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5 May 2016
Owner of Security Camera Company Arrested on Child Exploitation ChargesRead the Press Release
NEWPORT NEWS, Va. – Larry Dean Drommerhausen, 53, of Newport News, owner of Independent Systems, a Newport News business that installs video surveillance equipment, has been arrested and charged with production of child pornography. Drommerhausen appeared in U.S. district court in Norfolk this afternoon for his detention hearing.
According to court documents and court proceedings, Drommerhausen came to the attention of the FBI after numerous files containing child pornography were downloaded from his computer. On April 4, law enforcement executed a search warrant at his home and interviewed Drommerhausen, in addition to seizing numerous electronic devices. During the interview, Drommerhausen stated he owns a business that installs regular and hidden cameras, and that he had seen child pornography on hidden camera forums online. He also stated that he has adopted a child and has been a foster parent for numerous children who have been physically or sexually abused.
The FBI’s Norfolk Field Office is asking for the public’s help in identifying any additional potential victims. Individuals with information regarding this case should contact the FBI at (757) 609-2398.
Drommerhausen faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
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 Drommerhausen’s detention hearing before U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorneys Lisa R. McKeel and Megan M. Cowles are prosecuting 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. 4:16-mj-78.
Officials Take Down Gang-Affiliated Drug Traffickers; Remove Methamphetamine, Heroin and Guns from the StreetRead the Press Release
Assistant U. S. Attorneys Andrew Haden (619) 546-6961 and Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – May 5, 2016
SAN DIEGO – As residents of the Skyline neighborhood expressed gratitude, federal agents arrested 18 suspected gang members and associates who are charged with gun and drug-trafficking crimes in federal grand jury indictments unsealed yesterday and today.
The majority of arrests occurred in the Skyline and Paradise Hills neighborhoods – areas historically plagued by gang violence. Just days ago, a shooting at nearby Emerald Hills Park left one person dead on May 1, and two days later there was an officer-involved shooting a few miles away.
Following a yearlong investigation and a two-day sweep that concluded this morning, 25 defendants were charged and six firearms were taken off the streets. Over 1,500 grams of methamphetamine and 248 grams of heroin were also seized as part of the investigation. Seven defendants are still at large.
The two indictments describe four different conspiracies with overlapping players, including individuals with ties to criminal street gangs, including Skyline, the Samoan Bloods, Kalaban, the Stateside Islanders, the Paradise Hills Locos, Logan Heights, Old Town National City, National City Southside Mob, Trust No Soul, and Lincoln Park.
According to the indictments and a search warrant affidavit, most defendants were drug traffickers selling methamphetamine. Some of the conspiracies involved the importation of methamphetamine and heroin from Mexico. Some of the defendants were felons in possession of firearms.
According to federal agents, during the execution of the search warrant at a residence on Brookhaven Road, several members of the community thanked law enforcement for their efforts in helping make the community safer.
“Methamphetamine is ravaging our communities, and it’s not just users who are suffering,” said U.S. Attorney Laura Duffy. “Residents in these meth- and gang-infested areas deserve to live in peace, free of gunfire, violence and fear.”
“HSI and our law enforcement partners have successfully disrupted a contraband smuggling operation linked to several San Diego-area gangs,” said Dave Shaw, special agent in charge for HSI San Diego. “As part of this joint investigation, we have dealt a serious blow to violent gang organizations. Combating violent crime to make our communities safe is a top priority.”
“Competition between these dealers over control of the drug trade, combined with criminal street gang influence, was creating a dangerous environment for our entire community,” said San Diego Police Chief Shelley Zimmerman. “The success of this joint operation with our law enforcement partners has made our neighborhoods safer.”
Eleven defendants were arraigned in federal court today and one yesterday before U.S. Magistrate Judge Nita L. Stormes.
DEFENDANTS
United States v. Ortiz, et al, 16-CR-874-JAH
FRANCISCO JAVIER ORTIZ-LUNA (1) – 33 years old
JAVIER HERNANDEZ (2) – 23 years old
YARELI MAGNOLIA NORIEGA (3) – 27 years old
JASMINE EUNIQUE RIPP (4) – 29 years old
*JULIO ALBERTO ONTIVEROS (5) – 38 years old
SUMMARY OF CHARGES
Title 21, U.S.C., Secs. 952, 960, 963 Conspiracy to Import Controlled Substances - Life
Title 21, U.S.C., Secs. 841(a)(1) and 846 B Conspiracy to Distribute Methamphetamine - Life
Title 21, U.S.C., Secs. 952 and 960 Importation of Methamphetamine – 20 years
Title 21, U.S.C., Sec. 841(a)(1)- Possession of Methamphetamine with Intent to Distribute – 40 years
Title 21, U.S.C., Secs. 952 and 960 B Importation of Heroin – 40 years
Title 21, U.S.C., Sec. 841(a)(1)- Possession of Heroin with Intent to Distribute – 20 years
DEFENDANTS
United States v. Usini, et al., 16-CR-875-JAH
FILI USINI (1) - 42 years old
VIRGILIO SORIANO VILLEGAS (2) – 43 years old
CARL DELANDO BRANDON (3) – 45 years old
DEANDRE COOK (4) – 46 years old
FRANC LESTER BULARAN (5) – 35 years old
ANTHONY VELARDE (6) – 31 years old
KRISTOFFER UMALI MACALMA (7) – 29 years old
BICENTENNIAL POUTOA (8) – 39 years old
VICTOR CERVANTES (9) – 42 years old
*JORGE ARMANDO SALAS (10) – 44 years old
*MAURICE SCOTT (11) – 45 years old
JAMES GILLESPIE (12) – 47 years old
KEITH IAULUALO (13)- 33 years old
LONNIE DARNELL ANDERSON (14) – 47 years old
TERRENCE ANDERSON (15) – 46 years old
*PATRICK JEFFREY DIBBLE (16) – 42 years old
*KEMONDRE HAMILTON (17) – 35 years old
*RICHARD BELCHER (18) – 53 years old
LAVONN WILLIAM HALL (19) – 45 years old
*ANITA VILLALBA (20) – 53 years old
SUMMARY OF CHARGES
Title 21, U.S.C., Secs. 841(a)(1) and 846 B Conspiracy to Distribute Methamphetamine – Life
Title 21, U.S.C., Sec. 841(a)(1)- Possession of Methamphetamine with Intent to Distribute – Life
Title 18, U.S.C., Sec 922(g)(1) – Felon in Possession of a Firearm – 10 years
Title 21, U.S.C., 853, Title 18, U.S.C., 924(d), and Title 28, U.S.C., 2461(c) – Criminal Forfeiture
AGENCY
Immigration and Customs Enforcement’s Homeland Security Investigations
San Diego Police Department
Drug Enforcement Administration
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego Sheriff’s Department
San Diego County Probation Department
El Cajon Police Department
San Diego County District Attorney’s Office
U.S. Bureau of Prisons
*Fugitives
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Novato Resident Charged in Id Theft Tax Fraud SchemeRead the Press Release
SAN FRANCISCO – Parnian Djafarzadeh, aka Parnian Clark, aka Saundra Djafarzadeh, was charged with possession of stolen mail, false claims, wire fraud, and aggravated identity theft announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
According to the indictment, Djafarzadeh prepared and filed 2010 and 2011 federal income tax returns in the names of other individuals who were not entitled to the claimed tax refunds. Djafarzadeh knew the claims for refunds were false and that the individuals were not entitled to the refunds that were being requested. The defendant was also charged with unlawfully having in her possession a check addressed to another individual that had been stolen or taken from the mail receptacle.
Djafarzadeh, of Novato, was indicted on April 21, 2016. She was charged with one count of possession of stolen mail, fourteen counts of false claims, three counts of wire fraud, and three counts of aggravated identity theft. She was arrested this morning and made her initial appearance before United States Magistrate Judge Elizabeth D. Laporte in San Francisco. She is being held pending a detention hearing before Magistrate Judge Laporte scheduled for May 10, 2016.
The maximum statutory penalty for possession of stolen mail, in violation of 18 U.S.C. § 1708, is five years in prison and a fine of $250,000. The maximum sentence for false claims, in violation of 18 U.S.C. § 287, is five years in prison and a fine of $250,000. The maximum sentence for wire fraud, in violation of 18 U.S.C. § 1343, is twenty years in prison and a fine of $250,000. The maximum sentence for aggravated identity theft, in violation of 18 U.S.C. § 1028A, is two years in prison—to be served consecutively to the underlying felony—and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
New Jersey Man Pleads Guilty to Committing Perjury While Testifying Before Nashville Grand JuryRead the Press Release
Michael D. Tangredi, 55, of Toms River, New Jersey, pleaded guilty today to one count of perjury, announced United States Attorney David Rivera. During a hearing before U.S. District Judge Aleta A. Trauger, Tangredi admitted lying to a federal grand jury that had been investigating his son, Michael G. Tangredi, for conduct concerning fraudulent credit card transactions.
In 2013, Tangredi’s son was indicted on various charges, including money laundering, in connection with his alleged use of an American Express card to process more than $1,000,000 in fraudulent transactions. During his trial in April 2014, Michael G. Tangredi pleaded guilty to one count of money laundering, after testimony had shown that he had used funds acquired from the fraudulent American Express transactions to purchase a Maserati, a Bentley, and a restaurant in Hawaii.
During his plea hearing, Michael D. Tangredi admitted that he knowingly gave false testimony before the grand jury regarding the Maserati that had been purchased with fraudulently-acquired funds. Specifically, Tangredi admitted that he lied under oath to the grand jury when he testified that he was the person who had purchased this Maserati, whereas, in reality his son had purchased the automobile with fraudulently-derived funds. Tangredi further admitted that he had intended to testify untruthfully at his son’s trial.
Tangredi faces up to 5 years in prison and a fine of up to $250,000. He will be sentenced by Judge Trauger on August 22, 2016. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
New Jersey Man Charged with Illegal ReentryRead the Press Release
PHILADELPHIA - Gokhan Ayaz, 34, of Maple Shade, New Jersey, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about April 4, 2016, Ayaz, an alien, and native and citizen of Turkey, was found in the United States after having been deported from the United States on or about March 11, 2013.
If convicted, the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”) and United States Customs and Border Protection (“CBP”), and is being prosecuted by Assistant United States Attorney Andrea Foulkes.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Montgomery County Resident Charged with Illegal ReentryRead the Press Release
Melkin Andeldo Estrada-Hernandez, a/k/a “Melkin Aneldo Estrada,” 30, of Oreland, 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 March 28, 2016, Estrada-Hernandez, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about June 28, 2012.
If convicted the defendant faces a statutory maximum sentence of 20 years in prison, a possible fine, a period of supervised release, and a $100 special assessment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Milwaukee Woman Pleads Guilty to Converting Supplemental Security Income Payments Intended for the Use and Benefit of OthersRead the Press Release
Today, Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that Theresa Anthony (age 38) of Milwaukee, Wisconsin, entered a plea of guilty in federal court. Anthony pleaded guilty to a one-count indictment that charged her with converting Supplemental Security Income (“SSI”) payments to a use other than for the use of the intended beneficiaries, in violation of Title 42, United States Code, Section 408(a)(5). The offense has maximum penalties of five years’ imprisonment, a $250,000 fine, and three years’ of supervised release. Anthony will be sentenced before the Honorable Lynn S. Adelman on August 5, 2016.
SSI benefits are payable under Title XVI of the Social Security Act for aged, blind, and disabled persons with little or no income or resources. A “representative payee” is an individual or organization appointed by the Social Security Administration to receive and manage the SSI benefits of another person.
The indictment against Anthony charged that she acted through an entity known as City Transformation, Ltd., which successfully applied to serve as representative payee to receive and manage SSI benefit payments on behalf of numerous disabled or otherwise-qualified beneficiaries in Milwaukee, Wisconsin. In her role as Executive Director of City Transformation, Ltd., Anthony converted SSI payments received by City Transformation, Ltd. and intended for the use and benefit of others to her own use and that of City Transformation, Ltd.
Specifically, as part of her plea, Anthony has admitted that on or about March 18, 2011, she diverted SSI payments from a collective representative payee account maintained by City Transformation, Ltd. to a general business account maintained by City Transformation, Ltd., and then withdrew approximately $22,364.93 from that general account so that City Transformation, Ltd. could purchase Milwaukee real estate from the defendant.
Anthony has also admitted that the March 18, 2011 transactions were part of an ongoing course of conduct involving the misuse of SSI funds. As part of her plea, she has agreed to pay restitution in the amount of approximately $250,000.
The case was investigated by the Social Security Administration, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jonathan H. Koenig.
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Member of Heroin Conspiracy Pleads GuiltyRead the Press Release
ROANOKE, VIRGINIA – A man who conspired with others to distribute heroin 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.
Jesse Ray Little, pled guilty today to one count of conspiring to distribute 100 grams or more of heroin. The defendant faces a maximum possible penalty of up to 40 years in prison.
