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Friday 19 February 2016
Violent Carjacker Sentenced to 248 Months in PrisonRead the Press Release
PHILADELPHIA - Michael Green, 33, of Philadelphia, PA, was sentenced today to 248 months in prison, including a 60-month mandatory minimum prison term, for the armed carjacking of three men on December 5, 2012. In addition to the prison term, U.S. District Court Judge R. Barclay Surrick ordered five years of supervised release and a $200 special assessment.
Judge Surrick ordered Green to serve this sentence partially consecutively to a 180-month federal sentence Green is already serving for his earlier conviction in a multi-year drug trafficking conspiracy.
On the night of December 5, 2012, Green and an accomplice disguised themselves as police officers, with fake police clothing, badges and guns. Using fake police lights, Green and his accomplice pulled over three men who were returning from a funeral in a Chevrolet Silverado pick-up truck, claimed to be police officers, and then carjacked the victims at gunpoint. After handcuffing the three men and forcing them into the back seat of the truck, Green pistol-whipped the victims and threatened to kill them. The three victims managed to escape by leaping from the moving vehicle, with one of them suffering serious injuries in the process.
Green was arrested after the victims located and identified the car Green and his accomplice had used to pull them over. A search warrant revealed that Green had rented the car in his own name, and had left his wallet with his identification and credit cards as well as his cell phones inside the car. On July 23, 2014, a federal jury found Green guilty of carjacking, and using a firearm during a crime of violence.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations and was prosecuted by Assistant United States Attorneys V. Paige Pratter and Mark S. Miller.
Two Women Sentenced for Role in Bath Salts ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Treiu Thuy Duong, age 37, of Sarasota, Florida, and Maura Kathio, age 27, of Yatesville, Pennsylvania, were sentenced today by U.S. District Court Judge Malachy E. Mannion in Scranton, for drug related offenses.
According to United States Attorney Peter Smith, Duong, who resided in Texas at the time of her arrest, was sentenced today to serve 70 months in prison and ordered to forfeit her interest in more than $750,000 in assets for her role in a conspiracy to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts.”
Duong admitted to conspiring with others to distribute alpha-pvp to customers in at least 32 states, including Pennsylvania, over various web sites during 2011 through March 2014.
Treiu Thuy Duong was indicted by a federal grand jury in March 2014.
Judge Mannion ordered the defendant to forfeit to the government her interest in a residence in Texas valued at approximately $300,000, coins valued at more than $260,000, four bank accounts containing over $200,000, two vehicles, over $7000 in cash and more than $17,000 in uncashed money orders, and two firearms. Duong must also spend three years on supervised release following her prison sentence.
Kathio was sentenced to 18 months in prison for her role in a drug conspiracy that distributed alpha-pvp in 2012-2013 in the Luzerne County area. Kathio, previously pleaded guilty to conspiracy to distribute alpha-pvp. Kathio admitted to participating in the West Pittston-based drug conspiracy and to distributing 150 grams of alpha-pvp, a controlled substance analogue.
Kathio was indicted by a federal grand jury in Scranton in August 2014.
Judge Mannion also ordered Kathio to be placed on three years of supervised release following her prison sentence.
Eleven persons have been charged as participants in the conspiracy which involved wholesale suppliers of alpha-pvp based in Texas, and retail distributors of the drug in Luzerne County. All eleven suspects have entered guilty pleas in the case.
The investigation was conducted by agents of the Department of Homeland Security, the Drug Enforcement Administration, United States Postal Inspectors, the Pennsylvania State Police, and West Pittston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Two Local Men Sentenced on Synthetic Drug Trafficking ChargesRead the Press Release
St. Louis, MO – The two leaders of a multi-defendant synthetic drug trafficking conspiracy were sentenced today in federal court in St. Louis. Anwer Rao, O’Fallon, IIllinois, was sentenced to 150 months in prison; and Michael Lentsch, also of O’Fallon, Illinois, was sentenced to 150 months in prison. Both appeared before United States District Judge John A. Ross.
The manufacture of synthetic drugs is a recent development designed to circumvent traditional drug laws by creating new chemical compounds that mimic the effects of drugs like marijuana and cocaine but purport to avoid the classification of a controlled substance because of a chemical alteration. The synthetic drugs are most frequently marketed as legitimate products and sold in typical commercial outlets such as convenience stores and gas stations. The drugs masquerade as incense, potpourri, glass cleaner, bath salts and plant food, just to name a few; their cost however is much higher than the normal commercial product they mimic.
One group of synthetic drugs is made up of cathinones, and is a “speed” type drug commonly marketed as bath salts. The synthetic cathinones are typically snorted, and are packaged in containers with names such as Full Throttle, Fresh, Limited, Starry Nights, Twisted, Pump It and Blitz. Rao and Lentsch manufactured and marketed cathinones under the name “Go Go.” Reported effects have included hypertension, paranoia, anxiety and even psychosis.
Another group of synthetic drugs is made from synthetic cannabinoids which are a far more powerful and unpredictable form of marijuana. The cannabinoids are typically smoked and are packaged in multi-gram packets with names such as Mega Kush, Mad Hatter, Bayou Blaster, Avalon, Pirates Booty, Lights Out and Golden Leaf. Rao and Lentsch manufactured and marketed their own blends of synthetic cannabinoids under the names “Mad Hatter,” “Deew.” “Cloud 9 Optima,” “Crazy Eyes,” and “Primo.” Although commonly referred to as synthetic marijuana, the effects are far more powerful and dangerous than so-called natural marijuana, with reported additional effects, including excessive heart rate, vomiting and seizures.
These sentencing’s were part of a multi-defendant case charging offenses involving the importation, manufacturing and sale of these synthetic drugs. Several co-defendants have pled guilty to related charges and await sentencing. Others are still facing trial on charges including: a) conspiracy to distribute and possess with the intent to distribute Schedule I controlled substances and Schedule I controlled substance analogues; b) conspiracy to introduced an receive misbranded drugs in interstate commerce; c) conspiracy to import controlled substances and controlled substance analogues; d) conspiracy to receive, sell and facilitate the transportation of smuggled goods with forfeiture allegations; and e) money laundering counts.
The drug conspiracy charges and money laundering conspiracy charges carry a penalty of up to 20 years in prison for each count and/or fines ranging from $500,000 to $1,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Additionally, the indictments seek forfeiture of assets and property totaling more than $12 million dollars.
This case was investigated by US Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service Criminal Investigation, Drug Enforcement Administration and the Postal Inspection Service. Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, Missouri Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern Illinois, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office, as well as the prosecuting attorney offices in St. Louis County, Missouri, St. Charles County, Missouri, Madison County, Illinois and St. Clair County, Missouri. Assistant United States Attorneys James Delworth, Erin Granger, Jennifer Winfield and John Mantovani are handling the cases for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. The remaining defendants are presumed to be innocent unless and until proven guilty.
Two Executives Charged for Conspiring to Eliminate Competition to Supply Water Treatment ChemicalsRead the Press Release
Two water treatment chemicals executives were indicted in Newark, New Jersey, for their roles in a conspiracy to eliminate competition among suppliers of liquid aluminum sulfate to municipalities and pulp and paper companies in the United States, the Department of Justice announced today.
Vincent J. Opalewski, former president, vice president and general manager of a water treatment chemicals manufacturer headquartered in Parsippany, New Jersey, and Brian C. Steppig, director of sales and marketing of a water treatment chemicals manufacturer headquartered in Lafayette, Indiana, are the second and third executives charged in connection with the conspiracy, which sought to eliminate competition for contracts to supply liquid aluminum sulfate. Liquid aluminum sulfate is a coagulant used by municipalities to treat drinking and waste water and by pulp and paper companies in their manufacturing processes.
“Municipalities and pulp and paper companies deserve competitive prices for water treatment chemicals,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “These charges reflect our ongoing efforts to hold accountable those who conspire to cheat their customers responsible for their crimes.”
“These charges send a message that anyone intent on corrupting the free market will be identified and brought to justice,” said Acting Special Agent in Charge Andrew Campi of the FBI’s Newark Division. “Our mission is to protect victims who don't see these crimes occurring, but who always end up paying the price.”
The indictment, returned by a grand jury in the U.S. District Court for the District of New Jersey, alleges that Opalewski, from 2005 to 2011, and Steppig, from 1998 until 2011, and their co-conspirators participated in the conspiracy by meeting to discuss each other’s liquid aluminum sulfate business, agreeing to stay away from each other’s historical customers, submitting intentionally losing bids to favor the intended winner of the business, withdrawing inadvertently winning bids and discussing with each other prices to be quoted to municipalities and pulp and paper companies.
The charges contained in the indictment are allegations and not evidence of guilt. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation into collusion in the liquid aluminum sulfate industry is being conducted by the New York Office of the Antitrust Division and the FBI’s Newark Division. Anyone with information regarding price fixing, bid rigging or customer allocation in the sale and marketing of liquid aluminum sulfate should contact the Antitrust Division’s New York Office at 212-335-8000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, or visit www.justice.gov/atr/contact/newcase.htm.
Opalewski Steppig Indictment (313.51 KB)
Three Men Charged in Drug Related Homicide of Two Men in Tangipahoa ParishRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DON RAINES, age 34, TRAVON PITTS, age 28, and BARON SMITH, age 36, all of Tangipahoa Parish, have been charged in a superseding Bill of Information with participating in the October 9, 2015 murders of QUANDELL BEARD and ELLIOT SMITH in Tangipahoa Parish. Count One charges RAINES and PITTS with committing second degree murder by using a firearm during the course of a drug trafficking crime. Count Two charges SMITH with committing first degree murder as a result of the same firearms offense.
RAINES, PITTS and SMITH are currently in federal custody and have been detained without bond. Trial in this matter is currently set before U.S. District Judge Lance M. Africk on April 4, 2016.
All three defendants face a sentence of up to life in prison, a fine of up to $250,000 and up to five years of supervised release.
United States Attorney Polite reiterated that the Bill of Information is merely a charged and that the guilt of the defendants much be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Tangipahoa Parish Sheriff’s Office and the United States Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Maurice E. Landrieu, Jr. is in charge of the prosecution.
Three Family Members Receive Life Sentences for Courthouse Murder ConspiracyRead the Press Release
David T. Matusiewicz, Lenore Matusiewicz and Amy Gonzalez were sentenced yesterday in federal court in Delaware to life in prison for the February 2013 murder of David Matusiewicz’s ex-wife and a friend at the New Castle County Courthouse, announced Acting U.S. Attorney David C. Weiss for the District of Delaware, Special Agent in Charge Kevin L. Perkins for the Federal Bureau of Investigation’s (FBI) Baltimore Division and Colonel Nathaniel McQueen Jr. for the Delaware State Police.
Following a five week jury trial this past summer, the defendants were convicted of conspiracy, interstate stalking resulting in death and cyberstalking resulting in death. This was the first case in the nation where defendants were convicted of cyberstalking resulting in death.
After a lengthy sentencing hearing in Delaware, Judge McHugh concluded that David Matusiewicz and his father, Thomas Matusiewicz, acted with premeditated intent in the Feb. 11, 2013, murder of his ex-wife, Christine Belford, at the New Castle County Courthouse. Thomas Matusiewicz also shot and killed Laura “Beth” Mulford, who accompanied Belford to the courthouse that morning. Judge McHugh determined that, based on defendant’s repeated criminal conduct and the serious nature of the offense, which included “contempt for the law,” only a life sentence would protect the community and Belford’s children.
Lenore Matusiewicz and Gonzalez likewise received life sentences from Judge McHugh. Lenore Matusiewicz was sentenced at her bedside last week at Jefferson Medical Center in Philadelphia, Pennsylvania. Gonzalez was sentenced after her brother’s sentence was imposed. Judge McHugh concluded that Gonzalez’s overall stalking conduct was inextricably intertwined with the conduct of her family members and that it was reasonably foreseeable to Gonzalez that an act of violence would occur when her brother, mother and father left for Delaware in early February 2013.
