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10 November 2016
Lancaster Man Pleads Guilty to FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Dillon, 52, of Lancaster, NY, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
According to Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, between May 2010 and November 2013, Dillon conspired with others to fraudulently obtain money and property from investors. As part of the scheme, Dillon and co-conspirator Gilbert Lynagh formed two companies – i2i Capital LLC and i2i Settlement Partners LLC – which were incorporated in Delaware but listed a business address in Lancaster, NY.Thereafter, Dillon, Lynagh and other members of the conspiracy caused 27 victims to invest over $5,000,000 in i2i Capital and/or i2i Settlement Partners. False and fraudulent representations were made to victims regarding the nature of the investment and the associated risks, duration and rates of return. Victim funds were wire transferred from the victims bank accounts to bank accounts controlled by Dillon and Lynagh at Alliance Bank in Oneida, NY. The majority of victim funds were utilized by Dillon, Lynagh, and other members of the conspiracy in a manner that was not authorized by the victims, including for personal use. None of the victims received the promised return on their investments, and none saw the return of their original investment funds as promised by Dillon, Lynagh, and other members of the conspiracy. As a result, at least five investors suffered substantial financial hardship by losing retirement or other savings or investment funds.
Gilbert Lynagh was convicted for his role in the conspiracy in July 2016.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled for March 13, 2017, before Judge Arcara.
Lakeland Couple Convicted of Large Scale Immigration FraudRead the Press Release
Tampa, Florida– United States Attorney A. Lee Bentley, III announces that a federal jury has found Domenico (68) and Rosa Cingari (67) guilty of conspiracy, mail fraud, and making false statements in immigration applications and petitions. They each face up to 5 years in federal prison on the conspiracy count and up to 20 years in federal prison on each of the 6 mail fraud counts. Domenico Cingari was convicted of two counts of making false statements in immigration applications and his wife was convicted of four counts, each of which carries a maximum penalty of 10 years in federal prison. Their sentencing hearing is scheduled for February 2, 2016.
The couple was indicted on July 9, 2015.
According to evidence presented at trial, Rosa and Domenico Cingari owned and operated R.E.P.C. Accounting and Translations out of their residence in Lakeland. The Cingaris assisted illegal aliens in obtaining Florida driver’s licenses by filing fraudulent immigration documents. Specifically, they would file I-589 (Applications for Asylum and Withholding of Removal), I-130 (Petitions for Alien Relative), and I-765 (Work Authorization) forms. Most of these applications and petitions submitted to United States Citizenship and Immigration Services by the Cingaris contained materially false information. The Cingaris charged their clients between $500 and $1,300 for the fraudulent immigration applications.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorneys Stacie B. Harris and Simon Gaugush.
Jupiter Attorney Sentenced Federally for Filing False Tax Returns with the IRSRead the Press Release
A Jupiter trust and estate attorney, who filed false personal income tax returns with the Internal Revenue Service (IRS), was ordered to pay $923,695 in restitution.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Kathleen Kozinski, previously pled guilty to a criminal information charging her with two counts of filing a false tax return, in violation of Title 26, United States Code, Section 7206(1), for tax years 2008 and 2011. United States District Judge Robin L. Rosenberg in West Palm Beach sentenced Kozinski to eight months’ incarceration, to be followed by a year of supervised release and ordered her to pay $923,695 in restitution to the IRS to reflect unpaid and underreported taxes due and owing for tax years 2007-2102.
According to court documents, Kozinski was an attorney with a solo estate planning and probate practice, Kathleen G. Kozinski, PA, located in Jupiter, Florida. For tax years 2007 through 2012, Kozinski failed to report all of her income on her individual Form 1040 tax returns.
Specifically, Kozinski willfully failed to report all of the gross receipts from Kathleen G. Kozinski, PA on her Form 1120S, Income Tax Return for an S Corporation. Shareholders of S corporations are required to report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. Kozinski underreported her income on her individual Form 1040 tax returns by not reporting all of the gross receipts from her law practice on her Form 1120S.
In addition to not including all of the gross receipts, Kozinski also falsely claimed “mortgage write-off” losses in the amount of $137,293.00 in tax year 2007, while she knew she had not provided an actual loan to another individual and was not entitled to this deduction. In tax year 2011, Kozinski claimed a loss of $113,745 on a “Schedule F Farm Loss” by falsely claiming that she paid labor expenses and insurance expenses, but the defendant did not operate a farming business and knew she was not entitled to these deductions. In 2012, Kozinski claimed a “Home Office” expense of $39,001, but the defendant knew that she was not entitled to claim this deduction because she did not have a home office.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney Aurora Fagan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jonesborough Resident Sentenced to Serve 42 Months in Prison for Possession of a Firearm After a Felony ConvictionRead the Press Release
GREENEVILLE, Tenn. –Benjamin Harold Hall, 35, of Jonesborough, Tenn., was sentenced on Nov. 10, 2016, by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 42 months in federal prison.
Hall pleaded guilty in June of 2016 to being a felon in possession of two firearms. The firearms were discovered when he was arrested by officers, after an August 2015 domestic altercation at his residence in Jonesborough. Federal law makes it a crime for anyone convicted of a felony to possess a firearm or ammunition.
Agencies involved in this investigation included the Washington County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney, J. Gregory Bowman, represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Investigation and Prosecution Team in Dzhokhar Tsarnaev Case Receive Department of Justice’s Highest AwardRead the Press Release
BOSTON – Seven members of the U.S. Attorney’s Office received the Attorney General’s David Margolis Award for Exceptional Service – the highest honor in the Department of Justice – during a ceremony today at the Justice Department for their role in investigating and prosecuting Boston Marathon bomber Dzhokhar Tsarnaev.
“As the world watched, this extraordinary team worked countless hours, under tremendous pressure, to ensure the successful prosecution of Dzhokhar Tsarnaev,” said United States Attorney Carmen M. Ortiz. “Their efforts went well beyond the normal scope of preparing for a trial, combing through warehouses full of evidence, working closely with the families of the deceased and the many severely injured victims, all in the face of intense media scrutiny and security challenges. I am honored to work alongside these committed public servants whose collective accomplishments, compassion, and dedication are nothing short of remarkable.”
In prepared remarks, Attorney General Loretta E. Lynch said, “We also express our gratitude to the team that successfully investigated and prosecuted the case against the surviving perpetrator of the Boston Marathon terrorist attacks. You undertook this emotional, complex, and high-stakes case with quiet dedication. You forged a tightly knit team from a wide array of law enforcement agencies, and together, you built an incredible body of evidence. When you tried the case in court, you spoke not simply for this department – you spoke for the people of Boston and this great nation who sought justice for this cold-blooded and cowardly attack.”
The following individuals from the United States Attorney’s Office were honored at the 64th Annual Attorney General’s Award for Exceptional Service for their role in the investigation and prosecution of Dzhokhar Tsarnaev: Assistant U.S. Attorneys William Weinreb, Aloke Chakravarty and James Farmer; Christina DiIorio-Sterling, Chief of Public Affairs; Cara Henderson, Community Outreach Program Manager; and Victim/Witness Specialists Kathleen Griffin and Jessica Pooler. The trial team also included former AUSA Nadine Pellegrini, who was ineligible for the nomination as she has departed from the USAO. The USAO and her colleagues would like to acknowledge Ms. Pellegrini’s outstanding contribution to the Tsarnaev case.
On April 15, 2013, Dzhokhar and Tamerlan Tsarnaev detonated two powerful IEDs near the Boston Marathon finish line, killing two young women and an eight-year-old boy, maiming 17, and injuring hundreds more in the largest mass-casualty terrorist attack on U.S. soil since 9/11. Following a manhunt during which the brothers killed an MIT police officer, Tamerlan Tsarnaev was killed in a shoot-out with police and Dzhokhar Tsarnaev was arrested. The worldwide investigation involved more than 6,000 items of physical and digital evidence, over 100,000 photographs and videos, and more than 1,000 witness interviews.
The high-profile trial commenced less than two years after the bombings. Over the course of 10 weeks, the prosecution team introduced over 1,000 exhibits and called more than 100 witnesses to the stand, including 14 victims who lost limbs in the bombings, family members of those killed, other survivors and eye witnesses, experts in the areas of fingerprints, DNA, bombs, and ballistics, law enforcement officers and terrorism experts. The prosecutors also cross-examined nearly 50 defense witnesses. A jury found Tsarnaev guilty on all 30 counts in the indictment charging terrorism and other violent offenses. The same jury later sentenced Tsarnaev to death following an approximately three-week sentencing trial. He was sentenced to death on six counts and consecutive life sentences on seven others, and ordered to pay $101 million in restitution to the victims.
In addition to the U.S. Attorney’s Office employees, 29 investigators, legal professionals and operational support personnel from the Federal Bureau of Investigation, U.S. Marshals Service and National Security Division, among other agencies, were also being recognized for exceptional service.
Inland Empire Brothers Plead Guilty to Federal Charges Related to Cache of Machineguns and Other Illegal Weapons Found at HomeRead the Press Release
LOS ANGELES, California – Two brothers from San Jacinto have pleaded guilty to federal weapons charges related to nearly three dozen machineguns, as well as short-barrel shotguns and silencers, that were found at their residence by authorities conducting an investigation in another matter.
Alfred Arviso, 35, and Nathaniel Arviso, 33, each pleaded guilty yesterday in federal court to one count of illegally possessing machine guns.
The cache of weapons at the Arvisos’ residence was discovered by Riverside County Sheriff’s Department on May 15 during the execution of a search warrant in an unrelated investigation. During the search, law enforcement discovered 33 machineguns (which includes 15 short-barrel rifles), another seven short-barrel rifles that were not automatic weapons, and eight silencers without serial numbers.
“Federal law strictly regulates firearms that have a high potential for causing mass casualties, such as automatic weapons that can fire multiple rounds with one trigger pull,” said United States Attorney Eileen M. Decker. “The cache of dangerous weapons found in this case could have made their way into the hands of criminals, endangering public safety.”
Alfred Arviso, who was remanded into custody yesterday after pleading guilty, is scheduled to be sentenced by United States District Judge S. James Otero on February 27, 2017. Nathaniel Arviso, who remains free on bond, is scheduled to be sentenced on March 6. At sentencing, each brother faces a statutory maximum sentence of 10 years in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Riverside County Sheriff’s Department.
This case is being prosecuted by Assistant United States Attorney Julius J. Nam of the Riverside branch office.
Houston Pharmacist Pleads Guilty to Role in Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
Nermin Awad El-Hadik, 40-year-old owner of Hope Pharmacy, Inc. in Houston, faces up to five years in federal prison and has agreed to pay more than $5 million restitution after pleading guilty to paying kickbacks in a health care fraud scheme announced United States Attorney Richard L. Durbin, Jr.
Appearing before U.S. Magistrate Judge Andrew Austin yesterday afternoon in Austin, the Houston resident pleaded guilty to a one count Information charging her with willful offer and payment of illegal remuneration in relation to a federal health care program. By pleading guilty, El-Hadik admitted that from March 2015 to December 2015, she paid kickbacks totaling $5,334,303.04 to Garry Wayne Craighead. Craighead, a chiropractor, organized and controlled multiple health care related entities, including eight clinics in Texas (Dallas, Fort Worth, Killeen, Austin, San Antonio, Corpus Christi, Weslaco, and Beaumont), that derived substantial revenue from the U.S. Department of Labor’s health care benefit programs. El-Hadik paid Craighead cash for patient referrals of federally-insured employees in need of prescription services; and, for his influence in encouraging physicians to prescribe compounded medications for patients, which would then be furnished at Hope Pharmacy.
El-Hadik remains on bond pending sentencing before U.S. District Judge Sam Sparks in Austin. No sentencing date has been scheduled.
On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health care programs and one count of engaging in monetary transactions in property derived from specified unlawful activity. On June 10, 2016, Craighead was sentenced to 14 years in federal prison and ordered to pay over $17 million restitution to the U.S. Department of Labor.
The U.S. Postal Service Office of the Inspector General, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the U.S. Department of Labor Office of the Inspector General conducted this investigation. Assistant U.S. Attorneys James Blankinship and Mark Marshall are prosecuting this case for the government.
Houma Postal Worker Pleads Guilty to Bribery and Houma Man Pleads Guilty to Drug DistributionRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr., announced that on Tuesday, EBONIE SMITH, age 37, of Houma, pled guilty to one counts of bribery of a public official, and DARNOLD DEVILLE, age 50, of Houma, pled guilty to one count of conspiracy to distribute and to possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
According to court documents, in January 2015, DEA agents began investigating a drug-trafficking organization based in Terrebonne Parish that obtained methamphetamine through sources of supply in Texas and in California, including through the mail. Upon his arrest on December 10, 2015, DEVILLE was in possession of 84 grams of methamphetamine and a digital scale. Between August and October 2015, SMITH, in exchange for cash payments, used her employment with the United States Postal Service to facilitate the shipment and delivery of parcels, which contained methamphetamine, to other members of the same conspiracy in Terrebonne Parish.
DEVILLE, who was charged by Bill of Information with a prior conviction for a felony drug offense, faces a mandatory minimum sentence of 20 years in prison, a maximum sentence of life in prison, at least 10 years of supervised release after the term of imprisonment, a fine of up to $20,000,000, and a mandatory special assessment of $100. SMITH faces a sentence of up to 15 years in prison, up to 3 years of supervised release after the term of imprisonment, a fine of up to $250,000, and a mandatory special assessment of $100. U.S. District Court Judge Jay C. Zainey will sentence both DEVILLE and SMITH on February 7, 2017.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Terrebonne Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Nicholas D. Moses, James S. C. Baehr, and André Jones are in charge of the prosecution.
Hamburg Man Sentenced for Sinking A Boat in the Black Rock CanalRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Paul E. Van Voorhees, 56, of Hamburg, NY, who was convicted of obstruction of waterways, was sentenced to one year of probation and ordered to pay restitution in the amount of $6,416.50 to the United States Coast Guard by U.S. Magistrate Judge Michael J. Roemer.
According to Assistant U.S. Attorney Aaron J. Mango, who handled the case, the defendant was the Dock Master at the Buffalo Yacht Club and was responsible for maintenance of the buildings, grounds, and marina. On November 5, 2015, Van Vorhees and another employee of the Buffalo Yacht Club towed a damaged 13’ aluminum row boat that had been floating in the water in front of the Buffalo Yacht Club into the Black Rock Canal. After reaching a certain location in the canal, the defendant released the boat into the canal with the intention of sinking it in the canal. A witness alerted the United States Coast Guard (USCG). During an initial interview with USCG personnel, Van Voorhees denied releasing the boat into the canal. The boat was eventually recovered by the USCG from the Black Rock Canal. In a subsequent interview on December 23, 2015, the defendant admitted that he attempted to sink the boat in the canal.The sentencing is the culmination of an investigation by the United States Coast Guard, Buffalo Sector, under the direction of Captain Brian Roche, and by the Coast Guard Investigative Service, Buffalo Resident Agent Office, under the direction of Resident Agent in Charge Cindy C. Buckley.
Gun License “Expediter” Pleads Guilty in Manhattan Federal Court to Bribery in Connection with NYPD-Issued Gun LicensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ALEX LICHTENSTEIN, a/k/a “Shaya,” pled guilty to bribery and offering a bribe in connection with his efforts to pay bribes to obtain gun licenses through the New York City Police Department’s (“NYPD”) License Division. LICHTENSTEIN pled guilty before United States District Judge Sidney H. Stein today.
Manhattan U.S. Attorney Preet Bharara said: “As he admitted today, Alex Lichtenstein acted as a corrupt gun ‘expediter,’ bribing police officers to obtain gun licenses, offering thousands of dollars per license. In a recorded conversation, Lichtenstein bragged of using his NYPD connections to obtain 150 gun licenses. This type of corruption not only undermines public confidence in law enforcement, but it undermines public safety. And it cannot be tolerated. I thank the FBI and the NYPD for their dedication and commitment to this case and this important investigation.”
According to the Complaint and Indictment filed in Manhattan federal court and statements made during the plea proceeding:
LICHTENSTEIN is a member of the Borough Park Shomrim, a volunteer, ostensibly unarmed, Orthodox Jewish patrol society whose mission includes combating criminal activity and locating missing people. LICHTENSTEIN ran a business charging clients thousands of dollars to expedite their gun license applications. LICHTENSTEIN charged his clients as much as $18,000 per gun license.
In April 2016, LICHTENSTEIN approached an officer for the NYPD and offered the officer cash bribes in order for the officer to help LICHTENSTEIN obtain gun licenses for LICHTENSTEIN’s customers from the NYPD’s License Division. The License Division is responsible for reviewing, investigating, and approving or disapproving all applications for gun licenses in New York City. The License Division receives approximately 5,000 applications for gun licenses per year. LICHTENSTEIN told the officer that he charged customers thousands of dollars to help obtain License Division approval for their gun license applications, and that he was able to get the licenses approved using his own connections in the License Division, although those connections had recently cut him out.
The officer did not agree to assist LICHTENSTEIN, and reported the encounter to the NYPD Internal Affairs Bureau (“IAB”). Working with the Federal Bureau of Investigation (“FBI”) and IAB, the officer set up and recorded a meeting with LICHTENSTEIN, at which LICHTENSTEIN offered the officer $6,000 per license application that the officer could help get through the License Division. In that recorded meeting, LICHTENSTEIN told the officer that he had obtained gun licenses for approximately 150 individuals in the past, and that his customers needed his services because the License Division would otherwise reject applications “for the biggest stupidity,” such as a history of moving violations. LICHTENSTEIN boasted that he was able to use his connections in the License Division to “expedite” the application process, i.e., to forego the full investigation typically conducted before the NYPD License Division approves or disapproves an application. The officer asked LICHTENSTEIN if his previous connections in the License Division were making money, to which LICHTENSTEIN responded, “now they cut down, now nobody’s making money.”
In fact, LICHTENSTEIN had substantial connections to a sergeant in the License Division, David Villanueva, who had worked at the License Division for more than a decade. A Commanding Officer at the NYPD with whom Villanueva was friendly introduced LICHTENSTEIN to the License Division and Villanueva in or about 2013. From that introduction through early 2016, LICHTENSTEIN spent significant time at the License Division with Villanueva, often on a near daily basis. From at least 2012 through 2016, LICHTENSTEIN gave Villanueva cash bribes and other benefits to pay for Villanueva’s work in expediting and approving gun license applications for LICHTENSTEIN’s clients. Richard Ochetal, a police officer who worked under Villanueva, did first-level review of many of these applications and was instructed to approve them. Ochetal was compensated in the form of some of the cash that LICHTENSTEIN gave to Villanueva. Villanueva[1] is currently charged in a case pending before Judge Stein, and Ochetal pled guilty to accepting bribes in exchange for the approval of gun license applications, and is cooperating with the Government in the investigation.
In reviewing and approving applications for LICHTENSTEIN’s clients, Villanueva and Ochetal omitted some of the required checks, such as criminal history checks, and in other instances ran checks only after they approved licenses. They also approved applications despite red flags that, had they not been bribed, may have led those applications to be rejected. For example, they approved applications of individuals with prior arrests and previous allegations of domestic violence. In addition, Villanueva and Ochetal approved applications for licenses to carry firearms, which require certain business-related justifications, in scenarios were there was no real business justification for the request. A review of the applications of LICHTENSTEIN’s clients reveals that Villanueva and Ochetal were able to secure licenses for those clients often within weeks, whereas the process normally takes months to, in some instances, over a year. Villanueva and Ochetal did this for LICHTENSTEIN’s clients because of the cash payments coming from LICHTENSTEIN, as well as other benefits, such as limousine rides, bottles of liquor, and a wine tour.
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LICHTENSTEIN, 44, who now resides in Pomona, New York, has pled guilty to one count of bribery, which carries a maximum term of 10 years in prison, and one count of offering a bribe, which carries a maximum term of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the NYPD Internal Affairs Bureau, and noted that the investigation is continuing.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Kan M. Nawaday, Russell Capone, Martin S. Bell, and Lauren Schorr are in charge of the prosecution.
[1] Villanueva was charged in an indictment unsealed on June 20, 2016, with one count of bribery, which carries a maximum term of 10 years in prison, and one count of conspiracy to commit bribery, which carries a maximum term of five years in prison. The charges against Villanueva are merely accusations, and he is presumed innocent unless and until proven guilty.
Former U.S. Representative Aaron Schock Indicted for Fraud, Theft of Government Funds, False Statements and Filing False Income Tax ReturnsRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury returned an indictment today charging former U.S. Representative Aaron Schock with allegedly defrauding the federal government and his campaign committees and covering it up with false and fraudulent statements, claims and invoices.
“I appreciate the time and attention that the grand juries have given this matter, to thoroughly review the facts and the evidence and to reach this decision,” said U.S. Attorney Jim Lewis, Central District of Illinois. “These charges allege that Mr. Schock deliberately and repeatedly violated federal law, to his personal and financial advantage. Mr. Schock held public office at the time of the alleged offenses, but public office does not exempt him or anyone else from accountability for alleged intentional misuse of public funds and campaign funds.”
According to allegations in the 24-count indictment, from as early as 2008, and continuing to at least October 2015, Schock, 35, of Peoria, engaged in a scheme to defraud the government, his campaign committees, and others for his direct personal benefit and for the benefit of others. Schock allegedly repeatedly submitted and caused false and fraudulent claims, invoices, and vouchers to be submitted to the U.S. House of Representatives (House) for payment from his Member’s Representational Allowance and from funds of his campaign committees: Schock for Congress (SFC); Schock Victory Committee (SVC); and GOP Generation Y Fund (Gen Y).
