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Tuesday 20 September 2016
Six KC Residents Indicted for Marriage Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that five Kansas City, Mo., women and one man have been indicted by a federal grand jury for their roles in a marriage fraud conspiracy.
Delmar Dixon, 48, Traci R. Porter, 44, her daughter, Tierra Ofield, 23, Stephanie Harris, 21, Shakeisha Harrison, 36, and Kakeland Barnes, 36, all of Kansas City, were charged in a 14-count indictment returned under seal by a federal grand jury on Aug. 31, 2016. That indictment was unsealed and made public today upon the arrests and initial court appearances of all six defendants.
The federal indictment alleges that Dixon, Porter, Ofield, Harris, Harrison and Barnes participated in a conspiracy beginning in 2007 in which they were paid to marry African nationals so that their spouses could obtain lawful permanent resident status in the United States.
According to the indictment, Dixon arranged marriages between African nationals (from Kenya and Tanzania) and U.S. citizens. Dixon allegedly introduced the African nationals to U.S. citizens who were willing to enter into fraudulent marriages with them, including but not limited to Dixon’s co-defendants.
Dixon allegedly charged the African nationals $1,000 upfront for such introductions. The African nationals were allegedly required to pay the U.S. citizen spouses, including Porter, Harrison, Ofield, Harris, and Barnes, $500 at the time of the wedding, $500 after the completion of the wedding and $250 each month after the wedding until the immigration process was complete.
After the African nationals and U.S. citizen spouses were married, according to the indictment, they filed immigration documents in order to obtain lawful permanent resident status for the African nationals. Conspirators allegedly represented their marriages as valid and legitimate through false statements on immigration forms, including by claiming the couples resided together, and making false and misleading statements about their marriages to federal officials. Dixon coached the African nationals and his co-conspirators on how to make their marriages appear legitimate, the indictment says, advising the couples to get to know each other and make it appear as if they were residing together.
According to the indictment, on Nov. 24, 2015, Harris married a confidential informant working with Homeland Security Investigations (HIS) in Kansas City. (Because the marriage was staged by HSI, it is not legally valid.) From the fall of 2015 until the present, Harris accepted monthly payments from the confidential informant and pressured him for other financial benefits.
On Jan. 23, 2016, Dixon allegedly accepted a payment from an undercover agent working with HSI in Kansas City. The payment was for the introduction of the agent to a potential spouse he could marry for the sole purpose of obtaining immigration benefits for the undercover agent. Dixon introduced the undercover agent to Barnes, who allegedly indicated to the agent that she was willing to enter into the marriage for the sole purpose of obtaining immigration benefits for the undercover agent and that she understood it was just a business transaction. On Feb. 19, 2016, Barnes and Dixon allegedly accepted payments from the undercover agent for their ongoing cooperation in the marriage arrangements. Barnes allegedly accepted another payment from the undercover agent on July 19, 2016.
In another instance cited in the indictment, Porter married a Kenyan national twice. The two had to end their first marriage because a federal investigation revealed the Kenyan national was still legally married in Kenya. Porter and the Kenyan national remarried after his divorce from his prior wife was granted.
In addition to the conspiracy, Dixon, Porter, Harrison and Harris are each charged with one count of marriage fraud.
Dixon, Porter and Harrison are each charged with one count of making a false statement relating to naturalization, one count of unlawfully procuring citizenship or naturalization and one count of false swearing in an immigration matter.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services, Fraud Detection and National Security.
Shreveport man pleads guilty to methamphetamine, firearm chargesRead the Press Release
SHREVEPORT, La. – U.S. Attorney Stephanie A. Finley announced today that a Shreveport man pleaded guilty to possessing methamphetamine and a handgun.
Paul Matthew Garza, 35, of Shreveport, pleaded guilty before U.S. Magistrate Mark L. Hornsby to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of drug trafficking. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Garza’s vehicle was pulled over during a traffic stop on May 25, 2016 near the Louisiana/Texas border in Caddo Parish. Upon searching his vehicle, law enforcement found 408 grams of methamphetamine and 142.73 grams of Xanax bars. Upon searching his home, additional methamphetamine and Xanax were found. A Ruger LCP .380 semi-automatic handgun, digital scales and $17,400 were also found.
Garza faces 10 years to life in prison for the drug count and five years in prison for the firearm count. He also faces at least five years of supervised release and a $10 million fine. A sentencing date of January 12, 2017 was set.
The DEA and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Sally Kirby Imprisoned for Hunger Free Vermont EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Sally Kirby, 61, of Essex Junction, was sentenced today in United States District Court in Burlington to 15 months of imprisonment following her guilty plea to a federal forgery charge. U.S. District Judge William K. Sessions III also ordered that Kirby serve three years of supervised release following completion of her prison term and pay restitution of more than $178,000. The court directed Kirby to surrender to the Bureau of Prisons on October 25 to begin serving her sentence.
Last April, the United States Attorney's Office filed a one-count information charging Kirby with forging checks of her employer, Hunger Free Vermont. Kirby pled guilty to that charge in May. According to the information, Hunger Free Vermont is a non-profit educational and advocacy organization which provides nutrition education and access to nutrition programs to Vermont's children, families and communities. In 2004, Sally Kirby was hired as the Director of Finance for HFV. Her duties included handling payroll, accounts payable, financial statements and grant allocations.
According to the information, between June 2009 and September 2015, Kirby embezzled about $165,000 from the organization. She did that primarily by issuing HFV checks to herself without authorization, then forging the signature of HFV's executive director on the checks. She deposited many of the checks into a personal credit union account she maintained. Kirby attempted to conceal her embezzlement by altering some entries in HFV's accounting system to make it appear as though checks she issued to herself had been made payable to vendors. The embezzlement was discovered last October and Kirby was promptly fired.
This case was investigated by the Federal Bureau of Investigation.
Kirby is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Ruffing Montessori School to change policies for students with disabilities under settlement with Justice DepartmentRead the Press Release
The Department of Justice announced today that Ruffing Montessori School, in Rocky River, has entered into an agreement to make significant changes in its policies for students with disabilities, U.S Attorney Carole Rendon said.
The school has also agreed to pay $45,000 in compensation to three families whose children were disenrolled from Ruffing, and a civil penalty of $3,000.
The agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, resolves allegations by the United States that Ruffing failed to comply with the Americans with Disabilities Act when it disenrolled a child with autism, and two other students. The United States alleged that Ruffing did not attempt to make reasonable modifications to its program for these children before deciding that they could not continue as students at the school.
Under the agreement, Ruffing’s staff will be trained on how to educate children with disabilities within the Montessori philosophy. The school will also revise its non-discrimination policies to cover children with disabilities, and for a three-year period will report to the Department of Justice on how it handles applications from students with disabilities. The school will also report on how it responds to requests for modifications from children with disabilities, and on any students with disabilities who leave the school.
“This settlement protects the rights of students with disabilities to access the educational opportunities offered by private schools, including Montessori schools,” Rendon said. “This settlement is an important reminder that the ADA’s obligations extend to private schools and their treatment of students with disabilities. Under the ADA, private schools must ensure that they are not screening out students on the basis of disability or making decisions based on stereotypes about students with disabilities.”
Roseville Woman Sentenced to 14.5 Years in Prison for Mortgage Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Rachel Siders, 41, of Roseville, to 14 and a half years in prison for her involvement in mortgage fraud schemes that cost financial institutions over $17 million, Acting U.S. Attorney Phillip A. Talbert announced.
Federal juries returned verdicts in two trials, in March 2015 and December 2015 finding her guilty of multiple counts of bank fraud, wire fraud, mail fraud, making a false loan application, and committing aggravated identity theft.
According to evidence presented at the first trial, in 2008 Siders and co-defendant Theo Adams, 50, of Roseville, applied for a home equity line of credit using his relative’s name on an underwater Roseville property owned by Adams. They submitted false tax returns in the relative’s name with significantly inflated income along with mortgage application documents with forged signatures. Siders, a notary public, falsely notarized the loan application documents, which were sent to Washington Mutual Bank. The bank relied upon the false documents to provide a $250,000 line of credit. Siders received $170,000 of the proceeds. After making minimal payments, the defendants defaulted on the loan.
According to evidence presented at the second trial, from mid-2006 through early 2008, Siders and Vera Kuzmenko, 46, of Loomis, and other defendants engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento area. They secured more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. The loan applications contained materially false information as to the straw buyers’ income, employment, assets, and intent to occupy the residences. Records introduced at trial showed that Vera Kuzmenko received millions of dollars, and that Rachel Siders received hundreds of thousands of dollars.
Vera Kuzmenko, was a licensed real estate agent for part of the scheme, and Rachel Siders ran the Rocklin office of the escrow company used on the majority of the transactions. She helped funnel millions of dollars to her co-defendants, which was not disclosed to the lenders.
“The sentence today reflects the seriousness of Siders’ crimes, which included participation in two separate mortgage fraud schemes. Over the course of two years, Siders oversaw and participated in numerous fraudulent loans and diverted money into shell accounts for her own benefit. She abused her position as an escrow officer and as a notary public to make this criminal enterprise succeed,” said Acting U.S. Attorney Talbert. “The sentence imposed is a significant reminder that those who engage in such conduct will be held accountable.”
“Today’s sentence sends a clear message; anyone profits from fraudulent mortgage transactions—whether by creating the scheme or facilitating it—will not escape justice,” said Supervisory Special Agent Dan Bryant at the FBI Sacramento field office. “The FBI aggressively pursues those involved in such large-scale, complex financial fraud matters to seek justice for the victims and protect the regional economy.”
“Rachel Siders was driven by greed in her participation in this mortgage fraud which targeted the Sacramento area,” said Michael T. Batdorf, Special Agent in Charge, IRS‑Criminal Investigation. “Today’s sentencing is a reminder how serious our courts consider this criminal activity and our commitment in providing financial expertise to our federal partners in these types of crimes.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Lee S. Bickley, Michael D. Anderson, and Matthew D. Segal prosecuted the case.
On March 15, 2016, Judge Mendez sentenced Vera Kuzmenko to 14 years in prison. She was found guilty of multiple counts of mail and wire fraud, money laundering and witness tampering. On April 19, 2016, Theo Adams, 50, of Roseville, was sentenced to two years in prison. Previously, Judge Mendez sentenced co-defendants Peter Kuzmenko, 38, of West Sacramento, to 19 years in prison; Aaron New, 42, of Sacramento, to 11 years and three months in prison; Nadia Kuzmenko, 37, formerly of Loomis, to eight years in prison; and Edward Shevtsov, 52, of North Highlands, to eight years in prison. They were found guilty on February 13, 2015, after a 21-day trial, of multiple counts of mail and wire fraud associated with the mortgage fraud scheme. In addition, Peter Kuzmenko, Edward Shevtsov, and Aaron New were found guilty of money laundering associated with the scheme, and Nadia Kuzmenko was found guilty of witness tampering.
Raytown Man Indicted for Using Plastic Replica Gun to Rob Credit UnionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man who used a plastic replica handgun was indicted by a federal grand jury today for robbing Community America Credit Union.
Stephen McCrary, 55, of Raytown, was charged with stealing $3,815 from Community America Credit Union in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against McCrary on Sept. 8, 2016, which charged him with the same offense.
According to an affidavit filed in support of the original criminal complaint, McCrary entered the Community America Credit Union located in Research Medical Center, 2316 E. Meyer Blvd., Kansas City, at approximately 3:10 p.m. on Sept. 7, 2015. McCrary asked a teller for change for a $100 bill and placed a white plastic bag on the counter. McCrary allegedly pulled a black handgun part way out of the bag and told the teller he wanted “all the money in the drawer.” (The handgun was later determined to be a plastic replica.) The teller gave him the money from her top drawer, the affidavit says, and he also demanded some $100 bills and a bag of Susan B. Anthony commemorative gold coins (approximately $68 worth) that were in a ziplock bag in the teller drawer.
Following the robbery, a description of the suspect was broadcast to hospital security officers. A security officer saw McCrary jog across Meyer Boulevard, the affidavit says, then start walking south on Park Avenue. Another security officer approached McCrary and detained him until Kansas City police officers arrived and arrested him.
At the time of his arrest, the affidavit says, McCrary was carrying two plastic bags. Inside the bags, officers found a black plastic replica handgun, articles of clothing that matched the description of the thief (including latex gloves and a bandana), and $3,815 (including Susan B. Anthony coins).
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Matt Moeder. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Pittsburgh Man Sentenced to 5 Years in Prison for Drug TraffickingRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 60 months in prison, to be followed by a term of four years’ supervised release, on his conviction of conspiracy to distribute and possess with intent to distribute powder cocaine and crack cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Gaston Pleas Bradshaw, 29, of Pittsburgh PA.
According to information presented to the court, from October 2013, and continuing to in and around April 2014, in the Western District of Pennsylvania and elsewhere, Bradshaw conspired with others to distribute and possess with the intent to distribute 500 grams or more of powder cocaine, and 280 grams or more of crack cocaine.
