Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 July 2016
California Man Sentenced to over 11 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Mario McGeilberry, age 29 of Rialto, California, was sentenced yesterday to 140 months in federal prison followed by four (4) years of supervised release on one count of Conspiracy to Distribute Controlled Substances with the Intent to Distribute. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to the Defendant’s Plea Agreement, beginning in September, 2014, agents with the FBI and the 13th Judicial Drug Task Force initiated an investigation into a drug trafficking organization in Camden and elsewhere in the Western District of Arkansas. Mario McGeilberry was identified as a multikilogram supplier of methamphetamine in that area. During the course of the investigation in January, 2015 cooperating targets discussed the acquisition of several pounds of methamphetamine from a source of supply in California, who was later identified by law enforcement as Mario McGeilberry. Mail records confirmed multiple shipments from individuals in San Bernardino, California to a known narcotics distributor in the Western District of Arkansas.
On February 11, 2015, McGeilberry was arrested by an Arkansas state trooper in Lake Village, Arkansas and was found to have in his possession approximately five (5) ounces of methamphetamine and a half pound of marijuana. He disclosed that the methamphetamine he was apprehended with was destined to be delivered in the Western District of Arkansas. He further stated that he was engaged in trafficking methamphetamine through the mail. He estimated that seven (7) pounds of methamphetamine were shipped to the Western District of Arkansas during the course of his dealings here. The substance seized in his traffic stop was sent to the Arkansas State Crime lab where it was tested and found to be over 50 grams of a mixture or substance containing methamphetamine.
McGeilberry was indicted by a Federal Grand Jury on February 25, 2015 and pleaded guilty to the charge on December 1, 2015.
“The success of this investigation is a tribute to strong partnerships which demonstrates our combined impact on targeting and dismantling drug trafficking organizations that peddle dangerous drugs to our neighborhoods,” said Special Agent in Charge Diane Upchurch of the FBI Little Rock Field Office. “We appreciate the efforts of the 13th Judicial Drug Task Force and the United States Attorney’s Office.”
This case was investigated by the Federal Bureau of Investigation (FBI) and the 13th Judicial Drug Task Force. Assistant United States Attorney Ben Wulff prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Caddo Parish Commissioner Michael Williams sentenced to 14 months for stealing from nonprofitRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Caddo Parish Commissioner Michael Dwayne Williams was sentenced to 14 months in prison for stealing from a nonprofit meant to help at-risk youth.
Williams, 55, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on 11 counts of wire fraud. He was also sentenced to three years of supervised release, and he was ordered to pay $8,584.68 restitution, a $10,000 fine and $1,100 to the Crime Victims Fund. According to evidence presented at the four-day trial that ended on March 10, 2016, Williams took more than $8,000 from a nonprofit’s bank account from October 1, 2012 through July 1, 2014. Williams urged the parish commission to appropriate public funds for the nonprofit SWAG Nation. Once those funds were allocated from the parish’s budget to SWAG Nation, Williams caused a bank debit card to be issued for the nonprofit. Between April of 2013 and July of 2014, Williams used the card to remove money on numerous occasions. According to the indictment, he took $100 to $200 each time that he made a withdrawal. Evidence presented at trial showed the defendant used the card in excess of 45 times for cash withdrawals and purchases. SWAG Nation’s declared purpose is to partner with local institutions to help mentor and counsel at-risk individuals ages 7 to 17 so that they can better function in society.
“Mr. Williams put greed before the needs of his constituents by stealing money from a program set up to help at-risk youth,” stated Finley. “His actions are a betrayal of the public trust and his oath of office.”
“Stealing is bad enough, but when you’re an elected official, you are stealing from the taxpayers who put their faith and trust in you,” Caddo Parish Sheriff Steve Prator said. “Mr. Williams violated the public’s trust and should now be held accountable.”
The FBI and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Joseph G. Jarzabek and Brandon B. Brown prosecuted the case.
Butler County Man Pleads Guilty to Possessing Sexual Images of ChildrenRead the Press Release
PITTSBURGH - A resident of West Sunbury, Pennsylvania, pleaded guilty in federal court to charges of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Steven R. Lawniczak, 48, of West Sunbury, Pennsylvania, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that Lawniczak, on March 4, 2014 and December 2, 2014, unlawfully possessed in computer graphics files, photographs and videos depicting minors engaged in sexually explicit conduct.
Judge McVerry scheduled sentencing for Oct. 21, 2016. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Lawniczak remains detained pending sentencing.
Assistant United States Attorneys Carolyn J. Bloch and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Lawniczak.
Attorney General Lynch Names Rupa Bhattacharyya as Special Master of the September 11th Victim Compensation FundRead the Press Release
Attorney General Loretta E. Lynch today announced that she has chosen Rupa Bhattacharyya to head the September 11th Victim Compensation Fund (VCF) after current VCF Special Master Sheila L. Birnbaum steps down later this month.
Special Master Birnbaum will continue to the full-time practice of law at Quinn Emanuel, LLP, where she is a partner. Bhattacharyya, who currently serves as Director of the Justice Department’s Constitutional and Specialized Tort Litigation Section in the Civil Division’s Torts Branch, will assume her new position on July 21.
“Rupa Bhattacharyya is an exceptional administrator and a devoted public servant, and I am delighted to name her as the new Special Master of the VCF,” said Attorney General Lynch. “Throughout her career at the Treasury and Justice Departments, she has earned a reputation for fairness, efficiency and integrity. I am confident that under her leadership, the VCF will continue to guarantee that those whose lives were forever changed by the events of September 11th, 2001, can receive the compensation they deserve. I thank outgoing Special Master Sheila Birnbaum for her outstanding leadership of the VCF over the last five years and I welcome Ms. Bhattacharyya to her new post.”
“As a life-long New Yorker, serving as Special Master of the VCF has been perhaps the most personally rewarding work of my career,” said Special Master Birnbaum. “My goal from the beginning was to establish a program that is fair, transparent and easy to navigate and I believe we have accomplished this and more over the past five years. It has been a true privilege to work on behalf of the victims of 9/11 and their resilience is inspiring. As the VCF moves into a new chapter following the reauthorization, I know the team is well poised to continue to succeed in compensating those most impacted by the events of Sept. 11, 2001.”
Birnbaum has served as VCF Special Master since May 2011, after the fund created under the James Zadroga 9/11 Health & Compensation Act (Zadroga Act) was signed into law by President Obama on Jan. 2, 2011. The VCF was reauthorized in December 2015 and under Birnbaum’s leadership has rendered award decisions on more than 10,000 claims and paid over $1.8 billion to first responders, recovery workers and residents who suffered physical harm or were killed as a result of the terrorist-related aircraft crashes of Sept. 11, 2001, or the debris removal efforts that took place in the immediate aftermath.
The VCF accomplishments under Birnbaum’s leadership include:
- Drafting and issuing the final rule to reflect the Zadroga Act when the VCF first re-opened in 2011 and then issuing the revised rule to reflect the December 2015 Reauthorization statute;
- Establishing collaborative, ongoing working relationships with “partner” entities such as the WTC Health Program (NIOSH), local, state and federal agencies, key employers such as FDNY and NYPD and advocacy groups focused on 9/11 issues, all in an effort to ease the burden on claimants and ensure efficient claims processing;
- Establishing an ongoing focus on outreach and communications with claimants, including the VCF website (available in four languages), a toll-free Helpline, town hall meetings and pro bono legal clinics in coordination with the New York City Bar;
- Developing productive working relationships with law firms representing VCF claimants, including frequent conference calls and meetings to keep attorneys updated on VCF progress and activity;
- Design and implementation of the initial claim form and redesign of a simpler form to meet the reauthorization mandate, as well as enhancements to the online system;
- Continuous efforts to improve the quality of claim submissions to support faster review and decision-making and simplify and streamline the claim review process as it evolved;
- Conducting extensive outreach for the Oct. 3, 2013, filing deadline to ensure all potential claimants knew of the deadline and had an easy way to register to preserve their right to file a future claim;
- Hiring of VCF staff and expansion of team to meet claimants’ needs, including identifying and personally training hearing officers to conduct hearings; and
- Improving transparency by providing various public reports on a weekly, quarterly and annual basis, along with frequent “Messages from the Special Master” providing updates on the VCF.
“I am honored to be selected by the Attorney General for this important service,” Bhattacharyya said. “I look forward to working alongside the dedicated VCF staff to ensure that 9/11 claimants promptly receive the payments to which they are entitled.”
Prior to Bhattacharyya’s selection to run the 9/11 VCF, she has served as the Justice Department’s Constitutional and Specialized Torts Branch Director since April 2012. As Director, Bhattacharyya oversees separate groups of attorneys and professional staff for the Vaccine Injury Compensation Program, which has paid in excess of $3.4 billion to more than 4,700 people since the Program’s 1988 inception under the National Childhood Vaccine Injury Act; the Radiation Exposure Compensation Act program, which has awarded more than $2 billion in compassionate compensation to eligible claimants under the Radiation Exposure Compensation Act; and the Constitutional Torts staff, which defends constitutional tort claims brought against federal officials sued in their individual capacities in federal district courts and reviews and makes determinations on requests for individual capacity representation from federal employees. Bhattacharrya has also served informally as an advisor to the Civil Division on matters related to the 9/11 VCF, including implementation of the reauthorizing legislation and promulgation of the associated regulations. She additionally serves as an advisor to other government components on compensation and representation programs, including the newly created U.S. Victims of State Sponsored Terrorism Fund, administered by the Department’s Criminal Division.
Bhattacharyya also served for nearly four years as the Deputy Assistant General Counsel for International Affairs at the U.S. Department of the Treasury, providing legal and legislative advice on a broad range of international economic and financial matters as well as administrative matters including hiring and budget. In 2012, she received an Exceptional Service Award from the Secretary of the Treasury for playing a critical role in framing the legal contours of key national security objectives of the Treasury Department, for contributing significantly to the implementation of the Dodd-Frank Act, particularly with respect to its international implications and for deploying information technology resources to enhance information sharing and streamlining procedures for processing Freedom of Information Act requests.
She previously worked for nearly 12 years as an attorney in the Justice Department’s Civil Division, mostly in the Federal Programs Branch. She was awarded the Attorney General’s John Marshall Award for Outstanding Legal Achievement for Trial Litigation, as well as three Special Commendations from the Assistant Attorney General of the Civil Division for Outstanding Service. Before coming to the Justice Department, Bhattacharyya clerked for then Chief Judge Julia Smith Gibbons of the U.S. District Court for the Western District of Tennessee.
Bhattacharyya received her J.D. from Harvard Law School, a Masters of Arts in Law and Diplomacy (M.A.L.D.) from the Fletcher School of Law and Diplomacy at Tufts University and her B.A. from Tulane University.
For additional information on the Victim Compensation Fund, please visit: www.vcf.gov.
Attorney General Lynch Names Rupa Bhattacharyya as Special Master of the September 11th Victim Compensation FundRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
WASHINGTON – Attorney General Loretta E. Lynch today announced that she has chosen Rupa Bhattacharyya to head the September 11th Victim Compensation Fund (VCF) after current VCF Special Master Sheila L. Birnbaum steps down later this month.
Special Master Birnbaum will continue to the full-time practice of law at Quinn Emanuel, LLP, where she is a partner. Bhattacharyya, who currently serves as Director of the Justice Department’s Constitutional and Specialized Tort Litigation Section in the Civil Division’s Torts Branch, will assume her new position on July 21.“Rupa Bhattacharyya is an exceptional administrator and a devoted public servant, and I am delighted to name her as the new Special Master of the VCF,” said Attorney General Lynch. “Throughout her career at the Treasury and Justice Departments, she has earned a reputation for fairness, efficiency and integrity. I am confident that under her leadership, the VCF will continue to guarantee that those whose lives were forever changed by the events of September 11th, 2001, can receive the compensation they deserve. I thank outgoing Special Master Sheila Birnbaum for her outstanding leadership of the VCF over the last five years and I welcome Ms. Bhattacharyya to her new post.”
“As a life-long New Yorker, serving as Special Master of the VCF has been perhaps the most personally rewarding work of my career,” said Special Master Birnbaum. “My goal from the beginning was to establish a program that is fair, transparent and easy to navigate and I believe we have accomplished this and more over the past five years. It has been a true privilege to work on behalf of the victims of 9/11 and their resilience is inspiring. As the VCF moves into a new chapter following the reauthorization, I know the team is well poised to continue to succeed in compensating those most impacted by the events of Sept. 11, 2001.”
Birnbaum has served as VCF Special Master since May 2011, after the fund created under the James Zadroga 9/11 Health & Compensation Act (Zadroga Act) was signed into law by President Obama on Jan. 2, 2011. The VCF was reauthorized in December 2015 and under Birnbaum’s leadership has rendered award decisions on more than 10,000 claims and paid over $1.8 billion to first responders, recovery workers and residents who suffered physical harm or were killed as a result of the terrorist-related aircraft crashes of Sept. 11, 2001, or the debris removal efforts that took place in the immediate aftermath.
The VCF accomplishments under Birnbaum’s leadership include:
• Drafting and issuing the final rule to reflect the Zadroga Act when the VCF first re-opened in 2011 and then issuing the revised rule to reflect the December 2015 Reauthorization statute; • Establishing collaborative, ongoing working relationships with “partner” entities such as the WTC Health Program (NIOSH), local, state and federal agencies, key employers such as FDNY and NYPD and advocacy groups focused on 9/11 issues, all in an effort to ease the burden on claimants and ensure efficient claims processing; • Establishing an ongoing focus on outreach and communications with claimants, including the VCF website (available in four languages), a toll-free Helpline, town hall meetings and pro bono legal clinics in coordination with the New York City Bar; • Developing productive working relationships with law firms representing VCF claimants, including frequent conference calls and meetings to keep attorneys updated on VCF progress and activity; • Design and implementation of the initial claim form and redesign of a simpler form to meet the reauthorization mandate, as well as enhancements to the online system; • Continuous efforts to improve the quality of claim submissions to support faster review and decision-making and simplify and streamline the claim review process as it evolved; • Conducting extensive outreach for the Oct. 3, 2013, filing deadline to ensure all potential claimants knew of the deadline and had an easy way to register to preserve their right to file a future claim; • Hiring of VCF staff and expansion of team to meet claimants’ needs, including identifying and personally training hearing officers to conduct hearings; and
• Improving transparency by providing various public reports on a weekly, quarterly and annual basis, along with frequent “Messages from the Special Master” providing updates on the VCF.“I am honored to be selected by the Attorney General for this important service,” Bhattacharyya said. “I look forward to working alongside the dedicated VCF staff to ensure that 9/11 claimants promptly receive the payments to which they are entitled.”
