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1 November 2016
Justice Department Reaches Settlement with Louisiana Tech University and Louisiana State Education Agencies to Desegregate A.E. Phillips Laboratory SchoolRead the Press Release
The Justice Department announced that it has reached a settlement agreement with Louisiana Tech University to ensure that black students have access to the high-quality education programs at the A.E. Phillips Laboratory School, a K-8 public school operated by Louisiana Tech on its campus in Lincoln Parish, Louisiana. The U.S. District Court for the Western District of Louisiana today approved the court-ordered agreement, which will reduce barriers to enrollment for black students and further desegregate A.E. Phillips’ faculty, staff and facilities.
A.E. Phillips, which opened in approximately 1910 as a segregated school serving only white students, was first ordered to desegregate in 1984. Following an investigation the Justice Department concluded, and Louisiana Tech agreed, that more work is needed to open up A.E. Phillips’ quality educational program to all students of Lincoln Parish. As a laboratory school, A.E. Phillips is known for its strong academic programs and teaching, and serves as a resource for Louisiana Tech’s College of Education to train future teachers and apply innovative education techniques.
The University of Louisiana System, the Louisiana Board of Regents, the Louisiana Board of Elementary and Secondary Education and the Louisiana State Superintendent of Education are also parties to the settlement agreement. Under the consent order, Louisiana Tech and A.E. Phillips will:
- increase the percentage of black student enrollment so that the percentage of black students enrolled at A.E. Phillips reflects the percentage of black students in grades K-8 enrolled in Lincoln Parish School Board’s schools by the 2020 through 2021 school year;
- take steps to expand A.E. Phillips’ existing facilities to two classrooms per grade level to accommodate additional black student enrollment;
- develop a comprehensive plan to recruit black students for incoming kindergarten classes and for available vacancies in other grade levels;
- offer full and partial tuition scholarships to admitted black students who are eligible for free and reduced price student meals under the federal guidelines;
- offer free and reduced price meals to admitted black students who meet the federal requirements for assistance; and
- take affirmative measures to recruit black candidates for administrator, teacher, certified staff and other staff vacancies at the school.
“We commend the Louisiana Tech community for its firm commitment to make the promise of equal access to education a reality for all children, regardless of the color of their skin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Our consent order establishes long overdue protections critical to increasing the enrollment of – and support for – black students at A.E. Phillips.”
“All students should have a quality education and should not be barred from any school that provides them that education,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “This consent order will have an important and lasting impact for all the students in the Lincoln Parish community. The children of Louisiana should always be the focus. We look forward to continuing to work with Louisiana Tech, A.E. Phillips and the state education agencies to ensure that the order is successfully implemented.”The order dismisses the court’s supervision of the desegregation of A.E. Phillips in the areas of transportation and extracurricular activities. Upon full implementation of the consent order, Louisiana Tech and the state education agencies may seek the court’s approval to dismiss the desegregation case against A.E. Phillips.
Promoting school desegregation and enforcing Title IV of the Civil Rights Act of 1964 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Louisiana Tech University Consent OrderJustice Department Announces Investigation into Conditions at Boyd County Detention CenterRead the Press Release
The Justice Department announced today that it has opened an investigation into the conditions at the Boyd County Detention Center in Catlettsburg, Kentucky. The investigation will focus on whether prisoners are adequately protected from the use of excessive force, whether prisoners are subject to an invasion of their bodily privacy and whether the jail indiscriminately uses restrictive housing without due process.
“Our Constitution protects prisoners against excessive force, violations of their bodily privacy and improper use of restrictive housing,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will conduct a thorough, comprehensive investigation guided by the facts and the law.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Civil Rights Division’s Special Litigation Section is conducting this investigation. Individuals with relevant information are encouraged to contact the department via phone at 844-491-4947 (starting on Nov. 9, 2016) or by email at [email protected].
Indianapolis Man Sentenced to 30 Months ImprisonmentRead the Press Release
HAMMOND- United States Attorney David A. Capp announced that Mohamed Fadiga, 43, of Indianapolis, Indiana was sentenced before Chief Judge Philip Simon for possession of counterfeit or unauthorized access devices. Fadiga was found guilty by a jury after a 2-day trial.
Fadiga was sentenced to 30 months’ imprisonment and 1 year supervised release.
According to documents in this case, Fadiga possessed more than 15 counterfeit and fraudulent debit and credit cards which had been re-encoded with the personal information of victims from different jurisdictions but bearing his name.
This case was the result of an investigation by the Hobart Police Department and the United States Department of Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Toi D. Houston and Maria N. Lerner.
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Holts Summit Man Pleads Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Holts Summit, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine.
Justin Raul Sanchez, 48, of Holts Summit, pleaded guilty before U.S. Magistrate Judge William A. Knox to the charge contained in a May 21, 2014, federal indictment. Sanchez remains in federal custody.
According to today’s plea agreement, Sanchez and his co-conspirator had made three trips to Georgia in March and April 2014 to obtain large quantities of methamphetamine. The supplier in Georgia sold them approximately one kilogram of methamphetamine, in a sealed silver coffee can, which they brought back to Holts Summit to distribute.
Sanchez’s co-conspirator was stopped by state troopers on U.S. Highway 63 in Taos, Mo., on April 21, 2014, while returning from the third trip to Georgia, according to the plea agreement. The trooper located a large silver coffee can that contained 27 small baggies of methamphetamine (totaling .85 kilograms) underneath the third row of seats in the vehicle. The trooper also found a loaded Taurus .380-caliber handgun inside a glove on the front passenger floorboard.
On April 24, 2014, law enforcement officers executed a search warrant at Sanchez’s residence. Officers seized two baggies containing methamphetamine, drug paraphernalia, $7,817 and a drug ledger. Sanchez was arrested and admitted to officers that he had been distributing methamphetamine from his residence.
Today’s plea agreement also cites two controlled purchases of methamphetamine by a confidential informant at Sanchez’s residence in April 2014. In each instance, the confidential informant agreed to pay $1,300 for 28 grams of methamphetamine.
Under federal statutes, Sanchez is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. Under the terms of today’s plea agreement, Sanchez must forfeit to the government $7,817, which was proceeds from the conspiracy and was seized by law enforcement officers. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, LANEG (Lake Area Narcotics Enforcement Group), the Missouri State Highway Patrol, the Jefferson City, Mo., Police Department and the MUSTANG Drug Task Force.
Haverhill Resident Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Jorge Medina, 25, of Haverhill, Massachusetts, pleaded guilty today to conspiracy to distribute, and possess with intent to distribute, oxycodone and cocaine. Medina appeared before United States District Court Judge Steven J. McAuliffe to enter his guilty plea.
According to documents that were filed in court and statements in the plea proceeding, Medina admitted that he and others participated in the distribution of cocaine and oxycodone pills in Massachusetts and New Hampshire. During a court-authorized wiretap investigation, law enforcement officers intercepted calls in which Medina sought to obtain drugs for distribution. On one occasion, law enforcement officers arrested one of Medina’s customers and recovered approximately 100 oxycodone pills. The customer later admitted that he had obtained hundreds of pills from Medina.
A sentencing hearing has been scheduled for March 8, 2017.
Medina is one of six individuals indicted by a federal grand jury on September 23, 2015, and charged with conspiracy to distribute, and possess with intent to distribute, controlled substances. The other defendants are: Mara Morillo, 41, of Haverhill, Massachusetts; Franklyn Morillo, 41, of Haverhill, Massachusetts; Juan Rojas, 32, of Haverhill, Massachusetts; Justin Bartimus, 35, formerly of Methuen, Massachusetts; and Michael Lally, 28, of Salem, New Hampshire.
Rojas also was charged with possession of a firearm in furtherance of a drug trafficking crime. He is further charged in a separate indictment with conspiracy to possess a firearm in furtherance of a crime of violence. Rojas is awaiting trial, which has been scheduled for January 18, 2017. All of the other defendants have pleaded guilty and are awaiting sentencing.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). 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. The Drug Enforcement Administration’s Tactical Diversion Squad led the investigation with assistance from the Haverhill, Massachusetts Police Department, the Methuen, Massachusetts Police Department, and the Massachusetts State Police. It is being prosecuted by Assistant United States Attorney John J. Farley.
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Hartford Man Sentenced to Life in Prison for Offenses Related to 2010 Murder, Planning of Second MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DOMINIQUE MACK, also known as “Lil Sweets,” 26, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to life imprisonment. On April 27, 2016, a jury found MACK guilty of conspiring to commit witness tampering by murdering one individual and planning to murder a second individual.
“Dominique Mack’s malevolent and unrelenting actions to thwart justice have now come to an end,” said U.S. Attorney Daly. “In order to prevent his own apprehension, he orchestrated the murder of Ian Francis. After being charged with Francis’ murder, Mack then plotted to kill another witness who he believed was going to testify against him in the Francis murder trial. He was highly dangerous and a menace to our community. This was an extremely difficult investigation and prosecution. The prosecutors who led this team, together with our partners from the FBI, the Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Major Crimes Division deserve enormous credit for their excellent work in this case. We will continue to work together to prosecute those individuals most responsible for violence in Hartford and Connecticut’s other cities.”
According to the evidence at trial, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford. Francis succumbed to his injuries on January 15, 2011. At the time, MACK, who had been charged as part of a multi-defendant federal drug conspiracy, was hiding out in an attempt to evade arrest. On June 15, 2011, law enforcement arrested MACK at an apartment on Vine Street in Hartford. A search of the apartment revealed a Ruger 9 millimeter semi-automatic pistol, which was subsequently determined to be the firearm that was used to murder Francis.
The investigation revealed that MACK conspired with Keronn Miller and others to murder Francis to prevent Francis from providing information to law enforcement about MACK’s whereabouts. Miller had lured Francis to the location on Sigourney Street knowing that the plan was to murder Francis when he arrived there.
On December 4, 2014, Miller, also known as “Fresh,” of Hartford, pleaded guilty to aiding and abetting in the murder of Francis. Shortly after Miller’s guilty plea, the government received information about a plot to kill a witness for MACK’s upcoming trial. Tyquan Lucien, also known as “TQ” and “Frogger,” who had been arrested as part of this investigation and was incarcerated with MACK at a detention facility in Rhode Island, had told another inmate about a plan by Lucien and MACK to kill an individual who had been identified as a government witness in the case against Miller. On February 13, 2015, an undercover officer who was posing as someone who might be able to commit the murder met with Lucien in the visiting area of the detention facility. During the meeting, Lucien ordered the killing of the potential government witness and others, making throat-slashing motions to make his intent clear. Three days later, Lucien met with MACK and relayed to him the facts of the visit.
The jury found MACK guilty of two counts of conspiracy to commit witness tampering by committing first degree murder, an offense that carries a mandatory lifetime term of imprisonment. The jury also found MACK guilty of two counts of possession of a firearm by a previously convicted felon, and not guilty of two counts of tampering with a witness.
On August 2, 2016, Keronn Miller was sentenced by Judge Shea to 210 months of imprisonment.
On August 24, 2015, Lucien pleaded guilty to conspiracy to commit witness tampering by first degree murder. He awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division. The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.
Hamden Man Sentenced to More Than 7 Years in Federal Prison for Distributing Heroin and CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAWN MILLER, also known as “White Boy Shawn,” 32, of Hamden, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 90 months of imprisonment, followed by five years of supervised release, for distributing heroin and crack cocaine. Judge Meyer also ordered MILLER to pay a $2,000 fine.
According to court documents and statements made in court, MILLER and Paul Colon, also known as “Paul Cane,” operated a New Haven area narcotics distribution ring. The investigation revealed that members of the ring took orders over a cellphone from drug customers in several shoreline communities for quantities of heroin and crack cocaine, and then delivered the drugs by car.
MILLER was arrested on October 21, 2015. On June 29, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine base (“crack cocaine”).
Colon has pleaded guilty and awaits sentencing.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force in cooperation with the Drug Enforcement Administration and the New Haven, West Haven, Milford, Hamden and other local police departments, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Jennifer R. Laraia.
Guyana citizen pleads guilty to falsifying an application for a U.S. passportRead the Press Release
ELKINS, WEST VIRGINIA – Joseph Fedrick, 42, of Guyana pled guilty to falsifying an application for a U.S. passport in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Fedrick executed an application for a United States passport in Berkeley County, West Virginia. Within the application, Fedrick attempted to use a false social security number with the intent to secure the passport fraudulently.
He pled guilty to one count of “False Statement in Application for Passport. He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, that actual sentenced imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Department of the State Diplomatic Security Service and the United States Department of Homeland Security investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Former South Florida Resident Pleads Guilty in $13 Million Money Laundering Conspiracy Involving 2 Million Doses of OxycodoneRead the Press Release
A former South Florida resident pled guilty, yesterday, for his participation in a $13 million money laundering conspiracy involving more than 2 million dosage units of oxycodone.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Ric L. Bradshaw, Sheriff, Palm Beach Sheriff’s Office, Albert Arenal, Chief, Coconut Creek Police Department, and Daniel C. Alexander, Chief, Boca Raton Police Department, made the announcement.
Pasquale Gervasio pled guilty to one count of conspiracy to commit money laundering involving criminally derived property valued greater than $10,000, in violation of Title 18, United States Code, Sections 1956(h) and 1957. At sentencing, Gervasio faces up to ten years in prison. A sentencing date has not yet been scheduled.
