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31 May 2016
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.
Businessman Charged with Sex Trafficking a MinorRead the Press Release
PROVIDENCE, R.I. – Lewis Valenti, 41, a West Kingston, R.I., businessman with residences in Reading, Mass., and East Greenwich, R.I., made an initial appearance in U.S. District Court in Providence today on a criminal complaint charging him with conspiracy to transport a minor interstate for prostitution and transporting a minor interstate for prostitution.
U.S. District Court Magistrate Judge Lincoln D. Almond ordered Valenti released on $50,000 unsecured bond to home confinement at his Massachusetts residence, with electronic monitoring.
Earlier this month, Kedwin Vargas, 25, and Rene A. Laureano, 30, of Roxbury, Mass., were arrested and ordered detained in this matter. Vargas and Laureano are charged by way of federal criminal complaints with conspiracy to transport a minor interstate for prostitution and transporting a minor interstate for prostitution.
The charges against Valenti, Vargas and Laureano are announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to court documents, it is alleged that in March 2016, Lewis Valenti contacted Rhode Island State Police and alleged that Kedwin Vargas was attempting to extort him by threatening to provide a video and audio recording to his family which contained information regarding sexual encounters he allegedly had with a minor female in exchange for payment. An investigation by Rhode Island State Police and the FBI revealed numerous text messages and cell phone conversations between Vargas and others with Lewis, in which it is alleged that Vargas is identified as the person allegedly attempting to extort $10,000 in cash from Valenti.
According to court documents, the investigation revealed that more than a year ago, Vargas allegedly began posting ads on backpage.com offering a minor female for prostitution. It is alleged that on numerous occasions, Laureano, who was previously employed at Valenti’s agriculture business in West Kingston, R.I., would drive the female to meet with customers, including Valenti. It is alleged in court documents that Valenti admitted to investigators that he had sexual contact with the female on numerous occasions over the past two years at his East Greenwich apartment and at several local hotels.
A criminal complaint is merely an allegation 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.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
The Warwick, R.I., and Boston Police Departments assisted the FBI and Rhode Island State Police in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Broward Resident Sentenced to Prison for his Participation in a Jamaica Based Lottery Fraud SchemeRead the Press Release
A Broward County resident was sentenced to prison today for his role in a Jamaica based telemarketing fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Raymond Moss, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Delroy Drummond, 25, of Hollywood and Miami Gardens, was sentenced to 41 months’ imprisonment, to be followed by three years of supervised release. Drummond was also ordered to pay $421,411 in restitution for his role in a Jamaica based lottery fraud scheme. Drummond previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349.
According to documents and information presented in court, beginning in or about April 2015, Drummond’s co-conspirators contacted elderly victims in the United States and falsely informed them that they had won a lottery. These co-conspirators told victims they had to pay several thousand dollars in taxes and fees in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Drummond.
In September 2013, Drummond was contacted in Miami, Florida, by law enforcement regarding a package, which was sent through the mail, containing money from a victim of the fraudulent scheme. At that time, Drummond was confronted with the fact that he was participating in a lottery scheme and was warned by law enforcement to stop receiving money from victims of telemarketing fraud.
In April 2015, Drummond obtained money wired to him under a fictitious name from a victim who had been falsely told he/she had won a $2.5 million lottery prize. Drummond used fraudulent identification in order to receive these funds. In May 2015, Drummond obtained money wired to him under a fictitious name from another victim who was falsely informed he/she had won a lottery prize. Between April 2015 and December 2015, Drummond received numerous packages containing money via the United States Mail, Federal Express, and United Parcel Service from multiple victims located throughout the United States.
Mr. Ferrer commended the investigative efforts of USPIS, Homeland Security Investigations, U.S. Marshal Service, Broward Sheriff’s Office Narcotics Interdiction Task Force and the Miami Dade Police Department Economic Crimes Unit. The case was prosecuted by Assistant United States Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Attorney General Presents Irving Police Department Detective with Award at National Missing Children's Day CeremonyRead the Press Release
DALLAS — A detective with the Irving Police Department, Joe DelFierro, was honored Wednesday by Attorney General Loretta E. Lynch at the Department of Justice’s Office of Juvenile Justice and Delinquency Prevention’s National Missing Children’s Day Ceremony held in Washington, D.C., announced U.S. Attorney John Parker of the Northern District of Texas and Chief Larry Boyd of the Irving Police Department.
Detective DelFierro was presented the Missing Children’s Law Enforcement Award, which is awarded to a law enforcement officer who made a significant investigative or program contribution to the safety of children. Detective DelFierro was recognized for his work in recovering a group of young girls, ages 11 to 14, who ran away from a mental health facility and were subsequently prostituted by two sex traffickers. Those sex traffickers were federally prosecuted in the Northern District of Texas, where they were convicted and sentenced to federal prison terms of 293 months and 188 months.
“Detective DelFerrio's relentless and noble efforts to identify and neutralize those responsible for these girls’ horrific experience are profoundly inspiring,” said U.S. Attorney Parker. “I am honored to join in recognizing his tireless service on the front lines of protecting the most vulnerable among us.”
“We are all proud of Detective DelFerrio for receiving this well-deserved recognition,” said Chief Larry Boyd. “It was through his dedicated efforts that these girls were rescued from a desperate and dangerous situation. The girls can now start recovering from their traumatic experience with the assurance that the predators who victimized them will be locked away for a very long time.”
President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s day to remember Etan Patz, a six-year-old boy who disappeared from a New York City street corner on May 25, 1979. Missing Children’s Day honors his memory and the memories of children still missing, and every year, citizens, public agencies and private organizations gather to commemorate the day and renew their commitment to find missing children.
“The extraordinary people we honor today remind us that our nation has no more solemn obligation and no greater responsibility than the protection of our children,” said Attorney General Lynch. “The Department of Justice is proud to stand with them – and with law enforcement officers, advocates and families throughout the country – as we work toward a safer and brighter future for all our young people.”
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27 May 2016
Waynesville Apartments Owner Pleads Guilty to $18.2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of apartment complexes in Pulaski County, Mo., pleaded guilty in federal court to an $18.2 million fraud scheme.
James J. Laughlin, 74, of Waynesville, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, May 26, 2016, to a federal information that charges him with making false statements and reports on a loan application.
Laughlin, one of the operators of 4-J Apartments, admitted that he provided false information to the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) in order to obtain an $18,219,400 loan in 2012 for the operation and maintenance of 232 apartments and complexes in Pulaski County.
Laughlin involved Richard Newman DeLong, 50, of Newburg, Mo., an employee of Brookshire Concrete, in the fraud scheme. Delong, who was fired by the company for his role in the scheme, worked with Laughlin to make it appear that Brookshire Concrete was renting apartments from 4-J. This would allow 4-J to artificially inflate its occupancy levels in order to qualify for the FHA loan.
Delong, while employed by Brookshire Concrete, issued numerous checks that were made payable to 4J Apartments. These checks contained the forged signature of the company’s owner.
Laughlin submitted rent roll documents to FHA and HUD that indicated Brookshire Concrete was renting 20 apartments from 4-J to house some of its workers. Laughlin admitted, however, that none of Brookshire’s employees ever lived in any of 4-J’s apartments. Laughlin repaid the monies received from Brookshire Concrete by issuing checks from 4-J to Brookshire Concrete, ostensibly for concrete work. These gave the appearance that rent was being paid by Brookshire Concrete while 4-J was paying for concrete work in return.
According to the plea agreement, Laughlin had been denied funding by HUD in 2010 and again in 2012 because the occupancy rates at 4-J’s apartments were below 95 percent. HUD noted that the loan would not be approved because there would be insufficient rental income to repay the loan, creating a high risk of default. By inflating occupancy rates with the fraudulent rental roll documents, it appeared that 4-J’s occupancy rate was 95.7 percent; HUD reversed itself and approved Laughlin’s request for funding. The actual occupancy rate was only approximately 86 percent – below the level HUD and FHA set as a condition for approving the loan.
DeLong pleaded guilty to his role in the fraud scheme and is scheduled to be sentenced on June 15, 2016.
Laughlin must forfeit to the government $18,219,400. Under federal statutes, Laughlin is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Department of Housing and Urban Development, Office of Inspector General.
Washington, DC Man Sentenced to 75 Years in Prison for Armed Robbery and Carjacking ShootingsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anthony Terrell Cannon, age 26, of Washington, D.C., today to 75 years in prison, followed by five years of supervised release, for conspiracy, robbery, carjacking, and two counts of discharging a gun during a crime of violence, and interstate transportation of a stolen vehicle, in connection with an armored car robbery and a carjacking in which a victim was shot in the arm and head. Cannon was convicted on September 12, 2014.
Judge Chasanow ordered that 50 years of today’s sentence is to be served consecutive to the 60 year sentence Cannon previously received in the U.S. District Court for the Eastern District of Virginia for other crimes. Cannon has also been sentenced to life in prison in the Prince George’s County Circuit Court.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Alan Goldberg of the Takoma Park Police Department; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the evidence presented at Cannon’s two week trial, on October 26, 2012, Cannon, Tonnie Floyd, and Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, driving a stolen Jeep, followed a Garda Cash Logistics armored transport vehicle to the Cricket store located in the 1300 block of University Boulevard East, Takoma Park, Maryland. A Garda employee exited the armored truck, went into the store and picked up a bag containing $3,911. As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The Garda employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the co-conspirators picked up the money bag. The co-conspirators ran back to the stolen Jeep. As the co-conspirators drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.
The co-conspirators left the Jeep in a neighborhood nearby because it had a flat tire as a result of the shooting. They saw a man entering a vehicle, and shot the man in the arm and head, causing permanent and life-threatening bodily injury, then stole his vehicle. They drove the vehicle into the District of Columbia, where they set it on fire.
Police evidence personnel recovered blood containing DNA of Floyd from the back seat of the Jeep. Floyd went to a hospital in the District of Columbia for medical treatment of his gunshot wound on October 26, 2012 at approximately 8:20 p.m. The Garda money bag was found in the Jeep and the bag had Freeman’s finger and palm prints upon it. A drink bottle was recovered from the front console area of the Jeep Cherokee that had DNA of Cannon on the top area that would have come into contact with his mouth when drinking.
The evidence also included a recorded call between Cannon and an inmate at Prince George’s County Detention Center in which Cannon acknowledged his participation in the crimes and expressed disappointment in leaving an evidence trail in the stolen Jeep.
Co-conspirator Tonnie Floyd, age 23, of Washington, D.C., previously pleaded guilty to robbery, and discharging a gun during the robbery and carjacking and was sentenced to 222 months in prison. Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 24, also of Washington, D.C., pleaded guilty to the same offenses. Freeman and the government have agreed that if the Court accepts his plea, Freeman will be sentenced to between 241 months and 30 years in prison at his sentencing on June 6, 2016.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department, the Takoma Park Police Department and the Prince George’s County and Montgomery County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who prosecuted the case.
Virginia Man Indicted for Conspiracy to Provide Material Support to ISILRead the Press Release
Mahmoud Amin Mohamed Elhassan, 26, of Woodbridge, Virginia, was indicted by a grand jury late yesterday on charges of conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization; aiding and abetting the provision of material support to ISIL; and making false statements to the FBI.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
According to the indictment, from on or about Aug. 1, 2015, until Jan. 15, 2016, Elhassan unlawfully and knowingly conspired with Joseph Hassan Farrokh to provide material support or resources to ISIL. In furtherance of the conspiracy, on Jan. 15, 2016, Elhassan drove Farrokh to Richmond, Virginia, in order to enable Farrokh to fly to overseas to join ISIL.
According to the indictment, Elhassan also attempted to provide material support or resources to ISIL by aiding and abetting Farrokh’s attempt to join ISIL. Elhassan’s aiding and abetting included introducing Farrokh to an individual that Elhassan believed could facilitate Farrokh’s travel overseas; driving Farrokh from Farrokh’s home to Richmond so that Farrokh could embark on his travel to join ISIL; and making false statements to the FBI about Farrokh’s travel in order to hinder the government’s investigation of Farrokh’s travel.
According to the indictment, Elhassan knowingly, unlawfully and willfully made material false, fictitious and fraudulent statements and representations in a matter involving international terrorism, including: On Jan. 15, 2016, Elhassan falsely stated to FBI agents that Farrokh had flown out of Dulles Airport earlier that day on a flight to California to attend a funeral; that Farrokh had said that he would be back in about two weeks; that neither he nor Farrokh supported ISIL; and neither he nor Farrokh ever tried to find someone to help them get to ISIL.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty.
If convicted, Elhassan faces a maximum sentence of 48 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The case is being investigated by the FBI Washington Field Office Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Dennis M. Fitzpatrick and Gordon D. Kromberg of the Eastern District of Virginia, along with Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
Valencia County Man Sentenced to Federal Prison for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Erik Molinar-Gonzalez, 32, of Los Lunas, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 70 months in prison followed by four years of supervised release for his heroin trafficking conviction.
Molinar-Gonzalez was arrested in Sept. 2015, and was charged by criminal complaint with heroin and methamphetamine trafficking offenses. According to the complaint, on Sept. 9, 2015, New Mexico State Police (NMSP) officers found a kilogram of heroin in a vehicle during a traffic stop on Interstate 40 in Albuquerque. Investigation revealed that the heroin was to be delivered to Molinar-Gonzalez later that same day. Later that day, agents of Homeland Security Investigations (HSI) and NMSP officers arrested Molinar-Gonzalez and executed searches of his vehicle and residence. The officers found 7.35 grams of methamphetamine in his vehicle and 45.5 grams of methamphetamine and 9.17 grams of heroin in his residence.
