Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 September 2016
Man Pleads Guilty to Using False Information to Obtain Firearms and Smuggling Firearms Out of the United StatesRead the Press Release
CONCORD, N.H. – United States Attorney, Emily Gray Rice announced that Joel Tetteh, 53, appeared before United States District Court Chief Judge Joseph Laplante on September 6, 2016, and pleaded guilty to three counts of making material false statements during the acquisition of a firearm, three counts of making false statements during the purchase of a firearm, and three counts of smuggling goods from the United States.
According to documents that were filed in United States District Court and statements in the plea proceeding, Tetteh purchased a total of six handguns from a federally licensed firearms dealer in Hooksett, New Hampshire on April 29, 2014, October 29, 2014, and May 6, 2015. In purchasing these handguns, Tetteh filled out a form in which he stated that he resided at a location in Merrimack, New Hampshire. A subsequent law enforcement investigation showed that this statement was false. At the time of the purchase, Tetteh was residing in Worcester, Massachusetts and never resided at the address in Merrimack. Under federal law, the firearms dealer could not have lawfully sold the firearms to the defendant if he was not a resident of New Hampshire.
During a subsequent interview with law enforcement officers, Tetteh acknowledged that he had purchased the guns and shipped them to Ghana inside motor vehicles. He also admitted that he did not possess a license to export firearms. The firearms that Tetteh purchased are defense articles that may not be exported without a license from the State Department.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney John J. Farley.
A sentencing hearing has been scheduled for December 15, 2016.
Local Business Owner Charged with Structuring Nearly $4 Million Cash and Conspiracy to Distribute Controlled SubstancesRead the Press Release
Assistant U.S. Attorneys Orlando B. Gutierrez and Daniel C. Silva at (619) 546-9713
NEWS RELEASE SUMMARY – September 7, 2016
SAN DIEGO – A grand jury for the Southern District of California returned a six-count superseding indictment this morning against San Diego businessman Lakhwinder Singh “aka” Victor and his business Lovely Singh, Inc. for their role in a criminal conspiracy to distribute controlled substances, and for structuring approximately $3,938,976 into bank accounts all throughout San Diego County.
As set forth in the superseding indictment, Singh, along with his co-defendant, Alejandro Nava, are charged with conspiring to distribute controlled substances, oxycodone, which is a Schedule II Controlled Substance. Singh owned and operated Postal Annex stores in La Mesa and Lemon Grove. In addition to distributing the controlled substances, the Postal Annex stores operated as agents for an international money transmitting business. With the cash generated from the Postal Annex stores, Singh is alleged to have conducted hundreds of cash deposits for less than $10,000 in an effort to evade the law requiring the filing of a Currency Transaction Report (a “CTR”).
Federal laws and regulations require a domestic financial institution that engages in a currency transaction involving more than $10,000 in United States currency to file a CTR with the United States Department of the Treasury. It is an offense to cause or attempt to cause a domestic financial institution to fail to file a CTR, or for a person to “structure” cash transactions with the same purpose.
“Structuring” includes conducting one or more financial transactions in currency, in any amount, at one or more financial institutions, on one or more days, in any manner, for the purpose of evading CTRs. Federal laws and regulations define “in any manner” to include the breaking down of a single sum of currency exceeding $10,000.00 into smaller sums, as well as conducting a series of transactions, including transactions “at or below $10,000.”
“In this investigation, federal agents uncovered a very serious public health threat that should serve as a warning to those who put consumers at risk for their own financial gain,” said Dave Shaw, Special Agent in Charge for Immigrations and Customs Enforcement (ICE), Homeland Security Investigations (HSI) in San Diego. “HSI is committed to working closely with our law enforcement partners, here and abroad, to prevent imposter drugs from being smuggled into the U.S. and distributed via unregulated pharmaceutical supply chains on the Internet.”
“People who facilitate the illegal shipment of pills and make a profit are called drug dealers,” said DEA San Diego Special Agent in Charge William R. Sherman. “Thirty milligram oxycodone pills are the most abused prescription painkiller in the United States. DEA will continue to conduct investigations so that these dangerous pills do not make it to the streets for people to abuse.”
“Federal laws that regulate the reporting of financial transactions are designed to detect and stop illegal activities. As an agent for a money service business, Singh has the responsibility to comply with federal regulations and have anti-money laundering policies in place,” stated Anthony J. Orlando, Acting Special Agent in Charge for IRS Criminal Investigation. “This investigation continues to demonstrate our efforts to ensure that the financial services industry will operate in a fair and honest manner to promote public trust.”
In total, the Superseding Indictment alleges that Singh conducted 651 cash deposits between December 2011 and January 2014, for approximately $3,938,976.33; all with the intent to evade the filing of a CTR. The Superseding Indictment also contains forfeiture allegations in the same amount.
DEFENDANTS
Lakhwinder Singh “aka” Victor
Alejandro Nava
Lovely Singh, Inc.
SUMMARY OF CHARGES
Conspiracy to Distribute a Controlled Substance – Title 21 U.S.C., Sections 841(a)(1) and 846
Maximum penalty: 20 years’ imprisonment, $250,000 fine, and forfeiture
Structuring and Attempt to Evade the Filing of a CTR – Title 31, U.S.C., Sections 5324(a)(1) and (a)(3)
Maximum penalty: 10 years’ imprisonment and $500,000 fine (individual), $1,000,000 fine (corporation), and forfeiture
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Internal Revenue Service – Criminal Investigation
Lee County Man Sentenced for Theft of Government FundsRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Donald St. Louis to 15 months in federal prison for theft of government funds. As part of his sentence, the Court entered a money judgment in the amount of $146,929.40, the proceeds he unlawfully obtained. St. Louis pleaded guilty on April 21, 2016.
According to court documents, between July 2007 and July 2012, St. Louis knowingly and willfully stole and converted to his own use benefit payments under the Title II Federal Old-Age, Survivors, and Disability Insurance Program, from the Social Security Administration (SSA). St. Louis had been approved to receive Social Security disability benefits in 2005, but he returned to work a short time later without notifying the SSA. As a result of his failure to report his employment activity and improvement in medical condition to the SSA, St. Louis collected $146,929.40 in unlawful benefit payments.
This case was investigated by the Social Security Administration Office of Inspector General, Office of Investigations. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
KC Man Sentenced for Crack Cocaine, FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing crack cocaine with the intent to distribute and illegally possessing firearms.
DiMarco S. Toles, 37, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 11 years and eight months in federal prison without parole.
On April 12, 2016, Toles pleaded guilty to possessing crack cocaine with the intent to distribute and to possessing a firearm in furtherance of a drug-trafficking crime.
Toles was arrested on May 26, 2015, by detectives with the Kansas City, Mo., Police Department on an active Jackson County, Mo., warrant for possession of a controlled substance. Detectives saw a silver 1998 Chevrolet Corvette, which Toles was known to drive, parked in the driveway of a residence. They found Toles inside the residence and placed him in custody.
After executing a search warrant at the residence, detectives seized from one bedroom several mason jars and freezer bags that contained marijuana, plastic bags that contained a total of 311 grams of cocaine and 25 grams of crack cocaine (packaged individually as if for sale), numerous prescription medications (including Oxycodone, Diazepam and Alprazolam), a loaded FEG .380-caliber handgun, numerous rounds of ammunition, a loaded Kel-Tec 5.56mm handgun on a closet shelf and $13,474. Detectives found a hidden compartment in a bench in the dining room that contained four bricks (nearly two kilograms) of marijuana wrapped in plastic and a Desert Eagle .50 AE/.44 magnum semi-automatic handgun. Detectives seized a plastic bag that contained 22.5 grams of crack cocaine (individually packaged as if for sale) from the bathroom where Toles had been located.
This case was prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Kansas City, Mo., Police Department.
Justice Department Sues South Dakota Business for Violating Employment Rights of Air National Guard MemberRead the Press Release
The Justice Department filed a complaint late yesterday alleging that BioFusion Health Products Inc., a business with headquarters in Rapid City, South Dakota, violated the employment rights of former South Dakota Air National Guard Senior Airman Amber M. Ishmael under the Uniformed Services Employment and Reemployment Rights Act (USERRA). Ishmael has served her country as part of the Air National Guard since 2010 and is currently a staff sergeant with the Missouri Air National Guard.
According to the complaint, which was filed in the U.S. District Court for the District of South Dakota, Ishmael’s military service was a motivating factor in BioFusion’s decision to both deny her request for reemployment and ultimately terminate her employment. The department claims both actions by BioFusion violated Ishmael’s rights as a servicemember to employment and reemployment under USERRA.
The complaint further alleges that in February 2015, BioFusion fired Ishmael from her position as a receptionist due to her military service and subsequently denied her application for reemployment following her active military duty. Ishmael’s employment was terminated while she was out of state attending Airmen Leadership School, which is professional military education training associated with her military service. When Ishmael requested reemployment upon return, she was explicitly denied based on her previous absence related to her military service.
“BioFusion must be held to account for its alleged wrongful termination of Staff Sgt. Ishmael, who proudly serves in our Air National Guard,” said Principal Deputy Associate Attorney General Bill Baer. “The Department of Justice is committed to protecting the employment rights of those who meet their active duty commitments.”
“Staff Sergeant Ishmael served our nation with honor and distinction, and USERRA guarantees her right to return to civilian employment upon returning from military service,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This lawsuit and the department’s Servicemembers and Veterans Initiative demonstrate our steadfast commitment to leverage every resource and tool at the federal government’s disposal to protect the rights of the men and women who defend our freedom and safeguard our way of life.”
“Members of our Air National Guard make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Randolph J. Seiler of the District of South Dakota. “When our servicemembers are deployed in the service of our country, they are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. We are filing suit on behalf of Staff Sergeant Ishmael, a former member of the South Dakota Air National Guard, to ensure that she does not lose her rights while she was protecting ours.”
USERRA safeguards the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations. USERRA also protects servicemembers from discrimination on the basis of their military obligations.
The lawsuit seeks damages equal to the amount of Ishmael’s lost wages and benefits caused by BioFusion’s failure to comply with USERRA. It also seeks orders requiring BioFusion’s compliance with all provisions of USERRA and requiring BioFusion to pay all related litigation fees.
Ishmael initially filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service (VETS), which investigated this matter and attempted to reach a resolution between the parties. After resolution failed, VETS referred the complaint to the Justice Department’s Civil Rights Division. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office of the District of South Dakota. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/crt-military, as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra/main.htm.
BioFusion Health Products Complaint
Justice Department Settles with Humboldt County, California, to Resolve Americans with Disabilities Act ViolationsRead the Press Release
The Justice Department filed a proposed consent decree today with Humboldt County, California, resolving claims that the county violated Title II of the Americans with Disabilities Act (ADA).
The consent decree, which is still subject to approval by the U.S. District Court for the Northern District of California, resolves the department’s complaint that the county’s facilities, programs, services and activities are inaccessible to individuals with disabilities in violation of the ADA, despite the county’s previous commitment to improve access by entering into a Project Civic Access (PCA) agreement with the United States.
“State and local governments must ensure that people with disabilities can access community services, programs and facilities without facing unlawful and discriminatory barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “ADA compliance is not optional and the Justice Department works tirelessly to make sure that people with disabilities can live their lives with the dignity, respect and independence they deserve.”
“This office is committed to ensuring equal access to programs, both public and private,” said U.S. Attorney Brian J. Stretch of the Northern District of California. “The federal government will not tolerate discrimination that results when individuals are excluded from public access.”
The consent decree is a court-enforceable commitment by Humboldt County to bring its facilities, programs, services and activities into compliance with the ADA and make the county more accessible to individuals with disabilities. Under the terms of the consent decree, the county will pay $275,000 to compensate individuals with disabilities who faced barriers to access while attempting to use county facilities and programs. Under the decree, Humboldt County will also implement a wide range of actions to comply with the ADA, including the following:
- bring all county facilities, programs, services and activities into compliance with the ADA within three and a half years;
- ensure that the county website conforms to, at minimum, the Web Content Accessibility Guidelines 2.0 Level AA Success Criteria;
- provide curb ramps at all county intersections;
- ensure that emergency management procedures, policies and shelters are accessible to individuals with disabilities; and
- hire an ADA coordinator, independent licensed architect, web accessibility coordinator and website accessibility consultant.
