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1 June 2016
Guilford Man Pleads Guilty to Distributing Heroin and OxycodoneRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Willie Harper, 47, of Guilford, Maine, pleaded guilty today in U.S. District Court to one count of distribution of heroin and one count of distribution of oxycodone.
According to court records, on August 13, 2015, Harper met with an undercover law enforcement officer at a grocery store parking lot. Harper provided the undercover officer with heroin in exchange for $500. On August 27, 2015, Harper met with the undercover officer at a Rite-Aid parking lot. Harper provided the undercover officer with ten oxycodone pills in exchange for $500.
Harper faces up to 20 years in prison for each count, a $1,000,000 fine, and between three years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Drug Enforcement Administration and the Greenville, Maine, Police Department.
Greenbrier County heroin dealer pleads guilty to Federal drug crimeRead the Press Release
BECKLEY, W.Va. – A Greenbrier County man pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. James Michael Payne, 63, of Frankford, entered his guilty plea to distribution of heroin.
Payne admitted that on August 21, 2015, he distributed six stamps, or packets, of heroin to a confidential informant cooperating with law enforcement authorities. The drug deal took place in the Fairlea area of Greenbrier County. Payne also admitted that he distributed a total of approximately 100 stamps of heroin during August and September of 2015.
Payne faces up to 20 years in federal prison when he is sentenced on August 31, 2016.
This case was investigated by the Greenbrier County Drug and Violent Crime Task Force. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This prosecution was brought as part of the Greenbrier Heroin and Pill Initiative, an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Glassport Woman Sentenced to Prison for Defrauding Finney Funeral HomeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 18 months imprisonment followed by three years supervised release and ordered to pay $249,664.80 in restitution on her conviction of issuing forged checks, theft of government money and access device fraud, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on Deborah A. Mattie, 48, of Glassport, Pennsylvania.
According to information presented to the Court at the guilty plea, Mattie defrauded the Finney Funeral Home.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Office of Inspector General of the U.S. Department of Housing and Urban Development and the Allegheny County Police Department conducted the investigation leading to the Information in this case.
Geneseo Man Indicted on Charges of Theft of Government Funds and Making False Statements Related to Military ServiceRead the Press Release
Rock Island, Ill. –A Geneseo, Ill., man, William R. Jones, appeared in federal court this afternoon charged with theft of government funds and making false statements to the U.S. Department of Veterans Affairs to support payment of disability benefits. U.S. District Judge Sara Darrow set the case for trial on Aug. 1, 2016. The indictment, returned in May by the grand jury, remained sealed pending Jones’ surrender for today’s scheduled court appearance. Judge Darrow ordered that Jones be released on bond with conditions of release, including surrender of Jones’ gun safe key.
The indictment alleges that Jones, 66, of the 700 block of Willow Drive, made false statements claiming that he served in Vietnam in the 1970s when in fact, Jones never served in Vietnam. According to the indictment, in July 2013, Jones submitted a form containing false information to the office of U.S. Senator Richard J. Durbin to support his claim for veterans disability benefits. The form indicated that Jones had served in combat in Vietnam in 1972; that he was assigned to Special Operations in Vietnam; and that he was shot down in enemy territory and rescued three weeks later by U.S. Marines. In fact, according to the indictment, Jones never served in Vietnam.
In May 2015, on two occasions, to support his request to start veterans disability benefits on an earlier date, Jones allegedly made false statements to employees of Veterans Affairs as follows: that he had an updated military form, a fabricated document Jones allegedly drafted and procured to deceive the Department of Veterans Affairs, that reflected his combat medals; that he was assigned to 10th Special Operations in Vietnam; that he was assigned to conduct drug interdiction missions in the Golden Triangle area of Southeast Asia, and that he was wounded by shrapnel caused by a mortar round while he was a crewman on a Spectre Gunship. In fact, as Jones knew, he was never assigned to any military unit in Vietnam and never served in Vietnam.
If convicted for theft of government funds from December 2014 to December 2015 (one count), the maximum statutory penalty is 10 years in prison; for each count of making false statements (three counts), the maximum penalty is five years in prison. Both offenses carry fines of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Don Allegro of the Rock Island Division of the Central District of Illinois. The U.S. Veterans Affairs Office of Inspector General investigated the charges.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Fraudster Pleads Guilty to Offense That Targeted Former Victims of Ponzi SchemeRead the Press Release
CONCORD, N.H. – Ronald Mason, age 47, has pleaded guilty to a mail fraud scheme that involved the theft of more than $625,000 from five New Hampshire residents, announced United States Attorney Emily Gray Rice.
In October 2004, Mason was sentenced by a United States District Court in Texas to 33 months in prison and three years of supervised release. While Mason was serving that sentence, Scott Farrar, and Farrar’s business associate, Donald Dodge, who operated under the name Financial Resources Management (FRM), pled guilty in U.S. District Court in New Hampshire to a Ponzi scheme that involved the theft of more than $30 million from FRM’s customers. Farrar and Dodge falsely promised some of FRM’s investors that their money would be used to finance the construction of a condominium complex in Concord, New Hampshire.
After being released from prison, Mason absconded from supervision and a warrant was issued for his arrest. Mason used a false last name, Budalucci, and moved to Concord, New Hampshire.
Mason caused letters to be delivered by the United States Postal Service to more than 100 people whom Farrar and Dodge defrauded by falsely promising to invest their money in the same condominium project in Concord. The letter invited these victims to participate in a plan by which additional condominiums would be constructed and sold. Three former victims responded to the letter and met with Mason. Unaware that Mason was a fugitive from justice, the victims provided more than $475,000 to Mason over a 30-month period because he falsely promised that their money would be used to build and sell condominiums and for other income-producing real estate projects in New Hampshire.
During the same period, Mason borrowed more than $150,000 from two other residents of New Hampshire by concealing his status as a fugitive and falsely promising that he would repay the loans with money he would receive from incoming-producing real estate projects in New Hampshire.
A sentencing hearing is scheduled for September 13, 2016.
The case was investigated by the United States Secret Service and the United States Postal Inspection Service. The case was prosecuted by AUSA Robert Kinsella.
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Franklin, Kentucky, Physician Guilty of Illegal Distribution of Controlled SubstancesRead the Press Release
Prescribed opiate pain medications outside the course of professional medical practice and without a legitimate medical purpose.
Two patients died while under his care.
BOWLING GREEN, Ky. – A Franklin, Kentucky, physician pleaded guilty today in U.S. District Court before Magistrate Judge H. Brent Brennenstuhl to charges of the illegal distribution of controlled substances by way of prescribing opiate pain medications outside of the course of professional medical practice and without a legitimate medial purpose, announced U.S. Attorney John E. Kuhn, Jr.
According to the plea agreement, Roy D. Reynolds, age 66, was a doctor practicing in Franklin, Kentucky, in Simpson County during the time of the illegal activity. Dr. Reynolds was the treating physician to patients known as J.H. and J.R. at the time of their deaths. According to autopsies, both patients died from pharmaceutical overdoses.
According to information in the plea agreement, J.H. had a history of illegal drug usage and psychiatric issues which were documented in his patient charts. Further, this patient had a KASPER report also suggesting opiate abuse and diversion. Although J.H. made various somatic complaints, Dr. Reynolds never objectively documented a legitimate source of pain. Also, an opiate centric treatment plan was contraindicated because of risk factors inherent with a history of drug abuse.
Nonetheless, Dr. Reynolds admitted to placing J.H. on a regimen of chronic opiate therapy, and did not monitor or enforce patient accountability, (did not perform urine screens or pill counts), and did not attempt to wean J.H. off opiates. Between February 2009 and April 2011, Dr. Reynolds repeatedly prescribed oxycodone, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, to J.H. outside the course of professional medical practice and without a legitimate medical purpose.
On April 3, 2011, J.H. died at age 46 of a pharmaceutical overdose, and an autopsy revealed oxycodone at five (5) times the upper therapeutic concentration. Two days prior to his death, Dr. Reynolds prescribed J.H. 180 oxycodone pills and 90 Xanax pills.
J.R. was Dr. Reynolds’s patient between July 2010 and December 2011. J.R. presented vague complaints of knee, neck and shoulder pain, but MRI’s and physical examinations failed to identify any significant pathologies. A legitimate pain diagnosis was never established, and J.R.’s patient records reflect a history of alcohol abuse, doctor shopping, drug dependency, and non-compliance. Controlled substances were contraindicated, but Dr. Reynolds repeatedly prescribed hydrocodone, a Schedule III controlled substance at the time, and Xanax and clonazepam, Schedule IV controlled substances, outside the course of professional medical practice and without a legitimate medical purpose. On December 30, 2011, J.R. died at age 41 of a pharmaceutical overdose, and an autopsy revealed hydrocodone at thirty (30) times the upper therapeutic concentration.
If convicted at trial, Reynolds could have been sentenced to no more than 30 years in prison, followed by a three year period of supervised release and fined $1.5 million. Reynolds will be sentenced by U.S. District Judge Greg Stivers in Bowling Green.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and Kentucky State Police.
Fort Wayne Man Sentenced to 77 Months’ ImprisonmentRead the Press Release
FORT WAYNE – United States Attorney for the Northern District of Indiana, David Capp, announced that Corey Stewart Eaves, 35, of Fort Wayne, Indiana, was sentenced before District Court Judge Theresa L. Springmann for being a felon in possession of a firearm.
Eaves was sentenced to 77 months imprisonment and 1 year supervised release.
According to documents filed in the case, on July 12, 2015, the Fort Wayne Police Department was called to a home in Fort Wayne for a domestic disturbance. During the investigation, the police found multiple firearms and ammunition that was in the possession of Eaves. Due to Eaves prior felony criminal convictions, the Fort Wayne Police Department turned the case over to the Bureau of Alcohol, Tobacco, Firearms and Explosives for a federal charge of being a felon in possession.
This investigation was conducted by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
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Fort Hall Man Sentenced to 78 Months for ManslaughterRead the Press Release
POCATELLO – Joaquin Broncho, 19, of Fort Hall, Idaho, was sentenced today to 78 months in prison for voluntary manslaughter, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Broncho to serve three years of supervised release. Broncho pleaded guilty on February 9, 2016. Broncho was previously charged as a juvenile in this case, but his case was later transferred to adult court.
According to the plea agreement, on August 29, 2014, Broncho and others were involved in a fight outside of a residence on the Fort Hall Indian Reservation. Broncho went into the house, obtained a knife and went back outside and stabbed the victim, Joey Runninghorse. Runninghorse was taken to the hospital where he was pronounced dead as a result of the stabbing.
The case was investigated by the Federal Bureau of Investigation (FBI), and the Fort Hall Police Department.
Former Winnebago County Purchasing Director Sally Claassen Pleads Guilty to Federal Charges of Stealing over $400,000Read the Press Release
ROCKFORD — The former Winnebago County Purchasing Director pleaded guilty today before U.S. District Judge Frederick J. Kapala to two counts of theft from a program receiving federal funds. SALLY A. CLAASSEN, 57, of Roscoe, Ill., was an employee of Winnebago County from March 3, 1997, until she resigned on Sept. 11, 2015. Claassen’s job title prior to her resignation was Purchasing Director.
According to the written plea agreement, as Purchasing Director for Winnebago County, Claassen was responsible for receiving and reviewing invoices submitted by vendors and submitting payment to vendors. As stated in the plea agreement, from Feb. 25, 2014 through April 27, 2015, Claassen used her position as the approver for payments from Winnebago County to vendors to steal approximately $368,137 from the County. Claassen admitted that she accomplished this theft by asking two Winnebago County vendors to submit false invoices to Winnebago County for work that was not performed, which Claassen then paid with County funds. Claassen then directed the two vendors to provide her with checks made out to “Cash” or to “JP Morgan Chase” for the full amounts that the vendors were paid. As Claassen further admitted, she told the two vendors that she needed them to submit the false invoices and then provide her with the checks for the full amount of the payments to help her allocate Winnebago County money to a project being funded by a charitable organization. In reality, Claassen stole the money by depositing the checks into her personal bank accounts. One of the vendors provided Claassen with 5 checks that totaled $45,000. The other vendor provided Claassen with 7 checks that totaled $323,137. No money given to Claassen by either vendor was ever used for the purpose for which she told the vendors that it was to be used.
As further stated in the plea agreement, in her position as Purchasing Director, Claassen held a Winnebago County-issued credit card that she was authorized to use to make purchases for official County business. Claassen was required to submit invoices and supporting documentation to the County to demonstrate that items purchased were for County business. Claassen also had the ability to purchase items for Winnebago County by requesting that Winnebago County issue a check to a particular vendor. Claassen was required to submit invoices and supporting documentation to Winnebago County to demonstrate that the requested check was to be used to purchase items for Winnebago County business. Claassen admitted in the plea agreement that from April 15, 2014 to July 1, 2015, she used her Winnebago County-issued credit card and checks from Winnebago County to purchase items for her personal use, including home remodeling items and personal vacations. Claassen admitted she primarily accomplished this by either using her Winnebago County-issued credit card to make personal purchases and then submitting false or altered supporting documentation so the County would pay for the charges, or modifying or creating false invoices and submitting them to Winnebago County so the County would issue a check for the purchase.
According to the plea agreement, as an example of using the Winnebago County-issued credit card to accomplish the theft, on Jan. 29, 2015, Claassen used the credit card at a local vendor to purchase granite countertops for her kitchen in the amount of $6,109. While the sales order for this purchase listed the customer as Claassen at her home address, on Feb. 12, 2015, Claassen submitted an altered version of the sales order to the County listing Winnebago County as the customer with an altered description of the items purchased.
Another example in the plea agreement was that on May 20, 2014, Claassen ordered approximately $13,214 worth of furniture for her home and gift cards from a vendor. The sales order provided to Claassen noted that the customer was Claassen at her home address and listed various items of furniture that had been ordered. On the same date, Claassen caused an employee in her department to submit a request for Winnebago County to issue a payment by check to that vendor in the amount of $13,125. In the plea agreement, Claassen admitted that with the request she submitted an altered sales order from that vendor that listed Winnebago County as the customer with an altered description of the items purchased.