Prior to Bhattacharyya’s selection to run the 9/11 VCF, she has served as the Justice Department’s Constitutional and Specialized Torts Branch Director since April 2012. As Director, Bhattacharyya oversees separate groups of attorneys and professional staff for the Vaccine Injury Compensation Program, which has paid in excess of $3.4 billion to more than 4,700 people since the Program’s 1988 inception under the National Childhood Vaccine Injury Act; the Radiation Exposure Compensation Act program, which has awarded more than $2 billion in compassionate compensation to eligible claimants under the Radiation Exposure Compensation Act; and the Constitutional Torts staff, which defends constitutional tort claims brought against federal officials sued in their individual capacities in federal district courts and reviews and makes determinations on requests for individual capacity representation from federal employees. Bhattacharrya has also served informally as an advisor to the Civil Division on matters related to the 9/11 VCF, including implementation of the reauthorizing legislation and promulgation of the associated regulations. She additionally serves as an advisor to other government components on compensation and representation programs, including the newly created U.S. Victims of State Sponsored Terrorism Fund, administered by the Department’s Criminal Division.
Bhattacharyya also served for nearly four years as the Deputy Assistant General Counsel for International Affairs at the U.S. Department of the Treasury, providing legal and legislative advice on a broad range of international economic and financial matters as well as administrative matters including hiring and budget. In 2012, she received an Exceptional Service Award from the Secretary of the Treasury for playing a critical role in framing the legal contours of key national security objectives of the Treasury Department, for contributing significantly to the implementation of the Dodd-Frank Act, particularly with respect to its international implications and for deploying information technology resources to enhance information sharing and streamlining procedures for processing Freedom of Information Act requests.
She previously worked for nearly 12 years as an attorney in the Justice Department’s Civil Division, mostly in the Federal Programs Branch. She was awarded the Attorney General’s John Marshall Award for Outstanding Legal Achievement for Trial Litigation, as well as three Special Commendations from the Assistant Attorney General of the Civil Division for Outstanding Service. Before coming to the Justice Department, Bhattacharyya clerked for then Chief Judge Julia Smith Gibbons of the U.S. District Court for the Western District of Tennessee.
Bhattacharyya received her J.D. from Harvard Law School, a Masters of Arts in Law and Diplomacy (M.A.L.D.) from the Fletcher School of Law and Diplomacy at Tufts University and her B.A. from Tulane University.
For additional information on the Victim Compensation Fund, please visit: www.vcf.gov.
Anchorage Resident Indicted for Health Care Fraud SchemeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was indicted in federal court on one count of committing a health care fraud scheme against the State of Alaska Medicaid program.
Mee Chong Collins, 70, a resident of Anchorage, was charged with executing a scheme involving the submission of numerous fraudulent timesheets beginning in February 2009 through June 2013, falsely claiming that her family members had provided personal care attendant services to four Medicaid recipients. According to the indictment, the services were not provided. It is further alleged that the fraudulent timesheets caused the payment of approximately $337,149.68 in Medicaid funds.
Medicaid is a joint federal and state program that covers health care expenses for low-income and disabled people. Personal care attendants enable Medicaid recipients to remain in their homes, rather than move to an assisted living facility.
The investigation leading to the indictment in this case was conducted by federal and state agencies, including the Federal Bureau of Investigation, the United States Department of Health and Human Services – Office of Inspector General, the Department of Homeland Security, and the State of Alaska Medicaid Fraud Control Unit.
An arraignment date for the defendant has not been set yet by the court.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Allentown Woman Sentenced to Three Years Prison for Straw PurchasesRead the Press Release
Nickaury DeJesus, a/k/a Nickaury DeJesus-Montanez, 22 years old, of Allentown, Pennsylvania, was sentenced late yesterday to 36 months in prison for straw purchasing five firearms in Lehigh County. DeJesus had pleaded guilty to five counts of making false statements to a federalfirearms licensee in connection with the purchase of five semi-automatic pistols. As she admitted in her guilty plea, DeJesus falsely certified when buying each of the pistols that she was the actual purchaser when, in fact, she was buying them for another person or persons.
Over an approximately month-and-a-half period in April and May 2015, DeJesus straw purchased the five handguns at two federal firearms licensees in Breinigsville and Whitehall, Pennsylvania. Two of those firearms were subsequently recovered during arrests of persons in Allentown and Brooklyn, New York. Another two of the firearms straw purchased by DeJesus were charged in a federal indictment, in which DeJesus was not charged, alleging seven armed robberies of commercial establishments in Allentown in May 2015.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Allentown Police Department and was prosecuted by Assistant United States Attorney Eric Boden with assistance provided by the Lehigh County District Attorney’s Office.
Additional Charges of Sex Trafficking in “Sinful Innocence” Prostitution CaseRead the Press Release
BOSTON – A Springfield couple was charged in U.S. District Court in Springfield today with additional crimes of sex trafficking in connection with operating a prostitution business advertised as Sinful Innocence.
Milford Lewis, 35, and Tiana Lewis, 31, were charged in a superseding indictment with conspiracy to commit sex trafficking, sex trafficking, interstate transportation to engage in prostitution, interstate inducement to engage in prostitution, and extortionate threats.
In January 2016, Milford and Tiana Lewis were originally charged in a ten count indictment with conspiracy to commit sex trafficking, sex trafficking, interstate transportation to engage in prostitution, interstate inducement to engage in prostitution, and extortionate threats. The superseding indictment contains eight additional charges relating to five additional sex trafficking victims.
According to charging documents, beginning in August 2015, Milford and Tiana Lewis were the CEOs of Sinful Innocence, which purported to be a talent agency for the adult entertainment industry. Through the purported talent agency, the Lewis’s recruited and induced young women to work as models, adult entertainers, adult pornography actors, and escorts. It is alleged that the Lewis’s convinced the women to travel to Springfield from other states, and in one case, they picked a woman up from Connecticut and drove her to Springfield. The young women were quickly put to work as prostitutes at a house in Springfield and in motels in West Springfield, sometimes without receiving pay. Women who wanted to leave or who broke the rules of Sinful Innocence were subjected to beatings and threats to kill or harm them. The women were also allegedly threatened with violence when they were unable to pay a termination fee imposed by Sinful Innocence.
The charge of sex trafficking and conspiracy to commit sex trafficking each provides for a sentence of no greater than a lifetime in prison, five years of supervised release and a fine of $250,000. The sex trafficking statute also imposes a mandatory minimum sentence of 15 years in prison for offenses committed by means of force, threats of force, fraud, or coercion. The charge of interstate inducement to engage in prostitution provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine $250,000. The charge of interstate transportation to engage in prostitution provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine $250,000. The charge of extortionate threats provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz; Hampden County District Attorney Anthony D. Gulluni; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; West Springfield Police Chief Ronald Campurciani; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Office.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is brought as a result of the investigative collaboration of the Western Massachusetts Human Trafficking Working Group, which includes the United States Attorney’s Office, the Massachusetts Attorney General’s Office, and the Hampden County District Attorney’s Office, as well as federal, state, and local law enforcement agencies. The Working Group began meetings in August 2015 to work cooperatively to address crimes involving commercial sex trafficking in Western Massachusetts.
A Dominican National Indicted for Illegally Re-Entering the U.S.Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Jose Ricardo Pena yesterday for illegally re-entering the United States after having been previously deported.
According to U.S. Attorney Peter Smith, Pena, a 50 year old Dominican national was arrested by officers of U.S. Immigration and Customs Enforcement on May 4, 2016 as a result of a May 2016 conviction for felony drug trafficking in Dauphin County, Pennsylvania. Pena had previously been deported after an Immigration Judge ordered his removal following a conviction for drug offenses in Boston, MA.
The matter was investigated by the U.S. Department of Homeland Security/ Immigration and Customs Enforcement and Removal Operations and the case is being prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense under federal law is 10 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.
# # #
20 July 2016
Zuni Pueblo Man Pleads Guilty to Federal Firearms and Residential Burglary ChargesRead the Press Release
ALBUQUERQUE – John David Lee Bacy, 24, a member and resident of Zuni Pueblo, N.M., pled guilty today to firearms and residential burglary charges.
Bacy was charged in a three-count indictment filed on March 23, 2016, with unlawfully possessing stolen firearms on Aug. 13 and 14, 2014, and with residential burglary on Aug. 13, 2014. According to the indictment, Bacy committed these crimes on Zuni Pueblo in McKinley County, N.M.
During today’s proceedings, Bacy pled guilty to unlawfully possessing stolen firearms and committing a residential burglary on Aug. 13, 2014. In entering the guilty plea, Bacy admitted entering a residence on the Zuni Indian Reservation, prying open a gun safe, and taking firearms without the owner’s authorization. Bacy also admitted that he attempted to pawn three of the firearms the next day.
At sentencing, Bacy faces a maximum penalty of ten years in federal prison for possessing stolen firearms and a maximum penalty of three years for residential burglary. Bacy remains in federal custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Zuni Pueblo Tribal Police Department and the McKinley County Sheriff’s Office. Assistant U.S. Attorney Joseph Spindle is prosecuting the case.
West Coast Crips Street Gang Member Sentenced to Life in Prison for Racketeering Conspiracy Involving Murders, Sex Trafficking and RobberyRead the Press Release
Contact Assistant U.S. Attorneys Todd Robinson (619) 546-7994 and David Leshner (619) 546-7921
NEWS RELEASE SUMMARY – July 20, 2016
SAN DIEGO, CA – West Coast Crips gang member Wilbert Ross was sentenced in federal court today to life in prison for his role in a racketeering enterprise involving execution-style murders, a takeover robbery, witness intimidation and sex trafficking.
Ross is the first of four West Coast Crips members to be sentenced following conviction by a federal jury in March. The jury found defendants Ross, Terry Carry Hollins, Jermaine Gerald Cook and Marcus Anthony Foreman guilty of Conspiracy to Conduct Enterprise Affairs through a Pattern of Racketeering Activity at the conclusion of a five-week trial and about eight hours of deliberations. The jury also found Ross guilty of two counts of sex trafficking.
U.S. District Judge Dana Sabraw sentenced Ross to life on the RICO conspiracy count, 10 years for sex trafficking of a minor and 15 years for sex trafficking by force, fraud or coercion. The judge also ordered Ross to pay $42,803 in restitution resulting from multiple homicides.
Hollins is scheduled to be sentenced on Wednesday July 27 at 9:30 a.m.; Cook and Foreman are set for sentencing on August 26 at 1 p.m., all before U.S. District Judge Dana M. Sabraw,
The four convicted defendants were arrested and charged in 2014 as part of a larger investigation involving 36 other defendants. Thirty-four have pleaded guilty. One, Cleotha Young, went to trial in June 2015, was convicted by a jury and sentenced to 20 years in prison. The lead defendant, Randy Graves, was convicted by a jury on April 4, 2016, and is scheduled to be sentenced on July 26 at 9:30am.
“It’s a relief to know that this ruthless gang member will never again bring violence into San Diego neighborhoods,” said U.S. Attorney Laura Duffy. “This life sentence is a strong signal to gangs that you are not invincible, and you will be held accountable.”
“Today’s life sentence sends a strong message to all gang members who commit acts of violence and threaten the safety of our community,” said FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI will continue to work tirelessly to dismantle violent street gangs that victimize our community.”
The federal racketeering statute known as “RICO” historically has been used to prosecute mobsters and organized crime, but federal prosecutors have been using the statute on street gangs in recent years because the gangs are increasingly acting as organized criminal enterprises.
During this trial, prosecutors set out to show the jury how the defendants worked together as a criminal enterprise to commit six murders, to use a 15-year-old girl and another female as prostitutes, and to commit robbery on behalf of the West Coast Crips.
The government called about 100 witnesses, including several street gang members, a shooting victim, friends and associates of the defendants, representatives from the Medical Examiner’s Office and dozens of San Diego Police Department homicide and gang detectives, police officers and criminalists.
The evidence presented by the government included court-authorized wiretap interceptions and recordings of telephone, cell phone and jailhouse conversations between the defendants and others, as well as cell phone videos of the defendants celebrating their West Coast Crips membership and discussing the crimes they were committing.
This case was prosecuted by Assistant U.S. Attorneys Todd Robinson, David Leshner, Jose Castillo and Stephen Wong.
These guilty verdicts are the fruit of the collaborative work of the FBI’s East County Regional Gang Task Force and the Violent Crimes Gang Task Force, the San Diego Police Department’s gang and homicide units; the ATF; the El Cajon Police Department; the La Mesa Police Department; San Diego County Probation; the IRS; U.S. Postal Inspectors; the San Diego County Sheriff’s Department; and the California Highway Patrol.
This investigation was coordinated by an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was created to consolidate and coordinate all law enforcement resources in this country's
battle against major drug trafficking rings, drug kingpins, and money launderers.
DEFENDANTS
Case Number: 14mj1494
Wilbert Ross Age: 32 Chula Vista
Terry Carry Hollins Age: 33 San Diego
Jermaine Gerald Cook Age: 31 San Diego
Marcus Anthony Foreman Age: 28 San Diego
SUMMARY OF CHARGES
All Defendants:
Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity, in violation of Title 18, U.S.C. Section 1962 (d)
Maximum Penalty, based on the underlying racketeering crimes: Up to life in prison.
Defendant Ross:
Sex Trafficking of a Minor, in violation of 18 USC 1591
Maximum Penalty: Life in prison
Sex Trafficking by Force, Fraud or Coercion, in violation of 18 USC 1591
Maximum Penalty: Life in prison
INVESTIGATING AGENCIES
San Diego Police Department Gang and Homicide Units
East County Regional Gang Task Force
Violent Crimes Task Force - Gang Group
Task Force agencies include:
FBI
San Diego Police Department
ATF
El Cajon Police Department
La Mesa Police Department
San Diego County Probation
IRS
U.S. Postal Inspectors
San Diego County Sheriff’s Department
California Highway Patrol.
Used Car Dealership Owner Sentenced for Defrauding Navy FederalRead the Press Release
NORFOLK, Va. – Andysheh Ayatollahi, 36, formerly of Virginia Beach, Virginia, was sentenced today to 74 months in prison, followed by 4 years of supervised release, and ordered to pay $980,541.43 in restitution for conspiracy to commit financial institution fraud and filing a false tax return.