“The life sentences imposed by Judge McHugh were necessary to punish the defendants and to protect Christine Belford’s children and our community,” said Acting U.S. Attorney Weiss. “We hope that these sentences provide some comfort to the victims’ families and we thank the law enforcement and legal communities for their contributions to the successful prosecution of this case.”
“The Matusiewicz family caused a lot of unnecessary harm in this case, killing and injuring innocent people for no reason, said Special Agent in Charge Perkins. “This ground-breaking prosecution and investigation shows people who actively take part in planning crimes, even though they don't pull the trigger, will be held accountable.”
“The Delaware State Police supports the decision of the jury and the judge for holding all defendants in this case fully accountable for their actions,” said Colonel McQueen Jr. “The successful prosecution and sentencing of the defendants responsible in the first federal conviction of cyber-stalking resulting in death is truly welcomed news for all federal, state and local law enforcement involved in the investigation. This investigation is a landmark case that emphasizes the impact and benefit to the community when all agencies are working together.”
According to the evidence presented at trial and sentencing, David Matusiewicz and Belford were involved in divorce and child custody proceedings in the family court of Delaware in 2007. In August 2007, David Matusiewicz and his mother, Lenore Matusiewicz, kidnapped the three young children born of his marriage to Belford and fled to South America. In March 2009, David and Lenore Matusiewicz and the young children were found living in a motor home in Nicaragua. David and Lenore Matusiewicz were arrested and prosecuted in Delaware and the children were returned to the care of their mother. In September 2009, David and Lenore Matusiewicz each pleaded guilty to crimes relating to their kidnapping of the children.
In December 2009, David Matusiewicz was sentenced in federal court to 48 months in prison, to be followed by five years of supervision by the U.S. Probation Office. In the days following his December 2009 sentencing, David Matusiewicz began to orchestrate, from his prison cell, a course of conduct designed to stalk, harass and intimidate Belford and her children. He enlisted his father, mother, sister and various other persons in this effort, which stretched from December 2009 to February 2013. The Matusiewicz family’s stalking campaign included broad dissemination -- by mail, email, websites, Internet postings and other means – of false and defamatory allegations against Belford.
After his release from federal custody, David Matusiewicz resided in southern Texas. On Jan. 8, 2013, David Matusiewicz sought and received permission from the U.S. Probation Office in Texas to travel to Delaware to attend a child support arrearage hearing he had requested. That hearing was scheduled for Feb. 11, 2013. David Matusiewicz never informed the probation officer that he intended to travel to Delaware with Thomas and Lenore Matusiewicz.
On the morning of Feb. 11, 2013, David and Thomas Matusiewicz drove to a hotel parking garage near the New Castle County Courthouse in a Honda CRV, which contained ammunition, a military style knife, three sets of restraints of progressively smaller sizes, a bullet proof vest, an electric shock device, binoculars and photographs of Belford’s children and residence. After entering the courthouse lobby at approximately 7:30 a.m., David Matusiewicz entered and stayed in the security screening line, while Thomas Matusiewicz moved around the lobby, occasionally approaching and talking to David Matusiewicz.
Shortly before 8:00 a.m., David Matusiewicz passed through courthouse security screening and walked to another floor of the building. Thomas Matusiewicz remained in the lobby, where he shot Belford multiple times as she entered the courthouse lobby, killing her. He then shot Mulford multiple times as she attempted to flee. After a shootout during which he shot and injured two Capitol Police officers, Thomas Matusiewicz died on the sidewalk of the courthouse of a self-inflicted gunshot wound.
This case was investigated by the FBI and the Delaware State Police and is being prosecuted by Assistant U.S. Attorneys Jamie M. McCall and Shawn A. Weede.
Tampa Man Sentenced to Fifteen Years for Gun ChargesRead the Press Release
Tampa, FL – U.S. District Judge Richard A. Lazzara today sentenced Cedric Monroe (35, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. Monroe pleaded guilty to this offense on December 4, 2015.
According to court documents, Monroe sold crack cocaine and a firearm to a confidential informant in the bathroom of a local restaurant. At the time of the incident, Monroe had been previously convicted of multiple drug offenses. As a convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violence in our communities.
Tampa Area Defendants Convicted of Identity Theft OffensesRead the Press Release
G. F. Peterman, III, Acting United States Attorney for the Middle District of Georgia, announced today that verdicts of guilty were rendered on all seven counts of an indictment against Defendants Leonardo Hernandez-Triana, age 32, and Yadina Valdes-Dias, age 36, both from Tampa, Florida, charging them with identity theft-related offenses. The case was tried before the Honorable W. Louis Sands, Senior United States District Judge for the Middle District of Georgia, Albany Division.
Count One of the indictment charged the defendants with possession of twenty counterfeit or unauthorized Walmart gift cards. Count Two charged the defendants with unlawful possession of two “skimmer” devices. Counts Three through Seven charged the defendants with aggravated identity theft based upon their fraudulent possession of personal account information of five different persons from the Bowling Green and Greenville, Kentucky area.
The case arose out of a traffic stop of the defendants’ vehicle on October 21, 2014, on Interstate 75 in Turner County. During the course of the traffic stop, law enforcement officers received consent from defendant Hernandez-Triana to search their vehicle. The officers discovered twenty counterfeit Walmart gift cards and two skimmer devices designed to be placed inside a gasoline pump to collect the account information of debit and credit cards used at that pump. The government’s evidence at trial showed that the persons whose accounts were compromised all made debit or credit card purchases of gasoline at about the same time from a particular convenience store in Greenville, Kentucky. The evidence further showed that what appeared on their face to be twenty Walmart gift cards were in fact encoded with a magnetic strip containing the personal account information of those twenty persons whose identity data was stolen.
Clint A. Bush, Resident Agent in Charge, U.S. Secret Service, Albany, Georgia Resident Office stated: “Identity theft, to include credit card fraud, is an ever increasing problem in our country. Victims of these crimes often have long lasting effects. The United States Secret Service, along with its law enforcement partners, remains committed to aggressively investigating those responsible for committing these crimes and bringing them to justice.”
Acting United States Attorney Pete Peterman stated: “Some individuals believe that identity theft and credit card fraud are minor felonies, but that is a mistaken belief. Thousands of people suffer the indignity of having their identities stolen and then spend years trying to get back their good name. Defendants who commit identity theft crimes will be prosecuted to the full extent of the law.”
The case was investigated jointly by the United States Secret Service, Ashburn Police Department, the Georgia State Patrol, and the Tift County Sheriff’s Office. Assistant United States Attorney Alan Dasher prosecuted the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Sutton County Man Sentenced to 262 Months in Federal Prison for Enticing a Minor and Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Marcos Antonio Gamez, 23, of Sonora, Texas, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 262 months in federal prison, following his guilty plea in October 2015 to one count of production of child pornography and one count of enticement of a minor. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Gamez has been in custody since his arrest in August 2015.
According to documents filed in his case, in March 2015, Gamez engaged in sexually explicit conduct with a minor female, and he used his cellphone to produce a video of that conduct. Gamez also persuaded this minor female to recruit another minor female to join them in sexually explicit conduct, but this second minor female declined to participate.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Texas Department of Public Safety, Texas Rangers, the Sonora Police Department, the Sutton County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
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St. Thomas Man Pleads Guilty to Attempted Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – On Friday, February 19, 2016, Kyle Michael Brumett, 24, pleaded guilty in federal court to attempted possession with intent to distribute four kilograms of marijuana, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, on November 24, 2015, Brumett and Jordan Andrew Foster went to the Mail Stop at Crown Bay Marina on St. Thomas to pick up a package addressed to Brumett which was tracked by the United States Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA). When Foster exited the Mail Stop with the package, he was observed placing it in a vehicle Brumett was driving. Foster pleaded guilty to possession with intent to distribute marijuana on February 10, 2016.
Brumett faces a maximum sentence of five years imprisonment and a $250,000 fine. District Court Judge Curtis V. Gomez continued Brumett’s status in official detention. A sentencing date has been set for June 13, 2016.
This case was investigated by the USPIS and the DEA and prosecuted by Nelson L. Jones, Assistant U.S. Attorney.
St. Croix Man Sentenced for Robbery and Related OffensesRead the Press Release
St. Croix, USVI – Senior District Court Judge Raymond Finch on February 19, 2016, sentenced Edigberto Diaz, 46, to 7 years in federal prison for Using and Carrying a Firearm during and in Relation to a Crime of Violence and 21 months for Interference with Commerce by Robbery, United States Attorney Ronald W. Sharpe announced. The sentences are to be served consecutively. Judge Finch also sentenced Diaz to two terms of supervised release to be served concurrently, a fine of $2,000, and a special monetary assessment of $100.
Diaz pleaded guilty on August 18, 2015. According to the plea agreement filed with the court, on June 21, 2014, Diaz and his co-defendant, Daniel Ramos, armed with handguns, entered Quality Foods located at Estate Castle Coakley in St. Croix. They went into an office area, pointed their handguns at two individuals, and demanded that they open the safe. The defendant and co-defendant removed deposit bags containing $24,289.17 in cash and checks from the safe. They also took cellular telephones, a music player, a laptop computer, a checkbook, and backpacks from the victims. Diaz, who was carrying a Smith & Wesson .40 caliber semiautomatic handgun with an obliterated serial number loaded with 14 rounds of ammunition, was shot by the police while being apprehended at the scene of the crime. A sentencing date has been set for May 23, 2016, for Ramos.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Shippensburg Woman Sentenced to 120 Months in Federal Prison for Heroin Trafficking Resulting in DeathRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ashley Gries, age 21, of Shippensburg, Pennsylvania, was sentenced yesterday by U.S. District Court Chief Judge Christopher C. Conner to 120 months incarceration for heroin trafficking that resulted in the death of a local young man.
Gries pleaded guilty on August 10, 2015 to conspiring with co-defendants Danny Forrester, Gabriel Stouffer, and Eugene Stallings, Jr. to distribute heroin that resulted in the death of Kyle Golter, a 21 year old resident of Newburg, Pennsylvania. Gries has been detained since her arrest on March 5, 2014. Forrester, and Stouffer have pleaded guilty for their roles in this drug trafficking organization. Stallings was convicted on February 5, 2016 after a jury trial. Chief Judge Conner previously sentenced Forrester to 180 months incarceration. Stouffer and Stallings have not yet been sentenced.
According to United States Attorney Peter Smith, Gries, Forrester and Stouffer traveled from the Shippensburg area to purchase heroin from Stallings in Baltimore, Maryland, and then engaged in heroin trafficking in Franklin and Cumberland County. Heroin obtained from Stallings led to the death of 21 year old Kyle Golter in Newburg on February 7, 2014. Franklin County Coroner Jeffrey R. Conner determined that the cause of Golter’s death was the result of heroin toxicity.
This case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, the Shippensburg Police Department, and the Cumberland County Drug Task Force. The case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case is part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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San Antonio Man Arrested and Charged in Alleged Laser Strike IncidentRead the Press Release
In San Antonio today, FBI agents arrested 24–year-old Christopher B. Evans for allegedly pointing a laser in the flight path of a helicopter announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.
Evans was charged in a one count federal indictment on February 17, 2016, of aiming a laser pointer at aircraft in flight. The indictment stems from an incident on the morning of October 27, 2015, when a local television news helicopter reported being struck by a laser north of the airport.
Upon conviction, the defendant faces up to five years in federal prison and a maximum $250,000 fine.
According to the FBI, in 2015, San Antonio ranked among the top 15 cities in the nation for laser strikes, with almost 100 reported. Laser strikes can blind pilots of airborne aircraft, jeopardizing the lives of persons aboard.
If you have information about a lasing incident, contact the San Antonio FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
This indictment resulted from an investigation conducted by agents with the Federal Bureau of Investigation together with the San Antonio Police Department. Assistant United States Attorney Michael R. Hardy is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Salvadoran Man Convicted of Sex Trafficking and Sex Tourism Involving a 14-Year-old Victim from El SalvadorRead the Press Release
ALEXANDRIA, Va. – Eric Noe Araujo Flores, aka Eric Araujo Orellano, 34, a citizen of El Salvador who lives in Ashburn, was convicted today by a federal jury on charges of sex trafficking of a child, foreign travel with intent to engage in illicit sexual conduct, and harboring an alien for an immoral purpose, and coercion and enticement.