Schock allegedly generated income to himself, which resulted in a loss of more than $100,000 to the government, Schock’s campaign committees, and others. In addition, Schock is charged with filing false federal income tax returns for tax years 2010 through 2015, for failure to report additional income he received.
Several of the alleged instances of fraud from the indictment are summarized below:
- From as early as 2008 and continuing to about October 2014, Schock received total mileage payments from the House and his campaign committees of approximately $138,663, for official and campaign-related travel. Assuming all of the miles driven on Schock’s vehicles were official and campaign-related, and no personal miles were driven during this time period, Schock allegedly caused the House and his campaign committees to reimburse him for approximately 150,000 miles more than the vehicles were actually driven.
- In July 2014, Schock caused Schock for Congress to purchase a new 2015 Chevrolet Tahoe for him at a total cost of $73,896. Schock then caused the Tahoe to be titled in his name. To accomplish the purchase, Schock caused SFC to purchase his used 2010 Tahoe from him for $31,621. He then caused SFC to trade in the 2010 Tahoe with a $26,000 used car or trade-in allowance, and wrote a SFC check to the dealership for $73,896, thus causing a loss to SFC. As part of the scheme, and to conceal and cover it up, Schock allegedly caused SFC to file a false report with the Federal Election Commission (FEC) that the entire $73,896 payment was for a transportation expense of SFC rather than the purchase of a vehicle for Schock’s exclusive use. Schock allegedly made no effort to reimburse SFC for his personal use of the 2015 Tahoe.
- Schock allegedly caused the House to fraudulently reimburse him $29,021 for his September 2014 purchase of camera equipment. The equipment was for his use and the use of a congressional and campaign staff member who was also his personal photographer and videographer. In November 2014, Schock allegedly instructed the staff member to create and submit a false invoice for ‘multimedia services’ to Schock’s congressional office. After various changes to the invoice, it was submitted to the House, which authorized payment of $29,021 to the staff member. The funds were deposited in the staff member’s bank account and were later used by the staff member to make direct payments to Schock’s personal credit card account for the camera equipment purchase.
- In late 2013, Schock allegedly accused a former staffer of inappropriately accessing a friend’s social media account and falsely advised the former staffer that the FBI and Capitol Police were investigating the matter. As a result of Schock’s accusation and false representation, the former staffer retained a lawyer and incurred legal fees of more than $10,000, which were paid by the former staffer’s father. Schock later acknowledged that his allegation of a law enforcement investigation of the matter was false and after being confronted by the former staffer’s father, agreed to reimburse the former staffer’s father for $7,500 of the legal fees. In February 2014, Schock allegedly wrote a check for $7,500 payable to the former staffer’s father. In April 2014, Schock had his political director issue a check from Gen Y to him in the amount of $7,500, which was falsely reported to the FEC as payment to a Washington D.C. attorney for legal fees incurred by Gen Y. In addition, Schock allegedly caused Gen Y to pay legal expenses that he personally incurred, and to file additional false reports with the FEC that the payment was for Gen Y’s legal fees.
- In November 2014, Schock hired an Illinois decorator, who in 2010 had decorated Schock’s Peoria apartment and Cannon congressional office, to redecorate and provide furnishings for his Rayburn congressional office at a cost of approximately $40,000, including a $5,000 chandelier. Schock allegedly caused vouchers and claims to be submitted to the House totaling $25,000 to be paid to the decorator. In the submission of the vouchers and claims, Schock allegedly made false representations that the claims were, “for services to assist the member in setting up our district and DC offices” and, “includes using materials from our district and rearranging/designing/structuring the space to best suit the member and staff’s needs.” In addition, Schock caused his three campaign committees to pay a total of approximately $8,263 in additional costs for carpentry, paint, and travel and lodging expenses for the decorator/designer, who provided no product or service to these committees.
A summons will be issued to Schock by the U.S. Clerk of the Court for a date when Schock is to appear in federal court in Springfield for initial appearance and arraignment.
Assistant U.S. Attorney Timothy A. Bass and First Assistant U.S. Attorney Patrick D. Hansen are prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The charges are being investigated by the FBI, Springfield Division; IRS Criminal Investigations; U.S. Postal Inspection Service, Chicago Division; FDIC Office of Inspector General; and the Illinois State Police. These agencies participate in the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force.
U.S. Attorney Lewis thanked the investigative agencies and commended their respective agents who he said, “have worked long, hard and well to present this matter fairly.”
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
If convicted, the maximum statutory penalty for each offense charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The table below lists the counts charged in the indictment and the maximum statutory penalty for each respective charge.
Number of Counts
Charge
Maximum Statutory Penalty
Nine
Wire Fraud
20 years in prison
Five
Falsification of Federal Election Commission Filings
20 years in prison
One
Mail Fraud
20 years in prison
One
Theft of Government Funds
10 years in prison
Two
False Statements
5 years in prison
Six
Filing False Federal Income Tax Returns
3 years in prison
Former St. Joseph School Superintendent Sentenced for $662,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former superintendent of the St. Joseph School District and former president of the Board of Education was sentenced in federal court today for a fraud scheme in which he received more than $662,000 in pension payments to which he was not entitled.
Danny L. Colgan, 70, of St. Joseph, Mo., was sentenced by U.S. District Judge Dean Whipple to one year and one day in federal prison without parole. Colgan also made a final payment of $608,257 today to complete his court-ordered restitution.
Colgan, who pleaded guilty to one count of wire fraud on June 13, 2016, was the superintendent of the St. Joseph School District from July 1, 1992, until his retirement on Dec. 31, 2005. Colgan was entitled to retirement benefits from the Public School and Education Employee Retirement Systems of Missouri (PSRS) with the amount of the retirement benefits based upon his highest consecutive three years of reported salary.
Colgan admitted that he caused others to falsely report his salary to the PSRS in order to increase his retirement benefits. Colgan knew that the salary figures he caused the school district to submit to PSRS on his behalf included fringe benefits and other payments to Colgan that were not eligible to be counted as salary under state statutes.
This fraud scheme began during the 1997-98 school year and lasted for eight years, until Colgan’s retirement. Colgan’s retirement benefits were calculated by using the amounts reported by the school district over the final three-year period before he retired.
During that final three-year period, the school district falsely reported that Colgan’s salary totaled $586,030. In reality, his salary totaled $343,286 – a difference of $242,744. As a result of the false statements to the PSRS, the school district made excess payments in the amount of $14,652 to the PSRS from 2003 through 2005, and Colgan was paid excess benefits that totaled $677,313 over a 10-year period.
Colgan’s salary reported for his final three years as school superintendent improperly included the following:
- Car Allowance/Travel Stipend: The $9,600 car allowance/travel stipend was a fringe benefit that was ineligible for retirement salary calculation purposes;
- Family Insurance Premiums: The family insurance benefits/premiums paid by the district of $5,225, $5,603, and $6,258 were fringe benefits that were ineligible for retirement salary calculation purposes;
- District Contribution to Taxable Annuity: The district payment for the school year 2004-2005 of $25,000 to purchase a taxable annuity for the superintendent was ineligible for retirement salary calculation purposes;
- “District Vehicle” Payments: In the final three years, the school district reported “District Vehicle” payments of $11,300, $11,300, and $28,975. The “District Vehicle” payments were separate from the $800 per month car allowance payments (described above). The “District Vehicle” payments were fringe benefits that were ineligible for retirement salary calculation purposes; and
- Unused Vacation Payment: An unused vacation payment in June 2005 of $10,820 was a fringe benefit that was ineligible for retirement salary calculation purposes.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Former Scott Credit Union Commercial Loan Officer Sentenced to Prison on Convictions for Fraud, Misapplication, Money Laundering and False ReportRead the Press Release
Theodore J. Longust, age 51, formerly from Columbia, Illinois, was sentenced to a total of 121 months in prison as a result of his convictions in a nine-count Indictment charging: Count 1: Financial Institution Fraud; Counts 2 - 5: Misapplication of Funds; Counts 6 - 8: Money Laundering; and Count 9: Making a False Record to Scott Credit Union With The Intent to Deceive, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Theodore J. Longust was an employee of Scott Credit Union in the commercial loan department from November 7, 2005 continuing through December 8, 2014 and held the title of Business Relationship Manager. Theodore J. Longust executed a scheme to defraud through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans, the increase of credit limits on loans that did not have the requisite board approval, the issuance of business loans without the required documentation or security, and the issuance of letters of credit without the required documentation and security. He also knowingly submitted a false report to Scott Credit Union for the 3rd quarter of 2014 that misstated loan balances and omitted loan amounts and underreported loans of over $12,000,000. There was evidence at sentencing that the overall loss to Scott Credit Union, which included criminal and civil losses, was approximately $25.8 million. Criminal direct losses were
determined to be $13,719,947.21. The Court ordered Longust to pay restitution of $5,012,362.52 to Scott Credit Union and $9,114,560.69 to CUMIS Mutual, the bonding company for Scott Credit Union. The safety and soundness of Scott Credit Union has not been adversely affected by the criminal conduct. The successful prosecution is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service/Criminal Investigation with the assistance of Scott Credit Union. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Former Robeson County Attorney/Onslow County Real Estate Developer Sentenced to 17 Years for Bank FraudRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today in federal court, JOSEPH HAL KINLAW, JR., 64, of Bald Head Island, North Carolina, was sentenced to 17 years in prison for Bank Fraud. KINLAW was also ordered to serve 3 years of supervised release following imprisonment, and to pay $23,796,372 in restitution to the victims of his offense.
Based upon the Criminal Information and evidence offered at the time of KINLAW’s sentencing, KINLAW was a licensed North Carolina attorney who operated various alleged real estate investment and development entities on behalf of investors in the Hubert area of Onslow County. KINLAW used the entities to obtain real estate development loans from Branch Banking and Trust (BB&T), and First Citizens Bank. BB&T and First Citizens Bank extended loans to these entities under the auspices that the entities would be engaged in the development of residential real estate in various subdivisions in the area of Camp Lejeune in Onslow County.
Between 2004 and April of 2013, KINLAW used the real estate development entities to defraud BB&T and First Citizens Bank by falsifying the legal descriptions of the loan collateral, and by falsifying releases of the collateral. By drafting a false legal description of the property, KINLAW was able to use the collateral for other real estate investment activities and loans. By fraudulently releasing the banks’ collateral before the banks’ loans had been satisfied, KINLAW was able, in several instances, to convey the collateral to third parties for value and continue the scheme.
To perpetuate the scheme and prevent its discovery, KINLAW also used outside funds, that is, funds unrelated to the real estate development activity that was the subject of each loan, to make ongoing loan interest payments to BB&T and First Citizens Bank. In some instances, KINLAW used loan proceeds on one transaction to make loan interest payments on another transaction. In other instances, KINLAW fraudulently extracted funds from other investors and their business interests to make payments on the loans. Numerous victims spoke at the sentencing concerning how KINLAW had harmed them.
Ultimately, banks stopped loaning money to KINLAW and his related companies and investors. As a result, the existing loans went into default. Because KINLAW had substituted false legal descriptions of bank collateral, and fraudulently conveyed bank collateral, BB&T and First Citizens Bank were unable to capture their loan losses in foreclosure. Various title insurance companies and investors also lost substantial funds to due to the scheme. While the exact amount of the loss remains the subject of investigation, losses are presently anticipated to exceed $18 Million.
The investigation of this case was conducted by the Federal Bureau of Investigation with the assistance of the United States Postal Inspection Service. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division represented the United States.
Former Redflex CEO Sentenced to 30 Months for Corruption in the Awarding of Chicago’s Red-Light Camera ContractsRead the Press Release
CHICAGO — The former chief executive of Chicago’s first red-light camera vendor was sentenced today to 30 months in federal prison and over $2 million in restitution for paying bribes to a city official to help procure the contracts.
As the CEO of Redflex Traffic Systems Inc., KAREN FINLEY would funnel cash and other financial benefits to the city official, JOHN BILLS, and his friend, MARTIN O’MALLEY, in exchange for improper assistance in awarding city red-light camera contracts to Redflex. The benefits included golf trips, hotels and meals, as well as hiring O’Malley as a highly compensated contractor for Redflex, some of which compensation was passed on to Bills.
The benefits flowed for nearly a decade, during which time the city expanded the Digital Automated Red Light Enforcement Program by awarding millions of dollars in contracts to Phoenix-based Redflex.
Finley, 57, of Cave Creek, Ariz., pleaded guilty last year to one count of conspiracy to commit bribery in a federal program. U.S. District Judge Virginia Kendall imposed the sentence in federal court in Chicago.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph M. Ferguson, Inspector General for the City of Chicago; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
All three defendants in the federal case have now been convicted and sentenced. Bills was sentenced in August to ten years in prison, while O’Malley was sentenced in September to six months in prison.
Redflex’s technology uses cameras to automatically record and ticket drivers who run red lights. The company was awarded its first contract with the city of Chicago in 2003. Over the next eight years, Bills used his influence as a transportation official to expand Redflex’s business with the city, resulting in millions of dollars in contracts for the installation of hundreds of red-light cameras.
Finley hired O’Malley as a contractor to ensure that Bills would continue to provide assistance to Redflex in obtaining and expanding contracts with the city. Finley personally signed O’Malley’s contract, which included provisions for lucrative increases in O’Malley’s compensation as new cameras were added. O’Malley testified at Bills’ trial that O’Malley often stuffed money he received from Redflex into envelopes and gave it to Bills during meals in Chicago restaurants. O’Malley also used some of the Redflex money to purchase and pay all expenses on a condo in Arizona that Bills used as his own.
The government is represented in the case by Mr. Fardon and Assistant U.S. Attorneys Laurie Barsella and Timothy Storino.
Former President of the Venezuelan Soccer Federation Pleads Guilty to Racketeering and Corruption ChargesRead the Press Release
Earlier this morning in federal court in Brooklyn, Rafael Esquivel, the former president of the Venezuelan soccer federation, pleaded guilty to racketeering conspiracy, three counts of wire fraud conspiracy, and three counts of money laundering conspiracy in connection with his participation in multiple bribery schemes related to the awarding of contracts for the media and marketing rights to international soccer tournaments. Esquivel, the president of the Venezuelan soccer federation from 1988 to 2015, was also a vice president of CONMEBOL, the South American soccer confederation, at the time of his arrest on May 27, 2015. As part of his plea, Esquivel also agreed to forfeit over $16 million. At sentencing, Esquivel faces a maximum sentence of 20 years for each count. Today’s plea proceeding took place before United States District Judge Pamela K. Chen.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, Esquivel was involved in multiple criminal schemes involving the payment of and agreement to pay millions of dollars in bribes from sports marketing companies in connection with, among other things, the sale of media and marketing rights to soccer tournaments. These tournaments included the Copa Libertadores, South America’s premier club team tournament, and the Copa América, which features the men’s national teams of CONMEBOL’s 10 member associations as well as two national teams invited to participate from outside the CONMEBOL region. As part of his involvement in the criminal schemes, Esquivel used his influence as a soccer official to obtain millions of dollars in bribe payments from co-conspirators who sent the payments from overseas banks accounts into accounts Esquivel controlled at banks in the United States.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Samuel P. Nitze, M. Kristin Mace, Tanya Hajjar, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
RAFAEL ESQUIVEL
Age: 70
Nationality: VenezuelaE.D.N.Y. Docket No. 15 CR 252 (S-1)
Former Long Beach Firefighter Pleads Guilty to Underground Disposal of SewageRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – November 10, 2016
SAN DIEGO – A former Long Beach firefighter pleaded guilty in federal court today to conspiring to illegally dispose of sewage underground, in violation of the Safe Drinking Water Act.
Kyle Vestermark admitted that he and the company he owned, Dunes Edge Storage, illegally discharged sewage from recreational vehicles (RVs) stored at Dunes Edge Storage in Brawley, California, as well as another location, Dunes Toy Storage in Holtville, California, without a permit from June of 2004 through April of 2015.
Vestermark acknowledged that he and his company obtained a permit in 2004 for a 10,000 gallon holding tank for RV sewage at the Dunes Edge location from the Imperial County Public Health Department, which specifically prohibited the installation of underground leach lines (an issue which Vestermark had raised during the permitting process). Vestermark further admitted that he also obtained a Conditional Use Permit from the Imperial County Planning Department in 2005 from the Imperial County Planning Board for the Dunes Toy Storage location in Holtville, which also specifically prohibited the installation of underground leach lines for the disposal of the RV sewage. The permits required Vestermark to hire a septage firm to pump out the RV sewage from the holding tanks and dispose of it at a wastewater treatment plant.
In spite of the specific prohibitions, Vestermark admitted that he used heavy equipment in 2005 and 2006 to install underground leach lines at both locations which would permit the RV sewage to leach out underground for disposal. Vestermark admitted that he used heavy equipment himself to install the leach lines, and hit the water table when installing the dump station at the Dunes Edge location – meaning that the sewage would contaminate the local water supply. The leach lines were removed in 2015 after Vestermark’s actions were discovered by Imperial County authorities. Vestermark also agreed to forfeit up to $200,000, if determined by the court to be the proceeds of the offense.
U.S. Magistrate Judge Barbara L. Major set a sentencing hearing February 17, 2017 at 9:30 a.m.
DEFENDANTS
Dune Edge Storage, LLC Incorporated: 2006 Brawley, California
Kyle Vestermark Age: 46 Long Beach, California
SUMMARY OF CHARGES
Count 1
Conspiracy to Illegally Discharge Sewage – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine ($500,000 for a corporation)
Counts 2-8
Unlawful Injection of Sewage – Title 42, U.S.C., Section 300h-2(b)(2)
Maximum Penalty – 3 years in prison and a $250,000 fine
AGENCY
U.S. Environmental Protection Agency, Criminal Investigation Division; Bureau of Land Management, Office of Law Enforcement
Former Kearney Probation Officer Sentenced to Prison for Civil Rights ViolationsRead the Press Release
United States Attorney Deborah R. Gilg announced that Thomas Peterson, age 57 of Kearney, Nebraska, was sentenced by the Honorable Richard G. Kopf, Senior United States District Judge, to nine years in prison to be followed by 5 years of supervised release following his conviction on four counts of violating the civil rights of female probationers under his supervision and one count of lying to the FBI when he submitted to an interview about the matter. Peterson was convicted in July by a federal jury sitting in Lincoln, Nebraska. The sentence imposed was the maximum the court could impose. Peterson was ordered to self-surrender at the facility designated by the Bureau of Prisons no later than January 9, 2017.
Evidence introduced at trial established that Peterson was a state probation officer with the District 9 probation office in Kearney. He supervised a caseload made up of offenders in need of intensive supervision. The jury heard evidence that from approximately 2010 through January of 2014, Mr. Peterson subjected four female probationers to unsolicited and non-consensual sexual contact. The jury also heard from three other women who had been supervised by Mr. Peterson who reported sexually charged advances or comments from Mr. Peterson which did not progress to the level of sexual contact. The jury found that Peterson had violated the civil rights of the four probationers by intruding into their constitutional rights to bodily integrity.
This matter was investigated by the Federal Bureau of Investigation.
Former Homer police officer sentenced to six months in prison for civil rights violationRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a former Homer Police Department Officer was sentenced Wednesday to six months in prison for violating the civil rights of a woman and for making false statements about the incident to the FBI.
Willie Fred Knowles, 66, was also sentenced by U.S. District Judge S. Maurice Hicks Jr. to three years of supervised release and ordered to pay a $1,500 fine. According to the August 5, 2016 guilty plea, Knowles admitted that on October 29, 2012, while he was on duty as a police officer, he pushed a woman down and struck her face and body without legal justification. Knowles also admitted that he falsely told FBI agents that the woman started the incident by grabbing him and jumping on his back, and he falsely denied that he ever hit the woman.
This case was investigated by the FBI and the Louisiana State Police. The case was prosecuted by Trial Attorney Christine M. Siscaretti from the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mary J. Mudrick of the Western District of Louisiana.
Former Georgia Soldier Sentenced to over 22 Years in Federal Prison for Receipt and Possession of Child PornographyRead the Press Release
SAVANNAH, GA: Lance Lightner, 24, was sentenced on Tuesday to 272 months in prison by Chief United States District Court Judge Lisa Godbey Wood following his guilty pleas to charges of receipt of child pornography and possession of child pornography. Lightner’s prison term will be followed by a life term of supervised release. Lightner will also be required to register as a sex offender upon his release from prison. Lightner pleaded guilty to the offenses on May 2, 2016.
According to evidence presented during the guilty plea and sentencing hearings, Agents with Fort Stewart’s Army Criminal Investigation Command (Army-CID) found child pornography and sexually-explicit texts with minors on active-duty Lightner’s cell phone. Later, forensic agents located at least 500 images containing depictions of child pornography on Lightner’s phone, including sexually explicit photographs Lightner had taken and shared over the internet of his infant daughter. After his arrest on related charges, Lightner was discharged from the Army.
United States Attorney Edward Tarver stated, “This defendant preyed on children. He now rightfully faces hundreds of months in a federal prison cell. When he’s released, he’ll then be under the watchful eye of federal probation officers for the rest of his life. The U.S. Attorney’s Office will work hard with our state and federal law enforcement partners to make sure that sex offenders who prey on the innocent will end up where they belong, in prison.”
This prosecution was the result of a joint investigation by the Southeast Georgia Child Exploitation Task Force and the Army-CID. This case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorneys Frederick W. Kramer (since retired) and Marcela C. Mateo prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Chairman of the Village of Hempstead Housing Authority Indicted in Connection with Bid Rigging and Kickback SchemeRead the Press Release
A four-count superseding indictment was unsealed today in the United States District Court for the Eastern District of New York charging Cornell Bozier with one count of conspiracy to commit honest services wire fraud and three substantive counts of federal program bribery. From April 2011 to April 2013, Bozier served as the Chairman of the Board of Commissioners (the Board) at the Village of Hempstead Housing Authority (the VHHA). The defendant was arrested this morning and is scheduled to be arraigned this afternoon before United States District Judge Joan M. Azrack at the federal courthouse in Central Islip, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Christina Scaringi, Special Agent-in- Charge, Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), Northeast Region.