“Heroin continues to destroy our communities and we will continue to work with our partners in law enforcement to prosecute those who deal this deadly drug as well as provide treatment and prevention services to those in need,” United States Attorney John P. Fishwick Jr. said today.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bedford County Sheriff’s Office and the Virginia State Police. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Media Alert: 13th Annual Project Sentry Logo Contest Winners AnnouncedRead the Press Release
Contact Person: D. Josev Brewer (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today the winners of the United States Attorney's Office 13th Annual Project Sentry Logo Contest. The winners are from the following schools:
K-2nd grade division winner: Ean Bane, Ocean Drive Elementary, North Myrtle Beach, SC
3rd-5th grade division winner: Kaden Crawford, Reuben Elementary, Newberry, SC
6th-8th grade division winner: Elias Ryans, Westview Middle School, Greenwood SC
9th-12th grade division winner: Elody Bensch, Waccamaw High School, Pawley’s Island SC
Overall winner: Elias Ryans, Westview Middle School, Greenwood SCThe winners were chosen from one hundred and ten (110) entries from thirteen (13) schools across South Carolina. Each division winner will receive a $50.00 award, with the overall winner receiving an additional $50.00 award. All of the students who participated will receive a Certificate of Appreciation for logo submissions.
The statewide contest provides an opportunity for South Carolina students to express their commitment to non-violence and share how they would prevent gun violence in their school. The contest is intended to focus on deterring juvenile gun violence and ensuring secure school environments. The contest was open to students in all South Carolina schools.
Importantly, the winning entries were selected by "The Insiders," a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state, encouraging troubled children and promoting community awareness of the prevalence and consequences of juvenile crime. The U.S. Attorney's Office coordinated with the South Carolina Law Enforcement Officers' Association Foundation (SCLEOA) to provide the cash awards to the winners.
Project Sentry, which is part of the district=s Project Safe Neighborhoods/Project CeaseFire program, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children. For more information on the Project Sentry program and to view this year’s winning submissions (also attached below), as well as winning logos over the years, visit http://www.justice.gov/usao/sc/programs/logowinners.html.
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Maryland Man Who Distributed Synthetic Drug That Caused Overdoses at Wesleyan University is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ZACHARY KRAMER, 22, of Bethesda, Maryland, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to eight months of home confinement with outpatient drug treatment, four months of imprisonment, three years of supervised release and a $10,000 fine.
According to court documents and statements made in court, KRAMER and Eric Lonergan were students at Wesleyan in Middletown, Conn. Beginning in approximately November 2013, Lonergan began selling a substance he referred to as both “Molly” and MDMA to students on or in the vicinity of the Wesleyan campus. Lonergan regularly sold Molly from his dorm room, charging approximately $20 per .1 gram, or $200 per gram, Lonergan also counseled students on how to ingest Molly and other psychedelic drugs. At one point in 2014, after the administration at Wesleyan sent out a campus-wide communication warning of the dangers of ingesting controlled substances like Molly, Lonergan responded by distributing a pamphlet instructing students on the use of psychedelic drugs.
In approximately September 2014, KRAMER began purchasing what he believed to be Molly from Lonergan and distributed it to students at Wesleyan. At times, Lonergan used a chemical test on the substance he sold KRAMER to prove to him that he was selling KRAMER high-quality MDMA.
In September 2014, Lonergan was the source of Molly for several students who were planning a “rolling” party at Wesleyan, which is a party where guests ingest Molly. He provided several grams of a substance he represented to be MDMA, in bulk, and another student then distributed it to students in .1 gram capsules. At this party, which occurred on September 13, 2014, several students became ill, some seriously, after ingesting the substance provided by Lonergan. Two of these students were transported to the hospital. After these overdoses, Lonergan sent electronic communications to several students assuring them that the substance he provided to them was indeed MDMA. One of the students who became ill at the party saved one of the capsules she had purchased and turned it over to the Middletown Police in February 2015. A lab test on the contents of that capsule revealed that it did not contain MDMA, but contained two other controlled substances: AB Fubinaca, a Schedule I controlled substance, and 6-MAPB, an analogue of MDMA.
In approximately December 2014, KRAMER became the primary supplier of MDMA at Wesleyan. KRAMER typically sold the MDMA in .1 gram quantities for $20 each or he sold it in 5-gram and 10-gram quantities for a discount, charging $100 or more, depending on the customer and the quantity. During this time period, Lonergan still supplied KRAMER with bulk quantities of MDMA. In approximately January 2015, KRAMER purchased approximately 45 grams of MDMA from Lonergan. KRAMER broke that quantity into 5 and 10-gram bags and distributed those bags to other students who planned to break down the MDMA into .1 gram capsules, sell those capsules to other Wesleyan students, and pay KRAMER for the quantity of the drug he had provided to them.
On February 21, 2015, 11 individuals, including 10 Wesleyan students, overdosed on a substance they believed was MDMA, and many were transported to the hospital. Two of the students were in critical condition, and one of the students had to be revived after his heart stopped. All of these students obtained the purported MDMA through individual distributers who were supplied directly by KRAMER.
Although KRAMER and some of his distributers destroyed the substance identified as Molly that they had in their possession, one of the distributers did not, and that substance was seized by law enforcement officers and sent to the toxicology laboratory for testing. Laboratory analysis confirmed that the powdered substance contained AB Fubinaca.
Kramer and Lonergan were arrested on federal charges on May 22, 2015.
On November 12, 2015, KRAMER pleaded guilty to one count of conspiracy to possess with the intent to distribute, and to distribute, MDMA (“Molly”).
Lonergan pleaded guilty to the same charge on November 30, 2015. He is scheduled to be sentenced on June 15, 2016.
This matter was investigated by the Drug Enforcement Administration and the Middletown Police Department, with the assistance of the State of Connecticut’s Forensic Science Laboratory.
U.S. Attorney Daly acknowledged the support and assistance of the Middlesex State’s Attorney’s Office, which is prosecuting several state cases stemming from these overdose events.
The federal case is being prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Manhattan U.S. Attorney Announces $4.3 Million Settlement of False Claims Act Action Based on New York City Fire Department’s Receipt of Improper Reimbursements from MedicareRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”), announced today that the United States has settled civil claims under the False Claims Act against the City of New York (the “City”) related to the receipt by the New York City Fire Department (“FDNY”) of reimbursements for claims for emergency ambulance services that did not meet Medicare’s medical necessity requirement. This matter was brought to the attention of the U.S. Attorney’s Office through a voluntary disclosure by the City.
Manhattan U.S. Attorney Preet Bharara said: “For the Medicare program to function properly and fairly, it is essential that providers be reimbursed only for those services that are covered. For more than four years, the New York City Fire Department received reimbursements for emergency ambulance services that did not meet Medicare’s requirements. We appreciate that the City of New York brought this to our attention, and we believe this settlement to be an appropriate resolution of the problem.”
HHS-OIG Special Agent in Charge Scott L. Lampert said: “HHS-OIG is committed to protecting the Medicare program and the taxpayers who help fund it. This settlement will help ensure that our federal health care programs are utilized properly so they continue to serve those who need them most.”
The FDNY, through its Bureau of Emergency Medical Services, provides emergency ambulance services throughout the City, including to patients eligible for Medicare. FDNY ambulances are dispatched in response to 9-1-1 calls for emergency medical assistance. To receive payment for emergency ambulance services provided to patients eligible for Medicare, the FDNY, through its ambulance billing contractor, submits claims to Medicare containing required information about each service. Emergency ambulance services for patients eligible for Medicare are only reimbursable from Medicare if those services meet Medicare’s medical necessity requirement.
As alleged in a complaint filed on Tuesday, May 3, 2016 in Manhattan federal court, between October 2008 and October 2012, the City consistently received reimbursements for tens of thousands of claims submitted to Medicare for emergency ambulance services that the City had identified as not meeting the Medicare medical necessity requirement. The City was aware that Medicare was paying reimbursements for these claims, but did not take steps to inform Medicare of the reimbursements for more than four years.
In the settlement, approved yesterday by United States District Judge Edgardo Ramos, the City agreed to pay $4.3 million and admitted and accepted responsibility for the following:
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From October 2008 through and including October 2012, the FDNY, through its ambulance billing contractor, submitted claims to Medicare for reimbursement for emergency ambulance services. As part of the claim submission process, the FDNY made assessments as to whether the emergency ambulance services associated with each claim met the Medicare medical necessity requirement.
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During this time period, the FDNY determined that thousands of claims for emergency ambulance services did not satisfy the Medicare medical necessity requirement, and provided information in the claims reflecting that determination to a Medicare Administrative Contractor as part of the claim submission process.
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During this time period, the FDNY consistently received reimbursements from Medicare for claims submitted to Medicare for emergency ambulance services that FDNY had identified as not meeting the Medicare medical necessity requirement.The FDNY was aware that Medicare was consistently paying the FDNY for such claims, but did not take steps to inform Medicare of its consistent receipt of Medicare reimbursement for such claims until December 2012.
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Beginning in or around September 2013, the FDNY modified its claiming procedures to reduce the risk that the FDNY would be improperly reimbursed for claims for emergency ambulance services that were not medically necessary.
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This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorneys Andrew E. Krause and Rebecca C. Martin are in charge of the case.
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Man Convicted of Sexually Abusing a Child in 1990sRead the Press Release
BILLINGS – George Chad Deputee, 42, of Crow Agency, was convicted of aggravated sexual abuse and abusive sexual contact of a child yesterday following a three-day jury trial. U.S. District Court Judge Susan Watters presided over the trial. A date for sentencing has not been set.
Deputee was initially indicted in March 2015 for aggravated sexual abuse and abusive sexual contact of a child. A superseding indictment was returned by a grand jury in November 2015. It alleged that the sexual abuse occurred between April 1992—when Deputee turned 18 years old—and December 1997.
At trial, the government introduced evidence that Deputee sexually abused two girls starting in 1989. In August of 2012, the victim’s sister reported to BIA law enforcement that Deputee molested her in the late-1980s when she was approximately five years old. She told authorities the abuse had occurred frequently, both day and night, while Deputee was living with her family in Lodge Grass. Deputee was approximately 18 years old at the time. The victim’s mother remembered waking up to hear someone running out of her children’s room.
The victim’s sister also informed the BIA that Deputee had sexually abused her younger sister (the victim) sometime later. Both women testified at trial. They explained how Deputee had sexually abused and molested them when they were young girls. All of the instances of abuse occurred in Lodge Grass, Montana on the Crow Indian Reservation, where Deputee and both victims were living during the relevant time period.
The FBI interviewed Deputee in October 2012. Deputee denied that he had ever abused anyone. During his interview, Deputee initially omitted any account of having lived with the victim’s family during the time the abuse took place. When challenged, Deputee ultimately admitted that he had lived with the victim’s family but stated that the victim had not yet been born at the time. Later in the interview, however, he drew a diagram of the residence, marking one of the bedrooms with the victim’s name on it.
Deputee also testified at trial. On the witness stand, he claimed that he was living in North Dakota when the abuse occurred. He stated under oath that he only returned to Montana on two occasions between 1989 and 1993 – the relevant time frame. To rebut this alibi, the prosecution introduced a number of documents that placed Deputee in Lodge Grass for medical appointments on far more than two occasions during that time period.
At trial, the United States also moved to introduce evidence of other sexual assaults committed by Deputee, namely on the victim’s older sister. Both girls (now grown) recounted nearly identical, and protracted, periods of abuse by Deputee. Deputee consistently and repeatedly molested both girls from the time they were about five years old until they were nine or ten. The type and frequency of abuse reported by both girls was substantially the same. Deputee began abusing the victim referenced in the Indictment shortly after he stopped abusing her older sister. The government successfully argued that introduction of this evidence was necessary to corroborate the victim’s account, given the long period of time since the abuse had taken place.
The case was investigated by the FBI and BIA and prosecuted by Assistant U.S. Attorney John Sullivan and Special Assistant U.S. Attorney Adam Duerk.
Mail Thief and Counterfeitter Sentenced to 5 Years in PrisonRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Geoffrey R. Albertson, age 32, of Greenville, was sentenced in federal court in Anderson, for conspiracy to commit fraud, a violation of Title 18, United States Code, Section 371. United States District Judge Timothy M. Cain of Anderson sentenced Albertson to 60 months imprisonment and ordered him to pay over $11,000 in restitution.
Evidence presented at the change of plea hearing established that Albertson and others regularly stole mail from residential boxes, sorted the stolen mail for checks and personal identifying information, created altered or counterfeit checks, and then negotiated the checks throughout the upstate. Most of the fraud was conducted in an effort to obtain funds to purchase methamphetamine. Albertson was captured on multiple bank surveillance cameras when he negotiated the checks.
