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29 July 2016
Jefferson County Schools HR Director and Former Hueytown Middle School Principal Indicted on Federal Child Enticement and Child Pornography ChargesRead the Press Release
BIRMINGHAM – Jefferson County Schools’ human resources director and former Hueytown Middle School principal now faces federal charges of enticing a minor and receiving and possessing child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger Stanton, Tuscaloosa Police Chief Steven D. Anderson and Hueytown Police Chief Chuck Hagler.
A federal grand jury on Tuesday returned a four-count indictment charging BRETT WILLIAM KIRKHAM, 40, of Tuscaloosa, with child enticement and receipt and possession of child pornography between 2008 and 2016. The indictment was unsealed Thursday. Kirkham is schedule for arraignment in federal court on Aug. 11.
The maximum penalty for child enticement is life imprisonment and a fine of $250,000; the maximum penalty for each count of receiving and possessing child pornography is 20 years in prison and a $250,000 fine.
The FBI, Tuscaloosa Police Department and Hueytown Police Department investigated the case, which Assistant U.S. Attorneys Jacquelyn Hutzell and John B. Ward are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Jefferson County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
St. Louis, MO – James Bowen, Pevely, MO, pled guilty to charges involving his production, receipt and possession of child pornography between January 1, 2014, and February 29, 2016.
According to court documents, Bowen had illegal sexual contact with a minor under the age of twelve in 2014, and took approximately 30 to 40 photographs of her in various stages of undress. During the investigation of Bowen’s computers, law enforcement found over 5,288 images of child pornography and 810 videos of child pornography. Many of these images and videos of child pornography were of minor children under the age of twelve.
Bowen pled guilty to one felony count each of production, receipt and possession of child pornography before United States District Judge Ronnie L. White, in St. Louis. Sentencing has been set for October 26, 2016.
Production of child pornography carries a penalty range of 15-30 years in prison, receipt of child pornography carries a range of 5-20 years in prison and possession carries a maximum penalty of 20 years in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated the Federal Bureau of Investigation, the St. Louis County Police Internet Crimes Against Children Task Force and the Pevely Police Department. Assistant United States Attorney Colleen Lang is handling the case for the U.S. Attorney's Office.
Holley English Teacher Arrested, Charged with Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Steven Choi, 41, of Rochester, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The receipt of child pornography charge carries a minimum sentence of five years in prison and a maximum of 20 years, while the possession of child pornography charge carries a maximum sentence of 10 years in prison.Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, the FBI Child Exploitation Task Force identified the defendant accessing child pornography online. A forensic examination of that computer recovered sexually explicit photographs of prepubescent girls. Choi is an English teacher with the Holley Central School District.
The defendant made an initial appearance today before U.S. Magistrate Judge Jonathan Feldman. He is due back in federal court for a status hearing on August 12, 2016 at 10:30 a.m.
The criminal complaint is the culmination of an investigation by Special Agents of Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, U.S. Immigration and Customs Enforcement-Homeland Security Investigations, and the Greece Police Department.
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.Gibsonton Couple Sentenced to More That Five Years on Stolen Identity Refund Fraud ChargesRead the Press Release
Tampa, Florida – United States District Judge Elizabeth A. Kovachevich today sentenced Ynessa Brown and Thelonius Robertson, both of Gibsonton, to 61 months in federal prison for conspiring to commit tax fraud and aggravated identity theft. At sentencing, Robertson and Brown were ordered to make restitution to the IRS in the amount of $673,398. In addition, a forfeiture money judgment in the amount of $767,398 was entered, representing the total proceeds of their fraud conspiracy.
According to court documents, from January 2012 through June 2013, Brown and Robertson possessed and used stolen identities, including those of deceased persons, to electronically file fraudulent tax returns with the IRS through an Internet service provider in Brown’s name. Many of the false tax returns were filed jointly, and in many cases, one or both of the victims were deceased. Items related to these false returns and refunds, including $94,000 in cash, was seized during a search of Brown’s residence in June 2013.
From these fraudulently filed tax returns, Brown and Robertson directed the tax refunds onto unauthorized debit cards, many in other people’s names, and often to H & R Block Emerald cards, which were sent to either their address, the addresses of friends and family, and/or to vacant addresses. Brown and Robertson used these refunds to purchase merchandise or to make cash withdrawals, mostly from Fifth Third bank ATMs.
This case was brought as part of an initiative dedicated to combating the growing problem of identity theft and the fraudulent filing of electronic tax claims. It was investigated by the Hillsborough County Sheriff’s Office and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Former Utz Quality Foods Vendor Pleads Guilty to $1.4 Million False Invoice & Kickback SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the owner/operator of a former Utz Quality Foods, Inc. supplier has pleaded guilty to charges that he defrauded Utz out of approximately $1.4 million.
Jonathan Haas, age 45, of Easton, Pennsylvania, the former owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, pleaded guilty today before United States Magistrate Judge Susan E. Schwab in Harrisburg to wire fraud.
Haas and Kevin Myers, age 38, formerly of Abbottstown, PA, and the former Director of Purchasing for Utz, were charged in June of this year with the one count wire fraud Information. The Information was filed against Myers and Haas pursuant to plea agreements they executed with the government. Myers entered his guilty plea to the wire fraud count before Magistrate Judge Schwab on Tuesday.
Between 2007 and 2014 Haas Packaging & Design supplied Utz with shelving and packaging products. During the guilty plea proceeding Haas admitted he and Myers defrauded Utz between 2010 and 2014 by Myers’ preparation of bogus purchase orders and Haas’ submission of false invoices against the phony purchase orders for packaging product Utz never received. After Myers approved Haas’ false invoices for payment, Haas would kick back a portion of Utz’s payment to Myers.
The Information alleges Haas received approximately $1,474,765 from Utz and from that amount Haas paid Myers approximately $651,000. Haas’ plea agreement requires the court to determine the actual loss amount and the amount of restitution to be paid Utz.
Haas also admitted he and Myers attempted to conceal some of the kickbacks Haas paid Myers as payments for fictional consulting services. To facilitate the ruse Myers opened up a bank account under the name of “Myers Packaging Consulting,” a non-existent, paper entity.
The specific wire fraud charge relates to an alleged interstate wire transmission of a $26,000 Haas check into a Myers Packaging Consulting bank account in January 2014.
The government is seeking forfeiture of approximately $1.4 million from the defendants as illegal proceeds of the scheme.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. The case 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.
The maximum penalty 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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Former President of Guatemalan Soccer Federation Pleads Guilty to Racketeering and Corruption ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Brayan Jiménez, the president of the Guatemalan soccer federation (FENAFUTG) from 2009 to 2015, pleaded guilty to racketeering conspiracy and wire fraud conspiracy in connection with his receipt of bribes in exchange for the awarding of contracts for the media and marketing rights to FIFA World Cup qualifier matches, and for authorizing certain “friendly” matches played by the Guatemalan national soccer team. Jimenez also agreed to forfeit $350,000. At sentencing, Jiménez faces a maximum sentence of 20 years for each count. Today’s plea proceeding took place before United States Magistrate Judge Robert M. Levy.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, Jiménez negotiated and accepted bribes totaling hundreds of thousands of dollars in exchange for his agreement to exercise his influence as the president of FENAFUTG to award contracts to Media World, a Florida sports marketing company, for the media and marketing rights to the Guatemalan national soccer team’s home World Cup qualifier matches for the 2018 and 2022 editions of the World Cup. Over a period of years, Media World transmitted these bribes from its U.S. bank accounts to the defendant and a co-conspirator, often using intermediaries in the United States and Guatemala.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Paul Tuchmann, Nadia Shihata, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
BRAYAN JIMÉNEZ
Age: 62
Nationality: GuatemalaE.D.N.Y. Docket No. 15 CR 252 (S-1)
Former Park Tudor coach sentenced in sexual coercion caseRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a former Park Tudor School coach and teacher after his conviction for coercion and enticement of a minor to engage in illegal sexual activity. Kyle M. Cox, 31, Fishers, was sentenced to 168 months (14 years) imprisonment by U.S. District Judge Larry J. McKinney.
"Mr. Cox held a position of trust and authority over our young victim," said Minkler. "He gradually groomed her over time to trust him and then exploited her for his own sexual gratification. Protecting our youth from predators is a priority and a responsibility we hold in high regard. Schools should be places of safety for children where they can grow, learn, and make mistakes without falling prey to teachers or coaches who turn their innocence into illegal sexual opportunity. "
Cox was a teacher of child victim 1 (CV1) beginning in the fall of 2015. The two began talking regularly through text messaging and other social media outlets. Their conversations began innocently enough discussing basketball, classroom subjects, and school. Cox soon gave her a role on the basketball team he coached and soon the messaging became inappropriately sexual in nature.
Cox began conversing with CV1 via texts and Instagram, describing sexually explicit conduct. Cox persuaded CV1 to send him sexually explicit images of herself and he would comment favorably about them. He told CV1 that he masturbated to the images and videos she sent him. He also sent her a picture of his genitalia. Cox continued his illegal communications with CV1 through social media on Snapchat where Cox's user name was "Bigsilkysmooth."
Over the months that Cox enticed and coerced CV1, he devised a plan to bring CV1 to his family’s home in Fishers so that he could have sexual contact with her while his wife and daughters were out of town. The meeting never took place because Cox’s intentions were discovered by CV1’s parents in the days before the planned sexual misconduct.
Once Cox realized that his criminal behavior had come to light, on December 15, 2015, Cox tried to persuade CV1 to lie about their communications so that he could avoid criminal responsibility for his actions. Cox wanted CV1 to falsely claim that she created both sides of the text message conversation, when he knew that was not true. Cox told CV1 we would be in "a lot of trouble" if she told the truth about what had occurred. CV1 responded she could not lie. Cox implored CV1 to make sure that he didn't go to jail.
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated "the FBI will continue to partner with other law enforcement agencies to protect children from individuals that prey upon them".
“I applaud the efforts of the US Attorney’s Office and our detectives on the successful prosecution of Mr. Cox,” said IMPD Chief Troy Riggs. “This case serves as a wake-up call for all parents to monitor their child’s social media activity to prevent further victimization of our youth. Those that use their position to exploit our children can expect to be vigorously investigated.”
Cox was remanded to the custody of the United States Marshal Service. He will begin serving his sentence at the Bureau of Prisons in the very near future.
This case was investigated by the Marion County Prosecutors Office, Federal Bureau of Investigation and Indianapolis Metropolitan Police Department.
According to Assistant United States Attorneys Steven D. DeBrota and Kristina M. Korobov, Cox must serve fifteen years of supervised release following his term of imprisonment.
Former Kearney Probation Officer Convicted of Civil Rights ViolationsRead the Press Release
United States Attorney Deborah R. Gilg announced that Thomas Peterson, age 57 of Kearney, Nebraska, was convicted by a federal jury of four counts of violating the civil rights of female probationers under his supervision and one count of lying to the FBI when he submitted to an interview about the matter. Peterson is facing up to nine years in prison. The case was heard before Senior United States District Judge Richard Kopf.
Evidence introduced at trial established that Peterson was a state probation officer with the District 9 probation office in Kearney. He supervised a caseload made up of offenders in need of intensive supervision. The jury heard evidence that from approximately 2010 through January of 2014, Mr. Peterson subjected four female probationers to unsolicited and non-consensual sexual contact. The jury also heard from three other women who had been supervised by Mr. Peterson who reported sexually charged advances or comments from Mr. Peterson but which did not progress to the level of sexual contact. The jury found that Peterson had violated the civil rights of the four probationers by intruding into their constitutional rights to bodily integrity. Sentencing is set for October 20, 2016.
This matter was investigated by the Federal Bureau of Investigation.
Former Head of Foundation Sentenced to 20 Months in Prison for Bribing Then-Ambassador and President of United Nations General AssemblyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SHIWEI YAN, a/k/a “Sheri Yan,” the co-founder and former chief executive officer of the Global Sustainability Foundation, was sentenced in Manhattan federal court today to 20 months in prison for paying more than $800,000 in bribes to John W. Ashe (“Ashe”), the late former Permanent Representative of Antigua and Barbuda (“Antigua”) to the United Nations (“UN”) and 68th President of the UN General Assembly. Yan pled guilty in January 2016, and was sentenced today by U.S. District Judge Vernon S. Broderick.
U.S. Attorney Bharara stated: “As she admitted in court at her guilty plea, Shiwei Yan bribed the President of the UN General Assembly with hundreds of thousands of dollars to further private business interests. For her role in corrupting the United Nations, Yan will serve time in a federal prison.”
According to the Complaint, Superseding Information, information presented in connection with sentencing, and other publicly available materials:
Starting in approximately April 2012, YAN, along with co-defendant Heidi Hong Piao, a/k/a “Heidi Park” (“Piao”), agreed to and did arrange for more than $800,000 in bribe payments to Ashe in exchange for official actions by Ashe and one or more other Antiguan officials to benefit several Chinese businessmen. Piao also pled guilty for her participation in the scheme, but has not yet been sentenced.
