housing and Urban Development. “FHA’s insurance fund, and the millions of families who rely upon it, depend on the good faith and integrity of the mortgage lenders with whom we do business. We will continue to work aggressively to weed out participants in the FHA program who purposefully fail to meet our most basic requirements.”
“This settlement is the latest example of our continued work of holding FHA Direct Endorsement Lenders accountable for adhering to strict underwriting standards,” said Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development Office of Inspector General, Northeast Regional Office. “I am thankful for the cooperation between my office and the Department of Justice and am especially appreciative of the U.S. Attorney’s Office’s perseverance in bringing this matter to a fair and just resolution.”
NXTLoan.com and Polack participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and approve mortgage loans for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance; to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices; and to self-report any deficient loans identified by their quality control program.
As part of the settlement, NXTLoan.com and Polack admitted that on certain occasions between 2005 and 2011, NXTLoan.com did not conduct the due diligence required by FHA, and as a result, some NXTLoan.com loans did not meet FHA’s quality standards and were ineligible for FHA insurance. Nevertheless, NXTLoan.com underwriters, supervised by Polack, certified those loans for FHA insurance. When those loans defaulted, FHA paid insurance claims on loans that never should have been FHA insured. In addition, NXTLoan.com, at times, did not conduct post-closing loan audits, even though Polack certified annually to FHA that NXTLoan.com had complied with FHA underwriting requirements. When NXTLoan.com began conducting audits on closed loans, NXTLoan.com and Polack did not report to FHA any serious issues identified by the audits.
The settlement took into consideration NXTLoan.com’s and Polack’s financial circumstances and recent improvements to NXTLoan.com’s business practices.
This matter was investigated by the U.S. Department of Housing and Urban Development’s Office of the Inspector General and Office of General Counsel. It was handled by Assistant U.S. Attorney Brian LaMacchia of Ortiz’s Civil Division.
Massachusetts Man Sentenced to Prison for Filing a False Tax ReturnRead the Press Release
A resident of West Bridgewater, Massachusetts was sentenced to 10 months in prison today for filing a false individual income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to documents filed with the court, Keith Eaton failed to file federal individual income tax returns with the Internal Revenue Service (IRS) for 1998 through 2003. In or about May 2004, the IRS assessed Eaton more than $280,000 in taxes, interest and penalties for the years 1998 through 2001.
From November 2004 to April 2008, Eaton was employed at a heating and air conditioning company in Brockton, Massachusetts. Each year, the company provided Eaton with Forms 1099 reflecting his compensation. Despite receiving these Forms 1099 reporting significant compensation, Eaton willfully failed to file timely individual income tax returns with the IRS for the years 2004 through 2008. In November and December 2009, Eaton filed individual income tax returns for the years 2000 through 2008 on which he falsely reported receiving no income.
In or about November 2008, Eaton began operating Eaton Mechanical LLC, a heating and air conditioning business. In an attempt to thwart the IRS’ efforts to collect his back taxes, Eaton caused checks from the business bank account to be made payable to himself and then cashed the checks. Eaton used the cash to pay his personal expenses, including his mortgage. Finally, despite having sufficient income from the operation of his business to require him to file income tax returns, Eaton failed to file individual income tax returns for the years 2009 through 2012.
In addition to the prison term imposed, Eaton was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $399,132 for his 1998 through 2012 unpaid tax liabilities.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the FBI’s Boston Field Division, who conducted the investigation, and Trial Attorneys Brittney Campbell and Kenneth Vert of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Management Firm Owner Sentenced to 42 Months in Federal Prison for Stealing over $2.5 Million from Client Homeowner and Condo AssociationsRead the Press Release
Baltimore, Maryland – Tuesday afternoon, U.S. District Judge Ellen L. Hollander sentenced William Kyndall Francis, age 39, of Elkridge, Maryland, to 42 months in prison, followed by three years of supervised release, for wire fraud. Judge Hollander also entered an order requiring Francis to pay a money judgment forfeiting $2.5 million, and restitution in the amount of $93,935.28.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Francis owned and operated Legacy Investment and Management, Inc. (Legacy Inc.) and Legacy Investment and Management, LLC (Legacy LLC), which were both located at 10015 Old Columbia Rd. in Columbia, Maryland. Legacy Inc. and Legacy LLC (collectively Legacy) were both management firms that provided financial and property services primarily to homeowner and condominium associations (HOAs) in Maryland, Washington D.C. and Virginia in exchange for a monthly fee. One of the services that Legacy provided was management of the HOAs’ reserve funds, which were typically held in savings or money market accounts and were to be used to cover long term and unexpected capital expenses.
According to his plea agreement, from October 2011 to August 2012, Francis defrauded at least 51 of Legacy’s HOA clients by taking reserve funds that belonged to the HOAs. For many of the HOAs, Francis created false bank statements that he gave to the HOA representatives that falsely reflected that their reserve funds were intact and earning returns. In fact, Francis had spent the funds for his own personal and business benefit, including: $7,165.70 to Dogtopia, a dog grooming service; $2,339 to Delicate Touch Nails, a nail salon; $8,244.42 to the Washington Wizards; $1,000.01 to Bare Exposure and $3,848.67 to Pure Gold, adult entertainment clubs; $2,088.50 to A Platinum Plus Limousines; $3,700 to Shadow Room, a Washington D.C. night club; thousands of dollars for the purchase of clothing, liquor, restaurant meals, groceries and other living expenses; $40,025.07 for payroll for Legacy Inc. employees; and payment to AT&T.
The total loss caused by the fraudulent scheme was at least $2,573,753.92.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.
Man Sentenced to 262 Months Imprisonment on Firearm ChargeRead the Press Release
Contact Person: Christopher Taylor (843) 665-6688
Florence, South Carolina------Acting United States Attorney Beth Drake stated today that Jamal Antwan Lewis, 30, of Myrtle Beach, was sentenced in federal court yesterday to 262 months’ imprisonment, followed by a term of five years’ supervised release. United States District Judge R. Bryan Harwell imposed the sentence.