The United States has over 220 agreements with localities across the country under PCA, the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the nation comply with the ADA. Humboldt County is one of the rare public entities that did not take the remedial actions required by a PCA agreement to comply with the ADA.
To read the consent decree and complaint, please visit www.ada.gov. For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Humboldt County Consent Decree
Justice Department Settles with Humboldt County to Resolve Americans with Disabilities Act ViolationsRead the Press Release
SAN FRANCISCO– The Justice Department announced a proposed consent decree today with Humboldt County resolving claims that the county violated Title II of the Americans with Disabilities Act (ADA).
The consent decree, which is still subject to approval by the U.S. District Court for the Northern District of California, resolves the department’s complaint that the county’s facilities, programs, services and activities are inaccessible to individuals with disabilities in violation of the ADA, despite the county’s previous commitment to improve access by entering into a Project Civic Access (PCA) agreement with the United States.
“This office is committed to ensuring equal access to programs, both public and private,” said U.S. Attorney Brian J. Stretch. “The federal government will not tolerate discrimination that results when individuals are excluded from public access.”
“State and local governments must ensure that people with disabilities can access community services, programs and facilities without facing unlawful and discriminatory barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “ADA compliance is not optional and the Justice Department works tirelessly to make sure that people with disabilities can live their lives with the dignity, respect and independence they deserve.”
The consent decree is a court-enforceable commitment by Humboldt County to bring its facilities, programs, services and activities into compliance with the ADA and make the county more accessible to individuals with disabilities. Under the terms of the consent decree, the county will pay $275,000 to compensate individuals with disabilities who faced barriers to access while attempting to use county facilities and programs. Under the decree, Humboldt County will also implement a wide range of actions to comply with the ADA, including the following:
- bring all county facilities, programs, services and activities into compliance with the ADA within three and a half years;
- ensure that the county website conforms to, at minimum, the Web Content Accessibility Guidelines 2.0 Level AA Success Criteria;
- provide curb ramps at all county intersections;
- ensure that emergency management procedures, policies and shelters are accessible to individuals with disabilities; and
- hire an ADA coordinator, independent licensed architect, web accessibility coordinator and website accessibility consultant.
The United States has over 220 agreements with localities across the country under PCA, the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the nation comply with the ADA. Humboldt County is one of the rare public entities that did not take the remedial actions required by a PCA agreement to comply with the ADA.
To read the consent decree and complaint, please visit www.ada.gov. For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Justice Department Settles Immigration-Related Discrimination Claims Against AtWork Cumberland StaffingRead the Press Release
The Justice Department reached an agreement today with Cumberland Staffing Inc., doing business as AtWork Cumberland Staffing (ACS), to resolve the department’s investigation into whether the company discriminated against work-authorized immigrants and naturalized U.S. citizens in violation of the Immigration and Nationality Act (INA). ACS is a temporary staffing agency with an office located in Cookeville, Tennessee.
The department initiated its investigation after a Tennessee resident notified the department of an ACS job posting that included a U.S. birth certificate requirement. The department’s investigation found that between December 2015 and February 2016, ACS’s Cookeville office created and published a job posting stating that applicants for machine operator positions at a client company must present a U.S. birth certificate, even though there was no legal authorization for such requirement. The discriminatory posting was published on several job search engine websites during this time period.
The INA’s anti-discrimination provision prohibits employers from discriminating in hiring, recruiting or referring for a fee based on a person’s citizenship, immigration status or national origin. In the absence of a legal basis to do so (such as a law, regulation or government contract that requires U.S. citizenship restrictions), employers, recruiters and referrers for a fee may not limit job opportunities or otherwise impose barriers to obtaining employment based on an individual’s citizenship, immigration status or national origin. By requiring a U.S. birth certificate – a document that only non-naturalized U.S. citizens possess – to be considered for an employment opportunity, ACS’s job posting created a discriminatory barrier for work-authorized individuals, such as naturalized U.S. citizens, U.S. nationals, lawful permanent residents, asylees and refugees.
Under the settlement agreement, ACS will pay a civil penalty, remove all specific document requirements from its job postings except where required by law, train staff on proper employment verification and reverification procedures and ensure that trained staff or legal counsel review future job advertisements.
“Staffing agencies, which are in the business of making employment opportunities available to job seekers, cannot create unlawful and discriminatory employment barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The department commends ACS for its cooperation during the investigation and its willingness to address the situation.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.
To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they have been subjected to different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact OSC’s worker hotline for assistance.
AtWork Settlement Agreement
Justice Department Ends Agreement with West Virginia School District after Successful Implementation of English Language ProgramsRead the Press Release
The Justice Department announced today that it has terminated its January 2012 settlement agreement with the Mercer County, West Virginia, School District following the district’s successful implementation of programs and services for its English Learner (EL) students, as required by the Equal Educational Opportunities Act (EEOA) of 1974.
After entering into the settlement agreement, the district implemented a process whereby every new student completed a home language survey so that all students with non-English speaking backgrounds were timely identified; had their English proficiency assessed; and if they were not proficient, were provided with individualized English language services and supports. The district also implemented a new curriculum for the instruction of EL students, improved its teacher training, carefully monitored the academic progress of current and former EL students and enhanced its communications with limited-English proficient families.
As a result of its efforts, the district has successfully integrated dozens of EL students into its student body, enabling them to access the curriculum and develop strong relationships with their teachers and peers. EL students and their parents have credited the district’s individualized programs and the dedication of EL teachers in furthering the students’ progress.
“We commend the Mercer County School District for successfully implementing the settlement agreement and for showing dedication and care to its English Learner students and their families,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We hope other rural districts with growing EL populations will learn from Mercer County’s positive example and significant progress.”
The EEOA requires state and local education agencies to take appropriate action to overcome language barriers that impede students’ equal participation in instructional programs. Enforcement of the EEOA is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Julie B. Porter, Chief of the Criminal Division, to Depart U.S. Attorney’s Office After 12 YearsRead the Press Release
CHICAGO — Assistant U.S. Attorney Julie B. Porter, who supervised child exploitation investigations and prosecuted significant corporate fraud and public corruption cases, will depart the U.S. Attorney’s Office after 12 years of public service, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today.
Ms. Porter was a member of the prosecution team in the corporate fraud trial of Conrad Black and other executives of Hollinger International, once one of the world's largest media empires. She participated in public corruption cases involving the city of Chicago’s hired truck program, as well as the federal investigation known as “Operation Board Games,” which led to the conviction of former Illinois Gov. Rod Blagojevich.
“Julie Porter has served the citizens of the Northern District of Illinois and the United States with tremendous distinction,” said Mr. Fardon. “She has been a dynamic leader in our Office, mentoring new prosecutors and lending valuable insight and advice. I want to thank Julie for her service, and I look forward to all that she will accomplish in the future.”
Ms. Porter joined the Office in 2004. She most recently served as Chief of the Criminal Division, overseeing nearly 150 prosecutors. Prior to that appointment, she was Chief of the office’s Financial Fraud Section and coordinator of the district’s Project Safe Childhood program.
After her final day in the Office on Wednesday, Ms. Porter will open a private law practice in Chicago.
Mr. Fardon also announced today that Assistant U.S. Attorney Brian Hayes has been promoted to succeed Ms. Porter as Chief of the Criminal Division. Mr. Hayes, a former Special Agent with the Federal Bureau of Investigation, has held various leadership positions within the Office, most recently serving as Chief of the General Crimes Section. Since joining the Office in 2003, he has prosecuted cases involving violent crimes, financial fraud, narcotics, tax violations and other major offenses. He recently participated in the prosecution of Toby Jones and Kelsey Jones, Chicago brothers who conspired to murder a federal informant. Toby Jones was sentenced earlier this year to 40 years in prison. Kelsey Jones is awaiting sentencing.
“Brian Hayes is an experienced and skilled prosecutor,” said Mr. Fardon. “He is the perfect fit to oversee our Criminal Division at such an important time in our district.”
Mr. Hayes’ first day as Chief of the Criminal Division will be Thursday.
Illegal Immigrant Living in Louisville Indicted on Immigration and Fraud Related ChargesRead the Press Release
Previously charged in Jefferson County Circuit Court with murder and operating a motor vehicle under the influence
LOUISVILLE, Ky. – A Mexican national illegally present in the United States and residing in Louisville, Kentucky, was charged this week, by a federal grand jury, with possessing and using counterfeit documents for purposes of obtaining employment announced United Statets Attorney John E. Kuhn, Jr.
Juan Carlos Ortega-Santos, 26, was charged with four immigration fraud related counts: Counts 1-2: Use of a False Document for Purposes of Obtaining Employment, Count 3: Possession of a Counterfeit Alien Registration Card, and Count 4: Possession of a Counterfeit Social Security Card.
This case arose when Ortega-Santos was arrested on June 22, 2016 for driving a vehicle under the influence and killing two juveniles on Taylorsville Road. Ortega-Santos was later charged with murder, assault, wanton endangerment, operating a motor vehicle under the influence, driving without a license, and failure to maintain insurance. Soon after his arrest, it was learned that Ortega-Santos was a Mexican national illegally present in the United States.
Upon learning of Ortega-Santos’ illegal immigration status in the United States, the Immigration and Customs Enforcement (ICE) office began investigating Ortega-Santos and found that he had used counterfeit documents to obtain employment in Louisville, Kentucky. Ortega-Santos currently has an ICE detainer which will hold him if he were to be released from state or federal custody.
If convicted, Ortega-Santos faces maximum potential penalties of no more than 10 years in prison for counts 1-2; and no more than 5 years in prison for counts 3-4.
Assistant United States Attorney Daniel P. Kinnicutt is prosecuting the case. Immigration and Customs Enforcement (ICE) conducted the investigation.
***
The indictment of a person by Federal Grand Jury is an accusation only and that person is presumed innocent until and unless proven. ortega-santos_juan_indictment_9-7-16.pdf
Illegal Alien Pleads Guilty to Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SALVADOR ACOSTA-SALAS, age 34, a citizen of Mexico, pled guilty today to a one-count Indictment charging him with possession of a firearm by an illegal alien.
According to the court documents, on July 30, 2016, ACOSTA-SALAS was stopped by the Mandeville Police Department for driving over the speed limit. ACOSTA-SALAS exited his truck and produced a Mexican identification card but did not have a driver’s license. The officer asked ACOSTA-SALAS if he had any weapons on him or in the vehicle. ACOSTA-SALAS advised that he had a pistol in the center console of the truck. The officer entered the cab of the truck and retrieved a Taurus Model PT 111 Pro, 9 mm semi-automatic pistol bearing serial number TDO85685. The officer also found two Taurus magazines loaded with ammunition. ACOSTA-SALAS illegally entered the United States prior to July 30, 2016, and had no pending status adjustments with the Citizenship and Immigration Services.
ACOSTA-SALAS faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for December 15, 2016.
U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement - Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Mandeville Police Department in investigated this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONY GAVARRETTE, age 23, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
U.S. District Judge Martin L.C. Feldman sentenced GAVARRETTE to 15 months incarceration. Additionally, GAVARRETTE was ordered to pay a $4,000 fine and a $100 special assessment fee.
According to court documents, GAVARRETTE was encountered by federal agents at a residence in New Orleans on November 10, 2015. He had previously been deported from the United States on September 26, 2011 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Honduran Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Juan Castillo-Linder, of Honduras, was sentenced on September 6, 2016, after pleading guilty to illegally reentering the United States after having been previously deported.
