Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 19 July 2016
Former Credit Union Employee Admits to Embezzling Nearly $2.5 MillionRead the Press Release
DES MOINES, IA – On July 15, 2016, Linda Lee Clark, 68, of Corydon, Iowa, waived indictment and pleaded guilty to an United States Attorney’s Information to one count of embezzlement by a credit union employee, announced United States Attorney Kevin E. VanderSchel. Clark admitted to embezzling $2,494,809 of funds from the SCICAP Credit Union in Chariton, Iowa, from the time she began working there as a bookkeeper in 1978 until she resigned in August 2015. Clark redirected account holders’ deposits into her own personal account and the accounts of her children; and initiated unauthorized withdrawals of funds from member accounts into her own personal account and the accounts of her children. Clark concealed the embezzlement by maintaining two sets of accounting records on the Credit Union’s data processing system. As a result of Clark’s embezzlement, the Credit Union became insolvent and was forced into liquidation.
Clark faces a potential statutory sentence of up to thirty (30) years in prison, a fine of up to $1,000,000, and a term of up to three (3) years of supervised release to follow any term of imprisonment. As part of the plea agreement, Clark agreed to pay restitution. Sentencing is scheduled for 10:00 a.m. on November 15, 2016, before United States District Court Judge Rebecca Goodgame Ebinger at the United States Courthouse in Des Moines.
Former Bureau of Prisons Employee Sentenced for Sex OffenseRead the Press Release
PHOENIX – On July 18, 2016, James Toadvine, Jr., 50, of Goodyear, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 12 months in prison. Toadvine had previously pleaded guilty to abusive sexual contact with an inmate under his supervision.
Toadvine worked as a Recreational Specialist at the Bureau of Prisons’ women’s camp in Phoenix, Ariz. Between January and April, 2015, Toadvine engaged in sexual contact with a female inmate who he supervised at the camp. Judge Humetewa, in imposing the prison term, noted that inmates in a prison setting are a vulnerable population.
The investigation in this case was conducted by the Department of Justice Office of the Inspector General. The prosecution was handled by Gayle L. Helart, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-2:15-cr-01535-DJH-1
RELEASE NUMBER: 2016-055_Toadvine
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Federal Jury Convicts Los Zetas Drug Cartel Sicario and Plaza BossRead the Press Release
In San Antonio today, a federal jury convicted a high ranking member and a sicario for the Los Zetas drug cartel, of conspiring to commit numerous murders and other acts of violence in Northern Mexico in furtherance of a drug distribution operation announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; and, Texas Department of Public Safety Director Steve McCraw.
Following a two-week trial, the jury found 33–year-old Marciano Millan Vasquez (aka “Chano”), guilty on all charges including killing while engaged in drug trafficking; conspiracy to distribute and import marijuana; distribution of controlled substances outside the U.S. intending that they be imported into the U.S.; employing minors in a drug crime; conspiracy to distribute cocaine; conspiracy to distribute methamphetamine; conspiracy to possess firearms in furtherance of a drug trafficking crime; and, making a false statement to a federal official.
Testimony during trial revealed that Vasquez was a member of Los Zetas and served as a sicario until 2013 when he took over control of the Piedras Negras “Plaza,” or drug trafficking corridor, for the Los Zetas led by Miguel Trevino Morales (aka “Z-40”) and his brother, Oscar Omar Trevino Morales (aka “Z-42”). Testimony also revealed that as the “Plaza boss,” Vasquez oversaw the importation and distribution of more than 1,000 kilograms of narcotics (marijuana, cocaine and methamphetamine) into the United States and obtained and distributed firearms amongst Los Zetas members. Furthermore, testimony revealed that Vasquez was responsible for the murders of at least 29 individuals in Northern Mexico between January 2009 and July 2015.
In one incident, testimony revealed that in 2013, Vasquez murdered a young girl by dismembering her with an axe and burning her body in front of her parents while laughing and saying, “so you’ll remember me.” Vasquez then ordered that the mother be killed in similar fashion while forcing the father to watch. Vasquez then ordered that the father be killed. According to testimony, Vasquez did so because he and other Los Zetas wanted the father to suffer. In a prior incident, testimony revealed that Vasquez participated in the massacre of numerous people in Allende, Coahuila, Mexico, at the hands of Los Zetas members in March of 2011.
“The witnesses and victims in the trial of Marciano Millan Vasquez gave testament to the unspeakable savagery and violence of the Los Zetas cartel and Vasquez’s complete disregard for human life,” stated United States Attorney Richard L. Durbin, Jr. “Without mercy or compunction he brutally murdered anyone and everyone as it suited him and his cartel, at times inflicting the cruelest of pain, forcing relatives to watch their loved ones murdered before he turned his blades on them. With this verdict his reign of terror over the drug plaza in Piedras Negras has been judged and has come to a close. This jury has done justice. His just punishment awaits him.”
Vazquez has remained in federal custody since his arrest in San Antonio on July 15, 2015. He faces life in federal prison. Sentencing is scheduled for October 26, 2016, before United States District Judge Xavier Rodriguez in San Antonio.
“Today’s guilty verdict in the Marciano Millan Vasquez case is a significant win for the citizens of south Texas and the multiple law enforcement agencies that conducted this robust investigation. We thank the jury for their service. HSI will continue to work closely with its law enforcement partners to target and investigate violent and dangerous members of transnational criminal organizations in an effort to completely dismantle this criminal element,” said Special Agent in Charge Shane Folden, HSI San Antonio.
“The guilty verdict today sends a strong message that violent drug traffickers who prey on our citizens will be held accountable for the crimes they have committed. DEA along with our Federal, state and local law enforcement partners, will continue to utilize all available resources to ensure that members of violent drug trafficking cartels, such as the Los Zetas, are held responsible for their actions,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration- Houston Division.
This case was investigated by the DEA, HSI, and the Texas Rangers together with the U.S. Marshals Service; U.S. Border Patrol; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Federal Bureau of Investigation (FBI); U.S. Customs and Border Protection (CBP); HSI Office of the Chief Counsel; Texas Department of Public Safety (DPS); Texas National Guard; Guadalupe County Sheriff’s Office; Maverick County Sheriff’s Office; Maverick County Constable’s Office; and the police departments of Austin, San Antonio, Hollywood Park, Castle Hills, Live Oak, Leon Valley, Eagle Pass, Eagle Pass Independent School District, and Richland (MS).
The Los Zetas is a powerful drug trafficking organization operating out of Mexico, which funnels thousands of kilograms of cocaine, marijuana, methamphetamine, and other narcotics into the United States each year. The Los Zetas are one of the largest drug cartels operating in Mexico today, with their influence stretching from Central America through Mexico and into cities throughout the United States. The organization is based in the city of Nuevo Laredo, Tamaulipas, Mexico, and has control over several other Mexican cities located on the United States-Mexico border, including Ciudad Acuna and Piedras Negras—both located in Coahuila, Mexico. The large-scale drug trafficking of this organization generates multi-million dollar revenues.
The Los Zetas were first established to be the lethal enforcers for another Mexican drug cartel: The Gulf Cartel. The leaders of the Gulf Cartel recruited former members of the Mexican Army Special Forces from the Groupo Aeromovil de Fuerza Especiales (GAFES) in the late 1990s. However, over time the Los Zetas broke away from the Gulf Cartel and began to operate independently. Heriberto Lazcano, aka Z-3, was the leader of the Los Zetas from 2004 until his death on October 7, 2012 in Coahuila, Mexico. After his death, Miguel Angel Trevino Morales, aka Z-40 and his brother Oscar Omar Trevino Morales, aka Z-42 assumed the leadership positions. In April 2009 the President of the United States identified the Los Zetas as a significant foreign narcotics trafficker under the Kingpin Act and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Z-40 and Z-42 as specially designated narcotics traffickers pursuant to the Kingpin Act in July 2009 and March 2010, respectively.
The Los Zetas are organized in a hierarchical structure with certain groups or cells operating in tiers of command. Its members purchase bulk quantities of narcotics and sell them abroad as well as to other non-Los Zetas drug traffickers operating in Mexico. In addition to those considered actual members of the Los Zetas, any large scale narcotics trafficker operating in a region controlled by the Los Zetas must support and associate with the Los Zetas or risk execution. The Los Zetas not only supplies the drugs (marijuana, cocaine, methamphetamine, etc.) to the traffickers, they charge the traffickers a fee (called the “quota”) for the privilege of operating in Los Zetas territory. That fee includes cash payments as well as firearms and other munitions (ammunition, magazines, etc.). In addition to allowing these traffickers to operate in their territory, the Los Zetas supplies them with real-time intelligence about the movement and location of the Mexican military and law enforcement.
Elmira Woman Charged with Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Rhonda Britt, 63, of Elmira, NY, was charged by criminal complaint with mail fraud. The charge carries a maximum of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, the investigation began in 2015 when elderly victims in California and Hawaii received phone calls from unidentified individuals indicating they won a substantial sum of cash. The victims were advised that in order to collect their prizes that they needed to pay “fees” of many thousands of dollars, and to send the “fees” to Rhonda Britt, in Elmira, NY. The victims sent the “fees” to the defendant through the mail as directed but the promised cash awards were never delivered.
In September 2015, Britt was interview by inspectors with the U.S. Postal Inspection Service and agreed that she would cease sending or receiving money from the scheme. In November 2015, the defendant executed an agreement with the Postal Service to that effect.
In June 2016, inspectors were advised that a Priority Mail envelope had arrived for delivery to Britt. On June 8, 2016, the defendant went to the Elmira Southside Post Office and inquired about the package. Britt later spoke with an inspector acting in an undercover capacity. The defendant advised that she was expecting a check for business purposes and that the check was not for a lottery. The actual sender was an 89-year-old man who had been advised that he won $2,500,000 but in order to receive his prize, he would have to send Rhonda Britt a processing fee.
The investigation is the culmination of an investigation on the part of the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Edmond Man Pleads Guilty to Coercing a Child to Produce Child PornographyRead the Press Release
Oklahoma City, Oklahoma – Carlos Alexander Davila, 23, of Edmond, pleaded guilty today to production of child pornography, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to an affidavit in support of a criminal complaint, Davila contacted a 14-year-old Florida girl in March of 2016 through Facebook, after seeing her post a comment that her friend had committed suicide. They began communicating via Facebook and later by texting and the smartphone application, Kik. It is alleged that Davila told the girl that he was studying to become a psychologist, and he would help her deal with her friend’s suicide. Eventually, the defendant asked the girl for nude photos in exchange for his emotional support. The girl told Davila that she was only 14, but he said it did not matter. The girl eventually sent Davila nude images of herself.
According to court records, the girl reported that Davila became very possessive of her, and when she tried to end their online relationship, he threatened to post online the nude images she had sent him. According to text messages described in court records, the girl begged Davila to delete her images, but he said he would "keep every single pic and video" and would "leak everything" about her "to everyone," especially his "hungry friends in need of fresh meat." Davila allegedly texted her, saying, "The more you ignore me the more I’ll expose you without a care in the world." He allegedly texted her that if she did not respond to him in five minutes, he would post a picture she had sent him—alongside a request that listed her contact information and asked for pictures of men’s penises. Davila allegedly used a phone-number-spoofing app to send the girl text messages to give her the impression that her images had in fact been posted online and that people were contacting her.
On July 13, 2016, Davila was charged in an information with production of child pornography depicting the Florida girl. During the plea hearing today before United States District Judge David L. Russell, Davila admitted he persuaded, induced, and coerced the 14-year-old to produce pornographic images of herself and to text them to him. At sentencing, Davila faces a mandatory minimum of 15 years and up to 30 years in prison. A sentencing hearing will be set by the court in approximately 90 days.
This case was investigated by the Hillsborough County (Florida) Sheriff’s Department and the Edmond Police Department. The case is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Doctor Heads to Prison for Home Health Care FraudRead the Press Release
HOUSTON – A Houston doctor has been ordered to federal prison following his conviction on five counts related to health care fraud, announced U.S. Attorney Kenneth Magidson. A jury deliberated for approximately three hours following a three-day trial before convicting Dr. Warren Dailey, 68, on March 30, 2016, of conspiracy to commit health care fraud, two counts of false statements relating to health care matters, one count of conspiracy to pay and receive health care kickbacks and one count of payment and receipt of health care kickbacks.
Today, U.S. District Judge David Hittner, who presided over the trial, handed Dailey a 63-month sentence. He was further ordered to pay restitution of $913,620. Dailey will also be required to serve a term of three years of supervised release following completion of the prison term.
At trial, the jury heard that from approximately 2009 through 2012, Dailey was a physician specializing in family practice in Houston and defrauded Medicare by authorizing Medicare beneficiaries for home health care when such services were not needed. The evidence at trial demonstrated Dailey conspired with a home health care owner here in Houston and agreed to sign Medicare authorization forms certifying services in exchange for a monthly flat fee from the home health owner. Dailey signed hundreds of authorization forms for beneficiaries that would falsely certify the patients were homebound, that home health was medically necessary and that the beneficiaries were under his care. Medicare paid the home health owner approximately $913,620 for home health services Dailey referred.