According to court documents, between March 2010 and June 2011, Gervasio and his co-conspirators operated six pain clinics in Broward and Palm Beach counties with the purpose of unlawfully dispensing oxycodone that had not been prescribed for a legitimate medical purpose. Approximately 2,007,695 oxycodone 30 mg pills were dispensed and distributed through the pain clinics before they were closed following the execution of search warrants in June 2011. Gervasio and his co-conspirators operated the clinics to ensure that the maximum amount of Oxycodone would be prescribed without regard to a legitimate medical need, and purely for the sake of profit. The pain clinics failed to comply with Florida standards for the use of controlled substances. The pain clinics generated approximately $13,466,598 from the unlawful prescribing and dispensing of oxycodone.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Mr. Ferrer commended the investigative efforts of IRS-CI, the DEA, Boca Raton Police Department. PBSO and Coconut Creek Police Department. Mr. Ferrer also recognized the South East Regional Task Force (SERTF) and the Palm Beach Sheriff's Office Multi-Agency Diversion Task Force (PBSO MAADTF). SERTF is headed by the DEA and includes representatives from the Fort Lauderdale Police Department, Pembroke Pines Police Department, Hallandale Beach Police Department, Lauderhill Police Department, Margate Police Department, and Coconut Creek Police Department. PBSO MAADTF is headed by the Palm Beach County Sheriff's Office and includes representatives from the Boca Raton Police Department, Boynton Beach Police Department, DEA, Delray Beach Police Department, Florida Department of Health, Greenacres Police Department, IRS-CI, Jupiter Police Department, Riviera Beach Police Department, Palm Beach County State Attorney’s Office, PBSO, Palm Beach Gardens Police Department and West Palm Beach Police Department. This case is being prosecuted by Assistant U.S. Attorney Donald F. Chase, II.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Department of Defense Civilian Employee Pleads Guilty in Health Care Fraud CaseRead the Press Release
WASHINGTON – A Florida man pled guilty today to a federal charge of health care fraud for submitting more than 1,300 false claims, seeking about $152,000, to a federal health insurance plan, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Deputy Inspector General for the Office of Personnel Management (OPM).
Jensen Moors, 41, currently of Lauderdale Lakes, Fla., pled guilty in the U.S. District Court for the District of Columbia. He is to be sentenced on Feb. 3, 2017, by the Honorable James E. Boasberg. Under the advisory federal sentencing guidelines, he faces a possible sentence of 12 to 18 months. Moors also agreed to pay restitution in an amount of $143,111, and a forfeiture money judgment in the same amount.
According to a statement of the offense, signed by the defendant, Moors was a civilian Department of Defense employee, who was entitled to participate in the Federal Employees Health Benefits Program, which is administered by OPM. U.S. government employees living overseas, such as Moors at the time of the offense, have the option to choose the Foreign Service Benefit Plan (FSBP) as their health care benefit program. Generally, those enrolled in FSBP pay out-of-pocket for any health care benefits, items, or services they receive overseas, and then submit claims for reimbursement for money already paid, to a location in the District of Columbia. An OPM contractor then processes the reimbursements and pays the employee directly.
Between about October 2007 and April 2014, Moors submitted to FSBP approximately 66 fake invoices with 1,387 claims totaling approximately €119,541 (euros, which translates to approximately $152,000), falsely claiming that he received and paid for physical therapy services from a German physical therapist. These claims were false in that Moors did not receive the therapy on the dates as claimed, the amounts were in excess of the prices charged by the physical therapist, and the duration of treatment was longer and more frequent than the treatment actually provided by the physical therapist.
As a result of these false claims, the OPM contractor paid Moors $143,111 on 63 invoices and denied the claims on the other three invoices, having discovered that the services were not provided.
In announcing the plea, U.S. Attorney Phillips and Deputy Inspector General Vint expressed appreciation for the work performed by Special Agents and analysts from both OPM’s Office of Inspector General and the Defense Criminal Investigative Service of the Department of Defense. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kaitlyn Krueger, Assistant U.S. Attorney Julia Jarrett, who is assisting with forfeiture issues, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Former Business Manager Pleads Guilty to Stealing $1.7 Million from Labor Union, Unlawful Labor Payments, Fraud and Money LaunderingRead the Press Release
A former business manager of Local 657 of the Laborers International Union of North America (LIUNA) pleaded guilty today to stealing $1.7 million from Local 657 and related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office, Special Agent in Charge Robin Blake of the Department of Labor Office of Inspector General Washington, D.C., Regional Office and District Director Mark Wheeler of the Department of Labor’s Office of Labor-Management Standards Washington, D.C., District Office made the announcement.
Anthony Wendel Frederick Sr., 50, of Upper Marlboro, Maryland, was charged with one count of conspiracy to commit theft from a labor organization, one count of conspiracy to receive unlawful labor payments, one count of conspiracy to commit wire fraud and one count of money laundering, as part of a 45-count indictment against Frederick and two co-defendants. Frederick pleaded guilty before U.S. District Judge Amit P. Mehta of the District of Columbia.
LIUNA’s Local 657 is a labor organization that represents construction laborers in Washington, D.C., and five adjacent counties. Frederick served as the business manager for Local 657 for approximately 10 years until June 2014.
In pleading guilty, Frederick admitted that from May 2013 to June 2014, he directed more than $1.7 million in Local 657 funds to STS Contracting of Greenbelt, Maryland, without the knowledge or authorization of the Local 657 Executive Board or LIUNA International officials. Frederick also admitted that officials in STS General Contracting made a number of financial payments to Frederick with the funds stolen from Local 657, including a down payment of $225,000 on a home that Frederick purchased and construction of a three-car garage on the property, and directed more than $600,000 to a corporation owned in part by Frederick’s wife.
The FBI and the Department of Labor investigated the case. Trial Attorneys Vincent Falvo and David Karpel of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Florida Man Sentenced to 57 Months in Prison for Role in Multistate Burglary SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that YOANDRYS CUE, 31, a citizen of Cuba last residing in Florida, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 57 months of imprisonment, followed by three years of supervised release, for participating in a multi-state burglary spree.
According to court documents and statements made in court, on August 2, 2013, CUE, Alionis Perez, and others traveled from New Jersey to Connecticut. The next day, they broke into the Fossil store located in Clinton, Connecticut, disabled the alarm system and stole watches valued at approximately of $250,000. Following the burglary, they returned to New Jersey with the stolen merchandise.
On August 18, 2013, CUE, Perez and others attempted to break into the Movado store located in Kittery, Maine.
On September 19, 2013, CUE, Perez and others broke into the Fossil store located in Miramar Beach, Fla., and stole watches valued at approximately $170,000.
On October 4, 2013, CUE, Perez and others broke into the Fossil store located in Hagerstown, Md., and stole watches valued at approximately $750,000.
On October 24, 2013, CUE, Perez and others broke into the Fossil store located in Grove City, Penn., and stole watches valued at approximately $195,000.
On November 22, 2013, CUE, Perez and others traveled from New Jersey to Massachusetts and stole a van. The next day, they broke into the Michael Kors store in Lee, Mass., disabled the alarm system and stole watches and bag valued at approximately $500,000. The conspirators then traveled from Massachusetts, disposed of the stolen van in Staten Island, New York, and returned to New Jersey with the stolen merchandise.
On May 20, 2016, CUE pleaded guilty to one count of conspiracy to engage in the interstate transportation of stolen property. He is currently incarcerated in New Jersey on an unrelated burglary conviction.
On May 23, 2016, Perez pleaded guilty to two counts of conspiracy to engage in the interstate transportation of stolen property stemming from the 2013 burglaries and two additional burglaries in Kansas and Tennessee in August 2014. On August 18, 2016, he was sentenced to 60 months of imprisonment.
Judge Chatigny ordered CUE and Perez to pay restitution in the amount of $1.865 million.
This investigation was conducted by the Federal Bureau of Investigation, Clinton (Conn.) Police Department, Kittery (Maine) Police Department, Walton County (Fla.) Sheriff’s Office, Washington County (Md.) Sheriff’s Office, Pennsylvania State Police, Lee (Mass.) Police Department, Berkshire County (Mass.) Sheriff’s Office, Franklin (Tenn.) Police Department and Nashville (Tenn.) Police Department. The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Heather Cherry in the District of Connecticut, and Assistant U.S. Attorney Lee Deneke in the Middle District of Tennessee.
Fitzgerald Physician Pleads Guilty to Drug ChargesRead the Press Release
United States Attorney G.F. “Pete” Peterman, III announces that Dr. Edd Colbert Jones, III, from Fitzgerald, Georgia, has pled guilty to conspiring to distribute and dispense controlled substances including Oxycodone, Alprazolam and Diazepam. Dr. Jones was indicted on April 12, 2016.
In entering his plea, Dr. Jones admitted that he was a licensed physician operating a general practice in Fitzgerald, Georgia. He and co-conspirator Shannon Benedict devised a scheme whereby Ms. Benedict would receive prescriptions in her name and the names of others. The pills received as a result of the prescriptions were sold by Ms. Benedict in the Fitzgerald area. Dr. Jones never conducted any medical examination of Ms. Benedict or any of the persons in whose names he wrote prescriptions at her direction. These prescriptions were provided by him unlawfully and outside the scope of his professional practice.
These charges arose from the execution of a search warrant on April 22, 2015, at Ms. Benedict’s Ben Hill County residence. Inside the residence agents located four (4) prescriptions written by Dr. Jones to persons other than Ms. Benedict - two (2) for Oxycodone and two (2) for Xanax. A second search warrant executed at Dr. Jones’ Ben Hill County office produced no medical files associated with the prescriptions found at Ms. Benedict’s residence. Dr. Jones admitted that he should be held accountable for between 2500 and 5000 units of Schedule III narcotics. Upon entering his plea of guilty, Dr. Jones agreed to forfeit his medical license.
Sentencing in the case will be set in about sixty (60) days following a pre-sentence investigation. Dr. Jones faces a potential maximum penalty of twenty (20) years imprisonment, a $1 million fine, or both. Dr. Jones was taken into custody at the end of the hearing.
The case was investigated by the Drug Enforcement Administration and the Ben Hill County Sheriff’s Office. Assistant United States Attorney Leah E. McEwen is prosecuting the case for the government.
“The actions of Dr. Jones in distributing these highly dangerous and extremely addictive drugs violated not only the law but also his oath as a physician by bringing harm instead of healing and suffering instead of relief to those in his community. It is truly a shame to see the privilege of practicing medicine perverted in such a way,” said United States Attorney Peterman.
Daniel R. Salter, Special Agent in Charge of the DEA Atlanta Field Division said, “It is a sad commentary when a trusted person in the medical community attempts to hide behind the veil of legitimacy to commit criminal acts. The reckless distribution of pharmaceuticals results in addiction and death. Many thanks to the hard-working law enforcement partners who worked this case.”
For additional information, contact Pamela Lightsey, Public Information Officer, at 478-621-2603 or [email protected].
Farmington Man Sentenced to 7 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jedediah Waugh, age 43, of Farmington, was sentenced to 84 months in federal prison and ten (10) years of supervised release on one count of Receipt of Child Pornography. The sentencing hearing took place before the Honorable Timothy L. Brooks in the United States District Court in Fayetteville.
According to the Plea Agreement, in December, 2015, Immigration and Homeland Security Investigations (HSI) and the Northwest Arkansas Internet Crimes Against Children Taskforce initiated an investigation into the illegal trade and distribution of child pornography over publically available peer to peer online computer networks. During this time, law enforcement identified a specific computer that appeared to contain images of child pornography. A subpoena return from the suspect’s internet provider returned to the residence of Jedediah Waugh. Law enforcement executed a search warrant of Waugh’s residence and he admitted to downloading and receiving images of child pornography on his computer. A subsequent forensic examination Waugh’s hard drive revealed multiple images of child pornography depicting female children as young as eight (8) to nine (9) years of age engaging in sexually explicit conduct with an adult male. Waugh was indicted by a federal grand jury in May, 2016 and pleaded guilty to the charge in July, 2016.
The investigation was led by Homeland Security Investigations and the Internet Crimes Against Children Taskforce. Assistant United States Attorney Denis Dean 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.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Evansville man indicted in bomb threat incidentRead the Press Release
INDIANAPOLIS B United States Attorney Josh J. Minkler today announced the indictment of an Evansville man who is alleged to have sent a simulated bomb in a mail package along with a threatening letter to the Diamond Valley Postal Station. Kevin K. McCaffery, 21, was charged with one count of conveying false and misleading information and two counts of mailing threatening communications.
“Threatening the lives of federal employees and the responding public safety officials is a serious matter,” said Minkler. “Law enforcement is a dangerous occupation, one made even more difficult by the reckless behavior of Mr. McCaffery.”
McCaffery is alleged to have mailed a letter to the Postmaster at the Diamond Valley Postal Station located on Cross Valley Circle on Evansville’s Northside. Inside the package was a letter stating “death to all infidels” and a simulated explosive device using wires and parts of an e-cigarette. On May 17, 2016 a postal employee opened the package and discovered the contents.
The package was destroyed by the Evansville Police Department Bomb Squad but no actual bomb was found and no employees were injured.
According to Assistant United States Attorney Todd Shellenbarger who is prosecuting this case for the government, McCaffery faces up to five years imprisonment and a $250,000 fine if convicted.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
Essex County, New Jersey, Man Charged with Defrauding Victim Invester Out of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. – A North Caldwell, New Jersey, man was arrested this morning by FBI agents for fraudulently using funds that he solicited for bulk medical supply and consumer goods transactions, U.S. Attorney Paul Fishman announced.
Michael Esposito, 45, is charged by complaint with one count of wire fraud. He appeared this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was released on bail.
According to the complaint:
Esposito was the president of three companies that purported to be in the business of purchasing consumer products in bulk from manufacturers for resale to wholesalers and retailers.
