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11 April 2016
Judge Gives Former Pittsburgh Man 70-Month Prison Sentence for Marijuana TraffickingRead the Press Release
ERIE, Pa. - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 70 months in jail and ordered to forfeit a 2008 BMW X5 SUV, a 2007 Lexus GS 350 Sedan, several cellular phones, a tablet computer and a laptop on his conviction of violating federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Vincent Jamal Carter, 38.
According to information presented to the court, from in and around September 2013 to in and around January 2015, Carter conspired with three co-defendants to possess with intent to distribute and distribute kilograms of marijuana that had been shipped to Erie from California.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Carter.
Jefferson County, Kentucky, Tax Return Preparer Charged with Aiding in the Preparation of False Tax ReturnsRead the Press Release
Falsified taxpayer deductions
Owes Internal Revenue Service $255,938
LOUISVILLE, Ky. – A Jefferson County, Kentucky tax preparer pleaded guilty in United States District Court, on March 28, 2016, before Magistrate Judge Colin H. Lindsay, to aiding in the preparation of false tax returns, announced United States Attorney John E. Kuhn, Jr.
Defendant Tiffany Elliott admitted to preparing fraudulent tax returns through her business, Tax Time, Inc., between January 5, 2010, and February 15, 2013, by creating false deductions for certain items, including losses from a sole proprietorship, or by creating false earned income from a sole proprietorship, while knowing that the taxpayers were not entitled to claim the specified deductions or earned income from a sole proprietorship.
As a term of the plea, Elliott signed and executed Internal Revenue Service (IRS) Form 870 to acknowledge she owes $255,938 to the IRS, exclusive of penalties and interest. Further, the charges carry a combined maximum prison term of 48 years, a combined fine of $1,600,000 and a one year term of supervised release.
Sentencing before Chief Judge Joseph H. McKinley Jr. is scheduled for July 5, 2016, in Louisville at 11:00am.
Assistant United States Attorney Amanda E. Gregory is prosecuting the case. The Internal Revenue Service (IRS) Criminal Investigation office is conducting the investigation.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jamaican national pleads guilty to identity theftRead the Press Release
CHARLESTON, W.Va. – A Jamaican national pleaded guilty today to identity theft, announced Acting United States Attorney Carol Casto. Roland Jason Duckett, 31, admitted that he used another person’s identity in a fraudulent attempt to obtain a United States passport.
Duckett admitted that he entered the United States from Jamaica in 2007 and then remained in the United States after his visa expired. In August 2015, he paid another individual for the use of identification documents, including that person’s birth certificate and Social Security card. Duckett used these documents to obtain a West Virginia driver’s license in the other individual’s name. Duckett admitted that in November 2015 he mailed a passport application from Charleston in an attempt to obtain a United States passport. His passport application was flagged for fraud by the United States Department of State and Duckett never received a U.S. passport. Agents with the Diplomatic Security Service of the United States Department of State uncovered the fraud and determined Duckett’s true identity.
Duckett faces up to five years in federal prison when he is sentenced on July 8, 2016.
The investigation of this case was conducted by the United States Department of State, Diplomatic Security Service, with the assistance of the West Virginia State Police. Assistant United States Attorney Blaire L. Malkin is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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Investment Advisor Sentenced for Near $2 Million FraudRead the Press Release
PHILADELPHIA - Michael Donnelly, 47, of Lecanto, Florida, was sentenced today to 99 months in prison for an investment scheme that bilked his friends and clients of nearly $2 million. Donnelly pleaded guilty on December 21, 2015, to one count of wire fraud and with one count of securities fraud. In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered restitution in the amount of $1,990,150.24, three years of supervised release, and a $200 special assessment.
Donnelly was an investment advisor and registered representative who served as president of Donnelly, Steen & Company, doing business as Coastal Investment Advisors, Inc., Coastal Equities, Inc., and Donnelly Advisors Group, which he also owned. Between November 2007 and August of 2014, Donnelly persuaded about a dozen investors, many of whom were senior citizens, to allow him to invest their money in securities or certificates of deposit. But instead of investing his clients’ money, Donnelly appropriated the investment funds for his own use.
Donnelly provided at least one client with brokerage account statements belonging to another client who held dozens of large cap stocks, in an effort to conceal that he had appropriated the monies for his own use. When an investing couple asked Donnelly for their funds, he persuaded another investor to partially liquidate an annuity under the guise that there was an opportunity to buy out another investor. His plan was to use those funds to pay the investing couple rather than buying out an investment held by another client.
The case was investigated by the FBI with assistance from the Securities and Exchange Commission Division of Enforcement. It was prosecuted by Assistant U.S. Attorney Linwood C. Wright, Jr.
Ice Methamphetamine Prosecution Sends 23 Individuals to Federal PrisonRead the Press Release
ABINGDON, VIRGINIA – The investigation into a major ice methamphetamine conspiracy that distributed large amounts of the drug into southwest Virginia, North Carolina, Tennessee, and elsewhere concluded last week with the sentencing of the final defendant, United States Attorney John P. Fishwick Jr. announced today.
Antonio Hernandez Mohedano, of Barstow, California, previously pled guilty to conspiracy to distribute methamphetamine. Last week in District Court, Mohedano was sentenced to 210 months of federal incarceration.
“These individuals brought numerous pounds of a very pure form of methamphetamine into our area from western states—methamphetamine most likely made in Mexico. They imported this poison into our communities simply to make a profit, without any regard for the devastating damage it causes to those addicted to this drug and the broader community,” United States Attorney John P. Fishwick Jr. said today. “These major drug investigations take significant time and resources, and the law enforcement agencies that participated in dismantling this conspiracy should be commended for their important work.”
Mohedano is the last of 24 defendants convicted as a result of a long-running investigative operation headed by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Drug Enforcement Administration. The operation dismantled a methamphetamine distribution network that brought numerous pounds of “ice” methamphetamine—a particularly pure form of that drug—into the area between approximately 2011 and 2014. Most of this ice methamphetamine was brought into southwest Virginia and elsewhere from sources of supply in Arizona or California. The ice methamphetamine was transported to the area in a variety of ways, including by being hidden in live animals and transported over interstate highways, and via common carriers, like UPS. Return payment to the sources of supply out west occurred through hand-to-hand cash payments and various types of electronic money transactions, including “Green Dot” prepaid cards.
The District Court sentenced 23 defendants in this case to a term of imprisonment. In addition, the District Court ordered various defendants in the case to forfeit money and property, including real property used in the crime, firearms, and ammunition.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Washington County Sheriff’s Office, the Russell County Sheriff’s Office, the Tazewell County Sheriff’s Office, the Smyth County Sheriff’s Office, the Bristol, Virginia Sheriff’s Office, the Abingdon Police Department, the Bristol, Virginia Police Department, the Virginia State Police, the U.S. Marshals Service and the U.S. Drug Enforcement Administration. Special Assistant United States Attorney Kevin L. Jayne prosecuted the case for the United States.
Husband and Wife Owners of Chicago Physical Therapy Company Indicted in Schemes to Defraud Medicare and Force LaborRead the Press Release
A Chicago couple was charged in an indictment with a scheme to use their health care business to defraud Medicare out of millions of dollars, while also conspiring to employ a woman against her will.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, Special Agent in Charge James D. Robnett of the Internal Revenue Service-Criminal Investigation (IRS-CI) Chicago Field Office, Acting Special Agent in Charge James M. Gibbons of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Chicago Field Office, Special Agent in Charge James Vanderberg of the U.S. Department of Labor’s Office of Inspector General-Office of Labor Racketeering and Fraud Investigations Chicago Region and Cook County State’s Attorney Anita Alvarez made the announcement.
Richard Tinimbang, 38, and his wife, Maribel Tinimbang, 40, both of Chicago, were charged with participating in a $45 million fraud scheme involving three Lincolnwood, Illinois, based home health care companies owned by Richard Tinimbang’s mother, Josephine Tinimbang. The companies allegedly paid bribes and kickbacks to obtain Medicare beneficiaries, ignored doctors who refused to certify beneficiaries as being in need of home health care and falsified medical records to make patients appear sicker than they actually were.
This indictment is part of a larger health care fraud investigation in which 13 others have been charged. Three defendants have pleaded guilty and await sentencing; the 10 others, including Josephine Tinimbang, are awaiting trial. Richard and Maribel Tinimbang’s business, Patients First Physical Therapy Inc., purportedly provided in-home therapy services to patients of three home health care companies – Donnarich Home Health Care Inc., Josdan Home Health Care Inc. and Pathways Home Health Services LLC. According to the indictment, several individuals who worked at Donnarich, Josdan and Pathways conspired to commit health care fraud and laundered money to conceal the scheme. From 2008 through 2014, the scheme resulted in $45 million in losses to Medicare, according to the indictment.
Richard Tinimbang also allegedly submitted fraudulent forms to the U.S. Department of Homeland Security in order to allow a Filipino woman to legally work in the United States, stating that the woman would be hired as a business analyst at Josdan, thus qualifying her for an H-1B visa. However, according to the indictment, when the woman arrived in the United States, Richard Tinimbang put her to work full time as a nanny and housekeeper for him, his wife and others. The couple allegedly attempted to induce the woman to sign a servitude contract that provided for payment of $66 per day – regardless of the number of hours worked – for a term of seven years. According to allegations in the indictment, the contract further provided that if the woman quit before the seventh year, she would be required to pay $25,000 in damages. The couple allegedly threatened to send her back to the Philippines without being paid for the work she had already performed in order to force her to sign the contract and surrender her passport.
The couple and Josephine Tinimbang used proceeds from the fraud to make numerous personal purchases, including shares of stock, vehicles, real estate and jewelry, according to the indictment. The indictment alleges that the couple concealed the money they had pocketed by falsely making it appear to be business expenses.
Richard Tinimbang is charged with one count of conspiracy to defraud Medicare, one count of conspiracy to pay or receive health care kickbacks, two counts of paying kickbacks to induce referrals of Medicare beneficiaries, one count of money laundering conspiracy, one count of conspiracy to obtain forced labor and one count of presenting false statements in an immigration document. Maribel Tinimbang is charged with one count of conspiracy to defraud Medicare, one count of money laundering conspiracy and one count of conspiracy to obtain forced labor.
An indictment is merely a charge and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Medicare Fraud Strike Force and the Cook County Human Trafficking Task Force investigated the case. Trial Attorney Brooke Harper of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Husband and Wife Owners of Chicago Physical Therapy Company Indicted in Scheme to Bilk Medicare and Employ Housekeeper Against Her WillRead the Press Release
CHICAGO — A Chicago couple used their health care business to bilk Medicare out of millions of dollars while also conspiring to force a housekeeper to work against her will, according to an indictment returned in federal court in Chicago.
RICHARD TINIMBANG and his wife, MARIBEL TINIMBANG, participated in a $45 million fraud scheme involving three Lincolnwood-based home health care companies owned by Richard Tinimbang’s mother, according to the indictment. The companies paid bribes and kickbacks to obtain Medicare beneficiaries, ignored doctors who refused to certify beneficiaries as being in need of home health care, and falsified medical records to make patients appear sicker than they actually were, the indictment states. The couple and Richard Tinimbang’s mother, JOSEPHINE TINIMBANG, allegedly used proceeds from the fraud to make numerous personal purchases, including shares of stock, vehicles, real estate, and jewelry.
Richard Tinimbang, 38, of Chicago, is charged with one count of conspiracy to defraud Medicare, one count of conspiracy to pay or receive health care kickbacks, two counts of paying kickbacks to induce referrals of Medicare beneficiaries, one count of money laundering conspiracy, one count of conspiracy to obtain forced labor, and one count of presenting false statements in an immigration document.
Maribel Tinimbang, 40, of Chicago, is charged with one count of conspiracy to defraud Medicare, one count of money laundering conspiracy, and one count of conspiracy to obtain forced labor.
An arraignment date has not yet been set.
The charges against Richard and Maribel Tinimbang are contained in a third superseding indictment returned last week in U.S. District Court in Chicago. The case is part of a larger health care fraud investigation that previously resulted in charges against 13 others. Three defendants have pleaded guilty and are awaiting sentencing, while the other ten, including Josephine Tinimbang, are awaiting trial. The investigation found that several individuals who worked at three related home health care companies – Donnarich Home Health Care Inc., Josdan Home Health Care Inc., and Pathways Home Health Services LLC – conspired to commit health care fraud and laundered money to conceal the scheme. The fraud started in 2008 and continued into 2014, resulting in a loss to Medicare of $45 million, according to the indictment.
Richard and Maribel Tinimbang’s business, Patients First Physical Therapy Inc., purported to provide in-home therapy services to patients of the three companies. The indictment states the couple concealed the money they had pocketed by falsely making it appear to be business expenses, then used it to purchase personal items, including a 5,000-square-foot residence in Lincolnwood.
In addition to the health care fraud charges, Richard Tinimbang is accused of submitting fraudulent forms to the U.S. Department of Homeland Security to allow a Filipino woman to legally work in the United States. Richard Tinimbang stated in the form that the woman would be hired as a business analyst at Josdan, thus qualifying her for an H-1B visa. When the woman arrived in the United States, Richard Tinimbang put her to work full time as a nanny and housekeeper for him, his wife and others, the indictment states.
The couple allegedly attempted to induce the woman to sign a servitude contract that provided for payment of $66 per day – regardless of the number of hours worked – for a term of seven years. The contract further provided that if the woman quit before the seventh year, she would be required to pay $25,000 in damages, the indictment states. To force the woman to surrender her passport and sign the contract, the couple threatened to send her back to the Philippines without being paid for the work she had already performed, according to the indictment.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in- Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General; James D. Robnett, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; James M. Gibbons, Acting Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); James Vanderberg, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Cook County State’s Attorney Anita Alvarez.
The investigation was carried out by the Medicare Fraud Strike Force, which consists of agents from the FBI and the U.S. Department of Health and Human Services, and prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Justice Department and HHS to prevent fraud and enforce anti-fraud laws around the country.
The case was also investigated by the Cook County Human Trafficking Task Force, a multi-disciplinary unit that brings law enforcement agencies together to work on human trafficking cases.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Trial Attorney Brooke Harper of the Justice Department’s Criminal Division Fraud Section.
To report healthcare fraud or to learn more about it, logon to: StopMedicareFraud.gov.
Indictment
Home Health Care Agency Owner Pleads Guilty in $4 Million Detroit-Area Medicare Fraud SchemeRead the Press Release
The owner and operator of a Detroit-area home health care agency pleaded guilty today for his participation in a $4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Naseem Minhas, 49, of West Bloomfield, Michigan, pleaded guilty before U.S. District Judge Nancy G. Edmonds of the Eastern District of Michigan to count of conspiracy to commit health care fraud. Sentencing has been scheduled for Sept. 6, 2016, before Judge Edmonds.
According to his plea agreement, Minhas was the owner and operator of TriCounty Home Care Services Inc. (TriCounty), a home health care agency that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries in the greater Detroit metropolitan area. According to admissions made as part of his plea agreement, Minhas paid a physician and recruiters to refer Medicare beneficiaries to TriCounty and sign medical documents falsely certifying that they required home health care. Minhas, a licensed physical therapist, also admitted that he assisted in creating fake patient files to make it appear as though the patients needed and received services that were unnecessary or not provided.
Between February 2009 and November 2013, Medicare paid TriCounty $4 million as a result of these false and fraudulent claims, Minhas admitted.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. Fraud Section Trial Attorneys Elizabeth Young and Thomas Tynan, Fraud Section Special Trial Attorney Katie R. Fink and Assistant U.S. Attorney Katherine Wagner of the Eastern District of Michigan are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Grant County, WV woman pleads guilty to painkiller traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Mary Kimble, 34, of Cabins, West Virginia, pled guilty to selling morphine, United States Attorney William J. Ihlenfeld, II, announced.