“The corruption and betrayal of the public trust detailed in the indictment was compounded by the fact that the defendant allegedly orchestrated this scheme to line his pockets with money stolen from a federal program that provides low-income families with safe and affordable housing,” stated United States Attorney Capers. “This Office and our law enforcement partners are steadfast in our resolve to uncover public corruption at every level of government and prosecute those responsible.” Mr. Capers expressed his grateful appreciation to the FBI and HUD-OIG, the agencies responsible for leading the investigation.
“Bozier created a conduit for illegal activity, one that permeated the layers of oversight put in place to protect the public from the corruption in which he’s alleged to have been engaged. Misuse of public funds in furtherance of one’s own objectives is stealing, no matter how you cut it. We won’t let this type of corruption undermine the safety and security of our communities, or erase the expectation of trust the public deserves to have in those who govern these decisions,” stated FBI Assistant Director-in-Charge Sweeney.
“Bid-rigging schemes such as those outlined in this indictment not only deprive businesses of fair competition, they damage the integrity of HUD programs established to help those in need. The charges today prove that the end result of such corruption will be both costly and extremely unpleasant to the offending party,” stated Scaringi, Special Agent-in-Charge, HUD OIG, Northeast Region.
The VHHA is responsible for providing and maintaining safe and affordable housing for low income individuals living in the Village of Hempstead. According to the VHHA’s procurement policy, when large and costly construction projects are required at one of the various properties maintained by the VHHA, a public request for bids from independent and private contractors must be published to ensure that the Board awards the contract to the most qualified lowest bidder.
Instead, as alleged in the superseding indictment, Bozier used his position as the Board Chair of the VHHA Board to recruit and direct co-conspirators to submit fraudulently inflated construction bids for repair projects on VHHA properties, bypass the required procurement process, and ensure that the construction contracts were awarded to companies owned or controlled by co-conspirators. Bozier directed the hiring of additional co-conspirators for positions within the VHHA to help facilitate the Board’s acceptance of fraudulent bids and exerted improper influence and pressure on those Board members to vote in favor of the grossly inflated bids submitted by Bozier’s co-conspirators. In exchange for these official actions, Bozier solicited and accepted numerous kickbacks during the course of the conspiracy totaling approximately $100,000.
In one case detailed in the superseding indictment, Bozier secured the awarding of a contract to replace the roof at a building operated by the VHHA for a construction company controlled by a co-conspirator. Pursuant to the fraudulent bid, the VHHA paid approximately $250,000 for the project that a co-conspirator paid a sub-contractor $23,000 to complete. More than $200,000 in proceeds from the fraudulently inflated contract were distributed between Bozier and several co-conspirators.
To date, the investigation has identified more than $500,000 that was allegedly stolen from the VHHA as a result of the charged conspiracy.
The five co-conspirators charged in the underlying indictment have previously pleaded guilty and are awaiting sentence.
If convicted, Bozier faces a term of imprisonment of up to 20 years for the conspiracy to commit honest services fraud charge and up to 10 years for each of the federal program bribery charges. The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorney Paul G. Scotti is in charge of the prosecution.
The Defendant:
CORNELL BOZIER
Age: 56
North Baldwin, NYE.D.N.Y. Docket No. 15-CR-303 (S-1) (JMA)
Florida man pleads guilty to distributing performance enhancing drugsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cole Leggett, 52, of Clearwater, Florida pled guilty in federal court today to distributing performance enhancing drugs, United States Attorney William J. Ihlenfeld, II, announced.
Leggett was an employee of Freedom Pharma, a company that was a manufacturer and distributor of various unapproved prescription drugs to customers throughout the United States, including the Northern District of West Virginia. Freedom Pharma was not registered with the United States Food and Drug Administration as a drug manufacturer. The performance enhancing drugs were misbranded and introduced into interstate commerce.
“When criminals introduce misbranded drugs into the marketplace, they expose U.S. consumers to risk,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Office. “We will continue to pursue and bring to justice those who would jeopardize the health of the U.S. public.”
Bagwell faces up to five years in prison and a fine of up to $250,000. 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 Jarod J. Douglas prosecuted the case on behalf of the government. The United States Food and Drug Administration investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Florence Man Found Guilty of Defrauding Farm Assistance ProgramRead the Press Release
Contact Person: Winston Holliday, Jr (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Tyrone Goodrum, age 44, of Florence, has been convicted of Conspiracy, a violation of 18 U.S.C. § 371, after a two-day trial in Florence that concluded late Tuesday. United States District Judge R. Bryan Harwell of Florence presided over the trial and will sentence Goodrum at a later date. On September 1, 2016, Tyrone Goodrum’s wife, Roselyn, pled guilty to participating in the same conspiracy.
Evidence presented at the trial established that Roselyn Goodrum was in charge of the Farm Service Agency’s (FSA) Florence office from 2006 through 2014. In February 2014, Ice Storm Pax caused extensive damage to farms in the Pee Dee. As a result, farmers could make claims to the FSA for financial assistance to clean up their land. Tyrone Goodrum conspired with his wife to file an application for payment, fraudulently representing that he was entitled to disaster benefits for a farm to which he had no connection. As a result, $18,500 in federal money was diverted to satisfy Tyrone Goodrum’s outstanding child support debt. Overall, Roselyn Goodrum filed multiple false applications and illegally obtained just over $146,000.
Ms. Drake stated the maximum penalty for Conspiracy is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the United States Department of Agriculture. Assistant United States Attorney Winston Holliday, of the Columbia office, prosecuted the case.
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Flint Man Pleads Guilty to Discharging Firearm During CarjackingRead the Press Release
A Flint man pleaded guilty on November 8, 2016 to discharging a firearm during a carjacking, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by S. Robin Shoemaker, Special Agent in Charge of the Detroit Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Mark E. Woodall, Jr., 21, entered the guilty plea before United States District Court Judge Linda V. Parker.
According to court documents, Woodall and two accomplices carjacked and shot another man on January 20, 2014, in Flint. Woodall and his accomplices brandished firearms as they approached the victim, who was seated in his car parked at an apartment complex. Woodall and his accomplices ordered the victim out of his car. Woodall and his accomplices then ordered the victim to get back in the car and drive them. After driving several blocks, Woodall and his accomplices ordered the victim to stop the car and get into the back seat. The victim stopped the car and took off running. As the victim ran away, Woodall and one of his accomplices began shooting at the victim. The victim was shot in the shoulder but managed to escape. Woodall and his accomplices then drove away in the victim’s car.
“We are focusing our resources on the most violent offenders in Flint in hopes of improving the quality of life for residents,” McQuade said. “Armed carjacking is one of the most serious violations of public safety, making people feel vulnerable in their own neighborhoods and driveways. We will bring strong federal penalties against those who prey on motorists in Flint.”
“We are committed to investigating those persons who seek to prey upon the citizens of Flint, using firearms as a means to intimidate others and commit violent crimes,” Special Agent in Charge Shoemaker said.
Woodall faces at least 10 years and up to life imprisonment for discharging the firearm during the carjacking. Sentencing has been scheduled for February 21, 2017, at 11:30 a.m. before Judge Parker.
Woodall is currently serving a 3 to 10 year state sentence with the Michigan Department of Corrections for his involvement in a 2013 shooting in Flint. Woodall’s federal sentence must run consecutively to his state sentence.
The case was investigated by special agents of the ATF with assistance from the Flint Police Department and Michigan State Police. The case is being prosecuted by an Assistant United States Attorney from the Flint Branch of the United States Attorney’s Office.
Five Receive Awards from U.S. Attorney GeneralRead the Press Release
ALBANY, NEW YORK – Three Assistant United States Attorneys for the Northern District of New York and two Special Agents of the Federal Bureau of Investigation in the District were honored today in our nation’s capital for their distinguished public service. Attorney General Loretta E. Lynch recognized 376 Department of Justice employees and 47 others (from outside DOJ) for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony in Washington, D.C. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
Assistant U.S. Attorneys Steven D. Clymer, Lisa M. Fletcher, and Tamara B. Thomson, and FBI Special Agents Frederick E. Bragg and Alix Skelton received Attorney General’s Distinguished Service Awards for their work on the investigation and prosecution of Stephen M. Howells, II, 40, and Nicole F. Vaisey, 26, both of Hermon, New York, in connection with their 2014 kidnapping and exploitation of two young Amish girls in St. Lawrence County.
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
“I am extremely proud that this team of federal prosecutors and FBI Special Agents are being honored for their outstanding work in bringing these depraved predators to justice. Howells and Vaisey drugged and sexually exploited young children, some of whom had been entrusted to their care and others that they abducted, sexually abused, and imprisoned. The lengthy sentences imposed in this case will ensure that no other children will ever be victimized by these defendants, who will remain incarcerated for the rest of their lives. This is the direct result of the work of these five dedicated professionals,” said United States Attorney Richard S. Hartunian.
Howells and Vaisey were arrested in August of 2014 following a massive manhunt and search in St. Lawrence County, New York after two young Amish girls were abducted from a roadside vegetable stand at their family farm. Howells and Vaisey lured the girls into a car, then abducted them. After drugging and abusing the girls, as well as filming and photographing them, Howells and Vaisey allowed them to be released and they went a nearby house. Following the arrest of Howells and Vaisey on August 15, 2014, the execution of a federal search warrant at their residence located drugs used on the two girls, video and photographic equipment, computers and electronic media containing child pornography. A forensic review of these items located evidence that the pair had abused and exploited four other minor victims who were the children of friends and relatives of Howells and Vaisey. Searches of computers possessed by Howells and Vaisey revealed thousands of images and videos of child pornography downloaded and collected by Howells from the internet and representing the exploitation of hundreds of additional children, including infants and toddlers.
Both Vaisey and Howells pled guilty in May 2015 to a superseding indictment alleging that they conspired to sexually exploit minors and exploiting minors (Nicole F. Vaisey-nine counts involving the exploitation of four minor victims) (Stephen M. Howells, II-fifteen counts involving the exploitation of six minor victims). Howells also pled guilty to five counts of possession of material that contains child pornography. In November 2015 Howells was sentenced to serve 580 years in prison and Nicole F. Vaisey was sentenced to serve 300 years in prison for these crimes.
Fernandina Beach Man Pleads Guilty to Hoax Bomb ThreatsRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that David Anthony Moody (28, Fernandina Beach) has pleaded guilty to making hoax bomb threats. He faces a maximum penalty of five years in federal prison. Moody was arraigned on February 16, 2016.
According to court documents, between January 30 and February 2, 2016, Moody wrote six bomb threat notes and left them at various public places in Fernandina Beach. Each note stated that a bomb was going to explode in the downtown Fernandina Beach area, killing a multitude of people. One of the notes was signed “The F.B. BOMBER!” In an effort to hide his identity, Moody wore gloves when preparing the notes and later destroyed materials associated with the six bomb threats. Although ultimately determined to be hoax threats, each time a bomb threat note was located, local, state, or federal law enforcement officers responded and conducted a search of the area for explosive devices.
This case was investigated by the Fernandina Beach Police Department, the Nassau County Sheriff’s Office, the U.S. Coast Guard Investigative Services - Coast Guard Explosive Detection Team, the Federal Bureau of Investigation Joint Terrorism Task Force, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Female Sex Trafficker Sentenced to 15 Years for Trafficking MinorsRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Alysia N. Algere a/k/a “Coco” (29, Tampa) to 15 years in federal prison for sex trafficking three minors. She pleaded guilty on February 3, 2016.
According to court documents, Algere recruited two minor boys and a minor girl, who were between 14 and 16 years of age, to engage in commercial sex acts. She took sexually explicit photos of the minors and posted advertisements on the Internet, selling them for sex.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Inmate Pleads Guilty to Possession of ContrabandRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on November 10, 2016, Edward Powell, 35, a former inmate at the Federal Correctional Institution located in Greenville, Illinois, commonly known as FCI-Greenville, pled guilty to an indictment charging him with Possession of Contraband by a Federal Inmate. Powell faces a term of imprisonment of not more than five years, a fine up to $250,000, or both, and a term of supervised release of not more than three years. In addition, Powell’s sentence on this offense must be served consecutively to the sentence he is currently serving. The defendant’s sentencing has been scheduled for March 1, 2017, in East St. Louis, Illinois. Powell has been held without bond since his arraignment on August 4, 2016.
The charge arose when, on May 8, 2016, a correctional officer monitoring the visiting room at FCI-Greenville noticed Powell and his visitor switch bags of chips. The visit was terminated and the bag of chips given to Powell was inspected. Eight small balloons containing marihuana were found inside the bag of chips handed to Powell. Powell was also placed in a dry cell where another two small balloons containing suspected marihuana were ultimately recovered. Federal inmates are prohibited from possessing marihuana.
The case was investigated by the Bureau of Prisons’ Special Investigation Section. The case is assigned to Assistant United States Attorney Angela Scott.
Employee Sentenced for Stealing Mail Being Loaded on Airplanes at McCarran International AirportRead the Press Release
LAS VEGAS, Nev. – An employee responsible for handling mail being loaded on airlines at McCarran International Airport was sentenced today by U.S. District Chief Judge Gloria M. Navarro to 30 months of probation for his guilty plea of stealing mail containing cash or gift cards, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The defendant abused his position and stole over 200 mail items in search of cash or gift cards for his personal use,” said U.S. Attorney Bogden. “Mail theft is a serious crime. Protecting our mail system’s integrity is important for businesses and social communication. We will continue to work with the U.S. Postal Inspection Service to ensure criminals are investigated and prosecuted to the fullest extent that the law allows.”
Martin Sagaga Lio Jr., 27, of Las Vegas, pleaded guilty on May 9, 2016, to one count of mail theft. He was indicted on March 1, 2016.
According to court records, between Dec. 6, 2015 and Feb. 25, 2016, Lio was employed by Swissport, the contracted company authorized to handle mail being loaded on airlines at McCarran International Airport. During this time, Lio admitted that he stole mail from mail trays which were being loaded in the cargo areas of various aircraft. He searched the mail for gift card sized envelopes which he would conceal in his clothing and take to various employee restrooms within the airport. After searching for and removing cash or gift cards, Lio would discard the opened mail in the restroom trash cans. A total of 248 mail items which Lio stole and threw away were recovered from employee restroom trash cans.
The case was investigated by the U.S. Postal Inspection Service, and prosecuted by Assistant U.S. Attorney Jared L. Grimmer.
If you believe your mail was stolen, call the U.S. Postal Inspection Service at 1-877-876-2455 and press 3. To file a mail theft complaint, visit https://postalinspectors.uspis.gov/ or call 1-800-275-8777.
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Departments of Justice and Housing and Urban Development Release Updated Fair Housing Act Guidance on State and Local Land Use LawsRead the Press Release
The Justice Department and the Department of Housing and Urban Development (HUD) released updated guidance today on the application of the federal Fair Housing Act (FHA) to state and local land use and zoning laws. The guidance is designed to help state and local governments better understand how to comply with the FHA when making zoning and land use decisions as well as to help members of the public understand their rights under the FHA.
“The Fair Housing Act helps protect open, free and integrated communities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Government officials, housing providers and the general public need to understand how land use and zoning decisions can create barriers to equal housing opportunity. We hope this guidance will help communities make these decisions free from discrimination.”
“Zoning and land use are inherently local decisions,” said Gustavo Velasquez, Assistant Secretary for Fair Housing and Equal Opportunity for the Department of Housing and Urban Development. “This updated guidance will help give localities and the American people a clearer line of what could constitute housing discrimination under the federal Fair Housing Act. Cities will also have more resources to understand their fair housing rights and responsibilities in the course of making decisions related to various types of housing, including group homes for residents with disabilities.”
The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status (residing with children under 18). The statute bars state and local governments from enacting or enforcing land use and zoning laws, policies, practices and decisions that discriminate against persons because of a protected characteristic, such as race, national origin or disability.
The updated guidance, issued in the form of questions and answers, covers:
- How does the Fair Housing Act apply to state and local land use and zoning?
- When does a land use or zoning practice constitute intentional discrimination in violation of the Fair Housing Act?
- Can state and local land use and zoning laws or practices violate the Fair Housing Act if the state or locality did not intend to discriminate against persons on a prohibited basis?
- Does a state or local government violate the Fair Housing Act if it considers the fears or prejudices of community members when enacting or applying its land use laws respecting housing?
- What is a group home within the meaning of the Fair Housing Act?
- In what ways does the Fair Housing Act apply to group homes?
- How does the Supreme Court’s ruling in Olmstead v. L.C. apply to the Fair Housing Act?
- Can a state or local government impose health and safety regulations on group home operators?
- Can a state or local government impose spacing requirements on the location of group homes for persons with disabilities?
- When does a state or local government violate the Fair Housing Act by failing to grant a request for a reasonable accommodation?
The guidance is available online at https://www.justice.gov/crt/fair-housing-policy-statements-and-guidance-0. The Justice Department and HUD share responsibility for enforcing the FHA. HUD is the agency with the primary responsibility to investigate individual complaints of discrimination. The Secretary of HUD, on his own initiative, may file complaints alleging discrimination. In addition, the Attorney General may commence a civil action in federal court when she has reasonable cause to believe that person(s) are engaged in a pattern or practice of discrimination or that a group of persons has been denied rights protected by the FHA.
More information about the Justice Department’s Civil Rights Division and the laws it enforces is available at https://www.justice.gov/crt. More information about HUD and the civil rights laws it enforces is available at www.hud.gov/fairhousing.
Individuals who believe that they may have been victims of housing discrimination may contact the Justice Department at 1-800-896-7743, or they may email DOJ at [email protected]. They may also contact HUD at 1-800-669-9777.
Joint Statement on Land UseColumbus, Ohio woman pleads guilty to transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Jolisha McDonald, 31, of Columbus, Ohio pled guilty to transporting stolen goods across state lines, United States Attorney William J. Ihlenfeld, II, announced.
McDonald pled guilty to one count of “Conspiracy to Transport Stolen in Interstate Commerce.” She admitted to conspiring to steal primarily smart phones, tablets, head phones, games stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000.
She faces up to five years in prison and a fine of up to $250,000. 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 Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus, Ohio Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Columbus heroin dealer sentenced to five years in federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Columbus drug dealer was sentenced today to five years in federal prison for a heroin crime, announced United States Attorney Carol Casto. Christopher E. Butts, 42, previously pleaded guilty to distribution of heroin.
Butts admitted that on May 24, 2016, he sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deal took place at the corner of Delaware Avenue and Randolph Street in Charleston. Butts further admitted that he sold drugs to a confidential informant again the next day. On May 26, 2016, law enforcement executed a search warrant at the residence where Butts was staying. During the search, officers seized over six grams of heroin from Butts that was in his pocket, a firearm located near his feet, and cash from the residence. Officers additionally located approximately 75 grams of heroin behind the couch in the residence. All of the heroin recovered in the search was field tested by law enforcement and came up positive for the presence of fentanyl, which is anywhere from 25 to 50 times more potent than heroin.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Columbus Man Indicted on Two Counts of Attempting to Provide Material Support to ISILRead the Press Release
COLUMBUS, Ohio – A federal grand jury returned a two-count indictment alleging that Aaron Travis Daniels, 20, aka Harun Muhammad, aka Abu Yusef of Columbus provided and attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and agencies participating in the Southern Ohio Joint Terrorism Task Force (JTTF) announced the indictment returned today.
Count one of the indictment alleges that Daniels provided material support to a foreign terrorist organization by sending $250 in January 2016 to an ISIL operative. Count two alleges that Daniels attempted to provide material support and resources, himself, as personnel to ISIL. JTTF agents arrested Daniels on November 7 as he attempted to leave Columbus with an alleged eventual destination of Libya to join ISIL.
If convicted, Daniels faces a maximum sentence of 20 years in prison on each count. Congress prescribes the maximum potential sentences and it is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. An indictment merely contains allegations and the defendant is presumed innocent unless proven guilty in a court of law. Daniels has been in custody since his arrest. Chief U.S. District Judge Edmund A. Sargus Jr. will preside over the case.
The Southern Ohio JTTF is made up of officers and agents from the FBI, U.S. Marshals Service, Columbus Division of Police, Franklin County Sheriff’s Office, Ohio State Highway Patrol, The Ohio State University Police Department, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, Westerville Police Department and Columbus Division of Fire.
The case is being prosecuted by Assistant U.S. Attorney Jessica W. Knight, Special Assistant U.S. Attorney Joseph Gibson with Franklin County Prosecutor Ron O’Brien’s Office and Trial Attorneys Michael Dittoe and Taryn Meeks of the National Security Division’s Counterterrorism Section.
Columbus Man Indicted for Armed Bank RobberyRead the Press Release
COLUMBUS – A federal grand jury indicted Ikechi W. Emeaghara, 27, of Columbus, charging him with armed bank robbery of a northwest Columbus bank on October 21, 2016.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kim Jacobs announced the indictment returned today.
According to public court documents, a man, later identified as Emeaghara, entered the Key Bank on Frantz Road about 10 a.m. brandishing what appeared to be a black semi-automatic handgun and demanded cash from the bank teller’s drawers.
He took the cash and fled the bank in a car. Columbus Police officers followed him. Emeaghara pulled into a business parking lot, got out of the car and pointed a gun at the officers. Officers shot and injured him, and arranged for him to be transported to a hospital for treatment. Task Force officers investigating a series of bank robberies filed a federal complaint charging Emeaghara with armed bank robbery on November 1.