In August 2013 Esposito told an individual referred to in the complaint as “Victim 1,” that Esposito had a customer that backed out of the purchase of medical supplies. Victim 1 was able to locate a buyer to whom Victim 1 could sell the goods for profit. However, after Victim 1 wired Esposito funds for the medical supplies, Esposito allegedly used the funds for unrelated expenses, including payments to apparent victim investors from prior transactions, restaurant bills, and salary for himself and others. Esposito also sent Victim 1 numerous fraudulent communications that the delivery of the medical supplies was imminent. Esposito never delivered the medical supplies to Victim 1.
During that time, Esposito also sent Victim 1 numerous emails detailing a series of investment opportunities in which Esposito would purchase consumer goods in bulk at substantial discounts. Esposito offered to give Victim 1 a significant profit from these deals in return for Victim 1’s investment. Again, Esposito used the funds for his own benefit instead of making the purported investments. He also sent Victim 1 emails and text messages falsely stating that certain deals were in progress or that problems with Esposito’s bank were preventing him from wiring funds to Victim 1.
Altogether, Victim 1 had more than $1 million wired to Esposito for the medical supplies and consumer goods transactions. During this time, Esposito caused approximately $517,000 to be sent by wire transfer to Victim 1, falsely representing that these funds were the return of principal and profits from successful deals. He converted the rest of the funds for his own use. Since January 2014, Esposito has ceased communicating with Victim 1.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Brooke M. Barnett Esq., Newark
District Woman Indicted on Murder and Other Charges in Death of Infant SonRead the Press Release
WASHINGTON – Lillian Alvarado, 24, of Washington, D.C., was indicted today by a grand jury in the Superior Court of the District of Columbia on murder and other charges in the 2013 death of her infant son, U.S. Attorney Channing D. Phillips announced.
The grand jury indicted Alvarado on charges of first-degree (premeditated) murder while armed, with aggravating circumstances; first-degree felony murder while armed, also with aggravating circumstances, and first-degree cruelty to children. The aggravating circumstances allege that the crime was especially heinous, atrocious or cruel and that the victim was especially vulnerable. The charges carry a potential sentence of life in prison with no possibility of release. Alvarado is to be arraigned on Nov. 4, 2016, by the Honorable Milton C. Lee.
No trial date has been scheduled. Alvarado, who was arrested in this case in January 2014 by the Metropolitan Police Department, remains held without bond.
According to the government’s evidence, on Thanksgiving Day, Nov. 28, 2013, Alvarado delivered her infant in the bathtub of her family’s apartment in the 6000 block of 14th Street NW. She had not told her family that she was pregnant. The baby boy was born alive; however, Alvarado allegedly strangled the baby, tried to drown the infant, and cut off his legs. The District of Columbia’s Office of the Chief Medical Examiner determined the infant died from asphyxiation and dismemberment. Alvarado allegedly tried to conceal the crime.
The baby’s death was discovered when bloody water leaked from Alvarado’s bathroom through to the apartment below. Law enforcement officers responded, believing they were searching for a water leak. With the assistance of Alvarado’s family, officers gained entrance to the bathroom, where they found the infant in the bathtub.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips expressed appreciation for the work of those investigating the case from the Metropolitan Police Department. He also acknowledged the efforts of those who have assisted with the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Nicholas Coleman, Colleen Kennedy, Cynthia Walicki-Chan, and Michael Tomaselli; Victim/Witness Specialist Marcia Rinker, and Paralegal Specialists Kelly Blakeney and Cynthia Mohammed. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Cynthia G. Wright, who is investigating and prosecuting the case.
District Man Sentenced to 18 Months in Prison for Attacking Deputy U.S. Marshal in Superior Court CellblockRead the Press Release
WASHINGTON - Vincent Wilson, 24, of Washington, D.C., was sentenced today to 18 months in prison for assaulting a Deputy United States Marshal during an incident at a courthouse earlier this year, announced U.S. Attorney Channing D. Phillips and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Wilson pled guilty in August 2016, in the U.S. District Court for the District of Columbia, to a charge of assaulting, resisting or impeding a federal law enforcement officer. He was sentenced by the Honorable Rudolph Contreras. Upon completion of his prison term, Wilson will be placed on three years of supervised release.
According to the government’s evidence, the chain of events took place on Jan. 5, 2016, while Wilson was at the Superior Court of the District of Columbia in an unrelated case. The incident began as a deputy marshal was escorting Wilson to a single cell in the main cell block at the courthouse. At this time, Wilson began yelling loudly at the deputy marshal and attempted to move toward him. The deputy marshal maintained control of Wilson with a hand on Wilson’s arm and a hand on Wilson’s head to prevent any potential spitting or other assaultive behavior until Wilson was in the cell. While inside the holding cell, Wilson turned and faced the deputy marshal, and from approximately five feet away, spit an amount of spit in his direction. A portion of Wilson’s saliva struck the deputy marshal under the left eye.
Thereafter, the deputy marshal entered the holding cell to control Wilson’s head in order to place a spit mask on Wilson to prevent any further spitting on other security officials. While the deputy marshal was trying to maintain control of Wilson’s head, Wilson continuously tried to rotate his body and head toward him. Aided by other officers, the deputy marshal moved Wilson to the floor of the cell. While still in handcuffs, Wilson reached up toward him and dug his fingernails into the deputy marshal’s left and right forearm, causing great pain and several large lacerations. Wilson then began to claw down on the forearms with his fingernails and dug further into the skin. The deputy marshal let up his control of Wilson’s head due to the pain. At that moment, Wilson was able to turn his head toward the deputy marshal and once again spit saliva, making contact with the deputy marshals’ skin, eyes, and mouth.
In announcing today’s sentence, U.S. Attorney Phillips and Marshal Hughes commended the actions of all the Deputy United States Marshals who protect the court system and judicial process. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias, Legal Assistant Peter Gaboton, and Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
District Man Pleads Guilty to Robbery Charges Following Series of Hold-Ups of Convenience StoresRead the Press Release
WASHINGTON – Melvin Smith, 45, of Washington, D.C., pled guilty today to three counts of robbery in connection with a recent series of robberies of convenience stores in Northeast and Northwest Washington, announced U.S. Attorney Channing D. Phillips.
Smith pled guilty to the charges in the Superior Court for the District of Columbia. In entering his guilty plea, Smith admitted to robbing six convenience stores in just over four weeks this summer. He is to be sentenced on Jan. 11, 2017 by the Honorable Danya A. Dayson.
According to the government’s evidence, the robberies included these crimes:
-Aug. 19, 2016, approximately 1:40 a.m.: Smith entered a 7-Eleven store in the 1200 block of Brentwood Road NE, approached a store clerk, and demanded access to the cash register. He then took approximately $50 before fleeing.
-Sept. 6, 2016, approximately 10:55 p.m.: Smith entered the 7-Eleven store in the 1300 block of Second Street NE. He approached a cashier and reached into two cash registers, taking approximately $430 before fleeing.
- Sept. 10, 2016, approximately 2:10 a.m.: Smith entered the 7-Eleven store in the 4800 block of Nannie Helen Burroughs Avenue NE and displayed an object on his right hip, which store personnel believed to be a handgun. He proceeded to the cash registers, demanded that they be opened, and took an unspecified amount of cash before fleeing.
-Sept. 12, 2016, approximately 8:45 p.m.: Smith entered the 6 & Q Market, in the 500 block of Q Street NW. Wearing a mask, he ordered a store clerk to the cash register. When the clerk responded that he did not have a key to the register, Smith grabbed the entire register, which contained an unknown amount of cash, and fled.
-Sept. 13, 2016, approximately 1:30 a.m.: Smith returned to the 7-Eleven on Second Street NE. According to a store clerk, he was carrying what appeared to be a silver gun in his waistband and demanded cash from the cash register. Smith then removed approximately $100 from the store’s two cash registers and fled.
-Sept. 18, 2016, approximately 9:45 p.m.: Smith entered a 7-Eleven store in the 900 block of Bladensburg Road NE. Wearing a mask, he displayed what the clerk believed to be a dark gun in his waistband and demanded that the clerk open the register. Smith then proceeded to take money from both of the registers, before fleeing.
Smith was arrested on Sept. 19, 2016. When he was arrested, Smith was found to be in possession of a unique mask and bandana that surveillance video confirmed were used in the robberies. He has been in custody since his arrest. The guilty plea specified the offenses that were committed on Aug. 19, Sept. 6, and Sept. 12, 2016.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work of Assistant U.S. Attorney Richard Barker, who investigated and prosecuted the case.
District Election Officers Appointed to Handle Potential Complaints of Election Fraud and Voting Rights AbuseRead the Press Release
ALEXANDRIA, Va. – Assistant U.S. Attorneys James P. Gillis, Randy Stoker, and L. Margaret Harker have been appointed to serve as District Election Officers (DEO) for the Eastern District of Virginia, and will lead the efforts of this office in connection with the Justice Department’s nationwide Election Day Program for the upcoming general elections.
District Election Officers are responsible for overseeing the district’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.
“Every citizen must be able to vote without interference or discrimination,” said U.S. Attorney Dana J. Boente. “They need to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 8, the DEOs will be on duty while the polls are open.
From 6 a.m. to 8:30 a.m., and from 5 p.m. to 7 p.m., any calls should be directed to 703-299-3700. From 8:30 a.m. to 5 p.m., calls should be directed to the below phone numbers:
Alexandria - Assistant U.S. Attorney James P. Gillis, 703-299-3700
Norfolk and Newport News - Assistant U.S. Attorney Randy Stoker, 757-441-6331
Richmond - Assistant U.S. Attorney L. Margaret Harker, 804-819-5400
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
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.
Desloge Man Indicted for Robbing Blue Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Desloge, Mo., man, who was arrested after a high-speed chase in Callaway County, Mo., was indicted by a federal grand jury today for robbing a Blue Springs, Mo., bank and for illegally possessing a firearm.
James Todd Hulsey, 51, of Desloge, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Hulsey on Oct. 17, 2016. Hulsey remains in federal custody.
Today’s indictment alleges that Hulsey stole $7,845 from Adams Dairy Bank on Oct. 14, 2016. In addition to bank robbery, the indictment charges Hulsey with one count of being a felon in possession of a firearm and one count of possessing and brandishing a firearm in furtherance of a crime of violence.
According to an affidavit filed in support of the original criminal complaint, Hulsey walked into Adams Dairy Bank, 651 N.E. Coronado Dr., Blue Springs, at approximately 12:15 p.m. on Oct. 14, 2016. Hulsey allegedly approached the teller counter, displayed a Diamondback Arms 9mm pistol, presented a demand note to the teller and threatened to kill her. The teller turned over $7,845, the affidavit says, and Hulsey fled from the bank on foot. A description of the robber and the associated vehicle used in the robbery were broadcast to law enforcement agencies.
A couple of hours later, the affidavit says, a state trooper saw Hulsey’s vehicle traveling eastbound on I-70 in Callaway County, Mo., and attempted to stop the vehicle. A vehicle pursuit ensued, reaching speeds of 120 – 130 miles per hour. Hulsey’s vehicle got a flat tire and ran off the road. Hulsey fled from the vehicle on foot and a 75-yard foot pursuit took place before Hulsey was taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hulsey has five felony convictions for bank robbery and felony convictions for an illegal weapon and for receiving stolen property.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Orsinger. It was investigated by the FBI, the Blue Springs, Mo., Police Department, the Missouri State Highway Patrol and the Callaway County, Mo., Sheriff’s Department.
Daniel Burgess Pleads Not Guilty to Fraud ChargeRead the Press Release
The United States Attorney for the District of Vermont announced that Daniel Burgess, 50, of Stowe, pleaded not guilty on October 31, 2016 in United States District Court in Burlington to a charge of wire fraud. U.S. Magistrate Judge John M. Conroy released Burgess on conditions pending trial, which has not been scheduled.
On October 27, a federal grand jury in Burlington returned a one-count wire fraud charge indictment against Burgess. According to the indictment, Burgess engaged in the business of buying and selling securities through a company he owned named Tucker Financial Services. The indictment alleges that in July 2011, Burgess entered into a contract with a woman from Nevada in which Burgess agreed to try to sell 520,000 shares of a penny stock the woman owned. Under the terms of the agreement, the woman would receive 80% of the gross proceeds of any stock sales and Burgess would be entitled to the remaining 20%.
The indictment charges that between August and October 2011, Burgess sold all 520,0000 shares of the penny stock for a total of about $619,000. The woman’s 80% share of the sale proceeds was about $495,000. Burgess paid her about $246,000, but fraudulently converted the remaining money for his own use.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Burgess faces up to 20 years of imprisonment and a fine of up to $500,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Federal Bureau of Investigation and the Vermont Department of Financial Regulation.
Burgess is represented by Jasdeep Pannu. The prosecutor is Assistant U.S. Attorney Gregory Waples.
City of Fairfield and the Fairfield Housing Authority Pay $680,000 to Settle False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — The City of Fairfield and the Fairfield Housing Authority (FHA) paid $680,000 to settle federal False Claims Act allegations that they received grants to fund two coordinator positions for a federal housing program but did not use the funds for that purpose, Acting United States Attorney Phillip A. Talbert announced today.
The FHA administers the Section 8 Housing Choice Voucher Program (HCV), the HCV Homeownership Program, and the Family Self-Sufficiency Program (FSS) for the City of Fairfield. Section 8 of the federal Housing Act of 1937 authorizes the payment of rental housing assistance to private landlords on behalf of low-income households. The HCV Program is the federal government’s major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. The FSS Program provides case management for Section 8 families who desire to improve their earning potential and move towards financial independence and homeownership.
