Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 14 September 2016
Former Joliet Police Officer Charged with Federal Civil Rights ViolationRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a former Joliet police officer for using unreasonable force against an individual while on duty.
THOMAS O’CONNOR, 40, of Joliet, is charged with one count of deprivation of rights under color of law. O’Conner is alleged to have used unreasonable force while on duty as an officer of the Joliet Police Department on Feb. 9, 2012. The victim suffered bodily injury as a result of the unreasonable force, the indictment states.
The indictment was returned Tuesday in federal court in Chicago. U.S. District Judge Charles P. Kocoras scheduled arraignment for Sept. 20, 2016, at 9:30 a.m.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The charge is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The government is represented by Assistant U.S. Attorneys Kelly Greening and Christine M. O’Neill.
Indictment
Former Jersey City Police Officer Admits Conspiracy to Commit Fraud and Accept Corrupt Payments, as Well as Filing A False Tax ReturnRead the Press Release
NEWARK, N.J. – A former Jersey City police officer today admitted accepting more than $230,000 in corrupt payments, in violation of the Jersey City Municipal Code provisions governing off-duty employment, from employers who were operating worksites around the city, U.S. Attorney Paul J. Fishman announced.
Juan Romaniello, 54, of East Hanover, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments and one count of filing a false tax return. He was released on $250,000 unsecured bond.
According to documents filed in this case and statements made in court:
Romaniello was a police officer with the Jersey City Police Department (JCPD) from 1988 to 2014. From 2004 to 2014, his duties included serving as the “pick coordinator” for Jersey City’s North District. In that role, it was his job to assign police officers to off-duty details. Under Jersey City’s Municipal Code, police officers could perform off-duty assignments only when the police officer was not on duty. The code mandated that Jersey City control the hiring and compensation process through which employers hired off-duty police officers. Off-duty police officers are not permitted to receive cash payments from the employer, nor can they accept checks or money orders made payable directly to them. The employers are supposed to pay Jersey City, which pays the off-duty police officer after withholding certain fees, taxes and deductions, including an administrative fee payable to the city.
Romaniello agreed with numerous employers to cut Jersey City out of the process to hire and pay off-duty police officers. He permitted employers to operate at worksites without the presence of a police officer when it was required by law for public safety reasons, such as ensuring that obstructions at construction sites did not pose a danger to vehicular or pedestrian traffic. Sometimes Romaniello actually provided the public safety services, but did not notify Jersey City. On most occasions, Romaniello collected payments in cash, money orders and checks payable to him, directly from the employers, depriving Jersey City of money that it would have received otherwise and avoiding reporting requirements to Jersey City and the IRS. The JCPD is cooperating in the investigation.
Under terms of the plea agreement, Romaniello will forfeit approximately $297,000, a substantial part of which were monies that he obtained through this corrupt and fraudulent activity and which he kept at his residence. In addition, for tax years 2009 to 2013, Romaniello did not report to the IRS $201,340 of ill-gotten gains. The plea agreement requires him to pay the IRS approximately $90,000 in restitution for unpaid taxes.
The count of conspiracy to commit fraud and accept corrupt payments carries a maximum potential penalty of five years in prison; the tax fraud count carries a maximum of three years in prison. Both counts also carry a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 10, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys José R. Almonte and Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Sarah Devlin of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey
Former Greene County Sheriff's Deputy Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Greene County, Mo., Deputy Sheriff was sentenced in federal court today for receiving and distributing child pornography.
Juan T. Jones, 28, of Springfield, Mo., was sentenced by U.S. District Judge M. Douglas Harpool to seven years in federal prison without parole. The court also sentenced Jones to 10 years of supervised release following incarceration.
Jones, who pleaded guilty on April 18, 2016, was a Greene County Deputy Sheriff from 2013 until his arrest in 2016.
An officer with the Southwest Missouri Cyber Crimes Task Force Officer opened the investigation on Sept. 25, 2015, after a CyberTip from Dropbox to the National Center for Missing and Exploited Children. Dropbox had discovered many video and image files that contained child pornography, which had been uploaded by Jones.
Investigators executed a search warrant at Jones’s residence on Jan. 6, 2016. While the warrant was being executed, they contacted Jones at his place of employment, the Greene County Sheriff’s Department. Jones admitted to investigators that he had looked at child pornography for as long as 10 years. Jones also admitted that he had exchanged child pornography images on Tumblr. Investigators discovered numerous images of child pornography on Jones’s cell phone.
According to court documents, Jones had more than 1,500 images and 451 videos of child pornography. Jones possessed multiple videos and images depicting children engaged in bestiality, bondage and sadistic conduct, including infants and very young children. Jones used multiple mediums and websites to not only view child pornography, but to receive and distribute it. He was actively e-mailing others, and using applications such as Tumblr, to trade in child pornography images.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the FBI.
Former Fairbury Man Sentenced to 35 Years in Prison for Being Part of a Child Exploitation EnterpriseRead the Press Release
United States Attorney Deborah R. Gilg for the District of Nebraska and Barbara L. McQuade for the Eastern District of Michigan announced that Brandon L. Hennerberg, 31, formerly of Fairbury, Nebraska, was sentenced today to 35 years in federal prison for his participation in a child exploitation enterprise. Hennerberg was sentenced by U.S. Senior District Court Judge Richard G. Kopf in Lincoln, Nebraska. He was originally charged, along with five co-defendants, in the Eastern District of Michigan in a 28-count indictment with the crimes of child exploitation enterprise, numerous counts of conspiracy to produce child pornography, conspiracy to receive and access with intent to view child pornography, and aiding and abetting online enticement. On June 21, 2016, in Lincoln, Nebraska, Hennerberg pleaded guilty to one count of child exploitation enterprise, carrying a 20-year mandatory minimum sentence.
The investigation determined that from at least January of 2014 to February of 2016, Hennerberg was a member of a group of individuals that worked together online to entice minor females to produce child pornography. The group members created fraudulent social media accounts posing as teenagers. Using the assumed identities, group members searched social media websites and engaged minor females, specifically targeting 10 to 14 year-old girls, in conversation using internet chat and video applications. The group members worked together for hours and sometimes even days to deceive their victims and convince them to undress and engage in sexually explicit activity live on a webcamera, which the group members recorded.
The group members used an elaborate scheme to entice, coerce, and deceive their victims. Each group member had at least one role, although at times a group member would play more than one role or switch from one role to another. The “hunters” visited social media websites commonly used by minors to locate minors and bring them back to the other group members. The “talkers” were primarily responsible for conversing with the minors. They asked the minors to do “dares” which escalated into sexual activity. If a victim was suspicious of the group members or reluctant to engage in sexual activity, the “loopers” would then play a previously recorded video of a minor engaged in sexual activity, pretending to be that minor, in order to convince the victim to engage in the same type of activity. Meanwhile, the “watchers” in the group were in charge of ensuring that no suspected law enforcement members or unwanted persons were present.
The group victimized at least 100 minor girls, most of whom have yet to be identified. If you have any information to help identify victims of this online conspiracy, fill out the FBI’s confidential survey at fbi.gov/sextortion or contact the National Center for Missing and Exploited Children (NCMEC) at www.missingkids.com. A confidential email can also be sent to [email protected]. Or call 1-800-CALL-FBI FREE (225-5324).
Co-defendants Virgil Napier, Jr. and John Garrison entered guilty pleas in June and July respectively and are currently scheduled to be sentenced in October by U.S. District Court Judge Judith E. Levy in Ann Arbor, Michigan. Co-defendants Justin Fuller, Thomas Dougherty and Dantly Nicart cases are at various stages in the proceedings.
This case was investigated by the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force and prosecuted by Assistant U.S. Attorneys April Russo and Sara Woodward.
First of North Idaho Drug Trafficking Organization Defendants Pleads GuiltyRead the Press Release
COEUR D'ALENE - Geena Lauren Milho, 25, of Williston, North Dakota, pleaded guilty yesterday to conspiracy to distribute heroin, oxycodone and methamphetamine, U.S. Attorney Wendy J. Olson announced. Milho was indicted by a federal grand Jury in Coeur d'Alene on April 19, 2016.
According to the plea agreement, Milho admitted that she was part of a drug trafficking organization which involved at least 20 people. The organization sold heroin, oxycodone and methamphetamine in Idaho, Montana, North Dakota and Eastern Washington. Milho helped the organization by concealing and transporting the controlled substances and making sure the profits went to the appropriate coconspirator. Milho is the first individual to plead guilty out of an indictment which charges 11 individuals. In addition to pleading guilty, Milho agreed to forfeit any interest she has in real property, jewelry or cash held by herself or coconspirators and outlined in the indictment.
The charge of conspiracy to distribute controlled substance is punishable by up to 20 years in prison, a maximum fine of $1,000,000, and at least 3 years supervised release.
Sentencing is set for January 18, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by CDA Police, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Internal Revenue Service, Criminal Investigations (IRS-CI), Kootenai County Sheriff, North Idaho Violent Crimes Task Force (NIVCTF), and U.S. Customs and Border Protection.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service. The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Federal Jury Finds Wilmington Man Guilty of Drug and Firearms ChargesRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that Wednesday, a federal jury in New Bern found KRISTOPHER OWEN DANIELS, 31, of Wilmington guilty of four criminal charges: possession with the intent to distribute cocaine base (crack) and marijuana; knowingly used and carried a firearm during and in relation to a drug trafficking crime, and possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession of firearm by a convicted felon.
Daniels was named in an Indictment originally filed on November 12, 2014. DANIELS was arrested on May 31, 2014, after police responded to a when a 911 call requesting police assistance at a residence in Wilmington. After uniformed Wilmington Police officers responded, DANIELS ran towards the back yard of the house, and threw a bag of crack (over 20 grams) and a black Taurus .380 firearm while officers were chasing him. A fence in the backyard prevented him from fleeing and he turned and threw marijuana at one of the pursuing officers. Currency in the amount of $2,100.00 also was recovered from DANIELS.
