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Tuesday 4 October 2016
New Jersey Man Sentenced for Role in Heroin ConspiracyRead the Press Release
ROANOKE, VIRGINIA – A New Jersey man, who previously admitted to supplying heroin to Roanoke drug dealers from sources in New Jersey, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Hassan Rasool Williams, of Jersey City, New Jersey, who previously pled guilty to one count of conspiring to distribute more than 1,000 grams of heroin, was sentenced today to 151 months in federal prison.
“Heroin has become a public health crisis in this country and must be treated as such by both law enforcement and treatment professionals,” United States Attorney Fishwick said today. “We will continue to prosecute those, like Mr. Williams, who traffic large amounts of heroin into our communities while also supporting programs that provide treatment for addicts of this deadly drug. It is only through a comprehensive approach can we hope to make progress on this important issue.”
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, from March 2013 to July 2015, Williams ran an organization that brought heroin from New Jersey to the City of Roanoke where it was resold, either by himself or his co-conspirators, Dawayne Lamar Gibson, Duane A. Andrews, Marquis Rashad Harris and Camilla Bridget Ward.
The investigation of the case was conducted by the Drug Enforcement Administration, the Roanoke City Police Department and officials with the Baltimore/Washington HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
New Haven Man Sentenced to 34 Months in Federal Prison for Role in Heroin Distribution RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MIGUEL SOTO, also known as “Fat Boy,” 31, of New Haven, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 34 months of imprisonment, followed by three years of supervised release, for his role in a heroin distribution ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that Wilson Vasquez, also known as “Pancho,” obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
SOTO allowed Vasquez and his associates to use his residence to package heroin for street-level distribution.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
SOTO has been detained since his arrest on July 15, 2015. On April 12, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin.
Seventeen individuals were charged as a result of this investigation. All 17 pleaded guilty. Vasquez awaits sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
New Hampshire Woman Sentenced to Three Years for Armed Bank RobberiesRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Crystal Dufault, 34, of Manchester, New Hampshire, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to three years in prison and five years of supervised release for armed bank robbery. The charges arose from the August 14, 2015 armed robbery of Franklin Savings Bank (FSB) in Franklin, New Hampshire and the September 4, 2015 armed robbery of University Credit Union (UCU) in Portland. The defendant pled guilty on January 20, 2016.
According to court records, the defendant and a co-conspirator, Joseph Richards, brandished a pellet gun and stole $13,240 from FSB and $12,308 from UCU.
On September 14, 2016, Chief Judge Torresen sentenced Richards to 15 years in prison and five years of supervised release for his involvement in the FSB and USU robberies as well as for the August 3, 2015 robbery of Norway Savings Bank in Freeport and the September 12, 2015 robbery of TD Bank (TD) in Lewiston.
On July 28, 2016, a third co-conspirator, Neil West, Sr., of Portland, Maine, was found guilty following a jury trial in U.S. District Court of armed bank robbery and conspiracy to commit bank robbery arising out of the UCU and TD robberies. West served as the getaway driver for both robberies. The TD robbery resulted in a high-speed chase which culminated in Saco. Following the chase, West and Richards were arrested.
U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these armed bank robberies were quickly solved because local, state, and federal law enforcement agencies across two states worked closely together.”
The joint investigation was conducted by the Franklin and Manchester (New Hampshire) Police Departments; the Freeport, Portland, Lewiston, Old Orchard Beach and Saco Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments.
Monongalia County man pleads guilty to oxycodone distributionRead the Press Release
WHEELING, WEST VIRGINIA – Shawn Collins, 43, of Morgantown, West Virginia, pled guilty to the distribution of oxycodone in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Collins admitted that he sold oxycodone in Monongalia County in April 2015 and he now faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Methamphetamine Dealers Sentenced to PrisonRead the Press Release
EUGENE, Ore. – On Tuesday, October 4, 2016, U.S. District Judge Ann Aiken sentenced Julio Cabrera-Cardoza, 34, to 60 months in prison for possession with intent to distribute methamphetamine. Following his release from prison, Cabrera-Cardoza will be on supervised release for four years. On December 11, 2015, Judge Aiken sentenced Cabrera-Cardoza’s co-defendant, Haven Penselin, 55, to 60 months in prison and five years of supervised release for possession with intent to distribute methamphetamine and felon in possession of a firearm.
On May 23, 2013, an undercover officer arranged to purchase a pound of methamphetamine from Penselin. Penselin and Cabrera-Cardoza arrived at the agreed upon location and were contacted and searched. Cabrera-Cardoza had a pistol and two pounds of methamphetamine, one on his person and one in his vehicle. Penselin had a pistol, a scale, and packaging material in his vehicle. Cabrera-Cardoza, a repeat offender, was convicted in 2007 for possession of a controlled substance with intent to deliver.
The investigation of this case was a collaborative effort between the DEA, Springfield Police Department, and Linn County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Marion Woman Sentenced on Methamphetamine ChargesRead the Press Release
ABINGDON, VIRGINIA – A Southwest Virginia resident, who previously pled guilty to charges related to the manufacturing of methamphetamine, was sentenced on September 30, 2016, in the United States District Court for the Western District of Virginia at Abingdon, Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring announced.
Shana Ariz Castillo, 32, of Marion, previously pled guilty to one count of conspiring to manufacture methamphetamine, one count of creating a substantial risk of harm to human life while illegally manufacturing or attempting to manufacture methamphetamine, and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present. Castillo was sentenced last week in District Court to serve 108 months in federal prison, to be followed by three years of supervised release. Restitution of $834 was also imposed for the cleanup of the hazardous materials from a methamphetamine laboratory found at Castillo’s apartment.
Castillo pled guilty to conspiring to manufacture methamphetamine over a nine-month period, from August 9, 2014, through on or about May 27, 2015. Approximately 68 grams of methamphetamine were involved in this conspiracy. Evidence presented during the sentencing hearing included photographs of Castillo’s apartment, where a search warrant was executed on May 27, 2015. The search warrant revealed evidence of a recent methamphetamine laboratory, which included dangerous equipment and chemicals, methamphetamine, and multiple drug paraphernalia items, such as smoking devices and a used syringe. The methamphetamine laboratory equipment and materials were located in close proximity to Castillo’s two-year old child’s bedroom. Actual methamphetamine, drug paraphernalia, and other dangerous items were located on top of the child’s toy table, just outside the child’s bedroom. Castillo’s child was present when the search warrant was executed.
“Manufacturing methamphetamine is a danger to the public, particularly where it is manufactured in a residence where a minor is present or resides. We take these cases very seriously and will work hard to prosecute those who endanger the public and minors, as today’s sentence shows,” United States Attorney Fishwick said today. “This case is an unfortunate reminder of how addictive methamphetamine is and the lengths that drug dealers will go to manufacture this drug, even manufacturing where a two-year old child resides. Exposing a young child to methamphetamine and the dangerous chemicals used during the manufacturing process is incomprehensive and repugnant. We will continue to work with our partners in law enforcement to slow the spread of this deadly drug throughout Virginia and aggressively prosecute these cases.”
Attorney General Mark Herring added his appreciation to the law enforcement agencies involved in this investigation and echoed the need to aggressively prosecute those who manufacture methamphetamine. “Manufacturing methamphetamine is inherently dangerous and presents a serious risk of harm to the community. These are very serious cases and must be handled accordingly, particularly when a minor child is exposed to this very dangerous drug and the manufacturing process. As public safety is our highest priority, we will continue to investigate these offenses alongside our law enforcement partners and work to keep this dangerous drug out of our communities,” stated Attorney General Mark Herring.
Agencies involved in this investigation included the Washington County Sheriff’s Office, Town of Abingdon Police Department, Bristol Virginia Police Department, and the Drug Enforcement Administration. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Manchester Woman Pleads Guilty to Conspiracy to Distribute Heroin and FentanylRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced today that Jeannette Hardy, 25, of Manchester, New Hampshire, pleaded guilty to conspiracy to distribute and to possess with the intent to distribute fentanyl and heroin.
According to an offer of proof made by the United States at the hearing, the Manchester Police responded to a residence in Manchester on June 22, 2015 after receiving a report of gun shots. Police found the defendant at a convenience store nearby. She had a gunshot wound to her hand and finger.
The police searched the residence and found 1.783 kilograms of fentanyl and $198,542 dollars in United States currency. Subsequent searches uncovered $560,050 in a safe deposit box and $7,000 in a storage unit.
A sentencing hearing has been scheduled for January 27, 2017 at 11:00 a.m. at the United States District Court. The defendant faces a minimum mandatory sentence of 10 years and a maximum sentence of life imprisonment.
“Prosecuting those individuals who introduce fentanyl and heroin into New Hampshire is a priority of my office,” stated United States Attorney Emily Gray Rice. “This case is an example of a very successful collaboration between local and federal law enforcement working together. I commend the Manchester Police Department and the DEA for their tireless efforts and cooperation on this case.”
“Opiate abuse is at epidemic levels in New Hampshire and throughout New England,” said Special Agent in Charge Michael J. Ferguson. “Fentanyl and heroin are causing overdose deaths across the Granite State, and DEA is committed to aggressively pursue trafficking organizations or individuals who distribute these poisons to areas of New Hampshire in order to profit and destroy people’s lives, and wreak havoc in our communities. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners."
The case was investigated by the Drug Enforcement Administration and the Manchester Police Department. It was prosecuted by AUSA Georgiana Konesky and AUSA Donald Feith.
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Leader of the Simple City Criminal Organization Pleads Guilty to a Racketeering Conspiracy and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – Jeff Crews, a/k/a “Fro,” age 25, of Washington, D.C., pleaded guilty today to conspiring to participate in a racketeering conspiracy and to aggravated identity theft, in connection with his activities as the leader of the Simple City Criminal Organization (SCCO), a racketeering enterprise engaged in fraud and related activity, including vehicle theft, interstate transportation of stolen property, and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, the SCCO is a criminal organization based in the southeast quadrant of Washington, D.C. in a neighborhood known as “Simple City.” From at least 2009 to July 2015, Crews and his conspirators, including Sylvia Price and Stefon Janey, met on a regular basis, and planned criminal activity, including vehicle theft, the interstate transportation of stolen property, identity theft and credit/debit card fraud. The SCCO received money and income from those criminal activities.
According to his plea agreement, Crews and other SCCO members would steal vehicles in Prince George’s and Montgomery Counties, Maryland, as well as in Washington, D.C. Crews and SCCO members sometimes used the stolen vehicle in a short crime spree during which they committed a string of auto thefts; thefts from autos; and commercial burglaries targeting ATM machines. Once the SCCO had used a stolen vehicle to commit one or more crime sprees, the SCCO would then transport the stolen vehicle across state lines for resale.
Crews and other SCCO members would provide any personal identification information and access devices stolen during the crime spree to another group within the SCCO, which was led by Sylvia Price. Sylvia Price and those under her direction would conduct fraudulent transactions with the stolen identification documents and access devices, in Maryland, Washington, D.C., and Virginia. Price would provide a portion of the fraud proceeds to Crews, for disbursement to the SCCO members who participated in the thefts.
For example, on April 18, 2015, Crews, Janey, and another co-conspirator robbed a BP Gas Station in Beltsville, Maryland. While Crews acted as the getaway driver, Janey and another co-conspirator used a crowbar to forcibly enter the vestibule area, where an employee was working. Janey and the co-conspirator threatened the employee and stole the employee’s cell phone and cash from a cash register. In addition, Janey and the co-conspirator forcibly opened an ATM in the gas station, causing damage to the ATM, and took cash from the ATM. They fled the gas station in a gray Acura MDX that had previously been stolen in Prince George’s County, on March 31, 2015.
At least $550,000, but not more than $1,500,000, was reasonably foreseeable to Crews based on his involvement in the activities of the SCCO.
As part of his plea agreement, Crews will be required to forfeit and pay restitution of at least $1,250,000.
Crews and the government have agreed that if the Court accepts the plea agreement Crews will be sentenced to between 96 and 120 months in prison for the RICO conspiracy, and a mandatory two years in prison, consecutive to any other sentence for aggravated identity theft. U.S. District Judge George J. Hazel has scheduled sentencing for January 31, 2017, at 9:30 a.m.
Seven other defendants have pleaded guilty to their participation in the racketeering conspiracy, including Sylvia Price, a/k/a “Deez Nuts,” age 50, of Suitland, Maryland, and Stefon Janey, a/k/a “Stef,” and “Stef Luva,” age 23, of Marlow Heights, Maryland. U.S. District Judge Hazel has scheduled sentencing for Sylvia Price on November 21, 2016, at 2:30 p.m. Judge Hazel previously sentenced Janey to 27 months in federal prison.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Montgomery County Police Department and the members of the Washington Area Vehicle Enforcement Unit for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan, Nicolas A. Mitchell, and Sujit Raman, who are prosecuting the case.
KC Postal Clerk Pleads Guilty to Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., postal clerk pleaded guilty in federal court today to stealing gift cards from the mail.
Veronica K. Grant, 63, of Kansas City, waived her right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a federal information that charges her with the theft of mail by a postal employee.