On May 3, 2016, Lewis was found guilty of being a Felon in Possession of a Firearm in violation of 18 U.S.C § 922(g), after a jury trial in federal court. Evidence at the trial showed that on the evening of March 30, 2015, officers with the Myrtle Beach Police Department (MBPD) responded to a shooting call at an apartment complex located on Cedar Street in Myrtle Beach, South Carolina. Witnesses identified Lewis as having a firearm and stated that he had run into one of the apartments at the complex. MBPD officers eventually made entry into the apartment where Lewis was believed to be hiding. Lewis and a loaded firearm were found in an upstairs bedroom. The apartment owner stated that Lewis had brought the firearm into the apartment. Lewis was prohibited from possessing a firearm due to prior convictions for aggravated domestic violence, pointing and presenting a firearm, and distribution of a controlled substance.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
#####
MEDIA ADVISORY-- Hope Initiative Partners to Discuss Importance of Community Participation in DEA’s Upcoming National Take Back EventRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and DEA Assistant Special Agent in Charge Sean R. Waite will hold a press conference at 11:00 a.m. on Thursday, Oct. 20, 2016, at the U.S. Attorney’s Office to promote community participation in DEA’s 12th National Take Back Event, which is scheduled for Saturday, Oct. 22, 2016. This media opportunity is part of the prevention and strategic planning components of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
WHO:
U.S. Attorney Damon P. Martinez
Asst. Special Agent in Charge Sean R. Waite, DEA Albuquerque District Office
WHEN:
THURSDAY, OCT. 20, 2016
11:00 a.m.
WHERE:
U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (i.e., driver’s license) and valid media credentials. Media may begin to arrive at 10:45 a.m. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
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 that 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 Bernalillo County, DEA, Healing Addiction in our Community (HAC) 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. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Long Island Man Who Captured and Killed Federally Protected Hawks in Stamford is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS KAPUSTA, 63, of Westbury, N.Y., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to one year of probation for killing red-tailed hawks and Cooper’s hawks. Judge Chatigny also ordered KAPUSTA to pay a $5,500 fine and perform 90 hours of community service at a local animal shelter.
Red-tailed hawks and Cooper’s hawks are birds of prey, also known as raptors, and consume pigeons as part of their natural diet. These hawks are protected under the federal Migratory Bird Treaty Act.
According to court documents and statements made in court, KAPUSTA and Adam Boguski were racing pigeon enthusiasts who constructed and maintained a pigeon coop at 330 Weed Avenue in Stamford. KAPUSTA and Boguski kept a large number of racing pigeons at this coop, and regularly let them fly outside the coop for exercise. Because KAPUSTA and Boguski viewed these hawks as a threat to their pigeons, they systematically captured the hawks in a trap specifically designed to capture birds of prey, shot and killed them in the trap, and disposed of their carcasses.
Knowing that he was violating the law by capturing and killing the hawks, KAPUSTA instructed Boguski to refer to the hawk trap as a “breeding cage” if law enforcement ever inquired.
On February 17, 2016, KAPUSTA pleaded guilty to one count of conspiracy to take, capture and kill red-tailed hawks and Cooper’s hawks, and four counts of taking, capturing and killing red-tailed hawks or Cooper’s hawks. In pleading guilty he admitted that he killed red-tailed hawks on September 8 and October 14, 2015, and Cooper’s hawks on September 2 and October 21, 2015.
On August 8, 2016, Boguski, of Stamford, pleaded guilty to one count of conspiracy to take, capture and kill red-tailed hawks and Cooper’s hawks, and two counts of taking, capturing and killing Cooper’s hawks. In pleading guilty he admitted that he killed Cooper’s hawks on September 27, 2015 and October 17, 2015. He awaits sentencing.
Judge Chatigny ordered several special conditions of KAPUSTA’s probation that restrict his ability to engage in his racing pigeon hobby, including allowing his pigeon coop in Stamford to be randomly inspected by federal and state environmental authorities.
This matter has been investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement and the Division of Refuge Law Enforcement, and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Katy Couple Enters Guilty Pleas in Nanny CaseRead the Press Release
HOUSTON – The Katy couple charged in relation to the enslavement of their nanny have been convicted, announced U.S. Attorney Kenneth Magidson. Sandra Nsobundu, 49, entered a plea to unlawful conduct with respect to documents in furtherance of forced labor, while her husband - Chudy Nsobundu, 57, pleaded to visa fraud.
According to testimony in a court hearing today, from on or about Sept. 29, 2013, and Oct. 10, 2015, the couple maintained a Nigerian woman to serve as a housemaid and nanny at their residence in Katy.
The immigration laws and regulations of the U.S. require citizens of certain foreign countries who seek admission to the U.S. to obtain a visa prior to entry. The application must contain true and accurate information and is submitted under oath. The defendants knowingly caused a false visa application for the victim to be submitted to the Department of State with numerous pieces of false information. These included the woman’s incorrect date of birth identifying her as 20 years older than she was, a false statement that she was married when she was not, a false statement indicating the purpose of travel was to attend a niece’s graduation and a written letter falsely stating that Chudy Nsobundu was her brother. Chudy Nsobundu knowingly made multiple material misrepresentations under oath on the visa application to increase the chances that the victim’s visa application would be accepted and to hide the fact that she would be working for the Nsobundu family as a housemaid and nanny under conditions not in compliance with U.S. labor laws. He submitted the application under oath, knowing the application contained these material misrepresentations.
Sandra Nsobundu aided and abetted in the submission of the fraudulently filed visa application her husband had submitted. In September 2013, Sandra Nsobundu took the woman to the U.S. Embassy in Lagos, Nigeria, to obtain her visa. Sandra Nsobundu gave her a letter to provide to the consular officials which indicated she did not speak English well and that she would be traveling to the U.S. for her niece’s graduation. Sandra Nsobundu gave the woman a picture of Chudy Nsobundu and the family and told her to tell the officials that he was her brother. The victim is not a relative of Chudy Nsobundu and is not married. The spouse listed on her visa application is the Nsobundus’ driver in Nigeria.
After obtaining the woman’s visa, the Nsobundus paid to transport the victim from Nigeria to the U.S. Once here, Sandra Nsobundu took the victim’s passport and copies of her bank statement. The defendants then concealed, removed and possessed the woman’s passport and visa with the intent to violate the forced labor statute. As part of the plea today, they intended to prevent and restrict, without lawful authority, the victim’s liberty and ability to move and travel in order to maintain her labor and services.
The couple knowingly unlawfully obtained the labor and services of this woman from on or about Sept. 29, 2013, to Oct. 10, 2015. Throughout the period she worked for defendants, the victim was not permitted to have her passport or visa. The Nsobundus knowingly enacted a scheme intended to cause the woman to believe that failure to perform the labor and services would result in serious harm to her. They also threatened abuse of law and the legal process. The scheme included not paying the victim and restricting her movement to the defendants’ residence or two short walks per day around the block with the children. They also frequently yelled at, scolded and berated the victim for moving too slowly or failing to care for the children in the manner they wanted. In addition, the Nsobundus threatened to send the woman back to Nigeria if she did not comply with their labor demands.