Araujo Flores was indicted on Nov. 19, 2015. According to court records and evidence at trial, Araujo Flores contacted his former nanny in El Salvador in an effort to find a teenage Salvadoran girl. The nanny put Araujo Flores in touch with her 14-year-old niece, who informed Araujo Flores that a gang had threatened to harm her and her family and that she needed help. Araujo Flores obtained photographs of the girl and then promised to help the girl if she would have sex with him. Beginning in July 2013, Araujo Flores made three trips from Dulles International Airport to El Salvador to have sex with the victim. Araujo Flores paid cash for some of the sex acts. He also provided the victim and her family with jewelry, food, and clothing, paid to have them move residences, and paid her family’s rent.
Seeking immediate access to the victim, Araujo Flores arranged and paid to have the victim and her mother smuggled into the United States through Texas in June 2014. He then harbored them at a house he owned in Sterling. Araujo Flores allowed them to live there rent-free in exchange for sex with the victim, who was then 15-years-old. Araujo Flores provided the victim with a counterfeit permanent resident card which included a false birthdate indicating she was over the age of 18. He also continued to provide food and jewelry to the victim.
Araujo Flores will be sentenced on June 3, 2016, and faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Haycraft, Acting Special Agent in Charge of the Diplomatic Security Service of U.S. Department of State; Michael L. Chapman, Loudoun County Sheriff; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after the verdict was accepted by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Michel J. Frank is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-320.
Ramah Navajo Man Sentenced to 78 Months for Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE — Allen Norton, 45, an enrolled member of the Navajo Nation who resides in Ramah, N.M., was sentenced today in federal court in Santa Fe, N.M., to 78 months in prison for his voluntary manslaughter conviction. He will be on supervised release for three years after completing his prison sentence.
Norton was arrested on April 27, 2015, on a criminal complaint charging him with killing a man on April 25, 2015, by stabbing him. The crime occurred at the victim’s residence on the Navajo Indian Reservation in McKinley County, N.M.
Norton was subsequently indicted on May 12, 2015, on a voluntary manslaughter charge. On Sept. 22, 2015, Norton pled guilty to the indictment and admitted killing the victim by stabbing him with a knife.
This case was investigated by the Albuquerque office of the FBI and the Ramah Navajo Tribal Police Department. Assistant U.S. Attorney Sarah Mease prosecuted the case.
Perry County Man Sentenced to 77 Months in Prison for Federal Firearms ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Auman, age 37, of Liverpool, was sentenced yesterday to 77 months in prison by U.S. District Court Judge John E. Jones, III, after pleading guilty to being a convicted felon in possession of a firearm.
According to U.S. Attorney Peter Smith, Auman was indicted by a federal grand jury in Harrisburg in May 2015, as a result of an investigation by the Harrisburg Police Department, the Pennsylvania State Police and the Harrisburg Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney William A. Behe prosecuted the case.
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Oregon Man Pleads Guilty to Hacking Apple E-Mail AccountsRead the Press Release
LOS ANGELES – An Oregon man has pleaded guilty to a felony computer hacking charge related to a phishing scheme that gave him illegal access to 363 Apple and Google e-mail accounts, including those belonging to members of the entertainment industry in Los Angeles.
Andrew Helton, 29, of Portland, pleaded guilty yesterday to a felony violation of the Computer Fraud and Abuse Act, specifically a charge of unauthorized access to a protected computer to obtain information.
Helton pleaded guilty before United States District Judge John A. Kronstadt, who scheduled a sentencing hearing for June 2. As a result of yesterday’s guilty plea, Helton faces a statutory maximum sentence of five years in federal prison.
“In today’s digital world, people use their e-mail and online accounts to store photos, music, notes, calendars, contacts, financial, and health information,” said United States Attorney Eileen M. Decker. “Through prosecutions such as the one announced here today, the United States Attorney’s Office is committed to assisting the continuing efforts of private companies to protect this sensitive and personal information from the malicious actions of sophisticated hackers and cyber criminals.”
According to his plea agreement, from March 2011 to May 2013, Helton engaged in a phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from Apple or Google and asked victims to “verify” their accounts by clicking on a link. Once the victims clicked on the link, they were taken to a malicious website that looked like an Apple or Google login page. When the victims entered usernames and passwords on the malicious website, Helton then had access to the victims’ e-mail accounts.
As a result of his scheme, Helton obtained approximately 448 usernames and passwords for approximately 363 e-mail accounts. Helton used this information to access and view the contents of the e-mail accounts.
Many of Helton’s victims were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Helton obtained 161 sexually explicit, nude and/or partially nude images of approximately 13 victims, some of whom were celebrities.
“The thought of a stranger accessing your private communications for sport or monetary gain can be devastating,” said David Bowdich, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This insidious crime has distressed scores of average individuals, as well as celebrity victims. The FBI is committed to holding accountable those who illegally intrude upon the cyber landscape, and to educating consumers about strengthening passwords and employing two-factor authentication, among other safeguards.”
The case against Helton is the product of an investigation by the Federal Bureau of Investigation.
Ohio Man Sentenced to 108 Months in Prison for Money Laundering in Connection with Costa Rica-Based Telemarketing Fraud SchemeRead the Press Release
An Ohio man was sentenced to 108 months in prison for his role in laundering money for a Costa Rica-based “sweepstakes fraud” scheme that victimized U.S. residents, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Paul R. Toth Jr., 41, of Wintersville, Ohio, was sentenced yesterday by U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina. In addition to imposing the prison sentence, Judge Conrad ordered Toth to pay $307,702 in restitution and to forfeit the same amount.
Toth was convicted on Aug. 4, 2015, following a two-day jury trial, of one count of conspiracy to commit money laundering and six counts of international money laundering stemming from his role in laundering money for a scheme to defraud two U.S. residents over the age of 55 out of more than $300,000 in savings. The evidence at trial showed that telemarketers in Costa Rica, who were the defendant’s co-conspirators, posed as federal agents and deceived the two victims, who were husband and wife, into believing that they had won a large monetary prize in a sweepstakes contest. The co-conspirators falsely told the victims that in order to receive the “prize,” the victims had to wire thousands of dollars to Costa Rica for a “refundable insurance fee.”
The evidence at trial showed that, between approximately November 2009 and November 2010, Toth was a U.S.-based “smasher,” an individual who arranges to pick up victims’ money and take it to the fraudulent telemarketing organization, who facilitated the laundering of funds received from the elderly victims. Specifically, according to trial evidence, Toth and others he recruited and supervised received more than $300,000 from victims and, using various individuals as senders and recipients to conceal the fraudulent nature of the transactions, wired more than $200,000 to co-conspirators in Costa Rica. The evidence further demonstrated that Toth kept the remainder as his profit.
The U.S. Postal Inspection Service, Internal Revenue Service, FBI, Federal Trade Commission and Department of Homeland Security investigated the case. Senior Litigation Counsel Patrick M. Donley and Trial Attorneys William H. Bowne and Anna Kaminska of the Criminal Division’s Fraud Section prosecuted the case.
North Carolina Man Pleads Guilty in U.S. Treasury Check SchemeRead the Press Release
WASHINGTON – A Smithfield, North Carolina man pleaded guilty today to one count of a dual object conspiracy to defraud the United States and commit theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.
According to court documents, Oscar Barahona Fiallos, 52, owned and operated a tax preparation business in Smithfield. In 2011 and 2012, Fiallos cashed large numbers of U.S. Treasury checks issued as a result of fraudulent tax returns filed with the Internal Revenue Service (IRS) in the names of third parties. The checks were provided to Fiallos by co-conspirators and Fiallos never met the third-party payees, who purportedly lived in New York, New Jersey and North Carolina. Fiallos deposited the checks into his bank account and then provided co-conspirators with cash equal to the value of the check, less a check cashing fee. After a bank account was closed, Fiallos obtained a check cashing license so that he could continue cashing checks for his co-conspirators. He also prepared Individual Taxpayer Identification Number applications and false tax returns for third parties he did not meet and who did not sign the documents.
Fiallos faces a statutory maximum sentence of five years in prison. In his plea agreement, he has agreed to pay restitution to the United States in the amount of $2,802,496. The sentencing hearing is set for June.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Lauren M. Castaldi and Nathan P. Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York State Correction Officer and Saratoga Woman Charged in Marijuana Distribution ConspiracyRead the Press Release
PLATTSBURGH, NEW YORK – Brad Rushford, 33, of Ellenburg Depot, New York, and Freda Rushford, 62, of Saratoga Springs, New York, were arraigned today on charges related to a marijuana distribution conspiracy operating in upstate New York, announced United States Attorney Richard S. Hartunian.
The indictment charges both defendants with conspiracy to possess with intent to distribute and to distribute 100 kilograms or more marijuana. Freda Rushford is also charged with making a false statement to federal officers.
If convicted of the conspiracy charge, both defendants face at least 5 years and up to 40 years in prison, a maximum fine of $5 million, and a term of supervised release of at least 4 years and up to life. The false statement charge against Freda Rushford carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.
The defendants were arraigned in Plattsburgh, New York, before United States Magistrate Judge Garry L. Favro. Trial is scheduled for April 18, 2016 before United States District Judge David N. Hurd in Utica, New York.
Brad Rushford, who is Freda Rushford’s son, worked as a correction officer with the New York State Department of Corrections and Community Supervision.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, Federal Bureau of Investigation, U.S. Customs and Border Protection, U.S. Coast Guard Investigative Service, New York State Department of Corrections and Community Supervision, Office of Special Investigations, New York State Police, and St. Regis Mohawk Tribal Police, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Middle Tennessee Physicians and Owners of Medical Equipment Companies Plead Guilty in Kickback SchemesRead the Press Release
Dr. Bruce Rubinowicz, 53, of Aventura, Florida and previously of Franklin, Tennessee, pleaded guilty today to one count of soliciting and receiving a cash kickback in exchange for patient referrals, announced David Rivera, United States Attorney for the Middle District of Tennessee.
During a hearing before U.S. District Court Judge Aleta A. Trauger, Rubinowicz admitted that, as a physician who operated several sleep labs in Middle Tennessee, he agreed to receive cash kickbacks in exchange for referring patients to Air Affiliates, a Nashville based medical supplier. Rubinowicz admitted accepting a total of $22,900 in cash kickbacks, in exchange for referring patients to Air Affiliates, who provided these patients continuous positive airway pressure (“CPAP”) ventilators. Rubinowicz further acknowledged that some of the patients he referred in exchange for cash payments were Medicare beneficiaries.
Rubinowicz faces up to five years in prison and a $25,000 fine when he is sentenced by Judge Trauger on May 13, 2016. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This guilty plea follows several other recent convictions in this district involving individuals who paid for or accepted cash kickbacks in exchange for patient referrals, including:
- On August 6, 2015, Bradley Sensing, 55, of Nashville, pleaded guilty to one count of paying cash kickbacks in exchange for patient referrals. Sensing was the owner of Air Affiliates, a company that provided CPAP ventilators. Sensing is scheduled to be sentenced by Judge Campbell on May 9, 2016.
- On November 10, 2015, Lane Wilkinson, 67, of Spring Hill, Tennessee, pleaded guilty to one count of soliciting and receiving cash kickbacks from a supplier in exchange for making referrals for medical equipment. Wilkinson was the owner and operator of a medical equipment supply company located in Columbia Tennessee. Wilkinson is scheduled to be sentenced by U.S. District Judge Todd J. Campbell on March 7, 2016. Wilkinson and Sensing also face up to five years in prison and a $25,000 fine.
- On November 12, 2015, Dr. Thomasz Zurawek, 52, of Centerville, Tennessee, was sentenced by Judge Trauger to two months in prison and a term of supervised release in connection with his role in a kickback scheme. Zurawek had pleaded guilty to one count of soliciting and receiving cash kickbacks from a medical equipment supplier in exchange for referring patients to that supplier.