Grant was employed as a clerk by the U.S. Postal Service at the processing and distribution center in Kansas City, Mo. Grant’s role was to match any loose contents that became separated from the addressed envelope or container from which it was mailed, then forward the mail to its destination.
On April 3, 2015, the U.S. Postal Service, Office of Inspector General received information that a $50 T.J.Maxx gift card had been reported missing from the mail. The gift card had been mailed from the sender in Springfield, Mo., on March 7, 2015, to the recipient in Texas. USPS determined that the gift card went through the process and distribution center where Grant was employed but never reached its intended recipient.
Grant admitted that she used the gift card at the T.J. Maxx store in Blue Springs, Mo., on March 12, 2015. Store surveillance video depicted her at the checkout counter utilizing the stolen gift card.
Following an interview with investigators on October 5, 2015, Grant consented to a search of her belongings. Five additional gift cards were recovered from Grant’s purse. Investigators later determined that these gift cards had been stolen from the mail as well. Investigators have identified 11 victims of Grant’s mail theft.
Under the terms of today’s plea agreement, the government agrees it will recommend probation, which could include a combination of home confinement or a half-way house. Grant agrees to pay restitution to any victims identified. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the U.S. Postal Service, Office of Inspector General.
Jury Convicts St. Croix Man of Wire Fraud, Theft of Government Money and Making False StatementRead the Press Release
St. Croix, USVI – After a five-day trial, on September 30, 2016, a federal jury on St. Croix convicted Lt. Col. Kenneth Alleyne, of wire fraud, theft of government money, and making a false statement to the government, United States Attorney Ronald W. Sharpe announced.
Alleyne faces a maximum sentence of 20 years in prison for each of the 42 wire fraud counts; 10 years in prison for the theft of government money count; and five years in prison for the false statement count. District Court Chief Judge Wilma A. Lewis permitted Alleyne to remain on release pending sentencing. No sentencing date has been set.
Evidence presented at trial established that from on or about May 1, 2010, to on or about February 28, 2012, on St. Croix, Alleyne, knowingly devised a scheme to unlawfully use his Overseas Housing Allowance to obtain government money, by means of wire, that he was not entitled to receive.
“No one, regardless of rank, is above the law,” United States Attorney Ronald W. Sharpe said. “Lt. Col. Alleyne now faces a federal prison sentence, discharge from the military, and a loss of benefits. This should serve as a deterrent to others who might be tempted to game the system for their own benefit.”
The case was investigated by the U.S. Army CID - Major Procurement Fraud Unit. “Today’s outcome is a true testament to holding those accountable, regardless of rank or position, to the highest standard expected of all of our soldiers and civilians,” Frank Robey, director of the Major Procurement Fraud Unit, said. “We will continue our steadfast commitment to weeding out those who attempt to defraud the Army.”
The case was prosecuted by Christian A. Fisanick, Assistant U.S. Attorney and Criminal Division Chief, and Assistant U.S. Attorney Anna A. Vlasova.
Jury Convicts Dominican Republic Man of Drug Charges and Illegal EntryRead the Press Release
St. Thomas, USVI – After a one-day trial, on October 4, 2016, a federal jury on St. Thomas convicted Tomas Liriano Castillo, 44, of Conspiracy to Possess a Controlled Substance with Intent to Distribute, Possession of a Controlled Substance with Intent to Deliver and Illegal Entry, United States Attorney Ronald W. Sharpe announced.
Castillo faces a minimum sentence of 10 years and a maximum sentence of life in prison on the conspiracy and possession with intent charges, and six months in prison for the illegal entry charge. District Court Judge Curtis V. Gomez remanded Castillo to the U.S. Marshals Service pending sentencing on February 2, 2017.
Evidence presented at trial established that on or about May 9, 2016, Castillo traveled by boat from Tortola to Hull Bay, St. Thomas. The evidence at trial also showed that Castillo got off the boat with a back pack that he tried to discard when he saw agents from the U.S. Drug Enforcement Administration approaching him. Testimony at trial further established that when the back pack was recovered, it contained approximately 5.8 kilograms of cocaine, and that Castillo is not in the Virgin Islands lawfully.
The case was investigated by the DEA and U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorneys Sigrid Tejo-Sprotte and Everard Potter.
Hazleton Man Pleads Guilty to Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man pleaded guilty today before U.S. District Court Judge Robert D. Mariani in Scranton, to trafficking in large quantities of heroin in January 2016.
According to United States Attorney Bruce D. Brandler, the defendant, Ryan Hunsinger, age 27, pleaded guilty to possession with intent to distribute in excess of 100 grams of heroin. Hunsinger admitted to traveling to Philadelphia where he obtained more than 700 grams of heroin. Agents and police seized more than 19,000 bags of heroin from Hunsinger’s vehicle on January 18, 2016, near Hazleton.
Hunsinger was indicted by a federal grand jury in Scranton in February 2016, as a result of an investigation by the Drug Enforcement Administration (DEA) and Hazleton Police.
Judge Mariani ordered a presentence investigation to be completed. Sentencing will be scheduled after the pre-sentence investigation is completed. Hunsinger is detained in prison pending sentencing. He faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harnett County Man Sentenced to 30 Years for the Manufacturing of Child PornographyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Chief United States District Judge James C. Dever, sentenced CLARENCE WILLARD ALBRITTON, 37, of Harnett County, to 360 months imprisonment followed by a lifetime of supervised release.
ALBRITTON was named in a 10-count Indictment filed on March 2, 2016. On June 27, 2016, he pled guilty to one count of the Manufacture of Child Pornography.
On July 25, 2015, the Harnett County Sheriff’s Office (HCSO) in Lillington, initiated an investigation related to the production of child pornography (CP). On that date, ALBRITTON’s wife contacted them about a computer flash drive she located in ALBRITTON’s vehicle. The flash drive contained child pornography images. Body parts, tattoos, and clothing confirmed the identification of the adult male as ALBRITTON. Additionally, his wife surrendered a laptop computer and a second computer flash drive to authorities. The defendant was arrested in New Jersey on July 31, 2015. Incident to his arrest, authorities seized a cellular phone and laptop computer. A preliminary forensic examination of the ALBRITTON’s computer and media storage devices uncovered at least 85 sexually explicit images of a 3-year-old child victim. A complete forensic examination of ALBRITTON’s computers and media storage devices uncovered 642 images of CP with multiple images of infants.
The criminal investigation of this case was conducted by the Harnett County Sheriff’s Office and the Department of Homeland Security Investigations (HSI). Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Gallup Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Dexter Diaz, 32, of Gallup, N.M., was sentenced today in federal court in Albuquerque, N.M., to 120 months in prison for his conviction on a methamphetamine trafficking charge. Diaz will be on supervised release for five years following his prison sentence.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, McKinley County Sheriff Ronald Silversmith, and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Diaz, whose criminal history includes felony convictions for three drug trafficking crimes, is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including McKinley County, under this initiative.
Diaz was arrested in Sept. 2015, on an indictment charging him with distributing methamphetamine on March 26, 2015, in McKinley County, N.M. The indictment included forfeiture allegations requiring Diaz to forfeit $1,600 in drug proceeds to the United States.
On Feb. 25, 2016, Diaz entered a guilty plea to the indictment. In entering the guilty plea, Diaz admitted that on March 26, 2015, he sold two ounces of methamphetamine to another person for $1,600.
This case was investigated by the Albuquerque office of the DEA, the McKinley County Sheriff’s Office and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorney Nicholas Jon Ganjei is prosecuting the case.
Former President of San Fernando Valley Brokerage Firm Sentenced to 15 Years in Federal Prison for Wire Fraud and Tax Convictions for Misappropriating Investor FundsRead the Press Release
LOS ANGELES – The former president and CEO of the Sherman Oaks-based Morgan Peabody, Inc. brokerage and investment firm was sentenced yesterday to 15 years in prison for federal wire fraud charges stemming from an investment scam in which defendant misappropriated nearly $6 million from more than 100 investors.
David Williams, 54, of Studio City, a licensed securities dealer and investment adviser, was sentenced by United States District Judge Dale S. Fischer. In May 2015, in the midst of a jury trial, Williams pleaded guilty to three counts of wire fraud and two counts of tax evasion. As part of his plea agreement, Williams admitted that he directed Morgan Peabody representatives to sell securities in a fund that Williams personally had created, purportedly to invest in real estate. The Sherwood Secured Investment Fund, LLC, a Studio City business that Williams owned, offered a 9 percent annual return on investments. Williams used the majority of the $3.75 million investors put in the Sherwood Fund to pay for personal expenses, including lavish vacations and a $50,000/month lease on a $6 million residence in Toluca Lake.
The defendant was also held responsible for misappropriated funds from two other securities offerings that he created, for a total of almost $6 million in investor funds that he bilked from the three offerings. Williams was also found to have obstructed justice by lying to the Securities & Exchange Commission in its investigation of the offerings, and lying to the Judge and the Probation Office in seeking to withdraw his guilty plea.
"This sentence serves as a warning to criminals who commit fraud that they face very serious consequences," said United States Attorney Eileen M. Decker. "The defendant callously stole the hard-earned retirement savings of numerous victims and spent it on himself. His greed and lack of remorse will continue to harm his victims for many years to come, but now he too will be paying a price for more than a decade."
"While the defendant's sentence is significant, it will not compensate for the monetary investments lost to the dozens of people he victimized through false representations," said Deirdre Fike, the Assistant Director in Charge of the FBI's Field Office. "The FBI will continue to collaborate with our partners at the IRS and the United States Attorney's Office to address significant investment fraud matters."
In his plea agreement, Williams admitted that he used investor money for personal purposes and committed tax evasion by failing to file returns with the IRS for tax years 2007 and 2008, and failing to report the more than $2.3 million in income he received. Williams agreed in the plea agreement to pay additional taxes of $777,881 for those tax years. Defendant subsequently moved to withdraw his plea, but the Court denied his motion and ordered him to pay restitution in the amount of $5,125,137.60 to victims of the fraud scheme, $777,881 to the IRS, and $258,940 to the California Franchise Tax Board.
"Mr. Williams squandered the life savings of his investors, putting his own selfish greed above the wellbeing of his victims," stated Acting Special Agent in Charge Anthony J. Orlando of IRS Criminal Investigation. "As yesterday’s sentencing demonstrates, fraudsters like Mr. Williams will be held accountable for their actions as they are unacceptable to both investors and the taxpaying public."
The investigation into Williams’ scheme was conducted by special agents with the Federal Bureau of Investigation and IRS - Criminal Investigation. The case was prosecuted by Assistant United States Attorney Keri Axel.
Former Oklahoma Jail Administrator Indicted for Violating Civil Rights of DetaineeRead the Press Release
A one-count indictment was returned today charging a former administrator of the McClain County Jail in Purcell, Oklahoma, with a civil rights violation arising out of the death of a detainee in June 2013. The indictment alleges that Wayne Barnes, then a lieutenant at the jail, exhibited deliberate indifference toward K.W. by denying him necessary medical care to treat his diabetes, resulting in K.W.’s death.
The indictment was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Mark Yancey of the Western District of Oklahoma.
According to the indictment, K.W. suffered from diabetes that he needed insulin to control. The indictment alleges that from the time that K.W. arrived at the jail on June 16, 2013, he did not have insulin, he was not evaluated or treated by a doctor and he was not taken to a hospital for evaluation or treatment until the afternoon of June 19, 2013. It was three days after K.W.’s arrival, according to the indictment, that Barnes observed K.W. lying on the floor of his cell, unresponsive. Only then did Barnes direct a corrections officer to call emergency medical services, who arrived to find K.W.’s pupils fixed and dilated. K.W. died on June 21, 2013, never having regained consciousness. The indictment further alleges that Barnes knew that K.W. had a serious medical condition and willfully failed to provide him with necessary medical care, and that his failure to do so resulted in K.W.’s death.
Barnes is charged with one count of a death-resulting deprivation of rights under color of law. If convicted, the defendant faces a maximum sentence of life in prison. The defendant also faces a potential $250,000 fine.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the FBI’s Oklahoma City Division. It is being prosecuted by Assistant U.S. Attorney Julia Barry of the Western District of Oklahoma and Special Litigation Counsel Sheldon Beer of the Civil Rights Division’s Criminal Section.
Barnes IndictmentFormer New York Man Pleads Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
ERIE, Pa. – A former resident of New York pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Michael Idowu Olugbade, 45, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Olugbade’s luggage was found in a co-defendant’s residence containing stolen identities and tax return information. The ledgers listed tax refund amounts and bank accounts in which the refunds were to be placed. IRS records show the data listed in the ledgers were correct, in that the exact same refund amounts listed were deposited in the same bank accounts listed. Also found in the luggage were debit cards for fraudulent bank accounts opened using stolen identities. Bank accounts opened by Olugbade received fraudulent tax refund deposits. Those refunds were then withdrawn from ATM machines in or around Baltimore, Maryland.
Judge Cercone scheduled sentencing for February 6, 2017. The law provides for a maximum total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Olugbade.
