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Wednesday 13 July 2016
Minnesota-Based Hospice Provider to Pay $18 Million for Alleged False Claims to Medicare for Patients Who Were Not Terminally IllRead the Press Release
Evercare Hospice and Palliative Care will pay $18 million to resolve False Claims Act allegations that it claimed Medicare reimbursement for hospice care for patients who were not eligible for such care because they were not terminally ill, the Justice Department announced today. Evercare, now known as Optum Palliative and Hospice Care, is a Minnesota-based provider of hospice care in Arizona, Colorado and other states across the United States.
Hospice care is special end-of-life care for terminally ill patients intended to comfort the dying. When a terminally ill Medicare patient elects hospice, Medicare no longer covers traditional medical care designed to improve or heal the patient. Only Medicare patients who have a life expectancy of six months or less are considered terminally ill and eligible for the Medicare hospice benefit.
“Today’s settlement reflects the Justice Department’s continuing efforts to combat health care fraud and protect the nation’s elderly and most vulnerable citizens,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Our seniors rely on the hospice program to provide them with quality care, dignity and respect when they are terminally ill and need end-of-life care. It is, therefore, critically important that we hold accountable those hospice providers that bill for medically unnecessary services in order to get higher reimbursements from the Medicare program. Such abuses threaten a vulnerable population and jeopardize this important benefit for others under the program. The Justice Department will continue to protect taxpayer dollars and ensure that this critical benefit is available for Medicare patients who truly need it.”
This settlement resolves a lawsuit brought by the government alleging that Evercare knowingly submitted or caused to be submitted false claims to Medicare for hospice care from Jan. 1, 2007, through Dec. 31, 2013, for Medicare patients who were not eligible for the Medicare hospice benefit because Evercare’s medical records did not support that they were terminally ill. The government’s complaint alleged that Evercare’s business practices were designed to maximize the number of patients for whom it could bill Medicare without regard to whether the patients were eligible for and needed hospice. These business practices allegedly included discouraging doctors from recommending that ineligible patients be discharged from hospice and failing to ensure that nurses accurately and completely documented patients’ conditions in the medical records.
The allegations resolved by this settlement arose from whistleblower lawsuits initially filed by former employees of Evercare under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The Act allows the United States to intervene in the lawsuits, which it did in this case. The share to be awarded in this case has not yet been determined.
“The decision to put someone into hospice care is an emotionally wrenching one for the patient and the patient’s family,” said U.S. Attorney John Walsh for the District of Colorado. “When hospice companies exploit and overbill Medicare by having people in hospice when they do not belong there, it jeopardizes this important benefit for others. We will not tolerate such conduct. The District of Colorado and the Department of Justice’s Civil Fraud Section deserve substantial credit for achieving this result in this Evercare Hospice case.”
“Hospice care is only medically necessary and reimbursable by Medicare for terminally ill patients with a life expectancy of six months or less,” said Special Agent in Charge Steven Hanson of the Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “We will continue to vigorously investigate health care companies that put their own profits above the medical needs of patients to ensure that companies bill Medicare only for reimbursable health care services.”
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 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement is the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Colorado and HHS-OIG.
The lawsuits resolved by this settlement, which were consolidated in the District of Colorado, are captioned United States ex rel. Fowler and Towl v. Evercare Hospice, Inc., et al., No. 11-cv-00642 (D. Colo.) and United States ex rel. Rice v. Evercare Hospice, Inc., No. 14-cv-01647 (D. Colo.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Mexican National Sentenced for Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MEINARDO ALONSO-CASTILLO, age 30, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Bill of Information for the unlawful transfer of identification documents.
U.S. District Judge Martin L.C. Feldman sentenced ALONSO-CASTILLO to 10 months imprisonment followed by 1 year of supervised release, a $5,000 fine, and a $100 special assessment.
According to court documents, from on or about September 10, 2015, through December 9, 2015, ALONSO-CASTILLO sold altered identification documents, including Social Security cards, with the intent that the recipient could use the documents to gain employment unlawfully.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Mexican National Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Diego Mauricio Curiel-Cervantes, 22, a Mexican national, entered a guilty plea today to a heroin trafficking charge in federal court in Albuquerque, N.M.
Curiel-Cervantes was arrested on April 8, 2016, after DEA agents found 1.30 gross kilograms (2.6 pounds) of heroin and 3.45 gross kilograms (7.59 pounds) of cocaine concealed in his luggage at the Greyhound Bus Station in Albuquerque. Curiel-Cervantes subsequently was indicted and charged with possession of heroin and cocaine with intent to distribute.
During today’s change of plea hearing, Curiel-Cervantes entered a guilty plea to a felony information charging him with possession of heroin with intent to distribute. In his plea agreement, Curiel-Cervantes admitted that he unlawfully possessed heroin in Bernalillo County, N.M., on April 8, 2016. Law enforcement officers found the heroin, which was concealed in Curiel-Cervantes’ suitcase in a luggage compartment of a Greyhound Bus, during a consensual search.
Curiel-Cervantes has been in federal custody since his arrest and remains detained pending a sentencing hearing, which has yet to be scheduled. At sentencing, he faces a statutory maximum sentence of 20 years in prison. He will be deported after completing his prison sentence.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with DEA, Bernalillo County, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Mexican National Found Guilty of Drug TraffickingRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Telesforo Lozano, 60, of Torreon, Mexico, was found guilty today of two federal drug charges. Following a two-day trial, Lozano was found guilty by a federal jury of one count of conspiring to distribute cocaine and one count of possession with intent to distribute cocaine. Senior U.S. District Judge Callie V. S. Granade presided over the trial. The jury heard evidence that Lozano was acting as a drug courier for a Mexican drug cartel and was hired to transport drugs from Mexico to Atlanta, Georgia. On August 21, 2015, Lozano drove across the border from Juarez, Mexico into El Paso, Texas with 4.34 kilograms of cocaine concealed in a hidden compartment inside a black Ford F-150 truck. On August 23, 2015, Lozano was pulled over for a routine traffic violation on I-10 East in Mobile County, Alabama by an Alabama State Trooper. A subsequent search of Lozano’s truck led to law enforcement’s seizure of the concealed cocaine, which had a retail value of approximately $500,000.
Lozano’s sentencing date is October 12, 2016. He faces up to 40 years of imprisonment as to each count of conviction.
The case was investigated by the Drug Enforcement Administration, the U.S. Customs and Border Protection, and the Alabama Law Enforcement Agency. The case was prosecuted by Assistant United States Attorneys George May and Sinan Kalayoglu.
Memphis Man Sentenced for Distributing Child PornographyRead the Press Release
Memphis, TN – A Memphis man has been sentenced to federal prison for distributing multiple images and videos of child pornography. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Julius Ford, 26, of Memphis, Tennessee, sent images and videos of children engaged in sexual conduct to others.
On September 4, 2014, Homeland Security Investigations (HSI) agents in Memphis received an investigative lead about an individual in the Memphis area using a flagged email account to send and receive emails containing child exploitation material. The investigation revealed that the IP address and login activity associated with the email account was registered to Ford at a residence in the Frayser area of Memphis.
On September 22, a covert investigator with the Memphis Child Exploitation Task Force contacted the flagged email account, which resulted in a series of emails sent from the account to the covert investigator. The emails contained child exploitation material, including videos depicting prepubescent children engaged in sexual acts with other minors and adults.
Law enforcement executed a search warrant at Ford’s residence on February 2, 2015. Agents seized a hard drive, two laptops, an iPhone, and a thumb drive. In total, forensic examinations conducted on these devices revealed that Ford possessed approximately 555 video files and 2,865 image files depicting sexually explicit conduct involving minors. Ford later admitted to being the user of the mail account and that he had used the account to trade child pornography. The defendant also admitted to sending emails from the account containing videos of child pornography to the covert investigator.
Ford served in the United States Army from 2008 to 2012. During the time of his criminal activity, Ford was active in the Army Reserves.
In March 2016, Ford pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to one count of distribution of child pornography.
On Wednesday, July 13, 2016, Ford was sentenced by Judge Fowlkes to 97 months in prison and 10 years of supervised release.
The case was investigated by the Memphis Child Exploitation Task Force. The collective is comprised of federal and local law enforcement agencies, including the Federal Bureau of Investigation; HSI; Shelby County Sheriff’s Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the U.S. Secret Service.
Assistant U.S. Attorney Kasey Weiland prosecuted this case on the government’s behalf.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Member of the Rompe Onu Sentenced to Life in Prison for Violating the Rico Act in Puerto Rico, Drug Charges and Violent ActsRead the Press Release
SAN JUAN, Puerto Rico– Pedro Vigio-Aponte, a/k/a “Pedrito/Pedrito He-Man/Pello/Pedrito Trauma” was sentenced to be in prison for the remainder of his natural life by the Honorable Judge Francisco A. Besosa for his participation in drug trafficking and violent acts, including a drive-by shooting murder, announced United States Attorney, Rosa Emilia Rodríguez-Vélez. After a nine-day jury trial that concluded on December 18, 2016, Vigio-Aponte was found guilty of a RICO conspiracy, a drug conspiracy, possession of a firearm in furtherance of drug trafficking, a drive-by shooting murder, and using and carrying a firearm during and in relation to a crime of violence to cause the death of three persons.
At trial, the United States presented numerous witnesses to establish Vigio-Aponte’s participation in drug trafficking and murder in furtherance of a criminal organization known as “La Rompe ONU.” Through its criminal activities “La Rompe ONU” enriched its members and maintained and increased the power of the organization. Members of “La Rompe ONU” would sell crack, cocaine, heroin, and marihuana in public housing projects, including: Jardines del Paraíso, Villa Andalucía, Alturas de Cupey, Jardines de Cupey, Brisas de Cupey, Los Claveles, Nuestra Señora de Covodonga, Los Lirios, Jardines de Monte Hatillo, Jardines de Campo Rico, Jardines de Berwind, San Martín, Monte Park, and Villa Lomas Verdes Public Housing Projects; as well as El Polvorín Ward, Mango Sector and other surrounding areas within the municipalities of San Juan, Trujillo Alto and Carolina, PR. Moreover, members of the organization used violence and intimidation, including murder, to increase the power, territory, and profits of “La Rompe ONU.” At trial, the United States presented evidence of Vigio-Aponte and other member’s participation in various murders, including the Los Paseos Massacre for which the jury found Vigio-Aponte guilty.
In the Los Paseos Massacre, members of La Rompe ONU murdered Santos Diaz-Camacho, a/k/a “Joel Bazooka” and his two body guards, Kevin Soto-Roman, a/k/a “El Gordo” and Juan Rosario-Mercado, a/k/a “Toñito” because Diaz-Camacho, who was a leader of La Rompe ONU, had allied himself with a rival drug trafficking organization. Because of this, the main leader of La Rompe ONU ordered his murder. On July 20, 2011, Vigio-Aponte and other members of La Rompe ONU drove in three separate vehicles to commit this murder. A member of La Rompe ONU provided the group with the location of Diaz-Camacho and informed them that he was driving a car and had an escort following him in another vehicle. When Diaz-Camacho stopped at a red light near Los Paseos Shopping Center in San Juan, Puerto Rico, Members of La Rompe ONU were ordered to take the lead and shoot Diaz-Camacho. Members of La Rompe ONU then fired at Diaz-Camacho’s vehicle and killed him. Vigio-Aponte and other members of La Rompe ONU shot and killed Diaz-Camacho’s bodyguards, Soto-Roman and Rosario-Mercado, who were escorting Diaz-Camacho using another vehicle.
Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández were in charge of the prosecution of the case.
McComb Doctor Pleads Guilty to Federal IndictmentRead the Press Release
Natchez, Miss - Dr. Lawrence Edsel Stewart, 59, of McComb, Mississippi, pled guilty today, before Senior U.S. District Judge David C. Bramlette III, to distributing and dispensing a schedule IV controlled substance outside the scope of professional practice, announced U.S. Attorney Gregory K. Davis and Assistant Special Agent in Charge Daniel Comeaux with the Drug Enforcement Administration - New Orleans Field Division.
Stewart will be sentenced by Senior U.S. District Judge David C. Bramlette III on September 27, 2016 and faces a maximum sentence of five years in federal prison and a $250,000 fine.
This case was investigated by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Mississippi Medical Board, and Mississippi Board of Nursing. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
Manhattan U.S. Attorney Settles Civil Fraud Lawsuit Against Clothing Importer and Manufacturers for Evading Customs DutiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), and Robert E. Perez, Director of the New York Field Operations for U.S. Customs and Border Protection (“CBP”), announced a $13.375 million settlement of a civil fraud lawsuit against MOTIVES, INCORPORATED, an importer of clothing, and MOTIVES FAR EAST and MOTIVES CHINA LIMITED, foreign manufacturers of clothing (collectively “MOTIVES”), for engaging in a double invoicing scheme to defraud the United States out of millions of dollars in customs duties. In the settlement, approved yesterday in Manhattan federal court by U.S. District Judge George B. Daniels, MOTIVES admitted to and accepted responsibility for under-reporting the value of its imported merchandise and agreed to pay $13.375 million to the United States under the False Claims Act.