These cases were investigated by the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, and the U.S. Department of Health and Human Services Office of Inspector General. The cases are being prosecuted by Assistant U.S. Attorneys William F. Abely and Thomas J. Jaworski.
Methamphetamine Trafficker Sentenced to 400 Months in Federal PrisonRead the Press Release
FORT WORTH, Texas — The last defendant to be sentenced in a methamphetamine distribution conspiracy that operated in North Texas for two years was sentenced today to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Ismael Rico, 32, of Dallas, was sentenced by U.S. District Judge John McBryde to serve 400 months in federal prison, following his guilty plea in August 2015 to one count of conspiracy to possess with the intent to distribute methamphetamine. According to documents filed in the case, Rico and co-defendant David Godinez conspired with each other to possess with intent to distribute more than 50 grams of methamphetamine. Godinez, 30, of Mesquite, Texas, was sentenced last month to 250 months in federal prison.
Earlier this month, co-defendants James Gatlin, 40, of Garland, Texas, was sentenced to 320 months in federal prison; Matthew Ryan Thompson, 44, of Mineral Wells, Texas, was sentenced to 420 months; and Celeste Monette Blair, 45, of Jacksonville, Florida, was sentenced to 360 months. Each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. Gatlin, Thompson and Blair admitted receiving multi-ounce quantities of methamphetamine from others in the conspiracy that they distributed to others.
The other four defendants convicted in the case have been sentenced to prison terms ranging from 250 to 480 months. Each defendant pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith prosecuted.
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Martinsville Man Pleads Guilty to Firearm ChargeRead the Press Release
DANVILLE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced that Kelly Johnson pled guilty today in the United States District Court for the Western District of Virginia in Danville to a federal gun charge.
Kelly Lovon Johnson, 29, of Martinsville, Va. pled guilty today to one count of possessing a firearm in furtherance of a drug trafficking offense.
“Keeping firearms out of the hands of individuals who have lost their legal right to possess a weapon is paramount to improving community safety,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at trial by Assistant United States Attorney Andrew Bassford, Johnson, who is a previously convicted felon, was found to be illegally in possession of a firearm while also in possession of marijuana.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsville Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Marion County Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – Donald Ray Pafford, Hannibal, Missouri, was indicted for his alleged receipt of child pornography between December 30, 2015, and January 1, 2016.
If convicted, receipt of child pornography carries a penalty range of 15 to 40 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated the Kirksville Office of the Federal Bureau of Investigation, the Hannibal Police Department and the Marion County Prosecuting Attorney’s Office. Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Jury finds Jefferson County man guilty of methamphetamine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal jury returned a guilty verdict yesterday convicting Francisco Gaspar Sanchez, 56, of Kearneysville, West Virginia, of methamphetamine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Evidence presented at trial indicated that Sanchez conspired with another individual to sell crystal methamphetamine in Jefferson County, West Virginia. Specifically, Sanchez was discovered in possession of methamphetamine in Jefferson County in April 2014.
Following a two day trial, a jury found Sanchez guilty of one count of “Conspiracy to Distribute Methamphetamine,” and one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to 10 years in prison and a fine of up to $500,000 on each of the two counts. 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. Attorneys Paul Camilletti and Anna Krasinski, along with Special Assistant U.S. Attorney Lara Omps-Botteicher, also of the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The West Virginia State Police and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Grease Hauling Company and Executives Sentenced for Clean Water Act ViolationsRead the Press Release
Southern Grease Company, a grease hauling company that had been based in Dickson, Tennessee, was sentenced yesterday to pay a criminal fine of $280,000 and to forfeit an additional $113,500, announced David Rivera, United States Attorney for the Middle District of Tennessee. Southern Grease pleaded guilty in May 2015 to four felony violations arising from its illegal disposal of waste grease into municipal sewer systems. U.S. District Court Judge Aleta A. Trauger imposed this sentence and also ordered Southern Grease to make restitution to municipal authorities in Dickson and Clarksville, Tennessee.
Southern Grease, which contracted with restaurants and other customers in Tennessee and Kentucky to collect and dispose of the customers’ waste grease, illegally discharged waste grease into grease interceptors that were connected to the municipal sewer systems. This illegal dumping of grease caused substantial damage to municipal sewer systems by clogging pipes and interrupting the operation of pump stations. In December 2013 Southern Grease dumped waste grease into a grease interceptor in Clarksville, Tennessee, which resulted in the obstruction of pipes within the Clarksville sewer system and damage to a Clarksville pumping station, the operation of which was interrupted for cleaning and repairs.
Previously, on February 1, 2016, Judge Trauger sentenced George Butterworth, 75, of Dickson, Tenn., to serve two months in prison and one year of supervised release. Butterworth was President and an owner of Southern Grease, and had pleaded guilty to violating the Clean Water Act; conspiring to violate the Clean Water Act; and to making false statements to agents with the Environmental Protection Agency. Butterworth was also ordered to pay restitution to municipal authorities in Dickson and Clarksville.
On November 24, 2015, Judge Trauger sentenced Gerald McGee, 51, of Dickson, Tenn., to one month in prison plus two years of supervised release for his role in these offenses. McGee was the Operations Manager for Southern Grease and was also convicted of three felony violations in connection with the illegal dumping of waste grease. He was also ordered to pay restitution to municipal authorities in Dickson and Clarksville.
The case was investigated by the EPA Criminal Investigation Division, with assistance from the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney William F. Abely.
Fruitland Woman Indicted for False Billing at Payette Dental ClinicRead the Press Release
BOISE – Cherie R. Dillon, 60, of Fruitland, Idaho, made an initial appearance yesterday on charges of health care fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Dillon was indicted on February 9, 2016, by a federal grand jury in Boise.
The indictment alleges that Dillon was a dental hygienist and operated Dental Healthcare with Heart in Payette, Idaho. The indictment further alleges that between January 1, 2010, and December 31, 2013, she executed a scheme to defraud health care benefit programs, including Medicaid. In particular, the indictment alleges that even though Dillon was only a dental hygienist, she performed dental services that may only be performed by a dentist. Dillon received payment for those services from health care benefit programs while fraudulently misrepresenting that the services had been performed by a dentist, and while using the name and provider number of a particular dentist who was not in the office and who was unable to practice at the time.
The maximum sentence for health care fraud is up to ten years of imprisonment and a $250,000 fine. Aggravated identity theft carries a two year mandatory minimum prison sentence and up to a $250,000 fine.
A trial is set for April 18, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
“People who fraudulently perform and bill for dental procedures that only licensed dentists are authorized to perform threaten the well-being of vulnerable Medicaid patients and the taxpayers who fund this important program,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General. “Alongside our law enforcement partners, our agents will continue to aggressively pursue those who commit health care fraud just to enrich themselves.”
The case is being investigated by Health and Human Services Office of Inspector General with assistance from the Idaho Attorney General’s Medicaid Fraud Control Unit.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fort Smith Man Appears in Court on Criminal Complaint for Defrauding Insurance CustomersRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Samuel Bowron Phillips, of Fort Smith, Arkansas, appeared today before United States Magistrate Judge Mark E. Ford for his initial appearance on a Criminal Complaint that charged Phillips with eleven counts of Mail Fraud, one count of Wire Fraud, and 3 counts of Money Laundering. The Criminal Complaint alleged that beginning in or about 2013 and continuing through and including November 2015, Phillips devised and executed a scheme to defraud customers of his insurance business by withdrawing funds from their annuity and insurance policies without their consent and knowledge, and used the money for his personal benefit and gain.
The charges in a criminal complaint are only allegations. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI, the IRS Criminal Investigative Division, the Postal Inspection Service, the Arkansas Department of Insurance, and the Fayetteville Police Department. Assistant United States Attorney Kyra Jenner is prosecuting the case for the United States.
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Former Tax Preparer Indicted for Defrauding the Government of Nearly $130,000Read the Press Release
Memphis, TN – A former tax preparer has been indicted for filing materially false federal income tax returns which defrauded the government of nearly $130,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Tracey D. Montaño, Special Agent in Charge of IRS-Criminal Investigation, announced the indictment today.
According to the indictment, Latoya Garrett, 41, of Memphis, Tennessee, was employed as a tax preparer at the Bryan Tax Service, Global Taxes and Tax Bank. Garrett filed tax returns on behalf of the three aforementioned tax services for tax years 2010 and 2011.
An investigation conducted by the Internal Revenue Service – Criminal Investigation (IRS-CI) discovered that many of the returns filed by Garrett were materially false. Specifically, false Schedule C income and expenses, false education credits, and falsely claimed dependents were all claimed on the returns of 13 taxpayers — some of which had multiple returns — filed for tax years 2010 and 2011. The taxpayers denied providing the said information to Garrett; she was identified as the tax preparer that prepared and filed said returns with the IRS.
The total loss associated with Garrett’s illicit acts is $129,744.00.
On Wednesday, February 17, 2016, Garrett was indicted on 18 counts of aiding and assisting in filing false documents, claims or returns with IRS.
If convicted, she faces up to three years imprisonment on each count. She also faces a fine of up to $100,000 on each count.
This case is being investigated by the IRS-CI.
Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Former FDIC Attorney Sentenced Prison for Bank FraudRead the Press Release
ALEXANDRIA, Va. – Michelle M. Borzillo, 59, of Bristow, was sentenced today to 12 months and one day in prison, followed by two years of supervised release, for defrauding Wells Fargo Bank in connection with the sham short sale of her home to her live-in boyfriend. She was also ordered to pay $288,497 in restitution and to forfeit the proceeds of her offense.
Borzillo pleaded guilty on Nov. 17, 2015 to committing bank fraud. According to court documents, the defendant was a senior attorney at the Federal Deposit Insurance Corporation (FDIC) until September 2014. In 2007, she purchased a home in Nokesville for $850,000, with mortgages totaling $807,500 from Wells Fargo Bank. In 2013, she engineered the short sale of her Nokesville home to her boyfriend, who had been living with her at the property for several years.
In order to induce Wells Fargo Bank to approve the short sale and relieve the defendant of her mortgage obligations, the defendant falsely represented to her lender that the sale of the property was an arm’s-length transaction to someone with whom she had no close personal relationship. She also falsely certified that she was moving out of the property, and claimed she was suffering a financial hardship due to the then-federal pay freeze. In reality, as the defendant has admitted, she had no intention of moving out of the property, despite accepting $3,000 in relocation assistance in connection with a federal program designed to assist financially distressed short sellers. As a senior FDIC employee, the defendant also had not been subject to the federal pay freeze, and her base annual pay had steadily increased during the time she owned the home, to $230,000 at the time of the short sale. As a result of the fraudulent short sale transaction, Wells Fargo Bank was required to write off nearly $300,000 in losses.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Fred Gibson, Acting Inspector General of the FDIC; and Rene Febles, Deputy Inspector General for Investigations, Office of the Inspector General for the Federal Housing Finance Agency, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Samantha P. Bateman and Paul J. Nathanson 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-135.
Former Employees of Timeshare Consulting Firm Sentenced to Prison for Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – Two former employees of The Vacation Ownership Group LLC were sentenced today to prison terms for conspiring to defraud owners of timeshare properties, U.S. Attorney Paul J. Fishman announced.
Alfred Giordano, a/k/a “Alex Jordan,” 36, of Belmar, New Jersey, was sentenced to 18 months in prison and Francis Santore, a/k/a “Frank Martin,” 56, of Northfield, New Jersey, was sentenced to 12 months in prison. Both defendants previously pleaded guilty before U.S. District Court Judge Noel L. Hillman to informations charging them with one count of conspiracy to commit mail and wire fraud and one count of mail fraud. Judge Hillman imposed the sentences today in Camden federal court.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC (VO Group), purported to offer consulting services to owners of timeshares, including timeshare cancellation services.