Former IRS Revenue Officer and Owner of Tax Consulting Business Pleads Guilty to Tax EvasionRead the Press Release
A former Internal Revenue Service (IRS) revenue officer pleaded guilty today in the U.S. District Court in the Middle District of North Carolina to one count of tax evasion and one count of corruptly endeavoring to impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
According to documents filed with the court, Henti Lucian Baird, 60, and a resident of Greensboro, North Carolina, filed tax returns each year but has not paid his self-assessed taxes since at least 1998. Baird was an IRS revenue officer for 12 years before he established HL Baird’s Tax Consultants, which he operated from 1989 to 2014. Baird advertised himself to clients as specializing in “IRS problems, delinquent returns, offer-in-compromise, tax problems, delinquent employee taxes and release of liens and levies.” Baird, in turn, used his knowledge and experience to evade payment of his own taxes, creating over 10 nominee bank accounts in the names of his children to hide hundreds of thousands of dollars, submitting false Form 433-A to the investigating revenue officer that did not reveal all of his nominee bank accounts, filing, in bad faith, a Chapter 13 bankruptcy petition, a cash offer in compromise, a request for discharge and an application for subordination of his federal tax lien and transferring funds out of nominee accounts to avoid impending IRS levies. During this time, Baird continued to pay the mortgage on his 4,300 square-foot home, annual fees for his timeshare in Florida and car payments on his BMW. Baird admitted to the revenue officer and the mortgage holder that he did not keep money in bank accounts because he feared a levy or garnishment.
Baird also used his stepson’s identity, without his knowledge, to apply for a Preparer Tax Identification Number, which Baird then used to file over 900 income tax returns for clients, as well as his own income tax returns. Additionally, Baird submitted, under penalties of perjury, at least 120 Forms 2848, Power of Attorney and Declaration of Representative, on behalf of clients that falsely stated he was an enrolled agent, even though the IRS revoked his authorization to represent taxpayers.
The penalties and interest on Baird’s taxes will continue to accrue until he pays the IRS in full. As of Sept. 20, Baird’s evasion of payment totals $477,028.80 in tax, penalties and interest for tax years 1998 through 2013.
U.S. District Judge Thomas D. Schroeder for the Middle District of North Carolina set sentencing for Jan. 17, 2017. Baird faces a statutory maximum sentence of five years in prison for his conviction on the tax evasion count, and a statutory maximum sentence of three years in prison on the obstruction count, as well as a period of supervised release and monetary penalties. As a condition of the plea agreement, Baird agreed to pay full restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Justice Department’s Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former IRS Revenue Officer and Owner of Tax Consulting Business Pleads Guilty to Tax EvasionRead the Press Release
WASHINGTON — A former Internal Revenue Service (IRS) revenue officer pleaded guilty today in the U.S. District Court in the Middle District of North Carolina to one count of tax evasion and one count of corruptly endeavoring to impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
According to documents filed with the court, Henti Lucian Baird, 60, and a resident of Greensboro, North Carolina, filed tax returns each year but has not paid his self-assessed taxes since at least 1998. Baird was an IRS revenue officer for 12 years before he established HL Baird’s Tax Consultants, which he operated from 1989 to 2014. Baird advertised himself to clients as specializing in “IRS problems, delinquent returns, offer-in-compromise, tax problems, delinquent employee taxes and release of liens and levies.” Baird, in turn, used his knowledge and experience to evade payment of his own taxes, creating over 10 nominee bank accounts in the names of his children to hide hundreds of thousands of dollars, submitting false Form 433-A to the investigating revenue officer that did not reveal all of his nominee bank accounts, filing, in bad faith, a Chapter 13 bankruptcy petition, a cash offer in compromise, a request for discharge and an application for subordination of his federal tax lien and transferring funds out of nominee accounts to avoid impending IRS levies. During this time, Baird continued to pay the mortgage on his 4,300 square-foot home, annual fees for his timeshare in Florida and car payments on his BMW. Baird admitted to the revenue officer and the mortgage holder that he did not keep money in bank accounts because he feared a levy or garnishment.
Baird also used his stepson’s identity, without his knowledge, to apply for a Preparer Tax Identification Number, which Baird then used to file over 900 income tax returns for clients, as well as his own income tax returns. Additionally, Baird submitted, under penalties of perjury, at least 120 Forms 2848, Power of Attorney and Declaration of Representative, on behalf of clients that falsely stated he was an enrolled agent, even though the IRS revoked his authorization to represent taxpayers.
The penalties and interest on Baird’s taxes will continue to accrue until he pays the IRS in full. As of Sept. 20, Baird’s evasion of payment totals $477,028.80 in tax, penalties and interest for tax years 1998 through 2013.
U.S. District Judge Thomas D. Schroeder for the Middle District of North Carolina set sentencing for Jan. 17, 2017. Baird faces a statutory maximum sentence of five years in prison for his conviction on the tax evasion count, and a statutory maximum sentence of three years in prison on the obstruction count, as well as a period of supervised release and monetary penalties. As a condition of the plea agreement, Baird agreed to pay full restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Justice Department’s Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Ex-Georgia DOT Supervisor sentenced to 4.5 Years in Federal Prison for bribery for allowing dumping that resulted in environmental damageRead the Press Release
ATLANTA - George H. Bell, former Georgia Department of Transportation (“G-DOT”) Assistant Area Maintenance Foreman, was sentenced today to four and a half years’ imprisonment for accepting bribe payments in exchange for allowing more than 2,600 dump truckloads of unsuitable dirt to be dumped in DeKalb County, resulting in substantial environmental damage and more than $1.5 million in clean-up costs.
“For less than $15,000 in bribes, Bell abused his supervisory position with the G-DOT by allowing others to dump massive amounts of unsuitable dirt throughout DeKalb County,” said U.S. Attorney John A. Horn. “Bell’s greed and willingness to compromise the trust of his public office has left all Georgians with environmental damage and a clean-up tab of more than $1.5 million.”
“This case serves as a reminder that public corruption has consequences. The consequences for Mr. Bell in betraying the public’s trust and violating established regulations and policy is a lengthy federal prison sentence. The consequences for the public in which Mr. Bell was supposed to have been serving is $1.5 million in unanticipated and non-budgeted clean-up costs,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.
“It is paramount that public officials committing crimes be held accountable for their actions. The investigation and prosecution of public corruption is a priority for the Georgia Bureau of Investigation. The GBI will continue to work with our state and federal partners to ensure that public corruption cases are aggressively pursued,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
“Georgia DOT has cooperated fully with all agencies involved in the investigation to ensure that those responsible for illegal actions are held accountable,” said Commissioner Russell McMurry. “We are appalled by the corrupt actions of this individual that in no way reflect the hard work and commitment displayed by more than 4,100 GDOT employees. We have worked diligently to correct the damage to the impacted sites.”
According to U.S. Attorney Horn, the charges and other information presented in court: Bell worked for G-DOT for approximately 15 years. By the end of his career, Bell served G-DOT in a supervisory role as an Assistant Area Maintenance Foreman. In that capacity, Bell oversaw various maintenance projects under the control of G-DOT, including repairs of Georgia roadway system and general maintenance activities.
From approximately April to December 2014, Bell accepted cash bribe payments from the owners of a dirt hauling company (“Dirt Company”). In exchange for those bribe payments, Bell allowed the Dirt Company to dump unsuitable dirt at various G-DOT locations in DeKalb County, Georgia. Unsuitable dirt is dirt that has been removed during construction or landscaping projects that cannot be built upon in the future. In this case, the dirt contained construction debris, including nails, concrete and asphalt fragments, and various pieces of metal.
In April 2014, the Dirt Company asked Bell if G-DOT would accept multiple loads of dirt. Bell allowed the unsuitable dirt to be dumped at G-DOT site, but then charged the Dirt Company $600 to dump the dirt. Bell used G-DOT personnel and equipment to spread the dirt after the Dirt Company had dumped it. After that, Bell and the Dirt Company agreed that the Dirt Company would pay Bell $5 per load (if the Dirt Company spread the dirt itself) and $7 per load (if Bell used G-DOT personnel and equipment to spread the dirt). For several months thereafter, Bell accepted bribe payments from the Dirt Company in exchange for allowing it to dump illegally unsuitable dirt at G-DOT locations. In total, the Dirt Company paid Bell almost $15,000 in bribe payments.
Bell allowed the Dirt Company to dump over 2,600 dump truck loads of unsuitable dirt at the G-DOT sites located at: (1) Stone Mountain Highway and Hugh Howell Road, in Stone Mountain; (2) North Decatur Road and I-285, in DeKalb County; (3) 805 George Luther Drive, in DeKalb County; and (4) Chamblee Dunwoody Road and I-285, in DeKalb County. Overall, Bell permitted over 30,000 cubic yards of dirt to be dumped at the G-DOT sites. Unfortunately, Bell also allowed the Dirt Company to dump some dirt in a protected wetland and at a location where the dirt entered Stone Mountain Lake. Based on the massive amount of unsuitable dirt that Bell allowed to be dumped, the clean-up costs associated with his criminal acts exceeded $1.5 million.
On April 15, 2016, Bell, 50, of Lithonia, Georgia, pleaded guilty to conspiring to accept bribes. He was sentenced to four years, six months in prison, followed by three years of supervised release and was ordered to pay $1,553,184 in restitution.
This case was investigated by the Federal and Georgia Bureaus of Investigation.
Assistant United States Attorney Jeffrey W. Davis and former Assistant United States Attorney Jamie L. Mickelson prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
District Man Found Guilty of First-Degree Murder While Armed in 2014 Slaying in Southeast WashingtonRead the Press Release
WASHINGTON – Gregory Green, 28, of Washington, D.C., has been found guilty of first-degree felony murder while armed in the 2014 slaying of a man in Southeast Washington, U.S. Attorney Channing D. Phillips announced today.
Green was found guilty on Oct. 3, 2016, following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found him guilty of a charge of robbery while armed. The Honorable Milton C. Lee scheduled sentencing for Dec. 9, 2016.
According to the government’s evidence, on March 29, 2014, shortly after midnight, the victim, Derrick Williams, returned from work to his home. After talking to his girlfriend for a few minutes, he left to go to buy something to drink. A short time later, a witness reported hearing gunshots in the area of the 1200 block of Eaton Place SE. The witness saw Green and another man standing over Mr. Williams, who was on the ground. Mr. Williams, 35, died almost instantly from one gunshot wound to the head. Green, wearing all black, went into Mr. Williams’s front pockets and then flipped the victim over before going into his back pockets. Green was arrested on April 2, 2014. No one else was arrested in the case.
In announcing the verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the FBI’s Cellular Analysis Survey Team. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lashone Samuels, Zekiah Wright, and Benjamin Kagan-Guthrie; Paralegal Supervisor Sharon Newman; Victim/Witness Advocate Marcia Rinker; Victim/Witness Services Coordinator Tonya Jones; Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Program Specialist Wanda Queen; Supervisory Victim/Witness Program Specialist Michael Hailey; Information Technology Specialist Leif Hickling; Criminal Investigator Mark Crawford; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Assistant U.S. Attorneys Chrisellen Kolb, John Mannarino and Stephen Rickard, and Intern James Haynes. Finally, he commended the work of Assistant U.S. Attorneys Adrienne Dedjinou and Charles Willoughby, Jr., who prosecuted the case.
Day of Community Civil Rights DiscussionsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina --- As part of the Department of Justice’s commitment to building stronger relationships between law enforcement and the communities they serve, on Tuesday, October 4, the District of South Carolina U.S. Attorney’s Office held a day long series of round table discussions and forums. The goal of these meeting was to address the civil rights work being done through the coordinated efforts of community leaders and law enforcement and how better to meet the challenges of 21st Century policing.
The day began with a Civil Rights Breakfast at the U.S. Attorney’s Office in Columbia with a cross section of community leaders in attendance, joined by state and federal law enforcement. Deputy Chief Forrest Christian of the Department of Justice Civil Rights Division discussed the hate crime laws and the statutes used to prosecute excessive force cases. Acting United States Attorney Beth Drake highlighted prosecutions in recent years by the U.S. Attorney’s Office under the hate crime and excessive force laws. FBI Supervisory Special Agent Brian Jones described how his office works civil rights investigations, including those worked with the South Carolina Law Enforcement Division on officer-involved shootings and other use of force cases. S.C. Law Enforcement Division Chief Mark Keel addressed the state investigation and prosecution of excessive force claims. Director Jackie Swindler of the South Carolina Criminal Justice Academy talked about how his agency trains law enforcement officers in de-escalation and some of the physical challenges to law enforcement. The meeting was then opened to discussion where these heads of agency talked with members of the community. Representatives of the African-American business, civil and religious community, as well as representatives from the Muslim, Sikh and LGBT communities, participated in the discussions.
South Carolina Director of Public Safety Leroy Smith participated in the breakfast discussion. “I am privileged to take part in this forum that brings together state and federal law enforcement partners with our community leaders,” said SCDPS Director Leroy Smith. “As we have learned from incidents in our own state and throughout our nation, establishing trust in our communities starts with accountability and transparency. I believe open and frequent communication are key to building trust and support in our communities before a crisis.”