Molinar-Gonzalez was indicted on Oct. 7, 2015, and charged possessing heroin and methamphetamine with intent to distribute. On Jan. 12, 2016, Molinar-Gonzalez pled guilty to possessing heroin with intent to distribute.
This case was investigated by the Albuquerque office of HSI and the NMSP. Assistant U.S. Attorney David M. Walsh prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Undocumented Alien Sentenced to 15 Months’ Imprisonment for Assaulting a Douglas Border Patrol AgentRead the Press Release
TUCSON – On May 27, 2016, Juan Pablo Vasquez-Campos, 38, of Aguas Calientes, Mexico, was sentenced by U.S. District Judge Cyndy K. Jorgenson to 15 months’ imprisonment to be followed by three years of supervised release. Vasquez-Campos had previously pleaded guilty to assault on a federal officer and illegal re-entry.
Vasquez-Campos resisted arrest and scuffled with a Border Patrol agent in the desert terrain near Douglas, Ariz. During the struggle, Vasquez-Campos struck the agent with his elbow in an effort to avoid apprehension.
The investigation in this case was handled by the United States Border Patrol. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-16-00533-TUC-CKJ
RELEASE NUMBER: 2016-051_Vasquez-Campos
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
U.S. Servicemember Admits to Illegally Retaining Photos Taken Inside Nuclear Submarine and Impeding InvestigationRead the Press Release
Kristian Saucier, 29, of Arlington, Vermont, pleaded guilty today before U.S. District Judge Stefan R. Underhill of the District of Connecticut to one count of unauthorized possession and retention of national defense information.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Deirdre M. Daly of the District of Connecticut.
According to court documents and statements made in court, from September 2007 to March 2012, Saucier served as a machinist’s mate aboard the USS Alexandria, which is a U.S. Navy Los Angeles-class nuclear attack submarine based at the Naval Submarine Base New London in Groton, Connecticut. On at least three separate dates in 2009, Saucier used the camera on his personal cellphone to take photographs of classified spaces, instruments and equipment of the USS Alexandria, documenting the major technical components of the submarine’s propulsion system.
On Jan. 19, 2009, Saucier took two photos, one of the auxiliary steam plant panel and the other of the reactor compartment viewed through a portal. On March 22, 2009, Saucier took two photos that, when placed side by side, provided a panoramic array of the maneuvering compartment, the room from which the propulsion system of the boat is operated. On July 15, 2009, Saucier took two photos documenting the reactor head configuration of the nuclear reactor and a view of the reactor compartment from within that compartment.
Saucier had a secret clearance and knew that the photos depicted classified material and that he was not authorized to take them. He retained these photos and failed to deliver them to any officer or employee of the United States entitled to receive it.
The investigation began in March 2012 when Saucier’s cellphone was found at a waste transfer station in Hampton, Connecticut. Saucier was interviewed by the FBI and Naval Criminal Investigative Service (NCIS) in July 2012 and was confronted with the classified images from his phone. Following that interview and in an effort to impede the federal investigation, Saucier returned to his home and immediately destroyed a laptop computer, a personal camera and the camera’s memory card. Pieces of a laptop computer were subsequently found in the woods on a property in Connecticut owned by a member of Saucier’s family.
Saucier was arrested on a criminal complaint on May 28, 2015, and was subsequently indicted.
Judge Underhill scheduled sentencing for Aug. 19, 2016, at which time Saucier faces a maximum sentence of 10 years in prison and a fine of up to $250,000. He is released on a $100,000 bond.
Saucier is currently enlisted in the U.S. Navy as a Petty Officer First Class assigned to the Naval Support Activity Base, Saratoga Springs, New York. He is awaiting an administrative separation board proceeding.
This matter has been investigated by the FBI and NCIS. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss of the District of Connecticut and Trial Attorney Will Mackie of the National Security Division’s Counterintelligence and Export Control Section, with the assistance of the U.S. Attorney’s Office of the Northern District of New York.
U.S. Servicemember Admits to Illegally Retaining Photos Taken Inside Nuclear Sub, Impeding InvestigationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Assistant Attorney General for National Security John P. Carlin announced that KRISTIAN SAUCIER, 29, of Arlington, Vt., pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of unauthorized possession and retention of national defense information.
According to court documents and statements made in court, from September 2007 to March 2012, SAUCIER served as a machinist’s mate aboard the USS Alexandria, which is a U.S. Navy Los Angeles-class nuclear attack submarine based at the Naval Submarine Base New London in Groton, Conn. On at least three separate dates in 2009, SAUCIER used the camera on his personal cellphone to take photographs of classified spaces, instruments and equipment of the USS Alexandria, documenting the major technical components of the submarine’s propulsion system.
On January 19, 2009, at approximately 4:00 a.m., SAUCIER took two photos, one of the auxiliary steam plant panel and the other of the reactor compartment viewed through a portal. On March 22, 2009, at approximately 1:30 a.m., SAUCIER took two photos that, when placed side by side, provided a panoramic array of the Maneuvering Compartment, the room from which the propulsion system of the boat is operated. On July 15, 2009, at 12:47 p.m., SAUCIER took two photos documenting the reactor head configuration of the nuclear reactor and a view of the reactor compartment from within that compartment.
SAUCIER had a Secret clearance and knew that the photos depicted classified material and that he was not authorized to take them. He retained these photographs and failed to deliver them to any officer or employee of the U.S. entitled to receive it.
The investigation began in March 2012 when SAUCIER’s cellphone was found at a waste transfer station in Hampton, Conn. SAUCIER was interviewed by the Federal Bureau of Investigation and Naval Criminal Investigative Service in July 2012 and confronted with the classified images from his phone. Following that interview and in an effort to impede the federal investigation, SAUCIER returned to his home and immediately destroyed a laptop computer, a personal camera and the camera’s memory card. Pieces of a laptop computer were subsequently found in the woods on a property in Connecticut owned by a member of SAUCIER’s family.
SAUCIER was arrested on a criminal complaint on May 28, 2015 and was subsequently indicted.
Judge Underhill scheduled sentencing for August 19, 2016, at which time SAUCIER faces a maximum term of imprisonment of 10 years and a fine of up to $250,000. He is released on a $100,000 bond.
SAUCIER is currently enlisted in the U.S. Navy as a Petty Officer First Class assigned to the Naval Support Activity Base, Saratoga Springs, N.Y. He is awaiting an administrative separation board proceeding.
This matter has been investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss, and Trial Attorney Will Mackie from the Justice Department’s National Security Division, with the assistance of the U.S. Attorney’s Office for the Northern District of New York.
U.S. Reaches ADA Settlement with Village of Byesville, OHIORead the Press Release
COLUMBUS, Ohio – The United States has reached a settlement agreement with the Village of Byesville, Ohio in Guernsey County after initiating a compliance review under the Americans with Disabilities Act (ADA).
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, announced the settlement finalized last week.
The U.S. Attorney’s Office for the Southern District of Ohio initiated a compliance review in the village after receiving a citizen complaint stating that many buildings and facilities in the village were inaccessible to individuals with disabilities.
Specifically, the review included: the Byesville Village Hall, sidewalks and curb cuts near the Village Hall, the Byesville Village Park and Byesville Water Treatment Plant. Based on its review, the United States concluded that qualified individuals with disabilities are excluded from participation in or denied the benefits of many of Byesville’s programs, services or activities.
The settlement agreement sets out general and specific remedies, which include making facilities readily accessible to individuals with disabilities, by making modifications to sidewalks, curb ramps, entry and internal doors, signage, door knobs, counters, maneuvering clearance, restrooms and the parking lot at Village Hall, among other things.
Changes to be made at the Village Park will include accessible parking spaces with signage, modifications to the vending machines and accessible routes to picnic tables, benches, drinking fountains, park shop, park pavilion and gazebo.
Remedies at the Water Treatment Plant include modifications to the restroom and parking lot spaces, slope and access.
“This settlement represents our commitment both to ensuring full compliance with the ADA and working cooperatively with local governments and businesses to guarantee that compliance, thereby ensuring equal access for all Americans,” Acting U.S. Attorney Glassman said.
The agreement will remain in effect for three years and is effective immediately.
Acting U.S. Attorney Glassman commended Byesville Mayor Jay Jackson and Brennan Dudley, Village Administrator, for their cooperation, as well as Assistant U.S. Attorney John J. Stark and Special Assistant U.S. Attorney Leah M. Wolfe, who are representing the United States in this matter. He also recognized the efforts of Department of Justice Division of Civil Rights Attorney Elizabeth Johnson and Department of Justice Architect Thomas Fodor.
Two Men Sentenced for Wildlife TraffickingRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Billy Michael Reed, 61, of Benton, Illinois, and Matthew Michael Adams, 32, of Arad, Alabama, have pled guilty and have been sentenced on charges of trafficking wildlife under the Lacey Act. On March 21, 2016, and on May 23, 2016, the United States District Court in Benton, Illinois sentenced Reed and Adams, respectively, to one year of probation and ordered each to pay $2,500 in restitution to the Illinois Department of Natural Resources,
Court proceedings indicated that the defendants, who operated M&M Outfitters, an outfitting and guide business, conducted the business for the hunting deer without the required permits and had such deer transported outside the state to Pennsylvania. The Illinois Wildlife Code requires that, before any person provides or offers to provide, for compensation, outfitting services for deer hunting, the person must apply for and receive a permit from the Illinois Department of Natural Resources. Federal law prohibits the interstate transport of illegally-gotten game.
The case was investigated by the U.S. Fish and Wildlife Service – Office of Law Enforcement and the Illinois Department of Natural Resources – Conservation Police. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
Two California Men Sentenced to Combined 70 months in Federal Prison for Conspiracy to Distribute Oxycodone and HydromorphoneRead the Press Release
BOISE – Michael Kulikoff, 30, and Kenneth Miller, 57, both of California City, California, were sentenced yesterday for their role in a conspiracy to distribute oxycodone and hydromorphone, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Kulikoff to 24 months in prison, three years of supervised release, and ordered him to forfeit $15,000 in cash proceeds. Judge Winmill sentenced Miller to 46 months in prison, three years of supervised release, and ordered him to forfeit $8,000 in cash proceeds. Both Kulikoff and Miller pleaded guilty on March 8, 2016.
According to the plea agreement and court proceedings, Kenneth Miller, Diana Miller, and Crystal Clark sold their prescriptions of oxycodone to Kulikoff. Kulikoff admitted to distributing those and other prescription pills in Boise, Idaho. Kulikoff admitted that he distributed between 500 and 1750 30mg pills of oxycodone to a confidential informant and an undercover officer in Idaho. At sentencing, Judge Winmill found that Miller obstructed justice by threatening a witness in California, and imposed a higher sentence on him.
Co-defendants Diana Miller, 41, and Crystal Clark 43, also of California City, California, were previously sentenced to prison. Diana Miller was sentenced on January 15, 2016, to 15 months in prison, five years of supervised release, and was ordered to forfeit $1,400 in cash proceeds. Crystal Clark was sentenced on April 21, 2016, to 18 months in prison, three years of supervised release, and was ordered to forfeit $8,000 in cash proceeds.
The case was investigated by the Drug Enforcement Administration and the Boise Police Department as an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF partners include the Federal Bureau of Investigation; Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s; Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
The case was initiated and investigated by the Boise Police Department, and the DEA led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Twin Falls Man Sentenced to 40 Months in Federal Prison for Firearm OffensesRead the Press Release
BOISE – Shem Kirk Hansen, 37, of Twin Falls, Idaho, was sentenced yesterday to 40 months in prison for unlawful possession of firearms and possession of a sawed-off shotgun, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Hansen to serve three years of supervised release, to pay a $500 fine, and to forfeit the firearms that he possessed. Hansen pleaded guilty on March 7, 2016.
According to the plea agreement, a state search warrant was served on Hansen’s trailer in Gooding County on September 28, 2015. Law enforcement seized five firearms from the trailer. On October 16, 2015, the defendant was arrested in a vehicle in Hailey, Idaho, and was found to be in possession of three shotguns, one of which was sawed-off. Hansen had previously been convicted of burglary and possession of a controlled substance and was therefore prohibited from possessing any firearms.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Gooding County Sheriff’s Department and the Blaine County Sheriff’s Department.
Three Navy Officers Charged in Expanding Bribery and Fraud SchemeRead the Press Release
Three current and former Navy officers were charged in documents unsealed today for their roles in a massive bribery and fraud scheme involving a Navy contractor.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Acting Director Dermot O’Reilly of the Department of Defense’s Defense Criminal Investigative Service (DCIS), Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of Defense Contract Audit Agency (DCAA) made the announcement.
Retired Navy Captain Michael Brooks, 57, of Fairfax Station, Virginia; Commander Bobby Pitts, 47, of Chesapeake, Virginia; and Lieutenant Commander Gentry Debord, 47, who is based in Singapore, were charged on May 25, 2016, in the Southern District of California. Brooks and Debord were each charged with one count of conspiracy to commit bribery and Pitts was charged with one count of conspiracy to defraud the United States and two counts of obstruction of justice. All of the charges relate to the defendants’ interactions with Leonard Francis, the former CEO of Glenn Defense Marine Asia (GDMA), a defense contracting firm based in Singapore. Brooks and Pitts made their initial appearances today in the U.S. District Court for the Eastern District of Virginia; Debord appeared in U.S. District Court for the Southern District of California. Brooks was allowed to post a $50,000 bond; Pitts was granted a $5,000 bond, ordered to be subject to electronic monitoring and to appear in the Southern District of California on June 10; and Debord was granted a $40,000 bond secured by real property. Debord is scheduled to appear for a preliminary hearing before U.S. Magistrate Judge David Bartick of the Southern District of California on June 9, 2016.