A Wilmington Police Department detective obtained a search warrant for the home. A search of DANIELS’ bedroom revealed a box of .380 ammunition, more United States currency, marijuana seeds, and a Charter Arms .38 revolver.
At sentencing, DANIELS faces a mandatory minimum sentence of 5 years imprisonment and a maximum of life imprisonment.
Investigation of this case was conducted by the Bureau of Alcohol Tobacco Firearms and Explosives; the Wilmington Police Department, including the Wilmington Police Department Crime Laboratory; and the New Hanover County Sheriff’s Office. Assistant United States Attorney S. Katherine Burnette represented the government.
Federal Correctional Officer Pleads Guilty to Bribery ChargesRead the Press Release
Contact Person: Bradley Parham (843) 727-4381
Florence, South Carolina ---- Acting United States Attorney Beth Drake stated that Angela McLeod, age 44, of Dillon, South Carolina has entered a guilty plea in federal court in Florence, to bribery, a violation of 18 U.S.C. § 201(b)(2)(C). United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the guilty plea hearing established that from 2013 to 2015, McLeod, who was a Federal Correctional Officer at the time, accepted bribes from inmates and their associates in exchange for which she brought contraband, specifically tobacco, to inmates at the Federal Correctional Institution in Bennettsville. Ms. Drake stated the maximum penalty for bribery is imprisonment for 15 years and/or a fine of $250,000.
The case was investigated by agents of the Office of Inspector General for the Department of Justice. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
#####
Fayetteville Man Sentenced for Violent Hobbs Act Robbery and Discharging of a Firearm During a Crime of ViolenceRead the Press Release
GREENVILLE – The United States Attorney’s Office announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced ERNEST TULSIDA CARPENTER, 44, of Fayetteville to 190 months imprisonment followed by 5 years of supervised release.
On December 9, 2014, CARPENTER was armed with a semi-automatic handgun when he entered Moe’s Southwest Grill at 201 N. McPherson Street in Fayetteville, North Carolina, as an employee was taking the trash out. CARPENTER, who wore a black mask to conceal his face, approached the employee and demanded money from the safe. CARPENTER threatened that he would “shoot every employee in the business” if the safe was not opened. At the time of the robbery, four employees and several customers were inside the restaurant. CARPENTER forced the employees, at gunpoint, to the rear of the building where the office was located. After the manager opened the safe, the defendant leaned down to retrieve money and an employee lunged at CARPENTER. A struggle ensued and the defendant fired two rounds from his firearm. One employee was shot in the foot and a second employee was shot in the abdomen. During the struggle, the defendant’s ski mask was partially removed and CARPENTER’s face was exposed. CARPENTER fled on foot, without taking any money, but was apprehended shortly after the robbery. Once detained, CARPENTER’s eye began to swell as a result of the struggle with the employee.
On May 9, 2016, CARPENTER pled guilty to the charges of Interference with Commerce by Robbery and Discharging of a Firearm During and in Relation to a Crime of Violence.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Jane Jackson represented the government.
Dominican Republic Man Sentenced to 32 months for Possession of a Firearm by an Illegal AlienRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced today Pedro Beltre Guzman, 35, of the Dominican Republic to 32 months’ imprisonment followed by three years of supervised release for possession of a firearm by an illegal alien. Judge Gomez ordered Guzman to pay a $100 special assessment and perform 200 hours of community service.
According to evidence presented at trial, on the morning of September 3, 2015, Guzman and co-defendants Gerandino-Aracena and Cardona, traveled from Fajardo, Puerto Rico, to St. Thomas, Virgin Islands in a private vessel equipped with a hidden compartment that contained three assault rifles. Sentencing hearings for Gerandino-Aracena and Cardona are pending without a date.
This case was investigated by the U.S. Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorneys Sigrid M. Tejo-Sprotte and Delia Smith.
District Man Pleads Guilty to Series of Armed Robberies of Commercial Establishments in Washington, D.C. and MarylandRead the Press Release
WASHINGTON – Curtis Fogg, 29, of Washington, D.C., pled guilty today to offenses stemming from a series of armed robberies that targeted commercial businesses in Washington, D.C. and Maryland during a three-week period in 2014.
The guilty plea was announced by Channing D. Phillips, U.S. Attorney for the District of Columbia; Rod J. Rosenstein, U.S. Attorney for the District of Maryland; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Hank Stawinski, Chief of the Prince George’s County, Md. Police Department.
Fogg pled guilty in the U.S. District Court for the District of Columbia to nine counts of interference with interstate commerce by robbery, one count of using, carrying, and possessing a firearm in furtherance of a crime of violence, and one count of armed robbery. The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 20 to 22 ½ years. The Honorable Senior Judge Paul L. Friedman scheduled sentencing for Jan. 11, 2017.
According to the government’s evidence, Fogg brandished a firearm while committing 10 separate armed robberies of commercial businesses in August and September 2014. In many instances, store surveillance video captured Fogg and his distinct tattoos.
“For nearly three weeks, Curtis Fogg armed himself with a gun and held up restaurants, convenience markets and cellphone stores,” said U.S. Attorney Phillips. “He was apprehended after a concerted effort by law enforcement and now has taken responsibility for his crimes. This prosecution demonstrates the commitment shared by federal and local law enforcement to target violent offenders who threaten the safety of our communities.”
“Curtis Fogg violently targeted our local area business community, threatening and endangering lives for his own financial gain,” said Assistant Director in Charge Abbate. “The FBI will continue to work closely with our exceptional partners at the Metropolitan and Prince George’s County Police Departments to track down and stop those who threaten our citizens with violence. Today’s guilty plea sends a strong message that crime that does not pay.”
“The Prince George’s County Police Department thanks our federal and local law enforcement partners for their tremendous efforts in this case. Together, we were able to arrest and prosecute a suspect who brazenly targeted businesses in our community in the summer of 2014. We are pleased he can no longer victimize anyone in our region,” said Chief Stawinski.
The robberies included:
- Aug. 14, 2014, approximately 10:30 p.m.: Fogg stole $250 and phones from two women who were in the New Look Hair Salon, in the 4300 block of Sheriff Road NE.
- Aug. 14, 2014, approximately 11:15 p.m.: Fogg stole about $100 from the register of a Papa John’s pizza restaurant in the 900 block of 11th Street SE.
- Aug. 15, 2014, approximately 9:30 p.m.: Fogg stole about $600 from registers at the Patron Convenience Store in the 3200 block of Pennsylvania Avenue SE.
- Aug. 27, 2014, approximately 2:45 p.m.: Fogg again stole about $100 from the register of the Papa John’s restaurant in the 900 block of 11th Street SE.
- Aug. 28, 2014, approximately 3 p.m.: Fogg stole $513 from a Cricket cellular telephone store in the 5500 block of Georgia Avenue NW.
- Aug. 30, 2014, approximately 5:10 p.m.: Fogg stole $284 from the cash register of a Subway sandwich shop in the 2800 block of Alabama Avenue SE.
- Aug. 31, 2014, approximately 6:30 p.m.: Fogg stole $60 from the register of Mama’s Pizza Kitchen, in the 2000 block of Martin Luther King Avenue SE, while also robbing the store’s owner of $100 in cash.
- Sept. 1, 2014, approximately 7:25 p.m: Fogg stole $469 from the register of a Metro PCS cellular telephone store in the 4100 block of Wheeler Road SE.
- Sept. 2, 2014, approximately 7:10 p.m.: Fogg stole $500 from the Boost Mobile cellular telephone store in the 6200 block of Oxon Hill Road in Oxon Hill, Md.
- Sept. 3, 2014, approximately 2:10 p.m.: Fogg entered a Metro PCS store in the 5200 block of Indian Head Highway in Oxon Hill, Md. and took about 15 new cellular telephones that were for sale on the counter, $539.75 in cash, and personal items from the individuals inside the store.
Fogg was arrested on Sept. 5, 2014 and has been in custody ever since. At the time of his arrest, he was on supervised release following a 2009 conviction in the Superior Court of the District of Columbia for possession with the intent to distribute cocaine.
This case was investigated by the FBI’s Washington Field Office, the Metropolitan Police Department, and the Prince George’s County Police Department. Those working on the case from the U.S. Attorney’s Office for the District of Columbia include Legal Assistants Latoya Wade, Brendan Coyne, and Diane Brashears, Paralegal Specialist Candace Battle, and Assistant U.S. Attorney Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter. Those working on the case from the U.S. Attorney’s Office for the District of Maryland include Assistant U.S. Attorney Thomas Sullivan and Special Assistant U.S. Attorney Matthew L. Paeffgen, who prosecuted the Maryland cases prior to them being transferred to Washington, D.C. for resolution before Judge Friedman.
Crack-Cocaine Dealer for New Jersey Grape Street Crips Gang Sentenced to Five Years in PrisonRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 60 months in prison for his role in a drug trafficking conspiracy controlled by the New Jersey set of the Grape Street Crips, U.S. Attorney Paul J. Fishman announced.
Rakeem Hankerson, a/k/a “Rocco,” 25, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to a superseding information charging him with conspiracy to distribute 28 grams or more of crack-cocaine. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips gang controlled drug trafficking and other criminal activities in various areas of Newark, including the neighborhood of 6th Avenue and North 5th Street. Hankerson was a member of the New Jersey Grape Street Crips who purchased distribution quantities of crack-cocaine from more senior gang members and sold it to retail level customers on the street.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the 6th Avenue and North 5th Street location used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
Another member of the conspiracy, Christopher Coelho, a/k/a “Brazil,”27, of Newark, was sentenced Sept. 13, 2016, to 10 years in prison and five years of supervised release.
In addition to the prison term, Judge Arleo sentenced Hankerson to four years of supervised release.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s sentencing. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Department of Public Safety and Newark Police Division, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. 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.