The day continued with Deputy Chief Forrest Christian, Acting U.S. Attorney Beth Drake, Criminal Chief Nancy Wicker and Supervisory Special Agent Brian Jones visiting first with Sheriff Leon Lott’s Citizen’s Advisory Committee and later City of Columbia Police Chief W.H. “Skip” Holbrook Citizen’s Advisory Committee. The focus of these meetings was to further the discussion of the federal program for civil rights enforcement, and the value of state partnerships in working these cases.
Michael Stansbury, Acting Assistant Special Agent in Charge of the FBI’s Columbia Field Office said, “The FBI in South Carolina appreciates the opportunity provided by the United States Attorney’s Office to meet with these community groups and discuss these important issues. While law enforcement officers, including FBI Special Agents, and other officials receive certain powers from the people so they can prevent wrongs and enforce the law, these same officers and officials must be held accountable for the way they use those powers. Violating the public’s trust undermines the hard and sacrificial work of all law enforcement officers. The FBI is confident this dialogue today will help to strengthen the trust communities have in law enforcement agencies throughout South Carolina.”
Acting U.S. Attorney Drake said, “The Citizens Advisory Committee meetings were terrific. Sheriff Lott is on the front end of the move to strengthen police-community relations by talking about policing practices. He and his command staff regularly meet with a standing committee of community members. His goal is to advance public safety through mutual trust and respect built on personal relationships between law enforcement and the people in Richland County his officers are sworn to protect. When his officers have a problem, Sheriff Lott has a record of taking responsibility and taking action to ensure accountability. As a consequence, the community has a high level of trust in our Sheriff’s Department.”
Attorney Drake also noted, “Chief Holbrook has developed a detailed plan for implementation of the report coming out of The President’s Task Force on 21st Century Policing which is posted on the CPD website. Such efforts grow community confidence in the police department.
www.columbiapd.net/pdfs/publications/CPD-Community-Based_Plan-Final-12-3-2015.pdf
Chief Holbrook’s work in Columbia has gained national attention. 21st Century Policing Task Force report Clearly, Chief Holbrook is committed to and is an advocate for evolving police practices to face the challenges in the 21st Century.”
Acting U.S. Attorney Beth Drake said, “We in the USAO work closely with the DOJ Civil Rights Division and the FBI on cases that are headed to federal court. However, our state and local partners have a critically important role in prosecuting civil rights violations, and, equally, or perhaps more importantly, in working to prevent problems before they arise.
We have a tradition of community policing here in South Carolina, a state where we still know our neighbors. However, it is the American way to always do more and do better. Our strength is innovation, and policing, like engineering, can be made stronger through innovation and research. SLED Chief Keel has certainly demonstrated how we can advance public safety through data and research, whether it is the SLED FUSION Center where he can access technology to respond to an AMBER Alert, or working with newly appointed SC Criminal Justice Academy Director Jackie Swindler on de-escalation training.”
Chief Keel talked about the role of SLED in doing an investigation after an officer uses his or her firearm, “As a part of their job, police officers face danger and over the course of a career, there will be times when an officer may use force in responding to a situation. When SLED gets the call that an officer has used their firearm, we will do an investigation that is full and fair to all involved to determine whether use of the firearm was justified under the circumstances. Plain and simple, the facts are the facts. We don’t make the facts, we discover and report them. Our agents do their work to ensure these cases get the attention they deserve.”
Director Swindler, S.C. Criminal Justice Academy, described some of the recent on-line training offered to every police and sheriff’s department in South Carolina, “Training law enforcement has always been essential and important, but no more so than in today’s current times. At the South Carolina Criminal Justice Academy, we are constantly re-evaluating our training so that it is relevant. In every basic law enforcement class, recruits are exposed to a great deal of training in the areas of cultural professionalism, conflict resolution, de-escalation and de-confliction. They are not only exposed to classroom exercises but also to hands-on scenario based instruction.
In addition to the aforementioned training for recruits, recently in a partnership between the Academy and the U.S. Attorney’s Office, of the more than 12,000 Class I officers in South Carolina, more than 8,800 officers have received verbal conflict on-line training conducted by Chief Harry Dolan (Ret.). This training was designed to provide officers with communication skills to help de-escalate potentially volatile situations without unnecessary use of force.”
Director Swindler referenced training where the U.S. Attorney’s Office Law Enforcement Coordinating Committee joined with the S.C. Criminal Justice Academy and the S.C. Law Enforcement Officers Association to develop a web-based training to provide verbal de-escalation training. The on-line training is an introduction for newer officers in developing practical verbal conflict management and a refresher for experienced officers on de-escalating potentially volatile encounters between law enforcement and citizens. The de-escalation training has a dual goal of enhancing both officer and community safety by expanding the public safety professional’s tools to serve as guardians of the peace.
Acting U.S. Attorney Beth Drake closed by announcing that the U.S. Attorney’s Office has recently hired two full-time prosecutors to handle both civil and criminal civil rights allegations. She invited the community to visit the U.S. Attorney’s Office web site to learn more about the work of the U.S. Attorney. www.justice.gov/usao-sc . “If you have a community event and you would like to have our office attend, there is an icon on our web page where you can click to request a speaker.”
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Damiane Harris Sentenced to 24 Months for Transporting Stolen PropertyRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that, on October 4, 2016, Damiane Harris of Chicago, Illinois, was sentenced before Judge Philip P. Simon, for interstate transportation of stolen property.
Harris was sentenced to 24 months’ imprisonment and one year of supervised release.
According to court proceedings, Harris stole a semi-tractor from a truck dealer in Burr Ridge, Illinois and two trailers containing valuable crane weights from Griffith, Indiana, and sold the weights at a scrap yard in Chicago, Illinois. The items were recovered and returned to the businesses.
This case was investigated by the Federal Bureau of Investigations and Griffith Police Department. This case was prosecuted by Assistant United States Attorney Abizer Zanzi.
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City of Montgomery Receives $1.8 Million from Department of Justice to Hire OfficersRead the Press Release
Montgomery, Ala. —The U.S. Department of Justice, through the Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP) awarded the City of Montgomery $1,875,000 aimed at creating or protecting fifteen law enforcement positions within the Montgomery Police Department, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. In total, CHP awarded over $119 million to agencies nationwide, including the award to the City of Montgomery. This grant is to be used over a three-year period.
The CHP provides funding to state, local and tribal law enforcement agencies for the hiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing and crime prevention efforts. All CHP applicants were asked to identify a specific crime problem area and describe how funding would be used to enhance their capacity to implement community policing approaches to that problem area.
In 2016, the COPS Office gave additional consideration to applicant agencies selecting the category of “Building Trust,” based on the final report of the President’s Task Force on 21st Century Policing. Special attention was also given to agencies that selected the areas of school-based policing, homicide or violent crime, and homeland security. Applicants who committed to hiring or rehiring at least one military veteran under CHP also received additional consideration for funding.
“We are tremendously thankful to the Department of Justice for this grant award, which recognizes and helps build upon MPD’s meaningful work in community policing, enforcement and crime prevention,” said Montgomery Mayor Todd Strange. “The officers that will be provided for by this grant will strengthen community engagement and the public’s safety throughout our city. On behalf of the Montgomery Police Department and the City of Montgomery, we thank and commend U.S. Attorney George Beck, the DOJ COPS Office, Reps. Martha Roby and Terri Sewell and our entire Congressional delegation.”
“The Department of Justice is proud to support the brave men and women of law enforcement that serve and protect our communities every day,” said U.S. Attorney George Beck Jr. from the Middle District of Alabama. “The U.S. Attorney’s Office is committed to reducing crime and increasing public safety. This funding will provide additional resources for law enforcement to develop and implement strategies to reduce violent crime, fight terrorism, and save lives.”
For the entire list of grantees and additional information about the 2016 COPS Hiring Program, visit the COPS website at http://www.cops.usdoj.gov/default.asp?Item=2888
Charleston felon sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston felon caught with a gun while on federal supervised release was sentenced to prison today, announced United States Attorney Carol Casto. Timothy Lee Leftenant, 37, previously pleaded guilty to illegally possessing a firearm after being convicted of a felony. In today’s hearing, he was sentenced to two and a half years in federal prison for that offense. He was also sentenced to an additional six months in prison for violating his federal supervised release. The sentences will be served consecutively.
On December 28, 2015, the Kanawha County Sheriff’s Department responded to a call at America’s Best Value Inn in St. Albans and encountered Leftenant after smelling marijuana outside his room. Leftenant ran from the officers when they attempted to pat him down. As he was running, Leftenant threw his hat, which contained heroin and a loaded 9 mm semi-automatic handgun. Leftenant was prohibited from possessing any firearm under federal law because of previous felony convictions for possession with intent to distribute crack and for carrying a firearm in relation to a drug crime. Additionally, Leftenant was on federal supervised release for the two prior felony convictions at the time he possessed the handgun.
The investigation was conducted by the Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haley Bunn is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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California Man Facing Federal Drug Trafficking Charge Arising Out of Seizure of More Than 38 Pounds of Meth in New MexicoRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause yesterday morning to support a criminal complaint charging Edwin Josue Torres, 24, of Sherman Oaks, Calif., with a methamphetamine trafficking offense. Torres was ordered detained pending trial.
Torres was arrested on Sept. 29, 2016, and was charged in a criminal complaint with a methamphetamine trafficking offense after the New Mexico State Police (NMSP) seized approximately 38.25 pounds of methamphetamine from him following a routine traffic stop. The methamphetamine was concealed inside nine individual packages inside two bags in the trunk of Torres’ vehicle. NMSP notified Homeland Security Investigations (HSI) about the seizure, and HSI referred the matter for federal prosecution.
If convicted of the offense against him, Torres faces a statutory minimum penalty of ten years and a maximum of life in prison. The charges against Torres are merely accusations and he is presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of HSI and the NMSP. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
CFO of San Diego Defense Contracting Firm Admits to Embezzling $825,000Read the Press Release
Assistant U.S. Attorney Emily W. Allen (619) 546-9738
NEWS RELEASE SUMMARY – October 4, 2016
SAN DIEGO – Stuart Teshima, the former Chief Financial Officer of a large San Diego-based Department of Defense contracting firm, pleaded guilty today to embezzling more than $825,000 from the company over the course of eight years. Teshima admitted that he stole the money while he was employed as Vice President, then Senior Vice President, and finally as the CFO of the victim company.
Teshima, who oversaw the company’s credit card program, admitted that he misused his corporate credit card to pay for personal expenses including airfare and other personal travel, jewelry, gifts for family members, furniture, lavish dinners, and even his personal income tax bill.
Before submitting invoices for reimbursement, Teshima would conceal the personal spending by altering his account statements to replace the personal items with fictitious business expenses. He falsely reported to company representatives that the statements he submitted were generated directly from his credit card account, when in fact he altered the records himself before submitting them for reimbursement.
Teshima admitted that he started the fraud in early 2008, and continued to charge thousands of dollars per month of personal expenses until he left his employment in August 2015. By then, he had racked up unauthorized personal charges of more than $825,000.
The victim company serves the U.S. Department of Defense and other government agencies to provide a wide variety of services including ship building and repair, nuclear operations support, and information technology. It has offices across the country and employs more than 1,000 people.
“Corporate insiders and officers owe a special duty of honesty to their employer and its owners. By misusing his senior executive positions for his own personal gain, former CFO Teshima inflicted serious harm on his employer, his fellow employees and defense contracting community. I am committed to ensuring that professionals who abuse the trust of their employers are held accountable, pay full restitution, and face stiff consequences for their misconduct,” said U.S. Attorney Laura E. Duffy.
“Mr. Teshima used his high ranking positions and violated the trust of his employer in order to feed his personal lifestyle,” said FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI is committed to investigating those insiders who act on their greed and steal money from businesses in our community.”
This case was investigated by the San Diego Division of the Federal Bureau of Investigation. Teshima entered his plea before U.S. Magistrate Judge Louisa S. Porter. He is scheduled to be sentenced on December 19, 2016 at 9 a.m. before U.S. District Judge Anthony J. Battaglia.
As part of his plea, Teshima has agreed to pay restitution of $825,341.
DEFENDANT
Stuart Teshima, 16CR2223-AJB Age: 50 San Diego, CA
CHARGE
Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum Penalties: 20 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
Baltimore Man Sentenced to 27 Years in Federal Prison for Two Murder for Hire SchemesRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Tavon Slowe, age 24, of Baltimore, Maryland, today to 27 years in federal prison, followed by three years of supervised release, for charges arising from two murder for hire contracts.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, in March of 2012, a fight occurred near West Patterson Park Avenue and Chase Street. One of the participants was Gregory Parker. A few days later, an individual was given a “contract” to kill Gregory Parker. The individual arranged with Slowe to kill Gregory Parker for $5,000.
On March 16, 2012, the individual called Slowe on a cell phone and at approximately 2:30 p.m., Slowe drove his silver Honda Accord to meet the individual. Davon Sanford was seated in the front passenger seat. The individual told Slowe where Parker could be found and described Parker as wearing a blue floppy hat. Less than 90 minutes later, Gregory Parker was shot multiple times by Davon Sanford with a 9mm semi-automatic pistol in the 2300 block of East Chase Street in Baltimore City. Fourteen shell casings were found at the scene. Parker was wearing a blue floppy hat when he was shot and killed. Video surveillance depicts the shooter running from the murder scene and getting into a car driven by Slowe.
