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Thursday 24 March 2016
Seven Iranians Working for Islamic Revolutionary Guard Corps-Affiliated Entities Charged for Conducting Coordinated Campaign of Cyber Attacks Against U.S. Financial SectorRead the Press Release
One Defendant Also Charged with Obtaining Unauthorized Access into Control Systems of a New York Dam
A grand jury in the Southern District of New York indicted seven Iranian individuals who were employed by two Iran-based computer companies, ITSecTeam (ITSEC) and Mersad Company (MERSAD), that performed work on behalf of the Iranian Government, including the Islamic Revolutionary Guard Corps, on computer hacking charges related to their involvement in an extensive campaign of over 176 days of distributed denial of service (DDoS) attacks.
Ahmad Fathi, 37; Hamid Firoozi, 34; Amin Shokohi, 25; Sadegh Ahmadzadegan, aka Nitr0jen26, 23; Omid Ghaffarinia, aka PLuS, 25; Sina Keissar, 25; and Nader Saedi, aka Turk Server, 26, launched DDoS attacks against 46 victims, primarily in the U.S financial sector, between late 2011 and mid-2013. The attacks disabled victim bank websites, prevented customers from accessing their accounts online and collectively cost the victims tens of millions of dollars in remediation costs as they worked to neutralize and mitigate the attacks on their servers. In addition, Firoozi is charged with obtaining unauthorized access into the Supervisory Control and Data Acquisition (SCADA) systems of the Bowman Dam, located in Rye, New York, in August and September of 2013.
The indictment was announced today by Attorney General Loretta E. Lynch, Director James B. Comey of the FBI, Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York.
“In unsealing this indictment, the Department of Justice is sending a powerful message: that we will not allow any individual, group, or nation to sabotage American financial institutions or undermine the integrity of fair competition in the operation of the free market,” said Attorney General Lynch. “Through the work of our National Security Division, the FBI, and U.S. Attorney’s Offices around the country, we will continue to pursue national security cyber threats through the use of all available tools, including public criminal charges. And as today’s unsealing makes clear, individuals who engage in computer hacking will be exposed for their criminal conduct and sought for apprehension and prosecution in an American court of law.”
“The FBI will find those behind cyber intrusions and hold them accountable — wherever they are, and whoever they are,” said Director Comey. “By calling out the individuals and nations who use cyber attacks to threaten American enterprise, as we have done in this indictment, we will change behavior.”
“Like past nation state-sponsored hackers, these defendants and their backers believed that they could attack our critical infrastructure without consequence, from behind a veil of cyber anonymity,” said Assistant Attorney General Carlin. “This indictment once again shows there is no such veil – we can and will expose malicious cyber hackers engaging in unlawful acts that threaten our public safety and national security.”
“The charges announced today respond directly to a cyber-assault on New York, its institutions and its infrastructure,” said U.S. Attorney Bharara. “The alleged onslaught of cyber-attacks on 46 of our largest financial institutions, many headquartered in New York City, resulted in hundreds of thousands of customers being unable to access their accounts and tens of millions of dollars being spent by the companies trying to stay online through these attacks. The infiltration of the Bowman Avenue dam represents a frightening new frontier in cybercrime. These were no ordinary crimes, but calculated attacks by groups with ties to Iran’s Islamic Revolutionary Guard and designed specifically to harm America and its people. We now live in a world where devastating attacks on our financial system, our infrastructure and our way of life can be launched from anywhere in the world, with a click of a mouse. Confronting these types of cyber-attacks cannot be the job of just law enforcement. The charges announced today should serve as a wake-up call for everyone responsible for the security of our financial markets and for guarding our infrastructure. Our future security depends on heeding this call.”
According to the indictment unsealed today in federal court in New York City:
DDoS Attacks
The DDoS campaign began in approximately December 2011, and the attacks occurred only sporadically until September 2012, at which point they escalated in frequency to a near-weekly basis, between Tuesday and Thursdays during normal business hours in the United States. On certain days during the campaign, victim computer servers were hit with as much as 140 gigabits of data per second and hundreds of thousands of customers were cut off from online access to their bank accounts.
Fathi, Firoozi and Shokohi were responsible for ITSEC’s portion of the DDoS campaign against the U.S. financial sector and are charged with one count of conspiracy to commit and aid and abet computer hacking. Fathi was the leader of ITSEC and was responsible for supervising and coordinating ITSEC’s portion of the DDoS campaign, along with managing computer intrusion and cyberattack projects being conducted for the government of Iran. Firoozi was the network manager at ITSEC and, in that role, procured and managed computer servers that were used to coordinate and direct ITSEC’s portion of the DDoS campaign. Shokohi is a computer hacker who helped build the botnet used by ITSEC to carry out its portion of the DDoS campaign and created malware used to direct the botnet to engage in those attacks. During the time that he worked in support of the DDoS campaign, Shokohi received credit for his computer intrusion work from the Iranian government towards his completion of his mandatory military service requirement in Iran.
Ahmadzadegan, Ghaffarinia, Keissar and Saedi were responsible for managing the botnet used in MERSAD’s portion of the campaign, and are also charged with one count of conspiracy to commit and aid and abet computer hacking. Ahmadzadegan was a co-founder of MERSAD and was responsible for managing the botnet used in MERSAD’s portion of the DDoS campaign. He was also associated with Iranian hacking groups Sun Army and the Ashiyane Digital Security Team (ADST), and claimed responsibility for hacking servers belonging to the National Aeronautics and Space Administration (NASA) in February 2012. Ahmadzadegan has also provided training to Iranian intelligence personnel. Ghaffarinia was a co-founder of MERSAD and created malicious computer code used to compromise computer servers and build MERSAD’s botnet. Ghaffarinia was also associated with Sun Army and ADST, and has also claimed responsibility for hacking NASA servers in February 2012, as well as thousands of other servers in the United States, the United Kingdom and Israel. Keissar procured computer servers used by MERSAD to access and manipulate MERSAD’s botnet, and also performed preliminary testing of the same botnet prior to its use in MERSAD’s portion of the DDoS campaign. Saedi was an employee of MERSAD and a former Sun Army computer hacker who expressly touted himself as an expert in DDoS attacks. Saedi wrote computer scripts used to locate vulnerable servers to build the MERSAD botnet used in its portion of the DDoS campaign.
For the purpose of carrying out the attacks, each group built and maintained their own botnets, which consisted of thousands of compromised computer systems owned by unwitting third parties that had been infected with the defendants’ malware, and subject to their remote command and control. The defendants and/or their unindicted co-conspirators then sent orders to their botnets to direct significant amounts of malicious traffic at computer servers used to operate the websites for victim financial institutions, which overwhelmed victim servers and disabled them from customers seeking to legitimately access the websites or their online bank accounts. Although the DDoS campaign caused damage to the financial sector victims and interfered with their customers’ ability to do online banking, the attacks did not affect or result in the theft of customer account data.
DDoS Botnet Remediation
Since the attacks, the Department of Justice and the FBI have worked together with the private sector to effectively neutralize and remediate the defendants’ botnets. Specifically, through approximately 20 FBI Liaison Alert System (FLASH) messages, the FBI regularly provided updated information collected from the investigation regarding the identity of systems that been infected with the defendants’ malware and operating as bots within the malicious botnets. In addition, the FBI conducted extensive direct outreach to Internet service providers responsible for hosting systems that have been infected with the defendants’ malware to provide them information and assistance in removing the malware to protect their customers and other potential victims of the defendants’ unlawful cyber activities. Through these outreach efforts and the cooperation of the private sector, over 95 percent of the known part of the defendants’ botnets have been successfully remediated.
Bowman Dam Intrusion
Between Aug. 28, 2013, and Sept. 18, 2013, Firoozi repeatedly obtained unauthorized access to the SCADA systems of the Bowman Dam, and is charged with one substantive count of obtaining and aiding and abetting computer hacking. This unauthorized access allowed him to repeatedly obtain information regarding the status and operation of the dam, including information about the water levels, temperature and status of the sluice gate, which is responsible for controlling water levels and flow rates. Although that access would normally have permitted Firoozi to remotely operate and manipulate the Bowman Dam’s sluice gate, Firoozi did not have that capability because the sluice gate had been manually disconnected for maintenance at the time of the intrusion.
Remediation for the Bowman Dam intrusion cost over $30,000.
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All seven defendants face a maximum sentence of 10 years in prison for conspiracy to commit and aid and abet computer hacking. Firoozi faces an additional five years in prison for obtaining and aiding and abetting unauthorized access to a protected computer at the Bowman Dam.
An indictment is merely an accusation and all defendants are presumed innocent unless proven guilty in a court of law.
The case was investigated by the FBI, including the Chicago; Cincinnati; New York; Newark, New Jersey; Phoenix; and San Francisco Field Offices. This case is being prosecuted by Assistant U.S. Attorney Timothy T. Howard of the Southern District of New York, with the substantial assistance of Deputy Chief Sean M. Newell of the National Security Division’s Counterintelligence and Export Control Section.
Fathi et al Indictment.pdf
Sentencings for March 21 - March 22, 2016Read the Press Release
Amber Blane Redick, 32, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 22, 2016, for distribution of 50 grams or less of methamphetamine and aiding and abetting. Redick was arrested in Fremont County, Wyoming. She received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $200.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Ann Reed, 24, of Highlands Ranch, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 21, 2016, for conspiracy to distribute 50 grams or less of methamphetamine. Reed was arrested in Denver, Colorado. She received three years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Department of Homeland Security.
Richard Shelby Schutt, Jr., 48, of Lingle, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 21, 2016, for conspiracy to distribute 50 grams or more of methamphetamine. Schutt was arrested in Torrington. He received 78 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $500.00. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Second Man Pleads Guilty to Tying Rope Around Neck of James Meredith Statue on Ole Miss CampusRead the Press Release
WASHINGTON – A second man pleaded guilty to a federal civil rights crime for tying a rope and Confederate flag around the neck of the James Meredith Statue at the University of Mississippi. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division made the announcement.
Austin Reed Edenfield, of Kennesaw, Georgia, pleaded guilty to one count of using a threat of force to intimidate African-American students and employees because of their race or color. Edenfield was charged by information shortly before the plea. His sentencing date has not yet been set.
A second defendant, Graeme Phillip Harris, of Alpharetta, Georgia, pleaded guilty to the same charge in June 2015 and was sentenced to six months in prison.
“The Department of Justice is committed to ensuring that our universities and our workplaces are free from threats of racial violence,” said Principal Deputy Assistant Attorney General Gupta. “We will hold accountable those who attempt to turn places of learning into places of intimidation and fear.”
Edenfield and Harris acknowledged that they used the cover of darkness to tie the rope and an outdated version of the Georgia state flag – which prominently depicts the Confederate battle flag – around the neck of the statue in the early morning hours of Feb. 16, 2014. The statue honors Meredith’s role as the University of Mississippi’s first African-American student after its contentious 1962 integration. At the time of the incident, both men were students at the University of Mississippi.
Edenfield admitted as part of his plea that he knew the appearance of the rope and flag would be threatening and intimidating to African-American students.
This case was investigated by the FBI’s Jackson Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Second Man Pleads Guilty to Tying Rope Around Neck of James Meredith Statue on Ole Miss CampusRead the Press Release
A second man pleaded guilty to a federal civil rights crime for tying a rope and Confederate flag around the neck of the James Meredith Statue at the University of Mississippi. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division made the announcement.
Austin Reed Edenfield, of Kennesaw, Georgia, pleaded guilty to one count of using a threat of force to intimidate African-American students and employees because of their race or color. Edenfield was charged by information shortly before the plea. His sentencing date has not yet been set.
A second defendant, Graeme Phillip Harris, of Alpharetta, Georgia, pleaded guilty to the same charge in June 2015 and was sentenced to six months in prison.
“The Department of Justice is committed to ensuring that our universities and our workplaces are free from threats of racial violence,” said Principal Deputy Assistant Attorney General Gupta. “We will hold accountable those who attempt to turn places of learning into places of intimidation and fear.”
Edenfield and Harris acknowledged that they used the cover of darkness to tie the rope and an outdated version of the Georgia state flag – which prominently depicts the Confederate battle flag – around the neck of the statue in the early morning hours of Feb. 16, 2014. The statue honors Meredith’s role as the University of Mississippi’s first African-American student after its contentious 1962 integration. At the time of the incident, both men were students at the University of Mississippi.
Edenfield admitted as part of his plea that he knew the appearance of the rope and flag would be threatening and intimidating to African-American students.
This case was investigated by the FBI’s Jackson Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Roanoke Man Pleads Guilty to Federal Gun ChargeRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who came to be in possession of firearms stolen from a local home last summer, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced today.
Brian Collins, 43, of Roanoke, Virginia, pled guilty today to one count of being a previously convicted felon illegally in possession of a firearm.
“This case, like so many others we prosecute, involves a prohibited user possessing a firearm, something that we will continue to work with our law enforcement partners to combat,” United States Attorney John P. Fishwick Jr. said today. “I firmly believe that keeping illegal guns off our streets is an important step in keeping our communities safe and we continue to work every day toward that goal.”