In January 2010, Giordano started working at the VO Group and was trained by Adam Lacerda to call customers using prepared scripts. Giordano would call customers and give them the false impression that he was working for a bank or lending institution and that he had the customer’s “complaint file” in front of him. After hearing Giordano’s false representations, some customers sent checks to the VO Group. Giordano admitted to causing over $120,000 in losses. Giordano also admitted to devising a separate scheme to defraud the New Jersey Department of Labor by collecting unemployment compensation benefits while working at the VO Group. Giordano admitted to applying for and collecting $13,676 in unemployment compensation benefits to which he was not entitled.
Santore started working at the VO Group in October 2010, where he was alleged trained by Lacerda to lie to customers using prepared scripts. Santore admitted that he would give customers the false impression that he was working for a bank or lending institution. He also admitted that he allowed customers to continue operating under the false impression given by his co-workers that the VO Group had the customer’s “complaint file” from a timeshare resort developer in front of them. Santore admitted that he regularly lied to customers in order to perpetrate the scam. Some of those customers then sent checks to the VO Group. Santore admitted that he falsely told a customer that if the customer paid $8,562 to the VO Group, the group would eliminate the customer’s approximately $18,000 mortgage debt with a timeshare developer. Santore admitted causing more than $70,000 in losses. Santore also devised a separate scheme to defraud the California unemployment system by collecting $16,200 in unemployment compensation benefits while working at the VO Group.
In addition to the prison terms, Judge Hillman sentenced both defendants to three years of supervised release. Restitution will be determined at a hearing to be scheduled.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Andrew Campi in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region, for their roles in the investigation leading to these guilty pleas. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.
The government is represented by Assistant U.S. Attorney R. David Walk, Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Giordano: Martin I. Isenberg Esq., Gibbsboro, New Jersey
Santore: Robert A. Mintz Esq., Newark
Florida Man Sentenced to Eight Years in Prison for Investment Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK –Burton Greenberg, 75, of Plantation, Florida was sentenced today in Federal Court in Fort Lauderdale, Florida after pleading guilty to a Northern District of New York indictment charging him with conspiracy to commit wire fraud, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew W. Vale. Greenberg was sentenced to 97 months imprisonment, ordered to pay restitution in the amount of over $10 million and ordered to pay a forfeiture money judgment of over $10 million. He was also ordered to serve a three year term of supervised release following release from imprisonment.
Greenberg is President/CEO of M&P Global Financial Services, Incorporated, a Florida based corporation that entered into agreements in 2001 with Global Financial Fund 8, LLP, a company that solicited and received over $10 million from investors located throughout the United States, including residents of the Northern District of New York. As part of his guilty plea, Greenberg admitted that rather than investing the money in a secure investment as promised, he instead used the funds to make separate investments for himself. In an effort to avoid detection and allow him to continue to divert money for his own use, Greenberg helped orchestrate the payment of phony "profit" distributions to investors in 2004 and 2005 which were merely a partial return of their own principal investment. From 2004 to 2013 Greenberg repeatedly assured the investors via e-mail that their investments were secure and profitable when he knew that was not the case.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Geoffrey Brown.
Florida Man Admits Making over $1.2 Million as Part of Three Year, Cross-County Insider Trading SchemeRead the Press Release
TRENTON, N.J. - A professional day trader today admitted personally making more than $1.2 million in illicit profits by repeatedly trading on inside information divulged to him in violation of confidentiality agreements, U.S. Attorney Paul J. Fishman announced.
Paul Petrello, 54, of Boca Raton, Florida, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
On numerous occasions between May 2010 and August 2013, Petrello and others, using inside information obtained by Petrello’s friend and business associate, Steven Fishoff, 58, of Westlake Village, and Fishoff’s employees, short sold securities of at least 13 public companies.
For each of these offerings, Fishoff or one or more of the day traders that he employed —including his friend, Ronald Chernin, 67, of Oak Park, California, and his brother-in-law, Steven Costantin, 55, of Farmingdale, New Jersey — entered into confidentiality or “wall-crossing” agreements as representatives of Fishoff’s trading entities, whereby they agreed not to disclose or trade on inside information concerning the offerings and were “brought over the wall” for the narrow purpose of determining whether to purchase the offered securities.
In breach of the wall-crossing agreements, Fishoff tipped Petrello about the confidentially marketed offerings by advising Petrello of the stock trading symbols of the companies, as well as the timing and sometimes the pricing of the upcoming offerings. Fishoff generally provided Petrullo with the inside information in code: first, text messaging Petrello only the first two letters of the company’s stock trading symbol; and second, calling Petrello and telling him the last two letters of the symbol.
In addition, Fishoff also directed Petrello to pass inside information related to the stock offerings to an individual identified as “CC-1” in the information. At other times, Fishoff directly tipped CC-1 about an upcoming offering.
At Fishoff’s recommendation, Petrello short sold the stock of the public companies in anticipation of a drop in the stocks’ price when the stock offerings were disclosed to the public. Petrello and his conspirators traded through the accounts of their respective trading entities or through related accounts that they controlled.
By trading on the nonpublic information, Petrello and his conspirators gained more than $3.9 million in profits over the course of the three-year scheme, with Petrello personally making more than $1.2 million. Petrello split his profits with Fishoff, generally on a 50-50 basis, as compensation for the inside information that Fishoff provided.
The conspiracy count to which Petrello pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for May 25, 2016.
Fishoff has been indicted, and Chernin and Costantin have been charged by complaint for their own involvement in the insider trading scheme. The charges and allegations contained in the indictment and complaint are merely accusations, and defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Sanjay Wadhwa.
The government is represented by Assistant U.S. Attorney’s Shirley U. Emehelu and Nicholas P. Grippo of the Criminal Division of the U.S. Attorney’s Office in Newark, as well as Acting Chief Barbara Ward and Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
Today’s plea is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: David M. Rosenfield Esq. and Howard R. Elisofon Esq., New York
Federal Judge Sentences to Prison Eight Men Involved in Drug Trafficking ConspiracyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. today sentenced eight men convicted of drug trafficking charges to prison terms ranging from 12 to 110 months, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Kerr Putney, of the Charlotte-Mecklenburg Police Department (CMPD).
The nine defendants sentenced today are:
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Noel Rondell Alexander, a/k/a “Floyd,” 26, of Charlotte – sentenced to 16 months followed by 3 years of supervised release.
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Akanni Butler, a/k/a “KB,” 30, of Charlotte – sentenced to 110 months followed by 3 years of supervised release.
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Anthony Carter, a/k/a “Sanchez,” 27, of Charlotte – sentenced to 24 months followed by 3 years of supervised release.
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Isaac Hampton, a/k/a “Ike,” 27, of Charlotte – sentenced to 12 months followed by 3 years of supervised release.
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William Kee, III, 21, of Charlotte – sentenced to 24 months followed by 3 years of supervised release.
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Rodney Smith, a/k/a “Man,” 23, of Charlotte – sentenced to 33 months followed by 3 years of supervised release.
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Antonio Sullivan, a/k/a “Pooh,” 37, of Charlotte – sentenced to 52 months followed by 3 years of supervised release.
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Vincent Thompson, 33, of Charlotte – sentenced to 12 months followed by 3 years of supervised release.
According to today’s sentencing hearings and court documents filed in the case, from about May 2014 to February 2015, the defendants were involved in a drug trafficking conspiracy. Court records show that the defendants were all part of an open-air drug market that formed in, and operated around, the area of Beatties Ford Road and Catherine Simmons Avenue in Charlotte. According to court records, the defendants carried out their illegal drug trading mainly out of the parking lots for two small strip shopping centers on Beatties Ford Road or in several other locations on Catherine Simmons Avenue, which intersects with Beatties Ford Road. According to court records, the conspirators sold drugs, mostly “crack” cocaine, all hours of the day and night and frequently engaged in acts of violence, greatly impacting the residents and business owners in this community.
Over the course of today’s sentencing hearings, Judge Conrad noted that all of the residents of that community suffered as a result of these ongoing drug sales.
The investigation was handled by the FBI’s Safe Streets Task Force, of which CMPD is a partner member. The prosecution is being handled by Assistant U.S. Attorney Dana Washington of the U.S. Attorney’s Office in Charlotte.
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Federal Grand Jury Indicts Former Executive with Non-Profit that Provides Head Start Services in DallasRead the Press Release
DALLAS — A federal grand jury returned an indictment yesterday afternoon charging a former director in a non-profit corporation that receives grant funding to provide Head Start services for the Dallas area with embezzlement. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
The one-count indictment charges Evetta Galloway Griffin, 48, of Grand Prairie, Texas, with one count of theft or bribery concerning programs receiving federal funds. Griffin is expected to surrender to federal authorities and make an initial appearance in federal court next week.
According to the indictment, Griffin, a/k/a Evette Griffin, was the Director of Facilities and Administration for the Child Care Group (CCG) until late March 2015. The CCG is a non-profit corporation that receives federal grant funding to provide, among other things, Head Start services to promote the school readiness of young children from low-income families in the Dallas area. Together, Head Start and Early Head Start programs support the comprehensive development of children from birth to age five, in centers, child care partner locations and in their own homes.
Griffin had many duties at CCG that were related to the operation of their child care centers, as well as other responsibilities related to the administration of the corporate office and the procurement process related to federal grants.
The indictment alleges that Griffin created and executed an embezzlement, theft and fraud scheme in which she fraudulently billed CCG for fictitious printing services allegedly provided by A-1 Express Co or A-1 Express Inc. In fact, between April 25, 2011 and January 30, 2015, Griffin submitted approximately 100 fraudulent invoices to CCG that they paid. Griffin usually converted the checks that were made payable to A-1 Express Co or A-1 Express Inc. to cash, ultimately receiving approximately $115,000 from her embezzlement scheme.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for this offense is 10 years in federal prison and a $250,000 fine. Restitution may also be ordered.
The U.S. Department of Health and Human Services Office of Inspector General is investigating the case. Criminal Chief Assistant U.S. Attorney Chad Meacham is in charge of the prosecution.
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Dubuque Couple Charged with Being Drug Users in Possession of a FirearmRead the Press Release
Willie Earl Horsley, 29, and Raven Javay Harris, 25, from Dubuque, Iowa, have each been charged with one count of being prohibited people in possession of a firearm and ammunition. The charges are contained in a Complaint filed on February 16, 2016, in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about January 3, 2016, Horsley and Harris were in possession of a 45 caliber High Point semiautomatic handgun and .45 caliber ammunition. At the time that Horsley and Harris possessed the firearm and ammunition both were users of a controlled substance, specifically marijuana.
The Complaint alleges that on January 3, 2016, at approximately 11:43 p.m., police responded to the residence of Horsley and Harris in, after receiving a 911 call that a shooting had taken place. When police arrived, they discovered that a two-year old boy, J.H., had been shot in an upstairs bedroom. Horsley and Harris were present in the home downstairs.
The Complaint further alleges that later that evening, police obtained a warrant to search the residence. In addition to the firearms and ammunition seized during the execution of the warrant, police also seized from the kitchen a marijuana pipe, a marijuana grinder, and a marijuana bong. Police also seized a blue marijuana pipe from the bedroom shared by Horsley and Harris.
The Complaint also states that during the course of the investigation, both Horsley and Harris made statements to police. The night of the shooting, Horsley stated that he owned the .45 caliber firearm. Harris told police that the .45 caliber firearm belong to both her and Horsley. In subsequent interviews, Harris indicated that she uses marijuana whenever she gets overwhelmed, and had used at approximately 6:00 p.m. the day of the shooting. Horsley admitted to smoking marijuana occasionally, approximately two times per week, and that he had last used marijuana a few days prior to the shooting.
Allegations in the Complaint provide that during the course of the investigation, police obtained hair samples from Horsley and Harris in order to test for the presence of controlled substances. Both samples tested positive for the presence of marijuana.
If convicted, Horsley and Harris each face a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
“The possession of firearms and ammunition by those prohibited by law represents a serious danger to our communities,” said U.S. Attorney Techau. “Prosecuting those individuals who illegally keep firearms and ammunition is a priority of this office and an important part of keeping our communities safe.”