The initial bribe payment arranged by YAN and Piao was a $300,000 payment on behalf of a Chinese media executive referred to as “CC-1” in the Complaint. In exchange for this payment, Ashe agreed to “start the conversations” with Antiguan officials, including the then-Prime Minister, concerning CC-1’s interests. With YAN’s knowledge, Ashe shared a portion of the bribe payment with one or more Antiguan officials. YAN also requested and received an official appointment from Ashe as an adviser.
In August 2013, YAN and Piao began paying Ashe approximately $20,000 per month, purportedly for his forthcoming service as the “Honorary Chairman” of a non-governmental organization, the Global Sustainable Development Foundation, later known as the Global Sustainability Foundation (“GSF”). GSF was founded by YAN and Piao and purported to promote the UN’s sustainable development goals. YAN sent these monthly payments from a Chinese company she operated to personal accounts of Ashe.
In September 2013, Ashe formally began his one-year term as President of the UN General Assembly. YAN and Piao thereafter arranged for another Chinese businessman, referred to as “CC-2” in the Complaint, to send Ashe $100,000. Approximately one month after this payment, YAN arranged for Piao to travel with Ashe and CC-2 to meet with Antiguan officials about a business deal for a Chinese security company (the “Chinese Security Company”) affiliated with CC-2. After YAN sent Ashe another $100,000, the government of Antigua signed a “memorandum of understanding” with the Chinese Security Company.
YAN and Piao also arranged for ASHE to be paid $200,000 in exchange for attending a private conference in China in Ashe’s official capacity, hosted by a Chinese real estate developer identified as “CC-3” in the Complaint.
During the scheme, YAN and Piao also arranged for Ashe to receive tens of thousands of dollars in custom suits and clothes.
In imposing sentence, Judge Broderick said, “To those bent on perverting decision-making” through bribery, “this simply will not be tolerated…there are consequences to these actions.”
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YAN, 60, a naturalized United States citizen who resided principally in China prior to her arrest, was charged in October 2015 along with Piao, Francis Lorenzo (then-Deputy Permanent Representative of the Dominican Republic to the UN), Ashe, Ng Lap Seng, and Jeff C. Yin. Piao and Lorenzo subsequently pled guilty to bribery, money laundering, and other charges. Charges against Ng Lap Seng and Jeff C. Yin, who are scheduled to proceed to trial on January 23, 2017, remain pending, and they are presumed innocent unless and until proven guilty.[1]
In addition to her prison term, YAN was sentenced to two years of supervised release, was fined $12,500, and was ordered to forfeit $300,000.
U.S. Attorney Bharara praised the work of the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, which jointly conducted this investigation, and noted that the investigation is ongoing.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal, Janis M. Echenberg, and Douglas S. Zolkind are in charge of the prosecution.
[1] Charges against Ashe were dismissed following his death in June 2016.
Former Daycare Owner Sentenced for Failing to Pay $891,000 in TaxesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of two daycare businesses in Parkville, Mo., and Platte City, Mo., was sentenced in federal court today for failing to pay $891,572 in payroll and other taxes to the Internal Revenue Service.
Lynn Jordan, 47, of Parkville, Mo., was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Jordan to pay $891,572 in restitution.
On Feb. 22, 2016, Jordan pleaded guilty to failing to pay over taxes to the IRS. Jordan operated daycare businesses at two locations. The first daycare business, Growing Places, Inc., in Parkville, opened in 1999 and closed in 2011, after which Jordan opened South Platte Early Educational Center, LLC, using the same business location, clients, assets, employees, etc. Jordan closed this business in 2012. The second daycare business, Growing Places Platte City, Inc., in Platte City, opened in 2006 and closed in 2009, after which Jordan opened GPPC, Inc., using the same business location, clients, assets and employees, but with a different employer identification number. She did this because she was having problems paying business expenses, owed a lot of money to the IRS and needed a fresh start. Jordan closed this business in 2010.
Jordan failed to pay over to the IRS approximately $891,572 in employment taxes withheld from her employees paychecks from 2009-2012. Instead, she used the money to pay for her own personal expenses and expenses of her family.
From 2009 to 2012, Jordan withheld employment taxes from her employees’ paychecks totaling $211,704. But Jordan failed to pay over the trust fund taxes she collected from her employees to the IRS. Jordan also failed to pay over the employer’s portion of Social Security tax and Medicare tax from 2009 to 2012, totaling $123,906. Additionally, Jordan failed to pay over employment taxes from 2004 to 2008 totaling $506,588. She also failed to pay over federal unemployment taxes from 2004 to 2012 totaling $22,294. In addition to the payroll taxes, Jordan failed to file tax returns for three years from 2009 to 2012. The balance due on those tax returns totals $27,079.
During this time, Jordan spent a total of $320,738 on a large number of personal expenses from the business bank accounts. Jordan withdrew more than $150,000 in cash and paid more than $50,000 on the mortgage of her personal residence from the business bank accounts. She made large ATM withdrawals and personal charges, including for lunches, salons, manicures, pedicures, travel, credit card and loan payments, checks and transfers to her personal bank accounts (in addition to her paychecks), retail stores, vehicle expenses, gas station purchases, clothing stores, medical and health expenses, restaurants, travel, expenses related to her children and credit score companies.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Federal Grand Jury Indicts Former Midland Bookkeeper in Connection with Embezzlement and Tax Evasion SchemeRead the Press Release
In Midland, a former bookkeeper faces federal charges in connection with an alleged scheme to steal over $2 Million from a local businessman announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division; and, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
A twelve-count federal grand jury indictment returned today charges 51–year-old Kimberley Dale Boyce of Midland with three counts of mail fraud; three counts of wire fraud; three counts of engaging in monetary transactions with criminally derived funds; and, three counts of tax evasion.
The indictment alleges that over a two-year period beginning in February 2012, Boyce implemented a scheme involving mailed documentation and wire transfers to syphon money from a Midland County business owner’s bank accounts and place it into bank accounts which she controlled. In addition, the indictment alleges that Boyce failed to accurately report to the Internal Revenue Service her actual taxable income—totaling more than $2.5 million--for tax years 2012, 2013, and 2014
This morning, Boyce surrendered to federal authorities. Her bond was set at $50,000 unsecured. Upon conviction, Boyce faces up to 20 years imprisonment for each wire and mail fraud count; up to ten years imprisonment for each money laundering count; and up to five years imprisonment for each tax evasion count.
This case was investigated by the FBI and IRS-Criminal Investigation. Assistant United States Attorney William F. Lewis is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Elk Grove Man Sentenced to Federal Prison for Identity TheftRead the Press Release
SACRAMENTO, Calif. —Joseph Daniel Ryan, 21, of Elk Grove, was sentenced today to two years and eight months in prison for bank fraud and aggravated identity theft in the execution of a fraud scheme, Acting United States Attorney Phillip A. Talbert announced.
Ryan is the last of three defendants to be sentenced for this scheme that used stolen identities of Elk Grove postal customers to apply for debit and credit cards and obtain cash, goods, and services. Ryan pleaded guilty to the charges on March 11, 2016.
According to court documents, between October 1, 2014, and February 12, 2015, Ryan and Elk Grove residents Leonard A. Velasco, 24, and Keri Southwood, 22, were involved in a scheme to steal U.S. mail by damaging or destroying U.S. letter boxes and neighborhood cluster boxes. The defendants used the stolen mail to gather financial and personal identification information for purposes of fraud.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail, postal property and complex financial crimes committed against the public and the Post Office.”
Robert M. Lehner, Chief of Police for the City of Elk Grove stated: “We would like to thank the US Postal Inspectors’ Office, and the US Attorney's Office, for vigorously prosecuting the individuals involved in the mail theft cases from Elk Grove. Hopefully, the arrests and sentencing of these three suspects will send a clear message to others that these types of crimes will not be tolerated in our community.”
According to court documents, Ryan and his co-defendants possessed stolen U.S. mail of over 1,000 victims and over 30 credit cards in victims’ names. As a result of the destruction of postal receptacles, customers suffered the loss of mail and mail services and the Postal Service suffered loss as well.
All three defendants pleaded guilty. On March 18, 2016, Velasco was sentenced to two years and six months in prison. On August 25, 2015, Southwood was also sentenced to two years and six months in prison. Each defendant was ordered to pay full restitution to all victims, including $6,526 to the U.S. Postal Service for repairs to U.S. Postal Service receptacles.
This case was the product of an investigation by the United States Postal Inspection Service and the Elk Grove Police Department with assistance from the United States Postal Inspection Service’s Narcotic and Economic Crimes Investigations Task Force (NECI). NECI is a partnership between local and federal law enforcement to combat theft and unlawful use of the U.S. Mail. The Placer County District Attorney’s Office and Sutter County Sheriff’s Office have each dedicated law enforcement personnel to the task force. Assistant United States Attorney Michelle Rodriguez prosecuted the case.
Eagle Butte Man Charged with Multiple CountsRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for two counts of Assault with a Dangerous Weapon, Assault by Strangulation and Suffocation, Assault Resulting in Substantial Bodily Injury to an Intimate Partner, Child Abuse, and Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Allen Garreau, age 32, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 27, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 58 years in custody and/or a $1,500,000 fine, 18 years of supervised release, and $600 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 11, 2016, Garreau unlawfully assaulted his intimate partner with shod feet, as well as assaulted her by strangling and suffocating her. Garreau is charged with unlawfully assaulting an adult male and several officers while they were trying to arrest him. Finally, Garreau is charged with child abuse regarding two young children who were present on July 11, 2016.
The charges are merely accusations and Garreau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Garreau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assaulting SpouseRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Substantial Injury to an Intimate Partner.
Dion Blue Earth, Sr., age 30, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 26, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 20, 2015, Blue Earth unlawfully assaulted his spouse with shod feet, resulting in serious bodily injury.
The charges are merely an accusation and Blue Earth is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Blue Earth was released on bond pending trial. A trial date has not been set.
Dupree Man Charged with Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Ptan Clown, a/k/a P’tan Hoksila Clown, age 36, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 28, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 60 years in custody and/or a $3,000,000 fine, up to life of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 29, 2016, and June 8, 2016, Clown knowingly and intentionally distributed methamphetamine, a Scheduled II controlled substance.
The charges are merely accusations and Clown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Clown was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Department of Justice and EPA Announce $29 Million Settlement for Cleanup Work at Coastal Georgia Superfund SiteRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced that Honeywell International Inc. and Georgia Power Company have agreed to clean up the 760-acre saltwater marsh at the LCP Chemicals Superfund Site in Brunswick, Georgia. The settlement requires the companies to spend an estimated $28.6 million to remove and isolate contaminated sediments in the marsh and to monitor the long-term effectiveness of the work.
“We appreciate that these companies have stepped forward to remedy the contamination to which they and others have contributed,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “This settlement makes critical progress toward the remediation of the LCP Chemicals Superfund Site and will minimize risks to people and the environment posed by contamination in the marsh.”
“Back in the 1990s, this U.S. Attorney’s Office secured criminal convictions against six officers and employees of LCP Chemicals-Georgia Inc. who were responsible for dumping mercury and other hazardous chemicals into the waters of the United States,” said U.S. Attorney Edward J. Tarver for the Southern District of Georgia. “The combined sentences totaled over 21 years in prison. The cleanup of this Superfund Site is now in its third decade. I am pleased that Honeywell and Georgia Power have stepped forward to continue cleanup as we work towards fixing the environmental mess caused by other companies’ greed many years ago.”
“EPA is very pleased to reach a settlement ensuring funding for future cleanup costs to address the contamination of the site’s tidal marsh and creeks,” said Regional Administrator Heather McTeer Toney of EPA’s Southeast Region. “We are looking forward to ensuring that cleanup work at this site continues.”
Between 1919 and 1994, the LCP Chemicals site hosted a petroleum refinery, an electric power generation facility and various manufacturing operations, including a mercury cell chlor-alkali plant. These industrial activities led to widespread contamination of the site’s soil, groundwater, surface water and sediment with mercury, polychlorinated biphenyls (PCBs) and other hazardous substances. The site was placed on the federal Superfund list in 1996.
The cleanup work required by the settlement includes dredging and installing protective caps on portions of four tidal creeks, placing a layer of clean sediment on eleven acres of marsh and restoring areas disturbed by construction. The work is expected to reduce concentrations of mercury, PCBs, lead and polycyclic aromatic hydrocarbons in the marsh’s sediments.
Additionally, capping the contaminants in place will prevent them from moving throughout the marsh and contaminating its animal life. The settling parties will also monitor the remedy’s long-term effectiveness at reducing risks to human health and the environment.
EPA and potentially responsible parties, including Honeywell International Inc. and Georgia Power Company, began response work at the site in 1994. Since then, EPA has overseen the demolition of contaminated buildings, the dredging and excavation of 13 acres of marsh and the removal of contaminated soil and waste from the site’s upland areas. This settlement marks an important step in the remediation of the site’s tidal marsh and creeks, which comprise one of the three areas into which the site has been divided. EPA will address the site’s groundwater and upland areas in future actions.