According to evidence presented at today’s hearing by Assistant United States Attorney Charlene R. Day, on August 24, 2015 a home in Vinton, Virginia was burglarized and at least six firearms were stolen. Following a thorough investigation by the Bedford County Sheriff’s Office, the Virginia State Police, the Rockbridge County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives, it was determined that Collins, who was not involved in the burglary, was in possession of some of the firearms taken during the burglary.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bedford County Sheriff’s Office, the Rockbridge County Sheriff’s Office and the Virginia State Police. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Reading Resident Charged with Illegal Reentry After DeportationRead the Press Release
PHILADELPHIA - Marcos Arana, 44, of Reading, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about February 29, 2016, Arana, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about September 5, 2000.
If convicted the defendant faces a maximum possible sentence of 20 years in prison.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Nelson S.T. Thayer, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Raleigh Man Sentenced to 15 Years for Human TraffickingRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, United States District Judge Terrence W. Boyle sentenced MAURICE MALIK SPENCER, 22, of Raleigh, North Carolina, to 180 months imprisonment, followed by 10 years of supervised release.
SPENCER was named in a six count Indictment filed on June 9, 2015. On December 9, 2015, SPENCER pled guilty to one count of Use of the Internet to Promote Prostitution and one count of Interstate Transportation for Prostitution (Mann Act).
The investigation revealed that SPENCER transported two female victims, one of whom was a 14-year-old female, from New York to North Carolina to engage in prostitution. Once in North Carolina, the defendant prostituted a third female victim as well. The defendant prostituted the two adult victims in September and November 2014; he also prostituted the 14-year-old victim in November 2014.
The defendant promoted his business by advertising the victims on internet websites and through social media websites such as Facebook. He also used websites such as Facebook to recruit his victims.
Throughout, the defendant used violence and threats of violence to control his victims and coerce them into continuing in prostitution. After his arrest, the defendant continued to threaten two victims.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Greenville Police Department. Assistant United States Attorney Erin Blondel represented the government.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Project Safe Childhood - Massachusetts Men Sentenced for Human TraffickingRead the Press Release
CONCORD, NEW HAMPSHIRE: U.S. Attorney Emily Gray Rice, Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Matt Etre and Salem Police Department Chief Paul Donovan today announced that Hansel German, 25, of Boston, Massachusetts, and Andy Pena, 21 of Jamaica Plain, Massachusetts, were sentenced to eight years in federal prison for their involvement in the trafficking of a minor for prostitution. Enoc Ayuso of Dorchester, Massachusetts was also sentenced to five years in federal prison for his role in the trafficking conspiracy. A fourth individual, Rafael Reyes, will be sentenced next week in the United States District Court.
United States Attorney Rice stated: “One of the highest priorities of the Department of Justice is protecting our children from predators. Today, we are announcing the results arising out of our prosecution of four individuals who were engaged in a particularly heinous form of child exploitation – human trafficking. It is only through the collaborative work of law enforcement at the federal, state and local levels and the bravery of a minor child to come forward and tell her story that this case was successfully prosecuted.”
Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Matt Etre said: “The announcement of the sentencing of the four individuals today brings a positive end to the USA’s prosecution and to HSI’s and its partners investigation, but the healing of a child victim is still a work in progress. HSI’s primary goal in pursuing these types of cases is to end this form of modern-day slavery and bring the victims out of the shadows in collaboration with our law enforcement agencies and non-government organizations. So let this case be a warning to those who feel that they can sexually exploit children and other vulnerable members of our community in New Hampshire that HSI and its partners will use all of their tools to identify you, bring you to justice and help rescue those victims that are living in the shadows.”
In February of 2014, Homeland Security Investigations, Manchester, New Hampshire, and the Salem, New Hampshire Police Department, with the assistance of the Boston Police Department, rescued a fifteen-year-old female who was engaging in prostitution from a Salem hotel room. Upon further investigation, authorities identified multiple individuals who were involved in the scheme to transport the female from Boston, Massachusetts to Salem, New Hampshire for prostitution. Today’s announcement is the result of the successful prosecution of those cases.
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Prisoner Sentenced in Plot to Smuggle Heroin into Attica PrisonRead the Press Release
UTICA, NEW YORK - Ramsi Uthman (42), an inmate with the New York State Department of Corrections, was sentenced today to serve 24 months in prison and three years of supervised release in connection with his guilty plea to a one-count indictment charging him with conspiring to smuggle heroin into Attica Correctional Facility, announced United States Attorney Richard S. Hartunian and Shelly Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
Ramsi Uthman is currently serving a 25-year jail sentence as a the result of his 2003 conviction in Onondaga County Court from an arson he committed at Temple Beth El in Syracuse. At the sentencing hearing today, United States District Judge David N. Hurd ordered 12 months of Mr. Uthman’s federal sentence on the heroin conspiracy conviction to run consecutive to his state prison sentence.
Uthman’s sentence today in Federal Court was in connection with his guilty plea to conspiring with his ex-wife, Twanda Uthman (40), of Liverpool, New York, and Jonathan Lind (29), of New York City, to possess with intent to distribute and to distribution of heroin. Uthman admitted that he arranged for Lind to mail a package containing approximately .948 grams of heroin to Twanda Uthman, which she then planned to smuggle into Attica Correctional Facility during a conjugal visit with Ramsi Uthman. At sentencing, Uthman admitted that he previously received illegal drugs in a similar manner while incarcerated at least 40 or 50 times. Twanda Uthman pled guilty to the one-count indictment and is scheduled to be sentenced in June.
Jonathan Lind is scheduled for trial in April 20161.
This case was investigated by the United States Postal Inspection Service and the New York State Department of Corrections and Community Supervision, Office of Special Investigations- Narcotics Unit, with the assistance of the U.S. Drug Enforcement Agency (DEA) and the New York State Police, Community Narcotics Enforcement Team (CNET). It was prosecuted by Assistant United States Attorney Michael F. Perry.
1 Johnathan Lind is charged by indictment. The charges therein are merely accusations and he is presumed innocent unless and until proven guilty.
Pennsylvania Man Sentenced to Prison for Conspiracy to Smuggle Turtles out of the United StatesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN TOKOSH, age 54, from Pennsylvania, was sentenced yesterday after previously pleading guilty to conspiracy to smuggle turtles out of the United States and to violation of the Lacey Act, as well as using a fictitious name and address in a mailing.
U.S. District Judge Ivan L.R. Lemelle sentenced TOKOSH to two years in prison, followed by six years of supervised release.
According to court records, TOKOSH admitted that he was part of a group of individuals involved in capturing North American Wood turtles, which are a threatened species, from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong. TOKOSH’s role in the conspiracy was to capture the North American Wood turtles from their native habitat in Pennsylvania, where it is illegal to hunt them, and then to ship them to a middleman in Covington, Louisiana.. TOKOSH also admitted to using the alias “Jay Rockington” in an effort to disguise that he was the source of the turtles.
“This case illustrates our commitment to fighting the illegal wildlife trade. The unlawful international trade in turtles fuels an unsustainable market that will drive our wild native species to extinction,” said U.S. Fish and Wildlife Service, Special Agent in Charge Luis Santiago. “I’d like to commend investigators with the US Fish and Wildlife Service, Homeland Security Investigations, United States Postal Inspection Service, and the Department of Justice for their dedication in this investigation.”
“The trafficking of illegal goods, whether it is guns, drugs, or in this case a threatened species of wildlife, Homeland Security Investigations is focused on protecting the security of our nation’s borders and will continue to prioritize cases of illegal smuggling and trafficking,” said Raymond R. Parmer Jr., Special Agent in Charge of HSI New Orleans. "The illicit trade of wildlife is not only a financial crime, but poses health and safety issues as well through these illegal transactions that can potentially transfer disease and other threats around the world."
“The Postal Inspection Service has sought for hundreds of years those who use the Postal Service for illegal gain,” stated Inspector in Charge Christopher M. Stifflemire, U.S. Postal Inspection Service. “The ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service’s mission. When criminals use the mail to defraud, Postal Inspectors will not hesitate to ensure they are brought to justice.”
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Pakistani Man Sentenced in Federal Court to More Than 3 Years in Prison for Scheme to Steal More Than $800,000 in Tax Refunds from the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations Division (“IRS-CI”), announced today that NISAR SAHI was sentenced today by United States District Judge Denise L. Cote to 37 months in prison for stealing government funds.
Manhattan U.S. Attorney Preet Bharara said: “For four years, Nisar Sahi stole hundreds of thousands of dollars in tax refunds that rightfully belonged to honest, hardworking American taxpayers. Now, thanks to the excellent investigation by the IRS, Sahi will face time in federal prison for stealing from the U.S. government.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “IRS-Criminal Investigation is committed to the investigation of fraudulent tax refund schemes. The investigation and prosecution of Nisar Sahi is just another example of the government’s diligence and persistence in identifying individuals who use other people’s personal information to file fraudulent tax returns for their own financial benefit and bringing them to justice.”
According to the Information to which SAHI pled guilty, and other court documents filed in this case:
From 2011 to 2015, SAHI devised and executed a scheme to obtain false and fraudulent tax returns totaling $803,995 from the IRS. SAHI carried out this scheme by preparing and submitting to the IRS federal income tax returns — using the names and social security numbers of others — and directing that the refunds be sent to bank accounts and addresses that he controlled.
In addition to the prison sentence, SAHI, 50, of Pakistan, was ordered to forfeit $319,712 in ill-gotten gains, and to pay restitution to the IRS in the same amount.
Mr. Bharara praised the outstanding investigative work of IRS-CI. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for its assistance.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorney Rebekah Donaleski is in charge of the prosecution.
Pacifica Man Sentenced to Ten Years in Prison for Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Robert Spence II was sentenced yesterday to ten years in prison for possession of child pornography, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Spence, 66, of Pacifica, pleaded guilty on December 1, 2015, to one count of possession of pornography depicting minors under the age of 12 engaging in sexually explicit conduct. According to his guilty plea, Spence acknowledged that, beginning no later than September 15, 2013, he communicated with individuals in the Philippines to obtain child pornography. Papers filed by the government reveal that a search warrant executed by FBI agents and Pacifica Police Department officers at Spence’s home found more than 1,200 images and videos of child pornography, including images depicting the sexual abuse of children as young as three and four years old. A federal grand jury indicted Spence on June 2, 2015, with possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B).
The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge. Judge Chhabria concluded that, because defendant had sustained prior convictions for sexual battery pursuant to California Penal Code § 243.4(a), he was subject to the mandatory minimum ten year term of imprisonment in 18 U.S.C. § 2252(b)(2). Spence has been ordered to self-surrender to begin serving his sentence no later than May 5, 2016. Judge Chhabria also imposed a seven year period of supervised release.
Assistant U.S. Attorney Sheila A.G. Armbrust prosecuted the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the Pacifica Police Department and the Federal Bureau of Investigation.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
Owner of Tunnel House in Calexico Arrested Today in ArizonaRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – March 24, 2016
CALEXICO, California - Augustin Enrique Cruz, the owner of the house in Calexico where a subterranean drug tunnel exit was discovered yesterday, was arrested today in Tucson, Arizona and charged with various narcotics trafficking, money laundering and tunnel-related crimes.
Enrique Cruz, also known as “Tinky,” was taken into custody by agents from U.S. Immigration and Customs Enforcement Homeland Security Investigations and is expected to be arraigned in the District of Arizona before his transfer to the Southern District of California.
Yesterday, about 100 federal, state and local law enforcement officials seized the tunnel following an extensive, multi-agency investigation. In total, agents have arrested five people including Enrique Cruz and seized almost 3,000 pounds of marijuana. Agents continued to investigate the 415-yard tunnel which originated in El Sarape restaurant in Mexicali, Baja California, Mexico. Also yesterday, U.S. Border Patrol agents stood guard at the tunnel house.
According to a criminal complaint, Enrique Cruz traveled from Arizona to the Calexico area on multiple occasions in November and December 2014 to look for property that would serve as the exit point of a tunnel from Mexicali in Baja California, Mexico. In January 2014, Cruz purchased the property at 902 E. Third Street in Calexico. It is the first time in this district that drug traffickers are known to have purchased property and constructed a house for the sole purpose of concealing the exit of a drug tunnel.
To finance the purchase of the parcel, Cruz’s coconspirators arranged for various cash pickups in Arizona and California. Cruz also met with the title company for the closing. The parcel was placed in Enrique Cruz’s name on July 1, 2015.
In addition to purchasing the property, Enrique Cruz and his coconspirators hired local contractors to build a new house. Based on federal wiretaps, the construction of the residence was expected to cost $86,000. Enrique Cruz’s boss directed the contractor to leave a space in the foundation for a floor safe, which was intended to be the exit point for the tunnel. According to court documents, Enrique Cruz rented a walk-behind saw and concrete blade on January 27, 2016, to widen the exit point of the tunnel.
In the fall of 2015, Cruz and his coconspirators traveled to Calexico to meet with the contractor to make payments for the construction of the new residence and construction subsequently began. Throughout October 2015 and November 2015, crews continued with the construction of the residence which was completed in late December 2015.