Manhattan U.S. Attorney Preet Bharara said: “Motives evaded millions in customs duties by presenting false invoices to U.S. Customs and Border Protection. With this lawsuit and the accompanying resolution, which involves admissions and the payment of over $13 million, Motives is being held to account for its unlawful evasion of customs duties.”
ICE HSI Special Agent-in-Charge Angel M. Melendez said: “Motives disguised the true value of goods imported into the United States to cheat the government out of millions of dollars in customs duties. This scheme backfired, now Motives will pay millions for trying to skirt America’s customs laws. Trade fraud threatens the U.S. economy and restricts competitiveness of U.S. industry in the world markets. HSI and CBP maintain a zero-tolerance policy when it comes to these types of predatory and unfair trade practices.”
CBP Director of New York Field Operations Robert E. Perez said: “CBP takes trade fraud, such as undervaluation, very seriously. We are proud to partner with HSI and the Southern District to level the playing field for legitimate traders by steadfastly enforcing US trade laws.”
The Government’s complaint, filed in Manhattan federal court, alleges that from approximately 2009 through 2013, MOTIVES, which regularly manufactured and/or imported apparel into the United States, conspired with clothing wholesalers fraudulently to underpay customs duties owed to the Government by making false representations in entry documents filed with CBP about the value of the imported merchandise. Pursuant to the scheme, MOTIVES created and/or used two sets of invoices: one that undervalued the garments and was presented to the Government for calculation of the appropriate duty, and the second that reflected the actual value of the garments. MOTIVES presented to the Government invoices with the lower value on the entry forms, thereby defrauding the Government of millions of dollars in customs duties.
As part of the settlement, MOTIVES admitted, acknowledged, and accepted responsibility for engaging in the following conduct from 2009-2013:
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repeatedly preparing and presenting to the Government commercial invoices for apparel being imported into the United States that reported less than the total value of the goods imported;
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repeatedly representing to the Government that its documentation contained, to the best of MOTIVES’ knowledge, correct and true information such as prices, values, and quantities;
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repeatedly receiving from apparel wholesalers an amount in excess of that recorded on the commercial invoices; and
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repeatedly failing to disclose to the Government the separate invoices reflecting the true value of the apparel, and instead reporting only the lesser amounts listed in the commercial invoices, which the Government then used to assess customs duties.
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by a whistle-blower who filed a lawsuit under the False Claims Act.
Mr. Bharara praised the investigative work of the ICE HSI on this case. He also thanked U.S. Customs and Border Protection for their assistance.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorneys Jamie L. Nawaday and Kirti Vaidya Reddy are in charge of the case.
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Longtime fugitive Eric Bartoli pleads guilty to stealing $65 million from hundreds of peopleRead the Press Release
Eric V. Bartoli, who was indicted in 2003 and was a fugitive for more than a decade, pleaded guilty to defrauding hundreds of investors out of millions of dollars in the 1990s, law enforcement officials said.
Bartoli, 61, is scheduled to be sentenced Nov. 9 after pleading guilty to eight counts, including conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud and attempted income tax evasion.
The guilty plea was announced by Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the FBI, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Bartoli operated a large-scale Ponzi scheme from 1995 through 1999. He created and operated a company by the name of Cyprus Funds, Inc., which was based in Doylestown, Ohio and incorporated in Central America. Bartoli and his co-conspirators operated Cyprus to sell certificates of deposit and unregistered mutual funds. Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States. Some of Cyprus’s victims included retirees, according to court records.
Bartoli was sued in 1999 by the Securities and Exchange Commission on charges involving the Cyprus Funds, Inc. Bartoli did not appear at a scheduled hearing regarding the SEC charges. He was subsequently found in contempt of court and a civil arrest warrant was issued. Bartoli had fled Ohio and was arrested in New Hampshire. Bartoli was not detained at that time and became a fugitive.
An indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio in October 2003.
Bartoli was taken into custody by the Peruvian National Police in Lima, Peru, in 2013. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police. He was returned to the United States last year.
“Mr. Bartoli is finally being held accountable for his crimes, more than two decades after he started stealing millions of dollars,” Rendon said. “The fact that he will finally be sentenced for his actions is a tribute to all who have worked on this case, who never stopped pursuing justice for the victims.”
“After years of living on the run, Mr. Bartoli is accepting responsibility for swindling individuals out of large sums of money - some their entire life savings,” Anthony said. “The FBI will continue to investigate fraudsters, like Eric Bartoli, and will hold them accountable for their criminal behavior, no matter how long it takes.”
“The investigation of Mr. Bartoli uncovered a multi-million dollar Ponzi scheme laced with a web of financial lies that left 800 investors in financial peril,” Entstrom said. “When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime. Combining the financial investigative expertise of the IRS with the skills and resources of the FBI and the U.S. Attorney’s Office makes a formidable team for combating major, greed-driven crimes.”
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Christos M. Georgalis following an investigation by the Federal Bureau of Investigation, Internal Revenue Service and the Securities and Exchange Commission.
Logan man charged with defrauding people through investment scheme involving racehorsesRead the Press Release
A Logan man was charged in federal court with stealing more than $308,000 from investors through a fraudulent horseracing venture and using the money to buy expensive clothes, vehicles and pay for gambling expenses, law enforcement officials said.
The charges were announced by U.S. Attorney Carole Rendon, Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Cincinnati Field office, and Craig Wisniewsky, Special Agent in Charge of the Secret Service’s Cleveland office.
Jonathan Pippin, 29, was charged via criminal information with two counts of wire fraud and one count of money laundering.
Pippin created PJH Horse Racing, Inc. in 2011. The company was headquartered in Cleveland and purported to be in the business of purchasing race horses. Pippin had sole control over the company and its various bank accounts, according to the information.
Pippin solicited investors to his company under false pretenses. He told potential investors that they were investing in a venture with a wealthy businessman and widely-known horse racing figure – identified in the charges only as M.R. – when in reality Pippin did not know M.R.
Pippin falsely represented to investors that they would receive a percentage of the winnings of M.R.’s horses when he knew it was not true. He also told investors that he had stud rights to M.R.’s horses when he did not, according to the information.
Pippin used the investors’ money to enrich himself and pay personal expenses, such as the purchase of a Cadillac Escalade, tickets to sporting events, gambling expenses, rent and expensive clothing, according to the information.
Four investors lost a combined $308,305, according to the information.
“This defendant created a web of lies to pay for fancy cars, expensive clothes and gambling expenses,” Rendon said. “He defrauded investors to pay for a lifestyle he couldn’t afford. Now he’ll be held accountable for his actions.”
“Investment fraud schemes are often described as a house of cards,” Enstrom said. “In this case, when the dust settled, the underlying structure fell apart and exposed the individual responsible."
“This case is another example of the success of the task force concept where multiple federal agencies bring expertise to an investigation resulting in a successful conviction,” Wisniewsky said.
This case is being prosecuted by Assistant U.S. Attorney Christos M. Georgalis following an investigation by the IRS-CI and United States Secret Service.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lincoln County man pleads guilty to obtaining pain pills by fraudRead the Press Release
CHARLESTON, W.Va. – A Lincoln County man pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Aaron Hatfield, 37, of Harts, entered his guilty plea to obtaining controlled substances by fraud and misrepresentation.
Hatfield admitted that on January 6, 2016, he acquired a family member’s key to Chapmanville Pharmacy through misrepresentation and entered the building after normal business hours. Once inside, he obtained oxycodone, Xanax, and morphine pills. Hatfield moved pill bottles around in an effort to avoid detection, though he was recorded by the pharmacy’s video surveillance. He further admitted to obtaining 130 oxycodone pills, 50 Xanax pills, and eight 100 mg morphine pills. He also admitted that he did not have a valid prescription nor the authority to enter the pharmacy and obtain the pills.
Hatfield faces up to four years in federal prison when he is sentenced on October 11, 2016.
The Drug Enforcement Administration and the Logan County Sheriff’s Office conducted the investigation. Assistant United States Attorney John J. Frail is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Justice Department Requires Divestitures in Huntington Bancshares Incorporated’s Acquisition of FirstMerit CorporationRead the Press Release
Thirteen Branches in Northeast Ohio to Be Divested
The Department of Justice announced today that Huntington Bancshares Incorporated and FirstMerit Corporation have agreed to sell 13 branches in Northeast Ohio, with approximately $737.8 million in deposits, to resolve antitrust concerns that arose from Huntington’s planned acquisition of FirstMerit. As a result of the acquisition, Huntington will become the largest bank in Ohio based on deposits.
Under their agreement with the department, the companies have agreed to divest two branches in Ashtabula County and 11 branches in Stark County, Ohio. The divested assets will include the deposits and loans associated with the divested branches. The companies have also agreed to suspend existing, and not to enter into new, non-compete agreements with their branch managers and loan officers located in Ashtabula County and Stark County, Ohio, for a period of 180 days following the consummation of their merger. Further, the companies have agreed to sell or lease branches closed within two years of the consummation of the merger in Ashtabula County or Stark County, Ohio, to FDIC-insured depository institutions offering deposit and credit services to small businesses.
“Families and small businesses rely on banks in their communities to keep their money safe and provide them credit for important purchases and investments,” said Principal Deputy Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Today’s settlement protects banking customers in Ashtabula County and the Greater Canton area by ensuring that they continue to have access to competitively priced banking products.”
The proposed merger is subject to the final approval of the Board of Governors of the Federal Reserve System. The department said that it will advise the Federal Reserve Board that it will not challenge the merger provided that: the parties divest the branch offices, associated loans and deposits and the entire customer relationships associated with the divestiture branches; the parties commit to the Federal Reserve Board that they will comply with the agreement with the department; and the parties’ commitments to the department are included as a condition to any order the Federal Reserve Board enters allowing the transaction.
Huntington is the holding company of The Huntington National Bank, Columbus, Ohio, with approximately $73 billion in assets. Huntington operates more than 750 branches and 1,500 ATMs in Ohio, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. Huntington specializes in full-service commercial, small business, and consumer banking services, as well as services ranging from mortgage banking to equipment leasing.
FirstMerit is the holding company of FirstMerit Bank, N.A., Akron, Ohio, with approximately $26.1 billion in assets. With about 370 branches and 400 ATMs in Ohio, Illinois, Michigan, Pennsylvania and Wisconsin, FirstMerit provides a large range of banking and other financial services to consumers and businesses.
A list of the branches to be divested is attached.
Attachment A - Huntington FirstMerit Branches to be Divested
Jury Convicts Jefferson City Man of Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., man has been convicted at trial of possessing and receiving child pornography over the Internet.
Ryan Michael Moberg, 37, of Jefferson City, was found guilty on Tuesday, July 12, 2016, of the charges contained in a June 15, 2015, federal indictment.
Evidence introduced during the trial indicated that Moberg utilized a peer-to-peer file-sharing program to access child pornography over the Internet. In November 2012, a Boone County, Mo., Sheriff’s Department detective identified Moberg’s computer as sharing files online. One of the video files on Moberg’s computer depicted a young girl engaged in sexual activity with a dog.
Law enforcement officers executed a search warrant at Moberg’s residence in April 2013 and seized an Acer tower computer. Moberg was not home at the time the warrant was executed; investigators went to his workplace and interviewed him. Moberg admitted to investigators that he searched for child pornography online and downloaded it to his computer.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about two and a half hours before returning the guilty verdicts to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, July 11, 2016.
Under federal statutes, Moberg is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Boone County, Mo., Sheriff’s Department and the Jefferson City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Investment Advisor Pleads Guilty to Defrauding Investors of More Than $1.2 MillionRead the Press Release
The United States Attorney’s Office for the District of Minnesota announced the guilty plea of DAVID BLAINE WELLIVER, 56, for defrauding investors in the Dblaine Fund, a mutual fund for which WELLIVER acted as investment adviser, of at least $1.2 million. WELLIVER pleaded guilty to one count of securities fraud today before Senior U.S. District Judge Paul A. Magnuson.in U.S. District Court in St. Paul, Minn.
“Today's guilty plea demonstrates how federal law enforcement works together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain,” said Special Agent in Charge Shea Jones of IRS Criminal Investigation. “IRS Criminal investigators will continue to use their financial expertise to identify these types of investor fraud schemes.”
According to the defendant’s guilty plea, WELLIVER was the CEO and CIO of Dblaine Capital, LLC, an investment advisory company he founded in Buffalo, Minn. In September 2010, WELLIVER negotiated an agreement with Lazy Deuce Capital Company, LLC (Lazy Deuce), to purportedly finance the merger between Dblaine Capital and other mutual funds.