The cleanup is being accomplished under the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund. The Superfund law protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s most hazardous waste sites and has responded to environmental emergencies, oil spills and natural disasters.
The public has the opportunity to submit written comments on the consent decree, which is subject to the 30-day comment period and final approval by the court. A copy of the consent decree is available at www.justice.gov/enrd/consent-decrees. The Justice Department also concurrently filed a complaint initiating the case that the consent decree resolves.
Department of Justice and EPA Announce $29 Million Settlement for Cleanup Work at Coastal Georgia Superfund SiteRead the Press Release
WASHINGTON—The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced that Honeywell International Inc. and Georgia Power Company have agreed to clean up the 760-acre saltwater marsh at the LCP Chemicals Superfund Site in Brunswick, Georgia. The settlement requires the companies to spend an estimated $28.6 million to remove and isolate contaminated sediments in the marsh and to monitor the long-term effectiveness of the work.
“We appreciate that these companies have stepped forward to remedy the contamination to which they and others have contributed,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “This settlement makes critical progress toward the remediation of the LCP Chemicals Superfund Site and will minimize risks to people and the environment posed by contamination in the marsh.”
“Back in the 1990s, this U.S. Attorney’s Office secured criminal convictions against six officers and employees of LCP Chemicals-Georgia Inc. who were responsible for dumping mercury and other hazardous chemicals into the waters of the United States,” said U.S. Attorney Edward J. Tarver for the Southern District of Georgia. “The combined sentences totaled over 21 years in prison. The cleanup of this Superfund Site is now in its third decade. I am pleased that Honeywell and Georgia Power have stepped forward to continue cleanup as we work towards fixing the environmental mess caused by other companies’ greed many years ago.”
“EPA is very pleased to reach a settlement ensuring funding for future cleanup costs to address the contamination of the site’s tidal marsh and creeks,” said Regional Administrator Heather McTeer Toney of EPA’s Southeast Region. “We are looking forward to ensuring that cleanup work at this site continues.”
Between 1919 and 1994, the LCP Chemicals site hosted a petroleum refinery, an electric power generation facility and various manufacturing operations, including a mercury cell chlor-alkali plant. These industrial activities led to widespread contamination of the site’s soil, groundwater, surface water and sediment with mercury, polychlorinated biphenyls (PCBs) and other hazardous substances. The site was placed on the federal Superfund list in 1996.
The cleanup work required by the settlement includes dredging and installing protective caps on portions of four tidal creeks, placing a layer of clean sediment on eleven acres of marsh and restoring areas disturbed by construction. The work is expected to reduce concentrations of mercury, PCBs, lead and polycyclic aromatic hydrocarbons in the marsh’s sediments.
Additionally, capping the contaminants in place will prevent them from moving throughout the marsh and contaminating its animal life. The settling parties will also monitor the remedy’s long-term effectiveness at reducing risks to human health and the environment.
EPA and potentially responsible parties, including Honeywell International Inc. and Georgia Power Company, began response work at the site in 1994. Since then, EPA has overseen the demolition of contaminated buildings, the dredging and excavation of 13 acres of marsh and the removal of contaminated soil and waste from the site’s upland areas. This settlement marks an important step in the remediation of the site’s tidal marsh and creeks, which comprise one of the three areas into which the site has been divided. EPA will address the site’s groundwater and upland areas in future actions.
The cleanup is being accomplished under the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund. The Superfund law protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s most hazardous waste sites and has responded to environmental emergencies, oil spills and natural disasters.
The public has the opportunity to submit written comments on the consent decree, which is subject to the 30-day comment period and final approval by the court. A copy of the consent decree is available at www.justice.gov/enrd/consent-decrees. The Justice Department also concurrently filed a complaint initiating the case that the consent decree resolves.
Cuban National Residing in Louisville on A Visa Found Guilty of Conspiring to Possess and Distribute Ten Kilograms of CocaineRead the Press Release
LOUISVILLE, Ky. – A Cuban National residing in Louisville, Kentucky on a Visa was convicted by a federal jury late yesterday, in United States District Court, on all charges including conspiring with others to possess with the intent to distribute cocaine, announced United States Attorney John E. Kuhn, Jr.
Following a three-day trial, a federal jury deliberated approximately three hours before finding Manuel Sile-Perez, 54, guilty of conspiring to possess with intent to distribute cocaine and aiding and abetting an attempt to possess with intent to distribute cocaine.
Sile-Perez was charged individually by federal Complaint on November 5, 2014, and charged by grand jury indictment with three co-defendants on December 2, 2014.
During the trial, the United States provided evidence of Sile-Perez’s role in the attempted purchase of cocaine for approximately $100,000 from an alleged California based supplier. The “supplier” was an FBI Inland Crackdown Allied Task Force Confidential Human Source (INCA CHS).
The CHS met with Sile-Perez and co-defendants Walter Elliot, Nathaniel Barbour and Roberto Remedios Faguagua (Remedios) at a storage business located on Preston Highway in Louisville, the agreed upon location where the supposed cocaine was stored. The meeting was captured on video tape.
Sile-Perez is scheduled to be sentenced by Chief District Judge Joseph H. McKinley JR., on October 27, 2016 in Louisville.He faces a sentence from five to forty years in prison for each count.
Assistant United States Attorney Larry Fentress prosecuted the case. The Federal Bureau of Investigation (FBI), with assistance from the California Department of Justice, conducted the investigation.
Construction Companies Pay Nearly $1.4 Million for Damage Caused by a Fire on the Wichita Mountains Wildlife RefugeRead the Press Release
Oklahoma City, Oklahoma – Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma, announces that BELL CONTRACTING, INC. AND REDLANDS CONTRACTING, LLC paid $1,398,967.84 to settle civil claims stemming from allegations that the companies negligently caused a fire that damaged the Wichita Mountains Wildlife Refuge in Comanche County, Oklahoma ("Refuge").
Bell Contracting, Inc. ("Bell") is a Missouri corporation that was founded in 2003. In July 2011, Bell entered into a contract with the Department of Transportation for a road improvement project on the Refuge. The project involved widening 2.58 miles of Ferguson Road, including widening the berm and extending the box culverts. Bell subcontracted with Redlands Contracting, LLC ("Redlands"), an Oklahoma limited liability company, to work on the project.
On September 1, 2011, employees of Redlands were working on the project and were cutting rebar with a chop saw. The fire danger was extremely high and there was a burn ban in effect which included Comanche County where the Refuge is located. The burn ban prohibited certain activities without necessary precautions being taken. Sparks from the chop saw ignited a fire which quickly spread and burned approximately 28,000 acres on the Refuge. The United States suffered resource damages and incurred fire suppression costs.
The United States alleged Redlands’ employees were negligent in failing to take precautions in cutting the rebar to prevent a fire from igniting and did not have means available to extinguish the fire once it was started. The United States also alleged that Bell’s employees were negligent in failing to supervise and monitor the work done by Redlands, and failed to institute measures to prevent or extinguish a fire.
In order to resolve the allegations brought by the United States, Bell and Redlands paid the United States $1,398,967.84.
In reaching this settlement, Bell and Redlands did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Department of Interior. The case was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Colorado United States Attorney John Walsh to Step Down Following Six Years of ServiceRead the Press Release
DENVER – After six years of service, United States Attorney John Walsh today announced plans to step down from his position effective midnight on Wednesday, August 10, 2016. Over those six years, U.S. Attorney Walsh has been a Colorado and national prosecutorial leader and an aggressive advocate of building strong relationships between federal, state and local law enforcement and between law enforcement and the community. He was appointed to his position by President Barack Obama and confirmed unanimously by the United States Senate, entering on duty August 10, 2010. He is the longest serving U.S. Attorney since the 1980s, and among the longest serving U.S. Attorneys in Colorado history.
“The men and women of the Colorado United States Attorney’s Office, along with their federal law enforcement partners, are unsung heroes who work quietly, fiercely and round-the-clock to do justice and to protect the people of the United States and of Colorado,” said U.S. Attorney Walsh. “The opportunity to work with these dedicated and talented professionals, and to work on their behalf to help further their great mission for our country and our wonderful state, has been the greatest professional honor of my life. And it has been an unexpected additional honor – for which my gratitude will be undying -- to have been given the chance by the Attorney General to work nationally as chair of her advisory committee on behalf of the unsung heroes in U.S. Attorneys’ Offices all over the country who have devoted themselves to that same great task.”
“U.S. Attorney John Walsh has served the people of the District of Colorado and the entire nation with extraordinary distinction,” said Attorney General Loretta Lynch. “For the past six years, John has protected our civil liberties, defended our national security, and aggressively and successfully prosecuted organized crime, drug cartels and gang violence. He played a key leadership role on the team that won a landmark $7 billion settlement against Citibank, securing millions for defrauded consumers in the largest settlement in the history of the Colorado U.S. Attorney’s office, and one of the largest settlements in the Justice Department’s history. He served as a co-chair of the department’s Residential Mortgage-Backed Securities Working Group, where he led efforts to root out fraud and abuse and hold institutions accountable for the kinds of misleading lending practices that helped cause the 2008 financial crisis. And he has been an outstanding leader of the Attorney General’s Advisory Committee – lending valuable insight and advice to the Justice Department as a whole. The people of Colorado, and the country, are safer thanks to John’s keen judgment, deep empathy, and unwavering fidelity to justice. I want to thank John for his exemplary service, and I look forward to all that he will accomplish in the years to come.”
As United States Attorney, Walsh was responsible for overseeing the work of the United States Attorney’s Office for the District of Colorado, which represents the United States in virtually all court matters, criminal or civil, in the United States District Court for the District of Colorado, and in cases from that Court before the United States Court of Appeals for the Tenth Circuit. These matters included criminal prosecutions of federal crimes, civil representation of the United States seeking damages and penalties against law violators, as well as representation of federal government agencies that have been sued. During Walsh’s tenure, the U.S. Attorney’s Office, working both on its own cases and with the Department of Justice and other U.S. Attorney’s Offices, concluded the largest federal penalty cases in Colorado’s history, collecting literally billions of dollars on behalf of American taxpayers and the United States Treasury.
A Commitment to Federal Partnership with State and Local Law Enforcement
During Mr. Walsh’s tenure, the United States Attorney’s Office redoubled its commitment to fostering a strong working relationship between federal law enforcement and state and local law enforcement, including:
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Working with the U.S. District Court, to expand federal law enforcement presence in Grand Junction and Durango, and to establish federal grand juries in both cities;
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Bringing federal law enforcement resources and support to local law enforcement in Southern Colorado, including Pueblo, on key law enforcement challenges;
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Helping to create a close partnership with Denver, Aurora, Lakewood and other Metro Area law enforcement agencies to create and support the Crime Gun Intelligence Center using cutting edge technology to identify, investigate, arrest and prosecute shooters;
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Expanding the Crime Gun Intelligence Center concept to Southern Colorado; and
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Helping to provide close federal support of local law enforcement efforts in cases of mass violence, including the Aurora Theater shooting and Planned Parenthood shooting.
A Commitment to Community Engagement and Outreach
Working with the U.S. Attorney’s Office team, U.S. Attorney Walsh brought an impassioned commitment to fostering law enforcement community engagement and outreach on many levels, including:
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In the wake of the Mother Emanuel Church shooting in Charleston, South Carolina, creating and sponsoring seminars around the state on “Protecting Houses of Worship,” attended by over 1,000 faith community leaders and state and local government and law enforcement leaders;
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Engaging in strong outreach efforts to address and combat hate crimes and civil rights violations against Colorado’s Muslim community and Sikh community;
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Forging a close partnership with the Southern Ute Indian Tribe and Ute Mountain Ute Indian Tribe and federal law enforcement to successfully reduce violent crime rates and other crimes on Colorado’s two Indian reservations; and
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Engaging in extensive outreach to the Latino and Spanish-speaking communities of Colorado; a fluent Spanish speaker, Walsh frequently made presentations to Spanish-speaking audiences, gave interviews to Spanish language media, and in 2014 joined with the Colorado AG’s office in entering into an agreement with the Mexican Consulate in Denver to protect the rights of Mexican nationals who are the victims of crime in Colorado.
A National Role for the U.S. Attorney’s Office for the District of Colorado
Mr. Walsh has been a dedicated advocate for Department of Justice and U.S. Attorneys’ Offices initiatives nation-wide and has worked to bring the great work of the U.S. Attorney’s Office for the District of Colorado into the national limelight. Those efforts have included:
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Serving as one of five national co-chairs appointed by the President to oversee the Residential Mortgage Backed Securities investigations dating from the country’s financial crisis, which included an unprecedented settlement with Citibank settlement of $7 billion – the largest settlement in the history of the Colorado U.S. Attorney’s Office, and at the time, the largest federal civil bank penalty in the nation’s history;
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Supporting and developing a strong national security and anti-terrorism program, resulting in the prosecution of Shannon Conley and other matters; and
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Navigating the complex and conflicting legal environment created by Colorado voters’ approval of marijuana legalization under state law, in partnership with Colorado State government and local law enforcement, with a commitment to protecting public safety.
