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27 October 2016
15 Defendants Arrested Following Drug Trafficking Investigation and RoundupRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas; L. Diane Upchurch, Special Agent in Charge of the FBI; and David Ethredge, Prosecuting Attorney for the Fourteenth Judicial District of Arkansas, announced that fifteen individuals were arrested today by local, state, and federal law enforcement as part of a roundup following an over year-long investigation into methamphetamine trafficking in Boone, Baxter, Searcy, Newton, Benton and Washington Counties in Arkansas, and the states of Missouri and Oklahoma. Eleven defendants were arrested on federal charges and four were arrested on state charges. Three additional defendants, Juan Delacruz Albarran, Juan Ramirez Vargas and Joseph Macormick Elder had already been arrested on federal charges and are in custody. Law enforcement also executed seven federal and 4 state search warrants in Arkansas and one federal search warrant in Missouri.
On October 5, 2016, a federal grand jury returned three (3) separate indictments charging 19 individuals in the Harrison, Arkansas and Missouri area with a large-scale drug trafficking conspiracy. The indictments included a total of 37 counts, all of which involved the distribution of methamphetamine. The indictments were unsealed today.
“Today’s arrests reflect our commitment to removing criminal organizations trafficking methamphetamine into our communities throughout Arkansas,” stated Diane Upchurch, Special Agent in Charge with the FBI in Little Rock. “We must be diligent and wipe out these networks in Arkansas. We appreciate the efforts of our federal, state and local law enforcement partners, and the state and federal prosecutors who faithfully work to reduce overall crime and improve the quality of life for Arkansans.”
David Ethridge, Prosecuting Attorney for the 14th Judicial District of Arkansas commented, “I would like to thank the many law enforcement officers that worked so hard and so long on this investigation. By combining resources and working together, we were able to accomplish what none of us could have otherwise accomplished on our own.”
The federal defendants who were arrested today will appear in the United States District in Fort Smith before United States Magistrate Judge Mark Ford early next week.
This was a joint investigation between the Federal Bureau of Investigation, the 14th Judicial Drug Task Force, the 14th Judicial District Prosecuting Attorney, the Drug Enforcement Administration, the Arkansas State Police, the Boone County Sheriff, the Newton County Sheriff, the Searcy County Sheriff, the Carroll County Sheriff, the Baxter County Sheriff, the Washington County Sheriff, the McDonald County, Missouri Sheriff, the Harrison Police Department, the Springdale Police Department, the Arkansas National Guard, the United States Marshal’s Office, the Mayes County, Oklahoma District Attorney’s Office, and the Grand River Dam Authority (GRDA). Assistant United States Attorney Brandon Carter is prosecuting the case for the Western District of Arkansas.
An Indictment is merely an accusation. An arrest warrant represents a finding of probable cause that a person has committed a criminal offense. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
26 October 2016
Wilkinsburg Man Sentenced to 8 Years in Prison for Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Wilkinsburg, Pa., has been sentenced in federal court to 96 months’ imprisonment on his conviction of conspiracy to distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Aaron Reed, 35.
According to information presented to the court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Aaron Reed was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Aaron Reed.
Washington County Man Sentenced to 12 Years in Prison for Child Pornography CrimesRead the Press Release
PITTSBURGH – After conviction at trial, a former resident of Allegheny County has been sentenced to 151 months imprisonment, followed by 10 years supervised release, on his convictions of Distribution and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney David J. Hickton announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Christopher Welshans, 39, of Atlasburg, Pennsylvania.
According to information presented to the Court at trial, on or about Feb. 11, 2014, Welshans distributed videos and images containing material depicting the sexual exploitation of minors. In addition, on or about March 21, 2014, Welshans knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant U.S. Attorneys Jessica Lieber Smolar and Shanicka L. Kennedy prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania Office of the Attorney General and Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Welshans.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Veterinary Clinic Owner Pays Civil Penalty to Settle Alleged Controlled Substances Act ViolationsRead the Press Release
ATLANTA – Veterinarian Michael Paul Good, owner of Town & Country Veterinary Clinic, located in Marietta, Georgia, has agreed to pay a civil settlement of $90,000 to resolve allegations that he violated the recordkeeping requirements of the Controlled Substances Act. Dr. Good also has agreed to additional oversight from the DEA.
“The illegal diversion of controlled substances from legitimate medical purposes is a problem facing our district and the nation,” said U.S. Attorney John Horn. “To prevent the diversion of controlled substances, all DEA registrants, including veterinarians, must keep careful track of their controlled substances inventory. The failure to do so may result in the imposition of significant civil monetary penalties.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented, “The owner of Town & Country Veterinary Clinic spun a web of deception when it failed to maintain accurate recordkeeping of its inventory. Such careless behavior allows for substances to be diverted and sold on the black market with no true measure of accountability. The pursuit of civil penalties is a proactive step that DEA Diversion and its federal, state and local partners can take to discourage other negligent medical entities from engaging in such behavior.”
The government alleges that Dr. Good, among other violations, failed to keep accurate records of controlled substances, failed to report thefts or losses of controlled substances, and failed to maintain controlled substances records properly at Town & Country Veterinary Clinic in Marietta, Georgia. The claims settled are allegations only, and there has been no determination of liability.
Congress enacted the Controlled Substances Act, 21 U.S.C. §§ 801-904, to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications. Under the Controlled Substances Act, individuals and entities registered with the DEA are required to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed. Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 for each violation.
This case was investigated by the Tactical Diversion Squad from the Drug Enforcement Administration, with assistance from the Georgia Drugs and Narcotics Agency and the Georgia Veterinary Board.
The civil settlement was reached by Assistant U.S. Attorney Lena Amanti.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
University Heights man indicted with four pounds of heroin, 11 pounds of cocaine and 10 firearmsRead the Press Release
A University Heights man was indicted in federal court after investigators found him with more than four pounds of heroin, approximately 11 pounds of cocaine and 10 firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Marcus Labrone Morris, 42, was named in a four-count indictment, charged with possession with intent to distribute heroin, possession with intent to distribute cocaine, being a felon in possession of firearms, and operating the home at 3582 Farland Road as a drug house.
U.S. Postal Inspectors interdicted a package sent from California to 3598 East 147th Street in Cleveland on Oct. 3. The package was address to Mrs. Momma James. The package was later determined to contain two kilograms of heroin – one kilogram a light gray powdery substance and the other kilogram a black tarlike substance, according to court documents.
The package was delivered and on Oct. 4, Morris took the target package from the porch on East 147th Street and placed it in the bed of his truck. After approximately 20 minutes, during which time Morris was making counter-surveillance maneuvers, he was arrested and the package was recovered. Morris and his wife then gave consent to search their home at 3582 Farland Drive in University Heights. Investigators found approximately five kilograms of cocaine and 10 firearms and ammunition, according to court documents.
Morris is forbidden from possessing firearms because he was convicted of cocaine trafficking in 2001 in Trumbull County Common Pleas Court.
“This case is another grim reminder that heroin and other dangerous drugs are in our community and don’t adhere to any boundaries,” Rendon said. “We will continue to work with our partners to get narcotics off the streets and firearms out of the hands of people who are not allowed to possess them.”
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Matthew Cronin following an investigation by the U.S. Postal Inspection Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Union City, New Jersey, Inspector Sentenced to 20 Months in Prison for Conspiring to Rig Contractor Selection Process for Community Development ProjectsRead the Press Release
NEWARK, N.J. – An inspector at the Union City Community Development Agency (UCCDA) was sentenced today to 20 months in prison for conspiring with contractors to rig the selection process for home improvement, sidewalk replacement and other projects, causing losses of at least $307,000, U.S. Attorney Paul J. Fishman announced.
Johnny Garces, 53, of Union City, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiring with others to obtain by fraud funds provided by Union City. Judge Walls imposed the sentence today in Newark federal court.
According to documents in this case and statements made in court:
Between April 2007 and July 2011, Garces was an inspector at the UCCDA, a government agency that receives funding from the U.S. Department of Housing and Urban Development (HUD) under a federal block grant that provides money for home improvement projects, sidewalk replacement and other projects.
From 2007 through 2011, Garces conspired with contractors Joseph Lado, 68, of Fort Lee, New Jersey, Leovaldo Fundora, 55, of Guttenberg, New Jersey, and others to rig the selection process for HUD-funded projects through false and misleading bids. In addition to instructing Lado and Fundora to submit phony, higher bids from competitors, Garces also fabricated higher bids from numerous fictitious companies so that Lado, Fundora and others would secure the projects.
In addition to the prison term, Judge Walls sentenced Garces to three years of supervised release and ordered him to pay restitution of $307,497.
Lado was sentenced Aug. 10, 2016, to three years of probation and ordered to pay $82,886 in restitution. Fundora was sentenced Aug. 17, 2016, to three years of probation and ordered to pay $73,754 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Barbara Llanes of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Ulster County Real Estate Developer Sentenced in White Plains Federal Court to 37 Months in Prison for Fraudulent Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL BARNETT, a real estate developer, was sentenced today by U.S. District Judge Kenneth M. Karas to 37 months in prison for conspiring to defraud lenders and make false statements to the U.S. Department of Housing and Urban Development (“HUD”) in connection with his development of Vineyard Commons, a luxury residential complex in Ulster County, New York. BARNETT pled guilty on January 19, 2016, before U.S. Magistrate Judge Paul E. Davison.
Manhattan U.S. Attorney Preet Bharara said: “Michael Barnett abused his position as the developer of Vineyard Commons to enrich himself and defraud HUD and his construction lender. Today he has been sentenced to federal prison for his crimes.”
According to the Superseding Indictment to which BARNETT pled guilty and his admissions in court during his plea allocution:
BARNETT, who was the developer of Vineyard Commons, sought kickbacks and investments from subcontractors and vendors on the project and made false statements to the project’s lender so that he could draw down on the project’s line of credit. BARNETT arranged with his co-defendants, Robert Lees and Kevin DiCello, executives of a vendor that provided rough carpentry and lumber supplies on the project (the “Lumber Company”), to have the Lumber Company pay Barnett a kickback in exchange for BARNETT’s award to the Lumber Company of the Vineyard Commons contract, as well as future business on other developments BARNETT was planning. To raise funds for the kickback, BARNETT, Lees, and DiCello agreed that the Lumber Company would inflate its bid for labor and materials by approximately $865,000.