In total, using these methods, it is the government’s position in the plea agreement that Claassen stole approximately $451,353 from Winnebago County in 2014 and 2015. In the plea agreement, Claassen reserved the right to dispute this amount. Claassen also agreed in the plea agreement to the entry of a forfeiture judgment to the United States all right, title, and interest that she has in any property constituting or derived from proceeds obtained, directly or indirectly and further agreed not to contest forfeiture of approximately $292,525 already seized by the United States.
On each count Claassen faces a maximum sentence of up to 10 years’ imprisonment, a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater, and full restitution. In addition, Claassen faces a term of supervised release of up to 5 years following imprisonment. Claassen remains free on her own recognizance pending sentencing, which U.S. District Judge Frederick J. Kapala set for September 13, 2016, at 9:30 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Plea Agreement
Former Terrebonne Sheriff’s Officer Pleads Guilty to Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRYL B. STEWART, age 49, of Houma, pled guilty today to one count of theft of government funds.
According to court records, STEWART was the Narcotics Unit Supervisor for the Terrebonne Parish Sheriff’s Office (TPSO) during a time period when the TPSO applied for a received two separate federal grants from the Department of Justice. The two grants were for personnel overtime and equipment to support a Multi-Jurisdictional Narcotics Task Force. From 2009 through 2012, STEWART claimed and approved his own overtime from the two grants. The Federal Bureau of Investigation began to look into the billing and discovered through documents and interviews that STEWART occasionally claimed overtime for the two federal grants at the same time that he was working private security details. There were other instances where STEWART claimed federal overtime hours from the grants but he did not actually participate in the narcotics enforcement work. The amount that was improperly billed totals $15,925.
STEWART, who resigned from the TPSO on or about April 12, 2016, faces a sentence of up to ten (10) years in prison, up to $250,000 in fines, and up to three (3) years of supervised release. U.S. District Judge Ivan L.R. Lemelle set sentencing on September 7, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation for its handling of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
Former McDowell County Assistant Prosecutor sentenced to prison for Federal tax crimeRead the Press Release
BECKLEY, W.Va. – A former McDowell County Assistant Prosecuting Attorney was sentenced today to a year and a half in federal prison for his conduct related to a federal tax crime, announced Acting United States Attorney Carol Casto. Jason Ray Grubb, 38, of Beaver, previously pleaded guilty for failing to collect, account for, and pay employment taxes.
Grubb admitted that while working as a lawyer in private practice he withheld payroll taxes from the paychecks of an employee. Instead of withholding and paying those taxes as required under federal law, he kept the money and did not pay the Internal Revenue Service. Grubb also admitted that he failed to pay personal income taxes for a number of years, and that he falsified vouchers sent to West Virginia Public Defender Services, including 51 days on which he billed for over 24 hours of work.
The Court further required Grubb to pay restitution for his failure to pay over $247,000 in federal taxes, overbilling Public Defender Services more than $126,000, and not paying a financing company, Daniels Capital Corporation, for more than $27,000 in advances.
This case was investigated by the Internal Revenue Service’s Criminal Investigation division and the West Virginia Commission on Special Investigations. Assistant United States Attorneys Meredith George Thomas and Eric Bacaj handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Former LAPD Officer Pleads Guilty, Admits Trying to Smuggle Mexican Citizen in Spare Tire Well of his CarRead the Press Release
Assistant U.S. Attorney Michael Lasater (619) 546-7462 or Benjamin Katz (619) 546-9604
NEWS RELEASE SUMMARY – June 1, 2016
SAN DIEGO – Former Los Angeles police Officer Carlos Curiel Quezada, Jr., pleaded guilty in federal court today on charges that he attempted to smuggle a Mexican citizen into the United States in the spare tire well of his car at the Otay Mesa border crossing in March of 2015.
His girlfriend, Angelica Godinez, pleaded guilty to lying on an application for court appointed counsel. Both are scheduled to be sentenced on August 26, 2016, at 8:30 a.m. before U.S. District Judge Gonzalo Curiel.
According to court documents, Quezada drove his 2014 Nissan Juke, with Godinez as the front seat passenger, into the United States through the Otay Mesa Port of Entry on March 14, 2015, at about 6:30 p.m. They presented their U.S. passports and told a Customs and Border Protection Officer they had nothing to declare. The officer decided to refer them aside for a more intensive inspection.
During the inspection, officers examined the car with the Z-Portal, a non-intrusive imaging device similar to an X-ray, and detected something unusual in the rear cargo area of the vehicle. Antanasio Perez Avalos, a 26-year-old Mexican national, was found in a compartment in the spare-tire area.
DEFENDANTS Criminal Case Number 15cr1205GPC
Carlos Curiel Quezada Jr. Age: 34 Los Angeles, CA
Angelica Godinez Age: 31 Los Angeles, CA
SUMMARY OF CHARGES
Bringing in Illegal Aliens without Presentation – Title 8 United States Code Sec. 1324(a)(2)(B)(iii)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
AGENCY
U.S. Customs and Border Protection
Former Independence, Missouri, Police Officer Sentenced to 48 Months in Prison for Violating Civil Rights of Minor in his CustodyRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Tammy Dickinson of the Western District of Missouri announced that former Independence, Missouri, Police Officer Timothy Runnels was sentenced to 4 years in prison for violating the constitutional rights of a minor who was in his custody.
As part of his guilty plea, Runnels admitted that while he was employed as an officer of the Independence Police Department, he deprived the minor of his civil rights by deliberately dropping the minor face first onto the ground while the minor was restrained and not posing a threat to Runnels or others. According to the court filings, Runnels also admitted that his actions resulted in bodily injury to the minor.
During a sentencing hearing before Senior U.S. District Court Judge Dean Whipple of the Western District of Missouri, the government provided evidence that Runnels deployed his taser into the minor’s chest during a traffic stop and then caused the electric current to run for approximately 20 seconds, four times longer than officers are trained to deploy a taser. Evidence at the hearing revealed that as a result of the tasing, the minor went into cardiac arrest and became unresponsive. Dash camera video of the incident depicts Runnels handcuffing the minor after the taser deployment and then picking him up. The video and other evidence presented at the sentencing demonstrates that Runnels then deliberately dropped the handcuffed victim face-first into the pavement. Although the minor suffered cardiac arrest and facial injuries, he survived the incident due to timely medical treatment by medical personnel at the scene and at the hospital.
Judge Whipple issued the sentence, which will be followed by two years of supervised release.
“The defendant abused his authority as a law enforcement officer by depriving a minor of his constitutional rights and causing bodily harm,” said Principal Deputy Assistant Attorney General Gupta. “While the majority of law enforcement safeguards our communities with fidelity, the department will continue to vigorously investigate and prosecute officers who violate their oath by using excessive force.”
“This former police officer was trained and entrusted to enforce the law impartially,” said U.S. Attorney Dickinson. “His use of excessive force violated both the public’s trust and his oath to uphold the law. Police officers are not above the law and will be held accountable when they violate the civil rights of the citizens they are sworn to protect and serve.”
This case was investigated by the FBI’s Kansas City Division and is being prosecuted by Trial Attorney Shan Patel of the Civil Rights Division’s Criminal Section and First Assistant U.S. Attorney David Ketchmark of the Western District of Missouri.
Former EAA Principal Sentenced for Conspiracy to Commit BriberyRead the Press Release
Kenyetta Wilbourn Snapp, 41, a former Educational Achievement Authority (“EAA”) principal of Denby High School and later of Mumford High School, was sentenced today to twelve months in prison as a result of her pleading guilty earlier this year to conspiracy to commit federal program bribery and federal income tax evasion charges, United States Attorney Barbara L. McQuade announced. In addition, Snapp was ordered to pay restitution in the amount of $58,050 to EAA as well as $26,233 to the Internal Revenue Service.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
At the time of the plea, Snapp admitted to selecting Making a Difference Everyday (“M.A.D.E.”), a company owned by co-defendant Glynis Thornton , as the after-school tutoring vendor for Denby High School and then Mumford High School. In exchange, Thornton paid Snapp monetary kickbacks totaling approximately $58,000, as a reward for Snapp selecting and retaining M.A.D.E. as the after-school tutoring vendor. Thornton admitted that she disguised payments to Snapp by causing checks to be issued payable to a M.A.D.E. employee’s company, rather than paying Snapp directly. The M.A.D.E. employee would then deposit and withdraw the money and give it to Snapp. Snapp also admitted to failing to report the kickback payments as income during taxable year 2012.
"Ms. Snapp deserves to spend time in prison for her betrayal of public trust, but this sentence demonstrates the value of early cooperation to provide information about the criminal acts of others”, stated United States Attorney McQuade.
"Ms. Snapp and Ms. Thornton's efforts to divert funds from the struggling Detroit Public School District and students trying to better themselves is particularly disturbing," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "These convictions represent the commitment of the FBI and our partners to expose and shut down schemes that would rob our communities of the education and services that they count on and deserve."
IRS-CI Special Agent in Charge Koopman stated, "When public officials commitcrimes, whether as part of their official duties or in their private lives, they are violating the trust of the people they serve. IRS-CI will continue to hold them accountable for their actions".
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.
Former Danville Business Owner Sentenced to Prison for Defrauding U.S. Energy GrantRead the Press Release
Springfield, Ill. – Former Danville, Ill., business owner Joseph Samuel Kozicki has been ordered to serve 15 months in federal prison for defrauding a U.S. Department of Energy grant program. Kozicki, 80, currently resides in California. He waived his personal appearance to appear by video for sentencing yesterday before U.S. District Judge Sue E. Myerscough in Springfield. Judge Myerscough ordered Kozicki to pay restitution in the amount of $383,318. Kozicki was allowed to self-report in 30 to 60 days to the federal Bureau of Prisons to begin serving his sentence. He was ordered to serve a three-year term of supervised release following his release from prison.
Kozicki served as chief executive officer for AA Solar, Inc., in Danville, in March 2010, when his company sought and received a U.S. Department of Energy grant in the amount of $1,776,268. The grant program was funded by the American Recovery and Reinvestment Act of 2009, to, among other things, provide grants to businesses to boost the economy. The program was administered in Illinois by the Department of Commerce and Economic Opportunity (DCEO).
According to court documents, AA Solar was one of 20 projects awarded a grant by the Department of Energy. The company sought funds to purchase and install equipment for a manufacturing facility in Danville to make solar tracking systems.
On May 26, 2015, Kozicki entered a plea of guilty to defrauding the grant program. According to court documents, Kozicki instructed AA Solar employees to provide DCEO with fraudulent invoices, quotes, or purchase orders. During the scheme, Kozicki made payments or withdrawals from AA Solar’s bank accounts for personal expenses. As a result of the scheme, Kozicki fraudulently attempted to obtain approximately $649,269 from the grant and did obtain $383,318 from the grant. DCEO denied payment of AA Solar’s final two fraudulent payment requests, approximately $265,269, after becoming aware of the scheme. Further, AA Solar sold only one or two of its solar tracking devices during its existence and did not provide the cash match of $1,985,000 required by the terms of the grant.
The investigation was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation, in cooperation with the Illinois Department of Commerce and Economic Opportunity. The case was prosecuted by Supervisory Assistant U.S. Attorney Eugene L. Miller.
Former CEO-Physician and Drug Testing Laboratory Pay $9.35 Million to Settle False Claims Act AllegationsRead the Press Release
Dr. Jonathan Oppenheimer, former owner and CEO of Nashville drug testing laboratory Prost-Data, Inc., d/b/a OURLab (“OURLab”), OPKO Health, Inc. (“OPKO”), and OPKO Lab, LLC, have agreed to pay $9.35 million to resolve False Claims Act (“FCA”) allegations, announced David Rivera, United States Attorney for the Middle District of Tennessee. Pursuant to the civil settlement, Oppenheimer, and OPKO will be jointly and severally liable for the settlement amount. OPKO is a successor to OPKO Lab, LLC, which purchased OURLab from Oppenheimer in December 2012, after OURLab and Oppenheimer instituted the alleged conduct. OPKO Lab, LLC ceased commercial operations in early 2016 and is no longer billing federal payors. Oppenheimer has agreed to an exclusion from participation in all federal health care programs for 5 years as part of the agreement.
“Enforcement of the False Claims Act is a priority of the Department of Justice and this Office,” said United States Attorney David Rivera. “The U.S. Attorney’s Office and our law enforcement partners are committed to protecting the public fisc and protecting the integrity of federal healthcare programs by vigorously investigating alleged violations of the Anti-Kickback Statute and Stark Law.”
The settlement resolves allegations by the United States that Dr. Oppenheimer and OURLab, and OPKO as a successor company, submitted false claims for payment to the Medicare Part B program as a result of violations of the Federal Anti-Kickback Statute (“AKS”) and the Stark Law (“Stark”) from about June 2007 through January 2015. These violations relate to donations that OURLab and Oppenheimer made toward electronic health records (“EHR”) systems purchased by their client physician practices from EHR vendors. OURLab and Oppenheimer ostensibly made these contributions pursuant to the AKS safe harbor and Stark exception that allowed laboratories to contribute to a practice’s purchase of an EHR system from 2006 until drug testing laboratories were removed from the scope of these provisions in 2013. Although these provisions allowed certain entities to contribute up to 85% of the purchase price of an EHR system to a vendor on behalf of a physician’s practice, they placed certain restrictions on such activities. The United States alleged that the conduct of OURLab and Oppenheimer fell outside of the restrictions set forth in the AKS EHR safe harbor and the Stark EHR exception, and constituted violations of those statutes.