In this role, Walsh has testified before both Senate and House Committees. He also has participated in White House events on multiple occasions, including a panel discussion in October 2015 with President Obama regarding bi-partisan efforts to reform the federal criminal justice system. In addition, on behalf of the Department, he conducted numerous interviews as a national Department representative with national news organizations.
In January 2015, then-Attorney General Eric Holder appointed Mr. Walsh to serve as Chair of the Attorney General’s Advisory Committee of U.S. Attorneys, stepping into the vacancy left by Loretta Lynch after she was nominated and then confirmed as Attorney General of the United States. In that capacity, he played a key leadership role among U.S. Attorneys nationally on a broad array of issues, including financial crimes, national security, the evolving marijuana landscape, as well as civil rights and anti-hate crime efforts, among others.
Notable Federal Criminal Prosecutions
These six years were also marked by the U.S. Attorney’s Office’s prosecution of notable high profile federal criminal cases. Those cases include:
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The Harold Henthorn murder case in Rocky Mountain National Park.
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The war-crimes related immigration case against Kefelegn Alemu Worku, who was responsible for killings during Ethiopia’s “Red Terror.”
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National Security related cases, including the case against Shannon Conley, and pending cases involving allegations of material support todesignated terrorist organizations, as well as the investigation and response to the case of three high school students who attempted to travel to Syria.
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Powerful anti-gang and anti-gun violence prosecutions in the Denver Metro Area, Colorado Springs and Pueblo in support of state and local law enforcement.
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Dozens of organized crime and cartel-related drug trafficking prosecutions, including:
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The indictment of 80 people in Metro Denver in Operation Double Trouble, where the defendants were indicted following two separate investigations into the distribution of cocaine, crack cocaine, and methamphetamine.Multiple weapons and nearly half a million in cash were seized.This was one of the largest drug busts in Colorado history.
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The indictment of 54 defendants involved in the Gangster Disciples and the Gonzales-Cepeva and Quintero drug-trafficking organizations, for illegally distributing cocaine, heroin, ecstasy and marijuana;
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Operation Chump Change, which resulted in multiple state and federal indictments of a large heroin distribution organization and the seizure of over 250 pounds of brown heroin, 25 pounds of cocaine and multiple vehicles;
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Operation Dark Angel, which resulted in the federal indictment of 22 methamphetamine traffickers and money launderers; and
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Operation Black Rhino, a case where 23 people from two related drug trafficking organizations were indicted for distributing cocaine and methamphetamine.
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The prosecution of the owners of Jensen Farms for distributing cantaloupe contaminated with listeria bacteria, which was responsible for dozens of deaths nationally.
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Cases against nurses stealing drugs from hospitals for their own use, including the cases against Kristen Parker and Rocky Allen.
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Cases involving the detonation of improvised explosive devices, including cases involving the NAACP office in Colorado Springs, Southwest Plaza Mall and the Colorado Mills shopping mall.
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Cyber-intrusion cases, including a denial of service attack on Larimer County Government as well as the hacking of Photobucket.
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Environmental prosecutions, including the case against executives of Executive Recycling, who illegally shipped hazardous electronic waste to China, while claiming to recycle it.
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Cases against doctors overprescribing opioid drugs, fueling addiction and overdose deaths of their patients.
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Complex financial and economic crime cases, including Ponzi schemes, mortgage fraud and investment fraud, as well as defrauding the IRS, including the Philip Lockmiller case in Grand Junction.
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Illegal distribution of “Spice” and other counterfeit drugs and diet supplements manufactured oversees, in countries including China.
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A broad range of sophisticated investigations and prosecutions of child exploitation cases, including production and/or possession of child pornography.
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Prosecution of assaults and murders committed by inmates at Colorado’s many federal prisons, including the ADMAX facility at Florence, Colorado.
Notable Civil Enforcement Actions
Since 2010, the United States Attorney’s Office in Colorado established itself as one of the premier affirmative civil enforcement offices in the country. Working with the Department of Justice’s Civil Division, and in partnership with other U.S. Attorneys’ Offices, the Colorado U.S. Attorney’s Office investigation, litigated and resolved many civil enforcement matters of national significance, recovering billions of dollars on behalf of the United States and victims of illegal conduct. Some of the more significant civil enforcement victories include the following cases:
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Investigation, negotiation and resolution of claims that the nation’s five largest mortgage servicers engaged in widespread abuses when servicing mortgages, such as by using thousands of “robo-signed” affidavits in foreclosure proceedings, culminating in a 2012 landmark $25 billion agreement;
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Investigation, negotiation and resolution of claims against GlaxoSmithKline that it failed to report safety data and used unlawful practices to promote prescription drugs such as Paxil, Wellbutrin, and Advair, resulting in a $3 billion settlement, the largest health care fraud settlement in U.S. history;
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Investigation, negotiation and resolution of claims against Citibank it engaged in fraud in securitizing and selling thousands of home mortgages leading up to the 2008 global financial crisis, resulting in a $7 billion settlement that included a record-setting $4 billion cash penalty, and relief for consumers valued at $2.5 billion;
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Investigation, negotiation and resolution of claims against , one of the nation’s largest dialysis providers, resulting in a global resolution totaling nearly $400 million to resolve claims that it had provided unlawful kickbacks to doctors;
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Investigation, negotiation and resolution of claims against MetLife ($123 million) and underwrote home mortgages insured by HUD despite knowing that the mortgages failed to meet HUD’s requirements; and
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Investigation, litigation and resolution of claims against Evercare Hospice and Palliative Care to resolve claims that it obtained Medicare reimbursement for hospice care even though it knew the patients were not terminally ill, resulting in settlement of $18 million.
In addition, the United States Attorney’s Office has greatly expanded the effectiveness of its efforts to collect restitution, fines and penalties from criminal defendants and civil violators. In the six years from 2005 to 2010, criminal collections totaled $19,759.148.68. In the six years since, 2011 to 2016 (to date -- partial year), criminal collections have totaled $59,885,634.79, over three times greater. Moreover, the United States Attorney’s Office’s Financial Litigation Unit has successfully pursued several sophisticated enforcement actions that were unprecedented in this office, including a fraudulent conveyance action, writs of execution for personal and real property, and nominee liens. These successes have resulted in the collection of millions of additional dollars for American taxpayers.
National Awards for Work of U.S. Attorney’s Office
As a result of these and other cases, since August 2010, the Department of Justice has awarded members of the U.S. Attorney’s Office for the District of Colorado with an unprecedented number of Department awards, including 11 Attorney General’s Awards (awarded for cases of national significance to the Department and the United States) and 21 Director’s Awards (awarded for cases of national significance among the U.S. Attorneys’ Offices).
Budget and Staffing Challenges Addressed
In managing the U.S. Attorney’s Office, Walsh worked diligently to help weather years of budget restrictions, including budget “sequestration,” and extended multi-year hiring freeze and a government shutdown that in combination left the U.S. Attorney’s Office down nearly 20 percent in staff. In 2014 to 2016, he worked to ensure the office bounced back and successfully returned to full strength.
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Mr. Walsh plans to return to the private practice of law in Denver after he steps down.
First Assistant Bob Troyer will become the Acting U.S. Attorney on Mr. Walsh’s departure.
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Citrus Heights Man Sentenced to 30 Years in Prison for Child ExploitationRead the Press Release
SACRAMENTO, Calif. — Jason S. Wymer, 44, of Citrus Heights, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 30 years in prison, to be followed by 25 years of supervised release for sexual exploitation of children, Acting U.S. Attorney Phillip A. Talbert announced.
On June 24, 2016, co-defendant Stormy M. Avers, 36, of Placerville, was sentenced on to 20 years in prison for sexual exploitation of children.
According to court documents, the case began when a parent accidentally texted a photo of her eight-year-old to a wrong number who turned out to be Wymer. Thinking he received the picture from a child, Wymer responded and began a dialog. The parent brought the cellphone to the FBI, and an undercover employee, pretending to be an eight-year-old child, continued the dialog with Wymer, whom investigators were subsequently able to locate.
Upon his arrest, law enforcement found photos of Wymer and Avers molesting a child, who was approximately three years old, in order to create child pornography. Avers had custody and control of the child at the time. On April 8, 2016, in his plea agreement, Wymer admitted to this conduct, and also to a separate instance of sexual exploitation of a four-year-old child in August of 2011. On March 25, 2016, Avers pleaded guilty to sexual exploitation of children.
“This case highlights the power of concerned citizens,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation Sacramento field office. “By immediately contacting the FBI, a parent provided valuable information that ultimately led to the identification of three individuals who abused toddlers to produce child pornography. We encourage the public to preserve any communication with a suspected predator and immediately reach out to law enforcement for help. Doing so protects your child and may stop sexual abuse of other children.”
A third defendant, Jolene Davis, 40, of Stockton, is charged with having participated with Wymer in the sexual exploitation of a child of whom she had control or custody. Davis is scheduled to appear for a status conference before Judge Burrell on August 12, 2016. The charges against Davis are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes against Children (ICAC) Task Force. ICAC is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Boscawen Woman Sentenced to Home Confinement for Social Security, Food Stamp, and Wire FraudRead the Press Release
CONCORD, N.H. – Bonita Kitson, 45, of Boscawen, New Hampshire, who pleaded guilty to one count of Social Security Fraud, two counts of Making False Statements, and one count of Wire Fraud on April 21, 2016, was sentenced today to two years of probation, including four months of home confinement, and was ordered to pay $28,788 in restitution, announced United States Attorney Emily Gray Rice.
According to the indictment, statements made in court, and other public records in the case, Kitson received Social Security disability benefits, Food Stamps, and Aid to the Permanently and Totally Disabled for over two years prior to her marriage in October 2010. Her husband also received Social Security disability benefits and Food Stamps before they married. They each continued to receive these benefits after they wed, but neither Kitson nor her husband reported their marriage or their shared residence to Social Security or to the New Hampshire Department of Health and Human Services as required. Instead, Kitson advised both agencies that she and her husband were merely friends. The marriage was not disclosed until October 2014, when Kitson advised Social Security that her husband passed away one month earlier as part of her application for a lump-sum death benefit.
Kitson’s marriage and shared living arrangement, if properly reported, would have significantly reduced the amount of Social Security disability benefits and Food Stamps she and her husband received, and would have disqualified Kitson from receiving Aid to the Permanently and Totally Disabled. Applicants for each of these benefits programs must have limited income and resources in order to qualify for assistance. The income of all members of a household is considered when determining an individual’s eligibility for benefits. As a result of concealing the marriage and shared residence, Kitson and her husband fraudulently received an additional $27,654 in disability benefits and Food Stamps, and Kitson received $1,134 in Aid to the Permanently and Totally Disabled to which she was not entitled.
Kitson was sentenced by United States District Court Chief Judge Joseph N. Laplante.
The case was investigated by the Social Security Administration’s Office of the Inspector General and the New Hampshire Department of Health and Human Services’ Special Investigations Unit, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Berkeley County man pleads guilty to unlawful possession of a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Thomas Dale Sims, Jr., 34, of Gerrardstown, West Virginia, pled guilty to unlawfully possessing a firearm in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Sims, who had previously been convicted of a misdemeanor crime of domestic violence, was discovered in possession of a 12 gauge shotgun in October 2015. He pled guilty to one count of “Possession of a Firearm by a Person Convicted of a Misdemeanor Crime of Domestic Violence.”
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bennington Man Sentenced on Drug and Firearm ChargesRead the Press Release
CONCORD – United States Attorney Emily Gray Rice announced that Rosaire Gauthier, 40, of Bennington, New Hampshire was sentenced in the United States District Court for the District of New Hampshire to 78 months in federal prison after pleading guilty to a felon-in-possession charge and 17 drug charges. Gauthier pleaded guilty to the charges on October 9, 2015.
According to documents on file with the court and statements made at his sentencing hearing, Gauthier sold oxycodone and other controlled substances to a confidential informant on 15 occasions between April 2011 and February 2012. A search of his residence in August 2014 resulted in the seizure of drugs, three loaded handguns, a loaded shotgun, a loaded rifle that had an extended magazine attached, three ballistic vests and $18,190 in cash. Gauthier was a convicted felon at the time and could not legally possess a firearm.
Gauthier was also sentenced to three years of supervised release after he completes his prison sentence. During the term of his supervised release, Gauthier’s behavior will be monitored by an officer with the United States Probation & Pretrial Services Office.
The case was investigated by the Manchester Police Department. The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in the investigation. The case was prosecuted by AUSA Debra Walsh.
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Barred Long Island Automobile Transportation Broker Sentenced to 30 Months in Prison for Mail FraudRead the Press Release
Earlier today in Central Islip, New York, Gregory Sclafani, an automobile transportation broker, was sentenced to 30 months’ imprisonment to be followed by three years of supervised release based on his March 31, 2016, guilty plea to mail fraud. The defendant was also ordered to pay his victims restitution. In 2011, the defendant was permanently enjoined from providing automobile transportation services in New York following a civil lawsuit filed by the New York State Attorney General’s Office in 2009.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
In announcing the sentence today, U.S. Attorney Capers stated, “The defendant’s scheme to victimize unsuspecting customers was particularly brazen in that it was executed while the defendant was permanently enjoined from engaging in the transportation brokerage business. He has now been held to account.” Mr. Capers extended his grateful appreciation to the United States Postal Inspection Service; United States Department of Transportation, Office of Inspector General; New York State Police; and the New York State Attorney General’s Office for their assistance in the case.