Dailey will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are a result of the investigative efforts of the U.S. Department of Health and Human Services -Office of Inspector General, Office of Investigations and the FBI. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Tina Ansari prosecuted the case.
Department of Justice Awards over $12 Million to Florida Law Enforcement AgenciesRead the Press Release
U.S. Attorney A. Lee Bentley, III announces today that the Department of Justice's Bureau of Justice Assistance (BJA) has awarded a total of $12,351,298 to the Florida Department of Law Enforcement (FDLE) through the Edward Byrne Justice Assistance Grant (JAG) program. This amount includes $1 million previously announced by Attorney General Loretta Lynch on June 21, 2016, in response to the shootings at the Pulse Nightclub in Orlando. These funds will be used to reimburse state and local governments, and law enforcement agencies, for personnel and overtime costs related to the shootings.
“In the aftermath of the Pulse nightclub tragedy, over 1,500 law enforcement officers worked tirelessly around the clock for weeks, and many are continuing to do so. Our Office owes a great debt to the Orlando Police Department, the Orange County Sheriff’s Office, and the other state and local law enforcement agencies that did much of this important work,” said U.S. Attorney Bentley. “It is appropriate that these funds will be used to offset some of the extraordinary costs incurred by our state and local law enforcement partners.”
The remaining $11,351,298 is the FY 2016 formula JAG grant awarded to the State of Florida. The goal of Florida's JAG program is to enable local governments and state criminal justice agencies to receive the assistance needed to help fund and improve their own programs in an effort to improve law enforcement and criminal justice within their respective communities and jurisdictions. FDLE will use administrative funds for personnel services, including salaries and benefits, travel expenses, supplies, consultants and contracts, equipment, other costs, and indirect costs necessary to administer JAG funds.
Additionally, BJA will award a total $589,686 to both Orange County ($405,024) and the City of Orlando ($184,662) through the JAG program. Orange County will utilize this award to support a variety of law enforcement related initiatives that will enhance essential county services. The City of Orlando will use its funds to purchase new portable radios for the Orlando Police Department's communications system.
The JAG program is the primary provider of federal criminal justice funding to state and local jurisdictions. The program provides states and 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 crime victim and witness initiatives; and planning, evaluation, and technology improvement programs.
Information about the Office of Justice Programs can be found at http://www.ojp.usdoj.gov.
Defense Contractor Employee Indicted by Grand Jury for Selling Satellite Secrets to Undercover Agent Posing as a Foreign SpyRead the Press Release
Update:
Today, a federal grand jury in Los Angeles returned a two-count indictment that charges Gregory Allen Justice with economic espionage and violating the Arms Export Control Act for his attempts to sell sensitive satellite information to a person he believed to be a foreign intelligence agent.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Justice is scheduled to be arraigned on the indictment on July 27.
If he is convicted of both counts in the indictment, Justice would face a statutory maximum penalty of 35 years in federal prison.
Original News Release:
Defense Contractor Employee from Culver City Arrested for Selling Satellite Secrets to Undercover Agent Posing as a Foreign Spy
LOS ANGELES – A Culver City man was arrested yesterday on federal charges of economic espionage and violations of the Arms Export Control Act for his attempts to sell sensitive satellite information to a person he believed to be a foreign intelligence agent.
U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office and Special Agent John Rayho of the U.S. Air Force Office of Special Investigations (AFOSI) Detachment Commander at Los Angeles Air Force Base made the announcement.
Gregory Allen Justice, 49, who worked for a cleared defense contractor as an engineer on military and commercial satellites during his alleged crimes, was arrested by FBI special agents and made his initial appearance yesterday afternoon in U.S. District Court for the Central District of California where the judge ordered him detained pending trial.
“Our nation’s security depends on the honesty and integrity of those entrusted with our technological secrets,” said U.S. Attorney Decker. “In this case, the defendant sought to undermine our national security by attempting to sell proprietary and controlled information about satellites to a foreign government’s intelligence service. Fortunately, law enforcement agents were able to timely and effectively intervene to protect this critical technology.”
“Mr. Justice allegedly placed his own interests of greed over our national security by providing information on sensitive U.S. technologies to a person whom he believed was a foreign agent,” said Assistant Attorney General Carlin. “In the wrong hands, this information could be used to harm the United States and its allies. The National Security Division will continue to relentlessly identify, pursue and prosecute offenders that threaten our national security. I would like to thank the FBI and the Air Force Office of Special Investigations for their efforts in protecting our nation’s most sensitive information.”
“The enforcement of U.S. laws that prohibit the acquisition of specified economic information and defense-related items is vital to national security and can prove to be a challenging mission when set against the backdrop of legitimate international trade, vast amounts of which occur every day in the United States,” said Assistant Director in Charge Fike. “The cooperative effort among the FBI and Air Force OSI was critical in bringing this case forward for prosecution by the U.S. Department of Justice.”
“This investigation exemplifies the crucial law enforcement alliance the Air Force Office of Special Investigations enjoys with our DOJ counterparts,” said Special Agent Rayho. “We remain diligent in our mission to protect the vital technologies our national defense forces rely on.”
According to the affidavit in support of the criminal complaint, Justice stole proprietary trade secret materials from his employer and provided them to a person whom he believed to be a representative of a foreign intelligence service, but who was in fact an FBI undercover agent. In addition to their proprietary nature, the documents contained technical data covered by the U.S. Munitions List and therefore controlled for export from the United States under the International Traffic in Arms Regulations, according to the allegations. In exchange for providing these materials, Justice allegedly sought and received cash payments.
A criminal complaint contains allegations that a defendant has committed a crime. The defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Justice faces a statutory maximum penalty of 15 years in federal prison for the economic espionage charge and a statutory maximum penalty of 20 years in federal prison for violating the Arms Export Control Act. The FBI and AFOSI investigated the case. Attorneys from the U.S. Attorney’s Office of the Central District of California and the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Cumberland County, New Jersey, Man Sentenced to More Than 10 Years in Prison for Methamphetamine ConspiracyRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 121 months in prison for his role in a conspiracy to distribute methamphetamine, U.S. Attorney Paul J. Fishman announced.
Alex Rodriguez, 35, of Vineland, New Jersey, was previously convicted on an indictment charging him with one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. Rodriguez was convicted following a two-week trial before U.S. District Judge Robert B. Kugler, who imposed the sentence today in Camden federal court.
According to the documents filed in this case and evidence presented at trial:
Rodriguez conspired to broker a deal in which four pounds of high quality methamphetamine were sold for $100,000 in Millville, New Jersey. On behalf of a co-conspirator, who bought the drugs, Rodriguez cut one pound of the purchased drugs to create four additional, diluted pounds of methamphetamine. Two co-conspirators then traveled to Florida seeking to sell five pounds of the newly constituted methamphetamine, where the DEA apprehended them. Rodriguez, meanwhile, remained in New Jersey with the three remaining pounds of high quality methamphetamine. He was later apprehended following an investigation stemming from the arrest of his co-conspirators in Florida.
In addition to the prison term, Judge Kugler sentenced Rodriguez to five years of supervised release.
U.S. Attorney Fishman credited the Drug Enforcement Administration, Atlantic City office, under the direction of Special Agent in Charge Carl J. Kotowski; the DEA’s Orlando office; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, with the investigation leading to today’s sentencing. He also thanked the Florida Highway Patrol and the U.S. Attorney’s Office, Middle District, Florida.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Office, Criminal Division.
Defense counsel: Wayne Powell Esq., Cherry Hill, N.J.
Career Offender Sentenced to 15 Years Federal PrisonRead the Press Release
PORTLAND, Ore. –U.S. District Judge Robert E. Jones sentenced Todd Alan Nelson, 51, of Salem, Oregon, on July 12, 2016, to a mandatory minimum of 10 years in prison for possession with the intent to distribute methamphetamine, followed by a consecutive five-year mandatory minimum sentence for possession of a firearm during and in relation to a drug offense, for a total of 15 years in prison. The court also ordered Nelson to serve 10 years of supervised release when released from custody.
In October 2014, DEA agents and detectives with the Salem Police Department identified Nelson as a source of supply for methamphetamine. In December2014, agents obtained search warrants to search Nelson’s car, house and a storage locker located in Keizer, Oregon. Nelson’s car contained over 1,981 grams of methamphetamine, scales, $9,700 in cash, and a 9mm handgun with an obliterated serial number. Inside Nelson’s home they found more methamphetamine, packaging materials, a stolen 9mm Sig Sauer P225, and scales. In the storage locker, agents seized several additional pounds of methamphetamine, packaging materials and a loaded 9mm Czech 75d handgun. In all, agents seized approximately 17 pounds of methamphetamine and three handguns.
Nelson meets the criteria for a career offender under the United States Sentencing Guidelines because he committed new drug trafficking and violent offenses and has two prior drug delivery convictions from 2003 and 2006. At the time of his arrest for the current offense, he was being supervised by the Marion County Circuit Court due to a prior conviction.
The investigation of the case was led by the DEA, through its Salem DEA Drug Task Force, and the Salem Police Department. The case was prosecuted by Assistant U.S. Attorney Kemp Strickland.
Cake Shop Owner Sentenced for Cocaine Conspiracy and Money LaunderingRead the Press Release
NORFOLK, Va. – Vernon Michael Norvell, 43, of Portsmouth was sentenced today to 16 years in prison for cocaine distribution and money laundering. According to the plea agreement, Norvell will pay $690,000 in criminal forfeiture.
Norvell pleaded guilty on April 4. According to court documents, Norvell distributed in excess of 126 pounds (57 kilograms) of cocaine and regularly conducted transactions at his home in the Crystal Lake neighborhood of Portsmouth, at his cake business, “G’s Cake Shop – Cake For All Occasions” in Virginia Beach, and at a Food Lion parking lot off Airline Boulevard, in Portsmouth. One confidential source regularly purchased ounce quantities of cocaine for $1,350 to $1,500 over the course of several years. Another source purchased in excess of five kilograms, often paying $46,000 per kilogram. At times, Norvell was accepting between $60,000 and $70,000 a week for cocaine. On five occasions from October 2014 to July 2015, the DEA, in partnership with the Chesapeake and Portsmouth Police Department, conducted controlled purchases of cocaine and crack from Norvell.
Norvell and his wife, Cheron Johnson, 31, also of Portsmouth, used the proceeds of his cocaine distribution to purchase a home in the Crystal Lake neighborhood of Portsmouth, several automobiles, expensive clothing and other material items. The real estate purchase was one way the couple concealed the cocaine proceeds. While the home appraised for $315,000, they purchased it for $160,000, yet they made over $80,000 in payments before and after the closing, $14,000 of which was in cash.
In addition to the drug and money laundering crimes, according to court documents, from 2012 to 2014, Norvell and Johnson reported a combined adjusted gross income of $157,916, yet during that same period they deposited $926,854, including $338,860 in cash, into nearly a dozen bank accounts, including one off shore account located in Curaҫao. From January 2011 through August 2015 the couple deposited $468,500 in cash into their accounts.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge of Drug Enforcement Administration (DEA) Washington Field Division; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by U.S. District Chief Judge Rebecca Beach Smith. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla prosecuted the case.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-49
Buffalo Man Pleads Guilty to Conspiracy to Commit ArsonRead 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 Christopher Gorman, 51, of Buffalo, NY, pleaded guilty conspiracy to damage a building used in an activity affecting interstate commerce by means of fire and an explosive before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that on the night of June 12, 2014, Gorman had been drinking with Lowell Carey and Ryan Smolinski at Carey’s house. Smolinski was upset that his father was losing his business, Western New York Property Contractors, located at 349 Ontario Street, in Buffalo which he co-owned with another individual. Smolinski asked Carey and Gorman if they would help him burn the building. They agreed and made two Molotov cocktails using beer bottles they had been drinking from and gasoline and a t-shirt as a wick.
Thereafter, in the early morning hours of June 13, 2014, Gorman, Smolinski, and Carey proceeded to Western New York Property Contractors where Carey lit and threw one of the Molotov cocktails onto the roof of the building. Smolinski lit and placed the other Molotov cocktail underneath a garage door on the side of the building with Gorman’s assistance. The outside of the building was burned in the areas where the Molotov cocktails were located resulting in approximately $2,207.89 in damages.
The plea is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and the Buffalo Fire Department under the direction of Commissioner Garnell W. Whitfield, Jr.
Sentencing is scheduled for November 2, 2016 at 1:00 p.m. before Judge Arcara.