Kimble sold morphine near Petersburg City Park, a playground in Grant County, West Virginia. She pled guilty to one count of “Distribution of Morphine within 1,000 feet of a Protected Location – Aiding and Abetting.” She faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Goldman Sachs to Pay More than $5 Billion for Misconduct Relating to Mortgage-Backed SecuritiesRead the Press Release
SACRAMENTO, Calif. – The Justice Department, along with federal and state partners, announced today a $5.06 billion settlement with Goldman Sachs related to Goldman’s conduct in the packaging, securitization, marketing, sale, and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007. The resolution announced today requires Goldman to pay a $2.385 billion in a civil penalty under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) and also requires the bank to provide $1.8 billion in consumer relief, including relief to underwater homeowners, distressed borrowers, and affected communities in the form of loan forgiveness and financing for affordable housing. Goldman will also pay $875 million to resolve claims by other federal entities and state claims. Investors, including federally insured financial institutions, suffered billions of dollars in losses from investing in RMBS issued and underwritten by Goldman between 2005 and 2007.
The FIRREA penalty announced today is the largest recovery ever in a case handled by the U.S. Attorney’s Office for the Eastern District of California. The settlement is the latest in a string of five multibillion dollar settlements announced by the RMBS Working Group. Of those five, two have been handled by the Eastern District of California — today’s settlement and the $2 billion FIRREA penalty obtained from JPMorgan Chase as part of the $13 billion settlement with the RMBS Working Group announced in November 2013.
“Today’s settlement is yet another acknowledgment by one of our leading financial institutions that it did not live up to the representations it made to investors about the products it was selling,” said U.S. Attorney Benjamin B. Wagner. “Goldman’s conduct in exploiting the RMBS market contributed to an international financial crisis that people across the country, including many in the Eastern District of California, continue to struggle to recover from. I am gratified that this office has developed investigations, first against JPMorgan Chase and now against Goldman Sachs, that have led to significant civil settlements that hold bad actors in this market accountable. The results obtained by this office and other members of the RMBS Working Group continue to send a message to Wall Street that we remain committed to pursuing those responsible for the financial crisis.”
The $2.385 billion civil monetary penalty resolves claims under FIRREA, which authorizes the federal government to impose civil penalties against financial institutions that violate various predicate offenses, including wire and mail fraud. The settlement expressly preserves the government’s ability to bring criminal charges against Goldman, and does not release any individuals from potential criminal or civil liability. In addition, as part of the settlement, Goldman agreed to fully cooperate with any ongoing investigations related to the conduct covered by the agreement.
Of the $875 million Goldman has agreed to pay to settle claims by various other federal and state entities, Goldman will pay: $575 million to settle claims by the National Credit Union Administration, $37.5 million to settle claims by the Federal Home Loan Bank of Des Moines as successor to the Federal Home Loan Bank of Seattle, $37.5 million to settle claims by the Federal Home Loan Bank of Chicago, $190 million to settle claims by the state of New York, $25 million to settle claims by the state of Illinois, and $10 million to settle claims by the state of California.
Goldman will pay out the remaining $1.8 billion in the form of relief to aid consumers harmed by its unlawful conduct. $1.52 billion of that relief will be paid out pursuant to an agreement with the United States that Goldman will provide loan modifications, including loan forgiveness and forbearance, to distressed and underwater homeowners throughout the country, as well as financing for affordable rental and for-sale housing throughout the country. This agreement represents the largest commitment in any RMBS agreement to provide financing for affordable housing—a crucial need following the turmoil of the financial crisis. $280 million will be paid out by Goldman pursuant to an agreement separately negotiated with the state of New York.
The settlement includes a statement of facts to which Goldman has agreed. That statement of facts describes how Goldman made false and misleading representations to prospective investors about the characteristics of the loans it securitized and the ways in which it would protect investors in Goldman RMBS from harm (the quotes in the following paragraphs are from that agreed-upon statement of facts, unless otherwise noted):
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Goldman told investors in offering documents that “[l]oans in the securitized pools were originated generally in accordance with the loan originator’s underwriting guidelines,” other than possible situations where “when the originator identified ‘compensating factors’ at the time of origination.” But Goldman has today acknowledged that, “Goldman received information indicating that, for certain loan pools, significant percentages of the loans reviewed did not conform to the representations made to investors about the pools of loans to be securitized.”
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Specifically, Goldman has now acknowledged that, even when the results of its due diligence on samples of loans from those pools “indicated that the unsampled portions of the pools likely contained additional loans with credit exceptions, Goldman typically did not . . . identify and eliminate any additional loans with credit exceptions.” Goldman has acknowledged that it “failed to do this even when the samples included significant numbers of loans with credit exceptions.”
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Goldman’s Mortgage Capital Committee, which included senior mortgage department personnel and employees from Goldman’s credit and legal departments, was required to approve every RMBS issued by Goldman. Goldman has now acknowledged that “[t]he Mortgage Capital Committee typically received . . . summaries of Goldman’s due diligence results for certain of the loan pools backing the securitization,” but that “[d]espite the high numbers of loans that Goldman had dropped from the loan pools, the Mortgage Capital Committee approved every RMBS that was presented to it between December 2005 and 2007.” As one example, in early 2007, Goldman approved and issued a subprime RMBS backed by New Century loans, after Goldman’s due diligence process found that one of the loan pools to be securitized included loans originated with “[e]xtremely aggressive underwriting,” and where Goldman dropped 25 percent of the loans from the due diligence sample on that pool without reviewing the unsampled 70 percent of the pool to determine whether those loans had similar problems.
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Goldman has acknowledged that, for one August 2006 RMBS, the due diligence results for some of the loan pools resulted in an “unusually high” percentage of loans with credit and compliance defects. The Mortgage Capital Committee was presented with a summary of these results and asked “How do we know that we caught everything?” One transaction manager responded “we don’t.” Another transaction manager responded, “Depends on what you mean by everything? Because of the limited sampling . . . we don’t catch everything . . .” Goldman has now acknowledged that the Mortgage Capital Committee approved this RMBS for securitization without requiring any further due diligence.
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Goldman made detailed representations to investors about its “counterparty qualification process” for vetting loan originators, and told investors and one rating agency that Goldman would engage in ongoing monitoring of loan sellers. Goldman has now acknowledged however, that it “received certain negative information regarding the originators’ business practices” and that much of this information was not disclosed to investors.
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For example, Goldman has now acknowledged that in late 2006 it conducted an internal analysis of the underwriting guidelines of Fremont Investment & Loan (an originator), which found many of Fremont’s guidelines to be “off market” or “at the aggressive end of market standards.” Instead of disclosing its view of Fremont’s underwriting, Goldman has acknowledged that it “[u]ndertook a significant marketing effort” to tell investors about what Goldman called Fremont’s “commitment to loan quality over volume” and “significant enhancements to Fremont underwriting guidelines.” Fremont was shut down by federal regulators within several months of these statements.
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In another example, Goldman was aware in early-mid 2006 of certain issues with Countrywide Financial Corporation’s origination process, including a pattern of non-responsiveness and inability to provide sufficient staff to handle the numerous loan pools Countrywide was selling. In April 2006, while Goldman was preparing an RMBS backed by Countrywide loans for securitization, a Goldman mortgage department manager circulated a “very bullish” equity research report that recommended the purchase of Countrywide stock. Goldman’s head of due diligence, who had just overseen the due diligence on six Countrywide pools, responded “If they only knew …”
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The Eastern District of California’s investigation into Goldman’s conduct in connection with RMBS was led by Assistant U.S. Attorneys Colleen Kennedy and Kelli Taylor, with the support of the Federal Housing Finance Agency’s Office of the Inspector General (FHFA-OIG) and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
“Goldman Sachs had a fiduciary responsibility to investors, which they blatantly side stepped,” said Deputy Inspector General for Investigation Rene Febles for the FHFA-OIG. “They knowingly put investors at risk and in so doing contributed significantly to the financial crisis. The losses caused by this irresponsible behavior deeply affected not only financial institutions but also taxpayers and one can only hope that Goldman Sachs has learned the difference between risk and deceit. Two Federal Home Loan Banks suffered significant losses so we are pleased to see both entities receive a portion of this settlement. We will continue to work with our law enforcement partners to hold those accountable who have engaged in misconduct.”
“Goldman took $10 billion in TARP bailout funds knowing that it had fraudulently misrepresented to investors the quality of residential mortgages bundled into mortgage backed securities,” said Special Inspector General Christy Goldsmith Romero for TARP. “Many of these toxic securities were traded in a taxpayer funded bailout program that was designed to unlock frozen credit markets during the crisis. While crisis investigations take time, SIGTARP is committed to working with our law enforcement partners to protect taxpayers and bring accountability and justice.”
The settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, which has recovered tens of billions of dollars on behalf of American consumers and investors for claims against large financial institutions arising from misconduct related to the financial crisis. The RMBS Working Group brings together attorneys, investigators, analysts, and staff from multiple state and federal agencies, including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the U.S. Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, SIGTARP, the Federal Reserve Board’s OIG, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network and multiple state Attorneys General offices around the country. The RMBS Working Group is led by Director Joshua Wilkenfeld and five co-chairs: Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Director Andrew Ceresney of the SEC’s Division of Enforcement, U.S. Attorney John Walsh of the District of Colorado, and New York Attorney General Eric Schneiderman.
Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at www.StopFraud.gov.
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Goldman Sachs Agrees to Pay More than $5 Billion in Connection with Its Sale of Residential Mortgage Backed SecuritiesRead the Press Release
The Justice Department, along with federal and state partners, announced today a $5.06 billion settlement with Goldman Sachs related to Goldman’s conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007. The resolution announced today requires Goldman to pay $2.385 billion in a civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and also requires the bank to provide $1.8 billion in other relief, including relief to underwater homeowners, distressed borrowers and affected communities, in the form of loan forgiveness and financing for affordable housing. Goldman will also pay $875 million to resolve claims by other federal entities and state claims. Investors, including federally-insured financial institutions, suffered billions of dollars in losses from investing in RMBS issued and underwritten by Goldman between 2005 and 2007.
“This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail,” said Acting Associate Attorney General Stuart F. Delery. “This $5 billion settlement includes a $1.8 billion commitment to help repair the damage to homeowners and communities that Goldman acknowledges resulted from its conduct, and it makes clear that no institution may inflict this type of harm on investors and the American public without serious consequences.”
“Today’s settlement is another example of the department’s resolve to hold accountable those whose illegal conduct resulted in the financial crisis of 2008,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Viewed in conjunction with the previous multibillion-dollar recoveries that the department has obtained for similar conduct, this settlement demonstrates the pervasiveness of the banking industry’s fraudulent practices in selling RMBS, and the power of the Financial Institutions Reform, Recovery and Enforcement Act as a tool for combatting this type of wrongdoing.”
“Today’s settlement is yet another acknowledgment by one of our leading financial institutions that it did not live up to the representations it made to investors about the products it was selling,” said U.S. Attorney Benjamin B. Wagner of the Eastern District of California. “Goldman’s conduct in exploiting the RMBS market contributed to an international financial crisis that people across the country, including many in the Eastern District of California, continue to struggle to recover from. I am gratified that this office has developed investigations, first against JPMorgan Chase and now against Goldman Sachs, that have led to significant civil settlements that hold bad actors in this market accountable. The results obtained by this office and other members of the RMBS Working Group continue to send a message to Wall Street that we remain committed to pursuing those responsible for the financial crisis.”
The $2.385 billion civil monetary penalty resolves claims under FIRREA, which authorizes the federal government to impose civil penalties against financial institutions that violate various predicate offenses, including wire and mail fraud. The settlement expressly preserves the government’s ability to bring criminal charges against Goldman, and does not release any individuals from potential criminal or civil liability. In addition, as part of the settlement, Goldman agreed to fully cooperate with any ongoing investigations related to the conduct covered by the agreement.
Of the $875 million Goldman has agreed to pay to settle claims by various other federal and state entities: Goldman will pay $575 million to settle claims by the National Credit Union Administration, $37.5 million to settle claims by the Federal Home Loan Bank of Des Moines as successor to the Federal Home Loan Bank of Seattle, $37.5 million to settle claims by the Federal Home Loan Bank of Chicago, $190 million to settle claims by the state of New York, $25 million to settle claims by the state of Illinois and $10 million to settle claims by the state of California.
Goldman will pay out the remaining $1.8 billion in the form of relief to aid consumers harmed by its unlawful conduct. $1.52 billion of that relief will be paid out pursuant to an agreement with the United States that Goldman will provide loan modifications, including loan forgiveness and forbearance, to distressed and underwater homeowners throughout the country, as well as financing for affordable rental and for-sale housing throughout the country. This agreement represents the largest commitment in any RMBS agreement to provide financing for affordable housing—a crucial need following the turmoil of the financial crisis. $280 million will be paid out by Goldman pursuant to an agreement separately negotiated with the state of New York.
The settlement includes a statement of facts to which Goldman has agreed. That statement of facts describes how Goldman made false and misleading representations to prospective investors about the characteristics of the loans it securitized and the ways in which Goldman would protect investors in its RMBS from harm (the quotes in the following paragraphs are from that agreed-upon statement of facts, unless otherwise noted):
- Goldman told investors in offering documents that “[l]oans in the securitized pools were originated generally in accordance with the loan originator’s underwriting guidelines,” other than possible situations where “when the originator identified ‘compensating factors’ at the time of origination.” But Goldman has today acknowledged that, “Goldman received information indicating that, for certain loan pools, significant percentages of the loans reviewed did not conform to the representations made to investors about the pools of loans to be securitized.”
- Specifically, Goldman has now acknowledged that, even when the results of its due diligence on samples of loans from those pools “indicated that the unsampled portions of the pools likely contained additional loans with credit exceptions, Goldman typically did not . . . identify and eliminate any additional loans with credit exceptions.” Goldman has acknowledged that it “failed to do this even when the samples included significant numbers of loans with credit exceptions.”
- Goldman’s Mortgage Capital Committee, which included senior mortgage department personnel and employees from Goldman’s credit and legal departments, was required to approve every RMBS issued by Goldman. Goldman has now acknowledged that “[t]he Mortgage Capital Committee typically received . . . summaries of Goldman’s due diligence results for certain of the loan pools backing the securitization,” but that “[d]espite the high numbers of loans that Goldman had dropped from the loan pools, the Mortgage Capital Committee approved every RMBS that was presented to it between December 2005 and 2007.” As one example, in early 2007, Goldman approved and issued a subprime RMBS backed by loans originated by New Century Mortgage Corporation, after Goldman’s due diligence process found that one of the loan pools to be securitized included loans originated with “[e]xtremely aggressive underwriting,” and where Goldman dropped 25 percent of the loans from the due diligence sample on that pool without reviewing the unsampled 70 percent of the pool to determine whether those loans had similar problems.
- Goldman has acknowledged that, for one August 2006 RMBS, the due diligence results for some of the loan pools resulted in an “unusually high” percentage of loans with credit and compliance defects. The Mortgage Capital Committee was presented with a summary of these results and asked “How do we know that we caught everything?” One transaction manager responded “we don’t.” Another transaction manager responded, “Depends on what you mean by everything? Because of the limited sampling . . . we don’t catch everything . . .” Goldman has now acknowledged that the Mortgage Capital Committee approved this RMBS for securitization without requiring any further due diligence.
- Goldman made detailed representations to investors about its “counterparty qualification process” for vetting loan originators, and told investors and one rating agency that Goldman would engage in ongoing monitoring of loan sellers. Goldman has now acknowledged, however, that it “received certain negative information regarding the originators’ business practices” and that much of this information was not disclosed to investors.
- For example, Goldman has now acknowledged that in late 2006 it conducted an internal analysis of the underwriting guidelines of Fremont Investment & Loan (an originator), which found many of Fremont’s guidelines to be “off market” or “at the aggressive end of market standards.” Instead of disclosing its view of Fremont’s underwriting, Goldman has acknowledged that it “[u]ndertook a significant marketing effort” to tell investors about what Goldman called Fremont’s “commitment to loan quality over volume” and “significant enhancements to Fremont underwriting guidelines.” Fremont was shut down by federal regulators within several months of these statements.
- In another example, Goldman was aware in early-mid 2006 of certain issues with Countrywide Financial Corporation’s origination process, including a pattern of non-responsiveness and inability to provide sufficient staff to handle the numerous loan pools Countrywide was selling. In April 2006, while Goldman was preparing an RMBS backed by Countrywide loans for securitization, a Goldman mortgage department manager circulated a “very bullish” equity research report that recommended the purchase of Countrywide stock. Goldman’s head of due diligence, who had just overseen the due diligence on six Countrywide pools, responded “If they only knew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .”