Unbeknownst to the alleged traffickers, the purchase of the property and construction of the house and tunnel were completed under the watchful eye of Homeland Security Investigation (HSI) agents in Calexico.
Agents learned from monitoring court-authorized wiretaps of phones and from surveillance that Enrique Cruz and his coconspirators began smuggling narcotics through the tunnel on or after February 28, 2016. Agents intercepted several calls in which Enrique Cruz and his father discussed the conditions inside the tunnel.
According to the complaint, Enrique Cruz also arranged for the purchase of multiple vehicles that were used to transport marijuana. from the 3rd Street newly built residence to the secondary stash residence at 1056 Horizon Street in Calexico and another warehouse at 260 Avenida Campillo, Suite A, also in Calexico.
On March 7, 2015, HSI agents seized approximately 1,350 pounds of marijuana that was smuggled through the tunnel inside the Third Street residence, transported initially to the Horizon residence, and eventually to the Avenida Campillo warehouse before it landed in a Los Angeles warehouse – all under the eyes of law enforcement.
On March 23, 2016, multiple search warrants were executed by multiple federal agencies, led by HSI Special Agents. A tunnel was located inside the living room of the newly built Third Street residence. In addition, approximately 1,532 pounds of marijuana were found inside the Horizon stash location. Two individuals, Joel Duarte Medina and Manuel Gallegos Jiminez, were arrested in connection with the tunnel.
Duarte Medina, who was arrested at the Horizon stash location on March 23, 2016, and Gallegos Jiminez, who was arrested inside the Third Street residence where the tunnel was seized, were arraigned today before U.S. Magistrate Judge Peter C. Lewis in federal court in El Centro, California. They were charged with conspiracy to import marijuana (21 U.S.C. 952,960, 963, conspiracy to distribute (21 U.S.C 841, 846) and Conspiracy to Maintain Drug Premises (21 U.S.C. 856(a)(1).
Another defendant, Eva Duarte De Medina, was also arrested in Arizona in connection with this tunnel. She was charged with conspiracy to import marijuana (21 U.S.C. 952,960, 963, conspiracy to distribute (21 U.S.C 841, 846) and conspiracy to maintain drug premises (21 U.S.C. 856(a)(1). She was arraigned yesterday in the District of Arizona and was expected to be transferred to the Southern District of California for prosecution.
DEFENDANT
Augustin Enrique Cruz, aka Tinky
United States Citizen
Residence Tucson, Arizona
PENDING CHARGES AGAINST DEFENDANT ENRIQUE CRUZ
Conspiracy to Import Controlled Substances (Title 21, United States Code, Section 952, 960, 963)
Maximum Penalty: 20 years in custody; 3 years of supervised release, $1,000,000 fine
Conspiracy to Distribute Controlled Substances (Title 21, United States Code, Sections 841 and 846)
Maximum Penalty: 20 years in custody; 3 years of supervised release, $1,000,000 fine
Conspiracy to Maintain Drug Related Premises (Title 21, United States Code, Sections 845(a)(1) and 846)
Maximum Penalty: 20 years in custody; 3 years of supervised release, $250,000 fine
Conspiracy to Launder Money (Title 18, United States Code, Sections 1956(h) and 1956(a)(1)(A)(i)
Maximum Penalty: 20 years in custody; 3 years of supervised release, $500,000 fine
Aiding and abetting the construction, finance, and use of a narcotics tunnel (Title 18, United States Code, Sections 555 and 2)
Maximum Penalty: 20 years in custody; 3 years of supervised release, $500,000 fine
For visuals please see:
https://www.dvidshub.net/search?q=calexicotunnel
AGENCIES
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations
Homeland Security Investigations, Calexico
U.S. Border Patrol, El Centro Sector
Drug Enforcement Administration
Customs and Border Protection
IRS Criminal Investigations
El Centro Police Department
Brawley Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
**This case stems from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the agencies noted above. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Oklahoma City Man Sentenced to 210 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRANDON MICHAEL JONES, age 37, of Oklahoma City, Oklahoma, was sentenced to 210 months imprisonment, followed by 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(l) and 841(b)(l)(A).
The Indictment alleged that beginning in or about July 2014, the exact date being unknown to the Grand Jury, and continuing until on or about April 7, 2015, within the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally conspire, confederate and agree together with others, to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma City Police Department, Oklahoma Highway Patrol, McAlester Police Department, Checotah Police Department, McIntosh County Sheriff’s Department, District 18 District Attorney’s Drug Task Force, Bureau of Indian Affairs, United States Marshal Service, Bureau of Alcohol, Tobacco and Firearms, Federal Bureau of Investigation and the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
North Carolina Registered Sex Offender Sentenced to 30 Years forCoercion and Enticement of a MinorRead the Press Release
NORFOLK, Va. – Adam Cain, 41, of Roanoke Rapids, North Carolina, was sentenced today to 360 months in prison for coercion and enticement of a minor. He was also sentenced to 30 years’ supervised release.
Cain pleaded guilty on Dec. 10, 2015. According to court documents, in August 2015, a concerned relative of a 15 year old girl contacted the Windsor Police Department because she found sexually explicit conversations on a computer tablet between the girl and Cain. Cain was a registered sex offender living in Roanoke Rapids, North Carolina, and also a relative of the 15 year old girl. The investigation revealed that Cain and the girl had been speaking online for some months. Then, Cain drove to Windsor, picked up the girl, and then drove back to his residence in North Carolina. There, they engaged in sexually explicit conduct. Cain also took sexually explicit pictures with his phone of the girl. Later on, Cain drove the girl back to Windsor.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-130.
New Lenox Man Sentenced to More Than Ten Years in Federal Prison for Trading Dozens of Photos and Videos of Child PornographyRead the Press Release
CHICAGO — A New Lenox man who traded dozens of photos and videos of child pornography was sentenced today to more than ten years in federal prison.
Using the screen name trckgirl69, TERENCE MEAGHER traded the images and videos with others via a peer-to-peer file-sharing network on the Internet. Many of the images depicted real prepubescent minors engaged in sexually explicit conduct, including portrayals of sadistic and masochistic activity. Unbeknownst to Meagher, one of the users with whom he shared 88 pornographic images was an undercover law enforcement officer.
Meagher, 47, pleaded guilty last year to one count of transportation of child pornography. U.S. District Judge Rebecca R. Pallmeyer imposed the 124-month sentence in federal court in Chicago.
“By distributing child pornography, through trades with others who sought child pornography, Defendant continued the victimization of children who have been filmed or photographed engaging in acts no child should be part of,” Assistant U.S. Attorney Scott Edenfield argued in the government’s sentencing memorandum. “Defendant’s distribution of child pornography was frequent and extremely serious.”
In addition to sharing the pornographic images, Meagher admitted in a plea agreement that on Jan. 2, 2008, he surreptitiously photographed the private area of a minor child who was under the age of 12.
The sentencing 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 the Federal Bureau of Investigation; and Cook County Sheriff Thomas J. Dart.
The government is represented by Mr. Edenfield.
Milwaukie Man Pleads Guilty to Stealing from his Disabled CousinRead the Press Release
PORTLAND, Ore. – The former legal guardian for his cognitively disabled cousin, pled guilty for stealing more than $570,000 in annuity payments that were intended for the cousin’s care. Michael R. Braun, 67, pled guilty to wire fraud before U.S. District Court Judge Anna Brown, and admitted committing the theft for approximately 12 years. His sentencing hearing is scheduled for August 15, 2016.
According to court records, Braun was appointed as A.M.’s legal guardian in 1984, following the death of A.M.’s parents, when A.M. was in his 20s. At that time, A.M. was the beneficiary of monthly annuity payments from the Defense Finance and Accounting Services (DFAS) with payments ranging from $1,500 - $2,709 each month. As A.M.’s legal guardian, Braun was required to use the annuity payments for A.M.’s care and to advise DFAS if he was no longer A.M.’s legal guardian.
In 1990, Braun was discharged as A.M.’s guardian by the Circuit Court of Washington County; however, Braun failed to notify DFAS that he had been removed as A.M.’s legal guardian. Between January 1990 and February 2013, Braun submitted a Certificate of Eligibility to DFAS each year certifying he was A.M.’s legal guardian, when in fact he knew he was not and knew he was not using the annuity payments for A.M.’s care. Additionally, in 1998, Braun directed DFAS to deposit A.M.’s annuity payments into Braun’s bank account. As a result of Braun’s repeated false statements and concealments, DFAS continued to deposit A.M.’s annuity payments each month into Braun’s own bank account.
Between January 1990 and December 2012, Braun received $573,604 in annuity payments which he converted to his own use.
The case was investigated by the Washington County Sheriff’s Office. The case is being prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.
See the attached indictment below for additional information.
Mescalero Apache Man Sentenced to Seven Years for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Christopher Bigmouth, 25, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this morning in Las Cruces, N.M., to 84 months in federal prison followed by three years of supervised release for his conviction on an assault charge.
Bigmouth was arrested on Feb. 20, 2015, on a criminal complaint charging him with assaulting a 14-month-old child on Aug. 22, 2014, by dropping the victim on her head three times. It alleged that the assault occurred on the Mescalero Apache Indian Reservation in Otero County, N.M. The victim was seriously injured and required emergency brain surgery to reduce swelling of the brain.
On Aug. 25, 2015, Bigmouth pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering the plea, Bigmouth admitted that on Aug. 22, 2014, he intentionally dropped the victim on the floor three times, and that his actions resulted in several injuries to the victim including significant brain swelling requiring emergency surgery and long term cognitive, motor and visual impairment.
This case was investigated by Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Mastermind of Salvage Yard Scandal SentencedRead the Press Release
Memphis, TN – The mastermind of a salvage yard scandal that defrauded a metal company of more than $750,000 has been sentenced. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Nick Wright, 44, of Halls, Tennessee, owned and operated Wright’s Auto Parts and Metals, a salvage yard business based in Gates, Tennessee.
In May 2011, Wright contracted with a metal company, Apex, to remove scrap metals from its Springdale, Arkansas facility. Each month, Wright mailed an invoice to Apex that described the type of metal, the total weight of each load, and the weight multiplied by the contract price per pound. Each invoice was accompanied by a check which represented Wright’s payment to Apex for the metal removed by Wright.
Between June 2013 and February 2014, Wright falsified the weights of scrap metal and sent invoices via mail with checks for the falsified amount. He reportedly defrauded Apex of more than $750,000.
In December 2015, Wright pled guilty before U.S. District Judge Samuel H. Mays to one count of mail fraud.
Wright was sentenced by Judge Mays to 36 months imprisonment on Thursday, March 24, 2016. The defendant also consented to forfeiture in the amount of more than $400,000.
This case was investigated by the Federal Bureau of Investigation (FBI); Tennessee Highway Patrol; and the 25th District Attorney General’s Office.
Special Assistant U.S. Attorney Samuel Stringfellow prosecuted this case on the government’s behalf.
Manhattan U.S. Attorney Announces Charges Against Seven Iranians for Conducting Coordinated Campaign of Cyber Attacks Against U.S. Financial Sector on Behalf of Islamic Revolutionary Guard Corps-Sponsored EntitiesRead the Press Release
Loretta E. Lynch, the Attorney General of the United States, Preet Bharara, the United States Attorney for the Southern District of New York, James B. Comey, Director of the Federal Bureau of Investigation (“FBI”), and John P. Carlin, Assistant Attorney General for National Security, announced today the unsealing of an indictment charging seven Iranians – AHMAD FATHI; HAMID FIROOZI; AMIN SHOKOHI; SADEGH AHMADZADEGAN, a/k/a Nitr0jen26; OMID GHAFFARINIA, a/k/a PLuS; SINA KEISSAR; and NADER SAEDI, a/k/a Turk Server – who were employed by two Iran-based computer companies, ITSecTeam (“ITSEC”) and Mersad Company (“MERSAD”), which were sponsored by Iran’s Islamic Revolutionary Guard Corps – for conducting a coordinated campaign of distributed denial of service (“DDoS”) attacks against 46 major companies, primarily in the U.S. financial sector, from late 2011 through mid-2013. These attacks, which occurred on more than 176 days, disabled victim bank websites, prevented customers from accessing their accounts online, and collectively cost the banks tens of millions of dollars in remediation costs as they worked to neutralize and mitigate the attacks on their servers. In addition, FIROOZI is also charged with obtaining unauthorized access into the Supervisory Control and Data Acquisition (“SCADA”) systems of the Bowman Dam, located in Rye, New York, in August and September of 2013.
Attorney General Loretta E. Lynch said: “In unsealing this indictment, the Department of Justice is sending a powerful message: that we will not allow any individual, group, or nation to sabotage American financial institutions or undermine the integrity of fair competition in the operation of the free market. Through the work of our National Security Division, the FBI, and U.S. Attorney’s Offices around the country, we will continue to pursue national security cyber threats through the use of all available tools, including public criminal charges. And as today’s unsealing makes clear, individuals who engage in computer hacking will be exposed for their criminal conduct and sought for apprehension and prosecution in an American court of law.”