Castillo-Linder was identified after being arrested in Manchester, New Hampshire for Driving Under the Influence of Alcohol on May 8, 2016. A Deportation Officer later determined that he was a citizen of Honduras who previously had been deported from the United States. Castillo-Linder, who was arrested by ICE on May 19, 2016, and has been in custody since that time, was sentenced to time served. He faces likely deportation.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Heroin Supplier for Grape Street Crips Gang Sentenced to 15 Years in PrisonRead the Press Release
NEWARK, N.J. – A narcotics supplier for the New Jersey Grape Street Crips was sentenced today to 180 months in prison for distributing hundreds of grams of heroin in and around Newark, U.S. Attorney Paul J. Fishman announced today.
Gabriel Henderson, 36, of Newark, previously pleaded guilty before the U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to distribute heroin. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Henderson admitted that between December 2014 and May 2015, he conspired with others to distribute brick quantities of heroin to members and associates of the Grape Street Crips. Henderson and his conspirators sold heroin in and around the Pennington Court public-housing complex located on Pennington Street and the John W. Hyatt public-housing complex located on Hawkins Street, both in Newark.
In addition to the prison term, Judge Salas sentenced Henderson to five years of supervised release.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Howard B. Brownstein, Union City, New Jersey
Harrison County Man Pleads Guilty to Using Machine Gun During Robbery in Freeport, OhioRead the Press Release
COLUMBUS, Ohio – Nicholas T. Billman, 20, of Flushing, Ohio, pleaded guilty in U.S. District Court here today to brandishing a machine gun while he robbed a general store in Freeport, Ohio on October 22, 2015.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Harrison County Sheriff Ronald J. Myers announced the plea entered today before U.S. Magistrate Judge Terence P. Kemp.
Billman pleaded guilty to one count of robbery of a business that is engaged in interstate commerce and one count of carrying and brandishing a machine gun during a crime of violence.
Testimony during the plea hearing confirmed that Billman entered the Hilltop General Store brandishing an AK-47 type rifle. Billman wore a handgun holstered on his right hip and a sheathed knife on his left hip. Billman robbed the store of cash and cigarettes then fled. A witness followed Billman but stopped after Billman fired three shots toward him.
Acting on information received from the public and other witnesses, investigators obtained a warrant and searched Billman’s residence two days later. They found an AK-47 similar to the one used in the robbery as well as other firearms and evidence indicating that Billman had committed the crimes. Forensic tests determined that the weapon was fully automatic. Sheriff’s deputies arrested Billman on state charges, then contacted ATF to pursue federal charges. A federal grand jury indicted Billman in February 2016. He has been in custody since sheriff’s deputies arrested him.
The plea agreement calls for a sentence of 25 years in prison, followed by five years of court supervision. Senior U.S. District Judge James L. Graham will review the terms of the plea agreement and schedule a date for sentencing, if the court accepts the terms.
“We appreciate the partnership with Harrison County law enforcement and the ATF agents who investigated this crime,” Acting U.S. Attorney Glassman said. “Violent crime touches all of the 48 counties in our district and we must be united to punish such crimes most effectively.”
Acting U.S. Attorney Glassman commended Assistant U.S. Attorney Timothy Prichard, who represents the U.S. in this case.
Galax Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ABGINGDON, VIRGINIA – A Galax, Virginia man pled guilty today in federal court to a series of child pornography charges that will lead to him serving at least 15 years in federal prison, United States Attorney John P. Fishwick Jr. announced.
Richard Denny Nofsinger Jr., 37, of Galax, Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to three counts of manufacturing child pornography. At sentencing, he faces a mandatory minimum sentence of 15 years in federal prison and a maximum statutory sentence of up to 90 years.
“When individuals like Mr. Nofsinger exploit our most vulnerable citizens, our children, it is the job of law enforcement to hold them accountable for their actions,” U.S. Attorney Fishwick said today. “The actions this defendant took were perverse and obscene and his punishment will be severe but just. The United States Attorney’s Office will continue to prosecute those who exploit children to the fullest extent of the law.”
According to evidence presented at today’s guilty plea hearing by United States Attorney Fishwick, Nofsinger was arrested on May 17, 2016 on a state arrest warrant in City of Galax and was in possession of a cellular phone. A search warrant was executed on the cell phone and eight videos containing sexually explicit images of children were recovered.
The videos depict Nofsinger, as well as at least two separate child victims, acting in a sexually explicit manner. Police have been able to identify the victims through witness interviews and identifying other objects, such as furniture, seen in the videos. Police have also recovered the T-shirt, and sunglasses Nofsinger wore in some of the videos.
The investigation of the case was conducted by the City of Galax Police Department and the United States Secret Service. United States Attorney John P. Fishwick Jr. and Assistant United States Attorney Jennifer R. Bockhorst prosecuted the case for the United States.
Former UNK Psychology Professor Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Joseph J. Benz, 56, currently of Kearney, Nebraska, was sentenced on September 7, 2016, in Lincoln, Nebraska, to 5 years of probation by United States Senior District Judge Richard G. Kopf, for possession of child pornography. In addition to serving probation, Benz was ordered to pay $9,999.00 in restitution to the numerous victims whose abuse was documented in the child pornography and that law enforcement was able to identify. Benz will also be required to register as a sex offender for the remainder of his life.
In March of 2013, investigators with the Nebraska Attorney General’s Office became aware of a computer with a specific IP address that was identified as a potential download source of files containing child pornography. Through further investigation it was determined that the IP was assigned to Benz at his residence in Kearney, Nebraska. Between March and May of 2013, investigators were able to receive more than 6,000 child pornography files from Benz’s computer. Further investigation later determined that Benz had been downloading the child pornography since at least 2008.
A search warrant was obtained and executed at Benz’s residence and during the search, investigators observed a computer that was actively running and downloading child pornography. The items seized during the search warrant were forensically examined at the Attorney General's computer lab, and over 20,000 video and image files of child pornography were identified. Benz had also copied the child pornography to a number of external hard drives and flash drives.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska Attorney General’s Office.
Former Terrebonne Sheriff’s Officer Sentenced for Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRYL B. STEWART, age 49, of Houma, was sentenced today after previously pleading guilty to one-count of theft of government funds.
U.S. District Judge Ivan L.R. Lemelle sentenced STEWART to 6 months’ probation and a $100 special assessment. Additionally, STEWART was ordered to pay $15,925 in restitution.
According to court records, STEWART was the Narcotics Unit Supervisor for the Terrebonne Parish Sheriff’s Office (TPSO) during a time period when the TPSO applied for and received two separate federal grants from the Department of Justice. The two grants were for personnel overtime and equipment to support a Multi-Jurisdictional Narcotics Task Force. From 2009 through 2012, STEWART claimed and approved his own overtime from the two grants. The Federal Bureau of Investigation began to look into the billing and discovered through documents and interviews that STEWART occasionally claimed overtime for the two federal grants at the same time that he was working private security details. There were other instances where STEWART claimed federal overtime hours from the grants but he did not actually participate in the narcotics enforcement work. The amount that was improperly billed totals $15,925.00. STEWART resigned from the Terrebonne Parish Sheriff’s Office on or about April 12, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation for its handling of the matter. Assistant U.S. Attorney Edward J. Rivera was in charge of the prosecution.
Executives of Maryland Telemarketing Business Facing Federal Indictment in $50 Million Nationwide Office Supply ScamRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Brian Keith Wallen, age 52, of Lutherville, Maryland, and Andrew Stafford, age 56, of Bel Air, Maryland with conspiracy to commit mail fraud and mail fraud arising from a nationwide fraudulent telemarketing scheme designed to ship unwanted and vastly over-priced light bulbs and cleaning supplies to thousands of businesses and non-profit organizations. The indictment was filed on June 30, 2016 and unsealed today upon the arrest of Andrew Stafford. Brian Keith Wallen was reported missing on April 28, 2016, and is still being sought by law enforcement.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division.
“Based in Maryland, the defendants allegedly cheated thousands of American businesses out of more than $50 million through a sophisticated scheme that involved sham sales of light bulbs and cleaning supplies,” said U.S. Attorney Rod J. Rosenstein. “According to the allegations, company employees followed a script that included sending unsolicited supplies, lying to victims, and repeatedly submitting fraudulent bills.”
According to the indictment, on March 24, 2003, Midway Industries, LLC and Johnson Distributing, LLC were incorporated in Maryland, each with the stated purpose to engage in the retail sale of light bulbs and cleaning supplies, among other activities. Between July 22, 2008 and April 18, 2014, Wallen and another individual incorporated additional shell entities, in Maryland and Florida. Midway, Johnson Distributing and the shell entities will be collectively referred to here as “Midway.”
According to the indictment, at different times the Midway companies were owned, in whole or in part by Wallen, who held the title of CEO. Andrew Stafford held the title of President. According to the indictment, Wallen and Stafford exercised supervision over the practices at Midway.
The seven count indictment alleges that from 2007 through 2014, Wallen, Stafford, and the Midway co-conspirators fraudulently obtained millions of dollars from thousands of victim businesses by deceiving the businesses’ into paying exorbitant prices for light bulbs and cleaning supplies, as well as paying for products that the businesses never ordered.
Specifically, the indictment alleges that from about 2007 to 2014, Wallen, Stafford and other conspirators telephoned authorized representatives of businesses, who were often maintenance employees, on behalf of Midway companies. During these phone calls, the conspirators sought to conceal Midway’s true locations in Reisterstown, Maryland and in Florida. According to the indictment, during the initial calls, Wallen, Stafford, and the conspirators promised national store gift cards to the authorized representatives to induce them to place initial orders, or to provide Midway with additional company information or personal information, like the authorized representatives’ home address and personal phone number. The conspirators used the cell phone numbers and/or birthdays of the authorized representatives as “purchase order” numbers in order to lend legitimacy to later collections efforts.
In addition, during the calls the conspirators allegedly made false statements, including: that the victim businesses had an existing business relationship with Midway; and that Midway would send a “half box” of light bulbs. In fact, the “half box” was a deceptive technique used to understate the volume and price of shipments, and disguise unwanted future shipments. Wallen, Stafford, and the conspirators allegedly did not divulge the price of any products, engaging in a practice called the “price blow-off,” falsely telling the victim business that they did not have the price in front of them, but that it would be at the corporate discount. In fact, Midway did not offer a corporate discount.
As long as the victims continued paying the Midway invoices, in subsequent calls Wallen, Stafford, and the conspirators allegedly misrepresented that the balance of the victim’s order, or their “regular seasonal order” had recently been shipped, despite no order having been made by the victim business, and no actual shipment having yet been sent. The conspirators called authorized representatives under the guise of different Midway companies in order to repeat the process using a product other than light bulbs, often cleaning supplies.
The indictment further alleges that when the authorized representative could not be reached, Wallen, Stafford, and the conspirators would simply send the product and an inflated invoice to the victim, without the victim placing an order. The conspirators referred to this practice as “just ship.” If the authorized representative had quit, been fired, or even passed away, the conspirators sent a product and inflated invoice to the victim business knowing that the victim would be unable to dispute the validity of the order. This practice was referred to by the Midway conspirators as a “down the road.” The Midway conspirators regularly sought the approval of Wallen and Stafford, as their supervisors, to engage in the practices of “just ship,” or “down the road.”
According to the indictment, Wallen, Stafford, and the co-conspirators ordered the light bulbs and cleaning supplies from a company located in New Jersey (supplier). They instructed the supplier to ship the products to the victim without an invoice, and to send the invoices directly to Midway. Wallen, Stafford, and the conspirators then sent inflated invoices to the billing departments of the victims. The indictment alleges that the invoices sent to the victim businesses were regularly 900% above the prices Midway paid the supplier. After a victim had paid one invoice, Wallen, Stafford, and the conspirators sent invoices to the victim that were sometimes greater than 8,000% above the supplier’s prices.
When victims did not remit payment, the indictment alleges that the collections department at Midway repeatedly called the victims in order to force them to pay the inflated invoices. If the victim company continued to protest, the Midway collections department made false representations, including that an order had actually been placed with Midway, using as proof that the authorized representative had received a gift card, or provided his home address.
If the victim threatened to contact law enforcement or the Better Business Bureau, Wallen, Stafford and the conspirators allegedly offered to revise the invoice to a discounted rate, or take back a product for either a “re-stocking fee” or “at cost,” which was still substantially greater than the cost of the products purchased from the supplier.