- Meanwhile, as Goldman has acknowledged in this statement of facts, “[Around the end of 2006], Goldman employees observed signs of uncertainty in the residential mortgage market [and] by March 2007, Goldman had largely halted new purchases of subprime loan pools.”
Assistant U.S. Attorneys Colleen Kennedy and Kelli Taylor of the Eastern District of California investigated Goldman’s conduct in connection with RMBS, with the support of the Federal Housing Finance Agency’s Office of the Inspector General (FHFA-OIG) and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
“Goldman Sachs had a fiduciary responsibility to investors, which they blatantly side stepped,” said Deputy Inspector General for Investigation Rene Febles of FHFA-OIG. “They knowingly put investors at risk and in so doing contributed significantly to the financial crisis. The losses caused by this irresponsible behavior deeply affected not only financial institutions but also taxpayers and one can only hope that Goldman Sachs has learned the difference between risk and deceit. Two Federal Home Loan Banks suffered significant losses so we are pleased to see both entities receive a portion of this settlement. We will continue to work with our law enforcement partners to hold those accountable who have engaged in misconduct.”
“Goldman took $10 billion in TARP bailout funds knowing that it had fraudulently misrepresented to investors the quality of residential mortgages bundled into mortgage backed securities,” said Special Inspector General Christy Goldsmith Romero for TARP. “Many of these toxic securities were traded in a taxpayer funded bailout program that was designed to unlock frozen credit markets during the crisis. While crisis investigations take time, SIGTARP is committed to working with our law enforcement partners to protect taxpayers and bring accountability and justice.”
The settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, which has recovered tens of billions of dollars on behalf of American consumers and investors for claims against large financial institutions arising from misconduct related to the financial crisis. The RMBS Working Group brings together attorneys, investigators, analysts and staff from multiple state and federal agencies, including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the U.S. Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, SIGTARP, the Federal Reserve Board’s OIG, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network and multiple state Attorneys General offices around the country. The RMBS Working Group is led by Director Joshua Wilkenfeld and five co-chairs: Principal Deputy Assistant Attorney General Mizer, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Director Andrew Ceresney of the SEC’s Division of Enforcement, U.S. Attorney John Walsh of the District of Colorado and New York Attorney General Eric Schneiderman. This settlement is the fifth multibillion-dollar RMBS settlement announced by the working group.
Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at www.StopFraud.gov.
Four Individuals Recognized as part of National Crime Victims’ Rights Week, April 10-16Read the Press Release
United States Attorney Randolph J. Seiler announced that four individuals will be awarded Department of Justice Certificates of Appreciation as part of National Crime Victims’ Rights Week 2016. The U.S. Attorney’s Office will present the honorees with their awards and provide brief remarks in recognition of their outstanding dedication, service, and contributions on behalf of crime victims.
National Crime Victims’ Rights Week honors and celebrates the achievements of the past thirty years in securing rights, protections, and services for victims. The bipartisan Victims of Crime Act (VOCA), passed by Congress in 1984, created a national fund to ease victims’ suffering. Financed by fines and penalties paid by offenders, the Crime Victims Fund supports services for victims of all types of crime, including assistance for homicide survivors, survivors of child sexual abuse, and victims of human trafficking, as well as rape crisis centers and domestic violence programs among others. VOCA also funds victim compensation programs that pay victims’ out-of-pocket expenses - such as counseling, funeral expenses, and lost wages.
The first ceremony will be held in Pine Ridge on Friday, April 15, 2016, at the Justice Center for the People, located at 977 Horse Thief Road. It will be held prior to the Multidisciplinary Task Force Meeting at 10:00 a.m. MST. The individual honored at this event will be Cheryl Renee Bourque. Ms. Bourque is an enrolled citizen of the Muscogee (Creek) Nation of Oklahoma. She is currently a Victim Specialist with the Bureau of Indian Affairs, Office of Justice Services, assigned to the Pine Ridge Agency in South Dakota.
Ms. Bourque has over 13 years of experience dealing with victims of crime in Indian country, working on several different reservations, including Oklahoma’s complex jurisdiction. For the last 25 months, she has been assigned to the Pine Ridge Agency where she has helped literally hundreds of crime victims. The victims have benefitted from her extensive knowledge and experience in dealing with violent crimes, as she guided them through some of the most traumatic times in their lives. Ms. Bourque’s experience as an advocate and law enforcement officer provides a unique perspective on systems’ response in addressing victim’s needs. She has held several different positions on boards and task forces and has been a leading voice in helping to raise awareness about the unique issues facing victims in Indian country.
Ms. Bourque has held positions as the Executive Director for the Oklahoma Tribal Coalition, as a state and tribal domestic violence/sexual assault advocate, and as a law enforcement officer. She is a contract/adjunct instructor with the Federal Law Enforcement Training Center, based in Glynco, Georgia, and she has traveled across the nation to instruct on issues pertaining to domestic violence, and sexual assault and stalking, with an emphasis on serving victims of crime in Indian country.
The second ceremony will be in Eagle Butte on Thursday, April 28, 2016. It will also be held prior to the Multidisciplinary Task Force Meeting at 10:00 a.m. MST. The two award recipients will be Cheyenne River Sioux Tribe Detective Russell Leaf and Federal Bureau of Investigation Special Agent James Asher.
Cheyenne River Sioux Tribe Criminal Investigator Russell Leaf has served the public as a law enforcement officer since 1985, making him one of the longest serving law enforcement officers in South Dakota. He began his law enforcement career as a military police officer stationed in Fort Carson, Colorado and in Germany. Since leaving military service, Criminal Investigator Leaf has served people in Indian country since 1987. He has worked for Tribal and Bureau of Indian Affairs Police Departments in Standing Rock, Yankton, Winnebago and Omaha (Nebraska), Crow Agency (Montana), Fort Duchesne (Utah), and Red Lake (Minnesota). Criminal Investigator Leaf began his career in Tribal law enforcement working for the Cheyenne River Sioux Tribe. He returned there in 2002, where he has spent the last 14 years of his career, and has been a Criminal Investigator for the Cheyenne River Sioux Tribe since 2008.
Special Agent (SA) James Asher graduated from Cedarville University in Ohio in 2002. After graduating from college, SA Asher joined the military and was an Army Infantry Officer in the 82nd Airborne Division from 2002 until 2008. In 2008, SA Asher joined the Federal Bureau of Investigation. He initially worked in Kansas City and Los Angeles, where he specialized in investigations involving gangs and narcotics. In April of 2015, SA Asher transferred to the Pierre Resident Agency, where he investigates sexual assault cases and other violent crimes in Indian country.
The fourth recipient, Cynthia Johanson, a Probation Officer with the Flandreau Santee Sioux Tribal Court, will be honored at a ceremony in Flandreau on May 5, 2016.
For additional information about this year’s National Crime Victims’ Rights Week, visit: http://www.ovc.gov/
Four Charged in Cocaine Distribution ConspiracyRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging four individuals for a conspiracy to possess with intent to distribute cocaine. The criminal complaint was filed this afternoon, following the defendants’ arrests on Friday evening, April 8, 2016. Charged in the criminal complaint are:
Hector M. Hernandez-Villapando, age 63, of Hanover, Maryland; Enixae Hernandez-Barba, age 33, of Linthicum Heights, Maryland; Hector L. Hernandez-Barba, age 39, of Las Vegas, Nevada; and
William Frederick Cornish, age 52, of Abingdon, Maryland.The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; Chief Michael A. Pristoop of the Annapolis Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Richard McLaughlin of the Laurel Police Department; Harford County Sheriff Jeffrey R. Gahler; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the affidavit filed in support of the criminal complaint, in August 2015, DEA received information about a group that was trafficking large amounts of cocaine into Maryland and utilizing a warehouse on Golden Ring Road in Baltimore. Investigation showed that the business using that location, KMKJ Trucking, LLC, had been evicted by July 31, 2015. Over the next six months, investigators identified Hernandez-Villapando and his sons, E. Hernandez-Barba and H. Hernandez-Barba as the individuals believed to have been using the Golden Ring Road warehouse. The investigation subsequently identified a warehouse on Hammonds Ferry Road in Linthicum Heights, Maryland, as the new location being used by those individuals.
According to the affidavit, on April 6, 2016, a tractor trailer with the KMKJ logo arrived at the Hammonds Ferry Road warehouse and backed up to the rear bay door of the unit. Investigators observed items being unloaded from the tractor trailer into the warehouse. A short time later, law enforcement observed a van occupied by E. Hernandez-Barba and H. Hernandez-Barba traveling around the parking lot and warehouse building, conducting counter-surveillance of the area. The Hernandez-Barba brothers then entered the warehouse, where they remained for approximately two hours before returning to E. Hernandez-Barba’s residence.
On the evening of April 8, 2016, investigators saw H. Hernandez-Barba, E. Hernandez-Barba and Hernandez-Villapando arrive at the Linthicum Heights warehouse. E. Hernandez-Barba then left in a black Honda, followed by a silver F-150 pickup truck. After a conversation on a nearby street between E. Hernandez-Barba and the driver of the pickup truck, they returned to the warehouse. E. Hernandez Barba went into the warehouse and the F-150 entered the warehouse through the bay door, which was then closed. A few minutes later, the bay door re-opened and the F-150 drove out of the warehouse. The truck, driven William Cornish, was stopped by law enforcement shortly after leaving the warehouse area. A narcotics detection dog was brought to the scene. The dog scanned the truck resulting in a positive response for the presence of illegal drugs. Law enforcement recovered 31 kilograms of cocaine from a box in the back seat of the truck. Law enforcement also stopped Hernandez-Villapando, H. Hernandez-Barba and E. Hernandez-Barba as they left the warehouse.
Search warrants were obtained and executed at the warehouse and at the residences of E. Hernandez-Barba, Hernandez-Villapando, and Cornish. Law enforcement recovered three large duffel bags in the basement of Hernandez-Barba’s home containing large amounts of cash. The money was vacuum sealed in plastic bags marked with the amount of cash on the outside of each plastic bag. Based on those amounts, law enforcement believes the duffel bags contain approximately $2.4 million. Investigators also recovered a drug/money ledger in the home documenting just over $2.4 million in receipts from the sale of illegal drugs. From Cornish’s home, law enforcement recovered a money counter, colored rubber bands, latex gloves and a digital scale, typically used in the narcotics trade to count and package money and to weigh drugs prior to distribution. Investigators also recovered a radio frequency detector that is commonly used by drug traffickers to “sweep” cars, people, and other items for hidden transmitters and electronic devices that are often used by law enforcement while investigating the distribution of illegal drugs.
The defendants face a minimum mandatory sentence of ten years and up to life in prison. The defendants are expected to have initial appearances today beginning at 4:00 p.m. before U.S. Magistrate Judge Beth P. Gesner in U.S. District Court in Baltimore.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended DEA, the Maryland Transportation Authority Police, Baltimore Police Department, Baltimore County Police Department, Anne Arundel County Police Department, Annapolis Police Department, Maryland State Police, Laurel Police Department, Harford County Task Force, and IRS Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who are prosecuting the case.
Fort Hall Woman Pleads Guilty to AssaultRead the Press Release
POCATELLO – Tanisha Phelps, 19, of Fort Hall, Idaho, pleaded guilty today in United States District Court to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Phelps was indicted by the federal grand jury in Pocatello on January 27, 2015.
According to the plea agreement, on December 14, 2014, Fort Hall Police were called to a residence on the Fort Hall Indian Reservation regarding a possible stabbing. Officers arrived and found that the defendant had cut the victim, a 72 year old female in a wheelchair, on her forearm with a knife. The victim told police that the defendant was mad because her music had been turned off. The victim told the defendant to go outside and “cool off.” The defendant punched the victim in the forehead with her fist and the defendant grabbed two kitchen knives. The defendant then cut the victim’s forearm with the knife and caused it to bleed. The defendant was interviewed by police and admitted cutting the victim with the knife.
The charge of assault with a dangerous weapon is punishable by up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000.
Phelps is scheduled to be sentenced on June 23, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Fort Hall Man Pleads Guilty to AssaultRead the Press Release
POCATELLO – Lyle Plentywounds, Sr., 60, of Fort Hall, Idaho, pleaded guilty today in United States District Court to assault on an officer, U.S. Attorney Wendy J. Olson announced. Plentywounds was indicted by the federal grand jury in Pocatello on July 28, 2015.
On June 23, 2015, officers from the Fort Hall Police Department responded to a residence on the Fort Hall Indian Reservation on a report that the Plentywounds was causing a disturbance at that location. Officers arrived at the location and found Plentywounds to be intoxicated, which is a violation of Tribal law. Officers took Plentywounds into custody. While officers were taking him to the patrol car, Plentywounds struggled with the officers and kicked an officer in the leg. Under the specific federal law that Plentywounds pled guilty to violating, Fort Hall police officers are considered “federal officers.”
The charge of assault on an officer is punishable by up to eight years in prison, up to three years of supervised release, and a fine of up to $250,000.
Plentywounds is scheduled to be sentenced on June 22, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former U.S. Nuclear Regulatory Commission Employee Sentenced to Prison for Attempted Spear-Phishing Attack on Department of Energy ComputersRead the Press Release
Charles Harvey Eccleston, 62, a former employee of the U.S. Department of Energy (DOE) and the U.S. Nuclear Regulatory Commission (NRC), was sentenced today to 18 months in prison on a federal charge stemming from an attempted e-mail “spear-phishing” attack in January 2015 that targeted dozens of DOE employee e-mail accounts.
The sentencing was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Eccleston pleaded guilty on Feb. 2, 2016, in the U.S. District Court for the District of Columbia, to one count of attempted unauthorized access and intentional damage to a protected computer. In his guilty plea, Eccleston admitted scheming to cause damage to the computer network of the DOE through e-mails that he believed would deliver a computer virus to particular employees. An e-mail spear-phishing attack involves crafting a convincing e-mail for selected recipients that appears to be from a trusted source and that, when opened, infects the recipient’s computer with a virus.
In addition to the prison time, U.S. District Judge Randolph D. Moss ordered Eccleston to forfeit $9,000, an amount equal to the sum the FBI provided to Eccleston during the course of the undercover investigation.
“Eccleston’s sentence holds him accountable for his attempt to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent of allowing foreign nations to gain access to that information or to damage essential systems,” said Assistant Attorney General Carlin. “One of our highest priorities in the National Security Division remains protecting our national assets from cyber intrusions. We must continue to evolve and remain vigilant in our efforts and capabilities to confront cyber-enabled threats and aggressively detect, disrupt and deter them.”
“Charles Harvey Eccleston is a scientist and former government employee who was willing to betray his country and his former employer out of spite,” said U.S. Attorney Phillips. “His attempts to sell access to sensitive computer networks demonstrate why the government must be so vigilant to prevent cyber-attacks. Thanks to the FBI, this defendant was apprehended before he could do any damage. Together with our law enforcement partners, we will continue to make the detection and prevention of cyber-crimes a top priority.”
“Today’s sentencing sends a powerful message that no one will be allowed to sabotage the U.S. Government’s cyber infrastructure or threaten our national security through the illicit sale of information to a foreign intelligence service,” said Assistant Director in Charge Abbate. “The FBI will continue to investigate and pursue those who attempt to disclose sensitive knowledge about our nation’s information systems and bring them to justice.”
Eccleston, a U.S. citizen who had been living in Davao City in the Philippines since 2011, was terminated from his employment at the NRC in 2010. He was detained by Philippine authorities in Manila, Philippines, on March 27, 2015, and deported to the United States to face U.S. criminal charges. He has been in custody ever since.
According to court documents, Eccleston initially came to the attention of the FBI in 2013 after he entered a foreign embassy in Manila and offered to sell a list of over 5,000 e-mail accounts of all officials, engineers and employees of a U.S. government energy agency. He said that he was able to retrieve this information because he was an employee of a U.S. government agency, held a top secret security clearance and had access to the agency’s network. He asked for $18,800 for the accounts, stating they were “top secret.” When asked what he would do if that foreign country was not interested in obtaining the U.S. government information the defendant was offering, the defendant stated he would offer the information to China, Iran or Venezuela, as he believed these countries would be interested in the information.
