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31 May 2016
Virginia Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
An Ashland, Virginia, man was sentenced to prison today in the U.S. District Court for the Eastern District of Virginia for failing to collect, account for and pay over employment taxes to the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
Michael Manning, 52, was sentenced to serve 18 months in prison, followed by two years of supervised release. Manning pleaded guilty on Feb. 23, to failing to collect, account for and pay over employment taxes for his masonry contractor construction companies. Manning was ordered to pay restitution to the IRS in the amount of $677,350.39.
“Mr. Manning chose to withhold employment tax from his employees, and use those funds for his personal benefit, inflicting substantial harm on the U.S. Treasury and gaining a competitive advantage over his law-abiding competitors,” said Acting Assistant Attorney General Ciraolo. “The Tax Division has made it clear that employers like Mr. Manning, who willfully fail to collect, account for, and pay over employment taxes to the IRS, are engaged in criminal conduct and will be held accountable. Today’s sentence reflects this priority and the seriousness of such crimes.”
“Investigating employment tax crimes remains one of IRS Criminal Investigation’s (IRS-CI) highest priorities and today’s sentencing of Michael Manning reflects the serious nature of that crime,” said Chief Richard Weber of IRS-CI. “Failure to collect, account for and pay employment taxes is a crime and it hurts not only federal, state, and local governments, but also employees. We expect all taxpayers to follow the law—whether you are a business owner or an individual—we all must play by the same rules.”
According to court documents, Manning was the President of Manning Construction and Manning-Carhen Construction. Manning controlled the businesses’ finances and was responsible for collecting, accounting and paying over employment taxes for both businesses. For the third and fourth quarters of 2014, Manning willfully failed to comply with his legal obligation to pay over more than $700,000 in employment taxes to the IRS. In addition to failing to pay over the withheld taxes, Manning instructed his bookkeeper to create false financial statements for submission to financial institutions in order to comply with existing loan covenants, to encourage banks to lend new funds to the company, or to enable the renewal of existing loans. Manning and his bookkeeper openly referred to these false accounting entries as “Bernie entries,” in reference to the accounting techniques of Bernie Madoff and “ghost entries,” when reallocating negative financial results within the companies’ QuickBooks files so that these negative results would not be discovered by third parties. Moreover, Manning used these same accounting techniques to conceal his use of over $500,000 in corporate funds for various personal expenses, including paying off a lien on his lake property.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente commended special agents of IRS-CI, who investigated the case and Trial Attorney Melanie Smith of the Tax Division and Assistant U.S. Attorney Thomas Garnett of the Eastern District of Virginia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Attorney’s Office Files Lawsuit to Seize Life Insurance Payments of San Bernardino ShooterRead the Press Release
LOS ANGELES – Federal prosecutors today filed a civil asset forfeiture lawsuit and an application that, if approved, would allow the seizure of the proceeds of two life insurance policies worth a total of $275,000 held by San Bernardino shooter Syed Rizwan Farook, announced U.S. Attorney Eileen M. Decker and Assistant Attorney General for National Security John P. Carlin.
Before the December 2, 2015, terrorist attack at the Inland Regional Center, Farook obtained two insurance policies through his employment with San Bernardino County – one for $25,000 in 2012, and another for $250,000 in 2013. This afternoon, the United States Attorney’s Office filed the asset forfeiture lawsuit against the proceeds of the life insurance policies, as well as a request to seize the policies. The “application for arrest in rem” must be approved by a federal judge before the money can be seized by the government.
Under federal law, any assets derived from a crime of terrorism against the United States, its citizens or residents, or their property, are subject to forfeiture by the government.
“Terrorists must not be permitted to provide for their designated beneficiaries through their crimes,” said United States Attorney Eileen M. Decker. “My office intends to explore every legal option available to us to ensure these funds are made available to the victims of this horrific crime. We will continue to use every tool available to seek justice on behalf of the victims of the San Bernardino terrorist attacks.”
The continuing investigation into the San Bernardino terrorist attacks is being conducted by the Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes partners with the San Bernardino Police Department, the San Bernardino County Sheriff’s Department, the Riverside County Sheriff’s Department, the Ontario Police Department, the Riverside Police Department, the Corona Police Department and other law enforcement agencies.
U.S. Customs and Border Protection Officers Arrest St. Thomas Man for Possession of a FirearmRead the Press Release
St. Thomas, USVI – Eugene Monsanto, Jr., 40, made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged in a complaint with being a felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced. Monsanto was released on an unsecured $10,000 bond and to the third-party custody of his mother pending further proceedings.
According to the complaint, on Sunday, May 30, 2016, Monsanto, who was aboard the M/V Sundance Queen, presented himself for inspection at the U.S. Customs and Border Protection’s (CBP) St. John Port of Entry. A CBP officer conducted a routine inspection and found a fully loaded .38 caliber Smith and Wesson revolver inside of Monsanto’s carry-on.
Under federal law if convicted of being a felon in possession of a firearm, Monsanto faces a maximum of 10 years in prison and a $250,000 fine. This case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Kim L. Chisholm.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
U.S. Customs and Border Protection Officers Arrest St. Thomas Man for Possession of a FirearmRead the Press Release
St. Thomas, USVI – Eugene Monsanto, Jr., 40, made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged in a complaint with being a felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced. Monsanto was released on an unsecured $10,000 bond and to the third-party custody of his mother pending further proceedings.
According to the complaint, on Sunday, May 30, 2016, Monsanto, who was aboard the M/V Sundance Queen, presented himself for inspection at the U.S. Customs and Border Protection’s (CBP) St. John Port of Entry. A CBP officer conducted a routine inspection and found a fully loaded .38 caliber Smith and Wesson revolver inside of Monsanto’s carry-on.
Under federal law if convicted of being a felon in possession of a firearm, Monsanto faces a maximum of 10 years in prison and a $250,000 fine. This case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Kim L. Chisholm.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
U.S. Attorney’s Office Asks Court to Schedule Retrial for Washington State Auditor Troy X. KelleyRead the Press Release
Today prosecutors asked U.S. District Judge Ronald B. Leighton to set a new trial for TROY X. KELLEY on the fourteen charges that a Tacoma jury was unable to reach unanimous verdicts on. Those charges relate to possession of stolen property, false statements, tax crimes and money laundering. The court set the trial for March 13, 2017.
“After careful review we have decided to seek a new trial for Troy X. Kelley on the charges the jury could not reach a verdict on,” said U.S. Attorney Annette L. Hayes. “We believe it is in the interest of justice to seek final judgment on all the counts in the indictment.”
Two More Plead Guilty in Methamphetamine ConspiracyRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today that two more men involved in a conspiracy that distributed methamphetamine have pled guilty in the United States District Court the Western District of Virginia in Roanoke.
Brian Lee Boles, 26, pled guilty today to one count of conspiracy to distribute 50 grams or more of methamphetamine. In a separate hearing, Robert Allen Jolliffe, 34, of Marion, Virginia, pled guilty to one count of conspiracy to distribute a measurable quantity of methamphetamine.
“Methamphetamine addiction is destroying communities all over Southwest Virginia and we must continue to be vigilant in prosecuting those who deal in this highly addictive substance,” United States Attorney John P. Fishwick Jr. said today.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Two Commercial Trash Haulers Sentenced for Bribing Baltimore City Landfill EmployeesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Quentin Turgot Glenn, age 50, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, today to three years in prison followed by three years of supervised release for conspiracy and bribery in connection with a scheme in which commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees. Judge Garbis also ordered Glenn to pay restitution of $306,000.
Judge Garbis also sentenced Jessie Lee Wilson, Jr., age 41, of Baltimore, who was employed by Glenn Services as a truck driver, today to three years of probation, with the first year to be spent in community confinement, for the conspiracy and bribery.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill. Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities. The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.
Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill. DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. The scale house operators reweigh each truck as it leaves the Landfill.
According to facts agreed upon by Wilson and Glenn, at times when Wilson drove a truckload of trash to the Landfill, neither he nor Glenn Services was charged a disposal fee. In return, Glenn Services paid scale house employees a bribe of $100 per truckload of trash. After a certain number of unpaid trips, Glenn would arrange for himself or one of his drivers, including Wilson, to meet a scale house operator to pay the balance of the cash bribes.
In a recorded phone conversation on January 23, 2015, Wilson explained to a scale house employee why Glenn Services had not yet paid bribes on dozens of trips to the Landfill. Wilson said he had tried to text the employee using coded language to arrange a meeting, and that he carried the bribery money around in his pocket for so long that he eventually tried to give it back to Glenn, but Glenn insisted that Wilson keep the money until the employee was ready to receive it.
In another recorded phone conversation with the employee on January 29, Wilson said he needed the “numbers for the dinner,” and the employee replied that Glenn Services still owed for 34 trips, or $3,400. In a subsequent call, Wilson confirmed that in addition to paying this amount, Glenn would also pay for the few times Glenn Services was actually charged for dumping (at the FBI’s direction).
On February 1, 2015, Wilson met the employee at a parking lot on Edmondson Avenue in Baltimore City and gave the employee $2,500 in cash. He said that Glenn would give her the rest later in the week, and complained about the times Glenn Services was actually charged a disposal fee, which was a “[c]ouple of them…was like 16, 1700 dollars.”
On April 21, 2015, in a series of phone calls and text messages, the employee told Wilson that Glenn owed for 39 trips since February 1, 2015, plus for five other trips, for a total of $4,400. Wilson arranged a meeting between the employee and Glenn.
On April 23 and 24, Glenn met with the employee, providing a total of $4,000 in cash for 40 trips to the Landfill. Also during the meetings, they agreed to deal directly with each other without going through Wilson or Tamara Washington, another DPW employee, and to try to meet more regularly every time Glenn’s drivers made 10 trips to the Landfill.
From July 1, 2014 to May 1, 2015, Wilson fraudulently gave and agreed to participate in giving DPW employees cash payments in lieu of paying waste disposal fees that totaled more than $5,000.
Former Baltimore City Department of Public Works (DPW) employees Tamara Oliver Washington, age 55, William Charles Nemec, Sr., age 56; and Michael Theodore Bennett, age 47, all of Baltimore, and Jarrod Terrell Hazelton, age 33, of Parkville, Maryland, a former employee at the Quarantine Road Landfill, previously pleaded guilty to their roles in the schemes. Nemec was sentenced to 78 months in prison and ordered to pay restitution of $6 million. Bennett was sentenced to 46 months in prison and ordered to pay restitution of $400,000. Washington and Hazelton await sentencing.
Five other commercial trash haulers have also pleaded guilty, and a sixth trash hauler was convicted of conspiracy and two counts of bribery after a five day trial in November 2015. Judge Garbis sentenced two commercial haulers for their participation in the bribery scheme: Adam Williams, Jr., age 52, of Randallstown, to one year in prison followed by two years of community confinement with work release; and Larry Lowry, age 61, of Orchard Beach, Maryland, to 30 months in prison. Judge Garbis also entered an order that Williams pay restitution of $900,000, and Lowry pay restitution of $180,000.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Leo J. Wise, who prosecuted the case.