The indictment alleges that as a result of the fraud scheme, Midway sent fraudulent invoices to victim companies for more than $100 million and received more than $50 million in payments on those invoices.
Wallen and Stafford each face a maximum penalty of 20 years in prison for the mail fraud conspiracy and for each count of mail fraud.
The guilty pleas of co-conspirators Robert Chesser, age 46, of Dundalk, Maryland; Brandon Johnston, age 38, of Catonsville, Maryland; Alan Landsman, age 36, of York, Pennsylvania; Steven Phillips, age 64, of Pikesville, Maryland; Brandon Riggs, age 34, of Baltimore; and Thomas Wishon, age 54, of Cockeysville, Maryland, were also unsealed today. All six have all pleaded guilty to conspiracy to commit mail fraud in connection with their roles in the scheme, and are awaiting sentencing.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The FBI is offering a reward of up to $5,000 for information leading to the location and arrest of Brian Keith Wallen. Anyone with information concerning Wallen's whereabouts is urged to call the Baltimore office of the FBI at 410-265-8080.
Anyone who believes they may have been a victim of this fraud scheme is asked to complete and submit this form Midway Victims Form to the email or mailing address on the form. Additional information can be found at the U.S. Attorney's Office website.
United States Attorney Rod J. Rosenstein commended the FBI and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney and Harry M. Gruber, who are prosecuting the case.
Domestic violence offender sentenced for illegal possession of gunRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Patrick Blair, 64, of Clarksburg, West Virginia, was sentenced today to 12 months in prison for illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Blair, who was previously convicted of “Domestic Violence” in Harrison County, West Virginia, was discovered to be in possession of a .357 magnum caliber rifle. He pled guilty in May 2016 to one count of “Possession of a Firearm by a Person Convicted of a Misdemeanor Crime of Domestic Violence.”
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
District of Columbia Man Pleads Guilty to Environmental CrimeRead the Press Release
James Powers, 59, of Washington, D.C., pleaded guilty today to violating the Clean Air Act for his role in a scheme to improperly remove asbestos from a historic building in the District of Columbia.
The guilty plea, in the U.S. District Court for the District of Columbia, was announced by Assistant Attorney General John C. Cruden, head of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Channing D. Phillips of the District of Columbia and Acting Special Agent in Charge Jennifer Lynn of the Environmental Protection Agency’s (EPA) criminal enforcement program in the Mid-Atlantic States.
Asbestos, a once-popular fireproofing insulation, is now known to cause lung cancer, asbestosis and mesothelioma in people who inhale the fibers released when asbestos is disturbed. Congress has determined that there is no safe level of exposure to asbestos. The Clean Air Act requires that renovation in asbestos-containing properties follow specific protocols designed to safely remove asbestos from the property prior to any renovation or demolition activity, so as not to expose workers to the risk of deadly respiratory diseases.
“Our nation’s Clean Air Act requires strict adherence to the practices that protect the public from exposure to asbestos and includes criminal liability for those who do not comply with the law,” said Assistant Attorney General Cruden. “This prosecution is part of the Justice Department’s continuing commitment to protect the public and workers who are particularly vulnerable to harm from irresponsible, unsafe and illegal practices in the work place.”
“James Powers put a work crew and the public at risk by not taking the proper steps to safely renovate a building containing asbestos,” said U.S. Attorney Phillips. “The Clean Air Act specifically establishes standards for the safe handling of this dangerous material. This prosecution holds this businessman accountable for his recklessness and shows we will enforce laws that protect the health and safety of workers and citizens in the District of Columbia.”
“Exposure to asbestos poses serious risks to public health and our communities, so it’s imperative that it be handled properly and disposed of safely,” said Acting Special Agent in Charge Lynn. “This case demonstrates EPA and its law enforcement partners will hold accountable those who put the public at risk through unsafe practices.”
The development project at issue involved renovating the historic Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples. According to a statement of offense submitted as part of the guilty plea, in March 2010, Powers formed a partnership with a local real estate development firm to purchase and renovate the property. An asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board and pipe insulation.
After the survey, the partnership received bids from licensed professional asbestos abatement and renovation firms in the area. Despite knowing that the building contained asbestos, Powers hired Larry Miller, 58, of Palmetto, Georgia, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building. The written contract with Miller specifically excluded removal of asbestos from the property. Powers told Miller that the asbestos would be abated by another contractor after Miller’s work and did not fully inform Miller about the extent of asbestos in the property. Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property. He emailed them a proposed asbestos abatement contract from a corporation that, unbeknownst to his partners, was simply an alter-ego for Powers.
During the period between August 2011 and October 2011, according to the statement of offense, Miller and his crew of workers conducted interior demolition at the Maples, without any asbestos abatement having occurred as required under the Clean Air Act. Powers also contracted with a waste disposal company to haul construction debris from the Maples off-site. Powers failed to inform the waste disposal company that the construction debris contained asbestos and the debris was not taken to a site qualified to receive asbestos waste.
Even after an inspection by local environmental authorities revealed asbestos in the building, Powers had Miller and his crew members proceed with demolition. Over the course of the project, the workers disturbed substantial quantities of asbestos, exposing themselves to a substantial risk of serious illness later in life.
U.S. District Judge Amy Berman Jackson for the District of Columbia scheduled sentencing for Dec. 16. The charge carries a statutory maximum of five years in prison and potential financial penalties.
Miller pleaded guilty on Nov. 19, 2015, to one count of negligent endangerment under the Clean Air Act. He is awaiting sentencing in the U.S. District Court for the District of Columbia. The charge carries a maximum sentence of not more than one year of imprisonment, a fine of up to $100,000 and a term of supervised release and/or probation.
After the acts described in the statement of offense, a licensed asbestos abatement firm conducted abatement at the Maples. The District of Columbia Department of the Environment subsequently conducted inspections and found the property to be free of all asbestos-containing materials.
In announcing the plea, Assistant Attorney General Cruden, U.S. Attorney Phillips and Acting Special Agent in Charge Lynn expressed appreciation for the work performed by Special Agents from EPA and the Department of Transportation. They also acknowledged the efforts of Trial Attorney Cassandra J. Barnum and Paralegal Specialist Cynthia Longmire of the Environmental Crimes Section and those who worked on the case at the U.S. Attorney’s Office, including Paralegal Specialists Kaitlyn Krueger, former Paralegal Specialists Krishawn Graham and John Lowell and former Assistant U.S. Attorney Jonathan Hooks and Assistant U.S. Attorneys Virginia Cheatham and Zia Faruqui.
District of Columbia Man Pleads Guilty to Environmental CrimeRead the Press Release
WASHINGTON – James Powers, 59, of Washington, D.C., pleaded guilty today to violating the Clean Air Act for his role in a scheme to improperly remove asbestos from a historic building in the District of Columbia.
The guilty plea, in the U.S. District Court for the District of Columbia, was announced by Assistant Attorney General John C. Cruden, head of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Channing D. Phillips of the District of Columbia, and Acting Special Agent in Charge Jennifer Lynn of the Environmental Protection Agency’s (EPA) criminal enforcement program in the Mid-Atlantic States.
Asbestos, a once-popular fireproofing insulation, is now known to cause lung cancer, asbestosis and mesothelioma in people who inhale the fibers released when asbestos is disturbed. Congress has determined that there is no safe level of exposure to asbestos. The Clean Air Act requires that renovation in asbestos-containing properties follow specific protocols designed to safely remove asbestos from the property prior to any renovation or demolition activity, so as not to expose workers to the risk of deadly respiratory diseases.
“Our nation’s Clean Air Act requires strict adherence to the practices that protect the public from exposure to asbestos and includes criminal liability for those who do not comply with the law,” said Assistant Attorney General Cruden. “This prosecution is part of the Justice Department’s continuing commitment to protect the public and workers who are particularly vulnerable to harm from irresponsible, unsafe and illegal practices in the work place.”
“James Powers put a work crew and the public at risk by not taking the proper steps to safely renovate a building containing asbestos,” said U.S. Attorney Phillips. “The Clean Air Act specifically establishes standards for the safe handling of this dangerous material. This prosecution holds this businessman accountable for his recklessness and shows we will enforce laws that protect the health and safety of workers and citizens in the District of Columbia.”
“Exposure to asbestos poses serious risks to public health and our communities, so it’s imperative that it be handled properly and disposed of safely,” said Acting Special Agent in Charge Lynn. “This case demonstrates EPA and its law enforcement partners will hold accountable those who put the public at risk through unsafe practices.”
The development project at issue involved renovating the historic Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples. According to a statement of offense submitted as part of the guilty plea, in March 2010, Powers formed a partnership with a local real estate development firm to purchase and renovate the property. An asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board and pipe insulation.
After the survey, the partnership received bids from licensed professional asbestos abatement and renovation firms in the area. Despite knowing that the building contained asbestos, Powers hired Larry Miller, 58, of Palmetto, Georgia, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building. The written contract with Miller specifically excluded removal of asbestos from the property. Powers told Miller that the asbestos would be abated by another contractor after Miller’s work and did not fully inform Miller about the extent of asbestos in the property. Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property. He e-mailed them a proposed asbestos abatement contract from a corporation that, unbeknownst to his partners, was simply an alter-ego for Powers.
During the period between August 2011 and October 2011, according to the statement of offense, Miller and his crew of workers conducted interior demolition at the Maples, without any asbestos abatement having occurred as required under the Clean Air Act. Powers also contracted with a waste disposal company to haul construction debris from the Maples off-site. Powers failed to inform the waste disposal company that the construction debris contained asbestos and the debris was not taken to a site qualified to receive asbestos waste.
Even after an inspection by local environmental authorities revealed asbestos in the building, Powers had Miller and his crew members proceed with demolition. Over the course of the project, the workers disturbed substantial quantities of asbestos, exposing themselves to a substantial risk of serious illness later in life.
U.S. District Judge Amy Berman Jackson for the District of Columbia scheduled sentencing for Dec. 16, 2016. The charge carries a statutory maximum of five years in prison and potential financial penalties.
Miller pleaded guilty on Nov. 19, 2015, to one count of negligent endangerment under the Clean Air Act. He is awaiting sentencing in the U.S. District Court for the District of Columbia. The charge carries a maximum sentence of not more than one year of imprisonment, a fine of up to $100,000 and a term of supervised release and/or probation.
After the acts described in the statement of offense, a licensed asbestos abatement firm conducted abatement at the Maples. The District of Columbia Department of the Environment subsequently conducted inspections and found the property to be free of all asbestos-containing materials.
In announcing the plea, Assistant Attorney General Cruden, U.S. Attorney Phillips and Acting Special Agent in Charge Lynn expressed appreciation for the work performed by Special Agents from EPA and the Department of Transportation. They also acknowledged the efforts of Trial Attorney Cassandra J. Barnum and Paralegal Specialist Cynthia Longmire of the Environmental Crimes Section and those who worked on the case at the U.S. Attorney’s Office, including Paralegal Specialists Kaitlyn Krueger, former Paralegal Specialists Krishawn Graham and John Lowell and former Assistant U.S. Attorney Jonathan Hooks and Assistant U.S. Attorneys Virginia Cheatham and Zia Faruqui.
Diabetic Medical Equipment Companies to Pay More Than $12 Million to Resolve False Claims Act AllegationsRead the Press Release
U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc. and the two owners and presidents of those companies have agreed to pay the United States more than $12.2 million to resolve allegations that they violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment, the U.S. Department of Justice announced. U.S. Healthcare Supply LLC, based in Milford, New Jersey, has agreed to pay more than $5 million, and Jon P. Letko, its owner and president, has agreed to pay more than $1 million. His brother, Edward J. Letko, the owner and president of Oxford Diabetic Supply Inc., a medical equipment supplier that allegedly also participated in the scheme, has agreed to pay $6 million plus interest.