Defense counsel:
Hankerson: John P. Holliday Esq., Trenton, New Jersey
Coelho: Samuel M. Braverman Esq., Bronx, New York
Contra Costa Resident Sentenced to 12 Years’ Imprisonment for Trafficking Methamphetamine and Illegally Possessing FirearmsRead the Press Release
OAKLAND – Francisco Gonzalez was sentenced to 144 months’ imprisonment for possession with intent to distribute methamphetamine and for being a felon in possession of a firearm and ammunition, announced United States Attorney Brian J. Stretch and U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down yesterday by the Honorable Jeffrey S. White, United States District Judge, following entry of a guilty plea on June 1, 2016.
Gonzalez, 25, of Concord, Calif., pleaded guilty to drug possession and distribution charges as well as being a felon in possession of firearms and ammunition. According to records filed in connection with his plea agreement, Gonzalez is a known Norteño gang member. As part of his plea agreement, Gonzalez acknowledged that between July 21, 2015, and August 17, 2015, he sold 973 grams of actual methamphetamine, 15 grams of cocaine, nine firearms, and 208 rounds of ammunition to an undercover agent. Several of the firearms were stolen during a residential burglary in Antioch, Calif. According to the plea agreement, Gonzalez made the sales over the course of eight transactions that occurred in numerous venues throughout Concord and Pittsburgh, Calif. Gonzalez also acknowledged he told the undercover agent he could get the agent a “better price” if the agent purchased methamphetamine more frequently and/or in larger quantities. Gonzalez was charged by Information on March 17, 2016, with one count of possession with intent to distribute and distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1); and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
In addition to the prison term, Judge White sentenced the defendant to a five-year period of supervised release. Gonzalez has been in custody since his arrest in September 2015 and will begin serving his sentence immediately.
Assistant U.S. Attorney Kimberly Hopkins is prosecuting the case. The prosecution is the result of an investigation by the ATF.
Community forums on Cleveland Police use of force policies to be held this monthRead the Press Release
The City of Cleveland, Cleveland Division of Police, the Department of Justice, the Monitoring Team, and the Cleveland Police Commission have now come to the point in the police reform process where it is time for community feedback on the CPD’s revised Use of Force policies. We are collectively hosting two community roundtables, one on the East Side and one on the West Side, each covering the same content. You are invited to attend one of the roundtables:
Eastside Roundtable RSVP
Westside Roundtable RSVP
5:30- 8:30pm, Thursday, September 15th
5:30-8:30pm, Tuesday, September 20th
Jerry Sue Thornton Center
Urban Community School
2500 East 22nd Street
4909 Lorain Avenue
Cleveland, OH 44115
Cleveland, OH 44102
If you are interested in attending a community roundtable, please use the RSVP links above or send an RSVP to the Monitoring Team at [email protected]. The roundtables will include an overview of the Use of Force policy, with an opportunity for small group discussions for community members to inform the policies.
You are invited to read the policies by going to the Monitoring Team’s website. You may also engage in the process by using our online community feedback form to submit any thoughts on the policies by visiting the Monitoring Team’s website.
We hope you strongly consider being part of this important conversation about how we can work together to create a use of force policies consistent with the goals and interests of the Cleveland community.
This outreach is a part of our ongoing effort to engage the Cleveland community in the police reform process. Earlier this year, we sought community input on the Cleveland Division of Police body-worn camera policy, the mission statement, and several other key policies. We want to thank everyone who participated for their engagement with and contributions to the discussion surrounding police reform under the federal Consent Decree in Cleveland.
We look forward to hearing your thoughts on the Use of Force Policy and seeing you at one of the community roundtables.
Columbus drug trafficker sentenced to over 10 years in prisonRead the Press Release
CHARLESTON, W.Va. – A Columbus man caught with drugs in a Parkersburg hotel room was sentenced today to eight years and four months in federal prison for his conviction at trial and a year and nine months in federal prison for violating his supervised release, announced United States Attorney Carol Casto. Toby Germaine Person, 40, was convicted by a federal jury on June 23, 2015, of possession with intent to distribute heroin, cocaine, and crack. The sentences are to be served consecutively.
On August 4, 2013, after receiving reports that Person had come from Columbus to sell drugs in Parkersburg, law enforcement officers executed a search warrant on his hotel room. Inside the room, officers located heroin, cocaine, crack, digital scales, packaging materials, and other evidence of drug trafficking. Person and his companion, Amanda White, 26, also of Columbus, were arrested. White pleaded guilty in July 2014 to conspiracy charges in Wood County Circuit Court.
At the time of the offense, Person was serving two concurrent terms of federal supervised release. In February 2008, Person was sentenced in federal court in Columbus to five years in prison after pleading guilty to possession with intent to distribute crack. In October 2008, Person was sentenced in federal court in Parkersburg to five years and 11 months in prison after pleading guilty to possession with intent to distribute crack. He was released from prison in October 2012.
The Parkersburg Police Department, the Wood County Sheriff’s Department, and the West Virginia State Police investigated this case. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Cleveland man indicted for selling heroinRead the Press Release
A Cleveland man was indicted for selling heroin, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Timothy Smith, 49, was indicted on one count of possession with intent to distribute heroin. He had more than 67 grams of heroin on December 15, 2015, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the FBI.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Mississippi Hospice Owner Sentenced for Healthcare Fraud and Ordered to Pay over 5 Million Dollars in RestitutionRead the Press Release
Jackson, Miss – Andre Kirkland, 52, of Cleveland, Mississippi was sentenced in U.S. District Court in Oxford on September 1, 2016, on charges that he defrauded Medicare and Medicaid by signing up patients for hospice care who were not terminally ill, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway, Special Agent in Charge Derrick L. Jackson with the U.S. Department of Health and Human Services Office of Inspector General, and Mississippi Attorney General Jim Hood.
Kirkland, who owned and operated Revelation Hospice in Clarksdale, pled guilty on May 4, 2016, to conspiracy to commit health care fraud. U.S. District Judge Michael Mills sentenced Kirkland to serve 48 months in home confinement in lieu of imprisonment due to recurrent metastatic cancer, which requires substantial medical care. Kirkland was also ordered to pay restitution in the amount of $5,400,843.50 to Medicare and $66,171.43 to Medicaid.
The investigation revealed that Andre Kirkland and Revelation Hospice were knowingly enrolling non-hospice eligible Medicaid and Medicare recipients and then filing false hospice claims to Medicaid and Medicare for services that were not medically necessary or were not ever provided. Kirkland, as a registered nurse and Revelation’s Director of Nursing, personally admitted non-hospice appropriate Medicaid and Medicare recipients into Revelation and deceived the patients about the true nature of the services in which they were being enrolled. As part of this deception, many patients unknowingly signed Do Not Resuscitate forms along with undated hospice revocation forms. Kirkland would later use the revocation forms to discharge patients from Revelation Hospice without the patient’s knowledge.
As the Director of Nursing for Revelation, Andre Kirkland was responsible for hospice admissions and the supervision of all nursing staff. He also treated patients in the field. According to patient interviews, Kirkland deceived patients about the true nature of the services they were being enrolled in and never told the patients that they were terminally ill. Most of the
patients enrolled in hospice care were not terminally ill and were therefore not eligible for hospice care. For example, one of the patients enrolled was a 29 year old pregnant female who was not terminally ill and was not in any way hospice eligible. She remains in good health today, years after Kirkland fraudulently enrolled her in hospice care.
A medical review of a 30-patient Medicare patient sample revealed that 100% of those patients were not eligible. Revelation had a live discharge rate of 93.30%, meaning that 93.30% of patients enrolled were discharged from Revelation Hospice while still living. By comparison, 2010 data shows that the national average live discharge rate for hospices is 18.2%.
“The health care fraud perpetrated by this defendant was an abuse of public trust motivated by greed. Patients were deceived into being signed up for services intended to help those with terminal illnesses. We remain committed to protect the integrity of our health care system and will continue to strictly enforce our federal health care laws,” said U.S. Attorney Gregory K. Davis.
“Health care fraud costs our country billions of dollars each year, and the FBI will continue to seek out those that extort health care in the United States,” said Donald Alway, special agent in charge of the FBI in Mississippi. “These are not victimless crimes, because health care fraud harms our overall economy. The FBI and our partners are committed to identifying and charging those that engage in this type of activity.”
“Hospice fraud has reached epidemic proportions in Northern Mississippi,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “Patients are being falsely diagnosed as terminally ill in order to line the pockets of hospice owners who are treating Medicare like their own personal ATM.”
“Joint investigations have proven to be an essential tool in the fight against fraud in healthcare benefit programs,” Attorney General Jim Hood said. “We will continue to work with our federal and state partners in this ongoing battle to protect our most vulnerable citizens.”
The case was investigated by the United States Department of Health and Human Services Office of the Inspector General, the Medicaid Fraud Control Unit of the Mississippi Attorney General’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Dave Fulcher.Clerk Sentenced to 46 Months in Prison for Stealing Material Information from Prominent Law Firm for Use in $5.6 Million Insider Trading SchemeRead the Press Release
TRENTON, N.J. - The former managing clerk for a prominent, international law firm was sentenced today to 46 months in prison for stealing sensitive, confidential information for use in a five-year insider trader scheme that yielded net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Steven Metro, 42, of Katonah, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to the first two counts of an indictment charging him with securities fraud and conspiracy to commit securities and tender offer fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2009 to 2013, Metro stole material nonpublic information from his then-employer, Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms. The information related to corporate transactions, such as mergers and acquisitions or tender offers, in which the firm represented a party or financial advisor to the transaction. As the firm’s managing clerk, Metro did not personally work on most of these transactions. Instead, Metro stole the inside information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After obtaining the inside information, Metro would meet his friend, Frank Tamayo, 43, of Brooklyn, New York, at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During these meetings, Metro provided Tamayo material information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and commit the rest of the inside information to memory.
Afterwards, Tamayo would meet Vladimir Eydelman, 44, formerly of Colts Neck, New Jersey, usually at a location near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal. Tamayo would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo would place the paper or napkin into his mouth and chew it until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s “source,” Eydelman then purchased securities for himself, family members, friends, and/or clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the approximately five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source – i.e., Metro – for providing them the inside information.