Armed bank robbery is a crime punishable by up to 25 years in prison and a fine of up to $250,000. Congress prescribes the maximum potential sentences and it is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. A federal indictment merely contains allegations and the defendant is presumed innocent unless proven guilty in a court of law
U.S. Attorney Glassman commended the cooperative investigation by Columbus Police, the FBI, and ATF, and indicated that the investigation is continuing. The case is being prosecuted by Assistant U.S. Attorney Salvador A. Dominguez and Deputy Criminal Chief Gary Spartis.
Choctaw Tribal Member Sentenced to 120 months for AssaultRead the Press Release
Jackson, Miss –Kent Ali Dan, 26, of Philadelphia, Mississippi, was sentenced today by U.S. District Judge Henry T. Wingate, to 120 months in prison for an assault resulting in serious bodily injury U.S. Attorney Gregory K. Davis announced today. The brutal assault against his wife occurred in the Bogue Chitto Community of the Choctaw Indian Reservation.
"The United States Attorney’s office will protect our most vulnerable citizens from horrendous acts such as this by prosecuting those responsible," said U.S. Attorney Davis. "We thank the FBI and the Choctaw Police Department for their hard work in bringing this defendant to justice."
The case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department and was prosecuted by Criminal Chief Darren LaMarca.
Charleston felon sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to a year and nine months in federal prison for a gun crime, announced United States Attorney Carol Casto. Ronald Sayles, 39, previously pleaded guilty to being a felon in possession of a firearm.
Sayles admitted that in December 2014, he possessed two handguns, a Taurus .32 caliber pistol and a Ruger 9 mm pistol, at his Charleston residence. Charleston Police Department officers discovered the guns while executing a search warrant on December 7, 2014. Sayles was prohibited from possessing any firearm under federal law because of a 2002 felony drug conviction in Kanawha County Circuit Court.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney John J. Frail handled the prosecution. United States District Judge Joseph R. Goodwin 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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Cayuga County Man Sentenced to Fifteen Years in Prison for Federal Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Michael J. Mahannah, 33, of Auburn was sentenced today in federal court to serve fifteen (15) years in prison to be followed by a ten (10) year term of supervised release in connection with his guilty pleas to eighteen counts of the possession, receipt and distribution of child pornography, announced United States Attorney Richard S. Hartunian. As part of his sentence, Mahannah will also be required to register as a sex offender upon release from prison.
In pleading guilty, Mahannah admitted to sending and receiving images of child pornography that he obtained from a Russian website and to storing a number of those images on his mobile telephone. Mahannah faced a higher mandatory minimum sentence because he has a prior conviction for a sex offense – specifically, a 2009 conviction in New York State court for Sexual Misconduct.
This case was investigated by the United States Secret Service, the New York State Police, the Syracuse Police Department, and the Cayuga County District Attorney’s Office, as part of Project Safe Childhood.
Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant United States Attorneys Lisa Fletcher and Nicolas Commandeur.
Buffalo Man Pleads Guilty to Wire Fraud and Aggravated Idenity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Alan Ceccarelli, 31, of Buffalo, NY, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft, before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that between January 2013 and January 2016, Ceccarelli, the owner and manager of a debt collection business, engaged in a scheme to defraud debtors and purported debtors by false and fraudulent pretenses. The defendant tricked and coerced victims throughout the United States into paying debts that they owed or debts that they did not owe through a variety of false statements and threats. Ceccarelli hired a number of debt collectors as part of the scheme which resulted in his company collecting more than $1,022,000 from thousands of victims across the United States. In order to further the scheme, the defendant used a variety of aliases and identities of others.
The plea is the result of an investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for February 8, 2017 at 2:00 p.m. before Judge Wolford.
Brooklyn Man Sentenced for Credit Card Fraud and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK –Craig Alexander, 31, of Brooklyn, was sentenced today to serve 64 months in prison for committing credit card fraud and aggravated identity theft in September of 2014 in Utica, New York and at the Turning Stone Resort and Casino in Verona, New York.
The announcement was made by United States Attorney Richard S. Hartunian and Resident Agent in Charge Tim Kirk of the Syracuse Office of the United States Secret Service.
“Identity theft and credit card fraud cost financial institutions and individuals billions of dollars every year and cause irreparable harm to individuals whose credit is left in tatters. Too many of our citizens suffer at the hands of these criminals, who use the victim’s good name to steal, and my office will continue to prosecute these cases aggressively,” said U.S. Attorney Hartunian.
“This verdict represents the culmination of an investigation that required the cooperation of the Utica Police Department, Oneida Indian Nation Police, New York State Police Troop D, and the Secret Service,” stated Resident Agent in Charge Tim Kirk. “Each agency was integral to building the case, and ultimately securing a conviction.”
Chief United States District Judge Glenn T. Suddaby also sentenced Alexander to serve 3 years of post-imprisonment supervised release.
The jury in this case returned a verdict of guilty on all counts on June 22, 2016, after a three-day trial. The evidence at trial showed that Alexander assumed a man’s identity after that man lost his wallet in a New York City park and then used counterfeit credit cards encoded with the bank account information of at least 28 others whose personal information had also been stolen. He bought high-end products, such as iPads, and also got cash advances from merchants in Utica, New York.
This case was investigated by the United States Secret Service, New York State Police, Oneida Indian Nation Police, and the Utica Police Department, and was prosecuted by Assistant U.S. Attorneys Emmet O’Hanlon and Ransom Reynolds.
Billings Businessman and Construction Company Convicted of Pay to Play Scheme on Rocky Boy’s ReservationRead the Press Release
GREAT FALLS – Following a four-day trial, a federal jury today convicted Kevin McGovern and CMG Construction of Conspiracy, Wire Fraud, and Bribery, arising out of a pay-to-play scheme on the Rocky Boy’s Indian Reservation. U.S. District Court Judge Brian Morris presided over the trial.
Tony James Belcourt was in care, custody, and control of over $85 million, most of which were federal funds. During the time of the crimes, Belcourt’s job duties included serving as a representative in the House of Representatives for the State of Montana, the CEO for the Chippewa Cree Construction Corporation, and the Incident Commander for FEMA during the floods of 2010. Belcourt and other tribal officials required contractors to pay kickbacks and bribes to tribal officials in order to receive contracts and contract payments on the Rocky Boy’s Indian Reservation. Belcourt was previously convicted for accepting bribes and is currently serving a 90-month sentence in federal prison.
Billings businessman Kevin McGovern and his company, CMG Construction, received contracts on the Rocky Boy’s Indian Reservation without being required to submit bids to the Chippewa Cree Construction Corporation. McGovern and CMG Construction received preferential treatment from Belcourt and other tribal officials because they funneled almost $1 million to Belcourt through a company called MT Waterworks, LLC. Belcourt never provided any services to the company.
In July of 2011, Belcourt drove to Billings, Montana, and gave Kevin McGovern a $200,000 progress payment of federal funds for work performed on the Rocky Boy’s Indian Reservation. The following day, McGovern gave a personal loan to Tony Belcourt in the amount of $50,000. McGovern then sent $25,000 as a donation to the Chippewa Cree Events Committee, which was a known slush fund for a tribal councilman who was previously convicted for accepting bribes.
“The community expects that public officials and contractors handle federal funds with great care,” said United States Attorney for the District of Montana Michael Cotter. “When those lines are blurred, and federal funds are abused in the process, the integrity of the political system is in danger. That is why we will continue to vigorously prosecute public corruption in the District of Montana.”
The jury convicted McGovern and CMG Construction of Conspiracy, Wire Fraud, and Bribery of Tony Belcourt. The jury acquitted McGovern and CMG Construction of one count that involved bribery of another tribal official. Sentencing has been set for February 16, 2017, at 11:00 a.m. Kevin David McGovern and his other company, MC Equipment Holdings, LLC, are set for trial in a different bribery scheme on February 3, 2017.
The conviction of McGovern and CMG Construction is the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011. The McGovern and CMG Construction case was investigated by the Department of Interior, Office of Inspector General, Health and Human Services, Office of Inspector General, and the Internal Revenue Service, Criminal Division and prosecuted by Assistant United States Attorneys Ryan Weldon, Bryan Dake and Tim Racicot.
Authorities Make Multiple Arrests in Varying Indictments Involving Firearms and NarcoticsRead the Press Release
CORPUS CHRISTI, Texas - A total of 10 area men are now in custody as a result of a coordinated effort by federal, state and local law enforcement, announced U.S. Attorney Kenneth Magidson.
Tomas Perez, 30, David Lerma, 24, John Guerrero, 23, Omar Flores, 30, Dominic Suarez, 32, and Jesse Ramos, 29, all of Corpus Christi, are charged in separate indictments as being felons in possession of a firearm and ammunition.
Juan Sanchez, 24, of Corpus Christi, is charged with being a felon in possession of a firearm, while Smiley Rodriguez, 32, also of Corpus Christi, is charged with possession with intent to distribute crack cocaine.
In another separate indictment, Roy Valent Jr., 31, and Arnold Valent, 29, both of Corpus Christi, are charged with conspiracy to possess with intent to distribute a controlled substance and conspiracy to possess with intent to distribute a controlled substance analogue. Valent is also charged with being a felon in possession of firearms and ammunition.
Authorities arrested Flores, Suarez, Sanchez, Guerrero, Perez, Ramos and Valent during an enforcement action yesterday. Detention hearings have been set for Monday, Nov. 14.
Lerma and Rodriguez were previously in custody and are expected to appear in federal court in the near future.
Each charge involving a firearm carries a maximum penalty of 10 years in prison and a possible $250,000 fine. If convicted of the drug charges, those defendants face up to 20 years of imprisonment and a possible $1 million fine.
Operation City Shield is a coordinated effort by federal, state and local law enforcement to identify violent offenders, stop gun violence and protect the community.
The charges stem from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; U.S. Marshals Service; Corpus Christi Police Department and the Texas Department of Public Safety.
Assistant U.S. Attorney Lance Watt is prosecuting the case.
Attorney General Lynch Recognizes Child Exploitation Task Force with Award for Distinguished ServiceRead the Press Release
WASHINGTON - Attorney General Loretta E. Lynch today recognized a team from the U.S. Attorney’s Office for the District of Columbia, the FBI’s Washington Field Office, and the Metropolitan Police Department (MPD) for its exceptional work against child exploitation and human trafficking in the Washington, D.C. area.
The team members were among 376 Justice Department employees and 47 individuals outside of the department to receive Attorney General Awards at a ceremony in Washington, D.C. Today’s 64th annual ceremony recognized individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
The Washington Metro Child Exploitation Task Force was honored with the award for Distinguished Service, one of the Justice Department’s highest honors. The task force, consisting of members from the FBI’s Washington Field Office, MPD, and the U.S. Attorney’s Office, has played an instrumental role in identifying, disrupting and dismantling the most egregious perpetrators in child exploitation and human trafficking within the greater Washington, D.C., metropolitan area and beyond its area of responsibilities. The team has demonstrated a history of success in penetrating the secret and often reclusive cyber world of child predators.
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
“These awards are a fitting tribute for a longstanding task force whose members literally work around the clock to rescue children from sexual abuse and exploitation,” said U.S. Attorney Channing D. Phillips. “The selfless teamwork and unwavering dedication displayed by the Child Exploitation Task Force are emblematic of the tremendous and critical work being done each day by law enforcement to protect vulnerable victims from dangerous predators who lurk in cyberspace and our community.”
“The members of the Washington Metro Child Exploitation Task Force have done exemplary work in protecting the most vulnerable members of our society,” said Assistant Director in Charge Abbate. “These agents, analysts, and task force officers have worked tirelessly and skillfully to investigate, disrupt, and bring to justice those who exploit and abuse children. Every day, they are faced with some of the most challenging and critical work in law enforcement, and today they have been honored for their truly heroic work.”
“Through collaboration with our partners and an unwavering dedication of each agency to make the Internet safer for children, we will continue to ensure the safety of our children as a top priority,” said Peter Newsham, Interim Chief of the Metropolitan Police Department.
The Distinguished Service Award is one of the Justice Department’s highest honors for employee performance. Recipients exemplify the highest commitment to the Justice Department’s mission. The team members who were honored today include Cyber Division Supervisory Special Agent Brenda K. Born, Supervisory Special Agent Andrew Patrick Leithead, Special Agents Sean P. Clark, Jenny M. Cutalo-Patterson, Tonya Sturgill Griffith, Alicia M. McShane and Jennifer N. Edwards and Intelligence Analyst Heather L. Gordon Ph.D., all from the FBI’s Washington Field Office; Detectives Jonathan K. Andrews Sr. and Timothy R. Palchak, from the Metropolitan Police Department; and Assistant U.S. Attorneys Andrea L. Hertzfeld, Cassidy M. Pinegar, Ari B. Redbord and Lindsay J. Suttenberg and Computer Forensic Examiner John E. Marsh, from the U.S. Attorney’s Office of the District of Columbia.
In announcing the award, the Justice Department commended the task force for its extraordinary dedication, innovative techniques and commitment in identifying and prosecuting these predatory offenders. During 2014 and 2015, the work of the recipients resulted in the rescue of numerous children who were victims of ongoing abuse and exploitation. Undercover officers act swiftly when they learn of victims of sexual abuse and child pornography, and their work has led to arrests of defendants in Ohio, North Carolina, Indiana, Texas, Pennsylvania, and other locations. The task force also assisted in identifying and locating more than 60 victims of sexual abuse and child pornography.
Attorney General Loretta E. Lynch Hosts the 64th Annual Attorney General’s Awards Ceremony Honoring Justice Department Employees and Others for Their ServiceRead the Press Release
Attorney General Loretta E. Lynch recognized 376 Justice Department employees for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony. Forty-seven other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
The Attorney General’s David Margolis Award for Exceptional Service is the department’s highest award for employee performance. This year’s award was presented to the team responsible for the investigation and prosecution of Dzhokhar Tsarnaev. On April 15, 2013, Dzhokhar and Tamerlan Tsarnaev detonated two powerful improvised explosive devices near the Boston Marathon finish line, killing three, maiming 17 and injuring hundreds more in the largest mass-casualty terrorist attack on U.S. soil since Sept. 11, 2001. Following a manhunt during which the brothers killed a Massachusetts Institute of Technology police officer, Tamerlan Tsarnaev was killed in a shoot-out with police and Dzhokhar Tsarnaev was arrested. Members of the FBI’s Boston Field Office oversaw a worldwide investigation that involved more than 6,000 items of physical and digital evidence, over 100,000 photographs and videos and more than 1,000 witness interviews. Tsarnaev was charged in a 30-count indictment with numerous crimes of terrorism and other violent offenses. Over the course of a 10-week trial, the prosecution team introduced over 1,000 exhibits and called more than 100 witnesses to the stand, including 14 victims who lost limbs in the bombings; family members of the murdered; other survivors and eye witnesses; fingerprint, DNA, bomb, ballistics and terrorism experts; and law enforcement officers. The prosecutors also cross-examined nearly 50 defense witnesses during the penalty-phase defense case. A jury found Tsarnaev guilty on all 30 counts in the indictment. He was sentenced to death on six counts and to life in prison on 11 other counts, and was ordered to pay $101 million in restitution to the victims.
The recipients of the Attorney General’s David Margolis Award for Exceptional Service include, from the U.S. Attorney’s Office of the District of Massachusetts, Assistant U.S. Attorneys Aloke S. Chakravarty, James B. Farmer and William D. Weinreb, Community Outreach Program Manager Cara M. Henderson, Acting Executive Officer Christina DiIorio-Sterling and Victim/Witness Specialist Kathleen M. Griffin and Jessica M. Pooler; from the U.S. Attorney’s Office of the Southern District of Texas, Assistant U.S. Attorney Steven D. Mellin; from the Criminal Division’s Capital Case Section, Trial Attorney Jeffrey B. Kahan; from the FBI’s Legal Attache in Ottawa, Supervisory Special Agent Courtland D. Rae; from the FBI’s Boston Field Office, Special Agents David S. Bell and Timothy D. Brown and Photographer Michelle M. Gamble; from the National Security Division’s Counterterrorism Section, Trial Attorneys David P. Cora, Gregory R. Gonzalez and Joseph N. Kaster, Legal Administrative Specialist Pamela J. Hall, Litigation Support Manager Laura P. Galban and Paralegal Specialist Jamie M. Haydel; from the U.S. Marshals Service (USMS) District of Massachusetts, Supervisory Deputy U.S. Marshal Kevin W. Neal, Acting Chief Deputy U.S. Marshal Jeffrey L. Bohn, Deputy U.S. Marshals Jesse Donaruma, Matthew Lawlor and Robert M. Lima and Protective Intelligence Investigator Jonathan A. Lemay; from the USMS Judicial Security Division, Assistant Chief Inspector Gregory C. Petchel; from the USMS Prisoner Operations Division, Assistant Chief Inspector Charles Hardison; from the USMS Tactical Operations Division, Deputy Commanders Harry W. Little and Mark S. Walker and Special Operations Group Inspectors Richard “Todd” Jordan and Leigh N. Marchegiani; and from the U.S. Department of the Navy’s Naval Criminal Investigative Service, Special Agent Christopher J. Bould.
The Attorney General’s Award for Exceptional Heroism is given to recognize an extraordinary act of courage and voluntary risk of life during the performance of official duties. The recipients of the Attorney General’s Award for Exceptional Heroism are, from the USMS Northern District of Indiana, Supervisory Inspector Diego Grimaldo, Investigative Operations Division Inspector Erick D. Brown and Deputy U.S. Marshal Kenneth E. Hausmann.
While working on a task force investigating the location of a dangerous fugitive, who was wanted in Indiana for multiple counts of attempted murder and aggravated battery with a firearm, Grimaldo, Brown and Hausmann tracked the fugitive to his sister’s apartment. The team was joined by officers from the Chicago Police Department (CPD). As they approached the apartment, the group encountered gunfire coming from inside the building. A captain with the CPD was struck in the head and shoulder and fell to the ground. Hausmann immediately administered first aid to the captain, while Grimaldo and Brown returned gunfire. Within minutes, Grimaldo managed to make his way to a nearby apartment, signal to officers to call an ambulance and organize a plan to safely evacuate the injured captain. As Hausmann assisted with safely evacuating the captain to the ambulance, the fugitive continued to engage Grimaldo and Brown in gunfire. SWAT team members soon arrived and eventually took the fugitive into custody. Thanks to the team’s extraordinary courage in carrying out their duties under a life-threatening situation, the police captain survived and has returned to full duty.
The Mary C. Lawton Lifetime Service Award recognizes employees who have served at least 20 years in the department and have demonstrated high standards of excellence and dedication throughout their careers. This award is presented only in exceptional circumstances to those individuals of special merit and is not awarded to express general appreciation for tenure alone. This year’s Mary C. Lawton Lifetime Service Award is presented to Monty Wilkinson, Director of the Executive Office for U.S. Attorneys.
In his 25 years with the department, Wilkinson has been a skilled and respected manager whose leadership has made a tremendous impact in his offices, in his community and in the department as a whole. Throughout his career, Wilkinson has abided by a leadership style that focuses on nurturing relationships, fostering respect, maximizing potential, maintaining excellence, promoting a strong sense of service and achieving results. He has served in leadership roles in the U.S. Attorney’s Office for the District of Columbia, the Office of the Deputy Attorney General, the Office of the Attorney General and the Executive Office for U.S. Attorneys. In each position, Wilkinson has excelled by personifying professionalism, wisdom, judgment, savvy, dedication and perseverance.
The William French Smith Award for Outstanding Contributions to Cooperative Law Enforcement is an honorary award granted to recognize state and local law enforcement officials who have made significant contributions to cooperative law enforcement endeavors.
This year’s recipients are, from the Detroit Police Department, Sergeants Ian M. Becker and David Wasmund and Task Force Officers Jason R. Criner, Treva L. Eaton, Darell Fitzgerald and Anthony Jones; from the Livonia Police Department, Sergeant Gregory Yon; from the Oakland County Sheriff’s Office, Task Force Officer Brian W. Behrend; from the Michigan State Police, Task Force Officers Jacob D. Liss, Todd A. Poppema, William F. Prince and Korey A. Rowe; from the Dearbon Police Department, Task Force Officer Steven Faith; and from the Wayne County Sheriff’s Department, Task Force Officers Daniel J. Carmona, Raymon M. Alam, Brian Rinehart and David Weinman.
On March 2, 2015, the USMS Task Force in Indianapolis requested aid from the USMS Detroit Fugitive Apprehension Team to assist with an Amber Alert case for two children abducted at gunpoint from their homes in Indiana. The team immediately responded by coordinating with multiple state and local law enforcement and the Detroit FBI Violent Crimes Task Force, resulting in a quick and thorough investigation and rescue of the two children. The recipients’ experience in cooperative law enforcement was evident in the swift and safe rescue and arrests that occurred without harm to the children or the community. The established partnerships and cooperation between the federal, state and local law enforcement agencies were crucial to the successful investigation and rescue in this abduction case and in the many other cases the team works on a daily basis. The team’s performance, dedication and cooperative efforts saved the lives of two abducted children and made the community’s period of fear short-lived. The lives of the children could have turned out very differently if not for the excellent participation and cooperative interagency effort made by the six state and local law enforcement agencies that make up this team of exceptional officers.
The Attorney General’s Award for Meritorious Public Service is the top public service award granted by the department, and is designed to recognize the most significant contributions of citizens and organizations that have assisted the department in the accomplishment of its mission and objectives. This year’s recipient is Michael J. Nila, the founder of Blue Courage.