Thereafter, Eccleston met and corresponded with FBI undercover employees who were posing as representatives of the foreign country. During a meeting on Nov. 7, 2013, he showed one of the undercover employees a list of approximately 5,000 e-mail addresses that he said belonged to NRC employees. He offered to sell the information for $23,000 and said it could be used to insert a virus onto NRC computers, which could allow the foreign country access to agency information or could be used to otherwise shut down the NRC’s servers. The undercover employee agreed to purchase a thumb drive containing approximately 1,200 e-mail addresses of NRC employees; an analysis later determined that these e-mail addresses were publicly available. The undercover employee provided Eccleston with $5,000 in exchange for the e-mail addresses and an additional $2,000 for travel expenses.
Over the next several months, Eccleston corresponded regularly by e-mail with the undercover employees. A follow-up meeting with a second undercover employee took place on June 24, 2014, in which Eccleston was paid $2,000 to cover travel-related expenses. During this meeting, Eccleston discussed having a list of 30,000 e-mail accounts of DOE employees. He offered to design and send spear-phishing e-mails that could be used in a cyber-attack to damage the computer systems used by his former employer.
Over the next several months, the defendant identified specific conferences related to nuclear energy to use as a lure for the cyber-attack, then drafted emails advertising the conference. The emails were designed to induce the recipients to click on a link which the defendant believed contained a computer virus that would allow the foreign government to infiltrate or damage the computers of the recipients. The defendant identified several dozen DOE employees whom he claimed had access to information related to nuclear weapons or nuclear materials as targets for the attack.
On Jan. 15, 2015, Eccleston sent the e-mails he drafted to the targets he had identified. The e-mail contained the link supplied by the FBI undercover employee which Eccleston believed contained a computer virus, but was, in fact, inert. Altogether, the defendant sent the e-mail he believed to be infected to approximately 80 DOE employees located at various facilities throughout the country, including laboratories associated with nuclear materials.
Eccleston was detained after a meeting with the FBI undercover employee, during which Eccleston believed he would be paid approximately $80,000 for sending the e-mails.
The investigation was conducted by the FBI’s Washington Field Office with assistance from the NRC and DOE. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Gillice of the District of Columbia and Trial Attorney Julie A. Edelstein of the National Security Division’s Counterintelligence and Export Control Section. Trial Attorney Scott Ferber of the National Security Division’s Counterintelligence and Export Control Section assisted in the investigation of this matter. The Department of Justice’s Office of International Affairs and the government of the Philippines also provided significant assistance.
Former U.S. Nuclear Regulatory Commission Employee Sentenced to Prison for Attempted Spear-Phishing Cyber-Attack on Department of Energy ComputersRead the Press Release
WASHINGTON – Charles Harvey Eccleston, 62, a former employee of the U.S. Department of Energy (DOE) and the U.S. Nuclear Regulatory Commission (NRC), was sentenced today to 18 months in prison on a federal charge stemming from an attempted e-mail “spear-phishing” attack in January 2015 that targeted dozens of DOE employee e-mail accounts.
The sentencing was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia, and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Eccleston pleaded guilty on Feb. 2, 2016, in the U.S. District Court for the District of Columbia, to one count of attempted unauthorized access and intentional damage to a protected computer. In his guilty plea, Eccleston admitted scheming to cause damage to the computer network of the DOE through e-mails that he believed would deliver a computer virus to particular employees. An e-mail spear-phishing attack involves crafting a convincing e-mail for selected recipients that appears to be from a trusted source and that, when opened, infects the recipient’s computer with a virus.
In addition to the prison time, U.S. District Judge Randolph D. Moss ordered Eccleston to forfeit $9,000, an amount equal to the sum the FBI provided to Eccleston during the course of the undercover investigation. Following his prison term, Eccleston will be placed on three years of supervised release.
“Eccleston’s sentence holds him accountable for his attempt to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent of allowing foreign nations to gain access to that information or to damage essential systems,” said Assistant Attorney General Carlin. “One of our highest priorities in the National Security Division remains protecting our national assets from cyber intrusions. We must continue to evolve and remain vigilant in our efforts and capabilities to confront cyber-enabled threats and aggressively detect, disrupt and deter them.”
“Charles Harvey Eccleston is a scientist and former government employee who was willing to betray his country and his former employer out of spite,” said U.S. Attorney Phillips. “His attempts to sell access to sensitive computer networks demonstrate why the government must be so vigilant to prevent cyber-attacks. Thanks to the FBI, this defendant was apprehended before he could do any damage. Together with our law enforcement partners, we will continue to make the detection and prevention of cyber-crimes a top priority.”
“Today’s sentencing sends a powerful message that no one will be allowed to sabotage the U.S. Government’s cyber infrastructure or threaten our national security through the illicit sale of information to a foreign intelligence service,” said Assistant Director in Charge Abbate. “The FBI will continue to investigate and pursue those who attempt to disclose sensitive knowledge about our nation’s information systems and bring them to justice.”
Eccleston, a U.S. citizen who had been living in Davao City in the Philippines since 2011, was terminated from his employment at the NRC in 2010. He was detained by Philippine authorities in Manila, Philippines, on March 27, 2015, and deported to the United States to face U.S. criminal charges. He has been in custody ever since.
According to court documents, Eccleston initially came to the attention of the FBI in 2013 after he entered a foreign embassy in Manila and offered to sell a list of over 5,000 e-mail accounts of all officials, engineers and employees of a U.S. government energy agency. He said that he was able to retrieve this information because he was an employee of a U.S. government agency, held a top secret security clearance and had access to the agency’s network. He asked for $18,800 for the accounts, stating they were “top secret.” When asked what he would do if that foreign country was not interested in obtaining the U.S. government information the defendant was offering, the defendant stated he would offer the information to China, Iran or Venezuela, as he believed these countries would be interested in the information.
Thereafter, Eccleston met and corresponded with FBI undercover employees who were posing as representatives of the foreign country. During a meeting on Nov. 7, 2013, he showed one of the undercover employees a list of approximately 5,000 e-mail addresses that he said belonged to NRC employees. He offered to sell the information for $23,000 and said it could be used to insert a virus onto NRC computers, which could allow the foreign country access to agency information or could be used to otherwise shut down the NRC’s servers. The undercover employee agreed to purchase a thumb drive containing approximately 1,200 e-mail addresses of NRC employees; an analysis later determined that these e-mail addresses were publicly available. The undercover employee provided Eccleston with $5,000 in exchange for the e-mail addresses and an additional $2,000 for travel expenses.
Over the next several months, Eccleston corresponded regularly by e-mail with the undercover employees. A follow-up meeting with a second undercover employee took place on June 24, 2014, in which Eccleston was paid $2,000 to cover travel-related expenses. During this meeting, Eccleston discussed having a list of 30,000 e-mail accounts of DOE employees. He offered to design and send spear-phishing e-mails that could be used in a cyber-attack to damage the computer systems used by his former employer.
Over the next several months, the defendant identified specific conferences related to nuclear energy to use as a lure for the cyber-attack, then drafted emails advertising the conference. The emails were designed to induce the recipients to click on a link which the defendant believed contained a computer virus that would allow the foreign government to infiltrate or damage the computers of the recipients. The defendant identified several dozen DOE employees whom he claimed had access to information related to nuclear weapons or nuclear materials as targets for the attack.
On Jan. 15, 2015, Eccleston sent the e-mails he drafted to the targets he had identified. The e-mail contained the link supplied by the FBI undercover employee which Eccleston believed contained a computer virus, but was, in fact, inert. Altogether, the defendant sent the e-mail he believed to be infected to approximately 80 DOE employees located at various facilities throughout the country, including laboratories associated with nuclear materials.
Eccleston was detained after a meeting with the FBI undercover employee, during which Eccleston believed he would be paid approximately $80,000 for sending the e-mails.
The investigation was conducted by the FBI’s Washington Field Office with assistance from the NRC and DOE. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Gillice of the District of Columbia and Trial Attorney Julie A. Edelstein of the National Security Division’s Counterintelligence and Export Control Section. Trial Attorney Scott Ferber of the National Security Division’s Counterintelligence and Export Control Section assisted in the investigation of this matter. The Department of Justice’s Office of International Affairs and the government of the Philippines also provided significant assistance.
Former President of Louisville Debt Relief Business Charged with Tax CrimesRead the Press Release
Kimberley L. Gordon charged with failing to pay $173,264 in taxes
LOUISVILLE, Ky. – The former president of a Louisville debt relief business was recently charged with willful failure to account for and pay employment taxes collected over a two year period, announced United States Attorney John E. Kuhn, Jr.
The indictment alleges that Kimberley L. Gordon, 53, of Louisville, while president of Debt Restructuring of America deducted and collected $173,264 in federal income and Federal Insurance Contributions Act (FICA) taxes from the wages of employees from January 1, 2010, through December 31, 2011, but did not pay over that money to the Internal Revenue Service (IRS).
The charges against Gordon carry a maximum penalty of 40 years in prison and $80,000 in fines. Gordon was indicted by federal grand jury on April 5, 2016, and is scheduled for arraignment before Magistrate Judge Dave Whalin on April 28, 2016, in Louisville.
This tax case is being prosecuted by Assistant United States Attorney Jason Snyder, and is being investigated by the Internal Revenue Service – Criminal Investigation Division.
The charge of a person by Federal Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Nashville Airport Official Sentenced to Two Years in Prison for Fraud and Bribery SchemeRead the Press Release
John T. Howard, Jr., 45, of Nashville, Tenn., was sentenced today to a term two years in prison in connection with his role in a scheme involving fraudulent invoices and the solicitation of a bribe, announced David Rivera, United States Attorney for the Middle District of Tennessee. U.S. District Judge Aleta A. Trauger, who imposed the sentence, also ordered Howard to pay restitution of $1,405,876.07 and to forfeit the proceeds of his crime. The government had sought a prison term of between 57-71 months, in accordance with the U.S. Sentencing Commission Guidelines.
During a hearing on October 1, 2015, Howard, who had been an Assistant Vice President of the Metropolitan Nashville Airport Authority, (“MNAA”) pleaded guilty to one count of conspiring to commit wire fraud, one count of soliciting and receiving a bribe, and one count of money laundering. Howard acknowledged conspiring with certain MNAA contractors to submit fraudulent invoices to MNAA for construction and repair work that they had not performed, overseen, or verified. Howard also admitted asking a contractor to purchase more than $49,000 in airline tickets to Las Vegas for players, coaches, and others affiliated with a youth basketball organization run by Howard, in return for awarding an MNAA cleaning job to this contractor.
On April 4, 2016, Tim Rucker, 49, of Smyrna, Tennessee, was charged with conspiring with Howard to commit money laundering and wire fraud. The charging document alleges that Rucker submitted false invoices to MNAA for work that he had not in fact performed and that he provided the majority of the cash derived from these invoices to John Howard.
The charges against Rucker are merely an accusation and are not evidence of guilt. Rucker is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation, the IRS- Criminal Investigation and the Office of the Davidson County District Attorney General. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former High-Ranking FIFA and CONCACAF Official Pleads Guilty to Racketeering and Corruption ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Alfredo Hawit, a former FIFA vice president and executive committee member, the former president of CONCACAF, and the former president and general secretary of the Honduran soccer federation (FENAFUTH), pleaded guilty to one count of racketeering conspiracy, two counts of wire fraud conspiracy, and one count of conspiracy to obstruct justice in connection with his receipt of bribes in exchange for the awarding of contracts for the media and marketing rights to CONCACAF tournaments and FIFA World Cup qualifier matches. Hawit, who served in high-ranking positions in soccer from 1998 to 2015, also agreed to forfeit $950,000. At sentencing, Hawit faces a maximum sentence of 20 years for each count. Today’s plea proceeding took place before United States District Judge Raymond J. Dearie.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, in approximately 2011 and 2012, Hawit negotiated and accepted hundreds of thousands of dollars in bribes in exchange for his agreement to exercise his influence as acting president of CONCACAF to award an Argentine sports marketing company the media and marketing rights to CONCACAF tournaments, including the Gold Cup and the CONCACAF Champions League. Starting in approximately 2008, Hawit also negotiated and accepted hundreds of thousands of dollars in bribes in exchange for his agreement to exercise his influence as the FENAFUTH general secretary to award contracts to Media World, a Florida sports marketing company, for the media and marketing rights to the Honduran national soccer team’s home World Cup qualifier matches for the 2014, 2018, and 2022 editions of the World Cup. Over a period of years, Media World transmitted these bribes from its U.S. bank accounts, through an intermediary, to foreign bank accounts controlled by the defendant’s family members and by a co-conspirator. In addition, after the original indictment in this case was unsealed on May 27, 2015, Hawit engaged in a conspiracy to obstruct justice, and to tamper with witnesses and evidence, by advising a co-conspirator to create sham contracts in order to mask bribe payments already paid and, if asked, deceive law enforcement officers about the true nature and purpose of bribe payments.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Paul Tuchmann, Nadia Shihata, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
ALFREDO HAWIT
Age: 64
Nationality: HondurasE.D.N.Y. Docket No. 15 CR 252 (S-1)
Former Federal Correctional Officer, Inmate Sentenced for Contraband Smuggling ConspiracyRead the Press Release
Memphis, TN – A former federal correctional officer and an inmate have both been sentenced for attempting to smuggle marijuana into a federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to the indictment, Keair Kemp, 33, of Horn Lake, Mississippi, was employed as a correctional officer at Federal Correctional Institution (FCI) Memphis. Travonte Johnson, 34, of Millington, Tennessee, was an inmate at FCI Memphis.
Between mid-2015 and August 2015, Kemp and Johnson developed a scheme to smuggle marijuana into FCI Memphis. In exchange for cash, Kemp agreed to unlawfully carry marijuana into the prison and deliver it to Johnson, thus violating his official duties as a correctional officer.
In December 2015, Kemp pleaded guilty before U.S. District Judge Sheryl H. Lipman to one count of accepting a bribe in return for smuggling marijuana into a federal prison.
In January 2016, Johnson pleaded guilty to one count of offering a bribe to a public official to smuggle marijuana into a federal correctional institution.
On Friday, April 8, 2016, Kemp was sentenced by Judge Lipman to 12 months and one day imprisonment.
On Monday, April 11, 2016, Johnson was sentenced by Judge Lipman to 30 months imprisonment.
This case was investigated by the Federal Bureau of Investigation, U.S. Department of Justice Office of Inspector General, and the Federal Bureau of Prisons.
Assistant U.S. Attorney Mark Erskine prosecuted this case on the government’s behalf.
Former Erie Resident Admits Robbing Two Local BanksRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of bank robbery, United States Attorney David J. Hickton announced today.
Samuel Louis Dominick, 29, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on February 19, 2015, Dominick and a co-defendant were involved in the robbery of $1,565 from the First National Bank, located at 3310 West 26th Street, Erie, Pennsylvania. In addition, on March 5, 2015, Dominick robbed $4,828 from the Marquette Savings Bank, located at 2320 West 12th Street, Erie, Pennsylvania..
Judge Cercone scheduled sentencing for August 1, 2016 at 3:00 p.m. The law provides for a total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Millcreek Township Police Department conducted the investigation that led to the prosecution of Dominick.
Former Bookkeeper Sentenced for Embezzling from Tacoma Charity Thrift StoresRead the Press Release
The former bookkeeper for the St. Vincent de Paul Society Stores of Tacoma, Washington, was sentenced today in U.S. District Court in Tacoma to 45 months in prison and three years of supervised release for wire fraud and aggravated identity theft, announced United States Attorney Annette L. Hayes. ANGELA TONEY SAUCIDO, 44, moved from the Tacoma area to Phoenix in 2007, but continued to work for the charity as its bookkeeper through March 2013. At sentencing U.S. District Judge Benjamin H. Settle ordered SAUCIDO to pay more than $543,000 in restitution to St. Vincent de Paul Society.
“This defendant enriched herself at the expense of those who could afford it least,” said U.S. Attorney Annette L. Hayes. “Because of her conduct, St. Vincent de Paul has had to close a number of its stores and lay off a significant portion of its work force. Those in our community who are down on their luck have fewer places to turn to get a helping hand.”
