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Thursday 8 September 2016
Talisheek Man Charged with Methamphetamine Trafficking and Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAMES MOORE, JR., age 47, of Talisheek, Louisiana, was charged today in a five-count Indictment with possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 924(c)(1)(A), respectively.
According to previously filed court documents, beginning in January 2016, the Federal Bureau of Investigation (FBI) conducted numerous controlled purchases of methamphetamine from MOORE. Their investigation further revealed MOORE to be in possession of numerous firearms. On August 29, 2016, several search warrants were executed and MOORE was arrested by the FBI.
If convicted of Counts 1-3, Distribution of Methamphetamine, MOORE faces a maximum penalty of up to twenty years imprisonment, a $1,000,000 fine, and a five year term of supervised release.
If convicted of Count 4, Possession with Intent to Distribute Methamphetamine, MOORE faces a minimum of five years to forty years imprisonment, a $5,000,000 fine, and a five year term of supervised release.
If convicted of Count 5, Possession of a Firearm in furtherance of a Drug Trafficking Crime, MOORE faces a minimum of five years to life imprisonment (to be served consecutive to any other imposed terms of imprisonment), a $250,000 fine, and a three year term of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the FBI New Orleans Division JTTF for investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.
Suspected Gang Member Pleads Guilty 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 Darmetrius Braggs, 19, of Buffalo, NY, pleaded guilty before U.S. District Court Judge Frank P. Geraci to possession of a firearm in furtherance of drug trafficking activity. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that Buffalo Police Department officers received information that the defendant robbed an individual at gun point on October 30, 2015, on Blaine Avenue in Buffalo. During the investigation, officers learned that Braggs would be at a party on Freund Avenue in Buffalo on November 7, 2015.
On November 7, 2015, undercover officers contacted Braggs by cellular telephone and arranged an undercover purchase of marijuana. The defendant told the officers to meet him near Genesee Street and Freund Avenue in Buffalo to purchase the marijuana. As officers arrived at the location, Braggs fled on foot and entered 22 Freund Avenue, where officers located the defendant. Officers also found a cellular telephone and multiple vials of what appeared to be marijuana near the rear entrance of the residence. In addition, officers also recovered a loaded pistol in the back yard of 22 Freund Avenue.
The pistol recovered by officers resembles a firearm the defendant posed with multiple times on social media websites.
The plea is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for December 2, 2016, before Judge Geraci.
Suquamish Tribal Couple Sentenced to Prison for Repeated Physical Abuse of their ChildrenRead the Press Release
A member of the Suquamish Tribe and his wife were sentenced to prison today in U.S. District Court in Tacoma for the repeated physical abuse of two of their six children, announced U.S. Attorney Annette L. Hayes. GARNET L. MABE, 32, of Suquamish, Washington was sentenced to 30 months in prison and three years of supervised release. MELISSA F. MABE, 35, was sentenced to one year in prison and three years of supervised release. Six children have been removed from their care and Suquamish Tribal authorities are working to terminate their parental rights. At sentencing U.S. District Judge Ronald B. Leighton said, “this is a tragic situation. To see two parents who turn on their children and treat them in this fashion is inexplicable…. You robbed your children of their childhood and their trust.”
According to records filed in the case, Suquamish Tribal Child Welfare workers received a complaint reporting abuse of the MABE children in February 2015. Workers went to the home on the Suquamish Reservation and interviewed the children. The two oldest children, ages 8 and 7, had multiple bruises and reported being hit, choked and kicked by their parents. All of the children were removed from the home, and were taken to Seattle Children’s Hospital for further evaluation. The investigation revealed that the children had been choked to the point of passing out; had been poked and cut with knives; had been kicked in the stomach; had been beaten with drumsticks, a back scratcher and metal ladle; and had been punished by being denied food.
The couple was charged federally in May 2015 and was indicted by the grand jury in June 2015. In February 2016 each pleaded guilty to two counts of Assault of a Child Resulting in Substantial Bodily Injury.
The Suquamish Tribal Police, the Suquamish Tribal Child Welfare Department and the FBI investigated the case. The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Rebecca Cohen. The case was prosecuted federally as part of the U.S. Attorney’s Office mission to combat crimes of violence in Tribal communities.
South Jersey Man Sentenced to 15 Months in Prison for Hiring Illegal Immigrants, Failing to Collect Payroll TaxesRead the Press Release
CAMDEN, N.J. - A Sicklerville, New Jersey, man was sentenced today to 15 months in prison for his role in a conspiracy to evade payroll taxes on cash wages paid to illegal immigrants employed at his dry cleaning business, U.S. Attorney Paul J. Fishman announced.
Phillip Hui, 38, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to obstruct and impede the IRS relating to the failure to collect, account for and pay payroll taxes and one count of harboring illegal aliens. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Hui and Kathy Lei, 36, of Williamstown, New Jersey, owned New Eastern Cleaners in Voorhees Township, New Jersey. Lei, along with two other individuals, owned a house on South Main Street in Williamstown.
Hui knew he was required to verify that all of his employees were eligible to work in the United States, either as U.S. citizens or immigrants who had work authorization from Immigration and Customs Enforcement. However, at various times in 2012 and 2013, Hui and Lei hired foreign nationals B generally from Mexico or Guatemala B who did not have legal status in the United States. While working at New Eastern Cleaners, the undocumented immigrants lived in the South Main Street house.
At various times, Hui or Lei paid the undocumented immigrants in cash. They were required to work six days a week, approximately 10 hours a day and paid between $400 and $500 dollars per week. Their rent was part of the employment compensation. Hui also admitted that he would transport them or arrange their transportation between the South Main Street house and New Eastern Cleaners.
Hui admitted that when Lei filed Employer's Quarterly Federal Tax Return, Form 941, for all tax quarters in 2012 and the first three quarters in 2013, she only reported wages paid to legal employees of New Eastern Cleaners. She failed to report the wages and pay employment taxes for at least 13 undocumented immigrant employees in 2012 and at least 14 undocumented immigrant employees in 2013.
By filing the false tax forms in 2012 and 2013, Lei and Hui failed to pay the IRS employment taxes of at least $97,104 for the undocumented immigrant employees.
In addition to the prison term, Judge Kugler sentenced Hui to three years of supervised release and ordered him to pay restitution of $98,864. On May 2, 2016, Lei pleaded guilty to the same charges and is scheduled to be sentenced Oct. 14, 2016.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea. He also thanked ICE’s Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, for its assistance in this investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel:
Hui: Jeffrey Zucker Esq., Camden,
Lei: Michael Engle Esq., Philadelphia
Six Florida Drug Enterprise Members Convicted for Roles in Racketeering and Drug Conspiracies, Several Murders and Related OffensesRead the Press Release
After 12 weeks of trial, six defendants have been convicted for their roles in wide-ranging racketeering and drug distribution conspiracies that involved seven murders, firearms offenses and related criminal conduct.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida and Special Agent in Charge Daryl McCrary of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Tampa, Florida, made the announcement.
Nathaniel Harris, 25, aka Popo; Napoleon Harris, 32, aka Pole; Charlie Green, 29, aka Mr. 30N32; Jerry Green, 30, aka Jerk; Corey Harris, 26, aka James; and Deonte Martin, 31, aka Tang, all of Bradenton and St. Petersburg, Florida, were each convicted today of one count of drug distribution conspiracy. Nathaniel Harris, Napoleon Harris, Charlie Green, Jerry Green and Martin were each convicted of one count of racketeering conspiracy. In addition, Nathaniel Harris was convicted of two counts of murder and one count each of attempted murder, armed kidnapping, maintaining a house used for drug distribution, use of a firearm in furtherance of maintaining a drug house, possession with intent to distribute cocaine base and cocaine, use of a firearm in furtherance of drug crimes, felon in possession of ammunition and felon in possession of firearms and ammunition; Charlie Green was convicted of three counts of murder; Jerry Green was convicted of two counts of murder; Napoleon Harris was convicted of one count of murder and one count of felon in possession of ammunition; and Martin was convicted of one count each of murder, possession with intent to distribute cocaine base, possessing a firearm in furtherance of drug trafficking and felon in possession of a firearm. Corey Harris pleaded guilty during trial to three counts of distribution of crack cocaine.
According to evidence presented at trial, the defendants were members of a racketeering enterprise that controlled illicit drug distribution and committed murders for hire in and around Bradenton, a small community in Manatee County, Florida. From about 2006 through 2014, evidence showed that the defendants were responsible for murdering seven individuals who had crossed members of the enterprise in some fashion or whom members had been hired to murder. One of the murder victims was gunned down at a community center in front of hundreds of children and their parents. Evidence presented at trial also demonstrated that the racketeering enterprise attempted to murder an eighth individual who survived but is now paralyzed and confined to a wheelchair.
Evidence presented at trial showed that the defendants’ enterprise maintained a number of so-called “trap houses” that were used to distribute cocaine, cocaine base, MDMA, oxycodone and marijuana, and used extreme violence to collect drug debts and enforce its control of the drug trafficking in its territory. The enterprise also used threats of violence to prevent members of the community from testifying against enterprise members.
Twelve enterprise members and co-conspirators previously pleaded guilty to drug trafficking, firearms and other offenses in connection with this case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office of the Middle District of Florida investigated the case, with assistance from other federal and state and local law enforcement agencies. Assistant U.S. Attorneys Christopher Murray, Natalie Adams and Walter “Terry” Furr of the Middle District of Florida, and Trial Attorney Marty Woelfle of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Six Florida Drug Enterprise Members Convicted for Roles in Racketeering and Drug Conspiracies, Several Murders and Related OffensesRead the Press Release
Tampa, FL – After 12 weeks of trial, six defendants have been convicted for their roles in wide-ranging racketeering and drug distribution conspiracies that involved seven murders, firearms offenses and related criminal conduct.
U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Daryl McCrary of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Tampa, Florida, made the announcement.