According to the indictment, from June 2006 to July 2008, Brooks served as the U.S. Naval Attaché at the U.S. Embassy in Manila, Philippines. The indictment alleges that in exchange for travel and entertainment expenses, hotel rooms and the services of prostitutes, Brooks used his office to benefit GDMA and Francis, including securinge the quarterly diplomatic clearances for GDMA vessels, which allowed GDMA vessels to transit into and out of the Philippines under the diplomatic clearance of the U.S. Embassy; limited the amount of custom fees and taxes that GDMA was required to pay in the Philippines; and enabled GDMA to avoid inspection of any quantity or type of cargo that it transported. The indictment also alleges that Brooks provided Francis with sensitive Navy information, including billing information belonging to a GDMA competitor and Navy ship schedules.
According to the indictment, from August 2009 to May 2011, Pitts was the Officer in Charge of the Navy’s Fleet Industrial Supply Command (FISC), which was charged with meeting the logistical needs of the U.S. Navy’s Seventh Fleet. The indictment alleges that in exchange for entertainment, meals and the services of a prostitute, Pitts used his position with FISC to interfere with NCIS investigations into GDMA. Pitts allegedly provided Francis with a hard copy of an NCIS report detailing an investigation into GDMA for contract fraud marked “for official use only.” According to the indictment, the report detailed NCIS’ investigative steps and witnesses that NCIS had interviewed. The indictment further alleges that in November 2010, Pitts forwarded to a GDMA employee an internal Navy email discussing details of FISC’s efforts to oversee GDMA’s contracts with the U.S. Navy.
According to the criminal complaint, from November 2007 to August 2013, Debord served in several logistical and supply positions in the Western Pacific. In exchange for cash, hotel stays and the services of prostitutes, Debord allegedly provided Francis with inside Navy information and documents, including information about competitors’ bids and information about an investigation into GDMA billing practices. In an attempt to conceal the true nature of his relationship with Francis, Debord allegedly referred to prostitutes as “cheesecake” or “bodyguards.” The complaint also alleges that Debord schemed with Francis to defraud the Navy through the submission and approval of inflated invoices.
Including those charged yesterday, 13 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including U.S. Navy Captain (Select) Michael Misiewicz, U.S. Navy Capt. Daniel Dusek, Lieutenant Commander Todd Malaki, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense Senior Executive Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 18, 2016, Alex Wisidagama, a former GDMA employee, was sentenced to 63 months and to pay $34.8 million in restitution to the Navy; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to forfeit $95,000 in proceeds for the scheme.
The NCIS, DCIS and DCAA are conducting the ongoing investigation. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Three Individuals Plead Guilty to Firearms Theft, PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JIMMY DON McCOY, JR., age 25, of Tulsa, Oklahoma, and GREGORY McINTYRE, age 19, of Sallisaw, Oklahoma, pled guilty to STEALING FIREARMS FROM A FEDERAL FIREARMS LICENSED DEALER, in violation of Title 18, United States Code, Sections 924(m) and 2, punishable by not more than 10 years imprisonment, up to $250,000.00 fine or both. CHRISTOPHER JORDAN LEE FOREMAN, age 22, of Vian, Oklahoma, pled guilty to Possession of Stolen Firearms, in violation of Title 18, United States Code, Sections 922(j) and 2, punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleged that from on or about August 29, 2015, in the Eastern District of Oklahoma, MCCOY and MCINTYRE did knowingly steal from Gems Gun & Pawn, a federal licensed firearms dealer, firearms and FOREMAN did knowingly possess stolen firearms, all of which had been shipped and transported in interstate commerce either before or after being stolen.
The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco and Firearms.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the pleas and ordered the completion of a presentence investigation reports. The defendants will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Timothy Hammer represented the United States.
Three Indicted for Smuggling Artifacts into U.S. and Citizenship FraudRead the Press Release
ALEXANDRIA, Va. – Ijaz Khan, 42, and Vera Lautt, 56, both of Sante Fe, New Mexico, and Ibrar Khan of Pakistan, were indicted by a federal grand jury yesterday for a conspiracy to defraud the United States and naturalizing and procuring U.S. citizenship by fraud. Ijaz Khan faces additional charges, along with Fahad Khan of Pakistan, for conspiring to smuggle and for smuggling artifacts from Pakistan into the United States, and for conspiring to obstruct justice and for obstructing justice.
According to the indictment, Ijaz Khan and Vera Lautt met on the Internet in 2001. In early 2002, Lautt travelled to Pakistan to meet Ijaz Khan for the first time in person and while there signed marriage documents. Both Ijaz Khan and Lautt submitted fraudulent documents to the U.S. Department of State (DOS) and U.S. Citizenship and Immigration Services (USCIS), which enabled Ijaz Khan to immigrate to the United States in 2003 and later become a naturalized U.S. citizen in 2009. At the time Ijaz Khan signed marriage documents with Lautt, he was in a marital relationship with a Pakistani woman, already had children, and continued to have children with the Pakistani woman during his purported marriage to Lautt. The conspiracy included eleven separate attempts to obtain immigration benefits by fraud, five of which were successful and another five of which are still pending.
According to the indictment, Ijaz Khan allegedly used his fraudulently obtained U.S. citizenship to cause the fraudulent immigration and naturalization of his four oldest children. Khan also assisted with a petition filed on behalf of his brother, Ibrar Khan. The indictment alleges that even before his four oldest children arrived from Pakistan, Ijaz Khan divorced Lautt and returned to Pakistan to obtain marriage documents for his Pakistani wife. Upon his return to the United States, while continuing to live with Lautt, Ijaz Khan allegedly began fraudulently filing for immigration benefits for his mother, his Pakistani wife, and two additional children. The indictment also alleges that Ibrar Khan participated in the conspiracy to defraud USCIS and DOS, and to procure U.S. citizenship by fraud.
According to the indictment, after Ijaz Khan immigrated to the United States, Ijaz Khan, Fahad Khan and others conspired to smuggle Pakistani artifacts into the United States, from approximately 2007 through at least May 2014, Ijaz Khan used his business to facilitate the importation of smuggled Pakistani artifacts that he would then resell at shows, online, and to established customers.
The indictment further alleges that in October 2013, a shipment of Pakistani artifacts was inspected and later administratively seized by Customs and Border Patrol (CBP). After Ijaz Khan became aware of the inspection, he, Fahad Khan and others conspired to submit various false and fraudulent documents to CBP in an attempt to cause CBP to release the shipment. One of the conspirators is John Bryan McNamara, who previously pleaded guilty to conspiring with Ijaz Khan and Fahad Khan to smuggle artifacts into the United States and admitted he made false statements to special agents when questioned about the October 2013 shipment. Ijaz Khan and Fahad Khan are both charged in the indictment with conspiring to and making false statements associated with the criminal investigation and federal grand jury investigation in the Eastern District of Virginia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, and Steven A, Linick, Inspector General, Department of State Office of Inspector General, made the announcement. Assistant U.S. Attorney Katherine Wong and Special Assistant U.S. Attorney Brian D. Harrison are prosecuting the case. The case is being investigated by the Department of Homeland Security’s Homeland Security Investigations, and the Department of State’s Office of Inspector General.
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. 1:16-cr-130 and 1:15-cr-307.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Three Current and Former Navy Officers Charged in Expanding Bribery and Fraud ProbeRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – May 27, 2016
SAN DIEGO, CA – Three current and former U.S. Navy officers appeared in federal court today to face charges that they secretly worked on behalf of foreign defense contractor Leonard Glenn Francis to advance the interests of his company, including instances in which a highly influential captain allowed Francis to ghostwrite official Navy documents and correspondence and submit them as his own.
In exchange, Francis plied the now-retired Captain Michael Brooks, 57, of Fairfax Station, Virginia, with prostitutes, luxury travel, a days-long party in a presidential suite and other gifts. Also charged this week in the massive bribery and fraud scheme were Commander Bobby Pitts, 47, of Chesapeake, Virginia; and Lieutenant Commander Gentry Debord, 47, who is based in Singapore.
The charging documents allege that in return for lavish entertainment and travel expenses, the services of prostitutes and other illicit gifts, the defendants brazenly used their public offices to foist benefit after benefit upon Francis and GDMA, including passing on sensitive, internal U.S. Navy information to advance GDMA’s business interests and advocating for GDMA at every turn.
Brooks and Debord were each charged with one count of conspiracy to commit bribery; Pitts was charged with one count of conspiracy to defraud the United States and two counts of obstruction of official proceedings. All of the charges relate to the defendants’ interactions with Francis, the former CEO of Glenn Defense Marine Asia (GDMA), a defense contracting firm based in Singapore with a decades-long relationship with the U.S. Navy.
Brooks and Pitts made their initial appearances today in the U.S. District Court for the Eastern District of Virginia. Brooks and Pitts made their initial appearances today in the U.S. District Court for the Eastern District of Virginia; Debord appeared in U.S. District Court for the Southern District of California. Brooks was allowed to post a $50,000 bond; Pitts was granted a $5,000 bond, ordered to be subject to electronic monitoring and to appear in the Southern District of California on June 10; Debord was granted a $40,000 bond secured by real property. He is scheduled to appear for a preliminary hearing before U.S. Magistrate Judge David Bartick on June 9, 2016.
According to the indictment, from June 2006 to July 2008, Brooks served as the U.S. Naval Attaché at the U.S. Embassy in Manila, Philippines. In this position, Brooks served as the representative of the Secretary of Defense, the Chairman of the Joint Chiefs of Staff and the United Forces of the United States in Manila and also as the military advisor to the United States Ambassador.
The indictment alleges that in exchange for travel and entertainment expenses, hotel rooms and the services of prostitutes – which Brooks and Francis referred to in code as “chocolate” or “mocha shakes” or “high tea” -- Brooks used his office to benefit GDMA and Francis. In one instance on May 25, 2008, Brooks attended a days-long party Francis hosted for U.S. Navy officials during a port visit to Manila by the USS Blue Ridge with alcohol, prostitutes and lavish hotel accommodations in the presidential suite of the Makati Shangri-La, among other luxuries.
According to the indictment, Brooks secured quarterly diplomatic clearances for GDMA vessels, which allowed GDMA vessels to transit into and out of the Philippines under the diplomatic imprimatur of the U.S. Embassy; he limited the amount of custom fees and taxes that GDMA was required to pay in the Philippines; and enabled GDMA to avoid inspection of any quantity or type of cargo that it transported.
The indictment also alleges that Brooks used his position and influence to advocate for and advance GDMA’s interest and that Brooks allowed Francis and others inside GDMA to ghostwrite U.S. Navy documents and correspondence, which Brooks then submitted as his own, objective work product.
According to the indictment, from August 2009 to May 2011, Pitts was the Officer in Charge of the Navy’s Fleet Industrial Supply Command (FISC), which was charged with meeting the logistical needs of the U.S. Navy’s Seventh Fleet. The indictment alleges Pitts conspired with Francis and others to deprive the Department of the Navy with its right to have its affairs conducted free from corruption, fraud, and obstruction.
In particular, in an effort to obstruct and impede the Department of the Navy’s ability to properly oversee and administer its ship husbanding contracts with GDMA, Pitts allegedly provided Francis with a hard copy of an NCIS report marked “for official use only,” which detailed an investigation by NCIS into GDMA for contract fraud and other improprieties. According to the indictment, the report detailed NCIS’s investigative actions and the witnesses that NCIS had interviewed. The indictment further alleged that in November 2010, Pitts forwarded to a GDMA employee an internal Navy email discussing details of FISC’s efforts to investigate whether GDMA was improperly charging the U.S. Navy for force protection services.
On November 23, 2010, Pitts gave GDMA an internal U.S. Navy email discussing FISC’s intention to contact Thai officials to determine whether GDMA had billed the U.S. Navy for force protection services – such as guards to protect U.S. ships while in port - that the Royal Thai Navy had provided free of charge.
According to a criminal complaint, from November 2007 to August 2013, Debord served in several logistical and supply positions in the Western Pacific. In exchange for cash, hotel stays and the services of prostitutes, Debord allegedly provided Francis with inside Navy information and documents, including information on an investigation into GDMA billing practices.
Debord further instructed GDMA to fraudulently increase its invoices to the U.S. Navy in order to cover the value of cash, hotel rooms, and other things of value provided to Debord. To conceal the true nature of his relationship with Francis, Debord referred to prostitutes as “cheesecake” or “bodyguards.” For example, on October 13, 2008, Debord emailed a GDMA executive with pictures of a woman, commenting: “This is the cheesecake I want…” In November 2008, Debord wrote to a GDMA employee demanding a three-bedroom furnished apartment in Hong Kong: “I need a 3BDR one if you can. Away from sailors but near bars/clubs/cheesecakes.”
“We continue to uncover far-reaching, troubling levels of corruption as this investigation expands,” said U.S. Attorney Laura Duffy. “We will keep going until we are sure we have held accountable every person who traded integrity and honor for parties and prostitutes.”