According to court documents, the FHA, with the city’s approval, applied for and received federal grants from the Department of Housing and Urban Development (HUD) to fund two full-time FSS program coordinators from January 2012 through November 2014, but neither the city nor the FHA employed any full-time FSS program coordinators during that time. Court documents further allege that the FHA violated the False Claims Act by submitting data into HUD’s Voucher Management System, affirming that it was spending the grant funds on two full‑time FSS program coordinators, when no such coordinators were employed.
“Housing Authorities that receive HUD grants have a duty to help families in need,” said Acting U.S. Attorney Talbert. “When families try to become self-sufficient by applying to programs like Fairfield’s Family Self-Sufficiency Program, they deserve to be assisted at every step by dedicated and responsive professionals. This settlement helps to ensure that limited federal resources are used for that purpose.”
“HUD’s Family Self-Sufficiency program supports families living in public housing and those using Housing Choice Vouchers and working to increase their earned income,” said HUD Regional Administrator Jon Gresley. “With such limited resources available to help reduce household dependency on public subsidy, it is essential that the federal government steward these investments to maximize the benefit to eligible families in Fairfield and beyond. This agreement does that.”
The allegations resolved by the settlement were first raised in a lawsuit filed against the City of Fairfield and the FHA under the qui tam, or whistleblower, provisions of the False Claims Act by a former FHA employee. The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $129,000 of the recovery.
This case was handled by Assistant United States Attorney M. Anderson Berry through a coordinated effort with the Department of Housing and Urban Development’s Eric Huhtala, Special Agent for the Office of Inspector General, and Ji Yoo, an attorney with the Office of General Counsel. The claims settled by this agreement are allegations only, and there has been no determination of liability.
California Woman Sentenced to Prison in Connection with Scheme to Defraud Struggling HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHELLE LEFAOSEU, also known as “Michelle Bennett,” “Michelle Lee” and “Michelle Page,” 42, of Huntington Beach, Calif., was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by one year of supervised release, for participating in an extensive mortgage loan modification scheme.
According to court documents and statements made in court, LEFAOSEU worked at a California-based company that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The company did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” and “Nation Star Financial.”
Aria Maleki presided over the entire structure of this scheme, and LEFAOSEU was head of the processing department. Acting as representatives of the above-named entities, members of Maleki’s sales team cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. Homeowners were charged fees that typically ranged from approximately $2,500 to $4,300 for the services. To induce homeowners to pay these fees, scheme participants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ company, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. They also directed homeowners to mail their checks to addresses and mail boxes that Maleki and others had set up in states other than California.
After members of the sales team fraudulently induced homeowners to pay for the company’s services, the homeowners’ files were transferred to LEFAOSEU and the junior processors working under her supervision. LEFAOSEU was fully aware of her co-workers’ lies and, during her contact with victims, repeatedly helped to cover up those lies.
As a result of this scheme, more than 1,000 homeowners suffered losses totaling more than $3 million.
On January 21, 2016, a grand jury in New Haven returned an indictment charging Maleki, LEFAOSEU and five other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
On July 11, 2016, LEFAOSEU pleaded guilty to one count of misprision of a felony.
On March 22, 2016, Maleki pleaded guilty to one count of conspiracy to commit mail and wire fraud and, on July 18, 2016, he was sentenced to 112 months of imprisonment. He also forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
The other five defendants, all of whom were members of Maleki’s sales team, pleaded guilty and were sentenced to prison terms ranging from 18 months to 58 months.
All seven defendants have been ordered to pay restitution in the amount of $2,390,496.59.
This matter was investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
California Resident Convicted of Conspiracy, Theft of Public Money and Aggravated Identity TheftRead the Press Release
A federal jury sitting in Oakland, California convicted a resident of Richmond, California yesterday for his role in a conspiracy to steal identities and cash fraudulently obtained and stolen U.S. Treasury checks, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division; U.S. Attorney Brian J. Stretch of the Northern District of California; and Special Agent in Charge Michael T. Batdorf of Internal Revenue Service-Criminal Investigation (IRS-CI).
Hugh Robinson was convicted on all charges of conspiracy to commit theft of public money, theft of public money, and aggravated identity theft following a five-day trial before U.S. District Court Judge Jeffery S. White in the Northern District of California. In November 2015, Robinson was charged, along with 10 co-defendants. According to the indictment and evidence presented at trial, from at least August 2013 through April 2015, Robinson conspired with his co-defendants to obtain the names of deceased individuals by searching California death records, and electronically file false income tax returns in the names of those deceased individuals claiming refunds. Robinson and his co-defendants listed addresses on these tax returns to which they had access to enable them to retrieve the refund checks.
According to the indictment and the evidence presented at trial, Janel McDonald, a charged co-conspirator, provided false and fraudulent California identification documents to other co-conspirators who used the false identifications to negotiate the refund checks. Robinson and other co-defendants cashed checks at various Walmart stores, including a store in Richmond, California where Robinson worked with co-conspirators to negotiate the fraudulently obtained checks. According to the criminal complaint, a search of Robinson’s residence yielded U.S. Treasury checks totaling more than $237,000.
Sentencing is scheduled for Feb. 7, 2017. Robinson faces a statutory maximum sentence of five years in prison for conspiracy to commit theft of public money, 10 years in prison for each count of theft of public money, and a mandatory sentence of two years in prison for each count of aggravated identity theft. Robinson also faces a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Stretch, and Special Agent in Charge Batdorf commended agents of IRS-CI, who conducted the investigation, and Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera, and Trial Attorney Gregory Bernstein of the Justice Department’s Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Buffalo Man Arrested and Charged with Possession with Intent to Distribute Synthetic Marijuana Near an Elementary SchoolRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Salleh Dubaishi, 40, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute a controlled substance and possession with intent to distribute a controlled substance within 1,000 feet of a public or private elementary or secondary school. The charges carry a minimum penalty of one year in prison, a maximum of 40 years and a $2,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that on November 17, 2015, the New York State Department of Taxation and Finance conducted a regulatory inspection of Pyramid Express HSD, a convenience store located near Public School 45 in Buffalo. Investigators recovered over 500 packages of synthetic marijuana packages, which were labeled with names such as, “Strawberry Scooby Snax,” “Hypnotic,” and “Insane.”
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was released on conditions.
The criminal complaint is the result of an investigation by Immigration and Csutoms Enforcement, Homeland Security Investigations, under the direction of James C. Spero, and the NYS Department of Taxation and Finance, under the direction of Commissioner Thomas Mattox.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bronx Attorney Pleads Guilty in Manhattan Federal Court to Preparing Fraudulent Tax Returns for ClientsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Caroline D. Ciraolo, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, announced that WILLIAM DOONAN, an attorney who operated a tax preparation business in the Bronx, New York, pled guilty today in Manhattan federal court to charges related to his participation in filing fraudulent tax returns, falsely claiming more than $6 million in deductions. DOONAN pled guilty today before U.S. Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said: “William Doonan used his law degree and tax preparation business to fleece the IRS out of millions of dollars in fraudulent tax deductions. As he admitted today, Doonan claimed numerous false deductions for thousands of clients, defrauding the IRS and unlawfully depriving the public of tax revenue.”
Principal Deputy Assistant Attorney General Caroline D. Ciraolo said: “William Doonan used his law practice to prepare thousands of false tax returns each year with phony deductions, costing the U.S. treasury more than $1.5 million. His conviction sends a clear message – we will fully prosecute crooked tax preparers – whether they be lawyers and tax professionals or temporary storefront operators.”
According to the allegations contained in the Information filed in Manhattan federal court and statements made during the plea proceeding:
Since at least 2009, DOONAN has been in the business of preparing federal tax returns for clients in exchange for fees. DOONAN, a New York licensed attorney since 1982, carried out his tax preparation business in the Bronx using the firm name “William Doonan, Esq.” DOONAN prepared and filed more than 3,000 federal tax returns with the Internal Revenue Service (“IRS”) each year and regularly prepared and filed client returns that were false and fraudulent. For example, on some of his clients’ returns, DOONAN added false medical and dental expenses, state and local taxes, home mortgage interest, gifts to charity, job expenses, and certain miscellaneous deductions. DOONAN also attached Schedules C to his clients’ returns that reported “consulting” businesses that the relevant clients did not own, operate, or materially participate in, and business losses that the relevant clients did not incur. Between tax years 2009 through tax year 2012, DOONAN included in excess of $6 million in these fabricated and inflated items on his clients’ federal tax returns.
* * *
DOONAN, 69, of the Bronx, New York, pled guilty to one count of aiding and assisting in the preparation of a false tax return, and one count of obstructing and impeding the due administration of internal revenue laws. Each charge carries a maximum sentence of three years in prison. As part of his plea, DOONAN agreed that he caused a tax loss of between $1.5 and $3.5 million, and has agreed to pay $65,820 in restitution to the IRS.
DOONAN is scheduled to be sentenced by U.S. District Judge Vernon S. Broderick on February 10, 2017, at 11:00 a.m. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara and Ms. Ciraolo praised the outstanding efforts of the IRS-CI in the investigation. This case is being prosecuted by the U.S. Attorney’s Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Jorge Almonte (of the Tax Division) is in charge of the prosecution.
Baden Tax Collector Sentenced to 3 Years in Prison for Stealing from Borough, Ambridge School DistrictRead the Press Release
PITTSBURGH - A resident of Baden, Pennsylvania, has been sentenced in federal court to 37 months imprisonment followed by 3 years of supervised release on his conviction of mail fraud and filing false income tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Keith Kristek, age 57, of Baden, Pennsylvania.
According to information presented to the court, from approximately January, 2007 through February, 2015, Kristek, who was the de facto Tax Collector for Baden Borough, devised and executed a scheme to steal in excess of $1,060,000 in tax payments from Baden Borough and the Ambridge Area School District. Additionally, Kristek failed to report his receipt of the stolen funds and filed false income tax returns with the IRS for the tax years of 2011 through 2014.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Internal Revenue Service, and the Beaver County District Attorney’s Office for the investigation leading to the successful prosecution of Kristek.
Attorney General Loretta E. Lynch and U.S. Attorney Preet Bharara Announce Indictment of Seven Individuals and Six Arrests in United States and Mexico on Sex Trafficking and Related ChargesRead the Press Release
A 21-count indictment was unsealed in the U.S. District Court for the Southern District of New York charging seven defendants with sex trafficking, conspiracy and related offenses. The indictment, which was returned under seal on Sept. 15, 2016, alleges that the defendants are members of an international sex trafficking organization which operated in Mexico and the United States between 2000 and 2016. Fourteen victims of the charged sex trafficking organization are identified in the indictment.
Six of the defendants charged were taken into custody on Oct. 26 and 27, 2016. As part of a coordinated bilateral law enforcement action, Raul Romero-Granados, aka Chicarcas and El Negro, 32, and Isaac Lomeli-Rivera, aka Giro, 34, were arrested in the United States. Efrain Granados-Corona, aka Chavito and Cepillo, 41; Alan Romero-Granados, aka El Flaco, 24; Pedro Rojas-Romero, 37, and Emilio Rojas-Romero, 34, were arrested in Mexico. Juan Romero-Granados, aka Chegoya and El Guero, remains a fugitive. The defendants arrested in Mexico were taken into custody by Mexican authorities pursuant to provisional arrest warrants submitted by the United States in August 2016. The defendants arrested in the United States were presented on Oct. 27, 2016, before U.S. Magistrate Judge Kevin Nathaniel Fox of the Southern District of New York, and appeared today before U.S. District Judge Andrew L. Carter Jr. of the Southern District of New York.
The charges were announced today by Attorney General Loretta E. Lynch, U.S. Attorney Preet Bharara of the Southern District of New York, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE), Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and Special Agent in Charge Angel M. Melendez of ICE’s Homeland Security Investigations (HSI) in New York.
“Human trafficking is a corrosive and degrading practice that goes against both the rule of law and the most basic standards of human dignity,” said Attorney General Lynch. “This indictment is yet another sign of the Justice Department’s steadfast determination to hold traffickers accountable for their heinous crimes, and of our unshakeable commitment to helping survivors reclaim their futures and restart their lives. I want to commend our partners in Mexican law enforcement for their commitment to combating human trafficking. We thank them for their cooperation in this important action, and for their ongoing collaboration in our shared efforts to end human trafficking in our nations.”
“The indictment outlines alleged conduct of these defendants that is brutal and predatory,” said U.S. Attorney Bharara. “The defendants allegedly raped, beat, tortured, and enslaved their victims, often minors who were coercively separated from their families. The combined efforts of American and Mexican law enforcement that made these charges possible reflect our joint commitment to protect victims of these most predatory crimes that treat human beings as chattel.”
“The sexual exploitation of human beings is one of the vilest crimes committed against humanity,” said Director Saldaña. “This operation reflects our commitment to bring to justice traffickers who have no regard for human life. Each arrest is a testament to the outstanding bilateral relationship between Mexico and the United States. We are sending a clear message to human traffickers that law enforcement agencies on both sides of the border have them in their sights.”
“Through vigorous enforcement efforts and collaborative international partnerships, the Justice Department works tirelessly to bring traffickers to justice and protect victims held in modern-day slavery,” said Principal Deputy Assistant Attorney General Gupta. “Human traffickers degrade the humanity of the vulnerable victims they target. I commend our Mexican counterparts for their dedication to fighting the heinous crime of human trafficking, their sustained collaboration in advancing bilateral enforcement efforts and their critical role in this case.”