In March 2013, at the direction of the FBI, the individual called Slowe from a jail phone and told Slowe that he had been sentenced to a lengthy incarceration period after being set up by a person he had known since he was four years old. Slowe agreed to commit a murder for money. Slowe requested two guns to commit the murder. The individual told Slowe that another person would meet with Slowe to provide the money and guns.
On April 26, 2013, at the FBI’s direction, an undercover officer met with Slowe, and Slowe agreed to meet her again at a later date to receive the handguns and money. Slowe was upset that he was not getting the handguns that day and would only be paid $3,000 up front, arguing that it is usually $5,000.
On April 29th, the individual spoke with Slowe and worked out details concerning the murder for hire. Slowe stated that if the intended victim was not alone, Slowe would kill the other person as well. Slowe also expressed concerns over the undercover officer because he did not know her.
On April 30, an arrest operation was planned in which the undercover officer was going to meet with Slowe and provide him the guns that he requested for the murder-for-hire. Slowe did not show up for this meeting.
On August 8, 2013 Baltimore Police arrested Slowe on drug and gun charges, and Slowe was detained.
On February 4, 2014, at the direction of the FBI, the individual called Slowe’s half-brother to hire him for the same murder. The individual had previously used the brother, in addition to Slowe, for murder-for-hire contracts in Baltimore. The brother accepted this contract from the individual. Later that same day, the brother received a recorded jail call from Slowe in which the brother explained that he received a call from the individual and that he was going to meet the individual’s girl that day. Slowe cautioned his brother about the possibility of the “girl” being a police officer or “one of them.” Additionally, Slowe admitted to taking the contract to kill, but that he did not show up on April 30, 2013 because he believed the “girl” was a police officer.
On September 23, 2016, Chief Judge Blake sentenced co-defendant Davon Sanford, a/k/a “Chronic,” age 33, of Baltimore, to 30 years in prison, followed by five years of supervised release, after Sanford pleaded guilty to discharging a firearm during a crime of violence, resulting in death.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department, Safe Streets Task Force and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Joshua T. Ferrentino, who prosecuted the case.
Andover Man Pleads Guilty to Meth ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Bradley J. Hollenbeck, 36, of Andover, NY, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to conspiracy to manufacture, possess with intent to distribute, and to distribute, 50 grams or more of a mixture and substance containing methamphetamine. The charge carries a minimum penalty of five years in prison, a maximum of 20, and a $5,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that between January 2011 and late 2014, the defendant engaged in the practice of “smurfing,” buying small quantities of pseudoephedrine, at local pharmacies. Hollenbeck did so to get around restrictions on purchasing products containing pseudoephedrine. This is the most important chemical necessary in the process of manufacturing methamphetamine.
The conviction is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson, New York Division, the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb, the Wellsville Police Department, under the direction of Chief Timothy O’Grady, U.S. Border Patrol, under the direction of Patrol Agent in Charge Steven Oldman, and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.
Sentencing is scheduled for January 17, 2016, before Judge Vilardo.Anchorage Man Sentenced to 105 Total Months for Drug Trafficking and Firearms CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Mark Earl Pitoscia, 41, of Anchorage, was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 105 total months in prison for possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, followed by five years of supervised release. The court sentenced Pitoscia to 45 months in prison on count one, possession of methamphetamine with intent to distribute, followed by 60 months in prison on count two, possession of a firearm in furtherance of a drug trafficking crime, with the sentences to be served consecutively.
In November 2015, Pitoscia was seen in the Carrs grocery store parking lot in Wasilla, inside a vehicle, measuring methamphetamine on a digital scale. Pitoscia was searched and he was found in possession of 27 grams of actual methamphetamine, a digital scale, and a Glock handgun.
Prior to imposing sentence, Judge Burgess noted the seriousness of the crime given the quantity of methamphetamine and the presence of a firearm.
U.S. Attorney Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Alaska State Troopers for the successful investigation and prosecution of this case.
Ambulance Company Owner Sentenced to 10 Months in PrisonRead the Press Release
Bassem Kuran, 23, of Philadelphia, PA, was sentenced today to ten months in prison for making false statements to Medicare through VIP Ambulance, Inc., an ambulance company that Kuran owned and which he served as President. The Honorable Gerald J. Pappert, United States District Judge, ordered that upon Kuran’s release from prison, he must serve three years of supervised release, and further ordered Kuran to pay restitution to Medicare in the total amount of $66,901.93.
At his guilty plea hearing, Kuran admitted that through his company, VIP, he submitted false billings for the purported transport of three patients that VIP did not actually transport. He also submitted billings for patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. As a result of the fraudulent scheme at VIP, the Medicare program paid nearly $67,000 for fraudulent claims from VIP for these three patients.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Paul W. Kaufman.
10 Virgin Islands Women Indicted on Tax-Related ChargesRead the Press Release
St. Croix, USVI – The last of 10 Virgin Islands women indicted by a federal grand jury on tax-related charges made her initial appearance Monday before U.S. Magistrate Judge George W. Cannon on St. Croix, United States Attorney Ronald W. Sharpe announced. The remaining nine women made their initial appearances last week, and all of them were released pending trial.
On September 15, 2016, a federal grand jury returned a 119-count indictment against the women, charging them with Conspiracy to Defraud the United States, Theft of Government Property and Aggravated Identity Theft. The women were identified in the indictment as Joanne V. Benjamin, 36; Sylvia P. Benjamin, 36; Lynell Hughes, 33; Thema Liverpool, 28; Jacinta A. Gussie, 54; Indica Greenidge, 25; Nisha Brathwaite, 35; Darleen Thompson, 34; Nicolette Alexander, 25; and Sheba Rashida Young, 40.
Seven of the women: Sylvia Benjamin, Brathwaite, Gussie, Hughes, Liverpool, Young and Joanne Benjamin made their initial appearances before Judge Cannon on St. Croix. Greenidge and Alexander made their initial appearances before U.S. Magistrate Judge Patrick Hunt in Ft. Lauderdale, Florida; and Thompson made her initial appearance before U.S. Magistrate Judge Gregory J. Kelly in Orlando, Florida.
The 119-count indictment is the result of years of investigative work by the Internal Revenue Service, Criminal Investigations, which conducted a probe into a massive stolen identity/tax refund fraud scheme, United States Attorney Sharpe said. According to the indictment, the scheme involved the filing of numerous false income tax returns, the use of stolen identifications and the designation of illegal refunds to the women’s bank accounts. The scheme resulted in the payment of illegal income tax refunds totaling hundreds of thousands of dollars, according to the indictment.
If convicted, the women face maximum sentences of 10 years in prison and a $250,000.00 fine for the Conspiracy and Theft of Government Property offenses. Additionally, they face a mandatory sentence of two years’ imprisonment if convicted of Aggravated Identity Theft.United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
10 Local Residents Among 15 Indicted for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that eight Springfield, Mo., residents and two Willard, Mo., residents are among 15 defendants indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine in Greene County, Mo.
Patrick Roger Brigaudin, 54, Timothy Garth Hall, 55, Jennifer Louise Minor, 41, Amber Marie Vantuyl, 35, Gary Lee Driggers, 64, William Frank Eft, 66, Leah Renee Binney, 55, and William David Watts, 58, all of Springfield, Gayla Rochelle Phillips, 41, and Richard Todd Sherwood, 58, both of Willard, Mo., Adrian Ortiz-Corrales, 41, and Eduardo Diaz, 52, both of Las Vegas, Nevada, and Carlos Alberto Luna, 42, Federico Herrera-Preciado, 51, and Maria Zetina-Ortega, 28, who have no known address, were charged in a 37-count second superseding indictment returned by a federal grand jury in Springfield on Wednesday, Sept. 28, 2016. The second superseding indictment replaces an earlier indictment and includes additional charges and defendants.
According to court documents, law enforcement officers in Texas interdicted a shipment of approximately 15 pounds of methamphetamine, of which nine pounds was allegedly being delivered to Brigaudin, in March 2015. Brigaudin was arrested with Hall, Diaz and Ortiz-Corrales on Feb. 29, 2016, when law enforcement officers executed a search warrant at his residence. According to court documents, Diaz and Ortiz-Corrales were in the garage and were in the process of accessing a hidden compartment underneath the bed of a 1994 Dodge pickup. Brigaudin was taken into custody as he exited the back door of the residence. Officers found approximately 12 pounds of methamphetamine and six and half pounds of heroin inside the truck’s hidden compartment. While officers were at Brigaudin’s residence, Hall arrived, driving a motorcycle, and was placed under arrest.
The federal indictment alleges that all of the defendants participated in conspiracy to distribute methamphetamine in Greene County from October 2013 to Feb. 29, 2016. The federal indictment also alleges that Brigaudin, Ortiz-Corrales, Phillips, Luna, Herrera-Preciado and Zetina-Ortega participated in a money-laundering conspiracy during that time by conspiring to conduct financial transactions that involved the proceeds of illegal drug trafficking.
Ortiz-Corrales and Diaz are also charged together in one count of possessing one kilogram or more of heroin with the intent to distribute.
In addition to the drug-trafficking and money-laundering conspiracies, Brigaudin is charged with four counts of distributing methamphetamine and one count of attempting to possess methamphetamine with the intent to distribute. Brigaudin, Ortiz-Corrales and Diaz are charged together in one count of possessing methamphetamine with the intent to distribute.
Brigaudin and Phillips are charged together in one count of money laundering. Ortiz-Corrales and Luna are charged together in two counts of money laundering. Ortiz-Corrales and Herrera-Preciado are charged together in two counts of money laundering. Ortiz-Corrales, Herrera-Preciado and Zetina-Ortega are charged together in two counts of money laundering.
Vantuyl, Hall, Binney, Eft and Sherwood are each also charged with one count of possessing methamphetamine with the intent to distribute.
Minor is also charged with two counts of distributing methamphetamine. Phillips is charged with one count of distributing methamphetamine.
Driggers is also charged with four counts of using a telephone to facilitate the drug-trafficking conspiracy. Binney is charged with two counts of using a telephone to facilitate the drug-trafficking conspiracy. Minor, Eft, Hall, Phillips, Watts and Sherwood are each charged with one count of using a telephone to facilitate the drug-trafficking conspiracy.
Watts is also charged with maintaining a premises that he made available for unlawfully storing, distributing, and using methamphetamine.
The indictment also contains forfeiture allegations, which would require Brigaudin to forfeit to the government any property derived from the proceeds of the alleged drug-trafficking conspiracy, including $5,603, a 2006 Lincoln Mark LT and a 1998 Harley Davidson motorcycle, all of which were seized by law enforcement officers. A forfeiture allegation would require Phillips to forfeit $18,000, which was seized by law enforcement officers. A forfeiture allegation would require Ortiz-Corrales to forfeit $880 that was seized by law enforcement officers.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Timothy A. Garrison. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Ozark, Mo., Police Department, the Greene County Sheriff’s Department, the COMET (Combined Ozarks Multijurisdictional Enforcement Team) Task Force and the South Central Drug Task Force.
Monday 3 October 2016
Zuni Pueblo Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Dalchimsky Begay, 26, an enrolled member of the Zuni Pueblo who resides in Rio Rancho, N.M., pled guilty today in federal court in Albuquerque, N.M., to a sexual abuse of a minor charge.
Begay was arrested in June 2016, on an indictment charging him with sexually abusing a minor who was between 12 and 16 years of age. According to the indictment, Begay committed the crime on Feb. 14, 2015, on the Navajo Nation in San Juan County, N.M.
During today’s proceedings, Begay pled guilty to the indictment and admitted engaging in a sexual act with the victim who was between 12 and 16 years of age and was four years younger than Begay.
At sentencing, Begay faces a statutory maximum penalty of 15 years in federal prison. He also will be required to register as a sex offender after he completes his prison sentence. Begay was remanded into custody pending his sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Utah-Based Lenders Agree to Pay Nearly $10 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
Primary Residential Mortgage Inc. (PRMI) and SecurityNational Mortgage Company (SecurityNational) have agreed to pay the United States $5 million and $4.25 million, respectively, to resolve separate allegations that they violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. Both lenders are headquartered in Salt Lake City, Utah.
“The FHA program provides important economic support for homeownership and community development,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The department has and will continue to ensure that program participants adhere to applicable requirements and will pursue those that knowingly misuse the program for their own gain and to the detriment of homeowners and the public.”
“PRMI obtained HUD insurance by intentionally claiming its loans met HUD’s quality standards while knowing many of its loans did not meet those standards,” said Acting U.S. Attorney Bob Troyer for the District of Colorado. “When those loans failed, it was the government who suffered the loss. We will continue our efforts to hold housing lenders accountable for fraudulent conduct.”
“HUD relies on the Direct Endorsement Lenders like SecurityNational to make sure their loans are made only after a rigorous and thorough review,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “In this case, SecurityNational has admitted it approved loans that it had no business endorsing, potentially damaging a vital FHA program and other potential borrowers.”
Since at least January 2006, SecurityNational and PRMI have participated as Direct Endorsement Lenders (DELs) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages 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. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
As part of the settlements announced today, both PRMI and SecurityNational admitted they certified loans for FHA mortgage insurance that did not meet HUD underwriting requirements regarding borrower creditworthiness and eligibility.