“We will continue to hold health care providers accountable for attempting to circumvent Medicare statutes and regulations that help prevent the submission of claims for medically unnecessary services and supplies,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Arrangements which clearly disregard program requirements in order to enhance the financial interests of health care providers will not be tolerated.”
“Cold-calling people to sell them expensive medical equipment is prohibited for a reason: unsuspecting patients shouldn’t be coerced into making medical decisions about devices and equipment – which they may not even need – on the basis of a sales pitch,” said U.S. Attorney Paul J. Fishman for the District of New Jersey.
The settlement announced today resolves allegations that U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc. set up and controlled an entity called Diabetic Experts Inc., which they used to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment. The companies submitted claims to Medicare for the equipment that they sold based on these unsolicited calls. This conduct violated the Medicare Anti-Solicitation Statute.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.5 billion through False Claims Act cases, with more than $18.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of New Jersey and the U.S. Department of Health and Human Services’ Office of the Inspector General. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Cumberland County, New Jersey, Man Charged with Possessing Dogs for Dog FightingRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man allegedly connected to and living with an individual involved in a dog fighting conspiracy was arrested today for possessing dogs for the purpose of dog fighting, U.S. Attorney Paul Fishman, District of New Jersey, and Assistant Attorney General John Cruden, DOJ Environment and Natural Resources Division, announced.
Robert A. Elliott, Sr., 47, of Millville, New Jersey, was charged by complaint with two counts of possessing pit bull-type dogs for dog fighting ventures in New Jersey and elsewhere. He is expected to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to documents filed in this case and statements made in court:
The federal Animal Welfare Act makes it a felony to fight dogs or to possess, train, sell, buy, deliver, receive, or transport dogs intended for use in dog fighting.
On June 1, 2016, Frank Nichols and other individuals were charged by complaint with violations of the federal Animal Welfare Act pertaining to dog fighting. That day, law enforcement officers executed a search warrant on a residence on a multi-acre property in Millville where Nichols lived. Another defendant, Robert Elliott, also lived at the residence.
During the search of the residence, law enforcement officers seized 13 live pit bull-type dogs. Seven of the dogs were kept on heavy chains in a wooded area behind the house. The dogs were spaced so that they could not reach one another. Two additional dogs were housed individually in pens in the wooded area near the chained dogs. Law enforcement officers found three more dogs in shipping crates in the unfinished basement. One of the 13 dogs, who appeared ill, was found in a crate in a room on the first floor.
Several of the dogs had scars and other signs of injury, and all of the dogs had untreated veterinary conditions. Law enforcement also found other indications that the dogs were used in dog-fighting ventures, such as:
-
Break sticks, which are used to pry open a dog’s mouth in order to release a hold that the dog has on another dog;
-
A stand often called a “rape rack” (or “breeder stand” as referred to by defendant Robert Elliott) designed to hold a female dog off the ground and immobilize her while a male dog mounts her. The device is used where the female dog is too dog-aggressive to mate otherwise;
-
A box containing veterinary medications, a skin stapler, numerous needles and syringes, catheters, IV bags and tubing, sutures, and suture removing tools;
-
Testosterone boosting supplements, which are often used by dog fighters to increase muscle mass and aggression of dogs before a fight;
-
Dog pedigrees and printouts of dogs from dog fighting registries, including pedigrees related to the pit bull-type dogs found at his residence
Elliott claimed ownership of several of the dog fighting paraphernalia found in his home and indicated that he and his family owned 10 of the 13 pit bull-type dogs found at his residence.
The counts of possession of an animal for participation in an animal fighting venture each carry a maximum potential penalty of up to five years in prison.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey, and the Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless proven guilty.
-
Convicted Sex Offender Sentenced for Sexually Assaulting 6 Year-OldRead the Press Release
NEWPORT NEWS, Va. – Mark Anthony Lowe, 63, of Fort Worth, Texas, was sentenced today to 40 years in prison for coercion and enticement of a child and penalties for a registered a sex offender. Lowe was also sentenced to a lifetime of supervised release.
Lowe pleaded guilty on April 26. According to court documents, Lowe admitted he sexually assaulted a six year-old child while visiting the child’s family on Langley Air Force Base during the 2015 Christmas holiday. The child was taken to an area hospital and examined by a sexual assault nurse examiner and a sexual assault forensic report was completed. Lowe, a registered sex offender, has a criminal record which includes numerous sexual assault offenses with a child in 1993 in Tarrant County, Texas.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Gordon B. Johnson, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Lisa R. McKeel prosecuted the case.
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. 4:16cr31.
Cleveland woman sentenced to three years in prison for filing fraudulent tax claimsRead the Press Release
A Cleveland woman sentenced to three years in prison for filing false income tax returns on behalf of friends and relatives and fraudulently claiming more than $131,000, said U.S. Attorney Carole Rendon and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
Monique Kirk, 39, held herself out as a tax preparer and offered to prepare returns from friends and relatives. Kirk used the personal information they provided to file false and fictitious returns, including false wage income and tax credit information, many for claimants who earned little or no money, according to court documents.
Kirk requested some of the refunds be paid by direct deposit into bank accounts in the name of third parties that she controlled. Kirk converted his money to her own personal use, according to court documents
Kirk filed 21 false tax returns between 2012 and 2014 in which she claimed approximately $131,871 in tax refunds to which neither she nor the claimants were entitled. She was ordered to pay $122,501 in restitution.
“IRS Criminal Investigation stands ready to investigate anyone who would put a taxpayer at risk for a quick profit and unjustly enrich themselves by preparing false claims for refunds,” Enstrom said.
This case was prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the IRS-CI.
Clark Summit Man and Engineering Firm Indicted for Violations of Clean Water Act and Tampering with Government WitnessRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David D. Klepadlo, age 61, Clarks Summit, and David D. Klepadlo & Associates, Inc., have been charged in an Indictment returned by a federal grand jury in Scranton on September 6.
The Indictment was unsealed today following Klepadlo’s initial appearance before U.S. District Magistrate Judge Karoline Mehalchick. Judge Mehalchick ordered him to surrender his passport, have no contact with co-conspirators or government witnesses, and travel is limited to within the Middle District of Pennsylvania.
According to United States Attorney Peter Smith, Klepadlo, along with the engineering company he owns, David D. Klepadlo & Associates, Inc., are charged with conspiracy to violate the Federal Clean Water Act, multiple counts of specific Clean Water Act violations, and Tampering with a Government Witness.
The Indictment alleges that Klepadlo is certified by the Commonwealth of Pennsylvania as a waste water treatment plant operation. Klepadlo and his company contracted with local municipalities to operate and manage the municipalities’ waste water treatment plants in accordance with regulations and limitations in permits issued by the Pennsylvania Department of Environmental Protection (PADEP) and the U.S. Environmental Protections Agency (EPA).
The permits required that the permittee at all times maintain in good working order, and properly operate all facilities and systems installed and used to achieve compliance with the terms and conditions of the permits. It is alleged that for approximately two years, beginning in May 2012 and continuing through June 2014, Klepadlo and his company failed to properly operate and maintain the facilities and systems of treatment and control, in accordance with terms and conditions of the permits.
The facilities identified in the Indictment are the Greenfield Township Sewer Authority in Lackawanna County and the Benton/Nicholson Sewer Authority in both Lackawanna and Wyoming Counties.
The Indictment further alleges that as part of the conspiracy, Klepadlo knowingly failed to take daily and weekly samples and measurements required for the purpose of monitoring pollutants discharged into waterways of the United States; knowingly created false test results and falsely reported those results in discharge monitoring reports submitted monthly to the PADEP and the EPA; and knowingly diluted pollutant samples when the samples were believed to exceed the limits specified in the permit.
Klepadlo is also charged with corruptly attempting to persuade a government witness to fabricate a false explanation for the Clean Water Act violations for the purpose of influencing testimony of a witness in an official proceeding involving the testing and registering requirements of the permits.
Waste water from the Greenfield publicly-owned treatment plan is discharged into a tributary of Dundaff Creek, which flows into Tunkhannock Creek, which flows into the Susquehanna River. Waste water from the Benton/Nicholson facility flows into a tributary of South Branch Tunkhannock Creek, which also flows into the Susquehanna River.
The charges stem from an investigation jointly conducted by the Environmental Protection Agency, the Pennsylvania Department of Environmental Protection, and the Federal Bureau of Investigations. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the Conspiracy statute is 5 years’ imprisonment and a $250,000 fine. The Clean Water Act violations are punishable by up to 3 years’ imprisonment and a sliding scale for fines of $5,000 to $25,000 per violation, per day. The maximum penalty under the Tampering with a Witness statute is 20 years’ imprisonment, and a $250,000 fine. Each crime also carries a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
CPA Charged with Bank Fraud for Providing Inflated Tax Returns to Client to Use to Defraud LendersRead the Press Release
An Information[1] was unsealed today charging Barry Horrow, 68, of Glenn Mills with 4 counts of bank fraud, announced United States Attorney Zane David Memeger.
The information alleges that Horrow, a Certified Public Accountant who owned and operated his own accounting company, Horrow and Associates, which operated in both Delaware and West Chester Counties, committed bank fraud by helping one of his clients, George Barnard of Newtown Square (who owned Capital Financial Mortgage Corporation (“CFMC”) and who was charged previously in an indictment with various offenses stemming from a $13 million fraud scheme who owned) to defraud lenders into issuing mortgages for 3 multi-million dollar New Jersey Shore beach mansions and a yacht based on false information. Specifically, the information alleges that Horrow repeatedly provided false tax returns for Barnard to submit to lenders on which Horrow inflated Barnard’s income by hundreds of thousands of dollars, when Horrow knew that the lenders were going to be relying upon the inflated income figures in approving Barnard’s loan requests. The information also alleges that Horrow purported to conduct audits of CFMC, when in reality Horrow did not conduct any audits, and that he issued false audit reports that he knew were being submitted to lenders to help secure loans for both CMFC and Barnard.
Horrow faces a maximum sentence of 120 years’ imprisonment, a five-year period of supervised release, a $4,000,000 fine, a $400 special assessment, and a likely advisory sentencing guideline range of 51 – 63 months’ imprisonment. The information also seeks the forfeiture of over $2,965,000.
The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Buffalo Man Sentenced for Possessing Child PornographyRead 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 David Young, 29, of Buffalo, NY, who was convicted of possession of child pornography, was sentenced to 20 years in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that in February 2015, a West Seneca Schools resource officer obtained information that the defendant had images of child pornography on a cellular telephone. The resource officer notified Cheektowaga Police who began an investigation. On February 13, 2015, officers searched Young’s computer and located images of child pornography, some that were produced by the defendant.
In January 2016, Young pleaded guilty in state court to Attempted Sexual Abuse in the 1st degree. Judge Wolford cited this incident as one of the factors in her sentencing decision.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, Cheektowaga Police Department, under the direction of Chief David Zack and the West Seneca Police Department, under the direction of Chief Daniel Denz.
Brooklyn Man who Supplied Cocaine to Massena Sentenced to 5 YearsRead the Press Release
PLATTSBURGH, NEW YORK – Paul Williams, aka “Cash,” age 32, of Brooklyn, New York, was sentenced today to serve 5 years in prison for a drug distribution conspiracy involving at least 500 grams of cocaine.
The announcement was made by U.S. Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
Senior U.S. District Judge Gary L. Sharpe also sentenced Williams to a 4-year term of supervised release, to begin after Williams’s release from prison.
As part of his August 2015 plea, Williams admitted that from 2012 through September 2013, he transported cocaine by bus from New York City to Plattsburgh, where he was picked up by co-conspirators and driven to Massena. Upon arriving in Massena, Williams personally sold the cocaine and provided it to other members of the conspiracy for sale. In August 2013, Williams was arrested in Plattsburgh with 84 grams of cocaine hidden in the bottom of a Pringles container; he planned to sell the cocaine in Massena.
This case was investigated by HSI, the Massena Police Department, the Saint Lawrence County Sheriff’s Office, and the New York State Police.
This case was prosecuted by Assistant U.S. Attorneys Katherine Kopita and Cyrus P.W. Rieck.