Manhattan U.S. Attorney Preet Bharara said: “The charges announced today respond directly to a cyber-assault on New York, its institutions, and its infrastructure. The alleged onslaught of cyber-attacks on 46 of our largest financial institutions, many headquartered in New York City, resulted in hundreds of thousands of customers being unable to access their accounts and tens of millions of dollars being spent by the companies trying to stay online through these attacks. The infiltration of the Bowman Avenue dam represents a frightening new frontier in cybercrime. These were no ordinary crimes, but calculated attacks by groups with ties to Iran’s Islamic Revolutionary Guard and designed specifically to harm America and its people. We now live in a world where devastating attacks on our financial system, our infrastructure, and our way of life can be launched from anywhere in the world, with a click of a mouse. Confronting these types of cyber-attacks cannot be the job of just law enforcement. The charges announced today should serve as a wake-up call for everyone responsible for securing our financial markets and for guarding our infrastructure. Our future security depends on heeding this call.”
FBI Director James B. Comey said: “The FBI will find those behind cyber intrusions and hold them accountable — wherever they are, and whoever they are. By calling out the individuals and nations who use cyber-attacks to threaten American enterprise, as we have done in this indictment, we will change behavior.”
Assistant Attorney General John P. Carlin said: “Like past nation state-sponsored hackers, these defendants and their backers believed that they could attack our critical infrastructure without consequence, from behind a veil of cyber anonymity. This indictment once again shows there is no such veil – we can and will expose malicious cyber hackers engaging in unlawful acts that threaten our public safety and national security.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
DDoS Attacks
The DDoS attacks against the U.S. financial sector began in approximately December 2011, and occurred sporadically until September 2012, at which point they escalated in frequency to a near-weekly basis, occurring between Tuesdays and Thursdays during normal business hours in the United States through in or about May 2013. On certain days during the campaign, victim computer servers were hit with as many as 140 Gigabits of data per second, and hundreds of thousands of customers were cut off from online access to their bank accounts.
For the purpose of carrying out the attacks, the defendants built botnets that consisted of thousands of compromised computer systems that had been infected with the defendants’ malware, and were subject to their remote command and control. The defendants and their co-conspirators ordered their botnets to direct significant amounts of malicious traffic at computer servers used to operate the websites for victim corporations, which overwhelmed victim servers and prevented customers from accessing the websites or their accounts online during the period of the attacks. Although the DDoS campaign damaged and disrupted the businesses of the financial sector victims and interfered with their customers’ ability to do online banking during the course of the attacks, the attacks did not affect or result in the theft of customer account data.
FATHI, FIROOZI, and SHOKOHI were responsible for ITSEC’s portion of the DDoS attack campaign against the U.S. financial sector. FATHI was the leader of ITSEC and was responsible for supervising and coordinating ITSEC’s portion of the DDoS campaign, as well as managing computer intrusion and cyberattack projects being conducted for the government of Iran. FIROOZI procured and managed computer servers that were used to coordinate and direct DDoS attacks for ITSEC. SHOKOHI is a computer hacker who helped build ITSEC’s botnet and created malware used to direct the botnet to engage in DDoS attacks. During the time that he worked in support of the DDoS campaign, SHOKOKI received credit for his computer intrusion work from the Iranian government towards his completion of his mandatory military service requirement in Iran.
AHMADZADEGAN, GHAFFARINIA, KEISSAR, and SAEDI were responsible for MERSAD’s portion of the DDoS attack campaign against the U.S. financial sector. AHMADZADEGAN was a co-founder of MERSAD and was responsible for managing the MERSAD botnet. He was also a member of Iranian hacking groups Sun Army and the Ashiyane Digital Security Team (“ADST”), and claimed responsibility for hacking servers belonging to the National Aeronautics and Space Administration (“NASA”) in February 2012. AHMADZADEGAN has also provided training to Iranian intelligence personnel. GHAFFARINIA was the other co-founder of MERSAD and created malicious computer code used to build MERSAD’s botnet for the DDoS campaign. GHAFFARINIA was also a member of Sun Army and ADST, and has also claimed responsibility for hacking NASA servers in February 2012, as well as thousands of other servers in the United States, the United Kingdom, and Israel. KEISSAR procured computer servers used to access, manipulate, and test MERSAD’s botnet. SAEDI wrote computer scripts used to locate vulnerable servers to build MERSAD’s botnet. SAEDI was also a former Sun Army computer hacker who expressly touted himself as an expert in DDoS attacks.
Bowman Dam Intrusion
Between August 28, 2013, and September 18, 2013, FIROOZI repeatedly obtained unauthorized access to the SCADA systems of the Bowman Dam, in Rye, New York, which allowed him to repeatedly obtain information regarding the status and operation of the dam, including information about the water levels and temperature, and the status of the sluice gate, which is responsible for controlling water levels and flow rates. Although that access would normally have permitted FIROOZI to remotely operate and manipulate the Bowman Dam’s sluice gate, unbeknownst to FIROOZI, the sluice gate had been manually disconnected for maintenance at the time his intrusion.
* * *
FATHI, 37; FIROOZI, 34; SHOKOHI, 25; AHMADZADEGAN, 23; GHAFFARINIA, 25; KEISSAR, 25; and SAEDI, 26, all citizens and residents of Iran, are each charged with one count of conspiracy to commit and aid and abet computer hacking, which carries a maximum sentence of 10 years in prison. FIROOZI is also charged with an additional count of obtaining and aiding and abetting unauthorized access to a protected computer, which carries a maximum sentence of five years in prison.
Mr. Bharara praised the outstanding investigative work of the FBI and the multiple FBI Field Offices that participated in the investigation, which included agents from the Chicago, Cincinnati, New York, Newark, Phoenix, and San Francisco FBI Field Offices. Mr. Bharara also thanked the Department of Homeland Security for its work to remediate the intrusion at the Bowman Dam.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Timothy T. Howard is in charge of the prosecution, with assistance provided by Deputy Chief Sean M. Newell of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan Man Sentenced to More Than 24 Years in Prison for Attempted Enticement of A MinorRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEPHEN P. BROWN was sentenced to 292 months in prison and supervised release for life for attempting to entice a minor to engage in sexual activity. United States District Judge Nelson S. Román imposed the sentence.
U.S. Attorney Preet Bharara stated: “Over the course of three decades, Stephen Brown sexually abused four boys. His predatory activity ended when he used email and text messages in an attempt to lure an individual he believed was his most recent 11-year-old victim. That child victim he thought he was going to meet and have sex with, was in fact an undercover officer. This case underlines the urgent and serious need for law enforcement to continue its efforts to protect vulnerable children from those who seek to prey on them.”
According to documents filed in this case and statements made in related court proceedings:
Between January 14, 2014 and March 4, 2014, BROWN, engaged in sexually explicit online communications with a New York State Police Investigator who was acting in an undercover capacity and posing as an 11-year old boy. During these communications, BROWN discussed various sexual acts he wished to perform on the boy, requested that the boy provide BROWN with sexually explicit photographs of himself, and made a plan to meet the boy in a Westchester County, New York, hotel for the purpose of engaging in sexual activity.
On March 4, 2014, BROWN was arrested in Westchester when he arrived at the designated meeting place to meet the boy. After his arrest, BROWN admitted, among other things, that he had exchanged emails and instant messages with a boy and discussed meeting the boy to engage in sexual acts. BROWN admitted that he asked the boy for sexually explicit photos and that he wanted such photos. He stated that he brought his camera to the hotel because he intended to take sexually explicit photos of the boy.
After his arrest, a search of BROWN’s home revealed BROWN’s possession of thousands of images and videos of child pornography. Further, the investigation of BROWN revealed that, over the last 30 years, BROWN sexually abused four boys.
BROWN, 64, of Manhattan, New York, was also ordered to pay a $50,000 fine.
Mr. Bharara praised the efforts of the Federal Bureau of Investigation, the New York County District Attorney’s Office, the Sullivan County District Attorney’s Office, the Westchester County District Attorney’s Office, the Albany County District Attorney’s Office, the City of New York Police Department, the New York State Police, and the Rockland County Computer Crimes Task Force in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
Malian National Pleads Guilty to Conspiracy to Murder U.S. DiplomatRead the Press Release
Alhassane Ould Mohamed, aka Cheibani, 46, a citizen of Mali, pleaded guilty in the Eastern District of New York to conspiring to murder a U.S. diplomat stationed in Niamey, Niger, in December 2000.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York and Assistant Director in Charge Diego Rodriguez of the FBI New York Field Office.
According to court filings and facts presented during the plea proceeding, in the early morning hours of Dec. 23, 2000, Mohamed and a co-conspirator accosted a group of employees of the U.S. Embassy in Niger as they left a restaurant in Niamey. Carrying a pistol and an AK-47 assault rifle, the two men approached Department of Defense official William Bultemeier as he was about to enter his car, which displayed diplomatic license plates clearly indicating that it belonged to the U.S. Embassy. After demanding that Bultemeier turn over the keys to the diplomatic vehicle, the defendant and his co-conspirator shot Bultemeier and Staff Sergeant Christopher McNeely, the Marine Detachment Commander for the U.S. Embassy in Niger at the time, who had run to Bultemeier’s aid. Mohamed and his fellow assailant then drove away in the U.S. Embassy vehicle.
Bultemeier died of the injuries inflicted by the gunshot wounds. Staff Sergeant McNeely survived the shooting and later retired from the Marine Corps as a Master Sergeant.
Today’s plea took place before U.S. District Judge William F. Kuntz II of the Eastern District of New York. At sentencing on April 26, 2016, as part of the agreement, the defendant faces an agreed-upon sentence of 25 years in prison.
The case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Margaret Lee and Melody Wells of the Eastern District of New York with assistance provided by Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
Malian National Pleads Guilty in Brooklyn Federal Court to Conspiracy to Murder U.S. DiplomatRead the Press Release
Earlier today, Alhassane Ould Mohamed, also known as “Cheibani,” a citizen of Mali, pled guilty at the federal courthouse in Brooklyn, New York, to conspiring to murder a United States diplomat stationed in Niamey, Niger, in December 2000.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation.
According to court filings and facts presented during the plea proceeding, in the early morning hours of December 23, 2000, the defendant and a co-conspirator accosted a group of employees of the United States Embassy in Niger as they left a restaurant in Niamey, Niger. Carrying a pistol and an AK-47 assault rifle, the two men approached Department of Defense official William Bultemeier as he was about to enter his car, a white sport-utility vehicle bearing diplomatic license plates clearly indicating that it belonged to the United States Embassy. After demanding that Mr. Bultemeier turn over the keys to the diplomatic vehicle, the defendant and his co-conspirator shot Mr. Bultemeier and Staff Sergeant Christopher McNeely, the Marine Detachment Commander for the United States Embassy in Niger at the time, who had run to Mr. Bultemeier’s aid. The defendant and his fellow assailant then drove away in the United States Embassy vehicle.
Mr. Bultemeier died of the injuries inflicted by the gunshot wounds. Staff Sergeant McNeely survived the shooting, and later retired from the Marine Corps as a Master Sergeant.
Today’s plea took place before United States District Judge William F. Kuntz, II. When sentenced on April 26, 2016, the defendant faces an agreed-upon term of 25 years’ imprisonment.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Zainab Ahmad, Margaret Lee, and Melody Wells are in charge of the prosecution, with assistance provided by Trial Attorney Jennifer Levy of the Justice Department’s Counterterrorism Section.
The Defendant:
ALHASSANE OULD MOHAMED
Age: 46E.D.N.Y. Docket No. 13-527 (WFK)
Mail thief sentenced in federal courtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a Huntington, Indiana, man for stealing mail from the main post office in Downtown Indianapolis. Bryon Fisher, 35, was sentenced to 41 months (over three years) in federal prison by U. S. District Judge Tanya Walton Pratt.
“Most of us still get our mail through home delivery or at a post office box,” said Minkler. “People should have confidence that their mail will be delivered safely and untampered with. Stealing mail is a serious crime that puts people’s privacy, money, and confidence in the mail system at risk. We will hold people who steal mail accountable.”
In the early morning hours of October, 14, 2014, Fisher entered the U.S. Post Office located at 125 West South Street in Indianapolis with a plan to break into post office boxes and steal mail from them. He used a small metal crowbar to break open the P.O boxes and steal the contents. After breaking several boxes and gathering dozens of letters, law enforcement, who had been observing him via a surveillance camera, approached Fisher and apprehended him.
Further investigation revealed that this was not the only time Fisher tried to steal mail from this post office. He targeted these post office boxes because he knew they would contain a high volume of mail containing checks or other monetary instruments. His plan was to obtain checks from the letters, alter the checks, and attempt to pass them at retail locations in exchange for cash, gift cards, or other items.
Investigators recovered a large quantity of mail from Fisher, which he had stolen on multiple occasions during 2014. The stolen mail was originally intended for businesses, including utility companies, as well as charities. As a result of the theft, payments and donations were never received, which wreaked havoc for senders and recipients of these mail items. In some cases, people’s utilities were disconnected for non-payment. Law enforcement has recovered all of the stolen mail items that were in Fisher’s possession and has notified all of those whose mail was affected – both senders and recipients.
