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3 October 2016
Elgin Man Sentenced on Federal Fraud ChargesRead the Press Release
ROCKFORD — An Elgin resident was sentenced today by U.S. District Judge Frederick J. Kapala on federal fraud charges.
STEPHEN T. ANGERMAN, 48, of Elgin, was sentenced to 26 months in federal prison, to be followed by 3 years of supervised release. A hearing to determine the amount of restitution has been set for Oct. 21, 2016, at 2:30 p.m. before Judge Kapala.
Angerman pleaded guilty on June 24, 2016, to bank fraud, money laundering, and testifying falsely in a bankruptcy case.
In his written plea agreement, Angerman admitted that from December 2009 through March 31, 2010, he schemed to fraudulently obtain a $510,000 loan from Alliant Credit Union and a $64,590 loan from Prairie Community Bank in order to purchase a home on Wrenwood Circle in Elgin. Angerman admitted to making false statements on his loan application to Alliant about his employment, assets, and liabilities. He further admitted to submitting fictitious bank account statements, pay stubs, a W-2 earnings form, and a fraudulent Certificate of Gift form to the credit union in support of his application. Alliant issued the loan based upon Angerman’s false representations.
Angerman also admitted that in December 2009 and January 2010, he applied for and obtained a $64,590 loan from Prairie Community Bank by pledging a 2008 Chevrolet Corvette as collateral without disclosing that the Corvette was subject to a prior lien of approximately $40,000 held by another bank. Angerman further admitted in his plea agreement that he schemed to defraud PNC Bank and Consumers Credit Union in order to obtain a $69,200 loan from PNC Bank and a $69,000 loan from Consumers Credit Union by secretly double pledging his home on Wrenwood Circle in Elgin as security for both loans.
With regard to the money laundering charge, Angerman admitted that on March 23, 2010, he transferred most of the proceeds - $64,500 - from his checking account at Alliant Credit Union to an account in the name of a relative at a different bank in an attempt to conceal his bank fraud against Prairie Community Bank.
On Jan. 3, 2011, Angerman filed for bankruptcy in Rockford. Angerman admitted that on Feb. 7, 2011, he falsely testified under oath at a meeting of creditors by stating he did not own any real estate other than what he had listed in his bankruptcy schedules, and that he did not own a car, when in fact he owned the home on Wrenwood Circle in Elgin and a 2008 Chevrolet Corvette.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation Division in Chicago.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Department of Justice Awards $119 Million to Hire Community Policing OfficersRead the Press Release
Attorney General Loretta E. Lynch today announced $119 million in grant funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The Attorney General announced funding awards to 184 law enforcement agencies across the nation, aimed at creating, or in some cases protecting, more than 900 law enforcement positions. The Attorney General made today’s announcement in Dallas, where the Dallas Police Department will receive $3.1 million through the COPS Hiring Program to hire 25 officers.
CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts. All CHP applicants were asked to identify a specific crime and disorder problem area and how funding would be used to initiate or enhance their capacity to implement community policing approaches to that problem area.
In 2016, the COPS Office gave additional consideration to applicant agencies selecting the category of “Building Trust,” based on the final report of the President’s Task Force on 21st Century Policing. Additional consideration was also given to agencies that selected the areas of school-based policing, homicide or violent crime, and homeland security. Applicants who committed to hiring or rehiring at least one military veteran under CHP also received additional consideration for funding. The complete list of award recipients can be found here: http://www.cops.usdoj.gov/default.asp?Item=2888.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 129,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
Department of Justice Announces National Community Policing WeekRead the Press Release
Attorney General Lynch, Dallas Cowboys to hold 21st Century Community Policing Youth Forum on Facebook Live!
Justice Department to Announce nearly $119 million in Grant Awards to Advance Community Policing Efforts
As part of the Obama Administration’s commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will lead nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama has designated the week of Oct. 2-8, 2016, as National Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
“Strengthening the relationship between law enforcement officers and the communities we serve and protect is one of my top priorities,” said Attorney General Loretta E. Lynch. “During National Community Policing Week, we will be hosting hundreds of events around the country designed to foster dialogue, promote cooperation, and help citizens and law enforcement officers get to know one another as partners in our shared efforts to build stronger, safer, and more just communities for every American.”
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect and serve. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
To launch the national week of engagement, Attorney General Lynch will visit Dallas, Texas on MONDAY, OCT. 3, hold a 21st Century Community Policing Youth Forum with students, officer cadets, and Jason Witten and Barry Church of the Dallas Cowboys known for their work to bring communities and law enforcement together. The forum will also be featured on the Department of Justice Facebook Live page.
While in Dallas, the Attorney General will announce $119 million in grant funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). These grants will provide matching funding awards to 184 law enforcement agencies across the nation, aimed at creating, or in some cases protecting, more than 900 law enforcement positions. CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts.
The following day, TUESDAY, OCT. 4, the Attorney General will join Dallas Mayor Mike Rawlings and Deputy Mayor Pro Tem Erik Wilson at a National Night Out event at the University of North Texas at Dallas. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement, to promote crime prevention efforts, and to foster collaborative engagement amongst neighbors who are committed to working together to keep each other safe. The Attorney General also attended National Night Out earlier in the summer during her visit to Detroit for the Justice Department’s first Justice Forum.
Also while in Dallas, the Attorney General will attend several meetings with rank-and-file officers, hold a roundtable discussion with local police chiefs, and pay respects to the families of those officers who tragically lost their lives in the line of duty this past July.
Later in the week, Attorney General Lynch will participate in a Town Hall on diversity in law enforcement hosted by Howard University. This discussion is part of the Engaging College Students in 21st Century Law Enforcement Project that resulted from a grant provided by the DOJ Office of Community Oriented Policing Services (COPS) to explore strategies that encourage recruitment among diverse millennials for law enforcement positions.
On THURSDAY, OCT. 6, Attorney General Lynch and Deputy Attorney General Sally Q. Yates will deliver remarks at the inaugural Attorney General’s Awards for Distinguished Service in Community Policing, along with Director Ronald Davis of the COPS Office. The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local or tribal sworn police officers and deputies who exemplify remarkable achievements in innovative community policing strategies, criminal investigations, and field operations.
Attorney General Lynch will conclude National Community Policing week in Newark, New Jersey, where she will hold the last in a series of regional Justice Forums on FRIDAY, OCT. 7. In the wake of the recent events, including both the tragic officer-involved deaths of civilians and appalling, premeditated attacks on police officers, the Department of Justice launched a series of convenings—Justice Forums—in cities across the nation to provide a forum for local community leaders, youth advocates, law enforcement, and state and local officials to critically examine police-community issues in their respective cities and regions in order to seek solutions together. Thus far, Attorney General Lynch has hosted a Justice Forum in Detroit, and Deputy Attorney General Yates has hosted a Justice Forum in Denver.
Additionally, Deputy Attorney General Yates will hold a Justice Forum in Atlanta on MONDAY, OCTOBER 3, to commence National Community Policing Week. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and Director Paul Monteiro of the Community Relations Service (CRS) will join Deputy Attorney General Yates at the Atlanta Justice Forum. Assistant Attorney General Karol Mason of the Office of Justice Programs (OJP) will also attend the Newark Justice Forum, along with Principal Deputy Assistant Attorney General Gupta and Director Davis of the COPS Office.
For more information on National Community Policing Week or the Attorney General’s Community Policing Tour, please visit https://www.justice.gov/ag/community-policing-tour.
21st CENTURY COMMUNITY POLICING YOUTH FORUM ON FACEBOOK LIVE
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Jason Witten of the Dallas Cowboys
Barry Church of the Dallas Cowboys
WHEN: MONDAY, OCTOBER 3, 2016
2:30 p.m. CDT
WHERE: Sunset High School
2120 W. Jefferson Boulevard
Dallas, TX 75208
OPEN PRESS (Media Gather: 1:30 p.m. CDT // Final Access: 2:00 p.m. CDT)
DOJ FACEBOOK LIVE
NOTE: Please RSVP to [email protected] by Sunday, Oct. 2, at 8:00 p.m. CDT. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
NATIONAL NIGHT OUT EVENT WITH THE DALLAS POLICE DEPARTMENT
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Mayor of Dallas Mike Rawlings
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
5:30 p.m. CDT
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
OPEN PRESS
NOTE: Following the Attorney General’s remarks at National Night Out, Attorney General Lynch will participate in a media availability. Media interested in attending National Night Out and the media availability should RSVP to [email protected] by Monday, Oct. 3, at 5:00 p.m. CDT. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
DIVERSITY IN LAW ENFORCEMENT TOWN HALL WITH THE ATTORNEY GENERAL AT HOWARD UNIVERSITY
WHO: Attorney General Loretta E. Lynch
WHEN: WEDNESDAY, OCTOBER 5, 2016
3:30 p.m. EDT
WHERE: Howard University
Armour J. Blackburn University Center
2397 Sixth Street, NW
Washington, DC 20059
OPEN PRESS (Media Access: 2:30 p.m. EDT // Final Access: 3:15 p.m. EDT)
INAUGURAL ATTORNEY GENERAL’S AWARD FOR DISTINGUISHED SERVICE IN COMMUNITY POLICING CEREMONY
WHO: Attorney General Loretta E. Lynch
Deputy Attorney General Sally Q. Yates
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: THURSDAY, OCTOBER 6, 2016
2:00 p.m. EDT
WHERE: U.S. Department of Justice
Great Hall
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS (Media Access: 1:00 p.m. EDT // Final Access: 1:45 p.m. EDT)
LIVESTREAMED AT WWW.JUSTICE.GOV/LIVE-STREAM.
REGIONAL JUSTICE FORUM IN NEWARK
WHO: Attorney General Loretta E. Lynch
U.S. Attorney Paul Fishman of the District of New Jersey
Assistant Attorney General Karol Mason of the Office of Justice Programs
Head of the Civil Rights Division Vanita Gupta
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: FRIDAY, OCTOBER 7, 2016
10:30 a.m. EDT
WHERE: Newark Public Library
5 Washington Street
Newark, NJ 07102
OPEN PRESS (Media Access: 9:30 a.m.EDT //Final Access 10:10 a.m. EDT)
NOTE: Additional details for each event will be issued as they become available. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
Additionally, the event information for Deputy Attorney General Yates National Community Policing Week events can be found below:
REGIONAL JUSTICE FORUM IN ATLANTA
WHO: Deputy Attorney General Sally Q. Yates
Head of the of the Civil Rights Division Vanita Gupta
Director Paul Monteiro of the Community Relations Service
U.S. Attorney John A. Horn of the Northern District of Georgia
WHEN: MONDAY, OCTOBER 3, 2016
10:30 a.m. EDT
WHERE: National Center for Civil and Human Rights
100 Ivan Allen Jr Boulevard NW
Atlanta, GA 30313
OPEN PRESS AT THE TOP (Media Gather: 9:45 a.m. EDT // Final Access: 10:15 a.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to Robert Page at [email protected].
EVENT ANNOUNCING A NEW INTERAGENCY REPORT ON ADVANCING DIVERSITY IN LAW ENFORCEMENT
WHO: Deputy Attorney General Sally Q. Yates
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division
Equal Employment Opportunity Commission Chair Jenny R. Yang
WHEN: WEDNESDAY, OCT. 5, 2016
9:30 a.m. EDT
WHERE: U.S. Department of Justice
7th Floor Press Conference Room
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS (Media Access: 8:45 a.m. EDT // Final Access: 9:15 a.m. EDT)
NOTE: Press inquiries regarding logistics should be directed to the Office of Public Affairs at [email protected] or 202-514-2007.
DOJ Grants Support Local Law Enforcement and State of Iowa: Will Strengthen Community Policing & Prevention EffortsRead the Press Release
CEDAR RAPIDS, IOWA—Local law enforcement and the State of Iowa received Department of Justice grants designed to better serve the community, enhance transparency, and support prevention and intervention efforts.
The Cedar Rapids Police Department (CRPD) and the Linn County Sheriff’s Office were jointly awarded an Edward Byrne Memorial Justice Assistance Grant for fiscal year 2016. The $50,045 grant will be shared equally between the two agencies. The CRPD is committed to strengthening its partnership with local and federal prosecutors by conducting thorough investigations. The grant will be used to enhance existing surveillance and technology equipment and will benefit both investigative efforts and bring clarity to evidentiary matters in court proceedings. The Sheriff’s Office better serves the greater Cedar Rapids community by having the ability to timely respond to, and report on, potential criminal activity. The grant will be used to outfit patrol vehicles with up-to-date mobile equipment, which will improve efficiency and accuracy in responding and reporting.
The Edward Byrne Memorial Justice Assistance Grant (JAG) Program is the primary provider of federal criminal justice funding to state and local jurisdictions. The JAG Program provides states and units of local governments with critical funding necessary to support a range of program areas including law enforcement; prosecution and court programs; prevention and education programs; corrections and community corrections; drug treatment and enforcement; crime victim and witness initiatives; and planning, evaluation, and technology improvement programs.
The State of Iowa’s Criminal and Justice Planning Agency (JJAC) received a grant from the Formula Grants Program under the Juvenile Justice and Delinquency Prevention Act in the amount of $412,161 for fiscal year 2016. JJAC will use the grant to enhance priority areas such as: evidence-based practices; support gender equality in justice system services; continue to work on a reduction in the disparate number of minority youth involved in the juvenile justice system; and collaborate with local and state initiatives to address mental health and substance abuse issues for justice involved juveniles.
The Formula Grants Program supports state and local delinquency prevention and intervention efforts and juvenile justice system improvements. The Office of Juvenile Justice Delinquency Prevention, a component of DOJ’s Office of Justice Programs, accomplishes its mission by supporting states, local communities, and tribal jurisdictions in their efforts to develop and implement effective programs for juveniles. The office strives to strengthen the juvenile justice system’s efforts to protect public safety, hold justice-involved youth appropriately accountable, and provide services that address the needs of youth and their families.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “These grants support the common federal, state and local goal of strengthening law enforcement capabilities, enhance transparency, and strengthen the goals of community policing.”