According to records in the case, the embezzlement scheme involved a variety of frauds. SAUCIDO would transfer funds from the St. Vincent de Paul Society Stores bank accounts to her own bank accounts and falsify entries making it appear the transfers were for legitimate purposes. SAUCIDO forged signatures on checks and made electronic fund transfers to benefit her and her family. SAUCIDO made purchases for her personal use on the St. Vincent de Paul Society Stores Home Depot credit account, and then used the charity’s funds to pay for the purchases. Finally, SAUCIDO used the identities of other employees to make it appear they had received additional pay when in fact she had deposited the money into bank accounts she and her husband controlled.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Matthew Hampton.
Former Archer County Justice of the Peace Sentenced to 24 Months in Federal Prison for Stealing County FundsRead the Press Release
WICHITA FALLS, Texas — Joseph Charles Boyle, 64, the former Justice of the Peace for Precinct 2 in Holliday, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 24 months in federal prison, the top end of the U.S. Sentencing Guidelines, following his guilty plea in November 2015 to a felony Information charging one count of theft concerning programs receiving federal funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Boyle was also ordered to pay $133,333.33 in restitution, the total amount of money he stole, embezzled and obtained by fraud from Archer County. Judge O’Connor remanded Boyle to federal custody following this morning’s sentencing hearing.
Boyle resigned his position as Justice of the Peace the day before he entered a guilty plea. In late August 2015, he retired from the Texas Department of Criminal Justice, where he worked as a correctional officer at the James V. Allred Unit in Iowa Park, Texas
According to documents filed in the case, Boyle served in his elected position in Archer County, Texas, since January 2003. As Justice of the Peace, Boyle was authorized to impose fines and assess fees on individuals cited with a variety of violations, such as minor in possession of alcohol, speeding, illegal passing, driving without a valid license, and other traffic violations.
From approximately January 1, 2013, through May 5, 2015, on numerous occasions, Boyle stole, embezzled, and obtained by fraud, funds that he collected as payment of fees, fines and penalties, and failed to turn that money over to its rightful owner, Archer County.
Boyle told individuals who had been cited with a violation that the fine was a certain amount, obtained payment from the individual in that amount, and provided the individual with a receipt in that amount. Boyle, however, then kept a portion of the individual’s payment and falsely reported to Archer County that the fine assessed, and the amount received as payment of the fine, was less than the amount he had actually assessed and received.
To help facilitate his theft, Boyle often requested that individuals pay their fines in cash. Frequently, he kept a portion of the cash the individual paid, and then purchased a money order to make the payment to Archer County, all in an effort to disguise the fact that he had been paid in cash.
The FBI and the Texas Rangers investigated the case. Assistant U.S. Attorney Douglas Brasher was in charge of the prosecution.
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Felon Sentenced to 7+ Years in Prison for Possessing FirearmsRead the Press Release
A 33-year-old Federal Way man was sentenced Friday April 8, 2016 to 90 months in prison and three years of supervised release for two counts of being a felon in possession of firearms, announced U.S. Attorney Annette L. Hayes. ROBBY LEE ROBINSON, was convicted following a bench trial on January 6, 2016. At trial prosecutors presented evidence that in October 2013, ROBINSON had assaulted a 15-year-old boy, pointing a rifle at him and the next day had threatened the boy’s grandmother while armed with a handgun. At sentencing U.S. District Judge Marsha J. Pechman said ROBINSON created “an extraordinarily dangerous situation… where a teenage boy has a gun pointed at him.”
According to records filed in the case, on October 29, 2013, ROBINSON’s girlfriend made a frantic call to 9-1-1 reporting that ROBINSON was assaulting her son and mother. ROBINSON had attacked the grandmother first pinning her against an exterior wall and threatening her with a rifle. When her 15-year-old grandson came to her aid, ROBINSON punched him, threw him down concrete stairs and pointed the rifle at him. The boy and his grandmother were able to get into the house and lock the door, keeping ROBINSON out. ROBINSON fled the scene before police arrived. The next day police were called again when the grandmother reported that ROBINSON had called the home and was threatening to burn the house down. ROBINSON was spotted in a car in the neighborhood, and using pepper spray, police were able to get him out of the car and into custody. Inside the car police found a Ruger, Model Super BlackHawk, .44 Magnum revolver.
ROBINSON has a lengthy criminal history including convictions for Domestic Violence Assault (2003), Violation of a No Contact Order (2004), Possession of Methamphetamine (2007) and Second Degree Assault (2008). He is prohibited from possessing firearms.
The case was investigated by the Federal Way Police Department and was prosecuted by Special Assistant United States Attorney Stephen Hobbs and Assistant United States Attorney Nicholas Manheim. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.
Federal Jury Finds Crips Gang Leader Guilty of RacketeeringRead the Press Release
Following four weeks of trial, a federal jury in Central Islip, NY, returned a guilty verdict today against Raphael Osborne, also known as “Gusto,” a Crips street gang leader from Roosevelt, NY, on twenty-one counts including racketeering, conspiracy, robbery, attempted murder, witness retaliation, assault with a dangerous weapon, drug conspiracy and brandishing and discharging firearms during the commission of these offenses. Osborne faces a minimum of 115 years and up to life imprisonment as a result of these convictions.
The verdict was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Madeline Singas, Nassau County District Attorney; and Thomas C. Krumpter, Acting Nassau County Police Commissioner.
At trial, the government successfully proved that Osborne led the Roosevelt, NY-based Rollin’ 60s Crips, a racketeering enterprise that engaged in multiple crimes of violence and narcotics trafficking. Between 2003 and 2013, members of the gang followed an “on sight” rule established by Osborne that commanded gang members to attack rival Bloods in Roosevelt whenever possible and by whatever means available. In addition, numerous other shootings and murders were committed at Osborne’s direction. During the trial, the government elicited details of 15 shootings and three homicides that were committed by members of the Rollin’ 60s during Osborne’s reign and established that the gang financed its activities through firearms and narcotics trafficking. Over the course of the conspiracy, the gang was responsible for bringing hundreds of illegal firearms to Long Island, including revolvers, semi-automatic handguns, assault rifles, and submachine guns.
Among other crimes, Osborne was convicted of:
Conspiring to murder and attempted murder of a federal informant in October 2012. Beginning in the spring of 2012, law enforcement, with the aid of a Rollin’ 60s gang member informant, began purchasing firearms from the gang, including some from Osborne’s residence on Debevoise Avenue in Roosevelt. After the informant attempted to purchase a firearm from Osborne in June 2012, Osborne became suspicious and ordered other gang members to kill him. On October 13, 2012, a gang member lured the informant from his Hempstead home to a location where a fellow gang member was waiting. The informant was shot five times at close range, leaving him paralyzed.
The January 2013 attempted murder and assault of a rival Bloods gang member. On January 30, 2013, Osborne and other ranking members of the Rollin’ 60s followed a vehicle occupied by several Bloods gang members to a house on Pleasant Avenue in Roosevelt. As the rivals’ vehicle turned into the driveway of the residence, Osborne and other gang members unleashed a barrage of .40 and .45 caliber bullets that ripped through the vehicle and sent one of the Bloods members to the hospital with a gunshot wound to his abdomen.
Two robberies that he committed with other members of the gang in the fall of 2010. The first robbery involved a gang member stealing marijuana and cash from the victim, while Osborne dragged the victim from his vehicle and pistol whipped him in the street. In the second robbery, Osborne directed gang members to the home of a drug dealer who was robbed at gunpoint.
Conspiring to distribute 280 grams of crack cocaine, 100 grams of heroin, 100 kilograms of marijuana, and quantities of methylone, commonly known as “molly.”
“The crimes that Osborne stands convicted of underscore the wanton violence the Crips street gang unleashed on neighborhoods of Long Island,” stated United States Attorney Capers. “Street gangs such as the Crips infect communities, and we will continue to respond to the Crips’ brutal violence with unwavering investigation and prosecution – they will be brought to justice and prosecuted to the fullest extent of the law.” Mr. Capers extended his grateful appreciation to each of the law enforcement agencies for their assistance in this case, in particular the Special Investigations Squad of the Nassau County Police Department and the FBI’s Long Island Gang Task Force.
Assistant Director-in-Charge Rodriguez stated, “The verdict against Raphael Osborne leaves the area of Roosevelt a little safer today. During his time as a Crips leader, Osborne directed attacks against rival gangs in the Roosevelt area by any means available. The FBI will continue to work with our law enforcement partners to dismantle gangs and the violence they bring to our communities.”
District Attorney Singas stated, “This defendant and his fellow gang members brought illegal guns, deadly drugs, and unbridled violence into communities on Long Island. He oversaw a ruthless enterprise that trafficked in assault weapons, handguns, cocaine, and heroin, and left many victims in its wake. I thank all of our partners who took part in the dangerous and important work to arrest and prosecute this defendant and his associates.”
Acting NCPD Police Commissioner Krumpter stated, “Crime has no boundaries and this case is an example of how partners in law enforcement utilized talented personnel and resources to bring this defendant to justice. Today’s arrest should serve as a deterrent to criminals as we at the Nassau County Police Department are committed to working with our fellow law enforcement partners to ensure public safety.”
Upon sentencing the defendant Osborne faces a potential sentence of up to life imprisonment.
Osborne is the fourteenth member of the gang to be convicted since the inception of this case. Three other members of the gang are pending trial.
The government’s case was prosecuted by Assistant United States Attorneys Nicole Boeckmann, Christopher Caffarone, and Special Assistant United States Attorney Michael Maffei.
The Defendant:
Raphael Osborne (a/k/a Gusto)
Age: 30E.D.N.Y. Docket No. 14-264 (JS)
Erie Man Admits Guilty in Crack Cocaine Trafficking SchemeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
Curtis L. Duck, 42, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Duck conspired with a co-defendant to possess with intent to distribute and distribute approximately 40 grams of crack cocaine.
Judge Cercone scheduled sentencing for August 1, 2016 at 1:30 p.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Duck on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the Erie Police Department conducted the investigation that led to the prosecution of Duck.
Erie Man Admits Distributing Crack CocaineRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal drug laws, United States Attorney David J. Hickton announced today.
James Darnell Pacely, 37, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on November 13, 2012, November 27, 2012 and December 7, 2012, Pacely distributed crack cocaine in Erie.
Judge Cercone scheduled sentencing for August 1, 2016 at 12:45 p.m. The law provides for a total sentence of 60 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the Erie Police Department conducted the investigation that led to the prosecution of Pacely.
El Paso man pleads guilty to liquid meth possession and distribution conspiracyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that an El Paso man pleaded guilty last week to conspiring to transport and distribute methamphetamine.
Eduardo Guerrero, 24, of El Paso, Texas, pleaded guilty Friday before U.S. District Judge Robert G. James to one count of conspiracy to possess with intent to distribute methamphetamine. According to the guilty plea, Louisiana State Police troopers conducted a traffic stop on a pickup truck traveling eastbound on Interstate 20 in Ouachita Parish in March of 2015. After a search of the vehicle, two gas tanks were found on the vehicle and one contained 16 gallons of liquid methamphetamine, which is approximately 28.8 kilograms of pure methamphetamine. The driver and passenger did not own the vehicle. Guerrero was determined to be the owner, and the driver said Guerrero had directed him to transport the methamphetamine from El Paso to Atlanta, Ga. State police arrested Guerrero in the New Orleans area while he traveled to retrieve the truck and methamphetamine.
Guerrero faces up to a minimum of 10 years to life in prison, five years of supervised release and a $1 million fine. Sentencing has been set for July 5, 2016.
The DEA, Department of Homeland Security, and Louisiana State Police, Troop F, conducted the investigation. Assistant U.S. Attorneys Allison D. Bushnell and Michael O’Mara are prosecuting the case.
Doctor Sentenced to over Nine Years in Prison for $3.1 Million Health Care Fraud SchemeRead the Press Release
Greenbelt, Maryland - U.S. District Judge Deborah K. Chasanow sentenced physician Paramjit Singh Ajrawat, age 60, Potomac, Maryland, today to 111 months in prison, followed by three years of supervised release for health care fraud, two counts of making a false statement related to a health care program, one count of obstruction of justice, four counts of wire fraud, and one count of aggravated identity theft related to a health care fraud scheme in connection with the pain clinic he owned and operated with his wife. Judge Chasanow also entered an order requiring Ajrawat to forfeit and pay restitution of $3,103,874.58.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Norbert E. Vint, Acting Inspector General of the U.S. Office of Personnel Management; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Robin Blake, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.
“This lengthy sentence sends a powerful message that doctors who defraud health insurance programs will be held accountable,” said U.S. Attorney Rod J. Rosenstein.
Ajrawat was a licensed physician in Maryland who specialized in interventional pain management. He and his wife owned and operated Washington Pain Management Center (WPMC) located in Greenbelt. A federal jury convicted Ajrawat and his wife, Sukhveen Kaur Ajrawat, age 57, also a medical doctor, on September 4, 2015. The government moved to dismiss the charges against Sukhveen Ajrawat after her death on February 1, 2016.
According to evidence presented at the eight day trial, from at least January 2011 through May 2014, the Ajrawats defrauded federal health benefit programs including: Medicare, Medicaid, TRICARE, Federal Employees Health Benefits Program and the Office of Workers’ Compensation Programs. The Ajrawats filed claims for procedures that were not performed. Specifically, the Ajrawats performed less expensive procedures but falsely billed for procedures that provided higher reimbursement amounts. The Ajrawats also submitted claims indicating that they had met the requirements for reimbursement, when in fact, they had not met those requirements. Finally, the Ajrawats submitted claims for procedures that had not been performed at all.
For example, the Ajrawats submitted claims that P. Ajrawat had performed nerve block injections with the use of an imaging guidance machine, but P. Ajrawat neither owned nor used such a machine. The Ajrawats also falsely documented patient files to indicate that an imaging guidance machine had been used to verify needle placement and caused the alteration or destruction of patient files to conceal the scheme from auditors and law enforcement.
United States Attorney Rod J. Rosenstein praised DCIS, HHS-Office of Inspector General, OPM-Office of Inspector General, FBI, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Service-Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kelly O’Connell Hayes, who prosecuted the case.
Dallas Woman Sentenced to 18 Months in Federal Prison for Structuring TransactionsRead the Press Release
DALLAS — Linda Nell Fantroy, 65, of Dallas, was sentenced this morning by U.S. District Judge David C. Godbey to 18 months in federal prison, following her guilty plea in December 2015 to one count of structuring transactions to evade reporting requirements, announced U.S. Attorney John Parker of the Northern District of Texas.
Fantroy was ordered to surrender to the Bureau of Prisons on June 6, 2016.
The law requires any financial institution that engages with a customer in a currency transaction, such as a deposit or withdrawal, of more than $10,000, to report the transaction to the Internal Revenue Service (IRS). According to the factual resume filed in the case, from January 2010 to late October 2013, Fantroy structured currency deposits to avoid the $10,000 currency reporting requirements. During this time, she made approximately 111 cash deposits totaling more than $580,000. Each of those deposits was made with the intent to avoid the currency reporting requirements, and she violated this law as part of a pattern of illegal activity involving more than $100,000 in a 12-month period.
In a related civil action filed in the Northern District of Texas (3:14-CV-3265) , Senior U.S. District Judge A. Joe Fish entered a final judgment of forfeiture in January 2015, noting the government had probable cause to seize seven properties in the Dallas metroplex area that Fantroy owned.
According to the government’s Verified Complaint for Forfeiture in rem, filed in September 2014, each month, Fantroy, who was employed by the Dallas Independent School District (DISD), received direct payroll deposits from DISD and from the Texas Comptroller Teacher Retirement System of Texas. From January 2007 through November 2009, Fantroy had a total of 10 deposits totaling $6,270 into her Credit Union of Texas accounts.
However, beginning in December 2009, the currency deposits into Fantroy’s accounts increased dramatically. In fact, from December 2009 to August 31, 2013, more than $440,000 in currency, the source of which was unknown, was deposited into Fantroy’s accounts in 94 separate transactions, and each of those deposits was under the $10,000.01 Currency Transaction Report reporting threshold. The majority of structured funds deposited into her accounts during this time frame were used to purchase the seven above-mentioned residential properties that she was required to forfeit to the government.
IRS Criminal Investigation and the U.S. Department of Housing and Urban Development investigated the case. Assistant U.S. Attorney Brian Poe was in charge of the prosecution.