Bethlehem Man Charged with Robbery of Check Cashing BusinessRead the Press Release
RAUL RODRIGUEZ, 40 years old of Bethlehem, Pennsylvania, was charged today by Indictment1 with one count of robbery which interferes with interstate commerce, one count of possession of a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli. The defendant is alleged to have obstructed, delayed and affected commerce and the movement of articles and commodities in commerce by aiding and abetting the robbery of Envios Giraldo, a check-cashing business located at 331 South New Street in the City of Bethlehem, in the Eastern District of Pennsylvania on November 12, 2014. The defendant and his conspirator possessed a firearm when committing the robbery, and threatened violence against an employee of Envios Giraldo with the firearm, while unlawfully taking $11,140 in United States currency from the business. The defendant is a convicted felon, who is not permitted to possess a firearm in the United States.
If convicted on the robbery which interferes with interstate commerce, defendant Rodriguez faces a maximum possible sentence of 20 years imprisonment, a 3 year mandatory period of supervised release up to a lifetime of supervised released, a $250,000 fine, and a $100 special assessment. If convicted on possession of a firearm during a crime of violence, defendant Rodriguez faces a maximum of life imprisonment with a mandatory minimum 7 years’ imprisonment consecutive to any other sentence imposed, a 5 year period of supervised release, a $250,000 fine, and a $100 special assessment. If convicted on the possession of a firearm by a convicted felon, defendant Rodriguez faces a maximum possible sentence of 10 years imprisonment, a 3 year supervised release, a $250,000 fine, and $100 assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Division, the Northampton County District Attorney’s Office, and the City of Bethlehem Police Department, and is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein and Assistant United States Attorney John Gallagher.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Arrest in Sacramento-Area Fentanyl InvestigationRead the Press Release
SACRAMENTO, Calif. — A Sacramento woman was arrested today after a federal grand jury returned a three-count indictment on Thursday, July 14, 2016, charging her with possession with intent to distribute hydrocodone and fentanyl, distribution of hydrocodone and fentanyl, and using a cellphone to facilitate a drug trafficking offense, Acting United States Attorney Phillip A. Talbert and Drug Enforcement Administration Special Agent in Charge John J. Martin announced.
According to the indictment, between June 18, 2015, and March 27, 2016, Mildred Dossman, 50, distributed hydrocodone and fentanyl in Sacramento County. Dossman was arrested at her home today and was arraigned today by U.S. Magistrate Judge Kendall J. Newman.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Sacramento County Coroner’s Office, the Sacramento County Sheriff’s Office, the Sacramento Police Department, and the El Dorado County Sheriff’s Office. Assistant United States Attorney Paul Hemesath is prosecuting the case.
If convicted, Dossman faces a maximum statutory penalty of 20 years in prison and a $1 million 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.
The investigation continues into fentanyl and hydrocodone distribution in the greater Sacramento Area. The DEA has established a tip line, and callers can remain anonymous. Anyone with information relating to this investigation is encouraged to call the tip line at 530-722-7577.
Arizona Man Who Photographed Sexual Abuse of Young Boys while Working in China Sentenced to 25 Years in Federal PrisonRead the Press Release
LOS ANGELES – An Arizona man who admitted molesting four young boys in China and documenting the abuse with hundreds of photographs and videos has been sentenced to 25 years in federal prison.
Kelly James Morrow, 49, who had been living in China when he was arrested last June and claims a domestic residence in Surprise, Arizona, was sentenced yesterday by United States District Judge S. James Otero.
Morrow pleaded guilty in April to two charges – sexual exploitation of children outside the United States and possession of child pornography.
“This defendant is a sexual predator who not only abused young boys – he also documented his physical and mental abuse by taking thousands of pictures of his victims,” said United States Attorney Eileen M. Decker. “Just as Morrow’s photographs continued to victimize boys that he molested, his massive collection of child pornography victimized every one of the hundreds of child abuse victims depicted in those images.”
Morrow was arrested in June 2015, about a week after arriving at Los Angeles International Airport on a flight from Singapore. A search of his computer equipment and digital media revealed a collection of more than 60,000 images and videos depicting child pornography. In addition to the images Morrow produced in China while working on golf course projects, Morrow admitted in a plea agreement filed in court that he took a nude photograph of a young boy in Lincoln, Nebraska in late 2014.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The National Center for Missing and Exploited Children provided the initial lead that led to the investigation.
“This case serves as a strong reminder that any abuse of children by American citizens is a crime that will be prosecuted to the fullest extent of the law,” said Joseph Macias, special agent in charge for HSI Los Angeles. “As this case shows, HSI is using all of its law enforcement authorities to combat this heinous behavior both here and abroad. We owe it to the children who are the victims in these cases, many of whom will bear the emotional scars of this trauma for the rest of their lives.”
The case against Morrow was prosecuted by Assistant United States Attorney Robyn K. Bacon.
Anchorage Woman Sentenced for Role in Drug ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Kasey Jo Martinez, 32, resident of Anchorage, Alaska, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to 40 months in prison, to be followed by a three-year term of supervised release, for money laundering.
According to court documents and arguments made during the sentencing hearing, starting in the summer of 2014, law enforcement began investigating several individuals implicated in the distribution of methamphetamine and heroin throughout Southcentral Alaska. As part of that investigation, law enforcement conducted surveillance at Fashion Nails, a nail salon owned by co-defendant Toa Danh “Tony” Ly. Proceeds from the sale of methamphetamine and heroin were generally deposited into Wells Fargo bank accounts controlled by Ly. These deposits were made by Martinez and others. These deposits were frequently made at Wells Fargo branches in Alaska, and Ly often withdrew the money at branches in the Seattle, Washington area.
On Jan. 14, 2015, searches were done at seven locations connected to Ly’s drug distribution conspiracy. Stopped in a Wells Fargo parking lot was co-conspirator Pao Lee; Martinez was in the vehicle with him. In her possession was $2,000 in drug proceeds that she was planning on depositing into Ly’s bank account.
A review of financial records for one of Ly’s Wells Fargo accounts showed three additional deposits of drug proceeds by Martinez between Dec. 12, 2014, and Jan. 10, 2015, totaling $19,500. In total, Martinez laundered or attempted to launder at least $21,500 in drug proceeds.
Including Martinez, at least seven other individuals have been implicated in this conspiracy. In total, those individuals have deposited more than $350,000 in suspected drug proceeds into accounts controlled by Ly.
Judge Gleason based her sentence in numerous factors, including the nature and circumstances of the defendant’s conduct and the defendant’s history and characteristics. Judge Gleason noted that while Martinez did not personally distribute drugs as part of the conspiracy, her role as a money launderer facilitated the distribution of methamphetamine and heroin in and around Anchorage. “It is hard to separate one from another,” said Judge Gleason. According to Judge Gleason, the defendant’s participation in the conspiracy impacted “mothers, daughters, fathers, and sons in the community” struggling with the issues brought about by illegal drugs.
Other defendants indicted as part of this investigation include:
-
Toa Danh “Tony” Ly pleaded guilty to conspiracy to distribute controlled substances and money laundering conspiracy.Judgment and sentencing is set for Dec. 2, 2016.
-
Pao Lee pleaded guilty to conspiracy to distribute controlled substances and distribution of controlled substances.Judgment and sentencing is set for Sept. 21, 2016.
-
Renee Marie Davis pleaded guilty to conspiracy to distribute controlled substances.On Jan. 19, 2016, the court sentenced her to 72 months in prison.
-
Robert Lee Rast pleaded guilty to conspiracy to distribute controlled substances. Judgment and sentencing is set for Nov. 1, 2016.
-
Adam Michael Cornelison pleaded guilty to use of a firearm in furtherance of a drug trafficking offense.On Feb. 9, 2016, the court sentenced him to 60 months in prison.
-
Murville Lavelle Lampkin and Tracey Elizabeth Trujillo are set for trial starting Oct. 18, 2016.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and Assistant U.S. Attorney Kyle Reardon.
-
Amtrak Supervisors Charged in Connection with Separate Overbilling of Work Hours SchemesRead the Press Release
NEWARK, N.J. – Two Amtrak supervisors were charged today with overbilling Amtrak a combined total of more than 800 overtime hours and more than 60 regular hours they claimed to be working when they were actually not present at Amtrak work sites, causing $92,000 in losses to Amtrak, U.S. Attorney Paul J. Fishman announced.
Richard Vogel, 63, of Edison, New Jersey, and Donald Harper, Sr., 46, of Somerset, New Jersey, were arrested this morning by federal agents and charged in separate criminal complaints with defrauding Amtrak as a result of their fraudulent overbilling of work hours. Both are scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the criminal complaints:
Vogel, who has been employed by Amtrak since January 1977, currently supervises approximately 35 employees in work gangs on the Construction Signals side of the Communications and Signals Department of Amtrak’s New York Division. Between November 2015 and June 2016, Vogel fraudulently billed Amtrak for 41 regular hours and 687.75 overtime hours when he was not actually present at Amtrak work sites, resulting in losses to Amtrak of more than $71,000.
Harper, who has been employed by Amtrak since February 1990, currently supervises approximately 19 employees in a work gang on the Signals side of the Communications and Signals Department of Amtrak’s New York Division. Harper fraudulently billed Amtrak for 27.75 regular hours and 192.25 overtime hours when he was not actually present at Amtrak work sites, between October 2014 and October 2015, resulting in losses to Amtrak of more than $20,000.
Both defendants are facing maximum potential penalties of 10 years in prison each on the fraud offense and theft of funds offense, in addition to fines equal to the greatest of $250,000 per count or twice the gain or loss resulting from the offenses.
U.S. Attorney Fishman credited special agents of Amtrak’s Office of Inspector General, Office of Investigations, Philadelphia office, under the direction of Special Agent in Charge Robert J. Koons, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division.
The charge and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Bart Dutch Marshall, 61, of Albuquerque, N.M., pled guilty today in federal court to methamphetamine trafficking and firearms charges.
Marshall was arrested on March 23, 2015, on an indictment charging him with possession of methamphetamine with intent to distribute and using firearms during and in relation to a drug trafficking crime on April 3, 2014, in Bernalillo County, N.M.
During today’s proceedings, Marshall pled guilty to a felony information of possession of methamphetamine with intent to distribute and possessing firearms during and in relation to a drug trafficking crime. In entering the guilty plea, Marshall admitted that on April 3, 2014, the Albuquerque Police Department executed a search warrant on his residence and found over 80 grams of pure methamphetamine, which he intended to sell to others. Marshall further admitted that he had a number of firearms in his residence which he possessed for his protection as part of the drug trade.
At sentencing, Marshall faces a statutory maximum penalty of 20 years in prison on the methamphetamine trafficking charge. He also faces a statutory mandatory minimum of five years and a maximum of life in federal prison on the firearms charge which must be served consecutive to the sentence imposed on the drug charge. Marshall remains detained pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Jacob Wishard is prosecuting the case.
Acoma Pueblo Man Sentenced to Federal Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Dwight T. Brown, 19, a member and resident of Acoma Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 20 months in prison followed by three years of supervised release for his involuntary manslaughter conviction.
Brown was arrested on April 15, 2015, on a criminal complaint charging him with voluntary manslaughter on April 9, 2015. According to the criminal complaint, Brown ran over and killed a 13-month old Indian child while driving under the influence of alcohol on Acoma Pueblo in Cibola County, N.M.
On Aug. 26, 2015, Brown pled guilty to a felony information charging him with involuntary manslaughter for causing the death of the victim while driving under the influence of alcohol. The guilty plea was entered without the benefit of a plea agreement.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Niki Tapia-Brito prosecuted the case.
Monday 18 July 2016
Westlake man charged with fraudRead the Press Release
A Westlake man was charged with embezzling from his former employer, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Tarun Gupta, 45, is charged with wire fraud. The criminal information alleges that from on or about May 16, 2012 through on or about December 22, 2014, Gupta stole $382,900 from Charak Center for Health and Wellness, where he had been employed as a the business manager from 2009 through 2013.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by the U.S. Secret Service and the Garfield Heights Police Department.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
West Seneca Woman Admits Role in Oversses Investment ScamRead 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 Monica R. Romaszko, 62, of West Seneca, NY, pleaded guilty to conspiring to evade the payment of federal income taxes, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Romaszko conspired with others to funnel funds from an illegal boiler room investment fraud scheme through various bank accounts In Western New York created in the names of fictitious entities. A “boiler room” in an investment fraud scheme is a location where conspirators use mass marketing techniques to contact prospective investors. During the solicitation, conspirators make false representations about investment opportunities in order to obtain money from unsuspecting investors. The boiler room in this case was located in Barcelona, Spain and was operated by Romaszko’s brother, Arnold Wrobel who was convicted and is awaiting sentencing.
The scam conned investors in the United Kingdom and Canada into buying nearly worthless shares of restricted stock at severely inflated prices by telling buyers that they were buying more valuable regular shares of stock. Approximately 250 investors lost more than $2,900,000. The defendant’s conduct resulted in a loss of $193,439 to the Internal Revenue Service in federal income tax revenue. Romaszko is the fourth of 12 defendants in the case to be convicted.