Specifically, OURLab and Oppenheimer made monetary contributions toward EHR systems obtained by their client physician practices, and, in making these contributions, they violated the AKS EHR safe harbor and the Stark EHR exception by, among other things, (1) directly considering the volume and/or value of referrals and business, including return on investment, between OURLab and the physicians’ practice when determining whether to make an EHR donation and the amount of the donation; (2) improperly considering the volume of Medicare business supplied by the physician practice when considering an EHR donation; and (3) occasionally withholding previously agreed-upon EHR donation payments until they received a certain number of referrals from the physicians’ practice. These actions placed OURLab and Oppenheimer outside of the scope of the EHR safe harbor provisions for the AKS and Stark, and constituted illegal kickbacks and physician remuneration.
"This laboratory traded physicians free computer software for patient referrals," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "Such quid pro quo arrangements are kickbacks that stifle competition and steer business to the company offering the inducements."
The settlement agreement also resolves allegations that OURLab, and subsequently OPKO Lab, LLC, billed the Medicare and TRICARE programs for fluorescence in situ hybridization (“FISH”) tests despite a June 2012 adverse coverage determination for the particular type of FISH test being used. A FISH test maps the genetic material in human cells. Because FISH tests can detect abnormalities associated with cancer, it may be useful for diagnosing certain types of the disease.
The United States’ investigation corroborated conduct originally alleged in a qui tam complaint filed by a former employee of OURLab pursuant to the FCA. The qui tam provisions of the False Claims Act allows for whistleblowers, or relators, to file suit for violations of the act on behalf of the government. The relator is entitled to a percentage of the amount recovered by the government as a result of the information provided that resulted in the subsequent investigation and resolution. The relator in this case will receive $1.683 million.
This matter was investigated by the Department of Health and Human Services Office of Inspector General and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis.
The case is docketed as United States ex rel. Newman v. OPKO Health Inc., et al., No. 3:13-cv-0700 (M.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Former Buffalo School Official Pleads Guilty to Stealing Funds from City SchoolsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Debbie Buckley, 56, of Niagara Falls, NY, pleaded guilty to theft of government funds. The charge carries a maximum penalty of 10 years and a $250,000 fine.Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Buckley served as Supervisor of Title I, Office of Federal and State Programs for the Buffalo School District. Title I is a federally funded program that provides assistance to school districts with high numbers of children from low income families. In March 2010, Buckley was promoted to Assistant Superintendent of Federal and State Programs.
In June 2009, the defendant met with a representative of the Universal School which moved into the City of Buffalo. During the meeting, Buckley asked for and was provided with blank Universal School letterhead signed by the representative. The defendant indicated the letterhead would be used to include the Universal School with other non-public schools to increase resources available.
A record obtained during the investigation included an undated letter on Universal School letterhead purportedly written by the school representative. The letter, addressed to Buckley, requested an individual to administer the Title I computer assisted program at the Universal School during the 2009-10 school year. The school representative did not write or sign the letter and the Universal School did not have a Title I computer assisted program.Subsequently, a fraudulent contract was prepared assigning an individual identified as Hassan El Saddique to provide Title I assistance at the Universal School. El Saddique, who is Buckley’s son, never provided such assistance to the Universal School, instead El Saddique worked on a volunteer basis a few hours a week at Bishop Timon High School in Buffalo. Never the less, he submitted weekly invoices based on the fraudulent contract for full time payment to the Buffalo School District for the period of September 8, 2009 through June 30, 2010. Some of these invoices included payment for days school was not even in session.
Buckley changed the approval process by which a contractor was paid for Title I services provided in non-public schools. The defendant eliminated the need for a signature from an official at the non-public school. Buckley did this so that she could sign the fraudulent invoices submitted by her son authorizing the payment of the invoices. The dates of some of these invoices coincide with the period during which Buckley was promoted to Assistant Superintendent.
El Saddique received 18 paychecks from the Buffalo School District totaling $15,120. Of those paychecks, 13 were deposited into two union accounts controlled by Buckley for a total of $10,320 and another check was cashed using one of those accounts.
In February 2015, Hassan El Saddique was indicted by a federal grand jury, also on a charge of theft of government funds. The charge is still pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the U.S. Department of Education, Office of Inspector General, under the direction of Assistant Special Agent in Charge Geoff Wood.
Former Bel Aire Police Chief Pleads Guilty to Misdemeanor Theft ChargeRead the Press Release
WICHITA, KAN. - A former Bel Aire police chief has pleaded guilty to a federal misdemeanor charge of theft of public funds, Acting U.S. Attorney Tom Beall said today.
John R. Daily, 63, Haysville, Kan., pleaded guilty Tuesday to one count of theft of government funds. In his plea, he admitted he filed paperwork falsely representing that certain firearms were purchased for the exclusive use of the Bel Aire Police Department. As a result, no sales tax was collected on the purchase of the following firearms:
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$72 in sales tax was not collected on the purchase of a Sig Sauer 1911R TACOPS handgun
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$231 in sales tax was not collected on the purchase of three FNP90 rifles.
Daily knew or believed that the firearms would be owned by individuals, not by the department, although the firearms would be available for work use as well as personal use.
Sentencing is set for Aug. 17. He faces a penalty of up to one year in federal prison and a fine up to $100,000. Beall commended the Sedgwick County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Debra Barnett for their work on the case.
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Final Defendant Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – Dorian Maurice Griffin, age 20, of Baltimore, pleaded guilty today to conspiracy to commit bank fraud and to aggravated identity theft. Four co-defendants have previously pleaded guilty to the scheme, in which the defendants deposited counterfeit checks drawn on the accounts of identity theft victims into bank accounts opened by the defendants in the name of shell companies. The defendants then withdrew the funds before the fraud could be detected.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, between February 2014 and July 2014, Griffin conspired with lead defendant Monika Hill, Mark Peeples, Alysia Rascoe, Christopher McKoy, and others to open 22 business bank accounts online, using the personal identifying information of identity theft victims. The bank accounts were funded using forged checks bearing the bank account numbers and forged signatures of other identity theft victims.
For example, Grant U Pleasure, LLC was registered with the State of Maryland Department of Labor, Licensing and Regulation as businesses on March 12, 2014. The business listed an identity theft victim as the managing member/owner, and the defendant used that person’s social security number and date of birth to open online bank accounts for the business. Shortly thereafter, the co-conspirators deposited counterfeit checks into the accounts, and withdrew the funds before the fraudulent checks were detected.
Specifically, beginning on March 25, 2014, 31 counterfeit checks totaling $51,490 were deposited into three business banks accounts opened online in the name of Grant U Pleasure. A total of $52,433 was drawn out of two of those accounts by checks being cashed against funds in the accounts. All of the deposited counterfeit checks were from an account belonging to three identity theft victims. Hill and Peeples deposited a total of seven counterfeit checks into the Grant U Pleasure accounts, each bearing the forged signature of a victim account owner. Once the counterfeit checks were deposited, Hill provided checks to Griffin, Rascoe, Peeples, and others drawn on the Grant U Pleasure accounts. The checks were made out to them in amounts ranging from $1,500 to $1,800, and bore the forged signature of the purported managing member/owner of Grant U Pleasure. Griffin and his co-defendants cashed the checks, providing their driver’s licenses, fingerprints and signatures. They typically kept about $200 of the proceeds for themselves and provided the rest to Hill and others. Between March 26 and April 8, 2014, Griffin cashed 11 checks drawn on the Grant U Pleasure accounts totaling $19,345.
Over the course of the conspiracy, Griffin cashed a total of 30 checks in this same manner, drawn on nine shell corporations with business band accounts. The total amount of checks cashed by Griffin alone was $47,455.
The loss to the bank as a result of the scheme was $179,808.76, the amount actually withdrawn. The intended loss was $233,190.02, the total amount of the counterfeit checks deposited.
Griffin faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Griffin on October 21, 2016, at 10:00 a.m.
Lead defendant Monika Michelle Hill, age 36, of Baltimore and Cockeysville, Maryland, pleaded guilty to three counts of conspiracy to commit bank fraud, aggravated identity theft, and to committing these offenses while on pre-trial release in another fraud case. Hill and government have agreed that if the Court accepts her plea agreement, Hill will be sentenced to 10 years in prison. Mark Darnell Peeples, age 31, and Alysia Samon Rascoe, age 26, both of Baltimore pleaded guilty to conspiracy to commit bank fraud and to aggravated identity theft. Judge Hollander has scheduled sentencing for Peeples on August 23, 2016 and for Rascoe on July 20, 2016, both at 2:30 p.m. Christopher Vance McKoy, age 24, of Baltimore, pleaded guilty to two counts of conspiracy to commit bank fraud. McKoy and the government have agreed that if the Court accepts his plea agreement McKoy will be sentenced to between 21 and 27 months in prison. Judge Hollander has scheduled sentencing for McKoy on July 19, 2016 at 10:00 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Matthew J. Maddox, who are prosecuting the case.
Federal Officials Decline Prosecution in the Death of Jamar ClarkRead the Press Release
The Justice Department announced today that the independent federal investigation into the fatal shooting of Jamar Clark on Nov. 15, 2015 in North Minneapolis, Minnesota, found insufficient evidence to support federal criminal civil rights charges against Minneapolis Police Department (MPD) Officers Mark Ringgenberg and Dustin Schwarze. Prosecutors from the U.S. Attorney’s Office of the District of Minnesota and the Justice Department’s Civil Rights Division, along with officials from the FBI and the Justice Department’s Community Relations Service, met today with Clark’s family and their representatives to inform them of the findings of the investigation and the decision.
The department conducted a comprehensive independent investigation of the events surrounding Clark’s death and reviewed the materials and evidence provided by the Hennepin County, Minnesota, Attorney’s Office and the Bureau of Criminal Apprehension (BCA). Federal agents and prosecutors examined evidence from numerous sources, including surveillance videos from a Hennepin County Medical Center (HCMC) ambulance parked near the site of the shooting; statements from witnesses; evidence gathered by the MPD’s crime lab; MPD documents related to the shooting; personnel files and background material for both involved officers; MPD policies and training materials; squad car videos; 911 recordings; and DNA, blood stain and autopsy reports, including a report of an independent review of the Hennepin County autopsy conducted by the Office of the Armed Forces Medical Examiner at the Department of Defense. Some witness interviews were conducted jointly by the BCA and FBI in the interest of efficiency and completeness. Additionally, the department reviewed the officers’ phone records and interviewed witnesses that spoke with the officers after the incident.
In order to proceed with a prosecution under the applicable federal criminal civil rights law, section 242, prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a constitutional right. Since Clark had not been arrested when he was shot, the right involved is his Fourth Amendment right to be free from an unreasonable seizure. This right includes the right to be free from unreasonable physical force by police.
To prove that a shooting violated the Fourth Amendment, the government must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force on an arrestee be judged from the perspective of a reasonable officer on the scene, rather than with added perspective of hindsight. The law set forth by the Supreme Court requires that allowances must be made for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain and rapidly evolving.
Additionally, to prove that a shooting violated section 242, the government must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident or mistake or even exercised bad judgment.
Although Clark’s death is undeniably tragic, the evidence is insufficient to meet these substantial evidentiary requirements. In light of this, and for the reasons explained below, this matter is not a prosecutable violation of the federal civil rights statutes.
Officers Ringgenberg and Schwarze each provided a detailed statement to state investigators offering their version of how and why this shooting happened. In order to pursue any prosecution in this case, the government would have to disprove these accounts and establish that the shooting constituted a willful violation of Clark’s Fourth Amendment rights. During a detailed and thorough investigation, FBI agents and federal prosecutors conducted numerous interviews of witnesses to the shooting. In determining whether it was possible to disprove the officers’ statements beyond a reasonable doubt, the agents and prosecutors took into account all of the witnesses’ statements. According to the officers, Clark was taken to the ground un-handcuffed, Officer Ringgenberg fell on top of Clark and landed with his back facing Clark. Officer Ringgenberg stated that while he was in this position, Clark grabbed his gun and tried to pull it out of his holster, and that he (Officer Ringgenberg) shouted this information to his partner, Officer Schwarze. The officers stated that Officer Schwarze ordered Clark to release the gun, but Officer Ringgenberg continued to shout that Clark had his gun and that Officer Schwarze should shoot Clark. Officer Schwarze stated that, fearing for his life based on what he heard from Officer Ringgenberg and based on Clark’s and Officer Ringgenberg’s body positioning, he shot Clark.
In order to fully assess whether this shooting constituted an unreasonable use of force, federal investigators closely examined, among other things, all of the evidence concerning whether Clark was handcuffed when he was shot. Federal investigators spent considerable time and resources investigating this specific question because the fact that a suspect was handcuffed would change the analysis of whether a particular use of force was reasonable, since a restrained person generally presents less risk of harm to an officer than an unrestrained person.Based on this extensive investigation, the Justice Department concluded that the evidence suggests that Clark was not handcuffed during this incident. Although approximately half of the civilian eyewitnesses interviewed by the FBI reported having seen handcuffs on Clark (and other witnesses believed, based on Clark’s body positioning, that he was handcuffed) these witnesses’ accounts varied significantly in the details of when he was handcuffed, what position he was in when he was handcuffed and even whether one or both hands were handcuffed. These conflicting witness accounts seriously undermine the degree to which they could be used to either disprove the officers’ accounts or to affirmatively establish that Clark was handcuffed.
Additionally, the relevant physical evidence, while not conclusive, tends to support the officers’ account. Neither the Hennepin County Medical Examiner’s autopsy, nor the independent autopsy review conducted by the Office of the Armed Forces Medical Examiner, found evidence of injuries to Clark’s wrists that would be consistent with handcuffing. Further, the department conducted DNA analysis of a pair of handcuffs found in the grass next to Clark’s body. Laboratory swabs of the inner and outer edges of the handcuffs found in the grass, the part that would have touched Clark’s wrists, revealed insufficient DNA for analysis. While these results are not definitive they do not support the conclusion that Clark was handcuffed.