Truck Company Owner, Company Plead Guilty to Violating Mine Safety and Health ActWill Pay $375,000 in Fines and PenaltiesRead the Press Release
ABINGDON, VIRGINIA – A Big Stone Gap coal trucking company and its owner pled guilty today in Federal Court to violating the Federal Mine Safety and Health Act by providing advance notice of safety inspections, and other violations, United States Attorney John P. Fishwick Jr. announced.
Hillis Bresee, 63, of Big Stone Gap, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to one count of aiding and abetting the willful violation of the mandatory mine safety health or safety standard by providing advance notice of safety inspections. The maximum statutory penalty faced by the defendant is up to one year in prison and/or a fine of up to $250,000.
Bresee Trucking also pled guilty today to one count of aiding and abetting the willful violation of the mandatory mine safety health or safety standard by providing advance notice of inspections and one count of willfully violating mine safety health or safety standards.
In conjunction with the plea agreements, Bresee Trucking entered into a civil settlement with the United States Department of Labor. As part of the plea agreement and civil settlement, Bresee Trucking and Hillis Bresee agreed to pay $300,000 in civil penalties, a total of $70,000 in restitution to two former employees of the company, and fines of $5,000.
“Congress enacted the Federal Mine Safety and Health Act to protect our miners. Those who work in this dangerous profession must know their employers will be held to these high safety standards and that when they ignore those rules they will be held accountable,” United States Attorney John P. Fishwick Jr. said today.
“This plea agreement and civil settlement demonstrate that the Departments of Labor and Justice continue to work together to help ensure that every miner can go home to his or her family at the end of their shift,” said Joseph A. Main, assistant secretary of labor for mine safety and health.
Willis Bresee and Bresee Trucking, violated the Federal Mine Safety and Health Act, in approximately February 2012, by giving advance notice of safety inspections and failing to ensure adequate inspections of coal haul tractor trailers, including to the braking systems.
United States Magistrate Judge Pamela Meade Sargent accepted the guilty plea and scheduled a sentencing hearing for August 15, 2016 at 10:30 a.m.
The investigation of the case was conducted by the Norton Office of the Mine Safety and Health Administration. Special Assistant United States Attorney Kevin L. Jayne prosecuted the criminal case for the United States. The civil proceedings were handled by J. Matthew McCracken of the United States Department of Labor, Office of the Solicitor.
Three Arraigned in Connection with Drug Smuggling at Montana State PrisonRead the Press Release
MISSOULA – Ian Scott Barclay, 28, of Deer Lodge, Cordero Robert Metzker, 28, of Billings, and Erin Marie Bernhardt, 47, of Deer Lodge were arraigned in federal court today on a six-count superseding indictment charging them with various drug distribution crimes.
The charges were as follows: Count I, conspiracy to possess with intent to distribute, and distribution of, controlled substances (methamphetamine and Suboxone); Count II, possession with intent to distribute methamphetamine and Suboxone; and Counts III and IV, possession with intent to distribute methamphetamine. Bernhardt was also charged in Count V with accepting bribes and Barclay was charged in Count VI with giving bribes to Bernhardt. Barclay, Metzker, and Bernhardt pleaded not guilty to all charges against them. Barclay was detained, while Metzker and Bernhardt were released pending trial.
The superseding indictment is the result of an investigation into drug smuggling at the Montana State Prison. The investigation was a cooperative effort between the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections Investigations Division, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations.
An indictment is simply a charging document that initiates formal court proceedings. Barclay, Metzker, and Bernhardt are presumed innocent of the charges in the superseding indictment unless and until they are found guilty beyond a reasonable doubt at trial.
St. Thomas Man Sentenced to Six Months in Prison for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced today Edridge Clyne, 45, to six months imprisonment followed by six months of home confinement and two years of supervised release for possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Clyne to pay a $100 special assessment and perform 400 hours of community service.
On February 5, 2016, Clyne pleaded guilty to possession with intent to distribute marijuana. According to the plea agreement filed with the Court on February 25, 2015, Clyne visited Tropical Shipping in St. Thomas to pick up a hot water heater and freezer. During a routine inspection, a U.S. Customs and Border Protection (CBP) canine alerted to the presence of narcotics. CBP officers inspected the containers and discovered a total of 24 kilograms of marijuana hidden inside the appliances.
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), CBP and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
St. Thomas Man Sentenced to Six Months in Prison for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced today Edridge Clyne, 45, to six months imprisonment followed by six months of home confinement and two years of supervised release for possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Clyne to pay a $100 special assessment and perform 400 hours of community service.
On February 5, 2016, Clyne pleaded guilty to possession with intent to distribute marijuana. According to the plea agreement filed with the Court on February 25, 2015, Clyne visited Tropical Shipping in St. Thomas to pick up a hot water heater and freezer. During a routine inspection, a U.S. Customs and Border Protection (CBP) canine alerted to the presence of narcotics. CBP officers inspected the containers and discovered a total of 24 kilograms of marijuana hidden inside the appliances.
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), CBP and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
St. Croix Man Sentenced for Manufacturing MarijuanaRead the Press Release
St. Croix, USVI – On Thursday, May 26, 2016, Chief Judge Wilma A. Lewis sentenced Raymond Mathurin, 48, to three years of probation, six months of home detention, and a $2000 fine on one count of manufacturing marijuana, United States Attorney Ronald W. Sharpe announced.
According to court records, U.S. Drug Enforcement Administration (DEA) agents and the Virgin Islands Police Department (VIPD) officers executed a search warrant on a plot near Estate Two Friends in St. Croix and found 69 marijuana plants that Mathurin admitted to growing.
This case was investigated by the DEA and the VIPD, and was prosecuted by former Assistant U.S. Attorney Rami Badawy and Assistant U.S. Attorney Christian H. Stringer.
St. Croix Man Sentenced for Manufacturing MarijuanaRead the Press Release
St. Croix, USVI – On Thursday, May 26, 2016, Chief Judge Wilma A. Lewis sentenced Raymond Mathurin, 48, to three years of probation, six months of home detention, and a $2000 fine on one count of manufacturing marijuana, United States Attorney Ronald W. Sharpe announced.
According to court records, U.S. Drug Enforcement Administration (DEA) agents and the Virgin Islands Police Department (VIPD) officers executed a search warrant on a plot near Estate Two Friends in St. Croix and found 69 marijuana plants that Mathurin admitted to growing.
This case was investigated by the DEA and the VIPD, and was prosecuted by former Assistant U.S. Attorney Rami Badawy and Assistant U.S. Attorney Christian H. Stringer
Serial Child Molester Sentenced to 40 Years in PrisonRead the Press Release
NORFOLK, Va. – Eduardo Bueno, 42, of Portsmouth, was sentenced today to 480 months in prison for distribution of child pornography. Bueno was also sentenced to a lifetime of supervised release.
“This man is a menace,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “He has multiple convictions for sexually abusing children; several drug convictions, and on numerous occasions has failed to register as a sex offender. Today’s sentence not only puts this criminal behind bars for the next 40 years, but sends a clear message to other child molesters that they will pay a heavy price for their crimes.”
“Child pornography, when it is released onto the Internet, lives on forever,” said Michael Lamonea, Assistant Special Agent in Charge of Homeland Security Investigations Norfolk. “It haunts the children depicted in it, who live daily with the knowledge that countless strangers use an image of their worst experiences for their own gratification. Let today’s sentence serve as notice to other child predators. We will find you, investigate you, and ensure you are prosecuted to the fullest extent of the law.”
Bueno pleaded guilty on February 12. According to court documents, Bueno has two prior convictions for sexual abuse of children in the Commonwealth of Massachusetts, including that of a 6 year-old girl. In the immediate case, in 2015, the National Center for Missing and Exploited Children (NCMEC) received a tip that Bueno was trading child pornography via his e-mail account. Law enforcement officers performed a search of the account which revealed that Bueno had been trading these videos and images via e-mail as well through other technologies for a long period of time. Additionally, Bueno stated during an interview with law enforcement officers that he finds minor girls attractive, struggles not to look at them, and that he tried to avoid being alone with a minor relative. The public filings in this case also include statements by a minor relative who says she was sexually abused by Bueno.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Tonya D. Chapman, Chief of Police, Portsmouth Police Department, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-8.
Rigby Man Sentenced for Bankruptcy FraudRead the Press Release
POCATELLO – Kim Thompson, 49, of Rigby, Idaho, was sentenced today to three years of probation, including six months of home confinement for bankruptcy fraud, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Thompson to pay a fine of $3,000. Thompson pleaded guilty on February 10, 2016.
According to the plea agreement, on October 14, 2010, Thompson filed bankruptcy in the United States Bankruptcy Court for the District of Idaho. As part of those proceedings, Thompson testified under oath at the meeting of creditors that he had no aircraft or accessories. Thompson subsequently admitted that he had purchased a Piper Arrow aircraft in 2009. He admitted that he lied under oath about his ownership of the plane and stated that he never transferred the registration or ownership documents into his name in order to conceal ownership of the airplane from the bankruptcy trustee. He further stated that he hoped to use the plane in a business after completion of the bankruptcy and was afraid he would lose the plane if he disclosed it to the trustee.
The case was investigated by the Internal Revenue Service, Criminal Investigations (IRS-CI).
Raven, Virginia Man Pleads Guilty to Child Pornography, Gun ChargesRead the Press Release
ABINGDON, VIRGINIA – A Virginia man, who admitted to viewing depictions of child pornography and to possessing an illegal firearm, pled guilty to related charges in Federal Court, United States Attorney John P. Fishwick Jr. announced today.
Tony Michael Spencer, 42, of Raven, Virginia, pled guilty today to one count of receiving a depiction of a minor engaged in sexual explicit conduct and one count of possessing a short barreled shotgun.
“Protecting our children from predators who wish to exploit them is the most important thing we in law enforcement can do,” United States Attorney John P. Fishwick Jr. said today. “Technology is evolving at speeds that are difficult to keep up with, but we must be vigilant in talking to our children and keeping them safe online and knowing who they are spending their time with, both online and in person.”
“Children should be cared for and nurtured, not victimized and exploited. The FBI will continue to use investigative resources available to them to identify and hold accountable those who prey on these innocent victims,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division.
According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary T. Lee, after obtaining information that Spencer was part of a group of individuals utilizing a website on the internet to distribute child pornography, the Federal Bureau of Investigation executed a search warrant on Spencer’s residence on August 6, 2015. At the time of the search warrant, Spencer admitted to viewing child pornography on the website and FBI agents also located an unregistered sawed-off shotgun in the residence.
To date, the FBI’s examination of Spencer’s computers seized at the time of the search has located more than 300,000 images of child pornography.
The investigation of the case was conducted by Federal Bureau of Investigation. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Oakland Dentist Pleads Guilty to Tax EvasionRead the Press Release
OAKLAND – Jack Carlo Isaacs pleaded guilty today to tax evasion announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
According to the plea, Isaacs, 73, of Oakland, has been a practicing dentist since 1972, specializing in endodontics, root canals, and dental implants. From 1997 through the present, Isaacs owned and operated Isaacs Dental, Inc. Isaacs acknowledged that as of September 26, 2012, he knew he had unpaid federal income tax liabilities for 2002, 2003, 2005, 2009, 2010 and 2011in the amounts of $35,128.09; $47,313.00; $6,418.00; $31,692.00; $41,739.00; and $9,013.00, respectively. Further, Isaacs admitted that between September 26, 2012, and April 2, 2013, he attempted to evade and defeat the payment of his federal income tax liabilities by committing various affirmative acts, including the following:
- On or about September 26, 2012, Isaacs sent a check to the IRS in the amount of $414,300, to be applied to his tax liabilities for 2003, 2005, 2009 and 2010, knowing that there were insufficient funds in that account, and that he had closed the account.
