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14 April 2016
Rapides Parish man pleads guilty to sending obscene images to a minorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that an Alexandria man pleaded guilty Tuesday to attempting to send obscene material to a minor.
William Ware, 38, of Alexandria, La., pleaded guilty before U.S. District Judge Dee D. Drell to one count of attempting to transfer obscene material to a minor. According to the guilty plea, on December 9, 2014, Ware contacted a 13-year-old minor female using social media over the internet. He then sent the minor two sexually explicit videos using an internet chat service. The minor was in fact an undercover agent, and Ware was later arrested.
Ware faces up to 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date of July 20, 2016 was set.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Ramapo Town Supervisor and Former Executive Director of Ramapo Local Development Corporation Charged with Securities Fraud in Connection with Ramapo Municipal BondsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Andrew J. Ceresney, Director of the Securities and Exchange Commission’s Division of Enforcement (“SEC”), and Thomas Zugibe, the Rockland County District Attorney, announced the unsealing of an indictment charging CHRISTOPHER ST. LAWRENCE, the elected Supervisor of the Town of Ramapo, New York (the “Town”), and N. AARON TROODLER, the former Executive Director of the Ramapo Local Development Corporation (“RLDC”), with 22 counts of securities fraud, wire fraud, and conspiracy in connection with municipal bonds issued by the Town and by the RLDC.
U.S. Attorney Preet Bharara said: “Today, this Office has brought what is believed to be the first ever municipal bond-related criminal securities fraud charges against public officials. As alleged, Christopher St. Lawrence and N. Aaron Troodler kicked truth and transparency to the curb, selling over $150 million of municipal bonds on fabricated financials. In doing so, they defrauded both the citizens of Ramapo and thousands of municipal bond investors around the country. The $3.7 trillion municipal bond market is no place for fraud and manipulation; there should be no tolerance for it. Whether you are a publicly listed company or a municipality, you are not allowed to cook the books, plain and simple. And whether you are state legislator responsible for enacting laws or a municipal executive responsible for a town’s finances, you must be accountable. You must be accountable to the public, and you must be accountable to the truth. Thanks to the outstanding efforts of our partners at the FBI, Rockland County District Attorney’s Office and the SEC, we will now seek to hold St. Lawrence and Troodler accountable for their alleged fraud.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “St. Lawrence and Troodler allegedly engaged in a complex securities fraud scheme so they could hide public funds being used for the construction of a stadium and other projects. The illegal activity allegedly continued even after they became aware the town and the corporation tasked with development initiatives were subjects of a federal investigation. Public corruption wastes billions in tax dollars every year. Investigating these types of crimes remains among the FBI's top priorities.”
Director Andrew J. Ceresney said: “Retail investors account for more than 75 percent of the $3.7 trillion municipal bond market, which is critical for our nation’s infrastructure and development. We won’t stand for public officials and employees who resort to alleged accounting trickery to mislead investors who are investing in their financial futures as well as the future betterment of our communities.”
Rockland County District Attorney Thomas Zugibe said: “As the Town of Ramapo Supervisor, Christopher St. Lawrence took an oath to honestly and faithfully serve his residents. But instead, St. Lawrence is accused of shamelessly exploiting his position for a personal agenda. Public officials, whether elected or appointed, are more than mere employees. They are servants of the public interest, and we must insist on absolute honesty, integrity and trustworthiness from every one. The charges announced today are the direct result of the good work of our Public Corruption Task Force, a true collaboration between my office, the U.S. Attorney and the FBI.”
According to the allegations contained in the Indictment[1]:
As of August 2015, the Town had more than $128 million in outstanding bonds that had been issued for various municipal purposes, while the RLDC, a corporation created and owned by the Town under state law, had issued $25 million in bonds to pay for the construction of Provident Bank Park, a minor league baseball stadium in Ramapo.
While the fraud predated the construction of the stadium, the Town’s financial problems were caused largely by the $58 million total cost of the stadium. The Town paid more than half of that cost, despite the rejection of the Town’s guarantee of bonds to pay for construction of the stadium in a Town-wide referendum in 2010 and ST. LAWRENCE’s public statements that no public money would be used to pay for the stadium.
The Indictment charges that ST. LAWRENCE and TROODLER lied to investors in the Town’s and RLDC’s bonds in order to conceal the deteriorating state of the Town’s finances and the inability of the RLDC to make scheduled payments of principal and interest to its bondholders from its own money. The defendants lied to investors primarily by making up false assets in the Town’s General Fund.
The General Fund is the Town’s primary operating fund. The accumulated difference over time between how much money the Town receives in taxes and fees and how much it spends in a year is the General Fund’s balance. The General Fund balance is a cushion that can be spent during difficult financial times. The primary indicators of a town’s financial health are 1) the size of its general fund balance relative to the amount of the fund’s revenue and 2) trends in the size of a town’s general fund balance over time.
When the RLDC issued $25 million in bonds to build the stadium building itself in April 2011, ST. LAWRENCE and TROODLER inflated the size of the Town’s 2010 General Fund balance by including a false $3.6 million receivable in the General Fund. The Town’s financial condition was important to investors in the RLDC’s bonds because the Town guaranteed the payments of principal and interest on the bonds. Without that fake asset, the General Fund’s balance would have been negative for 2010.
In addition, ST. LAWRENCE inflated the General Fund with another fake receivable for $3.08 million from 2010 through 2015. This receivable first went on the Town’s books when the RLDC agreed to buy property known as The Hamlets from the Town for $3.08 million. That sale never closed because the land was discovered to be a habitat for rattlesnakes. Rather than take the receivable off the Town’s books – and reduce the size of the General Fund balance by $3.08 million, resulting in a negative balance – ST. LAWRENCE claimed the receivable had to do with the already-completed RLDC purchase from the Town of a different property. To keep it on the books, ST. LAWRENCE then caused the Town Attorney to tell the Town’s auditors repeatedly over a period of years that the receivable would be paid back within a year, which was required if the receivable was going to stay in the General Fund. Without this fictitious receivable, the Town’s General Fund would have had a negative balance for years.
In May 2013, the FBI searched Ramapo Town Hall in connection with this investigation. Less than 10 days later, ST. LAWRENCE inflated another receivable in the General Fund – this time for money from the Federal Emergency Management Agency (“FEMA”) to reimburse the Town for expenses from Hurricanes Irene and Sandy. ST. LAWRENCE claimed that the Town was going to receive $3.145 million from FEMA when the Town had yet to submit those claims to FEMA. Without ST. LAWRENCE’s inflation of this receivable, the projected General Fund balance for 2012 would have been negative when the Town sold bonds in May 2013.
The Indictment alleges that ST. LAWRENCE also inflated the General Fund balance by making more than $12 million in transfers from the Town’s Ambulance Fund to the General Fund from 2009 to 2014. The group of properties in Ramapo that pays into the Ambulance Fund is different from the group of properties that pays into the General Fund. Under state law, transfers between funds with different tax bases can only be loans. To justify the transfers, ST. LAWRENCE told the auditors, members of the Town Board, and others that the two funds had the same tax base.
Finally, the Indictment alleges that ST. LAWRENCE and TROODLER told investors in the Town’s and RLDC’s bonds that the RLDC was making the payments on its bonds from its operating revenue, meaning money it was making from its ordinary business of running the baseball stadium and selling condominiums at a development it had built. That was important to investors because it led them to believe that the Town would not have to pay off the RLDC’s $25 million bonds. It also made the RLDC’s bonds look less risky. The RLDC actually made those payments primarily from money it borrowed from the bank or money it got from the Town.
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ST. LAWRENCE, 65, of Wesley Hills, New York, and TROODLER, 42, of Bala Cynwyd, Pennsylvania, are each charged with eight counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; 13 counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara thanked the SEC for their investigative work. He also praised the FBI and the investigators from the United States Attorney's Office for the Southern District of New York. He also thanked the Rockland County District Attorney’s Office for its assistance in the investigation. This investigation was conducted by the Office with the Public Corruption Task Force set up between the FBI and the Rockland County District Attorney’s Office.
In a related case, the Securities & Exchange Commission brought a civil action today against ST. LAWRENCE, TROODLER, and others in U.S. District Court in White Plains.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon and Andrew Dember are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Philadelphia Woman Charged for Role in Bank Fraud SchemeRead the Press Release
PHILADELPHIA – Charlene Leak, 46, of Philadelphia, Pennsylvania, was charged today by indictment with conspiracy and bank fraud, announced United States Attorney Zane David Memeger. The indictment alleges that in 2009, Leak worked as a check runner in a $1.2 million check fraud conspiracy run by Phillip Eric Weems, who has since pleaded guilty for his role in leading the conspiracy, and who was sentenced in February 2014 by U.S. District Judge Juan R. Sanchez to 121 months’ incarceration.
According to the indictment, in her role assisting Weems in running bad checks, Leak, along with other co-conspirators, opened personal and corporate bank accounts at various financial institutions, incorporated sham corporations to further the conspiracy, and caused counterfeit and forged securities to be created and drawn on the accounts of the sham corporations. Leak and her co-conspirators then used the counterfeit and forged securities to pay for goods and property knowing that the various bank accounts had no or insufficient funds in the accounts. According to the indictment, Leak was responsible for an intended loss of $317,890.61.
If convicted of all charges, the defendant faces a statutory maximum sentence of 35 years in prison, up to $500,000 in fines, three years of supervised release, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys James A. Petkun and Ashley K. Lunkenheimer.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Perpetrators of Multiple Armed Robberies at Atlanta Wal-Mart Stores and a Citgo Food Mart Have Been ArraignedRead the Press Release
ATLANTA - Kesia Quinette Jackson, Deanthony L. Foster, and Makisha Renee Sanders have been arraigned on charges of conspiracy to commit armed robbery, armed robber, and use of a firearm during a crime of violence arising from multiple armed robberies of Wal-Mart stores, and a Citgo food mart that took place between May and October, 2015.
“Armed robberies are dangerous events that traumatize the victims and sow fears throughout the community, and these effects are magnified when the robbers victimize multiple locations over time,” said U. S. Attorney John Horn. “We hope the arrests and indictments in this case will restore the security felt by the employees and customers of these stores, as well as the surrounding neighborhoods.”
“The allegations contained in these indictments clearly illustrated the need to prioritize this investigation and to have those responsible identified and apprehended. With the federal indictments and this morning’s arrests, that was accomplished. Numerous jurisdictions were impacted by these multiple commercial armed robberies creating certain challenges for investigators. Those challenges were, however, overcome as a direct result of the hard work and determination of the many officers and agents representing numerous metro Atlanta area law enforcement agencies working together with the FBI’s Atlanta Metro Major Offender (AMMO) Task Force,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: The defendants allegedly targeted Wal-Mart stores and a Citgo Food Mart in different areas of the Atlanta, Georgia metropolitan area for the purpose of robbing the employees of cash at gunpoint. Jackson and Sanders acted as scouts or lookouts prior to the robberies by entering the stores and posing as customers in order to determine when employees were removing cash from the self-checkout registers. They would then contact the defendant Foster. The three defendants used cellular telephones to maintain communication with each other prior to and during the commission of the armed robberies. Foster would then enter the stores wearing a surgical mask and using a firearm to rob the employees of cash. In the last robbery, he discharged the firearm into the floor near the employees.