In addition, the department reviewed the surveillance video from the HCMC ambulance that captured part of the incident. When considered in conjunction with the accounts of on-scene paramedics, the footage suggests that Clark was not handcuffed when he was shot. Two paramedics reported exiting the ambulance and moved towards Clark who is lying on his back and not wearing handcuffs. During that same time, Officer Ringgenberg can be seen on the video standing behind the ambulance, pacing around, without kneeling on the ground to remove handcuffs from Clark. Additional video shows that when Clark was transported into an ambulance a short time later, he was not handcuffed. While this evidence that Clark was not handcuffed in the moments following the shooting is not conclusive regarding whether Clark was handcuffed moments before when the shooting occurred, such evidence suggests that he was not. In sum, taken together, the witness accounts and the physical evidence simply cannot establish beyond a reasonable doubt that Clark was handcuffed when he was shot.
Federal investigators also considered whether, even if Clark was not handcuffed, the other evidence in the case is sufficient to establish beyond a reasonable doubt that the shooting was objectively unreasonable, in violation of the Fourth Amendment. The government would be required to produce admissible evidence that would disprove the officers’ accounts, establish the facts, and further establish that the officers’ actions were objectively unreasonable under the circumstances.
The evidence in this case is insufficient to meet this legal standard. Federal investigators obtained statements from 29 witnesses to the shooting. The witness accounts do not provide any consistent narrative that establishes the details of exactly what happened between the officers and Clark, including how Clark was positioned on the ground, where his hands were located, where the officers were positioned and what happened to Officer Ringgenberg’s gun while he was on top of Clark. Additionally, none of these witnesses were close enough to see exactly what happened between Officer Ringgenberg and Clark while they were entangled with each other on the ground. To the extent that video from the ambulance partially provides this vantage point, it shows Officer Ringgenberg, face-up, struggling to get up off of Clark, which tends to corroborate Officer Ringgenberg’s version of events. Moreover, during this investigation, DNA testing revealed the presence of Clark’s DNA on Officer Ringgenberg’s gun. While the exact means by which Clark’s DNA was transferred to the gun cannot be established, its presence makes it impossible to disprove Officer Ringgenberg’s claim that Clark grabbed the gun.
In light of this, the evidence gathered during this investigation is insufficient to prove beyond a reasonable doubt that the shooting was objectively unreasonable, in violation of the Fourth Amendment.Finally, in analyzing a potential charge under section 242, federal investigators also considered whether the evidence was sufficient to prove the statutory element of willfulness. To establish that the officers acted willfully, the government would be required both to disprove the reason the officers gave for the shooting and to affirmatively establish that the officers instead acted with the specific intent to violate Clark’s rights. For many of the same reasons described above, the evidence is insufficient to prove willfulness. .
In sum, after extensive investigation into this tragic event, the Justice Department concludes that the evidence is insufficient to prove beyond a reasonable doubt that Officers Ringgenberg and Schwarze willfully violated Clark’s civil rights. Accordingly, the investigation into this incident has been closed without prosecution.In this case, the U.S. Attorney’s Office of the District of Minnesota, the Civil Rights Division and the FBI each devoted significant time and resources to investigating the circumstances surrounding Clark’s death and to completing a thorough analysis of the evidence gathered. The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Officials Decline Prosecution in the Death of Jamar ClarkRead the Press Release
The Justice Department announced today that the independent federal investigation into the fatal shooting of Jamar Clark on Nov. 15, 2015, in North Minneapolis, Minnesota, found insufficient evidence to support federal criminal civil rights charges against Minneapolis Police Department (MPD) Officers Mark Ringgenberg and Dustin Schwarze. Prosecutors from the U.S. Attorney’s Office of the District of Minnesota and the Justice Department’s Civil Rights Division, along with officials from the FBI and the Justice Department’s Community Relations Service, met today with Clark’s family and their representatives to inform them of the findings of the investigation and the decision.
The department conducted a comprehensive independent investigation of the events surrounding Clark’s death and reviewed the materials and evidence provided by the Hennepin County, Minnesota, Attorney’s Office and the Bureau of Criminal Apprehension (BCA). Federal agents and prosecutors examined evidence from numerous sources, including surveillance videos from a Hennepin County Medical Center (HCMC) ambulance parked near the site of the shooting; statements from witnesses; evidence gathered by the MPD’s crime lab; MPD documents related to the shooting; personnel files and background material for both involved officers; MPD policies and training materials; squad car videos; 911 recordings; and DNA, blood stain and autopsy reports, including a report of an independent review of the Hennepin County autopsy conducted by the Office of the Armed Forces Medical Examiner at the Department of Defense. Some witness interviews were conducted jointly by the BCA and FBI in the interest of efficiency and completeness. Additionally, the department reviewed the officers’ phone records and interviewed witnesses that spoke with the officers after the incident.
In order to proceed with a prosecution under the applicable federal criminal civil rights law, section 242, prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a constitutional right. Since Clark had not been arrested when he was shot, the right involved is his Fourth Amendment right to be free from an unreasonable seizure. This right includes the right to be free from unreasonable physical force by police.
To prove that a shooting violated the Fourth Amendment, the government must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force on an arrestee be judged from the perspective of a reasonable officer on the scene, rather than with added perspective of hindsight. The law set forth by the Supreme Court requires that allowances must be made for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain and rapidly evolving.
Additionally, to prove that a shooting violated section 242, the government must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident or mistake or even exercised bad judgment.
Although Clark’s death is undeniably tragic, the evidence is insufficient to meet these substantial evidentiary requirements. In light of this, and for the reasons explained below, this matter is not a prosecutable violation of the federal civil rights statutes.
Officers Ringgenberg and Schwarze each provided a detailed statement to state investigators offering their version of how and why this shooting happened. In order to pursue any prosecution in this case, the government would have to disprove these accounts and establish that the shooting constituted a willful violation of Clark’s Fourth Amendment rights. During a detailed and thorough investigation, FBI agents and federal prosecutors conducted numerous interviews of witnesses to the shooting. In determining whether it was possible to disprove the officers’ statements beyond a reasonable doubt, the agents and prosecutors took into account all of the witnesses’ statements. According to the officers, Clark was taken to the ground un-handcuffed, Officer Ringgenberg fell on top of Clark and landed with his back facing Clark. Officer Ringgenberg stated that while he was in this position, Clark grabbed his gun and tried to pull it out of his holster, and that he (Officer Ringgenberg) shouted this information to his partner, Officer Schwarze. The officers stated that Officer Schwarze ordered Clark to release the gun, but Officer Ringgenberg continued to shout that Clark had his gun and that Officer Schwarze should shoot Clark. Officer Schwarze stated that, fearing for his life based on what he heard from Officer Ringgenberg and based on Clark’s and Officer Ringgenberg’s body positioning, he shot Clark.
In order to fully assess whether this shooting constituted an unreasonable use of force, federal investigators closely examined, among other things, all of the evidence concerning whether Clark was handcuffed when he was shot. Federal investigators spent considerable time and resources investigating this specific question because the fact that a suspect was handcuffed would change the analysis of whether a particular use of force was reasonable, since a restrained person generally presents less risk of harm to an officer than an unrestrained person.
Based on this extensive investigation, the Justice Department concluded that the evidence suggests that Clark was not handcuffed during this incident. Although approximately half of the civilian eyewitnesses interviewed by the FBI reported having seen handcuffs on Clark (and other witnesses believed, based on Clark’s body positioning, that he was handcuffed) these witnesses’ accounts varied significantly in the details of when he was handcuffed, what position he was in when he was handcuffed and even whether one or both hands were handcuffed. These conflicting witness accounts seriously undermine the degree to which they could be used to either disprove the officers’ accounts or to affirmatively establish that Clark was handcuffed.
Additionally, the relevant physical evidence, while not conclusive, tends to support the officers’ account. Neither the Hennepin County Medical Examiner’s autopsy, nor the independent autopsy review conducted by the Office of the Armed Forces Medical Examiner, found evidence of injuries to Clark’s wrists that would be consistent with handcuffing. Further, the department conducted DNA analysis of a pair of handcuffs found in the grass next to Clark’s body. Laboratory swabs of the inner and outer edges of the handcuffs found in the grass, the part that would have touched Clark’s wrists, revealed insufficient DNA for analysis. While these results are not definitive they do not support the conclusion that Clark was handcuffed.
In addition, the department reviewed the surveillance video from the HCMC ambulance that captured part of the incident. When considered in conjunction with the accounts of on-scene paramedics, the footage suggests that Clark was not handcuffed when he was shot. Two paramedics reported exiting the ambulance and moved towards Clark who is lying on his back and not wearing handcuffs. During that same time, Officer Ringgenberg can be seen on the video standing behind the ambulance, pacing around, without kneeling on the ground to remove handcuffs from Clark. Additional video shows that when Clark was transported into an ambulance a short time later, he was not handcuffed. While this evidence that Clark was not handcuffed in the moments following the shooting is not conclusive regarding whether Clark was handcuffed moments before when the shooting occurred, such evidence suggests that he was not. In sum, taken together, the witness accounts and the physical evidence simply cannot establish beyond a reasonable doubt that Clark was handcuffed when he was shot.
Federal investigators also considered whether, even if Clark was not handcuffed, the other evidence in the case is sufficient to establish beyond a reasonable doubt that the shooting was objectively unreasonable, in violation of the Fourth Amendment. The government would be required to produce admissible evidence that would disprove the officers’ accounts, establish the facts and further establish that the officers’ actions were objectively unreasonable under the circumstances.
The evidence in this case is insufficient to meet this legal standard. Federal investigators obtained statements from 29 witnesses to the shooting. The witness accounts do not provide any consistent narrative that establishes the details of exactly what happened between the officers and Clark, including how Clark was positioned on the ground, where his hands were located, where the officers were positioned and what happened to Officer Ringgenberg’s gun while he was on top of Clark. Additionally, none of these witnesses were close enough to see exactly what happened between Officer Ringgenberg and Clark while they were entangled with each other on the ground. To the extent that video from the ambulance partially provides this vantage point, it shows Officer Ringgenberg, face-up, struggling to get up off of Clark, which tends to corroborate Officer Ringgenberg’s version of events. Moreover, during this investigation, DNA testing revealed the presence of Clark’s DNA on Officer Ringgenberg’s gun. While the exact means by which Clark’s DNA was transferred to the gun cannot be established, its presence makes it impossible to disprove Officer Ringgenberg’s claim that Clark grabbed the gun.
In light of this, the evidence gathered during this investigation is insufficient to prove beyond a reasonable doubt that the shooting was objectively unreasonable, in violation of the Fourth Amendment.
Finally, in analyzing a potential charge under section 242, federal investigators also considered whether the evidence was sufficient to prove the statutory element of willfulness. To establish that the officers acted willfully, the government would be required both to disprove the reason the officers gave for the shooting and to affirmatively establish that the officers instead acted with the specific intent to violate Clark’s rights.
For many of the same reasons described above, the evidence is insufficient to prove willfulness.
In sum, after extensive investigation into this tragic event, the Justice Department concludes that the evidence is insufficient to prove beyond a reasonable doubt that Officers Ringgenberg and Schwarze willfully violated Clark’s civil rights. Accordingly, the investigation into this incident has been closed without prosecution.
In this case, the U.S. Attorney’s Office of the District of Minnesota, the Civil Rights Division and the FBI each devoted significant time and resources to investigating the circumstances surrounding Clark’s death and to completing a thorough analysis of the evidence gathered. The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
In Minneapolis there are a number of ongoing efforts led by the Justice Department intended to bring community members together to address public safety and public trust concerns. Minneapolis is one of six pilot cities in the department’s National Initiative for Building Community Trust & Justice which is designed to increase trust and transform relationships between communities of color and police. Additionally, the department’s Office of Community Oriented Policing Services (COPS) is conducting an independent review of the city’s response to last fall’s occupation of the Fourth Precinct station to identify significant findings about critical decisions and practices in order to help develop recommendations that Minneapolis, the Minneapolis Police Department and cities and law-enforcement agencies nationwide can use to help build trust, improve relationships and protect civil rights in the communities they serve.
Ericka Simmons Sentenced to 108 MonthsRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Ericka Simmons, 28, of Hammond, Indiana was sentenced before Judge Jon E. DeGuilio, for conspiracy to distribute Heroin.
Simmons was sentenced to 108 months’ imprisonment and 4 years of supervised release. Simmons was found guilty by a jury on February 5, 2016 at the end of a five day jury trial.
According to documents filed in this case, from 2009 up to and including October 2014, Antwon Willis knowingly and intentionally combined, conspired, confederated and agreed with other persons, including Ms. Simmons, to distribute over 100 grams of heroin in the Northern District of Indiana and elsewhere.
This case was prosecuted as a result of an investigation by the U.S. Drug Enforcement Administration with the assistance of Michigan City and Portage, Indiana Police Departments. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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Employees of the United States Attorney's Office for the Southern District of Ohio Honored by Department of Justice at Executive Office for United States Attorneys Director's Awards CeremonyRead the Press Release
WASHINGTON – Mark T. D’Alessandro, Executive Assistant United States Attorney and Kimberly R. Robinson, Special Assistant United States Attorney, both employees of the United States Attorney’s Office for the Southern District of Ohio, were two of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.
The Southern District of Ohio was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white-collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
Mr. D’Alessandro was recognized for his many contributions to the management and success of the United States Attorney’s Office for the Southern District of Ohio. He has served as both a criminal and a civil Assistant United States Attorney, as well as Deputy Civil Chief, Civil Chief, First Assistant United States Attorney, and Executive Assistant United States Attorney. He has also served as a trusted resource for several United States Attorneys. His ability to quickly and expertly respond to the many unique and complex issues faced by the Southern District of Ohio is among his most distinguishing characteristics, as is his tireless dedication to the district.
Ms. Robinson was recognized for her outstanding contributions as a Special Assistant United States Attorney for the Southern District of Ohio. Over the last two years, Ms. Robinson has served as sole or lead counsel for the United States in more than a dozen appeals, arguing two of them, and prevailing in every one that has been decided. This year, Ms. Robinson’s appellate advocacy resulted in the affirmance of four convictions and life sentences for drug distributions resulting in death, despite an intervening Supreme Court decision. The appeal followed a 35-day trial, and she handled it for the first time on remand from the Supreme Court. Ms. Robinson was also a member of a trial team that secured convictions on all counts against three defendants in a multi-week public corruption case this year.