“Human trafficking is nothing less than a modern form of slavery and no one should be forced to live in a world of fear and involuntary servitude,” said Special Agent in Charge Melendez. “HSI will remain steadfast in its commitment to working with its law enforcement partners to dismantle the international criminal organizations involved in human trafficking.”
As alleged in the superseding indictment unsealed on October 27, 2016 in federal court in Manhattan:
Efrain Granados-Corona, Raul Romero-Granados, Isaac Lomeli-Rivera, Juan Romero-Granados, Alan Romero-Granados, Pedro Rojas-Romero and Emilio Rojas-Romero are members of an international sex trafficking organization known as the STO. Many of the members of the STO are relatives. Efrain Granados-Corona is the uncle of Raul Romero-Granados, Isaac Lomeli-Rivera (through his relationship with Granados-Corona’s niece), Juan Romero-Granados and Alan Romero-Granados. Pedro and Emilio Rojas-Romero are brothers, as are Juan and Alan Romero-Granados. Isaac Lomeli-Rivera is Raul Romero-Granados’s brother-in-law.
Between at least 2000 and the present, members of the STO used romantic promises, physical and sexual violence, threats, lies and coercion to force and coerce adult and minor women to work in prostitution in both Mexico and the United States.
The trafficking organization used a similar approach in many cases. Often, a member of the STO would become romantically involved with a victim – frequently a minor – in Mexico. The trafficker would then uses multiple means to isolate the victim from her family. In some cases, the trafficker would use romantic promises to induce the victim to leave her family and live with him. In other cases, the trafficker would rape the victim, making it difficult for her to return to her family due to the associated stigma of the rape. Once a victim was separated from her family, the trafficker would frequently monitor her communications, keep her locked in an apartment, leave her without food and physically or sexually abuse the victim. The traffickers often told victims that the traffickers owed a significant debt and that the victim needs to work in prostitution to assist in repaying the debt. The traffickers typically begin forcing the victims to work in prostitution in Mexico, frequently in a neighborhood of Mexico City known as “La Merced.” Victims would often be required to see at least 20 to 40 customers per day. Traffickers would monitor the number of clients a victim sees by surveilling her, communicating with brothel workers and by counting the number of condoms provided to a victim. Traffickers typically would require the victims to turn over all of the prostitution proceeds.
After a victim worked in prostitution in Mexico for some time, the traffickers typically would arrange for the victim to be smuggled into the United States. Members of the STO often assisted one another in making smuggling arrangements. In many cases, multiple traffickers and multiple victims would be smuggled into the United States together. In other cases, one trafficker may remain in Mexico while arranging for a victim to be smuggled together with another trafficker and other victims.
Once in the United States, the members of the STO generally maintained their victims at one of several shared apartments in New York City. Victims living in the same apartment would frequently be forbidden to communicate with one another. Once in the United States, traffickers would continue to use physical and sexual violence, threats of the same, lies and coercion to force the victims to work in prostitution.
In most cases, the trafficker or another member of the STO would provide a victim with contact information with which to find work. The victims typically work weeklong shifts either in a brothel or in a “delivery service.” In a delivery service, the victim would be delivered to a customer’s home by a “driver.” These brothels and delivery services are located both within New York, and in surrounding states, including, but not limited to Connecticut, Maryland, Virginia, New Jersey and Delaware.
Generally, each customer paid $30 to $35 for 15 minutes of sex. Of that, half of the money typically went to the driver (in the case of a delivery service) or to the brothel. The other $15 went to the victim, who was then typically forced to give all of the proceeds to the trafficker or to another member of the STO.
The traffickers then frequently sent, or had their victims send, some of the prostitution proceeds to traffickers’ family members and associates in Mexico by wire transfer. Such transfers provide financial assistance to the traffickers’ families and financial support to the traffickers themselves if they return to Mexico.
Since 2009, the Department of Justice, through the Civil Rights Division’s Human Trafficking Prosecution Unit and the Department of Homeland Security through HSI have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative aimed at strengthening high-impact prosecutions under both U.S. and Mexican law. The initiative is aimed at dismantling human trafficking networks operating across the U.S.-Mexico border, bringing human traffickers to justice, reuniting victims with their children and restoring the rights and dignity of human trafficking victims held under the trafficking networks’ control. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in New York, Georgia, Florida and Texas since 2009, and numerous Mexican federal and state prosecutions of associated sex traffickers.
On June 23, 2016, Attorney General Lynch announced the extradition to the United States of five defendants apprehended in Mexico through a prior bilateral human trafficking enforcement action that resulted in the arrests of eight defendants charged in a 27-count indictment in the Eastern District of New York with operating an international sex trafficking enterprise. In announcing the charges unsealed on October 27, 2016, the Attorney General commended U.S. and Mexican law enforcement partners for their shared commitment to sustaining the momentum of these coordinated bilateral anti-trafficking efforts.
The charges in the indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty.
All seven defendants were charged with conspiracy to commit sex trafficking, which has a maximum sentence of life in prison. Raul Romero-Granados and Efrain Granados-Corona were each charged with two counts of sex trafficking of a minor by force, fraud or coercion, which also carries a maximum sentence of life in prison. Emilio Rojas-Romero, Pedro Rojas-Romero and Isaac Lomeli-Rivera were charged with two counts of sex trafficking by force, fraud or coercion, and Efrain Granados-Corona, Raul Romero-Granados, Juan and Alan Romero-Granados were charged with one count of sex trafficking by force, fraud or coercion, which also carries a maximum sentence of life in prison. Raul Romero-Granados was charged with two counts of transportation of a minor for purposes of prostitution and Efrain Granados-Corona was charged with one count of transportation of a minor for purposes of prostitution, which also carries a maximum sentence of life in prison. Isaac Lomeli-Rivera was charged with two counts of transportation for the purposes of prostitution and Efrain Granados-Corona, Juan Romero-Granados, Alan Romero-Granados, Pedro Rojas-Romero and Emilio Rojas-Romero were charged with one count of transportation for purposes of prostitution. That charge carries a maximum sentence of 10 years in prison.
In announcing the indictment, Attorney General Lynch, U.S. Attorney Bharara, Director Saldaña and Principal Deputy Assistant Attorney General Gupta commended the HSI’s New York Office, the HSI Mexico Attaché Office, the State Department and the New York City Police Department for their assistance, and praised the government of Mexico for its role in this bilateral enforcement action. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families in connection with this case and others.
The case is being prosecuted by Assistant U.S. Attorneys Kristy J. Greenberg, Jane Kim and Rebecca G. Mermelstein of the Southern District of New York with the support of the Civil Rights Division’s Human Trafficking Prosecution Unit and the Criminal Division’s Office of International Affairs.
Attorney General Loretta E. Lynch and U.S. Attorney Preet Bharara Announce the Indictment of Seven Individuals and Six Arrests in the United States and Mexico on International Sex Trafficking ChargesRead the Press Release
Attorney General Loretta E. Lynch, Preet Bharara, the United States Attorney for the Southern District of New York, Sarah R. Saldaña, Director of U.S. Immigration and Customs Enforcement (“ICE”), Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and Angel M. Melendez, Special Agent in Charge of the New York Field Office of ICE’s Homeland Security Investigations (“HSI”), announced the unsealing of a 21-count superseding indictment (the “Indictment”) in the U.S. District Court for the Southern District of New York charging seven defendants with sex trafficking offenses. The Indictment, which was returned under seal on September 15, 2016, alleges that the defendants are members of an international sex trafficking organization that exploited and trafficked adult and minor women in Mexico and in the United States from at least 2000 to 2016. Members of the defendants’ sex trafficking organization, which operated largely as a family business, used false promises, physical and sexual violence, and threats to force and coerce adult and minor women to work in prostitution for the organization’s profit in both Mexico and the United States.
Six of the defendants charged were taken into custody on October 26 and 27, 2016. As part of a coordinated bilateral law enforcement action, two defendants, RAUL ROMERO-GRANADOS, a/k/a “Chicarcas,” a/k/a “El Negro,” and ISAAC LOMELI-RIVERA, a/k/a “Giro,” were arrested in the United States, and four defendants, EFRAIN GRANADOS-CORONA, a/k/a “Chavito,” a/k/a “Cepillo,” ALAN ROMERO-GRANADOS, a/k/a “El Flaco,” PEDRO ROJAS-ROMERO, and EMILIO ROJAS-ROMERO, were arrested in Mexico. The defendants arrested in Mexico were taken into custody by Mexican authorities pursuant to Provisional Arrest Warrants submitted by the United States in August 2016. The defendants arrested in the United States were presented on October 27, 2016, in Manhattan federal court before United States Magistrate Judge Kevin Nathaniel Fox. One defendant, JUAN ROMERO-GRANADOS, a/k/a “Chegoya,” a/k/a “El Guero,” remains a fugitive. The case has been assigned to United States District Judge Andrew L. Carter, Jr.
Attorney General Loretta E. Lynch said: “Human trafficking is a corrosive and degrading practice that goes against both the rule of law and the most basic standards of human dignity. This Indictment is yet another sign of the Justice Department’s steadfast determination to hold traffickers accountable for their heinous crimes, and of our unshakeable commitment to helping survivors reclaim their futures and restart their lives. I want to commend our partners in Mexican law enforcement for their commitment to combating human trafficking. We thank them for their cooperation in this important action, and for their ongoing collaboration in our shared efforts to end human trafficking in our nations.”
U.S. Attorney Preet Bharara said: “The Indictment outlines alleged conduct of these defendants that is brutal and predatory. The defendants allegedly raped, beat, tortured, and enslaved their victims, often minors who were coercively separated from their families. The combined efforts of American and Mexican law enforcement that made these charges possible reflect our joint commitment to protect victims of these most predatory crimes that treat human beings as chattel.”
ICE Director Sarah R. Saldaña said: “The sexual exploitation of human beings is one of the vilest crimes committed against humanity. This operation reflects our commitment to bring to justice traffickers who have no regard for human life. Each arrest is a testament to the outstanding bilateral relationship between Mexico and the United States. We are sending a clear message to human traffickers that law enforcement agencies on both sides of the border have them in their sights.”
Principal Deputy Assistant Attorney General Vanita Gupta said: “Through vigorous enforcement efforts and collaborative international partnerships, the Justice Department works tirelessly to bring traffickers to justice and protect victims held in modern-day slavery. Human traffickers degrade the humanity of the vulnerable victims they target. I commend our Mexican counterparts for their dedication to fighting the heinous crime of human trafficking and their critical assistance in this case.”
HSI Special Agent in Charge Angel M. Melendez said: “Human trafficking is nothing less than a modern form of slavery and no one should be forced to live in a world of fear and involuntary servitude. HSI will remain steadfast in its commitment to working with its law enforcement partners to dismantle the international criminal organizations involved in human trafficking.”
As alleged in the Indictment unsealed on October 27, 2016, in Manhattan federal court:[1]
EFRAIN GRANADOS-CORONA, a/k/a “Chavito,” a/k/a “Cepillo,” RAUL ROMERO-GRANADOS, a/k/a “Chicarcas,” a/k/a “El Negro,” ISAAC LOMELI-RIVERA, a/k/a “Giro,” JUAN ROMERO-GRANADOS, a/k/a “Chegoya,” a/k/a “El Guero,” ALAN ROMERO-GRANADOS, a/k/a “El Flaco,” PEDRO ROJAS-ROMERO, and EMILIO ROJAS-ROMERO, the defendants, are members of an international sex trafficking organization (the “STO”). Many of the members of the STO are related by blood, marriage and community. For example: EFRAIN GRANADOS-CORONA is the uncle of RAUL ROMERO-GRANADOS, ISAAC LOMELI-RIVERA (through LOMELI-RIVERA’s relationship with EFRAIN GRANADOS-CORONA’s niece), JUAN ROMERO-GRANADOS, and ALAN ROMERO-GRANADOS; PEDRO ROJAS-ROMERO and EMILIO ROJAS-ROMERO are brothers; JUAN ROMERO-GRANADOS and ALAN ROMERO-GRANADOS are also brothers; and ISAAC LOMELI-RIVERA is RAUL ROMERO-GRANADOS’s brother-in-law.
Between at least in or about 2000 and the present, members of the STO (the “Traffickers”) have used false romantic promises, physical and sexual violence, threats of the same, lies, and coercion to force and coerce adult and minor women (the “Victims”) to work in prostitution in both Mexico and the United States.
In most cases, a Trafficker entices a Victim – frequently a minor – in Mexico. The Trafficker then uses multiple means to isolate the Victim from her family. In some cases, the Trafficker uses romantic promises to induce the Victim to leave her family and live with him. In other cases, the Trafficker rapes the Victim, making it difficult for her to return to her family due to the associated stigma of the rape. Once a Victim is separated from her family, the Trafficker frequently monitors her communications, keeps her locked in an apartment, leaves her without food, and engages in physical or sexual violence against the Victim. Traffickers often tell Victims that the Traffickers owe a significant debt and that the Victim must work in prostitution to assist in repaying the debt. Traffickers typically begin forcing the Victims to work in prostitution in Mexico, frequently in a neighborhood of Mexico City known as “La Merced.” Victims are often required to see at least 20 to 40 customers per day. Traffickers monitor the number of clients a Victim sees by surveilling the Victim, communicating with brothel workers, and by counting the number of condoms provided to a Victim. Traffickers typically require the Victims to turn over all of the prostitution proceeds to the Traffickers.
After a Victim has worked in prostitution in Mexico for some time, Traffickers typically arrange for the Victim to be smuggled into the United States. Members of the STO assist one another in making smuggling arrangements. In many cases, multiple Traffickers and multiple Victims are smuggled into the United States together. In other cases, one Trafficker may remain in Mexico while arranging for a Victim to be smuggled together with another Trafficker and other Victims.