Nila is honored for his significant contributions to state and local law enforcement and communities nationwide. During his law enforcement career, he recognized a significant gap between what we want our country’s police officers to be and how the law enforcement profession is currently educating its personnel. To address this gap, Nila developed Blue Courage, a blend of education, principles, practices, skills and tools that foster a culture of leadership, character and service. Blue Courage focuses on the heart and mind which represents the foundation to making good decisions and enhancing the capacity to serve honorably. Today, over 10,000 officers have been trained in Blue Courage and its principles are now infused in recruiting and police academy curricula in four states, with an additional 10 states competing to go through the process. As a direct result of Blue Courage training, officers are more in tune with and aware of their thoughts and behaviors. Furthermore, they have tools to become centered and balanced, and are reminded of why they joined the law enforcement profession. Through Blue Courage, Nila has demonstrated he is a committed and effective partner in the department’s efforts to inspire and engage our nation’s state and local law enforcement officers, and to strengthen relationships with communities nationwide.
The Edward H. Levi Award for Outstanding Professionalism and Exemplary Integrity is presented to pay tribute to the memory and achievements of former Attorney General Edward H. Levi, whose career as an attorney, law professor, dean and public servant exemplified these qualities in the best traditions of the department. This year’s award is presented to Lee J. Lofthus, the Assistant Attorney General for Administration.
Lofthus exemplifies the very best in executive leadership and has demonstrated three decades of dedication to public service which have resulted in outstanding organizational achievements. As the U.S. Department of Justice’s Senior Management Official, he provides effective leadership, directing diverse and complicated financial and budgetary programs, human resources, procurement, facilities, security and information technology activities. His career in public service has been distinguished by an unfaltering dedication to lead, motivate and inspire people. His vision, adaptability and commitment to customer service enable him to direct organizations through many complex endeavors and times of uncertainty. He has transformed the department’s administrative processes through innovative technologies and the recruitment and retention of talented and diverse leadership. On the financial side, since 2004, Lofthus accomplished a rare feat in that he was able to get clean audits for the department for 12 straight years and for nine straight years, the auditor’s report on internal control identified no material weaknesses at the consolidated level. Lofthus has played a central role in developing budget strategies in direct response to the initiatives of several Attorneys General in the areas of counterterrorism, national security and the administration of justice. He has provided unmatched leadership in initiatives to provide funding to state and local law enforcement entities throughout the department. Lofthus is well-known and respected in a variety of public and private arenas, and he is commonly sought out to advise and speak on a variety of challenging government-wide financial and budgetary-based initiatives.
The Attorney General’s Award for Distinguished Service is the Justice Department’s second-highest award for employee performance. The recipients of this award exemplify the highest commitment to the department’s mission. Seventeen Distinguished Service Awards are presented this year to individuals or teams of people.
The first Distinguished Service Award is presented to, from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF’s) Violent Crime Intelligence Division, Special Agents Tolliver L. Hart and Clinton F. Kehr, Intelligence Research Specialists Lianne S. Binckes, Robert D. Blevins and Jenise Ramos, Industry Operations Intelligence Specialists Jill M. Hansen and Nicholas A. Speranza Jr., Intelligence Program Specialist Daniel R. Mullins, Information Technology Specialists Laurie J. Powers and John E. Trice and Management Analyst Rhonda M. Butler; and from ATF’s Office of Chief Counsel, Attorney Ellen V. Endrizzi.
ATF’s Internet Investigations Center (IIC) is recognized for its outstanding determination, perseverance and subject-matter expertise to support ATF’s work to combat internet-based firearms crimes and related violations. The team, in conjunction with department guidance, drafted ATF’s internet investigations policy and established numerous standard operating procedures for ATF’s investigative and intelligence footprint online. The recipients also provided current, pertinent training to law enforcement audiences both inside and outside of ATF. Through the use of advanced technology, coupled with finely honed analytic and investigative skills, IIC personnel made its mark on illegal firearms transactions on all levels of the internet. This work was not only commended by partner law enforcement agencies, but the team was also recognized by an illicit Darknet vendor that named ATF specifically as one of the reasons it ceased illegal firearms transactions on its website.
The second Distinguished Service Award is presented to, from the Antitrust Division’s Litigation III Section, Section Chief David C. Kully and Trial Attorneys William H. Jones II, John R. Read, Adam C. Speegle and Nathan P. Sutton; from the Antitrust Division’s Appellate Section, Section Chief Kristen C. Limarzi and Trial Attorney Shana M. Wallace; from the Antitrust Division’s Washington II Criminal Section, Trial Attorney Daniel McCuaig; from the Antitrust Division’s Economic Regulatory Section, Assistant Section Chief Jeffrey M. Wilder and Economist Alexander Raskovich; from the Antitrust Division’s Economic Litigation Section, Economists William T. Whalen and Tor Winston; from the Antitrust Division Litigation II Section, Assistant Section Chief Stephanie A. Fleming; and from the Criminal Division’s Appellate Section, Trial Attorney Finnuala K. Tessier.
The Antitrust Division’s victory against Apple Inc. for orchestrating a conspiracy to raise the prices of e-books represents one of the most significant civil litigation victories that the division has achieved in over a decade, and it has led to state attorneys general and private plaintiffs recovering on behalf of harmed consumers approximately $566 million in damages. The recipients represented the United States in trial against Apple in June 2013 and successfully defended the case against Apple’s appeal. In April 2010, when Apple launched its iBookstore and entered the e-books market, U.S. e-book prices rose uniformly, in some instances as much as 50 percent. The division launched an investigation into possible coordination among e-book publishers and Apple and, in April 2012, brought suit in the U.S. District Court for the Southern District of New York alleging a conspiracy to raise e-book prices in violation of Section 1 of the Sherman Act. Over the course of the litigation, all the publishers settled with the federal government. However, Apple aggressively litigated the matter through a three-week trial in June 2013 before U.S. District Judge Denise Cote, who issued a 160-page order finding Apple liable for orchestrating a scheme among five of the six largest book publishers to raise e-book prices in violation of Section 1 of the Sherman Act. Apple’s vigorous efforts to pursue the matter on appeal ended in March 2016 when the Supreme Court of the United States (SCOTUS) rejected Apple’s petition for certiorari to review the Second Circuit’s decision affirming Judge Cote’s order. The litigation of this action and the precedent created by the trial court’s and Second Circuit’s decisions should deter those who in the future might contemplate violating U.S. antitrust laws.
The third Distinguished Service Award is presented to, from the Antitrust Division’s New York Office, Section Chief Jeffrey D. Martino and Trial Attorneys Bryan C. Bughman, Joseph Muoio Jr. and Carrie A. Syme; from the Antitrust Division’s Chicago Office, Trial Attorney Eric L. Schleef; from the Antitrust Division’s Washington Criminal I Section, Trial Attorney George S. Baranko; from the Criminal Division’s Fraud Section, Principal Deputy Chief Sandra L. Moser, Deputy Chief Benjamin Singer and former Deputy Chief Daniel A. Braun, Assistant Chief Albert B. Stieglitz Jr. and Trial Attorneys Melissa Aoyagi and Gary A. Winters; and from the FBI’s Washington Field Office, Special Agents Jennifer Riker and Jeffrey Weeks and Forensic Accountant Kyle D. Dornbos.
The recipients, through their leadership, dedication and tireless investigation of price fixing and bid rigging, are responsible for the historic prosecution of five of the world’s largest financial institutions that agreed to pay fines in excess of $2.7 billion. The investigation uncovered a conspiracy that affected the U.S. Dollar to Euro exchange rate. These currencies are at the heart of international commerce, and the conspiracy undermined the integrity and the competitiveness of foreign currency exchange markets which account for hundreds of billions of dollars of transactions every day. The companies responsible for actions that eliminated competition in the marketplace were held accountable for their illegal conduct, which will hopefully deter financial institutions from chasing profits without regard to fairness, the law or the public welfare.
The fourth Distinguished Service Award is presented to, from the Office of the Solicitor General, Assistant to the Solicitor General Eric J. Feigin; from the Civil Rights Division’s Appellate Section, Chief Diana K. Flynn, Principal Deputy Chief Sharon M. McGowan and Trial Attorney Robert A. Koch; and from the Civil Division’s Appellate Staff, Director Douglas N. Letter and Attorneys Jeffrey E. Sandberg and Abby C. Wright.
In Obergefell v. Hodges, SCOTUS struck down state bans on marriage equality that denied to same-sex couples and their children the protections and benefits of marriage. In doing so, SCOTUS granted LGBT individuals equal access to marriage and vindicated the Obama Administration’s strong interest in the eradication of discrimination on the basis of sexual orientation. This team is honored for its extraordinary work in this historic case. Under immense time pressures, the recipients worked collaboratively to craft a compelling, persuasive and successful legal brief on a seminal civil rights issue. The brief reiterated the department’s US v. Windsor position that classifications based on sexual orientation should trigger heightened scrutiny and described the harm that the state bans inflicted on same-sex couples and their families. In June 2015, SCOTUS issued a powerful decision extending the right to marry to same-sex couples and joining the ranks of landmark civil rights pronouncements from the court.
The fifth Distinguished Service Award is presented to, from the Criminal Division’s Human Rights and Special Prosecutions Section, Deputy Chief Matthew R. Stiglitz, Special Counsel Stacey Luck and Paralegal Specialist Linda Faulk; from the Criminal Division’s Office of International Affairs, Associate Director Magdalena Boynton; from the Criminal Division’s Narcotic and Dangerous Drug Division, Judicial Attaché Marlon Cobar; from the U.S. Attorney’s Office of the Eastern District of Virginia, Assistant U.S. Attorney Michael P. Ben’Ary; from the FBI’s Miami Field Office, Special Agent Charles M. Bryden and Supervisory Intelligence Analyst Raquel de la Huerta; from the FBI’s Counterterrorism Division, Supervisory Special Agent Rodney Cortes; from the FBI’s Criminal Investigative Division, Unit Chief Edgar Cruz; from the FBI’s Legal Attaché Santo Domingo, Supervisory Special Agent N.I. Delgado Jr.; from the FBI’s Legal Attaché Bogota, Supervisory Special Agent Andres E. Quintero; from the FBI’s Washington Field Office, Special Agent Beau Bourgeois; and from the U.S. Department of State’s Bureau of Diplomatic Security, Special Agent Suhaib Karim Qureshi.
On June 20, 2013, DEA Special Agent James Terry Watson was stabbed to death during an attempted kidnapping and robbery perpetrated by an organized group of taxi drivers in Bogota. A team of investigators and prosecutors was assembled, and working with their Colombian counterparts, they quickly identified seven individuals responsible for the murder and subsequent destruction of evidence. In an example of teamwork and coordination at its best, a complaint was filed and arrest warrants were obtained for the suspects within four days of the crime; within 18 months, the defendants’ extraditions were secured and they were all convicted. Because of the diligent work of those assigned to the case, justice was served for the family of Special Agent Watson.
The sixth Distinguished Service Award is presented to, from the Criminal Division’s Child Exploitation and Obscenity Section, Chief Steven J. Grocki and Deputy Chief Keith A. Becker; from the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Sarah Chang; from the Criminal Division’s Office of International Affairs, Senior Trial Attorney Judith Friedman; from the Criminal Division’s Appellate Section, Attorney David M. Lieberman; from the U.S. Attorney’s Office of the District of Nebraska, Senior Litigation Counsel Michael. P. Norris and Paralegal Specialist Harolene J. Bailey; from the FBI’s Office of the General Counsel, General Attorney Joanne C. Pasquarelli; from the FBI’s Criminal Investigative Division, Unit Chief Alan S. Nanavaty, Supervisory Special Agents K. Paul Cha, J. Brooke Donahue and P. Michael Gordon and Intelligence Analyst Robert Plumb; from the FBI’s Cyber Division, Supervisory Special Agent Steven A. Smith Jr.; from the FBI’s Critical Incident Response Group, Supervisory Special Agent Daniel E. O’Donnell; and from the FBI’s Omaha Field Office, Special Agents Sara K. Stanley and Jeffrey D. Tarpinian.
The recipients are recognized for their involvement in Operation Torpedo, a precedent-setting investigation that used first-of-its-kind techniques to infiltrate the dark internet and identify individuals who, under the perceived cloak of anonymity, secretly congregated to trade images of children being sexually abused and to celebrate the sexual abuse of children. By developing and deploying a network investigative technique, with appropriate legal authority, investigators were able to identify members of three websites devoted to child pornography that were operating on an anonymous network. The investigation required round-the-clock efforts from agents, analysts and prosecutors, and rapid response to fast-breaking developments. Prosecutors successfully defended these novel investigations in court and have obtained convictions at every turn. The impact of this investigation cannot be overstated. It has pioneered investigative work into the dark web that has led to subsequent significant investigations by the Criminal Division and the FBI; the dismantling of more than 100 child exploitation websites; and the seizure of massive amounts of child exploitation material, the largest seizure of virtual currency to date and the discovery of 120 victims of child sexual exploitation.
The seventh Distinguished Service Award is presented to Deputy Chief Franz R. Marshall of the Civil Rights Division’s Educational Opportunities Section. Marshall is recognized for his remarkable 43 years of service to the department, virtually all of which has been spent in the Civil Rights Division, where he has dedicated each day to breaking down barriers to educational opportunities for students across the country. Over the course of his career, he has represented the United States in hundreds of desegregation cases and through this work, Marshall has fiercely protected and embodied a core and founding mission of the Civil Rights Division, dismantling obstacles to opportunity and success in America’s public schools. Furthermore, Marshall has shaped the legal landscape and cleared paths to a better life for countless students. He has given voice to children and parents in communities throughout the United States, from Native Americans in the Four Corners to African Americans in the Louisiana Bayou. In short, no department lawyer has done more to open the schoolhouse doors to all children and to fulfill the principles and promise of Brown v. Board of Education.
The eighth Distinguished Service Award is presented to, from the Environment and Natural Resources Division’s Environmental Enforcement Section, Section Chief Thomas A. Mariani Jr., Assistant Section Chief William D. Brighton, Senior Litigation Counsel e-Discovery Sarah D. Himmelhoch, Senior Counsels Patrick M. Casey, Scott M. Cernich, Deanna J. Chang, Michael J. McNulty and Michael J. Zevenbergen, Senior Attorneys Nancy A. Flickinger and Steven R. O’Rourke, Trial Attorneys Abigail E. André and Rachel A. Hankey and Supervisory Paralegal Specialist Mark Fuller; from the Environment and Natural Resources Division’s Appellate Section, Trial Attorney Ellen J. Durkee; from the Environment and Natural Resources Division’s Law and Policy Section, Trial Attorney Judith B. Harvey; from the Civil Division’s Torts Branch - Aviation and Admiralty Section, West Coast Field Office Attorney-in-Charge R. Michael Underhill, Assistant Director Stephen G. Flynn, Senior Admiralty Counsel Michelle T. Delemarre, Trial Attorneys Malinda R. Lawrence, Jessica L. McClellan, Jill D. Rosa, Sharon K. Shutler and Jessica G. Sullivan; and from the Civil Division’s Commercial Litigation Branch – Fraud Section, Senior Trial Counsel Daniel A. Spiro.
To redress the BP/Deepwater Horizon disaster, the largest oil spill in U.S. history, this team successfully pursued the companies responsible for this multimillion-barrel oil spill. The recipients resolved the nation’s civil claims against those companies for more than $6.6 billion in civil penalties; more than $8 billion in natural resource damages; hundreds of millions of dollars in cleanup, assessment and other costs; and injunctive relief that should make for safer drilling operations in the Gulf of Mexico. Under applicable law, the majority of these funds will fuel restoration of natural resources and some economic redevelopment in the Gulf of Mexico region. The matter is the department’s largest-ever environmental enforcement effort. The team’s work also made it possible for the five Gulf states and their local governments to settle their economic damage claims for sums approaching another $5.9 billion.
The ninth Distinguished Service Award is presented to Assistant U.S. Attorneys Michelle B. Alvarez, Jeffrey N. Kaplan, Lawrence D. LaVecchio, Alison W. Lehr, Paul F. Schwartz, Evelyn B. Sheehan and Madeleine Shirley of the U.S. Attorney’s Office for the Southern District of Florida.
In October 2009, it was discovered that attorney Scott Rothstein was conducting one of the largest Ponzi schemes in American history through the operation of the Ft. Lauderdale, Florida, law firm of Rothstein Rosenfeldt & Adler P.A. (RRA). The basis of the scheme was the sale of securities in which investors purchased the rights to a stream of payments from corporate entities which ostensibly had reached confidential settlements with purported plaintiffs in sexual harassment, employment discrimination and whistleblower cases. Settlements were available for purchase in amounts ranging from hundreds of thousands to tens of millions of dollars. During the operation of the scheme, hundreds of investors remitted more than $1.2 billion to RRA, which funds were utilized to pay previous investors in the scheme to finance a lavish lifestyle for the participants, and to make political and charitable contributions which enhanced the prestige and visibility of RRA, thereby enhancing RRA’s ability to attract new investors. During the ensuing six years of litigation, 29 defendants, including attorneys and public officials, were convicted and sentenced on charges including racketeering, wire fraud, money laundering, income tax fraud, campaign finance violations, obstruction of justice, extortion and civil rights violations. Additionally, through forfeiture proceedings instituted by the government, coupled with proceedings in bankruptcy court and other ancillary civil proceedings, more than $400 million in assets were ultimately recovered, resulting in full restitution to the defrauded investors.
The 10th Distinguished Service Award is presented to, from the U.S. Attorney’s Office of the Southern District of New York, Assistant U.S. Attorneys John P. Cronan, Edward Y. Kim, Ian McGinley and Shane T. Stansbury, Criminal Investigator George F. Corey Jr. and Paralegal Specialists Melissa C. Danzo and Vanessa Quinoñes; from the FBI’s New York City Field Office, Special Agents Jonathan B. Geraci and Philip A. Swabsin; from the FBI’s New Haven Field Office, Supervisory Special Agent Michael S. Butsch; and from the National Security Division’s Office of the Assistant Attorney General, Deputy Assistant Attorney General George Z. Toscas.
For upwards of a decade, Abu Hamza stood as one of the most powerful, dangerous and recognizable terrorist leaders on the planet. Through his oratorical skills and sophisticated use of the internet, he indoctrinated his young, impressionable followers with his murderous message, inspiring the likes of Richard Reid, Zacarias Moussaoui and Mohammed Siddiqui Kahn. Additionally, Abu Hamza himself engaged in acts of terror that spanned the globe including the December 1998 hostage-taking in Yemen, which included two U.S. citizens and left four victims dead; the attempt to establish a terrorist training camp for al Qaeda on U.S. soil in late 1999; sending of one of his devoted followers to Afghanistan in 2000 to train and fight with al Qaeda; and supporting the Taliban from 2000 to 2001. Abu Hamza was arrested in the United Kingdom in 2004, but fought extradition for nearly a decade before he was extradited in October 2012. In preparing for trial, the recipients analyzed massive volumes of evidence recovered from across the globe, and identified witnesses in multiple continents to build and solidify a criminal case. The team also engaged in classified and unclassified litigation leading to and during trial, working in close coordination with the U.S. intelligence community to protect national security equities. Overcoming the inherent challenges in prosecuting a case where the conduct occurred approximately 15 years earlier, and where the evidence and witnesses were spread across the globe, the team secured a conviction on all 11 counts. Furthermore, Abu Hamza has been permanently incapacitated from future terrorist acts.
The 11th Distinguished Service Award is presented to, from the FBI’s Washington Field Office, Supervisory Special Agent William J. DelBagno; from the FBI’s Seattle Field Office, Supervisory Special Agent Christian L. Parker, Special Agents Eric Jon Barker, Ryan D. Butler and David S. Whitlow, Forensic Accountant Jennifer J. Boswell, Intelligence Analyst Mark J. Fitterer and Staff Operations Specialist Morgan L. Reid; from the FBI’s International Operations Division, Supervisory Special Agent James B. Volkert; from the FBI’s Weapons of Mass Destruction (WMD) Directorate, Supervisory Intelligence Analyst Christina Ruetschlin; from the FBI’s Miami Field Office, Special Agent Paul C. Clark; from the FBI’s Pittsburgh Field Office, Special Agent James K. Shearer; from the FBI’s San Francisco Field Office, Special Agent Mike P. Stahala; from the FBI’s New York City Field Office, Special Agent Sara H. Wood; and from the U.S. Attorney’s Office of the Eastern District of Washington, Assistant U.S. Attorney Timothy Ohms.
The recipients are recognized for their involvement in Operation Short Fuse (OSF), an innovative online undercover operation operated by the FBI’s Seattle Division and WMD Directorate. OSF employs a highly specialized cadre of online covert employees and confidential human sources to detect, target and disrupt WMD threat actors operating in cyberspace. The operation works to fill a critical detection and intelligence gap by resolving the identity of subjects who have demonstrated the intent and capability to manufacture, distribute or purchase WMD while operating in anonymized, hidden marketplaces and forums devoted to the sale of prohibited items. OSF team members are subject matter experts in WMD investigations and the innovative use of online undercover techniques designed to pierce the veil of anonymity that most OSF subjects attempt to erect through the use of layered complex encryption and crypto-currency. To date, OSF has conducted undercover targeting operations in support of 95 FBI investigations, many of which began as a result of OSF intelligence collection. OSF has been responsible for the disruptions of 18 subjects who attempted to purchase, sell and/or use chemical, biological, radiological, nuclear and explosive materials in the United States and across the globe. These disruptions, often executed in coordination with international partners, undoubtedly prevented a significant loss of innocent life that would have otherwise resulted absent this sustained and extraordinary law enforcement effort.
The 12th Distinguished Service Award is presented to, from the U.S. Attorney’s Office of the Northern District of New York, Assistant U.S. Attorneys Steven D. Clymer, Lisa M. Fletcher and Tamara B. Thomson; from the FBI’s Albany Field Office, Special Agent Frederick E. Bragg; and from the FBI’s Washington Field Office, Special Agent Alix Skelton.