“Mark D’Alessandro and Kim Robinson exemplify the excellence for which the U.S. Attorney’s Office for the Southern District of Ohio strives in its pursuit and administration of justice,” said Acting United States Attorney Benjamin C. Glassman. “Each is tremendously deserving of this award, and I am thrilled to be able to join Deputy Attorney General Yates and Director Wilkinson in recognizing them today. It is a testament to the superior work of our office that both Mark and Kim are being recognized as among the most outstanding in the nation at what they do.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Employees of the United States Attorney's Office for the Eastern District of Oklahoma Honored by Department of JusticeRead the Press Release
WASHINGTON – Assistant United States Attorneys Dean Burris and Linda Epperley, Victim/Witness Specialist Mary Jo Speaker and Legal Assistant Leslie Hood of the U.S. Attorney’s Office for the Eastern District of Oklahoma were four of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.
The Eastern District of Oklahoma was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
Dean Burris, Linda Epperley, Mary Jo Speaker and Leslie Hood were recognized for the prosecution of Dakota Williston for the Indian Country murder of two-year old Payton Cockrell which occurred on July 23, 2013. Williston was found guilty in a jury trial held in June 2015. At sentencing, Chief United States District Judge for the Eastern District of Oklahoma James H. Payne sentenced Williston to life in the Federal Bureau of Prisons.
United States Attorney for the Eastern District of Oklahoma, Mark Green, commended his staff by stating, “This case presented an extremely challenging set of facts. To achieve justice for Payton and her family took outstanding effort and teamwork for the prosecution team. We in the United States Attorney’s Office for the Eastern District of Oklahoma are extremely proud of these deserving recipients.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Eight MS-13 Members Convicted of Racketeering-Related ChargesRead the Press Release
A federal jury convicted eight defendants today of multiple charges related to a racketeering enterprise known as La Mara Salvatrucha, or MS-13, after a 16-week trial.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Timothy Gallagher of the FBI’s Newark, New Jersey, Division made the announcement.
Santos Reyes-Villatoro, aka Mousey, 43, of Bound Brook, New Jersey; Mario Oliva, aka Zorro, 29, of Plainfield, New Jersey; Roberto Contreras, aka Demonio, 27, of Bound Brook; Julian Moz-Aguilar, aka Humilde and Demente, 28, of Plainfield; Hugo Palencia, aka Taliban, 24, of Plainfield; Jose Garcia, aka Chucky and Diabolico, 24, of Plainfield; Cruz Flores, aka Bruja, 30, of Plainfield; and Esau Ramirez, aka Panda, 25, of Plainfield, were convicted in the U.S. District Court for the District of New Jersey. Reyes-Villatoro, Oliva, Contreras, Moz-Aguilar, Palencia, Ramirez and Garcia were each convicted of one count of racketeering conspiracy; Reyes-Villatoro, Oliva, Palencia and Moz-Aguilar were each convicted of one count of murder in aid of racketeering, one count of using and carrying a firearm during a crime of violence and causing death through use of a firearm; Contreras was convicted of one count of accessory after the fact to murder in aid of racketeering; Garcia was convicted of one count of murder-for-hire conspiracy, one count of travel in interstate commerce with intent to commit murder and two counts of conspiracy to commit murder in aid of racketeering; Flores was convicted of one count of conspiracy to commit murder in aid of racketeering and one count of murder in aid of racketeering; and Ramirez was convicted of one count of conspiracy to commit murder in aid of racketeering.
Sentencing is scheduled for Sept. 7, 2016, before U.S. District Judge Stanley R. Chesler of the District of New Jersey.
According to evidence presented at trial, MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield. All of the defendants were members of the Plainfield Locos Salvatrucha (PLS) Clique of MS-13, and Reyes-Villatoro, Oliva and Contreras all served as “First Word,” or leader, of the PLS Clique.
According to evidence presented at trial, from at least 2007 through September 2013, MS-13 members from the PLS Clique committed five murders in furtherance of MS-13. On Feb. 9, 2009, Reyes-Villatoro, acting as the leader of the PLS Clique, drove Moz-Aguilar and other MS-13 members through the streets of Plainfield searching for rival gang members, eventually stopping at the Plainfield Train Station. There, Moz-Aguilar used a firearm previously provided by Reyes-Villatoro to murder a victim who was believed to be a member of the Latin Kings, a rival gang. On Feb. 27, 2010, Oliva drove a female member of MS-13 to an empty parking lot in Piscataway, New Jersey, and murdered her because she was suspected of working with law enforcement. Oliva then fled the state of New Jersey with the assistance of Contreras and hid from law enforcement with the MS-13 Pinos Clique in Oxon Hill, Maryland. On Nov. 11, 2010, Palencia drove another MS-13 member to the area around Barack Obama Academy in Plainfield, where they encountered students challenging MS-13. Palencia pulled over, handed a firearm to another MS-13 member and instructed him to shoot at one of the individuals. The MS-13 member shot into the crowd, killing a bystander. On Jan. 10, 2011, Moz-Aguilar, Roberto Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant. Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head. On May 8, 2011, Flores carried out an MS-13 murder on a victim who was caught socializing with 18th Street gang members. Flores and another MS-13 member cut the victim’s throat, beat him with a bat and stabbed him in the back 17 times. An MS-13 member involved in this murder fled New Jersey and was driven to Maryland soon after law enforcement began search for him.
Evidence at trial also showed that Garcia recruited and hired MS-13 members from the Maryland-based Pinos Clique to come to New Jersey and murder a woman in exchange for $40,000. The Pinos Clique members were arrested by authorities as they pulled into Plainfield. After several MS-13 members were arrested in July 2011, Ramirez and Garcia used phones from inside the Union County, New Jersey, Jail to order the murder of three witnesses believed to be cooperating with police and responsible for their arrests. According to evidence presented at trial, members of the PLS Clique were responsible for an attempted murder of suspected Latin King members near a car wash in Plainfield; the attempted murder of suspected Latin King members in January 2009; a machete attack in May 2011 and another in June 2011 on the train tracks passing through Plainfield; an attempted murder shooting in Plainfield in May 2011; and several other additional violent crimes including extortion, robbery and several weapons offenses.
In addition to these convictions, five of the 14 other defendants charged in this investigation have pleaded guilty to their roles in the racketeering conspiracy. One defendant remains a fugitive.
The FBI’s Newark Field Office, U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations and ICE Homeland Security Investigations investigated the case. The Union County Prosecutor’s Office provided substantial assistance in the investigation. The Somerset County, New Jersey, Prosecutor’s Office; Middlesex County, New Jersey, Prosecutor’s Office; U.S. Attorney’s Offices of the Eastern District of Virginia and the District of Maryland; Plainfield Police Department; Union County Police Department; Union County Sheriff’s Office; Elizabeth, New Jersey, Police Department; North Plainfield, New Jersey, Police Department; Union County Department of Corrections; Prince George’s County, Maryland, Police Department; and the U.S. Marshals Service also provided assistance in this matter. Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys James Donnelly and Jamari Buxton of the District of New Jersey prosecuted this case.
District Court Enters Permanent Injunction Against Kansas Food Manufacturer and Company’s Managers to Stop Distribution of Adulterated Food ProductsRead the Press Release
The U.S. District Court for the District of Kansas entered a consent decree of permanent injunction against Native American Enterprises LLC (NAE), of Wichita, Kansas; its vice president and part-owner, William N. McGreevy; and its production manager, Robert C. Conner, to stop the distribution of adulterated food, the Department of Justice announced today.
The department filed a complaint in the District of Kansas on March 21, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, NAE manufactures and distributes ready-to-eat (RTE) refried beans and sauces. The complaint alleged that the company’s RTE refried beans and sauces are adulterated in that they have been prepared, packed and/or held under insanitary conditions whereby the food may have become contaminated with filth or have been rendered injurious to health. According to the complaint, the insanitary conditions include the presence of Listeria Monocytogenes (L. mono) in NAE’s facility and insanitary employee practices.
“Listeria Monocytogenes is a very dangerous bacteria, and its presence in a food production facility is of great concern,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “The Department of Justice will continue to work aggressively with the FDA to ensure a safe food supply.”
On May 27, the parties filed a consent decree of permanent injunction, by which the defendants agreed to resolve the litigation. The consent decree of permanent injunction, entered by the district court, requires the defendants to cease all manufacture or distribution of food (including RTE refried beans and sauces) other than meat products. Meat products are regulated separately by the U.S. Department of Agriculture (USDA). In the event that defendants intend to resume the manufacture or distribution of food other than meat products, they will only be allowed to do so with FDA approval and under strict supervision. The defendants will also be required to destroy, under FDA’s supervision, any such products already in existence.
With respect to meat products, USDA’s Food Safety Inspection Service (FSIS) conducts daily on-site operations inspections at all firms manufacturing USDA FSIS regulated products pursuant to the Federal Meat Inspection Act, the Poultry Products Inspection Act and the Egg Products Inspection Act.
According to the complaint filed in this matter, FDA inspected NAE’s facility, located at 230 N. West Street in Wichita, in August 2015, collected environmental samples, and observed numerous insanitary practices, including the defendants’ failure to manufacture and package food under conditions necessary to minimize microorganism growth, take necessary precautions to protect against contamination and maintain buildings in good repair. Specifically, according to the complaint, FDA observed rain water leaking through the roof in the packaging room, directly above where NAE employees packaged RTE refried beans. In addition, FDA observed cracks and holes in the walls and floor junctures that allow water and debris to collect, prohibit adequate cleaning and could harbor Listeria, according to the complaint.
FDA inspected NAE’s facility twice in 2014. As alleged in the complaint, FDA collected environmental samples during RTE refried beans production during each of the 2014 inspections and found Listeria in the facility. In addition, as alleged in the complaint, FDA also observed a failure to maintain equipment in an acceptable condition through appropriate cleaning and sanitizing.
As alleged in the complaint, L. mono thrives in moist environments, such as food-manufacturing environments. Unless proper precautions are taken, L. mono may become established and grow and it is difficult to eliminate once it becomes established in a food-manufacturing environment. It is capable of surviving and growing at refrigerated temperatures and in high-salt environments. The complaint alleges that L. mono is a significant public health risk in RTE refried beans and sauces.
The government is represented by Trial Attorney Heide L. Herrmann of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Emily Metzger of the U.S. Attorney’s Office for the District of Kansas, with the assistance of Associate Chief Counsel for Enforcement Sonia W. Nath of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Kansas, visit its website at https://www.justice.gov/usao-ks.
District Count Enters Permanent Injunction Against Kansas Food ManufacturerRead the Press Release
WASHINGTON – The U.S. District Court for the District of Kansas entered a consent decree of permanent injunction against Native American Enterprises LLC (NAE), of Wichita, Kansas; its vice president and part-owner, William N. McGreevy; and its production manager, Robert C. Conner, to stop the distribution of adulterated food, the Department of Justice announced today.
The department filed a complaint in the District of Kansas on March 21, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, NAE manufactures and distributes ready-to-eat (RTE) refried beans and sauces. The complaint alleged that the company’s RTE refried beans and sauces are adulterated in that they have been prepared, packed and/or held under insanitary conditions whereby the food may have become contaminated with filth or have been rendered injurious to health. According to the complaint, the insanitary conditions include the presence of Listeria Monocytogene (L. mono) in NAE’s facility and insanitary employee practices.
“Listeria Monocytogenes is a very dangerous bacteria, and its presence in a food production facility is of great concern,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “The Department of Justice will continue to work aggressively with the FDA to ensure a safe food supply.”
On May 27, the parties filed a consent decree of permanent injunction, by which the defendants agreed to resolve the litigation. The consent decree of permanent injunction, entered by the district court, requires the defendants to cease all manufacture or distribution of food (including RTE refried beans and sauces) other than meat products. Meat products are regulated separately by the U.S. Department of Agriculture (USDA). In the event that defendants intend to resume the manufacture or distribution of food other than meat products, they will only be allowed to do so with FDA approval and under strict supervision. The defendants will also be required to destroy, under FDA’s supervision, any such products already in existence.
With respect to meat products, USDA’s Food Safety Inspection Service (FSIS) conducts daily on-site operations inspections at all firms manufacturing USDA FSIS regulated products pursuant to the Federal Meat Inspection Act, the Poultry Products Inspection Act and the Egg Products Inspection Act.
According to the complaint filed in this matter, FDA inspected NAE’s facility, located at 230 N. West Street in Wichita, in August 2015, collected environmental samples, and observed numerous insanitary practices, including the defendants’ failure to manufacture and package food under conditions necessary to minimize microorganism growth, take necessary precautions to protect against contamination and maintain buildings in good repair. Specifically, according to the complaint, FDA observed rain water leaking through the roof in the packaging room, directly above where NAE employees packaged RTE refried beans. In addition, FDA observed cracks and holes in the walls and floor junctures that allow water and debris to collect, prohibit adequate cleaning and could harbor Listeria, according to the complaint.
FDA inspected NAE’s facility twice in 2014. As alleged in the complaint, FDA collected environmental samples during RTE refried beans production during each of the 2014 inspections and found Listeria in the facility. In addition, as alleged in the complaint, FDA also observed a failure to maintain equipment in an acceptable condition through appropriate cleaning and sanitizing.
As alleged in the complaint, L. mono thrives in moist environments, such as food-manufacturing environments. Unless proper precautions are taken, L. mono may become established and grow and it is difficult to eliminate once it becomes established in a food-manufacturing environment. It is capable of surviving and growing at refrigerated temperatures and in high-salt environments. The complaint alleges that L. mono is a significant public health risk in RTE refried beans and sauces.
The government is represented by Trial Attorney Heide L. Herrmann of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Emily Metzger of the U.S. Attorney’s Office for the District of Kansas, with the assistance of Associate Chief Counsel for Enforcement Sonia W. Nath of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Kansas, visit its website at https://www.justice.gov/usao-ks.