According to the defendant’s guilty plea, WELLIVER, in 27 separate transactions between October 2010 and May 2011, borrowed a total of $4 million from Lazy Deuce. Aside from a $95,000 payment to acquire the assets of a mutual fund, WELLIVER did not use any of the other proceeds of the Lazy Deuce loans to acquire mutual funds as he had represented to Lazy Deuce. Instead, WELLIVER diverted over $500,000 in proceeds from the Lazy Deuce loans to his own personal use, including for landscaping and interior decorating at his personal residence, to purchase land adjacent to his personal residence, to buy a personal vehicle, and to pay for his son’s college tuition.
According to the defendant’s guilty plea, between December 16, 2010, and April 15, 2011, WELLIVER caused $1.725 million in Dblaine Fund investors’ money to be invested in a shell company formed by several Lazy Deuce principals, called Semita Partners LLC (Semita). At the time WELLIVER made the investments in Semita, he knew that Semita was a shell company formed by principals of Lazy Deuce – the same company from which Dblaine Capital had borrowed money – and that Semita had no operations. On December 31, 2010, in order to meet a series of redemptions in the Dblaine Fund, WELLIVER liquidated nearly all of the stocks held by the Dblaine Fund. Following this liquidation, the Dblaine Fund’s only holdings consisted of worthless Semita shares and cash held in a money market account.
As a result of WELLIVER’s fraud scheme, Dblaine Fund investors lost more than $1.2 million.
This case is the result of an investigation conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Kimberly A. Svendsen and Benjamin F. Langner.
Defendant Information:DAVID BLAINE WELLIVER, 56
Buffalo, Minn.Convicted:
• Securities fraud, 1 countHigh-Frequency Trader Sentenced to Three Years in Prison for Disrupting Futures Market in First Federal Prosecution of "Spoofing"Read the Press Release
CHICAGO — In the first federal prosecution of its kind, a high-frequency trader was sentenced today to three years in prison for disrupting commodity futures prices in a $1.4 million fraud scheme.
MICHAEL COSCIA, 54, used an automated trading technique known as “spoofing” to earn illegal profits from orders he placed through Chicago-based CME Group and London-based ICE Futures Europe. Coscia commissioned the design of computer programs, known as algorithms, to implement the fraudulent strategy at his New Jersey trading firm.
A federal jury in Chicago last year convicted Coscia, of Rumson, N.J., on six counts of commodities fraud and six counts of spoofing. U.S. District Judge Harry D. Leinenweber imposed the 36-month sentence in federal court in Chicago.
“Traders contemplating sophisticated scams will think twice if they know that there are more significant consequences than a civil lawsuit or a regulatory action,” Assistant U.S. Attorney Sunil Harjani argued in recommending a term of imprisonment in the government’s sentencing memorandum. “Hedge funds and proprietary trading firms will closely review their trades, and strike down get-rich-quick manipulation trading schemes because the cost is not worth the benefit.”
The indictment against Coscia marked the first federal prosecution under the anti-spoofing provision enacted in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. The case was prosecuted by the Securities and Commodities Fraud Section of the U.S. Attorney’s Office in Chicago. The section, which was created in 2014 by United States Attorney Zachary T. Fardon, is dedicated to protecting markets and preserving investors’ confidence.
Mr. Fardon announced the sentence along with Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
High-frequency trading is a form of automated trading that uses algorithms for placing a high volume of orders in milliseconds. It is illegal for traders to engage in spoofing, which involves placing “bids” to buy or “offers” to sell a futures contract with the intent to cancel the bid or the offer before execution.
Evidence at Coscia’s seven-day trial in November 2015 showed that he engaged in spoofing in the markets of various commodities, including gold, soybean meal, soybean oil, high-grade copper, Euro FX and Pounds FX currency futures. In less than three months in 2011, Coscia illegally profited nearly $1.4 million.
Hell’s Angels Member Sentenced to 25 Years in Prison for Methamphetamine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced that JAMES HENRY McAULEY, JR., 67, of Oakfield, New York, who previously pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine, was sentenced to 300 months in prison by U.S. District Judge Charles J. Siragusa. McAuley was also prohibited by Judge Siragusa from being a member of or
associating with the Hell’s Angels for five years after his release from prison.Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that from 2002 through July 9, 2010, McAuley – at the time, a member and Vice President of the Rochester Hell’s Angels – was the leader of a methamphetamine trafficking network operating in the Western District of New York. In 2002, McAuley located a source of methamphetamine supply in the Monterey, California area. McAuley and other members of the conspiracy traveled to California on numerous occasions to obtain pound-size quantities of methamphetamine from the supplier. The methamphetamine would then be transported or shipped from California to the Rochester area, where another member of the conspiracy would sell it to their customers.
In April 2007, McAuley was arrested on federal racketeering charges from the Northern District of New York. After his arrest and incarceration, McAuley continued to direct the methamphetamine trafficking operation. McAuley used another co-conspirator to arrange for obtaining quantities of methamphetamine from the Monterey, California- based source of supply. Other members of the conspiracy sold the methamphetamine to individuals in the Rochester area, Genesee County, and other locales. The conspiracy continued until July 2010. McAuley admitted to trafficking up to 15 kilograms (more than 30 pounds) of methamphetamine.
This case is part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Seven defendants were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. All of the defendants – McAuley, Richard W. Mar,
64, the President of the Monterey Hell’s Angels in California; Donna Boon, 50, McAuley’s wife, of Oakfield, New York; Rochester Hell’s Angels member Richard E. Riedman, 42, of Webster, New York; Gordon Montgomery, 57, of Batavia, New York; Rochester Hell’s Angels member Jeffrey A. Tyler, 51, of Rochester, New York; and Paul Griffin, 62, of Blasdell, New York – have pleaded guilty to drug trafficking offenses based on their roles in the methamphetamine conspiracy. Judge Siragusa sentenced Griffin to probation, Riedman to 37 months in prison, Montgomery to 60 months in prison, Tyler to 18 months in prison, and Boon to 3 years probation and 12 months of home incarceration. Mar is scheduled to be sentenced on August 16, 2016, in front of Judge Siragusa.Rochester Hell's Angels member Robert W. Moran, Jr. a/k/a Bugsy, 61, of Rochester, New York, pleaded guilty to conspiracy to commit assault with a dangerous weapon in aid of racketeering activity on February 24, 2016, and was sentenced to 18 months in prison. Gina Tata, 52, of Rochester, New York, pleaded guilty to being an accessory after the fact to the conspiracy to commit assault with a dangerous weapon in aid of racketeering activity, on February 24, 2016, and was sentenced to 3 years probation. Another defendant, Timothy M. Stone (age 36), of Gates, New York, pleaded guilty to being an accessory after the fact to the assault, and was sentenced on February 5,
2016, by Judge Siragusa to 12 months in prison.The plea was the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special-Agent-In-Charge Adam Cohen, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of James Hunt, the New York State Police, under the direction of Superintendent Joseph D’Amico, the City of Batavia Police Department, under the direction of Chief Shawn Heubusch, and the Village of LeRoy Police Department, under the direction of Chief Christopher Hayward.
Glen Carbon Man Sentenced for Armed RobberyRead the Press Release
The United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today that Jonathan Michael Malone, 53, of Glen Carbon, Illinois, was sentenced in the United States District Court in East Saint Louis, Illinois for armed robbery. Malone was charged with Interference of Commerce by Robbery, with Brandishing a Firearm During and In Relation to a Crime of Violence, and with Unlawful Possession of a Firearm by a Convicted Felon.
Malone admitted in open court, that on January 14, 2016, Malone robbed the One Stop Shop Gas Station in Maryville, Illinois. During the robbery, Malone brandished a handgun at the owner. Furthermore, Malone possessed the handgun unlawfully after having been previously convicted of armed robbery.
On July 12, 2016, the district court sentenced Malone to a total of 108 months in federal prison. The court also ordered Malone to serve three years of supervised release, to pay to fine of $300, and pay restitution to the shop owner in the amount of $102.25.
The case was investigated by the Glen Carbon Police Department, the Maryville Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Georgia Resident Convicted in the Southern District of Florida of Threatening Several Palm Beach County LocationsRead the Press Release
Preston Alexander McWaters, 25 of Athens, Georgia, pled guilty today before United States District Judge James I. Cohn, in Fort Lauderdale, Florida, to four counts of transmitting a threat in interstate commerce to injure another person, in violation of Title 18, United States Code, Section 875(c), and two counts of conveying false and misleading information indicating that a bombing of a place of public use would take place, in violation of Title 18, United States Code, Section 1038(a)(1)(A) and (c).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Lawrence Leon, Chief, Palm Beach County School District Police Department, made the announcement.
McWaters faces a statutory maximum of five years’ imprisonment on each count to which he pled guilty. He is scheduled to be sentenced before Judge Cohn on September 23, 2016.
According to the factual proffer accompanying his plea, McWaters, over the course of several months in late 2015 and early 2016, sent numerous e-mails and other communications threatening to bomb various locations in Palm Beach County, including schools, a hospital, a business and the Palm Beach International Airport. McWaters also posted a number of threats to injure a woman who had previously obtained a protective order against him as well as to injure the family of a high school principal in Palm Beach County. McWaters used tools to prevent law enforcement from tracing the online threats back to him, and exerted substantial effort to implicate a romantic rival and, later, his rival’s then-girlfriend in an attempt to conceal his identity. The FBI ultimately was able to trace the threats back to McWaters, who was arrested in March 2016.
“Bomb threats present significant safety and security issues to both law enforcement and the general public,” said U.S. Attorney Wifredo A. Ferrer. “The U.S. Attorney’s Office and our law enforcement allies will take all necessary steps to ensure that people who use the internet or other means to threaten the physical structure of buildings or well-being of the American people will face serious consequences.”
“Threats like these bomb scares by Mr. McWater are serious crimes and warrant a serious response,” said George L. Piro, Special Agent in Charge, FBI Miami. "They frighten innocent people and waste valuable law enforcement resources, which could be better spent responding to actual crimes. These type of threats will be investigated thoroughly and vigorously by the FBI and our partners.”
Palm Beach County School District Police Chief Lawrence Leon stated, “I am truly appreciative of the partnership and assistance given to the Palm Beach County School District Police by the Federal Bureau of Investigations and the U.S Attorney’s Office in this successful prosecution of this case. All threats to our schools, students, and staff are taken seriously and the Palm Beach County School District Police will take the appropriate actions to ensure that we are safe.”
Mr. Ferrer commended the outstanding investigative efforts of the FBI, Palm Beach County School District Police Department and the Jupiter Police Department. Mr. Ferrer also thanked the myriad of law enforcement partners in Florida and Georgia, including the Palm Beach County Sheriff's Office, the Palm Beach County State Attorney's Office, the Jupiter Police Department, the West Palm Beach Police Department, the University of Georgia Police Department, the Clarke County Georgia Police Department, and the United States Attorney's Office for the Middle District of Georgia, for their assistance. The case is being prosecuted by Assistant U.S. Attorneys Edward Nucci, Karen Gilbert, and Adam Fels.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Fort Worth Man Admits to Kidnapping and Enticing Two Teenage Girls to Engage in Sexual ActivityRead the Press Release
ABILENE — A Fort Worth, Texas, man, Robert Harris, 50, appeared this morning before U.S. Magistrate Judge E. Scott Frost and pleaded guilty to an indictment charging one count of enticement of a minor and aiding and abetting, announced John Parker, United States Attorney for the Northern District of Texas.
Harris faces a statutory penalty of not less than 10 years and not more than life in federal prison. Each count also carries up to a $250,000 fine and up to a lifetime of supervised release. Harris has been in custody since his arrest in January 2016. Sentencing will be set at a later date.
According to documents filed in the case, beginning in December 2015, Harris engaged in a relationship with a minor, Jane Doe 1 using Skout, an online dating application. Harris persuaded, induced, and enticed Jane Doe 1 and another 13-year-old female, Jane Doe 2 to engage in sexual activity.
On January 2, 2016 Harris acknowledged in a message that he knew both girls were “underage and I could get in really big trouble and that would ruin my life.” In the early morning hours of January 2, 2016 Harris traveled to Abilene and picked up the two 13-year-old females and transported them to his residence in Fort Worth to engage in sexual activity. The two juvenile females were recovered by law enforcement at Harris’ residence on January 9, 2016 after Harris had called the Fort Worth police.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), San Angelo Police Department, Abilene Police Department and Fort Worth Police Department are conducting the investigation. Assistant U.S. Attorney Juanita Fielden is in charge of the prosecution.
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Former Springfield Man Pleads Guilty, Sentenced for Defacing Islamic CenterRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Springfield, Mo., man has pleaded guilty and been sentenced in federal court for defacing The Islamic Center of Springfield with graffiti.