Kesia Quinette Jackson, 44, Deanthony L. Foster, 27, and Makisha Renee Sanders, 42, all of Atlanta, Georgia, were arraigned before United States Magistrate Judge Janet F. King. All three were indicted by a federal grand jury on April 13, 2016.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI.
AUSAs Katherine M. Hoffer and Jessica Morris are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Old Saybrook Resident Arrested on Federal Tax ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DAVID ADAMS, 55, of Old Saybrook, was arrested today on a federal criminal complaint that charges him with one count of filing a false tax return.
ADAMS appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was released on a $500,000 bond secured by real property.
The complaint alleges that, on June 7, 2011, ADAMS sold his partnership interest in an online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale. Although ADAMS told his accountant that he sold his partnership interest in 2011, ADAMS did not tell his accountant that he received $4,708,419.20. Accordingly, ADAMS’s 2011 tax return did not include the $4,708,419.20 in income ADAMS received as a result of the sale and instead showed ADAMS’ total income and tax liability for 2011 as substantially less than what should have been reported. The 2011 tax return also reflected that ADAMS had paid $220,000 in estimated tax payments during the year when, in fact, he paid only $100,000 in estimated tax payments for 2011.
The complaint alleges that ADAMS also made false statements on his tax returns for years 2002, 2009 and 2012. For example, on his 2012 tax return, ADAMS failed to report more than $1.3 million in cash he received into his personal bank account in that year. The complaint further alleges that ADAMS has an extensive history with IRS collections.
According to statements made in court, it is alleged that ADAMS owes approximately $4.7 million in back taxes, interest and penalties.
The charge of filing a false tax return carries a maximum term of imprisonment of three years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Ohio Man Sentenced for Unlawfully Possessing Firearm at St. JudeRead the Press Release
Memphis, TN – An Ohio man who unlawfully possessed a firearm at St. Jude Children’s Research Hospital has been sentenced to federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Aaron Cauley, 30, of Montgomery County, Ohio, threatened the mother of his child with a firearm inside of St. Jude.
In March 2015, Memphis police officers responded to an aggravated assault call at St. Jude. The defendant had allegedly threatened the life of his child’s mother while they were inside of a patient room.
Cauley and his child’s mother were engaged in a heated argument when he pointed a pistol and threatened to kill her. Afraid for her life, the victim alerted St. Jude security of the occurrence. Security subsequently notified Memphis police officers, who arrived on the scene and detained Cauley. Officers also located a knife in the defendant’s pants pocket while searching him.
Security discovered a green backpack hidden under some children’s clothing in the patient room where the alleged incident occurred. A Sig Sauer 9mm pistol and multiple rounds of ammunition were found in the backpack.
In December 2015, Cauley pleaded guilty before U.S. District Judge Samuel H. Mays Jr. to one count of felony possession of a firearm.
On Thursday, April 14, 2016, Judge Mays sentenced Cauley to 100 months in federal prison.
This case was investigated by the Memphis Police Department on behalf of the Project Safe Neighborhoods (PSN) Task Force. The PSN Task Force is a collective comprised of personnel from the Memphis Police Department; Shelby County Sheriff’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.
Assistant U.S. Attorney Dean DeCandia prosecuted this case on the government’s behalf.
New York and Hazleton Men Charged with Cocaine ConspiracyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Luis Santos, age 49, of New York, New York and Rafael Lora, age 41, of Hazleton, Pennsylvania, were indicted by a federal grand jury in Scranton on April 12, 2016, with possession with intent to distribute cocaine, and with conspiracy.
According to United States Attorney Peter J. Smith, Santos and Lora were arrested on March 30, 2015 as the result of an investigation by Homeland Security Investigations, with assistance from the U.S. Postal Inspection Service, Customs and Border Patrol, Pennsylvania State Police and the Hazleton Police Department. Prosecution is assigned to Assistant U.S. Attorney Phillip J. Caraballo.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
The maximum penalty for each offense under federal law is 20 years’ 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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New Bedford Woman Sentenced for Stealing over $60,000 in Social Security BenefitsRead the Press Release
BOSTON – Lynn Medeiros, 49, of New Bedford, was sentenced today in U.S. District Court in Boston for stealing over $60,000 in Social Security benefits by continuing to collect her disabled son’s benefits after he left her custody.
Medeiros was sentenced by U. S. District Court Judge Nathaniel M. Gorton to four months in prison, one year of supervised release, including six months of home confinement, and ordered to pay $63,798 in restitution to the Social Security Administration.
In April 2005, Medeiros applied for Social Security Supplemental Security Income (SSI) disability benefits on behalf of her son. By signing the application, Medeiros acknowledged her responsibility to notify Social Security if her son left her custody or otherwise changed his living arrangements. Her son was approved for benefits, and his monthly Social Security checks were issued to Medeiros as his representative payee.
Beginning in August 2007, Medeiros’s son ceased to reside with her. However, each year from 2008 to 2013, Medeiros submitted forms to Social Security falsely stating that her son was still living with her and that she was spending the Social Security money on his behalf. In this manner, from August 2007 through August 2014, Medeiros converted $63,798 in benefits to her own use.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Nampa Man Sentenced for Possession of Meth for Distribution and Unlawful Possession of a FirearmRead the Press Release
BOISE – Indalecio Cuevas-Figueroa, 34, of Nampa, Idaho, was sentenced today in United States District Court to 78 months in prison for possession of methamphetamine with the intent to distribute and unlawful possession of a firearm by a person unlawfully in the United States, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Cuevas-Figueroa to serve five years of supervised release following his release from prison. Cuevas-Figeroa pleaded guilty to the charges on January 5, 2016.
According to court documents, in 2013 and 2014, Nampa Police detectives made several “controlled buys” of methamphetamine from Cuevas-Figeroa. During one of the controlled buys, Cuevas-Figeroa also sold a Browning 9mm semi-automatic pistol. Cuevas-Figeroa is prohibited from possessing a firearm because he was a Mexican national residing unlawfully in the United States. On October 15, 2014, Cuevas-Figeroa sold approximately 108.3 grams methamphetamine. Resulting lab tests showed that this was 96.8% pure. The total amount of actual methamphetamine attributable to Cuevas-Figeroa is approximately 131 grams.
The case was investigated by the City County Narcotics Unit and the Drug Enforcement Administration.
Mexico Citizen Indicted for Illegal Re–Entry into the United States After Having Been Previously DeportedRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jenaro Moctezuma-Galicia, age 30, a native of Mexico, was indicted by a federal grand jury in Scranton on April 12, 2016, for allegedly re-entering the United States after having been previously deported.
The investigation was conducted by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara
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 guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty which can be imposed under federal law is 2 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican Native Pleads Guilty and Is Sentenced for Illegal Re-EntryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Maurilio Bautista-Feria, 48, most recently of Olean, NY, was convicted of reentry of a removed alien subsequent to a conviction for an aggravated felony and sentenced to 12 months in prison by Senior U.S. District Judge William J. Skretny.Special Assistant U.S. Attorney Brian J. Counihan, who handled the case, stated that the defendant was convicted in 2009 of harboring illegal aliens. Subsequent to that conviction, Feria was removed from the United States to Mexico for having illegally entered the United States and committing the felony. In 2013, U.S. Immigration and Customs Enforcement found the defendant working at a Mexican restaurant in Olean.
The sentencing is the result of an investigation by the Violent Criminal Alien Section of Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Special Agent in Charge Michael Phillips.
Melville man sentenced to 10 years in prison for possessing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Melville man was sentenced Tuesday to 120 months in prison for storing child pornography on electronic devices.
Russell Guillory, 34, of Melville, La., was sentenced by U.S. District Judge Dee D. Drell on one count of possession of child pornography. He was also sentenced to 15 years of supervised release and must register as a sex offender. According to the October 9, 2015 guilty plea, Guillory’s home was searched in January of 2015. The investigation uncovered four electronic devices Guillory owned containing 75 videos and six images of child pornography. The Court noted that the child pornography involved extremely young children and babies and was some of the most disturbing of which he was aware.
“The exploitation of children through pornography is a horrible and reprehensible crime,” Finley stated. “We take our responsibility to protect children seriously as this prosecution and sentencing once again demonstrates.”
Homeland Security Investigations and the Louisiana State Police investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and John Luke Walker are prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
The U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application (www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Mechanicsburg Resident Federally Charged with Distributing Images Depicting the Sexual Abuse of ChildrenRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Mechanicsburg man was indicted by a federal grand jury in Harrisburg on April 13, 2016 for the distribution and possession of images depicting the sexual exploitation of minors.
According to United States Attorney Peter Smith, John Alexander Driscoll, age 60, allegedly provided images depicting the sexual exploitation of children to an online law enforcement officer. After obtaining a search warrant, federal and state law enforcement officers located thousands of images and movies containing child pornography. The indictment alleges Driscoll engaged in the activity in February and March 2016.
This case was investigated by the United States Postal Inspection Service and the Pennsylvania Office of the Attorney General. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. 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.
The maximum penalty under federal law is 40 years’ imprisonment with a mandatory term of 15 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Maryland Woman Pleads Guilty to Conspiring to Taking Part in Scheme Involving Prescription and Health Care FraudRead the Press Release
WASHINGTON – Novella White, 53, of Accokeek, Md., pled guilty today to federal charges of conspiracy to obtain controlled substances by prescription fraud and participating in a health care fraud scheme, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
White entered the plea in the U.S. District Court for the District of Columbia. She faces a maximum sentence of four years in prison for the conspiracy count and up to 10 additional years for the health care fraud scheme. The Honorable Richard J. Leon scheduled sentencing for July 7, 2016. As part of the plea agreement, White agreed to pay $5,400, representing her share of illegal proceeds obtained from various health care plans.
A co-defendant, Claire Elizabeth Rice, 68, of Silver Spring, Md., pled guilty on Feb. 25, 2016 to the same charges. She is to be sentenced on June 3, 2016. As part of the plea agreement, Rice agreed to pay $16,175, representing her share of illegal proceeds.
Both defendants were charged in a federal indictment returned in 2014. In her plea, White admitted to a statement of offense concerning her conduct. She admitted that, from 2008 to 2013, she passed 127 forged prescriptions for drugs, including oxycodone, a synthetic opiate, in the name of practicing cardiologist with offices in Northwest Washington. Ninety-one of the prescriptions were written in the name of Rice, her friend, who was never a patient of the doctor.
White, a former employee of the doctor, left her job as a receptionist in January 2010, but took a blank prescription pad from the office when she left. White was not a health care professional and did not have authority to write prescriptions for herself or for Rice.
Rice caused the forged prescriptions that she obtained to be billed to health care plans such as Express Scripts and Blue Cross and Blue Shield. The health plans were defrauded the costs of filling these various prescriptions. White presented forged prescriptions in her own name as well, and caused them to be billed to one of four different health insurance plans which she maintained: Safeway Informed RX, Blue Cross Blue Shield, United Health, and Medco Health, which were the victims of the health care fraud charges.
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge DiGiulio commended the work of those who investigated the case from the FBI’s Washington Field Office and the HHS Office of the Inspector General. They also expressed appreciation for the work of Assistant U.S. Attorneys John P. Dominguez and Jennifer Kerkhoff, who prosecuted the case.