BARNETT, Lees, and DiCello intended that the kickback would be funded unwittingly by the construction lender, and ultimately by HUD through its guaranty of the construction loan, through the submission of false and inflated requests to draw down the construction loan.
In January 2010, the Lumber Company made a partial kickback payment of $200,000 to BARNETT, and Lees and DiCello disguised the transaction on the Lumber Company’s books by making it appear to be a customer rebate payable to a company controlled by BARNETT that was not involved in the development of Vineyard Commons. BARNETT then used the $200,000 as a partial payment of an obligation he had to the general contractor on Vineyard Commons.
BARNETT also solicited subcontractors and vendors on the Vineyard Commons project, including the Lumber Company, to provide labor and materials to build a pool house at his home. Some of these subcontractors and vendors, including the Lumber Company, agreed to do so.
Finally, BARNETT submitted false invoices to the construction lender in order to enrich himself fraudulently by drawing down the loan.
In addition to the prison sentence, BARNETT, 47, of Marlboro, New York, was sentenced to three years of supervised release. Judge Karas also ordered BARNETT to forfeit $200,000 in ill-gotten gains and any interest in certain specified real property, and to pay $1,334,620 in restitution.
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BARNETT’s co-defendants have been convicted and are awaiting sentence. Lees was convicted by a jury on May 20, 2016, of conspiracy, mail fraud, money laundering, and making false statements in a loan application, and is scheduled to be sentenced by Judge Karas on December 15, 2016. DiCello pled guilty on April 20, 2016, to conspiracy, mail fraud, money laundering, and making false statements in a loan application, and is scheduled to be sentenced by Judge Karas on January 19, 2017.
Mr. Bharara praised the outstanding efforts of HUD-Office of Inspector General.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael D. Maimin, James McMahon, and Won S. Shin are in charge of the prosecution.
U.S. Attorney’s Office Hosts Roundtable for Education Working GroupRead the Press Release
BOSTON – The U.S. Attorney’s Office hosted a diverse group of education advocates today from across the Commonwealth to participate in a roundtable discussion about civil rights issues in schools.
The U.S. Attorney’s Office’s Education Working Group (EWG) was first announced at the Civil Rights Unit’s “Ending the School-to-Prison Pipeline” Conference in March. It is composed of a diverse group of stakeholders, including representatives from statewide advocacy groups, local communities and federal and state agencies, committed to protecting the civil rights of students in educational settings across the state. The EWG will meet regularly to share information, best practices, and other strategies that will work to address and prevent civil rights violations in Massachusetts.
“Massachusetts has some of the greatest schools in the country,” said U.S. Attorney Carmen M. Ortiz. “We hope to work together with advocates and community members to ensure that all students – regardless of their race, national origin, gender, religion, or disability status – can access the tremendous educational opportunities our state has to offer. We look forward to engaging with school districts across the Commonwealth to ensure equal access to education for all students.”
Additional roundtable topics of discussion included harassment and bullying in schools, school discipline, disability discrimination, English Language Learners, and accommodating immigrant and refugee students. Members of the EWG concluded the two-hour meeting by sharing goals that aim to advance enforcement efforts and ensure equal protections under the law.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney's Office implements Election Day Program to stop fraud and protect voting rightsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Carol Casto announced today that Assistant United States Attorney (AUSA) Gabriele Wohl will lead the efforts of the United States Attorney’s Office for the Southern District of West Virginia in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general election. AUSA Wohl has been appointed to serve as the District Election Officer (DEO) for the Southern District of West Virginia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Carol Casto said, “Every citizen must be able to vote without interference or discrimination. My office and the Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Casto stated that AUSA/DEO Wohl will be on duty in the Southern District of West Virginia while the polls are open. She can be reached by the public at the following telephone number: 304-345-2200.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office in Charleston can be reached by the public at 304-346-2300.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, D.C., by phone at 1-800-253-3931 or 202-307-2767, by fax at 202-307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Casto said, “Ensuring free and fair elections depends in large part on the cooperation of American voters. We rely on you to be our eyes and ears in the community and at the polling places and to report any irregularities you observe in the voting process. It is imperative that if you have specific information about discrimination or election fraud you communicate that information immediately to my Office, the FBI, or the Department of Justice Civil Rights Division. We want to make sure that every voter and every vote counts.”
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U.S. Attorney's Office Assigns Dedicated District Election Officer to Handle ComplaintsRead the Press Release
DENVER – Acting United States Attorney Bob Troyer announced today that Assistant United States Attorney Jason St. Julien will lead the efforts of the U.S. Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA St. Julien has been appointed to serve as the District Election Officer (DEO) for the District of Colorado, and in that capacity he is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
Acting United States Attorney Troyer said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted – and not be stolen by fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, Acting United States Attorney Troyer has directed that St. Julien will be on duty in this District while the polls are open. He can be reached by the public at 303-454-0302.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 303-629-7171.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Acting United States Attorney Troyer emphasized, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
U.S. Attorney Names District Election Officer to Oversee the Handling of Complaints of Election Fraud and Voting Rights AbusesRead the Press Release
SACRAMENTO, Calif. — Acting U.S. Attorney Phillip A. Talbert announced today that Assistant U.S. Attorney Kevin C. Khasigian will serve as the District Election Officer (DEO) for the upcoming November 8, 2016, general elections for the Eastern District of California. The DEO is responsible for overseeing complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
Counties in the Eastern District are: Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Fresno, Glenn, Inyo, Kern, Kings, Lassen, Madera, Mariposa, Merced, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba.
Acting U.S. Attorney Talbert said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls and will combat violations whenever and wherever they occur. The Department seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. Actions designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, DEO Khasigian will be on duty in this District while the polls are open. He can be reached by the public at: (916) 554-2700 and (916) 554-2723.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI can be reached by the public in the Eastern District of California at (916) 746-7000 or at tips.fbi.gov.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone 800-253-3931 or (202) 307-2767, by fax (202) 307-3961, by email [email protected], or by complaint form at www.justice.gov/crt/complaint/votintake/index.php.
For more information on the Justice Department’s efforts to protect the right to vote and prosecute ballot fraud visit:
https://www.justice.gov/opa/pr/justice-department-releases-information-election-day-efforts-protect-right-vote-and-prosecu-0
U.S. Attorney Announces Office Collects over $13 MillionRead the Press Release
BOISE – United States Attorney Wendy J. Olson announced today that her office's Financial Litigation Unit collected more than $12.25 million in civil debts and criminal fines, assessments, and restitution for the fiscal year that ended September 30, 2016. U.S. Attorney Olson stated that the Financial Litigation Unit collected $1,584,902.42 in criminal fines, assessments, and restitution, and $10,671,716.97 in civil debts. In addition, the Asset Forfeiture Unit collected approximately $1,195,121 representing proceeds and instruments of crime in both criminal and civil forfeitures.
“The more than $13 million our staff collected through civil debts, asset forfeiture, fines, assessments and restitution exceeds the U.S. Attorney's Office's annual operational budget,” said Olson. “Our collection and asset forfeiture staffs of attorneys, paralegals, analysts and fiscal agents ensure that those who owe the federal government money as a result of litigation in this district or as a result of longtime debt, such as student loans, make appropriate payments. They also ensure that those who have profited from committing crimes in the District of Idaho are deprived of the proceeds and tools of their crimes. This year, all of these dedicated individuals have done outstanding work and served this office, taxpayers and the federal government well.”
The Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted student loans and defaulted federally financed mortgages, working with debtors to arrange viable payment plans. During fiscal year 2016, the office collected over $10.67 million in civil debt. Of that, the office collected $9 million for fraudulent procurement of government contracts and collected $1.2 million from EPA violations concerning release of hazardous substances. This includes violations by J.R. Simplot Company, Owyhee Construction, Inc. and Riverside Water & Sewer District. It also collected an FCC civil forfeiture penalty of $25,000 from Pacific Empire Radio Corp. in Lewiston for failure to provide adequate public inspection files for their radio stations.
In addition, the U.S. Attorney’s Office collected approximately $90,831 in defaulted student loans, $193,000 in fire suppression costs for human-caused fires, and $80,388.38 in health care fraud related cases.
From convicted criminals, the U.S. Attorney's Office collects fines, assessments, restitution, and asset forfeitures. Victims of crime receive funds collected in criminal restitution cases. In fiscal year 2016, the U.S. Attorney's Office, through the Financial Litigation Unit, collected over $1.4 million in criminal restitution that was distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
During the fiscal year, some notable criminal restitution collections include Asset Forfeiture’s restoration of Lois Davis’s tithing originally paid to her church in the amount of $222,607 to go towards restitution for the benefit of victims; $75,000 from Melody Redondo related to mortgage fraud; and an asset worth over $150,000 from William Roger Wilkinson.
Notable recoveries of the proceeds of crime through asset forfeiture include forfeitures in two multi-state drug trafficking and money laundering cases in North Idaho, and a number of fraud and other cases. Those other cases include recovery of $222,607 which was restored to victims in an Eastern Idaho investment fraud case; $94,412 forfeited in a Boise-based investment fraud case; $86,126 recovered from a Central Idaho bank robbery case; $75,000 recovered from an illegal gambling operation in Ada and Canyon Counties; and $178,152 recovered in an organic seed fraud case. Approximately $1.32 million in drug trafficking proceeds of crime were recovered in these cases.
Two Men Sentenced in Scam to Illegally Export Goods to SyriaRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Harold Rinko, age 74 of Hallstead, Pennsylvania and Ahmad Feras Diri, age 43, of London, United Kingdom were sentenced by United States District Court Judge Malachy E. Mannion in Scranton for their involvement in a conspiracy to illegally export goods to Syria.