The case was investigated by agents of United States Postal Inspection Service and the Easley Police Department. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Las Vegas Man Sentenced for Cocaine PossessionRead the Press Release
Jiwon Jiwon Park, 37, of Las Vegas, Nevada, was sentenced on May 5, 2016, in federal district court in East St. Louis, Illinois, for Possession with Intent to Distribute Cocaine, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Park will serve a 36 month term of imprisonment, to be followed by a 5 year term of supervised release. The Court also imposed $5,100 in financial penalties. Facts presented in court revealed that on June 27, 2015, an Illinois State Police officer stopped Park’s vehicle after observing him traveling too closely to other vehicles on Interstate 70 in Madison County, Illinois. A search of the vehicle yielded approximately 6 kilograms (over 13 pounds) of cocaine hidden in vacuum sealed bags in the trunk.
This case was investigated by the Department of Homeland Security (DHS) and the Illinois State Police (ISP) and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Justice Department Reaches Settlement with Council Bluffs, Iowa, over Disability Access to Mid-America CenterRead the Press Release
The Justice Department announced today that it has reached an agreement with the city of Council Bluffs, Iowa, to resolve alleged violations of the Americans with Disabilities Act (ADA), for failing to provide access for individuals with disabilities at Mid-America Center. Opened in 2002, the Mid-America Center is a multipurpose arena for basketball, hockey and concerts with 9,000 seats.
During its investigation of the Mid-America Center, the United States found that Council Bluffs failed to provide sufficient wheelchair seating, seating for companions to users of wheelchairs and accessible aisle seating to allow people to transfer to the seats by removing or moving arm rests. The United States also found that the city failed to ensure that individuals with disabilities have an equal opportunity to purchase tickets for accessible seating. The ADA’s new construction provision requires that in newly constructed arenas, including Mid-America Center, wheelchair seating locations be an integral part of the seating plan and that sight lines for these seating locations be comparable to those offered to the general public.
Under the settlement agreement, Council Bluffs will provide wheelchair and companion seating locations in various event configurations at the center dispersed throughout the arena. The city will provide at least 56 wheelchair and companion seats, seats without arm rests or seats equipped with folding or removable arm rests. Council Bluffs will also revise its ticketing and pricing policies for events to afford individuals with disabilities the opportunity to purchase accessible seats in a manner comparable to that of other individuals.
“The Civil Rights Division is committed to ensuring that all newly constructed arenas are readily accessible to and usable by individuals with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend the city of Council Bluffs for cooperating with the Justice Department and taking swift remedial action to address the situation.”
“Protecting access for individuals with disabilities will continue to be a priority for this district,” said Acting U.S. Attorney Kevin E. VanderSchel of the Southern District of Iowa.
For more information about the ADA and today’s agreement, individuals may access the ADA web page at www.ada.gov or call the toll-free ADA information line at (800) 514-0301 or (800) 514-0383 (TTY).
Mid-America Center Settlement Agreement
Justice Department Proposes Legislation to Advance Anti-Corruption EffortsRead the Press Release
The Department of Justice has an unparalleled commitment to, and record of, fighting corruption through law enforcement action. These efforts are currently reflected through six anti-corruption programs aimed at public integrity prosecutions, bribery prosecutions, prosecutions of taxpayers who seek to conceal foreign accounts, money laundering prosecutions, our Kleptocracy Initiative and finally, our assistance to foreign counterparts to fight corruption.
In order to advance those efforts and provide additional tools to advance our anti-corruption work, the department will submit to Congress proposals for legislative amendments in two areas: first, regarding the illegal proceeds of transnational corruption; and second, regarding substantive corruption offenses. Details of those proposals are below.
PROPOSALS REGARDING THE ILLEGAL PROCEEDS OF TRANSNATIONAL CORRUPTION
1. EXPAND FOREIGN MONEY LAUNDERING PREDICATES TO INCLUDE ANY VIOLATION OF FOREIGN LAW THAT WOULD BE A MONEY LAUNDERING PREDICATE IF COMMITTED IN THE UNITED STATES.
Currently, U.S. prosecutors can charge money laundering cases and file asset recovery actions for specific acts of foreign corruption and these actions can capture, without specifically charging violations of foreign law relating to conduct occurring in another country, most of the foreign corruption predicate acts. The proposed amendment will allow prosecutors to directly pursue kleptocracy cases and prosecute for money laundering the use of proceeds from the full range of foreign corruption activities criminalized pursuant to the 2003 U.N. Convention Against Corruption. Adopting this amendment will complement the ability of U.S. prosecutors to charge money launderers and recover kleptocracy proceeds while also enhancing the stature of the United States in promoting an anti-corruption and anti-organized crime agenda worldwide.
2. ALLOW ADMINISTRATIVE SUBPOENAS FOR MONEY LAUNDERING INVESTIGATIONS.
Adopting the proposed amendment will enhance the ability of investigators to obtain records in money laundering investigations. In criminal money laundering investigations, such records are often obtained through the issuance of grand jury subpoenas, but law enforcement occasionally needs the speed and flexibility to subpoena administratively.
3. ENHANCE LAW ENFORCEMENT’S AUTHORITY TO ACCESS FOREIGN BANK OR BUSINESS RECORDS BY SERVING BRANCHES LOCATED IN THE UNITED STATES.
Current law permits U.S. law enforcement to obtain bank records located abroad by serving subpoenas on branches of the bank located in the United States. However, obtaining such records as legally admissible evidence can still result in protracted negotiation and litigation. This can ultimately result in law enforcement not being able to obtain those records. Adopting this amendment will enhance the ability of U.S. investigators to obtain overseas records as a form of legally admissible evidence.
4. CREATE A MECHANISM TO USE AND PROTECT CLASSIFIED INFORMATION IN CIVIL ASSET RECOVERY CASES.
Because kleptocracy investigations typically involve high-ranking foreign government officials, the cases may increasingly involve classified information. In criminal cases, the Classified Information Procedures Act (CIPA) provides a framework for utilizing and disclosing such information. Currently, if litigation over classified information arises in a civil kleptocracy case, there are no CIPA-type procedures in place. This amendment creates a framework for the use of classified information in kleptocracy-related civil asset recovery cases.
5. MAKE THE TIME PERIOD IN WHICH THE U.S. CAN RESTRAIN PROPERTY BASED ON A REQUEST FROM A FOREIGN COUNTRY, CURRENTLY 30 DAYS, PARALLEL TO THE DOMESTIC RESTRAINT PERIOD, WHICH IS 90 DAYS; AND EXTEND THE PROCEDURES TO AUTHENTICATE FOREIGN RECORDS OF REGULARLY CONDUCTED ACTIVITY IN CRIMINAL CASES TO CIVIL ASSET RECOVERY CASES.
Multilateral cooperation in kleptocracy cases is essential for sharing evidence and determining which authorities are best positioned to seize particular assets. There are several impediments, however, to effective parallel work. First, there is a discrepancy between the time limits imposed in domestic and foreign asset recovery cases. In a case initiated by U.S. authorities, the government has 90 days from the time of seizure to initiate a forfeiture proceeding – but the government has only 30 days from seizure based on a request from a foreign government. This amendment extends the 90 day period to requests from a foreign country. Second, in these cases U.S. prosecutors may seek to use foreign business records. In a criminal case, foreign business records are admissible if there is a certificate attesting that the document meets the business records test. This amendment extends the certificate process to civil asset recovery cases.
PROPOSALS REGARDING SUBSTANTIVE CORRUPTION OFFENSES
- AMEND 18 U.S.C. § 666 (THEFT OR BRIBERY CONCERNING PROGRAMS RECEIVING FEDERAL FUNDS) TO EXPRESSLY CRIMINALIZE THE CORRUPT OFFER OR ACCEPTANCE OF PAYMENTS TO “REWARD” OFFICIAL ACTION AS WELL AS THOSE INTENDED TO “INFLUENCE” OFFICIAL ACTION.
- AMEND 18 U.S.C. § 666 (THEFT OR BRIBERY CONCERNING PROGRAMS RECEIVING FEDERAL FUNDS) TO CORRECT A DRAFTING ERROR REGARDING BONA FIDE SALARY and TO LOWER THE DOLLAR THRESHOLD FROM $5,000 TO $1,000.
The two proposed amendments to 18 U.S.C. § 666 are intended to give full effect to the language that Congress initially enacted and clarify Congress’s intent. The first proposed amendment will resolve a conflict among Federal circuit courts on the issue of whether after-the-fact gratuities are covered by Section 666 and would also be consistent with the interpretations of six of eight Circuit Courts of Appeals which have addressed this issue, finding that the plain language of the statute criminalizes the corrupt offer or acceptance of rewards. The second proposed amendment will correct a drafting error regarding bona fide salary and lower the dollar threshold to address those cases where the dollar amount involved may be low but the threat to the integrity of a government function is high.
The department has transmitted these proposals to Congress and encourages review and approval in order to further advance the U.S. government’s anti-corruption tools and efforts.
Junedale Couple Pleads Guilty to Four Armed Bank Robberies and the Armed Robbery of A StoreRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Weaver, age 41, and Crystal Serfass, age 31, both of Junedale, Carbon County, Pennsylvania, pleaded guilty to the armed robberies of four banks and a store.
Weaver and Serfass pleaded guilty before Senior United States District Court Judge James M. Munley in Federal Court yesterday in Scranton. During the guilty plea hearing, each admitted to all charges contained in a five-count Criminal Information which alleges that they committed the following armed robberies:
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the robbery ofthe Jim Thorpe National Bank, Penn Forest Township, on September 17, 2013;
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the robbery of the National Penn Bank, Drums, on August 8, 2014;
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the robbery of Jim Thorpe Neighborhood Bank, Penn Forest Township, on November 18, 2014;
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the robbery of the ESSA Bank and Trust, Brodheadsville, on December 26, 2014;
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the robbery of the Dollar General, Nesquehoning, on November 16, 2014.
During each of the robberies, Weaver brandished a firearm to intimidate the employees. Serfass helped plan and acted as a driver for each of the crimes.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statutes is up to 120 years’ imprisonment. Both face a term of supervised release following imprisonment, and a fine if convicted. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendants, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hill City Man Sentenced to 57 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Hill City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on April 22, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ian Haverly, age 34, was sentenced to 57 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Haverly was indicted for Conspiracy to Distribute Methamphetamine by a federal grand jury on January 21, 2015. He pleaded guilty on November 6, 2015.
From September 2014 through January 2016, Haverly conspired with others to distribute, and distributed more than 500 grams of methamphetamine within South Dakota.
This case was investigated by Unified Narcotics Enforcement Team, United States Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorneys Ted L. McBride and Kathryn N. Rich prosecuted the case.
Haverly was immediately turned over to the custody of the U.S. Marshals Service.
Former Savannah Pastor Charged with Defrauding Church and Church MembersRead the Press Release
SAVANNAH, GA – Corey Megill Brown, 46, the former Senior Pastor of Second African Baptist Church in Savannah, has been indicted by a federal grand jury sitting in Savannah on 97 counts of mail fraud and wire fraud.
According to the allegations contained in the Indictment, between March 2005 and February 2014, Brown stole more than $250,000 from the Second African Baptist Church and from church members. Brown allegedly opened a separate bank account in the name of the Church without the Churches knowledge or permission. Brown would then allegedly intercept tithes and offerings from church members; deposit those monies into the account he fraudulently opened; transfer those monies to his own personal account; and then spend the stolen church donations on personal items, including items purchased from a men’s clothing store and from Victoria’s Secret.
Brown faces a maximum sentence of 20 years in prison, $250,000 fine and 3 years of supervised release on each of the 97 fraud charges. An indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by the FBI and the Savannah-Chatham Metropolitan Police Department. Assistant United States Attorneys Charlie Bourne and Scarlett Nokes are prosecuting the case on behalf of the United States. Any questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former New Jersey Attorney Sentenced to Two Years in Prison for Generating $1 Million in Profit from Phony LawsuitsRead the Press Release
CAMDEN, N.J. – A former attorney in the Haddonfield, New Jersey, office of a firm specializing in toxic tort litigation was sentenced today to 24 months in prison for falsifying defendants’ names in more than 100 asbestos suits filed in New York State courts in order to increase business and his standing in the firm, U.S. Attorney Paul J. Fishman announced.
Arobert C. Tonagbanua, 47, of Sicklerville, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of wire fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From 2008 through April 9, 2012, Tonagbanua worked at the Haddonfield office of a firm specializing in toxic tort litigation, workers’ compensation and immigration law, during which time he engaged in the wire fraud scheme.
Tonagbanua admitted he obtained copies of legitimately filed asbestos complaints and fraudulently altered them by deleting a named defendant and inserting the name of one or more of his firm’s clients. Unbeknownst to anyone else at the firm, he forwarded those fraudulently altered complaints by email, fax and otherwise to the firm’s clients, their representatives and insurance companies.
After notifying the firm’s clients of the suits, Tonagbanua – and others at the firm who were not involved in the scheme – undertook the representation of the clients, by attending depositions, answering discovery and even settling claims. It is estimated that Tonagbanua inserted his firm’s clients’ names into more than 100 lawsuits, resulting in the generation of more than $1 million in fraudulent fees, costs and settlements. Tonagbanua personally benefitted from the scheme through bonuses and increased compensation.