- On or about November 9, 2012, Isaacs sent a check to the IRS in the amount of $9,122, to be applied to his 2011 tax liability, knowing there were insufficient funds in that account, and that he had also closed this account.
- On or about March 8, 2013, Isaacs caused fake money orders to be sent to the IRS to be applied to his 2002, 2003, 2005, 2009, 2010 and 2011 tax liabilities. He did so knowing that these money orders were fake because they were drawn on a fictitious account at the Federal Reserve Bank.
- On or about August 26, 2013, Isaacs filed a Petition to Cease and Desist in the United States District Court for the Northern District of California, Case No. 13-cv-01394-WHO (N.D. Calif.) requesting that the court order the IRS to “cease and desist all collection activities” because Isaacs had paid his taxes. He filed the suit to mislead the Court into believing that his taxes had been paid with the fake money orders referenced above, along with submitting a copy of another fake money order to the district court and to the IRS in the amount of $1,272,338.
Issacs was charged on April 21, 2016, with one count of attempting to evade and defeat the payment of tax for 2002, 2003, 2005, 2009, 2010 and 2011. He pleaded guilty to the charge. He also agreed to pay $219,371.08 to the IRS which includes the sum of the taxes he owed plus interest. Isaacs is scheduled to be sentenced by the Honorable James Donato on October 27, 2016, at 9:30 a.m., in Oakland.
The maximum statutory penalty for attempting to evade and defeat the payment of tax, in violation of 26 U.S.C. § 7201, is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Newark Hospital to Pay $450,000 for Allegedly Billing Health Care Programs for Unnecessary ProceduresRead the Press Release
NEWARK, N.J. – Saint Michael’s Medical Center Inc., located in Newark, New Jersey, has agreed to pay $450,000 to resolve allegations that it falsely billed Medicare and Medicaid for medically unnecessary cardiac procedures, U.S. Attorney Paul J. Fishman announced today.
Under Medicare and Medicaid rules, health care providers have a duty to provide services only when they are medically necessary. In addition, government health care programs only authorize payment for reasonable and necessary medical services. Today’s settlement resolves allegations that, during the period from Jan. 1, 2009, through Jan. 1, 2015, Saint Michael’s allegedly submitted claims for percutaneous coronary interventions, catheterizations, and stents performed in its cardiac catheterization lab that were not medically necessary.
The allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorneys Lucy Muzzy and Bernard J. Cooney of the Health Care and Government Fraud Unit and Assistant U.S. Attorney Eamonn J. O’Hagan of the office’s Financial Litigation Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Defense counsel: Bruce Levy Esq., Newark.
Relator’s counsel: David J. Caputo Esq., Philadelphia
Nelson Man Sentenced to 87 Months in Federal Prison for Conspiring to Distribute in Excess of One Kilogram of HeroinRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Jason Daigle, age 39, of Nelson, New Hampshire has been sentenced by United States District Judge Joseph A. DiClerico to 87 months in federal prison for conspiracy to distribute one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 846 and 841(b)(1)(A)(i). The Grand Jury for the District of New Hampshire indicted Daigle for the crime September 23, 2015. Daigle pleaded guilty to the charge on January 11, 2016.
After a lengthy investigation, law enforcement determined that Daigle was employed as a runner for a drug trafficking organization headed, authorities allege, by Ross Gould, age 28, of Richmond, New Hampshire. Daigle distributed heroin for Gould to individuals in and around Keene. As part of the conspiracy, Daigle also met with Gould’s Lawrence, Massachusetts-based sources of heroin at the Rockingham Mall, Salem, New Hampshire to take delivery of up to two kilograms of heroin, which Daigle then transported back to Gould for distribution.
On March 10, 2015, a search by law enforcement of a locked safe Gould maintained at Daigle’s residence resulted in the seizure of over a kilogram of heroin and large quantities of cocaine and prescription pills. The same day, a search executed at Gould’s Richmond, New Hampshire residence resulted in the seizure of additional narcotics, currency and 14 firearms.
On March 16, 2015, Gould was charged federally with possession with the intent to distribute heroin.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin in New Hampshire, by continuing to target drug trafficking organizations which are responsible for the importation of large quantities of heroin into New Hampshire,” stated United States Attorney Emily Gray Rice.
The investigation was conducted by the: (1) Immigration and Customs Enforcement, Homeland Security Investigations; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) New Hampshire State Police; (5) Keene, New Hampshire Police Department; (6) Richmond, New Hampshire Police Department; and (7) Salem, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Medina Woman Sentenced for Stealing Social Security BenefitsRead 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 Heather Brooks, 33, of Medina, NY, who was convicted of theft of public money, was sentenced to two years probation by U.S. Magistrate Judge Jeremiah J. McCarthy.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that between June 1, 2010 and May 1, 2013, the defendant willfully stole Social Security Income benefits from the United States Social Security Administration by purposely under reporting income she received from two separate employers. Brooks was asked to recertify her income on two occasions, and on both occasions, she purposely under reported. In total, the defendant received $19,317.87 that she was not entitled to receive. In addition to her period of probation, the defendant was ordered to pay restitution totaling $19,317 to the Social Security Administration.
The sentencing is the result of an investigation by the Social Security Administration, Office of Inspector General, under the direction of Edward J. Ryan.
Media Advisory: Dubuque Hosts Hate Crimes/Bias Incident ForumRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa is joining with the FBI, DOJ’s Community Relations Service, Dubuque County Attorney and Sheriff’s Offices, Dubuque Police Department, and the city’s Human Rights Commission to host a forum designed to identify and address key issues related to hate crime reporting, investigation, prosecution and prevention. The forum is designed to build collaboration among key partners in an effort to prevent and respond to bias incidents and hate crimes.
U.S. Attorney Kevin W. Techau will be present and joined by Darryck Dean, a DOJ Conciliation Specialist with the Community Relations Service located in Kansas City. Mr. Dean was actively involved in community conciliation efforts following the incidents in Ferguson, Mo. A flyer announcing the forum is attached.
Event Details
When: Wednesday, June 1, 2016
Where: Mindframe Theaters, 555 John F. Kennedy Rd (behind Kennedy Mall), Dubuque, IA
Time: Starts at 6:00 p.m., ends at 8:00 p.m.
hate_crimes_forum_flyer.pdf
This is a “pen and pad” opportunity for the press. Photography permitted. A press release will be provided and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Maryland Man Pleads Guilty to an Armed Robbery Conspiracy and the Robbery of a St. Mary’s County Jewelry Store and PharmacyRead the Press Release
Greenbelt, Maryland – Abdelrahim Ayyad, a/k/a Sahid, age 50, of White Plains, Maryland, pleaded guilty today to: an armed robbery conspiracy; two armed commercial robberies; and to using and brandishing a firearm in relation to a crime of violence. Ayyad was originally scheduled to go to trial today on those charges, but instead pleaded guilty to the superseding indictment.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and St. Mary’s County Sheriff Tim Cameron.
According to court documents, in June 2014, Ayyad conspired with Furman Troy, Darrell Lee and Michael Burgess, to rob commercial businesses in St. Mary’s County, Maryland. For example, on June 18, 2014, Ayyad admitted that he drove to Washington, D.C. and picked up Troy, Lee and Burgess and drove them to a jewelry store in Charlotte Hall, Maryland in order to commit a robbery. Ayyad handed Troy a bag containing a gun. Troy and Lee entered the store and Lee brandished a firearm at the owner of the store. Troy subsequently bound the victim with duct tape. The robbers then demanded the key to the jewelry counter from an employee of the store and stole jewelry worth more than $8,800, cash, a laptop computer and other items. On June 22, 2014, Ayyad and Burgess drove to a pharmacy in Mechanicsville, Maryland, with Troy and Lee following in another vehicle. Ayyad and Burgess waited in their vehicle while Troy and Lee robbed the pharmacy. During the robbery Lee again brandished a gun and Troy bound the pharmacy employee with duct tape. According to their plea agreements, Troy and Lee stole cash and prescription bottles containing oxycodone, methadone, hydrocodone and endocet, valued at $8,897.
U.S. District Judge George J. Hazel has scheduled sentencing for Ayyad on September 12, 2016, at 2:00 p.m.
Furman Troy, age 45, and Darrell Lee, age 48, both of Charlotte Hall, Maryland, and Michael Burgess, age 54, of Alexandria, Virginia, previously pleaded guilty to their roles in the robberies. Furman was sentenced to 12 years in prison. Lee and Burgess are awaiting sentencing
United States Attorney Rod J. Rosenstein commended the FBI and St. Mary’s County Sheriff’s Office for their work in the investigation and recognized the St. Mary’s County State’s Attorney’s Office for its assistance in the case. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Thomas P. Windom, who are prosecuting the case.
Marion Man Sentenced for Weapons ChargesRead the Press Release
BOSTON – A Marion man was sentenced today in connection with illegally possessing a revolver, a sawed-off shotgun and ammunition.
Jeffrey E. Tosca, Jr., 32, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 10 years in prison and three years of supervised release. In March 2016, on the second day of trial, Tosca pleaded guilty to being a felon in possession of a firearm and ammunition and possession of an unregistered firearm.
On Sept. 14, 2013, Tosca made threats over the phone from his home in Marion to shoot members of law enforcement, his father and others. Law enforcement, including a SWAT team, quickly responded and took steps to secure the area. Several hours later, law enforcement officers arrested Tosca without incident and seized a fully loaded revolver and a 12 gauge sawed-off shot gun, and over 100 pieces of assorted ammunition discovered in a storage container buried on the grounds of his residence.
Tosca had previously been convicted on multiple criminal charges, including 2012 and 2010 convictions on state weapons charges, a 2010 conviction for possession of narcotics, knowingly receiving stolen property and resisting arrest, and convictions in 2005 and 2006 for possession with intent to distribute controlled substances.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Marion Police Department and the Plymouth County Sheriff’s Department also assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Mary B. Murrane of Ortiz’s Major Crimes Unit.
MEDIA ADVISORY - U.S. Attorney Damon P. Martinez to Address Rotary Club of Rio Rancho SunriseRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez will address the Rotary Club of Rio Rancho Sunrise at 7:00 A.M. on WEDNESDAY, JUNE 1, 2016. U.S. Attorney Martinez will discuss the role of the U.S. Attorney’s Office in addressing the public safety challenges facing New Mexico.
WHO: U.S. Attorney Damon P. Martinez, District of New Mexico
WHAT: Presentation to the Rotary Club of Rio Rancho Sunrise on the role of the U.S. Attorney’s Office in addressing New Mexico’s public safety challenges.
WHEN: WEDNESDAY, JUNE 1, 2016, 7:00 a.m.