According to United States Attorney Bruce D. Brandler, Diri, age 39, of London, United Kingdom, was sentenced yesterday to a 37-month term of imprisonment, a $100 special assessment, and ordered to forfeit $45,698 to the government. Diri was arrested by the Metropolitan Police in London on March 14, 2013, and extradited to the United States on charges in the Middle District of Pennsylvania.
On October 13, 2016, Rinko was sentenced to a term of time served, 12 months of home confinement, a fine of $2,600, a term of supervised release of 2 years, and was ordered to forfeit $45,698 to the government.
A third defendant, Moawea Deri, a citizen of Syria, remains a fugitive from justice.
Rinko operated an export business in Hallstead, Pennsylvania and conspired with Diri to ship items purchased by customers in Syria in violation of United States law. The three men conspired to export various items from the United States, through third party countries to customers in Syria. The conspirators prepared false invoices which undervalued and mislabeled the goods being purchased and also listed false information as to the identity and geographic location of the purchasers of the goods. The items would be shipped from the United States to Jordan, the United Arab Emirates, and the United Kingdom, and thereafter transshipped to Syria. One such item is described in communications between the conspirators as “it is a portable multi-gas scanner for the detection of chemical warfare agents. Nerve, blood and lung warfare agents are detected using a highly sensitive ion mobility spectrometer.”
"HSI's counter proliferation measures are in place to safeguard our borders and defend our interests across the world. The defendant's willful circumvention of those interests is inexcusable and today's sentencing is an example of the significant repercussions for such action," said Brian Michael, acting special agent in charge of HSI Philadelphia.
Special Agent in Charge Jonathan Carson, Office of Export Enforcement, New York Field Office, Bureau of Industry and Security, US Department of Commerce. "This case demonstrates the outstanding collaboration among law enforcement agencies, and I commend our colleagues at HSI and the Justice Department, as well as our counterparts in the United Kingdom, for bringing this case to a successful conclusion. Shutting down illegal and dangerous trade with anyone who would threaten our national security is the sole focus for Special Agents of the Office of Export Enforcement. We will continue to pursue violators of our nation's export control laws wherever they are located."
The case was investigated by Homeland Security Investigations and the Department of Commerce, Office of Export Enforcement. Assistant U.S. Attorney Todd K. Hinkley and Heather Alpino, Trial Attorney with the Department of Justice, National Security Division, Counterintelligence and Export Control Section prosecuted the case.
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Two Charged for Marijuana Growing Operation at Federal Wildlife RefugeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two men were charged in federal court today, in separate but related cases, for their involvement in a marijuana-growing operation at a federal wildlife refuge in Howard County, Mo.
Carlos Vazguez, 26, and Rigaberto Canacho Reyes, 23, addresses unknown, were each charged with possessing 100 or more marijuana plants with the intent to distribute in separate criminal complaints filed in the U.S. District Court in Jefferson City, Mo. Both Vazguez and Reyes remain in federal custody pending further proceedings.
According to affidavits filed in support of the federal criminal complaints, law enforcement officers discovered a large marijuana growing operation at the Big Muddy National Fish and Wildlife Refuge on Tuesday, Oct. 25, 2016. Vazguez and Reyes were arrested at the site, approximately one mile from County Road 317 in Howard County.
The grow operation, the affidavit says, encompasses approximately five acres and includes five tents where marijuana was hung, dried, packaged and processed for delivery. At least three separate locations had marijuana growing, with plants approximately five to six feet tall. Several plants had been pruned and trimmed to allow the marijuana plants to grow larger and produce a maximum amount of raw marijuana.
The grow operation contained in excess of 500 marijuana plants in the ground, the affidavit says, in addition to cut plants drying in the tents, raw marijuana prepared for processing and in excess of 500 plants which had been processed (with the picked stalks laying on the ground).
A water system ran throughout the grow operation. According to the affidavit, black plastic tubing was observed on the ground. Large plastic containers were located to store water and supply the grow operation by utilizing the black plastic tubing running to each field. An area of the grow operation contained a large amount of fertilizer, bedding supplies, pruning devices and chemicals used in the growing and cultivation of marijuana. Two tents were located in the middle of the operation, which appeared to be the location where people would sleep and cook. There was a fire pit and sleeping bags in this area.
Vazguez was arrested within one of the areas that contained marijuana plants, the affidavit says. He allegedly had a large amount of marijuana in a tarp on his shoulder and appeared to be hauling the marijuana to one of the nearby processing tents.
Reyes was arrested as he walked along one of the paths that connected the many areas of the operation, the affidavit says. He allegedly was carrying marijuana plants.
This case is being prosecuted by Assistant U.S. Attorney Lawrence Miller. It was investigated by the U.S. Fish and Wildlife Service, the Drug Enforcement Administration, the Missouri State Highway Patrol, the East Central Drug Task Force and the Howard County, Mo., Sheriff’s Department.
Twenty-four charged with methamphetamine distribution, illegal firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Twenty-four individuals have been charged with federal drug and gun charges as a result of an investigation spanning two states and three North Central West Virginia counties, according to United States Attorney William J. Ihlenfeld, II.
Indictments were unsealed today alleging that a group of individuals from Virginia and West Virginia conspired with one another to operate a methamphetamine distribution ring in the region. The investigation led to the seizure of hundreds of firearms and significant quantities of methamphetamine.
Many of the defendants were taken into custody today during a coordinated, multi-agency arrest operation led by the Mountain Region Drug and Violent Crime Task Force. Those individuals facing methamphetamine charges include:
• Shawn Michael Moser, 27, of Elkins, West Virginia; • Jerry Wilson Hartley, 35, of Elkins, West Virginia; • Kayleigh Marre Hartley, 29, of Elkins, West Virginia; • Robert Lewis Jones, 54, of Waynesboro, Virginia; • Richard Wayne Scott, 40, of Waynesboro, Virginia; • Joseph Muster, 28, of Elkins, West Virginia; • Samantha Canfield, 28, of Montrose, West Virginia; • Christina Crites, 46, of Elkins, West Virginia; • Calvin Norris Herron, Jr., 43, of Belington, West Virginia; • Gerald Allen Freeman, 41, of Moatsville, West Virginia; • Jeffrey Everson, 28, of Philippi, West Virginia; • Allen White, 37, of Buckhannon, West Virginia; • Jason Randall Howard, 37, of Elkins, West Virginia; • Brian Scott Mayle, 37, of Coalton, West Virginia; • Geniece Pancake, 36, of Belington, West Virginia; • Tyler Robinson, 20, of Belington, West Virginia; • Ronald G. Swiger, 36, of Coalton, West Virginia; • Trey M. Plaugher, 21, of Elkins, West Virginia; • David A. Maxwell, 31, of Elkins, West Virginia; and
• Derek Scott Norris, 36, of Philippi, West Virginia.In addition, Dale Lee Sharp, 45, of Elkins, West Virginia was indicted and arrested for illegal possession of a firearm.
Three additional individuals facing firearms charges have not yet been taken into custody and their indictments remained sealed.
“This case is a great example of Federal, State, and local law enforcement agencies coming together to address a significant methamphetamine threat that was tearing apart a small community in West Virginia, said Karl Colder, DEA Special Agent in Charge. “The quantity of drugs distributed and amount of guns seized is staggering. This case should serve as a warning to those individuals who plague our communities by distributing these drugs and committing acts of violence. The Washington Division would like to thank our federal partner at the ATF for their outstanding support on this case. Additionally, the DEA would like to thank the Barbour County Sheriff, Randolph County Sheriff, Tucker County Sheriff, Elkins Police Department and West Virginia State Police for their continued support.”
“The defendants represent a significant number of Federal firearms violations including armed drug trafficking and prohibited persons possessing firearms,” said Stuart L. Lowrey, ATF Special Agent in Charge. “The Mountain Region Drug Task Force is commended for working to make the community a safer place. ATF will continue to work with this Task Force and other partners to reduce violent crime in the region.”
Assistant U.S. Attorney Stephen D. Warner is handling the cases on behalf of the government. The Mountain Region Drug and Violent Crime Drug Task Force led the investigation. The Task Force is made up of the United States Forest Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, the Randolph County Sheriff’s Office, and the Tucker County Sheriff’s Office. The United States Marshals Service, the Barbour County Sheriff’s Office, and the Elkins Police Department assisted in the arrest operation today. In addition, the National Guard Armory allowed the use of their space to coordinate these efforts.
“The United States Forest Service is proud to be a part of the Mountain Region Drug and Violent Crime Task Force,” said Kurt Morine, U.S. Forest Service Assistant Special Agent in Charge of the Eastern Region. “We are committed to helping keep our forest and our community a safe place to live and visit. The investigation exemplifies how successful our agencies can be when we work together for a common goal.”
United States Attorney Ihlenfeld commended the work of all the agencies involved in the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
* Edited on 10/28/2016 at 4:42 p.m.
Tax Attorney and CPA Indicted for Tax Evasion and Diversion of Tax Shelter Fees from Major Manhattan Law FirmRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent In Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that HAROLD LEVINE, a Manhattan tax attorney, and RONALD KATZ, a Florida certified public account, were charged today in Manhattan federal court in an eight-count Indictment with engaging in a multi-year tax evasion scheme involving the diversion of millions of dollars of fees from a Manhattan law firm and the failure to report that fee income to the Internal Revenue Service.
Mr. Bharara said: “As tax professionals and partners at professional firms, both Harold Levine and Ronald Katz knew better. But as alleged, they engaged in a multi-year scheme to divert and evade taxes on millions of dollars of fee income.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Tax and accounting professionals who conceal their incomes, evade income taxes, and otherwise obstruct the Internal Revenue Service simply have no excuse for violating the very laws their professions are centered on. IRS-Criminal Investigation works hard to ensure that everyone pays their fair sure and we take particular interest in allegations involving professionals who should simply know better.”
According to the allegations in the Indictment[1] returned today in Manhattan federal court:
HAROLD LEVINE, a tax attorney and former head of the tax department at a major Manhattan Law Firm (the “Law Firm”), schemed with RONALD KATZ, a certified public accountant, to divert from the Law Firm over $3 million in fee income from tax shelter and related transactions that LEVINE worked on while serving as a partner of the New York Law Firm. In addition, LEVINE failed to report that fee income to the IRS on his personal tax returns during the period 2005-2011. For his involvement in this scheme, KATZ received and failed to report to the IRS over $1.2 million in fee income.