“Today's charges and arrests are yet another example of the continued dedication by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the Department of Justice to identify and
prosecute those individuals who would abuse their positions of trust within the Department of Defense,” said James B. Burch, Director, Defense Criminal Investigative Service. “The conduct alleged in this investigation is deeply troubling. Defense Criminal Investigative Service and our law enforcement partners will
continue to investigate and seek to prosecute any individual, regardless of position, who would put our mission of 'Protecting America's Warfighters' at risk.”
“The GDMA investigation is moving forward with these arrests but much work remains to be done,” said Andrew Traver, Director of the Naval Criminal Investigative Service. “As we've stressed from the outset of this investigation, NCIS is committed to following the evidence wherever it leads and regardless of who is found to have violated the trust placed in them.”
Including those charged yesterday, 13 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including U.S. Navy Capt. Daniel Dusek, U.S. Navy Captain (Select) Michael Misiewicz, Lieutenant Commander Todd Malaki, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense civilian employee Paul Simpkins awaits trial.
On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 18, 2016, Alex Wisidagama, a former GDMA employee, was sentenced to 63 months and $34.8 million in restitution to the Navy; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to forfeit $95,000 in proceeds for the scheme.
NCIS, DCIS and DCAA are conducting the investigation. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 16-CR-1206
U.S. Navy Captain Michael Brooks, retired Age 57 Fairfax Station, Virginia
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine,
DEFENDANT Case Number: 16-CR-1207
Commander Bobby Pitts Age 47 Chesapeake, Virginia
SUMMARY OF CHARGES
Conspiracy to Defraud the United States, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine,
Obstruction of Proceedings, in violation of 18 U.S.C. § 1505
Maximum Penalty: 5 years in prison, a $250,000 fine,
DEFENDANT Case Number: 161510
Lieutenant Commander Gentry Debord Age 47 Singapore
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine,
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Texas Tax Return Preparer Indicted for Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
WASHINGTON – A DeSoto, Texas, resident was indicted on 29 counts of aiding and assisting in the preparation of false income tax returns and three counts of willfully failing to file income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John R. Parker of the Northern District of Texas.
According to court documents, Vicki Louise Walker, was a tax preparer doing business under the name Vicki Walker Tax Services LLC in Dallas, Texas. Walker is alleged to have prepared numerous tax returns for tax years 2010 through 2013 on which she reported false items, including false filing status, false business expenses, false capital losses and false charitable donations. It is further alleged that Walker willfully failed to file her own tax returns with the Internal Revenue Service (IRS) for tax years 2011 through 2013.
If convicted, Walker faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of false tax returns and a statutory maximum sentence of one year in prison for each count of failing to file her own tax returns. She also faces monetary penalties and restitution.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proved guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Parker commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Christopher Stokes of the Northern District of Texas, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Tennessee Sheriff Indicted by Federal Grand Jury on Conspiracy, Fraud and Related ChargesRead the Press Release
Chief Administrative Deputy and Sheriff’s Uncle also Indicted
A county sheriff and two other men were indicted for their roles in the formation, marketing and operation of a private company and the concealment and misrepresentation of their involvement with the business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Robert F. Arnold, 40, Sheriff of Rutherford County, Tennessee; Chief Deputy Joe L. Russell II, 49, also of Rutherford County; and John Vanderveer, 58, of Marietta, Georgia, Arnold’s uncle, were charged in a 14-count indictment with honest services fraud, wire fraud, bribery concerning federal programs, extortion under color of official right, obstruction of justice and conspiracy.
The indictment alleges that Arnold, Russell and Vanderveer devised a scheme to exploit Arnold’s and Russell’s official positions to make tens of thousands of dollars selling e-cigarettes in the Rutherford County Jail. Specifically, in October 2013, each defendant allegedly invested $3,000 to start JailCigs LLC, a private company that would allow friends and family members of inmates to purchase e-cigarettes online and have them shipped to the jail for distribution by jail personnel and use by inmates. As part of its marketing strategy, JailCigs allegedly promised a $5 commission for every e-cigarette sold to the jail or detention facility. In late 2013, Arnold and Russell introduced JailCigs into the Rutherford County Jail, JailCigs’s first and largest customer in Tennessee. Over the next year and a half, JailCigs allegedly sold approximately 10,500 e-cigarettes for delivery to Rutherford County Jail inmates, totaling $156,975 in revenue.
Arnold and Russell allegedly used their official positions to make JailCigs profitable, including by allowing the company’s e-cigarettes to be admitted into the Rutherford County Jail as non-contraband; directing jail employees to perform tasks beneficial to JailCigs on county time; promoting JailCigs to other sheriff offices and counties; and waiving Rutherford County’s customary commission from the sale of JailCigs. Arnold and Russell also failed to subject the business arrangement with JailCigs to a competitive bidding process and did not enter into a written contract with the company, despite being advised to do both things by the county attorney, according to the indictment. Between December 2013 and April 2015, Arnold allegedly received $66,790 from JailCigs and Russell and Vanderveer each received roughly $50,000.
On the eve of the 2014 election, in which Arnold was running for reelection as Sheriff of Rutherford County, Russell allegedly emailed a JailCigs customer and reminded the customer that it was Arnold who brought the JailCigs program to the Rutherford County Jail for the enjoyment of inmates and if Arnold was not reelected, the program would come to an end. The indictment alleges that Russell’s email implored the customer to “tell everyone you know to support Sheriff Arnold in his re-election.”
When various people raised questions and concerns about the propriety of the arrangement between JailCigs and Rutherford County, Arnold and Russell allegedly made misrepresentations that the arrangement had been approved by various officials, including the county attorney and the county auditor, and repeatedly denied that they were personally involved with JailCigs or were receiving any benefit from the sale of its product. The indictment also alleges that in an effort to protect JailCigs’s ongoing business, Arnold subsequently made several false and misleading statements to the media about his role in and knowledge of JailCigs, including saying that he was unaware of Russell’s involvement with JailCigs and that he was “shocked” and “taken back” by the discovery. Arnold allegedly also told the media that he had not received any income from JailCigs and had made a mistake when he listed JailCigs as a source of income on his state “Statement of Disclosure of Interests” form. The day before making this statement, however, Arnold allegedly had deposited a $3,900 check from JailCigs.
The indictment also alleges that on April 17, 2015, after learning of the media reports and pending criminal investigation, Vanderveer met with the Tennessee sales representative for JailCigs and told her that “Joe” wanted her to destroy her commission tabulation sheets, which contained evidence of the scheme.
The charges in the indictment are merely allegations. The defendants are presumed innocent until and unless convicted.
The Tennessee Bureau of Investigation and the FBI are investigating this case. Trial Attorney Mark Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil W. Vandevender of the Middle District of Tennessee are prosecuting the case.
Teacher Indicted for Possession of Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN —Duane William Millar, age 59, of East Lansing, Michigan, appeared in federal court today to face charges that he possessed child pornography. The grand jury alleges in the two-count indictment that Millar possessed child pornography in an internet-based email account and that he possessed child pornography on various computers and media storage devices. If convicted of these charges, Millar faces up to twenty years in federal prison on each count.
Millar was a teacher with the Howell Public School District and resigned his position after the allegations came to light. The Ingham County Prosecutor’s Office initiated Millar’s prosecution for possession of child pornography and then referred the case for federal prosecution.
The charges are the result of an investigation by the Michigan State Police Internet Crimes Against Children Task Force (MSP ICAC), working in conjunction with Homeland Security Investigations (HSI) and with the cooperation of the Ingham County Prosecutor’s Office.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Taxi Driver Indicted for Conspiracy to Provide Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Mahmoud Amin Mohamed Elhassan, 26, of Woodbridge, was indicted by a federal grand jury yesterday on charges of conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), aiding and abetting the provision of material support to ISIL, and false statements.
According to the indictment, from on or about Aug. 1, 2015, and continuing until Jan. 15, 2016, in Elhassan unlawfully and knowingly conspired with Joseph Hassan Farrokh to provide material support or resources to ISIL, a designated foreign terrorist organization. In furtherance of the conspiracy, on Jan. 15, 2016, Elhassan drove Farrokh to Richmond in order to enable Farrokh to fly to overseas to join ISIL.
According to the indictment, Elhassan also attempted to provide material support or resources to ISIL by aiding and abetting the attempt of Farrokh to join ISIL. Elhassan’s aiding and abetting included introducing Farrokh to an individual that Elhassan believed could facilitate Farrokh’s travel to the Islamic State; driving Farrokh from Farrokh’s home to Richmond in Elhassan’s taxi cab so that Farrokh could embark on his travel to join ISIL; and making false statements to the FBI about Farrokh’s travel in order to hinder the government’s investigation of Farrokh’s travel.
According to the indictment, Elhassan knowingly, unlawfully, and willfully made material false, fictitious, and fraudulent statements and representations in a matter involving international terrorism, including: On Jan. 15, 2016, Elhassan falsely stated to FBI agents that Farrokh had flown out of Dulles Airport earlier that day on a flight to California to attend a funeral; that Farrokh had said that he would be back in about two weeks; that neither he nor Farrokh supported the ISIL; and neither he nor Farrokh ever tried to find someone to help them get to ISIL.
Elhassan is scheduled to be arraigned on June 3 and faces a maximum penalty of 48 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Dennis M. Fitzpatrick and Gordon D. Kromberg are prosecuting the case. This case is being investigated by the FBI Washington Field Office Joint Terrorism Task Force.
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. 1:16cr64.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Tampa Man Sentenced to 25 Years for Online Child ExploitationRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Andre Eugene Favreau (31, Tampa) to 25 years in federal prison for online enticement of a minor and transportation and receipt of child pornography. The Court also ordered him to forfeit the computers used in the crimes. Favreau pleaded guilty on January 27, 2016.
According to court documents and testimony, the investigation began in December 2014, when an undercover agent downloaded files from Favreau’s Internet Protocol (IP) address via an Internet peer-to-peer program. On May 14, 2015, FBI agents seized a desktop computer belonging to Favreau, which he admitted contained child pornography. A forensic review of the computer subsequently revealed that it contained at least 140 images and 85 videos of child pornography.
On July 17, 2015, law enforcement obtained federal search warrants for Favreau’s Samsung tablet and his Instagram account. Further investigation revealed that Favreau had used his Instagram account to send child pornography images to others, and that on April 8, 2015, he had used the account to communicate with an individual that he believed was under the age of 18 years old. Favreau intentionally attempted to persuade that minor to engage in sexual activity and produce images of the activity.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
South Tampa Man Sentenced to More Than 12 Years for Gun and Drug ViolationsRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Christopher Bowen Balfrey (26, Tampa) to 12 years and 7 months in federal prison for drug conspiracy, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime. The Court also forfeited a 2006 Cadillac Deville, a traceable proceed of the offenses.
Balfrey pleaded guilty to the charges on February 8, 2016.
According to court documents, law enforcement identified Balfrey and his associates as convicted felons who were in possession of firearms. Many of the firearms Balfrey possessed were stolen from residences in the South Tampa area. Law enforcement met with Balfrey on multiple occasions, where they purchased drugs and stolen firearms from him. While executing a federal search warrant at Balfrey’s residence, law enforcement seized three firearms, powder cocaine, assorted ammunition, marijuana and $2,636.00 in cash.
As a previously convicted felon, Balfrey is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tampa Police Department as part of a Violent Crime Initiative. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Serial Bank Robber Sentenced to 15 Years in PrisonRead the Press Release
RICHMOND, Va. – Justin Chamberlain, 28, of Chesterfield, was sentenced yesterday to 181 months in prison for four armed bank robberies. Chamberlain was also ordered to pay $54,308 in restitution to Wells Fargo Bank and $4,650 in restitution to Argent Federal Credit Union.
Chamberlain pleaded guilty on February 26 to four counts of armed bank robbery and one count of brandishing a firearm during and in relation to one of those robberies. According to court documents, on June 27, 2015, Chamberlain entered the Well Fargo Bank branch on Amberdale Drive in Chesterfield wearing a mask and pointed what appeared to be a pistol at one of the tellers. Chamberlain stated, “Empty the drawers and no one gets hurt.” The teller, concerned for her safety and the safety of others in the bank, turned over $6,674 to Chamberlain.
Chamberlain returned to the same Wells Fargo branch on July 18, 2015, again wearing a mask. This time he brandished a pistol grip shotgun and stated, “You know the drill.” Tellers turned over $22,800.
On Aug. 27, 2015, Chamberlain, carrying the same shotgun and again wearing a mask, robbed the Argent Federal Credit Union in Northern Chesterfield. While brandishing the gun, he told the teller to, “Put everything in the bag” that he provided. Afraid for her safety, the teller complied, turning over $4,650 to Chamberlain.
Chamberlain returned to the Wells Fargo Bank branch for the third time on Nov. 12, 2015. Once again he wore a mask, pointed what appeared to be a pistol at a teller, and directed all inside the bank to raise their hands above their heads. The teller provided $24,834 to Chamberlain. In addition to the money, however, the teller also gave Chamberlain a GPS tracking device. Chesterfield Police officers and the FBI followed the signal to Chamberlain’s residence, where they recovered the money Chamberlain had stolen from the Wells Fargo Bank earlier that day.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Colonel Thierry G. Dupuis, Chief of the Chesterfield Police Department, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Stephen W. Miller 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. 3:16CR13.