WHERE: Club Rio Rancho, 500 Country Club Dr. SE, Rio Rancho, NM 87124
U.S. Attorney Martinez’s remarks will cover the response of the U.S. Attorney’s Office to the violent crime crisis and the heroin and prescription opioid epidemic confronting New Mexico. The U.S. Attorney also will discuss his Office’s efforts to address the public safety challenges in tribal communities, particularly crimes against Native American women and children, and its commitment to provide training to tribal officers and coordinate other law enforcement resources available to New Mexico’s Pueblos and Tribes. The discussion will cover the Office’s civil rights and affirmative civil enforcement work, and its efforts to safeguard the important national security assets located in New Mexico.
Latrobe Woman Admits Defrauding Highmark to Obtain Prescription DrugsRead the Press Release
PITTSBURGH - A resident of Latrobe, Pennsylvania, pleaded guilty in federal court to charges of health care fraud and obtaining prescription drugs through fraud, United States Attorney David J. Hickton announced today.
Kari Richards, 29, of Latrobe, Pennsylvania pleaded guilty to two counts before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that Richards, while addicted to prescription pain killers, caused Highmark to pay more than $600,000 in connection with claims in which she sought treatment over a 16-month period from more than 100 hospitals in 11 states on more than 300 occasions. Through this behavior, Richards obtained approximately 190 prescriptions for pain medications, including prescriptions for Schedule II controlled substances Oxycodone-Acetaminophen, Hydrocodone-Acetaminophen, Hydrocodone, and Oxycodone. As part of the scheme, Ms. Richards falsely represented the circumstances of injuries, which were mainly shoulder dislocations. She also misrepresented the medications that she received and her medical history.
Judge Cohill scheduled sentencing for September 7, 2016. The law provides for a total sentence of fourteen years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Richards.
Large-Scale Heroin Dealer Sentenced to 12 Years in Federal PrisonRead the Press Release
PITTSBURGH – Eric Ewell, formerly of Pittsburgh, Pennsylvania, pled guilty and was sentenced to 144 months in prison for conspiring to distribute at least one kilogram of heroin, United States Attorney David J. Hickton announced today.
Ewell, age 33, was sentenced in Pittsburgh by United States District Judge Nora Barry Fischer. Judge Fischer also imposed a 5-year term of supervised release to follow the federal prison sentence.
In conjunction with the guilty plea, the Court was informed that, between 2011 and 2013, Ewell resided in North Carolina, but frequently returned to his native Pittsburgh for several days at a time. One of the reasons for many of Ewell’s return trips to Pittsburgh was to distribute heroin in Western Pennsylvania. Ewell acknowledged as part of his plea agreement that he was responsible for the distribution of between three and ten kilograms of heroin.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh, Charlotte (North Carolina), and New York City, the Internal Revenue Service, the Pennsylvania State Police, the Pittsburgh Police Department, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Lancaster Man Charged with Robbing MarketRead the Press Release
PHILADELPHIA - Joshua Matthew Ortiz, 24, of Lancaster, PA, was charged today by Indictment with robbery which interferes with interstate commerce, using and carrying a firearm during a crime of violence, and with being a convicted felon in possession of a firearm, announced U.S. Attorney Zane David Memeger.
According to the indictment, on January 29, 2016, Ortiz committed a gun-point robbery of the Turkey Hill Minit Market, located at 410 East Chestnut Street, in Lancaster, Pennsylvania.
If convicted of all counts, Ortiz faces a maximum sentence of life in prison, with a mandatory seven-year minimum sentence, a possible fine, five years of supervised release, and a $300 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Lancaster City Bureau of Police. It is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Justice Department Settles Immigration-Related Discrimination Claim Against California Skilled Nursing FacilityRead the Press Release
The Justice Department reached a settlement agreement today with Villa Rancho Bernardo Care Center (VRB), a skilled nursing facility in San Diego. The agreement resolves the department’s investigation of VRB for discrimination against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that VRB discriminated against lawful permanent residents by requiring them to produce specific documents to prove their work authorization, while permitting U.S. citizens to show any valid work authorization documentation they chose. Specifically, during the interview and hiring processes, including in certain online job postings, VRB requested that lawful permanent residents produce a permanent resident card (often known as a “green card”). Lawful permanent residents are not required to show employers their permanent resident cards to work; like all workers, they can present their choice of valid documentation from the Department of Homeland Security’s lists of acceptable documents to establish their identity and work authorization. For example, lawful permanent residents can establish their work authorization by presenting a state or federal identification document and an unrestricted Social Security card.
Under the settlement agreement, VRB will pay $24,000 in civil penalties to the United States, undergo department-provided training on the anti-discrimination provision of the INA and be subject to monitoring requirements.
“The Civil Rights Division is committed to ensuring that individuals who are authorized to work in the United States do not face unlawful, discriminatory barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department's Civil Rights Division. “It is essential that employers review their employment eligibility verification practices to make sure they are in compliance with the law.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.
To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they have been subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral, should contact OSC’s worker hotline for assistance.
Jury Finds Jackson Man Guilty in Felon in Possession of a Firearm CaseRead the Press Release
Jackson, Miss - Following a five day trial in United States District Court in Jackson, a jury found Aaron Charles Harris, age 30, of Jackson, guilty of possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis.
The crime took place on July 4, 2015 on Beaverbrook Road in Jackson. Federal agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives arrived at the location after hearing gunshots in the area. Once agents arrived, they witnessed Harris throw a firearm. Upon further investigation, another firearm was located in a vehicle belonging to Harris. Harris had previously been convicted of a felony in Hinds County Circuit Court.
Harris will be sentenced by U.S. District Judge Henry T. Wingate on August 12, 2016 at 9:30 a.m. The maximum penalty for felon in possession of a firearm is 10 years in federal prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Jackson Police Department, and prosecuted by Deputy Criminal Chief Darren LaMarca and Assistant U.S. Attorney Shundral H. Cole.Judge Sentences Pittsburgh Man to 25 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 25 years in prison on his conviction of conspiracy to distribute one kilogram or more of heroin, possession with the intent to distribute 100 grams or more of heroin, possession of firearms in connection with a drug trafficking offense, possession of firearms by a convicted felon, and possession of an unregistered firearm, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Richard Bush, 53, of Pittsburgh, Pennsylvania.
According to information presented to the court, Bush supplied heroin to members of a violent street gang called the East Hills Bloods, who operated out of the East Hills section of Pittsburgh. A search warrant executed at his home on March 14, 2012 led to the seizure of more than 9,000 stamp bags of heroin and a cache of firearms secreted throughout his home, including a sawed-off shotgun. Bush conspired with among others, Mayank Mishra and Willis Wheeler, both of whom are awaiting sentencing. Mishra participated in the heroin distribution conspiracy by supplying stamp bags and material used to dilute heroin to Bush and numerous other Pittsburgh area heroin dealers for more than a decade at his Rock America store, which was operated out of the Northway Mall. Search warrants executed at Rock American and at Mishra’s home on Feb. 26, 2013 led to the seizure of more than two million stamp bags, which, if filled with heroin, would have amounted to more than 75 kilograms of heroin. Federal agents also seized a vast inventory of materials used to dilute heroin and more than $900,000 in cash, which the jury forfeited to the United States as proceeds of his crimes. Wheeler, who was convicted at a trial earlier this year, supplied the undiluted heroin that Bush processed for retail distribution in a laboratory he maintained in the basement of his home. On March 14, 2012, the federal agents found more than 700 grams of heroin in Wheeler’s car and an apartment he maintained for the purposes of storing heroin.
Assistant United States Attorneys Brendan T. Conway and Donovan Cocas prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Greater Pittsburgh Safe Streets Task Force for the investigation leading to the successful prosecution of Bush, Mishra and Wheeler. The Greater Pittsburgh Safe Streets Task Force consists of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Dept, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation. The Greater Pittsburgh Safe Streets Task Force also received assistance in this case from the Pennsylvania State Police.
JSG Capital Investments’ Officers Charged with Wire FraudRead the Press Release
SAN FRANCISCO - On May 24, 2016, a federal grand jury in San Francisco indicted both Jaswant Singh Gill, also known as Jason Gill, the Chief Executive Officer of JSG Capital Investments LLC in San Diego (“JSG Capital”), and Javier Carlos Rios, the Strategic Relationship Manager at JSG Capital, with one count of conspiracy to commit wire fraud and one count of wire fraud, announced United States Attorney Brian Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the indictment, Gill, 48, of San Diego, Calif., and Rios, 33, of National City, Calif., are alleged to have made false and misleading representations and promises to investors in JSG Capital, including, but not limited to, promises to purchase so-called pre-IPO shares of private companies like Uber Technologies and Airbnb using investor funds. In fact, Gill and Rios are alleged to have fraudulently diverted and stolen investor funds for their own personal use and benefit by, among other things, converting investor funds into cash, transferring investor funds to their own personal bank accounts, and using investor funds for personal expenses like rent, restaurants, nightclubs, hotels, and retail shopping. Gill and Rios allegedly concealed their fraud by paying earlier investors “interest” payments or so-called lulling payments using more recent investor funds in a manner that was consistent with a classic Ponzi scheme. In this manner, Gill and Rios raised in excess of $9.3 million in investor funds and are alleged to have fraudulently diverted and stolen in excess of $5.5 million.
Gill was arrested on May 27, 2016 by the FBI in Nashville, Tennessee, and will make his initial appearance today in federal court in the Middle District of Tennessee. Rios was arrested on May 25, 2016 by the FBI in San Diego, Calif., and will also make his initial appearance today in federal court in the Southern District of California. The United States Attorney’s Office anticipates that both cases will be moved to San Francisco for an appearance in federal court in Northern District of California on a date that remains to be scheduled. The case has been assigned to the Honorable William H. Orrick, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. This indictment charged both defendants with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and one count of wire fraud, in violation of 18 U.S.C. § 1343. If convicted, the defendants face, on each count, a maximum sentence of twenty years in prison; a fine of $250,000 (or twice the gain or loss, whichever is greater); asset forfeiture and restitution, if appropriate, in amounts to be determined by the court; and other penalties. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Adam A. Reeves is prosecuting the case with the assistance of Paralegal Specialist Daniel Charlier-Smith and Legal Assistant Bridget Kilkenny. The prosecution is the result of an investigation by the FBI. The San Francisco Regional Office of the United States Securities and Exchange Commission provided assistance during the investigation.
Investment Bank Director Charged in Manhattan Federal Court with Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of STEVEN MCCLATCHEY, a director at an investment bank in Manhattan (the “Investment Bank”), on charges of participating in a scheme to commit insider trading in connection with potential mergers and acquisitions (“M&A”) in which the Investment Bank was involved. In addition, charges against GARY PUSEY were unsealed. PUSEY pled guilty and admitted to his participation in the scheme last week.
MCCLATCHEY was arrested this morning in Long Island, New York, and will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Kevin Nathaniel Fox. On Friday, May 27, 2016, PUSEY pled guilty before U.S. District Judge Katherine Polk Failla to conspiracy, securities fraud, and wire fraud.
In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against MCCLATCHEY and PUSEY.
U.S. Attorney Preet Bharara said: “Insider trading continues to tarnish our securities markets. As alleged, Steven McClatchey abused his position at a major investment bank, feeding sensitive information about mergers and acquisitions to his close friend, Gary Pusey, who in turn traded on that material, nonpublic information. McClatchey did not tip Pusey for free, allegedly receiving cash kickbacks and home renovations from Pusey in exchange. A free and fair marketplace is what securities investors deserve and is what we seek to enforce through prosecutions like this one.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, Steven McClatchey violated his confidentiality duty at an investment bank when he shared insider material information with his boat dock buddy, Gary Pusey, who ultimately used the information to make trades. McClatchey allegedly benefited from thousands of dollars cash payments and home repairs. Investing in our markets should be fair to all investors with equal access to information, not boat-side chats that give certain investors advantage. The FBI will continue to work with our partners to ensure our markets are fair and equitable to all.”