Ayatollahi pleaded guilty on March 14, 2016. According to court documents, in July 2007 Ayatollahi purchased a 50 percent interest in the Car Store, a used car dealership located in Virginia Beach. From then until May 2008, when the Car Store closed, Ayatollahi conspired with others, including Car Store personnel, to defraud Navy Federal Credit Union (NFCU). Ayatollahi and his co-conspirators engaged in fraudulent practices that included using individuals as straw buyers/borrowers to apply to NFCU for car loans because the actual buyers were not sufficiently creditworthy to qualify for a car loan. Ayatollahi also submitted fraudulent car loan applications to NFCU with false supporting documents; made telephone calls to NFCU impersonating buyers applying for car loans; provided false employer telephone numbers to NFCU and then impersonated the employer while verifying the applicant’s employment and wages; and fraudulently inflated the true purchase price of vehicles and split the excess with the buyers. In total, Ayatollahi fraudulently caused NFCU to issue 61 car loans with a total loan amount of $1,168,904.97. Most of these loans went into default, resulting in a loss to NFCU of approximately $867,448.43. Additionally, Ayatollahi filed false tax returns with the IRS that underreported his income for tax years 2005-2007, resulting in a tax loss of $113,093.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and Thomas Jankowski, Special Agent in Charge, Washington Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:10cr15.
United States, Enbridge Reach $177 Million Settlement After 2010 Oil Spills in Michigan and IllinoisRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency today announced a settlement with Enbridge Energy Limited Partnership and several related Enbridge companies to resolve claims stemming from its 2010 oil spills in Marshall, Michigan, and Romeoville, Illinois. Enbridge has agreed to spend at least $110 million on a series of measures to prevent spills and improve operations across nearly 2,000 miles of its pipeline system in the Great Lakes region. Enbridge will also pay civil penalties totaling $62 million for Clean Water Act violations -- $61 million for discharging at least 20,082 barrels of oil in Marshall and $1 million for discharging at least 6,427 barrels of oil in Romeoville.
In addition, the proposed settlement will resolve Enbridge’s liability under the Oil Pollution Act, based on Enbridge’s commitment to pay over $5.4 million in unreimbursed costs incurred by the government in connection with cleanup of the Marshall spill, as well as all future removal costs incurred by the government in connection with that spill. Today’s settlement includes an extensive set of specific requirements to prevent spills and enhance leak detection capabilities throughout Enbridge’s Lakehead pipeline system - a network of 14 pipelines spanning nearly 2,000 miles across seven states. Enbridge must also take major actions to improve its spill preparedness and emergency response programs. Under the settlement, Enbridge is also required to replace close to 300 miles of one of its pipelines, after obtaining all necessary approvals. Enbridge’s Lakehead System delivers approximately 1.7 million barrels of oil in the United States each day.
“This settlement will make the delivery of our nation’s energy resources safer and more environmentally responsible,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “It requires Enbridge to take robust measures to improve the maintenance and monitoring of its Lakehead pipeline system, protecting lakes, rivers, land and communities across the upper midwest, as well as pay a significant penalty.”
In addition to payments required under the proposed settlement, Enbridge has already reimbursed the government for $57.8 million in cleanup costs from the Marshall spill and $650,000 for cleanup costs from the Romeoville spill and Enbridge reportedly incurred costs in excess of $1 billion for required cleanup activities relating to the Marshall and Romeoville spills.
“This agreement puts in place advanced leak detection and monitoring requirements to make sure a disaster like this one doesn’t happen again,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This comprehensive program – including an independent third party to audit compliance – will protect our waterways and the people who depend on them.”
“My office is pleased with this settlement, which not only provides financial accountability for the environmental harm caused by the oil spill in Marshall but also puts in place significant measures to protect the people and vital natural resources of this district going forward,” said U.S. Attorney Patrick Miles Jr. for the Western District of Michigan. “Prevention of future pipeline leaks and immediate detection and repair of problem areas are critical when protecting health and the environment. With the EPA and our other federal partners, the U.S. Attorney’s Office will vigorously enforce the Clean Water Act and other federal environmental laws in this district.”
“This was one of the largest inland oil spills in U.S. history when Enbridge discharged one million gallons of oil to Talmadge Creek near Marshall,” said Acting EPA Regional Administrator Robert Kaplan. “Together with our state and local emergency responders, EPA was able to contain the spill before it reached the Great Lakes. After 22 months of arduous cleanup work, the Kalamazoo River finally reopened for recreational activities.”
Under the settlement, Enbridge is committing to the following measures, which it estimates will cost at least $110 million:
- Implement an enhanced pipeline inspection and spill prevention program;
- Implement enhanced measures to improve leak detection and control room operations;
- Commit to additional leak detection and spill prevention requirements for a portion of Enbridge’s Line 5 that crosses the Straits of Mackinac in Michigan;
- Create and maintain an integrated database for its Lakehead Pipeline System;
- Enhance its emergency spill response preparedness programs by conducting four emergency spill response exercises to test and practice Enbridge’s response to a major inland oil spill;
- Improve training and coordination with state and local emergency responders by requiring incident command system training for employees, provide training to local responders, participate in area response planning and organize response exercises;
- Hire an independent third party to assist with review of implementation of the requirements in the settlement agreement;
The government’s complaint alleges that Enbridge owned or operated a 30 inch-pipeline, known as Line 6B, that ruptured near Marshall on July 25, 2010, discharging oil into the environment. Although the Line 6B rupture triggered numerous alarms in Enbridge’s control room, Enbridge failed to recognize a pipeline had ruptured until at least 17 hours later. In the meantime, Enbridge had restarted Line 6B on two separate occasions on July 26, 2010, pumping additional oil into the ruptured pipeline causing additional discharges of oil into the environment. Ultimately, Line 6B discharged at least 20,082 barrels of crude oil, much of which entered Talmadge Creek and flowed into the Kalamazoo River which flows to Lake Michigan. Flooding caused by heavy rains pushed the discharged oil over the river's banks into its flood plains and accelerated its migration over 35 miles downstream before it was contained. Enbridge later replaced Line 6B, which originates in Griffith, Ind., crosses the lower peninsula of Michigan and ends in Sarnia, Canada, with a new, larger pipeline, also known as Line 6B. The rupture and discharges were caused by stress corrosion cracking on the pipeline, control room misinterpretations and other problems and pervasive organization failures at Enbridge.
The complaint also alleges that on Sept. 9, 2010, another Enbridge pipeline, known as Line 6A, discharged at least 6,427 barrels of oil which Romeoville, much of which flowed through a drainage ditch into a retention pond in Romeoville.
There will be a 30 day public comment period on the consent decree lodged today. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website: www.justice.gov/enrd/consent-decrees.
- Implement an enhanced pipeline inspection and spill prevention program;
United States, Enbridge Reach $177 Million Settlement After 2010 Oil Spills in Michigan and IllinoisRead the Press Release
Settlement Requires Action to Prevent Future Spills
WASHINGTON - The Department of Justice and the U.S. Environmental Protection Agency today announced a settlement with Enbridge Energy Limited Partnership and several related Enbridge companies to resolve claims stemming from its 2010 oil spills in Marshall, Michigan, and Romeoville, Illinois. Enbridge has agreed to spend at least $110 million on a series of measures to prevent spills and improve operations across nearly 2,000 miles of its pipeline system in the Great Lakes region. Enbridge will also pay civil penalties totaling $62 million for Clean Water Act violations-- $61 million for discharging at least 20,082 barrels of oil in Marshall and $1 million for discharging at least 6,427 barrels of oil in Romeoville.
In addition, the proposed settlement will resolve Enbridge's liability under the Oil Pollution Act, based on Enbridge's commitment to pay over $5.4 million in unreimbursed costs incurred by the government in connection with cleanup of the Marshall spill, as well as all future removal costs incurred by the government in connection with that spill. Today's settlement includes an extensive set of specific requirements to prevent spills and enhance leak detection capabilities throughout Enbridge's Lakehead pipeline system- a network of 14 pipelines spanning nearly 2,000 miles across seven states. Enbridge must also take major actions to improve its spill preparedness and emergency response programs. Under the settlement, Enbridge is also required to replace close to 300 miles of one of its pipelines, after obtaining all necessary approvals. Enbridge's Lakehead System delivers approximately 1.7 million barrels of oil in the United States each day.
"This settlement will make the delivery of our nation's energy resources safer and more environmentally responsible," said Assistant Attorney General John C. Cruden for the Justice Department's Environment and Natural Resources Division. "It requires Enbridge to take robust measures to improve the maintenance and monitoring of its Lakehead pipeline system, protecting lakes, rivers, land and communities across the upper midwest, as well as pay a significant penalty."
In addition to payments required under the proposed settlement, Enbridge has already reimbursed the government for $57.8 million in cleanup costs from the Marshall spill and $650,000 for cleanup costs from the Romeoville spill and Enbridge reportedly incurred costs in excess of $1 billion for required cleanup activities relating to the Marshall and Romeoville spills.
"This agreement puts in place advanced leak detection and monitoring requirements to make sure a disaster like this one doesn't happen again," said Assistant Administrator Cynthia Giles for EPA's Office ofEnforcement and Compliance Assurance. "This comprehensive program - including an independent third party to audit compliance - will protect our waterways and the people who depend on them."
"My office is pleased with this settlement, which not only provides financial accountability for the environmental harm caused by the oil spill in Marshall but also puts in place significant measures to protect the people and vital natural resources of this district going forward," said U.S. Attorney Patrick Miles Jr. for the Western District of Michigan. "Prevention of future pipeline leaks and immediate detection and repair of problem areas are critical when protecting health and the environment. With the EPA and our other federal partners, the U:S. Attorney's Office will vigorously enforce the Clean Water Act and other federal environmental laws in this district."
"This was one of the largest inland oil spills in U.S. history when Enbridge discharged one million gallons of oil to Talmadge Creek near Marshall," said Acting EPA Regional Administrator Robert Kaplan. "Together with our state and local emergency responders, EPA was able to contain the spill before it reached the Great Lakes. After 22 months of arduous cleanup work, the Kalamazoo River finally reopened for recreational activities."
Under the settlement, Enbridge is committing to the following measures, which it estimates will cost at least $110 million:
• Implement an enhanced pipeline inspection and spill prevention program;
• Implement enhanced measures to improve leak detection and control room operations;
• Commit to additional leak detection and spill prevention requirements for a portion of
Enbridge's Line 5 that crosses the Straits of Mackinac in Michigan;
• Create and maintain an integrated database for its Lakehead Pipeline System;
• Enhance its emergency spill response preparedness programs by conducting four emergency spill response exercises to test and practice Enbridge's response to a major inland oil spill;
• Improve training and coordination with state and local emergency responders by requiring incident command system raining for employees, provide training to local responders, participate in area response planning and organize response exercises;
• Hire an independent third party to assist with review of implementation of the requirements in the settlement agreement;
The government's complaint alleges that Enbridge owned or operated a 30 inch-pipeline, known as Line 6B, that ruptured near Marshall on July 25, 2010, discharging oil into the environment. Although the Line 6B rupture triggered numerous alarms in Enbridge's control room, Enbridge failed to recognize a pipeline had ruptured until at least 17 hours later. In the meantime, Enbridge had restarted Line 6B on two separate occasions on July 26, 2010, pumping additional oil into the ruptured pipeline causing additional discharges of oil into the environment. Ultimately, Line 6B discharged at least 20,082 barrels of crude oil, much of which entered Talmadge Creek and flowed into the Kalamazoo River which flows to Lake Michigan. Flooding caused by heavy rains pushed the discharged oil over the river's banks into its flood plains and accelerated its migration over 35 miles downstream before it was contained. Enbridge later replaced Line 6B, which originates in Griffith, Ind., crosses the lower peninsula of Michigan and ends in Sarnia, Canada, with a new, larger pipeline, also known as Line 6B. The rupture and discharges were caused by stress corrosion cracking on the pipeline, control room misinterpretations and other problems and pervasive organization failures at Enbridge.
The complaint also alleges that on Sept. 9, 2010, another Enbridge pipeline, known as Line 6A, discharged at least 6,427 barrels of oil which Romeoville, much of which flowed through a drainage ditch into a retention pond in Romeoville.
There will be a 30 day public comment period on the consent decree lodged today. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice's website: www.justice.gov/enrd/consent-decrees.
END
16-838
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
United States Seeks to Recover more than $1 Billion Obtained from Corruption involving Malaysian Sovereign Wealth FundRead the Press Release
LOS ANGELES – The Justice Department announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of more than $1 billion in assets associated with an international conspiracy to launder funds misappropriated from a Malaysian sovereign wealth fund.
More than $3.5 billion in funds belonging to 1Malaysia Development Berhad (1MDB) was allegedly misappropriated by high-level officials of 1MDB and their associates from 2009 through 2015, according to the 16 complaints filed today in United States District Court in Los Angeles. With today’s complaints, the United States seeks to recover more than $1 billion laundered through the United States and traceable to the conspiracy.
1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people. Instead, as detailed in the complaints, 1MDB officials and their associates allegedly misappropriated more than $3 billion.
Attorney General Loretta E. Lynch announced the filing of the complaints this morning at a news conference in Washington, D.C. The Attorney General was joined in the announcement by United States Attorney Eileen M. Decker, Assistant Attorney General Leslie R. Caldwell, FBI Deputy Director Andrew G. McCabe and Chief Richard Weber of the Internal Revenue Service - Criminal Investigation.
Today’s complaints represent the largest single action ever brought under the Justice Department’s Kleptocracy Asset Recovery Initiative.
“The Department of Justice will not allow the American financial system to be used as a conduit for corruption,” said Attorney General Lynch. “With this action, we are seeking to forfeit and recover funds that were intended to grow the Malaysian economy and support the Malaysian people. Instead, they were stolen, laundered through American financial institutions and used to enrich a few officials and their associates. Corrupt officials around the world should make no mistake that we will be relentless in our efforts to deny them the proceeds of their crimes.”
“Stolen money that is subsequently used to purchase interests in music companies, artwork or high-end real estate is subject to forfeiture under U.S. law,” said U.S. Attorney Decker. “Today’s actions are the result of the tremendous dedication of attorneys in my office and the Department of Justice, as well as law enforcement agents across the country. All of us are committed to sending a message that we will not allow the United States to become a playground for the corrupt, a platform for money laundering or a place to hide and invest stolen riches.”