“The U.S. Postal Inspection Service will continue to vigorously investigate those who would attempt to violate the public’s trust in the U.S. Mail. Mr. Fisher has been held accountable for trying to damage this trust,” said E.C. Woodson, Inspector in Charge Detroit Division.
According to Assistant United States Attorney Nick Linder who prosecuted this case for the government, Fisher must also pay restitution and serve three years of supervised release after his prison sentence.
Lynn Tax Preparer Pleads Guilty to Fraud and Identity TheftRead the Press Release
BOSTON – A Lynn tax preparer pleaded guilty today in U.S. District Court in Boston in connection with a scheme to file fraudulent tax returns without her clients’ knowledge and pocket the excess refunds.
Claudia Carredano, 46, pleaded guilty to a criminal Information charging her with one count of wire fraud and one count of identity theft. U.S. District Court Judge George A. O’Toole, Jr. scheduled sentencing for June 23, 2016.
Carredano co-owned Maya Multi Services, a tax return preparation business operating on the North Shore. From 2008 to 2011, Carredano devised and executed a scheme to defraud the Internal Revenue Service by filing false tax returns on behalf of her clients. To do this, Carredano filed dozens of false tax returns for her clients, and, without their knowledge, included fraudulent dependents in order to increase the refund amount. She then directed the inflated portion of the refunds to be deposited into her bank account. In order to conceal the scheme, Carredano gave her clients versions of their tax returns which did not reflect the fraudulent dependents and sought smaller refunds than the returns she actually filed with the IRS.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain to the defendant or loss to the victims, whichever is greater. The charge of identity theft provides for a sentence of no greater than 15 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain to the defendant or loss to the victims, whichever is greater. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
If you were one of Carredano’s clients between 2008 and 2011 and believe you may have been affected by the fraud described above, please send an email to: [email protected].
United States Attorney Carmen M. Ortiz and Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was investigated with the cooperation of the Massachusetts Department of Revenue. This case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
Louisiana Check Cashers Plead Guilty to Conspiracy, Tax Charges and Agree to Forfeit $4.12 MillionRead the Press Release
Two residents of Kenner, Louisiana, pleaded guilty today before Federal District Court Judge Lance M. Africk of the Eastern District of Louisiana for crimes related to the operation of their check cashing business, VJ Discount Inc., announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana.
Susantha Wijetunge, aka VJ, 52, pleaded guilty to conspiring to defraud the United States by impeding and impairing the Internal Revenue Service (IRS), to file false reports with government agencies regarding these transactions and to commit mail and wire fraud. His spouse, Manula Wijetunge, aka Manu, 48, pleaded guilty to willfully filing a false tax return. As part of their guilty pleas, the defendants and certain corporate entities they control agreed to the forfeiture of approximately $4.12 million dollars.
According to publicly filed documents, defendants Susantha Wijetunge and Manula Wijetunge owned VJ Discount Inc., a Louisiana corporation that operated a convenience store and check cashing business in Kenner. Susantha Wijetunge, VJ Discount Inc. and others cashed fraudulently obtained tax refund checks for multiple co-conspirators, for which they charged a higher fee than normal. Often, these transactions involved multiple checks and tens of thousands of dollars. In order to conceal this illegal activity, Susantha Wijetunge and others filed false reports with the government, or failed to file them as required by law.
Susantha Wijetunge also admitted to filing multiple false tax returns that underreported business and individual income to the IRS. Both Susantha Wijetunge and Manula Wijetunge admitted that VJ Discount Inc. had third party check deposits of more than $59 million in 2011; $47 million in 2012; and $66 million in 2013. Despite this large volume of business, the defendants’ individual income tax returns reported total individual income of less than $100,000 per year. Manula Wijetunge pleaded guilty to willfully filing a false 2013 individual income tax return.
Susantha Wijetunge faces a statutory maximum term of five years in prison and Manula Wijetunge faces a statutory maximum term of three years in prison. They also face fines, forfeiture, the costs of prosecution and restitution. Sentencing is set for July 14.
Acting Assistant Attorney General Ciraolo and U. S. Attorney Polite commended special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorneys Hayden Brockett and David Haller and Trial Attorney Michael Hatzimichalis of the Tax Division, who are prosecuting the case.
Louisiana Check Cashers Plead Guilty to Conspiracy, Tax Charges and Agree to Forfeit $4.12 MillionRead the Press Release
WASHINGTON – Two residents of Kenner, Louisiana, pleaded guilty today before Federal District Court Judge Lance M. Africk of the Eastern District of Louisiana for crimes related to the operation of their check cashing business, VJ Discount Inc., announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth A. Polite for Eastern District of Louisiana.
Susantha Wijetunge, aka VJ, 52, pleaded guilty to conspiring to defraud the United States by impeding and impairing the Internal Revenue Service (IRS), to file false reports with government agencies regarding these transactions and to commit mail and wire fraud. His spouse, Manula Wijetunge, aka Manu, 48, pleaded guilty to willfully filing a false tax return. As part of their guilty pleas, the defendants and certain corporate entities they control agreed to the forfeiture of approximately $4.12 million dollars.
According to publicly filed documents, defendants Susantha Wijetunge and Manula Wijetunge owned VJ Discount Inc., a Louisiana corporation that operated a convenience store and check cashing business in Kenner. Susantha Wijetunge, VJ Discount Inc. and others cashed fraudulently obtained tax refund checks for multiple co-conspirators, for which they charged a higher fee than normal. Often, these transactions involved multiple checks and tens of thousands of dollars. In order to conceal this illegal activity, Susantha Wijetunge and others filed false reports with the government, or failed to file them as required by law.
Susantha Wijetunge also admitted to filing multiple false tax returns that underreported business and individual income to the IRS. Both Susantha Wijetunge and Manula Wijetunge admitted that VJ Discount Inc. had third party check deposits of more than $59 million in 2011; $47 million in 2012; and $66 million in 2013. Despite this large volume of business, the defendants’ individual income tax returns reported total individual income of less than $100,000 per year. Manula Wijetunge pleaded guilty to willfully filing a false 2013 individual income tax return.
Susantha Wijetunge faces a statutory maximum term of five years in prison and Manula Wijetunge faces a statutory maximum term of three years in prison. They also face fines, forfeiture, the costs of prosecution and restitution, if convicted. Sentencing is set for July 14.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorneys Hayden Brockett and David Haller and Trial Attorney Michael Hatzimichalis of the Tax Division, who are prosecuting the case.
Local Man Sentenced for Role in Detroit-to-Pittsburgh Oxycodone RingRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to four years of probation, which includes eight months of community confinement, on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Max Matthew Guardalabene, 31.
According to information presented to the court, Guardalabene was a lower-level distributor for a Detroit-to-Pittsburgh oxycodone ring operated by Telano White and Brandy Bara.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Federal Bureau of Investigation, Pennsylvania Attorney General’s Office, Pennsylvania State Police, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Guardalabene.
Lewiston Man Pleads Guilty to Tax ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jon DiBernardo, 51, of Lewiston, NY, who was convicted of tax evasion, was sentenced to three years probation by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney MaryEllen Kresse, who handling the case, stated that the defendant was the owner of Water Street Landing, a restaurant in Lewiston, NY. Between 2006 and 2009, DiBernardo submitted tax returns to the Internal Revenue Service understating business revenues thereby evading payment of income tax. In addition, the defendant paid employees off the books and as a result failed to pay employment taxes.
DiBernardo failed to report a total of $419,221 in taxable income resulting in a loss of $111,377 to the IRS. In addition, the defendant failed to report $285,705 in employee wages resulting in a loss of $43,712 to the IRS.
The sentencing is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Lewes Woman Sentenced to Two Years in Prison for $430,000+ EmbezzlementRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Penni Enama, age 50, of Lewes, Delaware, was sentenced yesterday by the Honorable Gregory M. Sleet, United States District Judge for the District of Delaware, to 24 months in prison, and full restitution. The defendant pleaded guilty to violations of wire fraud and tax evasion, in December 2015.
According to court filings and statements made at the sentencing hearing, the defendant was employed by a law firm in Delaware. In May 2007, she began embezzling funds from the firm’s escrow account. The defendant was a real estate paralegal, and she used her access to a closing escrow account to divert at least $439,824.40 to her personal use. The defendant fabricated additional real estate closing parties in the firm’s records, and she used the additional funds to pay her personal credit cards and/or deposit the funds into her personal bank accounts. The defendant did not declare the embezzled funds on her federal income tax returns for the 2011-2013 tax years.
Judge Sleet commented that the defendant’s conduct was “quite involved, quite calculated, and disturbingly so.”
U.S. Attorney Oberly stated, “In yet another case involving a major breach of trust, Ms. Enama stole substantial funds from her employer, causing injury to both the law firm and its attorneys. While Ms. Enama was, until caught, living a dream life with stolen funds, she will now dream for the next two years that crime does not pay.”
“Today’s sentence shows the strong impact of when the bond of trust between an employer and employee is violated by greed. The Internal Revenue Service, Criminal Investigation Division will work diligently so that the American public can trust that those who commit such crimes will be held accountable.” said Akeia Conner, Internal Revenue Service, Special Agent in Charge.
This case was investigated by the Internal Revenue Service - Criminal Investigation, and it is being prosecuted by Assistant United States Attorney Lauren Paxton.
Leader of Atlanta ATM Machine Theft Ring SentencedRead the Press Release
ATLANTA - Ovino Harris has been sentenced to 10 years, 10 months in federal prison for attempting to rob the Wellesley Inn Atlanta Airport Hotel, in what was believed to be one of a string of ATM machine thefts in the Atlanta, Georgia, area.
“Harris and his group were so audacious that they even threatened to shoot a hotel clerk in order to steal an ATM,” said U. S. Attorney John Horn. “This group has been dismantled thanks to the tremendous work of the Atlanta Police Department and the FBI.”
“The sentencing of Mr. Harris to federal prison will not only hold him accountable for his criminal actions as well as removing him from our streets, but it also clearly illustrates that Atlanta law enforcement will bring all of its resources to bear in addressing these aggressive theft rings,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Each time we’re able to get a criminal off the streets, it’s a good day,” said Atlanta Police Chief George Turner. “The arrest and conviction of Ovino Harris is yet another example of why the partnership between the Atlanta Police Department and the FBI is critical to making Atlanta the safest big city in the nation.”
According to U.S. Attorney Horn, the charges and other information presented in court: Harris was believed to be the leader of a group known as the “Green Team,” that operated out of the Pittsburgh area of Atlanta and engaged in various criminal activities including the theft of ATM machines from local businesses. Green Team members would frequently break into closed businesses, attach chains or ropes to an ATM machine while attaching the other end to a van or truck, and pull the ATM machine from the store.
During the early morning hours of December 4, 2013, however, Harris traveled to the Wellesley Inn Atlanta Airport Hotel where he and four other Green Team members attempted to steal the ATM machine from within the hotel lobby by threatening to shoot the hotel clerk. Law enforcement was called to the area, and the men fled before they could be apprehended.
Then, on December 22, 2013, and again on December 27, 2013, members of the Green Team traveled to the CVS Pharmacy located on North Highland Avenue in Atlanta where they attempted to steal the ATM machine from inside the store. Harris was arrested and arraigned on July 9, 2014.
Ovino Harris, 35, of Atlanta, Georgia, has been sentenced by United States District Judge Amy Totenberg to 10 years, 10 months in prison to be followed by three years of supervised release. Harris was convicted on these charges on December 15, 2015, after he pleaded guilty. All of Harris’ co-defendants have also pled guilty in this matter. Five of Harris’ co-defendants have already been sentenced, with one additional co-defendant awaiting sentencing.
This case was investigated by the Atlanta Police Department and Federal Bureau of Investigation.
Assistant United States Attorneys Matthew S Carrico and Kim S. Dammers prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Last of Five Defendants Pleads Guilty in Multimillion-Dollar Medicare Fraud Scheme involving Detroit-Area Home Health CompaniesRead the Press Release
The last of five defendants pleaded guilty for his role in a $33 million Medicare fraud scheme involving Detroit-area home health care and hospice companies. The other four defendants have all pleaded guilty since March 15, 2016.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Region made the announcement.
Muhammad Tariq, 60, of West Bloomfield, Michigan, an owner of home health care and hospice companies in the Detroit area, pleaded guilty yesterday before U.S. District Judge Sean F. Cox of the Eastern District of Michigan to one count of conspiracy to commit health care fraud and wire fraud. On March 15 and March 18, 2016, respectively, Shahid Tahir, 45, and Manawar Javed, 40, both of Bloomfield, Michigan, two other owners of the home health care and hospice companies, each pleaded guilty before Judge Cox to one count of conspiracy to commit health care fraud and wire fraud. On March 18 and March 22, 2016, respectively, Waseem Alam 60, of Troy, Michigan, and Hatem Ataya, 47, of Flushing, Michigan, two physicians involved in the fraud scheme, pleaded guilty before Judge Cox to one count of conspiracy to commit health care fraud and wire fraud. Alam additionally pleaded guilty to an additional count of structuring. The defendants are scheduled to be sentenced in July 2016. All five defendants were charged in an indictment returned on June 11, 2015.