As part of the fee diversion scheme, for example, LEVINE caused tax shelter fees paid by a Law Firm client to be routed to a partnership entity he co-owned with KATZ and thereafter used those fees – totaling approximately $500,000 – to be used to purchase a home in Levittown, New York. LEVINE caused the home to be purchased as a residence for a Law Firm employee (the “Law Firm Employee”) with whom he carried on a close personal relationship. Although LEVINE allowed the Law Firm Employee to reside in the Levittown house for over five years without paying rent, LEVINE and KATZ prepared tax returns for the entity through which the home was purchased to claim false deductions as a rental property.
In or about 2013, LEVINE was questioned by IRS agents concerning his involvement in certain tax shelter transactions and the fees received for those transactions. During that questioning, LEVINE falsely represented that the Law Firm Employee paid him $1,000 per month in rent while living in the Levittown home. In addition, when the Law Firm Employee was contacted by the IRS and summoned to appear for testimony, LEVINE urged the employee to represent falsely to the IRS that she had paid $1,000 per month in rent to LEVINE.
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LEVINE, 58, of New York, New York, and KATZ, 59, of Boca Raton, Florida, are scheduled to be arraigned in magistrate’s court on Monday, October 31. The case was assigned to United States District Judge Jed S. Rakoff, and a conference was set before Judge Rakoff for Tuesday, November 1, 2016, at 11:00 a.m.
LEVINE, who was charged with one count each of obstructing the IRS, conspiracy, tax evasion, and wire fraud, and two counts of making false statements, faces the following penalties, if convicted:
Statutes Violated
Number
of Counts
Description
Maximum Sentence
26 U.S.C. ' 7212(a)
1
Corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue Laws
Three years in prison
26 U.S.C. ' 7201
1
Tax Evasion
Five years in prison
18 U.S.C. ' 1343
1
Wire Fraud
20 years in prison
18 U.S.C. ' 371
1
Conspiracy
Five years in prison
18 U.S.C. ' 1001
2
False Statements
Five years in prison
KATZ is charged with one count each of obstructing the IRS (maximum penalty three years in prison) and conspiracy (five years in prison), and two counts of tax evasion (five years).
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of the IRS.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorneys Stanley J. Okula and Assistant United States Attorney Daniel Noble are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
South Carolina Attorney Sentenced to Prison for Fraud in UA Sorority House Furnishing SchemeRead the Press Release
BIRMINGHAM – A federal judge today sentenced a South Carolina attorney to six months in prison, followed by 18 months in home detention, for a scheme that involved submitting false invoices for furnishings and equipment for a University of Alabama sorority house and receiving payment without providing the items, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.
JENNIFER ELIZABETH MEEHAN, 39, pleaded guilty in July to bank fraud before U.S. District Judge Madeline H. Haikala. Today, Judge Haikala imposed the prison time and home custody, to be followed by 40 months of supervised release. The judge also ordered Meehan to perform eight hours of community service each week during her home confinement and her supervised release, for a total of 58 months, or four years and 10 months. Judge Haikala fined Meehan $50,000.
Meehan already had returned more than $233,000 as part of her plea agreement with the government. Today she paid about $38,000 in restitution to Greek Resource Services.
Meehan, a former member of Gamma Phi Beta at Alabama, was acting in her position as president of the House Corporation Board of the Epsilon Lambda Chapter of Gamma Phi Beta Sorority in an unpaid, volunteer capacity when she carried out the fraud.
According to Meehan’s plea agreement, Gamma Phi Beta was building a $14 million sorority house and Meehan was responsible for coordinating and purchasing all furniture and associated implements for the house between September 2013 and March 2015.
Meehan executed a bank fraud scheme to illegally obtain money from First Citizens Bank & Trust Company and the Bank of Tuscaloosa, according to her plea agreement. Gamma Phi Beta Sorority’s account was at the Bank of Tuscaloosa. Meehan opened an account at First Citizens Bank under a fraudulent business name.
In September and November of 2014, Meehan submitted fraudulent furniture invoices totaling about $375,000 to Greek Resource Services, a contract company that handles the finances for fraternities and sororities at UA. GRS drew money from Gamma Phi Beta’s account at Bank of Tuscaloosa and gave Meehan two checks totaling about $375,000. She deposited that money into the newly opened First Citizens account.
In January 2015, Meehan entered a First Citizens Bank & Trust branch in Anderson, S.C., and wired $175,000 from the fraudulent business account into her personal business account at Bank of America for her personal use, according to her plea agreement.
The U.S. Secret Service and the U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney David H. Estes prosecuted.
Second Individual Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A West Palm Beach, Florida, resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Jose Santana, aka Octavio Perez, 53, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Santana and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States.
Santana admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach using the alias Octavio Perez. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, Santana’s co-conspirators would then transmit thousands of international calls over the internet to Santana’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts, he admitted.
In addition, Santana admitted that from December 2010 through October 2011, co-conspirators sent him more than 1,000 emails containing telecommunications identifying numbers associated with cellphone account holders around the United States. According to the plea agreement, Santana was personally responsible for than $150,000 in loss resulting from the scheme.
Santana is the second defendant to plead guilty in the case. On Aug. 29, 2016, Edwin Fana pleaded guilty to similar charges in this matter, and is scheduled to be sentenced on Dec. 22, 2016.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Second Individual Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A West Palm Beach, Florida, resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Jose Santana, aka Octavio Perez, 53, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Santana and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States.
Santana admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach using the alias Octavio Perez. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, Santana’s co-conspirators would then transmit thousands of international calls over the internet to Santana’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts, he admitted.
In addition, Santana admitted that from December 2010 through October 2011, co-conspirators sent him more than 1,000 emails containing telecommunications identifying numbers associated with cellphone account holders around the United States. According to the plea agreement, Santana was personally responsible for than $150,000 in loss resulting from the scheme.
Santana is the second defendant to plead guilty in the case. On Aug. 29, 2016, Edwin Fana pleaded guilty to similar charges in this matter, and is scheduled to be sentenced on Dec. 22, 2016.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Scranton Man Indicted for Sex Trafficking, Drug Trafficking, and Attempted Witness TamperingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a federal grand jury in Scranton returned an indictment on October 25, 2016, charging a Scranton man with sex trafficking by force, fraud, and coercion, drug trafficking, and attempting to tamper with a witness.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Mark Cook, age 38, who used the street name of “Lucky,” conspired with others to commit sex trafficking by force, fraud or coercion involving three female victims; distributed heroin, cocaine, and “molly”; and attempted to tamper with a witness. It is alleged that all of the offenses occurred between April 2015 and October 2016.
According to the indictment, Cook used a website to post advertisements for prostitution, rented hotel rooms in Scranton, Wilkes-Barre, and the Poconos for prostitution purposes, and used intimidation, threats, physical assaults, and illegal drugs to further the prostitution business.
The charges against Cook resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Scranton Police. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
The four sex trafficking offenses each carry a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of life in prison. The drug charge and attempted witness tampering charge each carry a potential maximum sentence of 20 years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative
launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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San Angelo Man Who Used His Residence as a Multi-Pound Methamphetamine Stash Site Remains in Federal CustodyRead the Press Release
LUBBOCK, Texas — Benny T. Martinez, 37, of San Angelo, Texas, made his initial appearance today before U.S. Magistrate Judge E. Scott Frost on a complaint, unsealed today, charging possession with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Frost ordered that Martinez remain in federal custody. A preliminary hearing is set for November 9, 2016.
The investigation began when the Texas Department of Public Safety (DPS) received information that Martinez resided at a location that was being used as a multi-pound methamphetamine stash site, and that Martinez was responsible for the distribution of multiple pounds of methamphetamine, per month, throughout the San Angelo area.
A search warrant was executed at Martinez’s residence on Wilma Lane on October 21, 2016. Martinez was located exiting the west bedroom of the residence. The search of the residence revealed 2,188 gross grams of methamphetamine in the ceiling of the pantry, as well as two .22 caliber rifles, approximately $13,700 in cash, a vacuum sealer and food saver bags, a digital scale, rolls of plastic, and adulterants consistent with those used to dilute controlled substances. The search yielded an additional 6,279 gross grams of methamphetamine buried on the north side of an outbuilding, in a small garden.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the charged offense is not less than 10 years or up to life in federal prison and a $10 million fine.
The matter is being investigated by Texas DPS, the San Angelo Police Department, the Drug Enforcement Administration, and the Tom Green County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Sallisaw Man Sentenced to 13 Months for Firearms TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that GREGORY McINTYRE, age 19, of Sallisaw, Oklahoma, was sentenced to 13 months imprisonment for STEALING FIREARMS FROM A FEDERAL FIREARMS LICENSED DEALER, in violation of Title 18, United States Code, Sections 924(m) and 2.
The Indictment alleged that from on or about August 29, 2015, in the Eastern District of Oklahoma, McINTYRE did knowingly steal from Gems Gun & Pawn, a federal licensed firearms dealer, all of which had been shipped and transported in interstate commerce either before or after being stolen.
The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco and Firearms.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Timothy Hammer represented the United States.
Readout of Attorney General Loretta E. Lynch Meeting with Turkish Minister of Justice Bekir BozdağRead the Press Release
Attorney General Loretta E. Lynch and Turkish Minister of Justice Bekir Bozdağ met today to discuss law enforcement and counterterrorism cooperation between the United States and Turkey, including cooperation on extradition. In particular, the Attorney General and the Minister of Justice discussed that, pursuant to the U.S./Turkey Extradition Treaty, in both countries extraditions are subject to the judicial process, and accordingly must meet the evidentiary standards of the requested country. The Attorney General and the Minister of Justice both pledged that their departments will continue their ongoing close and full cooperation.