Joshua Daniel Lobsien, 24, of Orland, Calif., formerly of Springfield, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, July 12, 2016, to a federal information that charges him with defacing religious property.
The court sentenced Lobsien to five years of probation, including 20 hours of community service, and ordered him to pay $5,220 in restitution. If the Islamic Center of Springfield, or an Islamic Center located near Lobsien’s residence, is willing to have him perform his community service on its premises, then that is the location where Lobsien should perform his community service. Lobsien has personally apologized to the leadership of the Islamic Center of Springfield for his crime.
By pleading guilty, Lobsien admitted that he and Adam David Smock, 24, of Edgewater, Calif., formerly of Springfield, and a minor who was 14 years of age, spray painted graffiti on the exterior walls of the Islamic Center of Springfield on Jan. 7, 2011. The graffiti included explicit and offensive language in addition to such statements as “Queer insurrection,” “It’s okay to be gay!” “Bash Back,” “Now is our time!” and “You bash us in Pakistan we bash here.” Both Lobsien and Smock were 18 years old at the time of the offense.
The Islamic Center of Springfield, 2151 E. Division St., provides services common to most religious establishments, including regular prayer service, a venue for individuals to pray on their own, community activities and a forum for charitable fund-raising.
Lobsien also admitted that on April 10, 2011, they partially burned two copies of the Qur’an (the Muslim holy book) and transported the Qur’ans to the Islamic Center of Springfield. Smock left the burned Qur’ans directly in front of the main doors to the Islamic Center, approximately 30 feet away from the building. Lobsien left a computer-printed note on the mat in front of the main doors. The note contained the image of a goat’s or ram’s head, and the following text:
“To: Sincere Followers of Allah,
“Today, we show the Muslim Nation that its oppressive religion won't go without a fight, not from soldiers, but from average citizens willing to fight for America – for there are three (sic) burned Qur'ans that lay spread in the driveway. For we grow tired of Anti-Zionism. The Islamification of Europe. Terroristic regimes. And worst of all, the membership of 1.5 billion Muslims that stain the earth. And we vow one thing: Islam will not survive.
“Death to Islam!”
Smock pleaded guilty on Dec. 29, 2015, to participating in a conspiracy to oppress, threaten, and intimidate worshippers at the Islamic Center of Springfield in the free exercise and enjoyment of their Constitutional right to the free exercise of their religious beliefs. A sentencing hearing is scheduled on Aug. 18, 2016.
Smock admitted that it was his idea to commit the acts and that he persuaded his co-conspirators to participate. Smock admitted that he selected the Islamic Center of Springfield for vandalism because of the religious nature of the property, in order to threaten and intimidate worshippers, so as to hinder and interfere with the worshippers’ enjoyment of their Constitutional right to the free exercise of religion.
The total cost of restoration and repair of the damage to the Islamic Center of Springfield, including sandblasting and applying anti-graffiti paint, is $15,662
Under the terms of Smock’s plea agreement, a joint recommendation will be made to the court that Smock be incarcerated for 14 days, followed by a five-year term of supervised release; that Smock must pay $10,440 in restitution; and that Smock must perform 40 hours of community service. If the Islamic Center of Springfield, or an Islamic Center located near Smock’s residence, is willing to have him perform his community service on its premises, then that is the location where Smock should perform his community service. Smock must meet with and personally apologize to the leadership of the Islamic Center of Springfield for his crime.
These cases are being prosecuted by Assistant U.S. Attorney Randall D. Eggert. They were investigated by the FBI and the Springfield, Mo., Police Department.
Former Pike County Man Pleads Guilty to False Bankruptcy DeclarationsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Pike County resident has pleaded guilty to making false declarations and false oaths in bankruptcy proceedings.
According to United States Attorney Peter Smith, Daniel Wise, age 55, formerly of Tafton, Pennsylvania, currently residing in New York, NY, was indicted by a federal grand jury in October 2015 for concealing bankruptcy assets, false bankruptcy declarations, and false bankruptcy oaths.
Wise filed three bankruptcy petitions in the Middle District of Pennsylvania between August 14 and November 21, 2012. The October 14, 2015 Indictment alleged that Wise intentionally failed to reveal his ownership of a $2.4 million promissory note and that he was actively engaged in litigation over the note in New York, on disclosures that he was required to make in his bankruptcy petitions.
In a proceeding before U.S. District Court Judge James M. Munley in Scranton, Wise pleaded guilty today to making false bankruptcy declarations in connection with the bankruptcy petition Wise filed on November 21, 2012, and making false sworn declarations during a January 14, 2013, creditors’ meeting, pursuant to a plea agreement with the government.
At the time of Wise’s first bankruptcy filing, foreclosure proceedings had been initiated against Wise’s Tafton residence in the Pike County Court of Common Pleas. Wise’s bankruptcy filings resulted in automatic stays of all debt collection proceedings, including the mortgage foreclosure action. Wise’s bankruptcy petitions were eventually dismissed on March 13, 2013.
Wise could be sentenced to 5 years imprisonment and a $100,000 fine on each count. No date has been set for sentencing pending preparation of a pre-sentence report
The case was investigated by the Scranton Office of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Philadelphia Police Officer Pleads Guilty to ExtortionRead the Press Release
PHILADELPHIA - Thomas Vitanovitz, 32, of Philadelphia, PA, plead guilty today to extortion of an alleged drug dealer while working as a Philadelphia Police Officer, announced United States Attorney Zane David Memeger.
Vitanovotz while employed as a Philadelphia Police Officer assigned to the 24th District, seized 50 pills that Vitanovitz believed to be a controlled substance from an individual identified in the indictment as Person 1, under the color of official right.
Vitanovitz faces a statutory maximum sentence of 20 years in prison, a possible fine, supervised release, and a $100 special assessment. The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police
Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
Former Letter Carrier Sentenced to Federal Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced former U.S. Postal Service employee Linwood R. Nelson, Jr., age 32, of Baltimore, today to 30 months in prison, followed by three years of supervised release, for federal charges related to a conspiracy to possess with the intent to distribute heroin, and to diverting packages of drugs sent through the U.S. mail and delivering them to co-conspirators
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to Nelson’s plea agreement, he was a letter carrier employed by the United States Postal Service and assigned a delivery route in Woodstock, Maryland. From July 2014, through September 11, 2014, Nelson agreed to divert U.S. mail parcels containing drugs, including heroin, from his regular delivery route and deliver those packages directly to various co-conspirators.
Nelson provided co-conspirators with an address along his route and instructed them to send parcels to this address, but to use false addressee names on each parcel. Co-conspirators regularly communicated with Nelson via telephone and text message to provide descriptions of the parcels sent, including the colors of the mailed boxes and the false addressee names used. Nelson then used the information to remove the parcels from his delivery batches, falsely scan them as “delivered” in the U.S. Postal Service computer tracking system, and then bring them to co-conspirators at an agreed-upon location. Nelson received cash in exchange for delivering the parcels, typically $500 per parcel.
On September 11, 2014, Nelson was arrested in possession of a package containing approximately two kilograms of heroin. When arrested, he was on his way to meet with a co-conspirator at a pre-determined location, where Nelson was to provide the parcel containing heroin to the co-conspirator in exchange for cash.
Nelson admitted that during the course of the conspiracy the conspirators distributed more than one kilogram of heroin.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service, DEA, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who prosecuted the case.
Former Fultonville Resident Sentenced to 18 Months for Environmental Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK - David L. Frisby, age 65, of Kiln, Mississippi, was sentenced today to 18 months in prison for defrauding scrap metal brokerage firms out of more than $144,000.
The announcement was made by United States Attorney Richard S. Hartunian; Vernesa Jones-Allen, Special Agent in Charge of the Environmental Protection Agency (EPA) Criminal Investigations Division, and EPA Office of Inspector General Special Agent in Charge Thomas Muskett.
The sentence was imposed by Chief United States District Judge Glenn T. Suddaby. In addition to the term of imprisonment, Frisby was ordered to pay $144,216 in restitution to his victims.
Frisby, formerly of Fultonville, New York, pled guilty on December 10, 2015 to one count of conspiracy to commit wire fraud in connection with a scheme in which he and others entered into contracts for the disposal of batteries and other metal waste under false pretenses. As part of his plea agreement, Frisby admitted that he and his co-conspirators falsely held themselves out to be representatives of a scrap metal recycling firm that was authorized by the EPA to dispose of metal waste by shipping it to Korea, and that they defrauded businesses and individuals by charging them for recycling services that were never provided. In reality, Frisby and his co-conspirators were not authorized by the EPA to provide scrap metal recycling services and never intended to provide such services.
To further the scheme, Frisby, who formerly served as the Chief Executive Officer of D & L Heritage Enterprises, Inc., provided his co-conspirators with D & L Heritage incorporation documents that were fraudulently altered and e-mailed to victims. Victims transferred money to bank accounts maintained by Frisby, who retained a portion of the funds for his personal benefit and transferred the remainder to his co-conspirators overseas.
The case was investigated by the EPA Criminal Investigations Division and the EPA Office of the Inspector General. The case was prosecuted by Assistant United States Attorney Sean O’Dowd.
Former Employee of Health Insurance Company Sentenced for Possessing More Than 50 Customers’ Identities that she Stole from her EmployerRead the Press Release
Some of the victims’ information was used to file false tax returns with the IRS
A former health insurance company employee was sentenced to 32 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $16,264 for possessing more than 50 customers’ identities that she stole from her employer.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tony Pustizzi, Chief, Coral Springs Police Department (CSPD), made the announcement.
Quinzella J. Romer, 39, previously pled guilty to one count of possession of fifteen or more unauthorized access devices (social security numbers) issued to other persons, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on April 8, 2014, CSPD officers conducted a traffic stop of a vehicle that Romer was driving. During this traffic stop, officers determined that Romer had an outstanding arrest warrant for petit theft. A pat down was conducted of Romer’s person, and law enforcement found a Florida driver’s license in another person’s name and a cellular phone. After obtaining a search warrant, law enforcement searched Romer's cellular phone where they found over 20 screenshots containing more than 50 names, Social Security numbers, and dates of birth of health insurance customers.
Romer was employed as a Short-Term Disability Benefit Manager at a health insurance company from June 18, 2007 until August 23, 2013, and it was determined that the screenshots were taken from her work station at the company.
Further investigation revealed that 12 of the names and social security numbers found in Romer's phone were victims of tax-related identity theft for tax year 2013. The tax returns claimed refunds of $38,196, and the IRS actually paid $16,264.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department. The case is being prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Colfax County Sheriff’s Deputy Pleads Guilty to Federal Drug Trafficking and Theft of Government Property ChargesRead the Press Release
ALBUQUERQUE – Vidal Sandoval, 46, of Cimarron, N.M., pleaded guilty this morning to a superseding indictment charging him with drug trafficking and theft of government property charges. Sandoval was a Deputy of the Colfax County Sheriff’s Department at the time he committed the crimes. The guilty plea was entered without the benefit of a plea agreement.
In announcing the guilty plea, U.S. Attorney Damon P. Martinez said, “The people of New Mexico must be able to have trust in their law enforcement officials. This case sends a powerful message to the people of Colfax County and all New Mexico residents that the FBI, New Mexico State Police and U.S. Attorney’s Office are vigilant about aggressively rooting out law enforcement corruption and giving New Mexicans confidence that those in uniform will serve them with honesty and integrity.”
“The vast majority of law enforcement officers perform their jobs with integrity and sometimes even heroically, as recent headlines have shown. But when one of them turns bad and endangers the public safety he swore to protect, the FBI and our partners will make sure he is brought to justice,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “I would like to thank the FBI Special Agents and professional support staff who worked on this case, as well as the New Mexico State Police and Colfax County Sheriff's Office for their assistance.”
“This case reinforces to those that choose to break the law, that they will suffer the consequences,” said Chief Pete Kassetas of the New Mexico State Police. “When an officer is the one committing crimes, it reflects negatively on all law enforcement officers and it is unacceptable. The cooperation was outstanding and I cannot express my gratitude enough to all the agencies involved. Together, we have made a difference in our state.”
The FBI and the New Mexico State Police arrested Sandoval on March 13, 2015, on an indictment charging him with aiding and abetting an attempt to possess cocaine with intent to distribute in Colfax County, N.M., on Feb. 28, 2015. The indictment included forfeiture provisions seeking a money judgment in the amount of $17,500, the proceeds Sandoval obtained through his unlawful conduct. The indictment was superseded on April 14, 2015, to add two theft of government property offenses charging Sandoval with stealing money belonging to the FBI on Dec. 15, 2014, and Jan. 25, 2015.