As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – allegedly diverted more than $3.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and fraudulent shell companies with bank accounts located in the Singapore, Switzerland, Luxembourg and the United States. These transactions were allegedly intended to conceal the origin, source and ownership of the funds, and were ultimately processed through U.S. financial institutions and were used to acquire and invest in assets located in the United States.
In seeking recovery of more than $1 billion, the complaints detail the alleged misappropriation of 1MDB’s assets as it occurred over the course of at least three schemes. In 2009, the complaints allege that 1MDB officials and their associates embezzled approximately $1 billion that was intended to be invested to exploit energy concessions purportedly owned by a foreign partner. Instead, the funds were transferred through shell companies and were used to acquire a number of assets, as set forth in the complaints. The complaints also allege that the co-conspirators misappropriated more than $1.3 billion in funds raised through two bond offerings in 2012 and $1.2 billion following another bond offering in 2013. As further detailed in the complaints, the stolen funds were laundered into the United States and used by the co-conspirators to acquire and invest in various assets.
These assets allegedly included high-end real estate and hotel properties in New York and Los Angeles, a $35 million jet aircraft, works of art by Vincent Van Gogh and Claude Monet, an interest in the music publishing rights of EMI Music and the production of the 2013 film The Wolf of Wall Street.
“According to the allegations in the complaints, this is a case where life imitated art,” said Assistant Attorney General Caldwell. “The associates of these corrupt 1MDB officials are alleged to have used some of the illicit proceeds of their fraud scheme to fund the production of The Wolf of Wall Street, a movie about a corrupt stockbroker who tried to hide his own illicit profits in a perceived foreign safe haven. But whether corrupt officials try to hide stolen assets across international borders – or behind the silver screen – the Department of Justice is committed to ensuring that there is no safe haven.”
“The United States will not be a safe haven for assets stolen by corrupt foreign officials,” said FBI Deputy Director McCabe. “Public corruption, no matter where it occurs, is a threat to a fair and competitive global economy. The FBI is committed to working with our foreign and domestic partners to identify and return these stolen assets to their legitimate owners, the Malaysian people. I want to thank the FBI and IRS investigative team who worked with the prosecutors and our international partners on this case.”
“Today’s announcement underscores the breadth of the alleged corruption and money laundering related to the 1MDB fund,” said IRS-CI Chief Weber. “We cannot allow the massive, brazen and blatant diversion of billions of dollars to be laundered through U.S. financial institutions without consequences.”
The FBI’s International Corruption Unit and IRS-CI investigated the case. Los Angeles-based Assistant U.S. Attorneys John Kucera and Christen Sproule, along with Deputy Chief Woo S. Lee and Trial Attorney Kyle R. Freeny of the Criminal Division’s Asset Forfeiture and Money Laundering Section, are prosecuting the case. The Criminal Division’s Office of International Affairs provided additional assistance.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] or https://tips.fbi.gov/.
United States Seeks to Recover More Than $1 Billion Obtained from Corruption Involving Malaysian Sovereign Wealth FundRead the Press Release
Attorney General Loretta E. Lynch announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of more than $1 billion in assets associated with an international conspiracy to launder funds misappropriated from a Malaysian sovereign wealth fund. Today’s complaints represent the largest single action ever brought under the Kleptocracy Asset Recovery Initiative.
Attorney General Lynch was joined in the announcement by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, FBI Deputy Director Andrew G. McCabe and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI).
According to the complaints, from 2009 through 2015, more than $3.5 billion in funds belonging to 1Malaysia Development Berhad (1MDB) was allegedly misappropriated by high-level officials of 1MDB and their associates. With today’s complaints, the United States seeks to recover more than $1 billion laundered through the United States and traceable to the conspiracy. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people. Instead, as detailed in the complaints, 1MDB officials and their associates allegedly misappropriated more than $3 billion.
“The Department of Justice will not allow the American financial system to be used as a conduit for corruption,” said Attorney General Lynch. “With this action, we are seeking to forfeit and recover funds that were intended to grow the Malaysian economy and support the Malaysian people. Instead, they were stolen, laundered through American financial institutions and used to enrich a few officials and their associates. Corrupt officials around the world should make no mistake that we will be relentless in our efforts to deny them the proceeds of their crimes. ”
“According to the allegations in the complaints, this is a case where life imitated art,” said Assistant Attorney General Caldwell. “The associates of these corrupt 1MDB officials are alleged to have used some of the illicit proceeds of their fraud scheme to fund the production of The Wolf of Wall Street, a movie about a corrupt stockbroker who tried to hide his own illicit profits in a perceived foreign safe haven. But whether corrupt officials try to hide stolen assets across international borders – or behind the silver screen – the Department of Justice is committed to ensuring that there is no safe haven.”
“Stolen money that is subsequently used to purchase interests in music companies, artwork or high-end real estate is subject to forfeiture under U.S. law,” said U.S. Attorney Decker. “Today’s actions are the result of the tremendous dedication of attorneys in my office and the Department of Justice, as well as law enforcement agents across the country. All of us are committed to sending a message that we will not allow the United States to become a playground for the corrupt, a platform for money laundering or a place to hide and invest stolen riches.”
“The United States will not be a safe haven for assets stolen by corrupt foreign officials,” said Deputy Director McCabe. “Public corruption, no matter where it occurs, is a threat to a fair and competitive global economy. The FBI is committed to working with our foreign and domestic partners to identify and return these stolen assets to their legitimate owners, the Malaysian people. I want to thank the FBI and IRS investigative team who worked with the prosecutors and our international partners on this case.”
“Today’s announcement underscores the breadth of the alleged corruption and money laundering related to the 1MDB fund,” said Chief Weber. “We cannot allow the massive, brazen and blatant diversion of billions of dollars to be laundered through U.S. financial institutions without consequences.”
As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – allegedly diverted more than $3.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and fraudulent shell companies with bank accounts located in the Singapore, Switzerland, Luxembourg and the United States. These transactions were allegedly intended to conceal the origin, source and ownership of the funds, and were ultimately processed through U.S. financial institutions and were used to acquire and invest in assets located in the United States.
In seeking recovery of more than $1 billion, the complaints detail the alleged misappropriation of 1MDB’s assets as it occurred over the course of at least three schemes. In 2009, the complaints allege that 1MDB officials and their associates embezzled approximately $1 billion that was intended to be invested to exploit energy concessions purportedly owned by a foreign partner. Instead, the funds were transferred through shell companies and were used to acquire a number of assets, as set forth in the complaints. The complaints also allege that the co-conspirators misappropriated more than $1.3 billion in funds raised through two bond offerings in 2012 and $1.2 billion following another bond offering in 2013. As further detailed in the complaints, the stolen funds were laundered into the United States and used by the co-conspirators to acquire and invest in various assets. These assets allegedly included high-end real estate and hotel properties in New York and Los Angeles, a $35 million jet aircraft, works of art by Vincent Van Gogh and Claude Monet, an interest in the music publishing rights of EMI Music and the production of the 2013 film The Wolf of Wall Street.
The FBI’s International Corruption Unit and the IRS-CI investigated the case. Deputy Chief Woo S. Lee and Trial Attorney Kyle R. Freeny of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys John Kucera and Christen Sproule of the Central District of California prosecuted the case. The Criminal Division’s Office of International Affairs provided additional assistance.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] or https://tips.fbi.gov/.
* * *
Documents: Documents and Resources from the July 20, 2016 Press Conference Announcing Significant Kleptocracy Enforcement Action to Recover More Than $1 Billion Obtained from Corruption Involving Malaysian Sovereign Wealth Fund
Video: Attorney General Lynch Announces a Kleptocracy Enforcement Action to Recover More Than $1 Billion Obtained from Corruption Involving Malaysian Sovereign Wealth Fund
U.S. Authorities Charge Owner of Most-Visited Illegal File-Sharing Website with Copyright InfringementRead the Press Release
U.S. authorities have charged the alleged owner of today’s most visited illegal file-sharing website with criminal copyright infringement and have seized domain names associated with the website.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Artem Vaulin, 30, of Kharkiv, Ukraine, was arrested today in Poland and is charged by criminal complaint, filed in U.S. District Court in Chicago, with one count of conspiracy to commit criminal copyright infringement, one count of conspiracy to commit money laundering and two counts of criminal copyright infringement. The United States will seek to extradite Vaulin to the United States.
“Vaulin is charged with running today’s most visited illegal file-sharing website, responsible for unlawfully distributing well over $1 billion of copyrighted materials,” said Assistant Attorney General Caldwell. “In an effort to evade law enforcement, Vaulin allegedly relied on servers located in countries around the world and moved his domains due to repeated seizures and civil lawsuits. His arrest in Poland, however, demonstrates again that cybercriminals can run, but they cannot hide from justice.”
“Copyright infringement exacts a large toll, a very human one, on the artists and businesses whose livelihood hinges on their creative inventions,” said U.S. Attorney Fardon. “Vaulin allegedly used the Internet to cause enormous harm to those artists. Our Cybercrimes Unit at the U.S. Attorney’s Office in Chicago will continue to work with our law enforcement partners around the globe to identify, investigate and prosecute those who attempt to illegally profit from the innovation of others.”
“Artem Vaulin was allegedly running a worldwide digital piracy website that stole more than $1 billion in profits from the U.S. entertainment industry,” said Executive Associate Director Edge. “Protecting legitimate commerce is one of HSI’s highest priorities. With the cooperation of our law enforcement partners, we will continue to aggressively bring to justice those who enrich themselves by stealing the creative work of U.S. artists.”
“Investigating cyber-enabled schemes is a top priority for CI,” said Chief Weber. “Websites such as the one seized today brazenly facilitate all kinds of illegal commerce. Criminal Investigation is committed to thoroughly investigating financial crimes, regardless of the medium. We will continue to work with our law enforcement partners to unravel this and other complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their income and use the Internet to mask their true identity.”
According to the complaint, Vaulin allegedly owns and operates Kickass Torrents or KAT, a commercial website that has enabled users to illegally reproduce and distribute hundreds of millions of copyrighted motion pictures, video games, television programs, musical recordings and other electronic media since 2008. The copyrighted material is collectively valued at well over $1 billion, according to the complaint. The complaint alleges that KAT receives more than 50 million unique visitors per month and is estimated to be the 69th most frequently visited website on the internet.
In addition, a federal court in Chicago ordered the seizure of one bank account and seven domain names associated with the alleged KAT conspiracy.
According to the complaint, KAT has consistently made available for download movies that were still in theaters and displayed advertising throughout its site. KAT’s net worth has been estimated at more than $54 million, with estimated annual advertising revenue in the range of $12.5 million to $22.3 million, according to the complaint. The complaint alleges that the site operates in approximately 28 languages. KAT has moved its domains several times due to numerous seizures and copyright lawsuits, and it has been ordered blocked by courts in the United Kingdom, Ireland, Italy, Denmark, Belgium and Malaysia, according to the complaint. KAT has allegedly operated at various times under the domains kickasstorrents.com, kat.ph, kickass.to, kickass.so and kat.cr, and relied on a network of computer servers located around the world, including in Chicago.
Several motion pictures currently available for download and sharing on KAT are still showing in theatres, including “Captain America: Civil War,” “Now You See Me 2,” “Independence Day: Resurgence” and “Finding Dory,” according to the complaint. The complaint alleges that Vaulin, who used the screen name “tirm,” was involved in designing KAT’s original website, oversaw KAT’s operations and, during the latter part of the conspiracy, Vaulin allegedly operated KAT under the auspices of a Ukrainian-based front company called Cryptoneat.
The charges and allegations contained in the complaint are merely accusations. The defendant is presumed innocent until and unless proven guilty.
HSI and IRS-CI investigated the case with substantial assistance from the International Organized Crime Intelligence and Operations Center, the National Intellectual Property Rights Coordination Center, the Criminal Division’s Office of International Affairs and the Polish Border Guard and National Prosecutor’s Office.
Senior Counsel Ryan K. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys William E. Ridgway and Devlin N. Su of the Northern District of Illinois are prosecuting the case. The Criminal Division’s Office of International Affairs also provided significant assistance in this case.
Two Stock Promoters Charged with Securities Fraud in Connection with Scheme to Fraudulently Register Shell Companies and Secretly Sell StockRead the Press Release
Two 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 Commission (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.
Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, formerly of El Dorado Hills, California, were charged by criminal information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 1348 and Title 18, United States Code, Section 1350. McKelvey and Lamson 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 Robert N. Scola Jr. in Miami.
According to court documents, McKelvey, Lamson and other conspirators, including persons located in the Southern District of Florida, 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. 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, 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 information to the Financial Industry Regulatory Authority (FINRA) to obtain authorization for the company’s shares to be publicly traded (traded “over the counter”). Forms and other materials submitted to FINRA, would falsely describe 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 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.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the U.S. Securities and Exchange Commission’s Miami Regional Office, which previously filed a civil enforcement action against 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.
Two Nurses Plead Guilty to Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERICA EDWARDS, age 31, of New Orleans, and JEFF KOON, age 43, of Lockport, each pleaded guilty today to one count of health care fraud.
On April 21, 2016, EDWARDS and KOON were charged along with 12 other defendants in a 31-count superseding indictment charging approximately $30,252,906 in Medicare fraud. According to court documents, EDWARDS and KOON worked as RNs for ABIDE. Their duties included assessing the status of their patients, initiating a plan of care, evaluating patient needs, providing comprehensive nursing care, among other things. KOON and EDWARDS pleaded guilty to fraudulently recertifying patients for home health by recording false changes in medications and exacerbations in medication conditions that did not occur and falsely documented that patients were homebound.
EDWARDS and KOON each face a maximum term of imprisonment of ten years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for February 1, 2017.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this case. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman, and Hayden Brockett are in charge of the prosecution.
Two Colombian Nationals Plead Guilty to Making False Statements on Visa ApplicationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALMA DE JESUS MOJICA HERRERA, age 52, and LEONARDO SERRATO POLANIA, age 42, both of Bogota, Colombia, pled guilty today to making false statements on their U.S. Nonimmigrant Online VISA applications.