The U.S. Attorney’s Office is seeking restitution in the amount of $129,108 to the victim alleging the defendants owe that amount in back wages. The Nsobundus had previously agreed to pay the victim 20,000 Nigerian nairas-$100 U.S. per month. The Nsobundus never paid the victim for any of her work here in the United States.
The victim was rescued Oct. 10, 2015, after more than two years with Nsobundus in the U.S. following a tip to the National Human Trafficking Resource Center.
Sandra Nsobundu faces a maximum of five years in prison, while her husband faces up to 10 years imprisonment. Both could also face up to a $250,000 fine. They were permitted to remain on bond pending sentencing which has been set for Jan. 4, 2017.
Members of the Human Trafficking Rescue Alliance conducted the investigation, which included Immigration and Customs Enforcement’s Homeland Security Investigations, Fort Bend County Sheriff’s Office, Department of State-Diplomatic Security Service and the Department of Labor-Wage and Hour Division. Assistant U.S. Attorneys Ruben R. Perez and Julie N. Searle are prosecuting the case.
Kansas Business Owner Sentenced to Prison for Tax EvasionRead the Press Release
WASHINGTON – A Leawood, Kansas business owner was sentenced yesterday to 51 months in prison after being convicted of tax evasion following a five-week jury trial in April announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and Acting U.S. Attorney Thomas Beall of the District of Kansas.
According to the evidence at trial, Kathleen M. Stegman, 58, owned and operated Midwest Medical Aesthetics (Midwest). During the years 2006 through 2010, Stegman concealed cash receipts, diverted hundreds of thousands of dollars from Midwest for her personal use, created and used an entity to falsify business expenses and hide Midwest customer checks and falsely claimed as business expenses a mortgage payment on an investment property, the cost of an invisible dog fence, residential gas and electricity bills, Mercedes Benz lease payments and an investment in a deck coating product. The government also presented evidence that Stegman used the money she diverted from Midwest to fund a lavish lifestyle, including the purchase of condominiums in Las Vegas, over $300,000 in gold coins, a 54-foot yacht and real estate in North Carolina.
The evidence presented also established that Stegman caused an employee to destroy business records during a civil tax audit, provided the Internal Revenue Service (IRS) with false and altered documents and attempted to tamper with a witness’s statement to criminal investigators.
In addition to the prison term, U.S. District Judge Julie Robinson ordered Stegman to pay restitution to the IRS in the amount of $68,733 as a condition of supervised release and a fine in the amount of $100,000.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Ryan R. Raybould and John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Jabari B. Wamble of the District of Kansas, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kansas Aesthetics Business Owner Sentenced to Prison for Tax EvasionRead the Press Release
A Leawood, Kansas business owner was sentenced yesterday to 51 months in prison after being convicted of tax evasion following a five-week jury trial in April announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and Acting U.S. Attorney Thomas Beall of the District of Kansas.
According to the evidence at trial, Kathleen M. Stegman, 58, owned and operated Midwest Medical Aesthetics (Midwest). During the years 2006 through 2010, Stegman concealed cash receipts, diverted hundreds of thousands of dollars from Midwest for her personal use, created and used an entity to falsify business expenses and hide Midwest customer checks and falsely claimed as business expenses a mortgage payment on an investment property, the cost of an invisible dog fence, residential gas and electricity bills, Mercedes Benz lease payments and an investment in a deck coating product. The government also presented evidence that Stegman used the money she diverted from Midwest to fund a lavish lifestyle, including the purchase of condominiums in Las Vegas, over $300,000 in gold coins, a 54-foot yacht and real estate in North Carolina.
The evidence presented also established that Stegman caused an employee to destroy business records during a civil tax audit, provided the Internal Revenue Service (IRS) with false and altered documents and attempted to tamper with a witness’s statement to criminal investigators.
In addition to the prison term, U.S. District Judge Julie Robinson ordered Stegman to pay restitution to the IRS in the amount of $68,733 as a condition of supervised release and a fine in the amount of $100,000.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Ryan R. Raybould and John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Jabari B. Wamble of the District of Kansas, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Seeks to Intervene in Lawsuit Alleging Race Discrimination and Retaliation by Pocomoke City, Maryland, the Worcester County Sheriff and the State of MarylandRead the Press Release
The Justice Department announced today that it has moved to intervene in Savage et al. v. Pocomoke City et al., a private lawsuit alleging race discrimination and retaliation under Title VII of the Civil Rights Act of 1964 by Pocomoke City, Maryland, the Worcester County Sheriff and the state of Maryland. Title VII is a federal statute that prohibits employment discrimination on the basis of the basis of sex, race, color, national origin and religion.
The United States’ complaint in intervention alleges that the Worcester County Sheriff and the state of Maryland subjected former Pocomoke City Police Officer Franklin Savage to a racially-hostile work environment while he was assigned to a joint task force operated by the sheriff’s office. Specifically, Officer Savage was repeatedly subjected to racial epithets as well as other racially-charged acts of harassment, humiliation and intimidation by his co-workers and supervisors. Officer Savage’s complaints about racial harassment allegedly resulted in a series of retaliatory actions against him by the Worcester County Sheriff’s Office and Pocomoke City, concluding with the termination of his employment. The complaint further alleges that Pocomoke City similarly retaliated against two other officers – former Pocomoke City Police Chief Kelvin Sewell and former Pocomoke City Police Lieutenant Lynell Green – for supporting Officer Savage in the course of his complaints. Chief Sewell was eventually terminated as well.
The complaint seeks a court order that requires the defendants to implement policies and procedures that will ensure a workplace environment free of discrimination and retaliatory conduct. The United States also seeks relief, including monetary relief for the three charging parties as compensation for damages caused by the alleged discrimination.
“Federal law protects against discrimination and retaliation in the workplace,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “In police departments, that protection is vital not only for individual officials, but also for the communities they serve. The Justice Department is firmly committed to ensuring that our nation’s state and local law enforcement agencies comply with Title VII’s promise of a workplace free from racial discrimination and retaliation.”
Officer Savage, Chief Sewell and Lieutenant Green each filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Baltimore Office investigated the charges and made reasonable cause findings. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
“No one should have to face harassment and retaliation while at work,” said EEOC Chair Jenny R. Yang. “When public employees face discrimination, it undermines the trust and credibility in our public institutions. This case represents the latest partnership between EEOC and the Department of Justice to advance our shared Title VII enforcement responsibilities.”
This lawsuit was brought as a result of a joint collaborative effort by the EEOC and the Civil Rights Division to vigorously enforce Title VII.