Horsley and Harris both appeared on February 17, 2016, in federal court in Cedar Rapids and were held in custody of the United States Marshals Service pending a detention hearing. Their next appearance for their detention hearings is set for February 23, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case was referred to the United States Attorney’s Office by local authorities and is being prosecuted by Assistant United States Attorney Lisa C. Williams. The case was investigated by the Dubuque Police Department and the Bureau of Alcohol Tabaco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-MJ-33
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District Man Sentenced to Seven Years in Prison for Robbing Man in Southeast WashingtonRead the Press Release
WASHINGTON – Donte Thomas, 25, of Washington, D.C., was sentenced today to seven years in prison for an armed robbery he committed last year in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Thomas was found guilty by a jury in November 2015 of charges of armed robbery and possession of a firearm during a crime of violence. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable John McCabe. Following his prison term, Thomas will be placed on five years of supervised release.
According to the government’s evidence, the attack took place about 12:30 a.m. on May 13, 2015. The victim had just gotten off a bus at 18th Street and Alabama Avenue SE and was walking home from work. As he walked, he felt as if he was being watched. He then turned around and saw the defendant, a person he had known from childhood, standing behind him and pointing a handgun at him.
Thomas demanded, “Where the money at?” The victim dropped his backpack and laid face down on the ground. Thomas ordered the victim to give him his money and his diamond stud earrings. A second suspect then made the victim unlock his cell phone with his password. Thomas then approached the victim, pressed the muzzle of the gun against his head and instructed him not to move. The assailants then fled on foot.
The victim remained on the ground for a short period of time before getting up and going to his residence. Taken from him during the robbery were: his cellphone, stud earrings, LG headphones, a Bluetooth wireless headphone set, book bag, work clothes, $200 in tips from his job, and his keys. The victim reported the crime the next morning. Following his interview at the Seventh District Police Station, a detective drove the victim home. While they were en route, they saw the defendant walking. Once Thomas saw them, he took off running and a foot chase followed. Thomas ran into an occupied house and was found hiding in a closet. A single diamond stud earring was found in his back pocket and the victim’s cell phone was found in the closet where the defendant was sitting. No one else has been arrested in the case.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers and detectives from the Seventh District of the Metropolitan Police Department (MPD), who investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Daphne Nelson and Gary Nails; Litigation Technology Specialist Joshua Ellen, and Assistant U.S. Attorney Sarah C. Santiago, who prosecuted the case.
Deschutes County Sheriff's Office Captain Indicted for Stealing $200,000Read the Press Release
EUGENE, Ore – A federal grand jury sitting in Eugene, Oregon has indicted a captain employed by the Deschutes County Sheriff’s Office. Scott Raymond Beard, 45, of Bend, Oregon, was charged with various offenses related to allegations that he used his position to embezzle and steal more than $200,000 in taxpayer funds. The indictment further alleges that Beard laundered some of the ill-gotten gains by conducting financial transactions to pay expenses on behalf of his co-defendant, Krista Jean Mudrick, 35, of Bend, Oregon. Mudrick is a former employee of the Deschutes County Sheriff’s Office and is charged with making false statements to the FBI and IRS about Beard’s expenditures of the ill-gotten gains.
Beard was arrested by FBI and IRS-Criminal Investigations today in Bend and is scheduled to make his initial appearance before U.S. Magistrate Judge Thomas Coffin in Eugene on Monday, February 22, 2016. Additionally, Mudrick has been issued a summons requiring her presence at an arraignment on Monday, February 22 in Eugene at 1:30.
Beard is charged with two counts of theft of funds from a federally funded program, which if convicted, carries a maximum penalty of ten years in prison; two counts of money laundering, which if convicted, carries a maximum penalty of ten years in prison; and, one count of passport fraud, which if convicted, carries a maximum penalty of five years in prison.
Mudrick is charged with one count of false statement to federal law enforcement agents, which if convicted, carries a maximum penalty of five years in prison.
“Most men and women in law enforcement dedicate their lives to public service and strive every day to always do the right thing as public servants,” said U.S. Attorney Billy J. Williams. “When an investigation shows that a member of law enforcement is violating the public trust by stealing the people's money, we will vigorously prosecute and seek justice for such conduct. Public trust in law enforcement is earned, and must be protected through accountability.”
“The public rightly expects that their law enforcement officers live and work by a strong set of core values – honesty, integrity and respect,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “The FBI will always aggressively pursue allegations of public corruption to ensure we maintain the public’s trust in law enforcement.”
“Throughout my career in federal law enforcement, I have gained a great deal of admiration for those that carry the badge and serve our communities and our nation, the vast majority of whom do so with fierce dedication, honor, and respect for the law. We take it personally when one of our own is alleged to have not lived up to the oath they made to uphold the law and the virtue of our profession,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation.
An indictment is only an allegation of criminal activity. Defendants Beard and Mudrick are presumed innocent unless and until proven guilty beyond a reasonable doubt. A link to the indictment here.
This case was investigated by the FBI, IRS-Criminal Investigation, and the Deschutes County Sheriff’s Office. Assistant U.S. Attorney Christopher Cardani is prosecuting the case.
Biloxi Businessman Pleads Guilty in Kickback Scheme with MDOC CommissionerRead the Press Release
Gulfport, Miss - Robert Simmons, 60, a businessman from Biloxi, Mississippi, pled guilty today before U.S. District Judge Sul Ozerden to a Criminal Information charging him with carrying out a complicated kickback scheme in which he paid money to the commissioner of the Mississippi Department of Corrections (MDOC) and to a Harrison County Supervisor in exchange for lucrative contracts with the state and county, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Don Alway. Simmons will be sentenced on May 26, 2016 at 9:00 a.m., and faces a maximum penalty of ten years in prison and a $250,000 fine.
By virtue of Simmons’ relationship with the commissioner and supervisor and the kickbacks which he paid to both, he was successful in securing and keeping contracts with both governmental entities. Specifically, from 2012 through August 2014, Simmons was paid $4,000 a month as a consultant for Sentinel Offender Services, L.L.C. (Sentinel). Since 2012, Sentinel was under contract with the Mississippi Department of Corrections (MDOC) to provide services to aid in the monitoring and managing of offenders sentenced to probation or parole. Simmons deposited a portion of his monthly pay, a kickback of $1400, directly into the bank account of Christopher Epps, the Commissioner of the MDOC, at bank branch locations along the Mississippi Gulf Coast.
AJA Management and Technical Services (AJA) provided construction management services to the MDOC for the construction of the $40,000,000 expansion to the East Mississippi Correctional Facility and a $40,000,000 expansion to the Walnut Grove Youth Correctional Facility. Throughout the eighteen month period of construction, Simmons received a monthly consulting fee from AJA of $10,000. Every month, a portion of Simmons’ consulting fee was paid to the Commissioner of the MDOC.
From approximately 2005 through 2011, Health Assurance L.L.C. contracted with the Harrison County Jail to provide inmate medical services. The owner of Health Assurance L.L.C. paid Simmons a consulting fee which, at the end of the contract, was as high as $10,000 a month. Throughout this period of time, Simmons made payments in the amount of $2,000 a month to a Harrison County Supervisor for assistance provided in securing the contract at the Harrison County Jail for inmate medical services.
Throughout the relevant time period, the Commissioner of the MDOC exercised influence in the awarding of contracts with the MDOC. In return for these contracts and in order to secure future contracts and favors, Simmons began paying Commissioner Epps.
In summary, Simmons paid bribes and kickbacks to a Harrison county supervisor and to the commissioner of the Mississippi Department of Corrections, and both Harrison County and the Mississippi Department of Corrections received more than $10,000 during each one year period beginning in 2008 and continuing through 2014.
Acting U.S. Attorney in this case, Harold Brittain, praised the FBI agents for their work in identifying the conduct and ferreting out those individuals responsible for compromising the systems upon which taxpayers should be entitled to rely in ensuring that public funds are spent wisely. “Public officials soliciting and receiving bribes and kickbacks cannot be allowed to violate the public trust by participating in the expenditures of funds provided by taxpayers in support of government projects and contracts,” said Acting U.S. Attorney Brittain. “These projects must be awarded honestly and transparently.”
“Public Corruption investigations like these are a top priority for the FBI because those who would betray the public’s trust and confidence for self-gain undermine the very fabric of our democracy,” said Don Alway, Special Agent in Charge of the FBI’s Jackson Division.Ashland Man Sentenced to 2 Years Federal Prison for Money Laundering Profits from Marijuana SalesRead the Press Release
MEDFORD, Ore. - On Wednesday, February 17, 2016, U.S. District Judge Ann Aiken sentenced Jonathan Robert Quaccia, 35, originally of Ashland, Oregon, to two years in federal prison for conspiracy to commit money laundering. The Court ordered the defendant to serve three years of supervised release upon his release from prison term and complete 500 hours of community service.
From 2012 to December 2014, defendant shipped marijuana from California to New York and Georgia for sale. Deposits of the proceeds from the marijuana sales were made in New York and Georgia into bank accounts held by Southern Oregon residents. The Oregon residents were recruited by Quaccia and co-defendant Matthew Correa. Those individuals then withdrew the marijuana proceeds from the Oregon bank accounts and gave the money to Correa, who delivered the money to Quaccia in California. This scheme was designed to promote the manufacture and distribution of marijuana and to conceal the nature, source and ownership of the marijuana proceeds. The amounts deposited and withdrawn were kept under $10,000 to avoid detection. Bank records show $2.2 million in marijuana proceeds were deposited in New York and Georgia, and $2,075,000 withdrawn in Oregon in at least 262 transactions.
Quaccia was residing in McKinleyville, CA, during the time of the offense. He has no previous criminal history.
This case was investigated jointly by the U.S. Drug Enforcement Administration and the Humboldt County Drug Task Force, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Adventist to Pay More Than $2 Million to Resolve False Claims AllegationsRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Adventist Health System Sunbelt Healthcare Corporation (Adventist) has agreed to pay the government $2.09 million to resolve allegations that patients were administered portions of single-dose vials of chemotherapy drugs that were left over from administrations to prior patients.
Subject to a very few strict exceptions not applicable here, these single-dose vials of chemotherapy drugs can only be accessed once and their contents (whether some or all) can only be administered to one patient. That is because these single-dose vials lack any anti-microbial ingredients or other preservatives, and accessing them can introduce harmful agents that can be passed on to subseqent patients.
This settlement also resolves allegations that some platinum based drugs were administered inappropriately; that certain infusion services were upcoded; and that some patients had to be admitted for treatment as a result of the foregoing acts and omissions.
These events occurred between late 2007 and mid-2011, at an Adventist location in Central Florida, and resulted in the submission of improper claims to federal government health care programs, including Medicare, TRICARE, and the Federal Employees Health Benefits Program. In January 2012, Adventist voluntarily self-disclosed certain of the above-described conduct to the United States and repaid $819,828.82 to the United States. The company will receive a credit of that amount toward the $2.09 million obligation.
“Beneficiaries of federal health care plans, particularly those undergoing chemotherapy treatment for cancer, should not be treated with drugs that present unnecessary and avoidable risks,” stated U.S. Attorney Bentley. “When a lack of proper oversight permits circumstances like this to occur, resulting in the submission of false healthcare claims, responsible providers will be held accountable.”
"These actions put patients at needless risk in an attempt to boost profits at taxpayer expense," said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. "This settlement demonstrates that such practices have consequences."
The settlement resolves allegations in a lawsuit filed by relator Heather Huddleston in February 2013. Huddleston’s suit was filed under the whistleblower provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and to share in any recovery. Huddleston was formerly employed by Adventist and had disclosed certain of the conduct internally to Adventist in 2011. The relator will be receiving $376,452 from the proceeds of the settlement.
This case was investigated jointly by Assistant U.S. Attorney Charles Harden of the United States Attorney’s Office for the Middle District of Florida; Trial Attorney Tom Morris of the Commercial Litigation Branch of the Justice Department’s Civil Division; the U.S. Department of Health and Human Services - Office of Inspector General; and the Federal Bureau of Investigation.