During today’s change of plea hearing, the United States made the following proffer regarding the evidence it would have presented if the case had proceeded to trial:
Sandoval was employed as a deputy sheriff by the Colfax County Sheriff’s Department between Dec. 2014 and Feb. 2015, during which time he received training on how to properly handle evidence. Sandoval knew that he was forbidden to keep money and other property he seized while executing his official duties.
While on duty on Dec. 15, 2014, Sandoval stole money from two motorists whom he believed to be drug traffickers transporting the proceeds from the sale of illegal drugs. After Sandoval found $8,000 in cash in the motorists’ vehicle during a traffic stop, he called Leon Herrera and enlisted him to tell the motorists that he (Herrera) was a law enforcement officer. At the conclusion of the traffic stop, Sandoval retained $7,500 for his personal use and did not turn it into the Colfax County Sheriff’s Department; he returned $500 to the motorists. Sandoval later learned that the cash belonged to the FBI and that the two motorists whom he suspected of being drug traffickers were actually undercover officers.
On Feb. 28, 2015, Sandoval accepted $10,000 in cash to escort a load of illegal drugs through Colfax County into Colorado. Sandoval traveled to Wagon Mound, N.M., in his patrol car and while wearing his uniform, where he met a motorist whom he believed to be a drug trafficker. Sandoval accepted $5,000 from the motorist. During their conversation, the motorist displayed a box containing cocaine and Sandoval understood that the motorist was going to Colorado with the intention of selling the cocaine. After instructing the motorist to drive a few car lengths behind him, Sandoval drove through Colfax County and into Colorado, where he again met with the motorist and received another $5,000. Sandoval retained the $10,000 for his personal use instead of turning it into the Colfax County Sheriff’s Department. Sandoval later learned that the $10,000 belonged to the FBI and that the motorist whom he suspected of being a drug trafficker was actually an undercover officer. Sandoval also learned that the box displayed by the undercover officer contained two kilograms of cocaine and three kilograms of “sham” cocaine
At sentencing, Sandoval faces a statutory mandatory minimum of five years and a maximum of 40 years in prison on the drug trafficking charge and a statutory maximum penalty of ten years in prison on each of the two theft of government property charges. His sentencing hearing has not been scheduled.
Herrera, Sandoval’s cohort, was charged in a separate case with falsely impersonating a federal officer. Herrera entered a guilty plea to that charge on Oct. 16, 2015 and was sentenced on Feb. 4, 2016 to a year of probation and was ordered to perform 250 hours of community service.
The two cases were investigated by the Santa Fe and Albuquerque offices of the FBI and the New Mexico State Police with assistance from the Colfax County Sheriff’s Department. Assistant U.S. Attorney Sean J. Sullivan is the prosecutor for both cases.
Former Atkinson Man Sentenced for Tax Evasion Stemming from Wire Fraud SchemeRead the Press Release
CONCORD, N.H. – William M. Richmond, 60, formerly of Atkinson, New Hampshire, was sentenced to 24 months in prison for tax evasion, reports United States Attorney Emily Gray Rice.
In 2006 through 2008 Richmond failed to report and pay taxes on more than $743,000 he stole through a wire fraud scheme. From about May 18, 2005, through about April 2009, Richmond held a durable power of attorney for Richard Piller. The power of attorney gave Richmond unrestricted access to Piller’s finances. Richmond was supposed to manage Piller’s personal and business affairs while Piller and his then-wife, Joan Ettelson, were out of the country for extended periods. Richmond used the power of attorney to commit a wire fraud scheme through which he stole more than $743,000 from Piller and Ettelson. Richmond failed to disclose that criminally derived income on his tax returns for 2006, 2007, and 2008, and he failed to list the substantial additional taxes he owed for each year based on that income. Instead, Richmond falsely claimed that his only income was taxable interest and that he owed no taxes for each of the three years.
Richmond pleaded guilty to three counts of tax evasion on July 17, 2015.
In addition to a two-year prison sentence, Richmond was ordered to pay $743,171.59 in restitution to Piller and Ettelson.
This case was investigated by special agents of the FBI and the IRS – Criminal Investigation. It was prosecuted by Assistant United States Attorney Mark S. Zuckerman.
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Former Army Official and Contractor Indicted for Bribery Scheme Involving Contracts at Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted John Kays, age 42, of Bel Air, Maryland, and Matthew Barrow, age 42, of Toledo, Ohio, on conspiracy and bribery charges related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland. The indictment was returned on June 21, 2016, and unsealed on June 24, 2016. Kays and Barrow had initial appearances last week in U.S. District Court in Baltimore, and were each released under the supervision of U.S. Pretrial Services. No trial date has been set.
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; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command.
In March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Kays had a number of leadership positions related to this contract. In April 2011, a task order for services pursuant to the contract was placed.
According to the three count indictment, Kays was a civilian employee of the Army, who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts.
The indictment alleges that from December 2010 to June 2014, Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying Kays a total of approximately $157,000. Specifically, Kays used his official position to add MJ–6 as a subcontractor acceptable to the Army and suggested to prime contractors that MJ-6 be added as a subcontractor on the TO. Barrow allegedly withdrew cash from his personal accounts and from MJ-6 accounts, then traveled from his home in Toledo to Maryland, to deliver cash payments to Kays. To conceal their relationship, Barrow made all the payments to Kays in cash, withdrawing the money in amounts less than $10,000 to avoid bank reporting requirements, and Kays did not report the receipt of the cash on the government ethics forms that he was required to file. Kays used the cash for his personal benefit, including: purchasing two new vehicles; and to pay credit card bills.
Kays and Barrow each face a maximum sentence of five years in prison for conspiracy, and a maximum of 15 years in prison for bribery, $250,000 per count in criminal fines or three times the value of whatever Kays was illegally paid, plus forfeiture of the proceeds of the offense. The court has entered an order restraining assets of Kays in Harford County including real estate, a Nissan Armada, a 2012 BMW, a 2012 Yamaha power boat and a pair of diamond earrings. An order has also been entered restraining the assets of Barrow in Toledo, including, two pieces of real estate, a 2016 GMC Yukon, 2015 Buick Enclave, a 2011 GMC Yukon Denali, a power boat, a Wave Runner and funds in three bank accounts.
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 National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys= Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the FBI, DCIS, and Army Criminal Investigation Command for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.
Florida Keys Residents Plead Guilty to Illegally Trafficking in Marine LifeRead the Press Release
On July 11, 2016, two residents of the Florida Keys pled guilty to illegally trafficking in marine life.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracey Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Office of Law Enforcement, Miami Area, made the announcement.
Leah Gould, 51, and Phillip Gould, 57, of Big Pine Key, Florida, pled guilty to conspiring with others to commit certain offenses against the United States, that is conspiracy to transport, sell, receive, acquire, and purchase any fish and wildlife, that is juvenile bonnethead sharks (Sphyrna tiburo), with a fair market value in excess of $350.00, and attempt to do the same, knowing that said fish were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4)and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371. The defendants each face possible sentences of up to 5 years’ imprisonment, a term of supervised release of up to three years, and a criminal fine of up to $250,000. United States District Judge Jose E. Martinez, who accepted the guilty pleas, set sentencing for the defendants for October 3, 2016 at 2:30 p.m., in the Sidney M. Aronovitz Federal Courthouse in Key West.
According to the court record, including the indictment, a joint factual statement, and the defendants’ admissions during court hearings, at the relevant times, Leah Gould and Phillip Gould were residents of Monroe County, Florida and owned and operated Florida Keys Marine Life, LLC. (FKML), a Florida corporation with its principal place of business on Big Pine Key, Florida. FKML was engaged in the wholesale marketing of ornamental fish and live rock. Over the period extending from at May 2012 through August 2012, the Goulds engaged in the purchase and sale of bonnethead sharks (Sphyrna tiburo) through FKML. The Goulds negotiated for and received the sharks from an unlicensed harvester in the Florida Keys. At no time did the harvester, directly or as a third party contractor, possess or hold any State of Florida special activities license to collect, harvest, or transport any shark species, nor did he possess and hold a valid federal annual vessel permit for sharks issued pursuant to 50 C.F.R. 635.4 to harvest, collect, or take shark species as required by the laws of the State of Florida.
The Indictment also charged that the harvested bonnethead sharks were taken from the waters of the Key Deer National Wildlife Refuge, and subsequently shipped by the Goulds in interstate commerce by a variety of means, including rental truck and as commercial air cargo.
The Indictment and joint factual statement, in a series of “overt acts”, describes multiple instances when specific numbers of sharks were harvested, the transfer of the sharks from the harvester to the FKML commercial marine life facility on Big Pine Key, and specific payments received by the harvested for sharks sold in interstate commerce. The Goulds also admitted that in August 2012, Phillip Gould personally transported four bonnethead sharks by rental truck to St. Louis, Missouri where they were transferred to the St. Louis Zoo, in a sale set up by a middle-man located in Las Vegas, Nevada, and that in November 2012, Leah Gould negotiated the sale of four bonnethead sharks in interstate commerce to a customer located in Atlanta, Georgia. In Court, the government revealed that the transaction had been recorded by government agents.
Mr. Ferrer commended the joint investigative efforts of NOAA Office of Law Enforcement and the local and Atlanta-area Fish & Wildlife Service Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom, and noted the assistance of Refuge Officers from the Florida Keys National Wildlife Refuges and the U.S. Customs and Border Protection Air Marine Branch in the development of the case. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Federal and State Authorities Arrest Sureños Gang Member and AssociateRead the Press Release
This morning, federal, state and local authorities arrested a Sureños gang member and an associate charged in connection with methamphetamine trafficking in El Paso announced United States Attorney Richard L. Durbin, Jr., 34th Judicial District Attorney Jaime Esparza, Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, and El Paso Police Chief Greg Allen.
A federal grand jury indictment unsealed this afternoon in El Paso charges 29–year-old Sureños member Carlos Dorado (aka “Chapo”) of Anthony, NM, and 37–year-old Sureños associate Melissa Alonso (aka “Poison Ivy”) of El Paso. with one count of conspiracy to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine. According to the indictment, the defendants conspired to distribute methamphetamine throughout the El Paso area from October 2014 through June 2015.
Upon conviction, Dorado faces between ten years and life in federal prison; Alonso, up to 20 years in prison.
In addition to Dorado and Alonso, state authorities have filed charges against Sureños members Terry Alvarado (aka “Smokey”), age 25, of El Paso, and Mario Ramiro Rodriguez (aka “Rukus”), age 33, of El Paso, in connection with this investigation. Alvarado and Rodriguez are both charged with engaging in organized criminal activity; and, manufacture and delivery of a controlled substance. Engaging in organized criminal activity and manufacture and delivery of a controlled substance are both 1st degree felonies which call for between five and 99 years imprisonment upon conviction. Rodriguez is currently in state custody on an unrelated charge; Alvarado is considered a fugitive.
Today’s arrests mark the end of a two-year-investigation into drug trafficking by Sureños gang members in the El Paso area. To date, this investigation has resulted in the convictions of more than 25 defendants and the seizure of more than ten pounds of “crystal” methamphetamine; over four gallons of liquid methamphetamine; and, approximately 19 firearms.
This investigation was conducted by the Safe Streets Task Force in El Paso comprised of FBI, DEA, El Paso Police Department, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, U.S. Customs and Border Protections, Texas Department of Public Safety, El Paso County Sheriff’s Office, Texas Alcohol Beverage Commission and the El Paso Independent School District Police Department.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Eunice man pleads guilty to sexually exploiting a minorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Eunice man pleaded guilty Tuesday to convincing a minor girl to send him sexually explicit pictures.
Adam Shilow, 35, of Eunice, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of receiving material involving the sexual exploitation of a minor. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, starting in October of 2013, Shilow contacted a 12-year-old female using an internet-based communication application. He portrayed his identity as a juvenile male with his same name. They exchanged sexually explicit pictures of each other in November of 2013. The juvenile’s mother notified law enforcement of Shilow’s activities after noticing an inappropriate message on her daughter’s phone on November 15, 2013.
Shilow faces 15 to 40 years in prison, five years to life of supervised release and a $250,000 fine. He is also required to register as a sex offender. A sentencing date was not set.
Homeland Security Investigations, the Louisiana Attorney General’s Office and the Nassau County of New York Police Department investigated the case. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
District Man Sentenced to More Than 10 Years in Prison for Broad Daylight Armed Robbery of Barber ShopRead the Press Release
WASHINGTON – Jarred Thomas, 19, of Washington, D.C., was sentenced today to a prison term of 121 months on charges stemming from a broad daylight armed robbery last year at a barber shop in Southeast Washington, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Thomas pled guilty in May 2016, in the U.S. District Court for the District of Columbia, to one count of interference with interstate commerce by robbery, one count of using, carrying, and possessing a firearm in furtherance of a crime of violence, and one count of unauthorized use of a vehicle. He was sentenced by the Honorable Rosemary M. Collyer. Upon completion of his prison term, Thomas will be placed on four years of supervised release.