By exploiting the information that Metro took from the firm, Metro, Tamayo and Eydelman netted more than $5.6 million in illicit profits over five years.
In addition to the prison term, Judge Shipp sentenced Metro to three years of supervised release and fined him $10,000.
Tamayo and Eydelman have both pleaded guilty to their roles in the scheme; Tamayo is scheduled to be sentenced Sept. 15, 2016, and Eydelman is scheduled to be sentenced Sept. 22, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel: James R. Froccaro Jr. Esq., Port Washington, New York
Children’s Charity Treasurer Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Robert Lonardo, 67, of Burrillville, treasurer of the Rhode Island Association for Cardiac Children (RIACC), was sentenced today to 6 months in federal prison and ordered to serve 100 hours of community service for converting nearly $186,000 from the charity for his own personal use. RIACC, founded by Lonardo’s mother, raised funds to purchase hospital equipment, support children’s cardiac treatment and research, and help meet the needs of Rhode Island families whose children were undergoing surgery for cardiac disease.
At sentencing, U.S. District Court Judge John J. McConnell, Jr. also ordered Lonardo to serve 2 years supervised release upon completion of his prison term. Restitution in this matter will be determined by the court at a later date.
Lonardo pleaded guilty on June 28, 2016, to one count of wire fraud.
Lonardo’s sentence is announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Joel P. Garland, Special Agent in Charge of Internal Revenue Service Criminal Investigation.
At the time of his guilty plea, Lonardo admitted to the court that beginning in January 2013, following the death of his mother, he began withdrawing funds from RIACC bank accounts and converted the money for his own personal use. Lonardo admitted that from January 2013 to August 2015 he converted RIACC funds totaling $185,945.77.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the FBI and IRS Criminal Investigation.
###
Charges Brought Against Two Lewisburg Federal Prison Inmates in Separate CasesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 13, a federal grand jury in Williamsport indicted two federal inmates in cases resulting from separate incidents.
According to United States Attorney Peter Smith, Deon Hooper, age 36, is charged with possessing contraband in prison. The charge stems from an incident in July 2016 in which Hooper was found to be in possession of two homemade sharpened weapons commonly known as “shanks.”
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine.
Julious Bullock, age 30, formerly of North Carolina, was charged separately with “head-butting” a corrections officer on August 2, 2016.
In this case, the maximum penalty which can be imposed under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
The investigations were conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
California Man, Woman Sentenced for Joplin-Area Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a man and woman from Barstow, Calif., have been sentenced in federal court for their roles in a conspiracy to possess methamphetamine with the intent to distribute in the Joplin, Mo., area.
Jason Jonathan Olsson, 33, of Barstow, was sentenced today by U.S. District Judge M. Douglas Harpool to 15 years and eight months in federal prison without parole. Co-defendant Jasmine Regina Bereki, 26, of Barstow, was sentenced on Tuesday, Sept. 13, 2016, to 10 years in federal prison without parole.
Olsson and Bereki each pleaded guilty in May 2016 to participating in a conspiracy to possess methamphetamine with the intent to distribute.
The investigation began in August 2015 when members of the Ozark Drug Enforcement Team received information that Olsson – who was staying at a hotel in Joplin – was receiving shipments of methamphetamine from either California or Arizona in sealed cans. Agents also received information that Olsson was sending large amounts of cash to California once or twice a week.
Olsson sent money orders to California from Harp’s grocery store in Carl Junction, Mo., on Aug. 19, 2015. Law enforcement officers stopped his vehicle after he left the store. A K-9 alerted to the presence of narcotics in Olsson’s vehicle. Officers searched the vehicle and found a black bag that contained seven baggies of methamphetamine with a total weight of approximately 186 grams. They also found money gram receipts totaling approximately $12,000.
Officers learned that Bereki, who rented the room where Olsson had been staying at the Comfort Inn in Joplin, had just left the hotel in a taxi. The taxi had taken Bereki to a Motel 6 in Joplin, and law enforcement officers contacted her outside the motel’s office. When officers searched Bereki’s motel room they found an RG 23 .22-caliber handgun in her luggage.
Law enforcement officers learned that Olsson and Bereki had a storage unit in Webb City, Mo. Officers searched the storage unit and found a black bag that contained three brass-colored cans. The cans contained 34 one-ounce bags of methamphetamine, totaling more than one kilogram. Officers also found a Mossberg 12-gauge shotgun and a Cobray Uzi M-11. They found numerous receipts for money orders, ranging from $500 to $2,501.
This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jasper County, Mo., Sheriff’s Department and the Joplin, Mo., Police Department.
Brett Ferrell of New York Indicted in Vermont for Interstate Travel with Intent to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Brett Ferrell, age 31, from New York, has been arrested and indicted for traveling in interstate commerce with the intent to engage in illicit sexual conduct with a minor. Ferrell made his initial appearance in federal court in Burlington on August 30, 2016 and he was arraigned on September 12, 2016. Magistrate Judge John M. Conroy ordered Ferrell detained pending trial.
According to court papers, in mid-August 2016, Ferrell made multiple postings on Craigslist seeking to meet girls under the age of 18 for the purpose of sex. Law enforcement officers responded to one of the Craigslist postings using an undercover persona of a 13-year-old girl. In multiple communications with someone he believed was a 13-year-old girl from Vermont, Ferrell expressed an interest in meeting to have sex. Ferrell, who lived in New York, indicated that he would travel to Vermont for such a meeting, and went as far as to make plans to meet at a particular hotel at a particular time for sex with this supposed 13-year-old. On August 29, 2016, Ferrell traveled from New York to Vermont for this illicit encounter, at which point he was arrested by law enforcement officers at the designated meeting place.
The charges against Ferrell are merely accusations and Ferrell is presumed innocent until proven guilty. If convicted, Ferrell faces a maximum penalty of 30 years in prison, although his actual sentence will be advised by the federal sentencing guidelines.
The collaborative team investigating the case against Ferrell includes law enforcement agents from Homeland Security Investigations in Vermont and New York, agents from Custom and Border Patrol, and agents from the Internet Crimes Against Children Task Force.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Ferrell is represented by Assistant Federal Defender Elizabeth K. Quinn.
Ferrell’s prosecution is part of Project Safe Childhood, a nationwide Department of Justice initiative designed to protect children from online exploitation and abuse. In Vermont, federal prosecutors are teaming up with federal, state, and local law enforcement agents to identify, investigate, and prosecute those individuals who prey upon children and those that distribute, receive, or manufacture child pornography. For more information on Project Safe Childhood, including resources on internet safety education, please visit www.usdoj.gov/psc.
Beggs Man Pleads Guilty to Stealing Firearms from DealerRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that DILLAN JAMES PARKER, age 24, of Beggs, Oklahoma, pled guilty to STEALING FIREARMS FROM A FEDERAL FIREARMS LICENSED DEALER, in violation of Title 18, United States Code, Sections 924(m) and 2.
The charge arose from an investigation by the Checotah Police Department, the Okmulgee Police Department, the Okmulgee District Attorney’s Office, the Okmulgee County Sheriff’s Office, the Muskogee County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. The defendant was indicted in July, 2016.
The Indictment alleged that on or about May 12, 2016, within the Eastern District of Oklahoma, the defendant, DILLAN JAMES PARKER did knowingly steal from Richy’s Gun & Pawn, a federal licensed firearms dealer, firearms.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000 fine or both.
Assistant United States Attorney Dean Burris represented the United States.
Baton Rouge Man Convicted of Conspiracy to Distribute Heroin and Money LaunderingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that on September 13, 2016 AARON LAMBERT, age 33, of Baton Rouge, Louisiana, has pled guilty to conspiracy to distribute and possess with intent to distribute heroin in violation of Title 18, United States Code, Section 846, and money laundering in violation of Title 18, United States Code, Section 1957, as contained in an Indictment filed in October 2015.
During a September 13, 2016, hearing, LAMBERT entered his plea before Chief U.S. District Judge Brian A. Jackson. According to the stipulated factual basis that was presented to the Court in connection with LAMBERT’s guilty plea, between December 1, 2013, and April 16, 2015, LAMBERT conspired with nine (9) individuals in California and Louisiana to distribute thousands of pills pressed to resemble oxycodone that, in fact, contained heroin. Upon delivery of the pills in Baton Rouge from California, they were then distributed to mid-level drug dealers and ultimately sold to drug abusers in East Baton Rouge and Livingston Parishes. LAMBERT admitted that, throughout the period of the conspiracy, he knew that the pills contained heroin, and his intent was to sell and profit from the sale of significant amounts of heroin. In addition, in March 2015, LAMBERT also engaged in money laundering from the proceeds of the drug-trafficking conspiracy.
At the conclusion of the hearing, the Court accepted LAMBERT’s guilty pleas, scheduled his sentencing hearing for January 5, 2017, and remanded him to the custody of the United States Marshal.
U.S. Attorney Green stated: “The guilty plea in this case continues to highlight the benefit of working together with our federal, state, and local partners. It also exemplifies our commitment to eliminate to eliminate drug trafficking and the significant harmful effects on our community resulting from heroin distribution and use, along with our efforts to ensure that ill-gotten financial gains are exposed. This defendant’s conduct is consistent with that of others in not only exposing the community to the horrific effects of heroin, but also the significant risk associated with disguising heroin as a prescription medication – that has been confirmed as a highly dangerous activity resulting in greatly increased overdose deaths throughout the nation. I appreciate the hardworking team of federal, state, parish, and city law enforcement agencies that allowed for the successful identification, arrest, and conviction of this heroin trafficker.”
“On an average day, 78 people in the United States die from an opioid-related overdose,” said DEA Assistant Special Agent in Charge Brad L. Byerley. “The DEA and our law enforcement partners are committed to targeting those individuals and criminal organizations that are smuggling and distributing this poison and thus fueling this national epidemic.”
