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Monday 12 September 2016
Eight People Charged in Takedown of Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. - Federal and local law enforcement authorities arrested five people this morning and charged three others for their alleged roles in a crack cocaine and heroin trafficking organization operating in Camden, U.S. Attorney Paul J. Fishman announced.
Jason Boyd, 36, Preston Thomas, 30, Julian Dickerson, 24, Derek Stallworth, 20, and Tony Wilson, 24, all of Camden, were arrested today and charged by complaint with drug trafficking conspiracy. They appeared this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court and were detained.
Joseph Boyd, 31, of Camden, Jeffrey Whitaker, 32, of Collingswood, New Jersey, and Nafeez Griffin, 30, of Camden – all of whom are presently incarcerated on other charges – were also charged with drug trafficking conspiracy and will have their initial appearances at a later date.
According to the complaints:
The defendants are members of a drug trafficking organization that, from November, 2015 through September 2016, dealt crack cocaine and heroin in and around Camden, with criminal activities concentrated on the 1100 block of Lansdowne Avenue. Joseph Boyd, Jason Boyd, and Thomas are the alleged leaders and managers of the operation. Whitaker, Stallworth, Wilson, Dickerson, and Griffin staffed the block during assigned shifts and distributed drugs to customers who approached on foot and in vehicles.
The arrests and charges are the result of an investigation that began in late 2015 and involved controlled purchases of crack cocaine and heroin and multiple authorized wiretaps of phones used by members of the conspiracy.
The drug trafficking conspiracy count carries a maximum potential penalty of 20 years in prison and a $5 million fine.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to the charges.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Durant Man Sentenced to 6 Months Home Detention for Theft of Gaming EstablishmentRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that CHARLES BLAIR SMALLWOOD, age 24, of Durant, Oklahoma, was sentenced to 6 months of home detention and 4 years of probation for THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charge arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The defendant was indicted in March, 2016 and pled guilty in April, 2016.
The Indictment alleged that from in or about December 2014, to on or about August 17, 2015, in the Eastern District of Oklahoma, the defendant, while an employee of the Choctaw Nation Casino and Resort, in Indian Country, did embezzle, abstract, purloin, willfully misapply, and take and carry away with intent to steal any moneys, funds, assets, or other property in excess of $1,000.00 belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation of Oklahoma pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Kristin Harrington represented the United States.
Duell Sentenced to 11 Years, 3 Months on Perjury ConvictionsRead the Press Release
ALBANY, NEW YORK – Jennica A. Duell, age 28, of Schenectady, New York, was sentenced today to 135 months in prison for providing false testimony before a grand jury investigating the May 2013 fire that killed three of her children and their father, as well as seriously injured a fourth child.
The announcement was made by U.S. Attorney Richard S. Hartunian and Charlie J. Patterson, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
United States Attorney Richard S. Hartunian said: “Jennica Duell’s perjuries were the most reprehensible imaginable – detailed falsehoods about an arson homicide that killed the defendant’s own young children and their father and crippled the federal criminal investigation to hold accountable those responsible. Five times over five weeks, Duell said she was present when the fire was set by her boyfriend, even recounting how she said ‘yes’ when he asked if she wanted to be free before setting the blaze. Eight months later, she testified that her prior statements and testimony were false and said she and her boyfriend were never there. My office and our law enforcement partners remain fully committed to uncovering the truth and securing justice for the victims of this heinous act.”
ATF Acting Special Agent in Charge Charlie J. Patterson said: “On the night of May 2, 2013, David Terry, 32, Layah Terry, 3, Michael Terry, 2, and Donavan Duell, 11 months old, lost their lives. Sa’fyre Terry, then 5, survived through the actions of her father, but suffered severe burns. The children’s mother, the defendant, Jennica Duell, when confronted with the horror of that crime, betrayed them and this community by obstructing and impeding the criminal investigation rather than telling the truth. Sa’fyre will have to live the rest of her life with the injuries of that night; the defendant will only have to live with the repugnance and moral turpitude of her character. While the damage the defendant did to the investigation cannot be understated, her sentencing today, though justly deserved, is only a small victory in light of the greater task at hand. ATF’s goal is, and always will be, the identification, prosecution and conviction of those responsible for the crimes that occurred on that terrible night. The memory of the victims who perished, and the will of Sa’fyre to live, strengthen our resolve to ensure that justice is done.”
As part of her May 16, 2016 guilty plea, Duell admitted that she made irreconcilably contradictory statements under oath before a grand jury conducting an investigation into the May 2, 2013 arson at 438 Hulett Street in Schenectady, New York, which caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside. Duell admitted that on May 24, 2013, she testified regarding specific events that allegedly occurred on May 1-2, 2013, and then, on January 31, 2014, gave irreconcilably contradictory testimony about those events.
On May 24, 2013, Duell’s testimony about the events of May 2, 2013 included the following: Sometime after 3 a.m., she, her boyfriend, and two other men traveled from Saratoga Springs to Schenectady so that her boyfriend could confront David Terry, the father of her children. They stopped at a gas station and filled up a gas can. Then they went to the house at 438 Hulett Street, where her boyfriend grabbed the gas can and poured some gas into a water bottle, walked over to the house, and poured gas in the hallway and up the stairs. Duell asked what he was doing, said “don’t do this,” and “my babies are in there,” and her boyfriend said “they are not going to get hurt.” After he lit the fire, Duell “saw the flames” and “wanted to get in there . . . but he wouldn’t let me.” Before her boyfriend poured the gas and set the fire, he said to Duell, “do you want to be free?” Duell said “yes.”
On January 31, 2014, Duell testified that her prior testimony regarding what happened on May 1-2, 2013 was untrue.
Senior U.S. District Judge Gary L. Sharpe also sentenced Duell to a 3-year term of post-imprisonment supervised release and imposed a $300 special assessment.
On March 17, 2016, Judge Sharpe sentenced Edward A. Leon, 44, of St. Johnsville, New York, to 10 years in prison, also for providing perjured testimony to the grand jury investigating the May 2013 fire. Leon was convicted of perjury following a 3-day trial in November 2015.
This case was investigated by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case was prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.
Further questions or inquiries may be directed to First Assistant U.S. Attorney Jaquith at 518-431-0247.
The ATF notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information is encouraged to call ATF at 1-888-ATF-FIRE (1-888-283-3473), or email [email protected], or contact ATF through its web site at www.atf.gov/contact/atf-tips. Tips may also be submitted to ATF through the “report it” app, available on both Google Play and the Apple App Store, or by visiting www.reportit.com.
District Man Sentenced to 18 Years in Prison for Killing Man in Broad Daylight in Northwest WashingtonRead the Press Release
WASHINGTON – Carlton Hammond, 28, of Washington, D.C., was sentenced today to 18 years in prison on charges stemming from the slaying of a man in a broad daylight attack that took place in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Hammond was found guilty in May 2016 of second-degree murder while armed and carrying a dangerous weapon. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Hammond will be placed on five years of supervised release.
According to the government’s evidence, in the late afternoon of Oct. 3, 2014, Hammond was among a group of over 10 men gathered in the 3400 block of 14th Street NW; the group included the victim, Kenneth Young, 35. Hammond and Mr. Young got into a fight at about 5:30 p.m. that ended with the stabbing of Mr. Young. Hammond fled on foot, and Mr. Young collapsed on the sidewalk. He died from his injuries, which included a three-inch deep stab wound to the right center of the chest that pierced his heart. He also sustained several other deep, gaping stab wounds to the left forearm and right shoulder. Later that night, a witness overheard Hammond boasting about the attack. Hammond was arrested Oct. 24, 2014.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Information Technology Specialist Leif Hickling; Investigative Analyst Zachary McMenamin; Paralegal Specialist Kendra Johnson, and Victim/Witness Advocate Marcia Rinker. Finally, he commended the work of Assistant U.S. Attorney Michelle Bradford, who secured the indictment in the case, and Assistant U.S. Attorneys Kimberley C. Nielsen and Allessandra Stewart, who prosecuted the case.
Detroit man pleads guilty to federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Djuan Levell Washington, 28, entered his guilty plea to possession with intent to distribute heroin.
On July 24, 2015, Washington was involved in a traffic stop on the 300 block of 31st Street in Huntington. As the car began to stop, Washington was seen throwing three plastic bags out of the passenger window. A police dashboard camera also recorded Washington throwing the bags out of the car. The bags were recovered and were found to contain 126 individual baggies of heroin. Officers additionally located 10 individually wrapped baggies of crack within the three plastic bags. Washington admitted that he intended to sell the drugs. In a further search of the vehicle, investigating officers discovered a loaded Hi-Point 9 millimeter pistol in a backpack belonging to Washington.
Washington faces up to 20 years in federal prison when he is sentenced on December 19, 2016.
Members of the Huntington Police Department and the Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey is handling the prosecution. The plea hearing was held before Chief United District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Connecticut Man Pleads Guilty to Federal Charge for Illegally Scaling White House FenceRead the Press Release
WASHINGTON – Joseph A. Caputo, 23, of Stamford, Conn., pled guilty today to a federal charge stemming from an incident on Thanksgiving Day 2015 in which he illegally scaled the White House fence, announced U.S. Attorney Channing D. Phillips and Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Caputo pled guilty to a charge of entering or remaining in a restricted building or grounds, which carries a statutory maximum of one year in prison, potential financial penalties, and up to a year of supervised release. The Honorable Christopher R. Cooper scheduled sentencing for Dec. 6, 2016. At sentencing, the government has agreed to recommend that the Court impose a period of probation, during which Caputo would be subject to various conditions, including an order to stay away from the District of Columbia and any facilities, sites or people under Secret Service protection, and an agreement to submit to interviews by the Secret Service and undergo a psychiatric evaluation, if requested, by a Secret Service psychologist.
According to the government’s evidence, on Nov. 26, 2015, Thanksgiving Day, an officer with the U.S. Secret Service’s Uniformed Division witnessed Caputo scaling the White House fence at about 2:45 p.m. At the time, Caputo had one leg over the fence and was wearing an American flag around him like a cape. The officer ran towards Caputo, but Caputo made it over the fence and dropped onto the North Lawn of the White House. The officer called over the radio to alert other officers, and members of the Uniformed Division ordered Caputo to stop and get on the ground. Caputo complied with the orders and was immediately taken into custody.
While in custody, Caputo made spontaneous statements to law enforcement, including, “I love my country” and “I knew I would be locked up.”
In announcing the plea, U.S. Attorney Phillips and Special Agent in Charge Ebert commended the work of those who investigated the case from the U.S. Secret Service. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Ari B. Redbord and Special Assistant U.S. Attorney Jacqueline Barkett, who are prosecuting the matter.
Chilean Man Sentenced for Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – Victor Manuel Fuentes-Gomez, age 68, a Chilean citizen, was sentenced today to serve 30 months in prison for illegally re-entering the United States.
The announcement was made by U.S. Attorney Richard S. Hartunian and John C. Pfeifer, U.S. Border Patrol’s Chief Patrol Agent for the Swanton Sector.
In May, Fuentes-Gomez pled guilty to re-entering and being found in the United States after he was previously removed from the country. Fuentes-Gomez was found by the St. Regis Mohawk Tribal Police and Border Patrol agents in Hogansburg, New York, on January 25, 2016. Fuentes-Gomez had previously been deported and removed from the United States to Chile in 1975 and again in 2015.
Following Fuentes-Gomez’s completion of his term of imprisonment, the Department of Homeland Security will process him for removal from the United States.
This case was investigated by the U.S. Border Patrol, with the assistance of the St. Regis Mohawk Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Burlington Man with History of Violating Abuse Prevention Orders Sentenced to 25 Months Imprisonment for Federal Firearms ViolationRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Mark Caron, 53, of Burlington, was sentenced to twenty-five months imprisonment by United States District Judge Geoffrey Crawford. The term of imprisonment will be followed by a three-year period of supervised release by the U.S. Probation Office. Caron had previously pled guilty to possessing a firearm after having been convicted of a felony offense, in this case six prior felony offenses. The Indictment charged that three of the defendant’s six prior felony offenses were violations of state abuse prevention orders.
According to court records, on September 7, 2015, Caron stole a handgun from his son in Burlington and then traveled to the Swanton, Vermont residence of a friend of Caron’s ex-girl-friends. Once there, Caron accused the friend of having contact with Caron’s ex-girlfriend. The Government alleged that Caron then threatened to shoot this man while Caron was brandishing a firearm. The Government also alleged that Caron had previously threatened his girlfriend, stating he was going to “bash her head in.”