According to the government’s evidence, on Sept. 23, 2015, at approximately noontime, Thomas and his accomplice entered the “Like That 2” barbershop in the 3300 block of Stanton Road SE, while wearing masks and brandishing loaded firearms. At gunpoint, Thomas ordered everyone to the ground and demanded that they hand over their money. Numerous victims were robbed at gunpoint of cash and their possessions, including four barbers and four customers. A four-year-old child also was in the shop at the time of the robbery.
After the robbery, Thomas was observed leaving the area in a black Infinity SUV. Thomas was subsequently apprehended by the Metropolitan Police Department three blocks from the barber shop and a firearm was recovered in his flight path. The black Infinity SUV used by Thomas was located and identified as having been stolen in a separate armed robbery eight days earlier.
At the time of his arrest, Thomas was on probation following a 2015 conviction in the Superior Court of the District of Columbia for attempted robbery.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of those who investigated the case from the Violent Crime Task Force of the FBI’s Washington Field Office and from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Candace Battle, and Assistant U.S. Attorney Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter.
Convicted felon sentenced in Federal Court on weapons chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of an Indianapolis man for possession of a firearm by a convicted felon. Adrian Bullock, 26, was sentenced to 41 months imprisonment by U.S. District Judge Jane Magnus-Stinson in federal court.
“Mr. Bullock terrorized Indianapolis neighborhoods with gun violence for many years,” said Minkler. “He will now have time to think about his crime in the Bureau of Prisons.”
On April 8, 2014, Indianapolis Metropolitan Police Department (IMPD) officers received a complaint of a suspicious vehicle near the 1700 block of N. Oxford Street on the City’s near-Eastside. When officers arrived, they located the suspicious vehicle and saw Bullock get out of it and walk away. Officers recovered a .40 caliber handgun and two assault style semiautomatic rifles in the vehicle, all of which were fully loaded.
Bullock may not legally possess a firearm because he has two felony convictions for narcotic-related crimes.
This case was investigated by the IMPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Bullock must serve three years of supervised release following completion of incarceration.
City of Miami Resident Pleads Guilty to Possessing 242 Stolen Identities Used in Unemployment and Tax Fraud SchemesRead the Press Release
A City of Miami resident pled guilty to possessing 242 stolen identities used in unemployment and tax fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Miami Office (DOL-OIG), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Yordan Gorotiza, 25, pled guilty to one count of possession of fifteen or more unauthorized access devices (social security numbers) with intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for September 16, 2016 before U.S. District Court Judge Paul C. Huck. At sentencing, Gorotiza faces a maximum of ten years’ imprisonment for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, during a traffic stop of Gorotiza’s vehicle, law enforcement officers found Gorotiza in possession of (among other items) four Florida unemployment cards in the names of other individuals; 26 Visa gift cards; a Florida driver’s license with Gorotiza’s picture but with another individual’s name; and a book bag containing personal identifying information (PII) of 242 different people, including employment records from a business and patient data sheets from a hospital. Several of the sheets contained handwritten driver's license numbers and markings commonly used to represent tax or unemployment benefits filings.
Records from the Florida Department of Economic Opportunity show that between October 1, 2013 and July 11, 2014, at least 64 of the victims had their personal information used without authorization to obtain unemployment benefits, including the victims whose unauthorized unemployment cards Gorotiza possessed during the traffic stop. The total actual loss to the Florida Department of Economic Opportunity was $33,608, and the total intended loss was $192,009. The total intended loss attributable to Gorotiza, including the 178 victims whose social security numbers were not used to obtain unauthorized unemployment benefits, was $281,009.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, and the Aventura Police Department. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Chinese National Who Conspired to Hack into U.S. Defense Contractors’ Systems Sentenced to 46 Months in Federal PrisonRead the Press Release
A Chinese national who admitted to participating in a years-long conspiracy that involved Chinese military officers hacking into the computer networks of major U.S. defense contractors in order to steal military technical data was sentenced today to 46 months in federal prison.
Today’s sentencing was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Eileen M. Decker of the Central District of California.
“Su Bin’s sentence is a just punishment for his admitted role in a conspiracy with hackers from the People's Liberation Army Air Force to illegally access and steal sensitive U.S. military information,” said Assistant Attorney General Carlin. “Su assisted the Chinese military hackers in their efforts to illegally access and steal designs for cutting-edge military aircraft that are indispensable to our national defense. These activities have serious consequences for the national security of our country and the safety of the men and women of our armed services. This prison sentence reinforces our commitment to ensure that hackers, regardless of state affiliation, are held accountable for their criminal conduct.”
“Protecting our national security interests, including sensitive military information, is the Justice Department’s highest priority,” said U.S. Attorney Decker. “Over the course of years, this defendant sought to undermine the national security of the United States by seeking out information that would benefit a foreign government and providing that country with information it had never before seen. The outstanding efforts of the prosecutors and investigators who developed this case demonstrate our commitment to protecting our nation’s security from all threats. As this case shows, criminals can be held accountable no matter where they are located in the world.”
Su Bin, who is also known as Stephen Su and Stephen Subin, 51, a citizen and resident of the People’s Republic of China, was sentenced today by U.S. District Judge Christina A. Snyder of the Central District of California.
Su told his co-conspirators – military officers in China – whom to target, which files to steal and why the information they stole was significant. During the course of the conspiracy, Su and his co-conspirators stole sensitive military and export-controlled data and sent the stolen information to China.
On March 23, Su pleaded guilty to one count of conspiring to gain unauthorized access to a protected computer and to violate the Arms Export Control Act by exporting defense articles on the U.S. Munitions List contained in the International Traffic in Arms Regulations. Su admitted that he conspired with two persons in China from October 2008 to March 2014 to gain unauthorized access to protected computer networks in the United States – including computers belonging to the Boeing Company in Orange County, California – to obtain sensitive military information and to export that information illegally from the United States to China.
A criminal complaint filed in 2014 and subsequent indictments filed in Los Angeles charged Su, a China-based businessman in the aviation and aerospace fields, for his role in the criminal conspiracy to steal military technical data, including data relating to the C-17 strategic transport aircraft and certain fighter jets produced for the U.S. military. Su was initially arrested in Canada in July 2014 on a warrant issued in relation to this case. Su ultimately waived extradition and consented to be conveyed to the United States in February 2016.
Su admitted that as part of the conspiracy, he sent e-mails to his co-conspirators with guidance regarding what persons, companies and technologies to target during their computer intrusions. One of Su’s co-conspirators gained access to information located on computers of U.S. companies, and he emailed Su directory file listings and folders showing the data that the co-conspirator had been able to access. Su then directed his co-conspirator as to which files and folders his co-conspirator should steal. Once the co-conspirator stole the data, using techniques to avoid detection when hacking the victim computers, Su translated the contents of certain stolen data from English into Chinese. In addition, acoording to Su's admissions and the sentencing documents, Su and his co-conspirators each wrote, revised and emailed reports addressed to the Second Department, General Staff Headquarters, Chinese People’s Liberation Army about the information and technology they had acquired by their hacking activities, including its value, to the final beneficiaries of their hacking activities. Su also admitted that he engaged in the crime for the purpose of financial gain and specifically sought to profit from selling the data the he and his conspirators illegally acquired.
The case was investigated by the FBI’s Los Angeles Field Office’s Cyber Division with assistance from the U.S. Air Force Office of Special Investigations. This case was prosecuted by the U.S. Attorney’s Office of the Central District of California’s Terrorism and Export Crimes Section and Trial Attorney Casey Arrowood and Senior Trial Attorney Robert E. Wallace of the National Security Division’s Counterintelligence and Export Control Section, with support from the Justice Department’s Office of International Affairs.
Chinese National Who Conspired to Hack into U.S. Defense Contractors’ Computer Systems Sentenced to 46 Months in PrisonRead the Press Release
LOS ANGELES – A Chinese national who admitted to participating in a years-long conspiracy that involved Chinese military officers hacking into the computer networks of major U.S. defense contractors in order to steal military technical data was sentenced today to 46 months in federal prison.
Su Bin, who is also known as Stephen Su and Stephen Subin, 51, a citizen and resident of the People’s Republic of China, was sentenced this afternoon by United States District Judge Christina A. Snyder, who also ordered the defendant to pay a $10,000 fine.
Su told his co-conspirators – military officers in China – whom to target, which files to steal and why the information they stole was significant. During the course of the conspiracy, Su and his co-conspirators stole sensitive military and export-controlled data and sent the stolen information to China.
“Protecting our national security interests, including sensitive military information, is the Justice Department’s highest priority,” said United States Attorney Eileen M. Decker. “Over the course of years, this defendant sought to undermine the national security of the United States by seeking out information that would benefit a foreign government and providing that country with information it had never before seen. The outstanding efforts of the prosecutors and investigators who developed this case demonstrate our commitment to protecting our nation’s security from all threats. As this case shows, criminals can be held accountable no matter where they are located in the world.”
On March 23, Su pleaded guilty to one count of conspiring to gain unauthorized access to a protected computer and to violate the Arms Export Control Act by exporting defense articles on the U.S. Munitions List contained in the International Traffic in Arms Regulations. Su admitted that he conspired with two persons in China from October 2008 to March 2014 to gain unauthorized access to protected computer networks in the United States – including computers belonging to the Boeing Company in Orange County, California – to obtain sensitive military information and to export that information illegally from the United States to China.
“Su Bin’s sentence is a just punishment for his admitted role in a conspiracy with hackers from the People's Liberation Army Air Force to illegally access and steal sensitive U.S. military information,” said Assistant Attorney General for National Security John P. Carlin. “Su assisted the Chinese military hackers in their efforts to illegally access and steal designs for cutting-edge military aircraft that are indispensable to our national defense. These activities have serious consequences for the national security of our country and the safety of the men and women of our armed services. This prison sentence reinforces our commitment to ensure that hackers, regardless of state affiliation, are held accountable for their criminal conduct.”
A criminal complaint filed in 2014 and subsequent indictments filed in Los Angeles charged Su, a China-based businessman in the aviation and aerospace fields, for his role in the criminal conspiracy to steal military technical data, including data relating to the C-17 strategic transport aircraft and certain fighter jets produced for the U.S. military. Su was initially arrested in Canada in July 2014 on a warrant issued in relation to this case. Su ultimately waived extradition and consented to be conveyed to the United States in February 2016.
Su admitted that as part of the conspiracy, he sent e-mails to his co-conspirators with guidance regarding what persons, companies and technologies to target during their computer intrusions. One of Su’s co-conspirators gained access to information located on computers of U.S. companies, and he emailed Su directory file listings and folders showing the data that the co-conspirator had been able to access. Su then directed his co-conspirator as to which files and folders his co-conspirator should steal. Once the co-conspirator stole the data, using techniques to avoid detection when hacking the victim computers, Su translated the contents of certain stolen data from English into Chinese. In addition, according to Su's admissions and the sentencing documents, Su and his co-conspirators each wrote, revised and emailed reports addressed to the Second Department, General Staff Headquarters, Chinese People’s Liberation Army about the information and technology they had acquired by their hacking activities, including its value, to the final beneficiaries of their hacking activities. Su also admitted that he engaged in the crime for the purpose of financial gain and specifically sought to profit from selling the data the he and his conspirators illegally acquired.
The case was investigated by the FBI’s Los Angeles Field Office’s Cyber Division with assistance from the U.S. Air Force Office of Special Investigations.
This case was prosecuted by the Terrorism and Export Crimes Section of the United States Attorney’s Office in Los Angeles and the National Security Division’s Counterintelligence and Export Control Section of the Department of Justice, with support from the Justice Department’s Office of International Affairs.
Charlton Man Sentenced to 20 Years in Prison for Child ExploitationRead the Press Release
BOSTON – A Charlton man was sentenced today in U.S. District Court in Worcester in connection with soliciting hundreds of teenage girls on several social media platforms.
Matthew Clem, 31, was sentenced by U.S. District Court Judge Hillman to 20 years in prison and 10 years of supervised release. In April 2016, he pleaded guilty to three counts of producing child pornography. Clem also faces state child rape charges in the Worcester Superior Court.
Clem pretended to be a 15-16 year old boy on several social media platforms in order to meet teenage girls. After chatting with them, Clem proposed that they meet his 19 or 20 year old “cousin,” who Clem claimed was returning from active military duty. The “cousin,” however, was Clem himself who had never served in the military. Evidence on Clem’s cell phone revealed that he had solicited over 1,000 potential victims.
Clem admitted during the plea hearing that in October 2014 he requested and obtained nude photos of a teenage female victim through Kik Messenger, a web-based messaging service. Via text message, Clem specified poses and sexual acts for the victim to photograph and send to him.
From September 2011 to May 2012, Clem video-chatted with another female teenage victim over Skype, a web-based video messaging service. During the video chats, Clem had the victim remove her clothes and conduct sexual acts. Clem also met with the victim and engaged in sexual intercourse with her.