PRMI admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:
- PRMI failed to document the assets used to qualify the borrower for FHA mortgage insurance and omitted liabilities owed by the borrower from the underwriting analysis;
- PRMI failed to document income used to qualify the borrower for FHA mortgage insurance;
- PRMI failed to verify the borrower’s earnest money deposit; and
- The borrower was delinquent on a second, pre-existing FHA mortgage.
SecurityNational admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:
- The borrower was delinquent on federal debt and had an unpaid court-ordered judgment;
- The borrower was four months delinquent on the underlying mortgage SecurityNational refinanced into an FHA loan;
- The mortgage loan amount exceeded HUD’s loan to value requirements;
- SecurityNational failed to document income used to qualify the borrower for FHA mortgage insurance; and
- SecurityNational failed to analyze the borrower’s delinquent credit history.
As a result of PRMI’s and SecurityNational’s conduct and omissions, HUD insured loans endorsed by each lender that were not eligible for FHA mortgage insurance under the DEL program and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“Today’s settlements resolve allegations that these lenders, entrusted by American taxpayers to abide by FHA rules, failed to comply with certain FHA origination, underwriting and quality control requirements,” said Inspector General David A. Montoya for HUD. “The settlements demonstrate a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”
The settlement with SecurityNational is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey. The settlement with PRMI is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch, and the U.S. Attorney’s Office for the District of Colorado.
The claims asserted against SecurityNational and PRMI are allegations only and there has been no determination of liability.
Utah-Based Lender Agrees to Pay $4.25 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
NEWARK, N.J. – A lender headquartered in Salt Lake City, Utah, has agreed to pay $4.25 million to resolve allegations that it violated the False Claims Act by originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, U.S. Attorney Paul J. Fishman and the U.S. Department of Justice announced today.
As part of the settlement agreement, SecurityNational Mortgage Co. (SecurityNational) admitted it certified loans for FHA mortgage insurance that did not meet HUD underwriting requirements regarding borrower creditworthiness and eligibility.
Since at least January 2006, SecurityNational has participated as a Direct Endorsement Lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages 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. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
“HUD relies on the Direct Endorsement Lenders like SecurityNational to make sure their loans are made only after a rigorous and thorough review,” U.S. Attorney Fishman said. “In this case, SecurityNational has admitted it approved loans that it had no business endorsing, potentially damaging a vital FHA program and other potential borrowers.”
“The FHA program provides important economic support for homeownership and community development,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said. “The Department has and will continue to ensure that program participants adhere to applicable requirements, and will pursue those that knowingly misuse the program for their own gain and to the detriment of homeowners and the public.”
SecurityNational admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:
- the borrower was delinquent on federal debt and had an unpaid court-ordered judgment;
- the borrower was four months delinquent on the underlying mortgage SecurityNational refinanced into an FHA loan;
- the mortgage loan amount exceeded HUD’s loan to value requirements;
- SecurityNational failed to document income used to qualify the borrower for FHA mortgage insurance; and
- SecurityNational failed to analyze the borrower’s delinquent credit history.
As a result of SecurityNational’s conduct and omissions, HUD insured loans endorsed by each lender that were not eligible for FHA mortgage insurance under the DEL program, and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“Today’s settlements resolve allegations that these lenders, entrusted by American taxpayers to abide by FHA rules, failed to comply with certain FHA origination, underwriting and quality control requirements,” Inspector General David A. Montoya for HUD said. “The settlements demonstrate a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”
The settlement with SecurityNational is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the District of New Jersey. The government is represented by Senior Litigation Counsel Anthony J. LaBruna and Assistant U.S. Attorney Mark Orlowski of the Civil Division of the U.S. Attorney’s Office for the District of New Jersey. A similar settlement in a case investigated by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the District of Colorado, was also announced today.
The claims asserted against SecurityNational are allegations only, and there has been no determination of liability.
United States Reaches Settlement with Section 8 LandlordsRead the Press Release
DENVER – Bob Troyer, Acting U.S. Attorney for the District of Colorado, today announced that Deborah Conrads and Lawrence Conrads – residential landlords in Cortez, Colorado – have paid $73,650 to resolve allegations that they defrauded the Department of Housing and Urban Development by charging low-income tenants excessive rent in violation of HUD’s Housing Choice Voucher Program.
HUD’s Housing Choice Voucher Program provides low-income families, the elderly, and the disabled with assistance to afford decent, safe and sanitary housing in the private market. Housing choice vouchers are funded by HUD and administered locally by public housing authorities. When a landlord agrees to participate in the Housing Choice Voucher Program, the landlord benefits by receiving housing assistance payments directly from the public housing authority each month to cover a substantial portion of the rent of a unit. In exchange, the landlord agrees, among other things, that the public housing authority will determine the maximum rent for the unit and that the landlord will not receive any payments from the family for rental of the unit other than the family’s portion of the rent authorized by the public housing authority.
In 2001, the Conrads entered into such a housing assistance payment contract with the Housing Authority of the County of Montezuma for one of the Conrads’ rental units in Cortez, Colorado. The United States contends that despite the terms of that agreement, as recently as 2014 the Conrads knowingly charged the tenant family additional unauthorized rent and concealed these side payments from the public housing authority. In one instance, when the housing authority denied the Conrads’ request for a rent increase, the Conrads nonetheless entered into a lease extension that increased the rent paid by the family. Subsequent lease extensions in later years further increased the rent the Conrads were charging the family. The Conrads did not seek approval from the Montezuma Housing Authority for these later increases and did not provide the housing authority with copies of any of the lease extensions. The United States alleges that through this scheme, the Conrads extracted at least $18,000 in excess rent from the family while at the same time the Conrads were cashing housing assistance payments they received from federal funds as Housing Choice Voucher Program landlords.
“When landlords take advantage of the Section 8 program by charging low-income families excessive rent, they undermine HUD’s mission to create strong, sustainable, inclusive communities and quality affordable homes for all,” said Acting U.S. Attorney Troyer. “Landlords who defraud HUD face stiff civil penalties.”
“HUD has been working with the US Attorney’s Office to pursue justice against the abuse of the Housing Choice Voucher Program, a crucial resource intended to assist low income individuals and families with housing costs," said HUD Rocky Mountain Regional Administrator Rick M. Garcia. "Section 8 rental assistance is in high demand in this region, and fraudulent practices within these programs will not be tolerated.”
The claims settled by this agreement are allegations only. In entering into a civil settlement, the Conrads did not admit liability.
The United States Attorney’s Office thanks the Department of Housing and Urban Development, Office of the Inspector General, for their hard work and cooperation that made this recovery possible. The United States was represented in this matter by Assistant United States Attorney Jasand Mock of United States Attorney’s Office in Denver, Colorado.
United States Citizen Extradited to Los Angeles from Tonga to Face Investment Fraud ChargesRead the Press Release
LOS ANGELES – A U.S. citizen who formerly resided in Turlock, California, and Auckland, New Zealand, was returned to the United States by Tonga and is expected to appear in court today to face federal investment fraud charges.
Antone Thomas Pedras, who also went by Chris Pedras, 64, arrived at LAX last Friday in the custody of the United States Marshals Service. Pedras was returned to the United States to face eleven counts of wire fraud in connection with several fraudulent investment schemes.
In a first superseding indictment returned by a federal grand jury on August 6, 2014, Pedras is charged with inducing investors to give money to “Maxum Gold Trade Program,” which he claimed was a “low-risk investment with monthly returns ranging between 4 to 8 percent.” Pedras is also charged with soliciting investments in the “FMP Renal Program,” which he claimed “would be publicly traded and would operate kidney dialysis clinics in New Zealand.” To bolster his false claims to his investors, Pedras created false account statements for the Maxum website, www.maxumgoldbnkpcpt.com.
“Those who commit fraud against residents of the United States will not escape punishment simply by residing overseas,” said United States Attorney Eileen M. Decker. “This case and the extradition demonstrate the commitment of the Department of Justice to holding responsible for their actions criminals both here and outside of the country who commit fraud against U.S. residents.”
If convicted of the charges in the indictment, Pedras faces a statutory maximum sentence of 220 years in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
"The FBI is committed to investigating complex high-yield investment schemes," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "As the return of Mr. Pedras makes clear, we are also committed to seeking justice for victims within the U.S. and beyond its borders."
The U.S. Securities and Exchange Commission has filed a parallel civil case against Pedras.
The investigation into Pedras is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Ivy Wang of the Santa Ana office.
United States Attorney Announces Launch of Outreach Program to Address Heroin and Opioid AbuseRead the Press Release
LOS ANGELES – United States Attorney Eileen M. Decker announced today the launch of a new community outreach program to address the growing epidemic of heroin and prescription opioid abuse.
Because of the public health crisis stemming from the abuse of prescription drugs such as OxyContin and Vicodin and in conjunction with the Department of Justice’s recent Heroin and Opioid Awareness campaign, prosecutors and staff from the United States Attorney’s Office, partner law enforcement agencies and public health officials will present programs and panel discussions to area colleges. Over the coming weeks and months, the expert team will discuss this public health threat, highlight a multi-prong approach designed to save lives, and work to reduce the terrible impact these drugs have on individuals and families.
“The increased use of heroin and opioids has infected communities from coast to coast and in many neighborhoods within our district. At the United States Attorney’s Office, we are committed to stemming the flow of illegal opioids and heroin both in the courtroom and in the community,” said United States Attorney Eileen M. Decker. “Prosecutors in my office have targeted drug traffickers who import heroin and doctors who issue prescriptions for addictive painkillers without any medical purpose. We are working with our law enforcement colleagues to develop new strategies to investigate drug trafficking organizations that import and distribute opioids and heroin, to better track prescription drugs that may be diverted to street users, and to confront new challenges that include the increasing abuse and death rates associated with even more powerful narcotics such as fentanyl. Our enforcement efforts have helped reduce the availability of opioids on the street and have had a deterrent effect, particularly in the medical community.”
“Law enforcement agencies throughout the country are seizing record amounts of heroin and other opioids and first responders are witnessing the devastating effects of these substances in numbing proportions,” said DEA Special Agent in Charge John S. Comer. “DEA will continue to target the illicit trafficking organizations responsible for these detriments, but we’re also committed to educating the public about the dangers of drug misuse and reducing demand – awareness is a crucial element in combatting this epidemic.”
Beginning this week, federal prosecutors will be joined by agents from the Drug Enforcement Agency (DEA), expert physicians and public health officials on college campuses. These events are designed to educate students on the dangers of prescription drugs, the presence of counterfeit drugs, and what to do in the event of a potential overdose. Those participating in the discussion will be able to view excerpts from the FBI-produced film “Chasing the Dragon: The Life of an Opioid Addict,” which illustrates the harsh reality of opioid addiction. Following confirmed presentations at Occidental College, Cal State Los Angeles and Chapman University, prosecutors hope to bring the program to other campuses across the region. During these meetings, prosecutors hope to hear ideas from the members of the public on what more the Justice Department can do to combat this problem.
For further information or to schedule a presentation at your college or community organization, please contact the United States Attorney’s Office at [email protected].
Ukrainian Sail Boaters Convicted of Smuggling $10 Million Worth of Cocaine on “Ghost Ship”Read the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Igor Polshyn and Oleskii Tsurkan guilty of conspiring to possess and possession with intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States. Each faces a maximum penalty of life in federal prison. Their sentencing hearings are scheduled for January 10, 2017.
According to evidence presented at trial, on November 7, 2015, a U.S. Customs and Border Protection P-3 Orion detected a sailboat 56 miles south of the Dominican Republic, traveling at night on the high seas with no lights, and on a course to travel through the Mona Passage between the Dominican Republic and Puerto Rico. The Orion crew alerted the United States Coast Guard, which dispatched the USCG Cutter Bernard C. Webber to interdict the vessel. The Webber interdicted the sailboat 26 miles south of the Dominican Republic, still on a course to take it through the Mona Passage. The sailboat flew the Spanish flag and bore a Spanish registration number on the stern. Polshyn was the master of the vessel and Tsurkan its sole crew member.
The Coast Guard eventually boarded the sailboat and, during an initial safety sweep, found over 100 kilograms of cocaine over the forward most bilge access. Subsequent searching recovered an additional 270 kilograms of cocaine, for a total of 370 kilograms of cocaine (814 lbs.), including cocaine commingled with the food supplies of the sailboat crew. Officials from DEA-Madrid and the Coast Guard Investigative Service traced the vessel registration number back to a real sailboat near Barcelona, Spain. The sailboat interdicted by the Coast Guard was a “ghost ship,” using the stolen identity of a real vessel in Barcelona, to mask its true identity. The recovered cocaine had an approximate wholesale value of $10 million.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, the Coast Guard Investigative Service, and the United States Coast Guard. It is being prosecuted by Assistant United States Attorneys Thomas N. Palermo and Walter E. Furr.