Assistant United States Attorney Troy Rivetti and Tonya Sulia Goodman prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Stanton.
Ortiz Announces Appointment of First Assistant U.S. AttorneyRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz announced that William Weinreb has been appointed to serve as First Assistant United States Attorney for the District of Massachusetts. Weinreb previously served as Counsel to the U.S. Attorney for two years, and was Deputy Chief of the National Security Unit and Coordinator of the Anti-Terrorism Advisory Council.
“Bill has served as a trusted advisor to me, sharing his expertise and legal acumen cultivated by years as a litigator, on numerous sensitive legal and law enforcement matters handled by the Office,” said U.S. Attorney Ortiz. “Bill’s longstanding commitment to public service, combined with his experience, will serve the District of Massachusetts well, and I look forward to working closely with him in his new role.”
Mr. Weinreb has been the lead prosecutor in a number of high-profile and challenging cases, most notably, the 2015 conviction of Boston Marathon bomber Dzhokhar Tsarnaev. He received the Attorney General’s Distinguished Service Award for his prosecution of Aftab Ali, a Boston resident who helped fund the attempted car bombing of Times Square. He also successfully prosecuted Massachusetts’s first case of foreign economic espionage; its first case involving use of a laser to interfere with the operation of an aircraft; and its first case involving the threatened use of a biological weapon (ricin).
In addition to prosecuting cases, Mr. Weinreb has been a leader in the Office’s outreach efforts to vulnerable communities. He also helped launch the office’s new Civil Rights Unit and has been a strong advocate for the protection of civil rights and civil liberties in the Commonwealth.
Ms. Weinreb joined the U.S. Attorney’s Office in 2000 after serving for five years as an Assistant U.S. Attorney in the District of Columbia. Over the course of his career, he has prosecuted numerous violent crime and white collar cases, including rape, attempted murder, child sexual abuse, narcotics trafficking, money laundering, public corruption, insurance fraud and health care fraud. In additional to his trial work, Mr. Weinreb has argued over 20 cases before the First Circuit, D.C. Circuit and D.C. Court of Appeals.
Before becoming an Assistant U.S. Attorney, Mr. Weinreb was a litigation associate at Shea & Gardner in Washington, D.C. from 1990 to 1995. Prior to that, he was a law clerk for then-Chief Judge Stephen Breyer of the U.S. Court of Appeals for the First Circuit.
Mr. Weinreb graduated cum laude from Harvard Law School in 1989, and received his Bachelor of Arts in English Literature from Wesleyan University in 1984.
North Texas Business Owners Guilty in Money Laundering SchemeRead the Press Release
SHERMAN, Texas – A jury has found four North Texas men guilty of federal money laundering violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Miguel Rivas Estrada, 29, of Michoacán, Mexico; Felipa Torres, 49, of Dallas; Justa Centeno, 52, of Dallas; and Jose Angel Olvera, 40, of Dallas, were found guilty by a jury of conspiracy to commit money laundering. The verdict was reached on Sep. 19, 2016 following a week-long trial before U.S. District Judge Amos Mazzant.
According to information presented in court, Felipa Torres owned and operated Cumbia Recordz, Justa Centeno owned and operated Variedades Esperanza and Jose Olvera owned and operated Super Mercado 5 Estrellas. All three of these businesses operated as money services business (MSBs) located in the Northwest Highway area and were authorized agents of several International Money Remitter Companies, such as Barri Financial Group, Continental Exchange Solutions, GroupEx Financial Corporation, InterCambio Express Corporation, Intermex Wire Transfers, LLC, Sigue Corporation, Unidos Financial Corporation, and Viamericas Corporation. The three MSBs utilized these remitter services to facilitate the transmission of proceeds obtained from the distribution of methamphetamines via wire transfers to Michoacán, Mexico.
Between June of 2013 and October of 2015, these MSBs laundered over $16 million in illicit proceeds from the North Texas area to Michoacán, Mexico. These MSBs charged a wire transaction fee to help launder the illicit proceeds. It was part of the laundering scheme that the MSBs structured the wires in amounts less than $1,000 coupled with the usage of fictitious sender information in order to avoid bank secrecy act reporting requirements and to conceal the true origin and ownership of the illicit proceeds.
The head of the multi kilo methamphetamine transnational distribution ring was Miguel Angel Rivas Estrada who was also found guilty of conspiracy to distribute methamphetamine.
Under federal statutes, the defendants each face up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by Homeland Security Investigations, Internal Revenue Service - Criminal Investigations, Lancaster Police Department, Dallas Police Department, Dallas County Sherriff’s Office, Fate Department of Public Safety, Irving Police Department, Rockwall County Sherriff’s Office, Balch Springs Police Department, Rowlett Police Department, Enforcement and Removal Operations, and the Texas Attorney General’s Office. This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Leslie Brooks.
Methamphetamine Dealer Sentenced to PrisonRead the Press Release
EUGENE, Ore. – On Tuesday, September 20, 2016, Robert Dewane Lacey, 47, was sentenced to 49 months in prison by U.S. District Judge Michael J. McShane for possession with intent to distribute methamphetamine. Following his release from prison, Lacey will be on supervised release for three years.
On March 5, 2015, a Springfield Police Officer stopped a vehicle being driven by Lacey. The defendant initially lied about his identity before disclosing his true name and admitting that he was wanted. The vehicle was searched and several ounces of methamphetamine were located, along with more than $20,000 cash. Lacey has prior convictions including transporting or selling a controlled substance, felon in possession of a firearm, and second-degree burglary. Lacey’s 49-month federal sentence is in addition to a 14-month sentence he served on an unrelated state case.
Investigation of the case was a collaborative effort between the Springfield Police Department and the DEA. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Meridian Woman Pleads Guilty to Computer FraudRead the Press Release
Jackson, Miss – Teresa Wash, 51, of Meridian, pled guilty today before U.S. District Judge Carlton W. Reeves, to one count of accessing a computer to defraud and obtain value, announced U. S. Attorney Gregory K. Davis.
Wash, as Controller for Progressive Pipeline, Inc., used her work computer to embezzle approximately $797,287.85. She appropriated to her own use funds belonging to Progressive Pipeline, specifically requesting fraudulent wire transfers from Progressive Pipeline’s bank accounts to her own account.
Wash will be sentenced on December 8, 2016 at 10:00 a.m. by U.S. District Judge Carlton W. Reeves and faces a maximum penalty of five years in prison and a $250,000 fine.
The case is being prosecuted by Assistant United States Attorney Chris Wansley. It was investigated by the FBI Jackson Cyber Crime Task Force, which is comprised of investigators from the Mississippi Attorney General’s Office, the Madison Police Department and FBI Agents from the Jackson Field Office.
Man Sentenced to 10 Years for Conspiracy to Prostitute Young GirlsRead the Press Release
Assistant U.S. Attorney Susan L. Park (619) 546-6760
NEWS RELEASE SUMMARY – September 20, 2016
SAN DIEGO – Eric Watkins, aka “Crank Moe” and “Cali Made Crankk,” was sentenced Monday to 120 months in prison for conspiracy to commit sex trafficking of children in San Diego and Oceanside.
Between September 11, 2014 and September 13, 2014, Watkins (age 21) and his co-defendant Ricardo Bojorquez (age 24) conspired to commit sex trafficking of two 15-year old females. Watkins and Bojorquez approached young girls and women on the trolley and used Facebook and other social media sites to recruit young girls and women for the purpose of prostitution.
In carrying out the conspiracy, Watkins and Bojorquez detained a minor female (age 15) at Bojorquez’s apartment in San Diego, California, for the purpose of prostitution. They forced her to call her father to tell him she would not be coming home and then took away her cell phone. She was threatened and told that she was not free to leave and would make money for them as a prostitute. Also present was a second minor female (age 15) who had a long history of prostituting herself for Watkins’ benefit. Watkins had his pimp moniker tattooed on the second minor female’s neck. Watkins, who has served as the pimp for several young girls and women, also assisted Bojorquez in posting online escort advertisements containing images of the two minor females.
On September 13, 2016, Watkins and Bojorquez took both minors from San Diego to Oceanside, California, for the purpose of making money through commercial sex acts committed by the two minors. After being told again that she had to prostitute herself, the first minor female, who was present against her will, was able to flee to a bar in Oceanside and called her father to pick her up.
Ricardo Bojorquez was sentenced to 78 months in prison on April 25, 2016. Following their release from prison, both Watkins and Bojorquez will be placed on eight years of supervised release and lifetime registration as sex offenders.
This case was the result of the collaborative work by the Federal Bureau of Investigation’s Child Exploitation Task Force and the San Diego Police Department.
DEFENDANTS Case Number 14CR3661
Eric Watkins Age: 21 Hometown: Chula Vista, Calif.
Ricardo Bojorquez Age: 24 Hometown: San Diego, Calif.
SUMMARY OF CHARGE OF CONVICTION
Conspiracy to Commit Sex Trafficking of Children, in violation of Title 18, U.S.C., Section 1594(c)
AGENCY
San Diego Police Department
Federal Bureau of Investigations
Victims of human trafficking can be anyone, including men, women, children, adults, foreign nationals, or U.S. citizens. Victims are protected under the law. Please get help for yourself or a suspected victim from the National Human Trafficking Resource Center toll free, 24/7 Hotline: 888-373-7888 or TEXT BeFree or 233733. Individuals can also call the San Diego Human Trafficking Task Force tip-line at 858-495-3611 with any non-emergency information. For emergencies please call 911 or the local law enforcement agency in your area. To learn more, check: www.FightHumanTraffickingSD.org
Long Island Educator and Coach Is Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
CENTRAL ISLIP, NY – Earlier today, Kevin Barry O’Connell, a Long Island educator and coach, was sentenced at the federal courthouse in Central Islip, New York, to five years in prison following his July 2015 guilty plea to receiving child pornography at his residence in Patchogue, New York. The sentencing proceeding was held before United States District Judge Leonard D. Wexler. O’Connell was also sentenced to five years’ supervised release to follow his prison sentence, during which time he must register as a sex offender and he will not be allowed unsupervised contact with minors.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
“Keeping our children safe is a priority for law enforcement and this Office,” stated United States Attorney Capers. “This crime was particularly egregious in that O’Connell, as an educator, a former high school principal and a coach was entrusted with ensuring the safety and wellbeing of children while he at the same time was victimizing children by receiving images of children being sexually abused.” Mr. Capers thanked the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), for its assistance in the investigation.
According to court filings and facts presented at the guilty plea and sentencing proceedings, O’Connell downloaded video files of the rape and abuse of children as young as eight years’ old which he kept on thumb drives in his Patchogue home. During a court-ordered search of his residence on October 15, 2012, O’Connell initially lied to HSI agents and denied that he possessed child pornography until agents found three thumb drives in the pocket of a jacket at the house. O’Connell then admitted that he had hidden the drives in the jacket.
Following his arrest, O’Connell was suspended from his employment as an Assistant Superintendent for Secondary Education in the Roosevelt Union Free School District. O’Connell had previously served as the Principal of Bellport Senior High School in the South Country Central School District and an Assistant Principal at Walter G. O’Connell Copiague High School. O’Connell was the Varsity Baseball Coach from 1990 to 2001 at William Floyd High School.
The government’s case is being prosecuted by the Office’s Long Island Criminal Section. Assistant United States Attorney Allen Bode is in charge of the prosecution.
This prosecution is 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, 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 Defendant:
KEVIN BARRY O’CONNELL
Age: 55
Patchogue, New York
E.D.N.Y. Docket No. 12-CR-715 (LDW)
Leader of Fraud Scheme Involving Family Members is SentencedRead the Press Release
DALLAS — Rolando Minano, 48, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 78 months in federal prison and ordered to pay $665,962 in restitution, following his guilty plea in May 2016 to one count of conspiracy to commit mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Rolando Minano’s ex-wife, Martha Irene Collantes, 53, and his stepson, Carlos Arturo Pastor Collantes, 32, were sentenced in May 2016 to 12 months and just over 10 months, respectively. Each pleaded guilty to one count of conspiracy to commit theft of public funds. Minano’s father, Francisco Minano Vargas, 73, and his mother, Santos Magdalena Toribio De Minano, 66, each pleaded guilty to misprision of a felony. Francisco Minano Vargas was sentenced to serve a two-year term of probation. Sentencing is set for November 17, 2016, for Santos Magdalena Toribio De Minano.
The investigation began when members of the U.S. Postal Inspection Service notified Internal Revenue Service Criminal Investigation that the owner of a private mailbox at a commercial mail receiving business in Garland, Texas, had received five Department of Treasury envelopes addressed in other people’s names. The investigation revealed that all the envelopes contained refund checks.