Serial Bank Robber Known as "the Well Dressed Man" Pleads Guilty to Bank Robbery in Five CountiesRead the Press Release
SACRAMENTO, Calif. — David James Lira, 39, of Roseville, pleaded guilty today to robbing five banks in Northern California, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 2015 and January 2016, Lira robbed five banks. For his bank robberies and attempted bank robberies, Lira used various disguises including coats, fake beards, hats, and glasses. For some of his robberies, Lira obtained rental cars to vary his getaway vehicles. In total, Lira stole over $31,000.
Lira robbed the following banks:
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On December 3, 2015, he robbed the Umpqua Bank at 1801 Douglas Blvd. in Roseville;
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On December 11, 2015, he robbed the Wells Fargo Bank at 3456 McHenry Avenue in Modesto;
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On December 17, 2015, he robbed the Wells Fargo Bank at 4400 Tassajara Road in Dublin;
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On December 23, 2015, he robbed the U.S. Bank at 2111 Oroville Dam Blvd. East in Oroville;
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On January 6, 2016, he robbed the U.S. Bank at 2175 W. Grant Line Road in Tracy.
Lira also attempted to rob two other banks:
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On December 1, 2015, he attempted to rob the Bank of the West at 1112 Galleria Blvd. in Roseville;
- On December 11, 2015, he attempted to rob the Delta Bank at 2711 McHenry Avenue in Modesto.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Roseville Police Department, the Tracy Police Department, the Oroville Police Department, the Modesto Police Department, and the Alameda County Sheriff's Department. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.
Lira is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on August 12, 2016. Lira faces a maximum statutory sentence of 20 years in prison and a $250,000 fine for each count. 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.
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Scituate Resident Sentenced for Interstate Travel to Engage in Illicit Sexual ContactRead the Press Release
PROVIDENCE, R.I. – Randy A. Collins, 44, of Scituate, R.I., was sentenced Thursday to 24 months in federal prison for traveling interstate with intent to engage in illicit sexual conduct. Collins previously admitted to the court that on September 2, 2015, he left his place of employment in Franklin, Mass., during his workday, to meet in Rhode Island and have sex with a person he believed to be a 14-year-old female. The person he had been communicating with online was actually a Rhode Island State Police Detective assigned to the Rhode Island Internet Crimes Against Children (ICAC) task force.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Collins to serve 10 years supervised release upon completion of his prison term. Collins pleaded guilty on March 10, 2015, to interstate travel with intent to engage in illicit sexual conduct.
Collins’ sentence is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
At the time of his guilty plea, Collins admitted to the court that he answered an advertisement posted on Craigslist which he believed was posted by a 14-year old female seeking to obtain an iPhone6. According to information presented to the court, during an exchange of emails the State Police Detective posing as the young teenager repeatedly informed Collins that he was communicating with a 14-year-old. Collins acknowledged the information and responded that he was still interested in meeting with her. Collins turned the exchange to a sexual nature and proposed providing the iPhone in exchange for sex.
Collins was arrested by Rhode Island State Police and agents from Homeland Security Investigations when he arrived at a location in Cranston, R.I., where he believed he was going to meet with a young teenage girl.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Jim Martin (401) 709-5357
email: [email protected]
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Rutherford County Tennessee Sheriff Indicted by Federal Grand JuryRead the Press Release
Robert F. Arnold, 40, Sheriff of Rutherford County, was indicted yesterday by a federal grand jury along with Chief Administrative Deputy Joe L. Russell II, 49, and Arnold’s uncle, John Vanderveer, 58, of Marietta, Georgia, for their role in the formation, marketing and operation of JailCigs, LLC and the concealment and misrepresentation of Arnold and Russell’s involvement with the business, announced Jack Smith, Acting U.S. Attorney for the administration of this case and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Joining Smith in announcing the charges at a mid-morning press conference were Matt Foster, Acting Assistant Special Agent in Charge of the Memphis Division of the FBI and Mark Gwyn, Director of the Tennessee Bureau of Investigation.
The 14-count indictment charges Arnold, Russell and Vanderveer with honest services fraud; mail fraud; wire fraud; bribery concerning federal programs; extortion under color of official right; obstruction of justice; and conspiracy.
“The overwhelming majority of law enforcement officers in the Middle District of Tennessee and across this nation have a deep and abiding sense of duty to the people they serve,” said Acting U.S. Attorney Jack Smith. “We never want to allow the illegal and self-serving actions of a few to unfairly brand the unsung heroes who every day place the safety and security of their communities above their own needs. Today we thank those officers for their dedication and service and for this reason we will always pursue justice for those whose actions attempt to discredit the profession.”
The indictment alleges that the conspiracy and other violations were carried out as follows: In October 2013 Arnold, Russell and Vanderveer each invested $3,000 to start JailCigs, LLC, a private company whose primary business involved selling electronic cigarettes to be used by inmates at jails and other detention facilities. They agreed on a business model which would allow friends and family of inmates to purchase e-cigarettes on-line and have them shipped to the jail for distribution by jail personnel. As part of the marketing strategy of JailCigs, every jail or detention facility in Tennessee that agreed to do business with the company was promised a commission of $5 for every e-cigarette sold. Shortly after the company was formed, Arnold and Russell introduced JailCigs into the Rutherford County Jail. Rutherford County was the company’s first and largest customer in Tennessee. Rutherford County was also the only jail in Tennessee that was not promised and did not receive the $5 commission for every e-cigarette sold.
Arnold and Russell used their official positions to make JailCigs profitable, including by allowing the company’s e-cigarettes to be admitted into the Rutherford County Jail as non-contraband; directing jail employees to perform various tasks beneficial to JailCigs while working on county time; promoting JailCigs to other sheriff offices and counties; and permitting the company not to pay Rutherford County the customary commission from the sale of JailCigs that was made to other counties. Arnold and Russell also failed to subject the business arrangement with JailCigs to a competitive bidding process and did not enter into a written contract with the company, despite being advised to do both things by the county attorney.
During the period from October 2013 to April 2015, JailCigs sold approximately 10,500 e-cigarettes that were delivered to inmates at the Rutherford County Jail. Each e-cigarette sold for $14.95, including shipping and handling, and these sales resulted in approximately $156,975 in revenue to JailCigs.
Beginning in December 2013 each defendant began receiving significant payments from JailCigs, LLC. Between December 2013 and April 2015 Robert Arnold received a total of $66,790; Joe Russell received a total of $52,234.41; and John Vanderveer received $49,545.50. The total payments made to the defendants during this period were $168,569.91.
The indictment specifically alleges that during the period of June and July of 2014, while Arnold was running for re-election as Sheriff of Rutherford County, he received approximately four checks from JailCigs, totaling $22,634.00. Three of these checks were deposited to the bank account of “Arnold for Rutherford County Sheriff.”
On the eve of the 2014 election, Joe Russell sent an email to a JailCigs customer in which he reminded the customer that Sheriff Arnold was the person who brought the JailCigs program to the Rutherford County Jail for the enjoyment of inmates and if Arnold was not re-elected the program would come to an end. The email implored the customer to “tell everyone you know to support Sheriff Arnold in his re-election.”
At various times, several people raised questions and concerns about the propriety of the arrangement between JailCigs and Rutherford County. When questioned, Arnold and Russell repeatedly made misrepresentations that the arrangement had been approved by various officials, including the county attorney and the county auditor and repeatedly denied that they were personally involved with JailCigs or were receiving any benefit from the sale of its product. In an effort to protect JailCigs on-going business, Arnold subsequently made several false and misleading statements to the media about his role in and knowledge of JailCigs, including saying that he was unaware of Russell’s involvement with JailCigs and that he was “shocked” and “taken back” by the discovery. Arnold also told the media that he had not received any income from JailCigs and had made a mistake when he listed JailCigs as a source of income on the “Statement of Disclosure of Interests” form filed with the Tennessee Ethics Commission. The day before making this statement, Arnold had deposited a $3,900 check from JailCigs.
The indictment also alleges that on April 17, 2015, after learning of the media reports and pending criminal investigation, John Vanderveer met with the Tennessee sales representative for JailCigs and told her that “Joe” wanted her to destroy her commission tabulation sheets so that there would not be a record of commission payments from Rutherford County going to “Robert or any of us.”
“The public deserves integrity from its elected officials, and it’s disappointing when law enforcement leaders abuse their position and contribute to public distrust,” said TBI Director Mark Gwyn. “I am grateful for the cooperation with our federal partners in pursuing the facts in this case.”
“We all rely on those who hold positions of public trust to execute their duties with integrity and in the best interests of the public,” said Gerard J. Cocuzzo, Acting Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “The FBI and our law enforcement partners will continue to investigate those who abuse that trust out of personal greed, and bring to justice those who would seek to line their own pockets by ignoring their sworn oath to uphold the law.”
Charges in this case carry maximum penalties of between 5-20 years in prison and a $250,000 fine. An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Tennessee Bureau of Investigation and the FBI. Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of Tennessee and Trial Attorney Mark Cipolletti of the Department of Justice’s Public Integrity Section are prosecuting the case.
Rocky Mount Man Sentenced for Robbery and Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney’s Office announced that on Thursday, May 26, 2016 in federal court, Chief United States District Judge James C. Dever III sentenced CHRISTOPHER LEE SILVER, 33, of Rocky Mount, North Carolina to 144 months imprisonment for robbery and brandishing a firearm, followed by 5 years of supervised release.
SILVER was named in a two count Indictment filed on January 7, 2015 charging him with interference with commerce by robbery; and use, carry and brandish of a firearm in furtherance of a crime of violence. On February 22, 2016, SILVER pleaded guilty to both charges.
According to the investigation, on May 12, 2013, SILVER entered a gas station in Battleboro, North Carolina and directed a customer not to move at gunpoint. SILVER then approached the cashier, brandished the handgun and demanded money and cigarettes. SILVER removed the drawer from the cash register looking for additional money. SILVER’s fingerprint was recovered from the cash register drawer.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rocky Mount Police Department. Assistant United States Attorney Dena King represented the government.
Rockford Brothers Sentenced on Federal Drug ChargesRead the Press Release
ROCKFORD — Two Rockford, Ill. brothers were sentenced before U.S. District Judge Frederick J. Kapala on drug charges. Today, TIERRE A. BAZZELLE, 39, who pleaded guilty on Dec. 16, 2015, to conspiracy to distribute cocaine, was sentenced to 127 months in federal prison, to be followed by four years’ supervised release.
According to the written plea agreement, between Feb. 1, 2014 and May 6, 2014, Bazzelle conspired with his brother, co-defendant TALIB O. BAZZELLE, to distribute 500 grams or more of cocaine and cocaine base, commonly referred to as “crack.” Between March 14, 2014 and May 6, 2014, Tierre Bazzelle purchased approximately 1,456 grams of cocaine that he sold to his customers. Tierre Bazzelle provided a portion of the 1,456 grams of cocaine to Talib Bazzelle, and directed him to distribute it to Tierre Bazzelle’s customers. Tierre Bazzelle also directed his brother to collect money owed to Tierre Bazzelle for cocaine provided to customers on credit. Tierre Bazzelle also admitted that he converted a portion of the cocaine to “crack,” and provided Talib Bazzelle with a total of at least 168 grams of crack cocaine between Feb. 1, 2014 and May 6, 2014. As stated in the plea agreement, on May 6, 2014, the two brothers met with an individual in a grocery parking lot in Rockford, then drove a short distance into a neighborhood where Tierre Bazzelle purchased cocaine. After driving a short distance away, Tierre Bazzelle’s vehicle was stopped by law enforcement agents. When the defendant was searched, a bag containing the 7.5 ounces of cocaine was located in his pants.
As further stated in the plea agreement, the defendant possessed a .45 caliber handgun that was found between the cushions of a couch in the living room of his residence. The gun was loaded with 12 rounds of ammunition in the magazine and one round in the chamber, and a box of ammunition was also found hidden under a cushion of a love seat in the living room. Other drug paraphernalia used to convert powder cocaine to crack, and package powder and crack cocaine were located in the home.
Talib Bazzelle, 34, pleaded guilty on Dec. 4, 2015, to possessing cocaine with intent to distribute. He was sentenced on March 17, 2016, to 162 months in federal prison, to be followed by a period of three years of supervised release.
The sentencing of Tierre Bazzelle was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The case was a result of a joint investigation by the Winnebago County Sheriff’s Office Narcotics Unit and the FBI.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Roanoke Man Sentenced on Immigration ChargeRead the Press Release
ROANOKE, VIRGINIA – A Mexican citizen, who most recently resided in Roanoke, Virginia, was sentenced today on a federal immigration charge after pleading guilty to illegally reentry, United States Attorney John P. Fishwick Jr. announced.
Eliseo Jimenez-Hernandez, also known as “Prisiliano Jimenez Basilio” pleaded guilty in February 2016 to one count of illegal reentry by a previously deported alien. Today in District Court, Jimenez-Hernandez was sentenced to a term of imprisonment of ten months. He is subject to deportation following his release.
“We will continue to work with our partners in law enforcement to enforce the immigration laws of the United States,” United States Attorney John P. Fishwick Jr. said today. “When individuals do not follow those laws, they will be held accountable.”
According to evidence presented at previous hearings by Special Assistant United States Attorney Kari Munro, Jimenez-Hernandez was arrested in Roanoke, Virginia on March 21, 2015 and charged with his fourth DUI in ten years. Immigration and Customs Enforcement (ICE) encountered the defendant in connection with his state charges, confirming at that time that he had illegally entered the United States twice previously, in 2009 and 2012. Jimenez-Hernandez had not obtained consent to enter the United States prior to his most recent reentry and is barred from the entering the United States for a number of years in connection with his conviction and sentence today.