This team receives the award for its exceptional work in the case of US v. Stephen M. Howells II and Nicole Vaisey, which led to the recovery of two young girls who had been abducted, held captive and abused; the identification of four additional children who had been victimized by Howells and Vaisey; and the seizure of recordings and images of the defendants’ sexual abuse of children, as well as a large volume of child pornography depicting the sexual abuse of hundreds of other children, including infants and toddlers. This team’s herculean effort, thorough investigation and analysis, and exemplary advocacy led to the conviction of Howells and Vaisey on all charges and their sentences to 580 and 300 years of imprisonment, respectively, the aggregate statutory maximums.
The 13th Distinguished Service Award is presented to, from the U.S. Attorney’s Office of the District of Colorado, Assistant U.S. Attorneys Bishop Grewell, Suneeta Hazra and Valeria N. Spencer, Financial Analyst Dana L. Chamberlin, Victim/Witness Specialist Donna R. Summers and Supervisory Legal Assistant Valerie J. Nielson; from the FBI’s Denver Field Office, Special Agents Christopher A. Calarco, Jonathan D. Grusing and Patrick A. Kleckner; and from the U.S. Department of the Interior, Rocky Mountain National Park Special Agent Elizabeth A. Shott.
The team in US v. Henthorn is honored for its outstanding, innovative work in the investigation, trial and conviction of Harold Henthorn for pushing his wife to her death from a remote cliff to collect $4.5 million dollars in life insurance. Due to their dedication, painstaking work and powerful trial presentation, the recipients did what many thought was impossible by obtaining a conviction in this difficult and wholly circumstantial case. The team not only proved that Henthorn murdered his second wife but that he had also murdered his first wife some 20 years earlier. Through the course of hundreds of witness interviews, thousands of hours of work, meticulous analysis of computer forensic evidence, cell tower records and bank records, the team decisively proved that Henthorn carefully planned and executed two cold-blooded murders. Furthermore, the team convinced the jury to hold Henthorn accountable and found justice for the victims and their families.
The 14th Distinguished Service Award is presented to, from the U.S. Attorney’s Office of the Central District of California, Assistant U.S. Attorneys Brandon D. Fox, Gregory A. Lesser, Lizabeth A. Rhodes and Ryan D. White; Legal Assistant Georgina Y. Moreno and Paralegal Specialist Adriana Abalos; and from the FBI’s Los Angeles Field Office, Special Agents David N. Dahle, Jason D. Dalton, Carlos A. Narro and Leah M. Tanner.
This team receives the award for the historic prosecution of the former Los Angeles County Sheriff and 17 other law enforcement officers who obstructed a federal investigation and used excessive force against those they were charged with protecting. The recipients convincingly showed that no one is above the law; just as important, they showed that no one is beneath the protections of the law. The team proved through its tireless efforts and perseverance that the department will uphold civil rights for all Americans and that attempts at obstructing federal investigations will be taken seriously.
The 15th Distinguished Service Award is presented to, from the FBI’s Washington Field Office, Cyber Division Supervisory Special Agent Brenda K. Born, Supervisory Special Agent Andrew Patrick Leithead, Special Agents Sean P. Clark, Jenny M. Cutalo-Patterson, Tonya Sturgill Griffith, Alicia M. McShane and Jennifer N. Edwards and Intelligence Analyst Heather L. Gordon Ph.D.; from the U.S. Attorney’s Office of the District of Columbia, Assistant U.S. Attorneys Andrea L. Hertzfeld, Cassidy M. Pinegar, Ari B. Redbord and Lindsay J. Suttenberg and Computer Forensic Examiner John E. Marsh; and from the Washington, D.C., Metropolitan Police Department, Detectives Jonathan K. Andrews Sr. and Timothy R. Palchak.
The Washington Metro Child Exploitation Task Force has played an instrumental role in identifying, disrupting and dismantling the most egregious perpetrators in child exploitation and human trafficking within the greater Washington, D.C., metropolitan area and beyond its area of responsibilities. This team is recognized for its extraordinary dedication, innovative techniques and commitment in identifying and prosecuting these offenders. During 2014 and 2015, the work of the recipients resulted in the rescue of numerous children who were victims of ongoing abuse and exploitation. The task force also assisted in identifying and locating more than 60 victims of sexual abuse and child pornography.
The 16th Distinguished Service Award is presented to, from the National Security Division’s Office of Intelligence, Supervisory Attorney-Advisors Alexandra Doumas, Stephen C. Eglin, Wendy L. Fritz and Kimberly A. Roemer. This team is honored for its exemplary leadership in response to an unprecedented and unrelenting series of terrorist threats against the U.S. homeland. As the supervisors of the National Security Division’s Office of Intelligence Counterterrorism Unit, the awardees worked almost around-the-clock for several months to ensure that the FBI had at its disposal the legal authorities needed to further its investigations, including authorities under the Foreign Intelligence Surveillance Act. The team helped to advance critical counterterrorism investigations which resulted in the thwarting of various plots, and ultimately saving lives.
The 17th Distinguished Service Award is presented to, from the Office of the Inspector General (OIG) Evaluation and Inspections Division, Senior Inspector Kathleen E. Flanagan and Program Analysts Tanique D. Carter and Michael H. Chang.
This team led a comprehensive review of the impact that an aging inmate population has on the Federal Bureau of Prisons (BOP). The elimination of parole, use of mandatory minimum sentences, increases in average sentence length over the past three decades and an increase in white collar offenders and sex offenders, among other things, have contributed to the aging federal inmate population. The recipients were in the field for eight months, interviewing nearly 170 officials and staff from each of the BOP’s eight divisions, as well as 13 institutions. The team conducted site visits of institutions at all security levels, and did extensive document reviews and quantitative analysis spanning a five-year period. Policies applying to various aspects of the care of aging inmates were numerous and scattered among different program areas. To overcome limitations in available data, the team conducted wide-ranging quantitative analyses. The OIG report, issued in May 2015, found that aging inmates are more costly to incarcerate due to increased medical needs, that the physical infrastructure of BOP institutions limits the availability of appropriate housing for aging inmates and that BOP does not provide programming opportunities designed to meet their particular needs. The report also found that aging inmates engage in fewer misconduct incidents while incarcerated and, based on statistical review, appear to have a lower rate of re-arrest once released. Beyond merely identifying these issues, the report provided eight concrete recommendations to address them in order to assist BOP in managing its aging inmate population. After reviewing the report and recommendations, the BOP created formed an interdisciplinary task force to address a number of the recommendations.
The Attorney General’s Award for Exceptional Service in Indian Country recognizes extraordinary efforts by department employees who demonstrate the department’s commitment to fighting crime in Indian Country. This year’s award is presented to, from the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney J. Michael Sheckels; from the Criminal Division’s Appellate Section, Trial Attorney Richard A. Friedman; from the U.S. Attorney’s Office of the Eastern District of Oklahoma, Assistant U.S. Attorney Edward Snow; from the FBI’s Oklahoma City Field Office, Supervisory Special Agent John W. Fitzer and Special Agent Joshua W. Martin; from the Oklahoma State Bureau of Investigation, Special Agent John Jones; and from the Seminole Nation Lighthorse Police, Chief Kent Dowell
On March 3, 2004, David Magnan entered a house on an Indian allotment in rural Seminole County, Oklahoma, and with premeditation shot three Native American occupants to death as they lay in their beds. Originally convicted in state court under the misapprehension of the status of the land where the house was located, that conviction was set aside in 2013 after the 10th Circuit Court of Appeals determined that the Indian title to the land had not been extinguished. Working at great disadvantage given the passage of time, this team worked tirelessly to locate the witnesses and evidence necessary to secure a conviction at trial on all three murder counts, keep a dangerous killer off the streets and obtain justice for the victims’ families.
The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice. Two Awards for Excellence in Law Enforcement are presented this year.
The first award recognizes, from the DEA’s Miami Field Office, Group Supervisor Jarod A. Forget, Special Agents John P. Garcia, Amber M. McKeone and Robert J. Roth and Intelligence Analyst Christine M. Galluccio; from the U.S. Attorney’s Office of the Southern District of Florida, Assistant U.S. Attorney Marton Gyires; from the Fort Lauderdale Police Department, Detective Karin Alvarez; from the city of North Miami Beach Police Department, Sergeant William Beauparlant; from the Davie Police Department, Detective Lisa V. Choquette; from the Coconut Creek Police Department, Detective Angela L. Hofer; from the city of Coral Springs Police Department, Detective Chad L. Kuschel; and from the Miami-Dade Police Department, Detective Robert D. Love.
Operation Driving Dirty dismantled the Consolidated Priority Organization Target linked to transnational drug trafficking organizations, to include the Los Urabeños, at an unprecedented rate. The recipients worked extensively with foreign DEA offices and host country counterparts in China, Hong Kong, Guatemala, Venezuela, Chile, Colombia, Mexico, Spain, Panama, Canada and the Netherlands. The international partnerships were unparalleled as Operation Driving Dirty led to significant worldwide seizures, arrests and prosecutions. As a result of leads provided to the DEA Caracas Country Office, Venezuelan counterparts seized $7 million, deemed one of the largest currency seizures in that country’s history. Additionally, while working with its partners at the U.S. Attorney’s Office, the team conducted a substantial financial investigation into the drug trafficking organization’s money laundering operations, which led to the civil forfeiture of numerous bank accounts. This cooperative effort with the U.S. Attorney’s Office led to the arrest and prosecution of over 50 high-level defendants to include the regional priority organization target, Ronen Nahmani, who was identified as one of the largest synthetic marijuana distributors in the United States. To this end, Operation Driving Dirty led to seizures totaling 6,349 kilograms of cocaine, 28 kilograms of heroin, 15 pounds of methamphetamine, 100 pounds of synthetic marijuana and precursor chemicals, 21 weapons and $30 million.
The second award recognizes, from the FBI’s Weapons of Mass Destruction Directorate, Supervisory Special Agent Scott J. Hopper; from the FBI’s Newark Field Office, Supervisory Special Agent Drew T. Wasson; Special Agents Kate Fila-Stillings, Tara Jerussi and Chetwyn M. Jones, Supervisory Foreign Language Program Coordinator Joseph Brunetto, Computer Scientist Field Operations Alberto Carranza and Forensic Accountant Paul Robert Miccarelli; from the FBI’s Baltimore Field Office, Special Agent Robert W. Keller; from the FBI’s Atlanta Field Office, Special Agent Myles C. McLaughlin; from the FBI’s New York City Field Office, Special Agent Thomas Parisi; from the U.S. Attorney’s Office of the District of New Jersey, Assistant U.S. Attorneys Dennis C. Carletta and Peter W. Gaeta; and from the U.S. Department of Commerce, Special Agent Robert Dugan.
In December 2011, FBI opened a five-year investigation into ABN Universal Inc. Early investigative techniques revealed the U.S.-based owner and operator of ABN was Alexander Brazhnikov. Through an exhaustive use of human sources, video surveillance, forensic reconstruction, grand jury subpoenas, search warrants, Title III surveillance of emails and computer analysis, the investigation revealed that ABN was procuring dual-use microelectronics from U.S.-based manufacturers on behalf of Russian companies directly associated with the Russian military and intelligence services. Moreover, employees of ABN were devaluing the price of exported products to Russia and using front company addresses in Moscow, an offshore virtual private network and an international network of shell companies to conceal the intended end-users from U.S. law enforcement. The investigative team worked diligently to overcome each of these obfuscation techniques to ultimately reveal the totality of Brazhnikov’s criminal offenses. As a result of the investigation, in June 2014, an arrest warrant for Brazhnikov was issued for his illegal smuggling of export controlled U.S.-sourced goods to Russia and for conducting $65 million in money laundering. In June 2015, Brazhnikov pleaded guilty to conspiracy to smuggle goods from the U.S., conspiracy to commit money laundering and conspiracy to violate the International Emergency Economic Powers Act. Brazhnikov also admitted to smuggling microelectronics to Russian defense contractors known to supply the Russian military and intelligence services, to include two Russian nuclear warhead design institutes. As a result of his guilty plea, the District Court of New Jersey issued a money judgment against Brazhnikov for $65 million.
The Attorney General’s Award for Excellence in Management recognizes outstanding administrative or managerial achievements which have significantly improved operations or productivity, or reduced costs. Two Excellence in Management Awards are presented this year.
The first Excellence in Management Award recognizes, from the Civil Division’s Torts Branch-Constitutional and Specialized Tort Litigation Section, Supervisory Legal Administrative Specialist Sherlita R. Tyson, who is honored for her superb management of the Radiation Exposure Compensation Act (RECA) Program’s team of 16 claims examiners and contractors. RECA was enacted by Congress in 1990 to provide a non-adversarial alternative to litigation to compensate individuals who faced increased risk of disease as a result of the United States’ national security interests in the Cold War-era nuclear testing program and uranium ore processing operations. In her position, Ms. Tyson hires, trains and develops program staff, providing them with the structure, guidance and direction necessary for their contributions to the complex RECA claims process. Through daily, hands-on management, as well as close coordination with RECA leadership, Ms. Tyson significantly contributed to the program’s banner success in 2015, with over 2,000 claims adjudicated and $100 million paid to eligible claimants. Fiscal year 2015 also saw two critical achievements attributed to Ms. Tyson’s management skills. In March, RECA surpassed $2 billion in compassionate payments, a testament to the success and integrity of the innovative, streamlined payment system she developed. Ms. Tyson also led a two-year project to close out previously adjudicated claims, and within 13 months, her team cleared out an 11,000-claim backlog. Ms. Tyson’s extraordinary contributions and her ability to motivate and focus her staff demonstrate her pursuit of excellence in managing the RECA program.
The second Excellence in Management Award recognizes, from the Justice Management Division, Library Staff Director Dennis G. Feldt. Feldt is recognized for his sustained innovative leadership of the Library Staff, through which he has modernized the nation’s law library to ensure a cost-effective, customer service-oriented operation that meets the myriad needs of the department’s more than 114,000 employees nationwide. Feldt’s skillful leadership ensures that department employees, including attorneys and law enforcement personnel, can meet the mission of the department on a daily basis. Feldt has proven himself a creative and adaptable leader who has achieved exceptional program results through his modernization efforts by expanding research capabilities through digitization, enhancing training opportunities and enabling mobile and remote access across the country. Through outreach to the department’s components, he has realized cost savings of almost $2 million through subscription consolidation and online resource utilization. Feldt successfully raises awareness of the library services and resources by increasing the innovative training programs for department attorneys and other employees. Because of his forward thinking, his staff successfully taught 72 onsite training classes, conducted 127 legal database and online research demonstrations, conducted 11 remote legal research training sessions and provided 41 one-on-one customized training sessions throughout the year benefitting more than 2,000 department attorneys and paralegals. During this same timeframe and under his leadership, his staff successfully responded to over 50,000 general and legal reference, project-based and research requests, ensuring that department customers continued to benefit from “one-stop” comprehensive electronic and mobile legal research tools. Feldt directs and provides valuable and unique research services to include expert witness, corporate and people and public records research. He is held in high regard as a leader, supervisor and service provider to the department, and he remains vigilant of opportunities to innovate and to enhance the department’s research and training capabilities.
The Attorney General’s Award for Excellence in Information Technology recognizes outstanding achievements in applying information technology to improve operations and productivity, reduce or avoid costs, and solve problems. This year’s award is presented to, from the Justice Management Division’s Cybersecurity Services Staff, Deputy Assistant Attorney General and Chief Information Officer Joseph F. Klimavicz, Deputy Chief Information Officer Kevin T. Deeley, Chief Information Security Officer Melinda Rogers, Assistant Directors Brian M. Depasse, Ryan A. Higgins and Nickolous B. Ward, Supervisory IT Specialist Kevin S. Cox, IT Specialists Nickole M. Arbuckle, Peter W. Crichlow, David C. Denis, Jeremy B. Greenland, John Miles, Scott K. Morrison, Josephine A. Peters, Larry T. Tun, Brian R. Varine and Kevin H. Yasuda.
Over the last year, the department’s cybersecurity team has made significant enhancements to address the rapidly-changing cyber threat landscape, as the department’s mission makes it a high-value target for adversaries attacking U.S. national security assets. This team implemented and continues to manage solutions which thwart adversaries’ attempts to breach the department’s network, gain access to sensitive information and critically harm national security. These solutions provide the department with the ability to detect and mitigate advanced persistent threats, monitor malicious encrypted internet traffic, prevent data loss by encrypting personally identifiable information. This fiscal year, the team’s enhancements stopped 55,000 malicious e-mails and 900 malicious web sessions. Also as a result, fewer cyber incidents occur, fewer remediation efforts are required and the department realized $8 million in cost avoidance. In addition, the team developed robust internal applications, Security Posture Dashboard Reporting and the Cyber Security Assessment and Management system to continuously monitor and analyze department-wide cybersecurity posture and Federal Information Security Management Act compliance. These applications allow for the transparent measurement, comparison and analysis of each component’s security environment. Without the efforts of this team, the department could see a large-scale cybersecurity incident, resulting in incalculable damage to the department’s personnel, information and mission.
The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security recognizes outstanding achievements and contributions in protecting U.S. national security. Two Excellence in Furthering the Interests of U.S. National Security Awards are presented this year.
The first Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security is presented to members of the U.S. delegation in the unprecedented multi-year negotiation and conclusion of a complex agreement with the European Union (EU) on the protection of the privacy of personal information transferred internationally in law enforcement matters. Additionally, the recipients engaged in an equally unprecedented process of drafting and enactment of legislation that implemented the above-described agreement, which extended key aspects of the Privacy Act to EU citizens.
The award is presented to, from the Criminal Division’s Office of the Assistant Attorney General, Deputy Assistant Attorney General and DOJ Counselor for International Affairs Bruce C. Swartz; from the Criminal Division’s Office of International Affairs, Acting Deputy Director Kenneth J. Harris, Associate Director Thomas Burrows, Department of Justice Representative to the European Union Michael C. Olmsted and Senior Counsel to the European Union Stewart C. Robinson; from the Office of the Deputy Attorney General, Chief Privacy and Civil Liberties Officer Erika Brown Lee; from the Antitrust Division’s Office of the Chief Legal Advisor, Deputy Chief Legal Advisor Belinda A. Barnett; from the Civil Division’s Federal Programs Branch, Deputy Director Elizabeth J. Shapiro; from the DEA’s Office of the General Counsel, Attorney Chad T. Sarchio; from the FBI’s National Security Law Branch, Assistant General Counsel Seth M. Oppenheim; from the FBI’s Office of General Counsel, General Attorney Monica E. Ryan; and from the National Security Division’s Office of Law and Policy, Attorney-Advisor Jocelyn A. Aqua.
The second Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security is presented to, from the U.S. Attorney’s Office of the Eastern District of Virginia, Assistant U.S. Attorneys Michael R. Gill and James P. Gillis and Paralegal Specialist Tonya L. Dandridge; from the FBI’s Baltimore Field Office, Supervisory Special Agent Ronald P. Comers; from the FBI’s Washington Field Office, Special Agents Marlo D. Arredondo, Michael A. Burgwald and Eric E. Glassie; from the FBI’s Legal Attaché in London, Supervisory Special Agent John David Kuchta; from the FBI’s Office of General Counsel, General Attorney Lubaina B. Qaiyumi; from the National Security Division’s Counterterrorism Section, Trial Attorney Jennifer E. Levy and Legal Administrative Specialist Katarina A. Porter; from from the U.S. Department of Defense (DoD) Defense Criminal Investigative Service, Special Agent Alan M. Ferrell; and from the DoD Office of the General Counsel, Counsel Brent C. Harvey.
US v. Irek Ilgiz Hamidullin was a first-of-its-kind, Article III prosecution of a foreign terrorist who was captured in November 2009 by the U.S. military on a battlefield in Afghanistan. The investigation and prosecution lasted five years from capture to conviction, and the case required a massive interagency team of attorneys, law enforcement agents and support staff to work together, effectively navigating complex and unique challenges in a sensitive national security matter. Hamidullin was convicted by a federal jury of all 15 indicted counts, which included charges of providing material support to terrorists, attempted murder of U.S. military personnel, conspiracy to use a weapon of mass destruction and possession of a firearm in connection with a crime of violence. In December 2015, Hamidullin was sentenced to serve life plus 30 years in prison.
The Attorney General’s Award for Equal Employment Opportunity (EEO) is the department’s highest award for performance in support of the EEO program. This year’s award is presented to the Diversity and Inclusion Dialogue Program (DIDP) project team for the outstanding leadership of its members in growing and sustaining this unique diversity initiative in the department. The DIDP provides a safe, open, structured and confidential environment for employees to openly and honestly explore a full spectrum of diversity and inclusion topics and ways in which these aspects of diversity affect our ability to work more effectively together and foster a more inclusive work environment. Using facilitated dialogue on a range of topics over a six-month period, expertly led by trained members of the project team, employees learned skills to address, rather than avoid, difficult diversity topics. They also developed depth in their relational and teamwork skills, while extending their network in the department. Following a successful pilot year, the DIDP project team undertook the challenge of building the program. With strong support from their component leadership and diversity groups, the project team recruited participants within and across components; used their EEO and diversity expertise to tailor the DIDP materials to the department’s needs; and continued to build the facilitator cadre using in-house resources. Evaluations by program participants uniformly contained high praise for the program structure and leadership. The DIDP is an effective vehicle to develop the respect, understanding and open communication of the department’s employees, and the DIDP project team is a model of the multi-component cooperation that is essential for the sustainable implementation of such a vital and critical program.