U.S. Marshal, U.S. Attorney to Lead Community Policing Forum in NampaRead the Press Release
BOISE – The United States Attorney’s Office and the U.S. Marshal Service for the District of Idaho will participate in a community policing forum hosted by the College of Western Idaho on Wednesday, October 5, 2016, from 5:30 p.m. to 7 p.m. The community policing forum is one of more than 400 community policing events the Department of Justice is leading throughout the United States this week, which President Barack Obama has designated as National Community Policing Week. Community members, local and federal law enforcement agencies, and students from CWI’s law enforcement program are invited to attend the event at the Nampa Campus Academic Building, second floor atrium, 5500 E. Opportunity Drive.
“Strengthening the relationship between law enforcement officers and the communities we serve and protect is one of the top priorities of the Department of Justice and for the U.S. Attorney’s Office in the District of Idaho,” said Wendy J. Olson, U.S. Attorney for the District of Idaho. “The purpose of National Community Policing Week and of our forum at the College of Western Idaho is to foster dialogue, promote cooperation, and help citizens and law enforcement officers get to know one another as partners in our shared efforts to build stronger, safer, and more just communities for every American.”
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect and serve. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
Olson and U.S. Marshal Brian Underwood will lead the forum, highlighting outstanding community policing work from throughout the Treasure Valley. They will announce the 14 recipients of the first Excellence in Community Policing Awards, sponsored by their offices.
“We are fortunate in Idaho to have outstanding community policing efforts at every level of law enforcement,” said Underwood. “We are pleased to be recognizing fourteen officers and agents from three different agencies for their excellence in community policing in the Treasure Valley. These officers have demonstrated a commitment to working with community members and making their neighborhoods and their schools safer and stronger.”
Olson and Underwood noted that the Community Policing Forum is the culmination of public meetings and open houses that they have hosted since early August in the three Idaho locations where both have offices, Boise, Pocatello and Coeur d’Alene.
“U.S. Marshal Brian Underwood and I are committed to providing the people we serve with an opportunity to meet and raise concerns with us as federal law enforcement leaders in Idaho,” said Olson. “We hope that Treasure Valley residents will join us on Wednesday evening to learn more about the outstanding efforts in community policing in Idaho and to help us identify where we need improvement and what we can do better.”
U.S. Department of Justice Awards over $22 Million to State of Nevada to Assist Crime VictimsRead the Press Release
LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, is pleased to announce that the U.S. Department of Justice recently announced grant awards of over $22 million to the State of Nevada to provide financial assistance and services to federal and state victims of crime during federal fiscal year 2016.
On Sept. 8, the Nevada Department of Health and Human Services was awarded $19,981,431 in victim assistance funds, and on Aug. 22, the Nevada Department of Administration was awarded $2,049,000 in victim compensation funds. The awards were made from the Crime Victims Fund, which is supported primarily by fines paid by federal criminal offenders – not taxpayers. The fines are collected by United States Attorney’s Offices, the United States Courts, and the Federal Bureau of Prisons, and over 90 percent of Fund deposits are distributed annually by the Department of Justice to states and territories to support state victim compensation and victim assistance programs. Any remaining funds are used for training and technical assistance, national demonstration projects and to improve handling of child abuse cases in Indian communities. In addition, these funds support victim witness coordinator and advocate positions for U.S. Attorney Offices, victim specialist positions in the FBI and a federal victim notification system.
“This is the highest amount of funding ever provided to the State of Nevada to directly help victims of crimes and programs that support them,” said U.S. Attorney Bogden. “The United States Attorney’s Office is pleased to support both the collection efforts for the Crime Victims Fund, which provides these program dollars, and the allocation of these resources to help Nevada’s crime victims.”
The crime victim assistance funds will be competitively awarded by the State of Nevada to local community-based organizations that provide direct services to crime victims. Funding is provided to domestic violence shelters, rape crisis centers, child abuse victims’ programs and other initiatives that provide counseling, advocacy or emergency transportation to victims. Nevada can also use these funds for sexual assault programs or victim service units in law enforcement agencies, prosecutors’ offices and social service agencies.
The crime victim compensation funds work similarly to private insurance, providing reimbursement to, or on behalf of, crime victims for expenses such as medical costs, mental health counseling, funeral and burial costs, and lost wages, as a result of being a crime victim.
More information on Nevada’s victim compensation and victim assistance efforts is available from the State of Nevada Department of Administration Victims of Crimes Program at (702) 486-2740 in southern Nevada or (775) 688-2900 in northern Nevada, or the State of Nevada Department of Health and Human Services, at (775) 684-7946. Questions may also be directed to OJP’s Office of Communications at (202) 307-0703.
U.S. Department of Justice Awards $13.7 Million to Hire Community Policing Officers in New JerseyRead the Press Release
NEWARK, N.J. – The U.S. Department of Justice, through its Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP), awarded a total of $13,702,158 to New Jersey police departments for the purposes of creating, or in some cases protecting, 95 law enforcement positions dedicated to improving community policing efforts in the state, U.S. Attorney Paul J. Fishman announced.
The awards were part of $119 million in grants funds announced today by the U.S. Justice Department that were given to 184 law enforcement agencies across the nation. The New Jersey recipients include:
Agency Name
Award Amount
Officers Awarded
Asbury Park Police Department
$474,055
2
Camden County Police Department
$1,875,000
15
East Orange
$1,375,000
11
Essex County Sheriff's Office
$1,875,000
15
Borough of Fort Lee
$125,000
1
Township of Hamilton
$375,000
3
Hudson County Sheriff's Office
$1,500,000
12
Jersey City
$1,875,000
15
City of Orange Township
$1,408,050
6
City of Paterson
$2,820,053
15
CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts. All CHP applicants were asked to identify a specific crime and disorder problem area and how funding would be used to initiate or enhance their capacity to implement community policing approaches to that problem area.
In 2016, the COPS Office gave additional consideration to applicant agencies selecting the category of “Building Trust,” based on the final report of the President’s Task Force on 21st Century Policing. Additional consideration was also given to agencies that selected the areas of school-based policing, homicide or violent crime, and homeland security. Applicants who committed to hiring or rehiring at least one military veteran under CHP also received additional consideration for funding. The full list of recipients can be found here: http://www.cops.usdoj.gov/default.asp?Item=2888.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 129,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
U.S. Attorney Rose Announces More Than $2.8 Million in Federal Grants Awarded to Hire Community Policing OfficersRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that over $2.8 million in grant funding has been awarded in the Western District through the Department of Justice, Office of Community Oriented Policing (COPS office) COPS Hiring Program (CHP), aimed at creating and/or rehiring 23 career law enforcement positions.
“The federal grants awarded build upon the Justice Department’s work to provide our local law enforcement partners with the resources they need to protect and serve their communities. The funds will be used to address specific law enforcement officers’ needs and to advance public safety through community policing and crime prevention efforts,” said U.S. Attorney Rose.
The three agencies awarded the grants in the Western District are the Charlotte Mecklenburg Police Department ($1,875,000), the Mooresville Police Department ($500,000) and the Monroe Department of Public Safety ($500,000).
CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts. The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing The complete list of award recipients can be found here: http://www.cops.usdoj.gov/default.asp?Item=2888.
National Community Policing Week
U.S. Attorney Rose also announced today that the Department of Justice has designated the week of October 3-7, 2016, as the inaugural National Community Policing Week. One of the key priorities of the Justice Department is to support and promote strong relationships between law enforcement and our communities. Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the individuals, families, and communities we serve and protect every day. At the center of community policing is the idea that all members of the community have a stake in the safety of our neighborhoods where we live and work and need to work together in solving the crime challenges our communities face.
“Community policing is about law enforcement partnering with communities to promote public safety and to proactively address the factors that give rise to crime and disorder. When the relationship between law enforcement and civilians is based on mutual trust and respect, our communities are safer, our neighborhoods are stronger and our citizens are more united. Trust, respect and mutual understanding is key to solving community problems. My Office is committed to promoting trust and building strong bonds between law enforcement and the communities we serve,” said U.S. Attorney Rose.
To promote Community Policing Week, the three U.S. Attorney’s Offices for the Western, Middle and Eastern Districts of North Carolina will hold a Community Policing Round Table for Sheriffs, Police Chiefs, and District Attorneys, on Friday, October 7, in Greensboro, N.C. U.S. Attorney Rose will participate on a panel to discuss best practices in community policing and to highlight collaborative programs and policing practices designed to advance public safety, strengthen police-community relations and foster mutual trust between local police officers and neighborhood residents.
For more information regarding National Community Policing Week please visit https://www.justice.gov/ag/community-policing-tour.
U.S. Attorney Patrick Miles Hosts Justice Forum in Grand Rapids to Kickoff National Community Policing WeekRead the Press Release
GRAND RAPIDS, MICHIGAN — President Barack Obama designated the week of October 2-8, 2016 as National Community Policing Week and the U.S. Department of Justice is leading events nationwide to support community policing. Locally, U.S. Attorney Patrick Miles for the Western District of Michigan convened area stakeholders today to discuss police and community relations in Grand Rapids. "The forum provided an opportunity for local community leaders, law enforcement, youth advocates, and state and local officials to establish and maintain trusting relationships, critically examine police-community issues in our city and seek solutions together," said U.S. Attorney Miles. A variety of representatives from local and federal law enforcement, the city of Grand Rapids, community and student groups, service organizations, and religious congregations met together at LINC Up in Grand Rapids with the shared aim of strengthening relationships between law enforcement officers and the community members they serve.
At the outset of the forum, U.S. Attorney Miles, Grand Rapids Chief of Police David M. Rahinsky, and Grand Rapids Mayor Rosalynn Bliss shared their respective observations on local challenges in the area of police-community relations, as well as insights and strategies for making Grand Rapids stronger, safer, and more unified. During the second part of the forum, several stakeholders and area residents spoke briefly about their perception of police-community relations, obstacles to positive police interactions, and ideas for effecting change.
During the third part of the Justice Forum, the entire group (over 25 people) had a conversation about a wide range of topics including officer training and education, community engagement, implicit bias, officer safety, promoting diversity within police departments, crisis response, transparency and officer accountability, and fostering positive police-community encounters. "The working group aspect of the forum was especially valuable," said U.S. Attorney Miles. "Participants spoke candidly with one another about a wide range of topics relating to interactions between the police and the community, and how the community and law enforcement can work together to improve the safety and wellness of all community members."
Copied below is a list of invited organizations and speakers that presented at the Justice Forum in Grand Rapids.
Speakers:
U.S. Attorney Patrick A. Miles, Jr.
City of Grand Rapids Chief of Police David M. Rahinsky
City of Grand Rapids Mayor Rosalynn Bliss
Community Presenters:
Darel Ross II, LINC UP
Dr. Aly Mageed, M.D.
Roberto Torres, Hispanic Center of Western Michigan
Eugene Brown, Todd Harris, Jr., Je’ana Mason, and Danielle McMillon, Students, Am I Next
Cle Jackson, Greater Grand Rapids NAACP
Four Students from Grand Rapids Area Schools
Larry Johnson, Grand Rapids Public Schools
The forum today is just one of several efforts U.S. Attorney Miles has launched or participates in that are designed to strengthen police-community relations and engagement:
• U.S. Attorney Miles co-founded ALPACT (Advocates and Leaders for Police and Community Trust) groups in Grand Rapids and Benton Harbor. ALPACT groups bring together police and community stakeholders on a regular basis to discuss police and community relations, promote community trust, and reduce tension. The meetings provide a forum to discuss police-related shootings and other issues that test police and community relationships. The ongoing communications result in relationships between ALPACT members and law enforcement that foster a trusting environment where tensions can be voiced and diffused.
• For youth, U.S. Attorney Miles created the Justice Scholars program last year, in which middle-school students are exposed to careers in law enforcement and learn about the Constitution and the criminal justice system. The academic year concludes with a mock trial performed by the students.
• U.S. Attorney Miles also meets semi-annually with leaders in the Middle Eastern and Muslim American communities in the Grand Rapids area. The meetings provide a forum to address issues of mutual concern and to foster better understanding on topics ranging from cultural sensitivity to hate crimes; from police and community relations to law enforcement policies and procedures.
• U.S. Attorney Miles also serves as co-chair of the Michigan Alliance Against Hate Crimes (MIAAHC) in Lansing, along with the U.S. Attorney for the Eastern District of Michigan, Barb McQuade. MIAAHC consists of representatives from federal, state, and local law enforcement, civil rights organizations, community groups, educators and anti-violence advocates who work together to establish a coordinated statewide effort against hate crimes.
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U.S. Attorney Parker to Participate in Several Events along with Attorney General Lynch to Launch National Community Policing Week in DallasRead the Press Release
DALLAS – U.S. Attorney John Parker, of the Northern District of Texas, will launch National Community Policing Week by participating in several events in Dallas over a two-day period, October 3 - 4, 2016. Attorney General Loretta E. Lynch will travel to Dallas on Monday, October 3,2016 to hold a 21st Century Community Policing Youth Forum with U.S. Attorney Parker, students, officer cadets, and Jason Witten and Barry Church of the Dallas Cowboys known for their work to bring communities and law enforcement together.
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
“The selection of Dallas to launch National Community Policing Week is both an honor,” said U.S. Attorney John Parker. “We are fortunate to have some of the most proactive and thoughtful police leaders in the country in north Texas. They have not only embraced building trust and mutual respect with their communities, but are eager to share their knowledge and experience with the Attorney General and others as part of this ongoing national conversation.”