The plea is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James S. Spero, Special Agent in Charge, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge. Sentencing will be scheduled at a later date.Virginia Man Sentenced to 10 Years in Federal Prison for Killing a Climber in National Park in MarylandRead the Press Release
Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow sentenced David DiPaolo, age 34, of Bristow, Virginia, today to 10 years in prison, followed by three years of supervised release, for voluntary manslaughter in connection with the death of Geoffrey Farrar, in Carderock, a popular rock climbing area within the Chesapeake and Ohio Canal National Historical Park.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert MacLean of the U.S. Park Police.
According to DiPaolo’s plea agreement, on December 28, 2013, DiPaolo had an argument with Farrar, age 69, in the parking area at Carderock Recreation Area (Carderock), located in Bethesda, Maryland, within the Chesapeake and Ohio Canal National Historical Park. Immediately following this altercation, Farrar went to the base of the rock climbing area and DiPaolo returned to his parked vehicle. Shortly thereafter, DiPaolo found Farrar and used a claw hammer to hit Farrar multiple times on his head. DiPaolo then fled first from Carderock and subsequently drove to New York State, where he remained until his arrest on January 8, 2014.
Following DiPaolo’s attack, other rock climbers in the area discovered Farrar at the base of the rock face. Farrar was suffering from massive head trauma as a result of the attack, but was still alive. Emergency personnel were called, and Farrar was airlifted to a hospital in Bethesda, Maryland, where he later died of his injuries.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation and thanked the New York State Police, U.S. Attorney’s Office for the Northern District of New York, and the U.S. Marshals Service for their assistance. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
U.S. Attorney’s Office for Northern District of Texas Hosts 19th Annual Drug Education for Youth (DEFY) Summer CampRead the Press Release
DALLAS — The 19th Annual Drug Education for Youth (DEFY) Summer Camp was held last week at the Naval Air Station Joint Reserve Base (NAS JRB) in Fort Worth, Texas, where members of the U.S. Attorney’s Office for the Northern District of Texas (NDTX), members of the military and local law enforcement worked together to host the one-week residential camp for at-risk youth. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
U.S. Attorney Parker and Commander Joseph M. Seeburger of NAS JRB presented certificates to the 30 youth who attended this year’s DEFY summer camp at a graduation ceremony held Saturday morning, July 16, 2016, at NAS JRB. Camp attendees included at-risk youth from high crime and low income communities in west Dallas, Grand Prairie and Fort Worth, Texas.
DEFY is a year-long, comprehensive and multi-phase program that is part of the District’s Smart on Crime initiative. A Department of Justice initiative announced in 2013, Smart on Crime acknowledges that while aggressive enforcement of federal criminal statutes remains necessary, federal efforts must also focus on other components of criminal justice, such as crime prevention and reentry.
DEFY begins each year with the week-long, residential summer camp for selected at-risk youth, ages 9-12. At DEFY camp, the youth participate in a curriculum focused on healthy lifestyles to prevent drug abuse and gang involvement and resist negative peer pressure. To reinforce good practices learned at DEFY camp, DEFY continues throughout the year with classroom sessions, educational workshops and continued mentoring designed to provide the youth with additional life skills, training and tools to resist drugs and gangs.
The DEFY program is just another example of the partnerships that community groups and law enforcement undertake to build mutual trust and make our communities a safer place for all of us to live. More information about Smart on Crime may be found here
# # #
Troy Man Sentenced for Health Care FraudRead the Press Release
ALBANY, NEW YORK – Michael VonFricken, age 45, of Troy, New York, was sentenced today to 3 years of probation and 3 months of weekend incarceration at the Rensselaer County Jail for his part in a health care fraud that provided him with $32,732 in cash reimbursements from a local union, announced United States Attorney Richard S. Hartunian.
The sentence was issued by U.S. District Judge Mae A. D’Agostino, and followed Michael VonFricken’s guilty plea, on February 24, 2016, to obtaining false receipts for orthodontic services and submitting them to the health care plan for the Plumbers and Steamfitters, Local Union Number 7.
As part of his sentence, Michael VonFricken must complete 50 hours of community service and pay back the $32,732 that he fraudulently obtained.
Michael VonFricken’s brother, John VonFricken, also of Troy, was sentenced on July 5 for defrauding the same union health plan. John VonFricken also pled guilty in February to fraud, and to obtaining $54,600 in reimbursements for orthodontic work that he did not receive. He also received a sentence of 3 years of probation and 3 months of weekend incarceration. John VonFricken was ordered to repay $54,000 to the union health plan.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Torrington Woman Pleads Guilty to Health Care Fraud ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on July 15, PATRICIA LAFAYETTE, 61, of Torrington, waived her right to indictment and pleaded guilty before U.S. District Judge Victor A. Bolden in Bridgeport to one count of health care fraud.
This matter stems from an ongoing health care fraud investigation being conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, and the Connecticut Office of the Attorney General. The investigation identified fraudulent activity in the area of behavioral health services. Through the Medicaid program, the State of Connecticut provides coverage for mental health and counseling services to citizens who cannot otherwise afford health insurance. “Behavioral health” includes a wide variety of health care providers who provide care on an outpatient basis, including psychiatrists, psychologists, licensed clinical social workers, licensed marriage and family therapists, licensed professional counselors, and licensed alcohol and drug counselors.
According to court documents and statements made in court, in March 2011, LAFAYETTE and another individual approached Anne Charlotte Silver, a licensed clinical social worker who owned and operated Silver Counseling Services, LLC, in Canton and Bantam. LAFAYETTE knew that the other individual proposed a scheme to Silver to defraud Medicaid by permitting LAFAYETTE and the other individual to bill Medicaid for psychotherapy services using Silver’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to LAFAYETTE and the other individual. As part of her plea, LAFAYETTE admitted to defrauding Medicaid of approximately $1.6 million through the scheme.
The charge of health care fraud carries a maximum term of imprisonment of 10 years. A sentencing date has not been scheduled.
On May 2, 2015, Silver pleaded guilty to one count of health care fraud. She awaits sentencing.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Topeka Woman Pleads Guilty to Conspiracy in Interstate Sex Trafficking CaseRead the Press Release
TOPEKA, KAN. - A Topeka woman pleaded guilty Monday to conspiring to operate an interstate sex trafficking business, Acting U.S. Attorney Tom Beall said.
Shannon Nelson, 23, Topeka, Kan., pleaded guilty to one count of conspiracy. In her plea, she admitted conspiring with co-defendants to operate a Topeka-based prostitution business. At times, as many as 20 females were working as prostitutes for the organization. The leader of the organization rented houses where some of the prostitutes were allowed to live. The organization used Web sites, social media and cell phones to advertise sexual services and to keep track of prostitutes.
Nelson admitted she worked for co-defendant Frank Boswell as a commercial sex worker. She became a trusted member of Boswell’s organization and lived in one of Boswell’s houses. She posted advertisements for herself and other women on a Web site offering sexual services. She used cell phones to communicate with Boswell and others in the course of operating the prostitution business.
Federal agents encountered her July 15, 2015, at a Motel 6 in Omaha where she and other women had gone to engage in prostitution.
Sentencing is set for Oct. 24. She faces a penalty of up to five years in federal prison and a fine up to $250,000 on each count.
Co-defendant Frank Boswell, 42, Topeka, Kan., is awaiting trial. Co-defendant Rachel Flenniken, 34, Topeka, Kan., is set for sentencing Oct. 17. Co-defendant Sean P. Hall, 46, Topeka, Kan., is set for sentencing Oct. 3.
Beall commended the Topeka Police Department, Homeland Security Investigations, the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three Sentenced to Federal Prison for Scheme to Fraudulently Obtain over $1.4 Million in Unemployment BenefitsRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Wilfred Mendez, age 21, of Bronx, New York to 33 months in prison; Ferny Alexander Moreno Puente, age 26, of Gaithersburg, Maryland, to 30 months in prison; and Wilfredo Torres, age 36, of Alexandria, Virginia, to 20 months in prison, for a conspiracy to fraudulently obtain over $1.4 million in unemployment benefits. Judge Hollander also ordered that Mendez, Moreno Puente, and Torres each serve three years of supervised release following their prison sentence, and that they forfeit and pay restitution of: $195,422; $268,911; and $173,185.32, respectively.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robin Blake, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division.
According to their plea agreements, from 2012 to 2015, Mendez, Moreno Puente, and Torres, conspired with Diameter Akala and others, to cause the Maryland Department of Labor, Licensing and Regulation (DLLR) and the Pennsylvania Department of Labor and Industry (DLI), which administered the unemployment insurance benefit programs in their respective states, to issue fraudulent unemployment by submitting false applications for monetary benefits.
Members of the conspiracy obtained the personally identifying information (PII) of individuals, including Maryland residents. Akala filed false documentation with DLLR and DLI in the names of fictitious companies, falsely stating that the companies employed and paid wages to actual individuals. In fact, no unemployment insurance taxes were ever paid to DLLR or DLI in the names of the fictitious companies. Akala, electronically and by phone, filed claims in Maryland and Pennsylvania for unemployment benefits in his own name and the names of co-conspirators and others, falsely claiming that they previously worked for the fictitious companies.
Akala and other members of the conspiracy used residential mailing addresses of co-conspirators in Maryland, New York, the District of Columbia, Pennsylvania and Virginia to register and receive correspondence for the fictitious companies, and apply for and receive unemployment benefits in the form of prepaid debit cards. In exchange for the use of their addresses, the co-conspirators received funds obtained through the fraud, typically a fraudulently obtained prepaid debit card. Mendez, Moreno Puente, Torres, his half-brother, Eric Gonzalez, co-conspirators Tawana McClain, Yaw Bempa-Boateng, and Carmen Benitez agreed to have Akala file fraudulent unemployment claims in their names. Mendez, his mother Dulce Oleo, Moreno Puente and Torres also provided the personal identification information and/or addresses of other individuals to file additional false claims in the names of those individuals, and others. The co-conspirators used the fraudulently obtained unemployment benefits prepaid debit cards that were mailed directly to them or provided to them by Akala, at ATMs or stores in order to withdraw and use the funds. Some of the cards were in their names, but some of the cards were in the names of other individuals. Generally, the conspirators kept a portion of the fraudulently obtained funds for themselves and provided the remainder to Akala. The members of the conspiracy regularly contacted DLLR and DLI, falsely representing themselves either to be a representative of one of the fictitious companies or an individual entitled to unemployment benefits. Akala moved between states to retrieve correspondence addressed to fictitious companies and individuals, including prepaid debit cards issued by DLLR and DLI.
During the course of the conspiracy the actual loss was approximately $1,468,463.80 in fraudulently obtained unemployment benefits.
Diameter Akala, age 43, of Silver Spring, Maryland, Washington, D.C. and New York, faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a mandatory minimum of two years in prison, consecutive to any other sentence, for aggravated identity theft. As part of his plea agreement, Akala will also be required to pay restitution and forfeiture in the full amount of the loss, approximately $1,468,463.80. Judge Hollander has scheduled sentencing for Akala on August 4, 2016, at 10:00 a.m.
Judge Hollander previously sentenced co-conspirators: Yaw Bempa-Boateng, age 35, of Silver Spring, Maryland, to 30 months in prison; Carmen Benitez, age 29, of Scranton, Pennsylvania, Dulce Oleo, age 39, of the Bronx, New York, and Tawana McClain, age 51, of Washington, D.C., each to 18 months in prison; and Eric Gonzalez, age 34, of Alexandria, Virginia, to a year and a day in prison.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the Department of Labor – OIG and U.S. Postal Inspection Service for their work in the investigation, and praised the Maryland Department of Labor, Licensing and Regulation and the Pennsylvania Department of Labor and Industry for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney, who is prosecuting the case.
Three Former Employees of Timeshare Consulting Firm Sentenced for Conspiring to Defraud Timeshare OwnersRead the Press Release
CAMDEN, N.J. – Three former employees of The Vacation Ownership Group LLC have been sentenced for their respective roles in conspiring to defraud owners of timeshare properties by offering phony consulting services, U.S. Attorney Paul J. Fishman announced today.
Jeffrey Sawyer, 53, of Mullica Hill, New Jersey, was sentenced to 12 months in prison and three years of supervised release. Aimee Allen, 30, of Myrtle Beach, South Carolina, was sentenced to three years of probation, with eight months of home confinement, 50 hours of community service and ordered to pay restitution of $197,440. Vincent Giordano, 31, was sentenced to four months in prison, four months of home confinement, 200 hours of community service and three years of supervised release.
All three defendants previously pleaded guilty before U.S. District Court Judge Noel L. Hillman in Camden federal court to one count of conspiracy to commit mail and wire fraud. Judge Hillman imposed the sentences on July 15, 2016.