The recipients include, from the Office of the Associate Attorney General, Deputy Associate Attorney General for Diversity Management Richard L. Parker; from the Antitrust Division, Litigation II Section Section Chief Maribeth Petrizzi, Foreign Commerce Section Trial Attorney Melanie Krebs-Pilotti and Transportation, Energy and Agriculture Section Trial Attorney Jade A. Eaton; from the Federal Bureau of Prisons’ Office of Conflict Resolution, EEO and Diversity, Supervisory Attorney-Advisor Carolyn Vines Sapla; from the Environment and Natural Resources Division, Deputy Assistant Attorney General Jean E. Williams and Senior Counsel for Indian Affairs Gina L. Allery; from the Office of the General Counsel, Supervisory Attorney Rico M. Sogocio; from the Executive Office for Immigration Review, Diversity Coordinator Kimberly R. Wilkins; from the Tax Division’s Civil Trial Section, Southern, Trial Attorney Steven C. Woodliff; from the Tax Division’s Civil Trial Section, Eastern, Supervisory Trial Attorney Robert D. Metcalfe; from the Tax Division’s Civil Trial Section, Western, Supervisory Litigation Assistant Daffney T. Archer; from the Tax Division’s Office of Management and Administration, Program Analyst Elizabeth D. Preston; and from the Tax Division’s Office of Review, Section Chief Ann C. Reid.
The Attorney General’s Award for Excellence in Legal Support recognizes outstanding achievements in the field of legal support to attorneys by paralegal specialists and other legal assistants.
In the Paralegal Category, the first Award for Excellence in Legal Support is presented to Paralegal Laura E. Griffin of the U.S. Attorney’s Office for the Southern District of Ohio. Griffin has been an indispensable member of the Southern District of Ohio’s Appellate Division for more than seven years. She plays a vital role in implementing a system of formal moot courts for every oral argument conducted by Assistant U.S. Attorneys and is in the development of a training program for support staff on appellate rules and procedures. Griffin also assisted in the creation and development of an extensive intranet site for the Appellate Division which was praised by Evaluation and Review Staff evaluators as a model for U.S. Attorney’s Offices throughout the country. Her hard work, enthusiasm and innovation have served to guide the Appellate Division from its infancy into one of the most respected Appellate Divisions in the country, universally praised by evaluators, the judges of the Sixth Circuit and her peers. Griffin’s work exemplifies the kind of excellence, dedication and professionalism worthy of recognition.
Also in the Paralegal Category, the second Award for Excellence in Legal Support is presented to Paralegal Specialists Glori J. Gibford of the Office of the U.S. Trustee – Region 18, C. Marie Goodier of the Office of the U.S. Trustee – Region Six, Catherine J. Henderson of the Office of the U.S. Trustee – Region 10 and Erik Van Bramer of the Office of the U.S. Trustee – Region Nine. This team’s outstanding work and exemplary commitment to the U.S. Trustee Program’s (USTP) National Creditor Enforcement Initiative were critical in the USTP’s $81.6 million settlement with Wells Fargo Bank N.A., announced in November 2015. Under the settlement, Wells Fargo acknowledged that it failed to timely file more than 100,000 payment change notices and failed to timely perform more than 18,000 escrow analyses in cases involving approximately 68,000 accounts of homeowners in bankruptcy between Dec. 1, 2011, and March 31, 2015. While continuing to carry out their core civil enforcement work in their local offices, the recipients assumed these significant additional responsibilities with great enthusiasm and demonstrated a strong sense of dedication, expertise and zeal that has helped so many distressed homeowners.
In the Legal Support Category, this year’s Award for Excellence in Legal Support is presented to Legal Secretary Linda C. Britt of the Civil Division’s Appellate Staff. Ms. Britt’s work has uniformly been of the highest caliber in her more than 30 years with Civil Division’s Appellate Staff. Day after day, she masterfully assists the attorneys with their briefs and memoranda, often under extraordinary time pressure, helping to yield end products that are thoroughly professional. In all of her work, Ms. Britt invariably goes above and beyond the call of duty to ensure success of the office’s mission, which has been especially crucial in recent periods of a short-handed administrative staff. She has seamlessly taken on the added responsibilities of being the administrative assistant to the director of the Appellate Staff, and always seeks out new ways to be of assistance to others in the office. Going beyond the excellent work that she performs on a daily basis, Ms. Britt has the unique quality of inspiring others to emulate her hard-working attitude and uplifting presence.
The Attorney General’s Award for Excellence in Administrative Support recognizes outstanding performance in administrative or managerial support by an administrative employee or secretary.
In the Administrative Category, this year’s Award for Excellence in Administrative Support is presented to Administrative Services Specialist Antonio M. Griego of the U.S. Attorney’s Office for the District of New Mexico. Griego constantly reads, researches, interprets and enforces the changing rules and regulations, delegated authorities and guidelines that apply to all aspects of acquisition management and internal controls. Acquisition and procurement personnel at the EOUSA and the Justice Management Division regularly consult with Griego for his technical interpretation, knowledge and application skills, and regularly select him as a primary instructor for acquisition and procurement conferences and training seminars. In addition to his voluntary participation in the Contracting Officer Mentor Program, Griego regularly assists contracting officers and contract staff from numerous other U.S. Attorneys’ Offices. Griego’s dedication and initiative have enhanced the contracting capacities of the District of New Mexico, EOUSA and the department as a whole, and exemplify government at its best.
In the Secretarial Category, this year’s Award for Excellence in Administrative Support is presented to Management and Program Assistant Sandra L. Blanchard of the FBI’s Criminal Justice Information Services Division. Blanchard frequently demonstrates an analytical ability above that of her required job functions. As a special project, she led the National Data Exchange (N-DEx) batch query testing efforts on behalf of the division. In this role, Blanchard was responsible for reviewing hundreds of results and using her professional judgment to make decisions. Moreover, she determined what information added value to the Facial Analysis Comparison and Evaluation Services Unit operations. At the end of the testing period, she provided recommendations for using this type of query in the normal course of business that considered future N-DEx builds that would likely yield more results. Furthermore, her recommendations were communicated with the N-DEx program, resulting in a clearer understanding of the unit’s requirements. Throughout this project, Blanchard exhibited substantial knowledge of program principles, concepts and objectives. Additionally, she identified and took the initiative to implement an efficient method to produce complete and accurate case identification number lists that corresponded to the FBI’s Top 10 Priority List, and she ensured the document was available a resource to others. Blanchard also coordinated with IT support personnel to ensure the information was regularly updated on the work log. This increased the overall effectiveness of operations and allowed for more accurate reporting and case prioritization.
The Claudia J. Flynn Award for Professional Responsibility recognizes a department attorney who has made significant contributions in the area of professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that department attorneys carry out their duties in accordance with the rules of professional conduct. This year’s award is presented to, from the Office of the Deputy Attorney General, Associate Deputy Attorney General Andrew D. Goldsmith and from the U.S. Attorney’s Office of the District of New Jersey, Counsel to the U.S. Attorney John M. Fietkiewicz. Goldsmith and Fietkiewicz are recognized for their sustained, outstanding leadership and invaluable contributions to ensure that department prosecutors carry out their duties in compliance with the highest ethical standards. With superior dedication and effort, they have gone to extraordinary lengths to advise and train innumerable department prosecutors, providing the tools and resources necessary to perform their work in the most ethical and professional way possible. With their considerable experience and exceptional judgment, they are leading the department in successfully addressing the overlap between the legal and ethical duty of disclosure, one of the most important professional responsibility issues facing federal prosecutors in decades. Their unfailing commitment to upholding and inspiring others to the highest standards of professionalism has been a model to their peers within and outside the department. Both awardees worked closely with Claudia Flynn during her service at the department, and they embody the integrity, professionalism and strength of character that marked Flynn’s life and work.
The Attorney General’s Award for Outstanding Service in Freedom of Information Act Administration recognizes exceptional dedication and effort to the implementation of the Freedom of Information Act (FOIA). President Obama’s Open Government Directive and the Attorney General’s FOIA Guidelines prioritize the need for the government to incorporate information technology into FOIA processing when responding to requests for information. This year’s award is presented to Government Information Specialist Margaret A. Woods of the USMS Office of General Counsel. In her position, Woods is often assigned the more complex and voluminous FOIA requests while still serving as a reviewer and mentor for less senior specialists. She typically processes more than 150 requests over the course of the year. Recently, Woods was assigned a very high-profile and large-scale FOIA media request seeking information regarding use of government funds for commemorative and recognition items within both USMS headquarters and each of its 94 districts. Because of the breadth of the possible records and the effort required to capture all responsive information, Woods spent hundreds of hours in conversation with USMS district and division personnel conducting the searches and explaining the type of information to be included in responses. In addition, the request required coordination and consultation with other department components. Following her review of over 15,000 pages of documents, Woods created a custom spreadsheet in order to display the responsive information in a form which the requester could clearly understand. Additionally, she oversaw the process of compiling the information and ensuring its accuracy, and she coordinated the response package with the department’s Office of Information Policy, which monitored and coordinated the request. Finally, Woods prepared the material for disclosure to the requester with an explanation of any possible discrepancies.
The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption. This year’s award is presented to, from the Criminal Division’s Fraud Section, Deputy Chief Gejaa T. Gobena and Assistant Chief Catherine Kuo Dick; from the Civil Division’s Commercial Litigation Branch – Fraud Section, Trial Attorney Joan E. Hartman; from the U.S. Attorney’s Office of the Eastern District of Michigan, Assistant U.S. Attorneys Linda Aouate, Sarah Resnick Cohen, John K. Neal and Wayne F. Pratt and Victim-Witness Coordinator Sandy Palazzolo; from the FBI’s Detroit Field Office, Special Agents Bryan Drake, William Brian Fairweather and Kevin J. Swanson and Forensic Accountant LaFell D. Peoples; from the U.S. Department of Health and Human Services Office of Inspector General, Special Agents Abhijit Dixit and Michael Fairbanks; and from the U.S. Department of the Treasury Internal Revenue Service, Special Agent Kevin Nalu.
This team secured the conviction and 45-year sentence of Farid Fata, an oncologist who deliberately misdiagnosed patients with a variety of conditions so that he could fraudulently bill Medicare and private insurers for millions of dollars’ worth of unnecessary infusions, injections and other cancer testing and treatments. Acting on a tip, the recipients investigated and corroborated the health care fraud allegations, arresting Fata and shutting down his six Detroit-area practice locations. At the time of his arrest, Fata had over 1,700 active patients and over 16,000 historical patients. After his arrest, agents, prosecutors and staff worked around the clock to ensure that all of the patients, past and present, received their medical files and were routed to major medical centers for continued care. Over the course of the investigation, the team was able to prove that Fata had victimized more than 550 patients. In September 2014, Fata pleaded guilty to 13 counts of health care fraud charges, one count of health care kickback conspiracy and money laundering. In pleading guilty, Fata admitted to administering unnecessary chemotherapy infusions, iron infusions and human growth factors to patients; ordering unnecessary cancer tests; accepting kickbacks to refer patients for home health care services; and laundering money from his infusion fraud scheme to promote a new cancer testing fraud scheme.
The Attorney General’s Award for Outstanding Contributions to Community Partnerships for Public Safety recognizes outstanding achievement in the development and support of community partnerships designed to address public safety within a community. This year’s award is presented to, from the U.S. Attorney’s Office of the Northern District of Ohio, Assistant U.S. Attorney Joseph M. Pinjuh, Law Enforcement Coordinator Craig A. Tame and Community Affairs Specialist Michael P. Tobin; from the DEA’s Cleveland Resident Office, Resident Agent in Charge Keith W. Martin; from the FBI’s Cleveland Field Office, Supervisory Special Agent Todd D. DeKatch; from the Cleveland Clinic, Addiction Psychiatrist Jason M. Jerry MD; from the MetroHealth Medical Center, Emergency Room Physician Joan Papp MD; from the Cuyahoga County Medical Examiner’s Office, Medical Examiner Thomas P. Gilson MD and Administrator Hugh B. Shannon; from the Cuyahoga County Board of Health, Supervisor Vincent P. Caraffi; from the Cuyahoga County Court of Common Pleas, Judges David T. Matia and Joan C. Synenberg; from the Cleveland Division of Police, Commander Gary K. Gingell; from the Cuyahoga County Sheriff’s Department, Special Assistant Philip M. Angelo; and from the Recovery Resources Associate Board, Board Chair Aaron D. Marks.
The recipients are recognized for their involvement in the Northern Ohio Heroin and Opioid Task Force, which has developed and implemented a community action plan to combat a healthcare and law enforcement crisis. Heroin overdose deaths increased in Cuyahoga County, Ohio’s largest county, by more than 400 percent between 2007 and 2015, with nearly 200 people fatally overdosing last year. Convened by the U.S. Attorney’s Office, the task force, comprised of prosecutors, doctors, investigators, educators, addiction specialists and community members, engaged in a groundbreaking collaboration that cuts through traditional boundaries. By dealing with the heroin and opioid epidemic simultaneously through the prisms of law enforcement, treatment, healthcare policy and education, this group is challenging the idea that each discipline must work in its own silo. Their Smart on Crime approach is literally saving lives throughout the community.
The Cubby Dorsey Award for Outstanding Contributions by a Wage Grade System Employee recognizes extraordinary performance and contributions by wage grade system employees, including laborers, mechanics and skilled craft workers. This year’s award is presented to Benjamin Scott Taylor, a Pipefitter Supervisor from BOP’s Federal Correctional Institution – Manchester, Kentucky (FCI Manchester). Taylor is recognized for his dedication to improving the utility systems and equipment at FCI Manchester. He was the lead foreman in the retrofitting of an “on demand” water heating system for the institution's centralized laundry operation. Due to an antiquated steam system which could not supply the required heating water, Taylor researched and received approval to install a state-of-the-art heating system. All phases of the project were planned, organized and installed under his supervision. Additionally, his commitment to reducing leaks in the institution resulted in an astonishing 12.9 percent reduction in potable water in 2015, and a water usage cost savings of over $30,300. Finally, Taylor displays a genuine commitment to reentry by participating in professional development and leadership programs for inmates. He provides expert trade-skill enhancement to the inmates under his supervision, and instills professional growth and work patterns that will better prepare the FCI Manchester inmates to return to their communities and the work force.
The John Marshall Awards are the department’s highest awards offered to attorneys for contributions and excellence in specialized areas of legal performance. Ten awards in seven categories are presented this year.
The first John Marshall Award for Trial of Litigation is presented to, from the Antitrust Division’s Litigation III Section, Assistant Section Chiefs Ethan C. Glass and Lisa A. Scanlon; and Trial Attorneys Steven B. Kramer, Kelsey W. Shannon and Jeffrey G. Vernon. The Antitrust Division’s high-profile victory at trial blocking General Electric’s (GE) attempt to sell its appliances business to Electrolux represents one of the most significant merger trial victories the division has achieved in decades, and has directly helped tens of millions of U.S. consumers who purchase appliances each year. On July 1, 2015, the United States brought suit in the U.S. District Court for the District of Columbia against GE and Electrolux, alleging that their proposed merger would raise appliance prices. In November 2015, trial began in before U.S. District Judge Emmet G. Sullivan of the District of Columbia. During a five-week, highly publicized trial, the trial team made its case largely through the documents and adverse testimony of GE and Electrolux, uncooperative competitors and economic analysis, demonstrating that the merger would have a significant effect on the prices of ranges, cooktops and wall ovens. One day before trial was to conclude, GE abandoned the proposed merger and as a result, U.S. consumers will be able to save hundreds of millions of dollars.
The second John Marshall Award for Trial of Litigation is presented to the team responsible for the prosecution and conviction of Jeffrey Sterling. As a result of their tireless efforts over the course of several years, Sterling was found guilty of unauthorized disclosures of classified information vital to national security in the first Espionage Act trial of its kind in decades. The successful outcome was the result of over four years of complex pre-trial litigation involving classified information, covert witnesses, First Amendment issues and media subpoenas. At trial, the prosecutors proved that Sterling, a former CIA officer, disclosed to a journalist the details of an extremely sensitive, valuable and classified clandestine operation designed to undermine the Iranian nuclear weapons program. Sterling’s crime not only undermined a valuable tool to attack Iran’s nuclear program, but also endangered the lives of an important human asset and his family. The defendant’s unlawful disclosures put lives at risk and constituted an egregious breach of the public trust. Sterling was sentenced to 42 months in prison. This case demonstrates the perseverance, tenacity and commitment of the prosecution team in overcoming formidable challenges in bringing this uniquely complex case to trial in the interests of justice and national security. Award recipients include, from the Criminal Division’s Public Integrity Section, Deputy Chief Eric G. Olshan; and from the U.S. Attorney’s Office of the Eastern District of Virginia, Assistant U.S. Attorney Dennis M. Fitzpatrick and Senior Litigation Counsel James L. Trump.
The first John Marshall Award for Participation in Litigation is presented to, from the Civil Rights Division, Office of the Assistant Attorney General Senior Counsel Regina Kline, Acting Chief of the Policy and Strategy Section Sheila M. Foran, Disability Rights Section Trial Attorneys Nicholas C. Lee and H. Justin Park and Housing and Civil Enforcement Section Trial Attorney Max P. Lapertosa; and from the U.S. Attorney’s Office of the District of Oregon, Assistant U.S. Attorney Adrian L. Brown. This team is honored for its extraordinary work in securing – alongside private plaintiffs – the landmark settlement agreement remedying systemic discrimination in Oregon’s employment service system for people with intellectual and developmental disabilities (I/DD). Through the team’s outstanding oral and written advocacy, a groundbreaking settlement was achieved in Lane v. Brown, the nation’s first class-action lawsuit to challenge a state funded and administered employment service system, relying primarily on sheltered workshops, as a violation of the Americans with Disabilities Act’s (ADA) integration mandate. Throughout the more than three-year litigation, the team demonstrated exemplary dedication, as well as outstanding advocacy and strategy, that successfully positioned the department and private plaintiffs to obtain a comprehensive settlement agreement providing relief to approximately 7,000 people with I/DD. These individuals include 1,115 adults with I/DD, who have been relegated for far too long in segregated sheltered workshops when they were able and wanted to work in real jobs in the community, and roughly 4,900 youth with I/DD who will now receive employment services to choose, prepare for, get and keep jobs in a typical setting. The team’s accomplishment serves as a model for integrated employment of persons with disabilities nationwide.
The second John Marshall Award for Participation in Litigation recognizes Assistant U.S. Attorneys Lara K. Eshkenazi and Jeffrey K. Powell of the U.S. Attorney’s Office for the Southern District of New York. As a result of the extraordinary work of the recipients, New York City’s jail system is now subject to sweeping court-ordered reforms to counter the pervasive culture of violence that has plagued it for decades and has inflicted tremendous harm on inmates and correction officers alike. After its rigorous investigation into the treatment of adolescent inmates on Rikers Island, the team drafted a scathing 79-page report that concluded that male inmates between the ages of 16 and 18 were subject to rampant use of unnecessary and excessive force by correction staff, were not being adequately protected from violence inflicted by other inmates, and were being placed in punitive segregation for weeks or months at a time at an alarming rate. To force desperately needed reforms, the Southern District of New York intervened in an ongoing class action alleging a system-wide pattern and practice of excessive force. The recipients led the parties through many months of difficult negotiations which resulted in a groundbreaking consent decree requiring comprehensive and innovative reform designed to end the unconstitutional violence on Rikers Island. The consent decree also prohibits the use of punitive segregation for inmates under the age of 18. In approving the settlement, the district court judge described the agreement as “the product of unprecedented analysis, investigation, collaboration, commitment to the protection of rights and vision for systemic reform,” and noted that it “provides an important example for other correctional systems throughout the country.”
The first John Marshall Award for Support of Litigation is presented to Assistant Director Reginald T. Blades Jr. and Assistant Director L. Misha Preheim of the Civil Division’s Commercial Litigation Branch – National Courts Section for their outstanding and successful resolution of over 3,000 claims for back pay for certain cost of living adjustments withheld by Congress brought by Article III and non-Article III judges and their beneficiaries. The creative and innovative web-based claims process developed and implemented by the recipients has contributed greatly to the department’s fair, just and efficient resolution of complex and unwieldy putative class action claims brought against the United States in 15 different lawsuits filed in the U.S. Court of Federal Claims.
The second John Marshall Award for Support of Litigation recognizes the Environment and Natural Resources Division’s Pacific Salmon Team for its tireless and outstanding provision of litigation support in multiple cases involving salmon in the Pacific Northwest. Salmon are iconic to the Pacific Northwest and litigation over this important natural resource abounds. The recipients are responsible for representing several federal agencies in many pieces of complex litigation in federal district courts throughout the region. In this role, the team provides all aspects of legal assistance including counsel to eight federal agencies; legal review of agency actions in advance of litigation; marshalling expert witness resources and testimony; researching and drafting extensive legal briefs; coordinating positions among the various federal agencies; and representing the agencies in the courtroom. The cases are complex, controversial and often high-profile. Due to its work, the team has secured litigation outcomes allowing critical hydroelectric and navigation projects to move forward while protecting the needs of salmon. Their efforts have also resulted in significant improvement of federal and tribal relations. The awardees are, from the Environment and Natural Resources Division’s Wildlife and Marine Resources Section, Senior Trial Attorneys Michael R. Eitel and Carter H. Howell and Trial Attorney Andrea E. Gelatt; and from the Environment and Natural Resources Division’s Natural Resources Section, Senior Trial Attorneys Romney S. Philpott III and Kristofor R. Swanson.