Jerome R. McDuffie, Special Agent in Charge, IRS – Criminal Investigation, stated: “Drug trafficking organizations engage in increasingly sophisticated financial and operational networks to disguise the proceeds of narcotics sales. IRS – Criminal Investigation is very proud of the work we do to support federal drug investigations, and we will continue to assist the U.S. Attorney’s Office and other federal agencies in this important mission. Tracing the monetary transactions provides prosecutors with key evidence to support and enhance this vital work.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Baton Rouge Police Department, and Iberville Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Bath Man Pleads Guilty to Attempting to Transfer Obscene Matter to MinorRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Garrett Brosnan, 25, of Bath, Maine, waived indictment and pled guilty today in U.S. District Court to attempting to transfer obscene matter to a minor.
According to court records, in May of this year, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) were investigating a report that an unknown adult male had an inappropriate online interaction with a minor girl in Arizona. Investigators obtained information suggesting that the male was Brosnan. An HSI investigator in Arizona initiated an undercover online conversation with Brosnan in late May. The investigator said she was a 14-year-old girl from Arizona. On June 2, Brosnan sent the investigator a picture of himself exposing his penis.
Brosnan faces a sentence of up to 10 years in prison, a fine of up to $250,000, and supervised release of up to three years. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by HSI offices in Maine and Arizona.
Apalachin Man Pleads Guilty to Receiving Child PornographyRead the Press Release
BINGHAMTON, NEW YORK -Brandon Kie, 30, of Apalachin, New York, pled guilty in federal court to receiving child pornography via the internet.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Sentencing is scheduled for January 27, 2017 before Senior Judge Thomas J. McAvoy. Kie faces a minimum sentence of 5 years and up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. He will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
In pleading guilty, Kie admitted that in 2014 he used a computer to connect to several child pornography web sites via the internet and also connected to other computers using peer-to-peer software programs. Kie received and downloaded more than 500 digital images and more than 12 videos of child pornography via the internet.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Tuesday 13 September 2016
ZeekRewards' Former Chief Operating Officer and Former Senior Technology Officer Sentenced in Federal CourtRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max Cogburn, Jr., sentenced Dawn Wright Olivares, 48, and Daniel C. Olivares, 34, both of Clarksville, Ark., to 90 and 24 months in prison, respectively, for their involvement in an $850 million Internet Ponzi scheme that promised victims a bogus return on investments, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
The two Arkansas residents were associated with the Lexington, N.C. based Rex Venture Group, LLC (RVG), which owned and operated Zeekler and ZeekRewards. In addition to the prison term imposed, Judge Cogburn also ordered each defendant to serve three years under court supervision. The restitution amount will be set at a later date.
Michael Rolin, Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearings, from January 2010 through August 2012, Dawn Wright Olivares, her step-son, Daniel Olivares, and Paul Burks, the owner of RVG, conspired with each other and engaged in Ponzi scheme that raised more than $850 million through a sham internet-based penny auction company named “Zeekler” and its purported advertising division “ZeekRewards” (collectively “Zeek”). According to court records, the conspirators induced more than 900,000 victims – including over 1,500 victims in the Charlotte area – to invest in their fraudulent scheme, by falsely representing that Zeekler was generating massive retail profits from its penny auctions, and that the public could share in such profits through investment in ZeekRewards. Court documents indicate that, at one point, the conspirators claimed that investors would be guaranteed a 125% return on their investment.
Court records show that the co-conspirators represented that victim-investors in ZeekRewards could participate in the Retail Profit Pool (RPP), which supposedly allowed victims collectively to share 50% of Zeek’s daily net profits. The co-conspirators did not keep books and records needed to calculate such daily figures. Instead, Burks simply made up the daily “profit” numbers. Contrary to the conspirators’ claims, the true revenue from the scheme did not come from the penny auction’s “massive profits.” Instead, approximately 98% of all incoming funds came from victim-investors, which were then used to make Ponzi-style payments to earlier victim investors.
In addition to promising massive returns on investments, the conspirators used a number of ways to promote Zeek to current and potential investors. For example, the conspirators hosted weekly conference calls and leadership calls, where participants could call in and listen to Burks, Dawn Wright Olivares and others make false representations intended to encourage victim-investors to continue to invest money and to recruit others to invest in Zeek. Burks and Dawn Wright Olivares also organized and attended “Red Carpet Events,” where victim investors came to hear details of the scheme in person. During these events, Burks and his conspirators made false representations about the massive retail profits generated by Zeek. They also used electronic and print media, including websites, emails and journals, to make false and misleading statements about the success of Zeekler to recruit victim investors.
As the Ponzi scheme grew in size and scope it became unsustainable and it eventually began to unravel as the outstanding liability resulting from the bogus 125% return on investment continued to rise beyond control. By August 2012, the conspirators fraudulently represented to the collective victims that their investments were worth nearly $3 billion, but had no accurate books and records to even determine how much cash on hand was available to pay such liability. Contrary to representations made to victim investors, at that time, the conspirators had only $340 million available to pay out investors.
According to court records, Dawn Wright Olivares was closely involved in the strategic operations and ultimately served as the Chief Operations Officer of Zeek. Dawn Wright Olivares also owned 95% of Wandering Phoenix, LLC, a company that she used, among other things, to receive payments from Zeek and RVG. During the course of the conspiracy, Dawn Wright Olivares and Wandering Phoenix received approximately $7.2 million in victim funds.
Daniel Olivares was RVG’s senior technology officer and was responsible for, among other things, database design, management and operations for Zeek. During the course of the conspiracy, Daniel Olivares personally enriched himself with victim funds totaling approximately $3.1 million. Other unnamed co-conspirators also personally enriched themselves with millions of dollars of victim funds.
Dawn Wright Olivares and Dan Olivares previously pleaded guilty to one count of investment fraud conspiracy. Dawn Wright Olivares also pleaded guilty to one count of tax fraud conspiracy.
In July 2016, a federal jury convicted Paul Burks of wire and mail fraud conspiracy, wire and mail fraud, and tax fraud conspiracy, following a three-week trial. Burks is currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Secret Service and IRS-CI for investigating the case, and the U.S. Securities & Exchange Commission, Division of Enforcement for its assistance with the investigation.
The prosecution is handled by Assistant United States Attorneys Jenny Grus Sugar and Corey Ellis of the U.S. Attorney’s Office in Charlotte.
Additional information and updated court filings about this and related cases filings can be accessed at the district’s website: http://www.justice.gov/usao/ncw/ncwvwa.html.
Youngstown man sentenced to more than 10 years in prison for firearms violationRead the Press Release
A Youngstown man sentenced to more than 10 years in prison for firearms violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Brian K. Bellard, 43, was arrested on Oct. 16, 2015 after Youngstown police responded to a call about an armed man arguing with people outside the Eastside Civic Center. Police found Bellard with a Smith and Wesson, model SD40VE, .40 caliber pistol, and ammunition, according to court documents.
Bellard forbidden from possessing firearms because of previous felony convictions dating back to 1992. Those convictions included felonious assault and domestic violence, according to court documents.
He pleaded guilty last year to being a felon in possession of a firearm. He was sentenced to 125 months in federal prison.
This case was prosecuted by Assistant U.S. Attorney Jason M. Katz following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department.
Winter Harbor Man Convicted of Possession of Child PornographyRead the Press Release
Contact: Jody Mullis
Andrew McCormack
Assistant United States Attorneys
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jack Palmer, 66, of Winter Harbor was convicted following a jury trial in U.S. District Court of possession of child pornography.
The evidence at trial revealed that on October 23, 2014, law enforcement officers executed a search warrant at Palmer’s residence where they recovered a laptop computer and compact disks. A forensic examination of these items revealed over 300 images and videos of child pornography. During two separate interviews with law enforcement, Palmer admitted to searching for, viewing, and collecting child pornography.
Palmer faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Winnfield men sentenced on firearms chargesRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that two Winnfield men were sentenced Monday for possessing stolen firearms.
Ashton L. Howard, 33, and Aaron Thomas, 27, both of Winnfield, La., were sentenced to 27 months and 96 months in prison respectively by U.S. District Judge Robert G. James on one count of possession of a stolen firearm, and Thomas was also sentenced for possession of a firearm and ammunition by a convicted felon. They were also sentenced to three years of supervised release. According to the June 15, 2016 guilty pleas, Howard and Thomas received and possessed 14 firearms, ammunition and other items stolen from a Winnfield firearm seller on March 22, 2015. Howard drove four juveniles to a store where they burglarized it. They took and loaded eight rifles, five shotguns, a revolver, ammunition, firearms parts, knives and other items into Howard’s van, which they took to Howard and Thomas’ house. Police found some of the firearms hidden under the house and other firearms at the house of one of the juveniles.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and the Winnfield Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
West Fork Man Sentenced to 25 Years in Federal Prison for Production of Child PornographyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Nathan Robert Wesley Johnson, age 26, of West Fork, was sentenced today to 300 months imprisonment followed by 25 years of supervised release for Production of Child Pornography. The sentencing hearing took place before the Honorable Judge Timothy L. Brooks in the United States District Court in Fayetteville.
According to the plea agreement, Nathan Johnson admitted to chatting online with a 15-year-old girl residing in Fort Smith and encouraging her to send him naked pictures of herself. He admitted to using the Facebook Messenger application on his cell phone to chat with her and obtain these pictures. Johnson was indicted by a federal grand jury on March 16, 2016 and pleaded guilty on April 13, 2016.
“Today’s sentencing reflects Johnson’s despicable conduct in demeaning and subjecting the victim to sexual exploitation,” said Assistant Special Agent in Charge David Shepard with the Federal Bureau of Investigation in Little Rock. “We appreciate the steadfast efforts of the U.S. Attorney’s Office and the Fort Smith Police Department as well as our federal, state, and local partners associated with Project Safe Childhood.”
This case was investigated by Federal Bureau of Investigation and the Fort Smith Police Department. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (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.