In addition to the prison term, Judge Hillman sentenced Tonagbanua to three years of supervised release. Tonagbanua must also pay remaining institution of $232,643.92.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge William F. Sweeney, Jr. in Philadelphia, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
Defense counsel: Michael Miller Esq., Turnersville, New Jersey
Former Millington Reserve Police Officer Pleads to Child Pornography Production, Transporting Minor for Sexual ActivityRead the Press Release
Memphis, TN – A former Millington reserve police officer has pleaded guilty to producing child pornography of three female minors and transporting a minor across state lines with intent to engage in unlawful sexual activity. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to information presented in court, on July 13, 2015, a Shelby County Sheriff’s Office Deputy responded to a call at the Millington residence of Rickie Friar, 67. The call was made by Friar’s housekeeper, who had stopped by the defendant’s residence to do some chores. Friar was out of town at the time. While there, a female minor who accompanied the housekeeper opened Friar’s iPad and showed the housekeeper sexually explicit images of children who regularly spent time with Friar.
A forensic examination of Friar’s iPad, along with other electronic devices seized during a search of his residence revealed additional videos and images of female minors engaged in sexually explicit conduct. Friar is visible in some of the images and videos, and his voice can be heard in others. The videos and images were produced between July 2013 and May 2015. Two of the victims were under 12 years old at the time; one was under the age of 18 years old.
Hours after his housekeeper notified law enforcement of what had been seen on Friar’s iPad, Friar was located in Arkansas, returning from a trip to Oklahoma. He had a female minor with him. Law enforcement agents found receipts, dated a day or two earlier, for sex toys and lubricant in Friar’s vehicle.
On Wednesday, May 4, 2016, Friar pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to:
• one count of knowingly transporting a minor under the age of 18 years old between the states of Tennessee and Oklahoma for the purpose of engaging in sexual activity; • two counts of attempting to and knowingly using a female minor under 12 years old to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct; • one count of attempting to and knowingly using a female minor under the age of 18 years old to engage in sexually explicit conduct.
When sentenced for the aforementioned charges, Friar faces a mandatory minimum sentence of 15 years imprisonment and a maximum of life. He also faces a fine of up to $1 million.
Friar is scheduled to be sentenced by Judge Fowlkes on Thursday, August 11, 2016.
This case is being investigated by the Memphis Child Exploitation Task Force. The collective is comprised of the Federal Bureau of Investigation; Homeland Security Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the U.S. Secret Service.
Assistant U.S. Attorney Debra Ireland is prosecuting this case on the government’s behalf.
Anyone who believes they may have information about this case or related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Former Executive Director of B.W. Cooper Resident Management Corporation IndictedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRELL J. WILLIAMS, of Houston, was charged today in a one-count Indictment for conspiracy to misapply, embezzle federal funds and to commit access device fraud.
According to the Indictment, from a time unknown, but prior to January 2009, and continuing through on or about May 19, 2011, WILLIAMS, embezzled in access of $5,000 from B.W. Cooper Resident Management Corporation (B.W. Cooper RMC). The Indictment continues to allege that WILLIAMS used the B.W. Cooper RMC credit card for personal expenses.
If convicted, WILLIAMS faces a maximum term of imprisonment of five years, a fine of up to $250,000, three years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of HUD-OIG in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Former D.C. Government Employee Pleads Guilty in Bribery Scheme Involving Towing CompanyRead the Press Release
WASHINGTON –Vernita M. Greenfield, a former customer services representative for the District of Columbia’s Department of Public Works, pled guilty today to a federal charge stemming from a scheme in which she accepted more than $35,000 in bribes in return for giving favorable treatment to a towing company.
The plea was announced by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Daniel W. Lucas, Inspector General for the District of Columbia.
Greenfield, 56, of Washington, D.C., was arrested by the FBI at her office on Nov. 23, 2015. She pled guilty to a charge of receipt of a bribe by a public official. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Greenfield faces a likely range of 24 to 30 months in prison and a fine of $10,000 to $95,000. She also is subject to a forfeiture money judgment in the amount of $35,300. The Honorable Senior Judge Paul L. Friedman scheduled sentencing for July 19, 2016.
“This government employee took advantage of her position for her own financial gain,” said U.S. Attorney Phillips. “The prosecution of this case reflects our commitment to rooting out corruption whenever it exists, as it is imperative for citizens to have faith in their government.”
“Ms. Greenfield admitted in federal court today to unfairly steering towing contracts in exchange for monetary bribes. Through her actions, she violated the public’s trust for her own personal gain,” said Assistant Director in Charge Abbate. “The FBI will continue to investigate and fight public corruption at all levels of government, including unfair, preferential treatment at the expense of honest American businesses.”
“I would like to recognize the efforts of the D.C. OIG Investigations Unit in conducting this investigation that has ultimately brought Ms. Greenfield to justice,” said Inspector General Lucas. “This investigation is just one example of how the D.C. OIG, along with our oversight partners, continue to combat corruption, fraud, waste, abuse, and mismanagement within the District, and aggressively pursue prosecution and/or administrative action when and where warranted.”
According to a statement of offense submitted in the plea proceedings, Greenfield worked in the Parking Enforcement Management Administration, a branch of the Department of Public Works. The branch is responsible for the removal of abandoned and dangerous vehicles, as well as ticketing, towing, booting, and impoundment of vehicles that are in violation of District of Columbia parking regulations. The branch also tows vehicles that pose a danger to the police or that impede the flow of traffic, particularly after vehicle accidents.
The branch uses a computer-aided dispatch system in which customer services representatives communicate with the Metropolitan Police Department (MPD) when police determine vehicles need to be towed. However, the Department of Public Works did not have enough tow trucks in its fleet to meet demand. The Department of Public Works subcontracted towing services from a list of approximately 22 authorized tow truck companies to assist with vehicle removals. Customer Services representatives were required to rotate assignments so that all towing services were fairly distributed in an equitable manner.
In her guilty plea, Greenfield admitted disregarding the rotational towing assignment system to send extra business to a towing company that was among the 22 on the list. According to the statement of offense, on or about July 1, 2011, Greenfield and the owner of the towing company came to an agreement that the owner would deposit between $200 and $500 per week into Greenfield’s bank account. In exchange, she agreed to divert towing assignments from other companies on the rotational list, thereby increasing his company’s weekly towing assignments and profits. She provided the towing company owner with her bank account information.
From July 2011 through May 2013, according to the statement of offense, the towing company’s owner provided Greenfield with more than 60 such payments, totaling $35,300. During this time period, Greenfield diverted over 450 towing assignments to the company to which it was not entitled, depriving other companies of this valuable business.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for those who investigated the case from the District of Columbia Office of the Inspector General, including Special Agent Ray Malengo. Finally, they acknowledged the efforts Assistant U.S. Attorneys Mervin A. Bourne, Jr. and Lionel André, who are prosecuting the case.
Former Army Contractor Sentenced for Making False Statement and Damaging Computer SystemsRead the Press Release
BOSTON – A Westfield resident who previously served in the Chinese People’s Liberation Army was sentenced today in U.S. District Court in Springfield for lying on his security clearance form and damaging U.S. Army computers.
Wei Chen, 62, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months of home confinement, five years of probation and a fine of $8,000. In December 2015, he pleaded guilty to making a false statement and damaging a U.S. Army computer.
Prior to immigrating to the United States and becoming a citizen in 2006, Chen served in the People’s Liberation Army. In 2010, Chen applied for a job as a computer system administrator for a Department of Defense (DOD) contractor, which required him to have a Secret-level security clearance. To obtain that clearance, Chen completed a questionnaire on which he certified that he understood that a false statement could be punished by imprisonment. Nonetheless, in response to the form’s question about whether he had ever served in a foreign country’s military, Chen falsely answered, “no.” Chen lied on this form because he believed that a truthful answer would reduce his chances of receiving the security clearance he needed to work as a DOD contractor. After submitting the form with false information, Chen received a secret level security clearance and was assigned to work for the U.S. Army as a system administrator at Camp Buehring in Kuwait.
On June 15 and 16, 2013, Chen connected one or more of his own thumb drives to computers at Camp Buehring that were connected to the Army’s unclassified network and the classified Secret-level network. Chen then made an effort to cover his tracks and hide his security violation. Specifically, he cleared network logs on the server that would have documented the connection of the thumb drive to the network server. Chen also copied a computer file, containing saved e-mail and documents, from his Secret-level workstation onto his thumb drive.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Daniel Andrews, Director of the Computer Crime Investigative Unit of the U.S. Army Criminal Investigation Command, made the announcement. The case was prosecuted by Assistant U.S. Attorneys Adam Bookbinder and B. Stephanie Siegmann of Ortiz’s Criminal Division.
Florida Man Sentenced to Prison for Illegal Diet Pill SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge John W. deGravelles sentenced JOHN WESLEY HOAG, age 52, of Ft. Lauderdale, Florida, to fifty (50) months in federal prison for his scheme to sell illegal and mislabelled diet pills to victims throughout the United States, including Louisiana. HOAG was ordered to serve a two year term of supervised release following his release from imprisonment. HOAG was also ordered to pay a fine of $7,500 and to forfeit all property traceable to the gross proceeds of the scheme, including but not limited to $679,116.33.
At the conclusion of the sentencing, the Court ordered HOAG to begin serving his sentence immediately and remanded HOAG to the custody of the United States Marshal.
On July 29, 2015, HOAG pled guilty to engaging in a conspiracy to distribute and possess with the intent to distribute sibutramine, in violation of Title 21, United States Code, Sections 846 and 2, and introducing misbranded drugs into interstate commerce, in violation of Title 21, United States Code, Sections 331(a) and 2. This conduct was part of a multi-state scheme to illegally distribute diet pills containing sibutramine, a Schedule IV controlled substance, which were falsely labeled and marketed as “all natural” dietary supplements. Sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed significantly increased risk of strokes and heart attacks. Since the removal of Meridia, no drug containing sibutramine has been approved for use in humans in the United States.
In a related case, on March 22, 2016, following a seven-day trial, a federal jury convicted DARLENE V. KRUEGER, age 54, of Destrehan, Louisiana, on three counts of distribution of sibutramine and three counts of introduction of misbranded drugs into interstate commerce. The sentencing date has not yet been set.
U.S. Attorney Green stated: “Today’s sentence sends a strong message to the community that my office and our law enforcement partners take the distribution of illegal drugs, in all forms, extremely seriously. Those who peddle illegal substances in this district for profit will face stiff penalties, regardless of whether they peddle those drugs on our street corners or over the internet. I want to express my sincere gratitude to the dedicated law enforcement agents and the prosecution team who investigated and prosecuted this complex case and dismantled this defendant’s drug distribution ring.”
“Consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Robert J. West, Special Agent-in-Charge, Miami Field Office, FDA Office of Criminal Investigations. “Our office will continue to defend the public’s health by ensuring that dietary supplements are accurately labeled, and do not contain dangerous undeclared active pharmaceutical ingredients.”
This matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Food and Drug Administration’s Office of Criminal Investigations, with the assistance from other FDA components; the Louisiana State Police; the Drug Enforcement Administration; the Slidell, Louisiana, Police Department; and the Ft. Lauderdale, Florida, Police Department. The matter was prosecuted by Assistant United States Attorneys Cam T. Le and Paul L. Pugliese.
Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA. For more information regarding dietary supplements and to report adverse events, please visit the FDA’s website at http://www.fda.gov/Food/DietarySupplements/.
Five Defendants Charged in White Plains Federal Court with Robbery and Murder in Swan LakeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James R. Farrell, the Sullivan County District Attorney, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), Michael A. Schiff, the Sullivan County Sheriff, Robert Mir, the Chief of the Village of Monticello Police Department, and Scott Kinne, the Chief of the Village of Liberty Police Department, announced the unsealing of a Superseding Indictment charging JEFFREY HERRING, TRAVIS DAVIS, JESSE HUMMEL, MARK MACK, and ANDREW REYNOLDS with the October 12, 2015, robbery and murder of Michael Northcote, 34, in Swan Lake, New York.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, these defendants undertook a violent home-invasion robbery, which resulted in the senseless murder of Michael Northcote. I want to thank all our federal, state and local law enforcement partners, especially Sullivan County District Attorney James Farrell for his extraordinary partnership with our office in this important case.”