The lawsuit was filed in the Middle District of Florida, and is captioned United States ex rel. Huddleston v. Adventist Health System Sunbelt Healthcare Corporation, Case No. 8:13-cv-710-T-27-EAJ (M.D. Fla.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
21st Annual Federal Courthouse African-American History Month Program – February 25, 2016Read the Press Release
BATON ROUGE, LA – Chief Judge Brian A. Jackson, Judge Shelly D. Dick, Judge John W. deGravelles, and Judge James J. Brady of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Twenty-First Annual Federal Courthouse African-American History Month Program at 1:00 p.m. on Thursday, February 25, 2016, in Courtroom 1, located on the third floor of the federal courthouse.
The featured guest speaker will be Clarence A. Becknell, member and Historian of the Zulu Social Aid and Pleasure Club, Inc., of New Orleans, Louisiana. Mr. Becknell will share the interesting story of the Zulu’s origin and its rise to prominence as a highly recognizable part of Louisiana’s cultural landscape.
Musical entertainment will be provided by Mr. John Gray, local trumpeter, and Mr. Michael Foster, of the “Michael Foster Project.”
Members of the public and the press are invited to attend. For further information, please contact Michael J. Jefferson, Assistant United States Attorney, at (225) 389-0443.
Thursday 18 February 2016
Wynne Man Sentenced to 30 Years for Sexual Exploitation of A MinorRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Raymond R. Parmer, Jr., Special Agent in Charge of the Homeland Security Investigations (HSI) New Orleans Field Division, announced today that Joshua Logan Thornton, age 32, of Wynne, was sentenced to 360 months or 30 years in federal prison for Sexual Exploitation of a Minor.
Thursday’s sentencing was before United States District Judge Billy Roy Wilson, and comes following Thornton’s guilty plea on November 24, 2015. Thornton was indicted on October 7, 2015, in a three-count Indictment charging him with sexual exploitation of a minor, distribution of child pornography, and possession of child pornography.
"The internet continues to be the weapon of choice for individuals who exploit children for their own gratification," Thyer said. "Because of this our office reiterates the importance of adults keeping an open line of communication with children in an effort to prevent and detect crimes such as this. A sentence of 30 years sends a strong message that these heinous acts will not be tolerated and will be prosecuted."
On July 24, 2015, Arthur Clements was arrested for possession of child pornography by HSI Baltimore agents. During an interview Clements admitted that he shared child pornography through an internet streaming program with a person named "John," who performed sexually explicit acts with a minor live on the internet streaming program. "John" was later identified as Joseph Thornton of Wynne, Arkansas.
Through forensic analysis of Clements’s computer, law enforcement recovered multiple videos sent to Clements by Thornton. Upon reviewing the videos, law enforcement officers observed a distinctive quilt with yellow and orange butterflies on a turquoise background was present in three videos. The three videos depicted Thornton performing sexually explicit acts on the minor.
On August 6, 2015, HSI agents executed a search warrant at Thornton’s residence in Wynne. Agents seized a number of electronic devices, as well as the butterfly quilt located in the videos.
The minor female admitted that Thornton performed sex acts on her and instructed her not to tell anyone about it.
Thornton provided a full confession. Thornton admitted that he touched the minor sexually with his hands and his penis and that he would do this on live streaming internet. Thornton admitted that the abuse of the minor began eight months prior and stopped the month he learned news that Jared Fogle, the Subway pitchman, was arrested on child pornography charges. Thornton admitted that he shared the images of him and the minor with at least two people on the internet.
HSI agents also forensically examined the computer seized from Thornton’s home and observed approximately 5,000 images of child pornography, including multiple images and videos of the minor.
"Individuals who produce child pornography are directly responsible for what is, in plain language, the rape of children. Production of child pornography steals the innocence of children and destroys lives," HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. said. "Criminals who prey on children will continue to be one of the agency’s highest priorities in order to protect the innocent from these terrible crimes."
There is no parole in the federal system. When Thornton is released upon completion of his 30 year sentence, he will serve five years of supervised release. Conditions of his supervised release include registering as a sex offender and no contact with minors.
HIS led the investigation. Assistant United States Attorney Kristin H. Bryant prosecuted the case for the United States.
Waterloo Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Forrest Rindels, age 60, of Waterloo, Iowa, has been charged with one count of receipt of child pornography and three counts of possession of child pornography. The charges are contained in an Indictment unsealed on February 8, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2001 and 2015, Rindels received child pornography and possessed it on a computer and two external storage devices.
If convicted, Rindels faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of eighty years’ imprisonment, a $1,000,000 fine, a $400 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Rindels appeared for a detention hearing on February 17, 2016, in federal court in Cedar Rapids and was released on bond. Rindels’ next appearance for trial is set for April 11, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Waterloo Police Department, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-2006.
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Wasilla man charged with possession of stolen guns, stolen mail, and fraudRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that a Wasilla man was indicted by a federal grand jury in Anchorage for possession of stolen firearms, being a felon in possession of a firearm, possession of stolen mail, possession and use of access devices obtained from the stolen mail, fraud, and Aggravated Identity Theft.
Timothy Wayne Taylor, a door to door meat salesman, age 36, of Wasilla, Alaska, was charged in a six-count indictment.
The indictment alleges that between Feb. 24, 2015, through March 11, 2015, Taylor was in possession of 24 stolen firearms and also charges Taylor with being a felon in possession of firearms. From May 2014 until March 11, 2015, Taylor was in possession of approximately 1600 pieces of stolen mail addressed to approximately 800 individuals and businesses from the Wasilla, Palmer, Houston, and Chugiak, Alaska, areas. Debit cards, credit cards, credit card checks, PIN numbers and other access devices were found in Taylor’s possession. The indictment also alleges that Taylor fraudulently negotiated stolen credit card checks and stolen bank checks from the stolen mail at a local business, obtaining more than $6000. As a result of those transactions, Taylor was also charged with Aggravated Identity Theft.
Mr. Feldis commended the United States Postal Inspection Service, the Alaska State Troopers, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, for the investigation of this case.
"Postal Inspectors worked closely with the U.S. Attorney's Office and the Alaska State Troopers," said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service. "We take mail theft and subsequent use of stolen mail to commit identity theft very seriously and will continue to vigorously protect the U.S. Mail."
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
VimpelCom Limited and Unitel LLC Enter into Global Foreign Bribery Resolution of More Than $795 Million; United States Seeks $850 Million Forfeiture in Corrupt Proceeds of Bribery SchemeRead the Press Release
Amsterdam-based VimpelCom Limited, the world’s sixth-largest telecommunications company and an issuer of publicly traded securities in the United States, and its wholly owned Uzbek subsidiary, Unitel LLC, entered into resolutions with the Department of Justice today in which they admitted to a conspiracy to make more than $114 million in bribery payments to a government official in Uzbekistan between 2006 and 2012 to enable them to enter and continue operating in the Uzbek telecommunications market.
In a related action, the department also filed a civil complaint today seeking the forfeiture of more than $550 million held in Swiss bank accounts, which constitute bribe payments made by VimpelCom and two separate telecommunications companies, or funds involved in the laundering of those payments, to the Uzbek official. The forfeiture complaint follows an earlier civil complaint filed on June 29, 2015, which seeks forfeiture of more than $300 million in bank and investment accounts held in Belgium, Luxembourg and Ireland that also constitute funds traceable to bribes, or funds involved in the laundering of the bribes, paid by VimpelCom and another telecommunications company to the same Uzbek official.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, Chief Richard Weber of Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Clark E. Settles of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Washington, D.C., Field Office.
“These cases combine a landmark FCPA resolution for corporate bribery with one of the largest forfeiture actions we have ever brought to recover bribe proceeds from a corrupt government official,” said Assistant Attorney General Caldwell. “The Criminal Division’s FCPA enforcement program and our Kleptocracy Initiative are two sides of the same anti-corruption coin. The FCPA resolution in this case is also one of the most significant coordinated international and multi-agency resolutions in the history of the FCPA, and demonstrates our commitment both to pursuing justice and to bringing about corporate reform.”
“Today we mark the resolution of criminal charges and civil proceedings against corrupt corporate entities that made bribery a foundation of their business model,” said U.S. Attorney Bharara. “As they have admitted in court filings, VimpelCom, the world’s sixth largest telecommunications company, with securities traded in New York, and its subsidiary, Unitel, built their business in Uzbekistan on over $114 million in bribes funneled to a government official. Those payments, falsely recorded in the company’s books and records, were then laundered through bank accounts and assets around the world, including through accounts in New York.”
“Today’s admission of guilt by VimpelCom and Unitel to paying bribes to government officials is a victory for all who fight corruption at all levels,” said Chief Weber. “It also demonstrates the skill and tenacity of IRS Criminal Investigation special agents when it comes to delving underneath layers of financial transactions designed to conceal illegal payments for gain. The global economy demands a level playing field for all. When certain VimpelCom and Unitel executives chose to use deception in order to continue this scheme and take advantage of insider knowledge, they also chose to become criminals. IRS-CI pledges to continue our efforts on the international stage to stop corrupt financial schemes such as this one.”
“HSI special agents and our law enforcement partners will continue to investigate financial crimes committed by corrupt foreign officials,” said Special Agent in Charge Settles. “We will not permit ill-gotten gains to be laundered through U.S. financial markets.”
The Criminal Resolution
In the criminal case, Unitel pleaded guilty and was sentenced to a one-count criminal information filed today in the Southern District of New York and assigned to U.S. District Judge Edgardo Ramos of the Southern District of New York, charging the company with a conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).
VimpelCom entered into a deferred prosecution agreement in connection with a criminal information charging the company with conspiracy to violate the anti-bribery and books and records provisions of the FCPA, and a separate count of violating the internal controls provisions of the FCPA. Pursuant to its agreement with the department, VimpelCom agreed to pay a total criminal penalty of $230,326,398.40 to the United States, including $40 million in forfeiture. VimpelCom also agreed to implement rigorous internal controls, retain a compliance monitor for a term of three years and cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
In related proceedings, VimpelCom settled with the U.S. Securities and Exchange Commission (SEC) and the Public Prosecution Service of the Netherlands (Openbaar Ministrie, or OM). Under the terms of its resolution with the SEC, VimpelCom agreed to a total of $375 million in disgorgement of profits and prejudgment interest, to be divided between the SEC and OM. VimpelCom agreed to pay the OM a criminal penalty of $230 million, for a total criminal penalty of $460,326,398.40, and a total resolution amount of more than $835 million. The department agreed to credit the criminal penalty paid to the OM as part of its agreement with the company. The SEC agreed to credit the forfeiture paid to the department as part of its agreement with the company. Thus, the combined total amount of U.S. and Dutch criminal and regulatory penalties paid by VimpelCom will be $795,326,398.40, making it one of the largest global foreign bribery resolutions ever.
According to the companies’ admissions, VimpelCom and Unitel, through various executives and employees, paid bribes to an Uzbek government official, who was a close relative of a high-ranking government official and had influence over the Uzbek governmental body that regulated the telecom industry. The companies structured and concealed the bribes through various payments to a shell company that certain VimpelCom and Unitel management knew was beneficially owned by the foreign official. The bribes were paid on multiple occasions between approximately 2006 and 2012 so that VimpelCom could enter the Uzbek market and Unitel could gain valuable telecom assets and continue operating in Uzbekistan. VimpelCom and Unitel contemplated additional bribes in 2013, but those bribes were not completed before VimpelCom opened an internal investigation.
In addition, VimpelCom admitted that it falsified its books and records and attempted to conceal and disguise the bribery scheme by classifying payments as equity transactions, consulting and repudiation agreements and reseller transactions. VimpelCom also failed to implement and enforce adequate internal accounting controls, which allowed the bribe payments to occur without detection or remediation. Moreover, when the board of directors sought an FCPA legal opinion assessing corruption risks involved in the transactions, certain VimpelCom management withheld crucial information from outside counsel performing the review that restricted the scope of FCPA opinions, rendering them worthless. Rather than implement and enforce a strong anti-corruption ethic, certain VimpelCom executives sought ways to give the company plausible deniability of illegality while knowingly proceeding with corrupt business transactions.