Caron had previously been sentenced in Superior Court in Franklin County to a 58-day sentence on a plea of guilty to a state charge of Aggravated Assault with a Deadly Weapon relating to the September 7, 2015 assault. In choosing to prosecute the case federally, United States Attorney Eric Miller stated, “Domestic abuse and the illegal possession of firearms are a potentially deadly combination. When convicted felons – particularly those with a proven history of domestic abuse – illegally possess and use guns to threaten others, we will continue to pursue federal charges and enhanced federal penalties to protect Vermont’s communities.”
The United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives have been working closely with the Vermont Attorney General’s Office to better coordinate the combined state and federal response to the particularly dangerous combination of illegal firearm possession and domestic violence.
Vermont’s Attorney General, Bill Sorrell, lauded the state and federal cooperation that led to Mr. Caron’s federal conviction, “It's important that state and federal authorities work together to address domestic violence given the relatively high proportion of homicides in our state that are domestic-violence related. It's also important that we work together to enforce orders of protection, and to ensure those prohibited persons who violate state and federal law by continuing to possess firearms experience serious consequences for their behavior given the documented risk of lethality this poses for domestic violence victims.”
Mickey D. Leadingham, Special Agent in Charge of the ATF’s Boston Field Division, added, "Domestic violence with the threat or use of a firearm is something we take very seriously. We will continue to partner with the U.S. Attorney’s Office and the Vermont Attorney General’s Office to arrest and prosecute the individuals who commit these acts while being prohibited from possessing firearms under federal law."
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Swanton Police Department. The United States is represented by Joe Perella and Caron is represented by Steven Barth, Esq. of the Federal Public Defender’s Office.
Broward County Resident Convicted at Trial of Stolen Identity Tax Fraud SchemeRead the Press Release
Following a trial before United States District Court Judge William P. Dimitrouleas, a jury convicted a Broward County resident for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Clifford Blain, 28, was convicted of one count of uttering a forged United States Treasury check, in violation of Title 18, United States Code, Section 510(a)(2), one count of bank fraud, in violation of Title 18, United States Code, Section 1344, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The defendant was remanded into custody following his conviction.
According to evidence presented at trial, Blain deposited a United States Treasury check containing a forged endorsement and signature of another individual into a bank account he controlled. An image of the defendant making the deposit was captured by ATM cameras and introduced during the trial proceedings.
Sentencing is scheduled for November 18, 2016 before Judge William P. Dimitrouleas. At sentencing, Blain faces up to ten years in prison for the uttering a forged Treasury check charge, thirty years in prison for the bank fraud charge, and two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Russell Killinger.
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.
Bronx Man Arrested for Possessing and Distributing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of RUDY MENA stemming from his possession and distribution of child pornography. MENA was arrested at his apartment in the Bronx, New York, on September 9, 2016, and was presented today before United States Magistrate Judge James L. Cott in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “Mena is charged with possessing and distributing child pornography, and in online chats with undercover agents, he allegedly boasted about molesting a young child. Thanks to the dedicated work of law enforcement, Mena is under arrest and can no longer hurt other children.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “There is nothing more disturbing than an offender raping and sexually abusing a young child. I must commend the super-human effort of investigators and prosecutors who are required to view and testify to the content of videos and photos depicting depravity well beyond anything that should exist in our society.”
According to the Complaint[1] filed today in federal court:
Starting in July 2016, an individual who was later identified as MENA communicated through an online messaging application with an undercover detective assigned to the Metropolitan Police Department-FBI (“MPD-FBI”) Child Exploitation Task Force, based in Washington, D.C. (“UC-1”). Through these exchanges, MENA, using the screen name “ragzbagz,” indicated to UC-1 that he was a 23-year-old New Yorker with access to a young child. He allegedly sent UC-1 a video purportedly depicting that young child naked, and informed UC-1 in graphic detail that he had molested the child. MENA also sent UC-1 multiple images of child pornography, including photographs of a prepubescent child’s vagina being touched and penetrated by an adult penis.
On September 9, 2016, MENA communicated online with a New York City-based undercover agent assigned to the FBI’s Crimes Against Children squad (“UC-2”). MENA informed UC-2 that MENA was primarily interested in children aged 4 through 8. MENA also sent UC-2 multiple photographs of an infant, at least one of which was taken from a media device that appeared to have been used by MENA. Later that day, the FBI arrested MENA at his residence in the Bronx, New York.
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MENA, 23, of the Bronx, is charged with one count of possession of child pornography, which carries a maximum sentence of 20 years in prison, and one count of distribution of child pornography, which carries a maximum sentence of 40 years in prison. 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.
Any individuals who believe they have information concerning MENA that may be relevant to the investigation should contact the FBI at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Bharara praised the efforts of the MPD and FBI in this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jonathan Rebold is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Beltsville Man Convicted for Financial Fraud SchemeRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Jemel Maurice Lyles, a/k/a Michael Anderson, Anthony Alva and Tony Alva, age 35, of Beltsville, Maryland, for conspiracy to commit wire fraud, wire fraud and money laundering, arising from a scheme in which he fraudulently received $72,000 from a victim after falsely promising to assist the victim to obtain $1 million in financing for a day care center.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to court documents and evidence presented at his five-day trial, co-conspirator Stephen Courtney Evans introduced Victim 1 to Lyles, whom he identified as “Michael Anderson.” The victim was looking for capital to finance a day care center. Lyles communicated with the victim by email or telephone under the alias of Michael Anderson, the CFO of Capital Group Holdings. Lyles and Evans falsely represented that CGH was a financial services business and for a fee, could obtain a Standby Letter of Credit (SBLC) for the victim. Lyles agreed to sell the victim a $1 million SBLC in exchange for a 7.2% fee of the total amount, or $72,000. According to trial testimony, Lyles falsely represented that the victim could use the SBLC as collateral to obtain a non-recourse loan (a loan that the victim would not be required to pay back) from another financial institution.
The evidence showed that Lyles falsely told the victim that Hampstead Private Finance Group Limited (HPFG) would provide the victim with an $800,000 non-recourse loan, using the $1 million SBLC as collateral. According to witness testimony, Lyles communicated with the victim using a purported HPFG email address, which Lyles created to perpetrate the scheme, and the alias “Tony Alva,” the Chief Financial Officer of Hampstead Private Finance Group, which at that time was a defunct entity. Using the Alva alias, Lyles falsely confirmed to the victim that HPFG would accept the $1 million SBLC, which the victim was to obtain from CGH, as collateral on an $800,000 non-recourse loan.
According to evidence presented at trial, after receiving the victim’s $72,000 fee for the SBLC, Lyles took the money for his personal use, including the purchase of a Land Rover, and payment of past due rent. Lyles (as Anderson) continued to assure the victim that a $1 million SBLC had been purchased and that the transaction was being processed. Lyles (as Anderson) also falsely told the victim that he would return the victim’s $72,000 fee.
Lyles faces a maximum sentence of 20 years in prison and a fine of $250,000 for the conspiracy, and for wire fraud; and a maximum of 10 years in prison for each of the two counts of money laundering. U.S. District Judge Deborah K. Chasanow has scheduled his sentencing for January 23, 2017, at 9:00 a.m.
Co-conspirator Stephen Courtney Evans, age 50, of Manassas, Virginia, previously pleaded guilty to his role in the scheme and is scheduled to be sentenced on November 7, 2016, at 10:00 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ray D. McKenzie and Thomas M. Sullivan, who are prosecuting the case.
Baton Rouge Resident Convicted of Fraudulent Scheme Throughout 2012 and 2013Read the Press Release
BATON ROUGE, LA - United States Attorney Walt Green of the Middle District of Louisiana announced that RAPHEW T. REED, JR., age 31, of Baton Rouge, Louisiana, has been convicted of false representation of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), and wire fraud, in violation of Title 18, United States Code, Section 1343, in connection of a fraudulent scheme he executed throughout 2012 and 2013 in the Baton Rouge area and elsewhere. REED entered his guilty pleas before Judge John W. deGravelles and is now awaiting sentencing. REED faces significant incarceration, fines, restitution, and supervised release following imprisonment, as well as the forfeiture of the proceeds of his criminal activity.
REED was a resident of Baton Rouge, Louisiana, who held himself out as a financial advisor and as someone who could assist individuals and businesses in obtaining credit and financing. However, during his guilty plea hearing, REED admitted that, in May of 2012, he knowingly made false statements to a federally-insured credit union in an attempt to obtain a loan. REED provided the credit union with a false Social Security number and documents that misrepresented his identity, income, and credit score. When that scheme failed, from late 2012 through April 2013, REED executed a scheme to defraud another company, which, on November 27, 2012, wired $125,000 to REED. REED fraudulently diverted the funds to his friends, family members, others to whom he owed money, and to another one of his own bank accounts. When the victim repeatedly asked REED to return the funds, as he had promised he would do, REED falsely represented to the victim that he was in the process of returning the company’s funds. REED knew that he did not have the funds but continued to make false statements to the victim through April of 2013.
U.S. Attorney Green stated: “Con artists undermine the financial security of our community and often leave many victims in their wake. We will continue to vigilantly pursue such criminals with the resources necessary to bring them to justice.”
This ongoing matter is being investigated by the Baton Rouge office of the Federal Bureau of Investigation, with valuable assistance from the Social Security Administration’s Office of Inspector General. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a deputy chief within the office’s Criminal Division.
Atlantic County, New Jersey, Man Charged with Using Telephone Dating Services to Defraud Multiple Women Across Several StatesRead the Press Release
CAMDEN, N.J. - An Atlantic County man who was previously sentenced for wire fraud was charged today with using telephone dating services to lure and defraud multiple women after he escaped from a halfway house and later, while being on federal supervised release, U.S. Attorney Paul J. Fishman announced.
Patrick Giblin, 52, formerly of Ventnor, New Jersey, is charged by complaint with one count of wire fraud. He made his initial appearance today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was detained.
Giblin was previously sentenced in April 2007 to 115 months in federal prison on wire fraud charges related to a similar scheme to defraud women. Giblin was sentenced again on Oct. 2, 2015 to 24 months in prison for violating the terms of his supervised release. He was taken into custody today following the completion of this sentence at FCI-Fairton.
According to the complaint:
Between December 2012 and Dec. 16, 2014, Giblin contacted telephone dating services in an attempt to lure and defraud women by preying on their hope of developing a relationship. Giblin used a series of false representations to convince women on these services to loan him money based on the false promise that he would pay them back.
Giblin posted advertisements and messages on the telephone dating services wherein he falsely claimed, among other things, that he was moving to a victim’s location, that he owned oceanfront property in Atlantic City, and that he worked in the casino business.
Giblin fraudulently told the victims he needed to borrow money for bills, car repairs, moving expenses, and other phony expenditures. He received money from the women via interstate wire services such as Western Union and Moneygram. The complaint – which only includes a sample of the victims involved in the scheme – discusses eight separate victims in five different states and Canada, who lost a total of over $7,000 to Giblin. The investigation remains ongoing.
During the course of the scheme, Giblin, who was on federal supervised release for previously defrauding over 50 women for over $200,000 in losses, unlawfully fled New Jersey for Colonie, New York, where he continued to receive money until his arrest by the U.S. Marshals on Dec. 16, 2014. Giblin has been in federal custody since that time.
Giblin faces a statutory maximum term of imprisonment of 20 years and a $250,000 fine if convicted.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. Fishman also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, for its assistance in this case.
The charge and allegations against Giblin are merely accusations, and he is considered innocent unless and until proven guilty.
The government is represented by Deputy Attorney in Charge Matthew J. Skahill and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office in Camden.
Defense counsel: Christopher O’Malley, Esq.Ambulance Company Owner Sentenced in Medicare FraudRead the Press Release
PHILADELPHIA – Zahar “Alex” Tkach of Bensalem, PA, was sentenced today by U.S. District Court Judge Harvey Bartle III to 60 months’ incarceration, 3 years’ supervised release and $1,250,930 in restitution in connection with a scheme to defraud Medicare by charging for unnecessary ambulance services, obstructing two federal audits and laundering criminal proceeds. The scheme ran from approximately June 2008 through April 2012.