According to admissions made as part of their guilty pleas, Tahir, Javed and Tariq paid kickbacks, bribes and other inducements to Alam, Ataya and other physicians, as well as to marketers and patient recruiters, for beneficiary referrals to companies they owned, including A Plus Hospice and Palliative Care, At Home Hospice and At Home Network Inc. Tahir, Javed and Tariq admitted that they would then bill Medicare for home care and hospice services that were often medically unnecessary and not provided.
Alam was the top referring physician to the entities owned by the defendants and as such, was responsible for millions in Medicare reimbursements, he admitted. As part of his guilty plea, Alam admitted that he received kickbacks and other inducements from the owners of At Home Network in exchange for home health referrals. Alam bribed his patients into accepting services from At Home Network by providing them with medically unnecessary controlled substance prescriptions both personally and through unlicensed individuals, he admitted. Co-owner Tariq admitted that he knew about Alam’s controlled substances bribes to patients. Alam also instructed others to falsify patient files to hide the fact that the prescriptions were medically unnecessary, according to his plea agreement.
Ataya was the second-highest referring physician to At Home Network and the top referring physician to At Home Hospice. As part of his guilty plea, he admitted that he accepted kickbacks and other inducements in exchange for home health and hospice referrals. Ataya also admitted that the Tahir-associated companies would submit false billing based on his referrals for purported home health and hospice services, when, at times, these services were neither medically necessary nor provided.
The FBI and HHS-OIG investigated the 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 Eastern District of Michigan. Trial Attorneys Shubhra Shivpuri, Malisa Dubal and Tom Tynan of the Criminal Division’s Fraud Section 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.
Las Cruces Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Edward Valenciano, 38, of Las Cruces, N.M., pleaded guilty today in federal court to a heroin trafficking charge. Under the terms of his plea agreement, Valenciano will be sentenced to 60 months in federal prison followed by a term of supervised release to be determined by the court.
Valenciano was arrested in June 2015, on a criminal complaint charging him with conspiracy to distribute heroin on June 11, 2015, in Doña Ana County, N.M. The complaint alleged that Valenciano was involved in the sale of approximately 353.4 grams of heroin to an individual working with law enforcement.
Valenciano was subsequently indicted on Oct. 15, 2015, and charged with conspiracy to distribute heroin from June 3 through 16, 2015, and possession of heroin with intent to distribute on June 16, 2015. The indictment included forfeiture allegations requiring Valenciano to forfeit $6,000, proceeds of the drug trafficking charged, to the United States.
During today’s proceedings, Valenciano pled guilty to conspiracy to possess heroin with intent to distribute and admitted that on June 3, 2015, he directed another individual to provide heroin to a person who unbeknownst to him was working with law enforcement. Valenciano further admitted that on June 11, 2015, he accepted $6,000 from the same person in payment for the heroin provided on June 3, 2015.
Valenciano remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative 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.
Justice Department Sues Wyoming State Agency for Sex DiscriminationRead the Press Release
The Department of Justice announced today that it has filed a lawsuit against the Wyoming Military Department alleging that it discriminated against a female former employee on the basis of her sex when it failed or refused to take timely remedial actions when she was sexually harassed by her male supervisor.
According to the complaint, the supervisor’s persistent and prevalent sexual harassment led to a hostile work environment based on sex, in violation of Title VII of the Civil Rights Act of 1964. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, religion, sex or national origin.
The department’s complaint, filed today in the U.S. District Court for the District of Wyoming, alleges that the former employee was regularly subjected to sexual harassment in the workplace by her immediate supervisor, the former director of the Wyoming Military Department’s Youth Challenge Program. The supervisor’s unwelcome conduct included unwanted emails about his personal life with his then wife; unwanted written expressions of affection for the employee, including songs and poems; and invasion of her work space to discuss personal issues to such a degree that it interfered with her ability to do her work and that she found it necessary to invent pretext to get away from him. The employee repeatedly rejected these advances and requested that her supervisor cease all of his unwanted behavior, but the supervisor persisted in his conduct. The employee filed multiple complaints with the Wyoming Military Department indicating that her supervisor’s behavior was unwelcome, that she had asked him to stop his unwanted attentions and that he failed or refused to do so.
According to the complaint, the employee received no effective assistance from the Wyoming Military Department in remedying her claims despite her complaints to both its human resources department and management officials. The combination of the supervisor’s actions and the agency’s lack of assistance caused the employee to resign.
“Title VII ensures that no woman should have to choose between keeping her job and enduring sexual harassment in the workplace,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When employers learn about allegations of sexual harassment, the law requires that they take swift action to protect victims and hold perpetrators accountable.”
The Equal Employment Opportunity Commission (EEOC) received a charge of sex discrimination filed by the former employee. The EEOC’s Denver Field Office, in the Phoenix District, investigated the matter and found reasonable cause to believe that the Wyoming Military Department discriminated against the former employee. After unsuccessful conciliation efforts, the EEOC referred the matter to the department.
The lawsuit seeks declaratory and injunctive relief requiring the Wyoming Military Department to implement employment policies that prevent hostile work environment harassment based on sex. The United States will also seek to obtain “make whole” relief, including monetary damages, for the victim.
The case was brought by the Civil Rights Division’s Employment Litigation Section. Enforcing federal employment discrimination laws is a top priority for the Justice Department. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Jury Convicts Inmate David R. McPeters, and Daughter-In-Law Kathryn McPeters, in Social Security ScamRead the Press Release
David and Kathryn McPeters convicted of conspiring to defraud Social Security
GRAND RAPIDS, MICHIGAN — On March 24, a federal jury convicted David R. McPeters and Kathryn McPeters of conspiracy to defraud the Social Security Administration ("SSA"), U.S. Attorney Patrick Miles announced today.
David R. McPeters, 80, has been an inmate of the Michigan Department of Corrections since 1983, when he received two life sentences for murder. Kathryn McPeters, 57, his daughter-in-law, is a resident of Battle Creek, Michigan.
The evidence presented during the three-day trial before U.S. District Judge Janet T. Neff established that the two conspired to circumvent the law prohibiting prison inmates from receiving Social Security retirement benefits. Using David’s name and personal information, Kathryn applied online for SSA retirement benefits on his behalf but concealing the fact that he was incarcerated. Her application deceived the SSA into sending funds to a bank account set up for that purpose by Kathryn. Between 2006 and 2015, the scheme netted them approximately $250,000. The proceeds were split between the two, with Kathryn receiving the majority of the benefits. David has been returned to the Michigan Department of Corrections and Kathryn has been continued on bond pending their sentencing hearings, which have not yet been scheduled.
U.S. Attorney Patrick Miles stated that he was satisfied with the result. "Social Security retirement benefits are an important safety net for all of us when we retire. McPeters is already serving his retirement at taxpayer expense at the Michigan Department of Corrections. The money he and his daughter-in-law swindled should have gone to those retired individuals who have been hardworking taxpayers all their lives."
The case was investigated by the Grand Rapids Office of the Social Security Administration, Office of Inspector General. The case was tried by Timothy VerHey, Assistant United States Attorney.
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Johnson City Man Sentenced for Federal Gun OffenseRead the Press Release
GREENEVILLE, Tenn. – On March 23, 2016, Jamarcus Lavelle Jackson, 26, of Johnson City, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 120 months in federal prison. Jackson was previously convicted at trial of being a felon in possession of a firearm.
In March 2014, officers with the Johnson City Police Department responded to a shooting at the Battery, a bar/restaurant located downtown. Upon arrival, officers found Jackson being restrained by a group of people. Several victims, all suffering gunshot wounds, were also discovered. When interviewed, numerous witnesses identified Jackson as the shooter and recalled seeing him leave the scene, only to return minutes later to commit the shooting. Testimony at trial showed that Jackson had left to retrieve the instant firearm from his vehicle. As he began shooting, witnesses tackled and subdued him, forcibly removing the gun from his hand. He was placed under arrest once police arrived. One victim died of his wounds. Three other victims recovered from their injuries.
Jackson will now return to state court where he faces charges of first degree murder, attempted second degree murder, aggravated assault, and reckless endangerment.
This investigation was the product of a partnership between the Johnson City Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Nick Regalia and Special Assistant U.S. Attorney Corey Shipley represented the United States.
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James Hunley Indicted for Hobbs Act RobberyRead the Press Release
HAMMOND- United States Attorney David Capp announced today that an Indictment was filed charging James Hunley, 50, with four counts of Hobbs Act Robbery.
On the dates below, Hunley allegedly entered and robbed the following locations in the Northern District of Indiana:
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March 7, 2016-Dollar General, 21 N. Main Street, Crown Point, Indiana
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March 11, 2016- Dollar General, 2015 N. Michigan Street, Plymouth, Indiana
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March 13, 2016- Dollar General, 611 E. Talmer Avenue, North Judson, Indiana
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March 14, 2016- Walgreens, 13242 Wicker Avenue, Cedar Lake, Indiana
United States Attorney Capp said, “these violent acts will not be tolerated in our community. As stated at the last press conference, my Office and our state, local and federal law enforcement partners will continue to utilize all of our resources to apprehend and prosecute these perpetrators.”
Hunley was taken into custody on March 17, 2016 east of Tulsa, Oklahoma, pursuant to federal criminal complaint warrant. Hunley is in the custody of the United States Marshal’s Service and is being transported back to the Northern District of Indiana. The United States Attorney’s Office will seek pre-trial detention.
This case was investigated by the Federal Bureau of Investigation with assistance from the Lake, Marshall and Starke County Prosecutors’ Offices and the Cedar Lake, Crown Point, North Judson and Plymouth Police Departments. The case is being prosecuted by Assistant United States Attorney Jennifer Chang.
Anyone with any knowledge of James Hunley or his associates is urged to call the FBI at 219-769-3719 or 317-595-4000. All phone calls will be treated confidentially.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on March 23, 2016 and entering pleas of Not Guilty were:
- GEORGE GERALDO a 42-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, GERALDO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-15
- JAMIE RYAN MISCAMPBELL a 31-year-old resident of Kila, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, CAMPBELL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Drug Task Force and Homeland Security Investigations. PACER Case Reference. 16-17
- ANDREW JOSEPH SHIELDS a 32-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, SHIELDS faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Drug Task Force and Homeland Security Investigations. PACER Case Reference. 16-17
Appearing before U.S. Magistrate Johnston in Great Falls on March 22, 2016 and entering pleas of Not Guilty were:
- TYRELL HENDERSON, a 26-year-old resident of Box Elder, appeared on charges of involuntary manslaughter. If convicted of the charge contained in the indictment, HENDERSON faces 8 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-10
- ARIANNE LATRAY, a 23-year-old resident of Harlem, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, LATRAY faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-21
Appearing before U.S. Magistrate Lynch in Missoula on March 22, 2016 and entering pleas of Not Guilty were:
- STEVE ALAN BRITTNER a 50-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, BRITTNER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-15
Appearing before U.S. Magistrate Lynch in Missoula on March 21, 2016 and entering pleas of Not Guilty were:
- KAULIKA THARA ARENSBERG, a 35-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine. If convicted of the charge contained in the indictment, ARENSBERG faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration. PACER Case Reference. 16-11
- JAMES MICHAEL RANDALL, a 31-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine. If convicted of the charge contained in the indictment, RANDALL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration. PACER Case Reference. 16-11
Appearing before U.S. Magistrate Lynch in Missoula on March 18, 2016 and entering pleas of Not Guilty were:
- JENNIFER BROOKE BUSHNELL, a 30-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, BUSHNELL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference. 15-13
- GABRIEL CALVIN SMITH, a 39-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference. 15-13
Appearing before U.S. Magistrate Johnston in Great Falls on March 17, 2016 and entering pleas of Not Guilty were:
- JONATHAN JAY EAGLEMAN, a 50-year-old resident of Box Elder, appeared on charges of false statements to a federal agency. If convicted of the most serious charges contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Environmental Protection Agency. PACER Case Reference. 16-06
Appearing before U.S. Magistrate Johnston in Great Falls on March 15, 2016 and entering pleas of Not Guilty were:
- LOREN JAMES RIDER, a 38-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury/aiding and abetting. If convicted of the charge contained in the indictment, RIDER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-17
Appearing before U.S. Magistrate Lynch in Missoula March 15, 2016 and entering pleas of Not Guilty were:
- KELLY GORDON DUPUIS, a 26-year-old resident of Polson, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DUPUIS faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration. PACER Case Reference. 16-11
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Physician and Another Sent to Federal Prison in Health Care Fraud ConspiracyRead the Press Release
HOUSTON - Dr. Enyibuaku Rita Uzoaga, 43, has been ordered to serve 42 months and pay restitution to Medicare and Medicaid as a result of her six convictions of health care fraud and one count of conspiracy, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in Houston returned guilty verdicts Nov. 3, 2015, against Uzoaga following four hours of deliberation and a six-day trial.