According to documents filed in these cases and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing and Egg Harbor Township, N.J., and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
Sawyer pretended to be a satisfied VO Group customer to persuade others to send money to the VO Group. He admitted causing more than $70,000 in losses; Allen would call customers and give them the false impression that she was working for a bank or lending institution. Allen then would falsely represent that the VO Group could pay off the customers' timeshares or have their timeshares cancelled. Allen also served as a "reference" for other VO Group employees by posing as a satisfied customer to persuade a new customer to send the VO Group money. After hearing Allen's false representations, some customers sent checks to the VO Group. Allen admitted to causing over $200,000 in losses.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and special agents from the Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Shannon Woolard, New York Region, for their roles in the investigation leading to the guilty pleas. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Sawyer: Mark E. Roddy Esq., Pleasantville, N.J.
Allen: Edward F. Borden Jr. Esq., Cherry Hill, N.J.
Giordano: Paul A. Sarmousakis Esq., Avalon, N.J.
St. Lawrence County Felon Sentenced to 46 Months for Firearm, Ammunition PossessionRead the Press Release
SYRACUSE, NEW YORK – Clayton T. Brothers, age 40, of Russell, New York, was sentenced today to 46 months in prison, to be followed by 3 years of supervised release, for illegally possessing a firearm and more than 1,000 rounds of ammunition.
The announcement was made by United States Attorney Richard S. Hartunian; James Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); New York State Police Superintendent George P. Beach II; and Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision.
The sentence, issued by U.S. District Judge Brenda K. Sannes, followed Brothers’s March 25, 2016 guilty plea. He pled guilty to possessing, at his home in St. Lawrence County, a Sig Sauer pistol and more than 1,000 rounds of 5.56 mm caliber NATO Lake City XM855 Grain Steel Penetrator ammunition. Brothers was convicted of robbery in Pennsylvania in 1996. As a felon he could not lawfully possess a firearm or ammunition.
This case was investigated by HSI, the New York State Police and New York State Department of Corrections and Community Supervision, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Shon Shoram Sentenced to Four Years Imprisonment for Armed Robbery of Pharmacy in South Burlington, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Shon Paul Shoram, age 38, of Putney, Vermont, was sentenced on July 18, 2016 in the U.S. District Court in Burlington, Vermont, for armed robbery of a pharmacy in South Burlington, Vermont. Chief Judge Christina Reiss sentenced Shoram to four years of imprisonment followed by the statutory maximum of five years of supervised release.
Shoram committed this crime on May 24, 2015 when he walked into the Kinney Drug store in South Burlington, Vermont, carrying a BB gun that resembled a firearm. Upon entering the store, Shoram encountered two clerks, pointed the gun at them, and ordered them to walk to the back of the store where the pharmacy was located. There, Shoram had the pharmacist provide him with Percocet, Hydrocodone, and other drugs. Subsequently, Shoram directed the store employees to a bathroom at the back of the store, where he instructed the employees to remain until he had made his escape. Shoram then changed his clothes and attempted to leave the area, but law enforcement responded swiftly and arrested Shoram soon thereafter.
The case against Shoram was investigated by the South Burlington Police Department and the Vermont State Police.
The United States was represented in the case by Assistant United States Attorney Kunal Pasricha. Shoram was represented by Assistant Federal Public Defendant Steven L. Barth.
Sanford Man Sentenced More Than 11 Years on Drug Trafficking and Firearms ChargesRead the Press Release
Contact: Benjamin M. Block
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jesse Roy, 37, of Sanford, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to 140 months in prison to be followed by five years of supervised release for conspiracy to distribute heroin and fentanyl and possession of a firearm in furtherance of drug trafficking.
According to court records, from around June 2014 until October 20, 2014, Roy conspired to distribute heroin and fentanyl in the Sanford, Maine area and elsewhere. On October 20, 2014, a search warrant executed at Roy’s residence in Sanford resulted in the seizure of about 94 grams of heroin, $24,500 in U.S. currency, and a Davis Industries, model P380, .380 caliber handgun. Several months after his arrest, Roy sent two letters to his co-defendant setting forth a false narrative regarding the charges they faced in an effort to obstruct the investigation and prosecution.
Roy was sentenced to 80 months in prison for his role in the narcotics distribution conspiracy and an additional five years for the possession of a firearm in furtherance of drug trafficking. Judge Levy enhanced Roy’s sentence because of his attempt to obstruct justice and for acting as a manager or supervisor of the drug distribution conspiracy.
The case was investigated by the U.S. Drug Enforcement Administration and the Sanford Police Department.
Rio Grande Valley Resident Sentenced for Drug ConspiracyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Rey Ramirez, 48, was sentenced on July 14, 2016, by United States District Court Judge Nancy J. Rosenstengel to 120 months in federal prison for conspiring to distribute and to possess with the intent to distribute cocaine and marijuana, with five years of supervised release to follow the imprisonment, and a $100 special assessment fee.
Facts revealed in open court at the sentencing and plea hearings established that during the conspiracy, Ramirez arranged the transportation for the delivery of over 2000 pounds of marijuana to Ohio and Georgia. He also agreed to distribute 21 kilograms of cocaine to distributors in Missouri. After considering many factors, such as Ramirez’s age, health, prior criminal record, and involvement and vital role in the conspiracy, Judge Rosenstengel sentenced Ramirez to 120 months, the mandatory minimum sentence required by federal law.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations. This case was prosecuted by Assistant United States Attorney Monica A. Stump.
Ringleader of Mortgage Loan Modification Scheme Sentenced to More Than 9 Years in Federal PrisonRead the Press Release
ARIA MALEKI, 33, of Santa Ana, Calif., was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 112 months of imprisonment, followed by three years of supervised release, for heading a mortgage loan modification scheme that defrauded more than 1,000 struggling homeowners across the United States.
“This defendant presided over a scheme that preyed on struggling homeowners in Connecticut and across the United States, falsely offering mortgage relief in exchange for thousands of dollars that the victims clearly could not afford to spend,” said Deirdre M. Daly, U.S. Attorney for the District of Connecticut. “The investigation revealed that the participants in this scheme specifically targeted homeowners who were behind on their mortgage payments, whose homes were ‘under water,’ or who had recently experienced a financial hardship, such as a lost job. This is an appropriate sentence for a defendant who profited handsomely from such heartless, criminal conduct. I thank our federal and state law enforcement partners in New England, New Jersey, California and Oklahoma for investigating this matter, shutting down this scam and bringing those responsible to justice.”
“This sentence should serve as a strong warning about the consequences awaiting those engaged in large-scale financial fraud,” said Terence Opiola, Special Agent in Charge of Homeland Security Investigations (HSI) in Newark. “The organization identified in this case was responsible for harming countless innocent victims. Working with its enforcement partners, HSI will continue to aggressively target thieves to ensure the perpetrators face the full weight of the law.”
“Aria Maleki took advantage of the national mortgage crisis,” said Shelly A. Binkowski, Postal Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service. “This sentencing clearly demonstrates that those who target hardworking homeowners in today’s challenging economy will be held accountable and prosecuted.”
“These arrests clearly demonstrate that those who target hardworking homeowners in today’s challenging economy will be held accountable. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation. The U.S. Postal Inspection Service will continue to investigate these crimes to protect consumers and our nation’s mail system from being used for illegal or dangerous purposes.”
“Aria Maleki stole millions by lying that his companies had ties to HAMP and could offer relief to homeowners struggling to avoid foreclosure,” said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program. “Every single victim was left worse off; many lost thousands of dollars and some, after promised modifications failed to materialize, lost their homes. Homeowners should be wary of any business charging up-front fees, advertising pre-approval at rates more favorable than industry norms, or offering money-back guarantees.”
“Mr. Maleki, along with his opportunistic criminal cohorts, facilitated a scheme to unjustly enrich themselves through the victimization of hardworking and vulnerable homeowners,” said Christina Scaringi, Special Agent in Charge, HUD OIG, Northeast Region. “The sentencing today is a testament to the unwavering dedication exhibited by law enforcement and the U.S. Attorney’s Office to ensure a swift dose of justice awaits anyone who engages in this kind of unforgivable deception to our homeowners, HUD’s Federal Housing Administration, and mortgage lending institutions. I applaud and commend the hard work and long hours put forth by our law enforcement partners.”
“Aria Maleki deceived and preyed upon innocent homeowners when they were already vulnerable and simply trying to hang on to their homes,” said Leslie DeMarco, Special Agent in Charge, Western Region, Federal Housing Finance Agency – Office of Inspector General. “These despicable schemes victimize homeowners and entire communities, and today Maleki was held accountable for his actions. We are proud to work with our law enforcement partners on this case, and will continue to work with them to bring to justice all individuals who attempt to defraud unwitting victims.”
“Mr. Maleki’s fate, based on his involvement in financial fraud, has been sealed by the court,” said Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation. “We in Connecticut are very thankful of the incredible work done on this case by law enforcement from across the country.”
According to court documents and statements made in court, MALEKI and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Acting as representatives of these entities, MALEKI and his co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
MALEKI presided over the entire structure of this scheme. As a result, more than 1,000 homeowners suffered losses totaling more than $3 million.
Judge Underhill stated that a restitution order will be entered at a later date.
MALEKI has forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
On January 21, 2016, a grand jury in New Haven returned an indictment charging MALEKI and six other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
On March 22, 2016, MALEKI pleaded guilty to one count of conspiracy to commit mail and wire fraud. The other six defendants also pleaded guilty and await sentencing.
This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Prince George’s County Felon Pleads Guilty to Federal Gun ChargeRead the Press Release
Greenbelt, Maryland – Quinton Darnell McLean, age 21, of Washington, D.C., pleaded guilty in U.S District Court in Greenbelt, to being a felon in possession of a firearm. The guilty plea was entered on Friday, July 15, 2016.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Criminals who are not deterred from carrying guns by the threat of prison time can be deterred by the reality of years spent in a federal prison far from home,” said U.S. Attorney Rod J. Rosenstein. “Police and prosecutors are working to identify armed criminals who deserve to be charged in federal court.”
According to his plea agreement, on February 12, 2016, McLean was traveling with two other men in a green Saturn on the Suitland Parkway. Officers with the Prince George’s Police Department Washington Area Vehicle Enforcement Team (WAVE) conducted a query of the temporary registration on the Saturn, which revealed that the tag was issued for a 1987 Mercedes Benz. Officers followed the vehicle, which pulled into a carwash on Branch Avenue in Temple Hills, Maryland.
The driver of the Saturn pulled the vehicle into the carwash bay and began washing the car while McLean and the other occupant stood outside the entrance to the carwash bay. One of the officers, whose unmarked car was next in line for the wash bay behind the green Saturn, saw McLean adjusting his waistband and clutching the right side of his waistband as he stood outside the carwash bay. The officer knew that McLean’s behavior was indicative of an armed person, and believed that McLean had a firearm in his waistband. The officer frisked McLean for weapons and recovered a loaded .45 caliber semi-automatic pistol that was tucked in the right front side of McLean’s waistband area. McLean was arrested. McLean has a previous felony conviction and is prohibited from possessing a firearm or ammunition.
While in state custody, before federal charges were filed, McLean made several calls from jail. During these conversations, which are recorded by the detention center, McLean made several statements, including, that he had made “a stupid a** mistake,” and that “I should have left the ‘dog’ in the glove box.” According to court documents, McLean also stated, “Maryland time is cheap as s**t.”
McLean and the government have agreed that if the Court accepts the plea agreement McLean will be sentenced to two years in prison. There is no parole in the federal criminal justice system. U.S. District Judge Paul W. Grimm has scheduled sentencing for September 26, 2016 at 9:30 a.m.
As part of the coordinated state effort to reduce violent crime, the Prince George’s County Police Department, ATF, FBI, DEA, HSI, U.S. Marshals Service, the Prince George’s County State’s Attorney’s Office, and the United States Attorney’s Office, review cases of defendants arrested for firearms violations, drug offenses and other violent crimes, and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew L. Paeffgen, who is prosecuting the case.
Philadelphia Man Sentenced to 25 Years for Heroin Trafficking and Firearms ViolationRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Juan Albertorio-Garcia, age 48, of Philadelphia, was sentenced to 25 years (300 months) by Senior U.S. District Court Judge Sylvia H. Rambo. This sentencing hearing followed Albertorio-Garcia’s conviction by a jury on November 4, 2015 for possession of a firearm in furtherance of drug trafficking and distributing heroin.
According to United States Attorney Peter Smith, the jury returned a verdict of guilty after hearing evidence that Albertorio-Garcia supplied other drug dealers with heroin for distribution in Harrisburg. The Pennsylvania State Police seized nearly 1,000 individual doses of heroin from Albertorio-Garcia’s operation in a seven day period, prior to arresting him and, following his arrest on March 18, 2014, seized additional quantities of heroin and a firearm from his home in Philadelphia.