Further investigation, according to documents filed in his case, showed that Rolando Francisco Minano ran a fraud scheme to obtain Department of the Treasury refund checks by making materially false and fictitious representations to the government. The defendants obtained multiple Individual Taxpayer Identification Numbers (ITIN) in their names and others by submitting false Peruvian passports. Rolando Francisco Minano notarized all of the ITIN applications, certifying the Peruvian passports were authentic. Tax returns were then filed with the false ITINs and refunds were directed to be mailed to multiple addresses under the defendants’ control. Once received, the checks were endorsed by defendants and deposited into bank accounts they controlled and opened in their true names.
For example, during the course of the conspiracy, the defendants deposited the following approximate amounts in fraudulently obtained U.S. Treasury checks, in the names of people other than themselves, into JP Morgan Chase bank accounts: Rolando Francisco Minano, $19,932; Martha Irene Collantes, $148,091; Francisco Minano Vargas, $64,352; Santos Magdalena Toribio de Minano, $213,038; and Carlos Arturo Pastor Collantes, $59,104.
The U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Aaron Wiley was in charge of the prosecution.
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Law Enforcement Gather to Receive an Update on Eastern Iowa Heroin InitiativeRead the Press Release
CEDAR RAPIDS, IA—A year ago federal, state and local law enforcement met at the Cedar Rapids Police Department to discuss the opioid and heroin epidemic crossing the country, which was making its way into Eastern Iowa. Yesterday, the group reassembled to receive updates and to discuss the way ahead, including enforcement actions, prevention, and treatment. It is estimated that there are over 100 overdoses deaths each day in the United States, with more than three out of five overdose deaths involving opioids.
Also yesterday, Attorney General Loretta Lynch, Secretary of Agriculture Tom Vilsack, and Director of National Drug Control Policy Michael Botticelli, joined parents who lost children to overdose to discuss Prescription Opioid and Heroin Epidemic Awareness Week. Parents from across the country met at the White House with Secretary Vilsack and Director Botticelli to share their experiences and efforts to address the opioid epidemic.
President Obama proclaimed September 18-24, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week. During this week, Attorney General Lynch and other Justice Department officials—as well as U.S. Attorney’s Offices and Bureau of Prison facilities across the country—will participate in over 250 different events highlighting the importance of prevention, enforcement, and treatment. The Department of Agriculture will host state forums on the epidemic in Connecticut and Colorado. Secretary of Veterans Affairs Robert McDonald will lead a forum in Washington, DC, on treatment and support for veterans with opioid use disorder. (The Proclamation is attached.)
During yesterday’s gathering of law enforcement at CRPD, United States Attorney Kevin W. Techau provided a summary of the key points discussed at the National Heroin Conference, which was held in Minneapolis, MN earlier in the month. At that conference, the emerging problem of fentanyl, a powerful synthetic opioid that is blamed for a surge of deaths in some parts of the country—including the recent overdose death of Prince—was highlighted at the conference. Speakers at the conference indicated that a multipronged approach was necessary to keep more people from becoming addicted. Techau noted, “We are in the midst of an opioid crisis in our country. Iowa is not immune from problems created by heroin and opioid abuse. A multidisciplinary approach that includes federal, state, and local community agencies is needed to maximize the prevention, law enforcement, and treatment dimensions to meet this challenge.”
CRPD Officer and Coordinator of the Eastern Iowa Heroin Initiative, Al Fear, discussed his efforts to engage and encourage communities to become active partners in fighting back this threat. Citizen involvement at Town Halls held across Eastern Iowa have heard from medical and social service professionals, as well as law enforcement and prosecutors. The FBI and DEA documentary, Chasing the Dragon: The Life of an Opiate Addict, has been shown. A “Call to Action” has been introduced during each community meeting. The pill take back initiative was also updated, which offers Iowans year around opportunities to discard unused, expired and unwanted medications at locations around the state. To find those locations, access the website above and select the same link. Other program initiatives and law changes were discussed. To learn more about these initiatives, visit: www.facebook.com/EasternIowaHeroinInitiative.
Director Dale Woolery with the Governor’s Office of Drug Control Policy also provided updates on the Iowa Office of Drug Control Policy’s initiatives and programs.
The meeting closed with a discussion of the way ahead. Training initiatives with local law enforcement to better understand the administration of Narcan were highlighted. Future town halls and public gatherings will continue to be used to engage and encourage area communities to join the fight against this threat.
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KC Man Indicted for Illegal Firearm, Crack CocaineRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who had a 3-year-old child in the back seat of his car as he pointed a handgun at an undercover officer during a drug buy was indicted by a federal grand jury today for illegally possessing the firearm and distributing crack cocaine.
Chavierre R. Walker, 25, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Walker on Aug. 30, 2016, and includes additional charges. Walker remains in federal custody without bond.
The federal indictment charges Walker with being a felon in possession of a firearm, distributing crack cocaine and possessing a firearm in relation to a drug-trafficking crime.
According to an affidavit filed in support of the original criminal complaint, an undercover detective with the Kansas City, Mo., Police Department and a confidential informant met Walker at a location on Westport Road to make a drug purchase. When Walker arrived at the location, driving a green 1997 Honda Civic, the confidential informant walked over to his vehicle and allegedly paid him $40 for .3 grams of crack cocaine. The undercover detective then went to Walker’s vehicle and allegedly paid him $60 for .6 grams of crack cocaine.
During the purchase, the affidavit says, Walker held a silver Kahr CT9 9mm semi-automatic handgun in his right hand in his lap, pointed in the direction of the undercover detective. A three-year-old child was in the back seat and a female was in the front passenger seat of Walker’s vehicle. The undercover detective believed the placement and position of the firearm, in addition to Walker holding the firearm, was done for the purposes of intimidation or as a means of discouraging the potential of being robbed during the deal.
After the transaction, Walker drove to another location, where he allegedly made another drug transaction, then to a convenience store in the 3700 block of Main Street in Kansas City, Mo. Walker went into the store, and when he came out he was arrested. Officers searched his vehicle and found the loaded handgun, a clear plastic baggie containing approximately 2.2 grams of crack cocaine and ammunition.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Walker has prior felony convictions for robbery, armed criminal action and unlawful use of a weapon.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department.
Justice Department and Los Angeles County Superior Court Reach Agreement to Ensure Access to Justice for Limited English Proficient IndividualsRead the Press Release
LOS ANGELES – The Justice Department today announced an agreement with the Superior Court of California, County of Los Angeles (LASC) to ensure that limited English proficient (LEP) court users will have access to timely and accurate language assistance services.
The agreement resolves a Justice Department investigation of a complaint filed by the Legal Aid Foundation of Los Angeles that alleged the LASC failed to provide LEP individuals with meaningful access to its court services, including civil proceedings and court operations. The complaint alleged a violation of Title VI of the Civil Rights Act of 1964 and its implementing regulations, which prohibit discrimination on the basis of national origin.
“The Los Angeles County Superior Court has accepted the challenge of serving the needs of limited English proficient individuals in one of the most populous and linguistically diverse areas of the country,” said United States Attorney Eileen M. Decker. “Protecting the civil rights of all people within the Central District of California is one of my top priorities as United States Attorney, and today’s agreement serves that goal by giving greater access to the judicial system to individuals so that they may protect their own rights.”
During the investigation, the LASC steadily expanded its provision of interpreter services, which now includes all criminal and the vast majority of civil proceedings, as well as oral and written language assistance in court services. The LASC has agreed to expand free interpreter services to unlimited civil matters – the last remaining case type in which language services are currently not guaranteed – by December 1, 2017. Among other commitments, the court will translate additional documents, provide broader notice about the availability of free interpreter services for court proceedings and make it easier to request an interpreter. The LASC will also continue to seek input from community partners serving LEP populations. Under the terms of the agreement, LASC will provide periodic updates to the Justice Department until the end of 2017.
“We applaud the Los Angeles County Superior Court for committing to protect the rights of all people, whatever their national origin or level of English proficiency, to participate meaningfully, fully and fairly in state court proceedings,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Providing effective language services is essential to vindicating the civil rights of court users and safeguarding the integrity of our justice system.”
While the department’s investigation focused on the LASC, the structure of the California judicial system required the department to review policies circulated and enforced at the state level through the California Judicial Council and its staff. In a 2013 letter sent to the LASC, the Chief Justice of the California Supreme Court and the California Administrative Office of the Courts, the Justice Department identified Title VI compliance concerns, made recommendations to improve compliance and offered to work collaboratively to ensure compliance. LASC representatives helped the California Judicial Council to develop and implement the Strategic Plan for Language Access in the California Courts to ensure meaningful access to court proceedings and other court operations throughout the state’s unified court system. The Justice Department is working separately with the Judicial Council to resolve the portion of the investigation focused on statewide compliance.
This matter was jointly investigated by Assistant United States Attorney Richard Park of the Civil Division in the Central District of California and Attorney Anna Medina of the Civil Rights Division’s Federal Coordination and Compliance Section (FCS).
For more information about FCS’s State Courts Language Access Initiative, a multi-pronged initiative focused on enforcement, technical assistance, outreach, resource development and policy efforts to ensure meaningful access to state courts receiving federal financial assistance, visit www.lep.gov or view a recently released Justice Department publication, “Language Access in State Courts.” To learn more about languages spoken in California or other parts of the United States, click on the language map app available here https://www.lep.gov/maps/.
Justice Department and Los Angeles County Superior Court Reach Agreement to Ensure Access to Justice for Limited English Proficient IndividualsRead the Press Release
The Justice Department announced today it has reached an agreement with the Superior Court of California, County of Los Angeles (LASC) to ensure that limited English proficient (LEP) court users will have access to timely and accurate language assistance services.
The agreement resolves a Justice Department investigation of a complaint filed by the Legal Aid Foundation of Los Angeles. The complaint alleged that LASC failed to provide LEP individuals with meaningful access to its court services, including civil proceedings and court operations, in violation of Title VI of the Civil Rights Act of 1964 and its implementing regulations, which prohibit discrimination on the basis of national origin.
“We applaud the Los Angeles County Superior Court for committing to protect the rights of all people, whatever their national origin or level of English proficiency, to participate meaningfully, fully and fairly in state court proceedings,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Providing effective language services is essential to vindicating the civil rights of court users and safeguarding the integrity of our justice system.”
“The Los Angeles County Superior Court has accepted the challenge of serving the needs of limited English proficient individuals in one of the most populous and linguistically diverse areas of the country,” said U.S. Attorney Eileen Decker of the Central District of California. “Protecting the civil rights of all people within the Central District of California is one of my top priorities as United States Attorney, and today’s agreement serves that goal by giving greater access to the judicial system to individuals so that they may protect their own rights.”
During the investigation, LASC steadily expanded its provision of interpreter services, which now includes all criminal and the vast majority of civil proceedings, as well as oral and written language assistance in court services. LASC has agreed to expand free interpreter services to unlimited civil matters – the last remaining case type in which language services are currently not guaranteed – by Dec. 1, 2017. Among other commitments, the court will translate additional documents, provide broader notice about the availability of free interpreter services for court proceedings and make it easier to request an interpreter. LASC will also continue to seek input from community partners serving LEP populations. Under the terms of the agreement, LASC will provide periodic updates to the Justice Department until the end of 2017.
While the department’s investigation focused on LASC, the structure of the California judicial system required the department to review policies circulated and enforced at the state level through the California Judicial Council and its staff. In a 2013 letter sent to LASC and the chief justice of the California Supreme Court, as well as to the administrative arm of the courts, the department identified Title VI compliance concerns, made recommendations to improve compliance and offered to work collaboratively to ensure compliance. LASC representatives helped the California Judicial Council to develop and implement the Strategic Plan for Language Access in the California Courts to ensure meaningful access to court proceedings and other court operations throughout the state’s unified court system. The department is working separately with the judicial council to resolve the portion of the investigation focused on statewide compliance.
This matter was jointly investigated by Attorney Anna Medina of the Civil Rights Division’s Federal Coordination and Compliance Section (FCS) and Assistant U.S. Attorney Richard Park of the Central District of California.
For more information about FCS’s State Courts Language Access Initiative, a multi-pronged initiative focused on enforcement, technical assistance, outreach, resource development and policy efforts to ensure meaningful access to state courts receiving federal financial assistance, visit www.lep.gov or view a recently released Justice Department publication, “Language Access in State Courts.” To learn more about languages spoken in California or other parts of the United States, click on the language map app available here https://www.lep.gov/maps/.
LASC Letter and Agreement
Justice Department Announces over $4 Million in Grants to Rehabilitate and Reduce Recidivism among Military VeteransRead the Press Release
The Department of Justice today announced awards totaling over $4 million to 13 state and local jurisdictions to help them use evidence-based principles and practices to rehabilitate and ultimately reduce recidivism among military veterans.