Boston Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Boston man pleaded guilty today in U.S. District Court in Boston to sex trafficking charges.
Akil J. DeCoteau, 28, pleaded guilty to one count of transportation of an individual with intent to engage in prostitution and one count of conspiracy to transport an individual for prostitution. U.S. District Court Judge Denise J. Casper scheduled sentencing for Nov. 30 2016.
In January 2014, DeCoteau met a woman at a friend’s apartment in Maine. DeCoteau asked the woman to work for him as a prostitute and that, in exchange, he would take care of her and provide her with food and shelter. The woman, who had no place to live at the time, agreed. DeCoteau took the woman to a hotel in Westbrook, Maine, rented a room, and posted advertisement online offering sex with the woman for a fee. DeCoteau charged men between $100 to $200 to have sex with the woman, and kept all of the money.
Over the course of two weeks, DeCoteau prostituted the woman in hotels in Maine, Massachusetts and New York. In each location, DeCoteau posted advertisements online offering sex with the woman for a fee, and then kept the money that woman received in exchange for the sexual services.
Last week, DeCoteau’s co-defendant, Kwamaine Wells pleaded guilty to related charges and is scheduled to be sentenced on Dec. 1, 2016.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Miranda Hooker and Leah Foley of Ortiz’s Civil Rights Enforcement Team.
Area Man Sentenced to 30 Months in Federal Prison for Conspiracy to Commit Sex Trafficking of a ChildRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Gage James Lester, age 20, was sentenced to 30 months in federal prison followed by three (3) years of supervised release on one count of Conspiracy to Commit Sex Trafficking of a Child. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
According to court records, during an FBI interview, Lester was identified as providing an underage female for sex to another human trafficker he was associated with. The fifteen-year-old female initially denied being trafficked by Lester, but later admitted to being trafficked and said she lied because she was trying to protect him. She detailed how her and another then fourteen-year-old female were trafficked by Lester during the summer of 2014. She stated that Lester advertised them as prostitutes and that most of the money that was made by them was given to him. The FBI identified three ads posted in the “Fort Smith Escorts” section of the website that were used to advertise the two females. Lester was indicted by a federal grand jury on October 28, 2015 and pleaded guilty on April 25, 2016.
This case was investigated by the Federal Bureau of Investigation and the Fort Smith Police Department. Assistant United States Attorney Aaron Jennen prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
* * * E N D * * *
Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Anderson Man Sentenced for Smuggling Orangutan SkullsRead the Press Release
VICTORIA, Texas – A professional reptile breeder has entered a guilty plea to smuggling two orangutan skulls into the country from Indonesia, announced U.S. Attorney Kenneth Magidson along with Southwest Region Special Agent in Charge Nicholas E. Chavez of the U.S. Fish and Wildlife Service (FWS).
Graham Scott Criglow, 39, pleaded guilty before Senior U.S. District Judge John D. Rainey today. Criglow was ordered to pay a $2,500 fine and must serve three years of probation.
“One of our highest priorities is to combat wildlife trafficking here in the United States and abroad as we are on the front lines protecting those animals listed under the Convention on International Trade in Endangered Species,” said Chavez. “The successful outcome of this investigation is also the result of working with the U.S. Attorney's Office, where these individuals and companies are held responsible for their actions. I hope this sentence sends a strong message to those that are involved in smuggling wildlife that the crime is not worth the outcome.”
Criglow was charged by a criminal information with one count of smuggling two orangutan (Pongo species) skulls into the U.S. Orangutans are protected under the Endangered Species Act (ESA). The ESA prohibits any person subject to the jurisdiction of the U.S. to engage in the trade of any wildlife contrary to the provisions of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
During the plea today, the court learned that Criglow was the owner of Strange Cargo Exotics, which was an Internet-based wildlife related business he operated from his Anderson residence. Criglow’s business was engaged in the breeding, sale and trade of reptiles, including venomous snakes.
In April 2016, FWS inspectors at the San Francisco International Airport examined a parcel from Indonesia addressed to Criglow. The parcel lacked an Indonesian customs declaration and was screened using an x-ray machine. The inspectors determined the parcel contained two primate skulls. A morphology examination determined the wildlife was two orangutan skulls.
In May 2016, agents conducted a controlled delivery of the skulls at Criglow’s residence and executed a search warrant, at which time agents located several other animal skulls and bones. Authorities also located human remains including approximately 30 human skulls which were found to be legally purchased by Criglow for his personal collection.
The charges were the result of an investigation conducted by FWS with the assistance of the U.S. Postal Inspection Service and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
A Dozen People, including Former O.C. Superior Court Clerk, Indicted in Bribery Scheme to ‘Fix’ Criminal Cases and Traffic ChargesRead the Press Release
SANTA ANA, California – After a grand jury issued a federal racketeering indictment alleging corruption by a former clerk in the Orange County Superior Court, authorities this morning arrested 10 defendants on charges stemming from a bribery scheme in which the clerk improperly and illegally resolved cases on terms favorable to hundreds of defendants without the knowledge of prosecutors or judges. Authorities expect to soon have two remaining defendants in custody.
According to the 38-count indictment unsealed this morning, the court clerk allegedly “fixed” criminal cases in exchange for cash bribes as high as $8,000. As a result of the scheme detailed in the indictment, hundreds of defendants had charges dismissed, had fees reduced, or avoided mandatory jail time in drunk driving cases after paying bribe money to the clerk or middlemen who took bribes on his behalf.
The man at the center of the scheme – former clerk Jose Lopez Jr. – is charged with being at the center of a racketeering enterprise that engaged in bribery. Lopez, a 36-year-old resident of Anaheim, allegedly “resolved” cases by entering information into the court’s computers to make it appear that a defendant had paid required fees or had performed community service.
In some cases, Jose Lopez illegally created records to indicate that a defendant had pleaded guilty to reckless driving and that drunk driving charges had been dismissed – thereby avoiding the consequences of a drunk driving charge. According to the indictment, in other cases, Jose Lopez illegally entered court records that it made it appear second-time DUI offenders had served mandatory jail time, when they had not.
“The racketeering indictment charges the former court clerk with accepting bribes to falsify court records on the court’s computer system,” said United States Attorney Eileen M. Decker. “Some of the records indicated that a case had been resolved, when no such action had been approved by any judge of the court, and some records included signatures that appeared to be those of officers of the court, but were in fact forged. This defendant allegedly assumed the roles of judges, prosecutors and defense attorneys to line his pockets in a staggering abuse of his position. Very simply, he compromised the entire justice system in Orange County.”
Lopez is charged with receiving bribes from individuals who had been prosecuted for drunk driving or traffic-related offenses, according to the indictment. Those who paid the bribes were solicited directly by Lopez or one of a team of recruiters. The 11 recruiters charged in the indictment are:
-
Ricardo Quinones, 32, of Santa Ana;
-
Juan C. Rosas Santillana, 32, of Chino Hills;
-
Ramon Salvador Vasquez, 27, of Santa Ana;
-
Manuel Galindo Jr., 26, of Santa Ana;
-
Gibram Rene Lopez, also known as “Ivan,” 26, of Anaheim;
-
Agustin Sanchez Jr., 32, of Santa Ana;
-
Luis Alberto Flores Guillen, also known as “Bills,” 26, of Santa Ana;
-
Oscar Centeno, also known as “Mosquito,” 26, of Santa Ana;
-
Javed Asefi, also known as “Joey,” 43, of Ladera Ranch;
-
Jeff Reynes Fernandez, also known as “Lean,” 24, of Fullerton; and
-
Jesus Saldana, 28, of Garden Grove.
This morning, federal authorities arrested 10 of the defendants, including Jose Lopez. Guillen is expected to surrender later this morning. Sanchez is believed to be out of the state, but he is expected to be taken into custody in the near future.
The defendants arrested today are expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.
“Mr. Lopez used his position of trust for personal gain and, in the process, conspired with others to pervert the legal system,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today's arrest should send a message that fixing tickets and tampering with witnesses is taken seriously by law enforcement and corruption by public officials will result in serious consequences.”
The racketeering indictment alleges a scheme in which Lopez allegedly accepted bribes and illegally resolved criminal cases over a five-year period. The conspiracy ended in the spring of 2015 when the court learned about the misconduct and took steps to reopen many of the cases.
In addition to the bribes and falsified court records, Jose Lopez also allegedly forged the signatures of prosecutors. Several members of the conspiracy allegedly attempted to persuade witnesses to lie about the scheme if they were questioned by authorities.
The indictment alleges that Lopez improperly resolved more than 1,000 cases, including 69 driving-under-the-influence cases. Lopez allegedly received hundreds of thousands of dollars in bribes, and investigators continue to review evidence obtained during the investigation to determine the total amount he received.
According to the indictment, Lopez used bribe money to pay for, among other things, international vacations, trips to Las Vegas, and the opening of a restaurant in Garden Grove.
“This investigation demonstrates IRS Criminal Investigation's ability to trace the cash payments made to Jose Lopez and uncover the disposition of those funds,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation will continue to work with the U.S. Attorney’s Office and the FBI to bring to justice those who have enriched themselves in this scheme and in the process corrupted the Orange County Superior Court.”
All 12 defendants named in the indictment are charged with participating in a conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO). This charge outlines 139 overt acts that outline bribe payments and official court documents that memorialized actions that simply never occurred.
The indictment also alleges 26 counts of bribery in which Jose Lopez either solicited money or one of seven of the recruiters paid money to him.
Jose Lopez is additionally charged with five counts of money laundering.
The indictment further charges Vasquez with conspiring to tamper with witnesses and two counts of witness tampering. Santillana and Fernandez are also charged with witness tampering.
Asefi is charged with making false statements to the FBI last year during its investigation into the bribery scheme.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If they are convicted of the RICO conspiracy, each defendant would face a statutory maximum sentence of 20 years in federal prison. The money laundering and witness tampering charges also carry a 20-year maximum penalty. The bribery charges carry a statutory maximum penalty of 10 years in prison.
This case is being investigated by special agents with the Federal Bureau of Investigation and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Vib Mittal of the Santa Ana Branch Office.
-
6 September 2016
York Man Charged for Armed Robbery of PNC BankRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed on September 2, 2016 in U.S. District Court in Harrisburg charging a York man with possession of a weapon by a previous offender, bank robbery, and possession of a weapon in furtherance of a crime of violence.
According to United States Attorney Peter Smith, Derek Bowman, age 33, used a shot gun to rob the PNC Bank located in York, Pennsylvania on January 9, 2016.
This matter was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Prosecution has been assigned to Assistant United States Attorney Chelsea Schinnour.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Whitehall Man Sentenced to 37 Months on Machinegun ChargeRead the Press Release
ALBANY, NEW YORK – Shane Robert Smith, a/k/a Robert Smith, age 19, of Whitehall, New York, was sentenced today to serve 37 months in prison for illegal possession of a machinegun.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
U.S. District Judge Mae A. D’Agostino also ordered Smith to serve a 3-year term of supervised release upon his release from prison.
U.S. Attorney Richard S. Hartunian stated: “Our Joint Terrorism Task Force identified Shane Smith as a potential threat and quickly worked to neutralize him so that he would not be able to carry out a hate-inspired act of violence. This investigation and prosecution is an example of the kind of work that we and our law enforcement partners do every day to keep our citizens safe, which is our top priority.”
“The safety of our communities is paramount,” said FBI Special Agent in Charge Andrew W. Vale. “Threats like those posed by Mr. Smith need to be stopped as soon as possible. Thanks to the joint efforts of our law enforcement partners, Mr. Smith’s hateful vision will not be realized.”
Smith admitted that he repeatedly sought to purchase or otherwise obtain fully automatic weapons, as well as semiautomatic weapons that he intended to convert into fully automatic weapons. In social media postings and other communications, Smith repeatedly advocated violence toward members of racial and religious minority groups, and listed his interests as “guns, gun smithing, building bombs, knives, guerilla warfare, preserving my race and folk, and destroying the government.” Smith also attempted to form what he described as a “militant terrorist” group, or a “hit squad,” called the Silent Resistance Army that would be a “true underground Aryan militant army with only men who are not scared to kill or die to make change happen.”