* * * E N D * * *
Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Virginia Man Sentenced to One Year in Federal Prison for StalkingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that James Daniel Hobgood, age 36, of Manakin Sabot, Virginia, was sentenced yesterday to 12 months and one (1) day in prison followed by three (3) years supervised release on one count of Stalking. Hobgood was also ordered to perform 180 hours of community service and to pay over $2,300.00 in victim restitution. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to the plea agreement, in August, 2015, a female contacted law enforcement in the Western District of Arkansas claiming that she was being persistently harassed by James Daniel Hobgood who lived in Richmond, Virginia. The victim reported to agents with Homeland Security Investigations that she had met and to some extent became romantically involved with Hobgood while living in Richmond, however, after a short period of time, she began rebuffing his advances. In January, 2015, she moved from Richmond to Northwest Arkansas and Hobgood began contacting her by email, Facebook messages, and third party text messages, demanding that she apologize to him in person. When she did not acquiesce to Hobgood’s demand, he created publically accessible social media accounts in which he represented her to be an exotic dancer and escort. He sent letters to her employer both by the internet and the U.S. Postal Service, claiming that she was a stripper and an escort in an attempt to get her fired. He repeatedly contacted her and her family demanding that she apologize or that he would continue to expose certain alleged aspects of her past. Hobgood’s behavior caused her substantial emotional distress resulting in her being hospitalized for a short period of time. When agents contacted Hobgood about his involvement with the victim, he informed them that he would not stop contacting her until he cost the victim her job based on her lies, and/or that she repent for the perceived wrongs she committed against him. He admitted to sending the victim, her family, and her employer communications by internet, telephone, and postal service telling them she was an exotic dancer and that he was not going to stop. Law enforcement was able to corroborate the claims of the victim by his cell phone history and Facebook history. Hobgood was indicted by a federal grand jury on October 28, 2015 and pleaded guilty on April 13, 2016.
“This case demonstrates that we will investigate, arrest and seek prosecution of anyone utilizing the internet or mail services for nefarious intentions”, said ICE’s Homeland Security Investigations Special Agent in Charge Raymond R. Parmer, Jr. “Stalking and harassing someone over the internet or through the mail is a serious matter and we will continue working with our state and local law enforcement partners to ensure these types of criminals are brought to justice.”
This case was investigated by the Homeland Security Investigations, Richmond, Virginia Police Department, and the Henrico County, Virginia Sheriff’s Office. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Vermont Woman Sentenced to 25 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on September 8, 2016, Rebecca Lawrence, 32, of Winooski, Vermont, was sentenced to 25 months in federal prison after her guilty plea to charges that she distributed heroin. U.S. District Court Judge Geoffrey W. Crawford also ordered that Lawrence serve three years of supervised release after her prison term.
According to court records, in 2014, Lawrence was convicted in the Southern District of New York on charges that she conspired to distribute controlled substances. For this offense, she was sentenced to a term of time served followed by five years of supervised release. In March of 2015, responsibility for Lawrence’s supervision was transferred to the District of Vermont.
In November and December of 2015, while Lawrence was still serving her term of federal supervised release, the Vermont State Police Drug Task Force used a confidential informant to conduct a series of controlled purchases of heroin from her. She was arrested on December 18, 2015 and charged with distributing heroin in violation of the Controlled Substances Act. Lawrence pled guilty to this offense on May 6, 2016.
For her crime, Lawrence faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Lawrence receive a prison term of between 21 and 25 months. The Guidelines also recommended that Lawrence receive an additional prison term for violating her federal conditions of release. Judge Crawford decided that Lawrence should serve 15 months for her drug offense followed by an additional 10 months for violating her federal conditions of release, resulting in a total sentence of 25 months in prison. In determining the appropriate sentence, Judge Crawford considered the gravity of the offense and Lawrence’s criminal record, among other factors.
United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force and the Burlington Police Department. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Lawrence is represented by Michael Shklar from Newport, New Hampshire.
Vacaville Man Sentenced for Defrauding the California Air National Guard of Approximately $200,000 in Leave and False Expenses SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Thomas Venable, 46, of Vacaville, today to one year and one day in prison for theft concerning programs receiving federal funds in connection with his operation of a sustained leave and false expenses scheme while he was a member of the California Air National Guard, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April 2008 and April 2010, Venable obtained nearly $195,528 from the California Air National Guard (CA ANG) in wages, benefits, and expense reimbursements to which he was not entitled. Venable was assigned to a detail with the California Emergency Management Authority (Cal-EMA) that was available only to active duty CA ANG members. At the same time, Venable was frequently deployed for training and duty with the U.S. Air Force, and he was employed full time by the University of California-San Francisco Police Department (UCSF-PD). While deployed on federal duty or while working for the UCSF-PD between April 2008 and April 2010, Venable intentionally failed to use required military or other leave and collected double compensation from the federal government and the state of California. During the same period, Venable also filed at least 19 false travel and expense reimbursement claims that were unrelated to his CA ANG work but that were paid as though they were legitimate.
Venable also admitted that, for more than a year, he concealed from his direct supervisors at the CA ANG that he had joined the Texas Air National Guard in February 2009, resulting in Venable’s discharge from the CA ANG and his ineligibility for employment with Cal-EMA. In doing so, Venable affirmatively misrepresented his duty status to CA ANG staff.
“The California National Guard is an institution built on integrity and character,” said Maj. Gen. David S. Baldwin, Adjutant General for the California National Guard. “We applaud the U.S. Attorney's Office in its latest effort to ensure the Cal Guard remains free from fraudulent and unethical behavior.”
This case was the product of an investigation by the United States Department of Defense, Defense Criminal Investigative Service, and the California Highway Patrol, Office of Internal Affairs. Assistant United States Attorney André M. Espinosa prosecuted the case.
US Postal Service Employee Charged with Destroying 2,300+ Pieces of MailRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. was indicted today by a federal grand jury in Johnstown on a charge of delay or destruction of mail, United States Attorney David J. Hickton announced today.
The indictment named Darren E. Hill, 47, of Johnstown, Pa., as the sole defendant.
According to the indictment presented to the court, on August 12, 2014, while an employee of the United States Postal Service, he unlawfully secreted and detained approximately 2,343 pieces of mail which were intended to be conveyed by the United States mail.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Honorary Guest Speaker at 9/11 Memorial Ceremony National Patriot Day & National Service and Remembrance DayRead the Press Release
Alicia A.G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to be the honorary guest speaker at the 9/11 Memorial Ceremony and 1st National Patriot Day & National Service and Remembrance Day, which was held at the Guam Community College on September 11, 2016, and hosted by the Guam Community College Veterans Club (GCCVC) and AmeriCorps.
U.S. Attorney Limtiaco spoke about the events of September 11, 2001 remaining forever engrained and deeply rooted in our memories and in our national consciousness, and honoring the many heroes and paying tribute to the survivors and to the family members of those whose lives were lost. She spoke about the true patriotism these men and women displayed in the face of unconscionable and horrific violence, death and destruction.
U.S. Attorney Limtiaco thanked the veterans and service members for their unwavering commitment and service to ensuring our nation’s security and protecting our freedoms, and for inspiring us to persevere, even in the darkest of times, in our pursuit of freedom and justice for all.
Two Broward County Residents Plead Guilty in Identity Theft Tax Fraud Scheme Involving the Use of Unauthorized Debit Card Account NumbersRead the Press Release
Two Broward County residents pled guilty for their involvement in an identity theft tax fraud scheme involving the trafficking in, use, and possession of unauthorized debit card account numbers.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Dan Giustino, Chief, Pembroke Pines Police Department, made the announcement.
Wilna Joseph, 36, and Maraldy Necker Jean, 39, both of Broward County, each pled guilty to one count of trafficking in and using one or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, fraudulent tax returns were filed using the names and Social Security numbers of individuals without their permission. On February 6, 2014, the defendants drove to a Wells Fargo Bank in Pembroke Pines and Joseph attempted to withdraw cash from the ATM using a debit card encoded with an account number belonging to one of the tax return victims. The defendants then drove to a Citibank, located in Pembroke Pines, where Joseph made four withdrawals, totaling approximately $1,200.00, using a debit card encoded with an account number belonging to another one of the tax return victims.
At the time of their arrest, on February 6, 2014, the defendants had fifteen unauthorized debit cards registered in the names of other persons. The debit cards had been funded with fraudulently obtained federal income tax refunds totaling approximately $76,249.20.
Joseph and Jean are scheduled to be sentenced on November 18, 2016 before United States District Judge William J. Zloch. At sentencing, the defendants face up to ten years in prison for the access device charge, and two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, the FBI, and the Pembroke Pines Police Department. The case is being prosecuted by Assistant United States Attorneys Daya Nathan and Jonathan K. Osborne and Special Assistant United States Attorney Tyler Jett.
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.
Ten Eastern California Real Estate Investors Sentenced for Roles in Bid-Rigging and Mail-Fraud Conspiracies Involving Real Estate Purchased at Public Foreclosure AuctionsRead the Press Release
More than $6 Million in Fines and Restitution Imposed
Ten Eastern California real estate investors were sentenced yesterday for their participation in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Eastern California, the Department of Justice announced.
The primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Joaquin County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties.
“These defendants rigged foreclosure auctions to profit at the expense of mortgage holders and homeowners,” said Acting Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division. “Yesterday’s sentences send a strong message that conspiracies to eliminate competition in any area of our economy will not be tolerated.”
“My office will continue to fight real estate fraud in all its forms, including bringing to justice those who would subvert public foreclosure auctions for their own personal gain,” said Acting United States Attorney Phillip A. Talbert of the Eastern District of California.
The following individuals were sentenced in the U.S. District Court for the Eastern District of California in Sacramento:
- Anthony B. Ghio, of Stockton, California, was sentenced to serve five months in prison and ordered to pay a $1 million criminal fine and $214,544 in restitution to the victims of the crime.
- John R. Vanzetti, of Stockton, California, was sentenced to serve five months in prison and ordered to pay a $1 million criminal fine and $271,454 in restitution to the victims of the crime.