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Crime victim advocates honor Huntington Police Chief Joe Ciccarelli as part of National Crime Victims' Rights WeekRead the Press Release
CHARLESTON, W.Va. – The United States Attorney's Office for the Southern District of West Virginia, along with federal, state and local advocates of crime victims’ rights, presented the 2016 Excellence in Victim Advocacy and Justice Award today to Huntington Police Chief Joe Ciccarelli. The presentation took place at an opening ceremony held in Charleston at the Robert C. Byrd United States Courthouse as part of National Crime Victims’ Rights Week. The purpose of the ceremony was to honor the service of Chief Ciccarelli and to raise awareness about the rights, protections, and services available to crime victims in West Virginia.
Throughout his distinguished public service career, Chief Ciccarelli has worked tirelessly on behalf of crime victims and their families. His dedication has led to significant improvements in how the criminal justice system handles crime victims’ services. His service has had a lasting impact on crime victims’ rights, and the programs he has established to carry on this work reflect his extraordinary advocacy.
Ciccarelli began working with crime victims almost 40 years ago, in October 1977, when he started his career with the Huntington Police Department as a Community Service Officer and Emergency Medical Technician. He was appointed to be a police officer the following year and worked in the Patrol Bureau and Special Investigations Bureau before his appointment as a Special Agent in the FBI in 1984. His 30-year FBI career began with assignments in the St. Louis and Miami areas, and then continued with a return to Huntington in 1998 as the head of the FBI’s Violent Crime and Drug Task Force. In Huntington, Ciccarelli served as the Senior Resident Agent, the Supervisory Senior Resident Agent for Southern West Virginia, and the Team Leader for the FBI’s Northeast Region Child Abduction Rapid Deployment Team. While at the FBI, Ciccarelli helped establish the Special Agents Steering Committee and, most significant, the FBI’s Victim Assistance Program. After retiring from the FBI in 2014, he became an investigator for the West Virginia Supreme Court and, later that same year, was appointed Chief of the Huntington Police Department.
“Chief Joe Ciccarelli’s public service exemplifies the vision and leadership necessary to build trust and restore hope to crime victims. This award represents the gratitude of crime victims, their families, and those of us in the criminal justice system and advocacy community who have been fortunate enough to see how his efforts have made a difference,” stated Acting United States Attorney Carol Casto. “I am privileged to have known and worked with Joe for a number of years, as are all of us gathered today to celebrate his service. His commitment to truth and justice has been remarkable, and his determined advocacy has had an incredible impact on crime victims’ rights right here in our community and throughout our entire criminal justice system.”
The event featured officials working in the criminal justice system, agencies and organizations providing services to crime victims, and crime victims themselves who spoke firsthand about their experiences. Many who could not attend sent letters recognizing Chief Ciccarelli’s public service, including United States Attorney General Loretta Lynch.
This ceremony marks the 16th Annual Operation Reach Out event. Operation Reach Out is a collaborative group of federal, state and local agencies and organizations that work to raise awareness about the rights, protections, and services available to crime victims in West Virginia. The event was made possible through the partnership between Operation Reach Out and the Counseling Connection, an organization that provides counseling, therapy, education, and advocacy throughout West Virginia. The staff of Mt. Olive Correctional Complex was also essential to today’s event.
The event was held in conjunction with the nationwide observance of National Crime Victims' Rights Week, which began on April 10 and runs through April 16, 2016, and locally includes the Walk/Run for Justice 5K on Friday, April 15, 2016, at Haddad Riverfront Park in Charleston. Registration is free and starts at 11:00 A.M. The race begins at noon and there will be plaques presented for the top finishers in the women’s and men’s divisions. For more information on the Walk/Run for Justice 5K, please contact Marla Willcox Eddy at 304-340-3676. The theme of National Crime Victims' Rights Week this year is "Serving Victims. Building Trust. Restoring Hope."
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Charleston man sentenced to Federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to two years in federal prison for a gun crime, announced Acting United States Attorney Carol Casto. Richard Howard King II, 21, previously pleaded guilty in January 2016 to possession of a firearm by an unlawful user of a controlled substance.
King admitted that on July 16, 2015, he was carrying a concealed handgun when he was approached by Charleston Police Department officers. After King informed the officers that he was armed, the officers removed a Glock Model 22, .40 caliber pistol from his waistband. King also admitted that he possessed four other firearms from July 5, 2013, through July 16, 2015, one of which was stolen. At the time he possessed the firearms, King admitted that he was a habitual, unlawful user of marijuana.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Attorney General Loretta E. Lynch Announces Bill Baer to Serve as Acting Associate Attorney GeneralRead the Press Release
Attorney General Loretta E. Lynch released the following statement announcing that Bill Baer, who currently serves as Assistant Attorney General of the Antitrust Division, will serve as Acting Associate Attorney General effective April 17, 2016. The Associate Attorney General is the Justice Department’s third-ranking post.
“Bill Baer is an extraordinary public servant, an outstanding attorney and a champion of all those who look to the law for empowerment and protection,” said Attorney General Lynch. “From his work at the Federal Trade Commission to his leadership of the Justice Department’s Antitrust Division, he has demonstrated keen intelligence, strong judgment and consummate skill. In the last few years alone, he has led the Antitrust Division to new heights – unlocking $400 million in relief for consumers in a case against Apple’s price-fixing of e-books; achieving a record $2.5 billion in fines in a case that exposed a scheme by Citicorp, JPMorgan Chase, Barclays and the Royal Bank of Scotland and others to rig the foreign currency exchange spot market; and standing up against corporate behavior that would have damaged our markets and hurt consumers in industries from beer and wine to airlines and phone companies. With his hard work and unwavering dedication, he has earned the trust and respect of Justice Department employees at every level. I could not imagine a better individual to fill Stuart Delery’s shoes as Associate Attorney General of the United States.”
9 April 2016
Two Leaders of El Monte Street Gang Plead Guilty to Federal Racketeering Offenses, including Narcotics TraffickingRead the Press Release
LOS ANGELES – A Mexican Mafia member who is also a member of the El Monte Flores street gang, and another man who was a “shotcaller” of the gang, have pleaded guilty to federal racketeering offenses.
The two gang leaders pleaded guilty Thursday in United States District Court after they were indicted in 2014 in a racketeering indictment that focused on the El Monte Flores gang, an organization that takes direction from the Mexican Mafia prison gang and controls criminal activity in the cities of El Monte and South El Monte.
James “Chemo” Gutierrez, 53, of El Monte, who is the Mexican Mafia member and the lead defendant in the indictment, and Kenneth Cofer, 36, also of El Monte, each pleaded guilty to conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. They also each pleaded guilty to conspiring to distribute controlled substances, including methamphetamine and heroin, and conspiring to launder money. Additionally, Cofer pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime.
Gutierrez and Cofer pleaded guilty before United States District Judge John A. Kronstadt, who is scheduled to sentence Gutierrez on July 28 and Cofer on September 8. If Judge Kronstadt accepts the plea agreements in the case, Gutierrez and Cofer will each be sentenced to 15 years in federal prison.
The indictment in the case alleged that members of the El Monte Flores gang members committed crimes that included acts of violence (ranging from battery to murder), drug trafficking, robbery, burglary, carjacking, witness intimidation, kidnapping, weapons trafficking, credit card fraud, identity theft, and money laundering. The indictment outlined a dispute between Gutierrez and other members of the Mexican Mafia who were vying for control over the gang.
“We have effectively targeted criminal enterprises that operate as street gangs for two decades, using the federal racketeering statute to dismantle the leadership structure and incarcerate street-level operatives,” said United States Attorney Eileen M. Decker. “Street gangs present one of the most dangerous criminal elements in Southern California, and we will use every tool at our disposal to restore order to neighborhoods affected by their violence and other criminal activity.”
In his plea agreement, Gutierrez admitted that he “regularly received extortionate ‘tax’ payments from individuals trafficking narcotics in the neighborhoods controlled by the El Monte Flores gang.” Gutierrez “knew that the narcotics traffickers would be subject to violent attacks if they failed to pay the extortionate taxes to the El Monte Flores gang.” Gutierrez acknowledged in his plea agreement that he authorized an attack on a rival gang member.
Cofer admitted in his plea agreement that he “managed and supervised the extortion and drug trafficking activities…[and] directed the use of violence on behalf” of the criminal enterprise. Cofer specifically admitted that he authorized the shooting of a person who had a dispute with another member of the gang.
Gutierrez and Cofer admitted their roles in threats to use violence to extort “taxes” from drug dealers and fraudulent document vendors at “Crawford’s Plaza” (at Valley Boulevard and Garvey Avenue).
In addition to Gutierrez and Cofer, 19 other defendants named in the RICO indictment have pleaded guilty to date.
The investigation into the El Monte Flores gang was conducted by a task force that included the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS Criminal Investigation; and the El Monte Police Department.
8 April 2016
Wyoming County Man Pleads Guilty to Gun ChargeRead 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 Scott A. Wilcox, 46, of Pike, NY, pleaded guilty to being a felon in possession of a firearm, before U.S. District Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on January 25, 2015, Wyoming County Sheriff’s deputies searched the defendant’s residence at 7998 Wiscoy Road in Pike and found a Marlin .44 magnum caliber rifle, which belonged to Wilcox. Deputies also found 76 rounds of .44 caliber ammunition in an access panel in a bathroom. The defendant is a three-time convicted felon and is prohibited from legally possession firearms.
The plea is the result of an investigation on the part of the Wyoming County Sheriff’s Office, under the direction of Sheriff Gregory J. Rudolph, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.Sentencing is scheduled for July 21, 2016, at 12:00 p.m. before Judge Wolford.
Windham Man Fined $3,000 for Unlawfully Entering the United StatesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Bruce Mayberry, 55, of Windham, Maine was sentenced yesterday in U.S. District Court by Magistrate Judge John Nivison to serve a day in jail and pay a $3,000 fine for failing to present at a border crossing point when he entered the United States from Canada. He also paid a $1,800 civil penalty and a $500 fee associated with impoundment of his automobile.
According to court records, on October 29, 2015, a red Saturn sedan operated by Mayberry triggered sensors and was observed by a U.S. Border Patrol agent entering the United States on a field road leading from New Brunswick into Maine. After the Border Patrol agent conducted a vehicle stop, the driver admitted he had entered through the field road and had been in Canada for a few days. An officer employed by the Canadian Border Services Agency reported that Mayberry, a U.S. citizen, had previously been refused entry into Canada as result of his criminal history.U.S. Attorney Delahanty stated that the Justice Department and the Department of Homeland Security are committed to securing the international border and ensuring that those who seek to enter our country present themselves at designated crossing points and ports of entry.
In imposing sentence, Magistrate Judge Nivison emphasized the importance of border security and the need to deter others from unlawfully crossing our nation’s borders.
The investigation was conducted by the Department of Homeland Security, U.S. Border Patrol.Winchester Woman Sentenced for Embezzling $1 Million from Credit UnionRead the Press Release
ALEXANDRIA, Va. – Donna L. Jennings, 44, of Winchester, was sentenced today to 54 months in prison for embezzling over $1 million from Winchester Community Federal Credit Union. Jennings was also ordered to forfeit and pay $1,059,767.52 in restitution to her victims.
Jennings pleaded guilty on Dec. 18, 2015. According to court documents, Jennings admitted to stealing over $1 million in funds from Winchester Community Federal Credit Union where she was employed as its manager. From 2001 through 2014, Jennings took cash from teller drawers, fraudulently opened financial accounts, conducted financial transactions without customers’ knowledge, made false entries into accounting records, and approved loans without authority. Jennings funneled the proceeds of her fraud into accounts she controlled and used the stolen funds to purchase gifts for herself and pay credit card bills. When federal bank examiners questioned Jennings about suspicious transactions, she made false statements and altered Board of Director meeting minutes to support her lies. As a result of Jennings’ conduct, the National Credit Union Administration placed Winchester Community Federal Credit Union into a restricted status and invited another financial institution to merge with it for the protection of its membership and the National Credit Union Administration insurance fund.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Uzo Asonye prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-358.
West Seneca Man Sentenced for Oxycodone DistributionRead 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 Fred Suchan, 33, of West Seneca, NY, who was convicted of distribution of oxycodone, was sentenced to 12 months home detention and three years probation by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on three dates in September and October 2010, the defendant sold or attempted to sell OxyContin and Opana tablets to an undercover police officer in a commercial parking lot on Abbott Road in Orchard Park. On the last occasion, officers seized a 9 mm rifle, a loaded 9 mm magazine, and additional 9 mm ammunition from Suchan’s vehicle.
The sentencing is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the Orchard Park Police Department, under the direction of Chief Mark Pacholec.
Wells Fargo Bank Agrees to Pay $1.2 Billion for Improper Mortgage Lending PracticesRead the Press Release
Wells Fargo Bank Admits That It Certified that Loans Were Eligible for FHA Mortgage Insurance When They Were Not, and That It Did Not Disclose Thousands of Faulty Mortgage Loans to HUD
The Department of Justice announced today that the United States has settled civil mortgage fraud claims against Wells Fargo Bank, N.A. (Wells Fargo) and Wells Fargo executive Kurt Lofrano, stemming from Wells Fargo’s participation in the Federal Housing Administration (FHA) Direct Endorsement Lender Program. In the settlement, Wells Fargo agreed to pay $1.2 billion and admitted, acknowledged and accepted responsibility for, among other things, certifying to the Department of Housing and Urban Development (HUD), during the period from May 2001 through December 2008, that certain residential home mortgage loans were eligible for FHA insurance when in fact they were not, resulting in the Government having to pay FHA insurance claims when some of those loans defaulted. The agreement resolves the United States’ civil claims in its lawsuit in the Southern District of New York, as well as an investigation conducted by the U.S. Attorney’s Office for the Southern District of New York regarding Wells Fargo’s FHA origination and underwriting practices subsequent to the claims in its lawsuit and an investigation conducted by the U.S. Attorney’s Office for the Northern District of California into whether American Mortgage Network, LLC (AMNET), a mortgage lender acquired by Wells Fargo in 2009, falsely certified and submitted ineligible residential mortgage loans for FHA insurance.
The settlement was approved today by U.S. District Judge Jesse M. Furman for the Southern District of New York.
“This settlement is another step in the Department of Justice’s continuing efforts to hold accountable FHA approved lenders that unlawfully submitted false claims at the expense of American homeowners and taxpayers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “In addition to today’s resolution with Wells Fargo, the department has pursued similar misconduct by numerous other lenders, returning more than $4 billion to the FHA fund and the Treasury and filing suit where appropriate. We remain committed to protecting the public fisc from all who seek to abuse it, whether they do business on Wall Street or Main Street.”
“This Administration remains committed to holding lenders accountable for their lending practices,” said Secretary Julián Castro for HUD. “The $1.2 billion settlement with Wells Fargo is the largest recovery for loan origination violations in FHA’s history. Yet, this monetary figure can never truly make up for the countless families that lost homes as a result of poor lending practices.”
“Today, Wells Fargo, one of the biggest mortgage lenders in the world, has been held responsible for years of reckless underwriting, while relying on government insurance to deal with the damage,” said U.S. Attorney Preet Bharara for the Southern District of New York. “Wells Fargo has long taken advantage of the FHA mortgage insurance program, designed to help millions of Americans realize the dream of home ownership, to write thousands and thousands of faulty loans. Driven to maximize profits, Wells Fargo employed shoddy underwriting practices to drive up loan volume, at the expense of loan quality. Even though Wells Fargo identified through internal quality assurance reviews thousands of problematic loans, the bank decided not to report them to HUD. As a result, while Wells Fargo enjoyed huge profits from its FHA loan business, the government was left holding the bag when the bad loans went bust. With today’s settlement, Wells Fargo has finally resolved the years-long litigation, adding to the list of large financial institutions against which this office has successfully pursued civil fraud prosecutions.”
“Misconduct in the mortgage industry helped lead to a destructive financial crisis that spanned the globe,” said Acting U.S. Attorney Brian Stretch for the Northern District of California. “American Mortgage Network’s origination of FHA-insured loans that did not comply with government requirements also caused major losses to the public fisc. Today’s settlement demonstrates the Department of Justice’s resolve to pursue remedies against those who engaged in this type of misconduct.”