Department of Justice Recognizes District of Massachusetts Employees for Superior PerformanceRead the Press Release
BOSTON – Four members of the U.S. Attorney’s Office were recognized today by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd Annual Director’s Awards Ceremony in Washington D.C.
Assistant United States Attorneys Fred Wyshak and Karen Bell, former AUSA Robert Fisher, and Asset Forfeiture Paralegal Specialist Lisa Talbot were among the 160 members of the Department of Justice recognized during a ceremony at the Robert F. Kennedy Department of Justice Building.
In her remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“Each and every day, the employees of the U.S. Attorney’s Office demonstrate exceptional dedication to advancing the cause of justice,” said United States Attorney Carmen M. Ortiz. “Their work is not solely motivated by winning cases, but by protecting our fellow citizens from crime and upholding the rule of law. I am honored to work alongside these committed public servants whose collective accomplishments are nothing short of exceptional.”
In the category of Superior Performance by a Litigative Team, Fred Wyshak, Karen Bell and Robert Fisher were recognized for the exceptional investigation and prosecution of the Commissioner of the Massachusetts Department of Probation, John O’Brien, and his two deputies, Elizabeth Tavares and William Burke.
After a 30 month investigation and 12 week trial, in which 75 witnesses testified, including numerous state court judges and members of the state legislature, the three defendants were convicted of racketeering, mail fraud and gratuity charges. The investigation and trial revealed that almost every Massachusetts Probation Department hire and promotion was predicated on political sponsorship rather than merit. In return, the defendants benefited from political favors, including insulating their agency from budget cuts and increasing their political clout. The trial and convictions in this case illustrated how federal efforts to combat political corruption can have a substantive impact on the manner in which state government functions.
Lisa Talbot received the Superior Performance in Litigative Support Role. Ms. Talbot has been a paralegal with the Asset Forfeiture Unit of the U.S. Attorney’s Office for 16 years, and has developed an encyclopedic knowledge of asset forfeiture law and procedure over that period of time. She has handled some of the District’s highest-profile cases, including Boston Marathon Bomber Dzhokhar Tsarnaev, organized crime boss James “Whitey” Bulger, and former Speaker of the Massachusetts House of Representatives Sal DiMasi. She also has handled numerous international forfeiture cases, communicating with foreign law enforcement officials and coordinating complex legal requirements. Ms. Talbot’s work ethic, professionalism, dedication and leadership are extraordinary.
EOUSA Director Wilkinson said, “We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Convicted Felon Sentenced to 60 Months Prison for Drug and Gun CrimeRead the Press Release
BOISE – Shaun McNabb, 35, of Boise, Idaho, was sentenced today to 60 months in prison for possession of a controlled substance with intent to distribute and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered McNabb to serve three years of supervised release following his release from prison. McNabb was convicted by a federal jury on March 11, 2016.
According to the evidence presented at trial, in the early morning hours of December 25, 2014, Boise Police officers observed McNabb driving in Boise. Officers ran the status of the registered owner and determined that McNabb was the registered owner of the vehicle and had a suspended driver’s license. The officers followed McNabb and observed him pull into the parking lot of a closed business and then into the parking lot of a bar. After several minutes, officers observed McNabb’s vehicle drive down the road followed closely by a second vehicle. Officers continued to follow the vehicles and observed that the second vehicle begin to drive erratically and the driver seemed to be trying to draw the officers’ attention away from McNabb. Officers ultimately initiated a traffic stop at a gas station on McNabb’s vehicle after observing a turn signal violation. McNabb parked in the parking lot of a gas station and before the officers could exit their patrol vehicles, McNabb had already exited and locked his vehicle, and refused an officer’s repeated commands to get back into it. McNabb was placed under arrest for driving without privileges and resisting and obstructing officers. Because of McNabb’s behavior and driving pattern, a drug dog was called to the scene to perform an exterior sniff of the vehicle. The dog later gave a positive alert for the presence of drugs within the vehicle. The vehicle was searched and officers located a grey backpack in the trunk. Inside the backpack officers found a 45 caliber handgun, a magazine containing ten 45 caliber rounds, one loose 45 caliber round, a digital scale, and two large vacuum sealed bags containing more than one pound of marijuana. McNabb had previously been convicted of a felony and therefore was prohibited from possessing firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Boise Police Department.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership 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.
Citizen of Mexico Enters Guilty Plea for Illegal Re–Entry into the United States After Having Been Previously DeportedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jenaro Moctezuma-Galicia, age 30, a citizen of Mexico, pleaded guilty today before Senior United States District Judge A. Richard Caputo in Wilkes-Barre to the charge of illegally re-entering the United States after having been previously deported.
According to United States Attorney Peter Smith, Moctezuma-Galicia was indicted by a grand jury in April 2016 and was charged with illegal re-entry into the United States after having previously been removed from the United States.
The investigation was conducted by the U.S. Immigration and Customs Enforcement (ICE) and Removal Operations (ERO).
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara
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.
In this case, the maximum penalty which can be imposed under federal law is two years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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California Mortgage Broker Pleads Guilty to Mortgage Fraud Conspiracy ChargesRead the Press Release
Tampa, Florida - United States Attorney A. Lee Bentley, III announces that Jason Martin (36, Orange County, CA) yesterday pleaded guilty to mortgage fraud conspiracy involving bank and wire fraud. He faces a maximum penalty of 30 years’ imprisonment. A sentencing date has not yet been set.
According to court documents, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County, Florida. The new owners then engaged in a plan to convert the complex from rental apartments to condominium units. The co-conspirators engaged in a scheme to defraud mortgage lenders by developing a set of incentives, such as rental supplements, payment of homeowner’s association fees, and kickbacks to the buyers after closing. These buyer incentives were deliberately hidden from the lenders.
Martin’s role in the conspiracy, as a mortgage broker, involved originating mortgages through Envision Lending and Set 2 Go Loans. The loan applications submitted by Martin contained material misrepresentations, including false occupancy and inflated borrower income and asset information. These loan applications were submitted to FDIC insured institutions and other mortgage lenders. Additionally, through his company HUMAR Investments, Martin and his co-conspirator provided borrowers with cash to close without disclosing the payments to the lenders.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.
CEO of Mortgage Brokerage Engaged in Equity-Skimming Scheme Sentenced to Nearly Eight Years in Federal PrisonRead the Press Release
LOS ANGELES – The chief executive officer and owner of a Westwood-based mortgage brokerage company that falsely promised to help distressed homeowners avoid foreclosure – but instead stole the equity in the homes and served as the homeowners’ impostor landlord – was sentenced this afternoon to 94 months in federal prison.
David Singui, 52, of Inglewood, the former CEO of Direct Money Source (DMS), was sentenced after pleading guilty to conspiracy, loan fraud, aggravated identity theft and tax evasion charges.
United States District Judge Christina A. Snyder sentenced Singui and ordered him to pay just over $4 million in restitution.
The scheme related to DMS caused distressed homeowners to lose more than $4 million and lending institutions to suffer losses of more than $11 million. Homeowners suffered losses when they were induced to sell their homes to straw borrowers sponsored by DMS, which was supposedly going to hold these properties for one year while the distressed homeowners repaired their credit and would then be in a position to repurchase these properties from the straw borrowers. In fact, DMS and Singui took permanent title to these properties and misappropriated the distressed homeowners’ equity, while DMS and Singui ended up serving as the landlord of these distressed properties and collected rent from the homeowners for over five years.
Previously in this case, Aziz Meghji, 37, of Los Angeles, who was the second-in-charge at DMS, was sentenced to four years in federal prison.
“Mortgage rescue schemes cause significant harm to distressed homeowners, as well as to financial institutions that are often defrauded in the scams,” said United States Attorney Eileen M. Decker. “These schemes target vulnerable victims who are already in financial jeopardy and make their plights even worse. Some of the victims in this case were left homeless by the financial predators who targeted them, including Singui.”
DMS offered a “Fresh Start Program” that purportedly could assist distressed homeowners avoid foreclosure by arranging to have their homes purchased by so called “credit investors,” who would hold the properties for a year and then sell them back to the original homeowners after they restored their credit ratings. In reality, DMS was an equity-skimming operation that took possession of distressed homeowner’s equity under fraudulent pretenses.
As part of the scheme, DMS told distressed homeowners that it would provide “credit investors” who would provisionally purchase the properties for one year, thereby allowing the homeowners to avoid foreclosure. During the one-year period, the distressed homeowners could remain in their homes and repair their credit. At the end of the 12-month period, the homeowners were promised that they could repurchase their homes at a lower interest rate.
The distressed homeowners were told that DMS would draw down on the equity in their homes and use the revenues to make monthly mortgage payments during the one-year period.
DMS took title to about 50 distressed properties and misappropriated the existing equity in the homes. The “credit investors” were nothing more than “straw borrowers” whose names were used to access the equity in the homes. DMS and its principals falsified the employment, bank account and income information of the straw borrowers on the loan applications.
At the conclusion of these transactions, DMS usually ended up with approximately $100,000 equity per transaction, plus around $35,000 in fees and commissions associated with each loan. In the meantime, each of the straw borrowers ended up owing approximately $300,000 or more on loans that went into default because DMS did not make the mortgage payments as promised. This led to banks suffering more than $11 million in losses and the homeowners suffering losses of over $4 million as a result of the theft of the equity in their homes.
“The defendant preyed on struggling and trusting homeowners, literally stealing the American Dream out from under them, with no remorse,” said IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “Today’s sentencing exemplifies the continued effort by federal law enforcement to investigate and prosecute those who commit mortgage fraud. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”
This case was the result of a joint investigation by the Federal Bureau of Investigation, the United States Postal Service and IRS Criminal Investigation.
Buffalo Man Sentenced for Production of Child Pornography and CyberstalkingRead 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 Sherrod Ogletree, 20, of Buffalo, NY, pleaded guilty to cyberstalking and production of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.
“This is yet another case highlighting the dangers facing our children on the internet,” said U.S. Attorney Hochul. “While we will continue to prosecute those who would prey upon our most vulnerable citizens, education and parental involvement are the best defense against on-line predators. In particular, parents and adults should know how to all computer and technology-related activities of their children.”
"The sexual exploitation of a child is among the most deplorable crimes our HSI special agents investigate, which is why we are committed to bringing traffickers to justice and getting survivors the help they need," said James C. Spero, Special Agent in Charge of HSI Buffalo. "This investigation and today’s guilty plea are the result of the great partnership HSI has with the Erie County Sheriff’s Office and the Buffalo Police Department, who both share our resolve to ending trafficking in our region.”
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that on August 5, 2015, the defendant began communicating with a 15-year-old female via Facebook. During the communications, Ogletree directed and coerced the minor to send him nude pictures, including pictures of her genitalia, over the internet.
In addition, between August 5, 2016 and August 20, 2016, the defendant was in contact with another 15 year old female, again using Facebook. Ogletree engaged in conversations with the victim and concealed his true identity from her by using a fake identity and using an account in the name of “Mrss Guwop.” During these conversations, the defendant sought to entice the victim to work as a prostitute. When the child told Ogletree that she did not want to work as a prostitute, the defendant harassed and threatened the victim. One of the threats stated that if the child refused to do as Ogletree commanded, he would post screenshots of the prior conversations where the defendant and victim discussed prostitution. Ogletree also threatened to “tag” all of her family and friends so that they would see the conversations. This cyberstalking caused the victim to suffer substantial emotional distress.
The plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for September 16, 2016 at 1:00 p.m. before Judge Arcara.
Bucks County Man Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Brian Randall, 65, of Levittown, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received Social Security benefits intended for his mother, after his mother’s death in February 1988 until October 2015. The defendant’s alleged actions resulted in a loss to the government of approximately $295,223.
If convicted, the defendant faces a maximum penalty of 10 years in prison, a three‑year period of supervised release, restitution to the government of $295,223, a possible fine, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bowman Men Plead Guilty to Importing "Molly" from ChinaRead the Press Release
Contact Person: Jane Taylor (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Bradley Lewis Felder, 27, and Everette “Rhett” Carter Berry, 28, have entered guilty pleas in federal court in Columbia, admitting to their involvement in a Conspiracy to Possess with Intent to Distribute and to Distribute a Quantity of 3,4-Methylenedioxyethylcathinone Hydrochloride (commonly known as "Molly") and 50 kilograms of more of Marijuana, a violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C) and 846. United States District Judge Terry L. Wooten of Columbia accepted the guilty pleas and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that, in the summer of 2013, agents from the Drug Enforcement Administration began investigating Bradley FELDER, Rhett BERRY, and others, who were involved in the importation and distribution of both high-grade marijuana and “molly” in and around Richland and Lexington Counties. As the investigation progressed, agents learned that FELDER was importing high-grade marijuana from northern California, and “molly” from an unknown source of supply in China. Agents discovered that FELDER rented various houses and apartments in and around Richland and Lexington Counties for the primary purpose of using the addresses to receive shipments of “molly.” FELDER paid friends, including BERRY, to accept the delivery of the drug packages; sometimes he paid in cash, other times he paid with marijuana.
During the investigation that led to the arrests, agents intercepted approximately 9 packages of molly, each containing kilogram quantities, being shipped to South Carolina from China. Additionally, prior to the arrests, agents seized approximately $150,000 in cash from FELDER. FELDER was arrested on August 31, 2015, in the parking garage of the Gates of Williams Brice apartments. Following FELDER’S arrest, agents seized an additional $1,481.90 cash, a loaded .45 caliber pistol, and two watches valued at approximately $64,000.00 and $46,356.00. Agents also seized several cell phones from FELDER; one of those phones held photographs of huge amounts of money. One picture, taken in FELDER’s apartment a month prior to his arrest, showed money stacked on the kitchen counter. The money had been heat-sealed in plastic, and stacked in large bundles. Another photograph showed a small closet and on the shelves of the closet were large Tupperware-like containers full of cash.