As described in the 19-count indictment, Zahar Tkach owned two ambulance companies, NovaCare Ambulance Services, Inc. (also called “Novocare Ambulance”) and Cardiac Care Ambulance, Inc. (“Cardiac Care”), operating primarily in Philadelphia and the surrounding counties. The two ambulance companies shared resources, including employees and patients. Tkach managed both companies’ operations, finances and billings. Tkach transported dialysis patients who needed treatments three times per week, thereby allowing him to bill Medicare extensively for those patients, when the ambulance services were not medically necessary for those patients. He also billed Medicare for paratransit services by falsely claiming that the patients were transported by ambulance. When Medicare audited the 2011 billings of Novocare and Cardiac Care, the defendant obstructed the audits by altering, and directed employees to alter, ambulance transport records and he falsified medical authorization forms, all of which he submitted to the Medicare auditors to support the fraudulent billings.
This case was investigated by the FBI and the Department of Health and Human Services-Office of the Inspector General and prosecuted by Assistant U.S. Attorney Andrea Foulkes.
Albuquerque Man Pleads Guilty to Robbing Two Fast-Food Restaurants and Brandishing a Firearm During the RobberiesRead the Press Release
ALBUQUERQUE – Sheldon Harris, 28, of Albuquerque, N.M., pled guilty today in federal court to violating the Hobbs Act by robbing two Albuquerque-area fast food restaurants and to brandishing a firearm during the robberies.
Harris was arrested on April 20, 2016, on a ten-count indictment charging him with: robbing Albuquerque-area Subway restaurants on Aug. 22, 2015, Sept. 6, 2015, Sept. 8, 2016, Sept. 26, 2015, and Oct. 5, 2015; robbing Albuquerque-area Blake’s Lotaburger restaurants on Oct. 1, 2015, Oct. 5, 2015, Oct. 11, 2015, and Oct. 18, 2015; and brandishing a firearm during a crime of violence from Aug. 22, 2015 through Oct. 18, 2015. According to the indictment, Harris committed the crimes in Bernalillo County, N.M.
During today’s proceedings, Harris pled guilty to Counts 8 and 9 of the indictment, each charging him with violating the Hobbs Act by robbing a business engaged in interstate commerce. He also pled guilty to Count 10, charging him with brandishing a firearm during a crime of violence. In entering the guilty plea, Harris admitted that on Oct. 11, 2015 and Oct. 18, 2015, he robbed Blake’s Lotaburger restaurants at gunpoint. Harris further admitted that when he robbed the Blake’s Lotaburger restaurants as well as several other restaurants in the Albuquerque-area, he used a firearm.
At sentencing, Harris faces a statutory maximum penalty of 20 years in prison on the Hobbs Act robbery charge. He also faces a statutory mandatory minimum sentence of 84 months in prison for brandishing a firearm that must be served consecutive to the sentence imposed on the robbery charge. Harris remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Accountant Sentenced to 36 Months in Prison and Ordered to Pay $2.5 Million in Restitution for Filing False Tax ReturnRead the Press Release
TULSA, OKLA.— Nelson Wade Cagle, 32, of Owasso, was sentenced today to serve 36 months in federal prison for filing a false income tax return in 2013, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma. In addition to the prison incarceration, United States District Court Chief Judge Gregory K. Frizzell ordered Cagle to pay restitution in the approximate amount of $2 million to CEI Petroleum, LLC, owned by ORCA/CEI Petroleum, and approximately $600,000 to the Internal Revenue Service.
Cagle was charged by Information in April 2016, and pleaded guilty in June 2016.
According to court documents, Cagle admitted that he failed to report the monies and funds that he fraudulently diverted from ORCA/CEI Petroleum, a local petroleum/energy corporation, as income on his 2013 federal tax return. His embezzlement and failure to report it on his income tax return also resulted in his owing the Internal Revenue Service more than $597,000.
The case was a joint investigation by the Internal Revenue Service-Criminal Investigations and the Federal Bureau of Investigation. Assistant United States Attorney Trent Shores prosecuted the case.
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Sunday 11 September 2016
Van Wert Man Sentenced to 120 Years in Prison for Production of Child PornographyRead the Press Release
DES MOINES, IA – On September 8, 2016, Timothy Ryan Zollman, 31, of Van Wert, Iowa, was sentenced by Senior United States District Court Judge Robert W. Pratt to 120 years in federal prison, followed by a lifetime of supervised release, for committing two counts of production of child pornography, announced United States Attorney Kevin E. VanderSchel.
According to evidence presented at sentencing, Zollman sexually assaulted and exploited ten prepubescent girls and video recorded the assaults. Zollman’s sentence was enhanced because he committed these crimes while he was listed on the Iowa Sex Offender Registry for a prior conviction.
"The evidence in this case showed Timothy Zollman is a dangerous predator," said United States Attorney Kevin E. VanderSchel. "He was brought to justice because one of his victims, a young girl, was brave enough to report his criminal actions. The significant term of incarceration Zollman will serve is appropriate and necessary to protect the public and other potential victims."
This matter was investigated by the Federal Bureau of Investigation, United States Department of Homeland Security – Homeland Security Investigations, United States Marshals Service, Iowa Division of Criminal Investigation Internet Crimes Against Children Task Force, Decatur County Sheriff’s Department, Decatur County Attorney’s Office, Ringgold County Sheriff’s Department, Creston Police Department, Polk County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and the South Dakota Department of Criminal Investigation.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s "Project Safe Child" initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
U.S. Attorney’s Office, Western District of Louisiana, honors the fallen from 9/11Read the Press Release
U.S. Attorney Stephanie Finley stated that: “The Western District of Louisiana remembers all of those who lost their lives on 9/11 and who gave the ultimate sacrifice in service of our country. It has been 15 years since the terror attacks in New York, Washington, D.C., and Pennsylvania, and the tragic loss of life still impacts us today. It never gets easy remembering the fear we felt and the images of destruction that are not common in our country. We also recall the courageous acts of valor from first responders and citizens who gave their all to help those affected by the attacks. We cannot forget the fallen soldiers from the Western District of Louisiana who answered the call to defend this nation. They are in our thoughts every time the Department of Justice works to eliminate threats to national security. No aspect of our work is more important or more urgent. As we reflect on this day, let’s take a moment to remember all of those who have died here and abroad and continue to keep their families in our prayers.”
Below is a list of Louisiana’s Fallen Heroes who served Honorably in Operation Iraqi Freedom and Operating Enduring Freedom. Thank you to all of those who continue to serve!
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Army Sgt. 1st Class Andrew T. Weathers, of DeRidder, La, Marine Lance Cpl. Christopher O. Grant, 20, of Richwood, La., Army Spc. Christopher R. Drake, 20, of Tickfaw, La., Army Chief Warrant Officer Bryan J. Henderson, 27, of Franklin, La., Air Force Tech. Sgt. Larry Bunn, 43, of Bossier City, La., Marine Sgt. Michael J. Guillory, 28, of Pearl River, La., Army Capt. Aaron D. Istre, 37, of Vinton, La., Naval Aircrewman (Helicopter) 1st Class Joseph P. Fitzmorris, 31, of West Monroe, La., Navy Lt. Cmdr. (SEAL) Jonas B. Kelsall, 32, of Shreveport, La., Navy Special Warfare Operator Chief Petty Officer (SEAL) Robert J. Reeves, 32, of Shreveport, La., Army Sgt. Christopher P. Soderlund, 23, of Pineville, La., Army Staff Sgt. Michael J. Garcia, 27, of Bossier City, La., Air Force Tech. Sgt. Daniel L. Douville, 33, of Harvey, La., Marine Cpl. Matthew T. Richard, 21, of Acadia, La., Army Staff Sgt. Quadi S. Hudgins, 26, of New Orleans, Army Spc. Christian J. Romig, 24, of Kenner, La., Marine Lance Cpl. Dakota R. Huse, 19, of Greenwood, La., Army Spc. Steven L. Dupont, 20, of Lafayette, La., Army Spc. Matthew C. Powell, 20, of Slidell, La., Marine Sgt. Joseph A. Bovia, 24, of Kenner, La., Marine Sgt. Joe L. Wrightsman, 23, of Jonesboro, La., Army Sgt. Jordan E. Tuttle, 22, of West Monroe, La., Army Pfc. Bryant J. Haynes, 21, of Epps, La., Army Maj. Ronald W. Culver Jr., 44, of Shreveport, La., Army Sgt. Joshua A. Tomlinson, 24, of Dubberly, La., Army Sgt. Patrick O. Williamson, 24, of Broussard, La., Army Pfc. Brian R. Bates Jr., 20, of Gretna, La., Army Spc. Michael S. Cote Jr., 20, of Denham Springs, La., Army Pfc. Matthew E. Wildes, 18, of Hammond, La., Army Pfc. Jason R. Watson, 19, of Many, La., Army Chief Warrant Officer 4 Milton E. Suggs, 51, of Lockport, La., Air Force Senior Airman Omar J. McKnight, 22, of Marrero, La., Army Sgt. 1st Class David J. Todd Jr., 36, of Marrero, La., Marine Staff Sgt. Danny P. Dupre, 28, of Lockport, La., Army Pfc. Bryan M. Thomas, 22, of Lake Charles, La., Army Sgt. 1st Class David R. Hurst, 31, of Kenner, La., Army Cpl. Justin R. Mixon, 22, of Bogalusa, La., Army Sgt. Joseph A. Richard III, 27, of Lafayette, La., Army Sgt. Terrell W. Gilmore, 38, of Baton Rouge, La., Army Staff Sgt. Michael J. Gabel, 30, of Crowley, La., Army Staff Sgt. Jarred S. Fontenot, 35, of Port Barre, La., Army Pvt. Justin T. Sanders, 22, of Watson, La., Army Spc. Charles E. Leonard Jr., 29, of Monroe, La., Army Sgt. 1st Class John M. Hennen, 26, of Vinton, La., Army Cpl. William J. Crouch, 21, of Zachary, La., Marine Cpl. Willie P. Celestine Jr., 21, of Lafayette, La., Army Pvt. Mark W. Graham, 22, of Lafayette, La., Army Staff Sgt. Ronnie L. Sanders, 26, of Thibodaux, La., Army Spc. Johnathan B. Chism, 22, of Gonzales, La., Army Staff Sgt. Jacob G. McMillan, 25, of Lafayette, La., Marine Lance Cpl. Myles C. Sebastien, 21, of Opelousas, La., Army Spc. Joshua B. Madden, 21, of Sibley, La., Army Sgt. Jay R. Gauthreaux, 26, of Thibodaux, La., Army Pvt. Joshua C. Burrows, 20, of Bossier City, La., Army Cpl. Joseph C. Dumas Jr., 25, of New Orleans, La., Marine Lance Cpl. Jon E. Bowman, 21, of Dubach, La., Marine Lance Cpl. John E. Hale, 20, of Shreveport, La., Army Cpl. Marcus A. Cain, 20, of Crowley, La., Army Sgt. Matthew J. Vosbein, 30, of Metairie, La., Marine Lance Cpl. Donald E. Champlin, 28, of Natchitoches, La., Army Sgt. 1st Class Terry O.P. Wallace, 33, of Winnsboro, La., Corpsman 3rd Class Lee Hamilton Deal, 23, of West Monroe, La., Army Spc. Brandon L. Teeters, 21, of Lafayette, La., Marine Lance Cpl. Derrick J. Cothran, 21, of Avondale, La., Marine Pfc. Chase A. Edwards, 19, of Lake Charles, La., Army Staff Sgt. Bryan A. Lewis, 32, of Bunkie, La., Marine 1st Lt. Brandon R. Dronet, 33, of Erath, La., Marine Lance Cpl. Matthew R. Barnes, 20, of West Monroe, La., Army Spc. William S. Hayes III, 23, of St. Tammany, La., Marine Lance Cpl. Billy D. Brixey Jr., 21, of Ferriday, La., Marine Lance Cpl. Ryan S. McCurdy, 20, of Baton Rouge, La., Army Sgt. Julia V. Atkins, 22, of Bossier City, La., Army Pfc. Benny S. Franklin, 19, of Hammond, La., Army Staff Sgt. Jens E. Schelbert, 31, of New Orleans, La., Army Sgt. Willard T. Partridge, 35, of Ferriday, La., Marine Cpl. David S. Stewart, 24, of Bogalusa, La., Navy Chief Fire Controlman (SEAL) Jacques J. Fontan, 36, of New Orleans, La., Marine Cpl. Chad W. Powell, 22, of West Monroe, La., Army Sgt. David J. Murray, 23, of Clinton, La., Army Sgt. 1st Class Peter J. Hahn, 31, of Kenner, La., Army Sgt. Robin V. Fell, 22, of Shreveport, La., Army Sgt. Bernard L. Sembly II, 25, of Bossier City, La., Army 1st Sgt. Michael J. Bordelon, 37, of Morgan City, La., Marine Cpl. Richard P. Schoener, 21, of Hayes, La., Army Sgt. Maj. Barbaralien Banks, 41, of Harvey, La., Army Sgt. Isiah J. Sinclair, 31, of Natchitoches, La., Army Sgt. Lee M. Godbolt, 23, of New Orleans, La., Army Sgt. Paul M. Heltzel, 39, of Baton Rouge, La., Army Sgt. Nicholas J. Olivier, 26, of Ruston, La., Army Spc. Seth R. Trahan, 20, of Crowley, La., Army Sgt. Rene Knox Jr., 22, of New Orleans, La., Army Spc. Christopher J. Ramsey, 20, of Batchelor, La., Army Spc. Michael S. Evans II, 22, Marrero, La., Army Staff Sgt. Jonathan R. Reed, 25, of Opelousas, La., Army Staff Sgt. William F. Manuel, 34, of Kinder, La., Army Sgt. Robert W. Sweeney III, 22, of Pineville, La., Army Spc. Warren A. Murphy, 29, of Marrero, La., Army Spc. Armand "Luke" Frickey, 20, Houma, La., Army Spc. Huey P.L. Fassbender, 24, of LaPlace, La., Army Spc. Bradley J. Bergeron, 25, of Houma, La., Army Sgt. Christopher J. Babin, 27, of Houma, La., Army Sgt. 1st Class Kurt J. Comeaux, 34, of Raceland, La., Army Sgt. Craig L. Nelson, 21, of Bossier City, La., Army 1st Lt. Christopher W. Barnett, 32, of Baton Rouge, La., Army Pfc. Lionel Ayro, 22, of Jeanerette, La., Marine Sgt. Jeffrey L. Kirk, 24, of Baton Rouge, La., Marine Lance Cpl. Justin D. McLeese, 19, of Covington, La., Marine Pfc. David P. Burridge, 19, of Lafayette, La., Army Spc. Joseph C. Thibodeaux 24, of Lafayette, La., Marine Lance Cpl. Larry L. Wells 22, of Mount Hermon, La., Army Pfc. Torey J. Dantzler 22; of Columbia, La., Army Pfc. Charles C. Persing 20, of Albany, La., Army Spc. Robert L. DuSang 24, of Mandeville, La., Army Spc. Jeremy M. Heines 25, of New Orleans, La., Army Cpl. David M. Fraise 24, of New Orleans, La., Army Staff Sgt. Robert J. Mogensen 26, of Leesville, La., Army Pfc. James P. Lambert 23, of Ascension Parish, La., Army Command Sgt. Maj. Edward C. Barnhill 50, of Shreveport, La., Army Staff Sgt. Toby W. Mallet 26, of Kaplan, La., Army Staff Sgt. Craig Davis 37, of Opelousas, La., Army Pfc. Kristian E. Parker, 23, of Slidell, La., Army Sgt. Taft V. Williams, 29, of New Orleans, La., Army Sgt. Floyd G. Knighten Jr., 55, of Olla, La., Army Spc. Levi B. Kinchen, 21, of Tickfaw, La., and Army Pfc. Wilfred D. Bellard, 20, of Lake Charles, La.