Nathaniel Harris, 25, aka Popo; Napoleon Harris, 32, aka Pole; Charlie Green, 29, aka Mr. 30N32; Jerry Green, 30, aka Jerk; Corey Harris, 26, aka James; and Deonte Martin, 31, aka Tang, all of Bradenton and St. Petersburg, Florida, were each convicted today of one count of drug distribution conspiracy. Nathaniel Harris, Napoleon Harris, Charlie Green, Jerry Green and Martin were each convicted of one count of racketeering conspiracy. In addition, Nathaniel Harris was convicted of two counts of murder and one count each of attempted murder, armed kidnapping, maintaining a house used for drug distribution, use of a firearm in furtherance of maintaining a drug house, possession with intent to distribute cocaine base and cocaine, use of a firearm in furtherance of drug crimes, felon in possession of ammunition and felon in possession of firearms and ammunition; Charlie Green was convicted of three counts of murder; Jerry Green was convicted of two counts of murder; Napoleon Harris was convicted of one count of murder and one count of felon in possession of ammunition; and Martin was convicted of one count each of murder, possession with intent to distribute cocaine base, possessing a firearm in furtherance of drug trafficking and felon in possession of a firearm. Corey Harris pleaded guilty during trial to three counts of distribution of crack cocaine.
According to evidence presented at trial, the defendants were members of a racketeering enterprise that controlled illicit drug distribution and committed murders for hire in and around Bradenton, a small community in Manatee County, Florida. From about 2006 through 2014, evidence showed that the defendants were responsible for murdering seven individuals who had crossed members of the enterprise in some fashion or whom members had been hired to murder. One of the murder victims was gunned down at a community center in front of hundreds of children and their parents. Evidence presented at trial also demonstrated that the racketeering enterprise attempted to murder an eighth individual who survived but is now paralyzed and confined to a wheelchair.
“Today, first and foremost, our thoughts are with the families of the victims murdered by these defendants. We are thankful that they have finally received the justice they deserve. These six individuals were part of a ruthless criminal enterprise that, for too long, preyed on the community by committing seven murders and countless other acts of violence. These men engaged in an escalating gang war, culminating with the public execution of Brenton Coleman during the first day of pee wee football in Bradenton,” stated U.S. Attorney Bentley. “We are grateful for the many community members who bravely came forward and testified, despite a systematic effort at witness intimidation. Today’s verdicts demonstrate the Department of Justice’s commitment to combating gang violence and drug trafficking. Working in partnership with federal, state, and local law enforcement, we will continue to prosecute gang members and work to make our neighborhoods safer.”
Evidence presented at trial showed that the defendants’ enterprise maintained a number of so-called “trap houses” that were used to distribute cocaine, cocaine base, MDMA, oxycodone and marijuana, and used extreme violence to collect drug debts and enforce its control of the drug trafficking in its territory. The enterprise also used threats of violence to prevent members of the community from testifying against enterprise members.
Twelve enterprise members and co-conspirators previously pleaded guilty to drug trafficking, firearms and other offenses in connection with this case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office of the Middle District of Florida investigated the case, with assistance from other federal and state and local law enforcement agencies. Assistant U.S. Attorneys Christopher Murray, Natalie Adams and Walter “Terry” Furr of the Middle District of Florida, and Trial Attorney Marty Woelfle of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Sentencings for September 6 - September 7, 2016Read the Press Release
Jaime Nieto, 53, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 7, 2016, for tax evasion and misuse of a social security number. He received 21 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and $143,243.73 in restitution for unpaid taxes and interest.
In June, a jury convicted Mr. Nieto. The evidence at trial showed that the Mr. Nieto filed income tax returns for tax years 2007-2011 which reported taxes due. Mr. Nieto made some tax payments but never paid all of his income taxes for any of these tax years. When the Internal Revenue Service attempted to collect the unpaid income taxes, Jaime Nieto unlawfully concealed assets available to pay the tax debt by opening and maintaining bank accounts using a social security number which did not belong to him and by using his business checking account, which the IRS could not levy to collect his personal tax debt, for all of his personal expenses. The case was investigated by Internal Revenue Service, Criminal Investigations.
Ginger Eva Ephrim, 20, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 6, 2016, for conspiracy to transport stolen property through interstate commerce. Ephrim was arrested in Phoenix, Arizona. She received 12 months and 1 day imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and $21,012.00 in restitution. This case was investigated by the Federal Bureau of Investigation.
Timothy Mulford, 31, and Maria Tillman, 27, both from Lander, Wyoming, were sentenced on September 6, 2016, by Federal District Court Judge Scott W. Skavdahl for theft of personal property and aiding and abetting. Mulford and Tillman were arrested in Missoula, Montana. Both received three years of supervised release and were ordered to pay a $100.00 special assessment each and to pay, joint and several, restitution to Hines General Store in the amount of $9,050.00. The case was investigated by the Bureau of Indian Affairs.
Luke Jackson Tilghman, 33, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 6, 2016, for possession with intent to distribute marijuana. Tilghman was arrested in Riverton, Wyoming. He received 60 months imprisonment, with the first six months to be served concurrently with his undischarged sentence in a state criminal action. The remaining 54 months shall be served consecutively to his state sentence. In addition, Tilghman was ordered to pay a $100.00 special assessment, $2,000.00 in restitution, and will be placed on four years of supervised release upon completing his sentence. This case was investigated by the Wyoming Division of Criminal Investigation.
Stacey Irene Rodgers, 38, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 6, 2016, for wrongful conversion of social security income. During the months of June 2014 through March 2015, the Social Security Administration (SSA) sent regular monthly payments Ms. Rodgers despite the fact that her son was then living with his father. Ms. Rodgers failed to report this change of circumstances to the SSA and knowingly converted those monies to her own use. Rodgers received three years of supervised release and was ordered to pay a $100.00 special assessment and $13,083.00 in restitution. This case was investigated by the Social Security Administration.
Senior Member of Drug Trafficking Organization Indicted for Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A federal grand jury returned an indictment today against a senior member of a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Robert Britt, 44, a/k/a “True,” of Asbury Park, New Jersey, is charged in a one-count indictment with conspiracy to distribute one hundred grams or more of heroin.
According to documents filed in this case:
Between July 2010 and March 2014, Britt conspired with others to distribute heroin in Ocean and Monmouth counties. In furtherance of the conspiracy, Britt used various hotel rooms and apartments to store, process, and package heroin for distribution to others. Britt and others also used numerous cellular telephones and coded language to discuss drug transactions, including requests for specific types and quantities of narcotics.
In April 2013, prior to beginning a term of incarceration, Britt transferred the day-to-day operations and certain heroin customers to Rufus Young, 43, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock,” of Asbury Park.
Even while in prison, Britt maintained a hands-on role in the heroin distribution business. Britt spoke with Young using a concealed contraband cell phone that Britt maintained in violation of prison rules and regulations. During those conversations, Britt instructed Young on how to operate their drug business, including methods for developing new heroin customers, avoiding detection by law enforcement, and identifying new suppliers.
Between March and May 2014, 21 other members of the drug trafficking organization, all of whom have since been convicted, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO” after its two leading members.
On May 25, 2016, a federal jury convicted Thomas Shannon, a major supplier of narcotics to the Britt-Young DTO, of various offenses relating to the conspiracy.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark and Assistant U.S. Attorney J. Brendan Day of the Criminal Division in Trenton.
Defense Counsel: Alyssa A. Cimino, Esq., Fairfield, New Jersey
Selby Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Selby, South Dakota, woman convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on August 29, 2016, by U.S. District Judge Roberto A. Lange.
Amanda Iron Wing, age 28, was sentenced to 21 months in custody, followed by 2 years of supervised release, $1,669.46 in restitution, and a special assessment of $100 to the Federal Crime Victims Fund.
Iron Wing was indicted by a federal grand jury on August 11, 2015. She pled guilty on June 8, 2016.
The conviction stems from a June 6, 2015, incident when a vehicle Iron Wing was driving was reported stolen. Iron Wing led law enforcement on a high-speed chase that lasted approximately 30 minutes. During the pursuit, Iron Wing was throwing alcoholic beverage containers out of the vehicle. A law enforcement officer pulled up alongside the pickup and told Iron Wing she needed to stop, but she replied that she didn’t want to. Twice during the pursuit, law enforcement officers had to take evasive action to avoid a collision with Iron Wing’s vehicle. Finally, Iron Wing backed into an approach and stopped. When a patrol car was less than 10 feet from the pickup, Iron Wing accelerated rapidly, rammed the left front corner of the patrol car, and continued west towards Highway 63. An officer set up road spike strips on Route 2 just before Highway 63, and Iron Wing drove over them and stopped. When the officers approached Iron Wing’s vehicle, she locked the doors and refused to open them. An officer broke a window to gain access and placed Iron Wing in wrist restraints. Iron Wing was cursing and swearing at the officers, and she was intoxicated, blowing a .248 on the PBT. One of the officers received a cut on his right forearm during this process.
This case was investigated by the Federal Bureau of Investigation, the Dewey County Sheriff’s Office, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Iron Wing was immediately turned over to the custody of the U.S. Marshals Service.
School Owner and Ceo Indicted in Connection with Federal Financial Aid SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against ALDEN HALL, age 57, of Baton Rouge, Louisiana. The Indictment charges HALL with four counts of theft of government funds, in violation of Title 18, United States Code, Section 641, one count of fraudulently obtaining financial assistance funds, in violation of Title 18, United States Code, Section 1097(a), one count of engaging in monetary transactions in property derived from specified unlawful activity, in violation of Title 18, United States Code, Section 1957, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The Indictment also includes a forfeiture allegation related to proceeds of the offenses.
The Indictment alleges that HALL, the owner and Chief Executive Officer of Alden’s School of Cosmetology and Alden’s School of Barbering in Baker, Louisiana, engaged in a scheme to steal Title IV funds, specifically, Pell Grant funds, from the Department of Education (“DOED”). As part of the alleged scheme, the Indictment alleges that HALL caused misrepresentations to be submitted to the DOED, including that certain students were enrolled in Pell Grant-approved programs of instruction when HALL knew that they were actually in programs of instruction which did not qualify for Pell Grants. The Indictment further alleges that HALL concealed from enrolling students that certain programs offered by her schools did not qualify for Pell Grants, and that HALL caused false and forged documents to be submitted as part of certain students’ financial aid packages for the purpose of qualifying students for Pell Grants. During a Program Review by the DOED, the Indictment further alleges that HALL concealed her school’s barbering program, which did not qualify for Pell Grants, by moving barbering students from a barbering classroom into a cosmetology classroom, giving barbering students badges that identified them as cosmetology students, and instructing her barbering instructors to not appear at the school during the DOED Program Review.
The Indictment also alleges that HALL caused misrepresentations to the DOED about the number of hours that certain students had attended class and further that certain individuals were students at the school when, in fact, such individuals had never attended class. The financial aid scheme, as alleged in the Indictment, resulted in HALL and her businesses fraudulently receiving over $100,000 in federal funds.