Once in the United States, the members of the STO generally maintain their Victims at one of several shared apartments in New York City. Victims living in the same apartment are frequently forbidden to communicate with one another. Once in the United States, Traffickers continue to use physical and sexual violence, threats of the same, lies, and coercion to force the Victims to work in prostitution.
In most cases, the Trafficker or another member of the STO provides a Victim with contact information with which to find work. The Victims typically work weeklong shifts either in a brothel, or in a “delivery service.” In a delivery service, the Victim is delivered to a customer’s home by a “driver.” These brothels and delivery services are located both within New York, and in surrounding states, including, but not limited to Connecticut, Maryland, Virginia, New Jersey, and Delaware.
Generally, each customer pays $30-35 for 15 minutes of sex. Of that, half of the money typically goes to the driver (in the case of a delivery service) or to the brothel. The other $15 goes to the Victim, who is then typically forced to give all of the proceeds to the Trafficker. When a Trafficker is unavailable, a Victim may also give the proceeds to another member of the STO.
The Traffickers then frequently send, or have their Victims send, some of the prostitution proceeds to Traffickers’ family members and associates in Mexico by wire transfer. Such transfers provide financial assistance to the Traffickers’ families and provide financial support to the Traffickers themselves if they return to Mexico.
* * *
Since 2009, the Department of Justice and ICE’s Homeland Security Investigations (HSI) have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative aimed at strengthening high-impact prosecutions under both U.S. and Mexican law. The initiative is aimed at dismantling human trafficking networks operating across the United States-Mexico border, bringing human traffickers to justice, reuniting victims with their children, and restoring the rights and dignity of human trafficking victims held under the trafficking networks’ control. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in New York, Georgia, Florida, and Texas since 2009, and numerous Mexican federal and state prosecutions of associated sex traffickers. In announcing the unsealed charges, Attorney General Lynch commended U.S. and Mexican law enforcement partners for their shared and continued commitment to coordinated bilateral anti-trafficking efforts.
Attorney General Lynch and U.S. Attorney Bharara praised the outstanding investigative work of HSI, the work of the Mexican government and Mexican law enforcement in executing the arrests and preparing for the extradition of the defendants to the United States, and the assistance provided by the New York City Police Department, the State Department, the Civil Rights Division’s Human Trafficking Prosecution Unit, and the Criminal Division’s Office of International Affairs. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families in connection with this case and others.
* * *
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
The prosecution is being handled by the Violent and Organized Crime Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Kristy J. Greenberg, Jane Kim, and Rebecca G. Mermelstein are in charge of the prosecution.
United States v. Efrain Granados-Corona, a/k/a “Chavito,” a/k/a “Cepillo,” et al.,
S3 16 Cr. 324 (ALC)
COUNT
CHARGE
DEFENDANT(S)
MAXIMUM PENALTIES
1
Conspiracy to Commit Sex Trafficking
18 U.S.C. § 1594
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo,”
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro,”
ISAAC LOMELI-RIVERA,
a/k/a “Giro,”
JUAN ROMERO-GRANADOS,
a/k/a “Chegoya,”
a/k/a “El Guero,” ALAN ROMERO-GRANADOS,
a/k/a “El Flaco,”
PEDRO ROJAS-ROMERO, EMILIO ROJAS-ROMERO
Life Imprisonment
2
Sex Trafficking of a Minor by Force, Fraud, or Coercion
18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
Life Imprisonment
3
Sex Trafficking of a Minor by Force, Fraud, or Coercion
18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2
EFRAIN GRANADOS-CORONA, a/k/a “Chavito,”
a/k/a “Cepillo,”,
Life Imprisonment
4
Sex Trafficking of a Minor by Force, Fraud, or Coercion
18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo,”
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
Life Imprisonment
5
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo,”
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro,”
PEDRO ROJAS-ROMERO
Life Imprisonment
6
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
Life Imprisonment
7
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
Life Imprisonment
8
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
JUAN ROMERO-GRANADOS,
a/k/a “Chegoya,”
a/k/a “El Guero”
Life Imprisonment
9
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
ALAN ROMERO-GRANADOS,
a/k/a “El Flaco”
Life Imprisonment
10
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
EMILIO ROJAS-ROMERO
Life Imprisonment
11
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
PEDRO ROJAS-ROMERO,
EMILIO ROJAS-ROMERO
Life Imprisonment
12
Transportation of a Minor for Purposes of Prostitution
18 U.S.C. §§ 2423(a) and 2
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo”
Life Imprisonment
13
Transportation of a Minor for Purposes of Prostitution
18 U.S.C. §§ 2423(a) and 2
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
Life Imprisonment
14
Transportation of a Minor for Purposes of Prostitution
18 U.S.C. §§ 2423(a) and 2
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
Life Imprisonment
15
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo”
Ten years’ imprisonment
16
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
Ten years’ imprisonment
17
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
Ten years’ imprisonment
18
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
JUAN ROMERO-GRANADOS,
a/k/a “Chegoya,”
a/k/a “El Guero”
Ten years’ imprisonment
19
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
ALAN ROMERO-GRANADOS,
a/k/a “El Flaco”
Ten years’ imprisonment
20
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
PEDRO ROJAS-ROMERO
Ten years’ imprisonment
21
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
EMILIO ROJAS-ROMERO
Ten years’ imprisonment
DEFENDANT
AGE
RESIDENCE
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo”
41
Mexico
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
32
New York, United States
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
34
New York, United States
JUAN ROMERO-GRANADOS,
a/k/a “Chegoya,”
a/k/a “El Guero”
30
Mexico
ALAN ROMERO-GRANADOS,
a/k/a “El Flaco”
24
Mexico
PEDRO ROJAS-ROMERO
37
Mexico
EMILIO ROJAS-ROMERO
34
Mexico
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Aggravated Felon Pleads Guilty to Reentering the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Luis Aguilar Torres, 35, of the United Kingdom and Ecuador, pleaded guilty to reentering the United States after a conviction for an aggravated felony before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on September 19, 2016, the defendant attempted to cross into the United States from Canada at the Rainbow Bridge. Standard database checks revealed that Torres was an aggravated felon. In June 2000, the defendant was arrested in Queens County, NY for murder, murder-2nd degree, Robbery 1st, and Criminal Possession of a Weapon. In January 2002, Torres pleaded guilty to the Robbery 1st charge and was sentenced to five years in prison. After serving his sentence, the defendant was deported from the United States and banned for life.
The plea is the result of an investigation by United States Customs and Border Protection, under the direction of Director of Field Operations Rose Hilmey.
Sentencing is scheduled for February 7, 2017, at 9:30 a.m. before Judge Vilardo.
31 October 2016
Wheeling woman sentenced for heroin, fentanyl distributionRead the Press Release
WHEELING, WEST VIRGINIA – Angel Rae Klein, 28, of Wheeling, West Virginia, was sentenced to ten months in prison for distributing heroin that contained fentanyl, United States Attorney William J. Ihlenfeld, II, announced.Klein possessed and sold heroin in throughout late 2014 and early 2015 in Ohio County, West Virginia. She pled guilty in June 2016 to one count of “Conspiracy to Distribute Heroin and Fentanyl.”
U.S. Attorney William J. Ihlenfeld, II, and Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
West Warwick Resident Admits to Robbing Coventry BankRead the Press Release
PROVIDENCE, R.I. – John Ryder, 28, of West Warwick, pleaded guilty in federal court in Providence today to bank robbery by force, violence and intimidation. Ryder admitted to the court that he robbed a BankRI branch office in Coventry while wielding a machete on May 2, 2016. Ryder robbed the bank of nearly $6,000 in cash.
Appearing before U.S. District Court Chief Judge William E. Smith, Ryder pleaded guilty as charged in an indictment returned by a federal grand jury on June 7, 2016. No plea agreement was filed in this matter.
Ryder’s guilty plea is announced by United States Attorney Peter F. Neronha, Coventry Police Chief John S. MacDonald, and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
At the time of his guilty plea, Ryder admitted to the court that beginning on April 29, 2016, and on the days leading up to the robbery, he spent a considerable amount of time in and around a shopping plaza where the bank is located and in a wooded area directly behind the plaza. Ryder admitted to the court that on May 2, 2016, he entered the bank carrying a machete which he wielded while demanding cash from bank tellers. After robbing the bank of $5,937, he fled into the wooded area behind the shopping plaza.
According to information presented to the court, later that evening Ryder is seen on video surveillance running from the area and getting into a vehicle. On May 6, 2016, law enforcement interviewed Ryder. Four days later obtained a court authorized search warrant to search Ryder’s cell phone. On Ryder’s cell phone they discovered pictures of an individual wearing the same clothing and mask as worn by the bank robber. The photograph was taken in the wooded area behind the shopping plaza where the bank is located.
Ryder was arrested by Coventry Police Detectives and FBI agents, with the assistance of the West Warwick Police Department, on May 13, 2016.
Ryder, who has been detained in federal custody since his arrest, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 20, 2017.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Virginia Woman Indicted for Wire Fraud, Aggravated Identity Theft and Filing False Tax ReturnsRead the Press Release
A federal grand jury sitting in Alexandria, Virginia returned an indictment on Oct. 26 that was unsealed today, charging a Haymarket, Virginia woman with wire fraud, aggravated identity theft, and filing false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.
According to charging documents, Karen Holtz worked for JMS Ventures, Inc (JMS), d/b/a the Kenyan Collection, a small business that imported and distributed handmade Kenyan goods, including dog collars. Between 2008 and 2013, Holtz fraudulently diverted funds from JMS, by writing herself unauthorized checks from the JMS bank account and using PayPal to transfer customer payments directly to her personal bank account. The indictment further alleges that Holtz defrauded JMS’s customers by using their personal identifying information, including names and credit card numbers, to make fraudulent charges to their credit cards. Holtz is alleged to have obtained at least $350,000 from the fraud scheme. The indictment further alleges that Holtz filed false federal individual income tax returns for tax years 2010 through 2013, which failed to report all the income that she received in those years. In an attempt to conceal the fraud, Holtz also allegedly altered and destroyed records, including evidence of the fraud.
Holtz was arrested this morning and had her initial appearance this afternoon at the U.S. District Court in the Eastern District of Virginia in Alexandria in front of Magistrate Judge John F. Anderson.
If convicted, Holtz faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, three years in prison for each count of filing false returns and a mandatory sentence of two years in prison for each count of aggravated identity theft. In addition, Holtz faces a term of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked the Loudoun County Sheriff’s Office, U.S. Secret Service, and special agents of the Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Katherine L. Wong of the Eastern District of Virginia and Trial Attorney Kimberly G. Ang of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Prevails in Civil Action against Convicted DoctorRead the Press Release
TYLER, Texas - The United States has obtained a civil judgment for $1,223,414.50 against Tariq Mahmood, who owned and operated multiple rural hospitals across Texas, announced Acting U.S. Attorney Brit Featherston.
In July 2014, a jury found Tariq Mahmood, of Cedar Hill, Texas, guilty of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four-day trial before U.S. District Judge Michael Schneider. A federal grand jury indicted Mahmood on April 11, 2013.
Following his conviction, the United States brought a False Claims Act action against Mahmood in the Eastern District of Texas captioned United States of America v. Tariq Mahmood, Case Number 6:15-cv-948. The Government alleged in its Motion for Summary Judgment that Mahmood was estopped from denying liability under the False Claims Act as a result of his criminal health care fraud and conspiracy convictions.
In the Court’s Final Judgment dated Oct. 28, 2016, U.S. Magistrate Judge K. Nicole Mitchell ordered Mahmood to pay the United States $1,223,414.50. The amount owed to the United States includes $288,414.50 in damages plus an additional $935,000.00 in civil penalties arising from the submission of 85 false claims. The Court awarded the United States the highest applicable civil penalty for each false claim Mahmood caused to be submitted to Medicare and Medicaid.
“The Department of Justice and the United States Attorney’s Office for the Eastern District of Texas aggressively prosecute health care fraud, both criminally and civilly,” said Acting U.S. Attorney Featherston. “When our national programs are defrauded, the public wants its money back. Our office is committed to recovering those public funds.”
The criminal case was investigated by the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service (USPIS). The civil action was prosecuted by Assistant U.S. Attorneys Joshua Russ and James Gillingham.
United States Attorney John P. Fishwick Jr. Appoints Dedicated Officers to Answer Western District of Virginia Election ComplaintsRead the Press Release
ROANOKE, VIRGINIA United States Attorney John P. Fishwick Jr. announced today that Assistant United States Attorneys Charlene R. Day, Ronald M. Huber and Jennie L. M. Waering will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSAs Day, Huber and Wearing have been appointed to serve as the District’s Election Officers (DEOs) for the Western District of Virginia, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” United States Attorney Fishwick said today. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to make their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Fishwick stated that AUSAs/DEOs Huber, Waering and Day will be on duty in this District while the polls are open. They can be reached by the public at the following telephone numbers: Waering: 540-857-2905. Day: 540-278-1475. Huber: 434-296-3912.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 540-344-5561.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Danny Williams Announces Preparations for Justice Department’s Election Day ProgramRead the Press Release
United States Attorney Danny C. Williams, Sr. announced today that Assistant United States Attorney (AUSA) Charles M. McLoughlin will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA McLoughlin has been appointed to serve as the District Election Officer (DEO) for the Northern District of Oklahoma, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Williams said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Williams stated that AUSA/DEO McLoughlin will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (918) 382-2700.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (918) 664-3300.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Williams said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
U.S. Attorney's Office Reminds New Jersey Voters About Election Day Hotline for Complaints of Voting Irregularities or AbusesRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman is reminding voters that the U.S. Attorney’s Office will receive and respond to reports of election irregularities, voter intimidation or any other activities that would interfere with a citizen’s right to vote on Nov. 8, 2016. The Election Day Hotline – (888) 636-6596 – will be active Nov. 7, 2016 through Nov. 9, 2016, and will be staffed live on Election day in English and in Spanish.