According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Complaint and Information, and statements made in court proceedings[1]:
MCCLATCHEY, who had served as a director at the Investment Bank since at least 2008, routinely possessed material, nonpublic information (“Inside Information”) concerning pending mergers and acquisitions in which the Investment Bank was involved. Indeed, among MCCLATCHEY’s responsibilities at the Investment Bank was the tracking of the status of all such pending transactions and the likely date on which such transactions would be publicly announced. MCCLATCHEY breached his duty of confidentiality to the Investment Bank and to its clients by providing Inside Information about pending M&A transactions to his close friend, PUSEY. PUSEY, in turn, used the Inside Information to execute profitable securities trades ahead of at least 10 separate M&A announcements.
Specifically, from February 2014 through September 2015, MCCLATCHEY and PUSEY participated in a scheme to commit insider trading in advance of and in connection with more than 10 separate mergers and acquisitions. MCCLATCHEY and PUSEY were close friends who owned boats docked in a Long Island marina and who spent most Saturdays on their boats, at the marina, or playing pool and watching sports.
MCCLATCHEY learned about the deals as part of his employment with the Investment Bank, which generally advised either (i) the company to be acquired in the transaction; (ii) the acquiring company; or (iii) a company which ultimately lost a bid to acquire the company involved in the transaction.
Having learned the Inside Information about these impending transactions, MCCLATCHEY, in breach of fiduciary duties and other duties of trust and confidence owed to the Investment Bank and its clients, tipped PUSEY so that PUSEY could use the information to trade and with the expectation that PUSEY would confer a benefit upon MCCLATCHEY. Among the benefits that MCCLATCHEY received as part of the insider trading scheme were thousands of dollars of cash payments by PUSEY and the provision of home renovation services.
PUSEY used the Inside Information that he received from MCCLATCHEY to make profitable trades in, among other securities: Forest Oil Corporation, Questcor Pharmaceuticals, Inc., Zygo Corporation, Pepco Holdings, Inc., Measurement Specialties, Inc., Entropic Communications, Inc., PetSmart, Inc., Emulex Corporation, Omnicare, Inc., and TECO Energy, Inc. PUSEY reaped approximately $76,000 in ill-gotten gains from this scheme.
* * *
MCCLATCHEY, 58, of Long Island, New York, is charged with one count of conspiracy to commit securities and wire fraud, which carries a maximum sentence of 25 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and 11 counts of securities fraud, each carrying a maximum sentence of 25 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
On May 30, 2016, PUSEY, 47, of Long Island, New York, pled guilty to one count of conspiracy to commit securities and wire fraud, which carries a maximum sentence of 25 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and 11 counts of securities fraud, each carrying a maximum sentence of 25 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences for the defendants will be determined by the judge.
Mr. Bharara praised the work of the FBI, and thanked the SEC.
The charges were brought 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 is 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Rebecca Mermelstein is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Houston, MO, Woman Sentenced for Sister's Murder-For-HireRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Houston, Mo., woman was sentenced in federal court today for hiring someone to murder her sister.
Leta Faye Douglas, 52, of Houston, was sentenced by U.S. District Judge M. Douglas Harpool to seven years and three months in federal prison without parole.
Douglas, who pleaded guilty on Jan. 4, 2016, admitted that she agreed to pay another person – who was actually an undercover law enforcement officer – $2,000 to murder her sister. Douglas must forfeit the $2,000 she paid the undercover officer to the government.
According to court documents, Douglas sent a letter to an individual in January 2015, asking for his help. This person, who lives in Nebraska, had not maintained contact with Douglas for about 18 years. When he called her in response to receiving the letter, Douglas told him that she wanted her sister killed. Douglas told him that her parents were in a home for the elderly and that her sister was in charge of their finances. He believed that Douglas wanted to have access to her parents' financial estate.
That individual contacted law enforcement authorities. An undercover employee of the Missouri State Highway Patrol contacted Douglas and made arrangements to meet in the Walmart parking lot in Houston on Feb. 9, 2015. The undercover, who was wearing an audio recording device, approached Douglas’s vehicle and got into the front passenger’s seat. During the initial conversation, she provided the undercover with a photograph of her sister and a hand-drawn map to her sister’s residence.
The entire conversation between Douglas and the undercover was recorded. Douglas told the undercover that her sister’s husband would also be home and that they had two dogs inside the house. She handed him an envelope that contained $2,000.
Douglas was arrested at her residence a few days later.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Missouri State Highway Patrol and the South Central Drug Task Force.
Four Newport News Gang Members Plead Guilty to 2015 ShootingRead the Press Release
NEWPORT NEWS, Va. – Eric Edmunds, II, 20, pleaded guilty today to criminal charges relating to his participation in a gang shooting outside a Sonic restaurant in Hampton in 2015.
“Gangs and the violence they bring to our neighborhoods and communities cannot continue,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “We are prepared on a federal and local level to take a stand against gangs and the violence they perpetrate. Only by working together at every level and in every community, will we make progress towards ending this threat to our youth and their families.”
Edmunds pleaded guilty to charges of attempted murder in of aid of racketeering activity, and discharge of a firearm in the commission of a violent crime. Quantavius Durham, 19, Raiquan Turner, 20, and Raquille Jackson, 22, also of Newport News, previously entered guilty pleas to the same charges. Each of the defendants was a member or associate of the 36th Street Bang Squad.
Defendant
Guilty Plea Date
Sentencing Date
Raquille Jackson
February 24
July 18
Raiquan Turner
March 11
June 7
Quantavius Durham
March 14
July 18
Eric Edmunds, II
May 31
September 12
In a statement of facts filed with the plea agreement, these four men, all members or associates of the 36th Street Bang Squad, a hybrid criminal street gang, followed a Hampton Public School bus looking for a rival gang member on June 5, 2015. According to court documents, the men did not find the rival, whom they suspected of killing a fellow gang member a few days earlier. The men returned to their vehicle, which was parked at the Sonic Restaurant on Floyd Thompson Boulevard. A short time later, Turner observed rival gang members walking toward the Sonic restaurant, and Jackson, the driver of the vehicle, called the rivals over to the vehicle. As the rivals approached, Jackson and Edmunds opened fire. Edmunds used a firearm provided to him by Durham. Hampton Police quickly stopped the fleeing vehicle only miles from the location, and all four defendants were removed from the vehicle. Ballistic tests of the firearms recovered from the vehicle matched casings left at the scene of the shooting, and all four men were positive for gunshot residue.
All four defendants were indicted by a federal grand jury on Nov. 17, 2015. Each of the defendants faces a mandatory minimum of 10 years in prison, and a maximum penalty of life in prison when sentenced. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Office; and Terry L. Sult, Chief of the Hampton Police Division, made the announcement, after Edmunds’ plea was accepted by U.S. District Judge Robert G. Doumar. Managing Assistant U.S. Attorney Howard Zlotnick and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case. The case was investigated by the ATF, with significant assistance from the Hampton Police and Newport News Police.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr80.
Former pastor sentenced to more than five years in prison for having thousands of images of child exploitationRead the Press Release
A former pastor was sentenced to more than five years in prison for receiving material involving the sexual exploitation of children, said Acting U.S. Attorney Carole S. Rendon.
Gerald B. Searle, 51, of Liberty Center, had thousands of images involving child pornography and exploitation on his computer between 2013 and 2015, according to court documents
The investigating agency in this case is the U.S. Postal Inspection Service, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office. The case is being handled by Assistant United States Attorney Tracey Tangeman.
Former U.S. Soldier Sentenced in Manhattan Federal Court to 20 Years in Prison for Conspiracy to Murder A DEA Agent and A DEA Informant and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JOSEPH HUNTER, a former member of the U.S. Army, was sentenced today to 20 years in prison based on his convictions for conspiracy to murder an agent of the Drug Enforcement Administration (“DEA”) and a DEA informant, conspiracy to import cocaine into the United States, and conspiracy to possess a firearm in furtherance of a crime of violence. HUNTER pled guilty on February 13, 2015, before U.S. District Judge Laura Taylor Swain, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “The sentencing of Joseph Hunter, an admitted contract killer, convicted drug trafficker, and ringleader of trained assassins, ends another chapter in a chilling criminal case that spanned the globe. Hunter and his cohorts turned from serving their countries as soldiers to becoming mercenaries for hire, plotting to kill a DEA agent and informant and trafficking in massive quantities of cocaine. Thanks to the outstanding investigative work of the DEA, these soldiers of fortune have met their rightful fate, long sentences in federal prison.”
According to the Indictment and Superseding Indictments filed against HUNTER and co-defendants Timothy Vamvakias, Dennis Gogel, Slawomir Soborski, and Michael Filter; other documents publicly filed in this case; and statements made during court proceedings, including today’s sentencing:
All five defendants previously served in the armed forces of their respective nations. HUNTER served in the U.S. Army between approximately 1983 and 2004; Vamvakias served in the U.S. Army between approximately 1991 and 2004; Gogel served in the German armed forces until 2010; Filter served in the German armed forces until 2009; and Soborski served in the Polish armed forces until 2011. HUNTER served as a sniper instructor and a senior drill sergeant, training other soldiers in marksmanship and tactics. Vamvakias attained the rank of sergeant and served both as infantryman and a military police officer. Gogel, Soborski, and Filter were also trained as snipers.
In 2013, HUNTER recruited Vamvakias, Gogel, Soborski, and Filter to serve as security for a Colombian drug trafficking organization and to perform contract killings. For example, in March 2013, HUNTER described the work to Soborski, Filter, and Gogel as follows: “It’s just like a military mission. Right. This is a real [expletive]. You know, you see everything. You see James Bond in the movie and you’re saying, ‘Oh, I can do that.’ Well, you’re gonna do it now.” During the same recorded meeting, HUNTER described in detail his previous participation in weapons trafficking, using grenades to conduct an attack, and shootings, as well as his participation in two actual murders-for-hire in the Philippines.
During meetings in Asia, Africa, and the Caribbean that began in January 2013 and continued through late September 2013, HUNTER communicated with three confidential sources (the “CSs”) working with the DEA, who purported to be Colombian narcotics traffickers. HUNTER agreed to serve as the head of security for the CSs’ purported narcotics trafficking organization, and assembled a “security team” consisting of Vamvakias, Gogel, Filter, and Soborski. HUNTER explained to his co-defendants that this work would involve “tons of cocaine” and “millions of dollars,” and that they would also have the opportunity to do “bonus work, that is, assassination” for which they would be paid at least $25,000, and “depending on the threat level, the price goes up.”