Prison inmate indicted for threatening federal judgesRead the Press Release
A five-count Indictment charging Joseph A. Huber, 47, formerly of Cleveland, with threatening to kill two federal judges and to blow up the federal buildings they respectively preside in, said U.S. Attorney Carole S. Rendon and U.S. Marshal Peter J. Elliott.
The indictment alleges that on September 26, 2016, Huber wrote a letter to Cleveland-based U.S. District Court Judge Christopher A. Boyko and threatened to kill him and members of his family. In that same letter, Huber additionally threatened to blow up the “fancy federal building” where Judge Boyko presides and kill a federal prosecutor that previously convicted Huber in 2014.
The Indictment next alleges that on September 26, 2016, Huber wrote a letter to Akron-based U.S. Magistrate Judge Kathleen B. Burke and threatened to kill her for dismissing a civil suit Huber had previously filed. Like the letter to Judge Boyko, Huber threatened to blow up the federal courthouse where Magistrate Judge Burke presides.
Finally, the Indictment alleges that on October 6, 2016, Huber wrote another letter to Magistrate Judge Burke and threatened to kill her.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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 case is being prosecuted by Assistant U.S. Attorney Benedict S. Gullo. The case was investigated by the United States Marshal’s Service—Office of Protective Intelligence.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Press Release by United States Attorney Relating to November 2016 ElectionsRead the Press Release
United States Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands (NMI) announced today that Assistant United States Attorney (AUSA) Marivic David will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016 general elections. AUSA David has been appointed to serve as the District Election Officer (DEO) for the District of Guam and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Limtiaco said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Limtiaco stated that AUSA/DEO Marivic David will be on duty while the polls are open. She can be reached by the public at the following telephone number: 671-479-4120.
In addition, the FBI will have Special Agents available in each Field Office and Resident Agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI can be reached by the public by calling 671-688-0373.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Limtiaco said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Press Release by United States Attorney Relating to November 2016 ElectionsRead the Press Release
United States Attorney Deborah R. Gilg announced today that Assistant United States Attorney (AUSA) Laurie Kelly will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Kelly has been appointed to serve as the District Election Officer (DEO) for the District of Nebraska, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Gilg said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. I have every confidence in the integrity of our election process in Nebraska. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Gilg stated that AUSA/DEO Kelly will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (402) 661-3700.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (402) 493-8688.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Gilg said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Presque Isle Man Sentenced to Four Years for Bath Salts Distribution ConspiracyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Andrew Grivois, 32, of Presque Isle, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to four years in prison and three years of supervised release for conspiring to distribute bath salts. The defendant pled guilty to the charge on March 3, 2016.
According to court records, between about June 2012 and June 2014, Grivois conspired with others in Aroostook County to obtain and distribute bath salts. On multiple occasions, Grivois ordered bath salts over the internet from China for personal use and to sell to other conspirators.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency with assistance from the Aroostook County Sheriff’s Department and the U.S. Postal Inspection Service.
Pennsylvania Man Sentenced Today to 18 Months in Federal Prison for Hacking Apple and Google E-Mail Accounts Belonging to More Than 100 People, Including Many CelebritiesRead the Press Release
LOS ANGELES – A Pennsylvania man was sentenced today on felony computer hacking charges related to his illegal access of over 100 Apple and Google e-mail accounts, including those belonging to members of the entertainment industry in Los Angeles.
Ryan Collins, 36, of Lancaster, Pennsylvania, was sentenced in United States District Court in Harrisburg, Pennsylvania to 18 months in federal prison for a felony violation of the Computer Fraud and Abuse Act. He was taken into custody immediately after sentencing.
Collins pled guilty in May to one count of unauthorized access to a protected computer to obtain information. Collins was originally charged in Los Angeles, but the parties agreed to transfer the case to Harrisburg in the Middle District of Pennsylvania, near Collins’ home, for the entry of his guilty plea and sentencing.
The case against Collins stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014, known as “Celebgate.” Investigators have not uncovered any evidence linking Collins to the actual leaks or that Collins shared or uploaded the information he obtained, however.
“Hackers violate federal law whenever they access private information stored online and in digital devices,” said Eileen M. Decker, United States Attorney for the Central District of California. “Today people store important private information online and in their digital devices, which is why my office is deeply committed to holding hackers accountable, even when they do not sell or distribute the stolen data.”
From November 2012 until the beginning of September 2014, Collins engaged in a sophisticated phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from Apple or Google and asked victims to provide their usernames and passwords.
When the victims responded, Collins then had access to the victims’ e-mail accounts. After illegally accessing the e-mail accounts, Collins obtained personal information including nude photographs and videos. In some instances, Collins would use a software program to download the entire contents of the victims’ Apple iCloud backups. In addition, Collins ran a modeling scam in which he tricked his victims into sending him nude photographs.
Investigators identified over 600 victims, many of whom were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Collins accessed at least 50 iCloud accounts and 72 Gmail accounts, many of which belonged to female celebrities.
"The defendant intruded into the online accounts of hundreds of victims and in doing so, intruded upon their lives, causing lasting distress," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The prison sentence received by Mr. Collins is proof that hacking into the accounts of others and stealing private information or images is a crime with serious consequences."
The case against Ryan Collins was investigated by FBI agents based in Los Angeles, and the plea agreement was negotiated by Assistant United States Attorneys Ryan White and Vicki Chou in the United States Attorney’s Office in Los Angeles. The United States Attorney’s Office for the Middle District of Pennsylvania assisted in the prosecution by handling the guilty plea and sentencing.
Over 20 Individuals Indicted on Heroin Trafficking ChargesRead the Press Release
Concord, New Hampshire – United States Attorney Emily Gray Rice and Michael J. Ferguson, the Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, announced today that over 20 individuals recently were indicted in federal court in Concord in connection with their participation in heroin trafficking activities.
On October 5, 2016, the following individuals were charged by indictment with participating in a conspiracy that distributed over one kilogram of heroin:
- Alberto Guerrero Marte, 33, of Lowell, Mass.;
- Santos Guerrero Morillo, 36, of the Dominican Republic;
- Michell DeJesus, 36, of Lowell, Mass.;
- FNU LNU (FIRST NAME UNKNOWN LAST NAME UNKNOWN), a/k/a Luis Rodriguez Lugo, a/k/a Boss, of Lawrence, Mass.;
- FNU LNU, a/k/a Maribel Santiago-Ramos, a/k/a La Cuna, a/k/a Miguelina, of Lawrence, Mass.;
- Allison DeJesus, 18, of Lawrence, Mass.;
- Jonaly DeJesus, 21, of Lawrence, Mass.;
- Allan Raymond Pimentel, 20, of Lawrence, Mass.;
- Santo Rodolfo Garcia Mendez, 32, of Lawrence, Mass.;
- Wilkin Andre Beltre Arias, 38, of Lawrence, Mass.;
- Heibrahim DelValle Baez, 32, of Salem, Mass.;
- Alfredo Gonzalez, 49, of Manchester, NH;
- Querzon Baez, 34, of Lawrence, Mass.;
- Pedro Carlos Vicente Guerrero a/k/a Omar Camacho, 47, of Lawrence, Mass.;
- FNU LNU, a/k/a Tony, a/k/a Edward Garcia, a/k/a Eric Guerrero, 30, of Lawrence, Mass.; and
- FNU LNU, a/k/a Jose Pimentel, a/k/a Todolindo, a/k/a El Lindon, a/k/a Lindy, 25, of Lawrence, Mass.
On the same day, a second related indictment charged the following individuals with conspiring to distribute heroin:
- Ramon Rodriguez, 70, of Methuen, Mass.;
- Amy Tremblay, 35, of Haverhill, Mass.;
- Judith Ardolino, 53, of Haverhill, Mass.;
- Mary Levis, 59, of Haverhill, Mass.;
- Gayle McNamara, 55, of Lawrence, Mass.;
- Kevin Roche, 49, of Haverhill, Mass.;
- Jessica Sederquest, 37, of Manchester, NH;
- Eric Sederquest, 35, of Manchester, NH; and
- Stephen J. Tolmie, 53, of Raymond, NH.
FNU LNU a/k/a Tony, a/k/a Edward Garcia, a/k/a Eric Guerrero, 30, of Lawrence, Mass., also has been charged in a separate indictment with two counts of distribution of fentanyl and one count of conspiracy to distribute fentanyl.
Between October 12, 2016 and October 25, 2016, almost all of the above individuals have been arrested or were already in custody on other charges. Heibrahim DelValle Baez and Santos Guerrero Morillo remain fugitives.
“Solving the opiate epidemic in New England requires a multi-pronged approach. Part of that solution is to prosecute individuals who are responsible for distributing heroin and who profit on the addiction of others. The U.S. Attorney’s Office will continue to work with our law enforcement partners to identify and prosecute individuals who are responsible for the distribution of heroin, fentanyl, and other opiates. This case is an example of the tremendous partnership among law enforcement agencies. I commend all of the agencies involved in this case for their teamwork and dedication in this investigation,” U.S. Attorney Rice said.
"DEA is addressing the threat of heroin and fentanyl, both internationally and domestically. We prioritize our resources by identifying, targeting and destroying these extremely violent and very organized cartels,” said Special Agent in Charge Michael J. Ferguson. “DEA and its law enforcement partners have effectively dismantled the distribution and facilitation elements of this organization that are responsible for putting this poison on the streets of New Hampshire as well as throughout New England. DEA will aggressively pursue organizations or individuals who facilitate heroin and fentanyl by allowing out of state dealers to utilize their residences and provide customers to the dealers in order to profit and destroy people’s lives, and wreak havoc in the Granite State.”
The indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Donald Feith.
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November 2016 ElectionsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ------ Acting United States Attorney Beth Drake announced today that Assistant United States Attorneys (AUSA) Barbara M. Bowens and John Potterfield will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Bowens and AUSA Potterfield have been appointed to serve as the District Election Officers (DEO) for the District of South Carolina, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
Acting United States Attorney Drake said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to make their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, Acting United States Attorney Drake stated that AUSA Bowens and AUSA Potterfield will be on duty in this District while the polls are open. AUSA Bowens and AUSA Potterfield can be reached by the public at the following telephone numbers: (803) 929-3052 and (803) 929-3092, respectively.