According to court records, while in Colombia, MOJICA HERRERA and SERRATO POLANIA each completed a U.S. Nonimmigrant Online Visa Application (“Visa Application”) with the U.S. Department of State (“State Department”) and did not answer truthfully questions concerning their travel companions, the persons paying for their trip, and the location of their stay. These Visa Applications were relied upon by federal agencies of the Executive Branch including by the U.S. Customs and Border Protection in New Orleans and the U.S. State Department. On September 28, 2015, MOJICA HERRERA and SERRATO POLANIA travelled from Bogota, Columbia and arrived in the United States at the New Orleans International Airport using the VISAs containing materially false statements. On September 29, 2015, MOJICA HERRERA and SERRATO POLANIA were taken into custody by special agents with the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”).
MOJICA HERRERA and SERRATO POLANIA each face a maximum term of imprisonment of five years. In addition, both face a fine of $250,000 per count and up to three years of supervised release. U.S. District Judge Sarah S. Vance set sentencing for August 24, 2016.
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-HSI, U.S. Customs and Border Protection, and the U.S. Department of State in investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Three St. Clair County Residents Guilty of Conspiracy to Distribute OxycodoneRead the Press Release
Gerald Tanner, 56, of Collinsville, Illinois, pleaded guilty on July 18, 2016, in US District Court to conspiracy to distribute oxycodone and methadone, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
On November 18, 2015, a federal grand jury handed down an indictment alleging that three St. Clair County residents participated in a conspiracy to distribute oxycodone and methadone into the Southern District of Illinois. Evidence discussed in court established that the St. Louis Division of the Drug Enforcement Administration began investigating Gerald Tanner for illegally distributing schedule II narcotics out of his home. The DEA obtained the assistance of a confidential source and purchased opiate-based pain medications from Ryan Koch and Lisa-Marie Sue Ketterer, who were supplied by Gerald Tanner. Koch and Ketterer resold a portion of the drugs they bought and used the remainder.
Previously, Ryan Koch, 34, and Lisa Marie Sue Ketterer, 26, both of St. Clair County pleaded guilty on June 28, 2016, and May 10, 2016, respectively. Koch will be sentenced on September 29, 2016 and Ketterer will be sentenced on August 23, 2016.
US Attorney Donald S. Boyce said, "There has been a national proliferation of opiate drug abuse. Sales of opioid pain relievers quadrupled between 1999 and 2010. And that proliferation has correlated strongly with an increase in heroin abuse and drug-related deaths. Opiates are causing tremendous damage in our community and the US Attorney’s office will continue to fight the distribution of drugs that endanger public safety."
As charged in this case, conspiracy to distribute oxycodone and methadone is punishable by not more than 20 years in federal prison, not more than a $1,000,000 fine, and not less than 5 years supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Tanner is scheduled to be sentenced on October 19, 2016.
The investigation is being conducted by Diversion Investigators from the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Three Men Collectively Sentenced to More Than 400 Months for Drug Trafficking ConspiracyRead the Press Release
Memphis, TN – Three men involved in a lucrative drug trafficking conspiracy have been collectively sentenced to more than 400 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
The three defendants include:
• Gary Holmes, 38, of Memphis, Tennessee
• Brailon Adell, 31, of Memphis, Tennessee
• Jody Davenport, 44, of Houston, Texas
The three defendants participated in a conspiracy to transport multiple kilograms of cocaine from Houston, Texas to Memphis, Tennessee for distribution.
According to information presented in court, in January 2015, a traffic stop was conducted in Liberty County, Texas that resulted in the discovery of two kilograms of cocaine. The drugs were hidden in large food cans in the trunk of the vehicle. The drugs were worth approximately $67,000. Holmes was driving the vehicle, and had come to Houston to pick up the cocaine and transport it to Memphis for resale.
As a result of an investigation conducted following the traffic stop, law enforcement discovered that Holmes was responsible for transporting large quantities of cocaine from Houston to Memphis over a six-month period. Davenport was supplying the cocaine to Holmes, who in turn would transport it to Adell and others in the Memphis area.
Holmes and Davenport spearheaded the conspiracy. For more than six months, they conspired to transport approximately 70 kilograms of cocaine from Houston to Memphis for redistribution.
In October 2015, Holmes, Adell and Davenport all pleaded guilty before U.S. District Court Judge Jon P. McCalla to one count of conspiring to unlawfully possess with the intent to distribute and distribute more than 500 grams of cocaine.
In February 2016, Judge McCalla sentenced Adell to 60 months and Davenport to 235 months in federal prison.
On Friday, July 15, Judge McCalla sentenced Holmes to 108 months in federal prison.
This case was investigated by the Drug Enforcement Administration (DEA) and Homeland Security Special Agents in Memphis and Houston.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on the government’s behalf.
Thibodaux Man Charged with Hacking ICloud, Facebook, and Email Accounts of over 50 VictimsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRADER YELVERTON, age 24, of Thibodaux, was charged today in a one-count Bill of Information with obtaining unauthorized access to protected computers to acquire information.
According to the Bill of Information, between about 2013 and December 15, 2015, YELVERTON obtained access to the personal Apple iCloud, Facebook, and email accounts of not fewer than fifty victims, many of whom resided within the Eastern District of Louisiana, without their knowledge or authorization. After accessing the accounts, YELVERTON acquired copies of the contents, including personal photographs and other private information. According to the Bill of Information, the collective value of the information YELVERTON obtained without authorization was more than $5,000.
If convicted, YELVERTON faces a maximum term of imprisonment of up to five years in prison, followed by up to three years of supervised release, and a $250,000 fine.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Texas Woman Charged with Tax Return Preparation FraudRead the Press Release
A Greenville, Texas, resident was indicted today on 21 counts of aiding and assisting in the preparation of false tax returns, one count of mail fraud and one count of aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, Lourdes Ramirez assisted in the preparation of fraudulent federal income tax returns for years 2011 through 2013 containing false material matters such as false education credits and Schedule C expenses. Ramirez is also charged with using the U.S. Postal Service to submit her own fraudulent 2011 federal income tax return to the Internal Revenue Service (IRS) which falsely claimed an individual as Ramirez’s dependent without that individual’s knowledge.
If convicted, Ramirez faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of a false tax return, a statutory maximum sentence of 20 years in prison for the mail fraud charge and a mandatory term of two years in prison for the aggravated identity theft charge. She also faces monetary penalties, supervised release and restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Alexander Effendi and Melanie Smith of the Tax Division, who are prosecuting this case with assistance from the U.S. Attorney’s Office of the Northern District of Texas.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Taxidermist Sentenced for Violating Wildlife LawsRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi taxidermist and hunting guide has been sentenced for violating the Lacey Act, the Endangered Species Act (ESA) and the Migratory Bird Treaty Act (MBTA), announced U.S. Attorney Kenneth Magidson.
Eric Martin Schmidt, 35, pleaded guilty before U.S. Magistrate Judge Jason B. Libby today. He was then ordered to pay a $2,500 community service payment to the Lacey Act Reward Fund and must serve five years of probation. Schmidt also abandoned more than 60 species of bird mounts that were illegally killed to the U.S. Fish and Wildlife Service (FWS).
Schmidt was charged by a criminal information with one count each of violating the Lacey Act, ESA and MBTA. The Lacey Act prohibits any person from knowingly importing, exporting, transporting, selling or purchasing any wildlife that was taken, possessed, transported or sold in violation of any law, statute, regulation or treaty of the United States or foreign country. The ESA prohibits any person subject to the jurisdiction of the United States to engage in the trade of any wildlife contrary to the provisions of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). The MBTA prohibits any person, unless permitted by regulations, to pursue, hunt, take or capture any migratory bird included in the terms of the convention between the United States and other nations for the protection of migratory birds.
During the plea today, the court learned Schmidt is the owner of Alive Again Recreations, a taxidermy business he runs out of his residence in Corpus Christi. Schmidt is also the owner and operator of Global Game Birds (GGB). Through GGB, Schmidt offered hunting trips in Argentina, Peru, Scotland, South Africa, Australia and New Zealand to people with hunting opportunities for rarely seen species of birds.
In July 2011, Schmidt traveled from Corpus Christi to Peru and hunted approximately 30 indigenous birds including an Andean ruddy duck (Oxyura ferruginea) and a Torrent duck (Merganetta armata). At the conclusion of his hunting trip, Schmidt exported all 30 birds from Peru without an export permit.
In June 2012, Schmidt traveled to Argentina and returned to Corpus Christi with 18 birds he hunted in Argentina. Among the birds he killed and imported was one comb duck (Sarkidiornis melanotos), a species that is listed and protected under CITES.
In June 2013, Schmidt traveled to New Zealand and returned to Corpus Christi with 24 game and non-game birds he hunted in New Zealand. Among the birds he hunted, six were Pacific black ducks (Anas superciliosa) which are listed and protected under the MBTA.
FWS conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez prosecuted the case.
Stephentown Man Sentenced to 30 Years for Gun and Drug ConvictionsRead the Press Release
ALBANY, NEW YORK – Joshua Stegemann, age 39, of Stephentown, New York, was sentenced today to serve 30 years of imprisonment, to be followed by lifetime supervised release, for (i) possessing cocaine, heroin, and oxycodone with the intent to distribute; (ii) possessing two handguns in furtherance of a drug trafficking crime; and (iii) unlawfully possessing three firearms and ammunition as a felon.
The announcement was made by United States Attorney Richard S. Hartunian and James J. Hunt, Special Agent in Charge, New York Division, U.S. Drug Enforcement Administration (DEA).
Stegemann was convicted in August 2015 following a jury trial. The evidence at trial showed that Stegemann, a longtime resident of Stephentown, used his house and surrounding property as a base of operation for his drug trafficking business. On April 30, 2013, investigators executed a search warrant at Stegemann’s house and surrounding property, and recovered large amounts of cocaine, heroin, and oxycodone pills, along with two loaded handguns, a loaded shotgun, and over $296,000 in U.S. currency. Most of these items were found hidden either inside of Stegemann’s house or in and around various landscaping features on his property, such as rock gardens, a stump pile and pine trees.
On May 3, 2013, investigators recovered a safe hidden by Stegemann in a Pittsfield, Mass. residence. The safe was found to contain more than $160,000 in U.S. currency. Cumulatively, investigators recovered more than 600 grams of cocaine, more than 30 grams of heroin, more than 700 oxycodone pills, three firearms, dozens of rounds of ammunition, and more than $450,000 in U.S. currency.
The investigation was initiated by the Massachusetts State Police, who were subsequently joined by the Rensselaer County Sheriff’s Office, the DEA, and the New York State Police. This case was prosecuted by Assistant United States Attorney Rick Belliss.
South Carolina Man Sentenced to Prison for Federal Firearms ViolationRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced yesterday a South Carolina to 53 months in prison on possession of a firearm by a felon charge, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Charles Traywick Randolph, 27, of Columbia, S.C, was also ordered to serve two years in supervised release after he is released from prison.
According to the filed court documents and statements made in court, on April 8, 2015, law enforcement responded to suspicious person call at the Baymont Inn, located in Charlotte. When law enforcement arrived, they made contact with Randolph, who was wearing a backpack on his back, and determined he had an outstanding arrest warrant. Law enforcement searched Randolph’s backpack and recovered a Zastava 7.62x39 caliber semiautomatic assault rifle and a high capacity magazine loaded with 30 rounds of hollow tip 7.62 ammunition. Randolph has a prior felony conviction and is prohibited from possessing a firearm.
The investigation was handled by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charlotte Mecklenburg Police Department. Assistant U.S. Attorney Robert Gleason prosecuted the case.
* * *
In separate cases, three men were also sentenced yesterday on felon in possession of a firearm charges.
Roger Emanuel Reid, 39, of Charlotte, was sentenced to 51 months in prison and three years of supervised release. On January 14, 2015, law enforcement executed a search warrant at Reid’s residence. During the execution of the search warrant, Reid pointed a pistol at the first officer who entered the residence, but then immediately dropped the firearm and surrendered to law enforcement. Reid has a prior state drug conviction and is prohibited from possessing a firearm.
Thurman Armani Hill, 23, of Charlotte, was sentenced to 32 months in prison and two years of supervised release. On September 11, 2015, law enforcement conducted a traffic stop of the vehicle Hill was driving in connection with a drug trafficking investigation. During the traffic stop, law enforcement located a large bag of marijuana on the floorboard area of the front passenger seat of Hill’s vehicle. Law enforcement also seized from inside the vehicle a firearm, approximately 100 grams of marijuana, digital scales, 72 Xanax pills and $1,885 in cash. Hill’s prior conviction prohibits him from possessing a firearm.
Shamel Malik Dove, 22, of Charlotte, was sentenced to 23 months in prison and three of supervised release. According to court records, on August 12, 2015, law enforcement arrested Dove on outstanding warrants for a probation violation stemming from a robbery conviction. Over the course of the arrest, law enforcement seized a firearm, located between the driver’s seat and the center console of Dove’s vehicle. Dove’s prior conviction prohibits him from possessing a firearm.
In making today’s announcement, U.S. Attorney Rose thanked ATF and CMPD for handling the investigations. Assistant U.S. Attorney Taylor Phillips was in charge of Reid’s prosecution and Assistant U.S. Attorney Lambert Guinn prosecuted Hill and Dove’s cases.
Serial Child Rapist Sentenced to Life in PrisonRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of REX LEE FURMAN, 53, to life in prison for preying on children both online and in-person. Following a three-day trial before Senior U.S. District Judge David S. Doty, a jury on October 22, 2015, found FURMAN guilty of all the charges against him, including 13 counts of production of child pornography and related charges.
“This defendant is a determined and dangerous predator who has spent decades abusing and raping little girls,” said Assistant United States Attorney Melinda A. Williams. “As a result of today’s sentence, his days of harming the most vulnerable in our society have finally come to an end.”
As proven at trial, while residing in Federal Dam, Minn., FURMAN photographed and sexually abused two young girls who were then in his care. He also collected images and videos of child pornography, including videos of girls as young as three-years-old being sexually violated.
During a search of the Federal Dam residence, FURMAN informed law enforcement that they would probably find thousands of images of child pornography, including images that he had produced. An investigation revealed more than five hundred such videos and images, including of the two girls who had been in his care. FURMAN had equipped his room with tools to enable the abuse of children, including a mounted computer monitor over his bed, a mirror underneath the monitor and a security camera outside of his bedroom door to see anyone approaching.