Investigation of this case was conducted by U.S. Immigration and Customs Enforcement. Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Randolph County Residents Sentenced for Methamphetamine OffenseRead the Press Release
On May 25, 2016, Leah A. Bean, 33, of Sparta, and Larry D. Rice, 27, of Percy, were sentenced on a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Bean and Rice had previously pled guilty to one count of conspiracy to distribute heroin. Bean was sentenced to 48 months in federal prison, followed by 3 years’ supervised release, and fined $200.00. Rice was sentenced to 70 months in federal prison, followed by 3 years’ supervised release and fined $200. Evidence at the plea and sentencing hearings established that Bean and Rice were involved with each other and others in the distribution of heroin and ice/methamphetamine. The group made multiple trips to the St. Louis area to obtain dealer amounts of heroin. The heroin was then transported back to southern Illinois for distribution. At sentencing, the judge found that Bean was responsible for 302.4 grams of heroin and 5 grams of ice/methamphetamine. Rice was found responsible for 128.4 grams of heroin and 1.25 grams of ice/methamphetamine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Three co-defendants have previously been sentenced for their roles in the heroin and methamphetamine conspiracies. Four co-defendants have pled guilty and are awaiting sentencing. Three co-defendants have pled not guilty and are awaiting a June 13, 2016, jury trial.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation, which was prosecuted by Assistant United States Attorney Amanda Robertson.
Raleigh Convenient Store Owner Sentenced to 78-Months for Food Stamp FraudRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Chief United States District Judge James C. Dever III sentenced Ali Dhaher al-darajy, age 47, of Raleigh, North Carolina, to 78 months imprisonment, followed by three years of supervised release. AL-DARAJY was also ordered to pay restitution in the amount of $2,305,630 to the United States Department of Agriculture and to forfeit his interest in money seized during the investigation and five pieces of real property in Wake County.
al-darajy was named in Criminal Information filed on November 13, 2015 charging him with Theft of Government Property and Engaging in Unlawful Monetary Transactions. On November 23 2015, pursuant to a plea agreement, AL-DARAJY pled guilty to those charges.
Karen Citizen-Wilcox, Special-Agent-in-Charge of the Southeast Region for the U.S. Department of Agriculture’s Office of Inspector General, confirmed the Inspector General’s commitment to investigating and prosecuting “individuals who fraudulently obtain food stamp benefits.”
al-darajy owned and operated three convenient stores in Raleigh under the name Hannah Stop n’ Shop or Hannah Stop n’Drink. One of the stores was downtown on Wilmington Street and the other two in the same building on Western Boulevard. Beginning in December 2010, al-darajy was authorized to accept Federal Supplemental Nutritional Assistance Program (SNAP) benefits in return for eligible items as prescribed by the United States Department of Agriculture’s Food and Nutrition Service (FNS). The SNAP prohibits the sale of ineligible food items, including alcoholic beverages, tobacco products, pet food, household supplies, vitamins, and prepared foods in exchange for benefits, which are typically electronically transmitted through point of sale terminals. SNAP benefits may not, under any circumstances, be exchanged for cash.
Between January 11, 2013 and January 7, 2014, nine undercover operations were conducted at these stores. In total, $6,465.68 was fraudulently obtained in SNAP benefits. On March 26, 2013, AL-DARAJY charged $1,019.74 to the SNAP card presented by the undercover who received $472 in cash, a carton of Newport cigarettes and a 12-pack of Bud beer. Again, on June 4, 2013, AL-DARAJY fraudulently charged $486.12 to a SNAP card and gave the undercover $211 in cash.
By comparing the amount of SNAP benefits received by AL-DARAJY’s stores with comparable stores in North Carolina, USDA determined AL-DARAJY had stolen approximately $2,305,630. AL-DARAJY used these stolen SNAP funds to, among other things, pay down the mortgage on his personal residence, repay his business partner for the 2010 purchase of the Western Avenue building, pay monthly American Express bills, purchase three pieces of real property, and purchase four automobiles. There were 11 transactions that exceeded $10,000.
Investigation of this case was jointly conducted by the Office of the Inspector General for the United States Department of Agriculture, the Internal Revenue Service, Criminal Investigations, and the Raleigh Police Department. Assistant United States Attorney Susan B. Menzer represented the government.
Patient Recruiter Sentenced to 60 Months in Prison for Role in $2.3 Million Miami Medicare Fraud SchemeRead the Press Release
The owner and president of a Miami-area consulting and staffing company was sentenced today to 60 months in prison for his role in a $2.3 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Carlos Rodriguez Nerey, 45, of Miami, the owner and president of Nerey Professional Services Inc., was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida. In addition to imposing the prison term, Judge Gayles ordered Nerey to pay $2,366,736 in restitution. On April 1, 2016, following a one-week jury trial, Nerey was convicted of one count of receiving kickbacks in connection with a Federal Health Care Program and one count of conspiracy to defraud the United States and pay health care kickbacks.
According to evidence presented at trial, from October 2014 to September 2015, Nerey was involved in a conspiracy to accept kickbacks in return for referring Medicare beneficiaries to Mercy Home Care Inc. and D&D&D Home Health Care Inc. to serve as patients, including those who did not qualify for home health care services according to Medicare rules and regulations. His acts contributed to the submission of $2 million in fraudulent claims to Medicare as well as their subsequent payment on those fraudulent claims, according to trial evidence.
The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. Fraud Section Trial Attorneys Lisa Miller and Elizabeth Young prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Patient Recruiter Sentenced to 60 Months in Prison for Role in $2.3 Million Miami Medicare Fraud SchemeRead the Press Release
The owner and president of a Miami-area consulting and staffing company was sentenced today to 60 months in prison for his role in a $2.3 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, made the announcement.
Carlos Rodriguez Nerey, 45, of Miami, the owner and president of Nerey Professional Services Inc., was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida. In addition to imposing the prison term, Judge Gayles ordered Nerey to pay $2,366,736 in restitution. On April 1, 2016, following a one-week jury trial, Nerey was convicted of one count of receiving kickbacks in connection with a Federal Health Care Program and one count of conspiracy to defraud the United States and pay health care kickbacks.
According to evidence presented at trial, from October 2014 to September 2015, Nerey was involved in a conspiracy to accept kickbacks in return for referring Medicare beneficiaries to Mercy Home Care Inc. and D&D&D Home Health Care Inc. to serve as patients, including those who did not qualify for home health care services according to Medicare rules and regulations. His acts contributed to the submission of $2 million in fraudulent claims to Medicare as well as their subsequent payment on those fraudulent claims, according to trial evidence.
The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. Fraud Section Trial Attorneys Lisa Miller and Elizabeth Young prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Paradigm Spine Agrees to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – Medical device manufacturer Paradigm Spine has agreed to pay the United States $585,000 to resolve allegations under the False Claims Act that the company caused health care providers to submit false claims to Medicare and other federal health care programs for spine surgeries by marketing the company’s coflex-F® device for surgical uses that were not approved by the U.S. Food and Drug Administration (FDA). The settlement further resolves allegations that Paradigm caused false claims by giving false recommendations on how to code health claims for procedures involving the company’s coflex® device.
The settlement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General.
“A medical device manufacturer has a duty to be truthful about the approved uses of medical devices and the appropriate billing codes to use when seeking payment from the government,” said U.S. Attorney Rod J. Rosenstein.
According to the settlement agreement, from 2011 to 2013, Paradigm Spine allegedly marketed coflex-F for surgical uses that were not approved by the FDA. Further, from 2012 to 2015, Paradigm Spine allegedly provided health care providers with improper guidance on how to claim reimbursement for coflex. As a result of this conduct, the United States claimed that Paradigm Spine caused physicians and hospitals to submit false claims to federal health care programs for certain spine surgeries that were not eligible for reimbursement. Paradigm denies the allegations.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Chris Coyle, a former Paradigm Spine sales representative (United States ex rel. Charles Coyle v. Paradigm Spine, LLC, et al., Case No. DKC-14-CV-2086 (D. Md.)). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of today’s resolution, Mr. Coyle will receive approximately $105,300. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
The settlement was the result of an investigation the U.S. Attorney’s Office for the District of Maryland, U.S. Department of Justice, the Department of Health and Human Services’ OIG, the Department of Defense’s OIG and the Office of Personnel Management’s OIG, with assistance from the FDA’s Office of Chief Counsel and Office of Criminal Investigations. The case was handled by Assistant U.S. Attorneys Thomas Barnard and Rebecca Koch, and Trial Attorney Lisa Samuels from the Department of Justice.
Orange County Mexican Mafia Associate Sentenced to 64 Months in Federal Prison on Racketeering ChargeRead the Press Release
SANTA ANA, California – An associate of the Orange County Mexican Mafia criminal enterprise, who pleaded guilty to federal racketeering charges related to his role in the Orange County Mexican Mafia, has been sentenced to serve over five years in federal prison.
Danny “Big Shotgun” Rodriguez, 41, of Orange, was sentenced on Monday to 64 months in prison by United States District Judge Andrew J. Guilford. Rodriguez pleaded guilty last year to conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.
According to a plea agreement filed in federal court, Rodriguez’s role in the RICO conspiracy included extortion – or collecting “taxes” – from criminal street gang members and others, which enabled the Orange County Mexican Mafia to continue trafficking narcotics and to exert influence over neighborhoods. Rodriguez also distributed messages on behalf of the gang, including messages that ordered “green lights” – assaults – on gang members. The plea agreement notes that Rodriguez wrote a message ordering an assault, which led associates of the Orange County Mexican Mafia to attack an individual in custody.
The Mexican Mafia is a powerful and violent prison gang that controls drug distribution and other illegal activities within the California penal system and on the streets of Southern California by organizing Latino street gang members for the purpose of establishing a larger network for the Mexican Mafia’s illegal activities. If a street gang does not comply with the demands of the Mexican Mafia, the prison gang will order the assault or murder of the offending gang’s members, whether they are in custody or on the streets.
“Defendant Rodriguez helped the Mexican Mafia by collecting ‘taxes’ and passing directives,” said United States Attorney Eileen M. Decker. “Rodriguez, and others like him, enabled the Mexican Mafia to carry out its criminal activities, which involved narcotics trafficking and the use of violence, and this sentence appropriately recognizes that fact.”
Rodriguez was one of 25 defendants named in a RICO indictment brought as part of Operation “Smokin’ Aces,” which was a multi-agency operation that targeted the Orange County wing of the Mexican Mafia and led to charges against more than 80 defendants in federal court and about four dozen people in state court. In addition to Rodriguez, 16 other defendants named in the RICO indictment have been sentenced, with one defendant receiving a prison term of nearly 10 years.
The investigation was jointly conducted by special agents of the Santa Ana Gang Task Force, which consists of agents and officers with the Federal Bureau of Investigation; the Santa Ana Police Department; the Orange County Sheriff’s Department; the Bureau of Alcohol, Tobacco and Firearms and Explosives; and the California Department of Corrections and Rehabilitation-Special Service Unit.
Omaha Man Sentenced to 5 Years in Federal Prison for Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced today that Brian T. Nelsen, 29, was sentenced in federal court in Omaha for receiving child pornography. Senior Judge Lyle E Strom sentenced Nelsen to five years of imprisonment. There is no parole in the federal system. After his release from prison, Nelsen will begin a five-year term of supervised release and will be required to register as a sex offender.
On January 7, 2015, officers executed a federal search warrant a Nelsen’s Omaha home. Forensic analysis of Nelsen’s computer revealed 100 videos and 50 images of children engaged in sexually explicit conduct with adults or other children. The children depicted were between the ages of 2 and 14. Search terms recovered from the computer revealed specific terms targeting child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation.
North Carolina Man Admits Receiving and Selling Misbranded Silicone for Buttocks Injections Resulting in the Death of a ClientRead the Press Release
Greenbelt, Maryland –Vinnie Lysander Taylor, a/k/a “T,” age 44, of Wilmington, North Carolina, Pennsylvania and Georgia, pleaded guilty on May 26, 2016, to charges of receiving and selling industrial grade silicone, but representing to customers that it was medical grade silicone.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Prince George’s County State’s Attorney Angela D. Alsobrooks; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
“Injecting industrial-grade silicone into individuals’ bodies can result in serious bodily injury or death,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office. “FDA’s OCI will continue to work with our law enforcement partners to bring to justice those who offer this dangerous product to the public.”
Taylor admitted that from at least 2008 through December 16, 2014, he administered silicone injections into the buttocks of customers who wanted larger or fuller buttocks. Taylor, who was not a licensed medical practitioner, falsely represented to customers and victims to whom he administered liquid silicone injections that the procedure was safe and that he used medical grade silicone, when in fact the silicone was not medical grade silicone. Taylor administered the injections in hotel rooms in Prince George’s County, Maryland, St. Louis, Missouri, Arlington, Virginia, and elsewhere. Taylor charged between $800 and $1000 for the initial injections and between $350 and $800 for subsequent injections. When used in this fashion, liquid silicone is a medical device subject to regulation by the FDA.
In Maryland, between at least 2012 and December 2014, Taylor administered silicone injections to more than 10 individuals, representing to each victim that he used medical grade silicone and that it was safe. In fact, Taylor did not use medical grade silicone, but used polydimethylsiloxane, a common silicone product used in commercial applications such as foods, lubricating oils, sealants and shampoos.