Sullivan County District Attorney James R. Farrell stated: “This indictment reflects the tireless work of all of the police officers, detectives, investigators, special agents and prosecutors assigned to this case, and their dedication to bringing those allegedly responsible for the robbery and homicide of Michael Northcote to justice. It is the product of unparalleled cooperation among local, county, state and federal law enforcement agencies committed to holding accountable those who allegedly perpetrated these violent acts against Northcote, who was just 34 years old when he was killed during a home invasion. I would like to thank my colleagues in the United States Attorney's Office for their unwavering commitment to working together with my office and all of Sullivan County's law enforcement agencies. Our joint efforts make each of our agencies more effective than we would be if we worked independently of one another, which only enhances the safety of the Sullivan County community and strengthens our ability to do the right thing. This indictment is a step toward justice for Michael Northcote and his family, and I look forward to continued collaboration with our United States Attorney in this and other important cases.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “Violence isn’t limited to the big cities in this day and age. However, when someone is robbed and murdered in their own home in a small town, it sends shockwaves through the community. Our Safe Streets Task Forces work with our local law enforcement partners to keep this type of crime out of every neighborhood, big or small.”
New York State Police Superintendent Joseph A. D’Amico stated: “This indictment is the direct result of the continued collaboration between the State Police and our law enforcement partners on the local and federal level. Because of this partnership, five alleged dangerous criminals are now off the streets and will be fully prosecuted for their involvement in this case.”
Sullivan County Sheriff Michael A. Schiff stated: “Through the coordinated effort of all of the participating law enforcement agencies, we were able to have a multiplier effect on this case and were able to bring these defendants to justice. I would like to thank the U.S. Attorney for the Southern District of New York, Preet Bharara, for taking on this case and ensuring that justice is served.”
Village of Monticello Police Chief Robert Mir stated: “Cooperation between all levels of law enforcement and the community are required to solve crimes. This impressive collaboration between the Sullivan County Sheriff’s Office, New York State Police, F.B.I., Monticello Police, Liberty Police, Sullivan County District Attorney’s Office and the United States Attorney General’s Office, has brought to justice several individuals who allegedly senselessly and viciously robbed and murdered a man. The Monticello Police Department is committed to our sworn oath and will continue to dedicate resources and work with our local, state and federal partners, in order to deliver the best police services. Too many people in our community have been lost to drugs and violence, and too many family members and friends are grieving. I hope that these arrests will bring some comfort and closure to the Northcote family.”
Village of Liberty Police Chief Scott Kinne stated: “The Village of Liberty Police remains committed to sharing our resources and working with all levels of law enforcement. All crimes, especially a violent crime of this nature, affect the residents of our county as a whole. Interagency cooperation is key in a case like this and because of this cooperation several violent criminals have been taken off the streets of Sullivan County.”
As alleged in the Superseding Indictment unsealed today in White Plains federal court,[1] on October 12, 2015, the defendants carried out a home-invasion robbery of Michael Northcote, a marijuana dealer, at 177 Cohen & Cohen Road, Swan Lake, New York. In the course of the robbery, JEFFREY HERRING shot and killed Northcote.
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TRAVIS DAVIS and ANDREW REYNOLDS were taken into federal custody this morning. JEFFREY HERRING and MARK MACK were already in state custody. These four defendants were presented in White Plains federal court today before U.S. Magistrate Judge Judith C. McCarthy. JESSE HUMMEL was taken into federal custody last night in the District of Arizona and will be presented there today. The case is assigned to U.S. District Court Judge Kenneth M. Karas.
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI, the New York State Police, the Sullivan County Sheriff’s Department, the Village of Monticello Police Department, the Village of Liberty Police Department, the Town of Fallsburg Police Department, the United States Marshals Service, the New York City Police Department, and the Casa Grande, Arizona, Police Department. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its assistance in the case.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael Gerber and Lauren Schorr are in charge of the prosecutions.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Robbery conspiracy
JEFFREY HERRING,
TRAVIS DAVIS,
JESSE HUMMEL,
MARK MACK, and
ANDREW REYNOLDS
20 years in prison
Robbery
JEFFREY HERRING,
TRAVIS DAVIS,
JESSE HUMMEL,
MARK MACK, and
ANDREW REYNOLDS
20 years in prison
Murder
JEFFREY HERRING,
TRAVIS DAVIS,
JESSE HUMMEL,
MARK MACK, and
ANDREW REYNOLDS
Life in prison, or the death penalty
Mandatory minimum: 5 years in prison, to be imposed consecutively to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the descriptions of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Federal Jury Convicts Boise Doctor Charged with Controlled Substance DeliveryRead the Press Release
BOISE – A Boise jury today returned guilty verdicts against Michael Minas, 50, of Boise, Idaho, on charges that he unlawfully distributed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge set Minas’s sentencing for July 26, 2016, at the federal courthouse in Boise. The jury deliberated five days before reaching its verdict.
“Today’s verdict sends the clear message that where medical professionals behave more like drug dealers than doctors, they will be investigated and prosecuted, just like drug dealers,” said Olson. “The evidence in this case proved that Michael Minas prescribed highly addictive controlled substances, including oxycodone 30 mg and fentanyl, without obtaining proper medical histories, without performing proper physical examinations, and without proper, if any, medical documentation. His patients often became even more addicted to these powerful substances, and he repeatedly allowed early refills for those on extraordinarily high dosages.”
A federal grand jury initially indicted Minas in June 2014 charging him with 17 counts of distributing a controlled substance. The grand jury returned a superseding indictment in November 2014, charging Minas with 112 counts of distributing a controlled substance. The charges involved 12 patients, three of whom were undercover law enforcement officers. Later, in April 2015, the grand jury returned a second superseding indictment charging Minas with 146 counts of distributing a controlled substance. During the jury trial, after the government’s case in chief, the government dismissed seven of those counts. The jury returned a verdict of 80 counts guilty and 59 counts not guilty.
Evidence at trial showed that Minas knowingly and intentionally prescribed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose. The controlled substance Minas illegally distributed was primarily oxycodone 30 mg, but the jury also found Minas guilty of distributing fentanyl and hydromorphone. The jury heard evidence that Minas wrote prescriptions for extraordinary dosages, such as 240, 300, and even 420 oxycodone 30 mg. It also heard evidence that he often wrote prescriptions at intervals of two or three weeks, but wrote dosage instructions on the prescriptions indicating that it was a month’s supply. The jury also heard evidence that Minas wrote prescriptions for drugs that present a risk of negative interaction with oxycodone, such as benzodiazepines, sedatives, and muscle relaxers. Minas generally charged $100 cash for an appointment. Several former employees testified that the Minas’s practice transitioned over time from a standard family practice to one catering to patients claiming chronic pain and seeking opioid narcotics. Many of the Minas’s patients testified that the prescriptions issued by the defendant fed the patients’ addiction and resulted in substantial negative effects on their lives.
Minas operated the River Medical Family Practice in Eagle until his arrest in June of 2014. He had been released pending trial. During that time, Minas has been prohibited from writing prescriptions and from engaging in the practice of medicine except for the limited purpose of transferring patient records so that patients may see other providers. He also was required to relinquish any prescription pads in his possession.
Minas faces a maximum prison sentence of up to twenty years in prison, a maximum fine of $1,000,000.00 and at least three years of supervised release on each count of conviction.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Eight Named in Indictment that Outlines Scheme to Launder over $60 Million in Narcotics Proceeds through ‘Black Market Peso Exchange’Read the Press Release
SANTA ANA, California – A Mexican national who allegedly led an organization that assisted international narcotics traffickers launder more than $60 million in illicit drug proceeds has been taken into custody, as have three of his associates.
Gustavo Barba, 59, of Guadalajara, was arrested Tuesday evening as he attempted to enter the United States through the Otay Mesa Port of Entry in San Diego. Barba made an initial court appearance in San Diego federal court yesterday and will remain in custody there until a detention hearing scheduled for May 10.
Following Barba’s arrest, special agents with IRS Criminal Investigation and the Drug Enforcement Administration began arresting other defendants named in a 32-count money laundering indictment. A federal grand jury in Santa Ana returned the indictment under seal on July 22, 2015, and the indictment was unsealed today after three other defendants were taken into custody. Federal authorities are continuing to search for three fugitives.
Barba, who is also known as “Gus” and “Gustavo Barba Casillas,” is the lead defendant in the indictment that alleges a series of money laundering crimes, including conspiring to launder narcotics proceeds. Barba operates Barba International, Inc., which has offices in Guadalajara and the Los Angeles Jewelry District and is also charged as a defendant. The indictment describes how Barba’s organization allegedly used a “Black Market Peso Exchange” (BMPE) scheme to convert millions of dollars generated by drug sales in the United States into pesos that are delivered to drug trafficking organizations in Mexico.
The BMPE is one of the primary methods used by drug cartels to launder proceeds generated by drug sales in the United States and return the proceeds to where the cartels are located. The BMPE involves both illegal drug trafficking and legitimate businesses operating throughout the Americas, and the scheme solves problems faced by both groups. Drug cartels have massive amounts of U.S. currency – often in small denominations – that is difficult to transport in bulk or to deposit into financial institutions. At the same time, some legitimate businesses in Mexico want U.S. dollars in the United States to pay domestic suppliers and manufacturers so they can avoid incurring fees and taxes that would result if they wired the money to the United States through legitimate channels.
In a BMPE scheme, a “peso broker” or professional money launderer unites these entities to solve their problems. The peso broker receives narcotics proceeds in the United States and uses this money to pay United States businesses for goods ordered by Mexico-based businesses, which, in turn, pay the peso broker for the goods that will be shipped to Mexico. The peso broker then delivers the money, minus the service charge, to the narcotics traffickers in Mexico. Through a BMPE scheme, narcotics proceeds generated in the United States are moved to Mexico without having to physically cross the border or be sent through the banking system.
“Cutting off the flow of illicit profits to drug cartels is a key component in the battle against international drug traffickers,” said United States Attorney Eileen M. Decker. “As banks implement controls to shut down money laundering and as regulations make it more difficult for drug cartels to move money, these organizations seek out new ways to collect money from illegal drug sales. We are responding accordingly and will continue to target new methods of laundering drug proceeds.”
In addition to Barba, three other defendants have been taken into custody since yesterday. They are:
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Isaias Navarro, 37, of Fullerton, who operated Barba International’s office in Los Angeles, was arrested last night;
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Vidal Gutierrez Vargas, 58, of Whittier, who allegedly facilitated the money laundering operation, was arrested this morning; and
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Gervork Hagopian, 61, of the Windsor Square District of Los Angeles, the owner of a business in the jewelry district, who allegedly received money being laundering by the organization and facilitated the money laundering operation, was arrested this morning.
The three defendants arrested in the Los Angeles area are scheduled to be arraigned this afternoon in United States District Court in Santa Ana.
“This week’s arrests should send a clear message to the Mexican drug cartels that IRS Criminal Investigation and our partners will not tolerate the exploitation of U.S. financial institutions and businesses for the purpose of illicit financial transactions that fund the distribution of narcotics,” stated IRS Criminal Investigation’s acting Special Agent in Charge Aimee Schabilion. “In addition, this week’s actions should send a warning to American businesses that turn a blind eye to the crime they facilitate in an attempt to avoid bank currency reporting requirements, taxes and law enforcement scrutiny.”
Three other individual defendants named in the indictment are fugitives:
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Roberto Castaneda, also known as “the Engineer,” 77, of Guadalajara, who is Barba’s father in law and allegedly coordinated the delivery of narcotics proceeds and tracked the money being laundered by the organization;
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Jose Luis Guizar, 43, of East Palo Alto, a courier for the organization; and
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Leo Alfonso Alvarez, 35, of Edinburg, Texas, who also was a courier.
“This organization was laundering narcotics proceeds for multiple cartels under the guise of legitimate business,” said DEA Assistant Special Agent in Charge Anthony Chrysanthis. “Along with targeting the narcotics trafficking activities of criminal organizations polluting our society with deadly drugs, we will continue efforts with our law enforcement partners to attack the trade-based money laundering schemes these organizations engage in.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Each defendant is named in various counts in the indictment. The money laundering charges alleged in the indictment each carry statutory maximum sentences of either 20 years or 10 years in federal prison.
This case is the result of an ongoing investigation being conducted by IRS Criminal Investigation and the Drug Enforcement Administration.
The following agencies provided assistance during the investigation: the Torrance Police Department, the Santa Ana Police Department, the Placentia Police Department, the Irvine Police Department, the Orange Police Department, the Seal Beach Police Department, the Cypress Police Department, the Orange County District Attorney’s Office, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
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District of Columbia Man Indicted for Environmental CrimesRead the Press Release
James Powers, 59, of Washington, D.C., was indicted today for violating the Clean Air Act and for fraud stemming from a scheme to improperly remove asbestos from a historic building in the District of Columbia.
The seven-count indictment, returned by a grand jury in the U.S. District Court for the District of Columbia, was announced by Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Channing D. Phillips for the District of Columbia, and Jennifer Lynn, Acting Special Agent in Charge of the Environmental Protection Agency’s (EPA) criminal enforcement program in the Mid-Atlantic States. It charges Powers with violations of the Clean Air Act, wire fraud and first-degree fraud, which is a District of Columbia offense. The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the fraud scheme.