Marrero Homeowner Sentenced for Theft of Home Elevation Grant FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CINDY DANDRIDGE, age 43, of Marrero, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with theft of government funds.
U.S. District Judge Mary Ann Vial Lemmon sentenced DANDRIDGE to 12 months and a day imprisonment, followed by two years of supervised release. As part of the sentence, the Court also ordered DANDRIDGE to pay $50,000 in restitution to the government.
According to documents filed in federal court, DANDRIDGE owned a home in Marrero, Louisiana. In September and October 2010, DANDRIDGE executed application documents with the Home Elevation Mitigation Grant Program (“HMGP”) to receive federal grant funds to elevate her house in Marrero, Louisiana. The application was completed with the understanding that the grant monies would be used to elevate her home.
In January 2011, DANDRIDGE received federal HMGP grant monies totaling $50,000 to elevate her house in Marrero. DANDRIDGE deposited these federal funds into her personal bank accounts. However, instead of using the monies to elevate her home, DANDRIDGE used the grant monies to pay for personal expenses.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General, in investigating this matter. Assistant United States Attorney, Richard R. Pickens, II is in charge of the prosecution.
Manhattan U.S. Attorney Announces Civil Forfeiture Complaint to Recover Proceeds of $100 Million Wire Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a civil forfeiture complaint against the funds in at least 20 bank accounts around the world that are alleged to constitute the proceeds of an elaborate scheme to defraud a United States company (the “Victim Company”). In particular, the complaint filed today in Manhattan federal court alleges that the perpetrators of this fraud created a fake email address and posed as one of the Victim Company’s legitimate vendors (the “Vendor”) in communications with a professional services company (the “Professional Services Company”) that the Victim Company retained to handle the details and logistics of vendor payments. Through these fraudulent communications, the perpetrators of the scheme caused the Victim Company to transfer nearly $100 million due to the Vendor to an account at Eurobank Cyprus, Ltd (“Eurobank”) that was actually under their control. Almost immediately after funds were transferred into this account, the perpetrators of this scheme caused portions of the fraud proceeds to be further dispersed to accounts under their control around the world, including in Latvia, Estonia, Hungary, Lithuania, Slovakia, Estonia, and Hong Kong.
Through the timely actions of officials at Eurobank, and in coordination with U.S. and Cypriot law enforcement authorities, more than $74 million of the stolen funds have already been returned to the Victim Company. Foreign governments acting at the request of U.S. authorities have restrained 20 accounts worldwide that received portions of the remaining ill-gotten funds, and the funds in those accounts are the subject of the complaint filed today in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “Criminals can be resourceful and unrelenting in their efforts to scam innocent victims out of money. Here, the alleged perpetrators – through a fake email address and by impersonating a legitimate vendor – almost got away with $100 million. Thanks to the timely actions of law enforcement here and abroad, as well as by Eurobank in Cyprus, where the stolen funds were first sent, $74 million has already been returned to the victim company. With this civil forfeiture action, we seek to return the rest.”
FBI Assistant Director-in-Charge Diego Rodriguez, said: “This modern-day impersonation scheme used a fake email account to scam a business instead of the old way of in-person imitation by the perpetrators. However, this scam was cut short in the end thanks to modern-day tools used by banks to stop suspicious transactions and cooperation by our foreign partners to restrain the transferred funds.”
As alleged in the Complaint:
The Victim Company is an American-based corporation doing business worldwide. Like many corporations, the Victim Company has contractors and vendors who are paid via wire transfer for services provided, including the Vendor, which is based in Asia. During all times relevant to the Complaint, the Victim Company retained the Professional Services Company to communicate with vendors and handle the details of vendor payments.
Over the course of several weeks in August and September 2015, the perpetrators of the scheme described in the Complaint managed to impersonate the Vendor by creating a fake email address that resembled email addresses used by actual employees of the Vendor. Using this fake email address, the perpetrators then communicated with an email account maintained for the purpose of allowing vendors to communicate with the Professional Services Company on behalf of the Victim Company. Through those email communications, the perpetrators of the scheme convinced the Professional Services Company to change the designated bank account to which the Victim Company would make recurring payments to the Vendor for services rendered. As a result, payments from the Victim Company meant for the Vendor were transferred to an account under the control of the perpetrators of this scheme (“Subject Account-1”) rather than an account actually affiliated with the Vendor.
Once this change was put into effect, the Professional Services Company, on behalf of the Victim Company, began directing a series of payments from Victim Company accounts in the United States to Subject Account-1 that were intended for the Vendor. Specifically, between August 21, 2015, and September 14, 2015, approximately 16 payments intended for the Vendor as payment for services rendered to the Victim Company were wired for deposit into Subject Account-1, totaling approximately $98,879,545.80. Officials at Eurobank developed concerns regarding these transfers and, as a result, restrained approximately $74 million of the transferred funds before they settled into Subject Account-1. In coordination with law enforcement authorities, those funds have since been returned to the Victim Company.
In regard to the approximately $25 million that actually settled into Subject Account-1, the perpetrators of the scheme then laundered portions of those crime proceeds through at least 19 additional accounts, including accounts in Cyprus, Latvia, Hungary, Estonia, Lithuania, Slovakia, and Hong Kong. Those accounts, along with Subject Account-1, have since been restrained by foreign governments acting at the request of U.S. authorities.
* * *
Mr. Bharara praised the outstanding investigative work of FBI. He also thanked the
Financial Crimes Enforcement Network (“FinCEN”) of the United States Department of the Treasury, the Law Office of the Republic of Cyprus Unit for Combating Money Laundering, and Eurobank Cyprus Ltd. for all of their assistance in the investigation and the return of funds to the Victim Company.
This investigation is being handled by the Office’s Money Laundering and Asset Forfeiture Unit and Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Edward B. Diskant and Megan L. Gaffney are in charge of the case.
The investigation is ongoing.
Manhattan U.S. Attorney Announces Arrest of Chinese National for Illegally Attempting to Export High-Grade Carbon Fiber to ChinaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, Angel M. Melendez, Special Agent in Charge of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), Jonathan Carson, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (“DOC”), and Craig Rupert, Special Agent in Charge of the Department of Defense, Defense Criminal Investigative Service, Northeast Field Office (“DCIS”), announced the arrest of FUYI SUN, a/k/a “Frank,” a citizen of the People’s Republic of China (“China”), in connection with a scheme to illegally export to China, without a license, high-grade carbon fiber that is used primarily in aerospace and military applications.
SUN was arrested yesterday after traveling to New York to meet with undercover agents (“UCs”) in an effort to obtain the specialized fiber, which – due to its military and aerospace applications – requires an export license for export to China.
SUN was presented last night in Manhattan federal court before U.S. Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Fuyi Sun attempted for years to acquire high-grade carbon fiber for illegal export to China. Earlier this week, after traveling to New York from China to finalize the deal, Sun allegedly told undercover agents that the carbon fiber he sought was headed for the Chinese military, and then paid tens of thousands of dollars in cash to purchase two cases of it. And to avoid law enforcement detection, Sun allegedly directed the undercover agents to ship the carbon fiber in unmarked boxes and to falsify the shipping documents regarding the contents of the boxes.”
Assistant Attorney General John P. Carlin said: “Sun allegedly attempted to procure high grade carbon fiber for a source he repeatedly identified as the Chinese military. The carbon fiber – which has many aerospace and defense applications – is strictly controlled, and Sun expressed a willingness to pay a premium to skirt U.S. export laws. The National Security Division will continue to work to identify and hold accountable those who seek to violate IEEPA and other laws designed to protect our strategic commodities from those who may wish us harm.”
HSI Special Agent in Charge Angel M. Melendez said: “Keeping items such as this high grade carbon fiber, which can be used for military applications, from falling into the wrong hands possibly endangering national security, is a job HSI takes very seriously. Through this investigation, we have disrupted an alleged attempt to knowingly circumvent export controls and ensured this material will not be used for nefarious purposes.”
DOC Special Agent in Charge Jonathan Carson said: “A top priority of The Office of Export Enforcement is identifying and disrupting the illicit export of items for unauthorized military end-uses and users in China. Carbon fiber has military, missile and nuclear applications. In this case, working with our law enforcement partners we thwarted an alleged attempt to illegally export carbon fiber to China.”
DCIS Northeast Field Office Special Agent in Charge Craig Rupert said “The recent arrest reinforces the commitment of the Defense Criminal Investigative Service (DCIS) to halting the spread of Defense technology to restricted nations. The ongoing partnership with other law enforcement agencies is essential to shielding America's investment in defense.”
According to the allegations in the Complaint that was filed yesterday in Manhattan federal court:[1]
Since approximately 2011, SUN has attempted to acquire extremely high-grade carbon fiber, including Toray type M60JB-3000-50B carbon fiber (“M60 Carbon Fiber”). M60 Carbon Fiber has applications in aerospace technologies, unmanned aerial vehicles (commonly known as “drones”) and other government defense applications. Accordingly, M60 Carbon Fiber is strictly controlled – including that it requires a license for export to China – for nuclear non-proliferation and anti-terrorism reasons.
In furtherance of his attempts to illegally export M60 Carbon Fiber from the United States to China without a license, SUN contacted what he believed was a distributor of carbon fiber – but which was, in fact, an undercover entity created by HSI and “staffed” by HSI undercover special agents (the “UC Company”). SUN inquired about purchasing the M60 Carbon Fiber without the required license. In the course of his years-long communications with the undercover agents and UC Company, SUN repeatedly suggested various security measures that he believed would protect them from “U.S. intelligence.” Among other such measures, at one point, SUN instructed the undercover agents to use the term “banana” instead of “carbon fiber” in their communications. Consequently, soon thereafter he inquired about purchasing 450 kilograms of “banana” for more than $62,000. In order to avoid detection, SUN also suggested removing the identifying barcodes for the M60 Carbon Fiber, prior to transshipment, and further suggested that they identify the M60 Carbon Fiber as “acrylic fiber” in customs documents.
On or about April 11, 2016, SUN traveled from China to New York for the purpose of purchasing M60 Carbon Fiber from the UC Company. During meetings with the undercover agents, on or about April 11 and 12, 2016, among other things, SUN repeatedly suggested that the Chinese military was the ultimate end-user for the M60 Carbon Fiber he sought to acquire from the UC Company. SUN claimed to have personally worked in the Chinese missile program. And SUN asserted that he maintained a close relationship with the Chinese military, had a sophisticated understanding of the Chinese military’s need for carbon fiber, and suggested that he would be supplying the M60 Carbon Fiber to the Chinese military or to institutions closely associated with it.
On or about April 12, 2016, SUN agreed to purchase two cases of M60 Carbon Fiber from the UC Company. SUN paid the undercover agents $23,000 in cash for the carbon fiber. He also paid an additional $2,000 to the undercover agents as compensation for the risk he believed they were taking to illegally export the carbon fiber to China without a license.