In addition, the FBI will have special agents available in each field office and resident agency offices throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (803) 551-4200.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Acting United States Attorney Drake said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
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New Orleans Man Sentenced for Drug and Gun ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARION TINSON, age 34, of New Orleans, was sentenced today after previously pleading guilty to two counts of an Indictment charging violations of the Federal Controlled Substances Act and the Federal Gun Control Act.
U.S. District Judge Kurt D. Engelhardt sentenced TINSON to 90 months imprisonment followed by 5 years of supervised release.
According to court documents, during a search of a residence where TINSON was living, agents located approximately 2 ounces of heroin in a bedroom, as well as a stolen Taurus .45 semi-automatic pistol in close proximity to the suspected heroin. Additionally, agents seized a scale, suspected marijuana, and approximately $2,000 in U.S. currency in the nightstand of the master bedroom. In post arrest interviews, TINSON admitted that the heroin and gun were his. TINSON pled guilty to possession with the intent to distribute a mixture or substance containing a detectable amount of heroin, a Schedule I controlled, and possession a firearm in furtherance of his drug trafficking.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
November 2016 ElectionsRead the Press Release
United States Attorney Rosa Emilia Rodríguez-Vélez announced today that her office will lead the efforts of an Election Crimes Task Force in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. The task force includes Assistant U.S. Attorneys and special agents from the FBI’s Corruption Squad and Cybercrimes Unit who have been assigned to investigate any violations of federal election laws. The Department of Homeland Security’s Critical Infrastructure team will also collaborate with this group of investigators and prosecutors. The task force will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Rodríguez-Vélez said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Rodríguez-Vélez stated that the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 787-754-6000.
Complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767 or by TTY (202-305-0082). In addition, individuals may also report complaints, problems or concerns related to voting by fax 202-307-3961, by mail to [email protected] and by complaint forms that may be submitted through a link on the department’s website: https://www.justice.gov/crt/voting-section.
United States Attorney Rodríguez-Vélez said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Morris Man Indicted in Attempted Murders of Two DEA Task Force OfficersRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a Morris man on attempted murder charges for allegedly trying to kill two DEA Task Force officers during an undercover drug sting in Joliet.
ADAN GODINEZ, 31, of Morris, tried to kill the officers during an undercover operation in a parking lot of the Louis Joliet Mall on Aug. 30, 2016, according to the indictment. In addition to the attempted murder charge, the indictment charges him with one count of conspiracy to possess with the intent to distribute a controlled substance, one count of possession with the intent to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of brandishing and discharging a firearm during a crime of violence.
A co-defendant, FERNANDO GODINEZ, 44, of Cicero, was also at the scene of the undercover operation. He is charged in the indictment with one count of conspiracy to possess with the intent to distribute a controlled substance, one count of possession with the intent to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a convicted felon in possession of a firearm.
Arraignments are scheduled for Oct. 27, 2016, at 11:30 a.m., before U.S. Magistrate Judge Susan E. Cox.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the Drug Enforcement Administration. The Joliet Police Department provided valuable assistance.
The sting operation was arranged after Adan Godinez agreed to sell cocaine to an individual who, unbeknownst to Godinez, was an undercover Task Force officer for the DEA, according to a criminal complaint previously filed in the case. The defendants drove together to meet the undercover, at which point Adan Godinez got out of their car and entered the undercover’s vehicle, the complaint states. After Adan Godinez provided the cocaine to the undercover, other law enforcement personnel approached to arrest him, according to the complaint. Adan Godinez saw law enforcement personnel approaching, got out of the officer’s vehicle, pulled out a firearm and shot at the officers, the complaint states. An exchange of gunfire ensued.
Adan Godinez was wounded but survived. No officers were injured. Both defendants were arrested in the mall parking lot, and they have remained in custody without bond.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The charges against Adan Godinez carry a mandatory minimum sentence of 35 years in prison, and a maximum sentence of life in prison. The charges against Fernando Godinez are punishable by a mandatory minimum sentence of 10 years, and a maximum of life in prison.
The government is represented by Assistant U.S. Attorneys Brian S. Wallach and Richard M. Rothblatt.
Montana Couple Plead Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
POCATELLO – David Vance Taylor, 62, and Bambi Sue Tomlin, 54, of Billings, Montana, pleaded guilty yesterday to possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Taylor and Tomlin were indicted by a federal grand jury in Pocatello on July 26, 2016.
According to the plea agreement, on June 7, 2016, Taylor and Tomlin were arrested in Bingham County by the Idaho State Police following a traffic stop. During the stop, the officer smelled marijuana coming from the vehicle and conducted a search, discovering more than 800 grams of actual methamphetamine and 2 grams of marijuana in the vehicle. Taylor and Tomlin admitted that they picked up the methamphetamine in Las Vegas and were transporting it through Idaho along Interstate 15 to be delivered to a third party in Billings, Montana.
As charged, possession with intent to distribute methamphetamine is punishable by at least ten years and up to life in prison, a maximum fine of $10,000,000, and at least five years of supervised release.
Sentencing is set for January 4, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Bingham County Prosecutor’s Office and the Idaho State Police. It is being prosecuted by the Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 12 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Michigan Owners of Sixteen Adult Foster Care Homes Indicted for Failure to Pay Employment TaxesRead the Press Release
A federal grand jury returned an indictment on Oct. 19 and unsealed today, charging the owners of adult foster care homes located throughout Michigan with 60 counts of failing to 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 indictment, Jeremiah and Nicolette Cheff of Grand Blanc, Michigan, controlled the financial and business operations of 16 foster care homes, including Hunter’s Home, Nico’s Place, Harmony Manor, Hilltop Estates and Deerwood Manor, which cared for individuals with mental illnesses and developmental and physical disabilities. It is alleged that from September 2010 through September 2014, the Cheffs withheld payroll taxes from their employees’ paychecks, failed to timely file employment tax returns, and failed to pay over the funds they withheld to the Internal Revenue Service (IRS).
If convicted, the Cheffs face a statutory maximum penalty of five years in prison for each count charged in the indictment, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey A. McLellan and Carl F. Brooker, IV of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Michigan for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Maryland Man Admits Stealing Works of Art and Selling Them in Southern New JerseyRead the Press Release
CAMDEN, N.J. - A Rock Hall, Maryland, man today admitted stealing at least 40 pieces of art and bringing them to New Jersey to sell them, U.S. Attorney Paul J. Fishman announced.
William C. Reed III, 42, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of interstate transportation of stolen property.
According to documents filed in this case and statements made in court:
Starting in June 2013, Reed was employed as a caretaker for an individual in Rock Hall. Reed’s client was an art collector and dealer, who collected and maintained an eclectic collection of fine art by American and European artists. The collection included paintings, sculptures and etchings.
Between June 2014 and November 2014, Reed took various works of art from his client’s Rock Hall property without his permission and sold the art at various locations, including a pawn shop in Salem, New Jersey, and to an individual in Chestertown, Maryland.
The interstate transportation of stolen property charge to which Reed pleaded guilty carries a maximum potential penalty of 10 years in prison and $250,000 fine. Reed's sentencing is scheduled for Feb. 3, 2017.
U.S. Attorney Fishman credited special agents of the FBI’s Art Crime Team, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation leading to today’s plea. Fishman also thanked the Rock Hall Police Department, under the direction of Chief Steven W. Moore, for its assistance in this case.
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: Lisa Lewis Esq., Camden
Lawrence Man Sentenced to over 24 Years in Prison on Charges Related to Distribution of Fentanyl, Heroin and CocaineRead the Press Release
BOSTON – The leader of a Lawrence drug trafficking organization that imported fentanyl, heroin and cocaine from Mexico, the Dominican Republic, and elsewhere, into Massachusetts and the northeast was sentenced on Monday, Oct. 24, 2016.
Jerri Martinez-Tejeda, 32, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 292 months in prison, three years of supervised release and a fine of $400,000. In June 2016, Martinez-Tejeda pleaded guilty to conspiracy to possess with intent to distribute and distribution of fentanyl, heroin and cocaine; conspiracy to launder money; and unlawful reentry of a deported alien.
During the course of a three-day sentencing hearing, evidence showed that Martinez-Tejeda arranged for the transport of nine kilograms of fentanyl from California to Massachusetts. Along the way, federal agents arranged for the Oklahoma Highway Patrol to stop the pickup truck in which the drugs were being transported. After hearing about the police stop, Martinez-Tejeda and his associates initially thought the drug couriers were lying since they were not immediately taken into custody. So Martinez-Tejeda hired an enforcer to go to Oklahoma to kidnap and torture the couriers until they admitted their scheme. Only by taking the couriers into custody was this violent plan thwarted.
The Court also heard testimony that Martinez-Tejeda was responsible for laundering at least $1.1 million over the course of five and one-half months. At the time of Martinez-Tejeda’s arrest on July 12, 2015, there was over $500,000 being counted and prepared for transport at Martinez-Tejeda’s house for payment to his Mexican drug supplier, along with drug trafficking paraphernalia including electronic scales, grinders, a hydraulic kilo press, drug ledgers and two handguns.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement. Assistant U.S. Attorney Thomas E. Kanwit of Ortiz’s Narcotics and Money Laundering Unit is prosecuting the case.
Knoxville Couple Sentenced for Tax Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – Bertha Del Pilar Vargas, 48, and her husband, Martin Ayala, 45, both of Knoxville, Tenn., were sentenced on Oct. 26, 2016, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, for their participation in tax fraud and money laundering conspiracies. Vargas was sentenced to serve 34 months in federal prison. Ayala received a prison sentence of 37 months. Both were ordered to forfeit to the United States, more than $40,000 in currency seized by federal investigators and a money judgment of $2.4 million.
In June, 2016, Vargas and Ayala each pleaded guilty to conspiracy to defraud the United States through the submission of fraudulent federal income tax returns and conspiracy to commit money laundering. Their offenses were part of a scheme that involved the use of phony identification documents for the submission of fraudulent federal income tax returns in order to obtain refundable tax credits. The scheme resulted in the theft of more than $10.8 million from the U.S. taxpayers.