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Columbus, Ohio man pleads guilty to transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Maurice L. Whyte, II, 23, of Columbus, Ohio pled guilty to transporting stolen goods across state lines, United States Attorney William J. Ihlenfeld, II, announced.
Whyte pled guilty to one count of “Conspiracy to Transport Stolen in Interstate Commerce.” He admitted to conspiring to steal primarily smart phones, tablets, head phones, games stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000.
He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus, Ohio Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Colorado Couple Pays $30,000 to Settle Allegations of Trespass and Cutting of 230 Trees from U.S. Government Property Near Keystone LakeRead the Press Release
TULSA, Okla.—A Colorado couple has paid $30,000 to resolve allegations that they trespassed and either cut down or had another person cut down trees on property owned by the United States government, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Charles and Meegon Reilly own property in Mannford, Okla., that was occupied by Johnny Bozarth. Their property is adjacent to property owned by the United States Army Corps of Engineers, as part of the Keystone Lake Project.
According to the settlement agreement, the United States alleged that, on or before April 1, 2015, the Reilly’s and/or Bozarth trespassed and either cut down or had another person cut down approximately 230 trees in violation of Federal and Oklahoma laws.
The case was handled by Assistant United States Attorney Marianne Hardcastle.
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Chico Man Found Guilty of Receipt, Distribution, and Conspiracy to Produce Child PornographyRead the Press Release
SACRAMENTO, Calif. — After a three–day trial, a federal jury found Jesse Davenport, aka Draco John Flama, 41, of Chico, guilty today of conspiracy to sexually exploit a child, two counts of receipt of child pornography, and one count of distribution of child pornography, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Morrison C. England Jr.
According to evidence presented at trial, in September of 2013, Davenport was on parole for a prior offense. During a parole search, his parole agent seized a micro-SD card from a phone he possessed. Several days later, Davenport cut off his electronic monitor and fled from parole. A subsequent search of the seized micro-SD card revealed a video of a woman engaged in sexually explicit conduct with a child approximately 2-3 years old. Additional investigation identified the woman in the sexually explicit video as a resident of Connecticut. She was later arrested and admitted that she conspired with Davenport to produce the video after meeting Davenport in an online chat room focused on bondage, domination, sadism, and masochism. After the Connecticut woman sent the sexually explicit video of the minor to him, Davenport distributed the video to another person. Later, the Connecticut woman sent the video to Davenport a second time.
This case is the product of an investigation by the Federal Bureau of Investigation, the Redding Police Department, and the California Department of Corrections and Rehabilitation. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Davenport is scheduled to be sentenced by Judge England on January 5, 2017. Because of his prior conviction, Davenport faces a mandatory minimum sentence of 25 years in prison and a maximum possible penalty of 50 years in prison and a $250,000 fine on the conspiracy conviction. Similarly, because of his prior conviction he faces a mandatory minimum sentence of 15 years in prison and a maximum possible penalty of 40 years in prison and a $250,000 fine on each of the receipt and the distribution convictions. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Charleston woman sentenced to prison for federal drug crimeRead the Press Release
Charleston, W.Va. – A Charleston woman was sentenced today to a year and a day in prison for a federal drug crime, announced United States Attorney Carol Casto. Alisha Watts, 33, previously pleaded guilty to maintaining a drug-involved premises.
On March 18, 2016, officers with the Metropolitan Drug Enforcement Network Team executed a search warrant at 1210 Stonebrook Road in Charleston. Upon entering the residence, officers found Watts asleep in the bedroom. Watts admitted to being the occupant of the residence. Beside the bed, officers found a loaded handgun, over 600 grams of methamphetamine in the kitchen cabinets, and over 100 pounds of marijuana packaged in one-pound blocks throughout the residence. Additionally, officers located approximately $34,000 cash. Watts admitted that the drugs were being stored at her residence and were intended for distribution by a codefendant, Terrus Carter.
Carter was previously sentenced to eight years in federal prison for a methamphetamine charge. As part of Carter’s plea agreement, he agreed to forfeit a St. Albans residence and over $79,000 in cash.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of heroin and other drugs in communities across the Southern District.
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Charleston felon sentenced to federal prison for illegal gun possessionRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to three and a half years in federal prison for illegal possession of a firearm, announced United States Attorney Carol Casto. Dereck Skylar Brown, 33, previously pleaded guilty to being a felon in possession of a firearm.
On July 4, 2015, Charleston Police Detectives responded to a shooting at a bar on Leon Sullivan Way and observed Brown leaving the bar immediately after they heard several gunshots from inside the bar. Brown appeared to be concealing something in his waistband as he exited the front door of the bar. Brown ignored the detectives’ commands to stop until after he briefly leaned into an unoccupied vehicle parked with its driver side door open. One detective detained Brown while another looked into the vehicle and observed a Colt .380 semiautomatic pistol on the passenger seat of the vehicle.
The West Virginia State Police Forensic Laboratory later identified a fingerprint lifted from the pistol’s magazine as having been made by Brown’s right thumb. Brown was prohibited from possessing any firearm under federal law because of his numerous felony convictions, including armed robbery, attempted possession with intent to distribute cocaine, and malicious wounding.
Three people inside the bar suffered non-fatal gunshot wounds. Through law enforcement’s forensic analysis, Brown was excluded as a suspect in the shooting.
The case against Brown was investigated by the Charleston Police Department’s Street Crimes Unit, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The West Virginia State Police Forensic Laboratory also provided invaluable assistance to the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Cantor Fitzgerald Affiliate to Pay More Than $16 Million in Penalties and Forfeiture for Engaging in Illegal Gambling and Money Laundering SchemesRead the Press Release
CG Technology, LP, formerly doing business as Cantor Gaming (CG Technology and Cantor Gaming),[1] one of the largest race and sports book operators in the United States, has entered into a non-prosecution agreement and agreed to pay $16.5 million in penalties and forfeiture to the federal government to resolve a criminal investigation into the company’s past involvement in illegal gambling and money laundering schemes. In addition, pursuant to the agreement, CG Technology will provide continuing cooperation and has undertaken far-reaching reforms to its business and compliance operations. Michael Colbert, a former senior executive officer at Cantor Gaming, who was the Director of Risk Management, previously pleaded guilty in the United States District Court for the Eastern District of New York to conspiring to participate in an illegal gambling business. Colbert faces up to five years’ imprisonment for his involvement in criminal activity at Cantor Gaming.
The resolution was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Daniel G. Bogden, United States Attorney for the District of Nevada; Philip Bartlett, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS); Richard Weber, Chief, Internal Revenue Service, Criminal Investigation (IRS-CI); and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
“Cantor Gaming quickly grew into one of the largest race and sports book operators in the United States. Unacceptably, this growth came at the expense of compliance with the law, and as a result Cantor Gaming became a place where at least two large-scale illegal bookmakers could launder their ill-gotten proceeds. The Cantor Gaming senior officer who oversaw the illegal conduct has pleaded guilty for his involvement in this criminal activity. The non-prosecution agreement recognizes Cantor Gaming’s decision to accept full responsibility, provide complete cooperation, and take remedial measures to enforce best industry practices going forward,” stated U.S. Attorney Capers. Mr. Capers thanked the investigative agencies for their outstanding commitment and dedication over the course of this investigation. Mr. Capers also thanked the District Attorney’s Office for Queens County, the Financial Crimes Enforcement Network of the Department of the Treasury, and the Nevada Gaming Control Board, Enforcement Division for their assistance with the investigation.
“CG Technology’s admissions that it violated federal laws by accepting messenger betting, out-of-state betting, and processing large amounts of monies which were the proceeds of illegal activities, are significant victories for the government,” said U.S. Attorney Bogden.
“CG Technology, formerly Cantor Gaming, ran its enterprise with total disregard for government regulations and the penalties associated with breaking the law. As Postal Inspectors and their law enforcement partners continue to prove, greed and eagerness to ‘game’ the system will never be tolerated, and those who choose to ignore the law will be brought to justice,” said USPIS Inspector Bartlett.
“Cantor Gaming bet on never getting caught but this wager didn’t pay off,” said Chief Weber, IRS Criminal Investigation. “Financial transactions always leave a money trail and IRS-CI Special Agents relentlessly follow that trail. This large scale illegal bookmaking investigation uncovered the kind of widespread corruption that is too often associated with criminal enterprises. Working with our law enforcement partners, we will continue to pursue these types of investigations to keep the books clean for consumers and corporations who are following the law.”
“Illegal sports betting is a multi-million-dollar business often involving other illicit activity. There is good reason why this activity needs to be regulated and operated according to the law and industry standards. The illegal conduct forming the basis for this investigation was clearly motivated by greed and deliberate disregard for the rules of the gaming industry. This settlement should serve as a message to those who try to beat the system,” stated NYPD Commissioner O’Neill.
Pursuant to the non-prosecution agreement signed today, Cantor Gaming, which is now known as CG Technology, acknowledged and accepted responsibility for aiding and abetting the operation of an illegal gambling business and money laundering from approximately 2009 through 2013. Cantor Gaming, an affiliate of the financial services company Cantor Fitzgerald, LP, operates race and sports books in the following eight casinos all located in Las Vegas, Nevada: the Venetian, the Palazzo, the M Resort Spa Casino, the Hard Rock Hotel and Casino, the Tropicana, the Cosmopolitan, the Palms Casino Resort, and the Silverton Casino Hotel.
Cantor Gaming’s strategy to grow its business required it to attract and retain bettors who frequently placed large wagers on sporting contests. To do so, Cantor Gaming offered higher betting limits than other sports books and gave the important bettors preferential treatment, including direct access to Michael Colbert, whose job was to set the lines and odds for the betting contests. Important bettors interacted with Colbert and his staff rather than the “front of the house” staff that was under the supervision of Cantor Gaming’s chief operating officer, which normally handled interactions with bettors. To accommodate some of the important bettors, Colbert and his staff facilitated violations of state and federal laws, including: (a) knowingly accepting and facilitating “messenger betting”[2] in its sports books on repeated occasions; (b) knowingly accepting and facilitating out-of-state betting activity through wire communications; and (c) processing large cash deposits and withdrawals and third-party wire transfers, knowing that the property involved represented the proceeds of some form of illegal activity. As set forth in the Statement Facts, which is attached to the non-prosecution agreement, two of these important high volume bettors ran illegal bookmaking operations and were able to launder their illegal proceeds through Cantor Gaming wagering accounts.
On or about August 21, 2013, Michael Colbert pleaded guilty in the Eastern District of New York to conspiracy to conduct an illegal gambling business, in violation of Title 18, United States Code, Section 371, and faces a term of imprisonment of up to five years when sentenced.
In light of CG Technology’s complete acceptance of responsibility for the full breadth of its unlawful conduct, cooperation, and far-reaching remedial measures, the government has agreed not to prosecute CG Technology for its criminal conduct, provided that CG Technology complies for two years with all the terms of the agreement executed today.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys James P. Loonam and Matthew Amatruda are in charge of the case, with assistance from Assistant United States Attorney Brian Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets, as well as Assistant United States Attorney Nicholas Dickinson of the District of Nevada.
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This resolution was the result of efforts by the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
[1] Cantor Gaming changed its name to CG Technology, LP in January 2014. The conduct which was the subject of the criminal investigation occurred while the company was doing business as Cantor Gaming.
[2] The practice of having an agent or “runner” place a bet on behalf of a third-party in exchange for compensation is known as “messenger betting.” It is illegal for a licensed sports book in Nevada to knowingly accept wagers from compensated agents.
Braymer Man Sentenced for $262,000 Cattle FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Braymer, Mo., man was sentenced in federal court today for a cattle fraud scheme that resulted in losses of more than $262,000 to his victims.
Garland Joseph “Joey” Nelson, 22, of Braymer, was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Nelson to pay $262,450 in restitution to his victims, including the USDA Farm Service Agency, Cyclone Cattle Company and individual victims. The government may enforce restitution and the recovery of government property under lien at any time. Nelson must report to the Bureau of Prisons on Nov. 21, 2016, to begin serving his sentence.
On Nov. 30, 2015, Nelson pleaded guilty to a fraud scheme using property mortgaged or pledged to farm credit agencies. Nelson engaged in a three-part fraud scheme that caused a combined loss of $262,450.
Loan Fraud: $138,452
Nelson admitted that he engaged in a scheme to sell at least 114 mortgaged head of cattle that were pledged to the Farm Service Agency (FSA), without notifying FSA of the sales, from April 1, 2013, through June 2014. He did not instruct purchasers to address proceeds checks to the FSA as well as to him, and he did not remit the bulk of the sale proceeds to FSA, as was required by the terms of his loans. Instead, Nelson admitted that he kept the funds for his personal use.
Nelson received two livestock operating loans in April 2013 totaling $158,000 for the limited purpose of buying and raising cattle. In violation of the express terms of his loans, and with fraudulent intent, Nelson conducted livestock sales from April 2013 to July 2014 under the name “Joey Nelson” to avoid detection. He conducted other sales in the name of a friend to further conceal his involvement. His friend then transferred the proceeds to Nelson.
Nelson ceased making repayments on his FSA loans as of Jan. 12, 2015. His outstanding principal balance is $138,452, plus applicable interest and penalties. Nelson filed for Chapter 7 bankruptcy on June 25, 2015.
Livestock Sales: $124,000
Nelson also schemed to remove identification from cattle that was owned by others but placed in his care to graze. Nelson removed identification tags from 646 head of cattle that belonged to others, and commingled these cattle with his own and with those owned by his neighbor and landlord, in order to sell livestock undetected. He sold those cattle for his own benefit, for a total loss to three victims of $124,000.