Clem also admitted to communicating with a third teenage victim through Kik Messenger in the spring and fall of 2014. Clem exchanged sexually graphic text messages and images with the teenager and met her on multiple occasions to engage in sexual intercourse.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Worcester District Attorney Joseph D. Early, Jr.; Gregory K. Null, Special Agent in Charge of the U.S. Department of Homeland Security, Office of Inspector General, Office of Investigations; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; North Brookfield Police Chief Mark Smith, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Carterville Woman Pleads Guilty to Bankruptcy FraudRead the Press Release
On July 12, 2016, Jenny L. Parks-Smith, 42, of Carterville, IL, pled guilty to a bankruptcy fraud charge pending against her in federal court in Benton, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Parks-Smith was indicted on February 2, 2016, as part of an effort to crackdown on those who commit fraud during the course of bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Illinois.
"Bankruptcy fraud harms creditors and erodes confidence in the federal bankruptcy system," United States Attorney Boyce explained. "Individuals who hide their assets during bankruptcy cases are defrauding their creditors. Truth is at the core of any bankruptcy and my office will prosecute those who engage in this type of conduct."
The indictment charged Parks-Smith with concealing assets in her bankruptcy case. In pleading guilty, Parks-Smith admitted that she concealed from the Bankruptcy Court a $17,500 settlement she received for a worker’s compensation claim. Parks-Smith further admitted that she used this money to pay personal and family expenses. Parks-Smith’s chapter 13 bankruptcy case was filed and litigated in the United States Bankruptcy Court in Benton, Illinois.
"Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system," stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). "I am grateful to U.S. Attorney Boyce and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases." The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria, IL and South Bend, IN.
Parks-Smith’s sentencing hearing is scheduled for October 19, 2016, at 10:30 a.m. at the federal courthouse in Benton. The crime of concealing assets in a bankruptcy case is punishable by up to 5 years in federal prison, and/or a $250,000 fine, not more than three years of supervised release, and restitution.
The charges resulted from a referral by the U.S. Trustee and the investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI") with assistance from members of the Southern District of Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
California Woman and Her Company Sentenced for Clean Air Act ViolationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHEERY WAY, INC., and ELAINE CHIU, age 60, a resident of San Francisco, California, were sentenced today by the Honorable Susie Morgan to five years of probation, a $500,000 fine, and $162,520 in restitution to workers for medical monitoring costs for violating notification requirements under the Clean Air Act.
According to the court documents, on or about April 2, 2011, in the Eastern District of Louisiana, CHEERY WAY, INC., and CHIU did knowingly fail to notify and report to the Louisiana Department of Environmental Quality the demolition of the Mississippi Queen Riverboat which contained regulated asbestos containing material, to wit: wall and ceiling tiles, at least ten days prior to the start of the demolition as required by the Clean Air Act, in violation of Title 42, United States Code, Section 7413(c)(2)(B) and Title 40, Code of Federal Regulations, Section 61.145(b).
Prior to the demolition of the Mississippi Queen, CHIU and agents of CHEERY WAY, INC., had been informed that samples of the wall and ceiling tiles on the old riverboat contained asbestos. However, CHEERY WAY, INC., did not inform the demolition contractor they hired that sampling had been performed. CHEERY WAY, INC., merely told the contractor that the riverboat “might” have asbestos. The inexperienced demolition contractor told CHIU and CHEERY WAY, INC., that he did not believe the vessel contained any asbestos. As a result, workers were not required to take any precautions against the release of asbestos. After receiving a tip about the worksite, the Louisiana Department of Environmental Quality issued the site a Notice of Deficiency and work was stopped. The site was thereafter remediated by another CHIU company at a cost of $245,248.23.
During her five year term of probation, CHIU is prohibited from participating in any capacity in the construction, demolition, or renovation business anywhere in the United States and must ensure that none of the companies she owns or operates will engage in the construction, demolition, or renovation business. Similarly, neither CHEERY WAY, INC., or its agents or employees will engage in the construction, demolition, or renovation business anywhere in the United States.
"Unsafe handling of asbestos endangers human health and can seriously harm the environment,” said Ted Stanich, Acting Director for the U.S. EPA-Criminal Investigation Division. “The defendants knowingly put unsuspecting workers at great risk and threatened the health and safety of the general public. This case should serve notice that when companies and their top managers put Americans at risk, EPA and its partner agencies will hold them accountable.”
“Any business that breaks the law through false statements and illegal actions in order to pollute our soil, air and water does so with a blatant disregard for our health and environment,” said Dr. Chuck Carr Brown, DEQ Secretary. “Crimes of this nature affect all of us, so we encourage anyone with information on any type of illegal environmental activity to contact DEQ and local law enforcement as soon as possible so that we may investigate and bring these violators to justice.”
U.S. Attorney Polite praised the work of the Environmental Protection Agency-Criminal Investigation Division and the Louisiana Department of Environmental Quality-Criminal Investigation Division in investigating this matter. Assistant U.S. Attorney Emily K. Greenfield of the National Security Unit of the United States Attorney’s Office of the Eastern District of Louisiana is in charge of the prosecution.
Bowling Green Physician Charged with Unlawful Distribution and Dispensing of Controlled Substance Causing Serious Physical Injury And/Or Death, Health Care Fraud Resulting in Death, and Conspiracy to Dispense Controlled SubstancesRead the Press Release
50 Count Indictment includes deaths of patients
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. today announced the Superseding Indictment of former Warren County, Kentucky, physician Charles Fred Gott on multiple charges of unlawful distribution and dispensing of controlled substances resulting in injury and or death of patients, health care fraud resulting in a patient’s death, and conspiracy to distribute and dispense controlled substances during the course of his professional practice that were not for a legitimate medical purpose, and health care fraud.
Gott, age 63, a formerly licensed physician in the Commonwealth of Kentucky, was initially indicted by grand jury in Bowling Green on June 10, 2015.
Today’s 50 count, superseding indictment adds multiple charges while the alleged criminal activity remains between 2006 and September 19, 2013, in Warren County, Kentucky.
Gott is charged with a single count of conspiring with others to knowingly and intentionally distribute and dispense, not for a legitimate medical purpose in the usual course of professional practice, Schedule II, Schedule III and Schedule IV controlled substances. Included are 14 counts of unlawfully dispensing Methadone and Fentanyl – Schedule II controlled substances, Hydrocodone – a Schedule III controlled substance, and Clonazepam and Oxymorphone – Schedule IV controlled substances.
Further, Gott is charged with three counts of unlawful distribution and dispensing of controlled substances resulting in serious physical injury and/or the death of known patients. According to the charges, on December 8, 2011, Gott knowingly and intentionally distributed Fentanyl, not for a legitimate medical purpose and in the usual course of professional practice, to a patient whose serious physical injury and death on December 13, 2011 resulted from the use of the dispensed substance.
On February 28, 2012, Gott is charged with knowingly and intentionally distributing Hydrocodone, not for a legitimate medical purpose and in the usual course of professional practice, to a patient whose serious physical injury and death on March 2, 2012 resulted from the use of the dispensed substance.
On July 24, 2012, Gott is charged with knowingly and intentionally distributing Methadone, not for a legitimate medical purpose and in the usual course of professional practice, to a patient whose serious physical injury and death on July 28, 2012, resulted from the use of the dispensed substance.
Gott is further charged with a single count of the health care fraud resulting in the death of a patient. According to the superseding indictment, between July 13, 2011, and September 19, 2013, Gott knowingly dispensed and distributed medically unnecessary controlled substance prescriptions to a patient – knowing that the patient would fill her prescriptions at pharmacies, and those pharmacies in turn would submit claims to health care benefit programs for reimbursement and these prescriptions resulted in the patients’ death on February 7, 2013.
Further, during the same time period, Gott is charged with executing a scheme to falsely and fraudulently bill various health care benefit programs, including Medicare and Medicaid, by submitting claims for office visits at a higher code than the service actually provided to patients under his care. Also, Gott is charged with directing staff members to provide medically unnecessary spirometry tests and medically unnecessary electrocardiogram (EKG/ECG) tests to patients, and to falsely and fraudulently bill various health care benefit programs, including Medicare, Medicaid, and Anthem, among others, by submitting claims for medically unnecessary spirometry tests and EKG/ECG tests, for patients. A spirometry test assess lung function in the diagnosis of asthma, chronic obstructive pulmonary disease (COPD) and other conditions that affect breathing.
Gott is further subject to forfeiture to the United States government, any and all proceeds derived from unlawful activity as a result of the offenses alleged in the indictment and the forfeiture of Gott’s license to practice medicine.
If convicted at trial, Gott faces a mandatory minimum of 20 years and up to and including life in prison. Gott is scheduled for arraignment on July 27th, at 10:00 a.m. in Bowling Green.
This case is being prosecuted by Assistant United States Attorneys Mac Shannon, Lettricea Jefferson-Webb and Joseph Ansari. This case was investigated by the Warren County Drug Task Force, Drug Enforcement Administration (DEA) Drug Diversion Section, the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), Kentucky State Police, Office of the Attorney General, Medicaid Fraud and Abuse Division and Federal Bureau of Investigation (FBI). The Warren County Drug Task Force, led by Director Tommy Loving, along with detectives from KSP’s West Drug Enforcement Branch, were instrumental in identifying and developing this case for federal prosecution.
Bowie Drug Trafficker Sentenced to 23 Years in Federal Prison for $108 Million Drug Distribution and Money Laundering ConspiraciesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Andracos Marshall, a/k/a “Draco,” age 42, of Bowie, Maryland, to 23 years in prison, followed by five years of supervised release, for conspiring to distribute cocaine; possession with intent to distribute cocaine; and money laundering conspiracy. Judge Chasanow also entered an order requiring Marshall to forfeit $51,300,000. Marshall was convicted of the federal charges on February 8, 2016, after a 13 day jury trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief of Police Robert D. MacLean of the U.S. Park Police; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas Jankowski the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Michael B. Boxler of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; U.S. Marshal Johnny Hughes; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to evidence presented at his trial, from at least January 2011 through January 2015, Marshall conspired with Anthony Torrell Tatum, Ishmael Ford-Bey and others to distribute cocaine and heroin in Prince George’s County, including Oxon Hill, Maryland, and Washington, D.C. In order to disguise their drug proceeds, Marshall and his co-conspirators used aliases and false identifications and created numerous business entities, which had little, if any, legitimate business.
They also used the aliases and false identifications to rent storage facilities and apartments for their drug trafficking activities. For example, on February 22, 2013, a third party leased an apartment for Marshall in the 3800 block of Tunlaw Road in Washington, D.C. Investigation revealed that Tatum and Ford-Bey were visitors to the apartment. On October 1, 2013, agents executed a search warrant at the apartment and located a safe which contained $823,640 in cash, several expensive watches, and jewelry. Agents also recovered scales, three heat sealers, a coffee grinder, a currency counter and other drug paraphernalia, as well as approximately 150 grams of cocaine base.
Testimony showed that from January 2011 until August 2012, Ford-Bey, assisted by Marshall, received multiple kilogram shipments of cocaine from a source in California. On August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting 13 boxes, each containing approximately 10 kilograms of cocaine. The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland. A controlled delivery of the boxes from the truck was arranged.
On August 17, 2012, the truck arrived at the meeting location in Marlow Heights, Maryland. A few minutes later, a vehicle registered to Ford-Bey arrived. Law enforcement saw the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. Marshall, who was driving another vehicle, followed Ford-Bey as they left the area. As law enforcement officers pursued Ford-Bey, Marshall drove his vehicle in a manner to evade law enforcement. Marshall and Ford-Bey eventually abandoned their vehicles after a high-speed chase on I-495 and ran away. Agents recovered the vehicles, the cocaine, cell phones and other evidence. Marshall remained a fugitive until he was arrested in January 2015.
Four other defendants were convicted and sentenced to federal prison for their participation in the conspiracy:
Anthony Torrell Tatum, age 37, of Arlington, Virginia – 27 years in prison;
Ishmael Ford-Bey, age 40, of Mitchellville, Maryland – 33 years in prison;
Terrin Tamal Anderson, age 29, of Waldorf, Maryland – 12 years in prison; and
David Allen Jones, age 40, of District Heights, Maryland - 45 months in prison.
Judge Chasanow also entered an order requiring Tatum and Ford-Bey to pay a $108 million money judgment, and a forfeiture order for personal property, including luxury vehicles, jewelry and cash.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police, U.S. Postal Inspection Service, IRS-CI, ATF, U.S. Marshals Service and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston, Ray D. McKenzie, and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.