On March 20, 2014, Taylor injected silicone into the buttocks of a victim. After the victim left the hotel she began having breathing difficulties. On March 22, 2014, the victim checked herself into the hospital and two days later, she died. An autopsy determined that the cause of death was acute and chronic respiratory failure due to a foreign substance causing a pulmonary embolization. The medical examiner ruled the manner of death to be a homicide. A clear viscous fluid removed from the victim’s buttocks during the autopsy was determined to be polydimethylsiloxane.
According his plea agreement, from approximately 2008 through December 2, 2014, Taylor purchased 152 gallons of food grade liquid silicone. Taylor stored the liquid silicone in plastic bottles that were not labeled nor approved by the FDA for that purpose. Therefore, the liquid silicone was adulterated and misbranded. The 152 gallons of silicone equates to 3,196 sessions. At $500 per treatment, Taylor’s mid-range fee, proceeds from the illegal injections total at least $1,598,000.
As part of his plea agreement, Taylor has agreed to plead guilty to a criminal information that will be filed in Prince George’s County Circuit Court, admitting that Taylor’s conduct resulted in the death of the victim in March 2014. In exchange, the Prince George’s County State’s Attorney’s Office dismissed first degree murder charges which were pending against Taylor.
Taylor, the U.S. Attorney’s Office, and Prince George’s County State’s Attorney’s Office have agreed that if the Court accepts the plea agreement Taylor will be sentenced to between 12 and 15 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for August 19, 2016 at 9:30 a.m. Taylor remains detained.
United States Attorney Rod J. Rosenstein praised the FDA Office of Criminal Investigations’ Metro Washington Field Office, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston and William D. Moomau, who are prosecuting the case.
Niagara Falls Man Sentenced for Role in Marijuana ConspiracyRead 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 Kevin C. Farrell, 33, of Niagara Falls, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 kilograms or more of marijuana, was sentenced to 21 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Edward H. White, who handled the case, stated that between 2002 through 2010, the defendant conspired with others by purchasing half pound and one pound quantities of marijuana from him. Farrell then redistributed the marijuana in smaller quantities to a number of individuals in Niagara County.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division; the New York State Police, under the direction of Major Steven Nigrelli; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Niagara County Sheriff's Department, under the direction of Sheriff James Voutour; the United States Border Patrol, under the direction of Chief Patrol Agent Brian Hastings; Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division; the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto; the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, under the direction of Edward T. Bradley, Special Agent in Charge, Northeast Field Office; Toronto Police Services, under the direction of Chief Mark Saunders; Niagara Regional Police, under the direction of Chief Jeffrey McGuire; Peel Regional Police, under the direction of Chief Jennifer Evans; Ontario Provincial Police, under the direction of Commissioner Vince Hawkes; and the Canada Border Service Agency.
Newcastle Man Sentenced to over 5 Years in Prison for Defrauding the United Auburn Indian CommunityRead the Press Release
SACRAMENTO, Calif. — Gregory Scott Baker, 48, of Newcastle, was sentenced on Thursday by United States District Judge Troy L. Nunley to five years and four months in prison and ordered to pay $18 million in restitution for defrauding the United Auburn Indian Community (UIAC), conspiring to launder monetary instruments, and filing a false tax return, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between October 2006 and December 2007, Baker and Bart Wayne Volen, 54, of San Diego and Haiku, Hawaii, and Darrell Patrick Hinz, 48, of Cameron Park, engaged in a scheme to defraud the UIAC. An indictment from August 2012 charged the defendants with conspiring to commit mail and wire fraud and various money laundering violations. A superseding indictment from April 2013 added additional charges, alleging that Volen and Hinz filed false tax returns in 2006 and 2007, and that Baker filed false tax returns from 2006 through 2009. The defendants ultimately stole over $18 million from the UAIC through their scheme.
“With the help of his co-defendants, Gregory Scott Baker used his position as Tribal Administrator to steal over $18 million from the UAIC,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “By concealing and disguising the proceeds of the fraud, the defendant received numerous assets and personal property, totaling over $1.4 million. This sentencing should send a clear message that those involved in these types of schemes will be held accountable.”
According to court documents, in October 2006, the UAIC hired Volen, a developer, to finish construction on a school, a community center, and administrative offices on UAIC‑owned property on Indian Hills Road in Auburn. Volen submitted false and inflated invoices to the UAIC, and Baker and Hinz, both UAIC employees, approved the fraudulent invoices based on a kickback agreement between the three men. Volen supported his invoices with inflated cost proposals from his general contractor’s company, Sequoia Pacific Builders (SPB), and, at times, inflated invoices from various subcontractors. At Volen’s direction, over 160 SPB cost proposals were fraudulently inflated.
Baker was the UAIC tribal administrator whose duties included overseeing the Indian Hills office project. In this position of trust, he was subordinate only to the UAIC tribal council. Hinz was a contract employee hired by the UAIC to manage the construction at the Indian Hills office project site. Both Baker and Hinz were required to approve all invoices before the UAIC tribal council would sign checks to pay for completed work. During the scheme to defraud the tribe, both Baker and Hinz engaged in conduct to ensure that the tribal council would pay for the inflated and fraudulent invoices submitted by Volen. They were later paid by Volen for their participation in the scheme.
In order to disguise the proceeds of the fraud, Hinz sent a number of fraudulent invoices to Volen. These invoices were for consulting work that Hinz claimed he did for Volen. After the issuance of the false invoices, Volen sent Hinz 29 checks, totaling approximately $7.5 million. Hinz paid Baker indirectly for his assistance in the scheme, using money he received from Volen.
According to court documents, Hinz paid for a $12,500 weekend trip that he and Baker took in Hawaii and for certain obligations owed by Baker. Hinz also purchased a number of things for Baker, including various assets, personal property — a $70,000 BMW and a mobile home — several investment properties, a vacation condominium in South Lake Tahoe, and various improvements to property, such as a $54,000 pool at his primary residence. All of these transactions were conducted for the purpose of concealing and disguising the proceeds from the UAIC fraud. During the course of the scheme, Baker received over $1.4 million.
According to court documents, Baker filed tax returns that failed to report the income he derived from the scheme. As a result, the United States suffered a tax loss of between $250,000 and $550,000.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith, John K. Vincent, and Kevin C. Khasigian are prosecuting the case.
Hinz and Volen previously pleaded guilty to similar charges in this case and are scheduled to be sentenced on June 16, 2016 and August 4, 2016, respectively. Chris W. Eatough, the owner of Sequoia Pacific Builders, previously pleaded guilty to a felony related to this case on June 20, 2013 (case number 2:13-cr-214 TLN). Eatough is scheduled to be sentenced on July 28, 2016. Both Hinz and Volen have agreed to pay at least $17 million in restitution to the UAIC. Eatough has agreed to pay between $600,000 and $950,000 in restitution to the UAIC.
These defendants face a maximum sentence of 20 years in prison, a $250,000 fine, or twice the value of the gross gain or loss, and a three-year term of supervised release for conspiring to commit mail and wire fraud. The maximum statutory penalty for conspiring to launder monetary instruments is 20 years in prison, a $500,000 fine or twice the value of the laundered money, and a three-year term of supervised release. The maximum statutory penalty for the tax violation is three years in prison, a $100,000 fine, or a fine of twice the value of the gross gain or loss, and a one-year term of supervised release. 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.
Napoleonville Woman Pleads Guilty to Lying to Federal AgentRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHERKISSA JACKSON, 33, of Napoleonville, pled guilty yesterday to an Indictment charging her with one count of false statements.
According to court documents, on September 3, 2008, following Hurricane Gustave impacting Napoleonville, JACKSON filed an application with the Department of Homeland Security Federal Emergency Management Agency on claiming the loss of a trailer. On October 31, 2008, JACKSON received via wire transfer $28,800 into her account based on her claim. However, on January 6, 2007, the year before the storm, JACKSON sold the trailer to another party as was evidenced by a bill of sale and did not own the trailer when Hurricane Gustav struck Napoleonville. On or about February 23, 2012, JACKSON lied to a Special Agent of the Office of the Inspector General, Department of Homeland Security when she told the agent that she owned the trailer in Napoleonville at the time of Hurricane Gustav.
JACKSON faces a possible maximum sentence of five (5) years imprisonment, and/or a fine of $250,000 and up to three (3) years of supervised release, as well as restitution. U.S. District Judge Eldon E. Fallon set sentencing for September 1, 2016.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General, in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Mexican Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Juvenal Aguilar-Gonzalez, 33, of Mexico, pleaded guilty to illegally reentering the United States after having been previously deported. Aguilar-Gonzalez, who was arrested on March 18, 2016, was immediately sentenced to time served.
Juvenal Aguilar-Gonzalez, using the name Javier Mandujano-Aguilar, was arrested by the Nashua Police Department on March 8, 2016 for operating a vehicle without a valid license. A set of fingerprints taken by the Nashua Police while booking Aguilar-Gonzalez were submitted to Immigration and Customs Enforcement – Enforcement and Removal Operations (ICE-ERO) and were found to match fingerprints associated with a record of the defendant’s previous deportation in 2011. A Deportation Officer checked ICE indices and reviewed excerpts from the defendant’s alien file and learned that the defendant had been previously deported from the United States to Mexico. A comparison of the Nashua Police booking photograph to photographs found in the defendant’s alien file was also a match.
On March 18, 2016, ICE ERO Officers were conducting surveillance on the last known address of the defendant. At approximately 5:35 a.m., Deportation Officers identified Aguilar-Gonzalez as he exited the residence and entered the passenger side of a white Ford Pick-up truck the defendant has been known to operate in the past.
The defendant was approached by a Deportation Officer who asked the defendant his name to which he replied “Javier.” The Deportation Officer then asked the defendant in Spanish if he had any documents to be in the U.S. legally to which the defendant replied “no.” Aguilar-Gonzalez was then taken into ICE custody for being illegally present in the U.S. and transported to the Manchester ICE office for administrative processing. The defendant will now be deported.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Member of Al Qaeda in the Arabian Peninsula Sentenced to 40 Years in Prison for Terrorism ChargesRead the Press Release
Minh Quang Pham, aka Amin, 33, was sentenced to 40 years in prison today in the Southern District of New York for terrorism charges based on Pham’s efforts in support of al Qaeda in the Arabian Peninsula (AQAP), a designated foreign terrorist organization. On Jan. 8, 2016, Pham pleaded guilty to one count of providing material support to AQAP, one count of conspiring to receive military training from AQAP and one count of possessing and using a machine gun in furtherance of crimes of violence.
The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
“This sentence holds Minh Quang Pham accountable for his terrorist activities, including providing material support to al Qaeda in the Arabian Peninsula and receiving explosives training from Anwar al-Aulaqi in Yemen for the purpose of committing an attack in the United Kingdom,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we will continue to bring justice to those who seek to aid designated foreign terrorist organizations in their efforts to commit violent attacks against the United States and our allies.”
“Minh Quang Pham committed himself to the violent mission of al Qaeda in the Arabian Peninsula, a terrorist organization that has claimed responsibility for deadly attacks around the world, including the 2015 Charlie Hebdo attack in Paris,” said U.S. Attorney Bharara. “Pham went to Yemen to receive military training from AQAP and contributed to Inspire magazine, a recruitment tool and ‘how-to’ guide for would-be terrorists around the world. This prosecution and today’s sentencing show that terrorists and those who support them will continue to be brought to justice in American courts, thanks to the continuing resolve of the Department of Justice, this Office and our global law enforcement partners.”
"Minh Pham traveled to Yemen, where he received military-style training from al Qaeda in the Arabian Peninsula, including learning to build explosive devices, with the intent to commit harm against the United States and our allies," said Assistant Director in Charge Abbate. "Pham also contributed to terrorist propaganda in order to promote acts of violence and hate across the globe. This sentence sends a strong message that the FBI and our law enforcement partners can and will track down dangerous terrorists anywhere in the world and return them to face justice for their crimes.”
According to the indictment, extradition materials, court filings and statements made at related court proceedings, including today’s sentencing:
In December 2010, after informing others that he planned to travel to Ireland, Pham traveled from London, where he resided, to Yemen, the principal base of operations for AQAP. Pham traveled to Yemen in order to join AQAP, to wage jihad on behalf of AQAP and to martyr himself for AQAP’s cause. After arriving in Yemen, he swore an oath of loyalty to AQAP in the presence of an AQAP commander.
While in Yemen in 2010 and 2011, Pham provided assistance to and received training from Anwar al-Aulaqi, a U.S.-born senior leader of AQAP. Al-Aulaqi advised Pham to return to the United Kingdom for the purpose of finding and making contact with individuals who, like Pham, wanted to travel to Yemen to join AQAP. Al-Aulaqi also provided Pham with money, as well as a telephone number and e-mail address that Pham was to use to contact al-Aulaqi upon his return to the United Kingdom. In addition, Pham exchanged his laptop computer with al-Aulaqi, who provided him with a new “clean” laptop to take with him when he returned to the United Kingdom so that the authorities would not find anything if they searched his computer.
In or about June 2011, prior to his departure from Yemen, Pham approached al-Aulaqi about conducting a suicide attack whereby he would “sacrifice” himself on behalf of AQAP. Al-Aulaqi personally taught Pham how to create a lethal explosive device using household chemicals and directed Pham to detonate such an explosive device at the arrivals area of London’s Heathrow International Airport following Pham’s return to the United Kingdom in 2011. Al-Aulaqi instructed Pham to carry an explosive in a concealed backpack and target the area where flights arrived from the United States or Israel.