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This year the Department of Justice took part in a series of events marking the 15th anniversary. They started with a ceremony on Friday, September 9, which dedicated of a plaque for the department’s own “Survivor Tree.” The department’s tree was a seedling from the famed the Callery pear tree that once stood on the original World Trade Center Plaza. The collapse of the Twin Towers on September 11, 2001 nearly destroyed it, but the original tree was nursed back to health, and today it stands strong again at the 9/11 Memorial in Manhattan, where it is often adorned with tributes.
Fruit from the World Trade Center Survivor Tree was harvested in the fall of 2011. In the summer of 2013, the students of John Bowne High School in Flushing, Queens, N.Y., took the seedlings and continued to care for them. The 9/11 Memorial graciously donated one of these very special Survivor Tree seedlings to the Department of Justice, which was planted in the U.S. Department of Justice Courtyard in Washington, D.C.
Additionally, the Department of Justice marked the anniversary with U.S. Attorney General Lorretta E. Lynch attending the New York City Fire Department’s 15th Anniversary Memorial Mass at St. Patrick’s Cathedral in New York on Saturday, September 10; the attorney general attending the 9/11 Commemoration Ceremony at the 9/11 Memorial & Museum Plaza in New York today; and the attorney general delivering remarks at the 9/11 Memorial Service at the First Presbyterian Church of Brooklyn, N.Y., today.
The September 11th National Day of Service and Remembrance is also observed today. Since 2002 it has been an effort to inspire charitable service on 9/11 as a tribute to 9/11 victims, survivors and those who lent support in the wake of the terror attacks. Find out more about how to serve at www.serve.gov/site-page/september-11th-national-day-service-and-remembrance.
Saturday 10 September 2016
Williamson County Woman Sentenced for Federal Drug ViolationRead the Press Release
On September 7, 2016, Natasha C. Mann, 29, of Carterville, was sentenced for her role in a federal drug conspiracy, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Mann, who had previously pled guilty to a one-count indictment charging conspiracy to distribute MDMA, was sentenced to 60 months imprisonment, 3 years supervised release, and was fined $400.00. MDMA is 3,4-Methylenedioxymethamphetamine, a controlled substance which is commonly referred to as ecstasy. Evidence at the plea and sentencing hearings established that, between December 2015, and March 22, 2016, Mann was involved with others in the distribution of approximately 11,971 ecstasy tablets. The offense occurred in Williamson County.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Department of Homeland Security, Drug Enforcement Administration, Marion Police Department, and U.S. Postal Inspection Service. The Illinois State Police and Williamson County States Attorney’s Office assisted in the investigation.
U.S. Attorney Damon P. Martinez Pays Tribute to Alamogordo Police Officer Clint CorvinusRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez paid tribute to Officer Clint Corvinus of the Alamogordo Police Department this morning during the Officer’s public memorial service at the Tays Event Center of the New Mexico State University in Alamogordo, N.M. The U.S. Attorney delivered the following remarks:
“On behalf of the Attorney General of the United States of America, the U.S. Attorney’s Office and the entire federal law enforcement community, I want to express our deepest condolences.
“Today we come together to grieve for Officer Corvinus and, to the extent possible, to comfort his family and loved ones as they struggle to deal with the profound void left by his passing.
“In New Mexico, the law enforcement community knows no divide – state, county, local, tribal and federal – we are all just law enforcement. We all work together and support each other every day. On this day, we all share the sorrow of losing Officer Corvinus.
“With the permission of the family and [Alamogordo Police] Chief [Daron] Syling, I will read a letter of condolence from U.S. Attorney General Loretta Lynch.”
USAG Corvinus Letter
Owner of Tax King Sentenced to PrisonRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Eyob Tilahun, 30, of St. Louis, MO, was sentenced to 38 months in federal prison for defrauding the United States Treasury. Tilahun’s conviction and sentence arise from his operation of a fraudulent tax return preparation business known as Tax King, LLC.
Tilahun owned and operated several Tax King facilities located in St. Louis, MO. Tilahun also operated a Tax King located at 212 Collinsville Avenue in East St. Louis. On May 20, 2016, Tilahun pled guilty in Federal Court in East St. Louis to a charge of conspiring to submit false claims for tax refunds. As part of his guilty plea, Tilahun admitted that Tax King’s return preparers were trained and instructed to increase their customers’ refunds by falsifying certain information on their tax returns. The false information that was placed on the returns included: (1) false Business Income and Schedules Cs which caused the clients to qualify for larger Earned Income Credits ("EICs"); (2) false wages, which again caused the clients to qualify for larger EICs; (3) false education expenses which enabled the clients to qualify for American opportunity education credits; and (4) false information regarding fuel taxes which qualified the clients for federal fuel tax credits.
Tilahun admitted that he profited from the scheme by charging Tax King’s clients fees which ranged from approximately $400 to $650. The indictment in the case alleges that the return preparers also profited by requesting cash "tips" from the clients of approximately $100 to $1,000.
In addition to the 38 month prison sentence, Tilahun will be ordered to pay restitution to the United States Treasury. The exact amount of restitution will be determined at a later date, but is expected to exceed $2,000,000.
Two employees of Tax King were also sentenced today. Tanesa L. Beverly, 32, of East St. Louis, IL, and Melissa L. Wiley, 35, of Granite City, IL, were both sentenced to two years of probation. Beverly and Wiley both worked as return preparers at the East St. Louis Tax King for a couple of months during 2013. Both had previously pled guilty to participating in the conspiracy and filing false tax returns. In addition to their probation sentences, Beverly was ordered to pay $8,245 in restitution and Wiley was ordered to pay restitution of $13,401.
In addition to Tilahun, Beverly, and Wiley, four other defendants in the case have previously pled guilty. Those defendants are: Mason B. Richmond, 31, of St. Louis, MO; Lakesha R. Wilson, 28, of East St. Louis, IL; Edric A. Russell, 35, of East St. Louis, IL, and Pierre J. Carter, 34, of East St. Louis, IL. Wilson, Russell, and Carter all worked as return preparers at the East St. Louis Tax King. Richmond worked as a return preparer at a Tax King on North Grand in St. Louis.
Tilahun, Beverly, and Wiley are scheduled to be sentenced on September 9, 2016. Sentencing for Richmond will be October 7, 2016. Russell and Carter will be sentenced on January 27, 2017. Wilson’s sentencing hearing is scheduled for February 3, 2017.
The investigation is being conducted by agents from both the Fairview Heights, Illinois, and St. Louis, Missouri Offices of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman. The United States Attorney’s Office for the Eastern District of Missouri has also prosecuted several return preparers who worked at Tax King locations in St. Louis, MO.
Friday 9 September 2016
Youngstown man charged with selling heroin that resulted in fatal overdose, as well as firearm and other drug violationsRead the Press Release
A Youngstown man was charged in a with firearms and narcotics violations, including selling heroin that resulted in a fatal overdose, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Lebron Charles Bunkley, 37, is named in the six-count indictment. The charges include distribution of heroin, cocaine and crack cocaine. The indictment also allegeds that on May 14, 2016 in Youngstown, a person fatally overdosed on heroin sold by Bunkley.
Bunkley is also charged with possessing a Walther, model P22, .22 pistol, an FIE, model Tital, .25 pistol and ammunition on May 18, despite numerous prior felony convictions, including assault, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug crime and being a felon in possession of a firearms, according to the indictment.
Bunkley is also charged with possessing the above-mentioned firearms and ammunition in furtherance of the aforementioned drug trafficking crimes, according to the indictment.
“This defendant has a long history of crime, which has now expanded to include selling drugs that resulted in the death of another person,” Rendon said.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Mahoning Valley Law Enforcement Task Force, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Volkswagen Engineer Pleads Guilty for His Role in Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
James Robert Liang, a Volkswagen engineer, pleaded guilty today for his role in a nearly 10-year conspiracy to defraud U.S. regulators and U.S. Volkswagen customers by implementing software specifically designed to cheat U.S. emissions tests in hundreds of thousands of Volkswagen “clean diesel” vehicles, the Justice Department announced today. Liang’s plea agreement provides that he will cooperate with the government in its ongoing investigation.
Liang, 62, of Newbury Park, California, pleaded guilty today to one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act. He was indicted under seal on June 1, 2016, by a federal grand jury, and the indictment was unsealed today. The case has been assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan.
According to the plea agreement, from 1983 until May 2008, Liang was an employee of Volkswagen AG (VW), working in its diesel development department in Wolfsburg, Germany. Liang admitted that beginning in about 2006, he and his co-conspirators started to design a new “EA 189” diesel engine for sale in the United States. According to Liang’s admissions, when he and his co-conspirators realized that they could not design a diesel engine that would meet the stricter U.S. emissions standards, they designed and implemented software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions (the defeat device), in order to cheat the emissions tests. Liang admitted that he used the defeat device while working on the EA 189 and assisted in making the defeat device work. In May 2008, Liang moved to the United States to assist in the launch of VW’s new “clean diesel” vehicles in the U.S. market, according to the plea agreement. While working at VW’s testing facility in Oxnard, California, he has held the title of Leader of Diesel Competence.