Agencies involved in this investigation included the Internal Revenue Service, Homeland Security Investigations, U.S. Postal Inspection Service, and Tennessee Highway Patrol Identity Crimes Unit. Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States.
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Kissimmee Resident Sentenced to More than 17 Years for Wire FraudRead the Press Release
Yesterday, a Kissimmee, Florida resident was sentenced to more than seventeen years in prison, after having been convicted at trial of wire fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Michael John Alcocer Roa, 34, of Kissimmee, Florida, was previously convicted at trial by a jury of five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. U.S. District Court Senior Judge Patricia A. Seitz sentenced Alocer to 210 months’ imprisonment, to be followed by 3 years of supervised release. A restitution hearing is scheduled for December 13, 2016 at 10:00 a.m.
According to the court record, including testimony and evidence presented at trial, Alcocer set up a Florida corporation called Inovatrade Inc. (“Inovatrade”) in October 2008. Between 2008 and 2011, Alcocer told people that they could trade foreign currencies at Inovatrade, set up managed accounts in which others could trade foreign currencies on their behalf, or earn guaranteed interest payments of approximately 15% per year or greater. Alcocer also represented that Inovatrade maintained all of its clients’ accounts segregated, safeguarded, and protected in a trust account.
Evidence at trial showed that based on those and other representations, approximately 300 individuals and entities sent Inovatrade over $7 million. Many of those individuals and entities received documents from Inovatrade purporting to show their account balances, as well as trading activity in their accounts or monthly interest and other promotional payments earned. But when individuals requested to withdraw their money from Inovatrade, many were unable to do so. Alcocer and Inovatrade provided various, and often inconsistent, excuses, and after some time, many of the individuals and entities received no more communications, nor did they receive their money.
Financial summaries of bank records associated with Inovatrade and Alcocer introduced at trial showed that little to no actual trading took place in the Inovatrade accounts, the vast majority of the money that entered the Inovatrade accounts came from individuals and entities rather than from business revenue, and Alcocer cashed out and transferred millions of dollars of that money from the Inovatrade accounts to personal accounts in the United States and in Panama.
Mr. Ferrer commends the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorneys John P. Gonsoulin and Vanessa S. Snyder.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Kenner Woman Sentenced for Theft of Public MoneyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NISIKA WEST, age 36, of Kenner, was sentenced today after previously pleading guilty to a three-count Indictment charging her with theft of public money
U.S. District Judge Kurt D. Engelhardt sentenced WEST to one year imprisonment, followed by three years of supervised release. Additionally, WEST was ordered to pay $177,045.61 in restitution to the Internal Revenue Service.
According to court records, between in or about March 2012 and May 2012, WEST knowingly took money from the United States Department of the Treasury through the filing of fraudulent income tax returns. An investigation by the IRS revealed that the fraudulent tax returns were filed using the defendant’s Electronic Filing Identification Number under the name West Tax Service. Illicit refunds were then deposited into the defendant’s bank accounts and withdrawn by the defendant.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney G. Dall Kammer was in charge of the prosecution.
Justice Department Settles Pregnancy and Disability Discrimination Lawsuit Against City of Florence, KentuckyRead the Press Release
The Justice Department filed a proposed consent decree with the city of Florence, Kentucky, to resolve a pregnancy and disability discrimination lawsuit brought by the department under Title VII of the Civil Rights Act of 1964 and Title I of the Americans with Disabilities Act (ADA).
According to the department’s complaint, Florence discriminated against two pregnant police officers by denying both officers’ requests for light duty. The department alleges that Florence previously assigned light duty positions to employees who were temporarily unable to perform their regular job duties, regardless of why the employee needed light duty. In April 2013, within months of a police officer’s pregnancy-related light duty request, Florence limited light duty to employees with on-the-job injuries. Florence also required that employees with non-work-related illnesses, injuries or conditions demonstrate that they had “no restrictions” before they could return to work.
In 2014, according to the department’s complaint, Police Officers Lyndi Trischler and Samantha Riley requested light duty when they were unable to perform their duties as patrol officers due to their pregnancies. Officer Trischler, who was diagnosed with a high-risk pregnancy and suffered complications, also requested light duty as a reasonable accommodation for her pregnancy-related disability. Florence denied the requests and required each to take leave. After placing Officers Trischler and Riley on leave, Florence continued to grant light duty to other employees who were similar in their ability or inability to work.
This is the department’s first lawsuit challenging a discriminatory light duty policy since the U.S. Supreme Court’s ruling regarding light duty policies and pregnant employees in Young v. United Parcel Service. It is also the department’s first lawsuit challenging disability-related “no restrictions” policies in the workplace.
“No woman should ever have to choose between having a family and earning a salary,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Equally important, individuals with disabilities who need reasonable accommodations deserve an opportunity to keep their jobs. The Justice Department will continue working tirelessly to protect pregnant women against unlawful discrimination in the workplace.”
Under the consent decree, which still must be approved by the U.S. District Court for the Eastern District of Kentucky, Florence will adopt new policies that allow accommodations, including light duty, for pregnant employees and employees with disabilities; establish an effective process for receiving and responding to employees’ accommodation requests and discrimination complaints; and ensure the proper maintenance of employee medical records. In addition, Florence will train all supervisors, administrators, officers and employees who participate in making personnel decisions related to light duty and other accommodation requests made pursuant to Title VII and the ADA. Florence has also agreed to pay $135,000 in compensatory damages and attorney’s fees as well as restore the paid leave that Officers Trischler and Riley were forced to use.
“Providing pregnant employees with light duty when appropriate can be a critical reasonable accommodation,” said Chair Jenny R. Yang of the Equal Employment Opportunity Commission (EEOC). “In 2015, the EEOC issued updated pregnancy discrimination guidance explaining that light duty policies that accommodate some workers but refuse to accommodate pregnant women may run afoul of the law. The comprehensive guidance provides information to assist employers in developing, disseminating and enforcing strong policies consistent with the requirements of Title VII and the ADA.”
“We are working closely with our colleagues at the DOJ’s Civil Rights Division and this consent decree is an excellent result of the partnership between the EEOC and the DOJ,” said Director Michelle Eisele of the EEOC’s Indianapolis District Office. “We look forward to future successful collaborations.”
Officers Trischler and Riley are represented by the non-profit advocacy organization, A Better Balance, and the law firm Outten & Golden LLP. They originally filed charges of discrimination with the Equal Employment Opportunity Commission. The EEOC’s Cincinnati Office investigated the charges, determined that there was reasonable cause to believe that discrimination had occurred and referred the charges to the department.
The case is being handled by Trial Attorneys Catherine Sellers of the Civil Rights Division’s Employment Litigation Section and Elaine Grant of the Civil Rights Division’s Disability Rights Section.
The continued enforcement of Title VII and the ADA is a priority of the Civil Rights Division. More information about Title VII, the ADA and other federal employment laws is available at www.justice.gov/crt. Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Florence Complaint Florence Consent DecreeJustice Department Requires Divestiture of Faiveley Transport’s U.S. Freight Car Brakes Business Before Wabtec AcquisitionRead the Press Release
Divestiture Will Preserve Competition for Railcar Freight Brake Systems and Components in the United States
The Department of Justice announced today that it will require Westinghouse Air Brake Technologies Corporation (Wabtec) to divest Faiveley Transport North America’s (Faiveley) entire U.S. freight car brakes business in order for Wabtec to proceed with its proposed approximately $1.8 billion acquisition of Faiveley Transport S.A. and Faiveley Transport North America.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“The safe and efficient passage of goods throughout the United States freight rail network is crucial to the American economy and depends on sufficient competition for freight car brake systems and components,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “The acquisition as originally proposed would have eliminated Faiveley as one of only three major companies that supplies freight car brake components in the U.S. and eliminated Faiveley as a pipeline competitor in the development, manufacture and sale of freight car control valves – essentially freezing a century-old duopoly in that market.”
The proposed settlement includes a divestiture of Faiveley’s entire U.S. freight car brakes business which develops, manufactures and sells freight car brake systems and components including: air brake control valves, hand brakes, slack adjusters, truck-mounted brake assemblies, empty load devices and brake cylinders. The divestiture also includes Faiveley’s FTEN control valve, a freight car brake control valve under development that will be available for full commercialization after approval from the Association of American Railroads.
The department believes the proposed divestiture addresses the competitive concerns raised by this transaction as originally proposed. Under the terms of the proposed consent decree, Wabtec must divest Faiveley’s entire U.S. freight brakes business to a single independent buyer approved by the United States. Wabtec has proposed that the divestiture be sold to Amsted Rail Company Inc. (Amsted Rail). Amsted Rail is a unit of Amsted Industries, a privately held company, based in Chicago. It is a leader in manufacturing railroad freight car undercarriage components and end-of-car systems for the freight rail industry. Amsted Rail’s revenues in 2015 totaled approximately $2 billion.
Wabtec, based in Pennsylvania, is a global rail equipment supplier. Wabtec provides a wide range of equipment used on freight railcars, including components of freight car brake systems used in the U.S. freight rail network, and is a dominant supplier of complete freight brake systems in the United States. In 2015, Wabtec’s worldwide revenues were $3.3 billion, of which revenues from its freight business were approximately $2 billion.
Faiveley Transport North America, headquartered in Greenville, South Carolina, is a wholly-owned subsidiary of Faiveley Transport S.A., a French corporation. Faiveley Transport S.A. makes and sells rail equipment, including braking equipment, for a variety of train applications to customers in 24 countries, including the United States. During the fiscal year ending March 31, 2016, Faiveley had global sales of approximately €1.1 billion with approximately $174 million in revenue in the United States.As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Wabtec-Faiveley CIS
Wabtec-Faiveley Complaint
Wabtec-Faiveley Hold Separate
Wabtec-Faiveley PFJ
Jury Convicts Queens Man of Transporting AliensRead the Press Release
ALBANY, NEW YORK – A jury voted today to convict Harpushpinder Singh, age 46, of Queens, New York, of transporting aliens in the United States.