This case was prosecuted by Special Litigation Counsel Gregg R. Coonrod. It was investigated by the U.S. Department of Agriculture, Office of Inspector General.
Belle Glade Resident Sentenced in Stolen Identity Tax Refund Fraud Conspiracy Involving Students and Other Individuals’ Personal Identifying InformationRead the Press Release
A Palm Beach County resident was sentenced to 48 months in prison, to be followed by two years of supervised release, and was ordered to pay restitution in the amount of $188,570 for his participation in a stolen identity tax refund fraud conspiracy involving students and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Terry L. Rhodes, Executive Director, Florida Highway Patrol (FHP), made the announcement.
Oniel Winston Scarlett, 27, of Belle Glade, previously pled guilty to one count of conspiracy to commit wire fraud, to retain and conceal monies stolen from the United States, and to commit identity theft, all in violation of Title 18, United States Code, Section 371; one count of wire fraud, in violation of Title 18, United States Code, Section 1343; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Scarlett and his co-conspirators fraudulently obtained and exchanged amongst themselves the PII of other individuals, filed fraudulent income tax returns with the IRS using the stolen PII, and directed fraudulent refunds to be deposited onto pre-paid debit cards in the names of other individuals using the stolen PII.
Scarlett was in possession of stolen PII during a traffic stop on September 20, 2011. During the traffic stop, the FHP trooper conducted a consent search of Scarlett’s vehicle and found 92 Wal-Mart pre-paid debit cards; printouts of hundreds of peoples’ PII; pre-paid debit card information and money amounts for the cards; more than fifty Palm Beach County School Board’s mainframe database printouts with students’ names, Social Security numbers, and dates of birth; two laptop/notebook computers with accessories; two memory sticks; a cell phone; and a phone book for the Belle Glade, Florida area. The trooper also found bank account information, where it was later determined that nearly $77,000 in federal tax refunds were direct deposited from fifty-two separate fraudulent tax returns filed with the IRS.
Scarlett admitted he had been recruited to help register pre-paid debit cards that were to be used to accept the fraudulent IRS refunds. He also admitted his role in agreeing to accept money for his role in helping complete the crime. Some of the PII was also used to file false tax returns with the IRS. On the computer, law enforcement found 228 separate login user identifications used to file false income tax returns claiming approximately $290,000.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FHP. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
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.
Bank Robber Sentenced to Lengthy Prison TermRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced today that Anthony Oliphant, Jr. of Brown Deer, Wisconsin, was sentenced by the Honorable J.P. Stadtmueller to 114 months’ imprisonment for his role in committing the March 4, 2016, armed robbery of the Tri City National Bank in Brown Deer. Oliphant’s prison sentence will be followed by 60 months of supervised release. He has also been ordered to pay restitution to the bank.
During the robbery, Oliphant entered the bank, loudly tapped a revolver on the counter in front of a teller, and demanded money. He then began pacing the bank lobby and angrily confronted another teller when he mistakenly believed she had pressed the silent alarm button. A total of seven bank employees were present during the robbery. Oliphant fled the bank on foot carrying a backpack, into which a teller had deposited money. A Brown Deer Police K-9 unit was used to track his flight path and led law enforcement to items Oliphant discarded following the robbery. Those items and other investigative steps led law enforcement to identify Oliphant as the bank robber.
The successful prosecution of this case was the result of a joint investigation by the Brown Deer Police Department and the Federal Bureau of Investigation. Assistant United States Attorneys Benjamin Taibleson and Kelly B. Watzka prosecuted the case.
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Atlanta Man Sentenced on Wire Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Rodney Walker, 46, of Atlanta, Georgia, who was convicted of wire fraud, was sentenced to 15 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $ 175,000 in restitution.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that the defendant defrauded investors in an advance fee scheme, which resulted in $175,000 dollars in financial losses to a film production company, Applecreek Productions, located in England. Walker represented to the victim film production company that he could obtain a standby letter of credit from banks outside the United States. The defendant assured representatives of the company that he could monetize the stand by letter of credit which would provide the film production company with $100 million dollars in loans. As part of the scheme, Walker required the company to provide him with $175,000 which would purportedly cover the costs associated with the financial transaction. The film production company provided the funds but instead of using the money to obtain financing, the defendant, and his co-conspirators, used the funds for their own purposes.
Co-conspirators John Nielson, Robert Storey, Rhett Shepard, Nick Mussolini have also been convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
1 October 2016
Attorney General Lynch to Launch National Community Policing Week in DallasRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch will launch National Community Policing Week by traveling to Dallas on MONDAY, OCT. 3, to hold a 21st Century Community Policing Youth Forum with students, officer cadets, and Jason Witten and Barry Church of the Dallas Cowboys known for their work to bring communities and law enforcement together. The forum will also be featured on the Department of Justice Facebook Live page.
“Strengthening the relationship between law enforcement officers and the communities we serve and protect is one of my top priorities,” said Attorney General Lynch. “During National Community Policing Week, we will be hosting hundreds of events around the country designed to foster dialogue, promote cooperation, and help citizens and law enforcement officers get to know one another as partners in our shared efforts to build stronger, safer, and more just communities for every American.”
The following day, TUESDAY, OCT. 4, the Attorney General will join Dallas Mayor Mike Rawlings at a National Night Out event led by the Dallas Police Department. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement, to promote crime prevention efforts, and to send a message to criminals that neighbors are paying attention and are prepared to work together to keep each other safe. Attorney General also attended National Night Out earlier in the summer during her visit to Detroit for the first Justice Forum.
Also while in Dallas, the Attorney General will also attend several meetings with rank-and-file officers, hold a roundtable discussion with local police chiefs, and pay respects to the families of those officers that tragically lost their lives in the line of duty last July.
As part of the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will lead nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama will designate the week of Oct. 2-8, 2016, as Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
For more information on National Community Policing Week or the Community Policing Tour, please visit https://www.justice.gov/ag/community-policing-tour.
21st CENTURY COMMUNITY POLICING YOUTH FORUM ON FACEBOOK LIVE
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Director Ron Davis of the Office of Community Oriented Policing Services
Jason Witten of the Dallas Cowboys
Barry Church of the Dallas Cowboys
WHEN: MONDAY, OCTOBER 3, 2016
2:00 p.m. CDT
OPEN PRESS (Media Gather: 1:30 p.m. CDT//Final Access: 2:00 p.m. CDT)
DOJ FACEBOOK LIVE
WHERE: Sunset High School
2120 W. Jefferson Boulevard
Dallas, TX 75208
NATIONAL NIGHT OUT EVENT WITH THE DALLAS POLICE DEPARTMENT
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Mayor of Dallas Mike Rawlings
Director Ron Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
5:30 p.m. EDT
OPEN PRESS
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
MEDIA AVAILABILITY
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Director Ron Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
6:00 p.m. EDT
OPEN PRESS
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
NOTE: Time and location are subject to change for the events listed above. An updated advisory with final times for each event will be issued at the beginning of next week. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
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30 September 2016
Virginia Man Sentenced to 20 Years to Life in Prison for 1984 Slaying of Woman in Southeast WashingtonRead the Press Release
WASHINGTON – Joe Anthony Barber, 58, formerly of Woodbridge, Va., was sentenced today to a term of 20 years to life in prison for the 1984 slaying of a woman at her apartment in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Barber was found guilty by a jury in June 2016 of first-degree murder while armed, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert E. Morin.
According to the government’s evidence, on Jan. 1, 1984, the body of the victim, Rachel Cox, 43, was found at 6:30 a.m., when her daughter came home to their apartment in the 3300 block of Sixth Street SE. Ms. Cox was found on the floor, partially covered with a comforter, with her hands tied behind her back, her underwear at her feet, and 12 stab wounds to her torso, which injured her liver and heart. The victim’s daughter had last seen her mother on New Year’s Eve just before midnight. Ms. Cox planned to stay in her home, watching TV, dressed for bed.
Vaginal swabs taken from the body during the 1984 autopsy were submitted for DNA analysis in April 2013. Semen was found on the swabs and a profile was developed. Barber was identified as a suspect through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool.
Barber’s profile was in the CODIS system as a result of a 1984 conviction in an unrelated rape case in which the victim was 10 years old; in that case, he pled guilty to rape and indecent acts with a minor for an attack that took place on Oct. 11, 1984. He served nearly 20 years in prison before his release in 2004.
Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, and Paralegal Specialist Benjamin Kagan-Guthrie, of the U.S. Attorney’s Office, initially identified this murder case for further investigation and DNA analysis. That investigation of Ms. Cox’s murder led to Barber’s arrest in November 2013, and he has been in custody since that time.
In announcing the sentence, U.S. Attorney Phillips and Interim Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who also worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialists Leif Hickling and Paul Howell; Paralegal Specialists Alesha Matthews Yette, Debra Joyner, and Stephanie Siegerist; Victim/Witness Advocates Jennifer Clark and Karen Giannakoulias, and Victim/Witness Services Coordinators Tonya Jones and Katina Adams-Washington. Finally, they commended the work of Assistant U.S. Attorney S. Vinét Bryant, who investigated, indicted and prosecuted the matter.
Virginia Man Known as “the Flip Flop Bandit” Indicted for Bank RobberyRead the Press Release
Savannah, GA: Leonard Riddle 46, of Bumpass, Virginia, was indicted this month by a federal grand jury sitting in Savannah on charges related to the July 29, 2016 robbery of the First Chatham Bank in Pooler, Georgia. Known as “The “Flip Flop Bandit,” Riddle was wanted by the FBI at the time of his arrest for a series of bank robberies and attempted bank robberies in North Carolina, Pennsylvania, Maryland, Tennessee, Arkansas, Oklahoma and Florida. Riddle is alleged to have carried out the various robberies with either a BB gun or a fake explosive device. Riddle’s alleged robbery spree ended on July 29, however, when was apprehended by the Pooler Police Department following a high-speed vehicle chase.
Riddle is charged with one count of bank robbery in the Southern District of Georgia, and also has federal bank robbery indictments pending in the Western District of Oklahoma and the Eastern District of Tennessee.
Riddle attended an arraignment on September 28, 2016, where he entered a not guilty plea and was detained without bond. If convicted of the sole count in the indictment, Riddle faces a maximum sentence of 20 years in prison. U.S. Attorney Ed Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was led by the FBI with assistance from the Pooler Police Department. Assistant United States Attorney Jennifer G. Solari is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Versailles Man Sentenced to 20 Years for Distributing Fentanyl That Caused Overdose DeathRead the Press Release
The defendant sold fentanyl that was disguised as a pain pill
LEXINGTON, Ky. — A Lexington, Ky., man, who previously admitted to distributing fentanyl, that was disguised as a pain pill and caused the overdose death of a Woodford County woman, has been sentenced to 20 years in federal prison.
On Thursday, U.S. District Judge Karen Caldwell sentenced Gill Dewayne Garrett for distribution of a controlled substance resulting in death. Under federal law, anyone convicted of this offense faces a minimum of 20 years and a maximum of life in prison, without parole. Garrett’s drug supplier and co-defendant, Luis Aguierre-Jerardo has entered into a binding plea agreement with the federal government that will result in a sentence of at least 28 years and no more than 33 years. He will be sentenced on December 8, 2016.
“Mr. Garrett sold the fentanyl, a deadly drug, that killed a woman who was seeking a pain pill,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “He exploited her addiction in order to make a few dollars without regard for the tragic consequences of his criminal behavior. His sentence is entirely appropriate and demonstrates the powerful impact of our Overdose Prosecution Initiative which brings together state, local and federal authorities to prosecute professional drug dealers who cause death and serious injury.”
Garrett, pleaded guilty to the offense in April and admitted that, in July 2015, Aguirre-Jerardo had provided him with a counterfeit pain pill. The pill looked like Oxycodone, but contained fentanyl, and Garrett distributed it to Jolene Bowman knowing it was fentanyl. Bowman consumed the pill, and subsequently died of an overdose. Illicitly manufactured fentanyl is increasingly the cause of overdose deaths in Kentucky.
Versailles Police used Ms. Bowman’s cell phone to trace the source of the fentanyl pill to Garrett and later found that Aguirre-Jerardo had supplied Garrett with the fentanyl pill.
An autopsy confirmed that the cause of death was a drug overdose and toxicologists concluded that had it not been for the fentanyl in the pill, Bowman would not have died.
U.S. Attorney Harvey, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, and James Fugate, Chief of Police, Versailles Police Department, jointly made the announcement.
The investigation was conducted by the Versailles Police and the DEA. Assistant U.S. Attorney Todd Bradbury prosecuted this case on behalf of the federal government.
United States Attorney and Lexington Police Chief Announce New Partnership in Fight Against Opiate EpidemicRead the Press Release
Partnership focuses on more training for investigators, more prosecutions of high-level dealers, and intervention.
LEXINGTON, Ky. — U.S. Attorney Kerry B. Harvey, the Drug Enforcement Administration (DEA), and Lexington Police Chief Mark Barnard jointly announce a new initiative aiming to implement a comprehensive approach to central Kentucky’s opioid epidemic.
As part of the plan, the Lexington Police have added officers to its narcotics unit with an enhanced focus on investigating overdose cases. Certain of these officers will exclusively investigate overdose cases, that result in either death or serious bodily injury, in conjunction with the U.S. Attorney’s Office’s overdose prosecution initiative. That initiative focuses on prosecuting dangerous drug dealers and their suppliers, who distribute heroin, fentanyl and other opioids that cause overdoses, under a federal statute that imposes a mandatory minimum of 20 years in prison and up to life imprisonment upon conviction. Prosecutors with the U.S. Attorney’s Office and officers of the Lexington Police Department will jointly train on best practices in the investigation and prosecution of overdose cases.