The Indictment further alleges that in the course of the scheme, HALL transferred criminally derived property of a value greater than $10,000 by causing a transfer of $50,000 from a bank account to a check issued to herself on or about December 21, 2011.
Finally, the Indictment alleges that during and in relation to the scheme, HALL used the social security number of another person to steal and embezzle Pell Grant funds in or about June of 2012.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Department of Education – Office of the Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
San Jose Resident Sentenced to 33 Months in Prison for Conspiracy and Wire FraudRead the Press Release
SAN JOSE- Skylar Ariel Phoenix was sentenced to 33 months’ imprisonment and ordered to pay over $1.69 million in restitution for wire fraud and conspiracy to commit wire fraud, announced United States Attorney Brian J. Stretch and FBI Special Agent in Charge John F. Bennett. The sentence, handed down yesterday by the Honorable Lucy H. Koh, U.S. District Judge, follows a guilty plea entered March 15, 2016.
According to the guilty plea, Phoenix, 52, of San Jose, admitted she was an employee in the marketing department of an insurance company from approximately June 2003 until September 2011. While she was employed as a manager of the company, Phoenix arranged to have the company billed for work that was not authorized. Specifically, Phoenix conspired to hire her spouse as an independent contractor under her sole supervision in clear violation of internal policies and procedures. Further, she took steps to conceal the familial relationship by using an alias for her spouse and by using another family member’s home as her spouse’s address. Phoenix’s former employer identified 13 checks between September 21, 2004, and April 28, 2006, totaling $97,652,00 for work that was never provided. In addition, between June 2007 and March 2011, Phoenix created four requisition forms to provide further supposed employment for her spouse. The requisition forms generated additional billings to her then-employer of $382,562.50 and no work was completed in exchange for the money.
In addition, Phoenix admitted as part of her plea agreement that she engaged in a second, separate scheme to defraud the insurance company by placing marketing business with a friend’s company as an outside vendor in exchange for a total of $357,452 in kickbacks over several years. Phoenix acknowledged she knew the receipt of the kickbacks was a direct violation of her employer’s ethics policy.
A federal grand jury indicted Phoenix on June 18, 2014, for two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; multiple counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2; and two counts of making false statements to a government agent, in violation of 18 U.S.C. § 1001. Pursuant to her plea agreement, Phoenix pleaded guilty to one count of conspiracy and one count of wire fraud covering each of the two separate schemes.
In addition to the prison term and restitution, Judge Koh sentenced Phoenix to a three-year term of supervised release. Judge Koh ordered Phoenix to surrender on or before November 2, 2016 to begin serving her sentence.
Assistant U.S. Attorneys Amie Rooney and Maia Perez prosecuted the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Romanian National Sentenced for ATM Skimming FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIHAI ALEXANDRU DINU, age 41, of Romania, was sentenced today after previously pleading guilty to one count of bank fraud related to the use of ATM “skimming” devices.
U.S. District Judge Nannette Jolivette Brown sentenced DINU to 27 months imprisonment to be followed by two years of supervised release. Additionally, DINU was ordered to pay $118,608.38 in restitution. As an illegal alien, DINU is subject to immediate deportation after incarceration.
According to court records, in January 2015, the U.S. Secret Service and the Louisiana Financial Crimes Task Force began investigating the unauthorized collection of debit card numbers through the installation of “skimming devices” on various ATM machines and the subsequent illegal use of fake debit cards in the Eastern District of Louisiana. In March 2016, DINU and another man were captured on surveillance video using fake debit cards to withdraw funds from three local bank accounts. Subsequently, DINU admitted to investigators that he had illegally entered the United States and joined in with a group of individuals who used fake passports and fake driver’s licenses to travel within the United States for the purpose of making the illegal ATM withdrawals. DINU also participated in a similar ATM skimming conspiracy in Virginia prior to arriving in Louisiana.
U.S. Attorney Polite praised the work of the Agents from the United States Secret Service and the Louisiana Financial Crimes Task Force, along with the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Edward J. Rivera and Carter Guice were in charge of the prosecution.
Repeat Sex Offender Sentenced to 14 Years in Prison for Attempting to Entice Teen via Social MediaRead the Press Release
A repeat sex offender who has multiple convictions for failing to register with law enforcement was sentenced today in U.S. District Court in Seattle to 14 years in prison and lifetime supervised release for a new set of sex crimes involving children, announced U.S. Attorney Annette L. Hayes. PATRICK ALLEN SMITH, 46, pleaded guilty in May 2016 to attempted enticement of a minor and possession of child pornography. At sentencing U.S. District Judge Thomas S. Zilly indicated a lengthy sentence is necessary to protect the public saying “these charges are very troubling to the court.”
According to records filed in the case, SMITH was the subject of two separate law enforcement investigations in the spring of 2015. The Pierce County Sheriff’s Office was investigating a complaint that SMITH had contacted a 14-year-old boy on Facebook and later by text, sending sexually explicit materials and attempting to arrange a meeting with the boy. Fortunately, the teen’s family learned of the contact and reported it to police. During that same time period, the Seattle Police Department’s Internet Crimes Against Children Task Force (ICAC) opened an investigation of SMITH concerning his receipt and distribution of child pornography. SMITH was arrested in October 2015 for failing to register as a sex offender, and ultimately more than 600 images of young children being raped and molested were found on his electronic devices.
SMITH is required to register as a sex offender following his conviction for child molestation in 1989 when he assaulted a child in a locker room at a YMCA. He was convicted in 1994 for breaking into a home in an attempt to molest a young child residing there. In 1995, 1997, 2005 and 2012, he was convicted of failing to register as a sex offender.
The case was investigated by the Pierce County Sheriff’s Office, the Seattle Police Department’s Internet Crimes against Children Task Force (ICAC) and the U.S. Secret Service. The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy prosecutor specially designated to prosecute child exploitation cases in federal court.
Reading Man Charged with Possession of Child PornographyRead the Press Release
James Walker, 28 of Reading, PA was charged today by Indictment with possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of twenty years imprisonment, a mandatory minimum of 10 years, a $250,000 fine, a mandatory minimum 5 years supervised release, a $100 special assessment, and a $5,000 special assessment. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Special Assistant United States Attorney Rosalynda M. Michetti.
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 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.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty
Rapid City Man Charged with Failure to Register as a Sex OffenderRead 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 Failure to Register as a Sex Offender.
Allen Good Shield, age 27, was indicted on August 23, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 2, 2016, and August 11, 2016, Good Shield, a person required to register under the Sex Offender Registration and Notification Act, failed to register and update his registration.
The charge is merely an accusation and Good Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Good Shield was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Porcupine Man Convicted of Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that Frank Gallardo, 39, of Porcupine, South Dakota, was found guilty of two counts of Abusive Sexual Contact at the conclusion of a three-day federal jury trial in Rapid City. The verdict was returned on August 31, 2016.
The maximum penalty is life imprisonment and/or a $250,000 fine, lifetime supervised release, a $100 special assessment to the Federal Crime Victims Fund, and restitution.
The conviction stems from Gallardo engaging in sexual contact with a female under the age of 12, near Porcupine.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
A presentence investigation was ordered and sentencing is scheduled for January 20, 2017. The defendant was remanded to the custody of the U.S. Marshals Service.
Pittsburgh Tax Attorney and Owner of Iceoplex Convicted of Employment Tax FraudRead the Press Release
Defendant convicted of failing to pay over more than $790,000 in payroll taxes
A Pittsburgh, Pennsylvania, man was convicted today by a federal jury in the U.S. District Court for the Western District of Pennsylvania of 16 counts of failing to collect, account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the evidence presented at trial, between 2004 and 2015, Steven Lynch, a tax attorney, co-owned and operated the Iceoplex at Southpointe, a recreational sports facility located in Washington County, Pennsylvania. The Iceoplex included a fitness center, ice rink, soccer court, restaurant and bar. Lynch controlled the finances for these businesses and was responsible for collecting income and employment taxes withheld from employee wages, accounting for these taxes and filing Forms 941, payroll tax returns, and paying these taxes over to the Internal Revenue Service (IRS). The jury found that between 2012 through 2015, Lynch failed to timely pay over to the IRS more than $790,000 in taxes withheld from the wages of the employees for these businesses.
“Employers are entrusted with collecting the taxes withheld from their employees’ wages, and they have an absolute legal obligation to pay that money over to the IRS,” said Principal Deputy Assistant Attorney General Ciraolo. “The conviction of Steven Lynch serves as a strong reminder to all employers that failure to comply with employment tax obligations has significant consequences, including prosecution and incarceration. The department, together with its partners within the IRS, will continue to vigorously pursue those who violate our nation’s tax laws and threaten the integrity of our tax system.”
“The jury’s verdict is a clear signal that the criminal tax laws of our country are being enforced and upheld for the benefit of all citizens,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Those who attempt to skirt the law will be held accountable.”
Sentencing is scheduled for Jan. 11, 2017. Lynch faces a statutory maximum sentence of up to five years in prison for each count of willfully failing to collect, account for and pay over employment tax, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office in the Western District of Pennsylvania for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pittsburgh Tax Attorney and Owner of Iceoplex Convicted of Employment Tax FraudRead the Press Release
WASHINGTON – A Pittsburgh, Pennsylvania, man was convicted today by a federal jury in the U.S. District Court for the Western District of Pennsylvania of 16 counts of failing to collect, account for and pay over employment taxes, announced Principal Deputy Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the evidence presented at trial, between 2004 and 2015, Steven Lynch, a tax attorney, co-owned and operated the Iceoplex at Southpointe, a recreational sports facility located in Washington County, Pennsylvania. The Iceoplex included a fitness center, ice rink, soccer court, restaurant and bar. Lynch controlled the finances for these businesses and was responsible for collecting income and employment taxes withheld from employee wages, accounting for these taxes and filing Forms 941, payroll tax returns, and paying these taxes over to the Internal Revenue Service (IRS). The jury found that between 2012 through 2015, Lynch failed to timely pay over to the IRS more than $790,000 in taxes withheld from the wages of the employees for these businesses.
“Employers are entrusted with collecting the taxes withheld from their employees’ wages, and they have an absolute legal obligation to pay that money over to the IRS,” said Principal Deputy Assistant Attorney General Ciraolo. “The conviction of Steven Lynch serves as a strong reminder to all employers that failure to comply with employment tax obligations has significant consequences, including prosecution and incarceration. The department, together with its partners within the IRS, will continue to vigorously pursue those who violate our nation’s tax laws and threaten the integrity of our tax system.”