“This matter is not just a failure by Wells Fargo to comply with federal requirements in FHA’s Direct Endorsement Lender program – it’s a failure by one of our trusted participants in the FHA program to demonstrate a commitment to integrity and to ordinary Americans who are trying to fulfill their dreams of homeownership,” said Inspector General David A. Montoya for HUD.
According to the second amended complaint filed in Manhattan federal court, the government had alleged:
Wells Fargo has been a participant in the Direct Endorsement Lender program, a federal program administered by FHA. As a Direct Endorsement Lender, Wells Fargo has the authority to originate, underwrite and certify mortgages for FHA insurance. If a Direct Endorsement Lender approves a mortgage loan for FHA insurance and the loan later defaults, the holder or servicer of the loan may submit an insurance claim to HUD for the outstanding balance of the defaulted loan, along with any associated costs, which HUD must then pay. Under the Direct Endorsement Lender program, neither the FHA nor HUD reviews a loan for compliance with FHA requirements before it is endorsed for FHA insurance. Direct Endorsement Lenders are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and maintaining a quality control program that can prevent and correct any deficiencies in their underwriting. The quality control program requirements include conducting a full review of all loans that go 60 days into default within the first six payments, known as “early payment defaults”; taking prompt and adequate corrective action upon discovery of fraud or serious underwriting problems; and disclosing to HUD in writing all loans containing evidence of fraud or other serious underwriting deficiencies. Wells Fargo failed to comply with these basic requirements.
First, between at least May 2001 and October 2005, Wells Fargo, the largest HUD-approved residential mortgage lender, engaged in a regular practice of reckless origination and underwriting of its FHA retail loans, all the while knowing that it would not be responsible when the defective loans went into default. To maximize its loan volume (and profits), Wells Fargo elected to hire temporary staff to churn out and approve an ever increasing quantity of FHA loans, but neglected to provide this inexperienced staff with proper training. At the same time, Wells Fargo’s management applied pressure on its underwriters to approve more and more FHA loans. The bank also imposed short turnaround times for deciding whether to approve the loans, employed lax underwriting standards and controls and paid bonuses to underwriters and other staff based on the number of loans approved. Predictably, as a result, Wells Fargo’s loan volume and profits soared, but the quality of its loans declined significantly. Yet, when Wells Fargo’s senior management was repeatedly advised by its own quality assurance reviews of serious problems with the quality of the retail FHA loans that the Bank was originating, management disregarded the findings and failed to implement proper and effective corrective measures, leaving HUD to pay hundreds of millions of dollars in claims for defaulted loans.
Second, Wells Fargo failed to self-report to HUD the bad loans that it was originating, in violation of FHA program reporting requirements. During the period 2002 through 2010, HUD required Direct Endorsement Lenders to perform post-closing reviews of the loans that they originated and to report to HUD in writing loans that contained fraud or other serious deficiencies. This requirement provided HUD with an opportunity to investigate the defective loans and request reimbursement for any claim that HUD had paid or request indemnification for any future claim, as appropriate. During this nine-year period, Wells Fargo, through its post-closing reviews, internally identified thousands of defective FHA loans that it was required to self-report to HUD, including a substantial number of loans that had gone into “early payment default.” However, instead of reporting these loans to HUD as required, Wells Fargo engaged in virtually no self-reporting during the four-year period from 2002 through 2005 and only minimal self-reporting after 2005.
In his capacity as Vice President of Credit-Risk – Quality Assurance at Wells Fargo, Lofrano executed on Wells Fargo’s behalf the annual certifications required by HUD for the Bank’s participation in the Direct Endorsement Lender program for certain years. Lofrano also organized and participated in the working group responsible for creating and implementing Wells Fargo’s self-reporting policies and procedures. In contravention of HUD’s requirements, that group failed to report to HUD loans that Wells Fargo had internally identified as containing material underwriting findings. Moreover, Lofrano received Wells Fargo quality assurance reports identifying thousands of FHA loans with material findings – very few of which Wells Fargo reported to HUD.
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As part of the settlement, Wells Fargo has admitted, acknowledged and accepted responsibility for, among other things, the following conduct: During the period from May 2001 through, on or about Dec. 31, 2008, Wells Fargo submitted to HUD certifications stating that certain residential home mortgage loans were eligible for FHA insurance when in fact they were not, resulting in the Government having to pay FHA insurance claims when certain of those loans defaulted. From May 2001 through January 2003, Wells Fargo’s quality assurance group conducted monthly internal reviews of random samples of the retail FHA mortgage loans that the Bank had already originated, underwritten, and closed, which identified for most of the months that in excess of 25 percent of the loans and in several consecutive months, more than 40 percent of the loans, had a material finding. For a number of the months during the period from February 2003 through September 2004, the material finding rate was in excess of 20 percent. A “material” finding was defined by Wells Fargo generally as a loan file that did not conform to internal parameters and/or specific FHA parameters, contained significant risk factors affecting the underwriting decision and/or evidenced misrepresentation.
Wells Fargo also admitted, acknowledged and accepted responsibility for the following additional conduct: Between 2002 and October 2005, Wells Fargo made only one self-report to HUD, involving multiple loans. During that same period, the Bank identified through its internal quality assurance reviews approximately 3,000 FHA loans with material findings. Further, during the period between October 2005 and December 2010, Wells Fargo only self-reported approximately 300 loans to HUD. During that same period, Wells Fargo’s internal quality assurance reviews identified more than 2,900 additional FHA loans containing material findings that the Bank did not self-report to HUD. The government was required to pay FHA insurance claims when certain of these loans that Wells Fargo identified with material findings defaulted.
Lofrano admitted, acknowledged, and accepted responsibility for, among other things, the following matters in which he participated: From Jan. 1, 2002, until Dec. 31, 2010, he held the position of Vice President of Credit Risk – Quality Assurance at Wells Fargo; in that capacity, he supervised the Decision Quality Management group; in 2004, he was asked to organize a working sub-group to address reporting to HUD; in or about October 2005, he organized a working group that drafted Wells Fargo’s new self-reporting policy and procedures; and during the period October 2005 through Dec. 31, 2010, based on application of the Bank’s new self-reporting policy and by committee decision, Wells Fargo did not report to HUD the majority of the FHA loans that the Bank’s internal quality assurance reviews had identified as having material findings.
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Principal Deputy Assistant Attorney General Mizer thanked the U.S. Attorney’s Office for the Southern District of New York and the U.S. Attorney’s Office for the Northern District of California for their diligent pursuit and successful resolution of this matter and the Commercial Litigation Branch, HUD’s Office of General Counsel and HUD’s Office of Inspector General, for their extraordinary support.
The case settled by today’s settlement is captioned United States v. Wells Fargo Bank, N.A., et. al., 12-cv-7527 (S.D.N.Y.)
United States Attorney’s Office Provides Training on Sexting to Guam Department of Education StaffRead the Press Release
Alicia A.G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that the U.S. Attorney’s Office sponsored training on Child Sexual Exploitation, Child Pornography, Sexting, Internet Dangers and Safety Tips, on April 6, 2016. The presenters at the training were U.S. Attorney Alicia Limtiaco, and U.S. Department of Homeland Security/Homeland Security Investigations Special Agents Avery Cepeda and Richard Flores.
The training was attended by over 60 school officials, including administrators, principals, vice principals, psychologists, program coordinators, and others.
Photos:
U.S. Attorney Alicia Limtiaco U.S. Attorney Alicia Limtiaco addressing the Guam Department of Education participants at the training HSI Special Agents Avery Cepeda and Richard Flores during their presentationUnited States Attorney Emily Gray Rice to Speak at Events Honoring Crime Victims and Victim AdvocatesRead the Press Release
CONCORD, NEW HAMPSHIRE: United States Attorney Emily Gray Rice will address crime victims and crime victim advocates at two events being held during the week of April 10 to April 16, 2016 which has been designated as National Crime Victims’ Rights Week. The theme of National Crime Victims’ Rights Week this year is “Serving Victims, Building Trust, and Restoring Hope.”
The New Hampshire Crime Victims’ Rights Celebration will be held April 11 at 9:30 a.m. at St. Paul’s Church in Concord, New Hampshire. The event will feature United States Attorney Rice and New Hampshire Attorney General Joseph Foster. This event is a co-sponsored by the United States Attorney’s Office for the District of New Hampshire, the New Hampshire Attorney General’s Office, the New Hampshire Coalition Against Domestic and Sexual Violence, AmeriCorps Victims Assistance Program and Victims, Inc. The event is open to the public.
United States Attorney Rice will also speak at the Tri-State Advanced Victim Assistance Academy, an annual training event jointly sponsored by the United States Attorney’s Offices in Maine, Vermont and New Hampshire. The Academy is hosted this year by the United States Attorney for the District of New Hampshire and will be held on April 12 and 13, 2016 in Concord. The two day conference will build on the knowledge and skills advocates receive in basic and foundational trainings. The goal is to educate and support victim advocates and individuals who work closely with victims of crime. Additional information for victim support can be found at https://www.justice.gov/usao-nh/programs/victim-witness-assistance-program or by contacting Victim Witness Specialist Jennifer Hunt at the United States Attorney’s Office.
United States Attorney Rice stated: “Crime victims deserve to be treated with empathy and respect. During National Crime Victims’ Rights Week we honor the goals of providing assistance and support to crime victims and the advocates who spend countless hours helping victims every day. As the United States Attorney for the District of New Hampshire and an advocate for the protection and support of all victims, I look forward to working closely with federal, state and local law enforcement and victim advocates to make sure victims’ voices are heard, their concerns addressed, and their role as victims of crime are recognized. Together we can ensure justice for victims and support their healing.”
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U.S. Customs and Border Protection Officers Arrest Pair Attempting to Smuggle Marijuana into the Virgin IslandsRead the Press Release
St. Thomas, USVI – Sierra Wimberly, 25, and Noelle Bishopel, 27, both Atlanta, Georgia residents, made their initial appearances on April 7, 2016, before U.S. Magistrate Judge Ruth Miller after being charged in separate complaints with possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced. Wimberly and Bishopel were both released on unsecured $10,000 bonds pending further proceedings.
According to the complaints, on April 6, 2016, at the Cyril E. King Airport, St. Thomas, Virgin Islands, a U.S. Customs and Border Protection (CBP) K-9 detected narcotics in checked bags belonging to Wimberly and Bishopel, who had arrived on a Delta Airlines flight from Atlanta. When Wimberly and Bishopel de-planed the aircraft, they were taken to secondary inspection where their checked bags were examined. CBP officers seized and field-tested approximately 4.9 kilograms of marijuana from Wimberly’s bag and approximately 10.25 kilograms of marijuana from Bishopel’s bag.
Under federal law if convicted of possession with intent to distribute marijuana, Wimberly and Bishopel each face a maximum of five years in prison and a $250,000 fine. This case is being investigated by CBP and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Everard Potter.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
U.S. Attorney’s Office Supports National Crime Victims’ Rights WeekRead the Press Release
KNOXVILLE, Tenn. - The Office for Victims of Crime (OVC) helps lead communities throughout the country in their annual observances of National Crime Victims’ Rights Week (NCVRW) every April by promoting victims’ rights, and honoring crime victims and those who advocate on their behalf. This year’s NCVRW will be held April 10-16, 2016. The theme -- Serving Victims. Building Trust. Restoring Hope. -- presents the opportunity to highlight the importance of providing needed services at the earliest stage of victimization. Early intervention helps prevent both further victimization and involvement in the criminal justice system, thus addressing the cycle of violence and restoring hope for the future.
Beginning at 10:00 a.m., on Wednesday, Apr. 13, 2016, various agencies, including the U.S. Attorney’s Office for the Eastern District of Tennessee, will celebrate NCVRW with displays in the courtyard of the Howard Baker Federal Courthouse, Knoxville. These displays will commemorate the advancement of victims’ rights by honoring all champions in advocating for expanded support and services to communities affected by crime.
NCVRW honors and celebrates the achievements of the past 30 years in securing rights, protections, and services for victims. The bipartisan Victims of Crime Act (VOCA), passed by Congress in 1984, created a national fund to ease victims’ suffering. Financed by fines and penalties paid by offenders, the Crime Victims Fund supports services for victims of all types of crime, including assistance for homicide survivors, survivors of child sexual abuse and victims of human trafficking, as well as rape crisis centers and domestic violence programs among others. VOCA also funds victim compensation programs that pay victims’ out-of-pocket expenses such as counseling, funeral expenses, and lost wages.
“If victims are to trust that the criminal justice system will work for them, we must meet them where they are—physically, culturally, and emotionally,” said Joye E. Frost, Director, OVC, U.S. Department of Justice. “When we take the time to focus on the victim in the aftermath of crime—to address their needs for safety and justice—we can begin to build trust and restore the hope of those victims and their communities. We all play a role in helping victims as they rebuild their lives.”
OVC encourages widespread participation in the week’s events and in other victim-related observances throughout the year. For additional ideas on how to support victims of crime, visit the Office for Victims of Crime website, www.ovc.gov.
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U.S. Attorneys for the Northern District of California and Southern District of New York Announce $1.2 Billion Settlement of Claims Against Wells Fargo Bank, N.A., for Improper Mortgage Lending PracticesRead the Press Release
Brian J. Stretch, the United States Attorney for the Northern District of California, Preet Bharara, United States Attorney for the Southern District of New York, Benjamin C. Mizer, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division, Julián Castro, Secretary of the U.S. Department of Housing and Urban Development (HUD), and David A. Montoya, Inspector General of HUD (HUD-OIG), announced today that the United States has settled civil mortgage fraud claims against Wells Fargo Bank, N.A. (“Wells Fargo” or the “Bank”), and Wells Fargo executive Kurt Lofrano (Lofrano), stemming from Wells Fargo’s participation in the Federal Housing Administration (FHA) Direct Endorsement Lender Program. In the settlement, Wells Fargo agreed to pay $1.2 billion and admitted, acknowledged, and accepted responsibility for, among other things, certifying to HUD, during the period from May 2001 through December 2008, that certain residential home mortgage loans were eligible for FHA insurance when in fact they were not, resulting in the Government having to pay FHA insurance claims when certain of those loans defaulted. The agreement resolves an investigation conducted by the U.S. Attorney’s Office for the Northern District of California into whether American Mortgage Network, LLC (AMNET), a mortgage lender acquired by Wells Fargo in 2009, falsely certified and submitted ineligible residential mortgage loans for FHA insurance. The agreement also resolves the United States’ civil claims in its lawsuit in the Southern District of New York as well as an investigation conducted by the U.S. Attorney’s Office for the Southern District of New York regarding Wells Fargo’s FHA origination and underwriting practices subsequent to the claims in its lawsuit.
Northern District of California U.S. Attorney Brian Stretch said: “Misconduct in the mortgage industry helped lead to a destructive financial crisis that spanned the globe. American Mortgage Network’s origination of FHA-insured loans that did not comply with Government requirements also caused major losses to the public fisc. Today’s settlement demonstrates the Department of Justice’s resolve to pursue remedies against those who engaged in this type of misconduct.”
Manhattan U.S. Attorney Preet Bharara said: “Today, Wells Fargo, one of the biggest mortgage lenders in the world, has been held responsible for years of reckless underwriting, while relying on government insurance to deal with the damage. Wells Fargo has long taken advantage of the FHA mortgage insurance program, designed to help millions of Americans realize the dream of home ownership, to write thousands and thousands of faulty loans. Driven to maximize profits, Wells Fargo employed shoddy underwriting practices to drive up loan volume, at the expense of loan quality. Even though Wells Fargo identified through internal quality assurance reviews thousands of problematic loans, the Bank decided not to report them to HUD. As a result, while Wells Fargo enjoyed huge profits from its FHA loan business, the government was left holding the bag when the bad loans went bust. With today’s settlement, Wells Fargo has finally resolved the years-long litigation, adding to the list of large financial institutions against which this Office has successfully pursued civil fraud prosecutions.”
HUD Secretary Julián Castro said: “This Administration remains committed to holding lenders accountable for their lending practices. The $1.2 billion settlement with Wells Fargo is the largest recovery for loan origination violations in FHA’s history. Yet, this monetary figure can never truly make up for the countless families that lost homes as a result of poor lending practices.”