According to the indictment, asbestos, a once-popular fireproofing insulation, is now known to cause lung cancer, asbestosis and mesothelioma in people who inhale the fibers released when asbestos is disturbed. Congress has determined that there is no safe level of exposure to asbestos. The Clean Air Act requires that renovation in asbestos-containing properties follow specific protocols designed to safely remove asbestos from the property prior to any renovation or demolition activity, so as not to expose workers to the risk of deadly respiratory diseases.
“The Clean Air Act asbestos standards exist to protect the public, especially demolition and renovation workers, from harmful and potentially fatal exposure to asbestos,” said Assistant Attorney General Cruden. “The Justice Department and the EPA will fully investigate and prosecute those individuals who skirt the law and put workers in danger.”
“This businessman is accused of endangering his own work crew by not taking the proper steps to renovate a building containing asbestos,” said U.S. Attorney Phillips. “The indictment in this case reflects our determination to enforce the federal Clean Air Act and other laws that protect the health and safety of workers and citizens of the District of Columbia.”
“Asbestos must be removed and disposed of safely and legally,” said Acting Special Agent in Charge Lynn. “The federal Clean Air Act helps protect not only workers’ health and safety, but that of the entire community. Today’s charges demonstrate that EPA and its partner agencies are committed to enforcing important environmental and public health protection laws.”
The development project at issue involved renovating the historic Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples. The indictment alleges that, in March 2010, Powers formed a partnership with a local real estate development firm to purchase and renovate the property. According to the indictment, an asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board, and pipe insulation. After the survey, the partnership received bids from licensed professional asbestos abatement and renovation firms in the area. The indictment alleges that, despite receiving those bids and despite knowing that the building contained asbestos, Powers hired Larry Miller, 58, of Palmetto, Georgia, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building. Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property and emailed them a proposed contract, but the contract was with a corporation that, unbeknownst to his partners, was an alter-ego for Powers.
The indictment further alleges that Miller and his crew of workers conducted interior demolition at the Maples during September and October 2011, without any asbestos abatement having occurred. Even after an inspection by local environmental authorities revealed asbestos in the building, Powers had the workers continue demolition. Over the course of the project, the workers disturbed substantial quantities of asbestos, exposing themselves to a substantial risk of serious illness later in life.
Miller pleaded guilty on Nov. 19, 2015, to one count of negligent endangerment under the Clean Air Act. He is awaiting sentencing by the Honorable Amy Berman Jackson in the U.S. District Court for the District of Columbia. The charge carries a maximum sentence of not more than one year of imprisonment, a fine of up to $100,000, and a term of supervised release and/or probation.
If convicted, Powers faces up to five years in prison and a fine of up to $250,000 or twice the gross gain or loss to victims under the Clean Air Act, and a maximum of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss to victims under the wire fraud statute.
After the acts described in this Indictment, a licensed asbestos abatement firm conducted abatement at the Maples. The District of Columbia Department of the Environment subsequently conducted inspections and found the property to be free of all asbestos-containing materials.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, Assistant Attorney General Cruden, U.S. Attorney Phillips, and Acting Special Agent in Charge Lynn expressed appreciation for the work performed by Special Agents from EPA and the Department of Transportation. They also acknowledged the efforts of Trial Attorney Cassandra J. Barnum, Senior Trial Attorney Lana Pettus and Paralegal Specialist Cynthia Longmire of the Environmental Crimes Section and those working at the U.S. Attorney’s Office, including Paralegal Specialists Kaitlyn Krueger, John Lowell, and former Paralegal Specialist Krishawn Graham and Assistant U.S. Attorneys Jonathan Hooks and Zia Faruqui.
District of Columbia Man Indicted for Environmental CrimesRead the Press Release
WASHINGTON – James Powers, 59, of Washington, D.C., was indicted today for violating the Clean Air Act and for fraud stemming from a scheme to improperly remove asbestos from a historic building in the District of Columbia.
The seven-count indictment, returned by a grand jury in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Channing D. Phillips, Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division, and Jennifer Lynn, Acting Special Agent in Charge of the Environmental Protection Agency’s (EPA) criminal enforcement program in the Mid-Atlantic States. It charges Powers with violations of the Clean Air Act, wire fraud and first-degree fraud, which is a District of Columbia offense. The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the fraud scheme. An arraignment date has not yet been set.
According to the indictment, asbestos, a once-popular fireproofing insulation, is now known to cause lung cancer, asbestosis and mesothelioma in people who inhale the fibers released when asbestos is disturbed. Congress has determined that there is no safe level of exposure to asbestos. The Clean Air Act requires that renovation in asbestos-containing properties follow specific protocols designed to safely remove asbestos from the property prior to any renovation or demolition activity, so as not to expose workers to the risk of deadly respiratory diseases.
“This businessman is accused of endangering his own work crew by not taking the proper steps to renovate a building containing asbestos,” said U.S. Attorney Phillips. “The indictment in this case reflects our determination to enforce the federal Clean Air Act and other laws that protect the health and safety of workers and citizens in the District of Columbia.”
“The Clean Air Act asbestos standards exist to protect the public, especially demolition and renovation workers, from harmful and potentially fatal exposure to asbestos,” said Assistant Attorney General Cruden. “The Justice Department and the EPA will fully investigate and prosecute those individuals who skirt the law and put workers in danger.”
“Asbestos must be removed and disposed of safely and legally,” said Acting Special Agent in Charge Lynn. “The federal Clean Air Act helps protect not only workers’ health and safety, but that of the entire community. Today’s charges demonstrate that EPA and its partner agencies are committed to enforcing important environmental and public health protection laws.”
The development project at issue involved renovating the historic Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples. The indictment alleges that, in March 2010, Powers formed a partnership with a local real estate development firm to purchase and renovate the property. According to the indictment, an asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board, and pipe insulation. After the survey, the partnership received bids from licensed professional asbestos abatement and renovation firms in the area.
The indictment alleges that, despite receiving those bids and despite knowing that the building contained asbestos, Powers hired Larry Miller, 58, of Palmetto, Georgia, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building. Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property and emailed them a proposed contract, but the contract was with a corporation that, unbeknownst to his partners, was an alter-ego for Powers.
The indictment further alleges that Miller and his crew of workers conducted interior demolition at the Maples during September and October 2011, without any asbestos abatement having occurred. Even after an inspection by local environmental authorities revealed asbestos in the building, Powers had the workers continue demolition. Over the course of the project, the workers disturbed substantial quantities of asbestos, exposing themselves to a substantial risk of serious illness later in life.
Miller pleaded guilty on Nov. 19, 2015, to one count of negligent endangerment under the Clean Air Act. He is awaiting sentencing by the Honorable Amy Berman Jackson in the U.S. District Court for the District of Columbia. The charge carries a maximum sentence of not more than one year of imprisonment, a fine of up to $100,000, and a term of supervised release and/or probation.
If convicted, Powers faces up to five years in prison and a fine of up to $250,000 or twice the gross gain or loss to victims under the Clean Air Act, and a maximum of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss to victims under the wire fraud statute.
After the acts described in this indictment, a licensed asbestos abatement firm conducted abatement at the Maples. The District of Columbia Department of the Environment subsequently conducted inspections and found the property to be free of all asbestos-containing materials.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Phillips, Assistant Attorney General Cruden, and Acting Special Agent in Charge Lynn expressed appreciation for the work performed by Special Agents from EPA and the Department of Transportation. They also acknowledged the efforts of Trial Attorney Cassandra J. Barnum, Senior Trial Attorney Lana Pettus, and Paralegal Specialist Cynthia Longmire of the Environmental Crimes Section, and those working at the U.S. Attorney’s Office, including Paralegal Specialists Kaitlyn Krueger, John Lowell, and former Paralegal Specialist Krishawn Graham, and Assistant U.S. Attorneys Jonathan Hooks and Zia Faruqui.
Deputy Attorney General Sally Q. Yates Statement on the President’s Recent Clemency DecisionsRead the Press Release
Deputy Attorney General Sally Q. Yates released the following statement following President Obama’s clemency announcement today:
“As a result of the President’s actions today, 58 more individuals, 18 of whom had been sentenced to life in prison, have been granted a second chance to lead productive and law-abiding lives. Our clemency work is continuing as part of our broader efforts to effectuate criminal justice reform and ensure fairness and proportionality in sentencing. That includes supporting the bipartisan efforts in Congress to pass criminal justice reform legislation, working with the U.S. Sentencing Commission, and continuing the department’s successful Smart on Crime initiative.”
Crownpoint Man Sentenced to Ten Years for Federal Assault Conviction Arising from Ax AttackRead the Press Release
ALBUQUERQUE – Edwin C. Johnson, 36, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 120 months in prison followed by three years of supervised release for his assault conviction. The sentence was announced by U.S. Attorney Damon P. Martinez and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
“This case and others like it are important reminders on why we must continue to work together to address the disproportionately high rates of violent crimes against Native American women and children,” said U.S. Attorney Damon P. Martinez. “I commend the Navajo Nation Division of Public Safety for an outstanding investigation that made the defendant account for his criminal conduct and helped the victim and her family move forward with their course of healing.”
Director Jesse Delmar of the Navajo Nation Division of Public Safety said, “The Navajo Nation is very grateful to the U.S. Attorney’s Office and our law enforcement officers in Crownpoint for pursuing this case and bringing justice to the victim.”
Johnson was arrested on Dec. 9, 2015, on a criminal complaint charging him with assault with a dangerous weapon. According to the complaint, Johnson assaulted his girlfriend, a San Carlos Apache woman, with an ax on Dec. 7, 2015. The victim suffered a gash about four centimeters long and bloody discharge from both ears; she also experienced cranial pressure and swelling. Because the victim’s injuries were life threatening, she was flown by helicopter to the trauma hospital at the University of New Mexico Hospital in Albuquerque.
Johnson was subsequently indicted on Dec. 17, 2015, and charged with assault with a dangerous weapon, an ax, with intent to do bodily harm, assault resulting in serious bodily injury, and attempt to commit murder. The indictment alleged that Johnson committed the crime on Dec. 7, 2015, in Indian Country in McKinley County, N.M. On Jan. 25, 2016, Johnson pled guilty to all three charges.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney David Adams.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Covington Man Charged with Breaking into Gun Store, Stealing FirearmsRead the Press Release
ROANOKE, VIRGINIA – A Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Roanoke has indicted a Covington man on federal gun charges related to the theft of a number of guns from a local business, United States Attorney John P. Fishwick Jr. announced today.
The Grand Jury has charged David Christopher Martin, 40, of Covington, Va., with one count of being a previously convicted felon illegally in possession of a firearm, one count of transporting stolen firearms and one count of stealing firearms from a federally licensed firearms dealer.
According to the indictment returned today, on or about April 4, 2016, Martin broke into Mountain Top Hunting and Fishing, a federally licensed firearms dealer located in Covington, Virginia. After allegedly breaking into the business, Martin stole 24 firearms. Martin, who is a previously convicted felon and therefore prohibited from possessing a firearm, is accused of transporting the firearms in interstate commerce to South Carolina.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives offices in Roanoke, Virginia, Charleston, South Carolina and Jacksonville, Florida, the Covington Police Department, the Alleghany County Sheriff’s Office, the Bloomingdale, Georgia Police Department, Colleton County Sheriff’s Office in South Carolina and the Nassau County Florida Sheriff’s Office. United States Attorney John P. Fishwick Jr. and First Assistant United States Attorney Anthony P. Giorno will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Coventry Man Charged with Providing False Information on Federal Firearms FormRead the Press Release
PROVIDENCE, R.I. – Bradley Allen, 25, of Coventry, was arrested on Wednesday and ordered to home confinement with GPS monitoring following his initial appearance in U.S. District Court on a federal criminal complaint charging him with making false statements on a federal firearms form and to a federally registered firearms dealer. It is alleged that, while attempting to purchase a firearm, Allen denied that he was the subject of a domestic violence restraining order issued by the Family Court, when in fact he is.
Allen’s arrest and initial appearance are announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
According to court documents and information presented to the court, it is alleged that on February 13, 2016, Allen expressed an interest in purchasing a firearm from a licensed firearms dealer in West Warwick. Allen claimed on an ATF form, required to be completed by the purchaser of a firearm from a federally licensed firearms dealer, that he was not the subject of a protective order. A background investigation by law enforcement revealed that, according to court records, Allen is the subject of a domestic violence restraining order issued by the Rhode Island Family Court on December 1, 2014. The restraining order remains in effect for three years.
According to court records, on March 28, 2016, an ATF agent spoke by telephone with Allen regarding the information he allegedly provided on the ATF form. As a follow-up to that conversation, Allen was scheduled to appear in person at a local ATF office within the next two days to further discuss his alleged claim that he was not subject to a protective order. Allen failed to respond to the ATF office or contact the agent.