“The jury’s verdict is a clear signal that the criminal tax laws of our country are being enforced and upheld for the benefit of all citizens,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Those who attempt to skirt the law will be held accountable.”
Sentencing is scheduled for Jan. 11, 2017. Lynch faces a statutory maximum sentence of up to five years in prison for each count of willfully failing to collect, account for and pay over employment tax, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office in the Western District of Pennsylvania for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pennsylvania Man Sentenced to Two Years in Prison for Conspiring with Members of Organized Crime Family and Others in Fraud SchemeRead the Press Release
CAMDEN, N.J. – A West Reading, Pennsylvania, man was sentenced today to 24 months in prison for his role in a conspiracy to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by Lucchese organized crime family member Nicodemo S. Scarfo, U.S. Attorney Paul J. Fishman announced.
Cory Leshner, 33, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Leshner and 12 others – including Scarfo, a member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. Cory Leshner admitted that he joined the conspiracy in April 2007.
Leshner admitted that he assisted Scarfo and Pelullo in managing family trusts and limited liability companies on behalf of Scarfo and Pelullo as part of the scheme to defraud FPFG. Leshner said that Pelullo directed Leshner in the use of various bank accounts through which Pelullo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. The money included the proceeds of the fraud that Pelullo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Seven Hills Management, and codefendant William Maxwell, a Texas attorney who served as “special counsel” to FPFG as part of the scheme. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
Leshner also said that he was a law school student during the scheme. Leshner graduated from law school in 2010 and became an attorney in Pennsylvania in 2011. As part of his plea agreement, Leshner agreed to notify the Pennsylvania Supreme Court of his guilty plea and to accept any disciplinary action brought by disciplinary officials as a result of the guilty plea and sentence. Leshner also agreed to not seek the reinstatement of his license to practice law while serving any sentence of imprisonment imposed in the case.
Scarfo, Pelullo, and the Maxwells were convicted at trial on July 3, 2014, and sentenced to prison. Scarfo and Pelullo were sentenced to 30 years in prison. William Maxwell was sentenced to 20 years in prison and John Maxwell to 10 years in prison.
In addition to the prison term, Judge Kugler sentenced Leshner to three years of supervised release and ordered to pay restitution of $14.2 million.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Michael C. Mikulka, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of George P. Belsky in Newark. He also thanked the FBI under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorney Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
Overdose Investigation Leads to Heroin Distribution Charges against Bridgeport ManRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that JEVAUGHN WATSON, 23, of Bridgeport, was arrested yesterday on a criminal complaint charging him with possession with intent to distribute, and distribution of, heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According the complaint, on August 18, 2016, Trumbull Police and emergency medical personnel responded to a residence in Trumbull and found an unresponsive 25-year-old female on the floor of a bedroom. The victim was pronounced deceased shortly thereafter. Investigators searched the victim’s pocketbook and found several empty wax folds and some wax folds that contained suspected heroin. Analysis of text messages contained on the victim’s cellphone revealed that the victim had ordered heroin from WATSON several times over the course of approximately two months prior to the victim’s death.
WATSON appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
The charge of possession with intent to distribute, and distribution of, heroin, carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Tactical Diversion Squad and the Trumbull and Monroe Police Departments, with the assistance of the Bridgeport Police Department.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Organizer of Major Trafficking Network Sentenced to over 26 Years in Operation Third WorldRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the sentencing of Charles C. London, age 41, of Baton Rouge, Louisiana. Today, District Judge Shelly D. Dick sentenced Charles C. London to serve 322 months in prison. London was a leading member of a drug trafficking network operating in Baton Rouge and the surrounding areas. The defendant was prosecuted as part of Operation Third World, which resulted in a federal grand jury indictment against 39 individuals. To date, 33 defendants have either pled guilty or are in the process of pleading guilty and the remaining 4 defendants are set for trial in January 2017.
On January 6, 2016, London pled guilty to conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine, in violation of 21 U.S.C. § 846 and 18 U.S.C. § 2; distribution of MDMC and BZP, in violation of 21 U.S.C. § 841(a)(1); distribution of 28 grams or more of crack cocaine, in violation of 21 U.S.C. § 841(a)(1); conspiracy to distribute and to possess with the intent to distribute MDMA, in violation of 21 U.S.C. § 846 and 18 U.S.C. § 2; possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c); and unlawful use of a communications facility, in violation of 21 U.S.C. § 843(b).
According to the factual basis filed in LONDON’s plea agreement, beginning in early 2013, and continuing through September of 2013, LONDON conspired to distribute at least 21 kilograms of cocaine, 630 grams of crack cocaine and over 9,000 MDMA tablets. On September 5, 2013, the defendant possessed at his residence in Baton Rouge, LA, in excess of 8,500 BZP pills, over $123,000, a digital scale, a money counter and a loaded Glock .40 caliber pistol.
U.S. Attorney Green stated: “Today’s sentence sends a message to drug traffickers that the United States Attorney’s Office is committed to prosecuting drug traffickers to the full extent of the law with deserved consequences for polluting our streets and ruining the lives of our citizens with dangerous drugs.
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sherriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sherriff’s Office, the Livingston Parish Sherriff’s Office, the Gonzales Police Department, and the Baker Police Department. This matter is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter and Adam Ptashkin.
Obama Administration Releases Resources for Schools, Colleges to Ensure Appropriate Use of School Resource Officers and Campus PoliceRead the Press Release
The U.S. Departments of Justice and Education released today new tools to improve school climates, ensure safety, and support student achievement in our nation's schools.
To the extent a local decision is made to use school resource officers (SROs) in community schools, these resources will help state and local education and law enforcement agencies responsibly incorporate SROs in the learning environment. Additionally, the departments have highlighted tools available for law enforcement agencies that also apply to campus law enforcement agencies.
“With the release of these vital resources, the Obama Administration is furthering its commitment to ensuring that schools and SROs follow best practices, ensuring a positive and supportive classroom environment,” said Attorney General Loretta E. Lynch. “By fostering relationships of trust and respect between students and school resource officers, we can continue to build safer schools where our young people can learn and thrive – a vital effort that the Department of Justice will continue to advance with our partners at the federal, state, and local levels in the months to come.”
“As educators, we are all bound by a sacred trust to protect the well-being, safety, and extraordinary potential of the children, youth and the young adults within the communities we serve,” said U.S. Secretary of Education John B. King Jr. “School resource officers can be valuable assets in creating a positive school environment and keeping kids safe. But we must ensure that school discipline is being handled by trained educators, not by law enforcement officers. At the college level, the President's Task Force on 21st Century Policing has important recommendations that can help campus and local law enforcement both keep students safe and safeguard students' civil rights.”
To assist states, schools and their law enforcement partners in assessing the proper role of SROs and campus law enforcement professionals, both the Justice Department's Office of Community Oriented Policing Services and the Education Department released letters to states and districts emphasizing the importance of well-designed SRO programs and calling on leaders of institutions of higher education to commit to implementing recommendations from the President's Task Force on 21st Century Policing in the campus policing context.
To assist in the K-12 context, the departments also jointly released the Safe, School-based Enforcement through Collaboration, Understanding, and Respect (SECURe) Rubrics. These new resources can help education and law enforcement agencies that use SROs to review and, if necessary, revise SRO-related policies in alignment with common-sense action steps that can lead to improved school safety and better outcomes for students while safeguarding their civil rights.
Letters:
Campus letter from DOJ
P-12 letter from DOJ
Campus letter from Education
P-12 letter from Education
Rubrics:
State and local policy
Local implementation
The release of these materials builds on the Obama Administration's work with states and districts to improve discipline practices and climate in the nation's schools. The departments have worked collaboratively to recognize states and districts leading the way on these issues as well as to provide states and districts with effective alternatives to exclusionary discipline practices and continue to call upon a broad array of stakeholders to rethink approaches to school discipline in order to keep kids in school and out of the justice system. Highlights from the Administration's supportive school discipline efforts include:
Joint Federal Policy and Legal Guidance: Education and Justice jointly released a School Climate and Discipline Guidance Package in 2014 to provide schools with a roadmap to reduce the usage of exclusionary discipline practices and clarify schools' civil rights obligation to not discriminate on the basis of race, color or national origin in the administration of school discipline.
#RethinkDiscipline Convening and Public Awareness Campaign: Education and Justice launched Rethink Discipline at the White House in July of 2015, convening school district teams, including some law enforcement practitioners and justice officials from across the country and sparking a national dialogue around punitive school discipline policies and practices that exclude students from classroom instruction and targeted supports.
Rethink School Discipline: Resource Guide for Superintendent Action: As a part of Rethink Discipline, the Department of Education developed a resource guide with a set of potential action items to help school leaders implement safe, supportive school climate and discipline by engaging stakeholders, assessing the results and history of existing school climate and discipline systems and practices; implementing reform; and monitoring progress.
Support for State and Local Educational Leaders and Partners from Other Systems: In 2015, the Department of Justice launched the National Resource Center for School Justice Partnerships to advance school discipline reform efforts and serve as a dynamic resource hub for schools, law enforcement agencies, and others to support school discipline reform efforts at the local level.
Fostering Safe and Supportive Learning Environments: In 2016, the Department of Education released the ED School Climate Surveys and the Quick Guide on Making School Climate Improvements to help foster and sustain safe and more nurturing environments that are conducive to learning for all students.
Addressing Implicit Bias and Discipline Disparities in Early Childhood Settings: In 2016, the Departments of Education and Health and Human Services recently announced a new investment of $1 million in the Pyramid Equity Projectto establish national models for addressing issues of implicit bias, and uneven implementation of discipline, including expulsions and suspensions, in early learning programs.
Providing Guidance to Schools on Ensuring Equity and Providing Behavioral Supports to Students with Disabilities: In 2016, the Department of Education announced the release of a significant guidance document in the form of a Dear Colleague Letter, which emphasized the requirement that schools provide positive behavioral supports to students with disabilities who need them. It also clarified that the repeated use of disciplinary actions may suggest that many children with disabilities may not be receiving appropriate behavioral interventions and supports. Also included was a Summary for Stakeholders.