Each year the U.S. Attorney’s Office and its federal law enforcement partners, led by the FBI, work cooperatively with the New Jersey Attorney General’s Office and county boards of elections to respond to voter complaints and direct them to the appropriate authority.
The Justice Department seeks to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without discrimination, intimidation or fraud. Established in 2010, this yearly initiative is intended to foster public confidence in the integrity of the election process by providing local points of contact within the Justice Department for the public to report possible fraud and voting rights violations while polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.
It also contains special protections for voters so they can vote free from intimidation or harassment. For example, actions designed to interrupt or intimidate voters at polling places by questioning, challenging, photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or be assisted by a person of their choice.
The Department of Justice Civil Rights Division staff in Washington also will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-514-0716). In addition, individuals may also report complaints, problems, or concerns related to voting by fax to 202-307-3961, by email to [email protected], and via complaint forms that may be submitted through a link on the Justice Department’s website, at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney's Office Concludes Investigation into Fatal Shooting of Marquesha McMillanRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the actions of five Metropolitan Police Department (MPD) officers who were involved in the fatal shooting of Marquesha McMillan on Oct. 26, 2015, following an attempted armed robbery of a liquor store in Northwest Washington. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officers involved in the fatal shooting of Ms. McMillan.
The comprehensive investigation included interviews of multiple law enforcement and civilian witnesses as well as the review of physical and forensic evidence; recorded radio communications; video surveillance; the autopsy report, and other evidence.
The shooting in this case took place on Oct. 26, 2015, at approximately 9:15 a.m., in the rear parking lot of a liquor store in the 7800 block of Alaska Avenue NW. Following the attempted armed robbery of the store by Ms. McMillan, 21, and Ned McCallister, both individuals fled from the establishment out of different doors upon seeing an MPD officer arrive for a routine business check. Ms. McMillan ran towards the rear parking lot, where she turned and fired a .380 semi-automatic pistol at three officers who were responding to the “robbery in progress” call. The officers returned fire as Ms. McMillan ran through the parking lot and hid behind a nearby dumpster. As reported by civilian witnesses, Ms. McMillan then reloaded her weapon while ignoring the officers’ commands to “drop the weapon” and “get on the ground.” While the three officers and Ms. McMillan exchanged additional gunfire, two other MPD officers approached Ms. McMillan’s location from an adjacent parking lot and fired their weapons at Ms. McMillan, who fell to the ground, fatally wounded. A subsequent autopsy revealed that Ms. McMillan was shot eight times, one of which was fatal.
Mobile Crime Technicians recovered Ms. McMillan’s .380 semi-automatic firearm.
McCallister, 22, of Washington, D.C., pled guilty on July 22, 2016, in the U.S. District Court for the District of Columbia, to one count of attempted interference with interstate commerce by robbery, a federal offense, and one count of unlawful possession of a firearm, a District of Columbia offense. He was sentenced on Oct. 14, 2016, to four years in prison, to be followed by three years of supervised release.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officers used excessive force under the circumstances.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney Miles Designates Federal Prosecutor to Protect the Right to Vote and Prosecute Ballot FraudRead the Press Release
GRAND RAPIDS – Patrick Miles, U.S. Attorney for the Western District of Michigan, named a federal prosecutor with over 30 years’ experience as the District’s Election Officer. Miles says Assistant U.S. Attorney Donald Daniels will handle claims of voter discrimination, intimidation, and fraud on November 8, 2016. Mr. Daniels can be reached until the polls close on election day at: (616) 808-2014.
U.S. Attorney Miles explained: "My office and the U.S. Department of Justice will ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process."
U.S. Attorney Miles noted that his office and local FBI agents can receive, investigate and pursue complaints of voter discrimination, intimidation, and fraud. His office coordinates and works with the Department of Justice’s Civil Rights Division’s Voting Section to enforce the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act, the National Voter Registration Act, the Uniformed and Overseas Citizens Absentee Voting Act, the Help America Vote Act and the Civil Rights Acts. Among other things, collectively, these laws:
- prohibit election practices that have either a discriminatory purpose, based on race or membership in a minority language group, or a discriminatory result, with members of racial or language minority groups having less opportunity than other citizens to participate in the political process;
- prohibit voter intimidation;
- provide that individuals who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice;
- provide for accessible election machines for voters with disabilities;
- require provisional ballots for voters who assert they are eligible but whose names do not appear on poll books;
- provide for absentee ballots for service members, their family members and U.S. citizens living abroad;
- require states to ensure that citizens can register through drivers’ license offices, public assistance and disability services offices, other state agencies and through the mail; and
- include requirements regarding maintaining voter registration lists.
The U.S. Attorney’s office also works in conjunction with the Civil Rights Division’s Criminal Section to enforce federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
U.S. Attorney Miles said that on Election Day, November 8, 2016, the Civil Rights Division will implement a comprehensive program to help protect the right to vote, including:
- The Civil Rights Division will conduct monitoring in the field at polling places around the country (locations for monitoring will be announced closer to Election Day).
- Civil Rights Division attorneys in both the Voting and Criminal Sections in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the statutes the Civil Rights Division enforces. Attorneys in the division will take appropriate action and will consult and coordinate with local U.S. Attorney’s Offices and with other entities within the Justice Department concerning these complaints before, during and after Election Day.
- Civil Rights Division staff will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082). In addition, individuals may also report complaints, problems or concerns related to voting by fax 202-307-3961, by mail to [email protected] and by complaint forms that may be submitted through a link on the department’s website: https://www.justice.gov/crt/voting-section.
- Complaints related to violence, threats of violence or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the U.S. Attorney’s Office or the department after local authorities are contacted.
Criminal Division and the Department’s 94 U.S. Attorney’s Offices:
The Department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and vindicate the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the department’s 94 U.S. Attorney’s Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes and malfeasance by election officials. The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin or religion (as noted above, voter intimidation that has a basis in race, color, national origin or religion is addressed by the Civil Rights Division).
The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as district election officers (DEOs) in the respective districts. As the DEO in the Western District of Michigan, Assistant U.S. Attorney Daniels is responsible for overseeing potential election-crime matters in their districts and coordinating with the department’s election-crime experts in Washington, D.C.
On and after Nov. 8, 2016, U.S. Attorney Miles’ Office will work with specially trained FBI personnel to ensure that complaints from the public involving possible voter fraud are handled appropriately. Specifically:
- In consultation with federal prosecutors in the Public Integrity Section in Washington, D.C., the DEOs in U.S. Attorney’s Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public.
- Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office. As previously noted, the U.S. Attorney’s Office’s Election Officer can be reached at (616) 808-2014. A list of FBI offices and accompanying telephone numbers can be found at https://www.fbi.gov/contact-us.
- Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorney’s Offices and the FBI regarding the handling of election-crime allegations.
- Again, complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local police authorities by calling 911.
"Free and fair elections are a necessity in the United States. Protecting the right to vote and combating election fraud are thus essential to maintaining the confidence of all Americans in our democratic system of government," stated U.S. Attorney Miles. He encourages anyone who has information suggesting voting discrimination or ballot fraud to contact the appropriate authorities.
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Two men sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two men were sentenced today in federal court for distributing heroin in Monongalia County, United States Attorney William J. Ihlenfeld, II, announced.
Ryan Hayworth, 22, of Mullens, West Virginia, was sentenced to twelve months and one day in prison for one count of “Aiding and Abetting Distribution of Heroin within 1,000 feet of a Protected Location.” Hayworth sold heroin in March 2015 near West Virginia University. The heroin was transported into the region from Michigan.
Romelle DeShaun Stevens, 27, of Detroit, Michigan, was sentenced to six months in prison for one count of “Distribution of Heroin.” Stevens sold heroin in Monongalia County, West Virginia in December 2015.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Two Individuals Ordered to Pay over $4 Million in Restitution for Their Participation in a Conspiracy to Defraud Federal Agencies and Federal ContractorsRead the Press Release
Brian J. Garrahan, 42, and Kelly A. Spillman, 35, both of Delray Beach, Florida, were ordered to pay over $4 million for their participation in a conspiracy to defraud federal agencies and federal contractors by issuing fraudulent bonds to insure government contracts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Paul Brezinski, Acting Special Agent in Charge, United States Environmental Protection Agency (EPA), Office of the Inspector General (OIG), Atlanta Field Office, made the announcement.
Garrahan and Spillman previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 371. On September 16, 2016, U.S. District Judge Kenneth A. Marra sentenced Garrahan and Spillman, and scheduled a later hearing to determine restitution. Judge Marra sentenced Garrahan to 30 months’ imprisonment, to be followed by two years of supervised release. Garrahan was also ordered to forfeit over $1 million. Judge Marra sentenced Spillman to time served, to be followed by two years of supervised release to include twelve months of home detention. Spillman was ordered to forfeit approximately $130,000.
Today, Judge Marra issued Amended Judgments as to Garrahan and Spillman. Judge Marra ordered Garrahan and Spillman to pay $4,414,847.19 in restitution to fourteen federal agencies and two federal contracting companies. The federal agencies included, among others:
a. The United States Army;
b. The United States Department of Energy;
c. The United States Environmental Protection Agency;
d. The United States Department of Housing and Urban Development;
e. The United States Department of State;
f. The United States Department of Veterans Affairs; and
g. The United States General Services Administration.
The restitution as well as the forfeiture previously ordered is joint and several as to Garrahan, Spillman, and co-conspirator Alex Xavier (Case No. 15-80149-Cr-Marra). Xavier previously pled guilty and is scheduled to be sentenced on November 4, 2016.
According to court documents, from approximately June 2008 through June 2013, Garrahan and Spillman conspired with each other and others to obtain payments from government contractors for issuing fraudulent bonds, that is, insurance, for large government contracts. The fraudulent bonds were individual surety bonds, usually signed by Garrahan and two other co-conspirators, a relative of Garrahan, and Alex Xavier, who had prior experience with government bonds.
Individual surety bonds require collateral. The collateral used was land or cash or cash equivalent assets held in bank accounts. However, Garrahan and Spillman knew that the claims of ownership of land were false and the claims of possessing funds were false. Also, the supporting documents related to these assets were fraudulent.
Garrahan, Spillman and their co-conspirators issued a large number of bonds dealing with over 100 contractors and over ten federal agencies, and other entities. Often contracts had “modifications,” that is, contract expansions, that led to more bonds being issued.
Mr. Ferrer commended the investigative efforts of EPA-OIG and the U.S. Department of Veterans Affairs-OIG, together with the Criminal Investigation Command of the U.S. Army; U.S. Department of Defense-OIG, Defense Criminal Investigative Services; U.S. Department of Energy-OIG; U.S. General Services Administration-OIG; U.S. Department of Housing and Urban Development-OIG; and U.S. Department of State-OIG. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Third Person Sentenced in Scheme to Smuggle Guns to Lebanon is Ordered to Serve 342 Months in Federal PrisonRead the Press Release
Ali Afif Al Herz, age 51, from Cedar Rapids, Iowa, was sentenced today and following his plea of guilty to various charges related to a scheme to illegally export hundreds of firearms to Lebanon.
Al Herz previously pleaded guilty to one count of conspiring to deal in firearms without a license and to illegally ship firearms in interstate and foreign commerce; one count of conspiracy to commit money laundering; and one count of violating the Arms Export Control Act. In addition, Al Herz previously pleaded guilty to one count of possessing firearms after having previously been convicted of a crime of domestic violence.
Al Herz was sentenced by Linda R. Reade, Chief Judge, United States District Court for the Northern District of Iowa, following sentencing proceeding held in Cedar Rapids. The court heard evidence relating to the sentencing on October 14, 2016, and reconvened today to hear additional evidence and impose sentence.
Al Herz, was sentenced to serve 342 months’ imprisonment, to be followed by a 3 year term of supervised release. Al Herz was was ordered to pay a fine of $150,000.
Adam Al Herz, the son of Ali Afif Al Herz, was sentenced on October 13, 2016, to serve 240 months’ imprisonment, to be followed by a three-year term of supervised release.
Ali Afif Al Herz’s sister in law, Sarah Majid Zeaiter, was sentenced on October 14, 2016, to serve 87 months’ imprisonment. Zeaiter was also ordered to pay $33,869 in cash related to the scheme. The money was seized from the apartment Zeaiter shared with her husband, Bassem Herz, above the Pizza Daddy restaurant in Cedar Rapids, Iowa.
Each of the three sentenced defendants has also been jointly and severally ordered to pay a money judgment in excess of $48,000, and to forfeit any interest in seized firearms, ammunition, and Bobcat skid loaders.
Evidence related to the sentencing of Bassem Afif Herz was presented on October 13 & 14, 2016, in Cedar Rapids. The sentencing hearing for Bassem Afif Herz will resume on November 7, 2016, at which time Bassem Herz will be sentenced.
The four were charged following an investigation triggered in early 2015 by a report from a firearms dealer concerning suspicious firearms transactions conducted by the group.