From 2007 until his arrest in 2014, the defendant made fraudulent representations to induce customers to use him as a broker for the long-distance hauling of their vehicles and then failed to deliver the services as contracted. When aggrieved customers complained, the defendant ignored the complaints and retained the customers’ money. Additionally, once in possession of the customers’ bank account information that had been provided for the services, the defendant made repeated unauthorized withdrawals from their bank accounts. In an effort to conceal the ongoing fraud and to thwart the defrauded customers’ attempts to obtain refunds, the defendant frequently changed the names of the brokerage companies he controlled and used aliases when speaking to the aggrieved customers.
The scheme victimized at least 100 individuals.
The sentencing proceeding was held before United States District Judge Denis R. Hurley.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant:
GREGORy SCLAFANI
Age: 64
Southampton, New YorkE.D.N.Y. Docket No. 14-CR-639 (DRH)
Attorney General appoints Carol Casto as United States AttorneyRead the Press Release
CHARLESTON, W.Va. – Attorney General Loretta E. Lynch has appointed Carol A. Casto as United States Attorney for the Southern District of West Virginia, effective today, July 29, 2016. Casto has served as Acting United States Attorney since January 1, 2016.
Casto was appointed by the Attorney General on an interim basis and will serve as the United States Attorney either until a Presidential appointment occurs, or for a period of 120 days after appointment by the Attorney General, whichever takes place earlier. If the Attorney General’s appointment expires without a Presidential appointment, the United States District Court for the Southern District of West Virginia may appoint a United States Attorney until the vacancy is filled.
Prior to taking office as Acting United States Attorney, Casto served as First Assistant United States Attorney from 2010 to 2015. From 1989 to 2010, Casto was an Assistant United States Attorney in the office’s criminal and civil divisions. Before joining the United States Attorney’s Office, Casto served as an Assistant Prosecuting Attorney for Kanawha County from 1983 to 1989.
Casto is a West Virginia native and an honors graduate of West Virginia University and the West Virginia University College of Law. She is admitted to practice law in the state of West Virginia, the United States District Courts for the Northern and Southern Districts of West Virginia, the United States Court of Appeals for the Fourth Circuit, and the Supreme Court of the United States
“I am honored by the trust and confidence of the Attorney General of the United States and the opportunity to continue serving the Southern District of West Virginia as its United States Attorney,” said Casto. “I am proud to continue to work with the dedicated attorneys and staff in my office and our law enforcement partners to maintain the safety of our communities by fighting drug crime and addiction, stopping corruption and fraud, and protecting our most vulnerable citizens. Together, we will continue the extraordinary work that the public deserves.”
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Attorney General Loretta E. Lynch Statement on Court of Appeals Ruling in North Carolina Voting CaseRead the Press Release
Attorney General Loretta E. Lynch released the following statement today after the ruling by the Fourth Circuit Court of Appeals in the North Carolina voting case:
“I am pleased that the Court of Appeals for the Fourth Circuit has struck down a law that the court described in its ruling as “one of the largest restrictions of the franchise in modern North Carolina history.” As the court found, this law was passed with discriminatory intent. It targeted African-Americans “with almost surgical precision” – imposing stringent ID requirements, reducing same-day registration and constraining out-of-precinct voting to place barriers between citizens and the ballot box. And it sent a message that contradicted some of the most basic principles of our democracy. The ability of Americans to have a voice in the direction of their country – to have a fair and free opportunity to help write the story of this nation – is fundamental to who we are and who we aspire to be. Going forward, the Department of Justice will continue our work to protect that sacred right for all.”
Anchorage Man Sentenced to 96 Months in Prison for Role in Drug Trafficking Conspiracy and Felon in Possession of FirearmsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Martin Ray Lewis, 49, of Anchorage, was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 96 months in prison for his role in a drug trafficking and money laundering conspiracy, followed by five years of supervised release. Lewis was also sentenced to 70 months in prison for being a felon in possession of firearms, followed by three years of supervised release. Both sentences are to be served concurrently.
On July 26, 2013, Lewis received a package that contained 110 grams of methamphetamine at a private mail box in Anchorage registered to him and another person. A previous package sent to the same mailbox contained 190 grams of heroin. Both of these packages were sent from California. Lewis' residence was searched by law enforcement immediately after he returned with the package and law enforcement found evidence of drug trafficking including packaging used in drug sales, smaller quantities of packaged methamphetamine, digital scales, and several drug smoking devices. Law enforcement also found six firearms. Lewis has a previous felony conviction that was punishable by more than one year imprisonment.
U.S. Attorney Loeffler commends the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigations, the Department of Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, for the successful investigation and prosecution of this case.
28 July 2016
“Pill Mill” Medical Director Sentenced to 3 Years in Federal Prison for Distribution of Oxycodone Without a Medical NeedRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced physician William Crittenden III, age 52, of Kensington, Maryland today to three years in prison, followed by three years of supervised release, for conspiring to distribute oxycodone and alprazolam, and eight separate counts of unlawfully distributing oxycodone. Crittenden was convicted by a federal jury on February 19, 2016, after an 11 day trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“State and federal authorities are working to shut down ‘pain clinics’ that are really just fronts for criminals who divert pharmaceutical drugs,” said U.S. Attorney Rod J. Rosenstein. “William Crittenden prescribed opioid drugs to people who had no medical need for the drugs. Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”
According to court documents and evidence presented at trial, co-defendants Michael Resnick, Alina Margulis and Gerald Wiseberg owned and operated Healthy Life, a purported pain management clinic, first in Owings Mills, Maryland, and later in Timonium, Maryland, from March 2011 until it closed on May 15, 2012. Both Healthy Life locations attracted large and unruly crowds. Customers caused disturbances outside the locations, used narcotics inside the clinic, and engaged in narcotics transactions in the parking lot. Over 80% of Healthy Life’s customers were from out of state.
Wiseberg interviewed and hired Crittenden to serve as one of the first medical directors at Healthy Life because Wiseberg believed that Crittenden would write narcotics prescriptions for customers without a legitimate medical need. Customers to Healthy Life paid at least $300 for an initial visit and at least $250 for all subsequent visits and the fees were collected upfront. Crittenden was paid $1,500 a day by the managers of Healthy Life, and received a total of $104,500 over just four months while he was engaged in the scheme. During this time, Crittenden knowingly provided prescriptions to individuals who were addicted to oxycodone and only wanted more pills to feed their addictions, and to individuals who wanted to sell the narcotic pills on the street. Crittenden knowingly provided prescriptions to Healthy Life customers even after their urinalysis results showed the presence of illicit substances such as cocaine and marijuana. Finally, Crittenden made false entries in patient files to make it seem as if he had conducted full physical exams on customers when in fact he had not.
Crittenden was the medical director of Healthy Life from April 2011 until his resignation in August 2011 when the Maryland Board of Physicians - the agency authorized to issue licenses to practice medicine in Maryland and to discipline licensees - initiated an investigation into Crittenden’s prescribing practices. This investigation ultimately led the Maryland Board of Physicians to suspend Crittenden’s medical license.
To maximize profits, prescribing physicians, including Crittenden, were encouraged: to prescribe the maximum amount of oxycodone to each customer; and to write prescriptions for 28-day cycles as opposed to 30-day cycles. Additionally, Margulis and Resnick handled complaints by Healthy Life customers who were unhappy with the prescriptions they received, particularly when a medical provider might prescribe less oxycodone than the customer wanted. In those instances, Margulis and Resnick would intervene and ask the prescribing medical provider to reconsider, knowing it would lead the provider to give the customer what the customer wanted.
Michael Resnick, a/k/a Michael Reznikov, age 55, and his wife, Alina Margulis, age 49, both of Brooklyn, New York, previously pleaded guilty to conspiracy to distribute oxycodone and alprazolam and were sentenced to three years in prison and a year and a day in prison, respectively. Margulis also pleaded guilty to money laundering, and Resnick also pleaded guilty to structuring currency deposits. Resnick and Margulis were also ordered to forfeit $280,000.
Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida, previously pleaded guilty and was sentenced to three years in prison for conspiring to distribute oxycodone and other drugs. Chief Judge Blake also ordered that Wiseberg forfeit $273,000.
United States Attorney Rod J. Rosenstein commended DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.
York Doctor Agrees to Pay $300,000 to Resolve Government Claims of Controlled Drug Law Civil ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dr. Walter Krajewski, a primary care doctor in York, Pennsylvania, has agreed to pay $300,000 over five years to settle allegations that he violated civil provisions of the federal Controlled Substances Act by pre-signing prescriptions that were later filled for 24,530 tablets of oxycodone that were medically unnecessary.
U.S. Attorney Peter Smith stated, “Working with the Drug Enforcement Administration (DEA), the U.S. Attorney’s Office will seek substantial civil penalties against providers and medical professionals who fail to manage controlled substances, such as oxycodone, safely, wisely and with the appropriate care.”
“We entrust doctors to medically care for ourselves and our family members. However, with that trust comes the responsibility of safeguarding prescriptions and writing them only when medically necessary,” said Gary Tuggle, the Special Agent in Charge of the DEA’s Philadelphia Field Division. “The DEA will remain vigilant in pursuing civil charges, as well as criminal charges where appropriate, against doctors that fail to comply with the requirements of the Controlled Substances Act.”
According to the investigation by the DEA, Dr. Krajewski repeatedly pre-signed blank prescriptions at his office practice from January 2014 to May 2015 and provided them to his office manager, allegedly enabling the prescriptions to be filled for 24,530 tablets of oxycodone that had no legitimate medical purpose and that were issued outside the usual course of Dr. Krajewski’s professional practice. Upon discovery, DEA determined that Dr. Krajewski’s office manager allegedly filled those 148 prescriptions of oxycodone because Dr. Krajewski pre-signed the prescriptions without completing the necessary drug and patient information at the same time.
Krajewski is a doctor of osteopathic medicine, specializing in family medicine. As a practitioner licensed to dispense controlled drugs, he is subject to requirements of the Controlled Substance Act as administered by the DEA. The U.S. Attorney’s Office and DEA contend that Dr. Krajewski’s pre-signing and providing the blank prescriptions for over a year to his office manager, resulting in oxycodone issued with no legitimate medical purpose and outside the usual course of his professional practice, amounted to civil violations of the Controlled Substances Act.
The settlement of the case resolves the matter without the filing of litigation.
As part of the settlement, Dr. Krajewski has agreed to pay $300,000, with an initial payment of $60,000 within 20 days of the date of the agreement and monthly installments of $4,000 for 60 months. The agreement includes penalty provisions in the event of any failure to comply with terms of the settlement.
Dr. Krajewski has changed his office protocol to prohibit pre-signing of prescriptions for controlled substances.
As part of the settlement, Dr. Krajewski also entered into a Memorandum of Agreement (MOA) with the DEA under which he agreed to comply with heightened compliance requirements for logging and reporting his prescriptions of controlled substances to the DEA, and DEA agreed to forgo administrative action against Dr. Krajewski subject to his compliance with the MOA’s terms and conditions. DEA has reported Dr. Krajewski’s conduct to the Pennsylvania Board of Medicine.
This matter was investigated by the Civil Division of the United States Attorney’s Office for the Middle District of Pennsylvania and the DEA and is assigned to Assistant United States Attorney Anthony D. Scicchitano.
Amy Schneider, Dr. Krajewski’s former office manager and her husband, Joseph Schneider were prosecuted criminally by the U.S. Attorney’s Office in 2015. Amy Schneider wrote prescriptions beginning in approximately January 2014 and continuing until May 2015 for herself and Joseph Schneider, who allegedly took the forms to pharmacies to be filled. The oxycodone tablets were then divided between Amy and Joseph Schneider. Some of the tablets were distributed to others.
Amy and Joseph Schneider were charged with conspiracy and distribution of oxycodone in a Criminal Information filed in December 2015. Amy Schneider was also charged with illegally using a Drug Enforcement registration to obtain a controlled substance. Joseph Schneider was charged with acquiring a prescription by fraud or forgery. Both defendants plead guilty in January 2016 and were sentenced by U.S. District Court Judge Sylvia H. Rambo in June 2016. Amy Schneider was sentenced to 30 months’ imprisonment, and Joseph Schneider was sentenced to 46 months’ imprisonment. Former Assistant United States Attorney Christy H. Fawcett prosecuted the case.
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Valencia man Who Caused $11 Million in Losses Related to Precious Metal Investment Scam Sentenced to over 11 Years in Federal PrisonRead the Press Release
LOS ANGELES – A businessman who defrauded more than 300 investors in a precious metal investment scam was sentenced today to 135 months in federal prison after pleading guilty to federal fraud and money laundering offenses in a case that caused victims to lose nearly $11 million.