During his time in Yemen, Pham also assisted with the preparation and dissemination of AQAP’s propaganda magazine, Inspire. Pham worked directly with now-deceased U.S. citizen Samir Khan, who was a prominent member of AQAP responsible for editing and publishing Inspire. Pham, who has college degrees in both graphic design and animation, received training in the various types of software used for Inspire and worked closely with Khan, contributing to the magazine in numerous ways. Pham used graphic design software to edit videos and photos that would be used as propaganda in Inspire; recorded television programs that Khan might find useful to the magazine; and offered his camera to be used for the taking of numerous photos used for Inspire. Pham also posed in photographs that accompanied Inspire articles and provided instructions to its followers. Among those were a series of photographs accompanying an article with instructions on disassembling and cleaning a Kalashnikov assault rifle. In another photograph, accompanying an article entitled, “Why Did I Choose Al Qaeda,” which was written by al-Aulaqi, Pham and three other men were shown wielding automatic Kalashnikov assault rifles. In addition, AQAP trained Pham in the use of a Kalashnikov assault rifle and provided him such a rifle, which he used in furtherance of his activities on behalf of AQAP in Yemen.
On July 27, 2011, Pham returned to the United Kingdom. Upon his arrival at London’s Heathrow International Airport, U.K. authorities detained Pham, searched him and recovered various materials from him, including various electronic media that contained computer files forensically identical to those possessed by a cooperating witness who had previously reported sharing electronic documents with Pham while they were in Yemen with AQAP. In addition, Pham was found to be in possession of a live round of .762 caliber armor-piercing ammunition, which is consistent with ammunition that is used in a Kalashnikov assault rifle.
Pham was arrested in the United Kingdom on June 29, 2012, and extradited to the United States in February 2015.
In addition to the 40 year prison sentence, U.S. District Judge Alison J. Nathan of the Southern District of New York also imposed a life term of supervised release and a $300 special assessment. On Jan. 8, 2016, Judge Nathan issued an order that Pham be removed from the United States to the United Kingdom upon completion of his sentence.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the extraordinary investigative work of the FBI’s Washington Field Office. They also expressed their gratitude to the New York Joint Terrorism Task Force for the critical role it played in the investigation and prosecution. Assistant Attorney General Carlin and U.S. Attorney Bharara also thanked the Department of Justice’s Office of International Affairs for their significant assistance, as well as the Metropolitan Police Service/SO 15 Counter Terrorism Command at New Scotland Yard and the Crown Prosecution Service for their cooperation in the investigation and prosecution.
This case is being prosecuted by Assistant U.S. Attorneys Anna M. Skotko, Sean S. Buckley, Shane T. Stansbury and Ian McGinley of the Southern District of New York, with assistance from Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Member of Al Qaeda in the Arabian Peninsula Sentenced to 40 Years in Prison in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that MINH QUANG PHAM, a/k/a “Amin,” was sentenced today in Manhattan federal court to 40 years in prison for his efforts in support of al Qaeda in the Arabian Peninsula (“AQAP”), a designated foreign terrorist organization. PHAM was arrested in the United Kingdom on June 29, 2012, and was extradited to the United States in February 2015. PHAM pleaded guilty on January 8, 2016, to providing material support to AQAP, conspiring to receive military training from AQAP, and possessing and using a machine gun in furtherance of crimes of violence. U.S. District Judge Alison J. Nathan imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Minh Quang Pham committed himself to the violent mission of al Qaeda in the Arabian Peninsula, a terrorist organization that has claimed responsibility for deadly attacks around the world, including the 2015 Charlie Hebdo attack in Paris. Pham went to Yemen to receive military training from AQAP and contributed to Inspire magazine, a recruitment tool and ‘how-to’ guide for would-be terrorists around the world. This prosecution and today’s sentencing show that terrorists and those who support them will continue to be brought to justice in American courts, thanks to the continuing resolve of the Department of Justice, this Office and our global law enforcement partners.”
Assistant Attorney General John P. Carlin said: “This sentence holds Minh Quang Pham accountable for his terrorist activities, including providing material support to al Qaeda in the Arabian Peninsula and receiving explosives training from Anwar al-Aulaqi in Yemen for the purpose of committing an attack in the United Kingdom. Counterterrorism is the National Security Division’s highest priority, and we will continue to bring justice to those who seek to aid designated foreign terrorist organizations in their efforts to commit violent attacks against the United States and our allies.”
According to the Indictment, extradition materials and court filings, and statements made at related court proceedings, including today’s sentencing:
AQAP was designated by the United States Department of State as a foreign terrorist organization in January 2010. AQAP’s leadership has publicly claimed responsibility for plots to murder U.S. nationals and commit terrorist attacks against U.S. interests, including the 2009 Christmas Day bomb plot, in which an AQAP operative attempted to detonate an explosive device on a civilian airplane traveling to Detroit, Michigan. Only months later, AQAP attempted to detonate explosive devices within the holds of commercial airliners traveling to the United States. More recently, AQAP claimed responsibility for the January 2015 massacre in Paris, France at the office of the magazine Charlie Hebdo, which had published cartoons of the Prophet Mohammed. The attack killed 11 people and injured 11 others.
In December 2010, after informing his wife and others that he planned to travel to Ireland, PHAM traveled from London, where he resided, to Yemen, the principal base of operations for AQAP. PHAM traveled to Yemen in order to join AQAP, to wage jihad on behalf of AQAP, and to martyr himself for AQAP’s cause. After arriving in Yemen, he swore an oath of loyalty to AQAP in the presence of an AQAP commander.
While in Yemen in 2010 and 2011, PHAM provided assistance to and received training from Anwar al-Aulaqi, a U.S.-born senior leader of AQAP. Prior to al-Aulaqi’s death in September 2011, al-Aulaqi called on his followers to conduct attacks against American interests abroad, including by killing American civilians. Al-Aulaqui advised PHAM to return to the United Kingdom for the purpose of finding and making contact with individuals who, like PHAM, wanted to travel to Yemen to join AQAP, and provided PHAM with money, as well as a telephone number and e-mail address that PHAM was to use to contact al-Aulaqi upon his return to the United Kingdom. In addition, PHAM provided his laptop computer to al-Aulaqi, and al-Aulaqi provided PHAM with a new “clean” laptop to take with him when he returned to the United Kingdom so that PHAM would not have any issues if authorities searched his computer.
In or about June 2011, prior to his departure from Yemen, PHAM approached al-Aulaqi about conducting a suicide attack whereby he would “sacrifice” himself on behalf of AQAP. Al-Aulaqi instructed PHAM to conduct a bombing at Heathrow International Airport, and specifically directed him to target the arrivals section, with a specific focus on the area where flights arrived from the United States or Israel. In connection with that terrorist plot, which would have entailed PHAM carrying the explosive concealed in a backpack, PHAM received training from AQAP, including from al-Aulaqi, on how to build an explosive device using readily available household chemicals and other materials. In particular, al-Aulaqi instructed PHAM to tape bolts around the explosive device to act as shrapnel.
During his time in Yemen, PHAM also assisted with the preparation and dissemination of AQAP’s propaganda magazine, Inspire. AQAP uses Inspire magazine not only as a recruitment and propaganda tool, but also as an operational tool by encouraging its supporters to engage in terrorist attacks against the United States and other Western countries. In furtherance of that goal, AQAP has published articles praising so-called “lone-wolf” style attacks, as well as articles providing detailed instructions on how to conduct a terror attack using household or commercially available materials. Dzkokhar Tsarnaev – the convicted “Boston bomber” responsible for detonating two homemade bombs made from pressure cookers near the finish line of the Boston Marathon in April 2013, killing three spectators and maiming 260 other people – previously told the Federal Bureau of Investigation (“FBI”) that he and his brother learned how to create the pressure cooker bombs from Inspire magazine.
PHAM worked directly with now-deceased U.S. citizen Samir Kahn, who was a prominent member of AQAP and responsible for editing and publishing Inspire magazine. PHAM, who has college degrees in both graphic design and animation, received training in the various types of software used for Inspire magazine and worked closely with Khan, contributing to the magazine in numerous ways. For example, PHAM used graphic design software to edit videos and photos that would be used as propaganda in Inspire magazine; recorded television programs for Khan that Khan might find useful to the magazine; and offered his camera to be used for the taking of numerous photos used for Inspire magazine. PHAM also posed in photographs that accompanied Inspire magazine’s articles and provided instructions to its followers. Among those were a series of photographs accompanying an article with instructions on disassembling and cleaning a Kalashnikov assault rifle. In another photograph, accompanying an article entitled, “Why Did I Choose Al Qaeda,” which was written by al-Aulaqi, PHAM and three other men were shown wielding automatic Kalashnikov assault rifles. During his time in Yemen, PHAM received training from AQAP in the use of a Kalashnikov assault rifle, and was provided with a Kalashnikov assault rifle by the organization, which he carried with him in furtherance of his activities on behalf of AQAP in Yemen.
On July 27, 2011, PHAM returned to the United Kingdom from Yemen. Upon his arrival at London’s Heathrow International Airport, United Kingdom authorities detained PHAM, searched him, and recovered various materials from him. For example, PHAM was found in possession of various electronic media that contained computer files forensically identical to those possessed by a cooperating witness who had previously reported sharing electronic documents with PHAM while they were in Yemen with AQAP. In addition, upon his arrival in the United Kingdom from Yemen, PHAM was found to be in possession of a live round of .762 caliber armor-piercing ammunition, which is consistent with ammunition that is used in a Kalashnikov assault rifle.
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In imposing the 40-year prison term, Judge Nathan found that PHAM had been convicted of “among the most serious crimes” prosecutable in the United States, the details of which were “extremely disturbing.” Judge Nathan found that PHAM provided material support to AQAP, including by agreeing to carry out a “horrific and violent” plot to conduct a suicide bombing at Heathrow International Airport in London.
In addition to the 40-year prison term, Judge Nathan imposed a life term of supervised release and a $300 special assessment. On January 8, 2016, Judge Nathan issued an order that PHAM be ordered removed from the United States to the United Kingdom promptly upon completion of his sentence.
Mr. Bharara praised the extraordinary investigative work of the Washington, D.C., Field Office of the FBI. He also expressed his gratitude to the New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department – for the critical role it played in the investigation and prosecution. In addition, Mr. Bharara thanked the Department of Justice’s National Security Division and Office of International Affairs. Lastly, Mr. Bharara also thanked the British law enforcement authorities, including the Metropolitan Police Service/SO15 Counter Terrorism Command at New Scotland Yard and the Crown Prosecution Service, for their cooperation in the investigation and prosecution.
This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Anna M. Skotko, Sean S. Buckley, Shane T. Stansbury, and Ian McGinley are in charge of the prosecution, with assistance provided by Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Man Sentenced to Seven Years in Prison for Assaulting Two Women Near Foggy Bottom Metro PlazaRead the Press Release
WASHINGTON – Mustapha Kone, 48, who has no fixed address, was sentenced today to seven years in prison on kidnapping and other charges stemming from separate attacks against two young women near the Foggy Bottom Metro station in the fall of 2014, announced U.S. Attorney Channing D. Phillips.
Kone pled guilty in March 2016, in the Superior Court of the District of Columbia, to charges of kidnapping, threats, and assault. He was sentenced by the Honorable Florence Pan. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 19, 2014, at about 3:30 a.m., one of the victims was sitting on a bench in the above-ground plaza near the Foggy Bottom Metro station, in the 2300 block of I Street NW. The defendant – a total stranger – approached the woman and told her that he wanted her to come with him into the nearby bushes as he had something that he wanted to show her. When she declined, Kone grabbed her and tried to pull her into the bushes. She resisted, and Kone told her that if she tried to leave, he would kill her. She began to scream, and Kone let go of her. She then ran to her nearby residence and called 911 to report the assault.
Meanwhile, Kone walked further west in that same plaza, where he encountered the second victim, another total stranger. He walked up to her and told her that he wanted to have sex with her. He then knocked the woman to the ground and got on top of her. Unable to get away, she began to scream. A group of nearby Good Samaritans then came to her aid, yelling at Kone to get off of her. He did, and began to flee down New Hampshire Avenue, toward the Watergate complex. Two of the Good Samaritans gave chase, calling 911 as they pursued him.
Kone ran behind a bush or tree in front of one of the nearby apartment buildings. The two Good Samaritans stood watch, urging the 911 operator to get the police to their location quickly before Kone could flee again. While those two young men remained, keeping an eye on Kone, campus police from George Washington University arrived and arrested the defendant.
In announcing the sentence, U.S. Attorney Phillips praised the work of police from the George Washington University, who initially apprehended the defendant, and of detectives from the Metropolitan Police Department’s Sexual Assault Unit, which investigated the case. He also expressed appreciation for the assistance provided by the Department of Justice’s Office for Victims of Crime. Additionally, he commended the bravery and willingness to become involved of the Good Samaritans who came to the aid of the victims.
U.S. Attorney Phillips also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Colleen Kennedy and Mark Aziz, Paralegal Specialists Michelle Chambers and D’Yvonne Key, and David Foster, Tracey Hawkins, La June Thames, and Katina Adams-Washington of the Victim/Witness Assistance Unit. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.