This case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police and was prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
# # #
Paola Couple Sentenced on Federal Tax ChargeRead the Press Release
TOPEKA, KAN. - The owners of a construction and remodeling business in Paola were sentenced Monday on a federal tax charge, Acting U.S. Attorney Tom Beall said today.
Dan Casey, 41, Paola, Kan., was sentenced to 15 months in federal prison. His wife, Nicole Lynn Casey, 39, Paola, Kan., was sentenced to three years on supervised release. They were ordered to pay $102,000 in restitution.
The Caseys pleaded guilty to one count of filing false tax returns. They admitted failing to report some of their income from Pro-Built, a construction and remodeling business they owned in Paola.
From 2008 through 2011 they failed to report more than $347,000 in income, resulting in tax due of more than $102,000. Dan Casey also admitted paying cash to contractors who worked on his barn following a fire. He failed to report the payments to the Internal Revenue Service.
Beall commended the Internal Revenue Service and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Oil Refiners to Reduce Air Pollution at Six Refineries under Settlement with EPA and Department of JusticeRead the Press Release
WASHINGTON – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a $425 million settlement with subsidiaries of Tesoro Corp., and Par Hawaii Refining that resolves alleged Clean Air Act violations and protects public health by reducing air pollution at six refineries. Under the settlement, the two companies will spend about $403 million to install and operate pollution control equipment, and Tesoro will spend about $12 million to fund environmental projects in local communities previously impacted by pollution. Tesoro will also pay a $10.45 million civil penalty.
“This settlement, achieved in partnership with states, will benefit the air quality in communities across the Western United States,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “It uses cutting edge technology to address global environmental issues like climate change by controlling flaring and provides important reductions of harmful air pollution in communities facing environmental and health challenges.”
“The advanced technologies Tesoro and Par are required to implement are the future for protecting people from toxic air emissions,” said Assistant Administrator Cynthia Giles for EPA’s Enforcement and Compliance Assurance. “This settlement puts new enforcement ideas to work that will dramatically cut pollution and protect communities.”
Today’s settlement, a consent decree lodged in U.S. District Court for the Western District of Texas, includes provisions that resolves ongoing Clean Air Act violations at refineries in Kenai, Alaska; Martinez, California; Kapolei, Hawaii; Mandan, North Dakota; Salt Lake City, Utah; and Anacortes, Washington. Of the $10.45 million civil penalty that Tesoro will pay, the United States will receive $8,050,000, and co-plaintiffs including the states of Alaska and Hawaii, and the Northwest Clean Air Agency will share $2.4 million.
Once the companies install the pollution controls required by the settlement, annual emissions reductions at the six refineries will total an estimated 773 tons of sulfur dioxide, 407 tons of nitrogen oxides, 1,140 tons of volatile organic compounds, 27 tons of hazardous air pollutants, 20 tons of hydrogen sulfide and the equivalent of 47,034 tons of carbon dioxide, which is a greenhouse gas. A large number of the emissions reductions will occur in areas with impaired air quality and protect populations at risk for respiratory illnesses. In particular, this settlement will reduce greenhouse gas emissions from flaring at the subject refineries by over 60 percent.
The settlement addresses a range of alleged leak detection and repair and flaring violations under the Clean Air Act at all six refineries as well as violations of the Act’s Prevention of Significant Deterioration, Non-Attainment New Source Review, New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants at certain refineries. The settlement also addresses various violations of state clean air laws, programs and permits.
Refineries process crude oil into products like gasoline, diesel fuel, kerosene, jet fuel, asphalt and liquefied petroleum gas and emit pollutants from a number of different sources. At the refineries subject to this settlement, fluid catalytic cracking units, sulfuric acid plants, heaters, boilers and sulfur recovery units, are substantial emitters of nitrogen oxides (NOx) and sulfur dioxide (SO2). Flaring results in emissions of SO2, greenhouse gases and toxic air pollutants, including volatile organic compounds (VOCs) and hazardous air pollutants. Fugitive emissions of VOCs result from leaking valves and pumps and can result in numerous health effects, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system, among other effects.
Leaks, flares, and excess emissions from refineries emit hazardous air pollutants, or air toxics, that are known or suspected to cause cancer, birth defects, and seriously impact the environment. SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Refineries also emit greenhouse gases that contribute to climate change, as well as fugitive VOCs.
The settlement incorporates the latest technological approaches to reducing flaring and making the flaring that does occur as efficient as possible. And in addition to installing pollution control equipment, the settlement requires Tesoro to use a series of state-of-the-art Next Generation Compliance tools to monitor pollution. Tesoro will use infrared gas-imaging cameras at four refineries to supplement the company’s enhanced leak detection and repair program. These cameras are able to locate fugitive VOC emissions that may not be otherwise detected and to address these fugitive emissions and in doing so protect refinery employees from them. Tesoro will also pay for third-party auditing of compliance with the enhanced leak detection and repair requirements at all six facilities. EPA’s Next Generation Compliance strategy works to advance the use of state-of-the-art technology to identify and reduce pollution.
Under the settlement, Tesoro will also spend about $12.2 million to fund three pollution mitigation projects. In addition to installing infrared cameras, Tesoro will install ultra-low NOx burners on a furnace at its Salt Lake City refinery. Tesoro estimates that the cost of this mitigation project is $10.8 million and is expected to result in significant quantifiable reductions in NOX emissions. Tesoro will also contribute $1 million to fund the replacement of old diesel school buses in Contra Costa County, California, with new compressed natural gas (CNG) school buses. Replacing existing school buses that run on diesel with vehicles that are powered by CNG decreases emissions of NOX, SO2, PM, greenhouse gases and other air pollutants.
This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes refineries, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all settlements under this initiative will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Tesoro Corp., is headquartered in San Antonio, Texas, and its subsidiaries, Tesoro Alaska Company LLC, Tesoro Logistics L.P. and Tesoro Refining & Marketing Company LLC operate five of the refineries covered by this settlement. Par Pacific Holdings, Inc., formerly known as Par Petroleum Corp. and a parent corporation of Par Hawaii Refining, purchased the Kapolei refinery from Tesoro in 2013.
There will be a 30 day public comment period on the consent decree lodged today. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website: www.justice.gov/enrd/consent-decrees.
For more information on the settlement or to read the consent decree, go to
https://www.epa.gov/enforcement/tesoro-and-par-clean-air-act-settlement
Oil Refiners to Reduce Air Pollution at Six Refineries Under Settlement with EPA and Department of JusticeRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a $425 million settlement with subsidiaries of Tesoro Corp., and Par Hawaii Refining that resolves alleged Clean Air Act violations and protects public health by reducing air pollution at six refineries. Under the settlement, the two companies will spend about $403 million to install and operate pollution control equipment, and Tesoro will spend about $12 million to fund environmental projects in local communities previously impacted by pollution. Tesoro will also pay a $10.45 million civil penalty.
“This settlement, achieved in partnership with states, will benefit the air quality in communities across the Western United States,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “It uses cutting edge technology to address global environmental issues like climate change by controlling flaring and provides important reductions of harmful air pollution in communities facing environmental and health challenges.”
“The advanced technologies Tesoro and Par are required to implement are the future for protecting people from toxic air emissions,” said Assistant Administrator Cynthia Giles for EPA’s Enforcement and Compliance Assurance. “This settlement puts new enforcement ideas to work that will dramatically cut pollution and protect communities.”
Today’s settlement, a consent decree lodged in U.S. District Court for the Western District of Texas, includes provisions that resolves ongoing Clean Air Act violations at refineries in Kenai, Alaska; Martinez, California; Kapolei, Hawaii; Mandan, North Dakota; Salt Lake City, Utah; and Anacortes, Washington. Of the $10.45 million civil penalty that Tesoro will pay, the United States will receive $8,050,000, and co-plaintiffs including the states of Alaska and Hawaii, and the Northwest Clean Air Agency will share $2.4 million.
Once the companies install the pollution controls required by the settlement, annual emissions reductions at the six refineries will total an estimated 773 tons of sulfur dioxide, 407 tons of nitrogen oxides, 1,140 tons of volatile organic compounds, 27 tons of hazardous air pollutants, 20 tons of hydrogen sulfide and the equivalent of 47,034 tons of carbon dioxide, which is a greenhouse gas. A large number of the emissions reductions will occur in areas with impaired air quality and protect populations at risk for respiratory illnesses. In particular, this settlement will reduce greenhouse gas emissions from flaring at the subject refineries by over 60 percent.
The settlement addresses a range of alleged leak detection and repair and flaring violations under the Clean Air Act at all six refineries as well as violations of the Act’s Prevention of Significant Deterioration, Non-Attainment New Source Review, New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants at certain refineries. The settlement also addresses various violations of state clean air laws, programs and permits.
Refineries process crude oil into products like gasoline, diesel fuel, kerosene, jet fuel, asphalt and liquefied petroleum gas and emit pollutants from a number of different sources. At the refineries subject to this settlement, fluid catalytic cracking units, sulfuric acid plants, heaters, boilers and sulfur recovery units, are substantial emitters of nitrogen oxides (NOx) and sulfur dioxide (SO2). Flaring results in emissions of SO2, greenhouse gases and toxic air pollutants, including volatile organic compounds (VOCs) and hazardous air pollutants. Fugitive emissions of VOCs result from leaking valves and pumps and can result in numerous health effects, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system, among other effects.
Leaks, flares, and excess emissions from refineries emit hazardous air pollutants, or air toxics, that are known or suspected to cause cancer, birth defects, and seriously impact the environment. SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Refineries also emit greenhouse gases that contribute to climate change, as well as fugitive VOCs.
The settlement incorporates the latest technological approaches to reducing flaring and making the flaring that does occur as efficient as possible. And in addition to installing pollution control equipment, the settlement requires Tesoro to use a series of state-of-the-art Next Generation Compliance tools to monitor pollution. Tesoro will use infrared gas-imaging cameras at four refineries to supplement the company’s enhanced leak detection and repair program. These cameras are able to locate fugitive VOC emissions that may not be otherwise detected and to address these fugitive emissions and in doing so protect refinery employees from them. Tesoro will also pay for third-party auditing of compliance with the enhanced leak detection and repair requirements at all six facilities. EPA’s Next Generation Compliance strategy works to advance the use of state-of-the-art technology to identify and reduce pollution
Under the settlement, Tesoro will also spend about $12.2 million to fund three pollution mitigation projects. In addition to installing infrared cameras, Tesoro will install ultra-low NOx burners on a furnace at its Salt Lake City refinery. Tesoro estimates that the cost of this mitigation project is $10.8 million and is expected to result in significant quantifiable reductions in NOX emissions. Tesoro will also contribute $1 million to fund the replacement of old diesel school buses in Contra Costa County, California, with new compressed natural gas (CNG) school buses. Replacing existing school buses that run on diesel with vehicles that are powered by CNG decreases emissions of NOX, SO2, PM, greenhouse gases and other air pollutants.
This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes refineries, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all settlements under this initiative will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Tesoro Corp., is headquartered in San Antonio, Texas, and its subsidiaries, Tesoro Alaska Company LLC, Tesoro Logistics L.P. and Tesoro Refining & Marketing Company LLC operate five of the refineries covered by this settlement. Par Pacific Holdings, Inc., formerly known as Par Petroleum Corp. and a parent corporation of Par Hawaii Refining, purchased the Kapolei refinery from Tesoro in 2013.
There will be a 30 day public comment period on the consent decree lodged today. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website: www.justice.gov/enrd/consent-decrees.
For more information on the settlement or to read the consent decree, go to
https://www.epa.gov/enforcement/tesoro-and-par-clean-air-act-settlement
Oil Refiners to Reduce Air Pollution at Six Refineries Under Settlement with EPA and Department of JusticeRead the Press Release
WASHINGTON – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a $425 million settlement with subsidiaries of Tesoro Corp., and Par Hawaii Refining that resolves alleged Clean Air Act violations and protects public health by reducing air pollution at six refineries. Under the settlement, the two companies will spend about $403 million to install and operate pollution control equipment, and Tesoro will spend about $12 million to fund environmental projects in local communities previously impacted by pollution. Tesoro will also pay a $10.45 million civil penalty.
“This settlement, achieved in partnership with states, will benefit the air quality in communities across the Western United States,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “It uses cutting edge technology to address global environmental issues like climate change by controlling flaring and provides important reductions of harmful air pollution in communities facing environmental and health challenges.”
“The advanced technologies Tesoro and Par are required to implement are the future for protecting people from toxic air emissions,” said Assistant Administrator Cynthia Giles for EPA’s Enforcement and Compliance Assurance. “This settlement puts new enforcement ideas to work that will dramatically cut pollution and protect communities.”