Bruce Richard Sands Jr., 54, of Valencia, was sentenced by United States District Judge George H. Wu, who also ordered the defendant to pay $11,039,404 in restitution.
Today’s sentencing follows Sands pleading guilty in April to four counts of mail fraud, five counts of wire fraud and two counts of money laundering.
Sands owned Superior Gold Group, LLC and Superior Equity Group, LLC, which had offices in Santa Monica, West Hills and Woodland Hills. At times, the companies used an address in Irvine.
According to court documents, from about October 2007 through the end of 2010, the Superior Gold Companies solicited investments in precious metals and collectible coins. Individuals across the nation were solicited through national radio, television and Internet advertising.
Sands falsely told investors that the precious metals they paid for would be delivered to them directly or sent to their retirement accounts, when Sands knew that Superior Gold would not be purchasing or delivering the precious metals. Many investors never received the metals they purchased.
Sands induced more than 300 victims to invest approximately $24 million and to suffer losses of nearly $11 million while Sands funded his own lavish lifestyle and paid for his own personal expenditures, including payments on his home in Valencia, American Express bills, and luxury vehicles, including a Porsche, a Hummer and a Lincoln SUV.
“For more than three years, Sands operated a large-scale scheme that bilked investors, many of whom were retirees looking for a safe place to invest their money after the market crash of 2008,” said United States Attorney Eileen M. Decker. “This scheme caused a number of elderly victims to suffer substantial financial hardships, including having to sell homes and losing money that could have sent children to college. Today’s sentence accounts for the suffering of Sands’ victims.”
“Mr. Sands preyed on the elderly and trusting people around the United States, treating their hard-earned money like his personal ATM machine,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Investors in this case were defrauded through a series of false advertisements, which lent the appearance of legitimacy to the defendant’s scheme.”
The investigation of Sands was conducted by IRS Criminal Investigation, the United States Postal Inspection Service, the Federal Bureau of Investigation and the United States Secret Service. The Santa Monica City Attorney’s Office, which was involved in a civil lawsuit against Sands and Superior Gold, provided assistance.
"Investor fraud causes harm both to the individual investors who are victimized and to public confidence in the financial markets," says Robert Wemyss, Postal Inspector in Charge of the Los Angeles Division. "Mr. Sands violated the trust of his investors and he will now pay the price with a federal prison sentence. The United States Postal Inspection Service will continue to work with its partners in law enforcement to bring such criminals to justice."
“This case exemplifies the high level of coordination and cooperation by the agencies involved to target perpetrators who are victimizing our community in a significant way,” said L. Robert Savage, U.S. Secret Service Special Agent in Charge of the Los Angeles Field Office.
This case was prosecuted by Assistant United States Attorneys Sarah J. Heidel and Byron J. McLain of the Major Frauds Section.
United States Sues Former Executives of Government Contractor for Making False Claims in Connection with Reconstruction Contracts in Afghanistan and IraqRead the Press Release
The Justice Department announced today that the government has filed suit under the False Claims Act against Derish M. Wolff and Salvatore J. Pepe, respectively the former CEO and CFO of Louis Berger Group Inc. (LBG), for conspiring to overbill the U.S. Agency for International Development (USAID) and other government agencies for costs incurred performing reconstruction contracts in Afghanistan, Iraq, and other countries, the Justice Department announced today. LBG is based in East Orange, New Jersey.
“Those who do business with the U.S. government should expect appropriate consequences if they do not deal fairly,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As this case demonstrates, the government will hold both corporate entities and individuals accountable if they misuse taxpayer funds.”
The government’s complaint alleges that Wolff and Pepe designed and directed various accounting schemes that resulted in LBG billing the government for indirect overhead costs at inflated rates. According to the complaint, for example, Wolff and Pepe shifted portions of salaries of LBG executives and accounting personnel from contracts paid for by foreign and state governments and private entities to contracts paid for by the United States. Wolff and Pepe allegedly certified the false rates and submitted them to the government in annual financial reports.
The United States resolved criminal and civil claims against LBG arising from this conduct on Nov. 5, 2010. At that time, LBG entered into a Deferred Prosecution Agreement and paid $50.6 million to resolve False Claims Act allegations. Pepe pleaded guilty on that date to a charge of conspiracy to defraud the government and was later sentenced to one year probation. Wolff pleaded guilty to the same charge on Dec. 12, 2014, and was later sentenced to 12 months of home confinement and required to pay a $4.5 million fine for his role in the scheme. The complaint filed today asserts civil claims against Wolff and Pepe.
The United States filed its complaint in a lawsuit originally brought under the qui tam, or whistleblower, provisions of the False Claims Act, by Harold Salomon, an LBG accountant from March 2002 to October 2005. Under the Act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is also entitled to intervene in the lawsuit, as it has done in this case.
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Maryland, with investigative support from the FBI, USAID’s Office of Inspector General, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
“I applaud the dedication of USAID-OIG special agents, along with special agents of the FBI and the Defense Criminal Investigative Service,” said USAID Inspector General Ann Calvaresi Barr. “Their joint investigative work has helped the Justice Department take action against those responsible and signals our continuing commitment to protecting public funds from fraud, waste, and abuse.”
The case is United States ex rel. Harold Salomon v. Derish M. Wolff & Salvatore J. Pepe, Civ. No. RWT-06-1970 (D. Md.). The claims asserted against Wolff and Pepe are allegations only to the extent not admitted in their criminal pleas, and there has been no determination of civil liability.
Two More Defendants Sentenced in Analogue Distribution ConspiracyRead the Press Release
ABINGDON, VIRGINIA – Another two members of a 22-member conspiracy that brought a controlled substance analogue to Southwest Virginia from as far away as China were sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Jack Douglas Hamm, 40, of St. Paul, Virginia, who previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 1.9 kilograms of alpha-PVP, a controlled substance analogue was sentenced today in District Court to 110 months in federal prison.
In a separate hearing, Warren Edwards Richards, 53, of Coeburn, Virginia, who previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 10 kilograms of alpha-PVP, was sentenced to 240 months in federal prison.
“This conspiracy imported large amounts of this dangerous analogue for all over this country and other countries,” United States Attorney Fishwick said today. “For those actions, they have been justly held accountable.”
According to evidence presented at previous hearings by Assistant United States Attorney Erin M. Kulpa, those sentenced today, and others members of the conspiracy, disturbed alpha-PVP, a controlled substance analogue, in Southwest Virginia between 2012 and 2015. Members of the conspiracy placed orders of the powder form of alpha-PVP from distributors based in Florida and China and had these items shipped to residential addresses in Wise, Virginia. The conspirators would retrieve the packages and distribute the contents to mid-and-low level dealers in and around Wise, Virginia for distribution to alpha-PVP users.
Members of the conspiracy also regularly transported the hard form of alpha-PVP, commonly known as “Gravel” from suppliers in North Carolina and Tennessee to Wise, Virginia for distribution. As part of the conspiracy, members would break the larger quantities of “Gravel” into smaller amounts for sale to drug users, typically .5 to 1 gram amounts.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the Southwest Virginia Drug Task Force, the Virginia State Police, the Big Stone Gap Police Department, the Wise County Sheriff’s Office, the City of Norton Police Department, the Dickenson County Sheriff’s Office, the Sullivan County, Tennessee, Sheriff’s Office, the Coeburn Police Department, the Clintwood Police Department and the Wise Police Department. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Two Indicted for Growing Marijuana on National Forest Land in Shasta and Siskiyou CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two indictments today, charging two residents of Mexico with separate conspiracies to grow marijuana in national forest land, Acting United States Attorney Phillip A. Talbert announced.
In a two-count indictment, Antonio Guadalupe Lopez-Garcia, 57, was charged with conspiracy to cultivate marijuana and cultivating marijuana. According to court documents, on July 11, 2016, Lopez-Garcia was arrested while working at a marijuana cultivation site growing approximately 8,000 plants in the Shasta-Trinity National Forest near Screwdriver Creek. This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish & Wildlife, and the Shasta County Sheriff’s Office. #2:16-cr-143 GEB
In a separate two-count indictment, Pedro Madriz Rodrigues, 25, was charged with conspiracy to cultivate marijuana and cultivating marijuana. According to court documents, on July 15, 2016, Rodrigues was arrested at a marijuana cultivation site in Klamath National Forest in Siskiyou County near Cody Creek. The site contained approximately 6,700 plants. This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish & Wildlife, and the North State Marijuana Investigation Taskforce.
2:16-cr-144 MCEBoth defendants are in custody. Assistant United States Attorney James Conolly is prosecuting both cases.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $1 million fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Former Crystal City Officials Plead Guilty to Federal Charges in Connection with a Bribery and Kickback SchemeRead the Press Release
In Del Rio this afternoon, former Crystal City Mayor Pro-Tem Rogelio Mata and his brother, former Crystal City Councilman Roel Mata, pleaded guilty to federal charges in connection with a bribery and kickback scheme involving city contracts announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses, 43-year-old Rogelio Mata and 44–year-old Roel Mata pleaded guilty to one count of federal programs bribery. As a result of their guilty pleas, the defendants face up to ten years in federal prison; a fine of up to $250,000; a $12,291.73 monetary judgment; and, forfeiture of approximately $1,000 in U.S. currency seized by authorities during this investigation. Sentencing has yet to be scheduled.
By pleading guilty, the defendants admittedly used their official positions since February 2015 to enrich themselves by soliciting and accepting cash bribes from persons seeking to do business in Crystal City. The defendants also admitted that they voted in 2015 to award a contract to a person who had provided them with cash bribes.
Rogelio Mata and Roel Mata are the second and third defendants to enter guilty pleas in this case. On May 26, 2016, 38-year-old businessman Ngoc Tri Nguyen pleaded guilty to one count of conspiracy to commit bribery involving an entity receiving over $10,000 in federal funds. By pleading guilty, Nguyen admittedly paid $6,000 in bribes in exchange for various official acts from his co-defendants. Nguyen, who faces up to ten years in federal prison, is scheduled for sentencing at 3:00pm on November 9, 2016, in Del Rio before Judge Moses.
Former City Attorney and City Manager William James Jonas, age 54, former Crystal City Mayor Ricardo Lopez, age 40, and former City Councilman Gilbert Urrabazo, age 45, all remain under indictment charged with one count of conspiracy to commit bribery involving an entity receiving over $10,000 in federal funds. Jonas also faces three substantive federal programs bribery charges. Lopez and Urrabazo also faces one substantive federal programs bribery charge. The matter is currently scheduled for Docket Call on October 11, 2016.
This ongoing joint investigation is being conducted by the FBI and the San Antonio Police Department with assistance from the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers. Individuals who have first-hand information about corruption, fraud, or bribery related to Crystal City are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. Jonas, Lopez and Urrabazo are presumed innocent until proven guilty in a court of law.
Two Additional Stock Promoters Charged with Securities Fraud in Connection with Scheme to Fraudulently Register Shell Companies and Secretly Sell StockRead the Press Release
Two additional stock promoters were charged with conspiracy to commit securities fraud in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commision (SEC), issue shares in the companies that they and other conspirators secretly controlled, and sell the shares to the investing public at a profit.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Eric I. Bustillo, Director, U.S. Securities and Exchange Commission (SEC), Miami Regional Office, made the announcement.
Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged by criminal information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Sections 1348 and 1350. Sanders and Mirman face a maximum statutory sentence of five years in prison and a fine up to $250,000. The case is assigned to U.S. District Judge Cecilia M. Altonaga in Miami (Case No. 16-20572-CMA).
Previously, on July 20, 2016, Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, formerly of El Dorado Hills, California, were charged by criminal information in connection with the same scheme, in Case No. 16-20546-CR-RNS. That case is assigned to U.S. District Judge Robert N. Scola Jr. in Miami. On July 22, 2016, McKelvey entered a guilty plea to the Information before U.S. Magistrate Judge Barry L. Garber. Sentencing for McKelvey is scheduled for October 7, 2016 before Judge Scola.
According to court documents, Sanders, Mirman, McKelvey, Lamson and other conspirators, would recruit individuals to serve as straw chief executive officers (CEOs) for shell companies. The conspirators would inform the straw CEO that they would have no further role with the company and would only be paid when the business was later sold. Sanders, Mirman, McKelvey, Lamson and other conspirators would prepare corporate documents for the shell companies, such as board meeting minutes, stock certificates and shareholder lists, all of which were false and fraudulent. The conspirators would submit these documents, as well as other false information, to the SEC on Form S-1 in order to register securities offerings in the name of the shell companies. The false filings would include representations as to the role of the straw CEO in the company and the intent and purpose of the company itself.
Once a company’s registration was effective, Sanders, Mirman, McKelvey, Lamson and other conspirators would recruit individuals to serve as nominee shareholders, to make it appear that there was a group of shareholders that were unaffiliated with the company. This was done in order to create a class of unrestricted shares that could later be publicly traded. In reality, these nominee shareholders were promised a fixed amount of money once the company was ready to be sold, in exchange for allowing their names to be used as shareholders on subscription agreements. By obtaining control of all or nearly all of the purportedly unrestricted shares of the company without disclosure to the SEC or the public, the conspirators were in a position to subsequently sell or transfer the shares to others, or to the investing public, while avoiding the SEC’s prohibitions against insider trading or undisclosed trading by persons who exercise control over a public company.