The new resources and letters released today build on the work of the My Brother's Keeper Initiative and the Council on Women and Girls, and respond to recommendations put forth by the President's Task Force on 21st Century Policing to support schools in developing more positive school climates and strengthening the relationship between law enforcement and the communities they serve. These efforts help districts, schools, and communities build credible and sustainable systems, structures, and partnerships that provide safe, supportive learning environments that uplift students and nurture them when they do well and when they need support to do better.
Nurses Plead Guilty to Separate Charges of Misprision of a Felony and Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CAREN BATTAGLIA, age 50, of New Orleans, pled guilty today to one count of misprision of a felony. SUPRENIA WASHINGTON, age 60, of New Orleans, also pled guilty to one count of health care fraud in.
On March 12, 2015, BATTAGLIA and WASHINGTON were indicted along with 19 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud.
WASHINGTON was a Registered Nurse and BATTAGLIA a Licensed Practical Nurse at Abide Home Care Services, a home health company operated by owner Lisa Crinel. BATTAGLIA’s and WASHINGTON’s guilty pleas involved their alleged care for Medicare beneficiaries, falsification of documents and failure to notify officials of the ongoing health care fraud at Abide.
WASHINGTON faces a maximum term of imprisonment of ten years, a $250,000 fine, and three years of supervised release following imprisonment. BATTAGLIA faces a maximum term of imprisonment of three years, a $250,000 fine, and one year of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for both defendants on February 8, 2017.
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.
Newton Woman Pleads Guilty to Concealing Gun Crime Prior to Hesston ShootingsRead the Press Release
WICHITA, KAN. – A Newton woman pleaded guilty Thursday to concealing from authorities that a convicted felon unlawfully possessed firearms that he later used in a shooting incident at Excel Industries, Acting U.S. Attorney Tom Beall said.
Sarah T. Hopkins, 28, Newton, Kan., pleaded guilty to failing to report to authorities that convicted felon Cedric Ford unlawfully possessed a firearm.
In her plea, Hopkins admitted that on Feb. 5, 2016, she redeemed an AK-47 rifle from a pawn shop in Newton and gave it to Ford. On Feb 25, 2016, investigators recovered the rifle and a handgun at Excel Industries in Newton where Ford shot three people to death before being killed in a shootout with police.
Sentencing is set for Nov. 28. Hopkins faces up to three years in federal prison and a fine up to $250,000. Beall commended the following agencies: The Hesston Police Department, the Harvey County Sheriff’s Department, the Newton Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation and the FBI, as well as Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney David Lind for their work on the case.
New York Man Pleads Guilty to Role in $1 Million Stolen Identity Refund SchemeRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted his role in a scheme to obtain stolen identity information and use it to file phony tax returns with the IRS, U.S. Attorney Paul J. Fishman announced.
Jhan Luis Mejia Marcelino, 27, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit theft of government funds, one count of theft of government funds, and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Mejia admitted that from January 2013 through May 2014, he and others obtained stolen personal identifying information, including names and Social Security numbers, of victims located in New Jersey, Puerto Rico, and elsewhere. Afterwards, Mejia and others used the information to file fraudulent federal tax returns. Mejia admitted that, once they received the refunds, they converted the checks to cash or other proceeds for their own benefit, causing losses of over $1 million to the U.S. Treasury.
The conspiracy offense is punishable by a maximum potential penalty of five years in prison. The theft of government funds count is punishable by a maximum potential penalty of 10 years in prison. Both counts are punishable by a $250,000 fine, or twice the gain or loss resulting from the offense. The aggravated identity fraud charge is punishable by a mandatory two-year sentence to be served consecutively to any other term imposed.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; and the U.S. Secret Service, under the direction of Special Agent in Charge Mark Mckevitt, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Criminal Division in Newark.
New York Man Arrested in Stamford Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUAN QUINONES, 43, of Port Chester, N.Y, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on September 24, 2015, Stamford Police executed a court-authorized search of a local hotel room where QUINONES was staying and found a loaded Glock .45 caliber pistol and distribution quantities of heroin and crack cocaine. QUINONES was arrested at that time.
QUINONES was previously convicted of felony drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Shea scheduled sentencing for December 6, 2016, at which time QUINONES faces a maximum term of imprisonment of 10 years.
The matter has been investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
New York City Man Sentenced to 25 Years for Running Massena Drug OperationRead the Press Release
PLATTSBURGH, NEW YORK – Patrick Lloyd, a.k.a. “Problem,” age 28, of New York City, was sentenced today to serve 25 years in prison for distributing crack cocaine, cocaine, and heroin in the Massena area, and for possessing guns while distributing drugs.
The announcement was made by U.S. Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
Lloyd is the last of 17 defendants to be prosecuted and sentenced as a result of a long-term investigation led by HSI, the Massena Police Department, the St. Lawrence County Sheriff’s Department and the New York State Police. The investigation targeted 2 organizations – the Lloyd organization and the Matthew Malu organization – from New York City that brought drugs and violence to the Massena area in 2012 and 2013.
Senior U.S. District Judge Gary L. Sharpe, who called Lloyd’s actions “drug terrorism,” also sentenced Lloyd to 10 years of post-imprisonment supervised release.
U.S. Attorney Richard S. Hartunian said: “Lloyd’s nickname is ‘Problem,’ but thanks to this investigation he will not be a problem for the North Country anymore. The success of this case is the result of great cooperation among federal, state, local, Canadian and tribal agencies, which came together to put a stop to 2 criminal organizations with roots in New York City that were intent on bringing drugs and violence to the Massena area. Lloyd’s sentencing marks the end of this particular investigation but not to our commitment to keeping this and other North Country communities safe.”
James C. Spero, Special Agent in Charge of the HSI Buffalo Field Office, said: “The lengthy prison term handed down today emphasizes that drug traffickers will not find a safe haven distributing heroin in the North Country. Criminals who attempt to operate in this region, no matter where they are based, will continue to be aggressively targeted by the coordinated effort of federal, state and local law enforcement.”
From 2012 through September 2013, Lloyd led a drug trafficking organization operating in Massena and New York City. Lloyd and a co-conspirator, Michael Spencer, possessed firearms while dealing drugs. Under Lloyd’s direction, his couriers transported bulk quantities of cocaine and heroin from New York City to Massena. Upon reaching Massena, the drugs were stored in stash houses rented by Lloyd but not in his own name. At the same time, another drug trafficking organization run by Matthew Malu operated in Massena. The Lloyd and Malu organizations became violent rivals.
On June 20, 2012, Lloyd and Spencer robbed and assaulted members of the Malu organization. They stole cocaine from the Malu organization and distributed it. On October 22, 2012, in retaliation for the June 20 assault, members of the Malu organization assaulted Lloyd, Spencer, and others at an apartment in Massena. Some members of the Lloyd organization were stabbed, beaten, shot and tied up.
On December 22, 2012, Lloyd and others arranged for Bernie Russo to transport 177 grams of cocaine, 118 grams of heroin, and two firearms for the organization. United States Border Patrol agents stopped Russo and seized the cocaine, heroin, and firearms.
On July 7, 2013, New York State Troopers found Lloyd co-conspirators Justin Brailsford and Jon Garcia in possession of approximately 1,160 packages of heroin and 175 grams of cocaine.
On September 5, 2013, law enforcement officers executed search warrants at various residences in the Massena area. At Spencer’s residence, agents seized a loaded 9 millimeter Taurus handgun; an Orion flare gun modified to shoot .22 caliber live rounds; a loaded .25 caliber Titan handgun; 30 grams of powder cocaine; 2 grams of crack cocaine; and a digital scale. Law enforcement seized 410 grams of cocaine, 2 grams of crack, and 228 grams of heroin related to the Lloyd organization. On September 5, 2013, law enforcement arrested the following defendants for their participation in the Lloyd organization, all of whom have now been sentenced as follows:
Defendant
Residence
Imprisonment
Supervised Release
Lloyd, Patrick
New York City
300 months
120 months
Spencer, Michael
New York City
180 months
60 months
Garcia, Jon
New York City
49 months
36 months
Brailsford, Justin
Massena
30 months
36 months
Huto, Zach
Massena
Time served (12 months)
36 months
Gardner, Ginelle
Massena
Time served (6 days)
36 months
Burke, Codi
Massena
60 months
48 months
Moore, Travis
New York City
120 months
60 months
Monaghan, Jessica
Massena
51 months
60 months
Moore, Leslie
Massena
Time served (89 days)
60 months
Berry, Catherine
Massena
Time served
(21 months, 28 days)48 months
Jandrew, Kimberly
Massena
18 months
60 months
Russo, Bernie
Massena
30 months
36 months
Law enforcement seized 200 grams of heroin, 27 grams of crack cocaine, and 29 grams of powder cocaine related to the Malu organization. Members of the Malu organization received the following sentences:
Defendant
Residence
Imprisonment
Supervised Release
Malu, Matthew
New York City
63 months
48 months
Rosario, Tremel
New York City
65 months
48 months
Hendricks, Ian
Massena
24 months
24 months
Perrin, Star
Massena
Time served (5 days)
36 months
Assisting in this investigation were the District Attorneys of Clinton, Franklin and St. Lawrence Counties, the Saint Regis Mohawk Tribal Police Department, United States Customs and Border Protection, the Drug Enforcement Administration, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police, and the United States Border Patrol.
This case was prosecuted by Assistant U.S. Attorneys Katherine Kopita, Cyrus P.W. Rieck, and Daniel C. Gardner, who now works in the District of Maryland.
Neiman Groce Imprisoned for Retirement Plan EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Neiman Groce, 31, of Poultney, was sentenced today in United States District Court in Burlington to 18 months of imprisonment following his guilty plea to a charge of wire fraud. Chief U.S. District Judge Christina Reiss also ordered that Groce serve three years of supervised release following completion of his prison term and pay restitution of nearly $75,000. The court directed Groce to surrender to the Bureau of Prisons on October 25 to begin serving his sentence.
On December 2, 2015, a federal grand jury in Rutland returned a three-count indictment charging Groce with embezzlement, wire fraud and forgery. According to the indictment, between approximately 2008 and late 2012, Groce was employed by Rutland Plywood Corporation. In 2012, Groce was promoted to Human Resources Director and assumed responsibility for administering the company's section 401(k) employee retirement plan. According to the indictment, between June and November 2012, Groce tried to embezzle approximately $88,000 from the retirement accounts of five former Rutland Plywood employees. Groce accomplished the embezzlement by forging employees' signatures on benefit plan withdrawal forms and faxing the forms to the company which managed the retirement plan. The forged forms contained directions that the money withdrawn from the employees' accounts be electronically transferred to one of two bank accounts that Groce controlled. During that time, more than $75,000 in retirement plan funds was actually transferred into Groce's accounts.