“EEOC is committed to ensuring the employees who serve the public in critical law enforcement positions are protected by the laws forbidding unlawful harassment and retaliation in the workplace,” said Director Spencer H. Lewis Jr. of EEOC’s Philadelphia District Office, which includes the Baltimore Field Office. “I am pleased that EEOC and the Department of Justice have established a collaborative relationship that will impact public employers and work together to redress violations of the law when they occur.”
Enforcement of federal employment discrimination laws remains a top priority of the Justice Department. More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt. The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website at www.eeoc.gov.
Pocomoke City Motion to InterveneJury Convicts Rochester Man of Murder and Narcotics and Firearms OffensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Damion Colabatistto, 39, of Rochester, NY was convicted following a jury trial of murder, conspiracy to possess and distribute cocaine, crack cocaine and heroin and possessing firearms during, in relation to and in furtherance of the narcotics conspiracy.
“This verdict concludes a prosecution involving one of the most violent group of defendants that Rochester has ever seen,” said U.S. Attorney Hochul. “Over the course of a decade, these defendants trafficked deadly drugs, brutally attacked those they perceived as threats, and were willing to murder without regard for might be harmed by their gunfire. The entire community should be proud of the extraordinary work of Assistant United States Attorneys Rodriguez and Marangola, and all who worked on this critically important prosecution. “
ATF Special Agent in Charge Ashan M. Benedict said, “Damion Colabatistto was an enforcer for a violent narcotics distribution organization who was responsible for many acts of violence in support of the group’s illicit activities in the greater Rochester area. That violence extended to innocent people, including Moesha Harmon, 20 years old, a mother of two small children, who was gunned down just a few days shy of her 21st birthday, when Colabatistto, attempting to kill a target of the organization, fired multiple times into the wrong house. Though no words can replace the love of a mother lost so senselessly and tragically, we hope that Colabatistto’s conviction brings some closure to Ms. Harmon’s children and the rest of her family. Those out there who use firearms to intimidate, injure, or kill should know that ATF and our law enforcement partners remain committed to seeing you arrested, convicted, and imprisoned. We would like to express our gratitude to the Rochester Police Department and the U.S. Attorney’s Office for their dedication to this investigation.”
The murder conviction carries a maximum term of life in prison, the drug conspiracy a maximum term of 20 years in prison, and the firearms conviction carries a mandatory minimum five years in prison and a maximum of life, to run consecutive to the sentences imposed on the other counts of conviction.
Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, stated that on July 26, 2009, the defendant and his former brother in law and friend Angelo Ocasio went to 137 Cameron Street looking to kill a rival drug dealer with whom Colabatistto and another co-conspirator had fought with the night before. When they arrived at the house, Colabatistto and Ocasio shot and killed Moesha Harmon when she came to the upstairs window of the residence believing she was the rival drug dealer.
In May 2016, Angelo Ocasio was convicted following a jury trial in connection with the shooting of Meosha Harmon and of the underlying drug trafficking conspiracy. Ocasio will be sentenced on November 9, 2016.
During Colabatistto’s trial, the Government’s evidence established that one of the two guns used to murder Meosha Harmon was also used to murder Jose Troche on January 14, 2010 outside his house at 510 Augustine Street in Rochester. Jose Troche was a member of the drug distribution conspiracy along with Colabatistto and Ocasio. The drug conspiracy was headed by James Kendrick and his brother Pablo “Paul” Plaza. Troche was murdered because Kendrick and Plaza feared that Troche would cooperate against Kendrick in an ongoing narcotics prosecution. Colabatistto participated in the planning of the Troche murder and was the getaway driver when Paul Plaza shot Troche on the morning of January 14, 2010.
James Kendrick and Paul Plaza were tried in a separate seven-week trial in June and July of this year. They were each found guilty of the drug trafficking conspiracy and of several firearms offenses, including offenses relating to the murder of Jose Troche. Kendrick and Plaza were also found guilty of the murder of Francisco Santos in October 1998. Santos’ body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County, NY. James Kendrick was also found guilty of the murder of Ryan Cooper in the spring of 1999. Cooper’s remains have never been found. Like Jose Troche, both Santos and Cooper (who was a cousin of Kendrick’s and Plaza’s) were murdered because Kendrick and Plaza believed they were disloyal members of the conspiracy who had cooperated with the police or were planning to do so. Kendrick and Plaza will be sentenced on November 22, 2016.
The drug conspiracy that Colabatistto and Ocasio were members of and was led by Kendrick and Plaza, was a large, long term and very violent drug distribution group. The group committed multiple beatings, shootings and murders to protect their drug operations and to retaliate against those who posed a danger to the conspiracy, including disloyal workers and rival drug dealers.
Damion Colabatistto’s conviction is the culmination of an investigation which commenced in 2010. As a result of the investigation and resulting prosecutions, four murders (Francisco Santos in 1998, Ryan Cooper in 1999, Meosha Harmon in 2009 and Jose Troche in 2010) have been solved and the responsible murderers have been brought to justice. Altogether, 11 co-conspirators have been convicted in connection with the underlying drug distribution conspiracy and/or the firearms possessions and murders committed in furtherance of the conspiracy.
The conviction of Colabatistto and of his co-conspirators before him are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan M. Benedict, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.Intern Experiences Police Ride AlongRead the Press Release
Interns for INTERPOL Washington get to make valuable connections with law enforcement during their participation in the six-month program. As an INTERPOL Washington intern, Rachelle Tugade had the opportunity to experience a Police Ride Along with a Prince George’s County Police Officer. This allowed her to accompany the officer during their tour of duty in a police vehicle and act as an observer for the day. The evening started out quietly enough. The officer told her of his previous experiences as a police officer and what it’s like to work in the area. He took her on a detour of the neighborhood and explained the different criminal scenarios that have happened in those areas, which included stabbings, drug overdoses, and assaults. As the police officer put it, “The neighborhood looks normal on the outside, but it’s what’s behind closed doors that matters.”
As the hours passed, things started to liven up a bit as they went to a variety of scenes and served as backup for other officers. Rachelle witnessed a hit-and-run car crash in a residential area, was present at a scene of a robbery at a local store, and went inside different apartment complexes to respond to residents’ emergency phone calls. The officer also introduced her to his colleagues, who told her stories of crazy scenarios they have had to deal with in the past. Overall, Rachelle’s ride along experience was great! She didn’t quite know what to expect, but she’s very glad her internship gave her this opportunity. It definitely broadened her respect for law enforcement and she would recommend anyone interested in law enforcement to contact a local police department and experience a police ride along. For more information on INTERPOL Washington’s internships, please see https://www.justice.gov/interpol-washington/internships.