* * *
The Complaint charges SUN, age 52, in three counts: Count One charges attempt to violate the International Emergency Economic Powers Act (“IEEPA”); Count Two charges conspiracy to violate IEEPA; and Count Three charges attempt to smuggle goods from the United States. Counts One and Two each carry a maximum sentence of 20 years in prison. Count Three carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the extraordinary investigative work of the New York Field Office of HSI, the DOC’s Bureau of Industry and Security’s Office of Export Enforcement, the DCIS New York Office, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
This prosecution is being handled by the Office’s Terrorism and International Narcotics and Complex Frauds and Cybercrime Units. Assistant United States Attorneys Matthew Podolsky, Patrick Egan, Sean Buckley, and Nick Lewin are in charge of the prosecution. David Recker, Trial Attorney in the National Security Division, Counterintelligence and Export Control Section, is also assisting in the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Lumberton Man Sentenced to 140 Months for Firearms & Drug Trafficking OffensesRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge Malcolm J. Howard, sentenced BALAL THEO CHOUDHARY, a/k/a Paco Choudhary 28, of Lumberton, North Carolina, to 140 months imprisonment, followed by 5 years of supervised release.
On October 5, 2015, CHOUDHARY pled guilty to Possession of a Firearm by a Felon, Possession with Intent to Distribute a Quantity of Cocaine and a Quantity of Marijuana, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
According to the investigation, in December 2013, detectives with the Lumberton Police Department, Drug Enforcement Unit, initiated an investigation into the drug distribution activities of CHOUDHARY. Leading up to December 2013, the police department received a number of complaints
regarding CHOUDHARY’S possession of firearms and the distribution of drugs from his residence in Lumberton. Detectives conducted a controlled purchase of 0.1 gram of cocaine base from CHOUDHARY in December, 2013.
On December 13, 2013, detectives conducted a search of CHOUDHARY’S residence and found 3 handguns, approximately 62 grams of marijuana, cocaine, and cocaine base, U.S. currency, scales, and drug paraphernalia.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lumberton Police Department, and the Robeson County Sheriff’s Office. Assistant United States Attorney S. Katherine Burnette handled the prosecution on behalf of the Eastern District of North Carolina.
Lewisburg Federal Prison Inmate Charged with AssaultRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges have been filed against Corey Maurice Treadwell, who is currently confined at the U.S. Penitentiary, Lewisburg, Pennsylvania.
According to United States Attorney Peter Smith, Treadwell, age 49, is charged in a three-count Indictment with assault with intent commit murder, assault with a dangerous weapon, and possession of contraband in a prison facility. In November 2015, Treadwell allegedly assaulted another Lewisburg inmate with a homemade weapon.
The investigation was conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Geoffrey W. MacArthur has been assigned to prosecute the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines. In this case, the maximum penalty under the federal statutes is 25 years imprisonment, a term of supervised release following imprisonment, and a fine of $500,000.
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 necessarily an accurate indicator of the potential sentence for a specific defendant.
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Justice Department Sues Two Hospital Systems for Agreeing to Allocate Marketing TerritoriesRead the Press Release
The Department of Justice today sued Charleston Area Medical Center (“CAMC”) and St. Mary’s Medical Center for unlawfully agreeing to allocate territories for the marketing of healthcare services, a practice that deprived consumers of the benefits of access to important information about competing healthcare providers. The department filed the civil antitrust lawsuit in the U.S. District Court for the Southern District of West Virginia, while simultaneously filing a proposed settlement that, if approved by the court, would resolve the lawsuit.
According to the department’s complaint, one way that hospitals compete to attract patients is by marketing their healthcare services, including through print advertisements, such as newspaper advertisements, and outdoor advertisements, such as billboards. Advertising also spurs hospitals to compete for patients by investing in providing better care and a broader range of services. The complaint alleges that CAMC and St. Mary’s curtailed competition for years by agreeing to geographic limits on the marketing of competing healthcare services. CAMC agreed not to place print or outdoor advertisements in Cabell County, West Virginia, and St. Mary’s agreed not to place print or outdoor advertisements in Kanawha County, West Virginia. The agreement disrupted competition, deprived patients of information needed to make informed healthcare decisions, and denied physicians working for the defendants the opportunity to advertise their services to potential patients.
“These hospitals limited competition by agreeing on how and where each would advertise competing healthcare services,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Marketing is an important tool that hospitals use to compete for patients. Today’s action will end the hospitals’ anticompetitive agreement and promote competition.”
The proposed settlement prohibits CAMC and St. Mary’s from agreeing with other healthcare providers, including hospitals and physicians, to limit marketing or to divide any geographic market or territory. The proposed settlement also prohibits communications between the defendants about their marketing activities, subject to limited exceptions. The hospitals will also implement compliance measures designed to prevent the recurrence of these types of anticompetitive practices.
CAMC is a nonprofit West Virginia corporation headquartered in Charleston, West Virginia, which operates four general acute-care hospitals (CAMC General Hospital, CAMC Memorial Hospital, CAMC Women and Children’s Hospital, and CAMC Teays Valley Hospital) with a total of 908 beds and a medical staff of over 120 employed physicians.
St. Mary’s is a nonprofit West Virginia corporation headquartered in Huntington, West Virginia, which operates a general acute-care hospital located in Cabell County with 393 beds and a medical staff of over 50 employed physicians. St. Mary’s also serves as a teaching hospital for medical students and residents from Marshall University School of Medicine.
The proposed settlement with CAMC and St. Mary’s, along with the department’s competitive impact statement, will be published in the Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter J. Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Justice Department Closes Investigation After Pennsylvania Department of Corrections Takes Significant Steps to Reform its Use of Solitary ConfinementRead the Press Release
The Justice Department announced today that it has closed its investigation into the Pennsylvania Department of Corrections (PDOC) following significant improvements made by PDOC to its policies and practices that are intended to protect prisoners with serious mental illness and intellectual disabilities from the harmful effects of solitary confinement.
The department opened its statewide investigation into the use of solitary confinement on prisoners with serious mental illness and intellectual disabilities in May 2013 after finding a pattern of constitutional violations as well as violations of the Americans with Disabilities Act at the State Correctional Institution in Cresson, Pennsylvania. After working in cooperation with PDOC to conduct an intensive review of prisons across the state, on Feb. 24, 2014, the department notified PDOC that the same violations discovered at Cresson were present across the system.
In its closing letter to PDOC, the department noted that PDOC demonstrated its commitment to reforming its use of solitary confinement by working closely with the department and beginning improvements at the outset of the investigation. Since then, PDOC has worked to ensure that prisoners with serious mental illness and/or intellectual disabilities are no longer subjected to solitary confinement and are instead provided with specialized treatment to meet their individualized needs. The closing letter also identifies areas where continued efforts at improvement would be appropriate.
“Solitary confinement should be used only when necessary—never as a default solution,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Today, Pennsylvania is headed in the right direction. We commend the state for beginning to reform its system to ensure that prisoners with serious mental illness and intellectual disabilities receive care, rather than suffer harm. Those prisoners are in a much better position than they were three years ago to return to the community.”
“Our civil rights enforcement efforts have led the Pennsylvania Department of Corrections to provide effective mental health treatment to all prisoners throughout the Commonwealth so that they can successfully reenter their communities,” said U.S. Attorney David J. Hickton of the Western District of Pennsylvania. “We remain dedicated to vigorously enforcing the civil rights of those who have serious mental illness throughout Pennsylvania, regardless of their situation.”
The department initiated this investigation under the Civil Rights of Institutionalized Persons Act (CRIPA), which prohibits a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. This investigation was conducted by attorneys with the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the Western District of Pennsylvania. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Recently, the department also conducted a broader review of solitary confinement – and other forms of “restrictive housing” – to formulate policy solutions for reducing the use of these practices throughout the nation’s criminal justice system. The department concluded that while there are occasions when correctional officials have no choice but to segregate inmates from the general population, as a matter of policy, this practice should be used rarely, applied fairly and subjected to reasonable constraints. The department’s report, including a series of “Guiding Principles” for limiting the use of restrictive housing, is available on its website at https://www.justice.gov/restrictivehousing.
Closing Letter to PDOC
Jay Man Pleads Guilty to Federal Program FraudRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Timothy P. Gallagher, 46, of Jay, Maine, pled guilty today in U.S. District Court to federal program fraud.
According to court records, between May and November 2014, the defendant embezzled about $80,000 from Stanford Management LLC (“Stanford”), a property management company specializing in affordable housing that received millions of dollars in federal benefits each year under programs administered by the U.S. Department of Housing and Urban Development (“HUD”) and the U.S. Department of Agriculture (“USDA”). While employed as a full-time construction manager at Stanford, Gallagher set up a competing construction company and paid it to hire subcontractors to perform work on Stanford properties, the job he was being paid a wage to perform. He also concealed his ownership of the competing construction company from Stanford and the federal agencies. As a result, he improperly obtained about $80,000.
Gallagher faces up to ten years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by HUD, Office of Inspector General and the USDA, Office of Inspector General, with assistance from the Jay Police Department.
Inmate Sentenced for Rioting in a Federal PrisonRead the Press Release
Jackson, Miss - Hiasom Ali, age 39, originally of Cairo, Egypt, was sentenced on April 12, 2016, by Senior U.S. District Judge David Bramlette III, to serve 51 months in federal prison for rioting at the Adams County Correctional facility, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Don Alway. He was also ordered to pay restitution in the amount of $1,382,313. Ali pled guilty to the rioting charge on May 11, 2014.
The prison riot occurred on May 20, 2012. Several correctional officers were assaulted and one correctional officer died as a result of injuries he received during the assaults. Other correctional officers were held hostage for several hours by the rioters. The total damage to the facility was estimated to be $1,305,142.00.
This case was investigated by the Federal Bureau of Investigation with assistance from the Adams County Sheriff’s Office. Assistant U.S. Attorneys Patrick Lemon and Jerry Rushing prosecuted the case.
Indictment Charges Philadelphia Man with Robbing Three BanksRead the Press Release
PHILADELPHIA - Ellwood Quillen, Jr., 66, of Philadelphia, Pennsylvania was charged today by Indictment with three counts of bank robbery, announced United States Attorney Zane David Memeger. The charges arise from the October 26, 2015 robbery of the TD Bank, located at 401 W Lancaster Avenue, in Haverford, Pennsylvania, the November 13, 2015 robbery of the TD Bank, located at 4020 City Line Avenue, in Philadelphia Pennsylvania, and the November 20, 2015 robbery of the WSFS bank, located at 9 East Baltimore Pike, in Lansdowne, Pennsylvania.
If convicted the defendant faces a maximum possible sentence of 60 years in prison, a possible fine, a $300 special assessment and a period of supervised release.
The case was investigated by the Lansdowne Police Department, the Lower Merion Police Department, the Philadelphia Police Department, and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment Charges Philadelphia Man in Identity Theft and Credit Card SchemeRead the Press Release
PHILADELPHIA - Carl Pierre-Charles, 27, of Philadelphia, Pennsylvania was charged today by indictment with conspiracy, access device fraud and aggravated identity theft, announced United States Attorney Zane David Memeger. According to the indictment, the defendant used counterfeit credit, debit or gift cards, encoded with stolen credit account numbers, to purchase cartons of cigarettes and other items.
If convicted. Carl Pierre-Charles faces a maximum possible sentence of 19 years in prison, a $400 special assessment, a possible fine, and a period of supervised release.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attomey K.T. Newton.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hundreds of Counterfeit Oxycodone Tablets Seized at Port of Entry Contained Ultra-Deadly FentanylRead the Press Release
Assistant U. S. Attorney Orlando Gutierrez (619) 546-6958
NEWS RELEASE SUMMARY – April 14, 2016
SAN DIEGO – A suspected smuggler’s recent attempt to bring hundreds of counterfeit oxycodone pills through the Otay Mesa Port of Entry has raised serious concerns among law enforcement officials here because the pills turned out to be ultra-deadly fentanyl.