The awards, funded under the Bureau of Justice Assistance’s 2016 Adult Drug Court Discretionary Grant Program, provide government court systems with financial and technical assistance to develop and implement Veterans Treatment Courts that tailor substance abuse treatment, mandatory drug testing, sanctions and incentives, and other transitional services for military veterans who are substance abusers. One in six veterans who served in either Operation Enduring Freedom or Operation Iraqi Freedom suffer from substance abuse, according to the nonprofit Justice for Vets.
“Our military veterans often risk life and limb for their country,” said Principal Deputy Associate Attorney General Bill Baer. “We owe our very best to help those who struggle with substance abuse get back on their feet, stay sober and successfully and productively integrate into civilian life.”
Veterans Treatment Courts enable participants’ likelihood of successful rehabilitation through early, continuous and intense judicially-supervised treatment. Veterans Treatment Courts also serve as a “one-stop-shop” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.
Today’s awardees include: Kansas 10th Judicial District Court ($314,494); the 14th Judicial District Attorney’s Office in Louisiana ($350,000); Roseau County ($305,501) and Anoka County ($300,000), both in Minnesota; Miami-Dade County, Florida ($350,000); City of Norfolk, Virginia, Community Service Board ($300,000); the Judiciary Courts of the State of Montana ($300,000); Missouri 22nd Judicial Circuit, St. Louis City Drug Court ($300,000); the Riverside, California, County Probation Department ($300,000) and the Superior Court of California, County of Solano ($296,875); Denton County, Texas ($299,732); La Crosse, Wisconsin, Area Veterans Court ($300,000); and the Administrative Office of Pennsylvania Courts ($300,000).
An additional $144,499 was provided to the National Institute of Corrections to supplement a project to develop, pilot and evaluate a risk assessment tool for justice-involved veterans.
Jamaican National Sentenced to Prison for his Participation in a Jamaica Based Lottery Fraud SchemeRead the Press Release
A Jamaican national was sentenced to 33 months in prison, to be followed by three years of supervised release for his participation in a Jamaica based lottery fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Joseph Conroy Smith, 28, a Jamaican National formerly of Lauderhill, previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Smith was also ordered to pay approximately $100,000 in restitution and ordered to surrender to U.S. Immigration and Customs Enforcement upon completion of his term of incarceration.
According to documents and information presented in court, beginning in or about March 2010, Smith’s co-conspirators contacted elderly victims in the United States and falsely informed them that they had won a lottery. These co-conspirators told victims they had to pay several thousand dollars in taxes and fees in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Smith.
Smith used the aliases of “Brandon Ross,” “Janice Davis,” “Richard Hunt,” and “Calvin Edwards,” to receive money from victims via United States Postal Service Express mail in Broward County, Florida. Smith also recruited others to receive victims’ money via money transfer services and United States Postal Service Express mail. On occasion, Smith also recruited others to send the victims’ money via electronic money transfer services.
Mr. Ferrer commended the investigative efforts of USPIS. Mr. Ferrer also thanked Homeland Security Investigations, the U.S. Marshals Service, Broward County Sheriff’s Office Narcotics Interdiction Task Force and the Miami-Dade Police Department Economic Crimes Unit, for their assistance with this matter. The case was prosecuted by Assistant United States Attorney Bertha R. Mitrani.
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.
Investigators, Prosecutors Combat Financial FraudRead the Press Release
SALEM, Ore. – For the 16th consecutive year, a unique financial crimes conference is being held in Oregon. The Financial Crimes & Digital Evidence Conference brings together fraud fighters from across the country to educate and build networks in an effort to effectively combat financial fraud.
On September 20, 2016, attendees will gather for a three-day conference at the Salem Convention Center to sharpen their financial fraud investigation and prosecution skills. Speakers will address emerging trends in financial and digital crime, including digital forensics, business email compromise scams, cyber credit card fraud, and tax refund schemes. Attendees will learn from case studies in the financial exploitation of elders, real estate fraud, and insurance scams. State and federal agencies will highlight the investigation resources their agencies offer in an effort to encourage partnership and improve outcomes.
Financial fraud results in billions of dollars of losses annually in the United States. Fraud investigators and prosecutors in Oregon are determined to reduce harm to consumers and to hold more offenders accountable.
The 2016 Financial Crimes & Digital Evidence Conference is sponsored by the U.S. Attorney’s Office and the Oregon Department of Justice. Event programming was developed by the Financial Crimes and Digital Evidence Planning Committee, comprised of federal, state, and local law enforcement, prosecution, and fraud investigation leaders and private sector partners.
The conference is open to all city, county, state, and federal law enforcement officers and prosecutors and other fraud investigation, auditing, and security personnel from both the public and private sectors who assist in the investigation of financial crime. For more information, please contact Donna Maddux at [email protected] or visit www.financialcrimesconference.com.
Inmate at FCI-Berlin Pleads Guilty to Weapon PossessionRead the Press Release
CONCORD – United States Attorney Emily Gray Rice announced that Charles Moore, 32, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, pleaded guilty today to possessing contraband in the prison. Moore possessed a homemade weapon made up of a pair of scissors, a pen and shoelaces. The weapon was discovered by prison officials when Moore failed to clear a metal detector screening.
According to documents that were filed in United States District Court, Moore failed to clear a metal detector located within the prison a total of six times. After the sixth failure, Moore was subjected to a visual search. During that search, prison officials discovered the weapon.
A sentencing hearing has been scheduled for January 13, 2017 at 10:00 a.m. Moore faces a maximum sentence of five years. He is subject to the advisory sentencing guidelines which will likely generate a sentencing range that is less than five years.
Moore is currently serving a 200-month sentence for armed bank robbery.
The case was investigated by the Federal Bureau of Prisons and was prosecuted by AUSA Don Feith.
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IRS Revenue Officer Pleads Guilty to Mail and Wire Fraud, Filing and Preparing False Tax Returns, and PerjuryRead the Press Release
This afternoon, at the federal courthouse in Brooklyn, James C. Brewer, a Revenue Officer of the Internal Revenue Service (IRS) who had been assigned to the Edison, New Jersey, IRS office before his arrest, pled guilty to 12 counts of filing or preparing false tax returns, 12 counts of wire fraud, and one count of mail fraud, all in connection with a multi-year scheme to falsify his tax returns and the tax returns of others and to enrich himself with inflated refunds. Brewer also pled guilty to committing perjury in United States Tax Court in 2012.
At sentencing, Brewer faces a maximum term of 20 years’ imprisonment on each wire fraud and mail fraud count, a maximum of three years’ imprisonment on each tax fraud count, and a maximum of five years’ imprisonment on the perjury count. As part of his plea agreement, Brewer agreed to make restitution to the IRS of over $70,000, plus interest and penalties, and he is subject to fines as well.
The plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Newark Field Office, and Rodney A. Davis, Special Agent-in-Charge, Treasury Inspector General for Tax Administration (TIGTA), Washington Field Division. In announcing the guilty plea, Mr. Capers expressed his grateful appreciation to the United States Attorney’s Office for the District of New Jersey, the United States Attorney’s Office for the District of Nevada, IRS-CI, Las Vegas Field Office, and the Treasury Inspector General for TIGTA, Denver Field Division, for their assistance in this case.
According to court filings and statements made during the guilty plea, as part of a scheme to fraudulently reduce his taxable income and increase his tax refunds, Brewer failed to report any income he received for an unauthorized tax preparation business, underreported the gross receipts earned from an Internet retail business, and claimed false dependents on federal tax returns he prepared and filed on his behalf for three tax years. Brewer also engaged in a multi-year scheme in which he prepared and filed false tax returns for others. Brewer listed false dependents and false deductions on these returns, among other materially false information, in order to cause his clients to receive refunds to which they were otherwise not entitled or fraudulently inflate their refunds. In doing so, Brewer listed the names and social security numbers of various individuals on those tax returns as dependents without those individuals’ authorization. Brewer also diverted a portion of those clients’ refunds to himself, in some cases without the clients’ authorization or knowledge. Finally, in an effort to fraudulently obtain for himself a tax credit for first time homebuyers, Brewer lied under oath about his residency when he testified in a matter in the United States Tax Court in New York, New York.
The guilty plea was entered before the Hon. Pamela K. Chen at the United States District Court for the Eastern District of New York.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Tali Farhadian and Moira Kim Penza are in charge of the prosecution.
The Defendant:
JAMES C. BREWER
Age: 39
Staten Island, New YorkE.D.N.Y. Docket No. 15 CR 209 (PKC)
Huntersville, N.C. Man Sentenced to 30 Months for Securities Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Yesterday, Senior U.S. District Judge Graham Mullen sentenced a Huntersville man to 30 months in prison for his role in a securities fraud scheme involving fraudulent bonds, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Charles Edwin Abrams, a.k.a Charles Edwin Klutz and Charles Edwin Donovan, 53, was also ordered to serve two years under court supervision after he is released from prison, to pay $828,284 in restitution to victims, and to undergo mental health treatment.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to information contained in filed documents and yesterday’s sentencing hearing, Abrams and his co-conspirator, Mark Burgin, engaged in a securities fraud scheme by promoting a fraudulent investment known as the Mexican “Pink Lady” Bonds (bonds). Court records indicate that Abrams induced his victims to invest in the fraudulent bond scheme by making numerous false and fraudulent claims about the value of the bonds and the anticipated return on the victims’ investment. For example, according to court records, Abrams told potential investors that the bonds were issued in 1899 by the “United States of Mexico,” that the bonds had a value of 5% interest compounded daily, and that victim investors would receive billions of dollars upon the sale of the bonds. Court records also show that, in furtherance of the conspiracy and to bolster the fraudulent scheme’s credibility, on at least two occasions Abrams introduced Burgin to potential victim investors as a former Special Agent with the FBI. Abrams also represented himself to be a former U.S. Navy SEAL, when in fact he never served in the military.
According to court records, Abrams induced a total of seven known investors to invest $828,284 in the fraudulent bond scheme. Instead of purchasing the bonds with the investors’ funds as promised, the co-conspirators used the money for their personal benefit, including the purchase of luxury vehicles, jewelry, and to pay off investors from previous fraudulent schemes.
During the sentencing hearing, one of Abrams’ victims addressed the Court and spoke of the devastating financial impact she has suffered as result of the scheme, including not being able to retire and that she “no longer trusts anyone.”
Abrams pleaded guilty in May 2016 to one count of wire fraud conspiracy and one count of securities fraud conspiracy. He will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by the FBI. Assistant United States Attorney Kenneth M. Smith, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Harrisburg Businessman Sentenced to 18 Months for Tax FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Paul Biko, age 66, was sentenced yesterday to 18 months in federal prison for tax fraud by Chief United States District Court Judge Christopher C. Conner in Harrisburg.
According to United States Attorney Peter Smith, in 2008, Biko was the owner of three Harrisburg businesses: Clearview of Harrisburg, Clearview Landscaping and Clearview Builders. As owner, Biko controlled the financial affairs of the three companies including all business bank accounts. For the fourth quarter of 2008, Biko’s companies withheld employment taxes from employees but failed to pay to the IRS the federal income taxes and Federal Insurance Contributions Act (FICA) taxes due to the United States. The Court ordered Biko to pay restitution in the amount of $437,336.
The investigation was conducted by the Internal Revenue Service Criminal Investigations. Prosecution was handled by Assistant United States Attorney Joseph J. Terz.
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Hardin County Businessman Indicted for Allegedly Defrauding Banks of More Than $9 MillionRead the Press Release
Jackson, TN – A Hardin County businessman has been indicted for participating in a conspiracy that defrauded three banks of more than $9 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, Charles Ray Smith, of Hardin County, Tennessee, owned and operated Tennessee Material Corporation (TMC), an establishment that sold construction aggregates, primarily limestone, crushed stone, sand and gravel. Smith also owned and operated other businesses, including American Construction; American Cash and Loan; American Coal and Iron; and Louisiana Materials.
Between March 2009 and March 2012, Smith maintained a business checking account at Central Bank for TMC. He had additional bank accounts for TMC at various financial institutions, including First Metro Bank and Wayne County Bank.
Smith conspired with former Central Bank Chief Executive Officer (CEO) Christopher Brent Jerrolds, 54, of Savanah, Tennessee, to execute a scheme that defrauded Central Bank, Wayne County Bank, and First Metro Bank of more than $9 million. Jerrolds pleaded guilty to bank fraud in May 2016 for his role in the conspiracy.
Smith reportedly deposited insufficiently funded checks ("bad checks") into TMC’s account at Central Bank between March 2009 and October 2010. These bad checks were deposited into TMC’s account to cover overdraft balances. When a previously deposited bad check in TMC’s account was returned for insufficient funds, another bad check drawn on one of TMC’s other bank accounts was deposited to replace the previously deposited bad check(s). The deposited amounts and the frequency of deposits increased each month, and at times, multiple checks were deposited on a single occasion.