Today, U.S. District Judge Ewing Werlein Jr. handed Uzoaga a 42-month sentence to be followed by three years of supervised release. She was further ordered to pay a $389,285 in restitution. In handing down the sentence, Judge Werlein noted the excessive number of vestibular tests that Uzoaga billed over an approximate four-year-period. One patient was billed for 1,200 tests after seeing Uzoaga only once. Evidence at trial showed patients only need one or two of these diagnostic tests in a lifetime.
Co-defendant Charles Harris, 55, who had pleaded guilty prior to trial, was sentenced earlier this month to 33 months in federal prison to be followed by three years of supervised release for his involvement in the Uzoaga case and two other vestibular indictments in the Southern District of Texas. In all three cases, Harris has been ordered to pay $1,500,203.72 in restitution to Medicare and $103,268.64 in restitution to Medicaid.
At trial, the jury heard that from approximately 2006 through 2010, Uzoaga, Harris and others falsely billed Medicare and Medicaid for numerous, unnecessary vestibular diagnostic tests. Some patients were billed for hundreds of tests, some for more than a 1,000. The evidence at trial showed that the testing by Harris and his employees was either not performed, not medically necessary and/or not performed by licensed individuals.
Vestibular diagnostic testing is used to diagnose a person for vertigo or dizziness. After being diagnosed, patients usually undergo physical therapy, take medication or undergo surgery as treatment.
As a result of this unlawful scheme between Harris and Uzoaga alone, Medicare and Medicaid were billed approximately $653,970 in submitted, fraudulent vestibular diagnostic claims. Medicare and Medicaid paid $389,285 on those claims.
Vestibular testing accounted for 23 percent of Uzoaga's income from Medicare and Medicaid.
At trial, Uzoaga attempted to convince the jury that she was unaware of the false billings. The jury did not believe her story and found Uzoaga guilty as charged.
Previously released on bond, Uzoaga was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Harris is in custody.
The charges are the result of the investigative efforts of the Texas Attorney General's Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations and the FBI. Special Assistant U.S. Attorney Suzanne Bradley and Assistant U.S. Attorney Tina Ansari prosecuted the case.
Hattiesburg Businessmen Indicted for Fraud Relating to Government Housing ContractRead the Press Release
Hattiesburg, Miss – Kenneth Fairley, 62, of Hattiesburg, and Artie Fletcher, 55, of Picayune, have been charged in a federal indictment with a scheme to defraud the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Gregory K. Davis, IRS Criminal Investigation Special Agent in Charge Jerome R. McDuffie, HUD Special Agent in Charge Nadine Gurley, Federal Bureau of Investigation Special Agent in Charge Donald Always and Mississippi State Auditor Stacey Pickering.
Fairley and Fletcher are charged with devising a scheme to defraud HUD in connection with a government contract issued to the City of Hattiesburg for the rehabilitation of three residential properties located within the city limits. The project was supported by federal funding and was executed through sub-contracted work to be completed by Pinebelt Community Services, a local non-profit operated by Fairley. The indictment alleges that Fairley conspired with Fletcher to fraudulently perform the work for a lesser amount than represented on the HUD contract, with the difference in the bid and actual costs being transferred to Fairley, through Fletcher, for purposes not intended by the government contract.
The indictment charges Fairley with one count of conspiracy to defraud the United States, two counts of theft of government money, one count of conspiracy to commit money laundering, and two counts of engaging in monetary transactions in property derived from unlawful activity.
Fletcher is charged with one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering, and one count of engaging in a monetary transaction in property derived from unlawful activity.
"When the federal government provides resources to local cities and county governments, the U.S. Attorney’s Office will be vigilant in vindicating the interests of the taxpayers when federal and state law enforcement agencies determine that the funds have been stolen or misused," said U.S. Attorney Gregory K. Davis.
IRS Criminal Investigation Special Agent in Charge Jerome R. McDuffie, stated: "While the indictment is merely an allegation with respect to the charges of money laundering violations and conspiracy to commit money laundering, IRS -CI takes the investigation of all crimes related to the misuse of taxpayer dollars very seriously. Our special agents will pursue the charges alleged against Mr. Fairley and Mr. Fletcher until the ends of Justice are served in this matter."
"Schemes that defraud the government are akin to stealing from American taxpayers", said Donald Alway, Special Agent in Charge of the FBI in Mississippi. "We take that very seriously. The FBI is committed to tracking and shutting down fraud schemes like the one alleged in the indictment. I also want to thank our law enforcement partners for their dedicated work in this case."
"I want to thank the Federal and State investigators who worked together on this case," said Mississippi State Auditor Stacey Pickering. "They are the unsung heroes who work to protect the taxpayers."
Fairley and Fletcher were arraigned before U.S. Magistrate Judge Michael T. Parker in Hattiesburg today. They are scheduled for trial before U.S. District Judge Keith Starrett on April 18, 2016.
The maximum penalties for the crimes charged in the indictment are as follows: Conspiracy to defraud the U.S. - 5 years in prison and a $250,000 fine; Theft of government money – 10 years in prison and a $250,000 fine; Conspiracy to commit money laundering - 20 years in prison and a $500,000 fine or twice the amount of the criminally derived property involved in the transaction; Engaging in monetary transaction in property derived from specified unlawful activity - 10 years in prison and $250,000 fine or twice the amount of the criminally derived property involved in the transaction.
This case was investigated by the U.S. Department of Housing and Urban Development, IRS – Criminal Investigation, Federal Bureau of Investigation, and the Mississippi State Auditor’s Office.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
Hartford Man Sentenced to 10 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AKEEM MANOO, a.k.a. “Keeme,” 25, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for gang-related narcotics trafficking.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force, which includes the Hartford Police Department, into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the WestHell street gang who, along with MANOO and other associates, distributed crack cocaine in the Westland Street area of Hartford.
In December 2014 and January 2015, investigators made four controlled purchases of crack from MANOO. In addition, MANOO indicated to the drug purchaser that MANOO had kilogram quantities of crack available for $19,600 per kilogram.
MANOO’s criminal history includes two state firearms convictions.
MANOO has been detained since March 2014 when he was arrested on state motor vehicle charges. On April 24, 2014, a grand jury returned a 52-count indictment charging Scott, MANOO and 23 others with various offenses. On May 4, 2015, MANOO pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack”).
Twenty-three defendants pleaded guilty to various offenses and one defendant was convicted after trial. One defendant was shot and killed while his case was pending.
On March 21, 2016, Scott was sentenced to 13 years of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Grady County Residents Sentenced for Burning Houses for InsuranceRead the Press Release
Acting United States Attorney for the Middle District of Georgia, G.F. Peterman, III, today announced the sentencing on March 24, 2016 of two individuals in an insurance fraud scheme. The sentences were handed by Senior District Court Judge W. Louis Sands in federal court in Albany, Georgia.
Elbert Walker, Jr. a/k/a “Shula”, aged 67, of Cairo, Georgia, was sentenced to serve 121 months in Federal prison for conspiracy to commit arson and mail, wire, bank and bankruptcy fraud and false declarations to a court as well as several firearms offenses and Shirley Burk, aged 48, of Cairo, Georgia, was sentenced to 60 months for conspiracy to commit arson, mail fraud and false declarations to a court.
The two defendants, along with Darryl Burk, were convicted in November 2015 of the charges following a three and a half week jury trial. Evidence presented at trial showed that between 1996 and 2006, Elbert Walker, Jr. was the owner and operator of Southside Grocery in Camilla, Georgia; Northside Home Remodeling in Cairo and Moultrie, Georgia; J and J Hauling, Roofing and Construction in Cairo, Georgia; North Broad Mini Market in Thomasville, Georgia; Rainbow Club located in Pelham, Georgia; Chickasaw Club in Cairo, Georgia; and Zock Rock Publishing and Promotions, Inc. located in Cairo, Georgia. Co-defendants Darryl Burk and Shirley Denise Burk were residents of Grady County, Georgia and relatives of Elbert Walker, Jr. Darryl Burk will be sentenced on May 19, 2016.
The three defendants conspired to destroy residential dwellings in the Grady, Mitchell, Thomas and Colquitt County areas by intentionally setting fire to them. They then defrauded insurance providers by falsely claiming that proceeds of insurance policies should be paid to them. In addition, the trio defrauded lending institutions in order to obtain financing for residential mortgage loans for the properties and presented counterfeit and forged checks associated with the proceeds of said insurance policies. Finally, Mr. Walker and Mrs. Burk defrauded the United States Bankruptcy Court and United States District Court.
The properties involved in the conspiracy were located at 1097 Bondvilla Drive in Cairo, Georgia; 410 Oak Street in Thomasville, Georgia; 555 Baggs Ferry Road in Camilla, Georgia; 605 S. Harney Street in Camilla, Georgia; and 608 Oak Circle in Moultrie, Georgia.
Evidence presented also showed that Mr. Walker was previously convicted of Welfare Fraud Conspiracy in New Jersey. In 2007 and 2011, agents executed search warrants at his residence in Cairo, Georgia and located multiple firearms in his possession. Some of these firearms also had obliterated serial numbers.
Acting U.S. Attorney Peterman said, “The criminal activities for which these defendants were sentenced today have been ongoing for years. Time and again they swindled banks and insurance companies and perpetrated frauds on our courts. They put the lives of firefighters in jeopardy through their numerous arsons for profit. As the leader of this gang, Elbert Walker, Jr. was a virtual one-man crime wave in South Georgia. He is the very person at whom are aimed our laws banning the possession of firearms by felons. I commend the federal, state and local law enforcement authorities who investigated this case for their excellent work in bringing these defendants to justice, as well as the prosecutors whose dedication and hard work resulted in these convictions.”
“Today’s sentence is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.
"The co-conspirators in this fraud ring went to great lengths to carry out their illegal schemes, which included arson and fraudulent insurance claims," said Insurance Commissioner Ralph Hudgens. "I would like to commend local, state and federal investigators and Assistant U.S. Attorney Leah McEwen, for their work in dismantling this major arson and insurance fraud ring."
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Secret Service, Georgia State Fire Marshal’s Office, Grady County Sheriff’s Office, Pelham Police Department, and Moultrie Fire Department. Assistant U.S. Attorney Leah McEwen and Special Assistant U.S. Attorney Harry Foster prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Fraudulent Tax Preparers Sentenced to Federal PrisonRead the Press Release
ATLANTA - Frederick Jenkins and Willie Jenkins have each been sentenced to over six years in federal prison after a jury convicted them of preparing and filing false tax returns with the Internal Revenue Service.
“The defendants in this case blatantly stole from their clients and left them to deal with the tax liability,” said U. S. Attorney John Horn. “It’s important to be careful when selecting someone to prepare tax returns. Demand to see what your tax preparer files with the IRS and ask questions, especially if the return seems too good to be true.”
“Return Preparer fraud is a top priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Veronica Hyman-Pillot, Special Agent in Charge, Atlanta Field Office. “Return preparers who concoct schemes to defraud the government, the tax paying public and their own clients face federal prosecution and federal prison. It is our hope that the sentencing of Willie and Frederick Jenkins helps reassure our communities that return preparers who lack integrity and engage in illegal activities will be held accountable for their actions.”
“Frederick and Willie Jenkins did a disservice to legitimate tax preparers who comply with Georgia tax law. The Jenkins’ not only violated the integrity of our tax system, but also placed an unfair burden on the hardworking taxpayers of Georgia. We will continue to find and track others who seek to defraud the taxpayers of our state,” said Josh Waites Director of the Office of Special Investigations, Georgia Department of Revenue.
According to U.S. Attorney Horn, the charges and other information presented in court: Between 2009 and 2012, Fredrick and Willie Jenkins prepared and filed thousands of tax returns at Global Tax Service, a business they managed together. The defendants created fictitious, unprofitable businesses that they listed on their clients’ tax returns as a way to generate fraudulent deductions. Those deductions lowered the clients’ taxable income and made their refunds larger. Ultimately, however, the clients were left to resolve their situations with the IRS and state authorities, while the defendants kept the fees they charged for preparing the returns.
In the end, Fred and Willie Jenkins conspired to create fraudulent business deductions that resulted in a tax loss of over $3.5 million.
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Frederick Jenkins, 43, of Douglasville, Georgia, was sentenced to six years, six months in prison to be followed by three years of supervised release, a special assessment of $1100, and restitution of $3.5 million to the IRS.
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Willie Jenkins, 46, also of Douglasville, was sentenced to six years, three months in prison to be followed by three years of supervised release, a special assessment of $700, and restitution of $3.5 million to the IRS.
Both Defendants were found guilty by a jury on October 26, 2015, following a week-long trial.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Office of Special Investigations, Georgia Department of Revenue.
Assistant United States Attorneys Bernita B. Malloy and Christopher C. Bly prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Fourth Defendant Pleads Guilty in Connection with Scheme to Unlawfully Ship Firearms to LebanonRead the Press Release
Bassem Afif Herz, age 31, pleaded guilty today in United States District Court in Cedar Rapids, to charges relating to a scheme to illegally ship firearms and ammunition to Lebanon.