HUNTER and his co-defendants thereafter agreed, in meetings and communications with the CSs, to provide security and surveillance services to the narcotics trafficking organization. In late-March 2013, in Thailand, Gogel, Filter, and Soborski surveilled a vessel on behalf of the CSs’ purported narcotics trafficking organization and reported their activities to HUNTER. In April 2013, in Mauritius, at the direction of the CSs, Gogel, Filter, and Soborski provided security for meetings at which the participants – including Scott Stammers and Philip Shackels, who were later extradited to the Southern District of New York and pled guilty to a drug-trafficking offense before U.S. District Judge Andrew L. Carter, Jr., in United States v. Stammers, et al., 13 Cr. 579 (ALC) (S.D.N.Y.) – discussed actual weapons trafficking activities and the distribution of illegal narcotics to the United States. In late June 2013, Vamvakias, Gogel, Filter, and Soborski conducted surveillance of a purported U.S.-registered aircraft at the direction of the third CS (“CS-3”), who posed as a member of the CSs’ narcotics trafficking organization. CS-3 informed the defendants that the aircraft was to be loaded with 300 kilograms of cocaine to be shipped to New York. The security team reported their activities to HUNTER.
Furthermore, HUNTER, Vamvakias, and Gogel agreed to commit murders-for-hire in Liberia by assassinating both a DEA Special Agent and a person who, according to the CSs, was providing information to the DEA about the CSs’ narcotics trafficking organization. In exchange for the murders, Vamvakias and Gogel were together to be paid approximately $700,000, and HUNTER was to receive an additional $100,000 for supervising the hit team. Communications between the defendants and the CSs occurred by telephone, over e-mail, and in a series of surreptitiously audio-recorded and videotaped meetings over an approximately nine-month period.
In mid-May 2013, at a meeting with the CSs in Thailand, HUNTER, Vamvakias, Gogel, and Soborski were told that a “bonus job” – that is, a contract killing – was in the offing, due to a leak within the CSs’ narcotics trafficking organization. In late May 2013, in email communications, HUNTER confirmed that his team would be willing to murder both a U.S. law enforcement agent and a source (a boat captain), who was purportedly providing information to U.S. law enforcement authorities about the CSs’ narcotics trafficking organization. HUNTER confirmed by email that his team would kill both the DEA agent and the informant. At a meeting in late June 2013, CS-3 explained to Vamvakias and Gogel that “the job is to kill a U.S. DEA agent and a source with the DEA,” who would be located in Liberia. Vamvakias and Gogel discussed the weapons that could be used and masks to be worn for the murders, and Vamvakias stated that it would be better to “hit the agent first” and then “the snitch.” In early July 2013, HUNTER sent via e-mail a list of the items needed for the murders, including “[t]wo Submachine Guns with silencers . . . [t]wo .22 pistols with Silencers.”
In mid-August 2013, at a meeting in Thailand, HUNTER, Vamvakias, and Gogel discussed in detail the weapons that would be used and the possibility of entering Liberia without having their passports stamped. They suggested that CS-3 fly them out of the country via private plane following the murders. Vamvakias stated that, among other weapons, a sub-machine gun and two .22 caliber pistols would be needed for the murders, and CS-3 agreed to deliver the weapons to Liberia. The next day, at a meeting with Gogel, CS-3 confirmed that an order for the requested weapons had been made. Later that same day, Gogel met again with CS-3 and provided CS-3 with two highly sophisticated latex facemasks, which can make the wearer appear to be of another race, for CS-3 to transport to Liberia.
In late September 2013, Vamvakias and Gogel arrived in Liberia to commit the planned murders-for-hire.
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In addition to the prison sentence, Judge Swain also sentenced HUNTER, 51, to 10 years of supervised release and to pay a $300 special assessment.
Vamvakias, 44, pled guilty on January 9, 2015, to conspiracy to murder a DEA agent and a DEA informant, conspiracy to import cocaine into the United States, conspiracy to possess a firearm in furtherance of a crime of violence, and conspiracy to distribute cocaine on board an aircraft, and was sentenced by Judge Swain on July 16, 2015, to 20 years in prison. Gogel, 30, pled guilty on January 13, 2015, to conspiracy to murder a DEA agent and a DEA informant, conspiracy to import cocaine into the United States, conspiracy to possess a firearm in furtherance of a crime of violence, and conspiracy to distribute cocaine on board an aircraft, and was sentenced by Judge Swain on September 24, 2015, to 20 years in prison. Filter, 31, pled guilty on February 10, 2015, to conspiracy to import cocaine into the United States, and was sentenced by Judge Swain on September 9, 2015, to eight years in prison. Finally, Soborski, 44, pled guilty on February 10, 2015, to conspiracy to import cocaine into the United States, and is scheduled to be sentenced by Judge Swain on June 10, 2016.
Today’s sentencing was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division; DEA’s Bangkok, Ghana, Pretoria, Bucharest, Manila, Nassau and Copenhagen Offices; the Royal Thai Police Narcotics Suppression Bureau and Crime Suppression Division; the Royal Thai Immigration; the Royal Thai Attorney General’s Office; Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General’s Office; the Estonian Police and Border Guard; the Estonian National Criminal Police, Investigative Bureau; the Estonian State Prosecutors Office; the Royal Bahamas Police Force and Drug Enforcement Unit; Interpol; and the U.S. Department of Justice’s Office of International Affairs.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Emil J. Bove III, Michael D. Lockard, Aimee Hector, and Anna Skotko are in charge of the prosecution.
Former Fugitive Convicted of Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
A former fugitive who was illegally residing in Houston has entered a guilty plea today, admitting that he engaged in an alien smuggling conspiracy that resulted in two deaths and kidnapped two women, one of whom was killed.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Noe Aranda-Soto, aka Diablo, 36, of San Carlos, Michoacan, Mexico, pleaded guilty to kidnapping resulting in death, use of a firearm during and in relation to a crime of violence resulting in death and conspiracy to transport aliens for private financial gain resulting in death. U.S. District Judge John D. Rainey of the Southern District of Texas accepted the guilty plea and has set sentencing for Sept. 12, 2016. Aranda-Soto faces a mandatory term of life in federal prison.
In his plea agreement, Aranda-Soto admitted that from 2010 until his arrest in 2012, he led an alien-smuggling and hostage-taking organization that transported aliens from areas near the south-Texas checkpoints to local stash houses in Houston and to points north. On Aug. 1, 2010, his brother was driving a vehicle loaded with illegal aliens when it rolled over near Victoria, Texas. One victim died as a result of the accident, while another victim who had been left behind in the brush and died of exposure and dehydration. A third victim was in a coma for nearly a year and now suffers from permanent injuries, according to the plea.
Law enforcement stopped Aranda-Soto a few days later, but he fled. Still a fugitive on the 2010 charges, Aranda-Soto admitted he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. After law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees from one of the locations in October 2012, Aranda-Soto planned to escape from Houston with two female employees.
According to the plea agreement, while on Interstate 10 near Katy, Texas, Aranda-Soto became agitated and shot both the driver and the other female passenger multiple times. The injured driver jumped from the moving car and survived. Aranda-Soto then purposefully drove the car erratically, causing the other woman to be ejected from the moving vehicle onto the highway where she was subsequently run over by multiple other vehicles and killed, according to admissions in the plea agreement.
At the hearing today, the court heard that as the driver jumped from the moving car, she had apologized to the other woman. That victim then screamed in return “tell my children I love them.”
Law enforcement arrested Aranda-Soto a week later at yet another stash house, which was full of illegal aliens whom Aranda-Soto and his co-conspirators were holding hostage.
With Aranda-Soto’s plea, all of those charged in relation to the 2010 and 2012 criminal activity have now been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Border Patrol agents with the South Texas Campaign and South Texas Border Intelligence Center, Houston Police Department, Harris County Sheriff’s Office and the U.S. Marshals Service investigated the case. Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys Patti H. Booth and Casey N. MacDonald of the Southern District of Texas are prosecuting the case.
Former Fugitive Convicted of Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
VICTORIA, Texas – A former fugitive who was illegally residing in Houston has entered a guilty plea today, admitting he engaged in an alien smuggling conspiracy that resulted in two deaths and kidnapped two women, one of whom was killed.
U.S. Attorney Kenneth Magidson of the Southern District of Texas and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Noe Aranda-Soto, aka “Diablo,” 36, of San Carlos, Michoacan, Mexico, pleaded guilty to kidnapping resulting in death, use of a firearm during and in relation to a crime of violence resulting in death and conspiracy to transport aliens for private financial gain resulting in death. U.S. District Judge John D. Rainey accepted the guilty plea and has set sentencing for Sept. 12, 2016. Aranda-Soto faces a mandatory term of life in federal prison.
In his plea agreement, Aranda-Soto admitted that from 2010 until his arrest in 2012, he led an alien-smuggling and hostage-taking organization that transported aliens from areas near the south-Texas checkpoints to local stash houses in Houston and to points north. On Aug. 1, 2010, his brother was driving a vehicle loaded with illegal aliens when it rolled over near Victoria. One victim died as a result of the accident, while another had been left behind in the brush and died of exposure and dehydration. A third victim was in a coma for nearly a year and now suffers from permanent injuries, according to the plea.
Law enforcement stopped Aranda-Soto a few days later, but he fled. Still a fugitive on the 2010 charges, Aranda-Soto admitted he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. After law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees from one of the locations in October 2012, Aranda-Soto planned to escape from Houston with two female employees.
According to the plea agreement, while on Interstate 10 near Katy, Aranda-Soto became agitated and shot both the driver and the other female passenger multiple times. The injured driver jumped from the moving car and survived. Aranda-Soto then purposefully drove the car erratically, causing the other woman to be ejected from the moving vehicle onto the highway where she was subsequently run over by multiple other vehicles and killed, according to admissions in the plea agreement.
At the hearing today, the court heard that as the driver jumped from the moving car, she had apologized to the other woman. That victim then screamed in return “tell my children I love them.”
Law enforcement arrested Aranda-Soto a week later at yet another stash house, which was full of illegal aliens whom Aranda-Soto and his co-conspirators were holding hostage.
With Aranda-Soto’s plea, all of those charged in relation to the 2010 and 2012 criminal activity have now been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Border Patrol agents with the South Texas Campaign and South Texas Border Intelligence Center, Houston Police Department, Harris County Sheriff’s Office and the U.S. Marshals Service investigated the case. Assistant U.S. Attorneys Patti H. Booth and Casey N. MacDonald are prosecuting the case along with Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section.
Former Connecticut Group Home Operator Pays $1.5 Million to Settle Overbilling AllegationsRead the Press Release
U.S. Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that REM CONNECTICUT COMMUNITY SERVICES, INC. (“REM”) has entered into a civil settlement agreement with the federal and state governments in which it will pay $1.5 million to resolve allegations that it received overpayments from the Connecticut Medicaid Program.
REM, formerly located in Middletown, Conn., operated various group homes that provided residential and day services to the intellectually disabled and at-risk youth. REM ceased operating in Connecticut at the end of 2014.
The allegations against REM arose from REM’s submission of Annual Reports of Residential and Day Services (“cost reports”) to the State of Connecticut related to its operation of group homes during the period from July 1, 2007 through June 30, 2014. The government contended that REM reported certain interest expenses as allowable costs in the cost reports that were in fact not allowable under the State of Connecticut’s Cost Standards. As a result, the government alleges that REM received overpayments that it was not entitled to receive from the Connecticut Medicaid Program.
“Providers who bill government health insurance programs, such as Medicaid, must scrupulously follow the rules and regulations, and the failure to do so will have serious consequences,” said U.S. Attorney Daly. “The U.S. Attorney’s office will vigorously pursue health care providers who receive payments from federal health care programs that they are not entitled to receive.”