BPD Cell Block Attendant Indicted for Violatingthe Civil Rights of an Individual in CustodyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Matthew Jaskula, 26, of Buffalo, NY, was indicted by a Federal Grand Jury for one count of willful deprivation of rights under color of law resulting in bodily injury. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
“The Constitutional rights that all citizens of this country enjoy do not expire simply because a person has been taken into custody,” said U.S. Attorney Hochul. “Likewise, the motto ‘to protect and to serve’ applies not just to sworn police officers, but to all who work in any law enforcement capacity. For these reasons, when our Office receives information that a person has been abused by one in authority, we will not hesitate to act, whether the incident occurred on a street or in a jail.”
U.S. Attorney Hochul stated that Jaskula had been working as a Cell Block Attendant with the Buffalo Police Department since 2013. On May 19, 2016, the defendant was working as a Senior Cell Block Attendant.
According to the previously filed criminal complaint, on May 19, 2016, the victim was arrested by two Buffalo Police officers and transported to the cell block area of police headquarters. At approximately 10:00 p.m., the victim, whose hands were handcuffed behind his back, was taken into the fingerprint and mug shot room. The officers and the victim were met by Jaskula and another cell block attendant.
The victim, with his hands still handcuffed behind him, was instructed to face a wall. Within a few seconds, Jaskula grabbed the victim from behind and shoved the victim face-first into a door. The force of the defendant’s actions not only caused the victim to strike the door, it caused the door to fly open and the victim to fall to the ground. On the way to the ground, the victim’s face struck the ledge of a shelf, before striking the floor, face-first.
The defendant’s actions caused the victim to become limp and unresponsive. Jaskula thereafter grabbed the victim by his handcuffed arms and dragged him down a hallway for approximately 10-15 feet to an open cell. The victim began bleeding profusely as he was dragged by the defendant and taken into an open cell. As the victim was pulled into the room, the victim’s head hit the door frame, causing blood to pool on the floor. Once in the room, the victim’s facial injuries caused a large amount of blood to fall onto the seat and floor of the cell.
The victim was later taken by Jaskula and another and put into a restraint chair used for non-compliant prisoners. The defendant left the victim in this chair, without seeking medical treatment for the extensive facial injuries, for approximately an hour and 45 minutes. The cell block area in Buffalo Police headquarters is equipped with a video recording system and Jaskula’s actions were captured on videotape.
As also described in the complaint, Jaskula told two lieutenants on duty that a prisoner had a bloody nose, giving the impression that the victim had the bloody nose when he was brought in by the officers. After one of the lieutenants indicated the victim should go to the Erie County Medical Center, the defendant replied that the victim’s nose was not bleeding anymore and he was refusing medical treatment. At approximately 11:30 p.m., the victim complained of chest pains. The victim was taken to ECMC and treated for nasal bone fractures and a laceration between his nose and right eye.
The defendant will be arraigned on a date and time to be set before U.S. Magistrate Judge Michael J. Roemer. The indictment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Arizona man pleads guilty to traveling to Louisiana to have sex with a minorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that an Arizona man pleaded guilty last week to traveling from Texas to Louisiana in order to engage in sexual activity with a minor.
Jonathan Glosch, 27, of Golden Valley, Ariz., pleaded guilty Friday before U.S. Magistrate Judge Carol B. Whitehurst to one count of traveling with intent to engage in illicit sexual conduct. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Glosch was traveling with an Arizona family in November of 2015 on their way to Louisiana. The family asked Glosch to leave the trip while in Texas. The mother believed he was having an inappropriate relationship with their 14-year-old daughter. Glosch stayed in contact with the daughter telling her that he had feelings for her and that they would run away together. He followed the family to Morgan City, La. On December 3, 2015, he picked up the daughter without the family’s knowledge and drove to Lafayette Parish. Law enforcement agents used information provided by the parents to track the defendant. The juvenile female was found with Glosch, and he was arrested.
Glosch faces 30 years in prison, five years to life of supervised release and a $250,000 fine. He is also required to register as a sex offender. A sentencing date was not set.
The FBI, Lafayette Parish Sheriff’s Office and Morgan City Police Department investigated the case. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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, visit www.projectsafechildhood.gov.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Appleton Man Sentenced to Ten Years in Federal Prison for Possessing Firearms Stolen from Oshkosh Gun ShopRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 12, 2016, Cory M. Yant (age: 35) of Appleton, Wisconsin, was sentenced to 10 years in federal prison for being a felon in possession of a firearm.
A federal grand jury had indicted Yant for offenses related to the May 25, 2015, break-in and burglary of Jon’s Gun Shop in Oshkosh, Wisconsin. According to court filings, Yant and his codefendants stole and then sold on the street 11 semi-automatic firearms, several of which ended up in the hands of convicted felons.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach agreed that the maximum sentence of 10 years was warranted based on Yant’s conduct and history. Chief Judge Griesbach also determined that in light of Yant’s lengthy criminal record and unrepentant demeanor, his 10-year federal prison sentence will commence only after Yant has finished serving a 4-year state prison sentence for crimes committed in Calumet, Outagamie, and Brown Counties.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Winnebago County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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A Dominican National Indicted for Illegally Re-Entering the U.S.Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has indicted Miguel Antonio Rivera-Lopez for illegally re-entering the United States after having been previously deported.
According to U.S. Attorney Peter Smith, Rivera-Lopez, a 56 year old Dominican national, was arrested by officers of U.S. Immigration and Customs Enforcement on June 12, 2016 as a result of a traffic stop in York, Pennsylvania. Rivera-Lopez had previously been deported after an Immigration Judge in New York ordered his removal pursuant to a conviction for felony drug trafficking of heroin.
The matter was investigated by the U.S. Department of Homeland Security/ Immigration and Customs Enforcement and Removal Operations and the case is being prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
Indictments 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 for this offense under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tuesday 12 July 2016
Zuni Pueblo Man Sentenced to 17 Years for Second Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Douglas Burt, 20, a member and resident of Zuni Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 204 months in prison followed by three years of supervised release for his conviction on a second degree murder charge.
Burt and his co-defendant Dusty Chavez, 23, also a member and resident of Zuni Pueblo, were arrested in Nov. 2014, on a criminal complaint charging them with murdering a man on Oct. 28, 2014, in the Zuni Indian Reservation in McKinley County, N.M. Burt and Chavez were subsequently indicted on murder charges on Nov. 19, 2014.
On Jan. 7, 2016, Burt pled guilty to a felony information charging him with second degree murder. According to the plea agreement, Burt and Chavez instigated a fight with the victim during which Chavez threw the victim to the ground and then kicked and punched the victim. Burt also kicked the victim; Chavez hit the victim in the head with a rock; and Burt stabbed the victim in the chest. The autopsy report revealed that the victim died as a result of blunt force trauma to the head and stab wounds to the chest.
On Jan. 12, 2016, Chavez pled guilty to a felony information charging him with second degree murder. Under the terms of his plea agreement, Chavez will be sentenced within the range of 228 to 276 months in federal prison followed by a term of supervised release to be determined by the court. Chavez is currently scheduled for sentencing on July 14, 2016.
This case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorneys Elaine Y. Ramirez and Kyle T. Nayback are prosecuting the case.
Worcester Woman Sentenced for $3.6 Million Food Stamp FraudRead the Press Release
BOSTON – A Worcester woman was sentenced yesterday in U.S. District Court in Worcester in connection with a $3.6 million food stamp fraud scheme that she operated out of her Worcester convenience store.
Vida Ofori Causey, 46, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year and one day in prison, three years of supervised release and ordered to forfeit $3,512,906 to the government. The court ordered restitution to be determined after forfeiture is completed. In December 2015, Causey pleaded guilty to one count of conspiracy to commit SNAP benefits fraud, one count of SNAP fraud, and one count of money laundering.
The Supplemental Nutritional Assistance Program (SNAP), formerly known as the Food Stamp Program, administered by the U.S. Department of Agriculture (USDA), provides eligible households with government subsidies for certain foodstuffs, and allows holders to exchange their SNAP benefits for food at authorized retail food stores.
Causey was the owner and operator of J&W Aseda Plaza, a convenience store on Main Street in Worcester. From April 2010 to October 2014, Causey conspired with others to commit SNAP fraud by purchasing SNAP benefits from recipients rather than exchanging them for food. Causey purchased the benefits at a discounted value of approximately fifty cents for every SNAP dollar. By so doing, Causey caused the USDA to electronically deposit into a bank account she controlled the full face value of the SNAP benefits fraudulently obtained. To provide customers with cash for the SNAP benefits, Causey used the cash she received from customers wishing to utilize MoneyGram services. In order to cover those transactions, she transferred money from the account where her SNAP funds were electronically deposited into the account she used for her MoneyGram business.
During the course of the four-year conspiracy, Causey defrauded the USDA of approximately $3,638,900 in SNAP funds.
United States Attorney Carmen M. Ortiz; William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Wickliffe mail carrier indicted for worker's compensation fraudRead the Press Release
A federal grand jury returned a two-count indictment charging Nicole M. Gates of Wickliffe, with false statements and fraud to obtain federal employees’ compensation, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that Gates, a mail carrier employed by the U.S. Postal Service, falsely represented her physical limitations in connection with her receipt of workers’ compensation benefits.
Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the U.S. Postal Service Office of Inspector General.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Virginia Electrician Pleads Guilty to Attempting to Obstruct the IRSRead the Press Release
A Cumberland, Virginia, resident pleaded guilty to one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Richard Alex, a self-employed low-voltage electrician, admitted that he did not file a timely or valid tax return for more than a decade. For tax years 1998 and 2000 through 2003, Alex filed a tax return on which he falsely claimed that he had not earned any income. Alex failed to file any tax returns for the 2004 through 2013 tax years, despite receiving income above the filing threshold each year, as well as numerous warnings and notices from the Internal Revenue Service (IRS).
According to court documents, Alex attempted to conceal his assets and income to prevent the IRS from collecting his unpaid taxes. Starting in 2004, Alex used bank accounts held in the names of nominees to receive income he earned from dispatch companies for subcontract work. Alex also provided false information to a tax return preparer for the purpose of preparing federal tax returns for Alex’s nominee business, Cole Data Services.
Alex’s sentencing hearing is scheduled for Oct. 5. He faces a statutory maximum sentence of three years in prison. Alex also faces financial penalties and a term of supervised release.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and thanked the U.S. Attorney’s Office for the Western District of Virginia for their assistance, as well as Trial Attorney Sean Beaty of the Tax Division and Assistant U.S. Attorney C. Patrick Hogeboom, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
U.S. Attorney Ortiz Announces Creation of the Office of Public Affairs and External EngagementRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today the creation of the Office of Public Affairs and External Engagement (OPAEE). The new executive level Office will be led by Christina DiIorio-Sterling who Ortiz appointed as Chief.
“I am thrilled to announce the creation of the Office of Public Affairs and External Engagement,” said U.S. Attorney Ortiz. “Effective public communication and active community engagement are critical to the success of our public safety mission. OPAEE bridges the gap between the courtroom and the public, enhancing the Office’s ability to anticipate, respond and provide assistance to the public and media.”
During Ortiz’s tenure, the U.S. Attorney’s Office has worked to increase public safety through expanded community outreach and engagement. Among other things, Ortiz’s Office has been in local communities fostering communication and positive messaging to youth through the Your Future, Your Decision program in schools. The Office has also led monthly roundtables with the BRIDGES Collaborative (Building Respect in Diverse Groups to Enhance Sensitivity) and expanded outreach efforts to address discrimination in underserved communities. The Office has also become a leader in strategic planning for the successful reintegration of formerly incarcerated individuals helping support their efforts to lead successful and productive lives upon release.
The OPAEE will enhance the efficiency and effectiveness of these efforts by housing them together in a single executive-level unit led by a member of Ortiz’s senior management team. It will also enhance relationships with the law enforcement community by offering training on emerging trends of criminal activity and officer safety, as well as partnership for grant funding. Finally, it will oversee the work of the Office’s skilled and dedicated victim witness coordinators, who provide critical assistance to victims and witnesses in federal cases that range from white collar crime and terrorism to child exploitation and human trafficking.
As Chief of the OPAEE, DiIorio-Sterling, who will continue to serve as the U.S. Attorney’s Office primary spokesperson and advisor to the U.S. Attorney, will supervise a professional staff of public information officers, community relations coordinators, outreach specialists, victim witness advocates, and reentry and law enforcement engagement staff. She will also oversee policymaking and long-range planning in communications strategy, victim witness matters, outreach programs, effective prevention and reentry programs, and cooperative relationships with law enforcement partners.
“I am confident that the OPAEE will enable the U.S. Attorney’s Office to enhance our work both inside and outside of the courtroom,” said U.S. Attorney Ortiz. “Our staff of experienced and dedicated professionals with expertise in media relations, law enforcement coordination, and victim-witness services, will work cooperatively with legal colleagues and law enforcement partners in our common pursuit of justice for all Americans.”