A number of significant factors contributed to the department’s criminal resolution with the companies. Among these, the companies received significant credit for their prompt acknowledgement of wrongdoing after being informed of the department’s investigation, for their willingness to promptly resolve their criminal liability on an expedited basis and for their extensive cooperation with the department’s investigation. Specifically, the criminal penalty reflects a 45 percent reduction off of the bottom of the U.S. Sentencing Guidelines fine range. However, the companies did not receive more significant mitigation credit, either in the penalty or the form of resolution, because the companies did not voluntarily self-disclose their misconduct to the department after an internal investigation uncovered wrongdoing.
The Forfeiture Complaints
The department has also filed two civil complaints seeking a total of $850 million in forfeiture. A complaint filed today seeks forfeiture of approximately $550 million in proceeds of illegal bribes paid, or property involved in the laundering of those payments, to the Uzbek official by VimpelCom and two other telecommunications companies operating in Uzbekistan. The $550 million is currently located in Swiss bank accounts. The department also filed a prior complaint seeking forfeiture of an additional $300 million in proceeds of illegal bribes paid, or property involved in the laundering of those payments, to the same Uzbek official. The assets sought to be forfeited in that complaint are restrained in Belgium, Luxembourg and Ireland. In that case, on Jan. 11, 2016, the U.S. District Court for the Southern District of New York entered a partial default judgment against all potential claimants other than the Republic of Uzbekistan.
As alleged in the complaints and as is part of the criminal resolutions announced today, the telecom companies paid a total of more than $800 million in bribes so that the Uzbek official would assist VimpelCom and other telecommunications companies in obtaining and retaining business in Uzbekistan. Thereafter, the official’s associates laundered the corruption proceeds through accounts held in Latvia, the United Kingdom, Hong Kong, Ireland, Belgium, Luxembourg and Switzerland. The illicit funds were transmitted through financial institutions in the United States before they were deposited into accounts in these countries, thereby subjecting them to U.S. jurisdiction.
The department brought these forfeiture actions under the Kleptocracy Asset Recovery Initiative in the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS), working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by corruption and abuse of office.
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These cases represent the department’s commitment to both prosecute those who pay bribes and to ensure that the corrupt government officials who receive the bribes cannot use the U.S. financial system to launder their illicit gains. The IRS-CI and ICE-HSI are investigating the cases, along with the IRS Global Illicit Financial Team in Washington, D.C. Senior Litigation Counsel Nicola J. Mrazek and Trial Attorney Ephraim Wernick of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Edward Imperatore of the Southern District of New York are prosecuting the criminal case, with substantial assistance from AFMLS. AFMLS Trial Attorney Marie M. Dalton is prosecuting the forfeiture case with substantial assistance from the Fraud Section.
Law enforcement colleagues within the OM, the Swedish Prosecution Authority, the Office of the Attorney General in Switzerland and the Corruption Prevention and Combating Bureau in Latvia provided significant cooperation and assistance in this matter. Law enforcement colleagues in Belgium, France, Ireland, Luxembourg and the United Kingdom have also provided valuable assistance. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The SEC referred the matter to the department and provided extensive cooperation and assistance.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
U.S. Attorney's Office Settles Americans with Disabilities Act Case with 360 Federal Credit UnionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that the U.S. Attorney’s Office has reached a settlement with 360 Federal Credit Union to ensure equal access for individuals with disabilities at all 360 Federal Credit Union locations, pursuant to the Americans with Disabilities Act (“ADA”).
The agreement resolves an ADA complaint filed by an individual who is hard of hearing who alleged that 360 Federal Credit Union would not accept his video relay calls. Since the commencement of the investigation, 360 Federal Credit Union has worked cooperatively to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations.
“Individuals who have disabilities must not be denied equal access to the services offered by financial institutions simply because of their disability,” said U.S. Attorney Daly. “360 Federal Credit Union’s cooperation during this investigation has shown that it is committed to equal access and effective communication with its customers who have disabilities.”
Under the agreement, 360 Federal Credit Union will pay a small monetary sum to compensate the individual for the expenses he incurred as a result of the credit union’s failure to accept his video relay calls. The agreement also requires 360 Federal Credit Union to accept video relay calls in all of its credit union locations and amend its policies, practices, and training to ensure the removal of barriers to access at its branch offices.
Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public. Among other things, the ADA requires financial institutions, accountants, lawyers, doctors and other businesses to provide auxiliary aids and services that are necessary for effective communication. For individuals who are deaf or hard of hearing, auxiliary aids include qualified sign language or oral interpreters, use of relay services, computer-assisted real time transcription, and, for simple communications, the exchange of written notes.
Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
This matter was handled by Assistant U.S. Attorney Ndidi N. Moses with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Two New Jersey Women Admit Roles in Plots to Bribe Corrections Officers to Smuggle Contraband into Essex County JailRead the Press Release
TRENTON, N.J. – Two women today admitted their involvement in schemes to bribe corrections officers to smuggle contraband to inmates inside the Essex County Jail, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Deidra Harrison, 51, of Newark, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper to Count One of an indictment charging her with conspiring to commit extortion under color of official right. Karen Adrianzen, 38, of North Bergen, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging her with conspiring to pay bribes to Essex County Jail corrections officers. Harrison and Adrianzen have both been released on bail.
According to the documents filed in this case, other cases, and statements made in court:
In November 2013, Channel Lespinasse, 32, of Florham Park, New Jersey, a corrections officer at the Essex County Jail and Harrison’s daughter, agreed to deliver a cell phone to an inmate inside the Essex County Jail in exchange for $1,000. Harrison retrieved the cell phone and the $1,000 payment from an FBI undercover agent outside of the jail and passed the cell phone and the cash payment along to Lespinasse. Lespinasse then smuggled the cell phone into the jail and delivered it to the inmate.
On multiple occasions between September 2013 and May 2014, Jason Perez, 40, of Guttenberg, New Jersey, a federal pretrial detainee at the Essex County Jail, directed Adrianzen to pay cash bribes to various Essex County Jail corrections officers. At Perez’s direction, Adrianzen obtained contraband, including marijuana and cell phones, and delivered them to the corrections officers along with the cash bribes. After the corrections officers delivered the contraband to Perez, he ultimately sold the marijuana and cell phones to other inmates in the jail, who paid for the contraband via Western Union money transfers executed by their friends and family. Adrianzen and others collected the money transfers on Perez’s behalf.
The charge for conspiring to commit extortion under color of official right, to which Harrison pleaded guilty, carries a maximum penalty of 20 years in prison and a $250,000 fine. The charge of conspiring to bribe public officials, to which Adrianzen pleaded guilty, carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for Harrison and Adrianzen is scheduled for June 3, 2016 and May 31, 2016, respectively.
On Jan. 13, 2015, Lespinasse pleaded guilty to conspiring to commit extortion under color of official right and awaits sentencing on April 20, 2016. Perez pleaded guilty to conspiring to pay bribes to public officials on May 4, 2015 and awaits sentencing on March 1, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, and investigators with the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s pleas.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Rob Frazer of the Organized Crime/Gangs Unit in Newark.
Defense counsel:
Harrison: Frank Guzman, Jersey City, New Jersey
Two Former Arkansas Officials Sentenced for Bribery SchemeRead the Press Release
A former deputy director of the Arkansas Department of Human Services (ADHS), a multibillion-dollar state agency, and a former probation officer in Crittenden County, Arkansas, and West Memphis, Arkansas, councilmember were sentenced today in Little Rock, Arkansas, for engaging in a bribery scheme involving the owner of two mental health companies, announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
Steven B. Jones, 51, of Marion, Arkansas, the former deputy director of ADHS, was sentenced to 30 months for conspiracy to commit bribery concerning programs receiving federal funds and honest services wire fraud and for federal funds bribery. Co-conspirator Phillip W. Carter, 47, also of Marion, was sentenced to 24 months for conspiracy to commit bribery concerning programs receiving federal funds and honest services wire fraud.
According to the plea agreements, Carter and a local pastor served as intermediaries in a bribery scheme involving Jones and Theodore Suhl, the owner of two businesses that provided inpatient and outpatient mental health services to juveniles. Jones admitted that, beginning in April 2007 and while serving as ADHS deputy director, he solicited and accepted multiple cash payments and other things of value from Suhl. Suhl provided the cash payments and other things of value to Jones through Carter and the pastor, and in return, Jones admitted that he agreed to perform official acts that benefitted Suhl and his businesses.
As part of their pleas, both Jones and Carter admitted that they and other members of the conspiracy concealed their activity and dealings by, among other things, holding periodic meetings at restaurants in Memphis, Tennessee, or in rural Arkansas where they would not be easily recognized; funneling the cash payments through the pastor’s church; providing the bribe payments to Jones in cash so that the transactions would not be easily traceable; and speaking in code during phone conversations.
On Dec. 2, 2015, Suhl was indicted on one count of conspiracy to commit bribery and honest services fraud, three counts of honest services fraud, one count federal funds bribery and one count of interstate travel in aid of bribery and is awaiting trial. The charges and allegations contained in that indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The FBI’s Little Rock Field Office investigated both cases. Assistant U.S. Attorney Angela S. Jegley of the U.S. Attorney’s Office for the Eastern District of Arkansas and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section prosecuted Jones’s case. Trial Attorneys Edward P. Sullivan, Lauren Bell and Gwendolyn A. Stamper of the Criminal Division’s Public Integrity Section prosecuted Carter’s case.
Two Former Arkansas Officials Sentenced to Prison for Bribery SchemeRead the Press Release
LITTLE ROCK—Steven B. Jones, a former deputy director of the Arkansas Department of Human Services (ADHS), a multi-billion dollar state agency, and Phillip W. Carter, a former probation officer in Crittenden County, Arkansas, and West Memphis, Arkansas, councilmember were sentenced today for engaging in a bribery scheme involving the owner of two mental health companies, announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
On Thursday, United States District Judge Billy Roy Wilson sentenced Jones, 51, of Marion, Arkansas, to 30 months in the Bureau of Prisons after pleading guilty to a two-count Information charging him with conspiracy to commit bribery concerning programs receiving federal funds and honest services wire fraud and for federal funds bribery. Jones also must serve one year of supervised release and pay a $6,000 fine. Co-conspirator Carter, 47, also of Marion, was sentenced to 24 months in prison and two years of supervised release for conspiracy to commit bribery concerning programs receiving federal funds and honest services wire fraud.
According to the plea agreements, Carter and a local pastor served as intermediaries in a bribery scheme involving Jones and Theodore Suhl, the owner of two businesses that provided inpatient and outpatient mental health services to juveniles. Jones admitted that, beginning in April 2007 and while serving as ADHS deputy director, he solicited and accepted multiple cash payments and other things of value from Suhl. Suhl provided the cash payments and other things of value to Jones through Carter and the pastor, and in return, Jones admitted that he agreed to perform official acts that benefitted Suhl and his businesses.
As part of their pleas, both Jones and Carter admitted that they and other members of the conspiracy concealed their activity and dealings by, among other things, holding periodic meetings at restaurants in Memphis, Tennessee, or in rural Arkansas where they would not be easily recognized; funneling the cash payments through the pastor’s church; providing the bribe payments to Jones in cash so that the transactions would not be easily traceable; and speaking in code during telephone conversations.
On Dec. 2, 2015, Suhl was indicted on one count of conspiracy to commit bribery and honest services fraud, three counts of honest services fraud, one count federal funds bribery and one count of interstate travel in aid of bribery and is awaiting trial. The charges and allegations contained in that indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The FBI’s Little Rock Field Office investigated both cases. Assistant U.S. Attorney Angela S. Jegley of the U.S. Attorney’s Office for the Eastern District of Arkansas and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section prosecuted Jones’s case. Trial Attorneys Edward P. Sullivan, Lauren Bell and Gwendolyn A. Stamper of the Criminal Division’s Public Integrity Section prosecuted Carter’s case.