According to the plea agreement, employees of VW and its U.S. subsidiary met with the EPA and the California Air Resources Board (CARB) to seek the certifications required to sell each model year of its vehicles to U.S. customers. Liang admitted that during some of these meetings, which he personally attended, his co-conspirators misrepresented that VW diesel vehicles complied with U.S. emissions standards and hid the existence of the defeat device from U.S. regulators.
As part of the certification process for each new model year, including model years 2009 through 2016, the co-conspirators continued to falsely and fraudulently certify to EPA and CARB that VW diesel vehicles met U.S. emissions standards and complied with the Clean Air Act, according to the plea agreement. Liang admitted that during this time, he and his co-conspirators knew that VW marketed its diesel vehicles to the U.S. public as “clean diesel” and environmentally-friendly, and promoted the increased fuel economy. Liang and his co-conspirators knew that these representations were false and that VW’s diesel vehicles were not “clean,” he admitted.
In connection with pleading guilty, Liang admitted that he helped his co-conspirators continue to lie to the EPA, CARB and VW customers even after the regulatory agencies started raising questions about the vehicles’ on-road performance following an independent study commissioned by the International Council on Clean Transportation, which showed that the diesel vehicles’ emissions on the road were up to 40 times higher than shown on the dynamometer.
The FBI’s Detroit Office and EPA-CID are investigating the case. Deputy Chief Benjamin D. Singer and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Trial Attorney Jennifer L. Blackwell of the Environment and Natural Resources Division, and Criminal Division Chief Mark Chutkow and Economic Crimes Unit Chief John K. Neal of the U.S. Attorney’s Office of the Eastern District of Michigan are prosecuting the case.
Volkswagen Engineer Pleads Guilty for His Role in Conspiracy to Cheat U.S. Emissions TestRead the Press Release
James Robert Liang, a Volkswagen engineer, pleaded guilty today for his role in a nearly 10-year conspiracy to defraud U.S. regulators and U.S. Volkswagen customers by implementing software specifically designed to cheat U.S. emissions tests in hundreds of thousands of Volkswagen “clean diesel” vehicles, the Justice Department announced today. Liang’s plea agreement provides that he will cooperate with the government in its ongoing investigation.
Liang, 62, of Newbury Park, California, pleaded guilty today to one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act. He was indicted under seal on June 1, 2016, by a federal grand jury, and the indictment was unsealed today. The case has been assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan.
According to the plea agreement, from 1983 until May 2008, Liang was an employee of Volkswagen AG (VW), working in its diesel development department in Wolfsburg, Germany. Liang admitted that beginning in about 2006, he and his co-conspirators started to design a new “EA 189” diesel engine for sale in the United States. According to Liang’s admissions, when he and his co-conspirators realized that they could not design a diesel engine that would meet the stricter U.S. emissions standards, they designed and implemented software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions (defeat device), in order to cheat the emissions tests. Liang admitted that he used the defeat device software while working on the EA 189 and assisted in making the defeat device software work. In May 2008, Liang moved to the United States to assist in the launch of VW’s new “clean diesel” vehicles in the U.S. market, according to the plea agreement. While working at VW’s testing facility in Oxnard, California, he has held the title of Leader of Diesel Competence.
According to the plea agreement, employees of VW and its U.S. subsidiaries met with the EPA and the California Air Resources Board (CARB) to seek the certifications required to sell each model year of its vehicles to U.S. customers. Liang admitted that during some of these meetings, which he personally attended, his co-conspirators misrepresented that VW diesel vehicles complied with U.S. emissions standards and hid the existence of the defeat device from U.S. regulators.
As part of the certification process for each new model year, including model years 2009 through 2016, the co-conspirators continued to falsely and fraudulently certify to EPA and CARB that VW diesel vehicles met U.S. emissions standards and complied with the Clean Air Act, according to the plea agreement. Liang admitted that during this time, he and his co-conspirators knew that VW marketed its diesel vehicles to the U.S. public as “clean diesel” and environmentally-friendly, and promoted the increased fuel economy. Liang and his co-conspirators knew that these representations were false and that VW’s diesel vehicles were not “clean,” he admitted.
In connection with pleading guilty, Liang admitted that he and his co-conspirators continued to lie to the EPA, CARB and VW customers even after the regulatory agencies started raising questions about the vehicles’ on-road performance following an independent study commissioned by the International Council on Clean Transportation, which showed that the diesel vehicles’ emissions on the road were up to 40 times higher than shown on the dynamometer.
The FBI’s Detroit Office and EPA-CID’s Chicago Area Office are investigating the case. Deputy Chief Benjamin D. Singer and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Trial Attorney Jennifer L. Blackwell of the Environment and Natural Resources Division, and Criminal Division Chief Mark Chutkow and Economic Crimes Unit Chief John K. Neal of the U.S. Attorney’s Office of the Eastern District of Michigan are prosecuting the case.
Two Individuals Plead Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Sarah J. Greene, 38, and Michael C. Mullen, 35, both of Wellsville, NY, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to conspiracy to manufacture, possess with intent to distribute, and to distribute, methamphetamine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that between January 2011 and late 2014, the defendants conspired to manufacture and distribute methamphetamine. Greene and Mullen engaged in the practice of “smurfing” (buying small quantities of) at local pharmacies to get around restrictions on purchasing products containing pseudoephedrine. This is the most important chemical necessary in the process of manufacturing methamphetamine.
The conviction is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Division, the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb, the Wellsville Police Department, under the direction of Chief Timothy O’Grady, U.S. Border Patrol, under the direction of Patrol Agent in Charge Steven Oldman, and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.
Greene is scheduled to be sentenced on December 14, 2016; Mullen will be sentenced on December 19, 2016, both before Judge Vilardo.
Three Lead Defendants in Large Racketeering Case Targeting Crips Gang Plead Guilty to Federal Charges, Including Murder ConspiracyRead the Press Release
LOS ANGELES – With guilty pleas this week by a leader of the Five Deuce Broadway Gangster Crips (BGC), the three lead defendants in the largest racketeering case currently pending in Los Angeles have now pleaded guilty.
Tyrine Martinez, also known as “Lil’ C-Bone,” 36, of Los Angeles, pleaded guilty Wednesday afternoon to racketeering conspiracy, conspiring to commit murder, conspiring to traffic crack cocaine, illegally possessing a firearm and selling crack cocaine near schools.
As a result of guilty pleas before United States District Judge S. James Otero, Martinez faces a potential life sentence and a mandatory minimum term of 15 years in federal prison.
Martinez was among 72 charged in a RICO indictment that targeted BGC, a street gang that claims territory in South Los Angeles and controls drug sales in an area just west of the “Skid Row” district of Los Angeles. The indictment outlined two decades of criminal conduct, including murders, robberies, extortion, illegal firearms possession, witness intimidation and narcotics trafficking.
Over the past several weeks, two other key defendants named in a 213-page RICO indictment have pleaded guilty. Tracy Harris, aka “Woody,” 51, of Inglewood, pleaded guilty on August 5 to racketeering conspiracy, conspiring to sell methamphetamine after having been convicted of a prior drug felony, and selling methamphetamine near schools. And, on July 27, Roosevelt Sumpter, aka “TuTu,” 43, of Los Angeles, pleaded guilty to racketeering conspiracy, conspiring to distribute crack cocaine, illegally possessing a firearm, and selling crack cocaine near schools. Harris and Sumpter also face potential life sentences and mandatory minimum sentences of 13 and 15 years, respectively.
In plea agreements filed in United States District Court, these defendants specifically admitted that:
Martinez and Harris were two of the gang’s supervisors, and Sumpter was a veteran “OG” member;
Martinez was a leader of the “Gremlin Riderz,” which served as the gang’s “hit squad” and whose members bore tattoos from the 1984 movie “Gremlins”;
Martinez conspired with other BGC members to murder a fellow gang member who had provided law enforcement information regarding a 2012 BGC gang shooting that killed an unarmed teenager with no gang affiliation and wounded three others, including a 10-year-old girl;
Martinez directed the group assault of another BGC member who had also provided information to law enforcement regarding a BGC murder (that fellow gang member was also later murdered in a case that remains under investigation);
Martinez “direct[ed] the killing of rivals” and discussed the stabbing of a man by a BGC member in front of the victim’s baby because the man was in BGC territory without permission;
Harris presided over large gang meetings in which he called for enhancing the operations of the gang and increasing punishments for those who violated gang rules; and
Martinez and Sumpter were two of the gang’s “central drug suppliers.”
In addition to the admissions, all three defendants agreed to be banned from living in the BGC territory after they are released from prison and to be subject to expansive search conditions.
Martinez and Harris are scheduled to be sentenced by Judge Otero on December 19. Sumpter is scheduled to be sentenced on November 7.
“These defendants have now pled guilty to orchestrating a campaign of violence and drug trafficking, bringing danger to the local community and to schools,” said United States Attorney Eileen M. Decker. “In addition to committing many acts of violence, this gang preyed upon the marginalized residents of Skid Row with illegal drug sales. Cases like this one targeting the leadership and membership of criminal street gangs show my office’s dedication to ridding neighborhoods of gang activity through partnerships with federal and local law enforcement agencies.”
Seventy-one of the defendants named in the indictment have now appeared in federal court to face charges in the indictment (the final defendant is in state custody), which include conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), violent crimes in aid of racketeering, a series of robberies that targeted bank customers, weapons offenses, and various drug trafficking charges. Six other top defendants in the case are scheduled to go on trial January 3.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The investigation into BGC was conducted by agents and officers with the Federal Bureau of Investigation and the Los Angeles Police Department. Considerable assistance was provided during this investigation by the California Department of Corrections and Rehabilitation, the Torrance Police Department, the Buena Park Police Department, the El Segundo Police Department, the San Bernardino Police Department and the Los Angeles City Attorney’s Office.
Operation Gremlin Riderz is a result of a partnership between the FBI and the Los Angeles Police Department under the auspices of the FBI’s Task Force on Violent Crime in the City of Los Angeles. This task force is one of dozens of such partnerships throughout the United States, known as Safe Streets Task Forces, funded for the purpose of assisting local police in identifying and addressing violent crime in America.
This case is being prosecuted by Assistant United States Attorney Mack Jenkins of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Max Shiner and Wilson Park of the Violent and Organized Crime Section.
Three Convicted of Carjacking a Vehicle Sold on CraigslistRead the Press Release
Montgomery, Alabama – Stanley Jawan Hinton, age 24, Jacinto Taron Robinson, age 26, and Tawanda Aeiah Sears, age 40, all residents of Columbus, Georgia, were convicted of carjacking, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. Hinton and Robinson were also convicted of brandishing a firearm during the crime.
According to evidence produced at trial, in late August 2014 the victim of the carjacking purchased a vehicle from Hinton that was advertised on Craigslist. After buying the car, the victim discovered that there were problems with the title and the rims on the car were rentals. The victim demanded his money back.
On the evening of September 4, 2014, Hinton, Robinson, Sears and an unidentified male met the victim at the Circle K gas station in Opelika, Alabama. The victim was going to return the car and the defendants promised to refund the money.
After arriving at the gas station, the unidentified male got into the purchased car, pointed a pistol at the victim and forced the victim out of the car. The gunman and Robinson then drove away in the victim’s vehicle, and Sears and Hinton drove off in a separate car. The victim ran inside the gas station convenience store and called 911.
During the investigation, Opelika and Columbus, Georgia police and the FBI investigators were able to identify the suspects and learned that the Craigslist advertisement had been posted by Hinton under a false name.
All three defendants are set for sentencing this fall. Hinton and Robinson face a potential sentence of up to 15 years for their carjacking convictions, plus a consecutive, mandatory minimum sentence of 7 years for the brandishing a firearm conviction. Sears faces a sentence of up to 15 years in federal prison for her carjacking conviction.
“These days, you must be careful when buying from or selling to a stranger,” stated U.S. Attorney Beck. “Sadly, everyone cannot be trusted, please be cautious when dealing with people you do not know. However, those that take advantage of these trusting people must be prosecuted, those that use guns to steal must be prosecuted, and we will ask the court to give these criminals a sentence that is commiserate with their threats and/or violence.”
“When transacting business via Craigslist or other similar internet sites, use your common sense,” stated Robert Lasky, FBI Special Agent in Charge, Mobile Field Division. “Consider arranging the actual purchase or exchange of goods at your local police station or in other well-lit, highly visible areas during daylight hours.”