To resolve its liability, REM will pay $1.5 million to the federal and state governments. Part of the settlement amount will be satisfied by the government retaining $1,189,025 that had been suspended by the State of Connecticut because of REM’s questionable billing practices. The additional $310,975 will be paid by REM collectively to the federal and state governments at the time the settlement agreement is executed.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorney General Richard M. Porter of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Former Charleston man pleads guilty to failing to register as a sex offenderRead the Press Release
HUNTINGTON, W.Va. – A former Charleston resident faces up to 10 years in federal prison after pleading guilty today to failing to register as a sex offender, announced Acting United States Attorney Carol Casto. James Roy Arthur, 45, entered his guilty plea before Chief United States District Judge Robert C. Chambers.
Arthur was convicted in 1996 in Kanawha County Circuit Court of Second Degree Sexual Assault. As a result of this conviction, Arthur was required to register as a sex offender. Around January 1, 2016, Arthur moved to Fort Gay in Wayne County, and did not register as a sex offender, despite knowing it was required by law. Arthur continued to reside in Wayne County until his arrest on January 31, 2016. Arthur’s sentencing is scheduled for August 29, 2016.
The United States Marshals Service and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is being brought as part of the U.S. Attorney’s Office’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Former CalPERS CEO Sentenced to 54 Months’ Imprisonment for Role in Corruption ConspiracyRead the Press Release
SAN FRANCISCO – Fred Buenrostro, the former Chief Executive Officer of the California Public Employee Retirement System (CalPERS) was sentenced today to 54 months in prison for corruption and fraud charges stemming from a conspiracy to trade official acts for cash and benefits, announced U.S. Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, U.S. Postal Inspection Service (USPIS) Inspector in Charge Rafael Nuñez, and U.S. Secret Service (USSS) Special Agent in Charge David Thomas. The sentence follows Buenrostro’s guilty plea entered July 11, 2014.
Buenrostro, 67, of Sacramento, is the former Chief Executive Officer (CEO) of CalPERS and admitted that in 2004 he began receiving secret benefits from a placement agent for the purpose of influencing him in the exercise of his powers and duties as CEO. Buenrostro admitted the placement agent gave him approximately $250,000, as well as gifts, domestic and international travel, meals, entertainment, and payment for Buenrostro’s wedding. Further, Buenrostro admitted he also improperly received employment at ARVCO Capital Research LLC (ARVCO) after he left CalPERS in May of 2008. In exchange, Buenrostro attempted to influence the CalPERS investment staff and Board to the benefit of the placement agent and his clients, and provided the agent with access to CalPERS’ confidential information relating to investments, internal deliberations, and other proprietary matters.
In addition, Buenrostro conspired to create a series of fraudulent investor disclosure letters in a scheme to secure fees from a private equity firm based in New York City and agreed with a co-conspirator to make false misrepresentations to, and concealed information from, the Securities and Exchange Commission (SEC), the USPIS, and the FBI after these agencies opened investigations into the operations of ARVCO and its role as a placement agent in connection with CalPERS' investments.
Buenrostro was originally charged by indictment on March 14, 2013, but later charged by superseding information on July 11, 2014, with a single count of conspiracy, in violation of Title 18, United States Code, Section 371. Buenrostro pleaded guilty to the charge in the superseding information.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Judge. In sentencing Buenrostro, Judge Breyer stated the defendant’s conduct amounted to “a spectacular breach of trust for the most venal of purposes.” Judge Breyer also remarked that, “without trust, our public institutions cannot function.” Judge Breyer also imposed a $250,000 fine on the defendant but allowed that fine to be reduced if Buenrostro makes payments in response to certain proceedings brought by the State of California or the SEC.
Buenrostro currently is in custody and will begin to serve his term immediately.
Assistant United States Attorneys Timothy J. Lucey and Philip A. Guentert are prosecuting the case with the assistance of Laurie Worthen and Beth Margen. The prosecution is the result of an investigation by the USPIS and the FBI, with substantial assistance from the Los Angeles Regional Office of the SEC as well as the USSS.
Former Bank Manager Sentenced to Prison for Role in Massive Mortgage FraudRead the Press Release
BOSTON – A former bank manager was sentenced on Friday, May 27, 2016 in connection with a multi-year, multi-property mortgage fraud scheme in Dorchester.
Arthur Samuels, 41, of Mattapan, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to one year and one day in prison, two years of supervised release, and was ordered to pay restitution of $2,229,492. In 2012, Samuels pleaded guilty to four counts of wire fraud and one count of bank fraud.
From 2007 to 2008, Samuels engaged in a scheme with Michael David Scott, and others, to purchase multi-family residences and then sell individual condominium units in the buildings to straw buyers. Scott, a former realtor and developer, arranged to purchase multi-family residences and then sold individual condominium units to straw buyers recruited as investors by him, Samuels, and co-conspirators, Jerold Fowler and Thursa Raetz. Scott and his co-conspirators recruited straw buyers with promises that they would not have to make down payments, pay any funds at closing, or be responsible for mortgage payments, and would share in profits when the units were resold. In order to obtain mortgage loans for some of the straw buyers, Samuels created bogus bank deposits falsely representing that the straw buyers’ accounts had large balances with his bank. Scott then submitted mortgage loan applications that falsely represented key information, such as the buyers’ income, personal assets, down payment, and intention to reside in the condominiums. The mortgage lenders, (nine national mortgage companies and one local bank) were led to believe that the straw buyers had made substantial down payments and paid substantial sums at closing. In addition, Samuels also recruited a straw buyer for the purchase of two condominiums, and acted as a straw buyer himself on three properties.
In November 2015, Scott was sentenced to 135 months in prison, and Fowler and Raetz were sentenced to two years in prison.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild and Ryan M. DiSantis of Ortiz’s Criminal Division.
Former Bakersfield Police Department Detective Pleads Guilty to Bribery, Drug Trafficking, and Filing a False Tax ReturnRead the Press Release
FRESNO, Calif. — Damacio Diaz, 44, of McFarland, formerly a detective with the Bakersfield Police Department, pleaded guilty today to bribery, possession and attempted possession with the intent to distribute methamphetamine, and making and subscribing a false income tax return, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between April 2012 and February 2015, while employed as a police officer with the Bakersfield Police Department (BPD), Diaz handled a criminal informant who was involved in the large-scale sale and distribution of methamphetamine. Diaz continued to operate the informant even though he was fully aware of the informant’s ongoing criminal activity. During this time, Diaz received bribes from the informant in return for intelligence on law enforcement activities as well as protection from investigation and arrest.
In addition to accepting illegal bribes, Diaz also engaged in drug trafficking while with the BPD. On September 20, 2012, while on duty, Diaz stopped a vehicle operated by two individuals from Yakima, Washington and used a BPD dog handler and police dog to search the vehicle. The search uncovered an ice chest containing approximately 10 pounds of methamphetamine divided into multiple bags. The BPD dog handler did not seize any of the drugs from the vehicle, but turned the scene over to Diaz and his partner to secure the methamphetamine and oversee the investigation of the incident. A week later, Diaz booked approximately one pound of methamphetamine from the vehicle stop into evidence. Diaz and his partner maintained possession of the remaining nine pounds of methamphetamine, and they ultimately sold it for their own personal gain.
According to the plea agreement, Diaz also filed a joint income tax return for the calendar year 2012 that falsely reported total income of $168,485 and did not include additional income of at least $97,900.
Acting U.S. Attorney Talbert stated: “The defendant attempted to take advantage of the trust placed in law enforcement officers for his personal gain. Law enforcement officers who accept bribes put the public and other law enforcement officers in danger. We appreciate the full cooperation of the Bakersfield Police Department and Chief Williamson, as well as our federal partners, in the investigation of this case.”
“Law enforcement officers who abuse their authority for personal gain betray the community they have been sworn to protect,” stated DEA Special Agent in Charge John J. Martin. “DEA is committed to working with our law enforcement partners to hold those accountable who participate in criminal activity that tarnishes the badge.”
“When individuals working in an official capacity violate the trust of their communities by abusing that power, they undermine the hard work of the entire law enforcement community,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “In exchange for cash, Detective Damacio Diaz agreed to tip-off and protect a known drug dealer. IRS CI followed the funds in his accounts and determined how much of the illegal proceeds did not make it to his tax returns. IRS-CI will continue to work with our law enforcement partners to ensure that those who attempt to illegally profit from their trusted positions are brought to justice.”
“The public rightfully expects every law enforcement officer to obey all laws they are sworn to enforce. Damacio Diaz’s illegal activities were in conflict with public safety, the law, and the safety of his fellow officers,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Such illegal and dangerous activity is not tolerable—especially when committed by an officer sworn to protect and service his community—and the FBI will continue to work with its partners to ensure any officer who engages in illegal activities and damages public trust in law enforcement faces justice.”
Diaz has also agreed to the forfeiture of $128,000, which constitutes property which was derived from, or is traceable to the proceeds obtained directly or indirectly from the commission of his criminal conduct. This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Bakersfield Police Department. Assistant United States Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.
Diaz is scheduled to be sentenced by Judge Lawrence J. O'Neill on September 26, 2016. Diaz faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Five Cleveland mail carriers indicted for conspiring to deliver shipments of marijuanaRead the Press Release
Five U.S. Postal carriers were charged with conspiring to distribute marijuana after helping arrange shipments of marijuana shipped via the U.S. mail and gave them to another drug dealer, said Carole S. Rendon, Acting U.S. States Attorney for the Northern District of Ohio
Named in the 11-count indictment are Aaron L. Kelly, 28, Dartagnan B. Mitchell, 28, Tamika S. Embry, 32, Devon Blake, 25 and Rashon Blake, 25, all of Cleveland.
Count 1 of the indictment charges all five defendants with conspiracy to possess with the intent to distribute a controlled substance between May and July 2015. Count 2 through 6 charge the defendants individually with public corruption violations for accepting things of value in return for official actions in relation to their jobs. Count 7 through 11 charge the defendants individually with possession with intent to distribute marijuana.
The five postal carriers informed Kevin Collins of their work schedules and addresses on their respective routes. Collins then arranged for packages of marijuana to be shipped to addresses on the routes of the defendants and sent them when he knew the defendants were scheduled to be working, according to the indictment.
Blake, Blake, Embry, Kelly and Mitchell took the parcels containing marijuana and, instead of delivering them to the listed addresses, gave the packages directly to Collins. They often improperly scanned or did not scan the marijuana packages in an effort to disguise the package’s delivery status, according to the indictment.
Collins paid cash to the defendants in return for their actions, according to the indictment.
Collins has pleaded guilty to charges of conspiracy to possess with intent to distribute marijuana and using firearm during drug trafficking crime. He is awaiting sentencing.
“These mail carriers used their positions not to serve the public, but to be spokes in a drug-trafficking organization,” Rendon said. “They violated the trust of the public and their employer, and now must answer to criminal charges.”