Beginning this month, Lexington Police are carrying naloxone, a life-saving medication used to revive individuals who have overdosed on opioids such as oxycodone, heroin or fentanyl. The new initiative plans to provide treatment information to survivors of an overdose who suffer from addiction. The Lexington Police Department is currently working with the City’s Substance Abuse and Violence Intervention program to identify medical providers and recovery specialists who can partner in this initiative.
“Kentucky’s opioid epidemic requires an all hands on deck approach,” said U.S. Attorney Harvey. We must make central Kentucky an inhospitable environment for drug dealers and their suppliers. Our deepening partnership with the Lexington Police is a potential game changer in combatting this scourge in our community. Prosecutions alone cannot solve this problem, however, and we must create partnerships that make effective, affordable addiction treatment available to those in need on a timely basis. Prevention and education efforts must be intensified as well. I applaud Chief Barnard’s leadership on this issue, and look forward to working closely with him as we convene community stakeholders in order to devise innovative responses to this threat.”
“We have nearly doubled the number of personnel assigned to our Narcotics Enforcement Unit because the problem we’re seeing in our community is that significant,” Chief Barnard said. “Two detectives focus specifically on overdose cases. The goal is to track down drug dealers who are preying on individuals suffering from addiction and destroying families, while also making sure victims are connected with the resources they need to get help.”
United States Announces Settlement of Clean Water Act Violations at Aqueduct RacetrackRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, and Judith A. Enck, Regional Administrator, United States Environmental Protection Agency (EPA) Region 2, announced today the filing of a complaint against The New York Racing Association, Inc. (NYRA) as well as the lodging of a consent decree to resolve the allegations in the complaint.
The complaint alleges that NYRA, which operates the Aqueduct Racetrack where horse racing, training, and boarding of horses occur, and where up to 450 horses are housed on site during the horse racing season, violated the Clean Water Act as a result of discharging polluted wastewater, containing animal wash water and detergent, and feed waste, from Aqueduct Racetrack into New York City’s and New York State’s storm sewer systems. In 2013 and 2014 alone, NYRA generated and discharged an estimated 1.26 million gallons per year of polluted wastewater to storm sewer systems. The discharges from Aqueduct ultimately flowed to the Hawtree and Bergen Basins, tributaries located within the eastern portion of Jamaica Bay, a navigable water of the United States. Eastern Jamaica Bay and associated tributaries are currently designated by the New York State Department of Environmental Conservation as impaired due to ammonia, nitrogen, oil/grease, and pathogens.
Under the consent decree, NYRA will implement measures to eliminate discharges to the storm sewers and ensure that all polluted wastewater from Aqueduct Racetrack flows to sanitary sewers. The settlement includes interim and long term measures, including (1) designation of an employee who is responsible for ensuring that there are no discharges of polluted wastewaters into storm drains; (2) implementation of procedures applicable to employees to ensure that no polluted wastewater discharges occur; (3) installation and operation of a telemetry monitoring system in the manholes that will alert employees of any dry weather flows in the storm sewers; and (4) weekly inspections. The settlement also requires NYRA to implement horse washing procedures and to implement a public website that makes inspection results and information about NYRA’s compliance available to the public. The Consent Decree also requires NYRA to pay $150,000 as a civil penalty.
In addition, the Consent Decree requires NYRA to implement a Supplemental Environmental Project to reduce storm water runoff impacts. NYRA will plant 62 trees at the nearby NYRA Belmont Racetrack which will (1) capture storm water enabling some of it to evaporate back to the atmosphere rather than reach the ground; (2) mitigate the effect of heavy storm events (i.e., large amounts of runoff) by intercepting and slowing the rate at which storm water reaches the ground; (3) break up the soil to allow the soil to become more permeable and able to absorb greater amounts of storm water; and (4) abate soil erosion. The trees will also provide wildlife habitat and reduce urban “heat island” effects.
Aqueduct Racetrack is a concentrated animal feeding operation (CAFO). EPA defines a CAFO as a facility where animals are kept and raised in confined situations for a total of 45 days or more in any 12-month period and feed is brought to the animals rather than the animals grazing or otherwise feeding in pastures, fields, or on range land. CAFOs generate significant volumes of animal waste which, if improperly managed, can result in environmental and human health risks such as water quality impairment, fish kills, algal blooms, contamination of drinking water sources, and transmission of disease-causing bacteria and parasites associated with food and waterborne diseases. This action was brought as part of EPA’s National Enforcement Initiative that uses innovative monitoring and targeting techniques to identify areas where CAFOs impair our nation’s natural resources or adversely impact communities, and to promote technologies to address excess nutrients and reduce animal waste pollution.
“The United States brought this action to ensure that the polluted wastewater discharges that flow from Aqueduct Racetrack and through storm sewers to Jamaica Bay are eliminated. Jamaica Bay is an important habitat for fish, wildlife, migratory birds, and plants. This office will continue to vigorously enforce violations of the Clean Water Act to reduce pollution to this and other waters of the United States,” said United States Attorney Capers.
“Over a million gallons of polluted wastewater has been released every year from the Aqueduct Racetrack into Jamaica Bay, including animal wash water and detergent, and feed waste,” said EPA Regional Administrator Enck. “It is imperative that the New York Racing Association comply with the federal Clean Water Act.”
The action is entitled United States v. The New York Racing Association, Inc., Civil Action No. 1:16-CV-05442-LDH-CLP, (DeArcy Hall, J.), (Pollak, M.J.). Following a 30-day comment period and review of any comments received, the United States will determine whether to move to enter the consent decree.
Assistant United States Attorney Deborah B. Zwany is in charge of the litigation, with assistance from Phyllis Kaplan Feinmark, Chief, Water and General Law Branch, EPA Region 2, Kimberly McEathron, Physical Scientist, Water Compliance Branch, EPA Region 2, Kathryn J. Greenwald, Environmental Protection Specialist, EPA Office of Enforcement and Compliance Assurance, and Kristin Buterbaugh, Attorney-Adviser, EPA Office of Enforcement and Compliance Assurance.
U.S. Attorney’s Office for the Southern District of Florida Joins Law Enforcement Partners to Support National Community Policing Week, October 3-7, 2016Read the Press Release
The United States Attorney’s Office for the Southern District of Florida is committed to supporting and promoting strong relationships between law enforcement and the individuals, families and communities we serve and protect every day. Community policing – public safety efforts built on resilient bonds of mutual trust and respect between local police officers and neighborhood residents – is an essential component of law enforcement work. Community policing is a fundamental part of the public safety mission shared by our law enforcement partners, local community leaders, and youth advocates. In support of this mission, October 3-7, 2016, had been designated as the inaugural National Community Policing Week.
During Community Policing Week, the U.S. Attorney’s Office, law enforcement, community organizations, stakeholders and concerned citizens, will come together to host and participate in events and engagement activities that support our commitment to effective and impactful community policing. Members of the community are invited and encouraged to participate. Our collective efforts will continue to help us make our diverse, vibrant local neighborhoods safer, stronger, and more united.
“Throughout the upcoming week, you will see that by bringing together law enforcement and the communities we protect, we are breaking down barriers, bridging divides, building trust and working toward universal support and respect,” stated U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida. “We encourage you to join our efforts and become part of the solution, as we unite to make our South Florida community safer and more resilient.”
Throughout the week, our partners in the Southern District of Florida will host a variety of Community Policing events, including:
Youth and Cops Basketball Tournament: On Monday, October 3, 2016, an all-day Youth and Cops Basketball Tournament will be held at the Betty T. Ferguson Recreational Complex, located at 3000 NW 199th St, Miami Gardens, FL 33056. Teams made up of local youth (ages 12 to 17) and law enforcement officers will come together for the friendly competition.
Local Children Will Be Police Chiefs for A Day: Throughout the week, participating law enforcement agencies will invite a child from the local community to shadow the Police Chief for the day. The children will experience “a day in the life of law enforcement” by participating in activities that include: roll call, tours of the dispatch areas, community patrol, mock crime scene scenarios, management meetings, and K-9 patrol reviews.
Coral Gables Police Department
Coral Springs Police Department
Doral Police Department
Golden Beach Police Department
Lauderhill Police Department
Margate Police Department
Medley Police Department
Miami-Dade Police Department
Miami-Dade Schools Police Department
Miami Gardens Police Department
Miami Police Department
Miami Springs Police Department
Seminole Police Department
Sunny Isles Beach Police Department
Sunrise Police Department
Surfside Police Department
National Night Out Events: -- During National Night Out events, citizens who benefit from the hard work and dedication of our police forces are encouraged to join in the fight against crime. Law enforcement cannot combat crime without the help of the community and, now more than ever, they need the support of the communities they protect and serve. National Night Out events heighten crime and drug prevention awareness, generate support for and participation in local anticrime efforts, strengthen neighborhood spirit and police-community partnerships, and send a message to those who victimize and poison our communities with their criminal conduct that South Florida residents are taking back their neighborhoods. The events are typically organized by block watches, non-for-profit organizations, companies, and police departments. These events can be as simple as backyard cookouts to full-blown festivals. Police Departments, including those listed below, will be holding National Night Out events during Community Policing week:
Coral Gables Police Department October 4th
South Miami Police Department - October 4th
West Miami Police Department - October 4th
Palm Beach Gardens Police Department - October 7th
Community Resource Fair and Freed Food Distribution Program: On Thursday, October 6, 2016, a Community Resource Fair and Farm Share Free Food Distribution Program will be held from 10:00 a.m. to 2:00 p.m. at the Phichol Williams Community Center, located at 951 SW 4th Street, Homestead, FL 33030. The program is being held in collaboration with the Homestead Police Department.
For more information regarding National Community Policing Week and to learn how you can get involved with local programming, please call (305) 961-9134 or visit [email protected].
U.S. Attorney's Office Concludes Investigation into Fatal Shooting at Union StationRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the fatal shooting of Rashad Bugg-Bey by an off-duty Baltimore County, Md. Police Department officer on Nov. 14, 2015, at Union Station. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officer involved in the fatal shooting of Mr. Bugg-Bey.
The U.S. Attorney’s Office for the District of Columbia and the Metropolitan Police Department (MPD) conducted a comprehensive review of the incident, which included interviews of law enforcement and civilian witnesses and assessing photographs, video footage, diagrams, physical evidence, recorded radio communications, the autopsy report, and other evidence.
According to the evidence, the shooting took place Nov. 14, 2015, at approximately 8:15 p.m. Mr. Bugg-Bey, 25, and a female relative were at Union Station, 50 Massachusetts Avenue NE. They were on the lower Metro level, when Mr. Bugg-Bey inexplicably pulled out a large kitchen knife and slashed his relative’s face. Bleeding, she began to flee Union Station.
The Baltimore County officer, who was off-duty and with a friend, had just entered Union Station through a lower-level entrance to Metro when he saw a woman, who was screaming and running toward the exit. The officer continued walking toward the escalator that leads from the Metro level into Union Station when he observed Mr. Bugg-Bey a few feet from the escalator, armed with a butcher knife. The officer and his friend stepped onto the escalator.
Mr. Bugg-Bey, still armed with the knife, also got on the escalator. He pointed the knife in the direction of the off-duty officer and his friend. The off-duty officer identified himself as a police officer and gave Mr. Bugg-Bey numerous commands to drop his weapon, but Mr. Bugg-Bey refused to comply. Mr. Bugg-Bey continued to ascend the elevator with the knife raised in a manner that the officer and several witnesses described as threatening and menacing.
According to the evidence, the officer discharged his weapon after Mr. Bugg-Bey failed to drop his knife and had almost reached the top of the escalator. In between discharging rounds, the officer continued to give Mr. Bugg-Bey commands to drop the knife. If Mr. Bugg-Bey had exited the escalator while still armed, he would have had access to additional civilians located in the boarding areas of Union Station as well as the area for shopping and restaurants.
Mr. Bugg-Bey was taken to a hospital with gunshot wounds to his head and hand. He was released from the hospital on Dec. 11, 2015. He died on Dec. 22, 2015 as a result of his injuries from the shooting.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officer used excessive force under the circumstances.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
Two Maryland MS-13 Members Convicted in Racketeering Conspiracy Including MurderRead the Press Release
A federal jury today convicted two Hyattsville, Maryland, men on charges related to the racketeering enterprise activity of a gang known as La Mara Salvatrucha, or MS-13.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office; Chief Hank Stawinski of the Prince George’s County, Maryland, Police Department; Chief J. Thomas Manger of the Montgomery County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
Eric Antonio Mejia-Ramos, aka Flaco, 22, and Miguel Angel Manjivar, aka Masflow and Garra, 25, were both found guilty of conspiracy to participate in a racketeering enterprise by a federal jury sitting in U.S. District Court for the District of Maryland. In addition, Manjivar was found guilty of murder in aid of racketeering. U.S. District Judge Roger W. Titus of the District of Maryland scheduled sentencing for Mejia Ramos on Jan. 5, 2017, and Manjivar on Jan. 23, 2017.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to evidence presented at trial, from at least 2009 through October 2014, MS-13 members planned and committed numerous crimes, including murders, attempted murders, kidnappings, assaults, robberies and witness tampering and retaliation in Prince George’s and Montgomery Counties. Gang members also extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes. Mejia-Ramos was a member of the MS-13 Parkview Locotes Salvatrucha Clique and Manjivar was a member of the MS-13 Peajes Locotes Salvatrucha Clique.
Trial evidence showed that on Sept. 16, 2010, Manjivar shot and killed an individual he believed to be a rival gang member on the footbridge of a park in Hyattsville. On Jan. 10, 2011, Manjivar and other MS-13 members murdered a person they believed was a rival gang member and attempted to murder another purported rival gang member in a parking lot in Hyattsville. Manjivar and others repeatedly punched, kicked and stabbed the victims, one of whom survived the attack.