FURMAN has two prior convictions for sexually abusing prepubescent girls. In 1981 FURMAN was convicted of criminal sexual conduct in the fourth degree in Wright County for sexual misconduct with a five-year-old girl. In 1999, FURMAN was convicted of criminal sexual conduct in the first degree in Hennepin County for sexually violating a developmentally disabled young girl in his care.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.The Minnesota BCA, which leads the Minnesota Internet Crimes Against Children Task Force, and the Minneapolis Police Department, which is a member of the FBI Child Exploitation Task Force, investigated the case.
This case was prosecuted by Assistant U.S. Attorney Melinda A. Williams and Deputy Chief Alexandra R. Gelber of the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section.
Defendant Information:REX LEE FURMAN, 53
Federal Dam, Minn.Convicted: • Production of child pornography, 13 counts
• Distribution of child pornography, 2 counts
• Possession of child pornography, 1 count
• Receipt of child pornography, 1 count
• Committing a sex offense while being required to register as a sex offender, 1 countSentenced: • Life in prison
Recidivist Child Sex Offender Sentenced to Life in Prison for Child Pornography-Related OffensesRead the Press Release
A Minnesota man with two prior convictions for sexually abusing children was sentenced today to serve life plus 10 years in prison for production, distribution, receipt and possession of child pornography, as well as committing a child sex offense while being required to register as a sex offender, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
Rex Lee Furman, 52, of Federal Dam, Minnesota, was sentenced by U.S. District Judge David S. Doty of the District of Minnesota, who also ordered Furman to pay restitution in the amount of $3,000 to two victims. Furman was convicted on Oct. 21, 2015, following a three-day jury trial.
According to the evidence presented at trial, in 2013, during separate investigations by the Minnesota Bureau of Criminal Apprehension (BCA) and the Minneapolis Police Department, law enforcement officers obtained child pornography videos from an internet protocol (IP) address linked to Furman’s home. The evidence showed that during a search of his residence that was executed with the assistance of the Cass County Sheriff’s Office on Feb.13, 2014, Furman admitted that he had downloaded child pornography. According to the trial evidence, he also informed a special agent that he had produced images depicting child exploitation involving two girls who had been in his care, both of whom were younger than six years old at the time of the abuse. The trial evidence showed that subsequent forensic analysis of Furman’s computers and digital media confirmed that he produced pornographic photographs and a video of those children in 2012. According to the trial evidence, investigators also found in Furman’s possession hundreds of images and videos that depicted other children engaged in sex acts with adults.
Furman has two prior Minnesota state court convictions for engaging in sex acts with minors. In December 1981, Furman pleaded guilty to sexually abusing a five-year-old girl who was in his care. In January 1999, Furman was convicted after a bench trial of sexually abusing a 10-year-old girl in his care. As a result, he was required to register as a sex offender until 2021.
The Minnesota BCA, which leads the Minnesota Internet Crimes Against Children Task Force, and the Minneapolis Police Department, which is a member of the FBI Child Exploitation Task Force, investigated the case. Assistant U.S. Attorney Melinda A. Williams of the District of Minnesota and Deputy Chief Alexandra R. Gelber of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Previously Deported Mexican National Sentenced for Passport FraudRead the Press Release
SACRAMENTO, Calif. — Leonardo Cesar Pulido-Escamilla, 39, a Mexican national who has resided in Yuba City, Citrus Heights, Lincoln, and other cities in California, was sentenced today by United States District Judge Kimberly J. Mueller to approximately four months in prison for making a false statement in an application for a United States Passport, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Pulido-Escamilla fraudulently applied for a U.S. Passport in 2012, using another person’s name and birth certificate in connection with the application. Pulido-Escamilla was previously deported from the United States in 1997 and 2004, and on March 20, 2016, he was apprehended by border patrol agents in Arizona.
This case was the product of an investigation by the U.S. Department of State’s Diplomatic Security Service. Assistant United States Attorney Nirav Desai is prosecuted the case.
Pocatello Man Sentenced for Using Interstate Communication to Hire Someone to Harm His Ex-WifeRead the Press Release
COEUR D’ALENE – John Kent Davis, 66, of Pocatello, Idaho, was sentenced today for interstate communication of a threat of bodily injury, U.S. Attorney Wendy J. Olson announced.
Senior U.S. District Judge Edward J. Lodge sentenced Davis to 30 months in prison, three years supervised release, a $5,000 fine, and he was ordered to forfeit $2,500 in cash proceeds. Davis pleaded guilty on May 13, 2016.
The plea agreement states on July 29, 2015, Davis placed a telephone call from the state of Idaho to the state of Utah for the purpose of soliciting the physical beating of the victim. During the call, Davis spoke with an undercover Federal Bureau of Investigation special agent. Davis asked the undercover agent to badly beat the victim in a way that was “short of permanent” and a “pretty explicit display of hatred.” Davis told the undercover agent he wanted photographs to prove the victim had been beaten. Davis paid the undercover agent $2,500 to beat the victim.
The case was being investigated by Federal Bureau of Investigation (FBI) and North Idaho Violent Crimes Task Force (NIVCTF).
Pike County Physician Indicted for Unlawful Distribution of Controlled Substances, Money Laundering, and Tax EvasionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today the indictment of a Pike County physician, Fuhai Li, age 51, on charges of unlawfully distributing controlled substances without a legitimate medical purpose, money laundering, and tax evasion. Li was taken into custody today and will appear later today before United States Magistrate Judge Joseph F. Saporito, Jr. in Wilkes-Barre for his initial appearance.
According to U.S. Attorney Peter Smith, the 24 count indictment by a Federal Grand Jury in Scranton on July 19, unsealed today, alleges that, beginning in 2011 and continuing into 2015, Li unlawfully provided prescriptions for excessive quantities of oxycodone and other narcotics to individuals who he knew were not seeking the drugs for a legitimate medical purpose. One charge specifically alleges that Li unlawfully distributed a controlled substance and caused the death of one of his patients.
Li is also charged with 15 counts of alleged unlawful distribution of controlled substance to different persons repeatedly over extended periods between 2011 and 2015. He is also charged with unlawfully distributing and dispensing a controlled substance to a pregnant individual and with opening and maintaining premises at two locations in Milford, Pennsylvania, for the purpose of distributing controlled substances outside the usual course of professional practice and without legitimate medical purpose.
Li allegedly sought and received payments in cash from recipients of the unlawfully distributed controlled substance. Many of the recipients were from outside of Pennsylvania. Some of the recipients, in turn, distributed the unlawfully obtained controlled substance to others in exchange for money.
Li’s activities were allegedly not in the usual course of medical practice in one or multiple ways, as stated in the indictment, including:
-
inadequate verification of the patient’s medical complaint;
-
cursory or no medical examinations by LI;
-
inadequate patient medical history and no follow-up verification;
-
incomplete or inadequate mental or physical examinations;
-
treating patients with highly addictive controlled substances while failing to consider other treatment options;
-
lack of, or inadequate, diagnostic testing;
-
increasing the patients’ dosages over time unnecessarily; and
-
prescribing inappropriate combinations of drugs to patients.
Li is charged with three counts of tax evasion for the years 2011 through 2013. The indictment alleges that during the execution of federal search warrants by Drug Enforcement Administration (DEA) agents at his office and residences in January 2015, more than $1,000,000 in cash was seized. The indictment alleges that for the years 2011 through 2013, Li evaded federal taxes in an amount in excess of $300,000.
Li is also charged with money laundering in connection with a $385,572 wire transfer mortgage payment on an East Stroudsburg residence and a $158,699 certified check for the purchase of a property in Milford, both allegedly involving properly derived from Li’s unlawful distribution of controlled substances.
According to the Indictment, Li is subject to forfeiture to the United States government, of any and all proceeds derived from unlawful activity as a result of the offenses alleged in the indictment, including U.S. currency and properties located in both Pike and Monroe counties.
Currently, Li continues to maintain a Pennsylvania medical license. He surrendered his DEA registration at the time the search warrants were executed.
“The allegations against Li are serious. He allegedly distributed a controlled substance that resulted in the death of one of his patients, which is troubling as physicians have an ethical obligation to uphold standards of medical practice,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “In 2015, 3,383 people died across Pennsylvania from drug overdoses; 53% of those overdose deaths were the result of opioids such as oxycodone. The DEA will remain vigilant in pursuing investigations against physicians that violate their positions of trust in our communities.”
Akeia Conner, Internal Revenue Service, Special Agent in Charge, said “Today’s indictment was achieved through the tireless efforts of all the agencies involved. When a physician knowingly abandons his oath and distributes controlled substances for financial gain instead of legitimate medical purpose, the Internal Revenue Service, Criminal Investigation will provide the financial expertise in tracking and accounting for the proceeds of this unlawful activity.
The charges stem from a coordinated investigation initiated by Drug Diversion Agents located in Scranton, DEA, Scranton, and the Internal Revenue Service – Criminal Division, Scranton. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for the unlawful distribution of controlled substances is life imprisonment. The money laundering charges carry a maximum term of 20 years’ imprisonment, per count. The maximum penalty for tax evasion is 5 years’ imprisonment, per count. Each charge also carries a fine and a term of supervised release following any period of incarceration. 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.
# # #
-
Pike County Man Indicted for Striking Park Ranger with Automobile While FleeingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury returned an indictment on June 19, charging Damari Mykel Roulhac, of Pike County, with assaulting a National Park Service Ranger while fleeing apprehension.
According to United States Attorney Peter Smith, Damari Mykel Roulhac, age 25, was located in the Delaware Water Gap National Recreation Area when he struck a Ranger with his automobile while fleeing after being ordered to stop.
Roulhac previously was charged on July 5, 2016 with a Criminal Complaint alleging the same violations. Roulhac currently is serving a state sentence of imprisonment in Pike County for driving under the influence charges.
The investigation was conducted by the National Park Service Rangers. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
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 for the most severe charge is a, eight-year term of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Philadelphia Foreclosure Attorney Charged with Federal Tax FraudRead the Press Release
Drew Alia, 40, a Philadelphia attorney, was charged today in a Criminal Information[1] with willfully failing to file federal income tax returns announced United States Attorney Zane David Memeger.
According to the Information, Drew Alia, was who licensed to practice law in the Commonwealth of Pennsylvania during the period of 2010 through 2013, operated a home mortgage rescue service which offered professional services to home owners who were facing a mortgage foreclosure by obtaining financing to prevent a foreclosure on the home owner’s mortgage. For these services, Drew Alia received fees which he failed to report as gross income on federal income tax returns that he was required, by law, to file for tax years 2010 through 2013.
If convicted the defendant faces a maximum possible sentence 4 years, a fine of $400,000 and a special assessment of $100.00.
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
[1] An Information, Indictment or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Most-Visited Illegal File-Sharing Website Charged with Criminal Copyright InfringementRead the Press Release
CHICAGO — Federal authorities in Chicago have charged the alleged owner of today’s most-visited illegal file-sharing website with criminal copyright infringement and have seized domain names associated with the website.
ARTEM VAULIN, 30, of Kharkiv, Ukraine, allegedly owns and operates Kickass Torrents, or KAT, a commercial website that since 2008 has enabled users to illegally reproduce and distribute hundreds of millions of copies of copyrighted motion pictures, video games, television programs, musical recordings and other electronic media, collectively valued at more than $1 billion, according to a criminal complaint filed in U.S. District Court in Chicago. KAT receives more than 50 million unique monthly visitors and is estimated to be the 69th most frequently visited website on the Internet, according to the complaint.
Vaulin was arrested today by authorities in Poland. The complaint charges Vaulin with one count of conspiracy to commit criminal copyright infringement, one count of conspiracy to commit money laundering, and two counts of criminal copyright infringement. The United States will seek to extradite Vaulin to the United States.
The complaint and arrest were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); and Richard Weber, Chief, Internal Revenue Service Criminal Investigation. Substantial assistance was provided by the International Organized Crime Intelligence and Operations Center, the National Intellectual Property Rights Coordination Center, the Criminal Division’s Office of International Affairs, and the Polish Border Guard and National Public Prosecutor’s Office.
“Copyright infringement exacts a large toll, a very human one, on the artists and businesses whose livelihood hinges on their creative inventions,” said U.S. Attorney Fardon. “Vaulin allegedly used the Internet to cause enormous harm to those artists. Our Cybercrimes unit at the U.S. Attorney’s Office in Chicago will continue to work with our law enforcement partners around the globe to identify, investigate and prosecute those who attempt to illegally profit from the innovation of others.”
“Vaulin is charged with running today’s most visited illegal file-sharing website, responsible for unlawfully distributing well over $1 billion of copyrighted materials,” said Assistant Attorney General Caldwell. “In an effort to evade law enforcement, Vaulin allegedly relied on servers located in countries around the world and moved his domains due to repeated seizures and civil lawsuits. His arrest in Poland, however, demonstrates again that cybercriminals can run, but they cannot hide from justice.”
“Artem Vaulin was allegedly running a worldwide digital piracy website that stole more than $1 billion in profits from the U.S. entertainment industry,” said Executive Associate Director Edge. “Protecting legitimate commerce is one of HSI’s highest priorities. With the cooperation of our law enforcement partners, we will continue to aggressively bring to justice those who enrich themselves by stealing the creative work of U.S. artists.”
“Investigating cyber-enabled schemes is a top priority for CI,” said Chief Weber. “Websites such as the one seized today brazenly facilitate all kinds of illegal commerce. Criminal Investigation is committed to thoroughly investigating financial crimes, regardless of the medium. We will continue to work with our law enforcement partners to unravel this and other complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their income and use the Internet to mask their true identity.”
KAT operates in approximately 28 languages, according to the complaint. KAT’s net worth has been estimated at more than $54 million, with estimated annual advertising revenue in the range of $12.5 million to $22.3 million, according to the complaint. KAT has moved its domain several times due to numerous seizures and copyright lawsuits, and it has been ordered blocked by courts in the United Kingdom, Ireland, Italy, Denmark, Belgium and Malaysia, the complaint states.
In addition to the charges, a federal court in Chicago ordered the seizure of seven domain names associated with the alleged KAT conspiracy. The site relies on a network of computer servers around the world, including servers located in Chicago, and has operated at various times under the domains kickasstorrents.com, kat.ph, kickass.to, kastatic.com, kickass.so, thekat.tv and kat.cr, according to the complaint.
According to the complaint, movies that were still in theaters have consistently been made available for download by the KAT conspiracy. Films that KAT recently made available for download include “Captain America: Civil War,” “Now You See Me 2,” “Independence Day: Resurgence,” and “Finding Dory,” according to the complaint.