After becoming aware of social media postings by the defendant, including a post in which Smith sought to acquire a Mac 10 machinegun, individuals working with law enforcement contacted him. In subsequent communications with those people, Smith confirmed that he sought to purchase a Mac 10 and that he intended to “rock and roll it,” a phrase that means to convert a semi-automatic weapon to fully automatic. Smith further explained that the firearm was “gonna be used to execute kikes, coons, and get money for the crew.” Smith also sought to acquire Green Tip ammunition, which is designed to pierce body armor, as well as explosives such as “c4 or grenades.”
After communicating through the Internet and text messages with an undercover FBI agent, Smith arranged to meet with the agent for the purpose of acquiring machineguns, silencers, and ammunition. On August 5, 2015, Smith met with an undercover FBI agent in Whitehall, New York, and took possession of two machineguns, a silencer, a Beretta handgun, and 120 rounds of Green Tip ammunition; the guns were not loaded and inoperable at the time. Smith was then immediately arrested.
This case was investigated by the FBI Joint Terrorism Task Force in Albany, and was prosecuted by Assistant United States Attorneys Sean O’Dowd and Solomon Shinerock.
West Seneca Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Joseph S. Heleniak, 72, of West Seneca, NY, who was convicted of possession of child pornography, was sentenced to 120 months in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that between August 30, 2013 and September 1, 2013, the defendant knowingly possessed images of child pornography that were stored on his AOL email account after obtaining them over the internet. Some of the images depicted prepubescent minors. Heleniak was previously convicted of possession of child pornography in 2005 in the Western District of New York and sentenced to 30 months in prison.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Adam S. Cohen, Special Agent in Charge, and the Cheektowaga Police Department under the direction of Chief David Zack. The task force includes the Buffalo Police Department, the Cheektowaga Police Department, and the Niagara County Sheriff’s Office.
Webster Man Pleads Guilty to Creating A False DocumentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brian Becker, 41, of Webster, NY, pleaded guilty to creating a false document, 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 John J. Field, who is handling the case, stated that the Internal Revenue Service levied the wages of Becker and his wife in order to collect $226,000 in unpaid federal income taxes owed by the couple. In September 2013, the defendant created a fraudulent release of levy form and submitted it to his employer and his wife’s employer in order to defeat the IRS levy on their wages. As a result of the fraudulent document, the employers released approximately $17,800 to the Becker’s that should have been paid to the IRS.
The plea is the result of an investigation by Special Agents with the U.S. Treasury Inspector General for Tax Administration, acting under the leadership of Special Agent in Charge Robert E. O’Malley.
Sentencing is scheduled for December 13, 2016 at 3:00 pm before Judge Wolford.
United Kingdom Man Sentenced for His Role in Child ExploitationRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on September 6, 2016, Simon William Riley, 21, Swansea, Wales, United Kingdom, was sentenced before Judge Ralph R. Erickson to 12 years in prison on one Count of Sexual Exploitation of a Minor, two Counts of Advertising Material Involving the Sexual Exploitation of Minors, and one Count of Receipt of Child Pornography. Judge Erickson also sentenced Riley to serve 10 years of supervised release and ordered Riley to pay $400 to the Crime Victims’ Fund.
This case came to the attention of law enforcement after the National Center for Missing and Exploited Children (NCMEC) notified members of the North Dakota Internet Crimes Against Children (ICAC) Task Force that a website on the Tor Network contained child pornographic images of a girl located in Fargo, North Dakota. Subsequently, ICAC Task Force members identified the 13-year-old victim who told law enforcement that she sent the sexually explicit images to another female via Kik Messenger. In reality, this "female" was Simon Riley, an adult male. After Riley obtained these images, he posted advertisements on the website found on the Tor Network. The advertisement contained a link to a file-sharing site where other Tor users could access the images depicting the victim. Law enforcement determined that the victim’s images were accessed on more than 20,000 occasions by Tor users located throughout the world.
Through further investigation, the ND Bureau of Criminal Investigation and Homeland Security Investigation agents identified Simon Riley in the United Kingdom as the individual responsible for posting the above-mentioned advertisements. Based upon information provided to them by the ND ICAC Task Force, the National Crime Agency in the United Kingdom executed a search warrant at Riley’s residence on September 10, 2015. Foreign law enforcement recovered evidence, including electronic media, at Riley’s residence which linked him to the user account that posted the advertisements on the Tor Network and which contained a link to a separate file-sharing site which contained the victim’s images. The forensic examination of the media recovered from his residence in the United Kingdom revealed hundreds of child victims, including a second 13-year-old victim from Fargo, North Dakota.
This case was investigated by the North Dakota Internet Crimes Against Children Task Force, the Department of Homeland Security - Homeland Security Investigations in Grand Forks, ND, as well as the North Dakota Bureau of Criminal Investigation and the Fargo Police Department.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
U.S. Attorney Damon P. Martinez to Host 24th Annual Four Corners Indian Country Conference in Isleta PuebloRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez of the District of New Mexico is hosting the 24th Annual Four Corners Indian Country Conference at the Isleta Pueblo Hotel and Conference Center in Isleta Pueblo, N.M., on Sept. 7-9, 2016. U.S. Attorney Martinez will be joined by co-hosts U.S. Attorney John S. Leonardo of the District of Arizona, U.S. Attorney John W. Huber of the District of Utah, and Acting U.S. Attorney Bob Troyer of the District of Colorado.
The annual conference, which is sponsored by the U.S. Department of Justice’s Office for Victims of Crime and the U.S. Attorneys for the Districts of Arizona, Colorado, Utah and New Mexico, promotes a collaborative approach to addressing the needs of victims of crime in Indian Country in the Four Corners’ region. In addition to representatives of the four U.S. Attorney’s Offices and other DOJ agencies, conference participants will include tribal leaders, victim advocates and social services providers, tribal judges and prosecutors, and law enforcement officers.
The conference is scheduled to begin at 1:00 p.m. on Sept. 7, 2016, with an opening ceremony that will include welcoming remarks by the Honorable Eddie Paul Torres, Sr., Governor of Isleta Pueblo, and the U.S. Attorneys. The opening ceremony also will include a vocal performance by Kansas K. Begaye, an enrolled member of the Navajo Nation who is a Native American award winning recording artist and a former (2013) Miss Indian World. The second day of the conference, Sept. 8, 2016, will begin with a flute performance by Robert Tree Cody of the Lakota Nation, a five-time Native American Music Award winner.
This annual conference, which is held in each of the four districts on a rotating basis, exemplifies the Justice Department’s commitment to addressing the high rates of victimization of our women and children in our Native communities. The conference theme – “Serving Victims: Restoring Hope” – embodies what the Department of Justice is striving to achieve in Indian Country; helping victims overcome trauma, and preventing these crimes from reoccurring in the future. The conference provides a forum for developing strategies for assisting victims of crime and tackling other serious public safety challenges confronting our Native communities. It provides an opportunity for DOJ officials to hear from members of our Native communities about their needs and to work with them to address their unique challenges.
OPEN MEDIA: The opening ceremony, which will be held in the Grand Ballroom of the Isleta Pueblo Hotel and Conference Center from 1:00 p.m. to 2:30 p.m. on Wednesday, Sept. 7, 2016, will be open to the media. Reporters who wish to attend the opening ceremony and/or schedule interviews with the U.S. Attorneys should contact Alyssa Ferda at 505-224-1480 (office), 505-366-1463 (mobile), or [email protected].
Two Greek Shipping Companies and Engineers Convicted of Pollution Crimes and Obstruction of JusticeRead the Press Release
WASHINGTON—A federal jury in Greenville, North Carolina, has convicted Oceanic Illsabe Limited, Oceanfleet Shipping Limited and two of their employees of violating the Act to Prevent Pollution from Ships (APPS), obstruction of justice, false statements, witness tampering and conspiracy, announced Assistant Attorney General John C. Cruden, head of the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina. Oceanic Illsabe Limited is the owner of the M/V Ocean Hope, a large cargo vessel that was responsible for dumping tons of oily waste into the Pacific Ocean last year. Oceanfleet Shipping Limited was the managing operator of the vessel. Both companies operate out of Greece. Also convicted at trial were two senior engineering officers who worked aboard the vessel, Rustico Ignacio and Cassius Samson. The jury convicted on each of the nine counts in the indictment.
The operation of marine vessels, like the M/V Ocean Hope, generates large quantities of oil sludge and oil-contaminated waste water. International and U.S. law require that these vessels use pollution prevention equipment, known as an oil-water separator, to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard. The evidence presented to the jury showed that in June 2015, the vessel discharged around ten metric tons of sludge into the ocean. The vessel was also regularly pumping contaminated water directly overboard. None of these discharges were disclosed as required.
“Our office was pleased to partner with the Department of Justice’s Environment and Natural Resources Division in this significant case,” said U.S. Attorney Bruce. “We will continue to vigorously enforce federal laws designed to prevent the pollution of the world’s oceans.”
“While the vast majority of vessel owners, operators, and crews who do business in the United States follow our environmental laws, every year, a few unscrupulous commercial mariners obstruct justice in an attempt to hide from the Coast Guard the intentional discharge of large quantities of pollutants into the oceans,” said Rear Admiral Meredith Austin, commander of the Fifth Coast Guard District. “Coast Guard Marine Inspectors and the Coast Guard Investigative Service, in concert with the Department of Justice, will continue to aggressively investigate and prosecute those who do this.”
The evidence presented during the nine-day trial demonstrated that the companies were aware that the ship had not offloaded any oil sludge from the vessel since September 2014 and that the ship rarely used its oil-water separator. Instead, the vessel’s second engineer, Samson, ordered crewmembers to connect what is known in the industry as a “magic pipe” to bypass the vessel’s oil-water separator and pump oil sludge overboard. In addition, crewmembers were ordered to pump oily water from the vessel’s bilges directly into the ocean up to several times per week. The dumping occurred with the knowledge and approval of the ship’s chief engineer, Ignacio. Finally, the engineers used a tank designated for oily wastes to store diesel fuel for sale on the black market.
Upon arriving at the Port of Wilmington, Oceanic, Oceanfleet, Ignacio and Samson attempted to hide these discharges by presenting a false and fictitious oil record book to U.S. Coast Guard inspectors. When inspectors uncovered evidence of dumping, the defendants ordered lower-level crewmembers to lie to Coast Guard personnel. Samson also made several false statements to a Coast Guard inspector regarding the bypass of the oil-water separator.
At the conclusion of trial, defendants Oceanic and Oceanfleet were convicted of one count of conspiracy, one count of violating APPS, two counts of obstruction of justice, one count of false statements and four counts of witness tampering. Ignacio was convicted of one count of conspiracy, one count of violating APPS, one count of obstruction of justice and two counts of witness tampering. Samson was convicted of one count of conspiracy, one count of violating APPS, two counts of obstruction of justice, one count of false statements and three counts of witness tampering. The companies could be fined up to $500,000 per count, in addition to other possible penalties. Ignacio and Samson face a maximum penalty of 20 years in prison for the obstruction of justice charges.
This case was investigated by the U.S. Coast Guard Sector North Carolina, the Coast Guard Investigative Service and U.S. Coast Guard District Five. Civil Chief Norman Acker and Assistant U.S. Attorney Michael Anderson of the U.S. Attorney’s Office for the Eastern District of North Carolina provided additional expertise and assistance with the pretrial phase of the case. The attorneys prosecuting the case were Senior Trial Attorney Kenneth Nelson and Trial Attorney Brendan Selby, of the Department of Justice’s Environmental Crimes Section and Banu Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina.
Turkish Man Sentenced to 3½ Months for Unlawfully Re-Entering the United StatesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Tayfun Remzi Reis, 61, of Istanbul, Turkey, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 3½ months in prison for unlawfully re-entering the United States after having been removed from the country. He was also fined $2,000.