By October 18, 2010, Smith was responsible for depositing 161 bad checks into TMC’s account with a total transaction amount of approximately $116,169,218. Jerrolds allowed Smith to deposit the bad checks into TMC’s account at Central Bank. The deposit of the bad checks created false balances in TMC’s account. The fraudulent account balances enabled TMC to unlawfully take approximately $3.9 million belonging to Central Bank.
Furthermore, according to the indictment, between March 2010 and March 2012, Smith allegedly received from Jerrolds various Central Bank "letters of credit." The co-conspirators concealed the issuance of the letters of credit from Central Bank; did not enter the letters of credit into the books and records of Central Bank; and did not obtain approval from the Bank’s Board of Directors to issue the letters of credit.
One of the letters was worth $2 million, which Smith used as collateral to obtain a $2 million loan from Wayne County Bank. In obtaining the loan, Smith concealed from the bank his true financial condition and did not disclose that Central Bank’s board of directors did not authorize the letter of credit. Smith used a portion of the proceeds to the $2 million loan to cover some of the bad checks deposited into TMC’s account at Central Bank.
From March 2011 to March 2012, Smith presented additional letters of credit from Central Bank to Wayne County Bank, to replace the prior letters of credit that were expiring.
Between August 2009 to February 2012, Smith used his businesses to obtain multiple loans from First Metro Bank amounting to $1,783,660.44. Smith collateralized the loans with fraudulent letters of credit from Central Bank.
Wayne County Bank and First Metro Bank both made demands on the letters of credit after Smith defaulted on the loans.
On Monday, September 19, 2016, Smith was charged in a nine-count indictment, which includes one count of conspiracy to commit bank fraud and eight counts of bank fraud.
If convicted, Smith faces a sentence of up to five years in federal prison for conspiracy to commit bank fraud and up to 20 years on each count of bank fraud. Smith also faces a fine of up to $250,000 for each count in the indictment.
This case is being investigated by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation.
First Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Matt Wilson are prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Grandview Man Indicted for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Grandview, Mo., man who was arrested during a prostitution sting and hid his pistol in the police patrol car was indicted by a federal grand jury today for illegally possessing a firearm.
Jeffrey T. Arzola, 32, of Grandview, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Arzola on Sept. 6, 2016, which charged him with the same offense. Arzola remains in federal custody without bond.
The federal indictment alleges that Arzola was in possession of a Kel-Tec 9mm pistol on Sept. 1, 2016.
According to an affidavit filed in support of the original criminal complaint, Grandview police officers arrested Arzola and several other individuals during a prostitution sting operation on Sept. 1, 2016. Arzola was taken into custody for possession of methamphetamine and drug paraphernalia and because he had several warrants for his arrest. Arzola had been charged with possession of a controlled substance; when he failed to appear for a court appearance in Cass County, a warrant was issued for his arrest on June 14, 2016.
Arzola and another person were transported to the Grandview Police Department. The next morning, when an officer finished his shift at approximately 6:30 a.m., he conducted a safety check of the rear seat of the patrol car and saw the handle of the Kel-Tec 9mm pistol pushed underneath a small space in the floor board.
Interior video from the patrol car recorded the conversation between Arzola and the other person and their actions. According to the affidavit, Arzola and the other person discussed what to do with the firearm. Arzola slid the firearm over to the other person, the affidavit says, who dropped it on the floor board of the patrol car.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Arzola has prior felony convictions for murder, armed criminal action and criminal possession of a firearm by a felon.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Grandview, Mo., Police Department.
Former Wilkes-Barre Towing Contractor Sentenced to Two and A Half Years Imprisonment for Mail Fraud, Unlawful Possession of A Firearm and Filing A False Income Tax ReturnRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Leo Glodzik, age 45, of Wilkes-Barre, was sentenced today to 30 months in federal prison by U.S. District Court Judge A. Richard Caputo, on charges of mail fraud, being a felon in possession of a firearm, and subscribing to a false federal income tax return. Glodzik was also ordered to pay approximately $299,000 in back federal taxes and penalties and directed to report to the Bureau of Prisons to begin serving his sentence on October 24, 2016.
According to United States Attorney Peter Smith, the charges, filed in March 2016, in part arose as a result of the towing contract Glodzik’s firm, LAG Transport, Inc. (LAG), had with the City of Wilkes-Barre for the exclusive rights to tow all vehicles as requested by the City, and/or the Wilkes-Barre Police Department, the city’s agents. The contract began in January 2005 and was ended in June 2013, after the disclosure of complaints from residents related to LAG’s towing practices, all of which led to the federal investigation.
U.S. Attorney Smith stated that, “Glodzik’s corrupt dealings with the City of Wilkes-Barre, the credit union and elements of the City’s Police Department constituted a sad and sleazy chapter in the city’s history. The honest and hard-working residents, police officers and business people of the community deserve better and the City’s government must ensure that it does not happen again.”
The investigation established that LAG towed vehicles supposedly as the result of accidents, police incidents or vehicle abandonment and took the vehicles to locations owned and controlled by Glodzik.
Glodzik devised a scheme to defraud lawful owners of the vehicles by charging them excessive towing and storage fees for LAG’s services or intentionally hindering the owners’ access to their vehicles creating additional fees. As a result, in some cases, owners signed over the title to vehicles to LAG or Glodzik to discharge the fees.
Glodzik then gained ownership of the vehicles by misusing the abandonment procedures of the Pennsylvania Department of Motor Vehicle (PennDot) to transfer ownership from registered owners to LAG. Forms were submitted to PennDot, using the U.S. Postal Service.
The forms submitted to PennDot stated that vehicles had a value of less than $500, when, in fact, the values were greater. This resulted in Glodzik being able to avoid the requirement that called for legal advertisement of abandoned vehicles and payments to the Commonwealth of Pennsylvania of money received for vehicles sold at auctions for amounts that were above and beyond Glodzik’s own business costs.
As a result of the scheme, Glodzik enriched himself by unlawfully taking ownership of vehicles to which he was not entitled and using intentional misrepresentations to reduce his own expenses and costs.
The fraud scheme is set out in a mail fraud charge in the Criminal Information relating to a vehicle for which a notice of declaration of abandonment was mailed to PennDot in April 2011.
Additionally, Glodzik was charged in the Criminal Information with Federal Income Tax Fraud, specifically, the filing of a federal tax return for 2008, in which he claimed zero taxable income, when, in fact, his actual taxable income for that year was $408,618. Glodzik pleaded guilty on
The Criminal Information also charged Glodzik with being a convicted felon in possession of a firearm. The charge was part of an earlier Indictment of Glodzik by a federal grand jury in Scranton in April 2015. The discovery of the firearms was pursuant to searches of Glodzik’s business and residence. Glodzik pleaded guilty earlier this year pursuant to a plea agreement with the government.
Investigations were conducted by the Federal Bureau of Investigation, the Internal Revenue Service Investigations, and the Pennsylvania State Police as part of continuing inquiries into local government practices and contracting in Luzerne County. Prosecution is assigned to Assistant United States Attorneys Michelle Olshefski and John Gurganus.
Glodzik was previously convicted on state charges in a Pennsylvania State Police investigation. Glodzik was charged in an April 2015 federal indictment with bank fraud in connection with the Wilkes-Barre City Employees Federal Credit Union. A former Wilkes-Barre City police officer and a former credit union employee were charged and pleaded guilty in that investigation. The government agreed to dismiss the bank fraud charge against Glodzik as part of the plea agreement in this case.
Overall, the investigation led to the conviction of four individuals, new management of the credit union and increased oversight of its operations.
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Former United States Immigration and Customs Enforcement Deportation Officer Pled Guilty to Bulk Cash SmugglingRead the Press Release
On September 15, 2016, a former United States Immigration and Customs Enforcement Deportation Officer pled guilty to bulk cash smuggling.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, David P. D’Amato, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR), Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection, Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
Luis De Jesus Alonzo, Jr., 44, of Miami, Florida, pled guilty before Chief U.S. District Judge K. Michael Moore, in Miami, Florida to charges of bulk cash smuggling, in violation of Title 31, United States Code, Section 5332(a). Alonzo faces a statutory maximum sentence of five years’ imprisonment. Alonzo was employed by Immigration and Customs Enforcement as a Deportation Officer until he resigned effective Friday, September 9, 2016, prior to entering his plea of guilty.
According to court records, including a stipulated factual basis in support of Alonzo’s guilty plea, on May 30, 2016, Alonzo travelled from the United States to the Dominican Republic to assist and accompany his co-defendants Mildrey De La Caradid Gonzalez and Milka Yarlin Alfaro when they travelled back to the United States.
On June 4, 2016, Alonzo, Gonzalez, and Alfaro (collectively, the “Defendants”), arrived at Miami International Airport in Miami, Florida from the Dominican Republic. The Defendants presented at least seven pieces of luggage for entry into the United States. Alonzo filled out the required United States Customs and Border Protection Form 6059B (the “Declaration Form”) as the “responsible family member” on behalf of the Defendants. Alonzo declared that he and his co-defendants were not carrying in excess of ten thousand dollars in United States currency. Alonzo presented the Declaration Form to Passport Control officers.
However, at the time Alonzo presented the Declaration Form he knew that the Defendants had in excess of ten thousand dollars hidden within their luggage. Alonzo misrepresented that the Defendants were not carrying in excess of ten thousand dollars in United States currency in order to evade a currency reporting requirement under Title 31, United States Code, Section 5316. During a subsequent search of the Defendants’ luggage, approximately $2,463,759.00 in United States currency was discovered concealed within the luggage in diapers, baby wipes, makeup pouches, and purses, among other things.
Mr. Ferrer commended the investigative efforts of ICE-HSI, ICE-OPR, DHS-OIG, USSS, CBP and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Roxse Homes Worker Sentenced for Taking BribesRead the Press Release
BOSTON – The former assistant property manager of Roxse Homes, a subsidized housing development in Boston, was sentenced today in U.S. District Court in Boston for his role in a scheme to rent apartments at the housing development to individuals who were not qualified in exchange for cash bribes.
Mathis Lemons, 42, of Brockton, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison, one year of supervised release and ordered to pay forfeiture of $18,300. In May 2016, Lemons pleaded guilty to one count of conspiracy and seven counts each of corrupt receipt of payments by a federally funded organization. His co-defendant, Ismael Morales, pleaded guilty to the same charges and was sentenced in August 2016 to two years in prison.
Lemons was the assistant property manager and Morales worked as a maintenance technician for Roxse Homes, a subsidized housing development on Tremont Street in Roxbury. At Roxse Homes, eligible low-income families and individuals can obtain rental housing for a subsidized rate with Section 8 housing benefits from the U.S. Department of Housing and Urban Development. In 2014, there was a shortage of federally subsidized Section 8 housing in Massachusetts, and Roxse Homes maintained a long waitlist of applicants desiring apartments in the complex. The Roxse Homes waitlist had been closed to external applicants since 2009.
From September 2014 to February 2015, Lemons and Morales conspired to rent apartments to individuals who were not eligible for subsidized Roxse Homes apartments because they were not on the waitlist. Morales solicited and accepted money from individuals, and provided those individuals with blank rental applications. Morales also instructed some of the individuals not to date their applications, or to date their applications in 2006 or 2009, when in fact the applications were completed in 2014. Lemons then added the unqualified individuals to the Roxse Homes computerized waitlist, and falsely inputted their application dates as 2006 or 2009.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, New York Regional Office; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Glenn A. Cunha, Inspector General of Massachusetts; and Boston Police Commissioner William B. Evans, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Kristina E. Barclay and Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Former Letter Carrier Sentenced to One Year in Prison for Scheme to Steal and Cash Hundreds of Postal Money OrdersRead the Press Release
NEWARK, N.J. – A Little Egg Harbor, New Jersey, man was sentenced today to 12 months in prison for his role in a scheme to steal and convert hundreds of blank U.S. Postal Service money orders, resulting in nearly $200,000 in losses, U.S. Attorney Paul J. Fishman announced.
Jonel Normil, 26, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to embezzle, convert to his use and the use of others U.S. Postal Service money orders. Judge Arleo imposed the sentence today in Newark federal court.
According to the documents filed in this case, other cases, and statements made in court:
Normil was employed as a letter carrier with the U.S. Postal Service in Cape May Court House, New Jersey. He also picked up and dropped off mail at the U.S. Post Office in Stone Harbor, New Jersey.
Normil admitted that he used his position as a letter carrier to steal hundreds of U.S. Postal Service money orders from the Stone Harbor and Cape May Court House post offices. Normil gave the stolen money orders to other conspirators, who made them look legitimate and imprinted them with dollar values of $900 or $1,000 before depositing them into bank accounts or cashing them at post offices in New Jersey, New York, and Georgia.
In addition to the prison term, Judge Arleo sentenced Normil to three years of supervised release.