Agents confronted FELDER about the money that was pictured on his phone. On February 2, 2016, FELDER led agents to a location where he had buried a large bag of money on his family’s farm in Bowman, SC. Agents seized the bag which contained $1,768,031 dollars.
Mr. Nettles stated that the maximum penalty these defendants face is imprisonment for 20 years and/or a fine of $1,000,000.
The case was investigated by agents of the Midlands HIDTA Task Force, comprised of agents from South Carolina Law Enforcement Division (SLED), the Kershaw County Sheriff’s Office, the Orangeburg County Sheriff’s Office, Orangeburg Public Safety, the Columbia Police Department, the 5th Circuit Solicitor’s Office, the Richland County Sheriff’s Office and the Lexington County Sheriff’s Office, and with assistance from the United States Postal Service and Homeland Security Investigations. Assistant United States Attorney Jane B. Taylor of the Columbia office is prosecuting the case.
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Bogalusa Man Pleads Guilty to Cocaine Conspiracy and Gun ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTOPHER TAYLOR, age 35, of Bogalusa, pled guilty today to three counts of a superseding Bill of Information, in which he was charged with conspiracy to possess with intent to distribute five kilograms or more of cocaine hydrochloride, possession with intent to distribute a quantity of cocaine base (“crack”), and felon in possession of a firearm.
According to court documents, beginning on a date unknown and continuing to the present, TAYLOR did knowingly and intentionally combine, conspire, confederate and agree with other persons to possess with the intent to distribute five kilograms or more of cocaine hydrochloride. A lawful search of TAYLOR’s home, found him to be in possession of a quantity of crack cocaine and a stolen Beretta, Model 96, .40 caliber semi-automatic pistol. TAYLOR has a prior felony conviction and is prohibited from possessing a firearm by both state and federal law.
If convicted of the conspiracy to possess with intent to distribute cocaine hydrochloride charge, TAYLOR faces a minimum term of ten years imprisonment, a maximum of life imprisonment, and a fine of $10,000,000. The possession with intent to distribute count carries a maximum term of twenty years imprisonment and a fine of $1,000,000, and the felon in possession count carries a maximum term of ten years imprisonment and a fine of $250,000. U.S. District Judge Ivan L.R. Lemelle set sentencing for September 7, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant U.S. Attorney Andre’ Jones is in charge of the prosecution.
Bald Head Island Attorney and Real Estate Developer Pleads Guilty to Bank FraudRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today in federal court, JOSEPH HAL KINLAW, JR., 63, of Bald Head Island, North Carolina, pled guilty to Bank Fraud.
Based upon the Criminal Information and evidence offered at the time of KINLAW’s guilty plea, KINLAW was a licensed North Carolina attorney who operated various alleged real estate investment and development entities on behalf of investors. KINLAW used the entities to obtain real estate development loans from Branch Banking and Trust (BB&T), and First Citizens Bank. BB&T and First Citizens Bank extended loans to these entities under the auspices that the entities would be engaged in the development of residential real estate in various subdivisions in the area of Camp Lejeune in Onslow County.
Between January of 2011 and April of 2013, KINLAW used the real estate development entities to defraud BB&T and First Citizens Bank by falsifying the legal descriptions of the loan collateral, and by falsifying releases of the collateral. By drafting a false legal description of the property, KINLAW was able to use the collateral for other real estate investment activities and loans. By fraudulently releasing the banks’ collateral before the banks’ loans had been satisfied, KINLAW was able, in several instances, to convey the collateral to third parties for value and continue the scheme.
To perpetuate the scheme and prevent its discovery, KINLAW also used outside funds, that is, funds unrelated to the real estate development activity that was the subject of each loan, to make ongoing loan interest payments to BB&T and First Citizens Bank. In some instances, KINLAW used loan proceeds on one transaction to make loan interest payments on another transaction. In other instances, KINLAW fraudulently extracted funds from other investors and their business interests to make payments on the loans.
Ultimately, banks stopped loaning money to KINLAW and his related companies and investors. As a result, the existing loans went into default. Because KINLAW had substituted false legal descriptions of bank collateral, and fraudulently conveyed bank collateral, BB&T and First Citizens Bank were unable to capture their loan losses in foreclosure. Various title insurance companies and investors also lost substantial funds due to the scheme. While the exact amount of the loss remains the subject of investigation, losses are presently anticipated to exceed $18 Million.
At sentencing, KINLAW faces up to 30 years in prison and 5 years of supervise release. The defendant also faces a fine of up to $1 Million, and an order of restitution to victims.
The investigation of this case was conducted by the Federal Bureau of Investigation, with assistance of the United States Postal Inspection Service. Assistant United States Attorney William M. Gilmore of the Economic Crimes Section represents the United States.
BISD Employee Pleads Guilty to Theft of More Than $300,000 in Cafeteria FundsRead the Press Release
BROWNSVILLE, Texas – An accounting clerk in the Food and Nutrition Services Division of the Brownsville Independent School District (BISD) has admitted to stealing cash proceeds from concessions sales at four schools for nearly six years, announced U.S. Attorney Kenneth Magidson. Leticia Arreola, 38, of Los Fresnos, entered a guilty plea this morning a one-count criminal information to theft concerning programs receiving federal funds.
From at least 2010 until January 2016, Arreola used her position to embezzle approximately $332,571.46. The embezzled money represented cash proceeds from the concessions sales at Faulk Elementary, Brownsville Early College High School (BECHS), Brownsville Learning Academy (BLA) and the Brownsville Academic Center (BAC).
BISD utilizes substantial federal funding each year to help provide cafeteria lunches for its’ students. This funding is well in excess of $10,000 yearly. Besides providing cafeteria lunches, BISD also receives cash payments from students for concession style food, such as ice cream and cookies.
Schools that perform concession services are required to send their cash proceeds to the BISD affiliated bank for proper accounting and deposit. The cash deposits are supposed to be placed in a deposit bag and then delivered on a daily or weekly basis via armored car to the BISD affiliated bank. At times, however, schools would miss their scheduled time to provide the deposits to the armored car. In those instances, the deposit bags were delivered to Arreola who would then steal the money for her own purposes.
Eventually, Arreola was able to arrange for cash deposits from Faulk, BECHS, BLA and the BAC to be delivered directly to her. When money came in from these schools, she would simply take the money out of the deposit bags and place them in her purse until she left at the end of her work-day. Ultimately, Arreola was asked to provide documentation about the receipt of money from these schools over time and she was unable to do so.
A review of the Arreola’s bank records from 2010 to 2016 demonstrated the extent of the embezzling scheme. While her legitimate salary with BISD was approximately $20,000 annually, records reflect that she embezzled more than $48,000 in 2010, $46,538 in 2011, $35,561 in 2012, more than $63,000 in both 2013 and 2014, another $71,532 in 2015 and a final $4,712 in 2016.
Arreola would spend proceeds from the $332,571.46 she stole on living expenses, vacations, entertainment and shopping.
Sentencing has been set for Aug. 31, 2016. At that time, she faces up to 10 years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
The BISD Police Department and the FBI investigated with assistance from the Cameron County District Attorney’s Office and cooperation of BISD. Assistant U.S. Attorneys Jody Young and Israel Cano are prosecuting the case.
Assistant United States Attorney Amit Agarwal from the Southern District of Florida Honored by Department of Justice During Director's Awards CeremonyRead the Press Release
Appellate Division Deputy Chief Amit Agarwal of the U.S. Attorney’s Office in the Southern District of Florida was one of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.
The Southern District of Florida was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
Mr. Agarwal was honored today for his superior performance as an Assistant United States Attorney in the Appellate Division. He was recognized for leading the government’s efforts in response to the adverse decision in United States v. Davis, a case of national importance dealing with the scope of Fourth Amendment protections for historical cell-site records. Through his Herculean efforts, Mr. Agarwal convinced the 11th Circuit to set the case for en banc review and set forth the government’s position in a well-researched en banc brief. He also argued the case to the en banc court, which resulted in a published decision favorable to the government.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, stated, “Amit Agarwal exhibits the kind of intellectualism, professionalism, mentorship and enthusiasm that is worthy of special recognition. He is a legal scholar whose tireless dedication to public service has enhanced the communities in which he has built his professional career.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
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.
Assistant U.S. Attorney Honored by Department of Justice at Awards CeremonyRead the Press Release
PHILADELPHIA – Assistant U.S. Attorney Robert J. Livermore, of the U.S. Attorney’s Office in the Eastern District of Pennsylvania, was one of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C. The award is being announced by United States Attorney Zane David Memeger.
Livermore was recognized for his outstanding work in prosecuting one of the largest labor racketeering cases in the Eastern District of Pennsylvania. In 2015, a jury convicted Joseph Dougherty, former Business Manager of Ironworkers Local 401, of leading a RICO conspiracy that involved more than a dozen union members. In a systematic pattern of extortion, arson, and assault designed to force non-union companies to hire union Ironworkers, Dougherty and union members committed 25 racketeering acts, including arsons at major construction sites in and around Philadelphia. Dougherty was sentenced to 230 months in prison for his leadership role in the racketeering conspiracy. Eleven members of Local 401 pled guilty before trial. The work of Mr. Livermore sent a strong message in the Philadelphia area that corrupt union practices, violence, and threats of violence in labor activities will be met with severe punishment.
“This office is fortunate to have a rich pool of talented prosecutors and staff members who are dedicated to public service,” said Memeger. “Rob’s hard work and determination in this complex racketeering case exemplifies the commitment that members of my office have towards the pursuit of justice. Rob's efforts resulted in the dismantling of a dangerous conspiracy and long prison terms for the individuals who had resorted to extortion and violence as a way of doing business.”
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
The Eastern District of Pennsylvania was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Assistant U.S. Attorney Byron Chatfield Honored by Department of Justice at Executive Office for United States Attorneys Director's Awards CeremonyRead the Press Release
WASHINGTON – Assistant U.S. Attorney Byron Chatfield of the U.S. Attorney’s Office in the District of Oregon was one of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.
The District of Oregon was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
Chatfield was nominated for and received the Director’s Award for Superior Performance as an Assistant United States Attorney (Criminal) for his work in the prosecution of Carson Helicopter, Inc. executives, Steven Metheny and Levi Phillips, and their conspiracy to commit mail and wire fraud and making false statements in defrauding the United States Forest Service. Following a firefighting helicopter crash that caused the deaths of nine people, and severely injured four others, Chatfield led the team who discovered a complex trail of lies made by Metheny and Phillips. His persistence revealed that the defendants submitted helicopter contract bids to the Forest Service with falsified weight and balance charts and that they altered Federal Aviation Administration (FAA) performance charts. These charts were used by the Forest Service in determining whether Carson’s helicopters met minimum contract payload specifications. Contracts in the amount of $51 million were awarded to Carson due to the falsified documents, and it received nearly $19 million dollars before the Forest Service discovered the fraud and cancelled Carson’s contracts.
“Byron Chatfield’s work on this extraordinarily difficult case was exemplary,” said U.S. Attorney Billy J. Williams. “He and the team of investigators spent countless hours unraveling the fraud and tackled challenge after challenge in a scheme extremely complex and masterfully concocted. But because of Byron’s strong belief in justice and his determination to hold the two corportate executives personally responsible for their deceit, the victims' families of this tragedy gained a measure of crucial closure. We as an organization are extremely proud of Byron as a member of the U.S. Attorney family. We salute his courage, dedication, and determination to see that justice is done on a daily basis.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
From left: U.S. Attorney Billy J. Williams and Assistant U.S. Attorney Byron Chatfield
Albuquerque Man Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Albuquerque, N.M., resident Alexander Balding, 20, was arraigned this morning in federal court on a two-count indictment charging him with distribution and possession of visual depictions of minors engaged in sexually explicit conduct. During this morning’s proceedings, Balding entered a not guilty plea to the indictment. Balding remains in federal custody pending trial.
The federal indictment, filed on May 24, 2016, charges Balding with distributing child pornography in April 2016 and possessing child pornography for an unknown period of time that ended on April 27, 2016. The indictment alleges that Balding committed the crimes in Bernalillo County, N.M.
Balding was arrested on May 4, 2016, on a criminal complaint alleging that he distributed and possessed child pornography in April 2016, in Bernalillo County. According to the criminal complaint, the investigation into Balding began on April 6, 2016, when the FBI received a report from the Bernalillo County Sheriff’s Office (BCSO) identifying an IP address that was being used to share child pornography files. The criminal complaint alleges that on April 27, 2016, investigators were able to download a number of child pornography files from the computer at the IP address.
The complaint alleges that investigation revealed that the IP address was subscribed to a person residing in Balding’s home and the files containing child pornography were allegedly downloaded exclusively by Balding. On April 27, 2016, a search warrant was executed at Balding’s residence, and law enforcement officers seized a computer and external hard drive allegedly containing more than 100 files of child pornography. Balding was arrested that day on related state charges, which have since been dismissed in favor of federal prosecution.
If convicted on the distribution of child pornography charge, Balding faces a mandatory minimum of five years and a maximum of 20 years in prison. If convicted on the possession charge, he faces a maximum of 20 years in prison. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the BCSO and the Albuquerque office of the FBI. Assistant U.S. Attorney Jonathon M. Gerson is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama drug dealer sentenced to Federal prison for firearms offenseRead the Press Release
CHARLESTON, W.Va. – An Alabama man who possessed marijuana, cocaine, methamphetamine, and firearms at his residence on Charleston’s West Side was sentenced today to five years in federal prison for possession of firearms in furtherance of a drug trafficking offense, announced Acting United States Attorney Carol Casto. Michael Anthony Williams, 32, previously pleaded guilty in September 2015.