“The Opelika Police Department is most appreciative of the prosecution of this matter by the United States Attorney’s Office,” stated Opelika Police Chief John McEachern. “We are grateful for the working relationship with the U.S. Attorney’s Office and the Safe Streets Task Force and would like to thank the Columbus, Georgia Police Department for their assistance in this case.”
This case was investigated by the Federal Bureau of Investigation (FBI) and the Opelika Police Department, with assistance from the Columbus, Georgia Police Department.
The case was prosecuted by Assistant United States Attorneys John Geer and Brandon Bates.
Texas Men Sentenced for Credit Card FraudRead the Press Release
United States Attorney Deboraha R. Gilg announced that Miguel Alfonso-Rodriguez, 37 years old, Jose Terra-Izquierdo, 22 years old, and Jasiel Gonzalez-Rodriguez, 21 years old, all originally from Cuba and now living in Amarillo, Texas, were each sentenced to 12 months and 1 day imprisonment on September 8, 2016, by the Honorable Senior United States District Court Judge Richard G. Kopf, in Lincoln, each having previously pled guilty to using counterfeit credit cards to obtain gift cards and merchandise from Walmart stores in Lincoln in July and August 2015. Additionally, they were ordered to pay restitution totaling $15,798.71, and they will each be on supervised release for three years following their release from prison.
All three were apprehended at a Lincoln Walmart store on August 6, 2015, while attempting to use counterfeit credit cards to obtain Walmart gift cards. They were found in possession of numerous cards and a device capable of re-encoding credit cards was found in their car. The investigation found that on July 23-25, 2015, Terra-Izquierdo and Alfonso-Rodriguez used 67 re-encoded cards on 134 occasions and obtained $7,859.35 in Walmart gift cards and merchandise. They returned to Lincoln August 5-6, 2015, with Gonzalez-Rodriguez, and used 184 re-encoded cards on 290 occasions and obtained $21,099.44 in Walmart gift cards and merchandise. Walmart was able to reverse some of the charges, resulting in the lower restitution amount.
The case was investigated by the Lincoln Police Department and the Federal Bureau of Investigation.
Texas Man Acquitted of Involuntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Worth, Texas, man was acquitted of Involuntary Manslaughter as a result of a federal jury trial in Pierre, South Dakota, on September 8, 2016.
Daniel York, age 29, was indicted by a federal grand jury on July 14, 2015.
The charge related to the alleged accident on July 12, 2015, when an adult male was killed in a car crash in Indian country.
The investigation was conducted by the Federal Bureau of Investigation, the Rosebud Sioux Tribe Law Enforcement Services, and the Mellette County Sheriff’s Office. The U.S. Attorney's Office prosecuted the case.
Tax Preparer Pleads Guilty to Tax Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE, R.I. – A Cranston, Rhode Island, resident pleaded guilty yesterday to aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft, announced U.S. Attorney Peter F. Neronha and Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Belkis M. Guzman, 48, a tax return preparer who worked at El Centro Multiservicios LLC in Providence admitted to preparing false individual income tax returns for clients for tax years 2009 through 2011, which included false dependents, exemptions, tax credits, deductions or expenses. She also admitted to depositing more than 100 fraudulently obtained U.S. Treasury checks totaling more than $800,700 into her personal bank account, which were generated by the filing of false tax returns prepared by others. Guzman distributed a portion of these ill-gotten proceeds to others and received a percentage of the negotiated checks as payment for depositing the checks into her account.
U.S. District Judge William E. Smith scheduled sentencing for Dec. 2. Guzman faces a statutory maximum sentence of 20 years in prison for the wire fraud count, 10 years in prison for each count of theft of government funds, three years in prison for each count of assisting in the preparation of false tax returns for clients and a mandatory two years in prison for each count of aggravated identity theft, as well as a period of supervised release and monetary penalties.
U.S. Attorney Neronha and Principal Deputy Assistant Attorney General Ciraolo commended the hard work of special agents of Internal Revenue Service’s Criminal Investigation who conducted the investigation, and Assistant U.S. Attorney Richard W. Rose and Tax Division Trial Attorney Christopher O’Donnell, who are prosecuting this case.
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Tattnall County Man Indicted for Setting Massive Fire That Destroyed Building in Heart of Downtown GlennvilleRead the Press Release
SAVANNAH, GA: Jonathan Shane Culbreth, 20, was charged with arson yesterday by a federal grand jury sitting in Savannah, Georgia. According to the Indictment, Culbreth maliciously damaged and destroyed a building at 102-118 West Barnard Street in Glennville by starting a fire on June 5, 2016. The fire blazed through several downtown businesses and required the efforts of nearly a dozen different agencies to suppress over the course of several hours.
If convicted of arson, Culbreth will face a mandatory minimum sentence of five years in prison, a maximum of 20 years of imprisonment, a $250,000 fine, mandatory restitution, and three years of supervised release. Culbreth is currently being held without bond at the Tattnall County Jail. His initial appearance in federal court has not yet been scheduled.
United States Attorney Edward J. Tarver emphasized that the Indictment against Culbreth is only an accusation and is not evidence of guilt. Culbreth is entitled to a fair trial, during which it will be the Government’s burden to prove his guilt of the charge in the Indictment beyond a reasonable doubt.
The fire was investigated by the ATF, the Georgia State Fire Marshal’s Office, the Tattnall County Fire Department, the Glennville Police Department, the Tattnall County Sheriff’s Office, the Georgia Bureau of Investigation, and the Long County Sheriff’s Office. Assistant United States Attorney Theodore S. Hertzberg is prosecuting the case on behalf of the United States. Any questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Syracuse Man Pleads Guilty to Bank Robbery ChargesRead the Press Release
SYRACUSE, NEW YORK – James Chisholm, 26, of Syracuse, New York, pled guilty yesterday to two counts of bank robbery.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Chisholm admitted that on March 12, 2016, and again on March 16, 2016, he entered the Chase Bank branch at 801 James Street in Syracuse, New York, where he passed a note to a teller demanding money, which he received. Chisholm admitted that on March 12, 2016 he took approximately $489 from the bank, and on March 16, 2016, he took approximately $2,753.
On each count of conviction, Chisholm faces up to twenty (20) years in prison, a fine of up to $250,000, and a three (3) year term of supervised release after imprisonment. Sentencing is scheduled for January 9, 2017 before Senior U.S. District Judge Norman A. Mordue. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
Sulphur Springs Restaurant Owner Guilty of Child Exploitation ViolationsRead the Press Release
PLANO, Texas — A 53-year-old Sulphur Springs, Texas man has been found guilty of child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Fernando Sosa-Pintor was found guilty by a jury of two counts of distributing and one count of possessing child pornography. The verdict was reached on Sep. 8, 2016 following a three-day trial before U.S. District Judge Marcia A. Crone.
According to the indictment, detectives from the Garland Police Department and the Longview Police Department conducted undercover investigations into peer-to-peer file sharing networks in August 2014. Detectives testified at trial that they downloaded videos of child pornography from an IP address that was traced back to Tradicion Mexicana, a restaurant owned by Sosa-Pintor in Sulphur Springs. Members of the Hopkins County Sheriff’s Office executed a search warrant at Tradicion Mexicana on Sep. 23, 2014, at which time they recovered a desktop computer that contained other child pornography videos. Officers testified at trial that Sosa-Pintor spoke with them and admitted to using the peer-to-peer file sharing program to obtain child pornography. During the trial, prosecutors introduced evidence from the undercover operations, Sosa-Pintor’s interview with law enforcement, and the contents of his desktop computer.
Under federal statutes, Sosa-Pintor faces up to 20 years in federal prison on each charge. This is the maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted 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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Hopkins County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.
Statement of the United States Attorney for the Central District of California after the release of the Critical Incident Review of the San Bernardino Public Safety Response to the December, 2015 Terrorist Shooting IncidentRead the Press Release
LOS ANGELES – Today United States Attorney for the Central District of California Eileen M. Decker issued the following statement regarding the Critical Incident Review of the San Bernardino Public Safety Response to the Terrorist Shooting on December 2, 2015:
“This report highlights the extraordinary bravery of all of the first responders who put their lives on the line in the midst of a terrorist rampage. The report also underscores the horror and suffering of the many victims during this calculated and vicious attack. These victims had no chance to protect themselves as a result of the callous perpetration of violence, while others heroically sacrificed themselves in an attempt to stop the shooting. In the face of this unfathomable suffering, the law enforcement personnel and citizens who put themselves in harm’s way to help others exemplifies the very best that our country has to offer. This report records the lessons learned from the tragic events of December 2, 2015, and also stands as a testament to the bravery and skills of our first responders.”
South Florida Man Sentenced for Manufacturing and Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Ralph Darel Lipsey (28, Miramar) to 30 months in federal prison for manufacturing and passing counterfeit Federal Reserve notes. As part of the sentence, the Court ordered Lipsey to pay restitution to the various businesses he defrauded. The Court also ordered Lipsey to forfeit the monetary proceeds he obtained by passing the notes, as well as the computer media he used to manufacture them.
According to court documents, in January 2015, Lipsey and his co-defendants, Marcos Rogelio Blake and Leon White, passed or attempted to pass counterfeit Federal Reserve notes at multiple businesses in Nassau County. Law enforcement officers subsequently issued an alert for the three men. On January 17, 2015, a deputy from the Nassau County Sheriff’s Office stopped a vehicle with the three men inside. Blake, who was driving the vehicle, was detained due to a suspended license. During a search, the deputy found genuine and counterfeit bills on Blake. An inventory search of the vehicle yielded $1,600 in additional counterfeit notes and a lock box. The lock box contained computer media and supplies used to manufacture counterfeit bills.
Marcos Rogelio Blake (25, New York) and Leon White (30, Orlando) previously pleaded guilty for their roles in this case. Blake was sentenced to 18 months in federal prison and White was sentenced to time served, followed by three years of probation.
This case was investigated by the Nassau County Sheriff’s Office and the United States Secret Service, Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
South Carolina Man Pleads Guilty to Using Fake Facebook Profiles to Meet and Then Attempt to Coerce Six Colorado Girls into Taking and Sending Him Explicit PhotographsRead the Press Release
DENVER – Christopher George White, age 37, of McCormick, South Carolina, pled guilty yesterday before U.S. District Court Judge R. Brooke Jackson to six counts of coercion and enticement of a minor, Acting U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David Thompson announced. White, who is in custody, is scheduled to be sentenced by Judge Jackson on December 14, 2016. White’s crimes included using social media, text, and telephone calls to meet, entice, and then threaten minors into taking off clothing or committing sex acts for his own personal pleasure.
According to the stipulated facts contained in the plea agreement, between June 30, 2014 and August 4, 2014 White, targeted child victims ranging from 13 to 14 years of age by using Facebook profiles “Kent Noelle” and “Glenn Black.” White claimed to be a teenage boy while he was truly a 35-year-old man and previously convicted sex offender. He used those profiles and the telephone number 864-602-1614 to correspond with minor girls, including the six minor girls from Colorado. After first befriending them online, and then texting and even talking with the minors by phone, the defendant then began to use harassment, threats of physical harm, and threats to post sexually-explicit photographs of the children or their friends on social media, coercing and attempting to coerce minors to produce and send him child pornography of themselves.
White faces not less than 10 years, and up to life in federal prison, as well as up to a $250,000 fine for each of the six counts of coercion and enticement of a minor. He will also be required to register as a sex offender once released from prison.
It is possible that there are more minor victims of White. If you believe you or your child has been victimized by White via Facebook profiles of “Kent Noelle” and “Glenn Black” please call HSI toll free at 866-347-2423.
This case was investigated by HSI and the Larimer County Sheriff’s Office.
White is being prosecuted by Assistant U.S. Attorneys David Tonini and Gregory Holloway.
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 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.justice.gov/psc.
Six Individuals Face 47-Count Second Superseding Indictment for Health Care Services FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a Federal Grand Jury has returned a 46-count superseding indictment against six individuals charging approximately $13,655,094 in Medicare fraud.
Specifically, HENRY EVANS, age 71; MICHAEL JONES, age 47; PAULA JONES, age 45; SHELTON BARNES, age 62; GREGORY MOLDEN, age 60, all of New Orleans and JONATHON NORA, age 29, of River Ridge, were indicted yesterday for conspiracy to commit health care fraud, conspiracy to defraud the United States and to receive and pay health care kickbacks, and health care fraud. BARNES was also charged with obstruction of a federal audit.