The conspirators would also solicit broker-dealers to submit false information to the Financial Industry Regulatory Authority (FINRA) to obtain authorization for the company’s shares to be publicly traded (traded “over the counter”). In forms and other materials submitted to FINRA, the conspirators would falsely describe and conceal their own role with, the companies and conceal the roles of the conspirators. Once FINRA gave authorization for the shares to be traded over the counter in the penny stock markets, the conspirators would transfer control of the unrestricted, or publicly tradeable shares, into accounts they controlled.
The conspirators would then seek buyers who would acquire control of the shell companies as well as the secretly controlled unrestricted shares. The buyer’s acquisition of the company would typically take the form of a “reverse merger,” and be publicly disclosed. The secretly controlled unrestricted shares would typically be transferred to a third party or other account designated by the buyer, and would not be disclosed to the SEC or the public. In this way, the buyer would be in a position immediately to engage in stock swindles or other manipulation schemes. According to court documents, Sanders, Mirman, McKelvey and Lamson collectively reaped more than $6 million in proceeds from the scheme.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the U.S. Securities and Exchange Commission’s Miami Regional Office for their assistance, which previously filed a civil enforcement action against Sanders, Mirman, McKelvey and Lamson. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An Information is merely an allegation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Three Cuban Nationals Plead Guilty to Conspiracy to Commit Access Device Fraud, Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that three Cuban nationals, all residing in Florida, pled guilty today to one count each of conspiracy to commit access device fraud and aggravated identity theft. Two other defendants have already pled guilty in the case, which charged six defendants in total.
JULIET ESTRADA PEREZ, LUIS RIVERA GARCIA, and JESUS ENRIQUE GONZALES TORRES pled guilty to conspiring among themselves and with others to possessing fifteen or more unauthorized and counterfeit access devices, as well as producing, possessing, and trafficking device-making equipment. According to court records, the defendants traveled from Florida in late July 2015, and agreed to place card skimming devices on gas pumps in the New Orleans area. They also admitted to, among other things, possessing a card encoding machine, a card embossing machine, and a laptop computer containing stolen credit card information. JULIET ESTRADA PEREZ, LUIS RIVERA GARCIA, and JESUS ENRIQUE GONZALES TORRES were arrested in the Southern District of Florida in April 2016 on bond violations, after they were being found in the Florida Strait between Florida and Cuba by the United States Coast Guard, and have been detained since then as flight risks.
On the conspiracy charge, each defendant faces a maximum penalty of not more than five years of imprisonment. Each aggravated identity theft charge carries a mandatory sentence of two years of imprisonment, which must be served consecutively to any other prison sentence. The defendants further face terms of supervised release, fines, and restitution obligations upon conviction.
U.S. Attorney Polite praised the work of Jefferson Parish Sheriff’s Office, the United States Secret Service, and Homeland Security Investigations in investigating this matter. Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.
Stamford Man Charged for Making Online ThreatsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport returned an indictment yesterday charging KENDALL J. SULLIVAN, 50, of Stamford, with three counts of making threatening communications online.
The indictment alleges that on three separate dates, SULLIVAN, on an internet forum known as Metalthrone.net, posted numerous statements in which he threatened to injure or kill certain individuals or groups.
The indictment alleges that on May 29, 2016, SULLIVAN stated “Israel, God and Synagogues. I will kill them. I have a few “Houses of Satan” in my Town… If these Jews truly believe in their god Satan, I will upset their world. I will slaughter them and burn their Synagogue to the ground . . . kids, goldfish, old folks… Shove money down their throats. These Jews of 2016. They think they are safe.”
On June 10, 2016, it is alleged that SULLIVAN stated to another user: “I am going after YOU..Your Family, Wife, kids, Grandkids, Gold Fish . . . I am warning YOU, I will go after YOU. As I get older, I just don’t give a damn . . . I will meet you in Westport at the Carvel! And then I will shoot or run over you . . . it is not just YOU, but your fellow Satanists I want to track down and kill.. I will use YOU to find others…And Kill them . . . You are a [expletive] JEW! . . I want to kill you . . . If only that . . . Name a place . . . You are Satanic and must be destroyed. Wifes [sic], kids, Dogs, Cats, Goldfish . . . . All destroyed.”
On July 5, 2016, it is alleged that Sullivan stated: “[I] Am prepared to shoot YOU on sight! And shove Money down your dead [expletives]…Hole. Humans who define their entire existence thru that price tag – They are not human beings but Demons and must be destroyed…I am looking forward to my death thru Jesus Christ. I will be Free. I will be understood. Afterall, I am a Warrior of Jesus Christ and want to be his Soldier.”
On July 15, 2016, the Federal Bureau of Investigation and the Stamford Police Department executed a federal search warrant and a state risk warrant at SULLIVAN’s residence and seized more than two dozen firearms, hundreds of rounds of ammunition and additional firearm components. On that date, SULLIVAN was charged in state court for the unlawful possession of unregistered high capacity magazines. He has remained in custody since that time.
“Threats of violence against any religious or ethnic group cannot be tolerated, and when threats are made in violation of federal law, our office stands ready to prosecute those who make them,” said U.S. Attorney Daly. “I thank the FBI and Stamford Police Department for investigating this matter and helping to ensure the safety of our community.”
“We are confident that our efforts and the collaboration with all law enforcement partners may have averted a horrific hate crime from occurring,” said Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation. “We will continue to respond quickly and investigate those responsible for spewing threats against all members of our community.”
“We would like to thank the members of the Stamford Police Department Intelligence and Homeland Security Unit and our partners at the FBI for handling this disturbing case expeditiously and without sparing any effort,” said Stamford Assistant Police Chief Jim Matheny. “We here in Stamford have a longstanding and very positive relationship with the local Jewish community and have partnered with them on several security and training initiatives. Along with the JTTF we take all such matters extremely seriously and will spare no resources to safeguard all members of our community.”
It is a violation of federal law to send a threatening communication in interstate or foreign commerce, such as by phone, email, text, mobile messaging applications or otherwise online. If convicted of the charges in the indictment, SULLIVAN faces a maximum term of imprisonment of five years on each count.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force and the Stamford Police Department. This case is being prosecuted by Assistant U.S. Attorney Stephen B. Reynolds.
South Carolina Hospital to Pay $17 Million to Resolve False Claims Act and Stark Law AllegationsRead the Press Release
The Lexington County Health Services District Inc. d/b/a Lexington Medical Center located in West Columbia, South Carolina, has agreed to pay $17 million to resolve allegations that it violated the Physician Self-Referral Law (the Stark Law) and the False Claims Act by maintaining improper financial arrangements with 28 physicians, the Department of Justice announced today.
The Stark Law is intended to ensure that physician referrals are made based on the medical needs of the patients and are not tainted by certain financial arrangements. Thus, the Stark Law generally forbids a hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the hospital unless that relationship falls within enumerated exceptions. The exceptions generally require, among other things, that the financial arrangements do not exceed fair market value, do not take into account the volume or value of any referrals and are commercially reasonable. In addition, arrangements with physicians who are not hospital employees must be set out in writing and satisfy a number of other requirements intended to insulate the referrals from financial considerations.
“This case demonstrates the United States’ commitment to ensuring that doctors who refer Medicare beneficiaries to hospitals for procedures, tests and other health services do so only because they believe the service is in the patient’s best interest, and not because the physician stands to gain financially from the referral,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.
The United States alleged that Lexington Medical Center entered into asset purchase agreements for the acquisition of physician practices or employment agreements with 28 physicians that violated the Stark Law because they took into account the volume or value of physician referrals, were not commercially reasonable or provided compensation in excess of fair market value.
Also as part of the settlement, Lexington Medical Center will enter into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services-Office of the Inspector General (HHS-OIG) that requires Lexington Medical Center to implement measures designed to avoid or promptly detect future conduct similar to that which gave rise to this settlement.
The settlement resolves allegations filed in a lawsuit by Dr. David Hammett, a former physician employed by Lexington Medical Center, in federal court in Columbia, South Carolina. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Dr. Hammett will receive approximately $4.5 million of the recovered funds.
This civil 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.”
The case was handled by the U.S. Attorney’s Office for the District of South Carolina, the Civil Division’s Commercial Litigation Branch and HHS-OIG.
The lawsuit is captioned United States ex rel. Hammett v. Lexington County Health Services District, Case No. 3:14-cv-03653 (D. S.C.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Siskiyou County Woman Sentenced to 2 years in Prison for Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — U.S. District Court Judge Troy L. Nunley sentenced Stacy Miranda Phillips, 29, of Montague, today to two years in prison and ordered her to pay $2,163 in restitution to the U.S. Postal Service for aggravated ID theft related to her participation in a bank fraud and identity theft scheme, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between September and December of 2015, Phillips worked with others in Siskiyou County to execute a scheme to steal from banks and merchants in the Siskiyou County. Phillips admitted that as part of her scheme she stole U.S. Mail and other personal property of local residents. Phillips and her associates targeted certain victims, postal customers, and mail receptacles utilized by those victims. Phillips used the checks, credit or debit cards, account numbers, names, PINs, and signatures found in the stolen mail to obtain cash and purchase items. Phillips also attempted to open a line of credit in the name of a Weed, California victim. Phillips stole mail from the following Siskiyou County Post Offices: Hornbrook, Grenada, and Montague.
This case was the product of an investigation by the United States Postal Inspection Service, the Siskiyou County Sheriff's Department, and the Yreka Police Department. Assistant United States Attorney Michelle Rodriguez prosecuted the case.
Seventeen Indicted for Firearms and Drug Trafficking Following Multiagency Sweep in FresnoRead the Press Release
FRESNO, Calif. — Three related indictments were returned today charging 17 Fresno residents with firearms and drug trafficking offenses, Acting U.S. Attorney Phillip A. Talbert announced.
On July 19, 2016, after a yearlong investigation, law enforcement agents served over 20 search warrants in the Fresno area and arrested the majority of the defendants indicted today. During the searches, agents seized approximately $42,500 in cash.
According to the first indictment, between February 1, 2016, and July 21, 2016, Christopher Martinez Sr., 45; Randy Seja, 24; Felix Gago, 40; and Christopher Martinez Jr., 23, conspired to distribute and possess with intent to distribute methamphetamine.
In the second indictment, Gilberto Zarate, 34; Jorge Calestino Alvarez-Arias, 27; Marco Mosqueda, 27; Frances Reyna, 55; Gabriel Galvan, 27; Rafael Delatorre, 32; Jose Delatorre, 22; Alfonso Esparza, 38; and Gabriel Esparza, 37 were charged with conspiracy to distribute and possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of a methamphetamine. Zarate and Alfonso Esparza, and Gabriel Esparza are additionally charged with being felons in possession of firearms. According to the indictment, the conspiracy ran between April 1, 2015, and July 22, 2016.
The third indictment adds defendant Cecilio Alaniz, 26, and Christopher Valdez, 35, to an indictment that originally charged Jesse Mendoza, 36, and Roxana Dodier, 23. Today’s second superseding indictment charges the four defendants with conspiracy to distribute and possess with intent to distribute methamphetamine, and distribution of and possession with intent to distribute methamphetamine. Mendoza is additionally charged with dealing firearms without a license, possessing and selling stolen firearms, and distribution and possession with the intent to distribute hydrocodone and heroin.
These cases are the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) , the Federal Bureau of Investigation, the U.S. Marshals Service, the Fresno Police Department, the Fresno County Sheriff’s Office, the Mult-Agency Gang Enforcement Consortium (MAGEC), the California Highway Patrol, the California Department of Corrections and Rehabilitation- Division of Adult Parole, the Fresno County Probation, and the Fresno County District Attorney’s Office. Assistant United States Attorneys Melanie L. Alsworth and Kimberly A. Sanchez are prosecuting the cases.
The cases were part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, the defendants face sentences ranging from four years to life in prison and fines of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two other defendants have been charged in connection with this investigation. On December 3, 2015, Spencer Meindersee was indicted for conspiracy to commit murder in aid of racketeering and carrying a firearm during and in relation to a crime of violence. He is awaiting trial. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. On July 18, 2016, Mariano Polanco was sentenced to three years and five months in prison for being a felon in possession of a firearm.
This investigation is part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Sentencings for July 22 - July 26, 2016Read the Press Release
Pearl Yonko, 37, of St. Louis, Missouri, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 26, 2016, for conspiracy to transport stolen property through interstate commerce. Yonko was arrested in Laramie, Wyoming. She received 15 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $165,372.00, joint and several with other defendants in this case. This case was investigated by the Federal Bureau of Investigation.
Jeffrey Chad Joseph, 32, of Preston, Idaho, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 26, 2016, for failure to register as a sex offender. Joseph was arrested in Park City, Utah. He received time served, to be followed by three years of supervised release, and was ordered to pay $100.00 special assessment. This case was investigated by the U.S. Marshals Service.