U.S. Attorney Fishman credited special agents of the U.S. Postal Service, Office of the Inspector General, under the direction of Executive Special Agent in Charge Monica Weyler of the Eastern Area Field Office, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: H. Robert Boney Esq., Mays Landing, New Jersey
Former Legislative Clerk Sentenced for White Powder Hoax on Floor of Iowa LegislatureRead the Press Release
DES MOINES, IA – On September 19, 2016, Michael Dekota McRae, 28, was sentenced by Chief United States District Court Judge John A. Jarvey to eighteen (18) months imprisonment for conveying false information concerning a biological weapon, announced United States Attorney Kevin E. VanderSchel. McRae was also ordered to pay restitution in the amount of $2,747.50 and a $100.00 special assessment to the Crime Victims’ Fund.
McRae, a former legislative clerk to Iowa State Representative Ako Abdul-Samad, admitted to writing a threatening letter addressed to Representative Abdul-Samad. The letter contained racial slurs and threats to kill both McRae and Representative Abdul-Samad. McRae subsequently inserted the letter, along with a white powdery substance, into an envelope which he placed into a legislative mail receptacle.
On April 3, 2012, McRae opened the threatening letter on the chamber floor during an active session of the Iowa Legislature. When McRae opened the letter the white powder, which McRae included to simulate a biological agent or toxin, was released and came into contact with McRae and Representative Abdul-Samad. McRae admitted to perpetrating the hoax to create fear in others.
When McRae committed the crime, legislation proposing to expand existing Iowa law allowing individuals to defend themselves in their home, business or place of employment, commonly referred to as "stand your ground," was pending before the Iowa Legislature. In the days leading up to the hoax, McRae and others participated in a rally on the steps of the Capitol to protest the proposed legislation, and that rally was mentioned in the threatening letter written by McRae.
This matter was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Iowa State Patrol, the Des Moines Police Department, Des Moines Fire Department Hazardous Materials Team, and the Iowa National Guard 71st Civil Support Team. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Executive Director of Military Charity Indicted for Fraud and Tax EvasionRead the Press Release
WASHINGTON – Patricia Pauline Driscoll, the former executive director of the Armed Forces Foundation, was indicted today on federal charges stemming from a scheme in which she allegedly stole from the non-profit charity, defrauded donors, and lied to the Internal Revenue Service and the public about her salary and benefits.
The indictment was announced by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Driscoll, 38, of Ellicott City, Maryland, will be arraigned at a later date in the U.S. District Court for the District of Columbia. She was named in an indictment charging her with two counts each of wire fraud, mail fraud, and tax evasion, and one count of attempts to interfere with administration of Internal Revenue laws, all federal offenses. She also was charged with first-degree fraud, a District of Columbia offense. The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the alleged fraud scheme.
According to the indictment, until July 2015, Driscoll was the executive director of the Armed Forces Foundation, a tax-exempt non-profit charity based in Washington, D.C. The foundation’s stated mission is to protect and promote the physical, mental, and emotional wellness of military service members, veterans, and their families.
While Driscoll was the executive director, in its promotions and requests for money, the Armed Forces Foundation claimed that 94 - 96% of all donations went directly to military members and their families through the charity’s programs. As a “highly compensated individual,” Driscoll’s salary and benefits were required to be disclosed on forms (called “Form 990”) to be filed each year with the IRS. These publicly available documents are often used by charity watch groups and donors to judge worthiness of the charity and by the IRS to determine whether the organization was operating with IRS law and regulations.
The indictment alleges that Driscoll caused false reports to be filed on the Form 990s in a number of ways. She is accused, for example, of failing to include the fact that she received commissions from fundraising, the amounts of commissions that she received from fundraising, and the other benefits that she received. Driscoll also is accused of falsely categorizing and causing others to falsely categorize expenses in the Armed Forces Foundation’s books and records as being for the benefit of the veterans, troops, and their families, when, in fact, they were for her own private benefit. Driscoll also is accused of concealing from the foundation’s accountants the money she took from the charity, such as rent that was paid for the use of office space in a building that she co-owned. Additionally, she is accused of falsely reporting and causing others to falsely report the amount of donations received by the foundation on Form 990s, by inflating the amounts of donations, incorrectly listing the types of donations, and including donors who did not, in fact, actually donate. The indictment further alleges that Driscoll sent false and fraudulent Form 990s to members of the foundation’s Board of Directors and to the IRS, and caused to be published Form 990s, containing false and fraudulent information, on the foundation’s website, knowing that they would be available and viewed by charity watch groups, potential donors, and others.
The indictment also alleges that Driscoll took the foundation’s money for her own personal use and to pay her for-profit business expenses. Finally, the indictment charges tax evasion for tax years 2012 and 2013.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge Jankowski commended the work performed by Special Agents from the FBI and the IRS. They also acknowledged the efforts of those working at the U.S. Attorney’s Office, including former Paralegal Specialist Corinne Kleinman; Paralegal Specialist Kaitlyn Kruger; Information Technology Specialist Leif Hickling; Litigation Technology Supervisor Josh Ellen, and Assistant U.S. Attorney Diane Lucas, of the Asset Forfeiture and Money Laundering Section. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Former Executive Director of Military Charity Indicted for Fraud and Tax EvasionRead the Press Release
Defendant Accused of Stealing from Charity, Defrauding Donors, Lying to IRS
The former executive director of the Armed Forces Foundation was indicted today on federal charges stemming from a scheme in which she allegedly stole from the non-profit charity, defrauded donors, and lied to the Internal Revenue Service (IRS) and the public about her salary and benefits.
The indictment was announced by U.S. Attorney Channing D. Phillips for the District of Columbia, Assistant Director Paul M. Abbate in Charge of the FBI’s Washington Field Office and Special Agent in Charge Thomas Jankowski of the Washington Field Office of the IRS-Criminal Investigation.
Patricia Pauline Driscoll, 38, of Ellicott City, Maryland, will be arraigned at a later date in the U.S. District Court for the District of Columbia. She was named in an indictment charging her with two counts each of wire fraud, mail fraud and tax evasion and one count of attempts to interfere with administration of Internal Revenue laws, all federal offenses. She also was charged with first-degree fraud, a District of Columbia offense. The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the alleged fraud scheme.
According to the indictment, until July 2015, Driscoll was the executive director of the Armed Forces Foundation, a tax-exempt non-profit charity based in Washington, D.C. The foundation’s stated mission is to protect and promote the physical, mental and emotional wellness of military service members, veterans and their families.
While Driscoll was the executive director, in its promotions and requests for money, the Armed Forces Foundation claimed that 94 - 96 percent of all donations went directly to military members and their families through the charity’s programs. As a “highly compensated individual,” Driscoll’s salary and benefits were required to be disclosed on forms (Form 990) to be filed each year with the IRS. These publicly available documents are often used by charity watch groups and donors to judge worthiness of the charity and by the IRS to determine whether the organization was operating with IRS law and regulations.
The indictment alleges that Driscoll caused false reports to be filed on the Form 990s in a number of ways. She is accused, for example, of failing to include the fact that she received commissions from fundraising, the amounts of commissions that she received from fundraising and the other benefits that she received. Driscoll also is accused of falsely categorizing and causing others to falsely categorize expenses in the Armed Forces Foundation’s books and records as being for the benefit of the veterans, troops and their families, when, in fact, they were for her own private benefit. Driscoll also is accused of concealing from the foundation’s accountants the money she took from the charity, such as rent that was paid for the use of office space in a building that she co-owned. Additionally, she is accused of falsely reporting and causing others to falsely report the amount of donations received by the foundation on Form 990s, by inflating the amounts of donations, incorrectly listing the types of donations and including donors who did not, in fact, actually donate. The indictment further alleges that Driscoll sent false and fraudulent Form 990s to members of the foundation’s Board of Directors and to the IRS and caused to be published Form 990s, containing false and fraudulent information, on the foundation’s website, knowing that they would be available and viewed by charity watch groups, potential donors and others.
The indictment also alleges that Driscoll took the foundation’s money for her own personal use and to pay her for-profit business expenses. Finally, the indictment charges tax evasion for tax years 2012 and 2013.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Phillips, Assistant Director in Charge Abbate and Special Agent in Charge Jankowski commended the work performed by Special Agents from the FBI and the IRS. They also acknowledged the efforts of those working at the U.S. Attorney’s Office, including former Paralegal Specialist Corinne Kleinman; Paralegal Specialist Kaitlyn Kruger; Information Technology Specialist Leif Hickling; Litigation Technology Supervisor Josh Ellen and Assistant U.S. Attorney Diane Lucas, of the Asset Forfeiture and Money Laundering Section. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Former Employee of Sporting Goods Distributor Sentenced to over 3 Years for Embezzling nearly $370,000 from Orange County CompanyRead the Press Release
SANTA ANA, California – A former office manager for an independent sporting goods distributor has been sentenced to 37 months in federal prison for embezzling nearly $370,000 from her Los Alamitos-based employer.
Julianna James England, 51, of Cedar Rapids, Iowa, was sentenced yesterday by United States District Judge James V. Selna. In addition to the prison term, Judge Selna ordered England to pay $368,152 in restitution.
Following a trial in February, England was found guilty of three wire fraud charges for using company checks and credit cards to embezzle money from her former employer, Callan Western Sales Company (CWS).
The evidence at trial showed that England used company credit cards and wrote company checks to herself to obtain the company’s funds. As part of her scheme, she altered company records and created false bank stubs to give to the company’s accountant.
“This defendant’s embezzlement required the owners to use personal funds in an attempt to keep the company afloat, but the business was forced to close,” said United States Attorney Eileen M. Decker. “This crime had a devastating impact on the company, its owners and its employees.”
England was hired by CWS in 2000 to be a part-time secretary and office manager in charge of office administration, which included preparing checks for the signature of Michael Callan, the company’s founder. England was also in charge of maintaining the company’s check ledger, coding the payments, and providing monthly bank statements to the company’s accountant.
From March 2003 until July 2007, England wrote at least 55 checks payable to either herself or her creditors totaling more than $33,000. To cover her tracks, England wrote false notations on the check stubs to indicate payment to a legitimate company vendor. After using these checks for her personal use, she altered the company’s bank statements and provided these altered statements to the CPA.
England also used company credit cards for unauthorized expenses which totaled nearly $280,000. She used Visa and American Express credit cards issued to CWS for personal expenses and made unauthorized online payments from the company’s bank account in an attempt to conceal the unauthorized purchases.
“Ms. England used her position of trust to take advantage of a small business whose owners employed her for several years and which, ultimately, was rendered insolvent due to her criminal actions,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Agents and detectives at the FBI and the Los Alamitos Police Department should be commended for their investigation of this fraud, and for building a case for prosecutors to deliver justice to the victim company.”
England has been in custody since her conviction earlier this year.
England is also facing federal charges in the Eastern District of Arkansas for making false statements to the Social Security Administration to obtain disability benefits. She is scheduled to go on trial in that case in January.
This case was the product of an investigation by Federal Bureau of Investigation and the Los Alamitos Police Department. This case was prosecuted by Assistant United States Attorney Gregory W. Staples.
Former Corrections Officer Pleads Guilty to Distribution of MarijuanaRead the Press Release
G.F. Peterman, III, United States Attorney for the Middle District of Georgia, announces James Royal, age 43, of Cuthbert, Georgia pled guilty September 20, 2016 to distribution of marijuana in front of the Honorable Clay D. Land, United States District Court Judge, in Columbus, Georgia.
Mr. Royal was a corrections officer at the Immigration and Customs Enforcement facility in Lumpkin, Georgia. Between November 2015 and January 2016, Mr. Royal smuggled marijuana into the prison and sold it to the inmates. He received payment from inmates, and/or friends of inmates, via Western Union. The money was sent to a convenience store in Cuthbert, Georgia, where Mr. Royal would pick it up.
Sentencing has been set for January 17, 2017. Mr. Royal faces up to five years in prison.
The case was investigated by Department of Homeland Security. United States Attorney Mel Hyde is prosecuting the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Florida Man Who Admitted Defrauding Multiple Factoring Businesses for over $800,000 Gets More Than Four Years in PrisonRead the Press Release
NEWARK, N.J. - A Seminole, Florida, man was sentenced today to 51 months in prison for using phony invoices to defraud multiple factoring businesses, including one based in Bergen County, New Jersey, U.S. Attorney Paul Fishman announced.
Karl Stehlin, a/k/a “Mark Sawyer,” 61, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of an indictment charging him with wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stehlin admitted that from June 2014 through September 2014, he defrauded a Bergen County factoring business that purchased accounts receivable in return for short term financing. Stehlin created a bogus Idaho-based company, Sawyer Express Transportation Inc., and emailed accounts receivable invoices to the factoring company for transportation services that were never provided. As a result, Stehlin was able to defraud the factoring company out of $220,000 in advance payment on those invoices.
During his plea hearing, Stehlin also admitted using the same methods to defraud a Glendale, California, factoring business out of $127, 953.34 and a Las Vegas factoring business out of $524,025.28.