On March 7, 2014, drug task force officers executed a search warrant at the residence of Williams and Atesha Smith, located on 4th Avenue in Charleston. Among other items, police seized 10 firearms, including pistols, assault rifles, and a sawed-off shotgun; more than 500 grams of 97% pure methamphetamine; a large quantity of marijuana and oxycodone; over $73,000 in cash; and scales, packaging materials, and a money counter. Smith’s mobile telephone contained a text message with a U.S. Postal Service tracking number assigned to a package to be delivered to the address. A U.S. Postal Inspector intercepted the package and searched it on March 11, 2014. Among other items, the package contained over 500 grams of cocaine. Smith pleaded guilty in September to possession with intent to distribute marijuana and is scheduled to be sentenced on June 6, 2016.
The case was investigated by the United Postal Inspection Service and the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Akron man indicted for distributing fentanyl that caused fatal overdose last yearRead the Press Release
An Akron man was indicted on federal charges for distributing fentanyl that caused the death of a person in last fall, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Jurmaine A. Jeffries, 27, was named in the two-count indictment. He is charged with distribution of fentanyl and possession with intent to distribute fentanyl. The indictment also seeks a sentencing enhancement because the fentanyl Jeffries sold resulted in the death on Sept. 16, 2015, of a person identified as J.H. in Akron, according to the indictment.
"We will continue to work to educate the public on the dangers of opioids and get help for those who want it," Rendon said. "We will also aggressively prosecute those who sell heroin and fentanyl, which have caused so much pain and death in our community."
This case is being prosecuted by Assistant U.S. Attorney Linda K. Barr following an investigation by the Drug Enforcement Administration and Akron Police Department.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the Defendant’s role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Abingdon Woman Sentenced for Failing to Report for Prison SentenceRead the Press Release
ABINGDON, VIRGINIA – An Abingdon woman, who was previously convicted on methamphetamine distribution charges, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon after she failed to report prison as directed by the United States Bureau of Prison, United States Attorney John P. Fishwick Jr. announced.
Gina Renee Lopez-Orfield, 49, of Abingdon, Virginia, who previously pled guilty to one count of failure to surrender for service of sentence, was sentenced yesterday in District Court to 14 months in federal prison to run consecutive to her previously ordered 78-month period of incarceration.
“Our system of justice runs on the foundation that individuals will follow the instructions given to them by the court,” United States Attorney John P. Fishwick Jr. said today. “When individuals fail to listen to the instructions of the court, they will be held accountable and face additional punishment.”
According to evidence presented at previous hearings by Special Assistant United States Attorney Kevin Jayne, Lopez-Orfield was convicted in November 2015 of distributing methamphetamine and released on bond. On February 9, 2016 she was sentenced to a term of 78-months’ imprisonment. On February 11, 2016, the defendant was informed by the Bureau of Prisons and the U.S. Marshals Service that she was to begin serving her sentence on March 29, 2016 at noon at Alderson in West Virginia. Lopez-Orfield failed to report to Alderson as ordered by the Court.
The investigation of the case was conducted by the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Johnson County, Tennessee Sheriff’s Office. Assistant United States Attorney Special Assistant United States Attorney Kevin Jayne prosecuted the case the case for the United States.
10 Eastern District of New York Employees and 3 Federal Agents Honored by Department of Justice at Executive Office for United States Attorneys Director’s Awards CeremonyRead the Press Release
WASHINGTON – Ten Assistant United States Attorneys from the U.S. Attorney’s Office for the Eastern District of New York and three federal agents were among the 160 members of the Department of Justice recognized by Deputy Attorney General Attorney General Sally Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.
The Eastern District of New York was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels, and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ Offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
Executive Assistant United States Attorney Orelia E. Merchant received the award for Superior Performance as an AUSA-Civil for her exemplary performance and leadership in coordinating the handling of over 1,300 cases arising out of Hurricane Sandy, a disaster that affected over 100,000 homeowners in the EDNY in October 2012. Ms. Merchant was instrumental in achieving favorable results for homeowners, while protecting FEMA’s legal, policy, and programmatic interests.
Assistant United States Attorneys Shreve Ariail, Samuel Nitze, and Rena Paul received the award for Superior Performance as an AUSA- Criminal for the prosecution of Ronald Herron. The Gowanus and Wyckoff Gardens neighborhoods in Brooklyn were terrorized for nearly two decades by Herron, a high-ranking member of the “Murderous Mad Dawg” Bloods. During the trial on a 21-count racketeering indictment that included multiple murder charges, Herron and his henchmen threatened witnesses and harassed victim families. Notwithstanding these obstructive efforts, the team obtained convictions on all counts, ridding the district of one of New York’s most dangerous criminals. Herron was sentenced to 12 life terms in prison.
Assistant United States Attorneys Zainab Ahmad and Hilary Jager received the award for Superior Performance as an AUSA - Criminal for the prosecution of al-Qaeda in the Arabian Peninsula (AQAP) operative Lawal Olaniyi Babafemi. Babafemi traveled from Nigeria to Yemen in 2010-2011, where he met with AQAP leaders who trained him in the importance of the English-language media to AQAP and its mission to inspire lone wolf attacks abroad in the name of al-Qaeda. Babafemi was extradited to the United States from Nigeria, pled guilty, and sentenced to 22 years of imprisonment. The case was significant as it related to efforts to prosecute individuals who not only engage in physical violence, but also who create and disseminate violent terrorist propaganda world-wide.
Assistant United States Attorneys James Loonam, Matthew Amatruda, Soumya Dayananda, Rena Paul, Paralegal Specialist Tareva Torres, FBI Special Agent James Glynn, and HSI Special Agents Anthony Salisbury and Mathew Doyle received the award for Superior Performance By A Litigative Team for their performance in the more than ten-year investigation and prosecution of the Cash Money Brothers (CMB), an ultra-violent gang that controlled the Lafayette Gardens housing development in Brooklyn. The investigation culminated in the 2015 trial conviction and life sentence of the leader of CMB, Damion “World” Hardy, and his top enforcer, Aaron Granton, for RICO violations, five murders in-aid-of racketeering, one murder-for-hire, and narcotics trafficking.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ Offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
31 May 2016
Wyoming County, WV man pleads guilty to interstate heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ryan Hayworth, 21, of Mullens, West Virginia, pled guilty to heroin trafficking today in federal court in Clarksburg, United States Attorney William J. Ihlenfeld, II, announced.
Hayworth was among fourteen individuals charged with heroin trafficking when three separate federal indictments disrupted a Michigan to West Virginia heroin trafficking network in February 2016. Specifically, Hayworth sold heroin in March 2015 near West Virginia University in Monongalia County, West Virginia.Hayworth pled guilty today to one count of “Distribution of Heroin within 1,000 feet of a Protected Location – Aiding and Abetting.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Worcester Nurse Indicted on Federal Drug Tampering ChargesRead the Press Release
BOSTON – A Worcester nurse was indicted by a federal grand jury in connection with stealing painkillers from the nursing home where she worked, and then attempting to conceal her crime by replacing the medication with saline.
Lea Roberge, 32, was indicted on two counts of tampering with a consumer product, specifically the Schedule II controlled substance morphine, which is used for pain relief. In November 2015, Roberge was initially charged with the offense in a criminal complaint.
The indictment alleges that on two separate occasions in March 2015, while working as a registered nurse at Holy Trinity Eastern Orthodox Nursing and Rehabilitation Center, Roberge tampered with morphine sulfate contained in emergency narcotic kits. The kits are available for use at the nursing home in case of an emergency when there is not enough time to obtain medication from the pharmacy. Roberge, who had access to these emergency narcotic kits, used a syringe to extract morphine from six vials and one bottle. In an attempt to avoid detection, she replaced the extracted medication with saline, thereby decreasing the potency of the drug.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Russell Hermann, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health, made the announcement today. The case is being prosecuted by Michelle Lauren Dineen Jerrett of Ortiz’s Worcester Branch Office.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Virginia Couple Sentenced to Prison in Tax Fraud SchemeRead the Press Release
Defendants Submitted False Information to the IRS and Social Security Administration
Two Bedford, Virginia, residents were sentenced to prison today for criminal offenses arising out of a four-year scheme to defraud the Internal Revenue Service (IRS) and the Social Security Administration, announced Acting Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney John P. Fishwick Jr. of the Western District of Virginia.
Edgar Foxx, 50, and Contina Foxx, 42, were sentenced to prison terms of 41 months and 30 months, respectively, by U.S. District Judge Norman K. Moon of the Western District of Virginia following their convictions by a Lynchburg, Virginia, jury for criminal tax offenses. Judge Moon also ordered the defendants to pay $147,708 in restitution and serve three years of supervised release following their release from prison.
“Our nation’s tax system relies upon citizens to truthfully, accurately and timely report their income to the IRS,” said Acting Assistant Attorney General Ciraolo. “When people like Mr. Foxx fail to file their income tax returns or file false tax returns and fail to pay the taxes they owe, and when individuals like Mrs. Foxx submit false information to government agencies in order to obtain benefits, they take advantage of, and plane an undue burden on, honest taxpayers who pay their fair share. The Justice Department stands ready to prosecute these offenders and hold them accountable for their crimes.”
“Every year, millions of Americans file their taxes and fulfill their civic obligation,” said U.S. Attorney Fishwick. “They must be able to do this knowing the process is safe and reliable. When individuals fail to pay their obligations the entire system suffers. We are proud to work with the Tax Division on holding accountable those who attempt to defraud the tax system.”
“Federal income tax compliance should be equally shared among all Americans,” said Special Agent in Charge Thomas Jankowski for IRS-Criminal Investigation’s (IRS-CI) Washington DC Field Office. “IRS-CI will continue focusing investigative efforts on individuals who contribute to the tax gap and do not comply with the law. Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
Edgar and Contina Foxx were convicted on Nov. 6, 2015, following a four-day trial before Judge Moon. Edgar Foxx was convicted of filing a false 2008 income tax return, failing to file his 2009 through 2011 tax returns and theft of government money. Contina Foxx was also convicted of theft of government money as well as providing a false statement for health care benefits. According to evidence introduced at trial and witness testimony, the Foxxes, who are married to one another, owned and operated a metal recycling business between 2008 and 2012. They gathered scrap metal materials including junk cars and old appliances and sold them to recycling facilities in Southwest Virginia and Tennessee. During the 2008 through 2011 time period, the Foxxes received over $500,000 in payments from several metal recycling companies, and failed to report any of this income on their 2008 through 2011 individual income tax returns. At the same time, Contina Foxx provided false information to the Social Security Administration by failing to disclose the income earned from the metal recycling business. As a result, the Foxxes unlawfully received approximately $80,000 in Medicaid benefits between 2010 and 2012.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Fishwick commended special agents of IRS-Criminal Investigation, the Office of Inspector General for the Social Security Administration, the Office of Inspector General for the Department of Health and Human Services, the Bedford Department of Social Services and the Bedford County Sheriff’s Office, who investigated the case and Assistant U.S. Attorneys Patrick Hogeboom and Charlene Day of the Western District of Virginia and Trial Attorney Joseph M. Giannullo of the Tax Division, who prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found on the Division’s website.
Virginia Couple Sentenced to Prison in Tax Fraud SchemeRead the Press Release
LYNCHBURG – Two Bedford, Virginia, residents were sentenced to prison today for criminal offenses arising out of a four-year scheme to defraud the Internal Revenue Service (IRS) and the Social Security Administration, announced Acting Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney John P. Fishwick Jr. of the Western District of Virginia.
Edgar Foxx, 50, and Contina Foxx, 42, were sentenced to prison terms of 41 months and 30 months, respectively, by U.S. District Judge Norman K. Moon of the Western District of Virginia following their convictions by a Lynchburg, Virginia, jury for criminal tax offenses. Judge Moon also ordered the defendants to pay $147,708 in restitution and serve three years of supervised release following their release from prison.
“Our nation’s tax system relies upon citizens to truthfully, accurately and timely report their income to the IRS,” said Acting Assistant Attorney General Ciraolo. “When people like Mr. Foxx fail to file their income tax returns or file false tax returns and fail to pay the taxes they owe, and when individuals like Mrs. Foxx submit false information to government agencies in order to obtain benefits, they take advantage of, and plane an undue burden on, honest taxpayers who pay their fair share. The Justice Department stands ready to prosecute these offenders and hold them accountable for their crimes.”
“Every year, millions of Americans file their taxes and fulfill their civic obligation,” said U.S. Attorney Fishwick. “They must be able to do this knowing the process is safe and reliable. When individuals fail to pay their obligations the entire system suffers. We are proud to work with the Tax Division on holding accountable those who attempt to defraud the tax system.”
“Federal income tax compliance should be equally shared among all Americans,” said Special Agent in Charge Thomas Jankowski for IRS-Criminal Investigation’s (IRS-CI) Washington DC Field Office. “IRS-CI will continue focusing investigative efforts on individuals who contribute to the tax gap and do not comply with the law. Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
Edgar and Contina Foxx were convicted on Nov. 6, 2015, following a four-day trial before Judge Moon. Edgar Foxx was convicted of filing a false 2008 income tax return, failing to file his 2009 through 2011 tax returns and theft of government money. Contina Foxx was also convicted of theft of government money as well as providing a false statement for health care benefits. According to evidence introduced at trial and witness testimony, the Foxxes, who are married to one another, owned and operated a metal recycling business between 2008 and 2012. They gathered scrap metal materials including junk cars and old appliances and sold them to recycling facilities in Southwest Virginia and Tennessee. During the 2008 through 2011 time period, the Foxxes received over $500,000 in payments from several metal recycling companies, and failed to report any of this income on their 2008 through 2011 individual income tax returns. At the same time, Contina Foxx provided false information to the Social Security Administration by failing to disclose the income earned from the metal recycling business. As a result, the Foxxes unlawfully received approximately $80,000 in Medicaid benefits between 2010 and 2012.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Giorno commended special agents of IRS-Criminal Investigation, the Office of Inspector General for the Social Security Administration, the Office of Inspector General for the Department of Health and Human Services, the Bedford Department of Social Services and the Bedford County Sheriff’s Office, who investigated the case and Assistant U.S. Attorneys Patrick Hogeboom and Charlene Day of the Western District of Virginia and Trial Attorney Joseph M. Giannullo of the Tax Division, who prosecuted the case.