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.
Inmate at United States Penitentiary Sentenced to an Additional 18 Months in Prison for Assaulting Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal inmate at the United States Penitentiary at Canaan was sentenced today, by U.S. District Court Judge Malachy E. Mannion in Scranton, to serve an additional 18 months in prison on the charge of assaulting a federal corrections officer.
According to United States Attorney Bruce D. Brandler, Orlando Garcia-Mata, age 24, formerly of Texas, previously admitted to throwing a punch at a corrections officer at the United States Penitentiary at Canaan. The incident occurred on March 22, 2016. Garcia-Mata is presently serving a sentence of 46 months in prison on the charge of unlawfully being found in the United States after having been previously deported. The sentence Garcia-Mata received today will be served in addition to that sentence.
Garcia-Mata was indicted by a grand jury in Scranton in April 2016.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara
# # #
Heroin Dealer Charged with Drug Dealing Resulting in DeathRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Donte Jacobs, age 28, of New Castle, Delaware, was indicted on October 13, 2016, for conspiracy to distribute heroin and fentanyl that resulted in the death of another person.
Jacobs faces a minimum mandatory sentence of 20 years in prison, a maximum sentence of a lifetime in prison, a fine of $5,000,000, and a minimum of 3 years of supervised release following a prison sentence. Jacobs was also indicted for the illegal possession of a handgun, for which he faces an additional maximum penalty of ten years in prison, a fine of $250,000, and 3 years of supervised release.
According to the indictment, Jacobs conspired to distribute a controlled substance that resulted in the fentanyl-related death of T.A. on June 29, 2016. Jacobs was arraigned on the charges in U.S. District Court today.
U.S. Attorney Oberly stated, “This is the first such indictment filed by the U.S. Attorney’s Office in Delaware. The number of deaths related to the distribution of heroin laced with fentanyl has reached epidemic-like numbers. Those responsible for providing this poison to those addicted to heroin can, where the evidence exists, expect to face indictment like this.
This indictment is the result of an investigation by the DEA Wilmington Resident Office – HIDTA Group 41, the New Garden Police Department, and the New Castle County Police Department. Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe is prosecuting the case on behalf of the United States.
The charges in the indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Grand Jury Returns Indictment in Garden City Bomb Plot CaseRead the Press Release
TOPEKA, KAN. – A federal grand jury returned an indictment here Wednesday charging three southwest Kansas men with conspiring to detonate a bomb at an apartment complex in Garden City where Muslim immigrants from Somalia live and worship, Acting U.S. Attorney Tom Beall said.
The indictment was based on the same facts presented in an Oct.14 criminal complaint filed in U.S. District Court in Wichita alleging the men conducted surveillance to size up potential targets, stockpiled firearms, ammunition and explosive components, and prepared a manifesto to be published after the bombing.
Charged with one count of conspiring to use a weapon of mass destruction were:
Curtis Allen, 49, Liberal, Kan.
Gavin Wright, 49, Liberal, Kan., owner of G & H Mobile Home Center at 1250 E. Tucker Road in Liberal.
Patrick Eugene Stein, 51, Wright, Kan.
If convicted, the defendants face up to life in federal prison. Investigating agencies included the FBI, the Liberal Police Department, the Seward County Sheriff’s Office, the Ford County Sheriff’s Office, the Garden City Police Department, the Dodge City Police Department, the Finney County Sheriff’s Office, and Kansas Highway Patrol, and the Kansas Bureau of Investigation. Assistant U.S. Attorney Tony Mattivi and Trial Attorney David Cora of the Justice Department’s Counterterrorism Section are prosecuting.
OTHER GRAND JURY INDICTMENTS
Garret Sims, 29, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Aug. 24, 2016, in Topeka.
Upon conviction, the crimes carry the following penalties:
Unlawful possession of a firearm following a felony conviction: Up to 10 years and a fine up to $250,000.
Possession with intent to distribute methamphetamine: Up to 20 years and a fine up to $2 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Joseph D. Carrier, 37, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of a stolen firearm. The crimes are alleged to have occurred Aug. 25, 2016, in Topeka.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Charles James Filkins, Jr., 33, Berryton, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 28, 2016, in Topeka.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Brandon Lee Morris, 22, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of a firearm with an obliterated serial number. The crimes are alleged to have occurred Aug. 13, 2016, in Topeka.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on the first count and up to five years and a fine up to $250,000 on the second count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Jordan W. Mayfield, 22, Golden, Colo., is charged with one count of possession with intent to distribute cocaine and one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Aug. 21, 2016, in Topeka.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute cocaine: Up to 20 years and a fine up to $20 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Unlawful possession of a firearm following a felony conviction: Up to 10 years and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Government Reaches $2.24 Million Settlement with Institutional Pharmacy Omnicare in Lawsuit First Brought by Former Regional Service Area Director in LodiRead the Press Release
SACRAMENTO, Calif. — Omnicare Inc., a national long-term care pharmacy, will pay a combined $2.24 million to resolve federal and state False Claims Act allegations that it improperly billed federal and state health care programs for prescription drugs that were dispensed to patients in skilled nursing and other institutional care facilities.
Specifically, the settlement resolves allegations that Omnicare employees manually altered the National Drug Code (NDC) field on claims resubmitted to Medicare, Medicaid, and TRICARE, in order to overcome prior rejection of these claims for payment. The alleged conduct occurred between January 1, 2006, and September 1, 2014, prior to CVS Health Corporation’s purchase of Omnicare.
As part of the settlement, CVS Health Corporation and its subsidiaries also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) that covers their institutional pharmacy services operations. The CIA is designed to increase accountability and transparency and to avoid or promptly detect future fraud and abuse.
“We are committed to ensuring the integrity of the federal health care system, and this extends to paying only for drugs that accurately reflect an underlying prescription,” said Acting U.S. Attorney Talbert.
The allegations resolved by the settlement were first raised in a lawsuit filed against Omnicare under the qui tam, or whistleblower, provisions of the False Claims Act by a former Regional Servicer Area Director in Omnicare’s pharmacy in Lodi, California. The Act allows private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $411,624 of the recovery proceeds.