- Theodore B. Hutz, of Stockton, California, was sentenced to serve five months in prison and ordered to pay a $250,000 criminal fine and $76,670 in restitution to the victims of the crime.
- Richard Northcutt, of Stockton, California, was sentenced to serve seven months in prison and ordered to pay a $1 million criminal fine and $614,982 in restitution to the victims of the crime.
- Kennen A. Swanger, of Alta, California, was sentenced to serve five months in prison and ordered to pay a $5,000 criminal fine.
- Wiley C. Chandler, of Stockton, California, was sentenced to serve seven months in prison and ordered to pay a $500,000 criminal fine and $614,982 in restitution to the victims of the crime.
- Walter Daniel Olmstead, of San Francisco, California, was sentenced to serve eight months in prison and ordered to pay a $29,687 in restitution to the victims of the crime.
- Gregory L. Jackson, of Lodi, California, was sentenced to pay a $150,000 criminal fine and $20,900 in restitution to the victims of the crime.
- Robert Rose, of Danville, California, was sentenced to pay a $100,000 criminal fine and $24,128 in restitution to the victims of the crime.
- Anthony B. Joachim, of Stockton, California, was sentenced to pay a $175,000 criminal fine and $94,154 in restitution to the victims of the crime.
Two other real estate investors, Andrew B. Katakis and Donald M. Parker, were convicted at trial of bid rigging in March 2014.
A total of thirteen individuals pleaded guilty or were convicted in the U.S. District Court for the Eastern District of California in connection with this investigation. The sentences announced yesterday resulted from an ongoing investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division and the San Joaquin County District Attorney’s Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco office at 415-934-5300, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.
Yesterday’s action was brought in connection with the President’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
Taxpayers Warned About IRS Telephone Impersonation ScamRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Gary Smith, Deputy Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA) for the Mid-States Field Division are warning taxpayers about an aggressive impersonation telephone scam targeting taxpayers.
Since October 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees. The Treasury Inspector General for Tax Administration (TIGTA) has received reports of over 1.6 million impersonation related calls with over 8,600 victims reporting losses of almost $47 million. Deputy Special Agent in Charge Gary Smith, on behalf of TIGTA, stated, “Victimizing taxpayers by impersonating Internal Revenue Service employees is a serious crime. TIGTA and our law enforcement partners will do everything within our power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law.”
“My office takes these crimes very seriously,” said U.S. Attorney Thyer. “Those involved in the impersonation of IRS officials will be held accountable, and my office will aggressively pursue and prosecute those individuals committing these crimes against innocent taxpayers when we find them. Please notify TIGTA at 1-800-366-4484 immediately if you feel that you have received one of these calls. You can also file a complaint online on TIGTA’s website, www.tigta.gov. Lastly, please remember that you should never provide your personal information to callers if you are not sure of their identity, and never provide your personal information in response to emails from unsolicited email sources.”
Tallulah tax preparer sentenced to 24 months for aiding in the filing of false tax returnRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Tallulah based tax preparer was sentenced Monday to two years in prison for aiding and assisting in the preparation and filing of a tax return containing false information.
Frankie Cammack, 48, of Tallulah, La., was sentenced by U.S. District Judge Robert G. James on one count of aiding and assisting in making and subscribing a fraudulent and false tax return. The defendant was also ordered to pay $92,339 in restitution to the U.S. Treasury. According to testimony presented during the June 16, 2016 guilty plea, Cammack prepared 26 returns for eight different taxpayers for tax years 2009 through 2012, all of which contained false information regarding either business expenses or education credits. The false information was used to generate excessive refunds totaling $114,791 to the taxpayers.
“Preparers have a duty to make sure that the documents they file follow the law,” Finley stated. “Tax fraud hurts those who pay their taxes, and they should get legitimate refunds.”
“We are pleased with the sentence handed down today for Ms. Cammack,” stated Special Agent in Charge of IRS Criminal Investigation Jerome R. McDuffie. “The tax system is built on the premise that taxpayers file accurate and timely tax returns. Ms. Cammack was in the business of preparing tax returns for others and willfully prepared and submitted false documents to the IRS. To ensure confidence in our tax system, special agents of IRS Criminal Investigation are committed to the aggressive pursuit and prosecution of individuals who intentionally violate the nation’s laws.”
The IRS conducted the investigation. Assistant U.S. Attorney William J. Flanagan prosecuted the case.
Springfield Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIFELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Greene County, Mo.
Torell D. Wallace, 31, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 13 years and four months in federal prison without parole.
On Feb. 4, 2016, Wallace pleaded guilty to participating in a conspiracy to distribute 50 grams or more of methamphetamine in Greene County and elsewhere from Jan. 13 to June 15, 2015.
On Jan. 13, 2015, Wallace was stopped in Arkansas after the state police observed him swerve onto the left shoulder several times. When they approached him, Wallace appeared very nervous and made several inconsistent statements. Officers searched his vehicle and found a large Tupperware container with a vacuum-sealed bag inside, which contained 539.1 grams of pure methamphetamine. Wallace was transporting the methamphetamine to co-defendant Clint L. Stewart, 35, of Springfield.
On June 10 and 15, 2015, law enforcement officers made controlled buys of heroin and methamphetamine from Wallace and co-defendant George E. Baumgartner, 35, of Springfield.
Wallace is the third defendant to be sentenced after pleading guilty to participating in the drug-trafficking conspiracy. Stewart was sentenced to nine years in federal prison without parole. Baumgartner was sentenced to six years and eight months in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Arkansas State Police, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
South Carolina Man Sentenced for Sex Trafficking a ChildRead the Press Release
NORFOLK, Va. – Travis C. Brown, 25, of Columbia, South Carolina, was sentenced today to 126 months in prison for his role in a conspiracy to engage in sex trafficking of a child. Brown was also sentenced to 10 years of supervised release and will be required to register as a sex offender upon release from prison.
Brown pleaded guilty on June 7. According to court documents, in March 2016, the Virginia Beach Police Department (VBPD) discovered a minor female who was being prostituted out of a hotel in Virginia Beach by Brown and a co-conspirator. Brown met the minor female through some friends at a hotel room party during which she was supplied with alcohol, marijuana, and the drug “molly.” Two days after meeting her, Brown and his co-conspirator bought the girl lingerie and took her to another hotel where they posed her and took photographs of her to post Internet advertisements for commercial sex acts. Brown then arranged appointments for her, set the prices for her acts, provided condoms, monitored the progress of her appointments by text message, and collected the proceeds she earned. After a tip from the management at the hotel where the girl was taking appointments and another source, VBPD rescued the girl and arrested Brown.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and James A Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16cr81.
Silver Spring Man Sentenced to 7 Years in Federal Prison for Internet Romance Scheme in Which Victims Were Defrauded of over $300,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Evans Appiah, a/k/a Sean Carter, age 28, of Silver Spring, Maryland, on September 12, 2016, to seven years in prison, followed by four years of supervised release, for conspiracy, mail and wire fraud, and aggravated identity theft arising from an internet romance scheme in which the victims were defrauded of more than $300,000. Judge Hazel also ordered Appiah to forfeit and pay restitution of $303,800.11, the total amount of the loss. Appiah has been detained since Judge Hazel ordered that he be immediately taken into custody following the jury’s guilty verdict on May 4, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to testimony at his six day trial, Appiah and his co-conspirators searched online dating websites and initiated romantic relationships with male and female victims in order to obtain money from them. The relationships began with emails and instant messaging and escalated to telephone calls and primarily text messages. After gaining the victims trust, Appiah and his co-conspirators began asking for money for a variety of reasons, often invoking false stories and promises to convince the victims to send them money.
According to evidence presented at trial, from December 2013 through June 2015, Appiah opened and maintained accounts in order to receive money from the victims. Once the victims had deposited the funds requested by Appiah and the co-conspirators into the accounts controlled by Appiah, he disbursed the money by transferring it to other accounts, withdrawing cash, and by purchasing goods for shipment to co-conspirators outside of the United States. At least eleven confirmed victims were defrauded of more than $300,000.
Appiah also used the name and identifying information of one victim in particular, while depositing one of the victim cashier’s checks into his own bank account.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Special Assistant U.S. Attorney Jennifer L. Wine, who prosecuted the case.
Shreveport felon sentenced to 97 months in prison for firearm chargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 97 months in prison for being a felon in possession of a firearm and possessing the firearm during and in furtherance of a drug trafficking crime.
Carlos Tramell Russell, 30, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm and ammunition by a convicted felon and one count of possession of a firearm in furtherance of a drug trafficking offense. He was also sentenced to three years of supervised release. According to the June 23, 2016 guilty plea, Shreveport Police responded to a domestic dispute call on July 8, 2015. Russell was reported to have been seen with a firearm during an incident at a Shreveport residence. Officers then searched Russell’s home and found a Romarm pistol, model Micro Draco, 7.62 by 39 mm and ammunition in his home. They also found three bags of cocaine. Russell had prior felony convictions in 2005 and 2010.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Seventh Member of Oxycodone Money Laundering Conspiracy Pleads GuiltyRead the Press Release
COLUMBUS, Ohio – Tiauna Castro, 27, of Las Vegas pleaded guilty in U.S. District Court today to participating in a conspiracy to launder the proceeds from the illegal sale of Oxycodone in central Ohio.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, Castro deposited the proceeds from the illegal sale of Oxycodone to a bank account in Columbus that was held in the name of a front business. The account was actually controlled by someone Castro knew was trafficking illegally obtained pills from Las Vegas to Columbus.
Castro pleaded guilty to one count of one count of conspiracy to commit money laundering, a crime punishable by up to 20 years in prison, and agreed to forfeit $150,975.00 in currency.
Others convicted in the conspiracy include two people from Las Vegas, Danny R. Williams, 30, who was sentenced on July 28 to 90 months in prison, and Sukita M. Williams, 44, who is awaiting sentencing. Three people from Columbus have pleaded guilty to participating in the conspiracy and are awaiting sentencing, Rashod D. Todd, 29, Joquline D. Harris, 29, and Alfred David James Sr., 36. A fourth Columbus resident, Dontonyo Courtney, 22, pleaded guilty and was sentenced in August to 33 months imprisonment.