In addition, trial evidence demonstrated that on Jan. 13, 2011, Manjivar attended a Peajes Clique meeting, where he criticized other MS-13 members for not committing enough violent crimes. Manjivar then left in a mini-van driven by a co-defendant with other Peajes members as passengers, and as a group, they attacked a person they believed to be an associate of a rival gang and dragged him back into the vehicle. Manjivar and others continued to assault him, at times attempting to use a seat belt to strangle the victim, as well as kicked, stabbed and choked him. Trial evidence demonstrated that they forcefully stripped the victim of his heavy winter clothing in order to stab him, and then dragged him into the woods, where they left him for dead and fled. The victim survived the attack.
According to evidence presented at trial, on the night of Aug. 28, 2012, Mejia-Ramos lured a woman he believed to be a rival gang member to a park in Beltsville, Maryland, telling her they were going to party. He then shot the woman to death.
In addition to these convictions, eight of the 13 defendants charged in this investigation have pleaded guilty to their roles in the racketeering conspiracy and two have been convicted.
HSI Baltimore, Prince George’s County Police Department, Montgomery County Police Department, Prince George’s State’s Attorney’s Office and Montgomery County State’s Attorney’s Office investigated the case. Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section (OCGS) and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland are prosecuting the case. Former OCGS Trial Attorney Kevin Rosenberg assisted in the prosecution of this case.
Two Maryland MS-13 Members Convicted in Federal Racketeering Conspiracy Including MurderRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Eric Antonio Mejia-Ramos, aka “Flaco,” age 22, and Miguel Angel Manjivar, aka “Masflow or “Garra,” age 25, both of Hyattsville, of conspiracy to participate in a racketeering enterprise in connection with their gang activities as members of La Mara Salvatrucha, or MS-13. Manjivar was also found guilty of murder in aid of racketeering.
The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to evidence presented at the three-week trial, from at least 2009 through October 2014, MS-13 members planned and committed numerous crimes, including murders, attempted murders, kidnappings, assaults, robberies, and witness tampering and retaliation in Prince George’s and Montgomery Counties. Gang members also extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes. Mejia-Ramos was a member of the MS-13 Parkview Locotes Salvatrucha clique and Manjivar was a member of the MS-13 Peajes Locotes Salvatrucha clique.
Trial evidence showed that on September 16, 2010, Manjivar shot and killed an individual he believed to be a rival gang member on the footbridge of a park in Hyattsville. On January 10, 2011, Manjivar and other MS-13 members murdered a person they believed was a rival gang member, and attempted to murder another purported rival gang member, in the parking lot of the former Shoppers Food Warehouse on University Boulevard in Hyattsville. Manjivar and others repeatedly punched, kicked, and stabbed the victims, one of whom survived the attack.
In addition, trial evidence demonstrated that on January 13, 2011, after attending a Peajes clique meeting at which he criticized other MS-13 members for not committing enough violent crimes, Manjivar and other MS-13 Peajes members got into a mini-van driven by a co-defendant. Near the Fort Totten Metro Station, they saw a person they believed was an associate of a rival gang. Manjivar and other MS-13 members attacked the victim and dragged him back into the mini-van. Manjivar and others continued to assault him, at times attempting to use a seat belt to strangle the victim. They eventually parked near a dead end in the vicinity of Chillum Manor Road. Manjivar and others kicked, stabbed and choked the victim. They forcefully stripped the victim of all of his heavy winter clothing in order to stab him. After assaulting the victim near the mini-van, they dragged the victim into the woods, where they left him for dead, and fled. The victim survived the attack.
According to evidence presented at trial, on the night of August 28, 2012, Mejia-Ramos lured a woman he believed to be a rival gang member to a park in Beltsville, telling her they were going to party. At the park, Mejia-Ramos shot the woman to death.
Both defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise. Manjivar faces a mandatory sentence of life in prison for murder in aid of racketeering. U.S. District Judge Roger W. Titus has scheduled sentencing for Mejia-Ramon on January 5, 2017, and for Manjivar on January 23, 2017. Mejia-Ramos and Manjivar remain detained
In addition to these convictions, eight of the 13 defendants charged in this case have previously pleaded guilty to their roles in the racketeering conspiracy and two have been convicted after trial.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Prince George’s County and Montgomery County Police Departments, and Prince George’s and Montgomery County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, and Trial Attorney Catherine K. Dick with the Justice Department’s Organized Crime and Gang Section, who are prosecuting the case. Former OCGS Trial Attorney Kevin Rosenberg assisted in the prosecution of this case.
Tulsa Doctor Found Guilty of Health Care FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that STEVEN WILLIAM DELIA, age 61, of Tulsa, Oklahoma, was found guilty of HEALTH CARE FRAUD by a federal jury on Thursday, September 29,2016. The jury also found that the defendant should forfeit $83,769.27 in assets as part of any sentence imposed.
The defendant was indicted in June, 2016 and charged with HEALTH CARE FRAUD, in violation of Title 18, United States Code, Section 1347.
The Indictment alleged that on or about the February 1, 2010, and continuing through November 9, 2010, in the Eastern District of Oklahoma, the defendant, STEVEN WILLIAM DELIA, knowingly and willfully executed and attempted to execute the above-described scheme and artifice to defraud money and property owned by and under the custody and control of the Oklahoma Health Care Authority, a health benefit program as defined in Title 18, United States Code, Section 24(b), in connection with the payment for health care benefits, items and services.
The trial began with testimony on September 26, 2016 and concluded with closing arguments and jury deliberations on Thursday, September 29, 2016.
Testimony at the trial established that DELIA knowingly and willfully, with the intent to defraud, devised and executed a scheme to defraud the Oklahoma Medicaid program by causing the filing of false claims and receiving Medicaid payments for medical services not rendered by a qualified medical professional.
Additional evidence proved that during the time charged in the Indictment, DELIA, in preparation for deployment to Afghanistan, pre-signed approximately 9000 blank prescriptions, for his unsupervised physician’s assistant and nursing staff to disseminate Schedule II narcotics during his absence, from the Delia Medical Clinic in Sallisaw, Oklahoma. A percentage of those office visits and prescriptions were billed to Medicaid, causing the filing of false claims and receiving Medicaid payments for medical services not rendered by a qualified medical professional.
The charges are a result of an investigation by the Defense Criminal Investigative Service and the Department of Health and Human Services – Office of Inspector General.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence investigation report. The defendant was released on bond pending sentencing.
Assistant United States Attorney’s Melody Nelson represented the United States.
Thai Man Found Guilty of Conspiracy to Violate Arms Export Control Act and International Traffic in Arms Regulations, Involving Significant Amounts of Gun PartsRead the Press Release
WASHINGTON – Pheerayuth Burden, 46, a Thai national who had been living in Torrance, California, was found guilty by a jury today of taking part in a conspiracy involving the purchase and shipment of hundreds of gun parts and accessories from the United States to Thailand without a license. His company, Wing–On LLC, also was found guilty of charges.
The verdict was announced by U.S. Attorney Channing D. Phillips and Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.
Following a trial in the U.S. District Court for the District of Columbia, the jury found Burden and Wing-On LLC guilty of one count of conspiracy to violate the Arms Export Control Act and the International Traffic in Arms Regulations, one count of unlawful export of defense articles from the United States, and one count of conspiracy to commit money laundering. The Honorable Rosemary M. Collyer scheduled sentencing for Dec. 15, 2016. She ordered that Burden be placed in custody while awaiting the sentencing hearing.
A co-defendant, Kitibordee Yindeear-Rom, 29, a native and citizen of Thailand, pled guilty to a conspiracy charge in November 2014.
According to the government’s evidence, beginning at least in or about July 2010, Burden, Wing-On, LLC and Yindeear-Rom entered into an agreement to illegally ship United States origin goods, including defense articles - specifically gun parts - to Thailand. As part of their agreement, Yindeear-Rom purchased gun parts from United States manufacturers through on-line purchases, and directed the purchased items to be sent to Burden and Wing-On, which was based in Carson, Calif., to conceal the ultimate destination of the purchases.
Upon receipt of the gun parts, the items would be repackaged for shipment to Thailand. Extending through at least October 2013 as part of the conspiracy, Burden and Yindeear-Rom caused to be purchased and shipped hundreds of different gun parts from the United States to Thailand without a license. These gun parts included, for example, numerous firearm parts, including key components for AR-15 military-style assault rifles.
The jury found that Burden and his company, Wing-On, LLC, acted without a license and in knowing violation of federal export and money-laundering law.
In announcing the verdict, U.S. Attorney Phillips and Special Agent in Charge Settles commended the efforts of the Special Agents who investigated the case for U.S. Immigration and Customs Enforcement, Homeland Security Investigations. They also expressed appreciation for the assistance provided by the State Department’s Directorate of Defense Trade Controls, U.S. Customs and Border Protection, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Offices, including Assistant U.S. Attorneys Christopher B. Brown, Zia Faruqui, and Michael Friedman; Paralegal Specialists Elana Buruncenco and Jorge Casillas; Victim/Witness Advocates Yvonne Bryant and Tonya Brown, and Litigation Technology Specialists Anisha Bhatia and Josh Ellen. Finally, they commended the work of Assistant U.S. Attorneys Tejpal Chawla and Opher Shweiki, who prosecuted the case.
Stockton Man Pleads Guilty in Credit Card Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — On Thursday, September 29, 2016, Vuthiya Tim, 31, of Stockton, pleaded guilty to conspiracy to commit credit card fraud and theft of mail matter, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between March 2014 and September 2015, Tim and eight co-conspirators obtained personal information from victims and used that information to create unauthorized Target credit or debit accounts, called REDcards. They used the Target REDcard account numbers to buy large amounts of electronics, prepaid gift cards, and other goods at Target locations throughout the Sacramento area, Northern California, and elsewhere. In all, more than 300 counterfeit and unauthorized access devices were possessed, used, produced, or trafficked by members of the conspiracy, and over 1,000 victims have been identified to date as having had their identities compromised as a result of the conspiracy.
In addition, Tim pleaded guilty to stealing mail on April 11, 2013, from the post office in Clements, which is in San Joaquin County.
This case is the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorneys André M. Espinosa and Rosanne L. Rust are prosecuting the case.
Tim is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on December 15, 2016. Tim faces maximum penalties of five years in prison and a $250,000 fine on both counts. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
State Troopers Seize over a Million Dollars’ Worth of Cocaine in Three Separate Traffic StopsRead the Press Release
Montgomery, Alabama – Alabama State Troopers made three recent traffic stops that resulted in the arrest of five individuals and the removal of approximately 40 kilos (88 lbs.) of cocaine off the streets, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. The amount of seized cocaine has an estimated street value of $1.3 million.
As of today, all five have been indicted and arraigned in federal court for possessing cocaine with the intent to distribute, or for conspiring to do the same.
According to court documents, on August 22, 2016, Robert Francis Kelly (55), from Pennsylvania, was arrested while traveling through Montgomery County from South Texas in a tractor trailer truck. Kelly was heading towards Georgia when he was pulled over by an Alabama State Trooper. Upon searching Kelly’s truck, Troopers found approximately 15 kilograms of cocaine hidden in a mechanical compartment of the truck.
In a separate incident just two days later, three others were arrested in Opelika, Alabama. Leopoldo Ramos, Jr. (29), from Texas, Octavio Garza Maldanado (40), from Texas, and Jennifer Lynn Everett (30), from Virginia, were traveling in two separate vehicles when they were stopped by Alabama State Troopers. The State Troopers were able to determine that the lead vehicle had recently passed through a Texas border crossing checkpoint and was heading Eastbound towards Georgia. After pulling the vehicles over and searching them, Troopers found approximately 10 kilos of cocaine in a hidden compartment in the lead vehicle’s interior.
In the third event, Nathan Harlan McDermott (41), from Tennessee, was arrested on September 16, 2016 after he was stopped near Hope Hull, Alabama and admitted to traveling from South Texas (near the Mexican Border) to make a cocaine delivery to the Atlanta area. Upon searching McDermott’s tractor trailer, Troopers found approximately 15 kilograms of cocaine hidden in the trailer among the cargo.
At this time, law enforcement does not believe any of the three cases are related. If convicted, each of the individuals charged face prison time ranging from 10 years to life, as well as significant fines and restitution.
An indictment is merely a method of charging an individual with a crime and each defendant is presumed innocent until proven guilty at trial.
These cases are being investigated by the Alabama Law Enforcement Agency’s (ALEA) Highway Patrol Division, the Alabama State Bureau of Investigation (SBI), and the Drug Enforcement Administration (DEA). They are being prosecuted by Assistant United States Attorneys Bradley Bodiford and Curtis Ivy.
State Representative Pleads Guilty to Wire Fraud and Failure to File Federal Income Tax ReturnsRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Reginald Fullwood (41, Jacksonville) has pleaded guilty to one count of wire fraud and one count of failure to file federal income tax returns. He faces a maximum penalty of 20 years in federal prison for the wire fraud offense, and a year of imprisonment for the failure to file charge. His sentencing hearing has been set for January 9, 2017.
According to court documents, while Fullwood was seeking election to the Florida House of Representatives, as well as during re-election campaigns, he caused numerous electronic funds transfers from the “Reggie Fullwood Campaign” bank account to a bank account of an entity owned by Fullwood, Rhino Harbor, LLC. Fullwood then used those funds, approximately $65,000 in financial contributions, for personal expenses, including restaurants, grocery stores, retail stores, jewelry stores, florists, gas stations, and liquor stores. To conceal his fraudulent embezzlement of campaign funds, Fullwood submitted or caused to be submitted false and fraudulent campaign expenditure reports to the State of Florida, which included inflated and/or non-existent campaign expenses.
In the State of Florida, a candidate, or the spouse of a candidate, may not use funds on deposit in a campaign account to defray normal living expenses for the candidate or the candidate’s family, other than expenses actually incurred for transportation, meals, and lodging during travel in the course of the campaign.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Mark B. Devereaux and Jason Mehta.