In Sacramento, California, there have been dozens of overdoses and at least 11 deaths in which individuals believed they were consuming the prescription painkiller Norco, which contains hydrocodone and acetaminophen. Instead these counterfeit tablets contained fentanyl. The Sacramento County Department of Health and Human Services has urged individuals to refrain from taking prescription-type pills that are not prescribed and obtained from one’s own doctor.
The seizure is believed to be the first time that federal officials along the California-Mexico border have intercepted counterfeit oxycodone tablets containing fentanyl as they were being smuggled from Mexico into the United States.
In federal court in San Diego today, defendant Sergio Linyuntang Mendoza Bohon of Tijuana, Mexico, was arraigned on a charge that he unlawfully imported a controlled substance. According to a charging document, Bohon attempted to smuggle 1,183 tablets of fentanyl that were labeled as oxycodone, and 5.4 grams of powdered fentanyl.
According to court records, on February 10, 2016, defendant Mendoza Bohon entered the United States at the Otay Mesa Port of Entry as a pedestrian. During the primary inspection, a Customs and Border Patrol Officer observed an unnatural looking bulge on the defendant and he was referred to secondary inspection, where Customs and Border Protection officers found the tablets labeled as oxycodone concealed in his underwear.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agents responded to the Port of Entry. During his post-arrest statement, defendant Bohon admitted that he knew that the tablets were “oxy” [oxycodone] and that he was attempting to smuggle the oxycodone into the United States. However, the Drug Enforcement Administration Laboratory confirmed that the pills contained fentanyl and not oxycodone.
“Unsuspecting individuals who illegally purchase oxycodone could potentially die from the ingestion of what turns out to be fentanyl tablets,” said U.S. Attorney Laura Duffy. “We are very concerned that these counterfeit pills could cause serious harm to users. Even miniscule amounts of fentanyl can have devastating consequences for those who abuse it or literally even touch it.”
Last year, the Drug Enforcement Administration released a nationwide public health alert on Fentanyl, a Schedule II synthetic opioid painkiller. Fentanyl and Fentanyl analogues produced in clandestine laboratories can be 100 times more potent than morphine. Exposure to even a trace amount of Fentanyl through inhalation or absorption through the skin.
Fentanyl is anywhere from 25 to 50 times more potent than heroin. The drug and its analogues are being produced to a large extent in China. DEA investigations reveal that the Mexican drug cartels, including Sinaloa, are purchasing fentanyl directly from China and producing fentanyl from precursors sourced from China.
In some parts of the country, heroin is being spiked with fentanyl or being replaced by fentanyl. There are a number of reasons why, but it mainly comes down to economics. Fentanyl generates greater profits than heroin.
“DEA will continue to investigate the manufacturers, smugglers and distributors of fraudulent prescription pills,” said DEA San Diego Special Agent in Charge William R. Sherman. “These criminals are putting fentanyl into fake pills and passing them off as legitimate prescription medications. Fentanyl is extremely powerful and can very easily lead to overdose deaths. This just goes to show the lengths to which criminals will go to make an easy buck.”
“This investigation involves the first interdiction of counterfeit oxycodone pills containing fentanyl that were smuggled from Mexico into the U.S. at the local ports of entry,” said Dave Shaw, special agent in charge for HSI San Diego. “While this time we’ve successfully prevented a potentially deadly drug from reaching the streets, we face an uphill battle stemming from the rapidly growing demand for pharmaceutical painkillers on the black market. HSI is committed to working with our law enforcement partners, both here and abroad, to identify and dismantle transnational criminal networks seeking to profit from the production and distribution of deadly counterfeit drugs.”
This case is being investigated by the San Diego Pharmaceutical Task Force, a group formed in 2012. Members include agents from DEA, HSI, the California Department of Justice, Bureau of Investigation, the San Diego Sheriff’s Department, and the United States Attorney’s Office.
Bohon’s next court appearance is on May 2, 2016, before the U.S. District Judge Marilyn L. Huff for a motion hearing.
DEFENDANT Case Number 16CR0453
Sergio Linyuntang Medonza Bohon Age 19 Tijuana, Mexico
CHARGE
Importation of Controlled Substance, in violation of Title 21, United States Code, Section 952 and 960. Maximum Penalties: 20 years in custody; 3 years of supervised release; $250,000 fine; $100 Special Assessment.
INVESTIGATING AGENCIES
Customs and Border Protection (CBP)
San Diego Pharmaceutical Task Force
Immigration and Customs Enforcement’s Homeland Security Investigations
Drug Enforcement Administration
California Department of Justice, Bureau of Investigation
San Diego Sheriff’s Department.
*The charges and allegations contained in an indictment, information, or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Hope Man Sentenced to 63 Months in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jeffrey N. Bain, age 52 of Hope, Arkansas, was sentenced today to 63 months in federal prison followed by three years of supervised release on two counts of Possession with Intent to Distribute Methamphetamine and 12 months in federal prison followed by two years of supervised release on one count of Possession with Intent to Distribute Marijuana; the sentences will run concurrently with each. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
This case was investigated by the Federal Bureau of Investigation (FBI), Hempstead County Sheriff’s Office, and the South Central Drug Task Force. Assistant United States Attorney Jonathan D. Ross prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Honduran National, Previously Convicted of an Aggravated Felony, Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALLAN WENDERLAY DOMINGUEZ, age 33, a citizen of Honduras, was charged today in a one-count Indictment for reentry of removed alien previously convicted of an aggravated felony.
According to the Indictment, on or about February 11, 2016, DOMINGUEZ, was found in the United States after having been convicted on or about September 10, 2009, of a felony theft and subsequently officially deported and removed on or about June 24, 2011.
If convicted, DOMINGUEZ faces a maximum term of imprisonment of twenty years, a fine of up to $250,000, five years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Polite reiterated that the 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 the United States Department of Homeland Security, Immigration and Customs Enforcement, Office of Enforcement and Removal Operations Investigations in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Honduran National Indicted for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday a federal grand jury in Harrisburg indicted Alfredo Rodriguez-Castellano, for illegally re-entering the United States after having been previously deported and convicted of an aggravated felony.
According to U.S. Attorney Peter Smith, Rodriguez-Castellano, a 35 year old Honduran national, was previously deported to Honduras in 2009. That same year, he was also convicted by the Franklin County Court of Common Pleas of forgery, an aggravated felony which subjects him to enhanced penalties in the current case.
The matter was investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and the case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
Because of Rodriguez-Castellano’s previous conviction, under federal law he faces a maximum penalty of 20 years 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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Hendersonville Attorney Sentenced to 33 Months in Prison in Real Estate Closing SchemeRead the Press Release
Garry Christopher Forsythe, 42, of Hendersonville, Tenn., was sentenced today to 33 months in prison to be followed by two years of supervised release, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. U.S. District Court Judge Aleta A. Trauger imposed the sentence, and also ordered Forsythe to pay $2,249,294.80 in restitution and to forfeit the proceeds of his crime.
Forysthe pleaded guilty to one count of wire fraud in December 2015 in connection with a scheme involving escrow funds held by his real estate closing company, Forsythe Title and Escrow. During the sentencing hearing, evidence established that the company’s escrow accounts developed shortages of more than $2.2 million because Forsythe made inflated or unsupported transfers of funds from the escrow accounts to the company’s operating accounts. Testimony during the hearing also established that, contrary to Forsythe’s position, the escrow shortages were not inadvertently caused by the failure to deposit checks or by bank errors. The evidence demonstrated that, in one instance, funds were transferred from an escrow account at Forsythe Title & Escrow and used for the down payment on a boat purchased by Forsythe. Evidence also demonstrated that the escrow shortages resulted in bounced checks, delays in scheduled real estate closings, and instances in which borrowers were left with two mortgages because Forsythe Title & Escrow failed to pay financial institutions with funds that had been provided for that purpose.
The case was investigated by the FBI and the IRS-Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys William F. Abely and Cecil W. VanDevender.
Grand Jury Returns Indictment for Whitney Bank RobberyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LAVERT LAYMON, age 27, of Gretna, was charged today in a one-count Indictment with the March 31, 2016 robbery of the Whitney Bank branch located at 3740 Elysian Fields.
If convicted, LAYMON faces a maximum sentence of twenty years in prison, a $250,000 fine, and three years of supervised release.
U.S. Attorney Polite reiterated that the 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 the Federal Bureau of Investigation, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Myles Ranier is in charge of the prosecution.
Former U.S. Army Corps of Engineers Employee Sentenced to 30 Years in Prison for Transportation and Possession of Child PornographyRead the Press Release
A former regional chief of public affairs for the U.S. Army Corps of Engineers was sentenced to 30 years in prison today in the U.S. District Court for the Western District of Virginia for charges involving the sexual exploitation of children, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John P. Fishwick Jr. of the Western District of Virginia.
On Oct. 6, 2015, Michael Steven Beeman, 62, of Winchester, Virginia, pleaded guilty to one count of transportation of child pornography and four counts of possession of child pornography. U.S. District Court Judge Michael F. Urbanski of the Western District of Virginia sentenced Beeman and also ordered him to serve a lifetime term of supervised release.
According to documents filed with the plea agreement, in and around the late 1980s, Beeman was a U.S. Air Force employee in a public affairs position at Patrick Air Force Base in Florida and during that time, engaged in sexual acts with a minor on multiple occasions and sometimes recorded the abuse. In 2014, Beeman’s dog walker discovered images of naked minors on one of Beeman’s devices and called the Frederick County, Virginia, Sheriff’s Office, according to the plea document. Beeman further admitted that, in January 2014, he had more than 50 items, including VHS tapes, DVDs, desktop and laptop computers, tablets, external hard drives and thumb drives, at his home that contained thousands of images of child sexual exploitation.
At sentencing, Judge Urbanski found that Beeman sexually abused two minors on multiple occasions and later downloaded images of similar victimization of other children for his own interests.
The Page County, Virginia, Sheriff’s Office; the Northern Virginia/Washington, D.C., Internet Crimes Against Children Task Force and Evidence Recovery Section; the Frederick County Sheriff’s Office; the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Virginia Attorney General’s Office’s Computer Evidence Recovery Section; the Virginia State Police’s High Tech Crimes-Computer Recovery Section; the Air Force Office of Special Investigations; the U.S. Army Corps of Engineers – Middle East District; and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) High Tech Investigative Unit investigated the case. CEOS Trial Attorney Herbrina D. Sanders and Assistant U.S. Attorney Nancy S. Healey of the Western District of Virginia prosecuted 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 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.justice.gov/psc.
Former Sheriff’s Department Employee Evades Taxes on Money Earned Selling Dangerous Diet DrugsRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – April 14, 2016
SAN DIEGO – Former San Diego Sheriff’s Department employee Francisco Terriquez pleaded guilty today to tax evasion and making a false statement to a federal officer, admitting that he ran a business selling millions of dollars of dietary supplements and failed to declare any of the proceeds as income on his federal tax return.