Today’s settlement, a consent decree lodged in U.S. District Court for the Western District of Texas, includes provisions that resolves ongoing Clean Air Act violations at refineries in Kenai, Alaska; Martinez, California; Kapolei, Hawaii; Mandan, North Dakota; Salt Lake City, Utah; and Anacortes, Washington. Of the $10.45 million civil penalty that Tesoro will pay, the United States will receive $8,050,000, and co-plaintiffs including the states of Alaska and Hawaii, and the Northwest Clean Air Agency will share $2.4 million.
Once the companies install the pollution controls required by the settlement, annual emissions reductions at the six refineries will total an estimated 773 tons of sulfur dioxide, 407 tons of nitrogen oxides, 1,140 tons of volatile organic compounds, 27 tons of hazardous air pollutants, 20 tons of hydrogen sulfide and the equivalent of 47,034 tons of carbon dioxide, which is a greenhouse gas. A large number of the emissions reductions will occur in areas with impaired air quality and protect populations at risk for respiratory illnesses. In particular, this settlement will reduce greenhouse gas emissions from flaring at the subject refineries by over 60 percent.
The settlement addresses a range of alleged leak detection and repair and flaring violations under the Clean Air Act at all six refineries as well as violations of the Act’s Prevention of Significant Deterioration, Non-Attainment New Source Review, New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants at certain refineries. The settlement also addresses various violations of state clean air laws, programs and permits.
Refineries process crude oil into products like gasoline, diesel fuel, kerosene, jet fuel, asphalt and liquefied petroleum gas and emit pollutants from a number of different sources. At the refineries subject to this settlement, fluid catalytic cracking units, sulfuric acid plants, heaters, boilers and sulfur recovery units, are substantial emitters of nitrogen oxides (NOx) and sulfur dioxide (SO2). Flaring results in emissions of SO2, greenhouse gases and toxic air pollutants, including volatile organic compounds (VOCs) and hazardous air pollutants. Fugitive emissions of VOCs result from leaking valves and pumps and can result in numerous health effects, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system, among other effects.
Leaks, flares, and excess emissions from refineries emit hazardous air pollutants, or air toxics, that are known or suspected to cause cancer, birth defects, and seriously impact the environment. SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Refineries also emit greenhouse gases that contribute to climate change, as well as fugitive VOCs.
The settlement incorporates the latest technological approaches to reducing flaring and making the flaring that does occur as efficient as possible. And in addition to installing pollution control equipment, the settlement requires Tesoro to use a series of state-of-the-art Next Generation Compliance tools to monitor pollution. Tesoro will use infrared gas-imaging cameras at four refineries to supplement the company’s enhanced leak detection and repair program. These cameras are able to locate fugitive VOC emissions that may not be otherwise detected and to address these fugitive emissions and in doing so protect refinery employees from them. Tesoro will also pay for third-party auditing of compliance with the enhanced leak detection and repair requirements at all six facilities. EPA’s Next Generation Compliance strategy works to advance the use of state-of-the-art technology to identify and reduce pollution.
Under the settlement, Tesoro will also spend about $12.2 million to fund three pollution mitigation projects. In addition to installing infrared cameras, Tesoro will install ultra-low NOx burners on a furnace at its Salt Lake City refinery. Tesoro estimates that the cost of this mitigation project is $10.8 million and is expected to result in significant quantifiable reductions in NOX emissions. Tesoro will also contribute $1 million to fund the replacement of old diesel school buses in Contra Costa County, California, with new compressed natural gas (CNG) school buses. Replacing existing school buses that run on diesel with vehicles that are powered by CNG decreases emissions of NOX, SO2, PM, greenhouse gases and other air pollutants.
This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes refineries, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all settlements under this initiative will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Tesoro Corp., is headquartered in San Antonio, Texas, and its subsidiaries, Tesoro Alaska Company LLC, Tesoro Logistics L.P. and Tesoro Refining & Marketing Company LLC operate five of the refineries covered by this settlement. Par Pacific Holdings, Inc., formerly known as Par Petroleum Corp. and a parent corporation of Par Hawaii Refining, purchased the Kapolei refinery from Tesoro in 2013.
There will be a 30 day public comment period on the consent decree lodged today. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website: www.justice.gov/enrd/consent-decrees.
For more information on the settlement or to read the consent decree, go to https://www.epa.gov/enforcement/tesoro-and-par-clean-air-act-settlement
Office Manager Pleads Guilty to Theft from Lawrence CompanyRead the Press Release
TOPEKA, KAN. - A former office manager for a Lawrence property management company pleaded guilty Monday to embezzlement, Acting U.S. Attorney Tom Beall said.
Candy A. Gunderson, 44, Lawrence, pleaded guilty to one count of interstate transportation of stolen funds. In her plea, Gunderson admitted the crime took place from 2007 to 2015 while she was office manager for Garber Enterprises in Lawrence. She used various means to steal money from the company including:
-
Depositing into her personal account checks made payable to Garber Enterprises.
-
Issuing forged Garber Enterprises checks.
-
Using company funds to pay bills for work performed on rental properties she owned.
-
Using the company VISA card for personal expenses.
-
Depositing cash belonging to the company into her personal accounts.
-
Forging checks on Garber’s account to pay for personal phone bill.
Sentencing is set for Nov. 7. She faces a penalty of up to 10 years in federal prison and a fine up to $250,000. At the sentencing hearing, the judge will determine the amount of the loss and the restitution.
Beall commended the Lawrence Police Department, the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
-
Niagara Falls Man Pleads Guilty to Being A Felon in Possession of A FirearmRead 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 Josue Ortiz, 34, of Niagara Falls, NY, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on December 23, 2015, the Niagara Falls Police Department was dispatched to a residence on Niagara Avenue. A resident living in the lower apartment told officers that she believed a resident living upstairs had a gun.
Officers went upstairs and made contact with the defendant through a closed door and asked Ortiz if he had a gun. The officers talked Ortiz into putting down the gun (a 12 gauge shotgun) and putting his hands up. Officers then placed the defendant in handcuffs and secured the gun.
The plea is the culmination of an investigation by the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for October 24, 2016 at 10:00 a.m. before Judge Vilardo.
Navajo Woman from Standing Rock, N.M., Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Chelsey A. Billy, 21, an enrolled member of the Navajo Nation who resides in Standing Rock, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Under the terms of her plea agreement, Billy will be sentenced to 30 months in federal prison followed by three years of supervised release.
Billy was arrested on Jan. 7, 2016, on a criminal complaint charging her with assaulting a Navajo man with a hammer on Dec. 22, 2015. The victim was seriously injured and suffered a fracture to his left orbital eye socket and various lacerations to his head and face.
Billy subsequently was indicted on Jan. 26, 2016, and was charged with assault with a dangerous weapon, a hammer, with intent to do bodily harm and assault resulting in serious bodily injury. The indictment alleged that Billy committed the crimes on the Navajo Indian Reservation in McKinley County, N.M., on Dec. 22, 2015.
During today’s proceedings, Billy pled guilty to assault resulting in serious bodily injury, and admitted to striking the victim in the head with a hammer several times, causing serious bodily injury to the victim. Billy remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Joseph Spindle.
Memphis Man Sentenced for Defrauding Multiple Financial Institutions of More Than $250,000Read the Press Release
Memphis, TN – A Memphis man has been sentenced to federal prison for defrauding multiple financial institutions of more than a quarter-million dollars. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Randall Meridith, 24, of Memphis, Tennessee, recruited individuals with existing bank accounts to allow him access to their accounts in exchange for cash payments. The criminal activity took place between January 2013 and May 2015.
In many instances, Meridith convinced the account holders that he was involved in a legitimate business operation, and that they could make money, if they allowed him to utilize their bank accounts for a limited time. After Meridith obtained the account holders’ bank cards and PIN numbers, he deposited (or had deposited on his behalf) more than $250,000 worth of stolen checks into numerous accounts at financial institutions in Shelby County and other areas. The financial institutions included USAA Federal Savings Bank, Bank of America, FedEx Employees Credit Association and Wright-Patt Credit Union. Shortly after the deposits were made, Meridith would withdraw the funds at ATMs, or made purchases using the bank cards before the financial institutions were alerted to the fraud.
One of Meridith’s many fraudulent transactions occurred on May 11, 2015, at an ATM on Nonconnah Boulevard. Meridith deposited a stolen check drawn on a USAA Federal Savings Bank account and payable to victim A.T. in the amount of $940 into the FedEx Credit Association account belonging to the victim. Meridith then quickly withdrew funds from the FedEx Credit account via ATMs, and used the bank card associated with the account to make purchases at Memphis Walmarts.
At Meridith’s sentencing, it was revealed that multiple victims went through a variety of financial challenges because of his scheme, including trouble making mortgage and car payments.
In December 2015, Meridith pleaded guilty before U.S. District Judge Sheryl H. Lipman to one count of bank fraud.
On Monday, July 18, 2016, Judge Lipman sentenced Meridith to 60 months in federal prison. Meridith was also ordered to pay more than $63,000 in restitution.
This case was investigated by the United States Postal Inspection Service and the Tennessee Highway Patrol Identity Crimes Unit.
Assistant U.S. Attorney Stephen Hall prosecuted this case on the government’s behalf.
Lackawanna Man Pleads Guilty to Bank RobberyRead 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 Ronald Anthony McCarter, Jr., 24, of Lackawanna, NY, pleaded guilty to bank robbery before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated on October 29, 2015, the Key Bank on Broadway Avenue in Lancaster, NY was robbed. An individual entered the bank, approached a teller and passed a note which demanded cash, no dye pack, and no sudden movements. Subsequent investigation identified McCarter as the individual based on bank surveillance photos.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen, and the Lancaster Police Department, under the direction of Chief Gerald Gill.
Sentencing is scheduled for October 20, 2016 before Judge Vilardo.
Guyanese National Sentenced to over 21 Years for Mortgage FraudRead the Press Release
Ravindranauth “Ravi” Roopnarine, 56, of Guyana, was sentenced by United States District Judge Jose E. Martinez on July 14, 2016 to 262 months in prison, following his conviction by a federal jury on charges stemming from his leadership and participation in an extensive mortgage fraud scheme. Following his term of imprisonment, Roopnarine will be placed on supervised release for five years. Roopnarine was also ordered to pay $9,041,133.46 in restitution to the defrauded lenders and banks.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
An indictment charged Roopnarine, Gergawattie “Kamla” Seecharan, Bhaardwaj “Deo” Seecharan and Linda Rovetto for their participation in a mortgage fraud scheme. The indictment charged Roopnarine with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; and wire fraud in violation of Title 18, United States Code, Section 1343. Roopnarine in mid-2015 waived extradition and returned from Trinidad and Tobago to the Southern District of Florida. On March 11, 2016, a jury convicted Roopnarine on all three counts.
According to the court documents and statements made in court, Roopnarine recruited and led his co-conspirators in a widespread mortgage fraud scheme involving more than 150 residential real estate properties in Indian River, Miami-Dade, and Orlando-Orange Counties. Roopnarine, along with Kamla Seecharan and her husband Deo Seecharan, conspired to solicit mainly Guyanese residents of Florida and other States to act as straw buyers on fraudulent mortgage loan applications. Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments. This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans. The co-conspirators then used the proceeds to purchase additional properties, fund pre-existing fraudulent mortgage loans, and pay kickbacks to the straw buyers. In addition, Kamla Seecharan and Rovetto unlawfully diverted more than $3.5 million in mortgage loans from real estate closing escrow accounts to Raviworld New Homes, Inc., a company managed by Roopnarine and Deo Seecharan.
Kamla Seecharan pled guilty to participating in a conspiracy involving more than $50 million dollars in fraudulent mortgage loan funds, in violation of Title 18, United States Code, Sections 1341, 1343 and 1349. Deo Seecharan and Rovetto each pled guilty to participating in a conspiracy to commit bank fraud involving $3.5 million dollars in diverted real estate escrow funds, in violation of Title 18, United States Code, Sections 1349 and 1344.
U.S. District Judge Jose E. Martinez sentenced Kamla Seecharan and Deo Seecharan, to 121 months and 60 months, respectively, in prison, to be followed by five years of supervised release. In addition, Kamla Seecharan and Deo Seecharan were ordered to pay restitution, in the amount of $2,040,343.14 and $9,041,133.46, respectively. U.S. District Judge Martinez sentenced Rovetto to 42 months in prison.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office for their work on this investigation, and the United States Marshals Service for their assistance with the extradition and return of Roopnarine to Florida from Trinidad & Tobago. The case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and James V. Hayes.
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.
Girls’ Softball Coach Sentenced to Prison for Distributing Child PornographyRead the Press Release
ATLANTA - Nicholas Mazza has been sentenced to seven years, three months in federal prison for distributing child pornography. The defendant is a former girls softball coach who had over 140,000 videos and pictures of sexual abuse of young girls when he was arrested. Mazza worked as a coach for girls’ softball teams in Cobb County, Georgia.