Richard Anthony Root, 52, of Granger, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 22, 2016, for being a felon in possession of a firearm. Root was arrested in Granger, Wyoming. He received 38 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Second of Three Charged in Oxycodone Distribution Conspiracy Sentenced to Serve over Six Years in Federal PrisonRead the Press Release
GREENEVILLE, Tenn. - On July 27, 2016, Rocky Wayne Hendrix, 48, of Johnson City, Tenn., was sentenced to serve 78 months in federal prison for conspiring to unlawfully distribute and dispense oxycodone.
Hendrix pleaded guilty in February 2016 to conspiring with Sherry L. Barnett, who was a licensed nurse practitioner, Robert Randal Stanton II, and others, to unlawfully distribute oxycodone from October 2011 through August 2014. Barnett owned and operated Resolutions HealthCare, PLLC in Johnson City, Tenn., from which she issued unlawful prescriptions to Hendrix, Stanton, and other patients without proper medical examinations and for no legitimate medical purpose. Hendrix recruited friends, family members, and employees at his business, Rocky’s Pizza, to become new patients of Barnett in order to obtain additional unlawful prescriptions. According to documents on file with the U.S. District Court, during the course of the conspiracy over 60,000 pills were illegally dispensed and distributed.
All three charged in the indictment have now pleaded guilty. In April 2016, Stanton was sentenced to 60 months in prison. Barnett is scheduled for the final sentencing on September 28, 2016.
U.S. Attorney Nancy S. Harr praised the hard work of law enforcement in this extensive investigation, stating “Oxycodone is a highly addictive prescription medication, and the U.S. Attorney’s Office takes cases involving its unlawful distribution very seriously. We will continue to work together with the TBI and other law enforcement agencies to prosecute these types of offenses.”
The investigation was conducted by the Tennessee Bureau of Investigation. Assistant U.S. Attorneys David Gunn and Donald Wayne Taylor represented the United States.
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Sanbornton Man Sentenced for Heroin and Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Michael Smith, 35, of Sanbornton, New Hampshire, was sentenced to 96 months in federal prison after pleading guilty in United States District Court for the District of New Hampshire to a federal indictment charging him with eight counts of distribution and one count of conspiracy to distribute the Schedule I controlled substance heroin and the Schedule II controlled substance fentanyl, announced United States Attorney Emily Gray Rice.
According to court documents, during a law enforcement investigation, a cooperating individual purchased heroin and/or fentanyl from the defendant on eight occasions. Lab results confirmed that over 20 grams of the substance purchase contained fentanyl, over 57 grams contained heroin and over 19 grams contained a mixture of heroin and fentanyl. Smith obtained controlled substances from multiple sources and distributed to multiple customers, participating in the conspiracy since at least June, 2015.
U.S. District Judge Paul J. Barbadoro sentenced Smith. In addition to the term of incarceration, Judge Barbadoro ordered Smith to serve, upon his release from prison, a term of supervised release of 3 years.
The case was investigated by the New Hampshire Drug Task Force and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Donald Feith.
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San Antonio Texas Mexican Mafia Member Admits Role in Multiple MurdersRead the Press Release
In San Antonio this afternoon, 38-year-old Texas Mexican Mafia (TMM) “Lieutenant of Lieutenants” Ruben Reyes (aka “Menace”) pleaded guilty to all federal charges pending against him including responsibility for the murders of four TMM members and Balcones Heights Police Officer Julian Pesina announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States Magistrate Judge Pam Mathy, Reyes pleaded guilty to five counts of aiding and abetting the using and discharging of a firearm during and in relation to a crime of violence; and, five counts of violent crime (murder) in aid of racketeering (VICAR).
A factual basis filed in this case, which Reyes admitted in court today was true, states that Reyes killed TMM member Ulysses Farias in front of his family in San Antonio on October 12, 2013, in order to improve standing in the TMM. Reyes and TMM member Jerry Moreno carried out the execution based on concerns by TMM leadership that Farias was purportedly talking to federal authorities; and, despite being warned not to because it violated TMM rules, Farias took his wife with him on ”dime” collection runs. The “dime” is a 10 percent tax imposed by the TMM on individuals who sell narcotics in their territory for assistance in collecting drug debts as well as a degree of protection from robbery and competing drug dealers.
The factual basis also states that in San Antonio on January 13, 2014, Reyes shot and killed TMM “Captain” Mark Anthony Bernal (aka “Lefty”), TMM “General” Carlos Chapa (aka “Worm”), and TMM “Lieutenant of Lieutenants” Johnny Solis (aka “Smiley”) for their alleged mishandling of approximately $60,000 and making poor decisions in regards to the TMM daily operations. Reyes subsequently transported and buried the bodies of Bernal, Chapa and Solis in Pearsall, TX. The factual basis also states that on November 19, 2014, following a failed attempt by TMM members to murder him, Reyes led authorities to the burial site in Pearsall where the bodies of Bernal, Chapa and Solis were recovered.
By pleading guilty, Reyes also admitted responsibility for ordering the murder of Balcones Heights Police Officer Julian Pesina outside his “Notorious Ink Tattoo and Piercing Studio” on May 4, 2014. The factual basis states that although he was a police officer, Pesina was simultaneously claiming membership in the TMM, had tattoos consistent with such membership, and was selling drugs to TMM members. Reyes, under orders from TMM leadership, ordered a TMM member, a TMM prospect, and another TMM member, who was not in good standing, to carry out the murder of Pesina. The firearms used to kill Pesina were subsequently given to Reyes.
Reyes, who remains in federal custody, faces life in federal prison. Sentencing is scheduled for 9:00am on September 2, 2016, before Senior U.S. District Judge David A. Ezra in San Antonio.
This investigation was conducted by the FBI together with the San Antonio Police Department, Texas Department of Public Safety Criminal Investigations Division, Bexar County Sheriff’s Department, Frio County Sheriff’s Department, and the Texas Department of Criminal Justice.
San Antonio Businessman Enters Guilty Plea to a Scheme Involving Defrauding Personal Injury Clients, Tax Evasion and Hiding Assets from U.S. Bankruptcy TrusteeRead the Press Release
In San Antonio this morning, 47-year-old San Antonio businessman Elpidio Gongora (aka “Pete Gongora”) pleaded guilty to federal charges in connection with a scheme to defraud personal injury clients; evading payment of more than $1.6 million in taxes; and, attempting to hide assets valued at $429,000 from the Bankruptcy Trustee. That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division; William Cotter, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge; and, Judy A. Robbins, U.S. Trustee for the Southern and Western Districts of Texas.
Appearing before United States District Judge Fred Biery, Gongora pleaded guilty to one count of conspiracy to commit mail fraud, one count of bankruptcy fraud, and one count of tax evasion. According to court documents, from 2009 through 2014, Gongora, aided and abetted by his co-defendants--Rosa Ramirez, Juan Rodriguez, and Ronald Higgins--operated the law offices of several personal injury attorneys, including the Law Office of Ronald Higgins in the city of San Antonio and elsewhere in Texas, Arkansas and New Mexico. Ramirez, age 49 of San Antonio, Rodriguez, age 48 of San Antonio, and Higgins, age 55 formerly of San Antonio, await jury selection and trial currently scheduled for September 12th. All three are charged with one count of conspiracy to commit mail fraud. Ramirez is also charged with five counts of mail fraud and five counts of aggravated identity theft.
By pleading guilty, Gongora admitted that he stole money from the personal injury clients by failing to pay monies owed to clients under settlement agreements or to pay obligations for medical treatment and physical therapy after committing to do so. To carry out this scheme, Gongora collected the proceeds of fraudulently endorsed personal injury settlement checks and would hide from the attorneys his failure to pay clients settlement proceeds to which they were entitled.
In 2013, Gongora and his wife filed for Chapter 7 Bankruptcy in the Western District of Texas. By pleading guilty, Gongora admitted to his failure to disclose to the Bankruptcy Trustee that he owned personal assets that included a 33-foot Chris Craft cabin cruiser; a 29-foot 2005 Seaswirl boat; a 2005 Ford F-150 truck; real property located on Elm Valley in San Antonio; and, a residence located in Aransas Pass, TX.
By pleading guilty, Gongora also admitted that he willfully attempted to evade paying over $1.6 million in taxes, penalties and interest owed to the Internal Revenue Service for calendar years 2003 through 2005 and 2007 through 2013.
Gongora faces up to 20 years in federal prison for conspiracy to commit mail fraud; up to five years imprisonment for bankruptcy fraud; and, up to five years imprisonment for tax evasion.
This investigation was conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI) and the U.S. Trustee’s Office. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. Ramirez, Rodriguez and Higgins are presumed innocent until proven guilty in a court of law.
Romanian National Sentenced to 70 Months in Prison for His Participation in an ATM Skimming SchemeRead the Press Release
On July 22, 2016, A Romanian national was sentenced to 70 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $905,901.00 for his involvement in a conspiracy to defraud a financial institution and possessing device making equipment.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI) made the announcement.
Sorin Condrache, 36, of Craiova, Romania previously pled guilty to one count of conspiracy to defraud a financial institution in violation of Title 18, United States Code, Section 1349 and one count of possession of device making equipment in violation of Title 18, United States Code, Section 1029(a)(4).
According to court documents, Condrache engaged in a scheme to defraud financial institutions referred to as “ATM skimming.” Condrache operated this scheme by placing skimming devices and pinhole cameras on SunTrust Bank ATMs located in Florida, Georgia, Maryland, North Carolina and Tennessee. The skimming devices fit over the ATMs' card slots and recorded the data encoded on the bank customers' debit cards. The skimming devices looked like part of the ATM so that customers were unaware that a device had been installed on the machine. At the same time, the pinhole camera surreptitiously recorded the customers' personal identification numbers (the PINs). Condrache then made counterfeit debit cards by re-encoding the magnetic strips on other cards, such as gift cards, with the customers' bank account information. The defendant then made unauthorized withdrawals from the customers' bank accounts using the counterfeit debit cards and the customers' PINs. In total, the defendant and his co-conspirators installed skimming devices on ATMs on 35 occasions and made withdrawals in the amount of $905,901.00
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Rockford, Michigan, High School Coach Charged Federally with Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Timothy Vallier, 30, of Plainfield Township, appeared in federal court today on federal criminal charges of possession and attempted production of child pornography. The federal charges follow an investigation led by the Kent County Sheriff’s Department and the Michigan State Police Internet Crimes Against Children Task Force, and joined by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The criminal complaint alleges that Vallier took hundreds of hidden videos of girls changing in locker rooms while he was the head rowing coach at the Rockford Public Schools and that a computer in his possession contained additional child pornography.
The government asked the court to detain Vallier pending trial, and he will remain in custody pending a hearing on the matter early next week. Vallier has been in state custody since July 10 on state charges. The state charges will be dismissed in light of the federal prosecution.
If convicted, Vallier faces a minimum sentence of 15 years and a maximum of 30 years in federal prison on each count of attempting to produce child pornography and up to 20 years for possession. Each offense also carries a requirement for sex offender registration, a potential fine of up to $250,000 and financial compensation to the victims, and up to life time on intensive supervised release after incarceration, during which the court can impose a number of special conditions designed to protect children.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.
This case is being prosecuted by Assistant U.S. Attorney Tessa K. Hessmiller as part of the Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.
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Project Safe Childhood - Newport Man Sentenced for Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Allen Langlois, 49, of Newport, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire, for possessing child pornography. According to United States Attorney Emily Gray Rice, the Court imposed a sentence of 42 months’ imprisonment, to be followed by 10 years of supervised release.
In the fall of 2015, after a lengthy investigation, the Federal Bureau of Investigation found a collection of hundreds of still images of child pornography on the defendant’s personal computer. The defendant admitted to downloading child pornography content from several different internet websites, including sites on the dark web.
The FBI was assisted in this case by the Police Departments of Newport, Manchester, and Nashua, New Hampshire, as well as the New Hampshire State Police.
The case was prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Project Safe Childhood - Goffstown Man Sentenced for Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Richard Sullivan, 24, of Goffstown, New Hampshire, was sentenced on Thursday in the United States District Court for the District of New Hampshire, for possessing child pornography. According to United States Attorney Emily Gray Rice, the Court imposed a sentence of 24 months’ imprisonment, to be followed by 7 years of supervised release.
In 2015, investigators determined that an individual residing at Sullivan’s Goffstown residence had uploaded several images of child pornography to an internet bulletin board. A federal search warrant was obtained, and a forensic analysis of three of Sullivan’s personal electronic devices revealed a collection of approximately thirty still images of child pornography. Sullivan admitted to investigators that he had been viewing child pornography for eighteen months.
The investigation was jointly conducted by the Homeland Security Investigations Manchester (HSI), the New Hampshire Internet Crimes Against Children Task Force (NH ICAC), and the police departments of Goffstown, Bedford, Hampton, Portsmouth, and Manchester, New Hampshire.
The case was prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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