Terriquez, a 19-year veteran of the Sheriff’s Department, spent tens of thousands of dollars shipping the dietary supplements to stores and customers throughout the United States. Terriquez operated his business out of several storage units, which he rented under a fake name. After obtaining a search warrant, federal agents searched Terriquez’s storage units and discovered hundreds of vials of dietary supplements containing the controlled substance sibutramine.
According to the Food and Drug Administration, sibutramine is an obesity drug that was withdrawn from the U.S. market in October 2010 due to studies showing an increased risk of heart attack and stroke among those using the drug. Terriquez never notified his customers that the dietary supplements he sold contained a dangerous drug.
From 2011-2014, Terriquez failed to report over a half million dollars in income he received from his illegal business. As part of his plea, Terriquez agreed to pay restitution to the Internal Revenue Service for the full amount of taxes owed. Terriquez will appear for sentencing on July 21, 2016 at 9 a.m. before U.S. District Judge Marilyn L. Huff.
“As a member of a law enforcement agency for decades, this defendant knew better,” said U.S. Attorney Laura Duffy. “He acted as if the rules did not apply to him, and now he is finding out otherwise.”
“As a former employee of a law enforcement agency, Mr. Terriquez is held to a higher standard and knew that he was operating an illegal business,” said FBI Special Agent in Charge Eric S. Birnbaum. “Today's plea will hold Mr. Terriquez accountable for his unlawful conduct and serve as a reminder that when purchasing dietary supplements through the internet, ask questions and conduct your own due diligence before purchasing from unknown individuals and/or companies.”
DEFENDANT: Case Number 15-CR-2298-H
Francisco Terriquez Age: 43 Chula Vista, CA
SUMMARY OF CHARGES
Tax Evasion – Title 26, U.S.C., Section 7201
Maximum penalty: 5 years’ imprisonment and $250,000 fine
False Statement – Title 18, U.S.C., Section 1001
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigation
Former Owner of Defense Contracting Businesses Sentenced to 57 Months in Prison for Illegally Exporting Military Blueprints to India Without a LicenseRead the Press Release
The former owner of two New Jersey defense contracting businesses was sentenced today to 57 months in prison for conspiring to send sensitive military technical data to India, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Paul J. Fishman of the District of New Jersey.
Hannah Robert, 50, of North Brunswick, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson of the District of New Jersey to conspiracy to violate the Arms Export Control Act by exporting to India military technical drawings without prior approval of the U.S. Department of State.
“Hannah Robert circumvented the U.S. government and provided export-controlled technical data related to various types of military technology to an individual in India,” said Assistant Attorney General Carlin. “We will vigorously prosecute and bring to justice those who abuse their access to sensitive defense information and violate the Arms Export Control Act.”
“Hannah Robert conspired to send to another country thousands of technical drawings of defense hardware items and sensitive military data,” said U.S. Attorney Fishman. “She was also charged with manufacturing substandard parts that were not up to spec, in violation of the contracts she signed with the Department of Defense. Enforcement of the Arms Export Control Act is critical to the defense of our country.”
According to documents filed in this case and statements made in court:
In June 2010, Robert was the founder, owner and president of One Source USA LLC, a company located at her then-residence in Mount Laurel, New Jersey, that contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts. In September 2012, Robert opened another defense company, Caldwell Components Inc., based at the same address. Along with a resident of India identified only as P.R., Robert owned and operated a third company located in India that manufactured defense hardware items and spare parts.
From June 2010 to December 2012, Robert conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, military attack helicopters and F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On Aug. 23, 2012, P.R. emailed Robert requesting the technical drawing for a particular military item. P.R.’s email forwarded Robert an email from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s email, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
In October 2010, Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, New Jersey, church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to and a quote for a trans-shipper known to Robert as a broker of defense hardware items for an end user in Pakistan. This individual used a UAE address for shipping purposes. Later that day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
On Oct. 5, 2012, Robert e-mailed P.R. with the subject line “Important.” The e-mail referenced the Pakistan trans-shipper, a separate potential sale to individuals in Indonesia and the church website: “Please quote [the Pakistan trans-shipper] and Indonesia items today[.] [Dr]awings I cannot do now as if the size exceeds then problem, I should be watching what I upload, will do over the weekend[.] Ask me if you need any drawing . . . . Talk to you tomorrow . . . .”
There were also quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed that certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s United States customers, failed, Robert and P.R. provided the principal of their customer with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Until November 2012, Robert was an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA in order to conceal her criminal conduct.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
Assistant Attorney General Carlin joined U.S. Attorney Fishman in thanking the special agents of the DoD’s Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert; and special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Fabiana Pierre-Louis and L. Judson Welle of the District of New Jersey, with assistance from the National Security Division’s Counterespionage Section.
Former Owner of Defense Contracting Businesses Sentenced to 57 Months in Prison for Illegally Exporting Military Blueprints to India Without A LicenseRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses was sentenced today to 57 months in prison for conspiring to send sensitive military technical data to India, U.S. Attorney Paul J. Fishman and Assistant Attorney General for National Security John P. Carlin announced.
Hannah Robert, 50, of North Brunswick, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count Six of a superseding indictment, which charged her with conspiracy to violate the Arms Export Control Act by exporting to India military technical drawings without prior approval of the U.S. Department of State. Judge Thompson imposed the sentence today in Trenton federal court.
“Hannah Robert conspired to send to another country thousands of technical drawings of defense hardware items and sensitive military data,” U.S. Attorney Fishman said. “She was also charged with manufacturing substandard parts that were not up to spec, in violation of the contracts she signed with the Department of Defense. Enforcement of the Arms Export Control Act is critical to the defense of our country.”
“Hannah Robert circumvented the U.S. government and provided export-controlled technical data related to various types of military technology to an individual in India,” said Assistant Attorney General Carlin. “We will vigorously prosecute and bring to justice those who abuse their access to sensitive defense information and violate the Arms Export Control Act.”
According to documents filed in this case and statements made in court:
In June 2010, Robert was the founder, owner, and president of One Source USA LLC, a company located at her then-residence in Mount Laurel, New Jersey, that contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts. In September 2012, Robert opened another defense company, Caldwell Components Inc., based at the same address. Along with a resident of India identified only as “P.R.,” Robert owned and operated a third company located in India that manufactured defense hardware items and spare parts.
From June 2010 to December 2012, Robert conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, in military attack helicopters, and in F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On Aug. 23, 2012, P.R. e-mailed Robert requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
In October 2010 Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, New Jersey, church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to and a quote for a trans-shipper known to Robert as a broker of defense hardware items for an end user in Pakistan. This individual used a UAE address for shipping purposes. Later that day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
On Oct. 5, 2012, Robert e-mailed P.R. with the subject line “Important.” The e-mail referenced the Pakistan trans-shipper, a separate potential sale to individuals in Indonesia, and the church website: “Please quote [the Pakistan trans-shipper] and Indonesia items today[.] [Dr]awings I cannot do now as if the size exceeds then problem, I should be watching what I upload, will do over the weekend[.] Ask me if you need any drawing . . . . Talk to you tomorrow . . . .”
There were also quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed that certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s United States customers, failed, Robert and P.R. provided the principal of their customer with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Until November 2012, Robert was an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA in order to conceal her criminal conduct.
In addition to the prison term, Judge Thompson ordered Robert to serve three years of supervised release and pay $181,015.27 in restitution.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert; and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton, and L. Judson Welle of the U.S. Attorney’s Office National Security Unit, with assistance from the National Security Division’s Counterespionage Section.
Defense counsel: David E. Schafer Esq., Lawrenceville, New Jersey
Former District of Columbia Police Officer Sentenced to Prison for Obstructing Internal Revenue ServiceRead the Press Release
Filed False Documents with the IRS and Metropolitan Police Department
A former Metropolitan Police Department (MPD) officer and resident of Glenarden, Maryland, was sentenced to 11 months in prison today after a federal jury in the District of Columbia convicted him in October 2015 of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Ishmeal Heru-Bey, formerly known as Jamal Adams, failed to file timely federal income tax returns for the years 2005 through 2012 to report his MPD wages and other income to the Internal Revenue Service (IRS). Between 2006 and 2010, Heru-Bey submitted three IRS Forms W-4 to the MPD on which he falsely claimed that he was exempt from federal income tax withholding. These false forms caused his employer to withhold little or no federal income taxes from his wages during that period. After Heru-Bey was indicted for tax crimes in March 2015, he also filed false income tax returns for the years 2011 through 2014 on which he claimed to have incurred expenses relating to his job with the MPD, including expenses for the use of his personal vehicle, meals and entertainment, uniforms and dry cleaning. Heru-Bey was on paid administrative leave from the police force during those years and did not incur the expenses he claimed on his tax returns. At the sentencing hearing, U.S. District Judge James E. Boasberg for the U.S. District Court for the District of Columbia, who also presided over the trial, found that Heru-Bey intended to cause a loss to the IRS between $40,000 and $100,000.
In addition to the prison term, Heru-Bey was also ordered to serve one year of supervised release and pay restitution to the IRS in the amount of $45,712.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Jeffrey A. McLellan and Melissa S. Siskind of the Tax Division, who prosecuted the case.
Former Corrections Officer at Lexington Federal Prison Pleads Guilty to BriberyRead the Press Release
LEXINGTON, Ky. – A former corrections officer at the Federal Medical Center in Lexington (FMC Lexington) has admitted to smuggling tobacco into the prison, in exchange for payments from an inmate.
On Wednesday, William C. McClelland, 46, pleaded guilty to a bribery charge, before U.S. District Judge Karen Caldwell.
According to his plea agreement, on two occasions during 2015, McClelland smuggled tobacco into the prison for an inmate; he received $1,800 in return.
Prisoners incarcerated in federal correctional facilities, including FMC Lexington, are prohibited from possessing contraband, such as tobacco.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; John F. Oleskowicz, Special Agent in Charge, Department of Justice Office of the Inspector General, Chicago Field Office; and Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Andy Smith prosecuted this case on behalf of the federal government.
McClelland is scheduled to be sentenced on July 28, 2016. The bribery offense carries a maximum punishment of 15 years in prison. Any sentence imposed by the Court, however, will come after the Court has considered the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Accountant Charged with Filing False Tax ReturnRead the Press Release
TULSA , Oklahoma – United States Attorney Danny C. Williams Sr. and Special Agent in Charge R. Damon Rowe of the IRS-Criminal Investigation Dallas field office announced today that Nelson Wade Cagle, an Owasso accountant, has been charged in the United States District Court for the Northern District of Oklahoma with filing a false 2013 income tax return that failed to report money he allegedly stole from his former employer.
A single-count Information charges Nelson Wade Cagle, 32, filed a false Federal Individual Income Tax Return that omitted $583,290 of income from his 2013 return in violation of the Internal Revenue Code, Title 26, United States Code, Section 7206(1).
Cagle faces a maximum sentence of three years imprisonment and a fine of $250,000.
The Information was the result of an investigation by the Internal Revenue Service -Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney R. Trent Shores represents the United States.
The above named individual has been charged with a federal crime or crimes. An Information does not constitute evidence of guilt. An Information is a method of bringing charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
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Five Boston-Area Men Charged with Extortion and GamblingRead the Press Release
BOSTON – Five men were arrested and charged today in the U.S. District Court in Boston with conducting an illegal gambling business, making extortionate loans and collecting loans by extortionate means.