The initial investigation led to the March 2015 seizure of 53 guns and thousands of rounds of ammunition concealed inside Bobcat skid loaders packed inside a shipping container at the Norfolk, Virginia seaport. The container was destined for Lebanon. Subsequent investigation led to the May 2015 seizure of a second shipping container in Cedar Rapids, which was also destined for Lebanon. Ninety-nine guns and thousands more rounds of ammunition were found concealed inside Bobcat skid loaders packed inside the second container. Further investigation disclosed the group had previously sent two similar shipments to Lebanon in March and August 2014. Each of the containers had been loaded and shipped from Midamar Corporation in Cedar Rapids.
Evidence presented at the sentencing hearings showed the containers were destined for an area in southern Lebanon controlled by Hezbollah, a group designated by the United States as a terrorist organization. Among the guns shipped were more than 30 military style assault rifles. Other evidence presented in the case showed the guns could be sold in Hezbollah controlled southern Lebanon, where Ali Afif Al Herz maintains a residence, for as much as ten times their value in the United States. Photos of the residence and of some of the weapons and ammunition seized during the investigation are attached to this press release.
During sentencing, Chief Judge Reade found Al Herz was a leader and organizer of the criminal activity involving five or more participants and that “was otherwise extensive.” Judge Reade also noted there were several aggravating factors including that the offense involved numerous military style assault rifles, the defendant had sought to purchase fully automatic weapons, the number of guns involved, and the fact the guns were knowingly being shipped to an area of the world controlled by a terrorist organization.
Kevin W. Techau, United States Attorney for the Northern District of Iowa stated, “These defendants were bold and brazen gun traffickers. They knew they were violating U.S. laws enacted to prevent smuggling to foreign countries. Stopping the illegal flow of weapons, weapons parts, and ammunition is a key priority for law enforcement.”
“We are especially thankful to the citizens of Iowa who assisted law enforcement by providing tips and leads that resulted in an investigation of an international weapons smuggler by Homeland Security Investigations,” said Alex Khu, Special Agent in Charge for HSI St. Paul, which oversees Iowa. “This investigation exemplifies the importance of maintaining strong ties to the communities that law enforcement serves, and that law abiding citizens can truly make a difference by reporting suspicious activities. Had law enforcement not intervened, Mr. Al Herz would have exported a large number of weapons that could have been used in countless crimes. HSI is committed to investigating and seeking charges against those intent on violating U.S. export laws.”
“Among ATF’s top priorities is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice. This is an excellent example of such an investigation that was worked cooperatively by multiple partner agencies with outstanding results,” said Jeff Fulton, Special Agent in Charge of ATF’s Kansas City Field Division.
“The joint effort to bring this case to a successful conclusion undoubtedly saved lives due to the number and types of weapons recovered during the course of the investigation. The FBI will continue to work with our law enforcement partners to combat violent criminal activity and protect our communities,” stated Special Agent-in-Charge Randall Thysse, Omaha Division.
The cases were prosecuted by Assistant United States Attorney Richard L. Murphy and were investigated by Homeland Security Investigations, Bureau of Alcohol Tobacco and Firearms, Federal Bureau of Investigations, and U.S. Customs and Border Protection, with assistance from the Diplomatic Security Service, United States Marshals Service, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Iowa Bureau of Investigation and Identity Protection, Iowa Department of Inspections and Appeals, Fayette County Sheriff’s Office, Iowa County Sheriff’s Office, Linn County Sheriff’s Office, Vinton Police Department, University of Iowa Police Department, Iowa City Police Department, Cedar Rapids Police Department, Marion Police Department, and Hiawatha Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00054-LRR.
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Texas Woman Charged in Murder-for-Hire Plot to Kill Trial WitnessesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Priscilla Ellis (51, Killeen, TX) has been charged by criminal complaint with retaliating against a witness, victim, or an informant. If convicted, she faces a maximum penalty of 40 years in federal prison.
According to the complaint, Ellis was convicted on October 21, 2016, of conspiracy to commit mail and wire fraud and conspiracy to commit international money laundering following a three-week trial. The next day, she began soliciting a fellow inmate to help her find a hit man to murder two people in retaliation for testimony given at trial. One was a key witness for the government, and the other was the mother of another witness who had pleaded guilty and was cooperating against Ellis. During recorded conversations with the inmate and undercover agents posing as co-conspirators, Ellis told the agent posing as the hit man that the first witness’s child should be killed along with the witness, if necessary. Ellis also described the manner in which she wanted the cooperating witness’s mother to be killed. Ellis agreed to have her daughter in Texas take money obtained from another fraudulent scheme and give it to the hit man as partial payment for the two murders, which the daughter in fact did at Ellis’s direction.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Eric Gerard and Patrick Scruggs.
Sullivan County Man Sentenced in White Plains Federal Court to over 21 Years in Prison for Distribution of Heroin and Fentanyl Causing the Death of an IndividualRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TERRENCE JOHNSON, 23, of Sullivan County, was sentenced today by U.S. District Judge Cathy Seibel to 262 months in prison for distributing heroin and fentanyl; distributing cocaine; selling heroin, fentanyl, and cocaine within 1,000 feet of elementary schools; conspiring to distribute at least 100 grams of heroin, conspiring to distribute at least 280 grams of crack cocaine, and for distributing a mixture of heroin and fentanyl that resulted in the overdose death of Malcolm Perry, 35, a resident of Liberty, New York. JOHNSON pled guilty on June 3, 2016, before U.S. Magistrate Judge Paul E. Davison.
U.S. Attorney Bharara stated: “Even after learning that his fentanyl-laced heroin had sent customers to the emergency room, Terrence Johnson continued to sell his poisonous blend, ultimately causing the tragic death of Malcolm Perry. For his callous crime, Johnson has received an appropriately severe sentence. Drug dealers who peddle deadly poison across our District should understand, if they sell opioids that kill, serious consequences await them.”
According to the allegations in the Indictment and other information in the public record:
Between May 28, 2015, and June 6, 2015, JOHNSON was selling a mixture of heroin and fentanyl in Sullivan County. Fentanyl is a synthetic opioid that is significantly stronger than both ordinary heroin and morphine. During that period, several customers who purchased that mixture from JOHNSON overdosed and required emergency medical attention. On or about June 1, 2015, Malcolm Perry overdosed and died of acute fentanyl intoxication as a result of using the mixture sold by JOHNSON. Even after learning that Perry had died, JOHNSON continued to sell the mixture.
Between 2012 and 2013, JOHNSON also conspired to distribute over 280 grams of crack cocaine in Sullivan County.
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In addition to the term of imprisonment, JOHNSON was also sentenced to 6 years of supervised release and ordered to pay a $1,000 special assessment.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the Village of Liberty Police Department, the New York State Police, the Sullivan County Sheriff’s Department, and the Village of Monticello Police Department. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its assistance in the case.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Anden Chow, Michael Gerber, and George Turner are in charge of the prosecution.
Scranton Business Owners Charged in Unemployment Benefits SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Scranton charging a Scranton man and a Dunmore man with conspiracy to commit wire fraud in connection with the fraudulent receipt of unemployment benefits.
According to United States Attorney Bruce D. Brandler, Samuel Borgia, age 52, and Steven Borgia, age 46, owned and operated Home Resource Corporation, a home improvement company in Scranton. From 2009 to 2012, the defendants allegedly filed fraudulent claims for unemployment compensation and received unemployment benefits to which they were not entitled.
The defendants also allegedly instructed a number of their employees to falsely report to the Pennsylvania Department of Labor that the employees were not employed in order for the employees to also fraudulently receive unemployment benefits. The Information charges that the defendants and their co-conspirators received more than $150,000 as a result of the scheme.
The government also filed plea agreements which are subject to the approval of the court, where the defendants indicate that they intend to plead guilty to the charge when they appear in federal court for their arraignment.
The charges stem from an investigation by the United States Department of Labor, Office of the Inspector General, and the Commonwealth of Pennsylvania’s Department of Labor. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
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.
The maximum penalty under federal law for the offense charged in this case is five years’ imprisonment, a term of supervised release following imprisonment, and a maximum fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sapulpa Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LATISHA DAWN ARNOLD, age 37, of Sapulpa, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than Life imprisonment, up to a $10,000,000.00 fine or both.
The Second Superseding Indictment filed in July, 2016, alleged that beginning in or about the end of 2013 and continuing until on or about January 27, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and to Distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility to serve this nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Richmond Resident Convicted of Conspiracy to Commit Theft of Public Property and Identity TheftRead the Press Release
OAKLAND – A federal jury convicted Hugh Robinson today, of conspiracy to commit theft of public money, theft of public money, and aggravated identity theft announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The verdict follows a six-day trial before the Honorable Jeffrey S. White, United States District Judge.
Evidence at trial showed that Robinson, 46, of Richmond, was involved with more than ten co-conspirators in a scheme to defraud the United States of public money. From at least August 21, 2013, through April 27, 2015, Robinson and others who were based in such places as Northern California, Los Angles, and Texas, cashed stolen and fraudulently obtained U.S. Treasury checks. The checks included stolen Social Security benefits checks and fraudulently obtained federal income tax refund checks. As part of his scheme, Robinson and his co-conspirators acquired the personal identifying information (e.g., names, dates of birth, and social security numbers) of other people, including deceased people. Robinson then used the names, dates of birth, and social security numbers of these individuals to file false federal tax returns. The tax returns reported false wages to the IRS and fraudulently requested tax refunds. The evidence at trial also established that Robinson took steps to ensure he would receive the fraudulent refunds corresponding to the false returns he filed. For example, on some occasions, Robinson directed the IRS to deposit the tax refunds into bank accounts he owned or that belonged to his co-conspirators. On other occasions, Robinson directed the IRS to mail the tax refund checks to his address or to the address of a co-conspirator on the false tax returns.
Robinson also acquired stolen U.S. Treasury checks. To cash these checks, Robinson paid to have numerous fake identification cards created that matched the names listed on the U.S. Treasury checks, but that displayed a photo of Robinson or one of his co-conspirators. Robinson and others used the fake identifications to cash the checks at Walmart stores—in some instances with the help of Walmart employees that Robinson paid to assist him.
On November 5, 2015, a federal grand jury issued a Second Superseding Indictment charging Robinson with conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; seven counts of theft of public money, in violation of 18 U.S.C. § 641; and seven counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Today’s verdict establishes Robinson is guilty of all the counts with which he was charged in the indictment.
Hugh Robinson is scheduled to be sentenced on February 7, 2017, before Judge White. The maximum sentence for a violation of 18 U.S.C. § 371 is 5 years in prison and a fine of $250,000. The maximum penalty for each violation of 18 U.S.C § 641 is 10 years in prison and a fine of $250,000. The mandatory minimum penalty for each count of identity fraud, in violation of 18 U.S.C § 1028A, is two years in prison, consecutive to the underlying felony and a fine of $250,000. However, any sentence would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera and Trial Attorney Gregory Bernstein of the Tax Division are prosecuting this case, with the assistance of Jonathan Deville. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Property Manager Pleads Guilty to Stealing from Condominium AssociationsRead the Press Release
BIRMINGHAM –A Birmingham woman pleaded guilty today in federal court to stealing more than $350,000 from condominium homeowner associations, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
JILL ROUSE, formerly Jill Rouse Boothby, 43, entered her plea before U.S. District Judge Madeline H. Haikala to one count of wire fraud. Rouse’s sentencing is scheduled Feb. 17. In a plea agreement with the government, Rouse has agreed to pay $375,750 in restitution.
According to Rouse’s guilty plea, she was employed as a property manager at Boothby Realty from 2008 through January 2015. Boothby Realty is a real estate and property management company located in Birmingham. Rouse also owned and operated an interior design business called Jill Boothby Designs. The design company is a separate and independent company from Boothby Realty and is run solely by Rouse.
As a property manager at Boothby Realty, Rouse was personally responsible for the management of 11 condominium associations within the Birmingham metropolitan area. Rouse attended homeowner association meetings, assisted with the use and accounting of the homeowner association funds, coordinated maintenance services at the properties, helped bid contracts for maintenance and improvements to the properties, and assisted the associations with budgeting. As expenses were incurred by the various associations, Rouse would advise Boothby Realty’s accounting personnel of the invoices and expenses to be paid from the homeowner associations’ funds.
Rouse acknowledged in her plea agreement that, beginning in late 2012 and continuing to about January 2015, she created false and fraudulent invoices for goods and services in the name of her company, Jill Boothby Designs, and submitted the various invoices to the 11 condominium associations that she managed. The Jill Boothby Designs invoices contained descriptions of items billed to the various associations, however, neither Rouse nor her design company actually purchased the items. Rouse submitted the fraudulent invoices to her employer, Boothby Realty, with a copy to the homeowner associations for payment out of the homeowner associations’ funds. The realty company paid the fraudulent invoices to Rouse out of those funds. To further conceal the fraud, Rouse altered the monthly financial statements that were submitted to Boothby Realty to be mailed or emailed to the associations.
The maximum punishment for wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Omaha Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that Aaron Craddock, age 30 of Omaha, Nebraska, was sentenced today by the Honorable Laurie Smith Camp, to three years, one month imprisonment following his conviction for being a felon in possession of a firearm. Craddock had previously pleaded guilty to the charge. Upon completion of his imprisonment, he will be on three years of supervised release.
On December 2, 2015, at approximately 9:21 p.m., officers of the Omaha Police Department stopped a car for turning into a driveway on J.A. Creighton Boulevard without using a turn signal. Craddock was the lone occupant. A drug dog alerted on the car. Officers searched the car and found 10 pounds of marijuana. The officers got a search warrant for Craddock’s residence and found a Taurus .40 caliber handgun in his bedroom. He has a prior felony conviction and as a result is prohibited from possessing firearms.
The case was investigated by the Omaha Police Department.