Southern Coal Corporation to Make System-Wide Upgrades to Reduce Water Pollution from Mining Operations in AppalachiaRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Southern Coal Corporation and 26 affiliated mining companies that requires the companies to make comprehensive upgrades to their coal mining and processing operations to prevent discharges of polluted wastewater from their mines in Appalachia. The estimated cost of these measures is $5 million.
The settlement also requires the establishment of a $4.5 million letter of credit and a standby trust that will guarantee sufficient funding for and a mechanism to accomplish, compliance with the Clean Water Act and the work the companies have agreed to perform under the settlement, should the companies fail to do so. The companies will also pay a $900,000 civil penalty, divided among the federal government and the four state co-plaintiffs, Alabama, Kentucky, Tennessee and Virginia.
The settlement resolves alleged violations of state-issued Clean Water Act National Pollutant Discharge Elimination System (NPDES) permits by illegally discharging various pollutants at the companies’ mining and processing operations in Alabama, Kentucky, Tennessee, Virginia and West Virginia and violations of the companies’ legal responsibilities to sample the quality of their discharges to rivers and streams. The estimated annual pollutant reductions through implementation of the settlement is approximately five million pounds.
“This settlement is designed to bring the companies into compliance with the Clean Water Act and requires actions that should prevent future violations,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “We appreciate our state partners working with us on the consent decree and for their joint oversight efforts with us in the future.”
“Discharging pollution from coal mining into waterways is a serious threat to clean water, and that’s why EPA stepped in on behalf communities across Appalachia,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Company-wide compliance programs like the one Southern Coal Corporation will establish are critical to protecting our lakes, rivers and streams and the people who depend on them.”
Under the settlement, Southern Coal Corporation and its affiliated mining companies must implement a series of measures to ensure compliance and prevent future Clean Water Act violations at their coal mining operations, including:
- Implementing a company-wide, EPA-approved environmental management system.
- Maintaining a centralized data management system to track audit results, violations, water sampling data and compliance efforts.
- Constructing a public website for posting documents such as NPDES permits, discharge monitoring reports, water sampling data, effluent violation information, notices of violations and compliance orders.
- Conducting regular internal and independent third-party environmental audits and outlet inspections and undertaking necessary alterations or maintenance measures.
- Providing training for all employees whose responsibilities include environmental compliance and contractors hired to perform duties required by the consent decree.
- Paying a civil penalty of $900,000.
- Paying escalating stipulated penalties if Clean Water Act permit violations continue to occur.
- Providing for a letter of credit and a standby trust and trustee to ensure that there is sufficient money and a mechanism to achieve compliance with the consent decree and the Clean Water Act, if Defendants fail to perform.
The government complaint filed concurrently with the settlement alleged that over the last five years, Southern Coal Corporation mining and processing operations have violated discharge limits for pollutants including iron, total suspended solids, aluminum, pH and manganese in their state-issued permits. The complaint also alleged that Southern Coal Corporation failed to submit complete and timely discharge monitoring reports, made unauthorized discharges and failed to respond to EPA requests for information.
EPA discovered the violations through investigations and inspections of several Southern Coal Corporation mining operations, reviewing various information provided by the companies and coordinating with the affected state governments.
Created in 1972 by the Clean Water Act, the National Pollutant Discharge Elimination System permit program addresses water pollution by authorizing states, with EPA oversight, to issue permits that set strict limits for the discharge of certain types of pollutants by certain types of entities.
The proposed consent decree, lodged in the U.S. District Court for the Western District of Virginia, is subject to a 30-day public comment period and approval by the federal court.
Information about submitting a public comment is available at: www.justice.gov/enrd/consent-decrees.
For more information on this settlement and to read the consent decree, go to: https://www.epa.gov/enforcement/southern-coal-corporation-clean-water-settlement
Sentencings for September 20 - September 28, 2016Read the Press Release
Pablo Ramirez-Andrade, 32, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on September 28, 2016, for illegal re-entry of a previously deported alien into the United States. Ramirez-Andrade was arrested in Gillette, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Rogelio Cabrera-Bedolla, 41, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on September 28, 2016, for illegal re-entry of a previously deported alien into the United States. Cabrera-Bedolla was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Alton Paul Nelson, 31, of Vanderwagen, New Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 28, 2016, for failure to register as a sex offender. Nelson was arrested in Delta, Colorado. He received 30 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the U.S. Marshals Service.
Charles Mathis, 52, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 28, 2016, for bank robbery. Mathis was arrested in Douglas, Wyoming. He received 77 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $809.00 in restitution. This case was investigated by the Douglas Police Department, the Converse County Sheriff’s Office and the Federal Bureau of Investigation.
Joseph Tyrell Devries, 33, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 27, 2016, for being a felon in possession of a firearm. Devries was arrested in Johnson County, Wyoming. He received 110 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Luis Enrique Salazar-Benitez, 42, of Sinaloa, Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on September 27, 2016, for conspiracy to distribute 500 grams or more of methamphetamine. Salazar-Benitez was arrested in Casper, Wyoming. He received 135 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Campbell County Sheriff’s Office, the Gillette Police Department, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Julio Cesar Munoz-Hernandez, 30, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on September 26, 2016, for illegal re-entry of a previously deported alien into the United States. Munoz-Hernandez was arrested in Gillette, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Ricky Lee Capellen, 56, of Riverton, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 26, 2016, for conspiracy to distribute at least 500 grams of methamphetamine. Capellen received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $900.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Indian Affairs.
Avel Lopez-Perez, a/k/a Ricardo Alvarez, 45, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 22, 2016, for illegal re-entry of a previously deported alien into the United States. Lopez-Perez was arrested in Casper, Wyoming. He received 18 months of imprisonment, to be followed by five years of supervised release, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Kwok Lun Chow, 49, of San Francisco, California, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 22, 2016, for possession with intent to distribute marijuana. Chow was arrested in Cheyenne, Wyoming. He received 36 months of probation, with the first eight months on home confinement and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Highway Patrol and the Wyoming Division of Criminal Investigation.
Kemp Eugene Cravens, 64, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 20, 2016, for bank robbery and use and brandish a firearm. Cravens was arrested in Casper, Wyoming. He received 108 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment, a $500.00 fine and $676.00 in restitution. This case was investigated by the Evansville Police Department, the Casper Police Department, the Natrona County Sheriff’s Office, the U.S. Marshals Service and the Federal Bureau of Investigation.
Second Former UB Student Pleads Guilty to Drug and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Kevin Szura, 20, of Queens, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of, controlled substances and money laundering conspiracy, before U.S. District Judge Richard J. Arcara. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that Szura conspired with others to sell mollies and Xanax. The defendant used the proceeds of the Xanax sales to buy and attempt to buy approximately $74,000 in bitcoins, and then used the bitcoins to buy more drugs for distribution. Szura and co-defendant Zhe Wang were students at the University at Buffalo during a portion of the conspiracy between March 2015 and March 2016. In March 2016, law enforcement officers intercepted two packages mailed from Canada and addressed to one of Szura’s co-defendants in Amherst that each contained nearly 3,000 Xanax bars.
Zhe Wang has also been convicted and is awaiting sentencing.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski.
Sentencing is scheduled for February 3, 2017, before Judge Arcara.
Seaworld Manager Sentenced to 30 Months in Prison for Stealing More Than $1 MillionRead the Press Release
Assistant U.S. Attorney Emily W. Allen (619) 546-9738
NEWS RELEASE SUMMARY – September 23, 2016
SAN DIEGO – Former SeaWorld San Diego manager Wilfred David Joseph Jobin-Reyes (known as “Sebastian Jobin”) was sentenced today to 30 months in custody for embezzling $818,000 from SeaWorld over more than eight years while he was employed there.
Jobin-Reyes created fake invoices for a sham company he secretly owned, called “SJ Merchandise.” He then used his management position to approve the payments on behalf of SeaWorld. He also created an alias along with a dummy email account he used to correspond with SeaWorld officials, pretending to be SJ Merchandise owner “John Caldwell.” In fact, Jobin-Reyes used his work computer to generate the fraudulent invoices, for disposable goods like “wildlife animal bookmarks,” “sea creature rings,” and “purple shiny ornaments” that were difficult to trace or verify in SeaWorld’s inventory. Over time, his invoices grew larger, so that by 2015 he was requesting fraudulent payments for amounts just under the $10,000 threshold that would have triggered further review by his bosses at SeaWorld. SeaWorld eventually discovered the fraud, but only after Jobin-Reyes had pocketed more than $800,000 in payments to his fake company.
Jobin-Reyes’ fraud did not stop with SeaWorld. He also used the sham merchandise company to cheat the IRS by claiming fake expenses on his tax returns. By pretending that his business was underwater with hefty losses, Jobin-Reyes reduced the amount of taxes he claimed he owed, and underpaid more than $200,000 for tax years 2010 through 2014. In fact, none of the claimed expenses were true, because SJ Merchandise didn’t conduct any real business at all.
In addition to the fabricated “John Caldwell,” Jobin-Reyes also stole the identity of a real person, his friend and former roommate who had once given Jobin-Reyes access to his personal information. Jobin-Reyes convinced his friend to open business banking and credit accounts, using the friend’s social security number and good credit, then used those accounts to receive and disburse the illegal proceeds from SeaWorld. He then went on to use the friend’s social security number to open several new credit cards, without the friend's knowledge. Jobin-Reyes admitted that he left his friend with unpaid and overdue balances of at least $177,000.
Jobin used the money he stole from SeaWorld, the taxpayers, and his friend’s credit cards to fund a lavish lifestyle he could not otherwise afford. He spent the proceeds on cruises, plane tickets, hotels, restaurants, and shopping. In the year preceding his arrest, according to court documents, he traveled around the country from New Orleans to Hawaii, spending the stolen money. He even arranged to have credit cards printed for his family members, secretly racking up more debt on his friend’s credit.
“Business insiders who abuse the trust of their employers and the community should be warned that they face serious consequences and will be brought to justice,” said U.S. Attorney Laura E. Duffy. “We are dedicated to protecting our local businesses, citizens, and taxpayers from corruption and deceit.”
U.S. Secret Service Special Agent in Charge David Murray said, “Today’s sentencing is a reminder to those who engage in financial fraud and identity theft, that the U.S. Secret Service and its law enforcement partners will actively investigate and pursue prosecution of those who violate the trust of their employers for their own personal gain.”
“As today’s sentencing of Mr. Jobin-Reyes demonstrates, defrauding your employer, your friend, and deceiving the IRS results in serious consequences, both financially and in terms of one’s freedom,” stated IRS-Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “IRS-Criminal Investigation is committed to working with our law enforcement partners, as well as with members of the local community, to identify, investigate, and prosecute those who commit fraud for their own personal financial gain.”
Jobin-Reyes was arrested in Dallas, Texas in March 2016, and since arrest he has been detained in federal custody as a flight risk. He was sentenced by U.S. District Judge Jeffrey T. Miller. In addition to the prison sentence, Jobin-Reyes was ordered to pay $818,000 in restitution to SeaWorld and $177,000 to the victim of the identity theft. He also is obligated to pay hundreds of thousands of dollars in back taxes and penalties to the IRS.
DEFENDANT:
Wilfred David Joseph Jobin-Reyes, 16CR0811-JM Age: 48 San Diego, CA
CHARGES
Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum Penalties: 20 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
Filing False a Tax Return, in violation of 26 U.S.C. § 7206(1)
Maximum Penalties: 3 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
AGENCIES
United States Secret Service
Internal Revenue Service Criminal Investigation
Sacramento Resident Indicted for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jeffrey Miles Hayes, 54, of Sacramento, was arrested today after a federal grand jury returned an indictment charging him with receipt of child pornography, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, law enforcement identified an internet connection at Hayes’s residence that was being used to upload child pornography to blog sites. A search of the residence revealed an iPad, identified as belonging to Hayes, that was receiving and distributing child pornography through chat messages.
This case is the product of an investigation by the Sacramento Internet Crimes Against Children Task Force in conjunction with the Sacramento County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Shelley D. Weger is prosecuting the case.
If convicted, Hayes faces a sentence of 15 to 40 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Postal Service Employee Convicted of Fraudulently Receiving over $50,000 in Worker’s Compensation BenefitsRead the Press Release
Baltimore, Maryland – A federal jury today convicted U.S. Postal Service employee Lori A. Parry, age 44, of Baltimore, today on charges related to her fraudulent receipt of over $50,000 in federal worker’s compensation benefits.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.
According to information presented at her five-day trial, Parry was employed by the U.S. Postal Service from 1989 through July 2013, as a letter carrier and in other positions. On November 12, 1992, Parry, while employed as a letter carrier at the Dundalk Post Office, claimed that she suffered a left knee contusion while delivering mail.
Employees of the USPS who are disabled due to occupational injuries can receive compensation benefits under the Federal Employees’ Compensation Act (FECA), which is administered by the Department of Labor (DOL) Office of Worker’s Compensation Programs (OWCP). In certain cases, employees can receive up to 75% of their monthly salary.
According to the evidence, in December 2004, Parry applied for FECA benefits due to the 1992 injury. Although Parry received treatment from various physicians, including several arthroscopic surgeries and extensive physical therapy, she reported little or no improvement. Parry returned to limited duty assignments at the Post Office, and worked semi-regularly for much of 2004 through 2007.
On February 8, 2007, Parry had surgery on her knee, and did not return to work. Parry reported that she was unable to work, and requested additional FECA benefits. Witnesses testified that Parry received FECA benefits for the knee injury from February 8, 2007 through June 1, 2013, totaling over $249,000. The evidence showed that multiple times during that period, Parry claimed in documents and oral statements supporting her claim for benefits that she was unable to return to work in any capacity during that time.
According to trial evidence, from at least February 2012 through August 22, 2013, Parry’s medical condition improved so that she was capable of performing work at the USPS. Parry did not report the improvement in her medical condition to the DOL or to the USPS, as required. In addition, witnesses testified that Parry falsely represented her medical condition to her treating physician, and on February 9, 2012, at the end of an appointment with her physician, Parry gave the doctor a $100 bill as she was leaving the office.