This case was pursued by Assistant United States Attorney Edward Baker through a coordinated effort with the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Civil Division of the Department of Justice, the Federal Bureau of Investigation, and the Defense Health Agency. A team from the National Association of Medicaid Fraud Control Units assisted with the investigation and participated in settlement negotiations on behalf of the states, and included representatives from the Offices of the Attorneys General for the states of California, Massachusetts, New York, Ohio, and Texas.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Fugitive Gang Leader Arrested for Two MurdersRead the Press Release
Earlier today, a four-count indictment was unsealed in United States District Court for the Eastern District of New York charging Nicholas Washington, also known as “Nicholas Hayes” and “Face,” with the 2005 murder of Steven Negron and the 2006 murder of Andrell Napper. The indictment was returned under seal by a federal grand jury sitting in Brooklyn on May 7, 2014.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As detailed in the indictment and a detention memorandum filed by the government, Washington was a leader of the “G’z Up” gang, which operated in and around the Marcy Houses public housing development in the Bedford-Stuyvesant neighborhood of Brooklyn. G’z Up members and associates earned money by trafficking in crack-cocaine and firearms in Brooklyn, upstate New York and Pennsylvania, and committed acts of violence to protect their enterprise.
In 2005, Washington allegedly planned the murder of a rival drug supplier and directed two G’z Up members to carry out the crime. Those G’z Up members shot at the rival gang member but instead struck and killed Negron, who was standing nearby.
In 2006, Washington allegedly planned a second murder. The intended victim was a rival gang member who Washington believed was responsible for the murder of Washington’s brother. Washington and other members and associates of G’z Up located the target, and two of Washington’s associates opened fire. Napper, who was not the intended target, was instead struck and killed.
Two days after Washington was indicted he learned of the federal charges, evaded arrest, and was a fugitive for more than two years. On May 21, 2016, New York City Police Officers arrested him in connection with a non-fatal shooting that occurred in Brooklyn on May 9, 2014. Washington is currently charged in New York Supreme Court, Kings County, with attempted murder and other crimes based on that shooting. On October 19, 2016, Washington was taken into federal custody.
“Nicholas Washington’s days as a fugitive are over. He will now face charges for the two murders he ordered that tragically resulted in the deaths of two bystanders,” stated United States Attorney Capers. “The message here is clear – we will be dogged in our pursuit of violent gang members who commit senseless and cowardly acts of violence and will not let the passage of time deter us from bringing them to justice.”
FBI Assistant Director-in-Charge Sweeney stated, “When gang members start pulling the trigger on their weapons, they’re not worried about the collateral damage they inflict. In this case, two innocent people were murdered for just simply being in the wrong place at the wrong time. The suspect here thought he was smarter than law enforcement by evading arrest, but his continued alleged criminal behavior landed him in custody where he will face justice.”
The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Allon Lifshitz and Melody Wells.
The Defendant:
Nicholas Washington
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 14-CR-266 (ILG)
Former New Canaan Resident Sentenced to 33 Months in Federal Prison for Defrauding InvestorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN B. JEFFREY, also known as TUCKER JEFFREY, 49, formerly of New Canaan, Conn., and currently a resident of Denver, Colo., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 33 months of imprisonment, followed by three years of supervised release, for defrauding investors of more than $1.3 million.
According to court documents and statements made in court, JEFFREY offered individuals the opportunity to invest in Anchor Shipping and Trading, and Southern Cross Shipping, representing to victims that the companies were organized in the Marshall Islands, were engaged in the cargo shipping business, and had long-term contracts that would support a profitable international shipping business. The shipping companies were entirely fictitious. Instead of using invested funds as he had promised, JEFFREY used the vast majority of the money for his personal expenses, including paying for the mortgage on his New Canaan home, tuition at private schools, country club dues, and home renovation and landscaping costs.
As part of the scheme, JEFFREY created bogus documents that represented that certain well-known executives in the international shipping business were involved with the companies when, in fact, those executives had no such involvement. He also e-mailed and telephoned his victims falsely representing that the companies were profitable, that the victims would soon be receiving distributions from their investments, and to reassure victims when payments were delayed.
Judge Bolden ordered JEFFREY to pay $919,500 in restitution to the victims of this scheme. JEFFREY paid back certain victims after he found out about the FBI investigation, but required those victims to sign “settlement” agreements purporting to settle claims related to the fictitious companies.
On March 24, 2016, JEFFREY pleaded guilty to one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former Miami-Dade County Aviation Department Division Director Pleads Guilty to $5,000,000 Fraud and Kickback SchemeRead the Press Release
A former Division Director of the Miami-Dade County Aviation Department pled guilty for his involvement in a $5,000,000 fraud and kickback scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Ivan Valdes, 46, of Miami, pled guilty to a one-count criminal Information charging him with theft in programs receiving federal funds, in violation of Title 18, United States Code, Section 666. Valdes is scheduled to be sentenced on January 5, 2017, at 10:30 a.m., before United States District Judge Darrin P. Gayles. Valdes faces a statutory maximum term of 10 years’ imprisonment and fines of up to $250,000.
According to the court record, including a stipulated statement of facts, Valdes, a former Miami-Dade County Aviation Department Division Director was involved in a $5,000,000 fraud and kickback scheme. During in or about 2010, Valdes arranged with a co-conspirator to request that the Miami-Dade County Aviation Department purchase light fixtures for the Miami International Airport, in exchange for Valdes being paid a share of the proceeds. Between 2010 and 2015, the Miami-Dade County Aviation Department issued approximately twenty requests for Invitations to Quote for the purchase of over 9,000 LED light fixtures which cost Miami-Dade County millions of dollars. Valdes was paid in cash by a co-conspirator, with whom he split approximately $2.2 million in fraudulent proceeds from the scheme. Valdes used some of the fraudulent proceeds to pay an employee in the procurement section of the Miami-Dade County Aviation Department, who assisted with the fraud.
On two occasions, Valdes instructed a co-conspirator to bid on an Invitation to Quote for light fixtures, but he further instructed that the light fixtures should not be ordered from the lighting manufacturer. The co-conspirator bid and won the contracts. As a result, Valdes and his co-conspirators were paid approximately $500,000 for light fixtures that were never provided to the Miami-Dade County Aviation Department.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami-Dade County State Attorney’s Office and its Public Corruption Unit in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Fort Worth High School Teacher Admits to Felony Child Pornography ChargeRead the Press Release
FORT WORTH, Texas — Matthew Anthony Keller, 24, of Watauga, Texas, who, according to police reports, taught at Southwest High School in Fort Worth, Texas, appeared this morning before U.S. Magistrate Judge Jeffrey L Cureton and pleaded guilty to one count of production of child pornography, announced John Parker, United States Attorney for the Northern District of Texas.
Keller faces a statutory penalty of not less than 15 years and not more than 30 years in federal prison, a $250,000 fine and a lifetime of supervised release. Keller has been in custody since his arrest in July 2016 on a related federal complaint. He is scheduled to be sentenced on March 2, 2017, by U.S. District Judge Terry R Means.