The announcement was made by U.S. Attorney Richard S. Hartunian and John C. Pfeifer, U.S. Border Patrol’s Chief Patrol Agent for the Swanton Sector.
The jury reached its verdict after a 3-day trial. The evidence at trial demonstrated that Singh transported two Indian nationals, knowing they were in the country illegally. On June 12, 2016, he transported them from Champlain, New York, to North Hudson, New York, where he was detained by Border Patrol at an immigration checkpoint off the New York State Northway.
Singh faces up to 5 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on March 14, 2017 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Johnstown Man Admits Committing Drug and Gun OffensesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Tony U. Atwood, 44, of Johnstown, Pa., pleaded guilty to four counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on June 4, 2014, Atwood distributed less than 100 grams of heroin, and he possessed less than 100 grams of heroin with the intent to distribute it on June 4, 2014, and again on January 20, 2016. In addition, also on June 4, 2014, Atwood, who had been convicted in 1995 in Cambria County, Pennsylvania, of Drug Act/Possession with the intent to deliver a controlled substance, unlawfully possessed a Titan semi-automatic pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Drug Act/Possession with the intent to deliver a controlled substance is such a crime.
Judge Gibson scheduled sentencing for March 2, 2017, at 10 a.m. The law provides for a maximum total sentence of 70 years in prison, a fine of $3,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Atwood.
According to Mr. Hickton, Atwood is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Iowa City Head Shop Owner Pleads Guilty to Conspiring to Distribute Synthetic DrugsRead the Press Release
The former owner of Zombies, a head shop in Iowa City, pled guilty today in federal court in Cedar Rapids.
Hadi Sharairi, age 45, from Coralville, Iowa, was convicted of one count of conspiring to distribute drugs called AB-FUBINACA and THJ-2201 between February and May 2014. AB-FUBINACA was a Schedule I controlled substance and THJ-2201 was a controlled substance analogue during that time period. Under federal law, drugs that are similar to substances listed in the controlled substance schedules are considered “controlled substance analogues,” and it is unlawful to distribute them just as it is illegal to distribute substances on the controlled substance schedules, such as cocaine, heroin, or marijuana.
Testimony at a hearing on June 21, 2016, showed Sharairi was the former owner of Zombies, a head shop located in Iowa City. An officer testified that Sharairi was warned by the Iowa City Police Department in June 2013 not to sell synthetic cannabinoid products (commonly known as “K2,” “Spice,” or “incense”). In May 2014, however, law enforcement searched Zombies and a storage unit associated with the business and found packages labeled “Bizarro,” which contained THJ-2201, and other packages labeled “Super Nova,” which contained AB-FUBINACA.
The investigation of Sharairi and raids of his business, home, and other related locations in May 2014 were a part of a coordinated DEA takedown called Project Synergy Phase II. The second phase of Project Synergy, which began January 2014, culminated on May 7, 2014, in 29 states, and involved more than 45 DEA offices serving nearly 200 search warrants. On that date, authorities seized hundreds of thousands of individually packaged, ready-to-sell synthetic drugs as well as hundreds of kilograms of raw synthetic products to make thousands more. Additionally, more than $20 million in cash and assets were seized.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Sharairi was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Sharairi faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
The case was investigated by the Iowa City Police Department and as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-48-1-LTS.
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Hollister Resident Sentenced to Two and A Half Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
SAN JOSE – Christian Arballo was sentenced to 30 months’ imprisonment after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down yesterday by the Honorable Beth Labson Freeman, United States District Judge, following a guilty plea entered on April 19, 2016.
As part of his plea agreement, Arballo, 41, of Hollister, admitted that he had two previous criminal convictions, each of which prevented him from being entitled to legally possess firearms or ammunition. Nevertheless, on August 10, 2015, Arballo possessed two assault rifles, including a commercial variant of the AK-47, as well as approximately 1,222 rounds of ammunition in four different calibers.
Arballo was indicted on August 20, 2015, and charged with one count of being a felon in possession of firearms and ammunition, in violation of 18 U.S.C. § 922(g)(1), and one count of being a person convicted of a misdemeanor domestic violence offense in possession of firearms and ammunition, in violation of 18 U.S.C. § 922(g)(9). Pursuant to his plea agreement, he pleaded guilty to the first count and admitted the conduct in the second count, which was dismissed.
In addition to the prison term, Judge Freeman sentenced Arballo to a three-year period of supervised release that will commence after he completes his prison sentence. The defendant has been on pretrial release since August 19, 2015, and will begin serving his sentence on January 2, 2017.
Assistant U.S. Attorney Jonas Lerman is prosecuting the case with assistance from Elise Etter. The prosecution is the result of an investigation by the ATF.
Greenville Man Sentenced for Possession of Firearm by A FelonRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on yesterday, United States District Judge Terrence W. Boyle sentenced DAQUEZ HOWARD, 20, from Greenville, N.C., to 72 months in prison and 3 years of supervised release for possession of a firearm by a convicted felon. HOWARD pled guilty to the charge on July 18, 2016.
The offense occurred at approximately 12:52 a.m. on January 23, 2016, when a female was in her car in the parking lot of the Food Lion store at 250 Easy Street, Greenville, NC, and a dark colored Jeep pulled beside her. The victim saw four black males in the Jeep and that the two males in back had masks on their faces. One of the back passengers pointed a handgun at her. Fearing that she was about to be robbed, the victim drove away and called 911. Within minutes a Greenville Police Officer arrived at the scene and saw a dark colored Jeep occupied by four black males leaving the parking lot. The officer stopped the Jeep and found HOWARD to be a rear passenger. While the officer was walking HOWARD to his patrol vehicle, the officer heard an object hit the pavement. The officer retrieved a loaded FIE Titan .25 caliber pistol by HOWARD’S feet. While the officer was speaking over the phone with the victim, HOWARD spontaneously said that he wasn’t wearing a mask but that he was wearing a hoodie and bandana over his face because it was cold. HOWARD is prohibited from possessing a firearm and ammunition due to his prior convictions for common law robbery, possession with the intent to sell and deliver cocaine and possession with the intent to sell and deliver marijuana.
The case was investigated by the Greenville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Greene County Man Charged with Unlawfully Possessing a RifleRead the Press Release
ALBANY, NEW YORK – Robert Twiss, age 58, of Earlton, New York, was charged yesterday with being a felon in unlawful possession of a firearm.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that on October 24, 2016, Twiss possessed a Plainfield M-1 rifle at his Greene County residence. The charge in the complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
The defendant appeared today in federal court in Albany before United States Magistrate Judge Christian F. Hummel and was ordered detained pending trial.
If convicted, Twiss faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Glen Mills Man Sentenced to 35 Years for Crimes Relating to Child Pornography and Sexual Abuse of A ToddlerRead the Press Release
Jose Gonzalez, age 34, of Glen Mills, Delaware County, Pennsylvania, was sentenced today in federal court on two counts of manufacturing child pornography, one count of distribution of child pornography, and one count of possession of child pornography, announced United States Attorney Zane David Memeger. The Honorable John R. Padova sentenced Gonzalez to 420 months’ incarceration and lifetime supervised release for crimes involving Gonzalez’ sexual abuse of a two-year old toddler. Gonzalez photographed his sexual abuse of this child and distributed the images over the Internet. The investigation also uncovered his collection of more than 19,000 images and videos of infants and toddlers being sexually assaulted that Gonzalez downloaded from the Internet.
The case was investigated by the Federal Bureau of Investigation, assisted by the Delaware County District Attorney’s Office, and was prosecuted by Assistant United States Attorney Michelle Rotella.
Four Quebec Men Charged in Fraud Scheme Involving Burlington Area ATMsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that four Quebec men were arrested on October 24, 2016 in connection with an investigation into their involvement in a fraud scheme in which the men received cash advances on access devices using compromised account information. Mathieu Baaklini, 21, of Laval, Quebec; Safwan Bensalma, 21, of Laval, Quebec; Brandon Lo, 24, of Laval, Quebec; and Nicolau Manfredi, 21, of Montreal were charged by Criminal Complaint with conspiracy to use access devices fraudulently resulting in the receipt of more than $1,000 in cash. The men appeared before U.S. Magistrate Judge John M. Conroy in Burlington on October 25, 2016 for an initial appearance. If convicted, the men face a maximum possible penalty of five years in prison and fines of up to $250,000.
According to court records, at various times between March and October 2016, the four men traveled from Quebec to Burlington, Vermont, where they used NBT Bank ATM machines in Burlington and Essex to obtain cash advances on cards using stolen account information from Canadian accountholders. ATM transaction records and bank surveillance video shows that on May 24, 2016, approximately $8,800 in cash advances were withdrawn using suspected fraudulent credit cards. Records further show that on May 25, 2016, one of the charged conspirators made $11,000 in wire transfers from Chittenden and Franklin Counties, Vermont to locations in Quebec. ATM transaction records and bank surveillance video further shows that between August 22-25, 2016, NBT Bank incurred approximately $54,000 in suspected fraud activity in the form of 500 suspected cash advances on Canadian and European credit and debit cards.
On October 21, 2016, federal agents executed a search warrant on a storage unit in Williston, Vermont, where they recovered approximately $33,000 in cash, a laptop computer, a card-reading device, and approximately 378 gift cards with markings indicating that they contained bank account information on them.
The men were arrested by Department of Homeland Security Agents at the Highgate Springs, Vermont Port of Entry as they attempted to enter the United States.
The Criminal Complaint is an accusation only and the defendants are presumed innocent until and unless proven guilty. In the event of a conviction, their sentences will be advised by the federal Sentencing Guidelines.
Homeland Security Investigations and U.S. Customs and Border Protection are conducting the investigation into this matter. Assistant U.S. Attorney Kevin J. Doyle is handling the prosecution. Baaklini is represented by Maryanne Kampmann, Esq. Bensalma is represented by Craig S. Nolan, Esq. Lo is represented by Chandler W. Matson, Esq. Manfredi is represented by Douglas G. Kallen, Esq.