According to trial testimony, an investigation determined that from at least September 2012 through April 2013, while receiving FECA benefits, Parry regularly engaged in strenuous yard work and other vigorous activities. Parry was observed and videotaped as she performed these tasks without limitation and not wearing a brace of any kind.
At Parry’s next visit to her physician, she was informed that she was physically able to return to her employment. The same day as that visit, April 22, 2013, Parry returned to full duty as a mail processing clerk without restrictions at the Baltimore Processing and Distribution Center (P&DC).
Witnesses testified that on April 23, 2013, Parry was interviewed by investigators and confirmed she last worked on February 7, 2007 and returned to full duty on April 22, 2013. Parry falsely told investigators that she did not and could not engage in any strenuous activity while she was off work. Parry falsely stated that she just sat on the couch all day watching television, reading, and crocheting, and denied performing any strenuous activities.
Trial evidence showed that from March 2012, through June 1, 2013, Parry fraudulently received FECA benefits totaling more than $50,000.
Parry faces a maximum sentence of five years in prison for false statement and fraud to obtain federal employees’ compensation and for making false statements; and a maximum of 10 years in prison for theft of government property. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 19, 2017, at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the USPS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Portola Valley and Hillsborough Residents Charged in Bank Fraud SchemeRead the Press Release
SAN FRANCISCO – Naum Morgovsky was arraigned in federal court today for his alleged role in a scheme to defraud two federally-insured banks through short sales of two rental properties in Hawaii, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The arraignment took place in San Francisco before the Honorable Sallie Kim, U.S. Magistrate Judge, and follows an indictment handed down by a federal grand jury on September 29, 2016, charging Morgovsky and his co-defendant, Mark Migdal, with conspiring to commit the alleged crimes.
According to the indictment, between June 2009 and July 2016, Morgovsky, 67, of Hillsborough, and Migdal, 71, of Portola Valley, conspired to defraud two federally-insured banks, now Bank of America and EverBank, by seeking the banks’ approval for short sales of two condominiums. A short sale is a sale in which a lender allows a property to be sold at a price less than the amount owed on the loan. The indictment alleges that in 2006, Migdal purchased condominiums in a development in Kihei, Maui. The defendants then sought the banks’ approval of the short sales in the same development in which Migdal owned the other properties. According to the indictment, Morgovsky and Midgal conspired to convince the banks to allow the properties to be sold to a person who was deceased, but whose identity was used to conceal the true identity of the purchaser. The conspiracy also allegedly involved submission of false statements to the bank about Midgal’s employment status and income. After the banks approved the short sales in 2009 and 2010, Migdal continued to treat the property as his own, including collecting rent and paying taxes and homeowners’ association dues. The properties were transferred to Migdal’s wife in April 2016.
On August 24, 2016, the United States Attorney’s Office for the Northern District of California filed a complaint against Morgovsky alleging he committed bank fraud. The indictment adds Migdal as a defendant and charges Morgovsky and Migdal each with two counts of bank fraud, in violation of 18 U.S.C. § 1344, and one count of conspiracy, in violation of 18 U.S.C. § 1349. The indictment also seeks forfeiture of the two Hawaii properties. Morgovsky made his initial appearance on August 26, 2016. He remains released from custody on a $1 million bond. Morgovsky’s next appearance is scheduled for October 4, 2014 before the Honorable Vince Chhabria, U.S. District Judge, for a status conference. Migdal is scheduled to make his initial appearance on October 3, 2016, in San Francisco.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of thirty years in prison and a fine of $1,000,000 for each count of bank fraud and conspiracy. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys John Hemann, Ila Deiss, and Colin Sampson are prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
Mililani Businesswoman Pleads Guilty to Filing False Tax ReturnRead the Press Release
HONOLULU – Amalia Ralar, age 43, of Mililani, Hawaii, doing business as Muscle Inc., pleaded guilty in federal court on September 26 to filing a false tax return for the year 2012. At sentencing, scheduled for January 12, 2017, before Senior District Judge Helen Gillmor, Ralar faces a maximum three-year prison sentence and a fine of up to $250,000.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to court documents, Ralar filed a Form 1040 tax return for 2012 that claimed tax due and owing of only $10,872 based on $50,672 in taxable income. In fact, Ralar’s actual income for 2012 was $380,364, which would have resulted in tax of $112,703. As a result, Ralar under-reported her tax for 2012 by $101,831.
Moreover, according to information produced to the court, Ralar agreed that the tax returns she filed for the years 2007, 2008, 2009, 2010, 2011, 2013, and 2014 were also not true and accurate returns. Ralar excluded income from her business operations, resulting in total unpaid tax from 2007 to 2014 of $354,511. Ralar stipulated that she owes that amount in restitution to the IRS. While Ralar’s guilty plea is specifically for the 2012 tax year, her sentencing will be based on the aggregate amount of the loss from all of the years she filed false returns.
The Internal Revenue Service Criminal Investigation Division (IRS CI) led the investigation. The prosecution was handled by Assistant U.S. Attorneys Ken Sorenson and Larry Tong.
Michigan man sentenced for oxycodone distributionRead the Press Release
WHEELING, WEST VIRGINIA – Jeremy Colby Vickerson, 28, of Canton, Michigan, was sentenced to 30 months in prison for distribution of oxycodone, United States Attorney William J. Ihlenfeld, II, announced.
Vickerson was arrested near Bridgeport, West Virginia after being found in possession oxycodone pills. He previously pled guilty in April 2016 to one count of “Distribution of Oxycodone Within 100 Feet of a Video Arcade Facility.”
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Harrison County Street Crimes and Drug Unit investigated.
U.S. District Judge Irene M. Keeley presided.
McAllen Man Convicted of Attempted Enticement of an Individual he Believed was a MinorRead the Press Release
McALLEN, Texas – Timinson Erin Jackson, 25, of McAllen, has entered a guilty plea to an indictment charging him with attempted enticement of a minor, announced U.S. Attorney Kenneth Magidson.
From May 25, 2016, to June 3, 2016, Jackson engaged in online communications with a person he thought was a 12-year-old minor female. That individual was actually an undercover agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). During these conversations, which were mostly carried out via text messaging, Jackson attempted to persuade, induce and entice this “minor” into having sex with him.
On June 3, 2016, Jackson arranged to meet the individual at a park in McAllen. He was arrested upon his arrival. At that time, Jackson admitted he intended to have sex with an individual whom he believed was a 12-year old minor female.
U.S. District Judge Randy Crane, who accepted the guilty plea today, has set sentencing for Dec. 13, 2016. At that time, Jackson faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, 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."
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on September 30, 2016, Zachary A. Olson, 27, of Lincoln, was sentenced to nine years and two months (110 months) in prison for his involvement in a conspiracy to distribute and possess with intent to distribute 500 grams or more of a substance containing methamphetamine between October of 2014 and October of 2015. Following the prison term, Olson will serve five years on supervised release.
Information obtained by law enforcement indicated that Olson was responsible for the distribution of at least 1.5 kilograms (three pounds) of methamphetamine in the Lincoln area. On October 27, 2015, Lincoln Police contacted Olson and other persons at a Lincoln hotel where at least 35 grams of pure methamphetamine were found. Olson admitted to officers that he had been using and selling methamphetamine for two months.
Olson is currently serving a state sentence of three to five years from Lancaster County District Court for possession with intent to distribute hydrocodone pills. That sentence resulted from a related incident in January of 2015 in which Olson and other persons were contacted at a Lincoln motel and found to be distributing drugs. One of Olson’s associates was found in possession of 49 grams of methamphetamine at that time. Olson’s federal sentence will run concurrent with (at the same time as) the remainder of his state sentence.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Justice Department Files Housing Discrimination Lawsuit Against Owner and Managers of Florida Mobile Home ParkRead the Press Release
This Case is the Third Mobile Home Park Race Discrimination Case the Justice Department Has Filed in the Middle District of Florida in the Last Year
The Justice Department announced today that it has filed a lawsuit against James C. Goss, the owner, and Cathy Plante and Joey Gwozdz, the managers, of May Grove Village Mobile Home Park, an 81-lot property in Lakeland, Florida. The lawsuit alleges that the defendants discriminated against African Americans in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Middle District of Florida, alleges that the managers falsely told African Americans that no mobile homes, or fewer mobile homes, were immediately available for sale, but told similarly situated white persons that more mobile homes were available. According to the complaint, the managers also quoted prospective African-American purchasers higher prices and worse financial terms than similarly situated white purchasers. The lawsuit is based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as buyers to gather information about possible discriminatory practices.
“Housing providers cannot pick and choose homebuyers based on race,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to vigorously enforce the Fair Housing Act to ensure that all people in this country are able to secure housing without facing unlawful barriers.”
The suit seeks monetary damages to compensate victims, civil penalties against the defendants to vindicate the public interest and a court order barring future discrimination.
Individuals who have information about, or who believe they may have been discriminated against at May Grove Village, located at 1725 Gibsonia Galloway Road, in Lakeland, should contact the Justice Department toll-free at 1-800-896-7743, option 94, or by email at [email protected]. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
Goss ComplaintJustice Department Announces Nine Studies Focused on Approaches to Life-Saving Work Authorized by the Violence Against Women ActRead the Press Release
Today the Justice Department’s Office on Violence Against Women (OVW) announced nine new research projects—the first in its Research and Evaluation Initiative launched earlier this year. All nine awards focus on learning more about effective approaches for doing the life-saving work authorized through the Violence Against Women Act (VAWA) and examine specific issues related to victims from underserved and marginalized populations.
The Research and Evaluation Initiative emphasizes researcher-practitioner partnerships that can identify effective strategies and lead to sustainable ways of responding to sexual assault, domestic and dating violence and stalking, and reducing the harmful impact of these crimes on victims and communities.
“These new research and evaluation studies are critical because they focus on issues that are extremely understudied – such as culturally-specific programs for Latina victims, the effects of victimization on incarcerated women, restorative justice and gender bias,” said OVW Principal Deputy Director Bea Hanson, Ph.D. “The more we identify approaches and models that effectively work with specific populations, the more effective we can be in helping victims find the justice they need and deserve.”
OVW’s Research and Evaluation Initiative is developing a comprehensive understanding of what we know about the effectiveness of approaches funded by the VAWA and determine which practices require a closer look and further study.
The nine studies are: 1. University of California, Los Angeles, $399,998: A study of the effects of violence and victimization on incarcerated women and an evaluation of a program designed to reduce the recurrence of violence and victimization in their lives.
2. Washington University, $379,980: An evaluation of an approach to using cognitive processing therapy in rape crisis centers.
3. Community Health and Social Services Center, $348,339: A study of how a culturally-specific program for Latina victims of domestic and sexual violence meets victims’ self-defined needs.
4. University of New Hampshire, $398,857: A study of a trauma-informed residential program for victims of domestic violence who struggle with substance use disorders.
5. International Rescue Committee Inc., $314,666: A study of the experiences, service needs and help-seeking strategies of refugees, asylum-seekers and other newly-arrived immigrants who are victims of domestic violence and sexual assault.
6. University of Kentucky Research Foundation, $499,999: An examination of the healing and self-sufficiency benefits of an agriculture-based program for residents of a domestic violence shelter.
7. Portland State University, $400,000: A study of patterns and disparities in the family court experiences of litigants from cultural and linguistic minority groups.
8. Sam Houston State University, $393,049: An evaluation of a training program for all sworn law enforcement personnel in an urban police department on the Justice Department’s guidance on gender-bias policing.
9. Fund for the City of New York, $271,720: A survey of programs that use restorative justice to address domestic violence and the development of guidelines for these programs. Restorative justice seeks to rehabilitate offenders through reconciliation with the people and communities they have victimized.* * *
OVW provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 21 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges.
Justice Department Announces Fair Housing Settlement with Montana DevelopersRead the Press Release
The Justice Department announced today that the developers and designers of 31 apartment buildings in or near Helena, Montana, have agreed to settle a lawsuit alleging that the buildings were not built to be accessible to people with disabilities, as required by the Fair Housing Act.
The department’s lawsuit, which was also filed today, alleges that the developers and designers of the properties designed and built the 64 ground floor apartments at these buildings with steps to unit entrances, inaccessible bathrooms and kitchens or other features that make them inaccessible to people with disabilities. The defendants named in the suit include the developers and their affiliated companies – Gabriel Nistler, Sommer Nistler, Ross Royland, Patrick Royland, Royland & Nistler Properties LLC and Werner-Nistler Properties LLC – and the designers of the properties, Derek Brown and Derek Brown Consulting Inc.
Under the settlement, which still must be approved by the U.S. District Court for the District of Montana, the defendants must undertake extensive corrective actions to make the apartment buildings accessible to persons with disabilities, including wheelchair users. These corrective actions include:
- creating accessible routes to ground floor apartment entrances, accessible routes to parking, mailboxes and other common areas;
- making interior modifications such as moving the locations of fixtures or moving the location of electrical outlets and thermostat controls that make the apartments more accessible to people with disabilities;
- constructing new multifamily housing with enhanced accessibility features; and
- paying $20,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been harmed by the accessibility violations.
“All people with disabilities deserve an equal opportunity to live in the housing of their choice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “By removing accessibility barriers in existing buildings and creating new accessible units, this settlement will help ensure that individuals with disabilities in Helena, Montana, enjoy the rights guaranteed by the Fair Housing Act.”
“This settlement is emblematic of the Justice Department’s commitment to fair housing standards for all,” said U.S. Attorney Michael Cotter of the District of Montana. “It sends a message that failing to consider the needs of individuals with disabilities in the construction of new housing is simply not acceptable in Montana communities, and helps ensure that the needs of those individuals will be considered from the earliest stages of the design and permitting processes.”