In addition to the prison term, Judge Martini ordered Stehlin to serve three years of supervised release and pay restitution of $837,618.29.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked special agents of the FBI Tampa Division, under the direction of Special Agent in Charge Paul Wysopal, for their assistance.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Acting Chief Barbara Ward of the Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
Final Defendants in Multi-Million Dollar Health Care Fraud and Money Laundering Case Sentenced to Federal Prison TermsRead the Press Release
LOS ANGELES – With the final defendant receiving a prison term yesterday, six defendants who participated in a multi-million dollar health care fraud scheme or helped launder the illicit proceeds have now been sentenced to federal prison.
Edgar Pogosian, also known as “Edgar Hakobyan,” 32, of Glendale, was sentenced yesterday to 18 months in prison. Pogosian was found guilty earlier this year of conspiring to commit money laundering and one count of money laundering.
“Over the course of nearly seven years, this defendant engaged in a wide-ranging money laundering conspiracy in which he received 150 checks and personally laundered over $700,000 in health care fraud proceeds,” said United States Attorney Eileen M. Decker. “All of the defendants in this case played a vital role in a scheme that bilked the taxpayers who finance Medicare and utilized sophisticated money laundering techniques to hide their crimes.”
Over the past month, United States District Judge Philip S. Gutierrez sentenced two other defendants involved in the scheme:
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Karen “Gary” Sarkissian, 44, also of Glendale was sentenced on September 12 to 57 months in federal prison after the same jury that convicted Pogosian found him guilty of conspiring to commit money laundering, six counts of money laundering and five counts of health care fraud; and
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L’Tanya Smith, 58, of Ladera Heights, was sentenced on August 22 to 57 months imprisonment after she pleaded guilty to five counts of health care fraud.
Pogosian and Sarkissian were found guilty in February by a federal jury following a four-week trial before Judge Gutierrez. Smith pleaded guilty on the eve of trial.
Sarkissian operated a clinic on Sunset Boulevard in Echo Park and worked there with Smith, a physician’s assistant. Between July 2009 and March 2010, Smith prescribed or ordered medically unnecessary tests and services, some of which were never provided to the patients. Those prescriptions and orders led to more than $1.2 million in fraudulent claims to Medicare from the Sunset clinic. Other providers that received referrals from the Sunset clinic submitted another $10 million in fraudulent claims to Medicare.
“Laundering money does not make the criminals clean,” said Chris Schrank, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General. “Dirty money will be tracked down, reclaimed and those responsible will pay the price. We will work to protect Medicare from illicit drains on the resources it needs to care for the nation’s most vulnerable population.”
Sarkissian also participated in a scheme that laundered the fraudulent proceeds generated through the Sunset Clinic through five bogus corporations set up by two other men, Khachatour Hakobyan (Pogosian’s uncle) and Aram Aramyan, who were previously convicted and sentenced in this case.
Hakobyan, 48, of Glendale, who prosecutors argued was the overall leader of the scheme, was sentenced in January 2016 to 57 months in prison and was ordered to pay $606,681 in restitution after he pleaded guilty to conspiring to launder health care fraud proceeds through the five sham corporations and underreporting his income from the conspiracy on his federal income tax returns. Aramyan, 60, of Glendale, was sentenced in November 2015 to 51 months in prison on similar charges and was ordered to pay $353,669 in restitution.
Hakobyan and Aramyan deposited millions of dollars in fraudulent proceeds into bank accounts for the five sham companies and then wrote checks from these corporations to themselves and their relatives, including Pogosian, who was found guilty based on evidence that he received more than $700,000 in checks from the sham corporations that he either cashed or deposited in his own bank accounts.
“Federal benefit programs such as Medicare are for the benefit of the American taxpayer, not the benefit of the common criminal,” said Anthony J. Orlando, the Acting Special Agent in Charge of IRS Criminal Investigation. “The sentences handed down to the defendants in this case demonstrates that crime costs criminals their freedom. IRS Criminal Investigation, in conjunction with our law enforcement partners, will continue to pursue and prosecute those who take advantage of programs meant for the public good.”
With these most recent sentences, six defendants have now been sentenced in relation to a health care fraud scheme related to multiple medical clinics, a durable medical equipment supplier and an independent diagnostic testing facility.
The sixth defendant, a doctor associated with one of those clinics – Claude R. Cahen, 74, of Santa Monica – pleaded guilty to conspiring to commit health care fraud and was sentenced to 12 months and one day of imprisonment in March 2016.
This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS Criminal Investigation.
The case was prosecuted by Assistant United States Attorneys Cathy J. Ostiller, Kristen A. Williams and Cassie D. Palmer.
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Federal Jury Finds a Serial Bank Robber Guilty of Three Counts of Bank RobberyRead the Press Release
TULSA, Okla.—A jury in the United States District Court found Jesse Bud Leaverton, 58, guilty of three counts of Bank Robbery, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. The trial was presided over by United States District Court Chief Judge Gregory K. Frizzell and he will sentence Leaverton on December 20, 2016.
According to the evidence at trial, Leaverton went on a bank robbery spree that begun on June 18, 2016, with the robbery of the Arvest Bank at 218 South Memorial Drive in Tulsa when Leaverton handed a teller a threatening note demanding money and stating that he had a gun and would use it if necessary.
On June 23, 2016, Leaverton robbed Bank of America at 5950 East Admiral in Tulsa with another threatening note to a teller that demanded money and stated that he had a gun and would be “watching her.”
The next day, June 24, 2016, Leaverton robbed Security State Bank in Fairfax, Oklahoma, by again handing a teller a threatening note that stated that he had a gun and a knife and would kill her. After taking the money, Leaverton reminded the teller that he would kill her.
Leaverton was located by the United States Marshals Violent Crimes Task Force in Missouri on June 30, 2016. The Federal Bureau of Investigation recovered cash receipts, camping equipment, and a new car title from Leaverton’s car. Additionally, FBI agents also found clothing and eyeglasses similar to the ones Leaverton wore during the bank robberies.
This case was investigated by the Federal Bureau of Investigation, the Tulsa Police Department, the Osage County Sherriff’s Office, the Talala Police Department, and the United States Marshals Violent Crimes Task Force. Assistant United States Attorney Neal C. Hong prosecuted the case.
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El Departamento De Justicia Y El Tribunal Superior Del Condado De Los Ángeles Llegan A Un Acuerdo Para Garantizar La Igualdad De Acceso A La Justicia Para Personas Con Conocimientos Limitados Del InglésRead the Press Release
El Departamento de Justicia anunció hoy que llegó a un acuerdo con el Tribunal Superior de California, Condado de Los Ángeles (LASC, por sus siglas en inglés) para garantizar que los usuarios del tribunal con dominio limitado del inglés [limited English proficient (LEP)] tengan acceso a servicios oportunos y precisos de asistencia idiomática.
El acuerdo resuelve una investigación del Departamento de Justicia sobre una demanda entablada por la Legal Aid Foundation of Los Angeles. La demanda alegaba que el LASC no les brindaba a las personas con LEP un acceso significativo a sus servicios judiciales, entre ellos procedimientos civiles y operaciones judiciales, en violación del Título VI de la Ley de Derechos Civiles de 1964 y sus regulaciones de implementación, que prohíben la discriminación por motivo de origen nacional.
“Felicitamos al Tribunal Superior del Condado de Los Ángeles por comprometerse a proteger los derechos de todas las personas, sin importar su origen nacional ni su nivel de conocimientos del inglés, para que participen de manera significativa, plena y justa en los procedimientos judiciales del estado,” declaró La Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, Jefa de la División de Derechos Civiles del Departamento de Justicia. “Ofrecer servicios idiomáticos eficaces es esencial para reivindicar los derechos civiles de los usuarios de los tribunales y resguardar la integridad de nuestro sistema judicial.”
“El Tribunal Superior del Condado de Los Ángeles ha aceptado el desafío de satisfacer las necesidades de personas con conocimientos limitados del inglés en una de las áreas más pobladas y con mayor diversidad lingüística del país,” declaró la Fiscal Federal Eileen Decker del Distrito Central de California. “Proteger los derechos civiles de todas las personas dentro del Distrito Central de California es una de mis prioridades principales como Fiscal Federal, y el acuerdo de hoy contribuye a ese objetivo al darles mayor acceso al sistema judicial a las personas para que puedan proteger sus propios derechos.”
Durante la investigación, el LASC expandió constantemente su oferta de servicios de intérpretes, que actualmente incluye todos los procesos penales y la gran mayoría de los procesos civiles, así como también asistencia idiomática oral y escrita en los servicios del tribunal. El LASC aceptó expandir los servicios de intérpretes gratuitos a asuntos civiles ilimitados – el último tipo de caso restante en el que actualmente no se garantizan los servicios idiomáticos – antes del 1 de diciembre de 2017. Entre otros compromisos asumidos, el tribunal traducirá documentos adicionales, ofrecerá avisos más amplios sobre la disponibilidad de servicios de interpretación gratuitos para los procedimientos judiciales y hará que sea más fácil solicitar un intérprete. El LASC también seguirá pidiendo la opinión de asociados comunitarios que brindan servicios a poblaciones con LEP. Bajo los términos del acuerdo, el LASC actualizará periódicamente al Departamento de Justicia hasta el final del 2017.
Si bien la investigación del departamento se enfocó en el LASC, la estructura del sistema judicial de California exigió que el departamento revisara políticas circuladas e implementadas a nivel estatal a través del Consejo Judicial de California y su personal. En una carta de 2013 al LASC, el juez principal de la Corte Suprema de California y el brazo administrativo de los tribunales, el departamento identificó inquietudes respecto del cumplimiento del Título VI, hizo recomendaciones para mejorar el cumplimiento y se ofreció a trabajar de manera colaborativa para asegurar el cumplimiento. Representantes del LASC ayudaron al Consejo Judicial de California a desarrollar e implementar el Plan Estratégico para el Acceso Lingüístico en los Tribunales de California para garantizar un acceso significativo a los procedimientos judiciales y otras operaciones de los tribunales en todo el sistema unificado de tribunales del estado. El departamento está trabajando por separado con el consejo judicial para resolver la parte de la investigación enfocada en el cumplimiento en todo el estado.
El caso fue investigado de manera conjunta por la abogada Anna Medina de la Sección de Coordinación y Cumplimiento Federal [Federal Coordination and Compliance Section (FCS)] de la División de Derechos Civiles y el Fiscal Federal Auxiliar Richard Park del Distrito Central de California.
Para obtener más información sobre la Iniciativa de Acceso Lingüístico a los Tribunales Estatales de la FCS, una iniciativa múltiple enfocada en la coacción, la asistencia técnica, la extensión pública, el desarrollo de recursos y los esfuerzos a nivel de políticas para garantizar un acceso significativo a los tribunales estatales que reciben asistencia financiera federal, visite www.lep.gov o consulte la publicación recién divulgada del Departamento de Justicia, “Language Access in State Courts” [Acceso Lingüístico en los Tribunales Estatales]. Para obtener más información sobre los idiomas hablados en California y otras partes de los Estados Unidos, haga clic en la aplicación de mapa de idiomas disponible aquí: https://www.lep.gov/maps/.
Detroit Doctor Sentenced for Unlawful Opioid PrescriptionsRead the Press Release
A physician who practiced in Detroit, Michigan, was sentenced to 12 months and one day in prison today for writing prescriptions for oxycodone and other controlled medications without medical justification, announced U.S. Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent Timothy Plancon, Drug Enforcement Administration, Detroit Division.
Lauran Bryan, 57, a plastic surgeon living in Farmington Hills, Michigan, was sentenced by U.S. District Judge Matthew Leitman in Detroit, Michigan.
From 2011 through 2015, Bryan wrote prescriptions for tens of thousands of oxycodone and other controlled medications for patients, some of whom she knew to be addicted to the drugs, for no legitimate medical reason. She also wrote prescriptions in the names of associates of her patients, knowing that the associates would provide the pills to the addicted patients.
Bryan’s unlawful prescribing was somewhat unusual, in that her motive appears to have been to keep traffic coming to her struggling plastic surgery practice, rather than simply to sell opioid prescriptions for cash profit.
United States Attorney McQuade said, “Doctors who divert drugs to the street market are contributing to the overdose epidemic that kills 44 people every day in the United States. We are focusing our efforts on bringing corrupt doctors and pharmacists to justice.”
Defendants Plead Guilty to Methamphetamine ChargesRead the Press Release
ABINGDON, VIRGINIA – Four Southwest Virginia residents pled guilty in recent weeks in Federal Court to charges related to the manufacturing of methamphetamine, United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring announced.
Dana Lynn Vanmeter, 44, of Glade Spring, Virginia, pled guilty on August 4, 2016, to one count of conspiring to manufacture methamphetamine, one count of using or maintaining a place for the purpose of manufacturing, distributing, and using methamphetamine, and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present.
April Darlene Fields, 37, of Glade Spring, Virginia, pled guilty on September 19, 2016, to one count of conspiring to manufacture methamphetamine and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present.