The Indictment is the third one involving many of the same parties who were originally indicted in March of 2015. Nineteen individuals and/or companies have already pled guilty to charges associated with the original Indictment.
This Second Superseding Indictment is related to the Indictment returned in March 2015 charging Lisa Crinel and others, some of whom have entered guilty pleas. According to the Second Superseding Indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare for medically unnecessary home health services for patients who were not homebound. DRS. BARNES, EVANS, MOLDEN and MICHAEL JONES, known as “House Doctors,” ordered home health services for Medicare beneficiaries who had no legitimate medical necessity. The House Doctors falsely signed home health orders regardless of the beneficiary’s needs, homebound status, or diagnoses. In return, DRS. BARNES, EVANS, and MOLDEN received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of receiving monthly payments from the home health agency, Abide hired PAULA JONES, DR. MICHAEL JONES’ wife and, thereafter, inflated salary payments to PAULA JONES represented MICHAEL JONES’ fees for fraudulently certifying home health for ineligible Medicare beneficiaries.
Marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an Abide House Doctor, well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.
Abide generated plans of care reflecting the falsely created assessments. The plans of care were given to DRS. BARNES, EVANS, MOLDEN and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. PAULA JONES fraudulently billed Medicare, on behalf of Abide, for the medically unnecessary home health services.
The Superseding Indictment also charges SHELTON BARNES with obstruction of a federal audit in connection with his billing to Medicare Part B of services related to the medically unnecessary home health services.
If convicted, DR. SHELTON BARNES faces a possible maximum sentence of 170 years imprisonment; DR. HENRY EVANS faces a possible maximum sentence of 95 years imprisonment; DR. GREGORY MOLDEN faces a possible maximum sentence of 115 years imprisonment; and DR. MICHAEL JONES faces a possible maximum sentence of 125 years imprisonment. If convicted, JONATHAN NORA faces a possible maximum sentence of 25 years imprisonment and PAULA JONES faces a possible maximum sentence of 15 years imprisonment. For each count for which any defendant is convicted, they are subject to a maximum $250,000 fine.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Hayden Brockett, Maria Carboni, and Sharan Lieberman are in charge of the prosecution.
Sioux Falls Man Indicted for Attempted Enticement of a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Attempted Transfer of Obscene Material to a Minor and Attempted Enticement of a Minor Using the Internet.
Kevin Dolejsi, age 30, was indicted on September 7, 2016. He appeared before U.S. Magistrate Veronica L. Duffy on September 8, 2016, and pled not guilty to the Indictment.
The penalty upon conviction is a minimum term of 10 years in custody or a lifetime maximum, and/or a $250,000 fine, 5 years of supervised release, and $5,000 to the Federal Crime Victims Fund. Restitution may also be ordered.
The events leading to the charge occurred between August 9 and August 17, 2016, in Sioux Falls.
The charge is merely an accusation and Dolejsi is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Dolejsi was released on conditions pending trial. A trial date has not been set.
Serial Fraudster Pleads Guilty to Investment Advisor Fraud and Money LaunderingRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of RANDY MILAND, 62, for operating a Ponzi scheme through which he stole or attempted to steal more than $500,000 from purported investors. MILAND pleaded guilty today before United States District Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn.
“Randy Miland is a serial scam artist who has had a long career of defrauding his victims with false claims that he would use their money for legitimate investments,” said Minnesota Commerce Commissioner Mike Rothman. “He may once have worked as a chiropractor, but his real profession has been operating Ponzi schemes to steal people’s money. The Commerce Fraud Bureau worked with federal authorities to stop Miland’s criminal activities and prevent even more Minnesotans from being ripped off by him.”
“Today's guilty plea of Randy Miland demonstrates how law enforcement cooperatively works together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain,” said Special Agent in Charge Shea Jones of St. Paul Field Office IRS Criminal Investigation. “IRS Special Agents will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”
“Despite two prior convictions, Randy Miland continued to steal from friends and acquaintances through lies and misrepresentations,” said Assistant United States Attorney Joseph H. Thompson. “The Minnesota Department of Commerce and Criminal Investigation Division of the IRS worked together to investigate this case and put an end to Miland’s fraudulent conduct.”
According to the defendant’s guilty plea, between 2010 and 2014, MILAND fraudulently solicited approximately $575,000 from investors, telling them that he would use their money to invest in futures and other legitimate investments. Instead, he used their money to pay personal expenses, including court-ordered restitution to victims of his prior scams, and to make Ponzi-type payments to other purported investors.
MILAND concealed from the new victims that he had been twice convicted of fraudulent conduct, that he was forbidden by the Minnesota Department of Commerce from offering or selling securities, and that he still owed more than $1.5 million in restitution to victims of prior schemes.
MILAND was convicted in 1999 in state court of theft by swindle and ordered to pay more than $1.5 million in restitution to the victims of his scheme. As of May 2016, MILAND still owed to the victims nearly the entire amount.
MILAND was convicted in 2006 in federal court of fraud and ordered to pay more than $250,000 in restitution to the victims. As of May 2016, MILAND owed approximately $124,000 in restitution.
The case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Commerce Fraud Bureau.
Defendant Information:RANDY MILAND, 62
White Bear Lake, Minn.Convicted:
• Mail fraud, 1 count
• Money laundering, 1 countSacramento Man Sentenced to over 12 Years in Prison for Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Michael Bailey, 61, of Sacramento, to 12 years and seven months in prison for receipt of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2014 and July 2014, law enforcement officers conducting an undercover investigation into online child pornography being shared over peer-to-peer networks located an internet user in Sacramento making child pornography available for download. When officers executed a search warrant at Bailey’s home, they found a computer containing numerous images and videos depicting the sexual exploitation of children and making those files available to others over the internet. On May 20, 2016, Bailey pleaded guilty and has been in custody since his arrest on July 22, 2014.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Internet Crimes Against Children Task Force (ICAC), a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rutgers Organics Corporation Agrees to $18.75 Million Cleanup and $500,000 Restoration of Injured Natural Resources at Nease Superfund Site in OhioRead the Press Release
The Department of Justice, U.S. Environmental Protection Agency (EPA), U.S. Department of Interior and the state of Ohio announced today that Rutgers Organics Corporation (Rutgers) has agreed to complete the cleanup of the Nease Chemical Superfund Site (site) near Salem, Ohio, estimated to cost $18.75 million. The agreement is memorialized in a consent decree lodged in federal court today in Youngstown, Ohio. Under the consent decree, Rutgers also agrees to restore injured natural resources at the site and nearby areas, at a cost of approximately $500,000. Further, Rutgers will reimburse federal and state agencies their past response and assessment costs of about $1 million.
“Today’s consent decree is a significant milestone in our efforts to make the environment cleaner and safer for the citizens of Salem and to protect and restore our valuable natural resources in that region” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “I want to thank our state partners, as well as recognize the cooperation of defendant Rutgers, for joining us on a path forward to clean up the contaminated Nease Site while preserving undeveloped land and protecting local drinking water sources.”
“This agreement will undo the damage done in the past while preserving creeks and the watershed for future generations,” said U.S. Attorney Carole S. Rendon for the Northern District of Ohio.
“This settlement will protect human health and the environment in northeast Ohio by reducing the risk of exposure to potentially harmful chemicals,” said U.S. EPA Acting Regional Administrator Robert Kaplan. “EPA looks forward to working with our federal and state partners to clean up the site and restore the Little Beaver Creek watershed.”
“The U.S. Fish and Wildlife Service is looking forward to continuing the cleanup and restoration of injured natural resources at the Nease Chemical Site,” said Service Deputy Midwest Regional Director Charlie Wooley. “This settlement enables the Service and other trustees to work together to restore lost resources and protect valuable habitat in the Little Beaver Creek watershed.”
In a complaint filed today simultaneously with the lodging of the consent decree, the federal and state agencies allege that, between 1961 and 1973, portions of the site were owned and operated by a chemical manufacturing plant known as the Nease Chemical Company (Nease Chemical). Nease Chemical produced specialty products including pesticides such as Mirex, a probable human carcinogen no longer produced in the United States. Hazardous substances derived from these specialty products were detected in the soil, ground water, sediments and flood plains/wetlands in the area, as well as in the fish in the nearby main surface water body, the Middle Fork Little Beaver Creek. Rutgers acquired the assets of Nease Chemical, which ceased operations in 1973. Since 1988, Rutgers has cooperated with EPA to investigate and clean up the site.
Under the consent decree, Rutgers will complete EPA’s Operable Unit 2 remedy at the site by, among other things, capping soil and treating the ponds and ground water. Rutgers will also complete EPA’s Operable Unit 3 remedy at the site, by, among other things, removing contaminated sediment and floodplain soil and replacing with clean material. The total cleanup, including long term operations and maintenance, is estimated to cost $18.75 million.
The contamination released from the chemical plant over time has injured natural resources in and around the site, including the underlying groundwater aquifers which have become unusable as a source of potable water. As part of the settlement, Rutgers will remove a low-head dam, known as the Lisbon Dam on the Middle Fork Little Beaver Creek and restore adjacent streamside habitat. Those projects, estimated to cost up to $150,000, are expected to help establish a free-flowing stream with a healthy and diverse fish population.
Rutgers will also fund a $366,000 trust to conserve a variety of lands in the Little Beaver Creek watershed, especially lands that are subject to pressures from new development in the area, to help provide valuable habitat. The trust will also seek to conserve property to protect local drinking water source areas from further contamination.
Further, Rutgers will reimburse the federal and state agencies for their past response and assessment costs, totaling approximately $1 million and agrees to fund all future oversight and assessment costs.
“This settlement will help protect the environment and Ohio families,” said Ohio Attorney General Mike DeWine. “It requires the cleanup of a long-contaminated site and the restoration and preservation of natural resources.”
“About 280-acres of habitat were contaminated by hazardous substances injuring surface and ground waters at the former Nease Chemical site,” said Ohio EPA Director Craig W. Butler. “Healthy streams and waterways are critical to Ohio’s citizens and our economy. This consent decree is a welcome step forward after many years of work to bring the area stream habitats back to healthy, functioning waterways and protecting drinking water resources into the future.“
Today’s settlement, lodged with the U.S. District Court for the Northern District of Ohio, is subject to a 30-day public comment period following notification in the Federal Register and final approval by the court. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information about the Nease Site: https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0504619]
Rutgers Organics Corp. agrees to $18 million cleanup and $500,000 restoration of injured natual resources at Nease Superfund site near SalemRead the Press Release
The Department of Justice, U.S. Environmental Protection Agency (EPA), U.S. Department of Interior and the state of Ohio announced today that Rutgers Organics Corporation (Rutgers) has agreed to complete the cleanup of the Nease Chemical Superfund Site (site) near Salem, Ohio, estimated to cost $18.75 million. The agreement is memorialized in a consent decree lodged in federal court today in Youngstown, Ohio. Under the consent decree, Rutgers also agrees to restore injured natural resources at the site and nearby areas, at a cost of approximately $500,000. Further, Rutgers will reimburse federal and state agencies their past response and assessment costs of about $1 million.
“Today’s consent decree is a significant milestone in our efforts to make the environment cleaner and safer for the citizens of Salem and to protect and restore our valuable natural resources in that region” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “I want to thank our state partners, as well as recognize the cooperation of defendant Rutgers, for joining us on a path forward to clean up the contaminated Nease Site while preserving undeveloped land and protecting local drinking water sources.”
"This agreement will undo the damage done in the past while preserving creeks and the watershed for future generations," U.S. Attorney Carole S. Rendon said.
“This settlement will protect human health and the environment in northeast Ohio by reducing the risk of exposure to potentially harmful chemicals,” U.S. EPA Acting Regional Administrator Robert Kaplan said. “EPA looks forward to working with our federal and state partners to clean up the site and restore the Little Beaver Creek watershed.”
“The US Fish and Wildlife Service is looking forward to continuing the cleanup and restoration of injured natural resources at the Nease Chemical Site,” said Service Deputy Midwest Regional Director Charlie Wooley. “This settlement enables the Service and other trustees to work together to restore lost resources and protect valuable habitat in the Little Beaver Creek watershed.”
In a complaint filed today simultaneously with the lodging of the consent decree, the federal and state agencies allege that, between 1961 and 1973, portions of the site were owned and operated by a chemical manufacturing plant known as the Nease Chemical Company (Nease Chemical). Nease Chemical produced specialty products including pesticides such as Mirex, a probable human carcinogen no longer produced in the United States. Hazardous substances derived from these specialty products were detected in the soil, ground water, sediments and flood plains/wetlands in the area, as well as in the fish in the nearby main surface water body, the Middle Fork Little Beaver Creek. Rutgers acquired the assets of Nease Chemical, which ceased operations in 1973. Since 1988, Rutgers has cooperated with EPA to investigate and clean up the site.