Principal Deputy Assistant Attorney General Benjamin C. Mizer said: “This settlement is another step in the Department of Justice’s continuing efforts to hold accountable FHA approved lenders that knowingly submit false claims at the expense of American homeowners and taxpayers. In addition to today's resolution with Wells Fargo, the Department has pursued similar misconduct by many other lenders, returning more than $4 billion to the FHA fund and the U.S. Treasury, and filing suit where appropriate. We remain committed to protecting the public fisc from all who seek to abuse it, whether they do business on Wall Street or Main Street.”
HUD Inspector General David A. Montoya said: “This matter is not just a failure by Wells Fargo to comply with federal requirements in FHA’s Direct Endorsement Lender program – it’s a failure by one of our trusted participants in the FHA program to demonstrate a commitment to integrity and to ordinary Americans who are trying to fulfill their dreams of homeownership.”
According to the Second Amended Complaint filed in Manhattan federal court:
WELLS FARGO has been a participant in the Direct Endorsement Lender program, a federal program administered by FHA. As a Direct Endorsement Lender, WELLS FARGO has the authority to originate, underwrite, and certify mortgages for FHA insurance. If a Direct Endorsement Lender approves a mortgage loan for FHA insurance and the loan later defaults, the holder or servicer of the loan may submit an insurance claim to HUD for the outstanding balance of the defaulted loan, along with any associated costs, which HUD must then pay. Under the Direct Endorsement Lender program, neither FHA nor HUD reviews a loan for compliance with FHA requirements before it is endorsed for FHA insurance. Direct Endorsement Lenders are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and maintaining a quality control program that can prevent and correct any deficiencies in their underwriting. The quality control program requirements include conducting a full review of all loans that go 60 days into default within the first six payments, known as “early payment defaults”; taking prompt and adequate corrective action upon discovery of fraud or serious underwriting problems; and disclosing to HUD in writing all loans containing evidence of fraud or other serious underwriting deficiencies. WELLS FARGO failed to comply with these basic requirements.
First, between at least May 2001 and October 2005, WELLS FARGO, the largest HUD-approved residential mortgage lender, engaged in a regular practice of reckless origination and underwriting of its FHA retail loans, all the while knowing that it would not be responsible when the defective loans went into default. To maximize its loan volume (and profits), WELLS FARGO elected to hire temporary staff to churn out and approve an ever increasing quantity of FHA loans, but neglected to provide this inexperienced staff with proper training. At the same time, WELLS FARGO’s management applied pressure on its underwriters to approve more and more FHA loans. The Bank also imposed short turnaround times for deciding whether to approve the loans, employed lax underwriting standards and controls, and paid bonuses to underwriters and other staff based on the number of loans approved. Predictably, as a result, WELLS FARGO’s loan volume and profits soared, but the quality of its loans declined significantly. Yet, when WELLS FARGO’s senior management was repeatedly advised by its own quality assurance reviews of serious problems with the quality of the retail FHA loans that the Bank was originating, management disregarded the findings and failed to implement proper and effective corrective measures, leaving HUD to pay hundreds of millions of dollars in claims for defaulted loans.
Second, WELLS FARGO failed to self-report to HUD the bad loans that it was originating, in violation of FHA program reporting requirements. During the period 2002 through 2010, HUD required Direct Endorsement Lenders to perform post-closing reviews of the loans that they originated and to report to HUD in writing loans that contained fraud or other serious deficiencies. This requirement provided HUD with an opportunity to investigate the defective loans and request reimbursement for any claim that HUD had paid or request indemnification for any future claim, as appropriate. During this nine-year period, WELLS FARGO, through its post-closing reviews, internally identified thousands of defective FHA loans that it was required to self-report to HUD, including a substantial number of loans that had gone into “early payment default.” However, instead of reporting these loans to HUD as required, WELLS FARGO engaged in virtually no self-reporting during the four-year period from 2002 through 2005, and only minimal self-reporting after 2005.
In his capacity as Vice President of Credit-Risk – Quality Assurance at WELLS FARGO, LOFRANO executed on WELLS FARGO’s behalf the annual certifications required by HUD for the Bank’s participation in the Direct Endorsement Lender program for certain years. LOFRANO also organized and participated in the working group responsible for creating and implementing WELLS FARGO’s self-reporting policies and procedures. In contravention of HUD’s requirements, that group failed to report to HUD loans that WELLS FARGO had internally identified as containing material underwriting findings. Moreover, LOFRANO received WELLS FARGO quality assurance reports identifying thousands of FHA loans with material findings – very few of which WELLS FARGO reported to HUD.
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As part of the settlement, Wells Fargo has admitted, acknowledged, and accepted responsibility for, among other things, the following conduct: During the period from May 2001 through on or about December 31, 2008, Wells Fargo submitted to HUD certifications stating that certain residential home mortgage loans were eligible for FHA insurance when in fact they were not, resulting in the Government having to pay FHA insurance claims when certain of those loans defaulted. From May 2001 through January 2003, Wells Fargo’s quality assurance group conducted monthly internal reviews of random samples of the retail FHA mortgage loans that the Bank had already originated, underwritten, and closed which identified for most of the months that in excess of 25 percent of the loans, and in several consecutive months, more than 40 percent of the loans, had a material finding. For a number of the months during the period from February 2003 through September 2004, the material finding rate was in excess of 20%. A “material” finding was defined by Wells Fargo generally as a loan file that did not conform to internal parameters and/or specific FHA parameters, contained significant risk factors affecting the underwriting decision, and/or evidenced misrepresentation.
Wells Fargo also admitted, acknowledged, and accepted responsibility for the following additional conduct: Between 2002 and October 2005, Wells Fargo made only one self-report to HUD, involving multiple loans. During that same period, the Bank identified through its internal quality assurance reviews approximately 3,000 FHA loans with material findings. Further, during the period between October 2005 and December 2010, Wells Fargo only self-reported approximately 300 loans to HUD. During that same period, Wells Fargo’s internal quality assurance reviews identified more than 2,900 additional FHA loans containing material findings that the Bank did not self-report to HUD. The Government was required to pay FHA insurance claims when certain of these loans that Wells Fargo identified with material findings defaulted.
Lofrano admitted, acknowledged, accepted responsibility for, among other things, the following matters in which he participated: From January 1, 2002, until December 31, 2010, he held the position of Vice President of Credit Risk – Quality Assurance at Wells Fargo; in that capacity, he supervised the Decision Quality Management group; in 2004, he was asked to organize a working sub-group to address reporting to HUD; in or about October 2005, he organized a working group that drafted Wells Fargo’s new self-reporting policy and procedures; and during the period October 2005 through December 31, 2010, based on application of the Bank’s new self-reporting policy and by committee decision, Wells Fargo did not report to HUD the majority of the FHA loans that the Bank’s internal quality assurance reviews had identified as having material findings.
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Mr. Stretch and Mr. Bharara thanked HUD’s Office of General Counsel, HUD-OIG, and the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division for their extraordinary assistance with the prosecution and settlement of this case.
This resolution with Wells Fargo is the latest in a string of civil fraud cases pursued by the United States in recent years alleging fraudulent lending practices by residential mortgage lenders.
The American Mortgage Network investigation was handled by Assistant U.S. Attorney Sara Winslow with assistance from Jacqueline Hollar.
U.S. Attorney Polite Announces Events in Honor of National Crime Victims’ Rights WeekRead the Press Release
U.S. Attorney Kenneth A. Polite announced that his Office will observe National Crime Victims’ Rights Week through the following special events and programs:
Saturday, April 9, 2016 Crime Victim’s Rights Informational Table
4:00 pm – 7:00 pm Walmart Superstore, 1901 Tchoupitoulas St. New Orleans
Wednesday, April 13, 2016 Crime Victim’s Rights Informational Table
5:00 pm – 8:00 pm Young Leadership Council Wednesday at the Square,
Lafayette Square, 601 S Maestri Place, New Orleans
Thursday, April 14, 2016 Crime Victim’s Rights Informational Table
10:00 am Washington-St. Tammany Parish Crime Victim’s Recognition Ceremony
Washington-St. Tammany Parish Justice Center
701 N. Columbia St., Covington
Friday, April 15, 2016 Crime Victim’s Rights Informational Table
10:00 am -1:00 pm Circle Food Store, 1522 St. Bernard Avenue, New Orleans
Saturday, April 16, 2016 Crime Victim’s Rights Informational Table
9:00 am – 12:00 pm The Good Shepherd Nativity School
Community Health & Wellness Fair
Kingsley House Gymnasium
1600 Constance St., New Orleans
Members of the U.S. Attorney’s Office will be on-hand at each of these events. All members of the public are welcome to attend, where they can obtain information on victims’ rights and federal resources through the DOJ’s Office for Victims of Crime (“OVC”) and the Crime Victims Fund.
National Crime Victims’ Rights Week, celebrated nationally from April 10-16, 2016, honors and celebrates the achievements of the past thirty years in securing rights, protections, and services for victims. This year’s theme—Serving Victims. Building Trust. Restoring Hope.—presents the opportunity to highlight the importance of providing needed services at the earliest stage of victimization. Early intervention helps prevent both further victimization and involvement in the criminal justice system, thus addressing the cycle of violence and restoring hope for the future.
OVC encourages widespread participation in the week’s events and in other victim-related observances throughout the year. The U.S. Department of Justice will host OVC’s annual Service Awards Ceremony on Tuesday, April 12, in Washington, DC, to honor outstanding individuals and programs that serve victims of crime. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please contact The U.S. Attorney’s Office, Eastern District of Louisiana Victim/Witness Unit at 504-680-3000 or visit www.usdoj.gov/usao/lae. For additional ideas on how to support victims of crime, visit the Office for Victims of Crime website, www.ovc.gov.
Two Men Sentenced for Armed Robbery of Fast Food RestaurantRead the Press Release
STATESVILLE, N.C. – Two men responsible for the armed robbery of an area fast food restaurant were sentenced to prison yesterday, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Dashawn Raquan Hunt, 27, and Davon Santario McKnight, 26, both of Charlotte, were sentenced to 192 and 87 months in prison, respectively. They were also each ordered by U.S. District Judge Richard L. Voorhees to spend three years under court supervision after they are released from prison.
“Over the past year, efforts have been aimed at crime prevention. However, the vigorous prosecution of violent criminals who spread fear in our communities and put innocent lives at risk remains a priority for my office. I would like to thank our local and federal law enforcement partners for their thorough investigation of this case that resulted in two dangerous criminals being taken off our streets,” said U.S Attorney Rose.
According to filed court documents and court proceedings, on February 5, 2014, Hunt and McKnight, wearing hoodies, masks, gloves, and brandishing handguns, entered a Firehouse Subs restaurant located at 14039 East Independence Boulevard in Indian Trail, N.C. The two men ordered some restaurant employees and patrons to get on the floor at gunpoint and told other employees to hand them money from the cash register and the safe. Hunt and McKnight then then fled the scene in a Ford Crown Victoria with $1,000 in cash. According to court records, a concerned citizen saw the pair leaving the restaurant and thinking their behavior was suspicious called 9-1-1. A police officer responding to the call stopped the vehicle and after approaching the car he noticed that one person was in the driver’s seat and another was lying down in the back seat. Court records show while the police officer called for back-up the two robbers took off in their car and sped away toward Charlotte. According to court records, Hunt and McKnight were arrested shortly thereafter, after the driver crashed his car into another vehicle.
According to court records, four days prior to this armed robbery, Hunt, assisted by Toburia Qunita Bennett, robbed at gunpoint a McAllister’s Deli located in Mooresville, N.C. According to court documents, on February 1, 2014, at about 4:00 a.m., Hunt approached a deliveryman who was making a delivery at the restaurant. Court records show that Hunt pointed his gun at the deliveryman and directed him inside the restaurant, where he ordered the victim to put the store’s safe on a dolly and wheel it out to the parking lot. Hunt then tied up the deliveryman inside the store and fled. Court records indicate that the deliveryman was able to get loose and call the police. Officers later found the store’s safe still sitting on the dolly in the restaurant’s parking lot.
According to court records, law enforcement located Bennett’s vehicle at a nearby gas station. Bennett denied to law enforcement any involvement in the robbery and was arrested at the scene for driving with an expired license. Court records indicate that while Bennett was sitting in her car, Hunt went to a nearby QT gas station, pointed a gun at the cashier and demanded the keys to the attendant’s car. The attendant handed over the keys to Hunt, who fled the scene in the stolen vehicle.
Bennett, 28, of Charlotte, later admitted to knowing that Hunt had committed other robberies and that he used a gun to carry out those robberies. She pleaded guilty to conspiracy to commit armed robbery and was sentenced in February 2016 to 43 months in prison and three years of supervised release.
Hunt and McKnight pleaded guilty to robbery charges in April 2015. Hunt also pleaded guilty to carjacking and use of a firearm in furtherance of a crime of violence in connection with the McAllister’s Deli robbery. They are both currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose thanked John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Chief Damon Williams of the Mooresville Police Department; Sheriff Eddie Cathey of the Union County Sheriff’s Office; Chief M.E. Plyler, Jr. of the Stallings Police Department; Chief Kerr Putney of the Charlotte-Mecklenburg Police Department; and Chief Rob Hunter of the Matthews Police Department for investigating the case.
Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Two Men Plead Guilty in Major Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Javier Pagan, Jr. and Samuel Hernandez pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, cocaine, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between 2013 and June 10, 2015, law enforcement officers have been investigating a drug trafficking organization led by defendants David Jesus Pagan and Rafael Burgos, Jr. During the course of the investigation, it was determined that the defendants distributed multiple kilograms of cocaine throughout the Dunkirk area.
Javier Pagan and Hernandez were arrested in June of 2013 along with David Jesus Pagan, Burgos, as well as Alvin Torres, Jr. and Angel Pierluissi. Search warrants were executed at the time of the arrests at six properties which resulted in the recovery of more than seven kilograms of cocaine and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine.
Charges are pending against David Jesus Pagan, Burgos, Alvin Torres, Jr. and Angel Pierluissi. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The indictments are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Dunkirk Police Department, under the direction of Chief David C. Ortolano, the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb, and the Chautauqua County District Attorney’s Office, under the direction of Patrick Swanson.
Hernandez will be sentenced on July 19, 2016 at 4:00 p.m. before Judge Wolford. Sentencing for Pagan will be scheduled at a later date.
Two Defendants Plead Guilty to Child ExploitationRead the Press Release
SACRAMENTO, Calif. — Jason S. Wymer, 44, of Citrus Heights, pleaded guilty today to sexual exploitation of children, United States Attorney Benjamin B. Wagner announced. Previously, on March 25, 2016, co-defendant Stormy M. Avers, 36, of Placerville, pleaded guilty to sexual exploitation of children.
According to court documents, the case began when a parent accidentally texted a photo of her eight-year-old to a wrong number who turned out to be Wymer. Thinking he received the picture from a child, Wymer responded and began a dialog. The parent brought the cellphone to the FBI, and an undercover employee, pretending to be an eight-year-old child, continued the dialog with Wymer, whom investigators were subsequently able to locate.
Upon his arrest, law enforcement found photos of Wymer and co-defendant Avers molesting a child, who was approximately three years old, in order to create child pornography. Avers had custody and control of the child at the time. In pleading guilty, Wymer admitted to this conduct, and also to a separate instance of sexual exploitation of a four-year-old child in August of 2011.
A third defendant, Jolene Davis, 40, of Stockton, is charged with having participated with Wymer in the sexual exploitation of a child of whom she had control or custody. Davis is scheduled to appear for a status conference before Judge Burrell on April 22, 2016. The charges against Davis are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Wymer is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on July 29, 2016. Wymer faces up to 30 years in federal prison. Ayers is scheduled to be sentenced on June 24, 2016. She faces up to 20 years in federal prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes against Children Task Force. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Texas Man Pleads Guilty in Drug ConspiracyRead the Press Release
Aldrin Javier Espinoza, 23, of Pharr, Texas, pled guilty today for his part in a three-count indictment charging him with Conspiracy to Distribute Controlled Substance, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced. Espinoza’s sentencing hearing has been set for June 24, 2016, and he faces penalties of no less than 10 years in federal prison, a fine of up to $10,000,000, at least 5 years supervised release and a $100 special assessment.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Deirdre A. Durborow.