John Steven Fields, 40, of Abingdon, Virginia, and Shauna Danielle Davie, 25, of Meadowview, Virginia, both plead guilty in July 2016 to one count each of conspiring to manufacture methamphetamine.
“Manufacturing methamphetamine is an inherently dangerous process and creates a significant risk of harm to our communities. Our office takes these cases very seriously, particularly where children are present or reside, and will continue to vigorously prosecute these offenses,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners in law enforcement to slow the spread of this deadly drug throughout Virginia.”
“Methamphetamine is a highly dangerous, addictive drug that can and has caused tremendous destruction in families across Virginia,” stated Virginia Attorney General Mark R. Herring. “We are doing everything in our power to educate the public about the dangers of this drug and prosecute those that manufacture and bring it into our state, endangering the safety of our children and communities. Public safety is our number one priority.”
Agencies involved in this investigation included the Washington County Sheriff’s Office, Town of Abingdon Police Department, Town of Damascus Police Department, and the Drug Enforcement Administration. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, is prosecuting the case for the United States.
Davenport Man Sentenced to Prison for Felon in Possession of Stolen Firearms ChargeRead the Press Release
DAVENPORT, IA – On September 15, 2016, Xavier Elfonsto Buckner, 27, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 96 months in prison for felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Buckner was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
Buckner was found guilty of felon in possession of a firearm after a three day jury trial ending on May 11, 2016.
At trial, evidence was presented that on August 3, 2015, there was a shooting in the 700 block of West 14th Street, Davenport, Iowa. Witnesses identified Buckner as the shooter. Officers collected spent casings from the scene and a warrant was issued for Buckner’s arrest. On August 11, 2015, officers in the area of 700 West 14th Street saw Buckner in the passenger seat of a vehicle and attempted to stop the vehicle. The vehicle fled from officers, exceeding the speed limit by 25 miles per hour in residential neighborhoods and disobeying many traffic devices. The chase ended when multiple police cars blocked in the vehicle. A stolen, loaded .380 caliber handgun was found on the back passenger floorboard and identified as belonging to Buckner.
A DCI criminalist compared the four casings collected from the scene on August 3, 2015, to the weapon found in the vehicle on August 11, 2015, and concluded that the casings were fired from that weapon.
Buckner has prior felony convictions for reckless use of a firearm in 2006 and third degree burglary in 2008.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
- Criminal Complaint in U.S. v. Ahmad Khan Rahami
Correction Officer Pleads Guilty in Cover-Up of Beating and Death of Inmate at Rikers IslandRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the guilty plea of New York City Correction Officer BYRON TAYLOR in connection with efforts to cover up the cause of the death of Ronald Spear, a pre-trial detainee at Rikers Island. TAYLOR pled guilty to perjury and conspiracy to obstruct justice in connection with his actions following Spear’s death, after lying repeatedly about his actions and those of other correction officers to a federal grand jury investigating Spear’s death. TAYLOR pled guilty before U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “As he admitted today, New York City Correction Officer Byron Taylor conspired to cover up the beating and death of Ronald Spear, a detainee at Rikers Island. Taylor lied to a federal grand jury and together with others concocted a story that blamed the victim – who had serious physical ailments – for starting an altercation with correction officers. This Office is committed to ensuring that incarcerated people are treated fairly and protected from abuse by the correction officers sworn to both guard and protect them.”
According to the Indictment, Superseding Indictment, and Complaint[1] filed in this case, and statements made during the plea proceeding:
Rikers Island is a jail complex located in the Bronx, New York, and is maintained by the New York City Department of Correction. At the time of his death, Ronald Spear was a pretrial detainee incarcerated on Rikers Island in the North Infirmary Command, a facility housing detainees who have serious physical ailments or conditions requiring medical supervision and intervention. Spear was suffering from end-stage renal disease, which required him to receive dialysis treatments, and wore a bracelet indicating that he was at “Risk of Fall.” Spear typically walked with a cane.
In the early morning hours of December 19, 2012, Spear left the housing area in the infirmity unit in an attempt to see the on-duty doctor. Spear was stopped outside the doctor’s office by a correction officer. When Spear was told the doctor was not available to see him at that time, an altercation between officers and Spear ensued, and Spear was pronounced dead at the scene shortly afterward.
After Spear’s death, TAYLOR and others covered up the true cause of Spear’s death by concocting a false story that portrayed Spear as the aggressor. Consistent with their agreement, correction officers filed false Use of Force reports with the Department of Correction and lied repeatedly to Department of Correction investigators, to the Bronx District Attorney and, in TAYLOR’S case, to a federal grand jury.
* * *
BYRON TAYLOR, 32, of Brentwood, New York, pled guilty to one count of perjury, which carries a maximum sentence of five years in prison, and one count of conspiracy to obstruct justice, which carries a maximum sentence of 20 years in prison.
TAYLOR is scheduled to be sentenced by Judge Preska on December 20, 2016.
ANTHONY TORRES, 60, of New Rochelle, New York, previously pled guilty to one count of conspiracy to obstruct justice and file false reports, which carries a maximum penalty of five years in prison, and one count of filing a false report, which carries a maximum sentence of 20 years in prison.
The trial of a third defendant, BRIAN COLL, is scheduled to commence on October 18, 2016, in front of Judge Preska. The charges against Brian Coll are merely accusations, and Coll is presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the FBI and the Criminal Investigators at the United States Attorney’s Office. Mr. Bharara also thanked the New York City Department of Correction, Investigative Division, and the Bronx District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Brooke E. Cucinella, Jeannette A. Vargas, and Martin S. Bell are in charge of the prosecution.
[1] As to Brian Coll, as the introductory phrase signifies, the text of the Complaint, Indictment, and Superseding Indictment constitute only allegations and every fact described should be treated as an allegation.
Convicted Sex Offender Sentenced to Ten Years in Prison in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – On Monday, September 19, 2016, U.S. District Judge Marco H. Hernandez sentenced Samuel Ira Dowell to 10 years in federal prison and 15 years’ supervised release after the defendant pleaded guilty to possession of child pornography. Dowell, 31, was on post-prison supervision following an Oregon state conviction for attempted first-degree sexual abuse when he committed the offense for which he was sentenced.
In the federal case, Dowell met a 13-year-old girl on an Internet website and exchanged sexually explicit correspondence with her online and by telephone for a period of time. They spoke of meeting in person, engaging in various sexual activities, and having children together. Dowell’s activities came to light after the victim’s mother discovered their communications and reported them to her local police department. Investigators identified Dowell and learned that he was a convicted sex offender living in Oregon. During a home visit, Dowell’s probation officer discovered evidence of his communications with the victim. A forensic examination of the defendant’s computer equipment revealed sexually explicit images and videos of the victim and other children. Dowell and the victim, who lives in another state, never met in person.
Judge Hernandez described the nature and circumstances of the offense as “horrible,” and Dowell’s history and character as “deeply disturbing.” Seeing Dowell as a danger to the community, particularly to children, Judge Hernandez imposed a lengthy and stringent list of conditions with which Dowell must comply while on supervised release. These include prohibitions on contact with minors (including the victim and her family), a requirement to undergo mental health and sex offender treatment, restrictions on where Dowell may work and reside, and restrictions on computer usage and access to the Internet. Dowell, who told Judge Hernandez that he was prepared to accept the consequences of his actions, will also be required to register as a sex offender.
“The defendant’s conduct in this case is alarming,” said Billy J. Williams, United States Attorney for the District of Oregon. “Dowell is a convicted sex offender who took advantage of a vulnerable adolescent girl he met online and continued to exploit her, even after her mother attempted to intervene. This sentence,” continued U.S. Attorney Williams, “is a significant sanction for very troubling behavior that we, as a society, are simply not willing to tolerate.”
The investigation was a collaborative effort on the part of the local police department in the victim’s hometown, the Multnomah County Department of Community Justice, the Multnomah County Sheriff’s Office, and the U.S. Department of Homeland Security, Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. 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.
Cleaning Company Owner Pleads Guilty to Federal Charge Stemming from Employee Kickback SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that ANTHONY DIAZ, 62, of Monroe, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill to one count of making a false statement to federal agents during an investigation of an employee kickback scheme.
According to court documents and statements made in court, DIAZ is a co-owner of Advantage Cleaning, LLC, which provides custodial services and final cleaning for construction job sites, and he is a manager at Advantage Maintenance, Inc., a janitorial cleaning and maintenance service company. An investigation revealed that undocumented employees of Advantage Cleaning and Advantage Maintenance were required to kick back a large portion of the pay they received for work they performed on prevailing wage jobs to DIAZ. Employees who were paid between $37 and $41 per hour would cash their paychecks and would return approximately $25 for each our worked to DIAZ.
On September 26, 2014, DIAZ was interviewed by special agents from the U.S. Department of Labor – Office of Inspector General and Internal Revenue Service – Criminal Investigation Division. During the interview, DIAZ was questioned about cash kickbacks he had allegedly received and whether Advantage Cleaning or Advantage Maintenance had employed any undocumented workers. DIAZ denied all of the allegations against him and made several false statements.
In pleading guilty, DIAZ admitted that he had received cash kickbacks from his employees.
Judge Underhill scheduled sentencing for January 10, 2017, at which time DIAZ faces a maximum term of imprisonment of five years and a fine of up to $250,000.
This matter is being investigated by the U.S. Department of Labor – Office of Inspector General and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
California Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Raymond Carter, 72, of Rancho Cordova, Calif., pled guilty today to a charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Carter pled guilty in the U.S. District Court for the District of Columbia. He is to be sentenced Dec. 7, 2016, by the Honorable Tanya S. Chutkan. Carter faces a statutory maximum of 30 years in prison and a potential fine of up to $250,000. Under federal sentencing guidelines, he faces a likely range of 210 to 262 months in prison and a fine of up to $200,000. He also will be required to register as a sex offender for 25 years upon his release from prison.
According to the government's evidence, on May 6, 2016, Carter began communicating with an undercover officer with the FBI's Child Exploitation Task Force who purported to have access to a juvenile. Carter then began a series of text message conversations with the undercover officer in which he indicated that he would be traveling to Washington, D.C. As their conversations continued, he arranged to meet on May 10, 2016. When he arrived at a pre-arranged meeting place in Washington, D.C., he was arrested. He has been in custody ever since.
During his conversations with the undercover officer, according to the government’s evidence, Carter made reference to a previous arrest that led to his conviction in another federal child exploitation case. In that case, which was filed in the Eastern District of California, Carter was sentenced in 2005 to a three-year prison term and ordered to register as a sex offender.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Interim Chief Newsham praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Andrea L. Hertzfeld, who is prosecuting the case.
Buffalo Woman Pleads Guilty to Access Device Fraud and Aggravated Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Teria Baker, aka Tiara Baker, 24, of Buffalo, NY, pleaded guilty to conspiring to commit access device fraud and aggravated identity theft before U.S. District Judge Lawrence J. Vilardo. The access device fraud charge carries a maximum penalty of five years in prison and a $250,000 fine. Aggravated identity theft carries a mandatory consecutive term of two years in prison.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that from October 2013 to December 2013, the defendant and others traveled to Walmart stores and other retail establishments in Western New York where they used unauthorized credit cards. The cards were obtained without the true account holder’s knowledge or authority. Baker and others purchased $500 store gift cards and other merchandise totaling in excess of $160,000.
The plea is the culmination of an investigation on the part of the United States Postal Inspection Service under the direction of Boston Division Inspector in Charge Shelly A. Binkowski, and the United States Secret Service, under the direction of Assistant Special Agent in Charge Thomas Braun.
Sentencing is scheduled for January 12, 2017 at 10:00 a.m. before Judge Vilardo.
Buffalo Man Convicted Following A Jury Trial of Threatening A Woman at the VARead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Carl Randle, 58, of Buffalo, NY, was convicted following a jury trial of menacing. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorneys Stephanie O. Lamarque and Mary Catherine Baumgarten, who handled the prosecution the case, stated that the defendant was at the Veterans Affairs Medical Center in Buffalo, NY on May 16, 2016 receiving medical services. While waiting in a service line for at a coffee kiosk, Randle attempted to engage a woman who was also purchasing coffee. The woman declined to engage the defendant at which time Randle pulled out a gun, waved it around and threatened the victim.
Subsequently, the defendant walked away from the coffee kiosk area and proceeded to the third floor the VA and hid the gun in the medical center’s chapel. Randle was apprehended a short time later by VA police officers, who also recovered the weapon brandished by Randle. The gun upon inspection proved to be a BB gun.
The verdict is the culmination of an investigation on the part of the Veterans Affairs Police Department, under the direction of Chief Acting Stephen Coville and Special Agents of the United States Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Jeffrey G. Hughes.
Sentencing will be scheduled at a later date before U.S. Magistrate Judge Jeremiah J. McCarthy who presided over the trial of the case.