Individuals who may be entitled to share in the settlement fund will be identified through a process established in the settlement. Persons who believe they were subjected to unlawful discrimination at one of the properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743, Mailbox 9995, or email the department at [email protected].
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Among other things, the Fair Housing Act requires that new multifamily housing be designed and constructed with features that make it accessible to people with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Housing and Civil Enforcement Section at 1-800-896-7743, email the Justice Department at [email protected] or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 or through www.hud.gov/fairhousing.
Nistler II Complaint Nistler II Consent DecreeJob Fair Held for Returning Citizens as Part of the Deparment of Justice's Smart on Crime InitiativeRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Patrick Miles announced the holding of a job fair today in West Michigan for individuals who have recently returned to our communities after serving their terms in the custody of either the Michigan Department of Corrections or the Federal Bureau of Prisons. The event is part of the Department of Justice’s Smart on Crime initiative. Approximately 250 returning citizens connected with 18 local employers about job opportunities at the Job Fair, which took place at LINC UP, 1167 Madison SE, in Grand Rapids. This is the first job fair in West Michigan targeting returning citizens.
"Employment is crime prevention," U.S. Attorney Miles explained. "We are working on not only prosecuting crimes, but also preventing them. A lack of job opportunity for those who have paid their debt to society and served their time is a primary reason they return to a life of crime. A felony record should not be an automatic life-time ban on any employment. We need those with a felony record in their past to be productive citizens contributing to society and taking care of their loved ones."
The Job Fair follows the Employer Summit U.S. Attorney Miles held with area employers in May to encourage them to consider increasing their talent pool through the hiring of formerly incarcerated individuals. Given the turn-out of employers today, the Summit succeeded. Eighteen companies were represented at the Fair, including Cascade Engineering and Butterball Farms Inc. Cascade Engineering and Butterball Farms, Inc., have experienced great success hiring returning citizens. U.S. Attorney Miles expects the many additional employers in attendance today will soon have the same experience. Approximately 250 candidates for employment attended to help prove him right.
U.S. Attorney Miles noted that "about one in three Americans has a criminal record. I appreciate those employers who recognize the importance of not excluding a large segment of our society from being productive."
The Employer Summit and Job Fair are part of U.S. Attorney Miles’s on-going efforts to address the problem of recidivism beyond simply re-prosecuting. In 2015, he introduced "Facing Choices" forums in partnership with the Michigan Department of Corrections, for state parolees. Parolees are not only reminded that they will be held accountable if they re-offend, they also hear from formerly incarcerated individuals who share strategies for success while on parole. U.S. Attorney Miles will host a Facing Choices forum next week in Benton Harbor. U.S. Attorney Miles’s office also supports the U.S. District Court’s Accelerated Community Entry program of intensive supervision for individuals on federal supervised release who present a high risk of recidivism.
END
Illinois Furniture Importer and Manager Agree to Pay $1,525,000 to Resolve False Claims Act Allegations Under Civil Settlement with United StatesRead the Press Release
Daniel Scott Goldman and his companies, Ecologic Industries LLC and OMNI SCM LLC will collectively pay $1,525,000 under a civil settlement with the United States Department of Justice, announced United States Attorney Richard L. Durbin, Jr. The settlement resolves a lawsuit brought under the False Claims Act alleging that the companies made or conspired with others to make false statements to avoid paying duties on wooden bedroom furniture imported from the People’s Republic of China.
Ecologic Industries sells furniture for student housing, while OMNI SCM provided procurement and supply chain services and served as importer of record for Ecologic. Goldman controlled both entities through a number of LLCs and trusts. Under the agreement, Goldman will pay a total of $850,000.00, while OMNI and Ecologic together will pay $675,000.00.
“Customs duties are meant to protect domestic companies and American workers from unfair competition from abroad. Those who import goods into the United States must comply with the law,” said U.S. Attorney Richard L. Durbin, Jr.
The government alleged that between February 2012 and December 2014, Ecologic, OMNI and Goldman knowingly misclassified or conspired with others to misclassify wooden bedroom furniture on documents presented to U.S. Customs and Border Protection (CBP) to avoid paying antidumping duties on imports of wooden bedroom furniture manufactured in the People’s Republic of China. Specifically, Goldman and his companies allegedly classified the furniture as office and other types of furniture not subject to duties while selling the furniture in the student housing market for use in dormitory bedrooms. The Department of Commerce assesses, and CBP collects, antidumping duties to protect U.S. businesses by offsetting unfair foreign pricing and foreign government subsidies.
The allegations resolved by the settlement were originally brought by Matthew L. Bissanti, Jr. under the qui tam or whistleblower provisions of the False Claims Act. The act permits private parties to sue on behalf of the United States those who falsely claim federal funds or, as in this case, those who avoid paying funds owed to the government or cause or conspire in such conduct. The act also allows the whistleblower to receive a share of any funds recovered through the lawsuit. Bissanti will receive $228,750.00 as his share of the settlement.
The lawsuit is captioned United States ex rel. Bissanti v. Daniel Scott Goldman, et al., No. A14-CV-00497 (W.D. Tex.). The case was handled by the U.S. Attorney’s Office for the Western District of Texas; Civil Division’s Commercial Litigation Branch; CBP’s Office of Field Operations, Office of Regulatory Audit and Office of Chief Counsel; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Susan Strawn handled the case for the government.
Hyde Street Shooting Investigation Leads to Arrest of New York Man on Gun and Drug CrimesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Quincy Alexander, 28, of Brooklyn, New York, was charged today in a two-count complaint filed in federal court with being a felon in possession of a firearm and with possession with intent to distribute cocaine base. Alexander is scheduled to appeared before U.S. Magistrate Judge John M. Conroy at 4:00 p.m. today.
According to the affidavit in support of the criminal complaint, Burlington Police came into contact with Alexander during their investigation of the September 28, 2016, shooting at 31 Hyde Street in Burlington, Vermont. Officers approached Alexander on September 29, 2016, as he was sitting in a vehicle matching the description of the vehicle involved in the shooting. After a trained narcotics dog alerted to the presence of narcotics, law enforcement, working with the Office of the Chittenden County State’s Attorney, obtained a search warrant for the vehicle from the Chittenden County Superior Court. The resulting search located two firearms, a 9 mm pistol and a .38 caliber revolver, and approximately 80 grams of crack cocaine packed for further distribution. During the investigation of the 31 Hyde Street shooting, police recovered 9 mm bullets within residences that had entered the premises through the exterior of the building.
Records checks indicated Alexander had two prior felony convictions for Grand Larceny from New York, prohibiting him from possessing a firearm.
Shortly after his arrest, Alexander complained of chest pains and was taken by Burlington Police to the Emergency Department at UVM Medical Center for treatment. Although he remained handcuffed while in the Emergency Department, Alexander attempted to escape, fleeing his examination room. He was re-apprehended by Burlington Police officers before he could leave the facility.
The complaint filed today is an accusation only and the defendant is presumed innocent until and unless proven guilty. If convicted, Alexander could face up to ten years in prison for his possession of a firearm as a felon, and up to twenty years for his possession with intent to distribute crack cocaine.
“The combination of drugs and guns is a lethal one that has no place in the Burlington community,” United States Attorney Eric Miller said. He commended the Burlington Police Department and the Chittenden County State’s Attorney’s Office for their quick work in apprehending Alexander, and thanked the U.S. Drug Enforcement Administration and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives for their support of the investigation.
"We will not tolerate gun violence in Burlington and our response to it will always be relentless," said Brandon del Pozo, the Burlington Chief of Police. "I'd like to thank our officers for their fast and thorough search for the suspect's vehicle and the safe and careful work they did once it was located. We're grateful to the US Attorney's office and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance. We're fortunate to have this team protecting our city."
Mickey D. Leadingham, Special Agent in Charge, ATF Boston Field Division, stated, "ATF has a strong presence in Burlington, Vermont, and works closely on combatting gun violence with the Burlington Police Department and the U.S. Attorney’s Office. ATF will continue to build on these relationships in its efforts to curb gun violence, along with the illegal possession of firearms."
AUSA Michael P. Drescher represents the United States. The Office of the Federal Public Defender represents Alexander.
Home Health Care Agency Ordered to Pay over $6 Million for False Claims Made to D.C. MedicaidRead the Press Release
WASHINGTON – A federal judge has ordered Speqtrum Inc., a home health care agency, to pay the United States $6.15 million in civil damages after ruling in the government’s favor in a lawsuit alleging that the company violated the False Claims Act by repeatedly and routinely falsifying records to obtain funds from Medicaid.
The judgment was announced today by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
The United States filed suit against the company in 2010 and the case went to trial earlier this year in the U.S. District Court for the District of Columbia. In February 2016, the Honorable James E. Boasberg ruled in favor of the government, and on September 23, 2016, he issued the order setting damages.
According to the government’s evidence, Speqtrum, Inc. is based in Upper Marlboro, Md., and operated in the District of Columbia. The company was a participating provider and received reimbursement from the District of Columbia’s Medicaid program.
Under the Medicaid program, Speqtrum, Inc. was initially approved to furnish elderly and disabled patients with assistance in the day-to-day activities of living, such as bathing, dressing, and taking needed medications. D.C. Medicaid, which is subsidized by the federal Medicaid program, paid for many of Speqtrum’s services for low-income patients.
The District of Columbia’s Department of Health Care Finance discovered irregularities in Speqtrum’s records during a routine audit in May 2009. A team consisting of Special Agents from the FBI’s Washington Field Office and the U.S. Department of Health and Human Services Office of the Inspector General then began an investigation, which included the execution of search warrants on Speqtrum’s offices in Washington, D.C. The documents collected confirmed that patient files contained forged signatures or falsified timesheets. One document contained various practice runs at forging a doctor’s signature – which later appeared in a patient file. Still other documents demonstrated that employees alerted Speqtrum’s President and Founder, Pauline Nnawuba, to the fact that high-level employees had been defrauding Medicaid on the company’s behalf, but Speqtrum failed to report the conduct to Medicaid. At the conclusion of the investigation, the United States filed the False Claims Act action, alleging a massive and routine pattern of fraud by high-level employees of Speqtrum.
In his decision to treble the initial $1.3 million damages awarded to the United States under the False Claims Act, and to further impose an additional $10,000 civil penalty for each of the 216 D.C. Medicaid invoices submitted by Speqtrum, Judge Boasberg found the loss to Medicaid to be “substantial,” and further found that Speqtrum’s conduct was “egregious and willful in its cooking of the books, overbilling for hours not worked, charging … for clients it did not service, and forging physician signatures on its paperwork.” Accordingly, Judge Boasberg awarded the United States a total of $6.15 million. The amount will be shared with the District of Columbia’s Medicaid program.
In announcing the judgment, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge DiGiulio commended the work of those who investigated the case from the FBI and HHS-OIG. They also expressed appreciation for the assistance provided by the District of Columbia Office of the Attorney General and the Medicaid Fraud Control Unit of the District of Columbia Office of the Inspector General. Finally, they acknowledged the efforts of those who worked on the case and brought it to trial from the U.S. Attorney’s Office, including Assistant U.S. Attorney Darrell C. Valdez and Paralegal Specialist Idongesit “Benji” Umo.
The lawsuit is captioned United States v. Speqtrum, Inc., Civil Action 10-cv-2111 (D.D.C.).
Harrison County man sentenced for unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Aric J. Stutler, 38, of Mount Clare, West Virginia, was sentenced today to 84 months in prison for illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Stutler, who was previously convicted of “Armed Bank Robbery” in Ohio, was discovered to be in possession of a .22 caliber pistol last year in Harrison County, West Virginia. Stutler pled guilty in May 2016 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. District Irene M. Keeley presided.
Gorham Man Sentenced to 10 Years for Fentanyl and Heroin TraffickingRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that David Thurlow, 28, of Gorham, Maine, was sentenced yesterday in U.S. District Court by Judge D. Brock Hornby to 10 years in prison to be followed by three years of supervised release for distributing fentanyl and heroin.
According to Court records, from at least December 2015 until February 2016, Thurlow distributed heroin and fentanyl in the greater Portland area.
This case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Gorham Police Department.
Georgia Couple Charged with Scheme to Defraud StaplesRead the Press Release
BOSTON – A husband and wife from Alpharetta, GA were charged today in U.S. District Court in Boston in connection with a scheme to defraud Framingham-based Staples, Inc. of more than $1.4 million.
John Douglas, 46, was charged in an Information with conspiracy to commit wire fraud and mail fraud. His wife, Analyn Douglass [sic], 41, was separately charged in an Information with conspiracy to ship stolen goods in interstate commerce.
According to the Information, the Douglases and others engaged in a complex scheme to defraud Staples of more than $1.4 million worth of customer loyalty rewards and product rebates. John Douglas and one of his associates created more than 1,100 Staples rewards accounts, often using fictitious names, addresses, and contact information. He then created a computer script to query a Staples web site and seek unclaimed customer loyalty rewards for purchases that he did not make. The computer script made thousands of queries a day, amassing more than $889,000 worth of rewards in small increments, often less than a dollar at a time. The Douglases and others then used the rewards like cash to buy merchandise at Staples retail locations throughout the southern United States and along the eastern seaboard, as far north as Massachusetts. Analyn Douglass sold much of the fraudulently obtained Staples merchandise on eBay.
In addition, the Douglases and the associate allegedly used a similar method to claim more than $527,000 in cash rebates from Staples for products that they did not purchase.
Staples discovered the fraud and referred the matter to the Federal Bureau of Investigation and the United States Attorney’s Office for investigation. Staples has cooperated with the government’s investigation.
The charges of conspiracy to commit wire fraud and mail fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain/loss from the offense, whichever is greater. The charge of conspiracy to ship stolen goods provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain/loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David J. D'Addio of Ortiz’s Cybercrime Unit.
The details contained in the Informations are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.