Vaulin, who used the online screen name “tirm,” was involved in designing KAT’s original website and oversaw KAT’s operations, according to the complaint. During the latter part of the conspiracy, Vaulin allegedly operated KAT under the auspices of a Ukrainian-based front company called Cryptoneat.
Criminal copyright infringement and conspiracy to commit criminal copyright infringement carry a maximum sentence of five years in prison. Conspiracy to commit money laundering is punishable by up to 20 years.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys William E. Ridgway and Devlin N. Su of the U.S. Attorney’s Office for the Northern District of Illinois; and Senior Counsel Ryan K. Dickey of the Criminal Division’s Computer Crime & Intellectual Property Section.
Complaint
Nishikawa Agrees to Plead Guilty and Pay $130 Million Criminal Fine for Fixing Prices of Automotive PartsRead the Press Release
Nishikawa Rubber Co. Ltd. (Nishikawa) has agreed to plead guilty and pay a $130 million criminal fine for its role in a conspiracy to fix the prices of and rig the bids for automotive body sealing products installed in cars sold to U.S. consumers, the Justice Department announced today.
According to charges filed today in U.S. District Court for the Eastern District of Kentucky, Nishikawa conspired from at least as early as January 2000 until at least September 2012 to fix the prices and rig bids of automotive body sealing products sold to Honda Motor Company Ltd., Toyota Motor Corporation, Fuji Heavy Industries Ltd. (Subaru) and certain of their subsidiaries and affiliates in the United States and elsewhere. Automotive body sealing products consist of body-side opening seals, door-side weather-stripping, glass-run channels, trunk lids and other smaller seals, which are installed into automobiles to keep the interior dry from rain and free from wind and exterior noises. Nishikawa agreed to cooperate in the department’s ongoing investigation. The plea agreement will be subject to court approval.
“Nishikawa has agreed to pay a steep price for its participation in a conspiracy that victimized consumers in both the United States and Canada,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “However, Nishikawa deserves credit for acknowledging their conduct, accepting responsibility and charting a new path toward compliance and remediation.”
“The FBI is committed to aggressively investigating companies and individuals who engage in criminal conduct that corrupts the global marketplace,” said Special Agent in Charge Howard S. Marshall of the FBI’s Louisville office. “We will continue our work with the Department of Justice Antitrust Division to uncover schemes aimed at creating an unfair competitive advantage by way of price fixing, bid rigging or other illegal means.”
The division worked closely with the Competition Bureau of Canada throughout this investigation pursuant to the Agreement Between the Government of Canada and the Government of the United States of America Regarding the Application of their Competition and Deceptive Marketing Practices Laws. In part through that cooperation, the Antitrust Division and the Canadian Competition Bureau were able to identify affected sales of automotive body sealing products manufactured in the United States and then shipped to Canada for assembly into automobiles that were imported into the United States. These sales were included as affected commerce for purposes of calculating Nishikawa’s fine. Because of the particular facts of this case, including that Nishikawa’s conduct primarily targeted the United States and because the fine imposed today is an effective remedy in the United States and Canada, once final judgment is entered in this case, the Commissioner of the Competition Bureau of Canada will exercise his discretion to not pursue further enforcement action against Nishikawa in Canada for this conduct.
“Today’s resolution is only the most recent and visible example of cooperation that routinely occurs between the Competition Bureau and U.S. Department of Justice,” said Deputy Assistant Attorney General Snyder. “We greatly appreciate and value the working relationship our two agencies have developed over many years of pursuing a shared mission to protect competition in our markets and the consumers who benefit from it.”
“Strong cooperation among law enforcers is crucial to detect and deter cartel activities that span beyond our borders,” said Senior Deputy Commissioner Matthew Boswellof the Cartels and Deceptive Marketing Practices Branch of the Competition Bureau of Canada. “We achieved great results through cooperation with our US partners in this international investigation into bid-rigging in the auto parts industry. The Bureau continues to work closely with partners, in the US and elsewhere, to crack down on cartels.”
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Including Nishikawa, 45 companies and 64 executives have been charged in the division’s ongoing investigation and have agreed to pay a total of more than $2.8 billion in criminal fines. Nishikawa is being prosecuted by the Antitrust Division’s Chicago Office and the FBI’s Louisville Field Office, Covington Resident Agency, with assistance from the U.S. Attorney’s Office of the Eastern District of Kentucky. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Louisville Field Office at 502-263-6000.
Nine Former Winnebago Tribal Council Members IndictedRead the Press Release
United States Attorney Deborah R. Gilg announced today that the federal grand jury has returned an eleven count indictment against nine former members of the Winnebago Tribal Council. John Blackhawk (age 61), Darwin Snyder (age 49), Thomas Snowball, Jr. (age 55), Louis Houghton (age 69), Lawrence Payer (age 70), Travis Mallory (age 38), Charles Aldrich (age 48), Morgan Earth (age 70), and Ramona Wolfe (age 76) were each charged with conspiracy, theft and misapplication of funds belonging to an Indian gaming establishment, and wire fraud. An arraignment date for each of the defendants will be set by the Clerk of the District Court, but the arraignment hearing is anticipated to be in early August.
A conspiracy conviction is punishable by up to five years of imprisonment and/or a $250,000 fine. A conviction for theft or misapplication of funds belonging to an Indian gaming establishment is punishable by up to ten years of imprisonment and/or a $250,000 fine. A wire fraud conviction is punishable by up to 20 years of imprisonment and/or a fine of $250,000.
According to the Indictment, each defendant received a salary in excess of $80,000 in 2013, and a salary in excess of $87,000 in 2014. Those tribal council salaries had been increased by approximately 35% in February 2013 retroactive to October 1, 2012. Because of the retroactive nature of the salary increase, on February 22, 2013, lump sum distributions were given to the defendants in the following amounts: (a) general members of the tribal council $8,288.56; (b) vice-chairman, secretary, and treasurer $9,945.74; and (c) chairman $11,602.92. Additionally, each of the defendants received five separate bonuses totaling $5,955.62 in 2013, and six separate bonuses totaling $11,019.23 in 2014. The defendants also received additional paychecks for unused vacation time. Defendants Aldrich, Blackhawk, Houghton, Payer, and Snyder also received longevity pay for continuous employment ranging from $3,200 to $5,000 per person per year.
Despite the fact that the defendants had received such large salary and bonus payments from the Winnebago Tribe, the Indictment alleges the defendants devised, executed, and aided and abetted the execution of a plan to receive additional funds directly from the WinneVegas Casino without accounting for same through the payroll department of the Winnebago Tribe and without approving the distribution of such funds at a regular meeting of the Tribal Council. The Indictment further alleges these distributions were contrary to the policies of the Tribe and the casino and that the disbursements were not approved by the Winnebago Gaming Commission.
According to the Indictment, distributions to the defendants were in the form of gift certificates issued by the casino and multiple loads to pre-paid debit cards paid for by the casino. No monies were paid for the issuance of the gift certificates, but the defendants were able to cash them at the casino or otherwise redeem them for merchandise. The total amount of gift certificates issued to the defendants in 2013 and 2014 was $87,000. The total amount loaded to the debit cards of the defendants in 2013 and 2014 was $240,500. These distributions were recorded on the books of the casino as miscellaneous administrative expenses.
The Indictment alleges that when the distribution of these monies became known to members of the Tribe, the defendants attempted to justify the distribution by claiming the funds paid were additional salary or stipends to members of the Tribal Council to compensate them for additional oversight duties they were allegedly required to perform regarding the operation of the casino during 2014. However, the Indictment further alleges that: (a) oversight of the casino was already a part of the duties of all Tribal Council members for which they received a salary from the Tribe; (b) not all defendants performed additional duties relating to the business of the casino; (c)Stipends paid to Tribal Council members for work performed relating to sitting on boards of directors of other economic entities of the Tribe were considerably lower and were typically just $200 per meeting; (d) Tribal Council members were not licensed vendors authorized to receive payments directly from the casino; (e) the Winnebago Gaming Commission had not approved such disbursements to the defendants; and (f) the disbursement of such funds was contrary to the bylaws of the Tribe because the description of the alleged work to be performed, the justification for same and the amount of compensation therefore were not approved by the Tribal Council at any regular meeting nor was the disbursement of said funds over and above the tribal budget for fiscal years 2013 and 2014 approved at any regular meeting of the Tribal Council.
As a result of the actions of the defendants, the total loss to the WinneVegas Casino was $327,500.
This case was investigated by the Federal Bureau of Investigation.
FBI Supervisory Agent in Charge Randy Thysse stated: “These individuals used their elected official positions to enrich themselves and in the process betrayed the trust of their peers and those they were elected to serve. The FBI Omaha Division will remain steadfast in aggressively investigating those responsible for perpetrating schemes like this and will continue to pursue all allegations of public corruption.”
Niagara Falls Man Sentenced for Assaulting A Probation OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Monsuru Giwa, 24, of Niagara Falls, NY, who was convicted of assaulting a federal officer, was sentenced to 30 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on November 24, 2015, U.S. Probation Officers attempted to search the defendant’s Niagara Falls residence. An officer approached Giwa on the porch and directed the defendant to put his hands behind his back. As the officer attempted to place handcuffs on Giwa, he attempted to break free causing the officer to be pulled off the porch and onto the ground suffering leg lacerations. Giwa then fled the scene.
The sentencing is the culmination of an investigation on the part of the United States Probation Department, under the direction of Anthony SanGiacomo and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
New York Man Admits Role in Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a conspiracy to traffic approximately two kilograms of cocaine from Puerto Rico to New Jersey, U.S. Attorney Paul J. Fishman announced.
Ramis Esteves, 33, pleaded guilty before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of conspiring to distribute cocaine.
According to documents filed in this case and statements made in court:
Esteves was arrested on March 24, 2015 in Bergen County after he accepted delivery of approximately two kilograms of cocaine which had been sent by mail from Puerto Rico. Esteves admitted today that he conspired with a co-defendant, Sasha Melendez, 37, of Bergenfield, New Jersey, to distribute the cocaine.
The conspiracy charge to which Esteves pleaded guilty today carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 29, 2016.
Melendez pleaded guilty to conspiracy to distribute cocaine on June 22, 2016 and awaits sentencing.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia L. Shoffner, and special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office General Crimes Unit.
Defense Counsel: Paul Brenner, Esq.
Nampa Woman Sentenced for Selling MethamphetamineRead the Press Release
BOISE – Veronica Cantu, 27, of Nampa, Idaho, was sentenced today for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Cantu to 38 months in prison and three years of supervised release. Cantu pleaded guilty to the charge on April 25, 2016.
According to the plea agreement, the co-defendant, Tara Rivera, 30, of Nampa, Idaho, arranged to distribute methamphetamine to a person working with law enforcement as an informant. When the informant arrived to purchase the methamphetamine, Rivera introduced the informant to Cantu, who was also present. Cantu then sold the informant approximately one-quarter ounce of methamphetamine on March 4, 2014, in Nampa, Idaho. Cantu was indicted by a federal grand jury on November 14, 2014. She was a fugitive with an outstanding warrant for her arrest until she was arrested in Michigan in November 2015. On June 17, 2015, Rivera was sentenced to 24 months in prison for distributing methamphetamine.
This case and other related cases are the result of an investigation by the Treasure Valley Metro Violent Crimes Task Force, which focused on the “Norteno” Northside gang that is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Mississippi Doctor Charged with Bribery of Former Corrections CommissionerRead the Press Release
Jackson, Miss – Dr. Carl Reddix, 57, of Jackson, was charged today with paying bribes and kickbacks to former Mississippi Department of Corrections (MDOC) Commissioner Christopher B. Epps in exchange for receiving contracts involving the MDOC and its operations, announced Acting United States Attorney Harold Brittain and FBI Special Agent in Charge (SAC) Donald Alway.
Dr. Reddix was charged in a seven count indictment returned by a federal grand jury with conspiracy to commit honest services wire fraud and with six counts of bribery. According to the indictment returned against Reddix, starting in 2012 and continuing until October, 2014, Dr. Reddix gave Epps bribes and kickbacks in exchange for the awarding and retention of MDOC contracts for Dr. Reddix’s company, Health Assurance, LLC to provide inmate health care services at four facilities: Walnut Grove Correctional Facility; East Mississippi Correctional Facility; Marshall County Correctional Facility; and, Wilkinson County Correctional Facility. The contracts were valued at over $29,000,000.
The indictment also alleges that Dr. Reddix made cash payments to Epps ranging from $8,000 to 9,500 per month from May through October of 2014.
"This indictment alleges a pattern of fraud and deceit based on greed," said Acting U.S. Attorney Harold Brittain. "Corrupt individuals who place the integrity of government contracts at risk will be held accountable for their actions. The U.S. Attorney’s Office and our law enforcement partners remain unwavering in our commitment to root out public corruption at all levels and to restore the public trust."
FBI Special Agent in Charge Donald Alway applauded the investigators and prosecutors, whose hard work and determined efforts revealed these additional participants in this conspiracy of public corruption and led to the charges announced today. "Individuals and companies who do business with the government are held to a high standard of accountability," said Alway. "When these individuals decide to use the government to supplement themselves at the public’s expense, they can expect the FBI to come knocking to hold them accountable. The FBI in Mississippi will continue to work alongside our local, state and federal law enforcement partners to identify and investigate those that criminally exploit the government."
Dr. Reddix is scheduled to make his initial appearance before U.S. Magistrate Judge F. Keith Ball today at 2:00 p.m. He faces a maximum penalty of 20 years in prison and a
$250,000.00 fine for the conspiracy count, and a maximum of 10 years in prison and a $250,000.00 fine for each of the bribery counts.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Deputy Criminal Chief Darren LaMarca, Assistant United States Attorney Patrick Lemon, and financial analyst Kim Mitchell.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Menominee Indian Reservation Men Indicted on Assault ChargeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 19, 2016, a federal grand jury returned an indictment against Johnny L. Kinney (age: 22) of Neopit, Wisconsin, and Bo Peters (age: 20) of Keshena, Wisconsin, charging them with Assault Resulting in Serious Bodily Harm in violation of 18 United States Code Sections 113(a)(6) and 1153(a). If convicted of the offense, the defendants each face a sentence of up to 10 years’ imprisonment, a $250,000 fine, and up to 3 years of Supervised Release.