Herz was originally charged along with his wife, Sarah Majid Zeaiter; his brother, Ali Afif Ali Herz; and his nephew, Adam Al Herz, in a criminal complaint filed in May 2015. The affidavit supporting the complaint alleged that between about August 2014 and May 11, 2015, three shipping containers originating from Cedar Rapids were loaded with Bobcat skid loaders, clothing, and various other items with an intended destination of Beirut, Lebanon. The first container was not interdicted. On about March 26, 2015, the second container was interdicted at the outbound port in Norfolk, Virginia, where it was found to contain 53 firearms and more than 6800 rounds of ammunition secreted in three Bobcat skid loaders inside the container. On May 8, 2015, a third container, loaded and shipped from a Cedar Rapids business, was searched and found to contain an additional 99 firearms and over 9500 rounds of ammunition. The firearms and ammunition were again secreted within two Bobcat skid loaders in the container.
Herz pleaded guilty today to: (a) one count of conspiring to: deal in firearms without a license; ship and transport firearms and ammunition in interstate commerce; make false statements to licensed firearms dealers; fail to give notice to common carriers; and violate the Arms Export Control Act; (b) one count of conspiracy to commit money laundering; and (c) one count of violating the Arms Export Control Act. In total, Herz could be sentenced to serve 45 years imprisonment; pay a $1,750,000 fine and $300 in special assessments; and serve 13 years of supervised release.
Herz’s wife, brother, and nephew each pleaded guilty in United States District Court in Cedar Rapids to similar charges on March 10 and 11, 2016.
Sentencing proceedings in each case will be set at a later date.
In a plea agreement unsealed at the time of the guilty plea today, Herz admitted there were a total of four shipments of guns sent from Cedar Rapids and destined for Lebanon, between March 2014 and May 2015. Each of the shipping containers was shipped from Midamar Corporation in Cedar Rapids and contained Bobcat skid loaders in which firearms and ammunition were concealed. Proceeds of the guns sales were used to purchase more guns and ammunition and to further the illegal scheme.
The case is being prosecuted by Assistant United States Attorney Richard Murphy and was investigated by U.S. Immigration and Customs Enforcement, Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and U.S. Customs and Border Protection.
Anyone with information concerning this matter is requested to contact Homeland Security Investigations at 319-286-4680.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-0054-LRR.
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Four Indicted for Robbery and Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that a federal grand jury in Raleigh, North Carolina returned a three count indictment charging JAMES STEPHEN THORPE a/k/a J1, JOSHUA RAYSHAWN MELVIN a/k/a J.O., ERVIN MONTEZ ALSTON, JR. a/k/a Wes or Wesley, and JAHID PRESTON DIGGS with conspiring to commit interference with commerce by robbery; interference with commerce by robbery; and discharging a firearm during and in relation to a crime of violence and aiding and abetting.
The investigation revealed that on March 16, 2015, THORPE, MELVIN, ALSTON and DIGGS committed a home invasion and robbery of the victim and others in the victim’s residence. During the robbery, the victim was shot and others in the home were injured and threatened. All four defendants are in custody awaiting their next court appearance.
If convicted, the defendants face up to 20 years’ imprisonment on both robbery counts. They also face not less than 10 years’ imprisonment and up to life imprisonment for the firearms offense.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation’s Raleigh Durham Safe Streets Task Force, Durham County Sheriff’s Office, Durham Police Department, Morrisville Police Department, Orange County Sheriff’s Office, North Carolina State Highway Patrol, North Carolina Alcohol Law Enforcement, and the North Carolina Department of Probation and Parole.
Four El Reno Residents Sentenced in Fraudulent Vehicle Cash-Back SchemeRead the Press Release
Oklahoma City, Oklahoma – Today, RICHARD M. ARNOLD SR. (a/k/a/ "Rick Arnold"), 62; RICHARD M. ARNOLD II, (a/k/a/ "Ricky Arnold"), 29; ROBERT W. ARNOLD, 26; and ROBYN R. ARNOLD, 57, all of El Reno, Oklahoma, were sentenced for conspiracy and wire fraud, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma. All were charged with conspiring to defraud new car purchasers out of cash included in loan proceeds based on false representations that a charitable trust would make all of the victims’ monthly car payments. The first three defendants received sentences of 54, 29 and 27 months in prison respectively. Robyn Arnold was ordered to serve five years of supervised release.
Ricky Arnold pled guilty to conspiracy on March 24, 2015; Rick and Robyn Arnold pled guilty on May 11, 2015. Robert Arnold, however, pled not guilty and went to trial before the Honorable Timothy D. DeGiusti on May 26, 2015. The evidence at trial showed that from May of 2013 through April of 2014, the defendants informed their acquaintances, family members, and friends that they could become beneficiaries of a program operated by a charitable trust designed to help working people acquire new cars. The defendants claimed that "CECU Trust" financed the program, which was also called the "United Auto Buyers Co-op Association."
Rick Arnold, Ricky Arnold, and Robert Arnold met car purchasers interested in the program at various car dealerships and arranged for purchases on credit that would include cash paid back to the buyers of $4,000 to $12,000 per car. In some instances, defendants caused victims’ loan applications to include fraudulently inflated income. Defendants told the car buyers that the rebate money would have to be given to the defendants for deposit into CECU Trust, which would then pay the buyers’ car loans in their entirety.
After the car purchases were complete, one or more of the defendants met the car buyers in a public place, such as a coffee shop or a bank, to receive the proceeds of the cash-back finance transactions. That money was deposited into bank accounts controlled by Robyn Arnold. Much of the money was used for personal expenses. Defendants also asked buyers to sign powers of attorney as well as proposed agreements advising the buyers that the association’s success depended on the buyers referring new participants to the program.
When various lenders notified buyers of potential defaults, defendants either assured the buyers that the payments would be made or stated that the trust would be unable to make further payments unless the buyers recruited additional participants.
The jury convicted Robert Arnold of conspiracy and wire fraud after hearing more than two days of testimony.
Today Judge DeGiusti sentenced all four defendants. They received the following sentences:
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Rick Arnold: 54 months in prison, plus 4 years of supervised release
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Ricky Arnold: 29 months in prison, plus 2 years of supervised release
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Robert Arnold: 27 months in prison, plus 2 years of supervised release
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Robyn Arnold: ordered to serve 5 years of supervised release
Rick Arnold’s sentence included an upward adjustment for his leadership role. All four sentences were based on loss amounts of more than $250,000. The court will determine a precise restitution amount within 60 days.
Reference is made to court filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and the Public Protection Unit of the Oklahoma Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorneys Scott E. Williams and Kate Holey.
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Former Tate County, Mississippi, Sheriff’s Deputy Sentenced for Unlawful TasingRead the Press Release
Former Tate County, Mississippi, Lieutenant Randy T. Doss, 63, was sentenced to two years in prison today for unlawfully tasing a pretrial detainee, J.W., at the Tate County Jail. The tasing, which occurred in 2012, caused the victim to fall to the concrete floor and fracture his skull.
At the time of the incident, which was captured on video, the victim was standing against a wall with his hands over his head, not posing a physical threat to anyone. Doss tased the victim from 11 feet away. The victim fell backward and hit his head on the concrete floor, necessitating brain surgery.
“The defendant is a veteran law enforcement officer who had been certified to train other officers on appropriate use of force,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will protect the rights of all citizens from excessive force at the hands of law enforcement.”
“The defendant abused his authority, violated the law and the public trust,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “While the majority of law enforcement officers are hardworking professionals who risk their lives daily for our safety, the U. S. Attorney’s Office is committed to aggressively prosecuting those officers who break the law and violate an individual’s constitutional rights.”
“In making arrests, maintaining order and defending life, the law allows law enforcement officers to use whatever force is ‘reasonably’ necessary,” said Special Agent in Charge Donald Alway of the FBI’s Jackson Division. “Violations of federal law occur when it can be shown, as in this case, that the force used was willfully ‘unreasonable’ or ‘excessive.’”
Doss had more than 20 years of experience in law enforcement, and had been certified to train other officers on the proper use of force, including how to use a taser.
Doss was indicted on March 30, 2015, by a grand jury in Oxford, Mississippi. He was charged with a single count of violating the rights of J.W. not to be deprived of liberty without due process of law. Doss was charged with both using a dangerous weapon – a taser – and causing bodily injury to the victim. He pleaded guilty to the single count in October 2015.
The case was investigated by the FBI’s Jackson Division, with the cooperation of the Tate County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorneys Dana Mulhauser and Andres Palacio of the Civil Rights Division’s Criminal Section.
Former Tate County, Mississippi, Sheriff's Deputy Sentenced for Unlawful TasingRead the Press Release
WASHINGTON – Former Tate County, Mississippi, Lieutenant Randy T. Doss, 63, was sentenced to two years in prison today for unlawfully tasing a pretrial detainee, J.W., at the Tate County Jail. The tasing, which occurred in 2012, caused the victim to fall to the concrete floor and fracture his skull.
At the time of the incident, which was captured on video, the victim was standing against a wall with his hands over his head, not posing a physical threat to anyone. Doss tased the victim from 11 feet away. The victim fell backward and hit his head on the concrete floor, necessitating brain surgery.
“The defendant is a veteran law enforcement officer who had been certified to train other officers on appropriate use of force,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will protect the rights of all citizens from excessive force at the hands of law enforcement.”
“The defendant abused his authority, violated the law and the public trust,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “While the majority of law enforcement officers are hardworking professionals who risk their lives daily for our safety, the U. S. Attorney’s Office is committed to aggressively prosecuting those officers who break the law and violate an individual’s constitutional rights.”
“In making arrests, maintaining order and defending life, the law allows law enforcement officers to use whatever force is ‘reasonably’ necessary,” said Special Agent in Charge Donald Alway of the FBI’s Jackson Division. “Violations of federal law occur when it can be shown, as in this case, that the force used was willfully ‘unreasonable’ or ‘excessive.’”
Doss had more than 20 years of experience in law enforcement, and had been certified to train other officers on the proper use of force, including how to use a taser.
Doss was indicted on March 30, 2015, by a grand jury in Oxford, Mississippi. He was charged with a single count of violating the rights of J.W. not to be deprived of liberty without due process of law. Doss was charged with both using a dangerous weapon – a taser – and causing bodily injury to the victim. He pleaded guilty to the single count in October 2015.
The case was investigated by the FBI’s Jackson Division, with the cooperation of the Tate County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorneys Dana Mulhauser and Andres Palacio of the Civil Rights Division’s Criminal Section.
Former State Representative Sentenced to 7 Years for BriberyRead the Press Release
LEXINGTON — A former state representative and Pikeville coal operator, Wendell Keith Hall, has been sentenced to 7 years for bribing a state mine official.
Today, U.S. District Judge Karen Caldwell sentenced Hall, 56, and also ordered him to pay a $25,000 fine and serve two years on supervised release, following service of his sentence. Under federal law, Hall will have to serve at least 85 percent of his sentence.
Hall, who represented House District 93 in the Kentucky General Assembly, was convicted by a jury, in June, of paying former mine reclamation officer Kelly Shortridge, for favorable treatment in connection with his official duties.
Shortridge worked at the Kentucky Division of Mine Reclamation and Enforcement, where he was responsible for enforcing mine reclamation statutes and regulations. Evidence presented at trial established that from 2006 through 2011, Shortridge inspected mines owned by Hall and ignored violations that occurred on Hall’s property, in exchange for a series of payments totaling over $46,000.
The evidence also established that the two men disguised the payments as consulting fees. In 2010, a shell company, DKJ Consulting, was established in the name of Shortridge’s wife. Hall then used a company he owned, S&K Properties, to funnel money to Shortridge, through DKJ, in order to make the payments appear as legitimate business expenses.
Shortridge was sentenced to two years in prison in January.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, FBI; and Scott Oliver, Department of Interior, Office of Inspector General, jointly made the announcement.
Former Prison Guard Admits Smuggling Contraband into Philadelphia PrisonRead the Press Release
PHILADELPHIA – Dupree Myers, 27, previously employed at Curran-Fromhold Correctional Facility (“CFCF”), pleaded guilty today to attempted extortion which interfered with interstate commerce and attempted distribution of controlled substances. Myers agreed to deliver OxyContin pills and a cellphone to a prisoner in exchange for $1,000. U.S. District Court Judge Wendy Beetlestone scheduled a sentencing hearing for June 23, 2016. Myers faces a statutory maximum sentence of 40 years, plus supervised release, a special assessment, and a possible fine.
To obtain the contraband and payment, Myers arranged a meeting with the inmate’s purported associate at a location in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to Myers, and Myers subsequently smuggled the contraband past prison security and delivered it to an inmate.
Myers was one of six prison guards charged by separate, unrelated indictments. Each of the officers from within the Philadelphia Prison System was charged with smuggling drugs and/or cell phones to inmates in exchange for money. To date, in addition to Myers, guilty pleas have been entered in separate, related cases by: George Kindle, a former correctional officer at The House of Corrections; Marc Thompson, a former correctional officer at The House of Corrections; John Wesley Herder, a former correctional officer at the Curran-Fromhold Correctional Facility; Joseph Romano, a former correctional officer at The Philadelphia Industrial Correctional Center. Defendant Bryant Fields, a former correctional officer at The Detention Center, is awaiting trial.
The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.