As part of the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will lead nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama will designate the week of Oct. 2-8, 2016, as National Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
21st CENTURY COMMUNITY POLICING YOUTH FORUM ON FACEBOOK LIVE
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Director Ron Davis of the Office of Community Oriented Policing Services
Jason Witten of the Dallas Cowboys
Barry Church of the Dallas Cowboys
WHEN: MONDAY, OCTOBER 3, 2016
2:30 p.m. CDT OPEN PRESS (Media Gather: 1:30 p.m. CDT//Final Access: 2:00 p.m. CDT)
DOJ FACEBOOK LIVE
WHERE: Sunset High School
2120 W. Jefferson Boulevard
Dallas, TX 75208
NATIONAL NIGHT OUT EVENT WITH THE DALLAS POLICE DEPARTMENT
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Mayor of Dallas Mike Rawlings
Director Ron Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
5:30 p.m. CDT
OPEN PRESS
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
MEDIA AVAILABILITY
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Director Ron Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
6:20 p.m. CDT
OPEN PRESS
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
For more information on National Community Policing Week or the Community Policing Tour, please visit https://www.justice.gov/ag/community-policing-tour.
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U.S. Attorney Announces Community Policing Grants in KansasRead the Press Release
TOPEKA, KAN. - Police departments in Wichita and Shawnee, Kan., have been chosen to receive Justice Department grants to pay for community policing officers, Acting U.S. Attorney Tom Beall said Monday.
The Wichita Police Department will receive $875,000 and the Shawnee Police Department will receive $625,000. The grants are part of $119 million the Justice Department’s Office of Community Policing Services is distributing nationally to 184 law enforcement agencies to create new -- or sustain existing --community policing positions.
“Kansas is a leader in the drive to build trust between law enforcement officers and the communities they serve,” Beall said. “These funds will help us keep it that way.”
The announcement comes during the national observance of Community Policing Week. Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities they are sworn to protect and serve. For more information see www.cops.usdoj.gov or read the 21st Century Policing Task Force Report at http://www.cops.usdoj.gov/pdf/taskforce/taskforce_finalreport.pdf
Beall will address community policing at 1 p.m. Wednesday when he speaks at the Kansas Peace Officers Association’s conference at the Doubletree by Hilton Airport, 2098 Airport Road in Wichita.
Tuskegee Man Charged in 10 Armed RobberiesRead the Press Release
Montgomery, AL--A federal grand jury returned a 23-count indictment against Tariq Khalil Jones, 34, of Tuskegee, Alabama, charging him with committing ten armed robberies in Alabama and Georgia while brandishing and discharging a firearm, and an attempted carjacking, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Jones is alleged to have robbed various convenience stores and other cash-heavy businesses, including:
- Dollar General on Notasulga Road in Tallassee, Alabama;
- Tiger Spirits on Webster Road, in Auburn, Alabama;
- Chevron Store 10 on West Longleaf Drive in Auburn, Alabama;
- QuickTrip convenience store on East Highway 34 in Newnan, Georgia;
- Marathon Service Station on Lafayette Parkway in LaGrange, Georgia;
- Wing N’ Burger Factory on Hogansville Road in LaGrange, Georgia;
- Papa John’s restaurant on South Memorial Drive in Prattville, Alabama;
- Family Dollar on 2nd Avenue in Opelika, Alabama;
- Family Dollar on Broadnax Street in Dadeville, Alabama; and
- Family Dollar on County Road 89 in Camp Hill, Alabama.
During each of these crimes, Jones is alleged to have pointed a firearm at victims. After the Prattville robbery, he is accused of firing the weapon at an occupied vehicle. Upon exiting the Family Dollar in Camp Hill, Alabama, Jones attempted to carjack a Volkswagen Beetle.
Jones was formally arraigned September 30, 2016 and entered a plea of not guilty to all charges. Jones faces a sentence of up to 15 years for each robbery count, a minimum of 7 years on each count charging brandishing a firearm, up to 15 years for the attempted carjacking, and a minimum of 10 years for the count of discharging a firearm. Jones is being held in custody pending his trial.
An indictment is merely a method of charging an individual with a crime and the defendant is presumed innocent until proven guilty at trial.
This case was investigated by the Federal Bureau of Investigation, the Auburn Police Division, the Camp Hill Police Department, the Coweta County Sheriff's Office (Newnan, GA), the Dadeville Police Department, the LaGrange, Georgia Police Department, the Opelika Police Department, the Prattville Police Department, and the Tallassee Police Department. Central Alabama CrimeStoppers was an instrumental part in identifying the subject accused of these crimes. Assistant United States Attorneys John Geer and Kevin Davidson are prosecuting the case.
The United States Announces Settlement to Remedy Federal Leak Prevention Violations at Gas Stations on Long IslandRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, and Judith A. Enck, Regional Administrator, United States Environmental Protection Agency (EPA) Region 2, today announced that the United States has entered into a settlement with Rachelann Yetim and five corporate entities through which she owned or operated three gas stations on Long Island that contain underground storage tanks (USTs). These USTs typically hold large quantities of gasoline and can cause significant environmental damage if allowed to leak. The settlement requires defendants to maintain strict compliance with regulations pertaining to the operation of USTs at those stations, submit reports to EPA demonstrating such compliance, and pay a civil penalty, which was calculated based on defendants’ financial condition. The settlement also provides for a series of penalties – including escalating monetary fines – if defendants engage in additional violations of the Resource Conservation and Recovery Act (RCRA). Earlier today, the Consent Judgment memorializing the settlement was approved by United States District Judge Joseph F. Bianco.
In 2014, the United States filed a federal civil environmental complaint against Ms. Yetim, her father Nedjet Yetim, and 15 related corporate entities for widespread violations of the federal leak prevention requirements for USTs at four gas stations on Long Island. As alleged in the complaint, defendants had, among other RCRA violations, failed to: monitor for leaks, provide for adequate protection against corrosion and overflows, adequately secure tanks when facilities were temporarily closed, maintain records of release detection monitoring, and provide necessary information to EPA about the tank systems. As additionally alleged in the complaint, the Yetims have been the principals of several corporate entities and have personally managed, directed, or conducted matters related to pollution and environmental compliance at the facilities. The corporate defendants, all of which are directly related to the individual defendants or were tenants at the relevant facilities, owned and/or operated the gas stations during the periods of the violations alleged in the complaint.
The evidence of public record with the New York State Department of Conservation demonstrates that there were releases from the tanks at all four facilities, each of which is located above a federally-designated Sole Source Aquifer. As set forth in the complaint, among other criteria, a Sole Source Aquifer is an aquifer that supplies 50% of the drinking water consumed within the Sole Source Aquifer’s boundaries. The Sole Source Aquifer designation is a tool to protect drinking water supplies in areas with few or no alternative sources to the groundwater resources, and where, if contamination occurred, using an alternative source would be extremely expensive. Nevertheless, defendants repeatedly failed to comply with numerous federal leak prevention requirements under RCRA.
Since the filing of the federal complaint, one of the gas stations has been permanently closed. Rachelann Yetim sought to bring the remaining three stations into compliance and cooperated with the EPA to effectuate necessary measures, which included several significant upgrades to the facilities and providing necessary information to EPA. The consent judgment with Rachelann Yetim and the five corporate entities through which she has owned and/or operated the USTs is the culmination of those efforts. Defendant Nedjet Yetim has not settled with the government and is the subject of a pending motion for summary judgment filed by the United States.
“The Consent Judgment entered by the Court is the product of a longstanding effort by the EPA and by this Office to ensure that the residents of Long Island would not be harmed by defendants’ disregard of their obligations under federal law to safeguard the public from gasoline and waste oil leaks at their underground storage tanks,” stated United States Attorney Capers. “We are committed to vigorous enforcement of the laws protecting the environment from hazardous wastes.”
“These defendants showed a disregard for underground storage tank regulations that are designed to protect against petroleum leaks,” said EPA’s Regional Administrator Enck. “Under this agreement, the residents of Long Island will be better protected from the threat of petroleum contamination to groundwater. Groundwater is the major source of drinking water for millions of residents of Long Island. It is imperative that petroleum storage tanks fully comply with all environmental regulations to ensure that drinking water is not polluted and people’s health is protected.”
The government’s case is being prosecuted by Assistant United States Attorney Kenneth M. Abell. EPA is represented by Assistant Regional Counsel Karen Taylor.
Settling Defendants:
RACHELANN YETIM
Age: 30
Residence: Floral Park, NYFast Gasoline, Inc.
Black Realty, Inc.
TAG Gasoline, Inc.
NGRV Realty Co., Inc.
Venus Bukey Realty, Inc.Other Defendants:
NEDJET YETIM
Age: 52
Residence: Patchogue, NYHempstead Gasoline Station, Inc.
Elmont Gasoline Corp.
102 Elmont Realty Corp.
Target Petroleum, Inc.
Liberty Petroleum, Inc., (d/b/a as Liberty Petroleum – RGV Petroleum, Inc.)
ASLI & Gizem Realty Corp.
S&B Petroleum, Inc.
Gizem Realty Corp.
PDE Island Park, Inc.
T-Maxx @ Petro Gas, IncGas Stations:
653 Hempstead Turnpike, Elmont NY
725 Wyandanch Avenue North Babylon, NY
4305 Austin Boulevard, Island Park, NY
1278 Hempstead Turnpike Elmont, NY (closed)Texas Man Pleads Guilty to over $9.5 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Texas man pleaded guilty in federal court today to his role in an elaborate, multi-million-dollar fraud scheme in which conspirators impersonated North Kansas City-based Cerner Corporation in a series of business and legal activities.
Albert Davis, 56, of Richardson, Texas, pleaded guilty before U.S. Chief District Judge Greg Kays to participating in a conspiracy to commit wire fraud.
By pleading guilty today, Davis admitted that he was the leader of a conspiracy to commit wire fraud in which more than 10 victims suffered losses exceeding $9.5 million from Aug. 25, 2008, to Feb. 19, 2015. Conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor.
Davis is the fifth defendant to plead guilty. Co-defendants David Hernon, 55, of Fishers, Ind. (formerly of Richardson, Texas), David Tayce, 67, of Lucas, Texas, and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, have also pleaded guilty to their roles in the conspiracy.
In order to impersonate Cerner Corporation, Davis and his co-conspirators created a fake Cerner business entity for a similarly-named company, Cerner, LLC. Conspirators opened a fake Cerner bank account, registered a fake Cerner Internet domain and leased virtual office space for a fake Cerner address in Kansas City, Mo. They created fictitious employees from Cerner Corporation – including both fictitious identities and impersonating actual employees – to communicate with others. Conspirators fabricated documents, price quotes, agreements and invoices, which were all made to appear to be authentic Cerner Corporation documents, when they were not.
For example, conspirators sent e-mails to doctors at Summit Medical Center in Oklahoma, which falsely represented Cerner Corporation in negotiations by containing a quote for the sale of a MRI to Summit Medical Center. Conspirators also created fraudulent invoices for the sale of an MRI to Dallas Medical Center.
Davis also admitted that conspirators provided false and misleading information and testimony during the litigation of several lawsuits. The false and misleading testimony was regarding business deals where the conspirators had impersonated Cerner Corporation.
For example, Davis received a jury award of $24 million following the 2014 trial in LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428-LED, in the Eastern District of Texas. When the fraud was discovered, attorneys for ISOL Technology filed an emergency motion for sanctions against LBDS (Davis’s company). Davis admitted that similar false and misleading testimony was provided by conspirators in iHeart Care DMC Holdings, LLC. v. Dallas Medical Center, LLC., et al., Cause No. 13-09460, in Dallas County, Texas; and Alice George, et al., v. Albert Davis, et al., Case No. 3:13-CV-03058-PKH, in the Western District of Arkansas.
In addition to impersonating Cerner Corporation, Davis admitted, conspirators used additional e-mail accounts to impersonate business entities and physicians in order to send communications designed to manipulate others in business transactions.
For example, conspirators forged signatures and misled doctors into guaranteeing over $8 million in loans from Community Trust Bank in Texas. Davis admitted that he and his co-conspirators fraudulently obtained five individual loans from Community Trust Bank.
Conspirators also impersonated bondholders in order to file an involuntary bankruptcy petition against their own company, CMI Holding Company, Inc., in Case no. 10-38011-SGJ-7, in the Northern District of Texas. Conspirators continued to impersonate those bondholders throughout the litigation in phone calls and email communications, and by signing as the bondholders in a settlement agreement. Davis and his co-conspirators concealed their ownership of Eureka Group, LLC and used that entity to receive and disburse the monies received from the $1.8 million settlement of the involuntary bankruptcy.
Additionally, Davis admitted, conspirators solicited investments using fabricated communications and documents from entities they created, including the entity created to impersonate Cerner Corporation. Those misrepresentations included false financial documents, altered MRI images and false claims that used MRI systems were newly developed technology.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky, in cooperation with Assistant U.S. Attorney Nathaniel Kummerfeld of the Eastern District of Texas and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas. It was investigated by the FBI.