Joseph Yerardi, 62, of Newton; Anthony Corso, 51 of Cambridge; Michael Burke, 45, of Winthrop; Robert Conway, 27, of, Lynnfield; and Michael Habicht, 59 of Boston, were indicted on one count of operating an illegal gambling business from March 2015 through April 2016. Yerardi and Corso were also indicted on three counts of conspiracy to make and making extortionate extensions of credit. In addition, Yerardi, Corso, Burke and Conway were indicted on various counts of conspiring to collect and collecting extensions of credit by extortionate means from six debtors. The defendants will appear before U.S. District Court Magistrate Judge Jennifer C. Boal at 11:30 a.m.
The charge of operating an illegal gambling business provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The extortion charges each provide a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford, and Quincy Police Departments. The case is being prosecuted by Assistant U.S. Attorney Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Final Defendant Pleads Guilty in Adams County Prison Riot CaseRead the Press Release
Jackson, Miss. - Hector Miguel Diaz-Osuna, age 35, originally from Sinaloa, Mexico, entered a guilty plea today, before U.S. District Judge David C. Bramlette III, for the death of a correctional officer during a 2012 prison riot at the Adams County Correctional Center in Adams County, Mississippi, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Don Alway.
The prison riot occurred on May 20, 2012. Several correctional officers were assaulted and one correctional officer died as a result of injuries he received during the assaults. Other correctional officers were held hostage for several hours by the rioters. The total damage to the facility was estimated to be $1,305,142.00.
Diaz-Osuna will be sentenced on June 16, 2016 by Senior U.S. District Judge David C. Bramlette III and faces a maximum penalty of 15 years in prison. Diaz-Osuna was previously convicted of rioting and faces an additional 10 years in prison for that crime.
This case was investigated by the Federal Bureau of Investigation with assistance from the Adams County Sheriff’s Office. Assistant U.S. Attorneys Patrick Lemon and Jerry Rushing prosecuted the case.
Essex Man Sentenced to 17 Years in Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Robert John Wiseman, Jr., age 56, of Essex, Maryland, today to 17 years in prison, followed by lifetime supervised release, for distribution of child pornography. Chief Judge Blake also ordered that upon his release from prison, Wiseman must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Judge Blake enhanced Wiseman’s sentence upon finding that Wiseman had a pattern of sexually abusing minors. Testimony concerning the abuse of minors, who came forward in 1990 and 2013, was presented at today’s sentencing hearing. The victims from 1990 and from 2013 each alleged that Wiseman began sexually abusing them beginning when they were two years old until they were approximately eight or nine years old. The victim from 2013 further stated that Wiseman took pornographic photographs of the victim. Wiseman was never charged or convicted of these allegations.
According to Wiseman’s plea agreement, on July 17, 2014, an undercover Baltimore County Police detective was conducting an online investigation into the sharing of child pornography using file sharing networks. The detective located an IP address on one of the file sharing programs that was sharing at least one video file that the detective knew from previous investigations depicted children engaged in sexually explicit conduct. The detective downloaded the video file and tracked the IP address to the subscriber, a woman who lived in Essex. The detective obtained a search warrant for that address and on September 9, 2014, the search warrant was executed. The subscriber was at the residence along with Wiseman and two others, including a minor child.
During an audio recorded interview, Wiseman told the detective that he used a file sharing program on his desktop computer to search for and download child pornography. Wiseman also acknowledged that he was aware that other people were able to download files from him using the file sharing network. During the execution of the search warrant, a forensic review was conducted on Wiseman’s desktop computer. The detective located the video he had downloaded, as well as numerous other video and image files depicting children engaged in sexually explicit conduct, including prepubescent children and images of sadistic and masochistic conduct, or other depictions of violence. Law enforcement seized the desktop computer, two laptop computers, and 17 external hard drives, among other items. A subsequent forensic examination of the desktop computer found approximately 20 video files and over 10,000 image files of child pornography. Wiseman must forfeit the computers, hard drives and other digital media seized during the search.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the Baltimore County Police Department, FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.
Eagle Pass City Manager Indicted by Federal Grand Jury for Role in “Pay-To-Play” Bribery Scheme Involving Maverick County ContractRead the Press Release
This afternoon, FBI agents arrested 67-year-old Eagle Pass City Manager Hector Chavez, Sr., on federal bribery and obstruction charges related to his participation in a “pay-to-play” scheme involving a Maverick County landfill contract, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A four-count federal grand jury indictment, unsealed today, charges Chavez with one count each of paying a bribe to an agent of an organization receiving federal funds; falsification of records in a federal investigation; obstruction of justice; and false statement to a federal agent.
The indictment alleges that from about May 2012 through June 2012, Chavez, doing business as Chace Management, paid a total of approximately $20,000 in bribes to a Maverick County commissioner, intending to influence and reward that commissioner for securing a contract for the County landfill project. The indictment also alleges that Chavez forged a personal services contract to conceal from authorities the kickbacks he paid to the Maverick County commissioner; and, that he provided this falsified contract in response to a federal grand jury subpoena in an attempt to obstruct justice. The indictment further alleges that Chavez then made false statements to federal law enforcement agents concerning the legitimacy of this contract.
Upon conviction, Chavez faces up to 20 years in federal prison on the falsification of records and obstruction charges; up to ten years in federal prison for the bribery charge; and, up to five years in federal prison for making a false statement to a federal agent. Chavez is scheduled to have his initial appearance tomorrow at 9:00am in front of U.S. Magistrate Judge Victor Garcia in Del Rio.
This ongoing investigation is being conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Katherine Griffin is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Dominican Man Sentenced After Pleading Guilty to Illegally Reentering the United States After A Previous Deportation, and Other ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Hector Luis Arias-Ramirez, of the Dominican Republic, was sentenced to a time-served sentence after pleading guilty to a three-count indictment charging him with illegally re-entering the United States after having been previously deported, misrepresenting a social security number, and falsely claiming to be a U.S. citizen.
On October 20, 2015, Arias-Ramirez appeared at the Nashua office of the Department of Motor Vehicles and attempted to obtain a New Hampshire driver’s license. Arias-Ramirez had completed the forms necessary for issuance of a license using a name other than his true name and using a false social security number when he was approached by the New Hampshire State Police. Arias-Ramirez told the Trooper that Arias-Ramirez was born in Toa Baja, Puerto Rico.
A New Hampshire State Trooper contacted Immigration and Customs Enforcement – Enforcement and Removal Operations (ICE-ERO) for assistance in identifying the defendant. ICE-ERO Deportation Officers arrived at the DMV and, using a mobile fingerprinting kit, submitted the defendant’s fingerprints for comparison to databases of known fingerprints. The fingerprint impressions were a match to those previously taken from the defendant.
Arias-Ramirez will be deported after serving his sentence. Arias-Ramirez was previously deported to the Dominican Republic in 2012.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the New Hampshire State Police. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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District of Columbia Tax Return Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
A federal grand jury returned an indictment April 12 charging a District of Columbia tax return preparer with 35 counts of aiding in the preparation of false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Joann Little, 59, of Suitland, Maryland, made her initial appearance in the U.S. District Court for the District of Columbia this afternoon on the federal charges. According to the indictment, Little worked at a tax return preparation business called Instant Tax Service, presently operating under the name Speedy Tax Service, which is located at 1002 H Street, NE, in Washington, D.C. The indictment alleges that Little prepared false personal income tax returns for clients for tax years 2009 through 2014. She is alleged to have attached schedules that reported inflated or fictitious deductions, which resulted in fraudulently claimed income tax refunds.
If convicted, Little faces a maximum sentence of three years in prison and a fine of up to $250,000 on each count.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked special agents of Internal Revenue Service–Criminal Investigation, who investigated the case and Trial Attorney Jason Scheff and Assistant Chief Karen Kelly of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Credit Card Company Employee Sentenced in Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Godfred Obeng, age 38, of Glen Allen, Virginia today to three years in prison followed by five years of supervised release for conspiring to commit bank fraud, using an unauthorized access device and aggravated identity theft. Judge Hazel also ordered Obeng to pay restitution of $338,548.45.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his plea agreement and court documents, Obeng was an account services specialist at Capital One Bank, which issued credit card accounts to individuals. Beginning in June 2012, Obeng accessed customer accounts to steal the account numbers, cardholders’ names and addresses. Obeng shared this information with coconspirator Leslie Okyere in return for payment. From at least January 2012 to March 2013, other coconspirators used these credit card numbers, belonging to over 50 victims, to make fraudulent purchases by phone with The Home Depot.
For example, coconspirator Awah Essem recruited college students, promising that they could make some easy money. Essem directed the recruits to open a bank account and provide the bank account information to him. Essem told the recruits that money would be transferred into these accounts from The Home Depot. A conspirator would order materials with Home Depot stores, supplying a victim’s credit card information stolen by Obeng. Within a few days, a conspirator canceled the order and requested that the refund be placed on the coconspirator’s debit card, including the debit cards of coconspirators recruited by Essem.
The recruits, including Stanley Nmesirionye, Dosis Feludu and Gideon Turkson, would be required to withdraw the majority of the money from the bank account to give to Essem. The recruit could keep a portion, in some cases as much as $300.
During the course of the fraud scheme, the total loss attributable to Obeng’s conduct was at least $338,548.45.
Bertrand Awah Essem, age 27, of Beltsville, Maryland; Stanley Nmesirionye, age 24, of Owings Mills, Maryland; Dosis Feludu, age 25, of Salisbury, Maryland; Gideon Turkson age 24, of Burtonsville, Maryland and Leslie Okyere, age 33, of Hyattsville, previously pleaded guilty to their participation in the fraud scheme. Essem was sentenced on February 5, 2016 to 27 months in prison and ordered to pay restitution of $264,757.29. The remaining defendants await sentencing.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service and U.S. Department of the Treasury – OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Columbia Man Sentenced for Investor FraudRead the Press Release
Contact Person: Winston Holliday (803)-929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that ROBERT STUART LEBEN, age 53, of Columbia, South Carolina, was sentenced today in federal court in Columbia, South Carolina, for Conspiracy to Commit Wire Fraud, a violation of 18 U.S.C. § 371, in connection with an investor fraud scheme. United States District Judge Mary Geiger Lewis of Columbia sentenced Leben to 40 months of incarceration. Leben also was ordered to pay over $1.8 million in restitution to the individual victims.
Evidence presented at the change of plea hearing established that between 2008 and 2015, Leben controlled the Structured Finance Group (SFG), which purportedly invested in United States Treasury fixed-income securities called “T-STRIPS” on behalf of his clients. Leben developed a plan to buy discounted T-STRIPS and use the difference between the discounted price and the face value to generate income by trading in commodities. Leben used two third party intermediaries between himself and those giving him money to be invested. Records obtained by the FBI show correspondence from Leben to investors confirming the amount handed over and falsely representing to those individuals that they had active balances in their accounts. However, rather than buy T-STRIPS, Leben diverted the bulk of investor money for his own use, including purchasing a $500,000 house, a backyard pool and landscaping worth $180,000, vacations, surgical procedures, and various financial gifts to his family members. The investigation revealed eleven victims who lost approximately $2.3 million, some of which has been recouped.
The case was investigated by the Federal Bureau of Investigation, with assistance from the South Carolina Attorney General’s Office. Assistant United States Attorneys Winston Holliday and Jim May of the Columbia office prosecuted the case.