“It is incomprehensible that anyone could enjoy watching a child as young as three years old being sexually abused,” said U.S. Attorney John Horn. “Mazza had a massive collection of child pornography, and it is especially disturbing that this defendant worked around children. This sentence is a stark reminder of the importance of these investigations to the safety of our children.”
“Child pornography is one of the most heinous crimes HSI investigates due to the irrevocable harm it inflicts physically and emotionally upon innocent children,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “This crime is an outrage in all cases; however, it was especially so in this instance given the massive quantity of illegal images recovered and the subject’s proximity to children. ICE Homeland Security Investigations is committed to investigating and seeking prosecution of child sex offenders as one of the agency’s highest priorities.”
According to U.S. Attorney Horn, the charges and other information presented in court: Mazza used a peer-to-peer file sharing program to search for and download child pornography files on the Internet. In October 2014, special agents with Homeland Security Investigations downloaded 14 videos of child pornography that Mazza kept in a folder that made the files available to other persons using the same peer-to-peer file sharing program. While downloading the files, the agents were able to capture the Internet Protocol address of the computer, which identifies the physical location of the computer. The agents obtained a federal search warrant for the house associated with that Internet Protocol address, and they carried it out in early November 2014. The agents took multiple computers, hard drives, and thumb drives.
A computer forensics analysis of all of those items showed that the defendant possessed more than 143,000 images and videos of child pornography involving almost exclusively young girls. The files included the sexual abuse of children as young as three years old, and many files depicted sadistic abuse of the children. Prior to his indictment in this case, Mazza worked as a coach for girls’ softball teams in Cobb County, Georgia.
Mazza, 67, of Powder Springs, Georgia, was sentenced to seven years, three months in prison to be followed by ten years of supervised release. Mazza was convicted on these charges on May 10, 2016, after he pleaded guilty. He was sentenced on July 15, 2016, by U.S. District Judge Leigh May.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gardena Gang Member and Longtime Pimp Sentenced to 40 Years in Federal Prison for Sex Trafficking of ChildrenRead the Press Release
LOS ANGELES – A Gardena man who was found guilty of sex trafficking seven girls, most of whom had been coerced or forced to work as prostitutes, was sentenced today to 40 years in federal prison.
Laron Darrell Carter, also known as “Birdd” and variations of that moniker, 39, received the sentence from United States District Judge Virginia A. Phillips, who also ordered the defendant to pay $631,248 in restitution to six of his victims.
Following a five-day trial in April, a jury convicted Carter of seven counts of sex trafficking of a minor by force, fraud or coercion, and seven counts of transporting a child to engage in prostitution.
The evidence at trial showed that Carter, a Crip gang member, trafficked girls as young as 13 and subjected some of them to beatings, which included victims being punched in the face and whipped with a belt.
Carter’s “conduct in this case spanned a decade as he prostituted the seven minor victims from 2003 to 2013” and transported them from California to Arizona, Texas, Georgia, Washington DC and Nevada, prosecutors wrote in a sentencing memorandum filed with the court.
“This defendant appeared to relish his role exploiting young children, but now he will pay a heavy price for the immeasurable damage he caused to his young victims,” said United States Attorney Eileen M. Decker. “Mr. Carter was able to seduce child victims into prostitution by tricking them into thinking he was their boyfriend, but he turned violent when the girls tried to leave or violated his ‘rules.’ No person, and particularly no child, should ever be subject to this type of exploitation and abuse.”
The case against Carter stemmed from the rescue of a 16-year-old girl in 2013. The victim told investigators from the Los Angeles County Sheriff's Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) that she had been recruited by Carter to travel from Minneapolis to Los Angeles. When she arrived in Southern California, Carter forced her into prostitution. As part of his activities, Carter took this victim to a hotel in El Segundo and advertised her services on backpage.com. The victim “ran away at one point, but she found herself lost with no money and returned,” according to court documents. “When she returned, defendant beat her and whipped her with a belt for leaving.”
After this victim was rescued, investigators located six other girls – one of whom was only 13 – who had been coerced or physically forced into prostitution by Carter between 2003 and 2010.
“Above all, this sentence assures no more girls will fall prey to this brazen and manipulative sexual predator for decades to come,” said Joseph Macias, special agent in charge of HSI Los Angeles. “But the outcome of this case should also serve as a sobering warning to those engaged in the sex trafficking of minors about the severe consequences for those who commit such crimes. HSI will continue to work tirelessly with its federal and local counterparts to identify these dangerous offenders and bring them to justice. Our efforts are vital to protecting young people from the fear and suffering these predators inflict on their victims.”
During the trial earlier this year, the jury saw Facebook postings in which Carter described himself as a “cross country pimp” who worked for “Pimpin International.” The jury also saw photos of tattoos with the “Birdd” moniker that victims were forced to get.
The case against Carter was prosecuted by Assistant United States Attorneys Jeff Mitchell and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
Fourth Family Member Sentenced in Benefits Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Belize man who was one of four family members convicted in a scheme to steal almost $300,000 in unemployment funds and benefits from multiple federal agencies, was sentenced today by U.S. District Judge James C. Mahan to 87 months in prison, three years of supervised release and ordered to pay approximately $297,000 in restitution, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Frederick Vernon Williams, 35, was convicted by a jury in January of 20 counts total, including conspiracy to commit mail fraud, aggravated identity theft, mail fraud, theft of government money, making a false statement in application for a passport, and making false citizenship claims. At sentencing, the judge found that he had been an organizer and leader in the scheme to defraud the agencies.
Williams’ sister, Jacqueline Louisa Gentle, 27, was convicted of nine counts total, including the above charges, misuse of a U.S. passport, and misuse of a social security number, and was sentenced on June 29 to 65 months in prison and ordered to pay $218,000 in restitution. Williams’ wife, Denise Allison Williams, 37, and his other sister, Carolyn Shelmadine Willis-Casey, 40, were each convicted of one count of mail fraud, and sentenced on June 30 to two years of probation and 30 months in prison, respectively. All four family members are citizens of Belize.
“The defendants falsely stated on government paperwork that they were U.S. citizens, and used false identities to steal federal benefits from multiple agencies, including the Departments of Labor, Agriculture, Education, Health and Human Services, and the Social Security Administration,” said U.S. Attorney Bogden. “We will continue to use federal laws to prosecute benefits thieves who steal from all Americans through greed and fraud.”
According to the court records and evidence submitted at trial, from about August 2010 to June 2012, defendants Frederick Williams and Jacqueline Gentle, citizens of Belize, conspired to register two fictitious companies, Luna Consulting and Centro America Export, with the State of Nevada, Department of Employment, Training, and Rehabilitation (DETR). After the companies were registered with DETR, the defendants conspired to submit fraudulent wage information for 16 fictitious employees, including themselves. After submitting the fraudulent wage information, the defendants submitted fraudulent unemployment compensation claims to DETR, and obtained unemployment compensation payments totaling approximately $218,000. The unemployment compensation payments were transferred to the defendants by means of Nevada debit cards mailed to the fictitious employees, which the defendants and co-defendants used to withdraw cash from ATM’s.
Frederick Williams and Gentle also made false statements in applications for U.S. passports by stating that their father was a U.S. citizen and by stating in other government paperwork that they were U.S. citizens, when they well knew that they were not citizens of the United States but were citizens of Belize.
Frederick Williams and Gentle also falsely stated that they were U.S. citizens in applications for other government benefit programs such as social security, federal student aid (Pell grants), food stamps, and Medicaid. Williams was able to fraudulently obtain approximately $33,184 in social security benefits, $10,900 in Pell grants, $33,814 in food stamp benefits, and $1,132 in Medicaid benefits.
Denise Williams fraudulently caused DETR to pay unemployment benefits in her name, and Carolyn Willis-Casey caused a notice for payment of unemployment benefits to be sent to her.
The case was prosecuted by Assistant U.S. Attorney Jiamin Chen and investigated by the U.S. Department of State Diplomatic Security Service, the Offices of the Inspector General for the U.S. Department of Labor, Social Security Administration, U.S. Department of Agriculture, U.S. Department of Education, and U.S. Department of Health and Human Services, and Homeland Security Investigations.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Former Tribal Casino Employee Sentenced for EmbezzlementRead the Press Release
WICHITA, KAN. – A former tribal casino employee was sentenced Monday to five years on federal probation for embezzlement, U.S. Attorney Tom Beall said today.
Donald M. Collins, 32, Wetmore, Kan., pleaded guilty to one count of embezzlement and theft from an Indian tribal organization. In his plea, he admitted the crime took place while he worked as a Players Club Representative for the Sac and Fox Casino, which is owned by the Sac and Fox Nation of Kansas and Nebraska.
Collins made counterfeit player cards and placed unearned free play on player cards belonging to his friends. Collins and others played the cards. The value of the counterfeit cards, along with winnings generated by the cards, caused a total loss to the casino of $30,766.
Beall commended the Kansas State Gaming Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Executive Director and Two Co-Defendants Indicted for Embezzling and Laundering Hundreds of Thousands of Dollars from CharityRead the Press Release
On Friday, July 15, 2016, a federal grand jury in Brooklyn returned a seven-count indictment charging Wafa Abboud, the former executive director of a charity that provides services to individuals with developmental disabilities, and Marcelle P. Bailey and Rami Misbah Taha, with embezzling and laundering hundreds of thousands of dollars from that charity for Abboud’s personal use. The defendants were also charged with bank fraud in connection with Abboud’s purchase of her residence in Merrick, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Eric Schneiderman, New York State Attorney General; and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
As is alleged in the federal indictment, between January 2011 and her termination in May 2016, Abboud served as the Executive Director of Human First, Inc. (Human First), a not-for-profit social services provider based in Nassau County, New York, that provided services to children and young adults with autism and other development disabilities throughout the metropolitan New York City area.
The government’s investigation revealed that, during the relevant period, Abboud directed Human First to pay approximately $900,000 in purported consulting fees to a company controlled by her co-defendant, Bailey. Abboud, in turn, used hundreds of thousands of dollars of these funds to pay her personal expenses, including more than $114,000 in personal credit card debt, which included charges for cosmetic surgery, family vacations, jewelry, meals, and spa treatments. She also used the funds to pay property taxes on her Merrick residence and to make large international wire transfers.
In December 2014, Abboud purchased the Merrick residence for $1.3 million, making a down payment of $340,000. In the months prior to that purchase, she authorized hundreds of thousands of dollars in payments from Human First to companies controlled by her co-defendant Taha, payments that were purportedly for renovation work being performed on Human First owned properties. Instead, those funds were re-routed to Abboud and used to fund the down payment on her residence. Similarly, between April and December 2015, Abboud directed Human First to pay more than $400,000 to Taha-controlled entities, the vast majority of which were then transferred to a construction company as a payment for renovations on Abboud’s residence.
Abboud, Bailey, and Taha are also charged with conspiracy to commit bank fraud in connection with false statements they made to secure the $1 million mortgage on Abboud’s residence.
United States Attorney Capers stated, “Embezzlement of public funds meant to aid individuals with developmental disabilities impacts some of the most vulnerable members of our community. With this indictment, we serve notice that those who engage in such crimes will be vigorously investigated and held to account.” Mr. Capers extended his grateful appreciation to the New York State Office of the Inspector General for its assistance.
“The crimes alleged by state and federal prosecutors are troubling, particularly because they involve funds intended to benefit the developmentally disabled community,” said Attorney General Schneiderman. “When individuals embezzle funds intended for a charitable purpose it undermines the mission of the charity and harms all donors and honest non-profit organizations.”
“As alleged, Wafa Abboud embezzled and laundered hundreds of thousands of dollars from a charity she was entrusted to run over a time period of five years. Abboud used co-conspirators to help her steal funds that were intended to help children with disabilities; instead the funds were used to finance a lavish lifestyle. Corruption is corruption wherever it exists. The FBI is committed to investigating and rooting it out, whether it happens in a public office or a nonprofit organization,” stated FBI Assistant Director-in-Charge Rodriguez.
The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the embezzlement charges, the defendants face a maximum sentence of 10 years’ imprisonment. If convicted of conspiracy to embezzle public funds, the defendants face a maximum sentence of five years’ imprisonment. If convicted of bank fraud or conspiracy to commit bank fraud, the defendants face a maximum sentence of 30 years. If convicted of conducting an unlawful monetary transaction over $10,000, the defendants Abboud and Taha face a maximum sentence of 10 years.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and Nathan Reilly, along with Special Assistant United States Attorney John Chiara (Special Counsel, Office of the New York State Attorney General) are in charge of the prosecution.
The Defendants:
WAFA ABBOUD
Age: 48
Merrick, New YorkMARCELLE P. BAILEY
Age: 49
Floral Park, New YorkRAMI MISBAH TAHA
Age: 39
Bronx, New YorkE.D.N.Y. Docket No. 16-CR-396