The John Marshall Award for Handling of Appeals is presented to Trial Attorney Arthur T. Catterall of the Tax Division’s Appellate Section. Catterall is recognized for his exceptional work as an appellate advocate in tackling some of the most difficult civil tax cases to come before the Courts of Appeals in recent years, including tax shelter cases combining complex factual patterns with thorny issues of statutory interpretation. His collaborative work with trial and agency counsel, and his clear and eloquent arguments on behalf of the federal government, have exposed the fallacies at the heart of various abusive tax shelters and have contributed to the government’s victory in the SCOTUS case US v. Gary Woods, allowing for the imposition of accuracy-related penalties in transactions lacking economic substance. His work has saved and will continue to save the government hundreds of millions of dollars in tax revenue, and has contributed to the development of the law in a manner that enhances the integrity and fairness of the federal tax system.
The John Marshall Award for Providing Legal Advice is presented to the team responsible for in reviewing executive orders and attorney general orders for form and legality. Together, the recipients ensure that the orders are lawful and presented in proper form. They perform this daunting and critical task with supreme skill, integrity and care, and frequently on an extremely short timeline. Moreover, the team’s behind-the-scenes work is critical to the integrity and success of every order the President of the United States or Attorney General signs. The recipients are, from the Office of Legal Counsel, Special Counsel Rosemary A. Hart, Senior Counsel Matthew D. Roberts and Attorney-Advisers Martine E. Cicconi, Kirti Datla, Nathan A. Forrester, Laura E. Heim, KelleyBrooke Hostetler, Jane E. Nitze, Annie L. Owens, Mitchell Reich and Jonathan D. Shaub.
This year’s John Marshall Award for Asset Forfeiture is presented to, from the Criminal Division’s Asset Forfeiture and Money Laundering Section, Deputy Chief Woo S. Lee and Trial Attorney Della Sentilles; from the Criminal Division’s Office of International Affairs, Trial Attorneys Frances Chang and Michael J. Surgalla Jr.; from the U.S. Attorney’s Office of the Eastern District of Pennsylvania, Assistant U.S. Attorneys Joseph F. Minni and J. Alvin Stout III; and from the U.S. Attorney’s Office Central District of California, Assistant U.S. Attorneys Katharine Schonbachler and Steven R. Welk.
This team is honored for its contributions to the Kleptocracy Asset Recovery Initiative through its civil forfeiture of bribe proceeds paid to the former President of the Republic of Korea, Chun Doo Hwan. After seizing power in 1979, Chun went on to earn a salary of approximately $20,000 per year from 1980 through 1988. When he was ultimately convicted of corruption crimes by South Korea in 1997, the trial court established that Chun had received more than $200 million in bribes during his presidency and ordered him to pay restitution in that amount. Stymied in their efforts to collect on Chun’s restitution order, in 2013, Korean prosecutors turned to the department for assistance. Undaunted by the age of the evidence, the team pieced together financial and testimonial evidence sufficient to show that a portion of Chun’s bribe proceeds were paid through intermediaries, transferred out of Korea in the names of shell corporations and ultimately invested into various properties in the United States. On Nov. 9, 2015, Attorney General Lynch celebrated the successful conclusion of this case by presenting the Korean Minister of Justice with an embossed copy of a forfeiture order and congratulating South Korea on having recovered more than $28.7 million as a result of the team’s efforts.
This year’s John Marshall Award for Alternative Dispute Resolution is presented to the Crow Tribe Water Rights Settlement Team for the negotiation, defense and implementation of a settlement between the state of Montana, the Crow Nation and the United States that confirms the federal water rights of the Crow Nation arising from its 1868 treaty. The settlement, a decades-long effort, brings much-needed water, infrastructure and economic development to the Crow Reservation in Montana and allows the tribe to thrive on its reservation. The awardees are recognized for their creative and exemplary work in developing, negotiating and implementing a settlement approved by the Montana Legislature and subsequently ratified and altered by Congress. The team then defended the settlement in state and federal courts. Their work began with the negotiation of an agreement in the late 1990s, resolving contentious water rights issues as well as mineral severance taxation issues heard by SCOTUS. The team’s successful completion of this extraordinary process makes clean drinking water, improved irrigation facilities and economic development opportunities available on the Crow Indian Reservation and confirms promises made to the Crow Nation in 1868.
The awardees are, from the Environment and Natural Resources Division’s Indian Resources Section, Section Chief S. Craig Alexander, Assistant Section Chief David W. Harder and Trial Attorney J. Nathanael Watson; from the division’s Law and Policy Section, Attorney-Advisor Stacy R. Stoller; from the division’s Natural Resources Section, Trial Attorney Tyler G. Bair; and from the division’s Appellate Section Trial Attorney John L. Smeltzer.
The Attorney General’s Award for Outstanding Contributions by a New Employee recognizes exceptional performance and notable accomplishments towards the department’s mission by an employee with fewer than five years of federal career service.
The first Outstanding Contributions by a New Employee Award is presented to Criminal Division Appellate Section Attorney Ross B. Goldman. Goldman has proven himself to be an extraordinary and productive appellate advocate, who masterfully handles complex, large-record appeals. Although his cases have run the gamut from street crime to securities fraud, Goldman has brought his sophisticated analysis to two areas that bedevil the courts and prosecutors; insider trading, where he drafted a SCOTUS merits brief and a certiorari petition, and extraterritoriality, where, in one case, he defended the murder conviction of a Colombian national who murdered a DEA agent in Bogota and, in a second case, assisted the Solicitor General in formulating arguments on the Racketeer Influenced and Corrupt Organizations (RICO) Act’s extraterritorial reach. He not only volunteers to take on extra work within the division, but he also seized the opportunity to review commutation applications filed by convicted drug traffickers because he believes so strongly in the Obama Administration’s initiative to provide relief to nonviolent offenders who have already served significant prison terms. Finally, Goldman serves on the division’s Diversity Committee and mentors a minority law student. He understands the department’s mission writ large and he gives his best at all times.
The second Outstanding Contributions by a New Employee Award is presented to Special Agent Adebowale Babarinde Alade of the FBI’s San Antonio Field Office. Alade was the lead investigator on a 32-month complex criminal investigation targeting the Almighty Latin King Nation (ALKN), a violent transnational criminal enterprise operating in Texas with connections across the United States and overseas. With less than one year in the FBI, and still serving as a probationary agent, Alade demonstrated exceptional initiative by carefully exploiting human source information in early 2013, resulting in the identification of a key leader of the ALKN with control over operations in Texas. He determined that the ALKN was importing and distributing large quantities of narcotics from Mexico-based cartels, and was also involved in weapons trafficking with access to military-grade weapons and grenades. After obtaining Organized Crime Drug Enforcement Task Forces designation, Alade relentlessly pursued ALKN’s illicit activities, ultimately targeting its command and control structure through the use of sophisticated techniques involving the interception of communications through Title III court orders. During 2014, Alade exploited intelligence derived from ALKN communications and human sources, and developed a cohesive interagency team by sharing information with law enforcement partners, resulting in a collaborative effort to target the ALKN. In October 2015, his work resulted in the indictment of 48 members of the ALKN, including its entire leadership structure in Texas, on RICO Act and drug conspiracy charges, as well as state drug violations. Alade subsequently led the multiagency enforcement operation that disrupted the ALKN, resulting in the seizure of narcotics and firearms, thousands of rounds of ammunition, cash, body armor, extensive digital devices and a wide array of ALKN paraphernalia. In conducting this investigation, Alade directly supported the department’s mission by ensuring public safety against domestic and foreign threats, as well as providing leadership in preventing and controlling crime.
Assistant United States Attorney for Oregon Receives Prestigious John Marshall AwardRead the Press Release
WASHINGTON – On Thursday, November 10, 2016, Attorney General Loretta E. Lynch presented Adrian Brown, Assistant United States Attorney for the District of Oregon, with the prestigious John Marshall Award for Participation in Litigation.
The John Marshall Awards are the Justice Department’s highest awards offered to attorneys for contributions and excellence in specialized areas of legal performance. Assistant U.S. Attorney Brown was recognized along with ten other 2016 John Marshall Award recipients at the 64th Annual Attorney General Awards ceremony hosted by Attorney General Lynch.
Brown and five other colleagues were recognized for their extraordinary work in securing, alongside private plaintiffs, a landmark settlement agreement remedying systematic discrimination in Oregon’s employment service system for people with intellectual and developmental disabilities (I/DD). Through the team’s outstanding oral and written advocacy, a groundbreaking settlement was secured in Lane v. Brown, the nation’s first class-action lawsuit to challenge a state funded and administered employment service system, relying primarily on sheltered workshops, as a violation of the Americans with Disabilities Act (ADA) integration mandate.
Throughout the more than three-year litigation, the team successfully positioned the department and private plaintiffs to obtain a comprehensive settlement agreement providing relief to approximately 7,000 people with I/DD. These individuals include 1,115 adults who have long been relegated to segregated workshops when they were able and wanted to work in traditional jobs in their communities. 4,900 youth with I/DD will now receive employment services to aid in selecting, preparing for, obtaining, and retaining traditional jobs. The team’s accomplishment serves as a model for integrated employment of persons with disabilities nationwide.
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
“I am honored and delighted that Adrian was recognized today for her outstanding achievements and important contributions to protecting Oregonians with intellectual and developmental disabilities,” said Billy J. Williams, United States Attorney for the District of Oregon. “Adrian is a critical member of our team whose knowledge and creativity contribute significantly to furthering the mission of the Justice Department across Oregon. Her efforts demonstrate our steadfast commitment,” continued U.S. Attorney Williams, “to protecting our most vulnerable citizens from discrimination. I am proud to work alongside such a talented and dedicated public servant.”
Attorney General Lynch recognized 376 Justice Department employees for their distinguished public service at today’s awards ceremony. Forty-seven other individuals outside the department were also honored with their work. The annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice across the country.
Albuquerque Pediatric Surgeon Facing Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Albuquerque, N.M., pediatric surgeon Guy Rosenschein, 63, made his initial appearance today in federal court on a criminal complaint charging him with possession and distribution of child pornography. Rosenschein remains in federal custody pending a preliminary hearing and a detention hearing, which are scheduled for Monday, Nov. 14, 2016.
The criminal complaint alleges that Rosenschein possessed and distributed child pornography on Nov. 8, 2016, in Bernalillo County, N.M. According to the complaint, the investigation into Rosenschein was initiated in July 2016, when the Bernalillo County Sheriff’s Office (BCSO) identified a computer with an IP address, later determined to be subscribed to Rosenschein that allegedly was used to distribute child pornography. The complaint alleges that, on Nov. 8, 2016, a search warrant was executed at Rosenschein’s residence, and BCSO officers and detectives found that Rosenschein possessed a thumb drive containing child pornography. Rosenschein was arrested that day on related state charges.
If convicted of the distribution of child pornography charge, Rosenschein faces a statutory mandatory minimum penalty of five years and maximum of 20 years in federal prison. If convicted on the possession charge, he faces a statutory maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the BCSO. Assistant U.S. Attorney Jonathon M. Gerson is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Albuquerque Man Pleads Guilty to Violating Federal Firearms and Heroin Trafficking LawsRead the Press Release
ALBUQUERQUE – Gerald Herrera, 30, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms and narcotics laws.
Herrera was arrested on April 7, 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition, possession of methamphetamine and heroin with intent to distribute and possession of a firearm in relation to a drug trafficking crime. According to the indictment, Herrera committed the offenses on July 8, 2015, in Bernalillo County, N.M. Herrera was prohibited from possessing firearms or ammunition because he previously had been convicted of receiving or transferring a stolen vehicle, tampering with evidence, possession of cocaine, homicide by vehicle and auto burglary.
During today’s proceedings, Herrera pled guilty to possession of heroin with intent to distribute and carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Herrera admitted that on July 8, 2015, Albuquerque Police Department (APD) officers found a firearm, ammunition and individually packaged bags of heroin and methamphetamine on him and in his vehicle when he was the subject of a traffic stop.
At sentencing, Herrera faces a statutory maximum penalty of 20 years in prison on the heroin charge as well as a statutory mandatory penalty of at least five years for the firearms charge which must be served consecutively to any other sentence imposed. Herrera remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the APD. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
A Florida Attorney and Lobbyist Sentenced to Prison for Agreeing to Launder Proceeds of Illegal ActivityRead the Press Release
An attorney and lobbyist from Hollywood, Florida was sentenced to a year in federal prison for agreeing to launder what he believed to be the cash proceeds of illegal activity.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Alan Koslow, 62, a Hollywood, Florida attorney and lobbyist, and Susan Mohr, 57, of Delray Beach, Florida both previously pled guilty to conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, by agreeing to launder what they believed to be the cash proceeds of illegal activity. U.S. District Judge William P. Dimitrouleas sentenced Koslow to one year and a day in prison, to be followed by three years of supervised release. Koslow was also ordered to pay a $7,500 fine and $8,500 in restitution. Mohr is scheduled to be sentenced on December 8, 2016 in Fort Lauderdale, before U.S. District Judge Dimitrouleas.
According to the court record, including statement of facts provided by Koslow and co-conspirator Mohr in support of their guilty pleas, beginning in November 2012, Alan Koslow met with two undercover agents from the FBI. During the course of several meetings that followed, the undercover agents explained to Koslow, and later to Mohr, their need to launder cash being generated from an illegal gambling business and from the unlawful sale of narcotics and counterfeit Viagra. Koslow and Mohr agreed to accept the cash and then provide checks to the agents, for the amount of the cash minus a five percent fee, drawn on the business bank account of “Mohr2GoGifts,” a business owned by Mohr and located in Fort Lauderdale, Florida. Pursuant to this agreement, on several occasions Koslow accepted cash from the undercover agents who thereafter received cashiers’ checks and business checks from Mohr equal to the amount of the cash minus the five percent fee.
The law firm that employed Koslow was not involved with the criminal activity.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Senior Litigation Counsel Neil Karadbil.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
9 November 2016
Wise County Man Pleads Guilty to Having Minor Attend a Cockfight and Other ChargesRead the Press Release
ABINGDON, VIRGINIA – A Pound, Virginia man, pled guilty to three felony charges earlier this week, including allowing a minor to be present at a cockfight, distribution of hydrocodone, and conspiring to facilitate cockfighting.
Russell D. Peaks, 40, of Wise County, Virginia, pled guilty earlier this week in the United States District Court for the Western District of Virginia in Abingdon for his role in cockfighting at the Big Blue Sportsmen’s Club “Big Blue” in McDowell, Kentucky.
“Cockfighting is not only a brutal and barbaric act, it is also illegal in this country,” United States Attorney Fishwick said today. “We are proud those involved in this investigation have held Mr. Peaks, and others, responsible for operating the Big Blue cockfighting club and for subjecting minors to this type of violence.”
According to evidence presented at previous hearings, Peaks raised fighting roosters at his home in the Pound, Virginia, area. He then took those birds to fight at Big Blue in McDowell, Kentucky. Peaks also fought birds in the Pound area. On one such occasion, Peaks allowed a minor to attend the fight. In 2014, Congress made it a felony to allow a minor to attend an animal fighting venture, which includes cockfighting. Peaks also sold hydrocodone to an undercover officer.
Five individuals previously convicted for their role at Big Blue were sentenced to terms of imprisonment ranging from 6 to 18 months. Another defendant, Jimmy Crate Willis, has signed a plea agreement and intends to plead guilty in the near future. The two remaining defendants are scheduled for trial at the Federal Courthouse in Big Stone Gap on December 12, 2016.
Peaks sentencing has been scheduled for January 30, 2016, in Abingdon.
Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney/Virginia Assistant Attorney General Michelle Welch are prosecuting these cases on behalf of the United States. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.
Waterbury Man Sentenced to 37 Months in Prison for Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHEN GOINS, 36, last residing in Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on June 26, 2014, law enforcement received information that GOINS, a convicted felon, was operating a vehicle that had a firearm in the glove compartment. A Bridgeport police officer stopped the vehicle after it exited I-95 in Bridgeport. GOINS was arrested after a search of the glove compartment revealed a loaded Ruger LCR Revolver, .38 caliber Special.
GOINS’ criminal history includes felony convictions for robbery, larceny and marijuana trafficking offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
GOINS has been detained since his arrest. On May 6, 2016, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bridgeport Police Department, New Britain Police Department, and Connecticut Statewide Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Two Men Convicted of Defrauding Banks in Connection with USDA Export Financing ProgramRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found BRETT C. LILLEMOE, 46, of Minneapolis, Minn., and PABLO CALDERON, 61, Darien, Conn., guilty of conspiracy and fraud offenses related to a multimillion dollar scheme to defraud banks participating in a USDA-backed export financing program. LILLEMOE, CALDERON and a third defendant were found not guilty of additional offenses. The trial before Chief U.S. District Judge Janet C. Hall began on October 5 and the verdicts were returned this afternoon.
According to court documents and statements made in court, LILLEMOE and CALDERON submitted fraudulent documents to two United States banks in connection with a USDA loan guarantee program by which the USDA provides credit guarantees. The credit guarantees are part of the USDA Export Credit Guarantee Program (GSM-102), which is designed to encourage financing of commercial exports of U.S. agricultural products. The GSM-102 program guarantees credit extended by U.S. financial institutions to approved foreign banks. As part of the program, the Commodity Credit Corporation (CCC), which is an agency and instrumentality of the USDA, enters into payment guarantees (“credit guarantees”) with the goal of encouraging exports of U.S. agricultural products, including products of American farmers and American ranchers.
The credit guarantees are designed to encourage exports to buyers in foreign countries – mainly developing countries. The program operates in cases where credit is necessary to increase or maintain U.S. exports to a foreign market and where U.S. financial institutions might otherwise be unwilling to provide financing without the guarantee backed by the United States Government. In providing the credit guarantee facility, the CCC seeks to expand market opportunities for U.S. agricultural exporters and assist long-term market development for U.S. agricultural commodities.
In connection with the GSM-102 program, a foreign importer that has contracted to buy U.S. agricultural products can apply for a letter of credit (“LOC”) from a foreign bank that has been approved by the USDA’s Foreign Agricultural Service (FAS). The foreign bank then issues a letter of credit in favor of the U.S. exporter. The U.S. exporter then, consistent with the requirements of the GSM-102 program, presents proper shipping documents to an approved U.S. financial institution, including a copy of an original bill of lading, certificate of origin, and evidence of export. The U.S. financial institution then provides funds to the U.S. exporter which, in exchange, assigns the rights to the proceeds payable under the letter of credit from the foreign bank to the U.S. financial institution in the same dollar-denominated amount, less any fees. If the foreign bank defaults on its payments to the U.S. financial institution, the U.S. financial institution may submit a claim to the USDA FAS under the guarantee for up to 98 percent of the payment amount owed at the time of the default.
The jury found that between September 2007 and January 2012, LILLEMOE, CALDERON and others defrauded various U.S. financial institutions, including Deutsche Bank A.G. and Colorado-based CoBank ACB, by presenting false and altered shipping documents, including altered bills of lading, in connection with securing funding on loans guaranteed by the GSM-102. As part of the scheme, LILLEMOE and CALDERON established multiple entities with separate names for the purpose of obtaining a greater share of the allocation of guarantees from the GSM-102 program, and used multiple bank accounts in the names of the various entities in order to further create the appearance that the entities were operating as separate and unrelated entities. The defendants then, in various ways, paid for or otherwise acquired bills of lading and other shipping documents for shipments of agricultural products that they did not physically ship and for which they did not participate in the physical movement of the products in any capacity.
LILLEMOE entered into agreements with foreign banks, including International Industrial Bank (IIB) in Russia, to provide them capital that would be made available to them from a U.S. financial institution through the use of the GSM-102 program. LILLEMOE subsequently obtained letters of credit from the foreign banks. LILLEMOE, CALDERON and others then altered copies of certain shipping documents, including bills of lading marked “Copy non negotiable,” by whiting out portions of the documents, stamping the word “original” on the documents, and adding shading on certain sections of the bills of lading. The defendants also prepared and executed documents termed “commercial invoices” purporting to represent sales of agricultural commodities between entities that they controlled, as well as between entities that they controlled and other entities.
The defendants then used these fraudulent documents to obtain millions of dollars from U.S. banks in connection with the GSM-102 program, and then provided the funds to the foreign banks in exchange for a percentage fee for themselves and their various entities. As established at trial the defendants and their co-conspirators made millions of dollars of fees as part of the conspiracy. Although the foreign banks were obligated to repay the funds to the U.S. financial institutions by virtue of the letters of credit issued to the U.S. financial institutions, in a number of instances, the foreign banks failed to do so. Nevertheless, LILLEMOE, CALDERON and their various entities retained millions of dollars of fees they had collected in connection with the GSM-102 transactions and in some instances, sent a portion of those fees to various financial backers in places such as Singapore.
The evidence showed that the foreign banks defaulted on over $25 million of the many loans guaranteed as a result of LILLEMOE and CALDERON’s scheme. Those losses, which were originally suffered by the victim U.S. banks, were ultimately reimbursed by the USDA because of the GSM-102 guarantees.
On February 20, 2015, a grand jury returned a 23-count indictment charging LILLEMOE, CALDERON, and Sarah Zirbes of Minneapolis, Minn., with conspiracy, fraud and money laundering offenses. The jury found LILLEMOE and CALDERON guilty of one count of conspiracy to commit wire fraud and bank fraud, and LILLEMOE guilty of five counts and CALDERON guilty of one count of wire fraud. The jury found LILLEMOE, CALDERON and Zirbes not guilty on the remaining counts of wire fraud, one count of bank fraud and one count of money laundering. CALDERON also was found not guilty of lying to the IRS and the FBI in connection with statements he made to the federal agents from those agencies.
LILLEMOE is scheduled to be sentenced on February 1, 2017, and CALDERON is scheduled to be sentenced on February 2, 2017. They face a maximum term of imprisonment of 20 years on each count.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Department of Agriculture, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry, John H. Durham and John T. Pierpont, Jr.