A federal criminal complaint charging Allen with one count of providing false statements to a firearms dealer and one count of making false statements on a federal firearms form was filed with the U.S. District Court on Monday. Allen was arrested on Wednesday by ATF agents, with the assistance of Coventry Police, and made an initial appearance before U.S. District Court Magistrate Judge Lincoln D. Almond.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah. The matter was investigated by ATF.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Connecticut Man Pleads Guilty to Six Bank Robberies in Three StatesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Sandy Lee Parks, age 60, of New Haven, Connecticut, pleaded guilty to six bank robberies in Pennsylvania and two other states.
According to United States Attorney Peter Smith, in July 2015, a grand jury in Scranton returned a two-count Indictment alleging that Parks committed the armed robbery of the Peoples Security Bank, Duryea, on July 3, 2015 and the armed robbery of the Wells Fargo Bank, Plymouth, on July 10, 2015.
A subsequent Criminal Information charged Parks with four additional bank robberies:
- the Savings Institute Bank & Trust, Westerly, Rhode Island, on February 20, 2015;
- the Coastway Community Bank, Warwick, Rhode Island, on June 16, 2015;
- the Citizen’s Bank, Stonington, Connecticut, on June 24, 2015; and
- the First Niagara, Upper Macungie Township, PA, on July 17, 2015.
Today, Parks appeared before Senior United States District Court Judge Edwin M. Kosik in Federal Court in Scranton, and pleaded guilty to all six robberies.
Parks has been in custody since July 17, 2015, the day officers from the Upper Macungie Police Department arrested and charged him with the robbery of the First Niagara Bank which occurred earlier that day.
The case was jointly investigated by federal, state and local law enforcement agencies: the Federal Bureau of Investigation, Pennsylvania State Police, the Duryea, Plymouth Township, Upper Macungie, Pittston, Wilkes-Barre, Wilkes-Barre Township, Plains Township, Jenkins Township, West Pittston, Edwardsville, Warwick, Rhode Island, Hanover, Kingston Police Departments, and the Luzerne County District Attorney’s Office. The prosecution was conducted and coordinated by Assistant United States Attorney John Gurganus.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. No date has been set for sentencing.
The maximum penalty under federal law for all the charges is 135 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Columbus Man Sentenced to 160 Months in Connection with Drug Trafficking RingRead the Press Release
COLUMBUS, Ohio – Ramiro Nonato Mendoza, 39, of Columbus, was sentenced in U.S. District Court to 160 months in prison for heroin and cocaine charges.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio State Highway Patrol Superintendent Paul Pride, Columbus Police Chief Kim Jacobs, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Donald J. Soranno, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Franklin County Sheriff Zach Scott, announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
Mendoza was one of 22 individuals charged by a superseding indictment in April 2015. According to court documents, the group operated a drug trafficking ring that involved numerous kilograms of heroin, cocaine, methamphetamine and marijuana. The case also involved the illegal employment of unauthorized aliens and the possession of numerous firearms.
The defendants in this case attempted to launder their drug proceeds by purchasing vehicles, including a Chevrolet Corvette, Cadillac Escalade, GMC Sierra and Acura TSX. More than $208,000 and 11 firearms were seized during federal search warrants in connection with this case.
Mendoza pleaded guilty on November 4, 2015 to one count of conspiracy to possess with the intent to distribute more than one kilogram of heroin and more than five kilograms of cocaine and one count of money laundering.
Acting U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys Timothy D. Prichard and David J. Bosley, who are representing the United States in this case.
Cleveland woman charged with filing false tax returns of friends and relatives, fraudulently claiming $131,000Read the Press Release
A Cleveland woman was named in a 21-count indictment, accused of filing false income tax returns on behalf of friends and relatives and fraudulently claiming more than $131,000, said Acting U.S. Attorney Carole Rendon and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
Monique Kirk, 39, held herself out as a tax preparer and offered to prepare returns from friends and relatives. Kirk used the personal information they provided to file false and fictitious returns, including false wage income and tax credit information, many for claimants who earned little or no money, according to the indictment.
Kirk requested some of the refunds be paid by direct deposit into bank accounts in the name of third parties that she controlled. Kirk converted his money to her own personal use, according to the indictment.
Kirk filed 21 false tax returns between 2012 and 2014 in which she claimed approximately $131,871 in tax refunds to which neither she nor the claimants were entitled, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the IRS-CI.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Pleads Guilty to Transporting Minors to California to Engage in Commercial Sex ActsRead the Press Release
SACRAMENTO, Calif. —Jarrail Lamont Smith, 23, of Cleveland, Ohio, pleaded guilty today to two counts of interstate transportation of a minor for the purpose of prostitution, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, in August 2015, Smith traveled from Cleveland to California with two minor victims with the expectation that they would engage in commercial sex acts with others for his benefit. Once they arrived in Northern California, he directed them to post advertisements for sexual services online. The investigation revealed multiple advertisements posted in the Bay area and Sacramento that featured photographs of both victims. After receiving a tip that one of the minors was being trafficked at a motel in Sacramento, the FBI initiated a sting operation to recover her. The operation was successful, and agents also found the other minor victim in the same hotel room. One of the minors had two black eyes when the FBI located her.
This case is the product of an investigation by the FBI’s Child Exploitation Task Force, which is made up of FBI agents and detectives from the Sacramento Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case.
Smith is scheduled to be sentenced by United States District Judge Troy L. Nunley on August 4, 2016. Smith faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Chicago-Based Financial Advisor Admits Steering Clients into Phony Investments and Pocketing the CashRead the Press Release
CHICAGO — A Chicago-based financial advisor pleaded guilty in federal court today to pocketing her clients’ money after counseling them to purchase phony securities.
DELORES J. MOSIER admitted in a plea agreement that she advised her clients to invest in bogus debt securities purportedly called “Chicago Anticipatory Notes.” Mosier falsely represented that the notes were issued by the City of Chicago and would earn annual interest of 7% or higher, according to the plea agreement. The securities did not exist, and Mosier pocketed the investment money, the plea agreement states. The government contends that Mosier fraudulently obtained more than $4.2 million from approximately nine victims.
Mosier, 72, of La Porte, Ind., pleaded guilty to one count of mail fraud. The conviction carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
U.S. District Judge Gary Feinerman scheduled a sentencing hearing for Aug. 12, 2016, at 9:30 a.m.
Mosier is a licensed financial broker and investor who operated Chicago-based D.J. Mosier and Associates Inc. According to the plea agreement, Mosier told her clients to make their investment checks payable to “Chicago Anticipatory Note,” knowing that she had opened a bank account in her name that was titled “CAN.” Mosier deposited the clients’ checks into the account and used the money for her own benefit, including purchasing household expenses and making mortgage payments on a property in La Porte, Ind., according to the plea agreement.
Mosier concealed the scheme by using some of the money to make purported interest payments to other victims who had also purchased the fictitious notes. She attempted to make the scam appear legitimate by providing the victims with fraudulent documents that she created, including fictitious disclosure statements, phony quarterly interest statements, and bogus balance statements that purported to reflect the clients’ growing investment proceeds.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Yusef Dale.
Cape Coral Man Sentenced to 20 Years in Prison for Production of Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Yaisel Rodriguez (25, Cape Coral) to 20 years in federal prison for producing child pornography. The Court also ordered him to forfeit his computer, tablet, a thumb drive, and two DVDs that were used to commit the offense. Rodriguez pleaded guilty on January 5, 2016.
According to court documents, on four separate occasions between April 2014 and January 2015, an FBI agent was able to download files depicting child pornography that Rodriguez had made available for sharing over the Internet.
On March 5, 2015, the FBI executed a search warrant at Rodriguez’s home. During the course of an interview with agents, he disclosed that he had been downloading and viewing child pornography since he was a teenager. He also told agents that he had recently ended a two-year relationship with a minor boy who lived in Ohio. Rodriguez said that he had met the boy in a chat room and the two later communicated via Skype and Facebook. Rodriguez also told the agents that he and the boy had exchanged naked photographs and videos.
Rodriguez further admitted that he had traveled to Ohio on at least three occasions to visit the boy, stayed in his home, and that one of his visits had lasted for a month. According to Rodriguez, in the summer of 2013, the boy and his mother traveled to Cape Coral and stayed in Rodriguez’s home for two weeks. Rodriguez said that he and the boy had shared a bedroom, and that he had taken sexually explicit images of and with the minor during this stay.
A subsequent digital forensic examination of the computer and media found in Rodriguez’s bedroom revealed that he had collected more than 120 videos depicting children engaged in sexually explicit conduct. In addition, more than 500 images and 20 videos depicting the minor engaged in sexually explicit conduct were recovered.
This case was investigated by the Federal Bureau of Investigation, FBI Child Exploitation Task Force, which includes the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
California Man Sentenced to over 16 Years in Prison for Producing Child PornographyRead the Press Release
A California man was sentenced today to 16 years and three months in prison for producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California, Special Agent in Charge Ryan Spradlin of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) San Francisco Field Division and Chief of Police Robert D. Landon of the Yuba City, California, Police Department.
Nathan Penner, 26, of Yuba City, California, pleaded guilty on Nov. 5, 2015, to one count of production of child pornography. U.S. District Judge Troy L. Nunley of the Eastern District of California sentenced Penner today and also ordered him to serve a lifetime term of supervised release.
In connection with his plea, Penner admitted to producing sexually explicit images and videos of a five-year old minor in September and October of 2012. Evidence revealed that Penner shared hundreds of files of child pornography located on his computer and distributed such material using an online chat messaging service.
This case was investigated by HSI and the Yuba City Police Department. Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Special Assistant U.S. Attorney Josh F. Sigal of the Eastern District of California prosecuted the case. CEOS’ High Technology Investigative Unit assisted with computer forensic analysis for the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Man Pleads Guilty in Biofuels Stock Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A southern California man has pleaded guilty to defrauding 157 persons of over $4 million from 2009 through 2011 by selling them worthless, unregistered stock in a number of purported biofuels development businesses, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Gilbert R. Rousseau, 57, of North Hollywood, Calif., pleaded guilty on May 4, 2016, to one count of conspiracy to commit mail fraud and wire fraud, and agreed to pay restitution of approximately $4.4 million. Rousseau is released on a personal recognizance bond pending sentencing, and faces up to 20 years in prison and a $250,000 fine.
According to the plea agreement, from January 2009 to February 2012, Rousseau and five conspirators defrauded the victims, many of whom were elderly, by selling them worthless, unregistered securities in the form of stock and stock purchase warrants in four Nevada limited liability companies. The companies, Go Green Home Stores, U.S. Biofuels, Vista Biofuels, and G-Tec Biofuels, were not established or operated to sell goods or services, but were actually fronts for the fraud scheme. Rousseau and the conspirators also created and used two other Nevada companies, G.G.H. Marketing and A.G.M. Marketing Group, to market the worthless securities. Rousseau and the conspirators set up and operated websites for the companies that contained material misrepresentations and false promises to make them look legitimate and designed to get the victims to part with their money. The victims were solicited throughout the United States by telephone from call rooms operated by conspirators in California and Las Vegas. Some of the companies used Las Vegas addresses to receive funds from the victims.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Daniel J. Cowhig.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Buffalo Men Arrested on Drug ChargesRead 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 Peter Stallworth, 40, and Dwayne Posey, 41, both of Buffalo, NY, have been charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, in October 2015, the Drug Enforcement Administration and Cheektowaga Police began an investigation after learning that Stallworth was allegedly distributing cocaine and methamphetamine in the Western New York area. The complaint further states that Stallworth’s source of supply was Posey.
During the course of the investigation, a confidential source (CS) made multiple purchases of methamphetamine from Stallworth which he received from Posey. The investigation also utilized court ordered wiretaps of the defendants’ cellular telephones.
Posey made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and is being held pending a detention hearing on May 6, 2016. Stallworth was arrested on state charges in Pennsylvania and will be brought to the Western District of New York for his initial appearance on the federal charge at a later date.
The complaint is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, new York Field Division and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Sentenced on Drug 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 Ivan Hernandez, 24, of Buffalo, NY, who was convicted of attempted possession with intent to distribute cocaine, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that law enforcement officers intercepted a package mailed from Puerto Rico to a residence on Hudson Street in Buffalo. The package contained a set of audio speakers, secreted inside, four packets of cocaine, each weighing approximately one-eighth of a kilogram. Hernandez attempted to retrieve the package as it was delivered and was arrested after a sensor alerted that the package was opened.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the U.S. Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge of the Boston Division.
Broker Admits Lying to Investigators and Obstructing La Jolla Bank Bribery InvestigationRead the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738 and Nicholas W. Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – May 5, 2016
SAN DIEGO – Jocelyn J. Brown, a loan broker for the now-defunct La Jolla Bank, pleaded guilty today to making false statements in relation to an investigation into bribes paid to the bank’s Vice President and Small Business Administration (“SBA”) lending department manager Amalia Martinez.
As part of her guilty plea, Brown admitted that she paid cash bribes in return for the banker’s assurance that the loans Brown referred would be approved and funded, and, therefore, that Brown’s commissions would be paid. Brown collected tens of thousands of dollars in referral fees from La Jolla Bank, and kicked back a portion to the bank manager, in cash, every time she was paid.