According to documents filed in the case, the investigation began when a parent of a 15-year-old child (MV1) discovered a relationship between MV1 and Keller and notified a police department in Macomb County, Michigan. The parent was further concerned because it was discovered that Keller planned to fly from Texas to Michigan and possibly meet with MV1 for a sexual encounter.
When a search warrant was conducted at Keller’s residence in Watauga, law enforcement seized a computer from his bedroom. A forensic analysis of that computer revealed the presence of a sexually explicit video of the minor victim.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI, the Tarrant County District Attorney’s Office, and the Macomb County Sheriff’s Office are investigating. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
# # #
Former CEO Sentenced for Bribery and Fraud Scheme Involving Red Light Camera Contracts in OhioRead the Press Release
A former CEO of a traffic light enforcement camera vendor was sentenced today to 14 months in prison for her role in a multi-year bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
Karen L. Finley, 57, of Cave Creek, Arizona, was sentenced today before U.S. District Judge Michael H. Watson of the Southern District of Ohio. She pleaded guilty on June 19, 2015, to one count of conspiracy to commit federal programs bribery and honest services wire and mail fraud. Finley cooperated with the government’s investigation against John Raphael, an Ohio lobbyist, who pleaded guilty to one count of violating the Hobbs Act for his involvement in the scheme. On June 8, 2016, Raphael was sentenced to serve 15 months in prison.
From December 2005 to February 2013, Finley served as CEO of a red light camera enforcement company. During this time, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus, Ohio, and Cincinnati through Raphael, a consultant retained by the company. Finley and others, including another executive of the company, agreed to provide the conduit campaign contributions through Raphael with the understanding that the elected public officials would assist the company in obtaining or retaining municipal contracts, including a red light camera enforcement contract with the city of Columbus. Finley also admitted that she and her co-conspirators concealed the true nature and source of the payments by Raphael and the company’s payment of false invoices for “consulting services,” which funds Raphael then provided to the campaigns of the elected public officials.
The FBI’s Cincinnati Field Office, Columbus Resident Agency, investigated the case with the assistance of IRS-Criminal Investigation and the Ohio Bureau of Criminal Investigation. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio prosecuted the case.
Florida Man Sentenced for Wichita Bank RobberyRead the Press Release
WICHITA, KAN. - A Florida man was sentenced Wednesday to 46 months in federal prison for robbing a Wichita bank, Acting U.S. Attorney Tom Beall said.
Antonio Adam Smiley, 30, Zephyrhills, Fla., pleaded guilty to one count of bank robbery. He admitted that on Nov. 18, 2015, he robbed the Emprise Bank branch at 2323 S. Hydraulic. He fled the bank with the money and left Wichita. He was identified from surveillance photos and arrested Nov. 23, 2015, in Zephyrhills, Fla.
Beall commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Federal Jury Finds Arizona Man Guilty on Marijuana Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Yesterday afternoon, a federal jury sitting in Las Cruces, N.M., found John Wayne Hargrove, 57, of Pierce, Ariz., guilty on marijuana trafficking charges after a two-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Chief Patrol Agent Jeffrey D. Self of the U.S. Border Patrol El Paso Sector.
Hargrove, Janelle Richter, 57, also of Pearce, Ariz., Edgar Antonio Silvas-Hinojos, 28, a Mexican national illegally in the United States, and three other Mexican nationals, were arrested on Feb. 8, 2016, on a criminal complaint charging them with conspiracy and possession of 135.11 kilograms (297.25 pounds) of marijuana with intent to distribute.
Hargrove, Richter and Silvas-Hinojos were subsequently indicted on June 14, 2016, and charged with participating in a marijuana trafficking conspiracy and possession of marijuana with intent to distribute. According to the indictment, the defendants committed the crimes charged on Feb. 8, 2016, in Hidalgo County, N.M.
The evidence at trial established that U.S. Border Patrol agents arrested Hargrove and Richter at 10:45 p.m. on Feb. 8, 2016, as the two were trying to hide inside of Hargrove’s truck which was parked near an abandoned building in the desert off of Highway 80 near the Arizona/New Mexico border. The agents also found Silvas-Hinojos, who was wearing camouflage clothing, trying to hide in the back of the truck. The agents also seized six bundles containing almost 300 pounds of marijuana from the truck.
The evidence established that earlier that night, seven Mexican nationals wearing camouflage clothing, including Silvas-Hinojos, delivered the marijuana to Hargrove. Hargrove loaded the bundles of marijuana into his truck, and tried to conceal the marijuana bundles under a tarp, sleeping bags and construction equipment. He then agreed to drive Silvas-Hinojos to Phoenix, which is why the Border Patrol found him in Hargrove’s truck.
Border Patrol agents testified that, despite the dark of night and remoteness of the area, they were able to find Hargrove’s truck by using an infrared camera. During their surveillance, the agents were able to observe the seven Mexican nationals as they carried the bundles of marijuana to the abandoned property. The agents arrested the six men after they departed from the area without their bundles. Thereafter, the agents went to the abandoned property where they found Hargrove, Richter and Silvas-Hinojos.
The Border Patrol agents transported Hargrove, Richter and the seven Mexican nationals to the Lordsburg Border Patrol Station where Hargrove made a voluntary post-arrest statement. Hargrove told the agents that he was in the area to go fishing. While the agents did find some fishing equipment in Hargrove’s truck, they also found other equipment, including night vision goggles, and two loaded firearms, which Hargrove admitted were his. When asked about the marijuana, Hargrove claimed that he thought it was alfalfa.
The jury deliberated an hour before returning a guilty verdict against Hargrove.
At sentencing, Hargrove faces a statutory mandatory minimum penalty of five years and maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
Richter pled guilty on Aug. 2, 2016, and remains in custody pending a sentencing hearing where she also faces a statutory mandatory minimum penalty of five years and maximum of 40 years in federal prison. The seven Mexican nationals also have entered guilty pleas. They will be deported after completing any prison sentences imposed on them.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol. Assistant U.S. Attorneys Dustin C. Segovia and Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Federal Grand Jury Indicts Three for Credit Union RobberyRead the Press Release
AMARILLO — A federal grand jury in Amarillo, Texas, returned a two-count indictment last week charging three men with the robbery of an Amarillo Credit Union, announced John Parker, U.S. Attorney for the Northern District of Texas.
Raul Garcia, 27, Leonard Jovon Coulter, 28, and Richard Charles Cunningham, Jr., 38, are each charged with one count of credit union robbery, and one count of using and carrying a firearm during and in relation to a crime of violence. All three defendants are in custody.