According to court records, on May 30, 2016, the defendant was discovered by a U.S. Border Patrol agent in an area of a recent border sensor activation near Blaine, Maine. Reis was located close to the international border, adjacent to a beaten down trail, and was found on the ground in a fetal position covered by branches. Fingerprint results revealed that he was a citizen of Turkey who in 1998 had been removed from the United States.
The investigation was conducted by the Department of Homeland Security’s U.S. Customs and Border Protection and U.S. Border Patrol.
Tobyhanna Resident Pleads Guilty to Heroin TraffickingRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 26-year-old Tobyhanna resident pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to distribution and possession with intent to distribute heroin.
According to United States Attorney Peter Smith, the defendant, Jabril Greggs, also known as “Bril,” admitted to distributing more than 80 grams of heroin between late 2013 and early 2015. Greggs admitted to selling 100 bags of heroin to a confidential informant on July 10, 2014, in Monroe County. Eighty grams of heroin is equivalent to approximately 2,600 retail bags of heroin.
Greggs was indicted by a federal grand jury in October 2014, as a result of an investigation by the Drug Enforcement Administration (DEA), the Pennsylvania State Police, the Monroe County District Attorney’s Office, and Pocono Mountain Regional Police.
Greggs faces up to 20 years in prison and a $1 million fine. Judge Mannion ordered a pre-sentence report to be completed. Sentencing will be scheduled after the pre-sentence report is completed.
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.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Three Plead Guilty to Importing White-Tailed Deer in MississippiRead the Press Release
Hattiesburg, Miss. – Coleman Virgil Slade, 70, of Purvis, Mississippi, Don Durrett, 72, of Aspermont, Texas, and Dewayne Slade, 44, of Purvis, Mississippi, pled guilty on Wednesday, August 31, 2016, to conspiracy to violate the Lacey Act by importing live white-tailed deer into Mississippi, announced U.S. Attorney Gregory K. Davis, Special Agent in Charge Luis Santiago with the U.S. Fish and Wildlife Service, and Special Agent in Charge Dax Roberson with the U.S. Department of Agriculture – Office of Inspector General (USDA OIG).
Coleman Virgil Slade pled guilty to a felony conspiracy count. He will be sentenced on November 21, 2016, by U.S. District Judge Keith Starrett and faces a maximum penalty of five years in prison and a $250,000 fine.
Don Durrett and Dewayne Slade pled guilty to a misdemeanor conspiracy count and were each sentenced to a $10,000 fine, placed on three years of probation, and prohibited from hunting for one year.
According to the guilty pleas, from January of 2009 through December of 2012, the Slades and Durrett spent over $100,000 to purchase live white-tailed deer for delivery from Texas to Mississippi. It is illegal to import live white-tailed deer into Mississippi. However, the deer were transported to Lamar County, Mississippi, and placed in a high fence enclosure. The purchases and transportation to Mississippi of the live white-tailed deer were accomplished through false purchase and transportation records.
“The Department of Justice is committed to enforcing the Lacey Act and other federal laws to protect our wildlife resources,” said U.S. Attorney Gregory K. Davis. “We will continue to work closely with USDA OIG, U.S. Fish and Wildlife Service and the Mississippi Department of Wildlife, Fisheries and Parks to enforce the Lacey Act.”
U.S. Fish and Wildlife Service Special Agent in Charge Luis Santiago stated “We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously. We will continue working vigorously investigating those who choose to violate state and federal laws.”
“I want to thank the US Attorney’s office, OIG special agents, and our law enforcement partners for their hard work on this investigation,” said USDA OIG Special Agent in Charge Dax Roberson, “USDA OIG is committed to pursuing individuals who commit criminal violations of the Lacey Act, which is intended to protect the health and well-being of America’s wildlife.”
This case was investigated by the U.S. Fish and Wildlife Service - Office of Law Enforcement, the U.S. Department of Agriculture – Office of Inspector General, and the Mississippi Department of Wildlife, Fisheries, and Parks. It was prosecuted by Deputy Criminal Division Chief Darren LaMarca.Third Arkansas DHS Employee Pleads Guilty in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Tonique Hatton, 39, of North Little Rock, pleaded guilty to one count of conspiring to commit wire fraud and one count of receipt of a bribe in connection with USDA funds intended to feed children in low income areas during the school year and summer.
Today’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr., who will sentence Hatton at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. USDA also funds the Summer Food Service Program. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
Hatton worked for DHS, and her responsibilities included processing applications from sponsors who applied to participate in the feeding programs, determining their eligibility, and approving their proposed feeding site(s).
Two of Hatton’s co-defendants, Jacqueline Mills and Kattie Jordan, were sponsors of feeding programs from approximately January 2012 to August 2014. Mills was a sponsor and had approved sites in cities including Helena and Marianna, Arkansas. Mills’ programs received more than $2.5 million in federal funds from DHS. Jordan was a sponsor and had approved sites in cities including Dermott, Dumas, Eudora, and Lake Village, Arkansas. Jordan’s programs received more than $3.5 million in federal funds from DHS.
Hatton was responsible for approving the feeding programs for Mills and Jordan at various times between January 2012 and August 2014. Mills and Jordan made bribe payments to Hatton to ensure those programs were approved. Some bribes were provided directly by checks made payable to Hatton or indirectly through payments to her relatives.
In exchange for these bribe payments, Hatton, knowing that these sponsors would submit inflated claims, would still approve their applications which contained the location of the sites and the maximum number of children who would be fed at each site.
During the time in the pending Indictment, Mills and Jordan submitted inflated claims for reimbursement to DHS, claiming that more children were fed at their sites than were actually fed. Because their applications had been approved for a specified number of children that could be fed at the sites, inflated claims were approved and paid by DHS without further scrutiny. Hatton also helped Mills and Jordan avoid DHS’s detection of the fraud.
Hatton is the ninth person to plead guilty concerning the theft of USDA feeding program funds for children. Previous charges filed in this investigation detail alleged fraud involving over $10 million in USDA feeding program funds.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years’ imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release. The statutory penalty for accepting bribes is not more than 10 years, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Texas Woman Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A Greenville, Texas, resident pleaded guilty today to one count of aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney John R. Parker for the Northern District of Texas.
According to documents filed with the court, Lourdes Ramirez, 39, was a tax return preparer operating under the names TX ASAP Tax Services and Fiesta Tax Service in Greenville. Ramirez admitted that from at least 2011 through 2014, she willfully prepared and filed individual income tax returns for clients that reported materially false information, including false business income and losses, false credits and false deductions in order to produce fraudulently inflated refunds. Ramirez prepared approximately 1,163 tax returns and caused an intended tax loss to the United States of approximately $1,155,383.
Ramirez is scheduled to be sentenced on Dec. 21. She faces a statutory maximum sentence of three years in prison, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Parker commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation and Trial Attorneys Melanie A. Smith and Alexander R. Effendi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Texas Woman Pleads Guilty to Preparing False TaxRead the Press Release
WASHINGTON – A Greenville, Texas, resident pleaded guilty today to one count of aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney John R. Parker for the Northern District of Texas.
According to documents filed with the court, Lourdes Ramirez, 39, was a tax return preparer operating under the names TX ASAP Tax Services and Fiesta Tax Service in Greenville. Ramirez admitted that from at least 2011 through 2014, she willfully prepared and filed individual income tax returns for clients that reported materially false information, including false business income and losses, false credits and false deductions in order to produce fraudulently inflated refunds. Ramirez prepared approximately 1,163 tax returns and caused an intended tax loss to the United States of approximately $1,155,383.
Ramirez is scheduled to be sentenced on Dec. 21. She faces a statutory maximum sentence of three years in prison, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation and Trial Attorneys Melanie A. Smith and Alexander R. Effendi of the Tax Division, who are prosecuting this case with assistance from Assistant U.S. Attorney David Jarvis of the Northern District of Texas.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
# # #
Tampa Man Sentenced to More Than Eight Years for Role in Multiple Identity Theft and Credit Card Fraud ConspiraciesRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Yannier Arias to eight years and six months in federal prison for conspiracy, aggravated identity theft, and access device fraud. The Court also ordered him to forfeit $17,343.62, which is traceable to proceeds of the offenses. A federal jury found Arias guilty on April 21, 2016.
According to court documents, Arias first conspired with another Tampa man, Dariel Sardinas Lopez, to “skim” credit card numbers from identity theft victims at various gas stations in Hillsborough, Pinellas, and Sarasota counties; produce counterfeit credit cards encoded with that stolen account information; and then use those counterfeit cards to make thousands of dollars of fraudulent purchases in Florida and Michigan. After Lopez was arrested, Arias entered a second conspiracy with Jose Ojeda Vera, another Tampa man. It again involved the use of counterfeit cards encoded with the account information of identity theft victims to make similar purchases, including at luxury retailers such as Versace, Armani, and Louis Vuitton. All of the victims still had their cards in their possession when they learned that their accounts had been unlawfully used.
Sardinas Lopez previously pleaded guilty and was sentenced in July 2015 to four years in federal prison. Ojeda Vera has been charged for his role in the case and is currently a fugitive.
This case was investigated by the United States Secret Service, the Florida Department of Law Enforcement, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Eric Gerard.
Stockton Man Pleads Guilty to Staging Car Accidents in a Scheme to Defraud Insurance CompaniesRead the Press Release
FRESNO, Calif. — Cristopher Santiago Sanchez-Becerra, 32, of Stockton, pleaded guilty today to conspiracy to commit mail fraud and admitted that he staged car accidents in a scheme to defraud insurance companies, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from at least October 2011 until August 2014, Sanchez-Becerra conspired with at least six other individuals to stage dozens of car accidents and submit false claims seeking compensation for the damage caused by the staged accidents. Commonly, the defendants would also offer to repair the recruited individual’s vehicle at automobile repair shops that Sanchez-Becerra or a co-defendant owned, usually with less-than-complete repair work, for a fee less than the payment from an insurance company. In all, Sanchez-Becerra caused at least $210,000 in false insurance claims to be paid as a result of the conspiracy to defraud.
In each staged accident, Sanchez-Becerra and other defendants utilized two or three vehicles and caused about $5,000 to $10,000 in damage to each vehicle. After each staged collision, the defendants submitted a similar cover story to an insurer that concealed the true cause of the accident. The cover story would commonly use aliases, false identities, and false addresses when describing the defendants. The defendants also commonly used different vehicles in the staged collisions. They were able to do this by obtaining many different vehicles and using false identities to both register the vehicles with the Department of Motor Vehicles and obtain insurance policies for the vehicles. The defendants operated in this manner to avoid scrutiny by an insurer that reviewed the false claims regarding a staged accident.
The indictment further alleges that Sanchez-Becerra and other defendants were able to repeat the scheme in dozens of crashes by recruiting other individuals to participate in the staged collisions. These individuals would allow their vehicles to be damaged and submit their own claim for damages. In many instances, false claims were submitted to the recruited individual’s insurance company.
“Fraud schemes like the one uncovered in this case are growing at an alarming rate, and unfortunately it’s consumers who ultimately pay the price,” said Ryan Spradlin, special agent in charge for HSI San Francisco. “As this probe makes clear, HSI is committed to working with its law enforcement partners to target those who seek to game the system for their own enrichment and ensure they’re held accountable for their crimes.”
“California is ground zero for auto insurance fraud,” said Insurance Commissioner Dave Jones. “Sanchez-Becerra's million-dollar conspiracy to rip-off insurers victimizes California consumers who end up paying for auto fraud losses through higher insurance premiums.”
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Insurance, Fraud Division. Assistant United States Attorneys Patrick R. Delahunty and Henry Z. Carbajal III are prosecuting the case.
Sanchez-Becerra is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on November 28, 2016. Sanchez-Becerra faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against co-defendants Juan Ortiz Rivas, 39, of Ceres; Oscar Diaz Landa, 46, of San Jose; Victor Hugo Soriano-Villafan, 26, of Modesto; Liobigildo Vargas, 46, of Turlock; Juan Marquez Cadenas, 30, of Patterson; and Alfonso Apu, 47, of Modesto. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.