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Claremore Man Sentenced to 25 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
TULSA, Okla.—Kenneth O’Neal Batten was sentenced today to serve 300 months in federal prison for sexual exploitation of a child, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. In addition to the prison sentence, U.S. District Chief Judge Gregory K. Frizzell ordered Batten to be placed on supervised release for the remainder of his life.
“Today’s prison sentence is a result of the defendant’s unspeakable and heinous acts committed against his young daughter,” said U.S. Attorney Williams. “The Northern District of Oklahoma is committed to protecting a child’s opportunity and right to have a childhood that is free from sexual abuse, trauma, and exploitation.”
Batten, 37, of Claremore, Oklahoma, was charged on September 8, 2015. He pleaded guilty on January 12, 2016.
According to court documents, Batten admitted that, from June 28, 2015 to August 4, 2015, he produced videos of sexually explicit conduct involving his 17 month old daughter. He shipped and transported the sexually explicit videos and images via cell phone. In addition, Batten admitted to possessing over 1100 images and 211 videos of child pornography.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); and prosecuted by Assistant U.S. Attorney’s Clinton Johnson and Shannon Cozzoni.
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 U.S. Attorneys’ Offices, 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.justice.gov/psc.
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Chinese National Arrested for Illegally Attempting to Export High-Grade Carbon Fiber to ChinaRead the Press Release
Fuyi Sun, aka Frank, 52, a citizen of the People’s Republic of China, was arrested yesterday in connection with a scheme to illegally export to China, without a license, high-grade carbon fiber that is used primarily in aerospace and military applications.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York, Special Agent in Charge Angel M. Melendez of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York Field Office, Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce (DOC) Bureau of Industry and Security’s Office of Export Enforcement New York Field Office and Special Agent in Charge Craig Rupert of the Department of Defense’s Defense Criminal Investigative Service (DCIS) Northeast Field Office.
The complaint charges Sun with one count of attempting to violate the International Emergency Economic Powers Act (IEEPA), one count of conspiracy to violate IEEPA and one count of attempting to smuggle goods from the United States. Sun was arrested yesterday after traveling to the United States to meet with undercover agents (UCs) in an effort to obtain the specialized fiber which, due to its military and aerospace applications, requires an export license for export to China. Sun was presented last night before U.S. Magistrate Judge James L. Cott of the Southern District of New York.
“Sun allegedly attempted to procure high grade carbon fiber for a source he repeatedly identified as the Chinese military,” said Assistant Attorney General Carlin. “The carbon fiber – which has many aerospace and defense applications – is strictly controlled, and Sun expressed a willingness to pay a premium to skirt U.S. export laws. The National Security Division will continue to work to identify and hold accountable those who seek to violate IEEPA and other laws designed to protect our strategic commodities from those who may wish us harm.”
“As alleged, Fuyi Sun attempted for years to acquire high-grade carbon fiber for illegal export to China,” said U.S. Attorney Bharara. “Earlier this week, after traveling to New York from China to finalize the deal, Sun allegedly told undercover agents that the carbon fiber he sought was headed for the Chinese military, and then paid tens of thousands of dollars in cash to purchase two cases of it. And to avoid law enforcement detection, Sun allegedly directed the undercover agents to ship the carbon fiber in unmarked boxes and to falsify the shipping documents regarding the contents of the boxes.”
“Keeping items such as this high grade carbon fiber, which can be used for military applications, from falling into the wrong hands possibly endangering national security, is a job HSI takes very seriously,” said Special Agent in Charge Melendez. “Through this investigation, we have disrupted an alleged attempt to knowingly circumvent export controls and ensured this material will not be used for nefarious purposes.”
“A top priority of the Office of Export Enforcement is identifying and disrupting the illicit export of items for unauthorized military end-uses and users in China,” said Special Agent in Charge Carson. “Carbon fiber has military, missile and nuclear applications. In this case, working with our law enforcement partners we thwarted an alleged attempt to illegally export carbon fiber to China.”
“The recent arrest reinforces the commitment of the Defense Criminal Investigative Service (DCIS) to halting the spread of Defense technology to restricted nations,” said Special Agent in Charge Rupert. “The ongoing partnership with other law enforcement agencies is essential to shielding America's investment in defense.”
According to the allegations in the complaint that was filed yesterday in the Southern District of New York:
Since approximately 2011, Sun has attempted to acquire extremely high-grade carbon fiber, including Toray type M60JB-3000-50B carbon fiber (M60 Carbon Fiber). M60 Carbon Fiber has applications in aerospace technologies, unmanned aerial vehicles (commonly known as drones) and other government defense applications. Accordingly, M60 Carbon Fiber is strictly controlled – including that it requires a license for export to China – for nuclear non-proliferation and anti-terrorism reasons.
In furtherance of his attempts to illegally export M60 Carbon Fiber from the United States to China without a license, Sun contacted what he believed was a distributor of carbon fiber, but which was, in fact, an undercover entity created by HSI and staffed by HSI UCs. Sun inquired about purchasing the M60 Carbon Fiber without the required license. In the course of his years-long communications with the UCs, Sun repeatedly suggested various security measures that he believed would protect them from U.S. intelligence. Among other such measures, at one point, Sun instructed the undercover agents to use the term “banana” instead of “carbon fiber” in their communications. Consequently, soon thereafter he inquired about purchasing 450 kilograms of “banana” for more than $62,000. In order to avoid detection, Sun also suggested removing the identifying barcodes for the M60 Carbon Fiber prior to transshipment and further suggested that they identify the M60 Carbon Fiber as “acrylic fiber” in customs documents.
During meetings with the UCs, on or about April 11 and 12, 2016, among other things, Sun repeatedly suggested that the Chinese military was the ultimate end-user for the M60 Carbon Fiber he sought to acquire; claimed to have personally worked in the Chinese missile program; and asserted that he maintained a close relationship with the Chinese military, had a sophisticated understanding of the Chinese military’s need for carbon fiber and suggested that he would be supplying the M60 Carbon Fiber to the Chinese military or to institutions closely associated with it.
On or about April 12, 2016, Sun agreed to purchase two cases of M60 Carbon Fiber from the UCs and paid $23,000 in cash. He paid an additional $2,000 to the UCs as compensation for the risk he believed they were taking to illegally export the carbon fiber to China without a license.
Attempting to violate IEEPA and conspiracy to violate IEEPA each carry a maximum sentence of 20 years in prison. Attempting to smuggle goods from the United States carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the extraordinary investigative work of the HSI’s New York Field Office, DOC’s Bureau of Industry and Security’s Office of Export Enforcement and DCIS New York Office.
The case is being prosecuted Assistant U.S. Attorneys Matthew Podolsky, Patrick Egan, Sean Buckley and Nick Lewin of the Southern District of New York, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Sun Complaint
Children's Mercy Hospital Honored for Combating Crimes Against ChildrenRead the Press Release
More photos from the event are available in a Photo Gallery
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, presented the Crystal Kipper & Ali Kemp Memorial Award today to the SCAN (Safety Care And Nurturing) Clinic at Children’s Mercy Hospital. Dickinson also presented the Lifetime Achievement Award to former Assistant U.S. Attorney Katharine Fincham.
Today’s award ceremony was part of an annual event hosted by the U.S. Attorney’s Office, the Jackson County Prosecutor’s Office and VictimNet, a coalition of victim service providers and others committed to meeting the needs of crime victims in Jackson County, in conjunction with the observance of National Crime Victims’ Rights Week. This year’s theme – “Serving Victims. Building Trust. Restoring Hope.” – emphasizes the importance of providing needed services at the earliest stage of victimization.
Crystal Kipper & Ali Kemp Memorial Award
“Thousands of children, the most vulnerable victims of crime, have been served by the SCAN Clinic at Children’s Mercy Hospital,” Dickinson said. “The SCAN Clinic is a critical resource to protect children from further trauma, provide the resources they need for recovery and prosecute their abusers.”
The SCAN Clinic is designed to provide an unbiased resource to investigate child abuse based on medical evidence. The specialized medical exams can help identify overlooked abuse as well as disprove suspected abuse. The SCAN clinic serves children and adolescents along with the families involved in the allegations of abuse and neglect. The SCAN Clinic has open access and accepts referrals from all sources including physician offices, individuals and families.
The Division of Child Abuse and Neglect at Children’s Mercy Hospital cares for nearly 3,000 children each year by identifying, preventing and treating all forms of child abuse. The division consists of:
- The SCAN Clinic;
- The Child and Family Therapy Department;
- A multi-disciplinary team for kids under 6 years old dealing with any trauma, which is comprised of the Division of Developmental and Behavioral Sciences and the Department of Social Work.
Lifetime Achievement Award
Fincham supervised the Computer Crimes and Child Exploitation Unit in the U.S. Attorney’s Office before retiring last year.
Her 33-year-long career began as an Assistant Prosecuting Attorney in the Jackson County Prosecutor’s Office in 1982. While at the Jackson County Prosecutor’s Office Fincham led what was then called the Sex Crimes Unit. She not only handled some of the most difficult and gut-wrenching cases in the office, but she also mentored young attorneys and helped them develop the skills necessary to successfully prosecute sex offenders.
In 1995 Fincham joined the U.S. Attorney’s Office and worked in both the General Crimes Unit and the Narcotics Unit before moving to the Computer Crimes and Child Exploitation Unit. From 2001 until her retirement in 2015, Fincham prosecuted the most serious child exploitation cases in the Western District of Missouri.
“Kathy has helped shape the law when it comes to protecting victims from predators,” Dickinson said, “and has always been conscientious of how a prosecution can affect a crime victim.
“Kathy spent her legal career pursuing justice for victims of crime and has dedicated herself to protecting the most vulnerable members of our society,” Dickinson said. “It is my great pleasure to present this award to a fierce advocate and consummate professional.”
National Crime Victims’ Rights Week
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year during the local observance of National Crime Victims’ Rights Week to recognize the outstanding work of an individual or organization in protecting children from exploitation. The award was presented to the SCAN Clinic at Children’s Mercy Hospital in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Roger Kemp, Ali Kemp’s father, participated in today’s presentation; Anna Rhea, Crystal Kipper’s mother, was unable to attend this year’s event.
Today’s event at the Power and Light District also featured comments from Jackson County Prosecutor Jean Peters Baker and showcased various local victim service providers and a solidarity walk led by the Kansas City Mounted Patrol and Parents of Murdered Children. An art display featured the work of students of MyARTS.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorney’s Office has a dedicated Victim/Witness Unit that serves federal crime victims across the district’s 66 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. Victim/Witness personnel accompany victims to court hearings and trials to ensure that victim participation in court proceedings is meaningful and to answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorney’s Office Victim/Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at http://www.ovc.gov.
The Crystal Kipper & Ali Kemp Memorial Award
Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
Charleston drug dealer pleads guilty to Federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston heroin dealer pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Joshua Walls, 22, entered his guilty plea to distribution of heroin.
Walls admitted that on March 19, 2015, he sold heroin to a confidential informant working with the Charleston Police Department’s Special Enforcement Unit. The drug deal took place outside the defendant’s Fairview Drive residence in Charleston.
Walls faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 15, 2016.
The Charleston Police Department’s Special Enforcement Unit conducted the investigation. Assistant United States Attorney John J. Frail is handling the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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