Acting U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorney Michael J. Hunter, Deputy Criminal Chief of the Organized Crime Drug Enforcement Task Force, who is representing the United States in this case.
San Antonio Man Pleads Guilty to Aiming Laser Pointer at Local News HelicopterRead the Press Release
Christopher B. Evans, age 25, faces up to five years in federal prison after admitting to pointing a laser in the flight path of a helicopter last year announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.
Appearing before United States Magistrate Judge John W. Primomo in San Antonio this afternoon, Evans pleaded guilty to one count of aiming a laser pointer at an aircraft in flight. By pleading guilty, Evans admitted that on October 27, 2015, he aimed the beam of a laser pointer at a local television news helicopter as it was flying north of the San Antonio International Airport.
Evans remains on a $20,000 bond pending sentencing scheduled for 9:00am on December 12, 2016, before Senior United States District Judge David A. Ezra.
According to the FBI, in 2015, San Antonio ranked among the top 15 cities in the nation for laser strikes, with almost 100 reported. Laser strikes can blind pilots of airborne aircraft, jeopardizing the lives of persons aboard.
If you have information about a lasing incident, contact the San Antonio FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
This investigation was conducted by agents with the Federal Bureau of Investigation together with the San Antonio Police Department. Assistant United States Attorney Michael R. Hardy is prosecuting this case on behalf of the Government.
Sacramento Woman Charged with Failure to Appear for SentencingRead the Press Release
SACRAMENTO, Calif. — A Sacramento couple arraigned today for a grand jury indictment charging Maria Santa, 41, with failing to surrender for service of sentence and obstruction of justice, and charging Virgil Santa, 43, with harboring a fugitive, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Maria Santa was previously sentenced to 20 months in prison for mortgage fraud and was ordered to begin serving her sentence in February 2014. When her motion for bail pending appeal was denied, she fled the jurisdiction and left a note at her residence that made it appear that she had committed suicide. On August 26, 2016, Maria Santa was arrested in Sacramento as a passenger in a vehicle her husband Virgil Santa was driving.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
If convicted, Maria Santa and Virgil Santa face a maximum statutory penalty of 10 years in prison and a $250,000 fine as to each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rogers Man Sentenced to Maximum of 20 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Francisco Sanchez, age 37 of Rogers, was sentenced today to 240 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Sanchez was also ordered to pay a $5,000 fine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to the plea agreement, on October 13, 2015, deputies of Benton County Sheriff’s Office while conducting surveillance, approached and detained Sanchez while he was parked at a car wash in Rogers. A drug detecting canine conducted an open air sniff on the defendant’s vehicle and alerted for the presence of contraband. Pursuant to this, the vehicle was searched and deputies located two separate packages of methamphetamine and a handgun. The suspected substance was sent to the DEA South Central Laboratory where it was tested and confirmed to be 333.1 grams of actual methamphetamine. Sanchez was indicted by a federal grand jury on May 11, 2016 and pleaded guilty on May 25, 2016.
“Through unprecedented partnerships with local enforcement, we are making major progress in preventing meth trafficking from taking hold in our community. This investigation is a compelling example of that success,” said DEA Assistant Special Agent in Charge Matthew Barden. “We will stand firmly to ensure that criminals who peddle in these poisons and wreak havoc in our communities will face consequences for their criminal activities.”
This case was investigated by the Drug Enforcement Administration and the Benton County Sheriff’s Office. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Regions Bank Agrees to Pay $52.4 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
Regions Bank (Regions) has agreed to pay $52.4 million to the United States to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Department of Justice announced today. Regions is headquartered in Birmingham, Alabama.
“Mortgage lenders that participate in the FHA insurance program must follow the requirements intended to safeguard its integrity and to protect homeowners,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to hold responsible lenders that knowingly violate these important requirements.”
“The FHA insurance program plays a critical role in the stability of the housing market,” said U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Lender misconduct that puts this program at risk will not be tolerated.”
Since at least January 2006, Regions has participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
As part of the settlement announced today, Regions admitted that between Jan. 1, 2006, and Dec. 31, 2011, it certified for FHA insurance certain mortgage loans that did not meet certain HUD underwriting requirements regarding borrower creditworthiness. In addition, between Jan. 1, 2006 and Dec. 31, 2011, Regions did not maintain a quality control (QC) program that fully complied with the requirements established by HUD. Regions’ QC Department did not consistently review an adequate sample of FHA-insured loans. Moreover, to the extent that Regions’ QC Department identified deficiencies during the course of its loan review, Regions engaged in a pattern of “curing” QC findings by obtaining documentation that was not available to the underwriter at the time the loan was approved. As a result, the defect rate reported to senior management was understated. Regions also failed to review Early Payment Default (EPD) loans in accordance with HUD guidelines. Regions was required to review all loans that became 60 days past due within the first six months. Nevertheless, at certain times prior to 2011, as part of its EPD review, Regions reviewed only those loans that became 90 days past due.
Additionally, Regions did not fully adhere to HUD’s self-reporting requirements. During the period between Jan. 1, 2006, and Dec. 31, 2011, the HUD Handbook required lenders to report “findings of fraud” or “other serious violations” or “serious material deficiencies” to HUD. Although Regions’ monthly QC reviews identified numerous FHA-insured loans for that period that contained material deficiencies, Regions did not begin self-reporting these materially deficient loans to HUD until 2011.
As a result of Regions’ conduct and omissions, HUD insured hundreds of loans approved by Regions that were not eligible for FHA mortgage insurance under the DEL program and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“FHA-approved lenders have a responsibility to ensure that FHA-insured loans meet our standards, which are in place for the protection of FHA’s insurance fund,” said Helen Kanovsky, HUD’s General Counsel. “The agreement we announce today should serve as a reminder that sustainable homeownership starts with compliance with underwriting requirements.”
“This settlement resolves allegations that a financial institution, trusted to comply with FHA loan origination, underwriting and quality control requirements, failed to meet its obligations as a participant in the FHA program,” said Inspector General David A. Montoya for HUD. “The bank’s actions impact the solvency of the FHA insurance fund. It is through the combined efforts of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, HUD and the Office of Inspector General that we continue to ensure the integrity of this important FHA program to American homeowners.”
The settlement was the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida. The claims asserted against Regions are allegations only, and there has been no determination of liability.
Regions Bank Agrees to Pay $52.4 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
Fort Myers, FL – Regions Bank (Regions) has agreed to pay $52.4 million to the United States to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Department of Justice announced today. Regions is headquartered in Birmingham, Alabama.
“The FHA insurance program plays a critical role in the stability of the housing market,” said U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Lender misconduct that puts this program at risk will not be tolerated.”
“Mortgage lenders that participate in the FHA insurance program must follow the requirements intended to safeguard its integrity and to protect homeowners,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to hold responsible lenders that knowingly violate these important requirements.”
Since at least January 2006, Regions has participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
As part of the settlement announced today, Regions admitted that between Jan. 1, 2006, and Dec. 31, 2011, it certified for FHA insurance certain mortgage loans that did not meet certain HUD underwriting requirements regarding borrower creditworthiness. In addition, between Jan. 1, 2006 and Dec. 31, 2011, Regions did not maintain a quality control (QC) program that fully complied with the requirements established by HUD. Regions’ QC Department did not consistently review an adequate sample of FHA-insured loans. Moreover, to the extent that Regions’ QC Department identified deficiencies during the course of its loan review, Regions engaged in a pattern of “curing” QC findings by obtaining documentation that was not available to the underwriter at the time the loan was approved. As a result, the defect rate reported to senior management was understated. Regions also failed to review Early Payment Default (EPD) loans in accordance with HUD guidelines. Regions was required to review all loans that became 60 days past due within the first six months. Nevertheless, at certain times prior to 2011, as part of its EPD review, Regions reviewed only those loans that became 90 days past due.
Additionally, Regions did not fully adhere to HUD’s self-reporting requirements. During the period between Jan. 1, 2006, and Dec. 31, 2011, the HUD Handbook required lenders to report “findings of fraud” or “other serious violations” or “serious material deficiencies” to HUD. Although Regions’ monthly QC reviews identified numerous FHA-insured loans for that period that contained material deficiencies, Regions did not begin self-reporting these materially deficient loans to HUD until 2011.
As a result of Regions’ conduct and omissions, HUD insured hundreds of loans approved by Regions that were not eligible for FHA mortgage insurance under the DEL program and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“FHA-approved lenders have a responsibility to ensure that FHA-insured loans meet our standards, which are in place for the protection of FHA’s insurance fund,” said Helen Kanovsky, HUD’s General Counsel. “The agreement we announce today should serve as a reminder that sustainable homeownership starts with compliance with underwriting requirements.”
“This settlement resolves allegations that a financial institution, trusted to comply with FHA loan origination, underwriting and quality control requirements, failed to meet its obligations as a participant in the FHA program,” said Inspector General David A. Montoya for HUD. “The bank’s actions impact the solvency of the FHA insurance fund. It is through the combined efforts of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, HUD and the Office of Inspector General that we continue to ensure the integrity of this important FHA program to American homeowners.”
The settlement was the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida. It was handled by Assistant U.S. Attorneys Jason Mehta and Kyle Cohen of the Middle District of Florida, and Trial Attorney Michael D. Kass of the Justice Department’s Civil Division. The claims asserted against Regions are allegations only, and there has been no determination of liability.
Postal Employee Pleads Guilty to Stealing Public MoneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jennifer Passeck, 26, pleaded guilty to theft of public money before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the defendant was a Relief Postmaster in the Sodus Point, NY post office between March 2013 and March 2015. During that time, Passeck stole stamp revenues, post office box rental payments, and issued money orders to herself, all totaling $19,504.
The plea is the culmination of an investigation on the part of Inspectors of the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Sentencing is scheduled for November 3, 2016 at 12:30 p.m. before Judge Wolford.