According to the indictment, Kinney and Peters, assaulted a male on April 17, 2016, leading to the male suffering a broken nose and damaged sinuses. The incident occurred in Neopit on the Menominee Indian Reservation.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
# # # # #
Little Falls Man Pleads Guilty to Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Eric Jaquays, age 53, of Little Falls, New York, pled guilty today to distributing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Jaquays admitted that between December 27, 2014 and December 12, 2015, while in his Little Falls residence, he used the Internet and a peer-to-peer file sharing program to distribute 27 video files containing child pornography.
As a result of his conviction, Jaquays faces at least 5 years and up to 20 years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. Sentencing is scheduled for November 17, 2016 before U.S. District Judge David N. Hurd in Utica. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by Homeland Security Investigations and the Saratoga Springs Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Las Cruces Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Richard Isaac Quezada, 33, of Las Cruces, N.M., pled guilty today in federal court to violating the federal firearms laws. Under the terms of his plea agreement, Quezada will be sentenced to 60 months in federal prison followed by a term of supervised release to be determined by the court.
Quezada was arrested in March 2016, on a criminal complaint charging him with being a felon in possession of firearms and ammunition on March 14, 2016, in Doña Ana County, N.M. According to the complaint, Quezada was arrested after he discharged a firearm in front of a residence, striking a vehicle. During a search incident to arrest, the officers found that Quezada was in possession of a loaded firearm and ammunition.
Today Quezada pled guilty today to a felony information charging him with being a felon in possession of a firearm. In entering the guilty plea, Quezada admitted that on March 14, 2016, he possessed a loaded handgun and additional amounts of ammunition. Quezada admitted that he was prohibited from possessing firearms or ammunition because he previously had been convicted of importation of marijuana. Quezada remains in federal custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department. Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
LaPorte Man Sentenced to 151 Months for Child PornographyRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Ronald E. Wheaton, 35, of LaPorte, Indiana was sentenced before Judge Jon E. DeGuilio for distribution of child pornography.
Wheaton was sentenced to 151 months’ imprisonment and 5 years of supervised release.
According to documents filed in this case, on March 17, 2014, Wheaton distributed child pornography to an undercover Indiana State Police officer using a peer-to-peer file sharing system online. When officers executed a search warrant at his home on July 7, 2014, they discovered additional child pornography.
This case was prosecuted as a result of an investigation by the Federal Bureau of Investigation and the Indiana State Police. This case was prosecuted by Assistant United States Attorney John M. Maciejczyk
# # #
Keshena Man Indicted on Sexual Abuse ChargeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 19, 2016, a federal grand jury returned a one-count indictment against Matthew T. White, Jr. (age: 27) of Keshena, Wisconsin, charging him with Sexual Abuse of a Minor Under the Age of 16 in violation of 18 United States Code Sections 2243(a) and 1153(a). If convicted of the offense, the defendant faces a sentence of up to 15 years’ imprisonment, a $250,000 fine, and a period of Supervised Release of at least five years and up to the rest of the defendant’s life.
According to the indictment, White, engaged in a sex act with a 13-year girl at a location outside Keshena on the Menominee Indian Reservation.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
# # # # #
Kentucky Resident Pleads Guilty to Role in Staged Automobile Accident Insurance Fraud RingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S Attorney Patrick Miles announced that Gustavo Ramiro Acuna-Rosa, a resident of Kentucky, and formerly of Wyoming and Lansing, Michigan, pled guilty in United States District Court in Grand Rapids, Michigan, to conspiracy to commit mail fraud and health care fraud. The conspiracy count carries a maximum term of imprisonment of 20 years and the health care fraud count a maximum term of imprisonment of 10 years. Acuna-Rosa’s sentencing hearing is scheduled for November 28, 2016. He currently remains in federal custody.
Acuna-Rosa’s guilty pleas arise out of his involvement in a sophisticated automobile accident insurance fraud ring that operated in Kent and Ingham Counties from at least 2012 through May 2015. In the plea agreement, Acuna-Rosa admitted that he first participated in the insurance fraud ring in 2012 when owners of Revive Therapy Center in Wyoming, Michigan, paid him $1,000 to participate in a staged automobile accident. Thereafter, Acuna-Rosa sought treatment at Revive Therapy Center, and his automobile insurance company was billed for false and fraudulent claims related to his unnecessary medical treatment.
In 2013, Acuna-Rosa, with the assistance of others, opened his own physical therapy clinic in Lansing, Michigan, under the name Renue Therapy Center. While operating this therapy clinic, Acuna-Rosa used recruiters who paid other individuals to participate in staged automobile accidents or to agree to seek treatment at his clinic for injuries that they falsely claimed to have suffered as a result of their real automobile accidents. Acuna-Rosa’s therapy clinic then billed automobile insurance companies for treatment that was unnecessary or that it did not actually provide to these individuals. Acuna-Rosa further admitted to submitting false insurance claims to automobile insurance companies totaling between $250,000 and $550,000.
U.S. Attorney Miles stated that, "Those who seek to personally benefit by defrauding the system with false automobile accidents and false insurance claims will be prosecuted to the fullest extent under the law."
A federal indictment remains pending against three additional individuals that have been charged with involvement in the ring: Yoisler Herrera-Enriquez and Dolis Rojas-Lopez, both from Wyoming, Michigan, and Antonio Ramon Martinez-Lopez, from Port Richey, Florida.
The investigation is being handled by the Grand Rapids offices of the Department of Homeland Security-Homeland Security Investigations and the Federal Bureau of Investigation.
The prosecution is being handled by Assistant United States Attorney, Ronald M. Stella.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
KCK Man Pleads Guilty in Robbery at Stilwell, Kan., BankRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man pleaded guilty Wednesday to federal charges that he took part in an armed robbery at a Stillwell bank before leading police on a high speed chase with a child in his car, Acting U.S.
Gary Jordan, 39, Kansas City, Kan., pleaded guilty to one count of bank robbery, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction. Last week, co-defendant Jacob L. Smith, 18, Kansas City, Kan., pleaded guilty to one count of bank robbery and one count of brandishing a firearm during a robbery.
In his plea, Jordan admitted that on March 9, 2016, he and Smith were armed with handguns when they entered the First National Bank at 7460 W. 199th Street in Stilwell, Kan. They held tellers at gunpoint before fleeing with cash stuffed in a backpack. Jordan took the wheel of the getaway car.
During the next 25 minutes, the robbers were pursued by the Kansas Highway Patrol, the Leawood Police Department and other law enforcement agencies as they fled across the Kansas/Missouri state line. During the chase, Smith fired at officers six times from the car. After the car overturned on a sharp turn, the defendants were arrested. Throughout the chase, co-defendant Danille Morris, 26, Kansas City, Kan., and her 19-month-old child were in the car. She has scheduled a change of plea hearing for Aug. 8.
Jordan and Smith are set for sentencing Dec. 19. The crimes carry the following penalties: Up to 25 years in federal prison and a fine up to $250,000 for robbery, not less than 10 years and a fine up to $250,000 for discharging firearms in a robbery, and up to 10 years and a fine up to $250,000 for unlawful possession a firearm by a felon.
Beall commended all the agencies that assisted in the investigation including the FBI, the Johnson County Sheriff’s Office, the Kansas Highway Patrol, the Leawood Police Department, the Kansas City, Kan., Police Department and the Kansas City, Mo., Police Department, as well as the prosecutor, Assistant U.S. Attorney Chris Oakley.
Justice Department Requires Anheuser-Busch InBev to Divest Stake in MillerCoors and Alter Beer Distributor Practices as Part of SABMiller AcquisitionRead the Press Release
Settlement Maintains Competition between Bud and Miller Beers, Prohibits ABI from Disadvantaging Rivals with Distributors and Provides for Review of Future ABI Craft Beer Acquisitions
The Department of Justice announced today that it has agreed to a settlement with Anheuser-Busch InBev (ABI) that will permit ABI to proceed with its acquisition of SABMiller. The settlement requires ABI to divest SABMiller’s entire U.S. business – including SABMiller’s ownership interest in MillerCoors, the right to brew and sell certain SABMiller beers in the United States and the worldwide Miller beer brand rights. This settlement will prevent any increase in concentration in the U.S. beer industry.
The settlement also prohibits ABI from instituting or continuing practices and programs that limit the ability and incentives of independent beer distributors to sell and promote the beers of ABI’s rivals, including high-end craft and import beers. Moreover, the settlement precludes ABI from acquiring beer distributors or brewers – including non-HSR reportable craft brewer acquisitions – without allowing for department review of the acquisition’s likely competitive effects.
“The remedy we secured will help preserve and promote competition in the multi-billion dollar U.S. beer industry,” said Deputy Assistant Attorney General Sonia Pfaffenroth of the Justice Department’s Antitrust Division. “The two largest U.S. brewers – ABI and MillerCoors – will now remain independent competitors after the deal. The settlement also preserves the ability of smaller brewers – including brewers of craft and import beers – to compete against ABI by protecting their access to important distribution networks. Independent distributors that sell ABI’s beer will have the freedom to sell and promote the variety of beers that many Americans drink.”
The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the $107 billion transaction, along with a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The department’s complaint alleges that the proposed transaction would substantially lessen competition in the national market for the sale of beer in the United States and in at least 58 local markets in the United States.
According to the department’s complaint, through its acquisition of SABMiller, ABI would gain a majority interest in MillerCoors. ABI and MillerCoors jointly account for approximately 70 percent of beer sold in the United States. The acquisition would create many highly concentrated local geographic markets, with some combined shares in excess of 90 percent. As a result, under the terms of the proposed settlement, the companies are required to divest SABMiller’s entire ownership stake in MillerCoors. The companies will also divest the right to brew and sell all SABMiller beer brands currently imported or licensed for sale in the United States. Finally, the companies will divest all rights to SABMiller’s Miller-branded beer worldwide.
According to a Competitive Impact Statement (CIS) also filed by the department, the divesture of SABMiller’s interest in MillerCoors to Molson Coors alone was insufficient to remedy the competitive harm arising from the transaction. As explained in the CIS, Molson Coors and ABI have interactions outside the United States which present opportunities to facilitate coordination in the United States – opportunities that MillerCoors does not presently have. To address this competitive concern, the settlement provides additional relief aimed at protecting the competitive constraint that other brewers provide – in particular, brewers of high-end craft and import beers – on ABI’s and Molson Coors’ ability to raise prices, either unilaterally or through coordination, on their beers. Among other things, the settlement prohibits ABI from instituting or continuing practices and programs that disincentivize distributors from selling and promoting the beers of ABI’s high-end and other rivals.
In conducting its investigation, the department cooperated with its counterparts in a number of jurisdictions that also reviewed the transaction. “We thank our enforcement partners around the world, especially from the European Commission, Canada and China, for their close and constructive collaboration on this matter,” added Deputy Assistant Attorney General Pfaffenroth.
ABI is a corporation organized and existing under the laws of Belgium, with its headquarters in Leuven, Belgium. ABI owns and operates 19 breweries in the United States. ABI owns more than 40 major beer brands sold in the United States, including Bud Light – the top-selling beer brand in the United States – and other popular beer brands, such as Budweiser, Busch, Michelob, Natural Light, Stella Artois, Shock Top, Goose Island and Beck’s.
SABMiller is a corporation organized and existing under the laws of the United Kingdom, with its headquarters in London, England. SABMiller operates in the United States through its 58 percent ownership interest in the MillerCoors joint venture.
MillerCoors is a limited liability company organized and existing under the laws of the State of Delaware, with its principal place of business in Chicago. Under MillerCoors’ corporate governance structure, SABMiller and Molson Coors, through their designated representatives, have an equal right to govern MillerCoors. MillerCoors owns and operates 12 breweries in the United States. MillerCoors has the sole right to produce and sell in the United States more than 40 major brands of beer, including Coors Light and Miller Lite—the second- and fourth-highest selling beer brands in the United States. MillerCoors also has the right to produce and sell in the United States other popular beer brands, such as Miller Genuine Draft, Coors Banquet and Blue Moon. In addition, MillerCoors has the exclusive right to import into and sell in the United States certain beer brands owned by SABMiller, including Peroni, Grolsch and Pilsner Urquell.
The proposed settlement, along with the department’s CIS, will be published in the Federal Register, consistent with the requirements of the Antitrust Procedures and Penalties Act. At such time, any person may submit written comments concerning the proposed settlement during a 60-day comment period to Peter J. Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed settlement upon finding that it is in the public interest.
Anheuser-Busch CIS
Anheuser-Busch Complaint
Anhueser-Busch Explanation
Anheuser-Busch Hold Separate
Anheuser-Busch PFJ
Jury Convicts Defense Contractor of Mail Fraud, False ClaimsRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted Stephan D. Boggs, 63, of Columbus with four counts of mail fraud and 21 counts of false claims.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Brian J. Reihms, Special Agent in Charge, Defense Criminal Investigative Services (DCIS), Central Field Office, announced the verdict reached yesterday, which was returned following a trial that began on July 11 before U.S. District Judge James L. Graham.
According to court documents and testimony, Boggs served as the president of Boggs & Associates, Inc., a Department of Defense (DoD) contractor who sold and supplied a variety of parts used by the military.
From approximately April 2010 through January 2014, the DoD issued purchase orders to Boggs & Associates for a variety of military parts and components used on various military weapons systems including aircraft, vehicles and vessels. The parts were required to meet certain military specifications. The majority of these parts are considered critical application items. A critical application item is defined as an item essential to weapon system performance or operation, or the preservation of life or safety of operating personnel, as determined by military services.
Boggs knowingly supplied non-conforming parts to the DoD through purchase orders issued by the Defense Logistics Agency.
The Agency’s testing center found that parts from 30 different purchase orders were non-conforming. Specifically, the parts were made from unauthorized substituted material, were dimensionally defective, used unauthorized inferior fittings, not heat treated properly, not plated properly and/or did not pass specified testing requirements.
During trial, the evidence showed that the inspection reports and certifications he signed and submitted to the government contained false and fraudulent representations.
“Contractors who provide defective and nonconforming parts place the reliability of U.S. military equipment in jeopardy,” Acting U.S. Attorney Glassman said. “That in turn puts our men and women in uniform in danger. That’s why I think it’s crucial that contractors like Boggs are held accountable for their crimes, and the jury’s verdict does so.”
Mail fraud is a crime punishable by up to 20 years in prison and each count of false claims carries a maximum potential penalty of five years in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by DCIS, and Assistant United States Attorneys Jessica W. Knight and J. Michael Marous, who prosecuted the case.