The indictment charged Groce with stealing an additional $3,000 from Rutland Plywood by forging and altering a series of company checks to third parties to make them payable to himself, then cashing those checks.
Groce pled guilty to the wire fraud charge last May.
This case was investigated by the Federal Bureau of Investigation and the Vermont State Police.
Groce is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Nashville Man Convicted of Robbing and Shooting Drug DealerRead the Press Release
Montrez E. Duncan a/k/a Money, 33, of Nashville, Tenn., was convicted yesterday by a federal jury, after a 6-day trial, of conspiracy to commit Hobbs Act Robbery, Robbery and carrying, brandishing and discharging a firearm during a crime of violence, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the proof at trial, Duncan and three other men obtained information which led them to believe that a known drug dealer would have a substantial amount of cocaine and cash, derived from prior drug sales, stashed in his home. On September 26, 2012, Duncan and the co-conspirators followed the individual to his home, where they surreptitiously entered the home, tied up the individual, and threatened to kill him while pointing a gun at the back of his head. The robbers then took a substantial quantity of cocaine and cash from the home. After the home invasion and robbery, Duncan and the others kidnapped the individual, forced him into a van, took his car and forced him to contact other people to obtain more cocaine and cash. Duncan and the others then waited and monitored the individual as he took delivery of more drugs and cash from those he was forced to call.
The trial proof showed that after Duncan and the others decided that the individual was of no further value to them, they drove to a field in a rural part of Davidson County. While Duncan attempted to stuff the bound individual into the trunk of his car, the others poured gasoline in the interior of the car in order to light the car and the individual on fire. The individual was able to break free and as he fled, was chased and shot by one of the assailants before he made it to a nearby house, where residents called police.
The evidence also showed that Duncan and the others planned to use the proceeds from this robbery to pay attorney fees for a potential serious state charge which Duncan feared was going to be filed against him and his girlfriend. Duncan provided $20,000 in cash from this robbery to his mother to use for attorney fees, and the co-conspirators then sold the cocaine taken in the robbery.
Duncan is scheduled to be sentenced on December 12, 2016, and faces up to life in prison.
Two of the defendants in this case, Victor Jones, 28, and Raymond Wilson, 26, both of Nashville, have pleaded guilty to charges as a result of this investigation and are awaiting sentencing. The fourth charged defendant, Javonte Fitzgerald a/k/a Pooh Man, 23, also of Nashville, is set for trial in December 2016. Fitzgerald is presumed innocent unless and until found guilty in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. The case is being prosecuted by Assistant United States Attorneys Philip H. Wehby and Sunny A.M. Koshy.
Mission Women Charged with Assault Resulting in Serious Bodily Injury and Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that three Mission, South Dakota, women have been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Child Abuse.
Verna Blue Thunder, age 41; Lorraina Lydia Stead, age 25; and Lydia Lorena Stead, age 21; were indicted on August 16, 2016. All three appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment. Lydia Lorena Stead made her initial appearance on August 24, 2016, Verna Blue Thunder on August 25, 2016, and Lorraina Lydia Stead on September 1, 2016.
Verna Blue Thunder faces a mandatory minimum of 10 years, up to life in custody on the charge of assault resulting in serious bodily injury to a child. All three women face up to 15 years in custody on the child abuse charges. Each charge may result in up to a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2016, and June 25, 2016, Verna Blue Thunder unlawfully assaulted a child who had not attained the age of 18 years, and that assault resulted in serious bodily injury to the child.
The Indictment also alleges that between October 29, 2014, and June 25, 2016, all three women abused two minor children, who had not attained the age of seven years, and aided and abetted in the offense.
The charges are merely accusations and the Defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Lydia Lorena Stead was released on bond. Verna Blue Thunder and Lorraina Lydia were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 1, 2016.
Milan Man Sentenced to One Year in Prison for Theft of Veterans BenefitsRead the Press Release
Rock Island, Ill. – Peter W. Cooper, 59, of Milan, Ill., was sentenced today for theft of funds from the Veterans Administration, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara L. Darrow ordered Cooper to serve one year in federal prison and to pay $178,789 in restitution to the Veterans Administration. Judge Darrow ordered that Cooper report to the designated federal Bureau of Prisons facility on Oct. 17, 2016, to begin serving his sentence.
On May 5, 2016, Cooper waived indictment and entered a plea of guilty to an information that charged him with one count of theft of veterans benefits. Cooper admitted that he continued to receive benefit payments that were paid to his adoptive mother after her death in 2003. At the time of her death, Cooper’s mother had been receiving payments from the VA under the Dependency and Indemnity Compensation (DIC) program, based on the previous active duty-connected death of her husband. DIC benefits are paid to surviving spouses until the spouse dies or remarries.
In 2014, by matching VA records with Social Security death records, the VA Office of Inspector General became aware that Cooper's mother had died in 2003 but the payments had continued and were then continuing. Payments were being deposited monthly in a bank account under the name of Cooper and his deceased mother. The VA OIG’s investigation revealed that Cooper, an employee of the Army Corps of Engineers at the Rock Island Arsenal, had been withdrawing the money monthly and spending it or transferring it to other accounts. Until the VA OIG discovered and stopped the payments, Cooper had received and spent $178,789 in DIC funds to which he was not entitled.
The case was prosecuted by Assistant U.S. Attorney Don Allegro and the charges were investigated by the VA Office of Inspector General.
Michigan Man Charged with Sexual Exploitation of Minor in Central IllinoisRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Springfield has returned an indictment that charges Damian N. Delacruz, 23, of Cadillac, Mich., with three counts of sexual exploitation of a minor and one count of enticement of a minor.
The indictment, returned Sept. 7, alleges that on three occasions, Feb. 25, 2016; Feb. 28, 2016, and Mar. 14, 2016, Delacruz used and coerced a minor in central Illinois to engage in sexually explicit conduct for the purpose of producing visual images of said conduct. The indictment further alleges that from Feb. 19 to Mar. 16, 2016, Delacruz used the internet and a cellular phone to attempt to entice a minor to engage in sexual activity for which a person can be criminally charged under Illinois law.
If convicted, the statutory penalty for each count of sexual exploitation of a minor is a minimum 15 years in prison and up to 30 years in prison plus a fine of up to $250,000. The penalty for enticement of a minor is a minimum 10 years and up to life in prison, plus a fine up to $250,000. Delacruz may also be sentenced to a term of supervised release up to life following any prison sentence.
Delacruz was arrested on Aug. 23, 2016, in Cadillac, Mich., by special agents of U.S. Immigration and Customs Enforcement Homeland Security Investigation. Delacruz will appear in federal court in Springfield at a later date.
The case is being prosecuted by Assistant U.S. Attorney Victor Yanz. The charges are the result of an investigation by the Chatham Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The 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 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.
Medical Equipment Company Owner and Biller Plead Guilty in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of a Rio Grande Valley area durable medical equipment (DME) company has been convicted of conspiracy to commit health care fraud, announced U.S. Attorney Kenneth Magidson. Veronica Vela, 42, of Mission, entered her plea today before U.S. District Judge Micaela Alvarez.
Vela, the owner of ABC DME, admitted to engaging in a scheme with her co-conspirator and biller, Cynthia Zapata, 50, also of Mission, to submit fraudulent claims to Texas Medicaid for incontinence supplies that were not provided as claimed. The defendants also billed for durable equipment that the recipients’ physicians did not authorize.
Zapata pleaded guilty to conspiracy to commit health care fraud for her role in the scheme. As part of their pleas, the defendants admitted they billed for the maximum quantity of pull-ups allowed under Texas Medicaid rules when it was not needed or provided. Further, they also billed for larger sizes of pull-ups than were needed in order to receive higher reimbursements from Texas Medicaid.
Judge Alvarez has set sentencing for Nov. 17, 2016, at 2:00 p.m., at which time both face up to 10 years in federal prison and a possible $250,000 fine for the conspiracy.
The Texas Attorney General’s Medicaid Fraud Control Unit, U.S. Department of Health and Human Services‐Office of Inspector General and the FBI investigated. Assistant U.S. Attorneys Michael Day and Linda Requenez are prosecuting the case.
Maryland MS-13 Member Pleads Guilty to Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – Jose Rodriguez-Nunez, a/k/a “Killer,” age 27, of Hyattsville, Maryland, pleaded guilty late on September 7, 2016, to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to his plea agreement and court documents, beginning in 2010, Rodriguez-Nunez conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation. Rodriguez-Nunez was a member of MS-13 and an associate of the Weedons Clique of MS-13.
Specifically, Rodriguez-Nunez admitted that on December 5, 2012, he was the driver in a drive-by shooting in which another MS-13 member shot at three individuals believed to be rival gang members, killing one and wounding another. Rodriguez-Nunez admitted that after the shooting he fled the scene to avoid being identified.
Rodriguez-Nunez and the government have agreed that if the Court accepts the plea agreement, Rodriguez-Nunez will be sentenced to between 216 and 240 months in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for January 9, 2017, at 10:00 a.m. Rodriguez-Nunez remains detained pending sentencing.
In addition to Rodriguez-Nunez, eight other defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department; and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Catherine Dick with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Maryland MS-13 Member Pleads Guilty to Violent Racketeering ConspiracyRead the Press Release
A Hyattsville, Maryland, man pleaded guilty to charges related to his participation in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County, Maryland, Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.
Jose Rodriguez-Nunez, aka Killer, 27, pleaded yesterday before Senior U.S. District Judge Roger W. Titus of the District of Maryland to conspiracy to participate in a racketeering enterprise.
MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Prince George’s County, Montgomery County and Frederick County, Maryland. In pleading guilty, Rodriguez-Nunez admitted that he was a member of MS-13 and an associate of the MS-13 Weedons Clique.
According to his plea agreement, beginning in 2010, Rodriguez-Nunez conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation. Specifically, Rodriguez-Nunez admitted to his role as the driver in a drive-by shooting on Dec. 5, 2012, in which another MS-13 member shot at three individuals believed to be gang rivals, killing one and wounding another. After the shooting, Rodriguez-Nunez fled the scene to avoid being identified, he admitted.
In addition to Rodriguez-Nunez, eight other defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.
HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department and the Prince George’s County State’s Attorney’s Office investigated the case. The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit provided assistance in the investigation. Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau, Lindsay Eyler Kaplan are prosecuting this case.
Manhattan Man Sentenced in Federal Court for Defrauding the Department of Education of More Than $1 Million in Student LoansRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANK HARRISON was sentenced yesterday to 18 months in prison for defrauding the United States Department of Education of over $1 million by submitting false documents in connection with his requests for financial aid as a graduate student. HARRISON pled guilty on February 19, 2016, before U.S. Magistrate Judge Ronald L. Ellis. Yesterday’s sentence was imposed by U.S. District Judge Richard M. Berman.
According to the allegations contained in the indictment to which HARRISON pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
From at least March 2008 up to and including August 2013, HARRISON, who was a graduate student at a university in New York City (the “University”), submitted documentation to the University in order to obtain additional financial aid that was above the standard cost of attendance. Specifically, HARRISON submitted false letters and other documents purporting to be from doctors, his landlord, and a University professor, which allowed HARRISON to receive more than $1.3 million in federal student loans.
* * *
In addition to his prison term, HARRISON, 48, of New York, New York, was sentenced to three years of supervised release, and ordered to pay restitution in the amount of $1,170,694.
Mr. Bharara praised the investigative work of the Department of Education.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Katherine C. Reilly and Jason M. Swergold are in charge of the prosecution.
Lucas County man accused of embezzlementRead the Press Release
A three-count criminal information was filed charging a Waterville man with embezzling hundreds of thousands of dollas from Construction Contractors Employer Group LLC, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
William H. Cook, III, 66, was charged with one count each of conspiracy, wire fraud and mail fraud.
Cook was president of AlphaCare Services Inc., which handled day-to-day operation of Construction Contractors Employer Group LLC. CCEG was formed in 2001 to collect, process and pay employment expenses of its members, such as payroll and worker’s compensation premiums. CCEG’s members were general contractors from Northwest Ohio, according to the information.
Instead of using the members’ money to pay designated expenses, Cook used much of it for his personal benefit. He did this by transferring CCEG funds into AlphaCare Services accounts and then writing checks payable to himself and others. He then used those funds for personal gain, according to the information.
For example, between September 2011 and June 2012, Cook caused wire transfers from CCEG’s account to AlphaCare’s account in excess of $200,000, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, in Sandusky, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lower Brule Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Johnny Walking Bull, age 32, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody 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 Indictment alleges that on or about May 19, 2016, Walking Bull forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Bureau of Indian Affairs, while said officer was engaged in the performance of his official duties.
The charge is merely an accusation and Walking Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Walking Bull was released on bond pending trial, which has been set for November 1, 2016.
Local Business Leader Sentenced to Two Counts of Wire FraudRead the Press Release
EUGENE, Ore. – On Tuesday, September 6, 2016, U.S. District Judge Ann Aiken sentenced Terry Shockley, 63, to fifty-one months in prison following his April 2016 guilty plea to two counts of wire fraud. Shockley admitted to defrauding clients and investors through his now-defunct property management company, TS Property Management (TSPM).
Over the past two decades, TSPM grew to be a trusted rental and property management resource for Eugene property owners and students alike. When payments Shockley owed his clients began to run late and complaints were made to the Oregon Real Estate Agency, the true financial health of the company began to unravel. The investigation revealed that Shockley struggled with financial issues and was operating under insurmountable debt. He ran TSPM like a Ponzi scheme and also used client money to fund the purchase of a second home in La Pine, Oregon, as well as other lifestyle expenses.
TSPM was an influential local business in Eugene and attracted clients and investors not only from Lane County, Oregon, but from across the country and internationally. U.S. Attorney Billy J. Williams said, “The collapse of TSPM sent shockwaves throughout the Eugene community as property owners learned that a trusted adviser had taken advantage of their faith in his business and in him. This sentence reflects the severity of the defendant’s crimes and the degree to which he exploited individuals in his community and elsewhere for his own financial gain.”
Shockley admitted that his actions resulted in the loss of over $4.5 million to his clients and investors and agreed to entry of a restitution order reflecting those losses. He also admitted to specific details of his scheme, which included operating the company under materially false pretenses while claiming that client money was held in trust and that TSPM was thriving financially.
The case was investigated by the FBI and the Oregon Real Estate Agency and prosecuted by Assistant U.S. Attorney Nancy M. Olson.
Lizella Resident Sentenced for Assaulting Federal OfficersRead the Press Release
G.F. Peterman, III, the United States Attorney for the Middle District of Georgia, announces that Bobby Leon Parrish, of Lizella, Georgia, was sentenced to serve 95 months in Federal prison for assaulting a Federal law enforcement officer and using a firearm in relation to a crime of violence. The sentence was handed down by the Honorable Marc T. Treadwell on September 7, 2016 in Macon.
Through his guilty plea entered on April 20, 2016, Mr. Parrish admitted that on August 24, 2015, Deputy U.S. Marshals attempted to take Mr. Parrish into custody for several outstanding state warrants and failure to report to his state probation officer. Mr. Parrish pulled a firearm from his waistband and aimed it at the officers. A search of Mr. Parrish revealed a small container of marijuana, two digital scales, two shotgun shells and crushed substance Mr. Parrish claimed was Xanax, along with the single shot shotgun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Kimberly S. Easterling prosecuted the case on behalf of the Government.
Inquiries regarding this case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Landenberg Man Charged with Illegal ReentryRead the Press Release
Hector Cisneros-Ibarra, a/k/a “Hector Ibarra Cisneros,” 38, of Landenberg, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 22, 2014, Cisneros-Ibarra, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about May 5, 2006, July 6, 2006 and November 4, 2008.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty
Kentwood Man Pleads Guilty to Meth PossessionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC BROWN, age 38, from Kentwood, Louisiana, pled guilty to today to one count of Possession with Intent to Distribute a Quantity of Methamphetamine.
According to court documents, on June 22, 2014, a Tangipahoa Parish Sheriff’s deputy responded to a suspicious person report at 69062 South River Road in Kentwood. When the deputy arrived at the residence, he observed individuals flee the residence. He then noticed several males outside the rear of the residence. As the deputy approached the rear of the residence, he detected an odor consistent with the manufacturing of methamphetamine. Four individuals were outside the rear of the residence, including BROWN, who was sitting in a white Lincoln. The deputy then noticed in plain view of the vehicle twenty-four zip-lock baggies containing approximately three grams of methamphetamine and a Smith and Wesson .38 special revolver on the vehicle’s floorboard.
The deputy then met with a female at the residence who told the deputy that she and BROWN resided at the residence and that BROWN “cooked” methamphetamine in their bedroom the previous night. Deputies and DEA Task Force Officers searched the residence and found three inactive methamphetamine labs in a refrigerator in the master bedroom.
BROWN faces a maximum term of 20 years imprisonment and a fine of $1,000,000. U.S. District Judge Nannette Jolivette Brown set sentencing for
U.S. Attorney Polite praised the work of the U.S. Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Andre’ Jones is in charge of the prosecution.
KC Man Pleads Guilty to Laser StrikeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to aiming his laser pointer at a Kansas City, Mo, Police Department helicopter.
Jordon Clarence Rogers, 26, of Kansas City, pleaded guilty before U.S. Magistrate Judge John T. Maughmer to the charge contained in an Oct 29, 2014, superseding indictment.
By pleading guilty today, Rogers admitted that he aimed the beam of a laser pointer at a Kansas City, Mo., Police Department helicopter on Oct. 8, 2013. Rogers struck the helicopter three times with a green laser light. He twice hit the eye of one of the pilots, causing eye strain that lasted for hours after the incident.
Under federal statutes, Rogers is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Casey. It was investigated by the FBI.
KC Brothers Sentenced for PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., brothers were sentenced in federal court today for their roles in a conspiracy to distribute PCP.
Todd M. Byrd, 36, and his brother, Aaron Byrd, 42, both of Kansas City, were sentenced in separate appearances before U.S. District Judge Gary A. Fenner. Todd Byrd was sentenced to 20 years in federal prison without parole and 10 years of supervised release following incarceration. Aaron Byrd was sentenced to 11 years and three months in federal prison without parole and eight years of supervised release following incarceration.
On April 19, 2016, Todd Byrd pleaded guilty to his role in the conspiracy to distribute one kilogram or more of PCP. On the same date, Aaron Byrd pleaded guilty to a lesser included offense of conspiracy to distribute 100 grams or more of PCP.
Investigators conducted a series of controlled purchases of PCP and seizures of PCP from Jan. 1, 2014, to May 21, 2015. According to court documents, Todd and Aaron Byrd were mid-level distributors with several sources of supply, including co-defendant Leelon L. Williams, 40, of Kansas City, Mo. The Byrd brothers regularly acquired multiple-ounce quantities of PCP to distribute to customers in quantities ranging from PCP-dipped cigarettes, called “sticks,” to half-ounce bottles and full ounce bottles of PCP.
Co-defendant George Hunt, 59, of Kansas City, Mo., traveled to Los Angeles, Calif., in April 2015 to pick up PCP from a supplier and deliver it to Todd Byrd. On his return trip, Hunt was stopped by the Kansas Highway Patrol for a traffic violation. The trooper noticed the overpowering odor of PCP emanating from the vehicle. The trooper conducted a search of Hunt’s vehicle and located a 64-ounce bottle containing PCP on the back seat floorboard.
Todd and Aaron Byrd are the fourth and fifth defendants to be sentenced after pleading guilty to their roles in the drug-trafficking conspiracy. Williams was sentenced to 20 years in federal prison without parole. Hunt was sentenced to four years and six months in federal prison without parole. Michael Lightener, 45, of Kansas City, Mo., was sentenced to two years and two months in federal prison without parole.
Co-defendants Terrence T. Taliferro, 41, and Frank Savory 26, both of Kansas City, Mo., have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Moves to Dismiss McDonnell ChargesRead the Press Release
ALEXANDRIA, Va. – Today the United States moved to dismiss the charges against Robert F. McDonnell and his wife Maureen McDonnell.
After carefully considering the Supreme Court’s recent decision and the principles of federal prosecution, we have made the decision not to pursue the case further.
The department thanks the trial team and its investigative partners for their outstanding work on this case.
Justice Department Moves to Dismiss McDonnell ChargesRead the Press Release
Today, the United States moved to dismiss the charges against Robert F. McDonnell and his wife Maureen McDonnell.