Under the consent decree, Rutgers will complete EPA’s Operable Unit 2 remedy at the site by, among other things, capping soil and treating the ponds and ground water. Rutgers will also complete EPA’s Operable Unit 3 remedy at the Site, by, among other things, removing contaminated sediment and floodplain soil and replacing with clean material. The total cleanup, including long term operations and maintenance, is estimated to cost $18.75 million.
The contamination released from the chemical plant over time has injured natural resources in and around the site, including the underlying groundwater aquifers which have become unusable as a source of potable water. As part of the settlement, Rutgers will remove a low-head dam, known as the Lisbon Dam on the Middle Fork Little Beaver Creek, and restore adjacent streamside habitat. Those projects, estimated to cost up to $150,000, are expected to help establish a free-flowing stream with a healthy and diverse fish population.
Rutgers will also fund a $366,000 trust to conserve a variety of lands in the Little Beaver Creek watershed, especially lands that are subject to pressures from new development in the area, to help provide valuable habitat. The trust will also seek to conserve property to protect local drinking water source areas from further contamination.
Further, Rutgers will reimburse the federal and state agencies for their past response and assessment costs, totaling approximately $1 million, and agrees to fund all future oversight and assessment costs.
“This settlement will help protect the environment and Ohio families,” Ohio Attorney General Mike DeWine said. “It requires the cleanup of a long-contaminated site and the restoration and preservation of natural resources.”
“About 280-acres of habitat were contaminated by hazardous substances injuring surface and ground waters at the former Nease Chemical site,” according to Ohio EPA Director Craig W. Butler. “Healthy streams and waterways are critical to Ohio’s citizens and our economy. This consent decree is a welcome step forward after many years of work to bring the area stream habitats back to healthy, functioning waterways and protecting drinking water resources into the future.“
Today’s settlement, lodged with the U.S. District Court for the Northern District of Ohio, is subject to a 30-day public comment period following notification in the Federal Register and final approval by the court. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information about the Nease Site: https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0504619]
Romanian Man Indicted in Capital Region ATM Skimming ConspiracyRead the Press Release
ALBANY, NEW YORK – Ilie Sitariu, age 36, a Romanian national, was indicted yesterday for conspiring to steal account information and personal identification numbers (PINs) by using skimming devices that he secretly installed on bank ATMs in the Capital Region and the Berkshires.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Sitariu was arrested in October 2015 on a criminal complaint and has been in custody since then.
According to the indictment, from August 30, 2015 through October 24, 2015, Sitariu and a co-conspirator used skimming devices and pinhole cameras to secretly capture the account numbers and PINs of customers who used ATMs at First Niagara Bank, Trustco Bank, and Berkshire Bank branches in Chatham, New York, Delmar, New York, and Great Barrington, Massachusetts, respectively. The skimming devices captured the information encoded on the magnetic strips of customers’ bank debit cards, while the pinhole cameras allowed Sitariu and a co-conspirator to record the PINs used by the customers. Sitariu and a co-conspirator then used the information to steal money from the customers’ accounts by making withdrawals at ATMs in New York City.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Sitariu is accused of conspiring to commit bank fraud, access device fraud, and aggravated identity theft. If convicted on all charges, Sitariu faces at least 2 years and up to 30 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Rhode Island Tax Return Preparer Pleads Guilty to Preparing Fraudulent Returns and Aggravated Identity TheftRead the Press Release
A Cranston, Rhode Island, resident pleaded guilty yesterday to aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Peter F. Neronha for the District of Rhode Island.
According to documents filed with the court, Belkis M. Guzman, 48, a tax return preparer who worked at El Centro Multiservicios LLC in Providence, Rhode Island, admitted to preparing false individual income tax returns for clients for tax years 2009 through 2011, which included false dependents, exemptions, tax credits, deductions or expenses. She also admitted to depositing more than 100 fraudulently obtained U.S. Treasury checks totaling more than $800,700 into her personal bank account, which were generated by the filing of false tax returns prepared by others. Guzman distributed a portion of these ill-gotten proceeds to others and received a percentage of the negotiated checks as payment for depositing the checks into her account.
U.S. District Judge William E. Smith for the District of Rhode Island scheduled sentencing for Dec. 2. Guzman faces a statutory maximum sentence of 20 years in prison for the wire fraud count, 10 years in prison for each count of theft of government funds, three years in prison for each count of assisting in the preparation of false tax returns for clients and a mandatory two years in prison for each count of aggravated identity theft, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Neronha commended the hard work of special agents of Internal Revenue Service’s Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Richard Rose and Tax Division Trial Attorney Christopher O’Donnell, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Rapid City Man Indicted for Illegal Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession and Sale of a Stolen Firearm.
Joseph Huddelston, age 43, was indicted on June 21, 2016. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 8, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is ten years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Huddelston illegally possessing a Glock 9mm pistol at Rapid City. The charge is merely an accusation and Huddleston is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Pennington County Sheriff’s Office, and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Huddleston was remanded to the custody of the U.S. Marshals Service pending trial.
Pasco County Men Charged in Cross BurningRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging William A. Dennis (55, Spring Hill) and Thomas Herris Sigler, III (45, Land O’ Lakes) with conspiracy to interfere with an interracial couple’s enjoyment of their constitutionally protected housing rights. Dennis is also charged with making false statements to federal law enforcement officers. If convicted on all counts, Dennis faces a maximum penalty of 15 years in federal prison, and Sigler faces a maximum penalty of 10 years in federal prison.
According to the indictment, in 2012, Dennis and Sigler were living on Seward Drive in Port Richey. After an interracial couple moved next door to the house where Sigler was residing, the men repeatedly made racial slurs and racially derogatory statements to the African-American neighbor, which escalated to verbal and physical threats.
On Halloween night, Dennis and Sigler attended a party at a neighbor’s house, where the they and several other Seward Drive residents conspired to burn a cross in the African-American man’s yard to intimidate him. The conspirators constructed a wooden cross and obtained a flammable liquid to pour on the cross. They then carried the cross to the victims’ front yard, leaned it against the victims’ mailbox, and lit the cross on fire.
“Hate-motivated crimes will not be tolerated in our community,” said U.S. Attorney Bentley. “This case underscores our commitment to prosecute those who commit crimes driven by hatred or intolerance.”
An indictment 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 Josephine W. Thomas and Simon A. Gaugush, with assistance from the Department of Justice’s Civil Rights Division.
Owner of Major Online Colored Contact Lens Business Pleads Guilty in Largest-Ever Investigation of Counterfeit and Misbranded Contact Lenses in the United StatesRead the Press Release
The owner and operator of Candy Color Lenses, a major online retailer of colored contact lenses in the United States, pleaded guilty yesterday to running an international operation importing counterfeit and misbranded contact lenses from suppliers in Asia and then selling them over the internet without a prescription to tens of thousands of customers around the country.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Director George M. Karavetsos of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations made the announcement.
Dmitriy V. Melnik, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan of the District of Nevada to one count of conspiracy to traffic in counterfeit goods and to introduce into interstate commerce misbranded devices.
According to the plea agreement, Melnik imported large quantities of colored contact lenses from the People’s Republic of China and South Korea that he knew were counterfeit and/or unauthorized by the FDA for sale in the United States. Many of these contact lenses bore labels with counterfeit trademarks for Ciba Vision FreshLook COLORBLENDS, which are manufactured by Novartis International AG, and others had labels of brands of contact lenses produced and sold in Asia, he admitted.
As noted in the plea agreement, all contact lenses are medical devices that must receive FDA authorization to enter the United States and be further distributed. Melnik sold “authentic” contact lenses to tens of thousands of customers around the United States without a prescription, adequate directions for use and adequate warnings. After purchasing the contact lenses, many customers complained directly to Melnik about the quality of the contact lenses and questioned Melnik about whether the contact lenses were genuine and FDA approved, according to the plea agreement. Melnik admitted that some of the contact lenses he sold were tested and found to be contaminated with potentially hazardous bacteria.
As stated in the plea agreement, a substantial part of the fraudulent scheme was committed from outside the United States, and Melnik received at least $1.2 million in gross revenue from this illegal enterprise, including approximately $200,000 alone from the sale of counterfeit Ciba Vision FreshLook COLORBLENDS.
Anyone with information about individuals committing intellectual property offenses can report those crimes to the National Intellectual Property Rights Coordination Center by going to http://www.iprcenter.gov/referral or calling (866) IPR-2060.
The prosecution is the result of an ongoing multiagency effort to combat counterfeit, illegally imported and unapproved contact lenses called Operation Double Vision. The FDA’s Office of Criminal Investigations led the investigation, with significant support from the U.S. Postal Inspection Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Daniel J. Cowhig of the District of Nevada are prosecuting the case.
The indictment is related to the many efforts being undertaken by the department’s Task Force on Intellectual Property, which supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state and local law enforcement partners and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
Northern Kentucky Woman Arraigned on Charges of Communicating a Threat and Making False Statements to Law EnforcementRead the Press Release
COVINGTON, Ky. — On September 8, 2016, the FBI arrested Marie A. Castelli, 55, of Maysville, Kentucky, pursuant to a federal indictment and arrest warrant. The indictment alleges that Castelli knowingly transmitted communications intended to be a threat to injure the person of another in violation of 18 U.S.C. §§ 875(c) and (2). The indictment further alleges that Castelli willfully and knowingly made materially false statements to the FBI in violation of 18 U.S.C. § 1001(a)(2). Today, September 9, 2016, Castelli appeared before a federal judge for an arraignment. The court ordered Castelli detained pending any further orders of the court.
There is no current threat to public safety related to this arrest, and it is not related to the upcoming anniversary of the terrorist attacks of September 11, 2001. The FBI and its federal, state, and local partners remain vigilant in keeping the public from harm.
An indictment is an allegation only. All defendants are presumed innocent and are entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
North Tonawanda Man Pleads Guity to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Abimael Mercado, 35, of North Tonawanda, NY, pleaded guilty to unlawfully possessing a firearm as a convicted felon before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that on May 11, 2016, law enforcement officers executed a search warrant at Mercado’s home found a shotgun and eleven shells in his bedroom. The defendant has a prior federal felony conviction involving distribution of a controlled substance and was prohibited from possession of firearms and ammunition.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction Special Agent in Charge Charlie J. Patterson, the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, and the Erie County Sheriff’s Office, under the direction of Timothy Howard.
Sentencing is scheduled for December 2, 2016, at 1:30 p.m. before Chief Judge Geraci.
New York Pharmacist Sentenced to 43 Months for Medicare and Tax FraudRead the Press Release
Earlier today, Andrew Barrett, a New York pharmacist who operated pharmacies in Bronx, Queens, and Rockland counties, was sentenced to 43 months’ imprisonment to be followed by three years of supervised release. As part of the sentence, he was ordered to forfeit $2.7 million in criminal proceeds, pay $2.7 million in restitution to Medicare and Medicaid, and pay $736,000 in restitution to the Internal Revenue Service.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York. Mr. Capers expressed his grateful appreciation to the agencies that led the government’s investigation: the Federal Bureau of Investigation, New York Field Office; the Department of Health and Human Services, Office of the Inspector General, New York Office (HHS-OIG); and the Internal Revenue Service, Criminal Investigation, New York (IRS-CI). Mr. Capers also thanked the New York Office of the Medicaid Inspector General (OMIG) for its cooperation and assistance in the case.
On May 25, 2016, Barrett pleaded guilty to committing a health care fraud scheme and filing false tax returns. From January 2011 to December 2012, he fraudulently billed Medicare and Medicaid approximately $2.7 million for prescription medications that he never dispensed to patients. Barrett used some of these proceeds to buy pharmaceutical products for his pharmacies. He also falsely claimed over $2 million in personal expenses as business expenses on his tax returns. Through this scheme, he caused a tax loss of $736,192.80.
The sentencing proceeding was held before United States District Judge Kiyo A. Matsumoto.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys William P. Campos and Erin E. Argo are in charge of the prosecution, with assistance from Assistant United States Attorney Karin Orenstein of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
ANDREW BARRETT
Age: 57E.D.N.Y. Docket No. 15-CR-103