U.S. Postal Service Office of Inspector General Special Agent in Charge of the Eastern Area Field Office Monica S. Weyler, said: “The vast majority of the nation’s 400,000 postal employees are honest, hard-working individuals. It is troubling when a few of those employees choose to violate the trust given to them to use their positions for personal gain. These investigations show that USPS OIG special agents and postal inspectors will work diligently to find those few employees who choose to deliver drugs instead of the mail, and will seek their criminal prosecution and removal from the Postal Service. The employees named in these charges threw away their federal career for a few hundred dollars. Other employees who are engaging in this conduct should ask themselves, is it worth it? To report postal employee misconduct or criminal activity, contact special agents at 888-USPS-OIG or www.uspsoig.gov.”
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.
The case is being prosecuted by Assistant U.S. Attorneys Matthew B. Kall and Daniel J. Riedl. The investigation was conducted by the U.S. Postal Inspection Service and Office of Inspector General, Cleveland.
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.
Final Bakersfield Defendants Plead Guilty in Bank Fraud ConspiracyRead the Press Release
FRESNO, Calif. — Edgar Alexander Gomez, 41, and Jennifer Grace Barthel, 36, both of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, Acting United States Attorney Phillip A. Talbert announced. Gomez additionally pleaded guilty to aggravated identity theft.
According to court documents, between July and September 2012, Gomez and Barthel stole identity documents from the U.S. mail, including driver's licenses, social security cards, and credit and debit cards. On several occasions, Gomez and Barthel attempted to open bank accounts at federally insured financial institutions using the identities of people whose mail they had stolen. In connection with one of their attempts to fraudulently open bank accounts, Gomez and Barthel attempted to negotiate a check after forging the payee’s signature.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex identity fraud schemes and to protect postal customers' mail and personal information from theft.”
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorneys Megan Richards and Christopher Baker are prosecuting the case.
Co-defendant Augustine Castro Salazar, 47, also of Bakersfield, pleaded guilty on November 16, 2015, to theft of U.S. mail. In his plea agreement, Salazar admitted that he and Gomez, on five occasions in August 2012, broke open and stole mail from mail boxes at several U.S. Postal Service facilities in Bakersfield. Salazar remains in custody awaiting sentencing.
Gomez and Barthel are scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on September 26, 2016. They face a maximum statutory penalty of 30 years in prison and a $1 million fine for conspiracy to commit bank fraud. Gomez additionally faces a mandatory minimum sentence of two years in prison for aggravated identity theft. Salazar is scheduled to be sentenced on July 25, 2016, and faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fall River Woman Arrested for Identity Theft and Theft of Social Security BenefitsRead the Press Release
BOSTON – A Jamaican woman living in Fall River was arrested today for using her sister’s identity to enter the United States and collect over $100,000 in Social Security benefits.
Sandra McDonald, 51, was charged in a criminal complaint with aggravated identity theft, theft of public money, passport fraud, and falsely representing a Social Security number. She is scheduled to appear in U.S. District Court in Boston today at 2:30 p.m.
According to the criminal complaint, McDonald was born in Jamaica. In 1990, McDonald obtained a U.S. resident alien card under her sister’s name, but with her own photograph and fingerprint on the card. Shortly after entering the United States under her sister’s identity, McDonald obtained a Social Security card, also in her sister’s name. It is also alleged that in 1996, McDonald applied for Social Security Supplemental Security Income benefits under her sister’s identity, and to date she has received more than $134,000 in benefits illegally.
McDonald also obtained a Massachusetts driver’s license in her sister’s name, but with her own photo on it. In 2008, McDonald used her sister’s identity to apply for a passport for her own son. In 2012, McDonald obtained a Massachusetts state ID card in the name of a third woman.
The charge of aggravated identity theft provides for a mandatory term of two years in prison. The charges of passport fraud and theft of public money each provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of misrepresenting a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra un Centro de Ancianos y Rehabilitación en CaliforniaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia llegó hoy a un acuerdo con Villa Rancho Bernardo Care Center (VRB, por sus siglas en inglés), un centro de ancianos y rehabilitación en San Diego. El acuerdo resuelve la investigación de VRB liderada por el Departamento de Justicia en cuanto a su discriminación contra individuos que no son ciudadanos de los EE. UU. pero que sí cuentan con autorización para trabajar, lo cual representa una vulneración de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
La investigación del departamento encontró que VRB había discriminado a residentes permanentes legales al requerir que presentaran documentos específicos para demostrar su autorización para trabajar, mientras que permitía a ciudadanos estadounidenses que presentaran cualquier documento válido de autorización para trabajar que quisieran. En concreto, durante los procesos de entrevista y contratación, incluyendo en ciertos anuncios de trabajo virtuales, VRB exigió a residentes permanentes legales que presentaran una tarjeta de residencia permanente (a la que se suele llamar “tarjeta verde”). Los residentes permanentes legales no están obligados a enseñar sus tarjetas de residencia permanentes a empleadores para poder trabajar. Como todo trabajador, pueden presentar los documentos válidos de su libre elección de las listas de documentos aceptables del Departamento de Seguridad Nacional para establecer su identidad y autorización para trabajar. Por ejemplo, los residentes permanentes legales pueden establecer su autorización para trabajar al presentar un documento de identificación estatal o federal y una tarjeta de seguro social sin restricciones.
En virtud del acuerdo de resolución, VRB pagará $24,000 en sanciones civiles a los Estados Unidos, participará en la capacitación sobre la disposición antidiscriminatoria de la INA brindada por el departamento y se someterá a los requisitos de supervisión.
“La División de Derechos Civiles se compromete a asegurar que los individuos con autorización para trabajar en los Estados Unidos no se enfrenten a barreras ilícitas o discriminatorias,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal, Vanita Gupta, Directora de la División de Derechos Civiles. “Es esencial que los empleadores revisen sus prácticas de verificación de la elegibilidad para trabajar para asegurarse de que éstas cumplan con la Ley.”
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración (OSC, por sus siglas en inglés) es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía, estatus migratorio y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad de empleo; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias federales, llame a la línea directa de la OSC para trabajadores al 1‑800‑255‑7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario virtual gratuito en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Los aspirantes o empleados que creen haber sido víctimas de: requisitos documentales diferentes por motivos de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen; o discriminación por motivos de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben comunicarse con la línea directa de la OSC para trabajadores para pedir ayuda.
Deloitte Consulting LLP Agrees to Pay $11 Million for Alleged False Claims Related to General Services Administration ContractRead the Press Release
The Department of Justice announced today that Deloitte Consulting LLP (Deloitte) has agreed to pay $11.38 million to resolve allegations under the False Claims Act that it submitted false claims under a General Services Administration (GSA) contract. Deloitte is a nationwide consulting company headquartered in New York City.
“Contractors are expected to deal fairly with federal agencies when receiving taxpayer funds,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As this settlement demonstrates, we will take action against those who knowingly fail to live up to the terms of their government contracts.”
In 2000, GSA awarded Deloitte a contract for the provision of information technology services. The contract required Deloitte to reduce the prices it charged the government if it offered lower prices to specific commercial customers during the course of the contract. This settlement resolves allegations that between 2006 and 2012, Deloitte failed to comply with the price reductions clause in its contract, resulting in government customers paying more for Deloitte’s services than comparable commercial customers.
“American taxpayers deserve fair deals and prices from GSA contractors,” said GSA Inspector General Carol Fortine Ochoa. “I appreciate the hard work and dedication that led to this significant recovery.”
This case was handled by the Civil Division’s Commercial Litigation Branch and the GSA Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Conspirator Sentenced to over 12 Years in Prison for Robbing Four BanksRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Malcolm Xavier Green, age 24, of Temple Hills, Maryland, today to 154 months in prison followed by three years of supervised release for bank robbery conspiracy, bank robbery, armed bank robbery and brandishing a firearm in relation to a bank robbery. Judge Bennett also ordered Green to pay restitution of $10,593.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Kent County Sheriff John F. Price IV; Loudoun County Sheriff Michael L. Chapman; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, Green and co-defendant Andrew Walker robbed three banks in Maryland and one bank in Virginia. On July 1, 2015, Green and Walker entered the BB&T Bank on Allentown Road in Camp Springs, Maryland. Walker passed a note to a teller demanding money in large and small bills. When the bank teller stated that she did not have large bills, Walker patted his waistband with his hand. The teller believed that this motion was meant to indicate that Walker had a weapon. The teller provided money and the defendants left.
On July 13, the defendants presented a demand note to a teller at the Essex Bank on Ingleside Road in Baltimore. The teller provided cash and the defendants left with approximately $100. A dye pack ignited in Green’s pants, burning his legs and ruining the money.
On July 17, the defendants walked into the BB&T Bank on Cypress Avenue in Millington, Maryland. Green passed the teller a note demanding money, and threatening to come back shooting if his demands were not met. When the teller hesitated, Walker pulled out a gun from his waistband, brandishing it several times. The teller provided cash and the defendants left.
On July 24, 2015, the defendants entered the BB&T Bank in Lovettsville, Virginia. Green brandished a gun and gave the teller a note demanding money and no dye packs. The teller provided money and the defendants left.
The total amount that the defendants stole from the banks was in excess of $10,590.
Investigators identified the defendants through fingerprint analysis on a robbery note, law enforcement databases and surveillance footage of the robberies. Green and Walker were arrested on August 3, 2015.
Andre Antoine Walker, age 23, of Temple Hills, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on July 21, 2016 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Prince George’s County Police Department, Kent County Sheriff’s Office, Loudoun County Sheriff’s Office and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked the Loudoun County Commonwealth’s Attorney’s Office for their assistance, and Assistant United States Attorney Aaron S. J. Zelinsky, who prosecuted the case.
California Man Pleads Guilty to Defrauding Investors of More Than $550,000Read the Press Release
ROCKFORD — A California man pleaded guilty today before U.S. District Judge Philip G. Reinhard to wire fraud. According to the written plea agreement, TRAVIS OLIVER, 39, admitted to defrauding investors by making false representations regarding their investments in Electus Asset Holdings.
In the plea agreement, Oliver admitted that he was the sole managing member of Electus Asset Holdings, and that both he and his co-defendant, TODD C. SMITH, 48, of Rockford, engaged in a scheme between July 15, 2009, and March 2012, to defraud investors. Oliver admitted that he falsely represented to potential investors that their investments would be returned in one year, yielding a guaranteed rate of interest per month, and that the funds could be withdrawn at any time without penalty. Oliver further admitted that he knew a majority of the investors’ funds was used to pay for his own personal expenses and other items, including sales commissions paid to Oliver and Smith.
Oliver further admitted that in order to conceal his scheme and prevent the investors from demanding the return of their investments, he used funds from new investors to pay interest and principal to prior investors in Electus Asset Holdings and in a previous investment Oliver had offered. Oliver admitted that he had mailed monthly statements and IRS forms to investors that falsely stated the investors had earned interest on their investments.
According to the plea agreement, when investors requested the return of their interest and principal, Oliver made false statements and promises to conceal the fact the investors’ money had been spent or lost in high risk investments, including that investors’ checks were going to be issued shortly, that their checks were lost in the mail, and that investors’ funds had been invested in a company whose assets had been frozen by the Federal Trade Commission.
Wire fraud carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000 or twice the loss or twice the gain derived from the offense, whichever is greater. Sentencing is set for September 19, 2016, at 9:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Illinois Secretary of State's Securities Department assisted in the investigation.
As to co-defendant Todd C. Smith, the public is reminded that an indictment contains only charges and is not evidence of guilt. Smith is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.