After carefully considering the Supreme Court’s recent decision and the principles of federal prosecution, we have made the decision not to pursue the case further.
The department thanks the trial team and its investigative partners for their outstanding work on this case.
Jeffersonville Man Sentenced for Robbery of Huddle HouseRead the Press Release
Brandon Perry, age 24, from Jeffersonville, Georgia was sentenced to 9 years imprisonment by the Honorable Marc T. Treadwell. Mr. Perry previously entered a guilty plea on September 7, 2016 to Interference with Commerce by Robbery and Possession of a Firearm During and in Relation to a Crime of Violence. His co-defendant, Gabriel Bell, age 21, from Warner Robins, Georgia, was sentenced to 5 years and 1 day imprisonment on April 27, 2016, following his guilty plea to the same charges on April 2, 2015.
Through their guilty pleas, Mr. Perry and Mr. Bell both admitted to robbing the Huddle House located at 5218 Highway 96 West in Jeffersonville, Georgia. They entered the store wearing masks and pointed firearms at the employees of the store. Mr. Perry brandished a short-barreled shotgun and stood by the door while Mr. Bell carried a pistol, went behind the counter, and took money from the cash register as well as the purse belonging to an employee which contained a bank bag with money belonging to the store.
They then left the store on foot and ran to Mr. Bell’s vehicle. While approaching his residence, Mr. Bell lost control of the vehicle and crashed. Investigators responded to the scene and observed broken glass and blood on the deployed airbags. Investigators suspected that the vehicle was involved with the burglary and obtained consent to search Mr. Bell’s bedroom. In his bedroom, they located a pair of shorts and a pair of pants that matched those worn by the robbery suspects, both of which contained blood and glass. The shorts also had a large amount of cash and the keys to the wrecked vehicle in the pockets.
Investigators recovered the employee’s purse with the bank bag and the short-barreled shotgun in a path leading from Mr. Bell’s residence to the location from where it was reported Mr. Perry was picked up following the car accident.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Georgia Bureau of Investigation, and the Twiggs County Sheriff’s Office. Assistant United States Attorney Beth Howard prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Justice Department Sues South Dakota Business for Violating Employment Rights of Air National Guard MemberRead the Press Release
WASHINGTON – The Justice Department filed a complaint late yesterday alleging that BioFusion Health Products Inc., a business with headquarters in Rapid City, South Dakota, violated the employment rights of former South Dakota Air National Guard Senior Airman Amber M. Ishmael under the Uniformed Services Employment and Reemployment Rights Act (USERRA). Ishmael has served her country as part of the Air National Guard since 2010 and is currently a staff sergeant with the Missouri Air National Guard.
According to the complaint, which was filed in the U.S. District Court for the District of South Dakota, Ishmael’s military service was a motivating factor in BioFusion’s decision to both deny her request for reemployment and ultimately terminate her employment. The department claims both actions by BioFusion violated Ishmael’s rights as a servicemember to employment and reemployment under USERRA.
The complaint further alleges that in February 2015, BioFusion fired Ishmael from her position as a receptionist due to her military service and subsequently denied her application for reemployment following her active military duty. Ishmael’s employment was terminated while she was out of state attending Airmen Leadership School, which is professional military education training associated with her military service. When Ishmael requested reemployment upon return, she was explicitly denied based on her previous absence related to her military service.
“BioFusion must be held to account for its alleged wrongful termination of Staff Sgt. Ismael, who proudly serves in our Air National Guard,” said Principal Deputy Associate Attorney General Bill Baer. “The Department of Justice is committed to protecting the employment rights of those who meet their active duty commitments.”
“Staff Sergeant Ishmael served our nation with honor and distinction, and USERRA guarantees her right to return to civilian employment upon returning from military service,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This lawsuit and the department’s Servicemembers and Veterans Initiative demonstrate our steadfast commitment to leverage every resource and tool at the federal government’s disposal to protect the rights of the men and women who defend our freedom and safeguard our way of life.”
“Members of our Air National Guard make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Randolph J. Seiler of the District of South Dakota. “When our servicemembers are deployed in the service of our country, they are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. We are filing suit on behalf of Staff Sergeant Ishmael, a former member of the South Dakota Air National Guard, to ensure that she does not lose her rights while she was protecting ours.”
USERRA safeguards the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations. USERRA also protects servicemembers from discrimination on the basis of their military obligations.
The lawsuit seeks damages equal to the amount of Ishmael’s lost wages and benefits caused by BioFusion’s failure to comply with USERRA. It also seeks orders requiring BioFusion’s compliance with all provisions of USERRA and requiring BioFusion to pay all related litigation fees.
Ishmael initially filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service (VETS), which investigated this matter and attempted to reach a resolution between the parties. After resolution failed, VETS referred the complaint to the Justice Department’s Civil Rights Division. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office of the District of South Dakota. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/crt-military, as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra/main.htm.
Insurance Agent Charged with Defrauding Clients, Money LaunderingRead the Press Release
Springfield, Ill. – A federal grand jury has indicted a Decatur, Ill., man who worked as an independent insurance agent. The indictment, returned Sept. 7, charges James P. Smith, 60, of the 5400 block of Traughber Road, with a fraud scheme that allegedly exposed clients to a potential loss of more than $250,000 from February 2011 to July 2016.
Smith is currently in custody on charges filed by the Macon County State’s Attorney’s Office. The U.S. Clerk of the Court will schedule a date for Smith to appear for arraignment in federal court in Urbana.
The Federal Bureau of Investigation and the Macon County Sheriff’s Office are conducting the investigation. Assistant U.S. Attorney Eugene L. Miller is prosecuting the case with the cooperation of the Macon County State’s Attorney’s Office.
According to the indictment, from at least February 2011 through July 2016, Smith represented that he was employed by or owned the Prairie State Insurance Agency in Decatur, Ill., and he acted as an independent agent. Smith solicited clients to purchase insurance, including whole life insurance, and financial products, including annuities. As part of the alleged scheme, Smith falsely represented the minimum rate of return the annuities could obtain for his clients. Instead of investing clients’ money in insurance, annuities, or other financial products, Smith allegedly used the money for his own benefit.
As alleged in the indictment, Smith requested payments be made payable to “MSM, Inc.,” which he represented was the insurance company or the investment company for the annuity the clients were purchasing. In fact, as Smith knew, MSM, Inc., was actually “Main Street Marathon,” a gas station in Mt. Zion, Ill., owned by Smith. Rather than use the clients’ funds as represented, Smith used the money to finance the gas station without his clients’ knowledge. Smith also used his clients’ money to make mortgage payments on his personal residence.
Further, Smith allegedly cancelled or cashed out clients’ insurance policies or annuities without their knowledge or permission, and used the cash value and / or future premiums or payments for his personal benefit, including to pay his personal attorney’s fees, his personal bankruptcy fees, and as purported annuity payments to other clients to prevent them from discovering that he had not purchased their annuities as promised.
If convicted, the statutory maximum penalty for each count of mail fraud (two counts) and wire fraud (one count) is 20 years in prison, and a fine of up to $250,000, and the statutory maximum penalty for the offense of money laundering (one count) is 20 years in prison, and a fine of up to $500,000, or twice the value of property involved in the transactions, whichever is greater.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Inglewood, California Man Sentenced to Five Years in Federal Prison for Conspiracy to Commit Mail and Wire FraudRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced Erick Halkier Hansen, age 58, of Inglewood, California, was sentenced today by Chief United States District Judge Thomas O. Rice to five years in federal prison as a result of his conviction for Conspiracy to Commit Wire and Mail Fraud. Chief Judge Rice also ordered Hansen to pay $2,872,300 in restitution to 51 investors who lost money as a result of Hansen’s criminal activity and required Hansen to serve three years of supervised release upon the completion of his sentence. Previously, on June 9, 2016, Chief Judge Rice also sentenced Sean Michael Borzage Boyd of Provo, Utah to 3 years in federal prison for his role in the same conspiracy. Chief Judge Rice ordered Boyd to pay restitution along with Hansen.
On March 24, 2016, the Defendant pled guilty to Conspiracy to Commit Wire and Mail Fraud with regard to his operation of BlueStar Digital Technologies, Inc. (“BlueStar”) and related entities in Spokane, Washington from October, 1, 2010 through January 1, 2014. Hansen was the President and Chief Executive Officer of BlueStar during the timeframe alleged in the indictment. According to information disclosed during court proceedings, the conspiracy involved Hansen’s solicitation of funds from investors across the United States for three separate schemes.
First, in 2010 Hansen took funds from investors based on representations that BlueStar had a contract for the exclusive distribution rights to video footage of a recently deceased celebrity (the “Celebrity Footage”) and that BlueStar would replicate large numbers of Blu-ray Discs containing the Celebrity Footage for profit. Hansen knew, however, that: 1) BlueStar, was not capable of replicating large numbers of Blu-ray Discs at that time and therefore could not perform under the contract regarding the Celebrity Footage; and, 2) BlueStar took no meaningful steps to undertake any production or distribution of the Celebrity Footage on Blu-ray Discs.
Second, in 2012 Hansen took funds from investors based on representations that BlueStar had a contract with a film company to release an animated film that BlueStar would exclusively distribute, including through distribution on Blu-ray Discs. Hansen continued to take funds from investors after the contract with the film company expired based on BlueStar’s failure to perform under the contract.
Third, also in 2012, Hansen signed a non-binding memorandum of understanding with an individual and another film company wherein BlueStar and the film company agreed to explore the possibility of the film company investing in BlueStar. Hansen knew that the memorandum of understanding with the film company was not binding, but continued to collect investor funds as if the deal were imminent. The deal never materialized.
Chief Judge Rice found the total loss from Hansen’s criminal activity to be $2,872,300.
Michael C. Ormsby said, “Today’s sentence reflects the seriousness of this major fraud scheme. I commend the FBI, the IRS-CID, and the Washington State Department of Financial Institutions for their tireless efforts in pursuing the investigation of this case. Prosecuting fraud matters is a priority for the United States Attorney’s Office here in the Eastern District of Washington.”
The investigation of this case was conducted by: (a) the Federal Bureau of Investigation, (b) the Internal Revenue Service, Criminal Investigation, and (c) the Washington State Department of Financial Institutions. The case was prosecuted by James A. Goeke and George J.C. Jacobs III, Assistant U.S. Attorneys for the Eastern District of Washington.