La Jolla Bank was a bank and financial services company that provided consumer, business, and construction loans. It opened its SBA lending department in 2005. In February 2010, the bank failed, and was taken over by the FDIC. At the time of its failure, the bank had outstanding debt of over $1 billion, which the FDIC absorbed—and ultimately passed on to the American taxpayers.
According to the plea agreement, Brown worked as an unofficial broker for La Jolla Bank, referring business loan customers to the bank’s SBA department. As part of this job, Brown helped her borrowers compile their loan application packages and submit them to the bank. In return for generating business, La Jolla Bank paid Brown a commission or referral fee, calculated as a percentage of each loan she referred.
Brown admitted that in 2006, Martinez asked her to kick back a portion of her commissions, in cash, after her clients’ loans were funded. In turn, Martinez would make sure that Brown’s clients’ loans were approved so that Brown could collect commission payments, regardless of the soundness of the loans and their benefit to the bank. In addition, the Martinez arranged to pay Brown a fraudulent $30,000 “commission” for a loan she in fact had no part in brokering. Brown went so far as to generate a fake invoice, pretending that she had earned the commission.
Brown admitted that she lied to law enforcement agents by concealing these bribe payments and hiding her relationship with Martinez. During the investigation, she told federal agents, falsely, that she never saw Martinez accept money in exchange for loans. And despite the fact that she and Martinez traded several phone calls and text messages and had a sit-down meeting in June 2014, Brown falsely reported to federal agents in September 2014 that she had not spoken to or seen Martinez since before she learned about the federal investigation. In her plea agreement, Brown acknowledged that her false statements significantly impeded the investigation of Martinez.
Since then, however, Martinez has pleaded guilty to accepting bribes, and admitted that she and other senior La Jolla Bank executives accepted hundreds of thousands of dollars in cash bribes and kickbacks from borrowers in return for issuing hundreds of millions of dollars in loans. The bank management issued the loans knowing that the borrowers were unqualified and unlikely to repay, and their mismanagement contributed to the bank’s billion-dollar collapse. Martinez admitted that she participated in a conspiracy with the bank’s senior executives to line their own pockets with bribe money.
Two other defendants have been charged in related cases. SBA borrower Annand Sluman pled guilty and admitted paying cash bribes to Martinez in return for several SBA loans he was issued between 2006 and 2008. By 2008, Sliuman was not financially qualified to borrow money, so he submitted fraudulent documents as part of his loan application that made his businesses appear to be financially sound. Sliuman’s assistant, Laura Ortuondo, assisted in creating the fraudulent loan documents. She pled guilty to making false statements to investigators about her involvement in the case; as part of her plea, she also admitted that she destroyed evidence and instructed her then-husband to testify falsely on her behalf to help cover up the crime.
Brown is scheduled to be sentenced on July 19, 2016 at 9 a.m. by U.S. District Judge Anthony J. Battaglia.
DEFENDANT Case Number 15CR2049-AJB
Jocelyn J. Brown, Age: 60 San Diego, CA
CHARGE
Making a false statement to a federal agent, in violation of 18 U.S.C. § 1001
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
RELATED DEFENDANTS AND CHARGES
Amalia Martinez, 15CR2471-AJB Age 52 San Diego, CA
Conspiracy to misapply bank funds, in violation of 18 U.S.C. § 371
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the pecuniary loss or gain, three years supervised release, $100 special assessment, restitution.
Annand Sliuman, 13CR3673-AJB Age 37 Spring Valley, CA
Bank bribery, in violation of 18 U.S.C. § 215
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or three times the value of the thing given, offered, or promised, five years’ supervised release, $100 special assessment, restitution.
Laura Ortuondo, 13CR3879-AJB Age 36 Cupertino, CA
Making a false statement to a federal agent, in violation of 18 U.S.C. § 1001
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
AGENCIES
Federal Bureau of Investigation
U.S. Small Business Administration – Office of Inspector General
Treasury Inspector General for Tax Administration
Federal Deposit Insurance Corporation – Office of Inspector General
Department of the Treasury – Office of Inspector General
Federal Housing Finance Agency – Office of Inspector General
Brighton Man Sentenced in Child Pornography CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Joseph Lamica, 26, of Brighton, NY, who was convicted of receipt of child pornography, was sentenced to 168 months in prison and 40 supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Lamica was a babysitter who advertised his services on Care.com and Craigslist.com. A family the defendant was working for discovered that Lamica was engaging in inappropriate behavior with the family’s nine-year-old child and terminated the babysitting contract. Thereafter, the defendant attempted to approach the child at school.
The Monroe County Sheriff’s Office obtained a search warrant and searched Lamica’s residence. Deputies found materials and notebooks with writings expressing the defendant’s interest in young children. Another search warrant was obtained for Lamica’s digital media hardware which contained images of child pornography, and a video of another minor the defendant babysat in 2014.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Allen Man Pleads Guilty to Domestic Assault by StrangulationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CHANCE ADRIAN GRIFFIN, age 21, of Allen, Oklahoma pled guilty to DOMESTIC ASSAULT BY STRANGULATION, in violation of Title 18, United States Code, Sections 1153, 1151 and 113(a)(8), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleged that on or about January 20, 2016, within the Eastern District of Oklahoma, in Indian Country, within the special maritime and territorial jurisdiction of the United States, the defendant, CHANCE ADRIAN GRIFFIN, an Indian, assaulted an intimate partner, by strangulation.
The charge is a result of an investigation by the Chickasaw Nation Lighthorse Police and the Bureau of Indian Affairs.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence investigation report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Special Assistant United States Attorney Shelly Harrison represented the United States.
Airgas Doral, Inc. Convicted of Hazmat Transportation and Permit ViolationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Marlies Gonzalez, Special Agent in Charge, Department of Transportation (DOT-OIG), Office of Inspector General, announced that Airgas Doral, Inc. (Airgas Doral) pled guilty today before United States District Judge Robert N. Scola, Jr., to a fourteen count criminal information, charging the corporation with willfully and recklessly violating the Hazardous Materials Transportation Act, Title 49, United States Code, Sections 5124(a), (c)-(d), based on its violations of hazardous materials regulations (HMR), and DOT Special Permit (SP) 11186. Under the terms of the plea agreement, Airgas Doral and the government agreed to recommend the imposition of a $7,000,000 fine ($500,000 per count of conviction) to be paid by Airgas Doral, and guaranteed by its corporate parent and 100% owner, Airgas, Inc. and that Airgas Doral be subject to a two year term of probation.
“The safe transport of hazardous materials is of paramount importance,” stated U.S. Attorney Wifredo Ferrer. “Working as partners, the U.S. Attorney’s Office and the Department of Transportation are committed to the prosecution of individuals and corporations that willfully and recklessly violate the hazardous materials laws, regulations, and permits which are in effect to protect the nation and our community from potential harm.”
"The guilty plea entered into today by Airgas Doral, resulting from the company’s violation of hazmat laws, regulations, and a special permit demonstrates that ensuring the safety of the Nation’s transportation systems remains a high priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT),” said Marlies T. Gonzalez, DOT-OIG regional Special Agent-in-Charge. “Working with our Pipeline and Hazardous Materials Safety Administration and prosecutorial colleagues, we will continue our efforts to enforce the hazardous materials laws against those who compromise the integrity of DOT’s hazmat safety program.”
According to the court record, Airgas Doral, a Delaware corporation, is a wholly owned subsidiary of Airgas, Inc. which is a leading U.S. distributor of industrial, medical and specialty gases and hard-goods, and is the successor in interest to the former Airgas South, Inc. (Airgas South), pertaining to the Miami fill plant business.
According to court documents, including the information and an agreed upon factual statement in support of the plea, between March 12, 2008 and May 14, 2008, the Miami fill plant then operated by Airgas South, made eight shipments of argon, cryogenic liquefied gas in intermodal portable tanks, or ISOs, covered by requirements of SP 11186 and the HMR, but failed to comply with HMR and SP 11186 requirements pertinent to transporting refrigerated liquefied gas, under pressure, in such containers, including: recording the applicability of SP 11186 on shipping papers; failing to provide carriers a copy of SP 11186; and failing to conduct physical inspections of ISOs, and to take and record required readings of the ISO’s pressure and ambient temperature, as well as required computations of travel time. Airgas South also failed to provide Miami fill plant hazmat employees and managers, required function specific training concerning their handling of the argon shipments in ISOs covered by SP 11186.
According to the court record, including the factual statement, the violations at the Miami fill plant were discovered when the means of containment of an ISO offered for transportation by Airgas South on May 14, 2008, failed, releasing argon gas in the hold of a vessel at Port Everglades. Three stevedores who entered the vessel’s hold were asphyxiated and died as a result of their exposure to argon gas in that confined space. Although other parties handled the ISO after it left the Miami fill plant, Airgas South was the shipper of record and offeror of the ISO for transportation, making it responsible for performing pre-transportation functions, including preparing shipping papers complying with the HMR and SP 11186 requirements, and certifying the hazmat was in proper condition for shipment. However, subsequent investigation revealed Miami fill plant hazmat employees and managers failed to perform required physical inspections of the ISOs, including a visual inspection of all emergency pressure relief devices for corrosion, distortion, or any damage or defect that could prevent normal operation, which resulted in Airgas South offering for transportation, an ISO which should not have been shipped, as it failed to meet the pre-transportation requirements of SP 11186 and the HMR necessary for legal shipment. Additionally, shipping papers accompanying the container failed to include a copy of SP 11186, as required, or to reference SP 11186, or include any notation of the tank’s pressure, ambient temperature, or computation of travel time. The investigation also revealed Airgas South hazmat employees and managers were unfamiliar with SP 11186 requirements, despite Airgas South, its corporate parent and related corporate group holding and operating under, in excess of 100 similar special permits, and having a training and compliance division intended to address training issues for all subsidiaries and members of the corporate group.
Judge Scola scheduled sentencing for May 26, 2016 at 9:00 a.m. At sentencing Airgas Doral faces a criminal fine of up to $7,000,000, or twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss caused to any victims of the offense, whichever is greater; restitution; and up to 5 years of organizational probation.
Mr. Ferrer commended the investigative efforts of DOT-OIG, and the technical and support assistance provided by the DOT-Pipeline and Hazardous Materials Safety Administration (PHMSA). The case is being prosecuted by Assistant U.S. Attorney Jose A. Bonau of the Economic and Environmental Crimes Section.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
ABT Member Sentenced to Life in Federal Prison on Methamphetamine Trafficking Conspiracy and Firearm ConvictionsRead the Press Release
DALLAS — Convicted Aryan Brotherhood of Texas member Casey Rose, 36, of Mesquite, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to life in federal prison, following his conviction at trial in September 2015 on conspiracy, drug trafficking and firearm charges, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the jury convicted Rose on one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession of methamphetamine with the intent to distribute and one count of being a felon in possession of a firearm. Judge Boyle sentenced him to life in federal prison on the conspiracy conviction, 240 months on the possession conviction and 120 months on the firearm conviction, all to run concurrently.
Rose has been in custody since his arrest in mid-November 2014 following a law enforcement operation led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID). During that operation, 37 individuals were arrested and charged with similar federal offenses, stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to October 2014. Of those arrested, each defendant pleaded guilty, except Rose, who elected to go to trial. One defendant remains a fugitive.
In November 2015, during the second phase of that investigation, an additional 54 individuals, members and associates of various white supremacist organizations, were charged with federal offenses stemming from their roles in the same drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to November 2015. Most of these defendants have pleaded guilty and are awaiting sentencing.
Rose was a member of the Aryan Brotherhood of Texas (ABT). Many of the defendants were members of, or associated with white supremacist organizations, such as the ABT, the “Aryan Circle,” the “Irish Mob,” and the “Dirty White Boys.” Despite their differences, they would often collaborate for purposes of drug distribution or other illegal ventures.
The government presented evidence at trial that Rose purchased and distributed methamphetamine throughout the Dallas metroplex and used violence in obtaining large quantities of methamphetamine. The trial also included expert testimony regarding the formation, history, and mission of the ABT.
The DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit led the investigation. Officer and agents from the Garland Police Department Neighborhood Police Officer Unit, the Mesquite and Rockwall Police Departments and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) also provided assistance in the investigation.
Assistant U.S. Attorney P. J. Meitl is in charge of prosecuting the nearly 100 defendants charged in these two cases.
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4 May 2016
Webb City Man Indicted for Transporting a Minor for Illicit SexRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Webb City, Mo., man was indicted by a federal grand jury today for transporting a minor across state lines for illicit sex.
Ricky Raymond Ball, 49, of Webb City, was charged in an indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Ball transported a minor under the age of 17, identified as “Jane Doe,” across state lines for the purpose of engaging in illicit sexual activity.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Southwest Missouri Cyber Crime Task Force, the Webb City, Mo., Police Department and the Kansas Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."