According to the indictment, on September 23, 2016 Coulter and Cunningham entered the Education Credit Union, located at 1801 FM 2381 in Amarillo with firearms and took by force and intimidation money belonging to the credit union. Garcia remained in the vehicle as the getaway driver.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the robbery count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The firearms offense carries a mandatory seven-year penalty and a $250,000 fine.
The FBI, Amarillo Police Department, the Potter County District Attorney’s Office and the Potter County Sheriff’s Department were the investigating agencies. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
# # #
FCI Berlin Inmate Sentenced on Federal Weapon Possession ChargeRead the Press Release
CONCORD, N.H. – Joshua Starr, 30, formerly an inmate at the Federal Correctional Institution in Berlin, New Hampshire, was sentenced in United States District Court for the District of New Hampshire on federal weapon possession charges, announced United States Attorney Emily Gray Rice. The Court imposed a term of 18 months’ imprisonment, to be served consecutive to Starr’s current prison sentence.
During a routine cell search in November 2015, FCI Berlin correctional officers discovered a six-inch plastic stabbing weapon secreted in Starr’s assigned bunk. Starr was previously prosecuted and convicted in federal district court in New Hampshire for possession of a similar weapon as an inmate at FCI Berlin.
This prosecution arose from an investigation by the Federal Correctional Institution in Berlin, New Hampshire, in collaboration with the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Nick Abramson.
###
El Departamento De Justicia Y El Departamento De Salud Y Servicios Humanos Emiten Una Guía Conjunta Para Los Sistemas De Bienestar De MenoresRead the Press Release
El Departamento de Justicia y el Departamento de Salud y Servicios Humanos [Department of Health and Human Services (HHS)] emitieron una carta orientativa conjunta hoy a los sistemas de bienestar de menores estatales y locales sobre las exigencias del Título VI de la Ley de Derechos Civiles de 1964 y sus normas de implementación. El Título VI prohíbe la discriminación basada en la raza, el color y el origen nacional en programas y actividades que reciban asistencia financiera federal.
La guía busca asegurarse de que los sistemas de bienestar de menores conozcan sus responsabilidades de proteger los derechos civiles de niños y familias. La guía forma parte de una asociación en curso entre los departamentos para ayudar a las agencias de bienestar de menores a proteger el bienestar de los niños y asegurar el cumplimiento de las leyes federales contra la discriminación. El año pasado, los departamentos emitieron una guía sobre la intersección de los requisitos de bienestar de menores y el Título II de la Ley para Personas con Discapacidades, así como también la Sección 504 de la Ley de Rehabilitación. La guía emitida hoy destaca la clara necesidad de un debate franco y productivo sobre cómo las leyes, políticas, prácticas y prejuicios implícitos de bienestar de menores afectan a las comunidades de color.
Los datos muestran que determinados grupos raciales y étnicos tienen sobrerrepresentación en el sistema de bienestar de menores en comparación con sus números en la población general. La carta de orientación aborda las quejas de acceso racial e idiomático que los departamentos han recibido alegando una remoción innecesaria de los niños de sus familias biológicas; la denegación de igualdad de acceso a los padres biológicos a servicios de reunificación con competencia cultural; la denegación de colocaciones con familiares o parientes; estadías innecesariamente prolongadas en casas de acogida; y denegación de una participación plena e informada a familiares en los tribunales de familia y servicios sociales simplemente porque tienen conocimientos limitados del inglés a nivel oral, de lectura o de escritura.
“Esta guía ayudará a asegurar que todas las familias, sin importar el acceso racial o idiomático, puedan aceder a servicios de bienestar infantil libres de discriminación,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, jefa de la División de Derechos Civiles del Departamento de Justicia. “La ley exige que todos los receptores de financiación federal ofrezcan programas, actividades y servicios de manera justa y equitativa sin importar la raza, el color o el origen nacional. Los sistemas de bienestar de menores estatales y locales tienen una enorme responsabilidad en el apoyo de familias y niños, y esperamos que esta guía ofrezca claridad respecto de la aplicación de obligaciones federales contra la discriminación a la crucial labor que realizan.”
“Esta guía conjunta es otro paso en la dirección correcta para remediar prácticas discriminatorias en las actividades de bienestar de menores,” declaró la Directora de la Oficina de Derechos Civiles del HHS Jocelyn Samuels. “Todos los profesionales en los sistemas estatales y locales de bienestar de menores tienen la obligación de comprender y cumplir con las leyes federales que protegen a las familias y los niños en las comunidades a las que sirven. Esperamos que esta guía ofrezca estrategias de amplio alcance para que las agencias de bienestar de menores aborden las prácticas discriminatorias en sus programas y actividades.”
“Es fundamental para las familias y los niños que las decisiones tomadas por las agencias para el bienestar de menores sean sin discriminación, sea intencional o no,” dijo Mark Greenberg, Secretario Auxiliar para los Niños y las Familias (en funciones) del HHS. “Nosotros creemos que esta orientación ayudará a las agencias a servir mejor a los niños de todos los orígenes y proporcionar protecciones importantes para las familias y los niños.”
“Todos los niños y las familias merecen ser tratados con respeto y dignidad,” dijo el Comisionado Rafael López de la Administración de Niños, Jóvenes y Familias y Comisionado Auxiliar Interino del Buró de Menores. “Es crucial que trabajemos juntos para asegurarnos de que nuestros sistemas sean totalmente accesibles, transparentes y justos. Esta guía es un paso importante para garantizar que todas las familias, sin importar su raza, color u origen nacional, tengan igualdad de acceso a servicios y sean tratadas de manera justa en todo momento.”
El Buró de Menores de la ACF administra la financiación para agencias y tribunales de bienestar de menores. La ACF también brinda orientación y asistencia técnica a agencias de bienestar de menores respecto de las leyes de bienestar de menores. La Oficina de Derechos Civiles del HHS y la División de Derechos Civiles del Departamento de Justicia son responsables de garantizar que los sistemas de tribunales estatales y agencias de bienestar de menores financiados respectivamente cumplan con el Título VI y sus normas de implementación. El departamento también es responsable de garantizar una coacción sistemática y eficaz del Título VI en todas las agencias que reciben financiamiento federal.
Para información adicional sobre la División de Derechos Civiles, visitar www.justice.gov/crt. Para información adicional sobre el Buró de Menores de la ACF, visitar www.acf.hhs.gov/cb. Para información adicional sobre la Oficina de Derechos Civiles del HHS, visitar www.hhs.gov/ocr/.
Title VI Child Welfare Guidance Spanish